Answer:
It should conduct an in-house training program to bring employees up to speed.
true
Explanation:
An inhouse training would be appropriate to help team members overcome their struggles with the complexity of the tasks. the training would provide more clarification on the tasks to be carried out. this would have the effect of making the task look less complex. Even though there is clarity on the target, there is no clarity on the steps to take to reach the target. Thus, a training is needed.
Team-based organizational structures is when the employees of an organisation are divided into teams. these teams work separately but they work towards a common goal . The structure is usually decentralised. Decisions are made within teams instead of decisions been made by one central body.
Advantages of Team-based organizational structures
communication between employees are faster and more effectiveit increases teamwork Problems are resolved fasterDisadvantages of Team-based organizational structures
it might be difficult to identify employees with low performance as they might be able to hide behind their teamsCharacteristics of an organic organisation includes :
few levels of management,decentralized decision-making, a short chain of command.these are characteristics of a team based organisational structure
The amounts reported for assets and liabilities in the total column for the combining balance sheet for nonmajor governmental funds are also reported in the other governmental funds column of the governmental funds balance sheet.
A. True
B. False
Answer: True
Explanation:
Governmental funds refers to the assets, money, or property, of the government.
It should be noted that the non major governmental fund is also a form of fund as well and therefore, the amounts that are reported for assets and liabilities in the total column for the combining balance sheet for the nonmajor governmental funds will also have to be reported in the other governmental funds column of the governmental funds balance sheet.
Therefore, the correct option is True
Kenseth Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets.
Projected Benefit Obligation Plan Assets Value
2019 $2,000,000 $1,900,000
2020 2,400,000 2,500,000
2021 2,950,000 2,600,000
2022 3,600,000 3,000,000
The average remaining service life per employee in 2019 and 2020 is 10 years and in 2021 and 2022 is 12 years. The net gain or loss that occurred during each year is as follows: 2019, $280,000 loss; 2020, $90,000 loss; 2021, $11,000 loss; and 2022, $25,000 gain.
Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule.
Answer:
10%Corridor
2011 $0
2012 $250,000
2013 $295,000
2014 $360,000
Accumulated
2011 $0
2012 $280,000
2013 $367,000
2014 $372,000
Minimum Amortization of Loss
2011 $0
2012 $3,000
2013 $6,000
2014 $1,000
Explanation:
Calculation to determine the net gain or loss amortized and charged to pension expense under the corridor approach
Year, Projected Benefit Obligation (a) , Plan Assets, 10%Corridor, Accumulated d OCI (G/L) (a), Minimum Amortization of Loss
2011 $2,000,000 $1,900,000 $200,000 $ 0 $0
2012 $2,400,000 $2,500,000 $250,000 $280,000 $3,000(b)
2013 $2,950,000 $2,600,000 $295,000 $367,000(c) $6,000(d)
2014 $3,600,000 $3,000,000 $360,000 372,000(e) $1,000(f)
Calculation for 10%Corridor
2011 $0
2012 10%*$2,500,000 =$250,000
2013 10%*$2,950,000 =$295,000
2014 10%*$3,600,000 =$360,000
Calculation for Accumulated Depreciation and Minimum Amortization of Loss
a. As at the beginning of the year
b. ($280,000 – $250,000) ÷ 10 years = $3,000
c. $280,000 – $3,000 + $90,000 = $367,000
d. ($367,000 – $295,000) ÷ 12 years = $6,000
e. $367,000 – $6,000 + $11,000 = $372,000
f ($372,000 – $360,000) ÷ 12 years = $1,000
Therefore the net gain or loss amortized and charged to pension expense under the corridor approach are :
10%Corridor
2011 $0
2012 $250,000
2013 $295,000
2014 $360,000
Accumulated Depreciation
2011 $0
2012 $280,000
2013 $367,000
2014 $372,000
Minimum Amortization of Loss
2011 $0
2012 $3,000
2013 $6,000
2014 $1,000
Budgeted sales of the East End Burger Joint for the first quarter of the year are as follows:January...................................................... $50,000February ..................................................... 60,000March ....................................................... 68,000 The cost of sales averages 40 percent of sales revenue and management desires ending inventories equal to 25 percent of the following month’s sales. Assuming the January 1 inventory is $5,000, the January purchases budget is: a. $19,000 b. $21,000 c. $31,000 d. $69,000
Answer:
b. $21,000
Explanation:
Calculation to determine what January purchases budget is
PURCHASES BUDGET
Requirements for January $20,000
($50,000 x 0.40)
Add Desired January 31 inventory 6,000
($60,000 x 0.25 x 0.40)
Total requirements $26,000
($20,000+$6,000)
Less beginning inventory ($5,000)
January purchases budget $21,000
($26,000-$5,000)
Therefore January purchases budget is $21,000
Logan and Johnathan exchange land, and the exchange qualifies as like kind under § 1031. Because Logan's land (adjusted basis of $95,500) is worth $114,600 and Johnathan's land has a fair market value of $90,725, Johnathan also gives Logan cash of $23,875.
