Answer:
$5,000,000
Explanation:
Particulars Amount
incremental increase in revenues $15,000,000
- Incremental increase in operating costs $10,000,000
- Incremental depreciation expense $5,000,000
Earnings before interest and taxes $0
Tax ($0 *35%) $0
Operating Income $0
+ Incremental depreciation expense $5,000,000
After Tax Cash flow for capital budgeting $5,000,000
On September 15, 2021, Oliver's Mortuary received a $7,200, nine-month note bearing interest at an annual rate of 8% from the estate of Jay Hendrix