a. What is Logan's recognized gain?
b. Assume instead that Johnathan's land is worth $90,000 and he gives Logan $10,000 cash. Now what is Logan's recognized gain?
Answer:
A. $19,100 Recognized Gain or Fairmarket Value of ($23,875).
B.$19,100 Recognized Gain or Fairmarket Value of ($10,000).
Explanation:
a. Calculation to determine Logan's recognized gain
Based on the given information in a situation where Jonatha land is worth the amount of $90,725, which means Logan's RECOGNIZED GAIN will be $19,100, the lower of the REALIZED GAIN calculated as ($114,600 amount realized − $95,500 adjusted basis = $19,100) or the FAIRMARKET VALUE of the boot received of the amount of ($23,875).
b. Based on the information given assuming Johnathan and is been worth the Amount of $90,000 which therefore means that Logan's RECOGNIZED GAIN will be the amount of $19,100, the lower of the realized gain calculated as ($114,600 amount realized − $95,500 adjusted basis = $19,100) or the FAIRMARKET VALUE of the boot received OLog the amount of ($10,000).
Crane, Inc., is preparing its direct labor budget for 2020 from the following production budget based on a calendar year.
Quarter Units Quarter Units
1 20,330 3 35,270
2 25,370 4 30,390
Each unit requires 1.70 hours of direct labor. Prepare a direct labor budget for 2020. Wage rates are expected to be $17 for the first 2 quarters and $19 for quarters 3 and 4.
Answer:
Total labor hour = Units*Operating hours
Labor cost= Total labor hours * Hourly wage rate
QUARTER
1 2 3 4
Units 20,330 35,270 25,370 30,390
DLH time per unit 1.70 1.70 1.70 1.70
Total labour hours need 34561 43129 59959 51663
Hourly wage rate 17 17 19 19
Budgeted direct labor hour 587535 733193 1138221 981597
Jayleen Company makes two products: Carpet Kleen and Floor Deodorizer. Operating information from the previous year follows. Carpet Kleen Floor Deodorizer Units produced and sold 6,000 5,000 Machine hours used 6,000 2,000 Sales price per unit $ 8 $ 13 Variable cost per unit $ 6 $ 10 Fixed costs of $38,000 per year are presently allocated equally between both products. If the product mix were to change, total fixed costs would remain the same. The contribution margin per machine hour for Floor Deodorizer is:
Answer:
$7.50 per machine hour
Explanation:
Calculation to determine what The contribution margin per machine hour for Floor Deodorizer is:
First step is to calculate the CM
CM = $13 – 10
CM= $3/ unit
Second step is to calculate Hours/ unit
Hours/ unit= 2,000 / 5,000
Hours/ unit= 0.4 hours
Now calculate the contribution margin per machine hour
Contribution margin per machine hour=$3/ 0.4 hours
Contribution margin per machine hour= $7.50 per machine hour
Therefore The contribution margin per machine hour for Floor Deodorizer is:$7.50 per machine hour
Write a conversation between florist and customer for ordering a bouquet to gift for mom on Mother's Day - write with etiquette
Answer:
sorry sir you would have to do this on your own
Examine this supply and demand graph for a product. What does the red dot
on the graph represent?
Demand
$5
Supply
$4
Price
$3
$2
$1
0
2
4
5
Quantity
O A. The product's equilibrium price
O B. The product's quantity demanded
O C. The product's quantity supplied
O D. The product's supply schedule
The product’s equilibrium price
Just simply because the price and quantity is the same
The red dot on the graph represents the product's equilibrium price.
What do you mean by demand and supply?Demand refers to the consumer's desire and ability in order to purchase a good or service at a given period of time. There is an inverse relationship between demand and price. When price of a product increases, the demand decreases and vice versa.
Supply refers to the total amount of a given product or service a supplier offers to consumers at a given period of time. Supply is usually determined by market movement.
What does the supply and demand graph indicate?The supply and demand graph indicates the relationship between quantity supplied and the quantity demanded. In the graph it is seen that the demand curve and supply curve meet a point, which is the point of intersection (the red dot) and also the point of equilibrium.
Equilibrium is a state of rest. At equilibrium demand matches supply at the same price. If a market is at its equilibrium price and quantity, then it has no reason to move away from that point, as it's balancing both, quantity supplied and the quantity demanded.
However, in the graph the equilibrium price represents the point where the supply of a product is equal to the demand for that product. Thus, red dot on the graph represents the product's equilibrium price where supply meets demand.
Hence, option A is correct.
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5. Which of the following statements is false? A) The incentives come from owning stock in the company and from compensation that is sensitive to performance. B) The role of the corporate governance system is to mitigate the conflict of interest that results from the combination of ownership and control without unduly burdening managers with the risk of the firm. C) Punishment comes when a board fires a manager for poor performance or fraud, or when, upon failure of the board to act, shareholders or raiders launch control contests to replace the board and management. D) The corporate governance system attempts to align interests by providing incentives for taking the right action and punishments for taking the wrong action. E) None of the above
Answer: B) The role of the corporate governance system is to mitigate the conflict of interest that results from the combination of ownership and control without unduly burdening managers with the risk of the firm.
Explanation:
Corporate governance has to do with the combination of laws, rules, and processes through which businesses are being operated, regulated. Corporate governance comprises of both the internal factors and the external factors which has an impact on the interests of the stakeholders in the company.
From the options given, the option that is false is B. It should be noted that the role of corporate governance system isn't about mitigating conflict of interest which arises from the combination of ownership and control.
Use the information presented in Northeastern Mutual Bank's balance sheet to answer the following questions. Bank's Balance Sheet Assets Liabilities and Owners' Equity Reserves $150 Deposits $1,200 Loans $600 Debt $200 Securities $750 Capital (owners' equity) $100 Suppose a new customer adds $100 to his account at Northeastern Mutual Bank, which the owners of the bank then use to make $100 worth of new loans. This would increase the loans account an
Answer:
A. Increase; Deposits
B. Initial Value 15; New Value 16
C. The aim of Capital requirement is to protect the interests of all depositors.
Explanation:
A. This would increase the loans account and INCREASE the DEPOSITS account since the double entry principle state that every Debit entry must have a corresponding Credit entry and every Credit entry must have a corresponding Debit entry, therefore based on the information given assuming the new customer adds the amount of $100 to his account at the Mutual Bank, which we were told that the owners of the bank then use to make $100 worth of new loans, in this case both the loans and deposits will be have to increase by the amount of $100.
B. Calculation to determine the leverage ratio from its initial value to a new value
Calculation for Leverage Ratio using this formula
Leverage Ratio = Reserves+Loans+Securities/Capital
Let plug in the formula
Leverage Ratio = $150+$600+$750/$100
Leverage Ratio = $1,500/$100
Leverage Ratio =15
Calculation for New Leverage Ratio
Using this formula
New Leverage Ratio=Reserves+(Loans+increase in loans)+Securities/Capital
Let plug in the formula
New Leverage Ratio=$150+($600+$100)+$750/$100
New Leverage Ratio=$150+$700+$750/$100
New Leverage Ratio=$1,600/$100
New Leverage Ratio=16
Therefore This would also bring the leverage ratio from its INITIAL VALUE of 15 to a NEW VALUE of 16
C.The aim of CAPITAL REQUIREMENT is to protect the interests of all depositors.
Jasmine owned rental real estate that she sold to her tenant in an installment sale. Jasmine acquired the property in 2008 for $1,840,000; took $644,000 of depreciation on it; and sold it for $1,012,000, receiving $101,200 immediately and the balance (plus interest at a market rate) in equal payments of $91,080 for 10 years. What is the nature of the recognized gain or loss from this transaction?
Answer:
The nature of recognized gain or loss from this transaction is known as capital gain or loss and its important for the computation of individual income taxes
Explanation:
Given the above information, the gain or loss on sale of real estate is computed as;
Original cost
$1,840,000
Less:
Depreciation
($644,000)
Current value of property
$1,196,000
Less:
Sales value
($1,012,000)
Loss on sale
$184,000
Here, there is loss on sale because sales is less than the present value of the property taken into consideration, hence a capital loss is recognized.
The 1255 people residing in the state of Oz want their yellow brick road repaved. It could be repaved with standard asphalt for a cost of $163403 or with shimmering gold asphalt for $8623195. The senator that represents Oz in the national legislature argues that the yellow brick road is a national treasure and a tourist attraction. As such, the senator argues that the nation of 4363963 people should pay for the repaving. Round your answer to two decimals for all of the following questions.
What is the cost per person if the national government pays for gold asphalt?
$ ________ /person
What is the cost per person if the state of Oz pays for gold asphalt?
$ ________/person
What is the cost per person if the state of Oz pays for standard asphalt?
$________/person
Which asphalt will likely be chosen if the residents of Oz?
a. gold asphalt
b. standard asphalt
Which asphalt will likely be chosen if the national bear the cost of repaving?
government bears the cost of repaving?
a. gold asphalt
b. standard asphalt
Answer:
Part 1
Option b, Standard Asphalt as it will cost less per person as compared to the Gold Asphalt.
Part 2
Option B, Standard Asphalt as it will cost less per person as compared to the Gold Asphalt
Explanation:
Given
Total Population of the nation = 4363963
Total population of the state of OZ = 1255
The cost per person if the national government pays for gold asphalt = $8623195/4363963 = 1.976 dollars per person
The cost per person if the state of Oz pays for gold asphalt =
$ 8623195/1255= $6871 per person
The cost per person if the state of Oz pays for standard asphalt =
$163403/1255 = $130 per person
Part 1
Option b, Standard Asphalt as it will cost less per person as compared to the Gold Asphalt.
Part 2
Option B, Standard Asphalt as it will cost less per person as compared to the Gold Asphalt
Cusic Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $24,700, and the company expects to sell 1,640 per year. The company currently sells 1,990 units of its existing model per year. If the new model is introduced, sales of the existing model will fall to 1,660 units per year. The old board retails for $23,100. Variable costs are 53 percent of sales, depreciation on the equipment to produce the new board will be $1,035,000 per year, and fixed costs are $3,250,000 per year. If the tax rate is 24 percent, what is the annual OCF for the project
Answer: $9,524,922
Explanation:
The annual OCF of the project will be calculated as
= EBIT + Depreciation - taxes
First, we have to calculate the EBIT which will be:
= [ $24,700 x 1,640 - ( 1,990-1,660 x $23,100 ]
= $40,508,000 - (330 × $23100)
= $40,508,000 - $7,623,000
= $ 32,885,000
Variable cost will then be:
= $32,885,000 × 53%
= $32,885,000 x 0.53
= $ 17,429,050
Therefore, EBIT will be:
= $32,885,000 - $ 17,429,050 - Fixed cost - depreciation
= $32,885,000 - $ 17,429,050 - $3,250,000 - $1,035,000
= $11,170,950
Then, we calculate the value of tax which will be:
= $11,170,950 x 0.24
= $2,681,028
Therefore, OCF will be:
= EBIT + Depreciation - taxes
= $11,170,950 + $1,035,000 - $2,681,028
= $9,524,922
According to the survey article on mergers by Mukherjee et al,
A) a minority of managers believe that diversification can be a good reason to merge.
B) acquiring managers discount targets’ cash flows at the targets’ cost of capital.
C) managers do not believe operating synergies to be important in merger decisions.
D) managers do not use the discounted cash flow formula to value a target in a merger.
On January 8, Quastrar, Inc. sent Hylian Company a letter offering to sell $10,000 in restaurant supplies. On January 18, Hylian mailed a letter to Quastrar accepting the offer. Quastrar received the acceptance letter on January 20. On January 17, Quastrar sent a letter revoking the offer. Hylavian received this letter on January 21. A contract between Quastrar and Hylavian: A. was not formed because the revocation was effective before the acceptance was sent. B. was not formed because the revocation was effective before the acceptance was received. C. was formed on January 18. D. was formed on January 20
Answer:
C. was formed on January 18
Explanation:
Since in the question it is mentioned that On Jan 8, Quastrar sent the letter for selling the restaurant supplies to Hylian company for $10,000. On Jan 17, Quastrar sent the revoking letter offer and the same would be received by Hylian on Jan 21. On Jan 18, Hylian mailed the letter regarding the acceptance to Quastrar and the same would be received by Quastrar on Jan 20.
So, the contract between them would be created on Jan 18 as the acceptance is sent on Jan 18 i.e. prior the revocation letter
Corporate structure may be defined as
A. the way a corporate building is structured
B. whether a company pays corporate taxes
C. the method a company uses to pay its employees
D. the way a businss is organized
Answer:
it is D. the way a business is organized
Explanation:
The corporate structure consists of several strata of positions with their own specific responsibilities within the company.
The end result of each position will be integrated with one another and all of them will contribute to whether company manages to achieve its goal or not.
Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate of rd = 11% as long as it finances at its target capital structure, which calls for 45% debt and 55% common equity. Its last dividend (D0) was $1.85, its expected constant growth rate is 3%, and its common stock sells for $22. EEC's tax rate is 25%. Two projects are available: Project A has a rate of return of 13%, and Project B's return is 10%. These two projects are equally risky and about as risky as the firm's existing assets. What is its cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places. % What is the WACC? Do not round intermediate calculations. Round your answer to two decimal places. % Which projects should Empire accept? -Select-
Answer:
11.66
7.6475
project A
Explanation:
Kevin purchases 1,000 shares of Bluebird Corporation stock on October 3, 2020, for $115,000. On December 12, 2020, Kevin purchases an additional 750 shares of Bluebird stock for $80,500. According to market quotations, Bluebird stock is selling for $115 per share on 12/31/20. Kevin sells 500 shares of Bluebird stock on March 1, 2021, for $64,400.
Required:
a. What is the adjusted basis of Kevin’s Bluebird stock on December 31, 2020?
b. What is Kevin’s recognized gain or loss from the’ sale of Bluebird stock on March 1, 2021, assuming dial the shares sold are from the shares purchased on December 12, 2020?
c. What is Kevin’s recognized gain or loss from the sale of Bluebird stock on March 1, 2021, assuming that Kevin cannot adequately identify the shares sold?
Answer:a)$195,500 b) $10,735 c)$6,900
Explanation
a)adjusted basis of Kevin’s Bluebird stock on December 31, 2020?
1,000 shares was bought for $115,000
Therefore it was bought at $115 per share
Also
750 shares was bought at $80,500 and therefore bought at 107.33 per share
So in total of 1750 shares, He spent $195,500 ($115,000+ $80,500)
b.On December 12, 2020,he bought shares at 107.33 per share
500 shares would be 500 x $107.33=$53, 665
Therefore, Kevin’s recognized gain or loss from the’ sale of Bluebird stock on March 1, 2021 would be
$64,400- $53, 665 = $10,735
c.Assuming he cannot identify the shares sold, then we can say they are sold on a FIFO ( first in first out) basis. So we would consider the shares bought on October 3, 2020
so we have that
500 x $115=$57,500
$64,400 - $57,500 = $6,900
Suppose that you are considering purchasing an investment property for $30 million. The property is expected to have a year 1 net operating income of $1.8 million. You expect to finance the purchase of the property with a 30-year loan for 60% of the purchase price. If the annual interest rate on the loan is 5% with monthly payments and monthly compounding, what will the year 1 before-tax cash flow be for the property
Answer:
b. $640,465.32
Explanation:
Options include "$1,800,000, $640,465, ($132,558), $614,846, $704,512"
I/Y = 0.42% [5%/12]
N = 360 [12*30]
PV = -$18,000,000 [-30000000*60%]
FV = $0
So, we calculate the PMT using financial calculator
Monthly payment (CPT) = PMT(I/Y. N, PV, FV)
Monthly payment (CPT) = PMT(0.42%. 360, 18000000, 0)
Monthly payment (CPT) = $96,627.89
Before-tax cash flow = Expected year 1 net operating income - 12*PMT
Before-tax cash flow = $1,800,000 - 12*$96,627.89
Before-tax cash flow = $1,800,000 - $1,159,534.68
Before-tax cash flow = $640,465.32
The phase of the business cycle that includes a period of consistent growth
in GDP and falling unemployment is called a(n).
A. trough
B. contraction
C. expansion
D. peak
The phase of the business cycle that includes a period of consistent growth in GDP and falling unemployment is called expansion.
What do you mean by business cycle?A business cycle is characterized by four main stages that are expansion, peak, contraction, and trough.
The business cycle stage of expansion is when an economy experiences relatively rapid growth, interest rates tend to be low, production increases and inflationary pressures build.
Therefore, C is the correct option.
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Presented below is information related to Ricky Henderson Company.
Cost Retail
Beginning inventory $ 282,140 $ 291,600
Purchases 1,425,000 2,144,000
Markups 92,300
Markup cancellations 17,400
Markdowns 37,900
Markdown cancellations 6,100
Sales revenue 2,346,000
Compute the inventory by the conventional retail inventory method.
Answer:the inventory by the conventional retail inventory method=the cost of Ending inventory becomes == $90,236.
Explanation:
Inventory computed for Ricky Henderson Company
Using the conventional retail inventory method, we have
Cost Retail
Beginning of Inventory $ 282,140 $ 291,600
Purchases 1,425,000 2,144,000
Total 1,707,140 2,435,600
Add:
Net Markups 74,900
(Markups -Markup 92,300 - 17,400)
cancellations)
Total 1,707,140 2510500
Less:
Net Markdown 31,800
(Markdowns -Markdown (37,900 - 6,100)
cancellations)
Sales price of goods 2,478,000
Sales revenue 2,346,000
The retail ending 132,700
(Sales price of goods-Sales revenue)
Therefore,
The retail cost ratio is = 1,707,140 /2,510,500=0.68= 68%
Hence, the cost of Ending inventory becomes = 132,700 x 68%
= $90,236.
Web Cites Research projects a rate of return of 20% on new projects. Management plans to plow back 30% of all earnings into the firm. Earnings this year will be $3 per share, and investors expect a 12% rate of return on stocks facing the same risks as Web Cites. a. What is the sustainable growth rate
Answer:
6%
Explanation:
Sustainable growth rate is the rate of growth a company can afford in the long term
Sustainable growth rate (g) = b x ROE
b = retention rate. It is the portion of earnings that is not paid out as dividends = 30%
ROE = return on equity = 20%
Return on equity is an example of a profitability ratio.
Profitability ratios measure the ability of a firm to generate profits from its asset
g = 0.3 x 0.2 = 0.06 = 6%
Based on the information given the sustainable growth rate is 6%.
Using this formula
Sustainable growth rate= ROE × Plowback ratio
Where:
ROE=20%
Plowback ratio=30%
Let plug in the formula
Sustainable growth rate = 0.20 × 0.30
Sustainable growth rate=0.06×100
Sustainable growth rate= 6.00%
Inconclusions the sustainable growth rate is 6%.
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An economy starts in a long-run equilibrium, but then a severe drought kills crops and dramatically increases the price of food. If the Federal Reserve wanted to stabilize the economy and return it back to full employment, it would Group of answer choices decrease the money supply, which would restore the original price level increase the money supply, but prices would forever be higher decrease the money supply, but prices would forever be lower increase the money supply, which would restore the original price level
Answer:
increase the money supply, but prices would forever be higher.
Explanation:
In this scenario, an economy starts in a long-run equilibrium, however a natural disaster such as drought kills crops and dramatically increases the price of food in the market. Thus, if the Federal Reserve wanted to stabilize the economy and return it back to full employment, it would increase the money supply, but prices would forever be higher.
The Federal Reserve System ( popularly referred to as the 'Fed') was created by the Federal Reserve Act, passed by the U.S Congress on the 23rd of December, 1913. The Fed began operations in 1914 and just like all central banks, the Federal Reserve is a United States government agency.
Generally, it comprises of twelve (12) Federal Reserve Bank regionally across the United States of America.
Like all central banks, the Federal Reserve is a government agency that is saddled with the following responsibilities;
I. The Fed controls the issuance of currency in United States of America: it promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.
II. It provides banking services to all the commercial banks in the country because the Federal Reserve is the "lender of last resort."
III. It regulates banking activities in the United States of America: it has the power to supervise and regulate banks.
Which options are available when exporting a table definition and data? Check all that apply
Answer: 1. appending data to an existing table
4. creating a new table and inserting data
Explanation:
Jose Consulting paid $540 cash for utilities for the current month. Determine the general journal entry that Jose Consulting will make to record this transaction. Multiple Choice Utilities Expense 540 Cash 540 Cash 540 Utilities Expense 540 Cash 540 Accounts Payable 540 Utilities Expense 540 Accounts Payable 540 Prepaid Utilities 540 Accounts Payable 540
Answer: Utilities Expense 540 Cash 540
Explanation:
Journal entry simply refers to the recording of transactions in a company's books. It should be noted that every transaction entered in the general ledger begins with a journal entry.
With regards to the question, the journal entry will be:
Debit Utilities expense $540
Credit Cash $540
ABC Company has the following trial balances on 12/31/20x1 and 12/31/20x0: December 31 20x120x0 Cash35,00032,000 Accounts Receivable22,00018,000 Inventory31,00040,000 Property10,00010,000 Plant and equipment100,00082,000 Accumulated depreciation, plant assets(20,000)(14,000) Accounts Payable(25,000)(15,000) Other current liabilities(6,000)(5,000) Bonds Payable(50,000)(50,000) Common Stock(10,000)(10,000) Retained Earnings(40,000)(30,000) Dividends declared2,0002,000 Sales revenue(200,000)(184,000) Cost of Goods Sold120,000100,000 Selling expenses20,00015,000 General and administrative expenses10,0008,000 Interest Expense10001000 What is the cash outflow for merchandise
Answer and Explanation:
The computation of the cash outflow for merchandise is shown below:
Cost of Goods Sold $120,000
Less: Decrease in Inventory -$9,000
Purchases $111,000
Less: Increase in Accounts Payable -$10,000
Cash paid for Merchandise Inventory $121000
Hence, the cash outflow for merchandise is $121,000
The above format should be applied
A firm has an average loan outstanding of $75,000,000 on a $100,000,000 line of credit. There is a commitment fee of 0.25% on the unused portion of the line, and the interest rate on the borrowed funds is LIBOR 175 basis points. LIBOR is 3.0%. What is the effective annual borrowing rate on the line of credit
Answer:
2.44%
Explanation:
Average outstanding loan = $75,000,000
Total line of credit = $100,000,000
Unused portion = $25,000,000 ($100,000,000-$75,000,000)
Commitment fee = 0.25%
Interest rate = 3.175% (3+0.175%)
Commitment fee = Unused portion*Commitment fee rate
Commitment fee = $25,000,000*0.0025
Commitment fee = $62,500
Interest = Average outstanding balance*Interest rate
Interest = $75,000,000*0.03175
Interest = $2,381,250
Total borrowing cost = Commitment fee + Interest
Total borrowing cost = $62,500 + $2,381,250
Total borrowing cost = $2,443,750
Effective borrowing rate = Total borrowing cost / Credit limit
Effective borrowing rate = $2,443,750/$100,000,000
Effective borrowing rate = 0.0244375
Effective borrowing rate = 2.44%
After the issuance of its year 1 financial statements, Serenity Inc. discovered a computational error of $150,000 in the calculation of December 31, year 1 inventory. The error resulted in a $150,000 overstated in the cost of goods sold for the year ended December 31, year 1. In October, year 2, Serenity paid $500,000 to settle litigation initiated it during year 1. In the financial statements for year 2, the year 1 retained earnings balance, as previously reported, should be adjusted by (ignore income taxes):_________-
a. $350,000 debit
b. $500,000 debit
c. $150,000 credit
d. $650,000 credit
Answer: C. $150,000 credit
Explanation:
In the financial statements for year 2, it should be noted that the year 1 retained earnings balance, should be adjusted by $150,000 credit.
The corrections of errors should be treated as the period adjustments before. In this case, the $150,000 overstatement for the cost of goods that was sold in the previous year, will then be credited to the beginning balance of the retained earnings.
Therefore, the correct option is C.
Indirect: Computing cash flows from operation
Case X Case Y Case Z
Net income $7,200 $180,000 $129,600
Depreciation expense 54,000 14,400 43,200
Accounts receivable increase (decrease) 72,000 36,000 (7,200)
Inventory increase (decrease) (36,000) (18,000) 18,000
Accounts payable increase (decrease) 43,200 (39,600 ) 25,200
Accrued liabilities increase (decrease) (79,200 ) 21,600 (14,400)
For each of the above separate cases X, Y, and Z, compute cash flows from operations using the indirect method.
Answer:
CASE X CASE Y CASE Z
NET INCOME $7,200 $180,000 $129,600
ADJUSTMENT TO RECONCILE
NET INCOME TO NET CASH
DEPRECIATION $54,000 $14,400 $43,200
CHANGES IN ASSET & LIABILITIES
ACCOUNT RECEIVABLES $72,000 $36,000 ($7,200)
INVENTORY ($36,000) ($18,000) $18,000
ACCOUNT PAYABLE $43,200 ($39,600) $25,200
ACCRUED LIABILITY ($79,200) $21,600 ($14,400)
NET CASH PROVIDED BY $61,200 $194,400 $194,400
OPERATING ACTIVITY
ouvenir sheets to stamp collectors. The postal service purchases the souvenir sheets from a supplier for $1.80 each. St. Vincent has been selling the souvenir sheets for $14.00 each and ordinarily sells about 100,000 units. To test the market, the postal service recently priced a new souvenir sheet at $12.60 and sales increased to 114,000 units. Required: 1. What total contribution margin did the postal service earn when it sold 100,000 sheets at a price of $14.00 each
Answer:
Total contribution margin= $1,220,000
Explanation:
Giving the following information:
Purchase price= $1.8
Selling price= $14
Number of untis= 100,000
First, we will determine the unitary contribution margin:
Unitary contribution margin= selling price - unitary variable cost
Unitary contribution margin= 14 - 1.8
Unitary contribution margin= $12.2
Now, the total contribution margin:
Total contribution margin= 100,000*12.2
Total contribution margin= $1,220,000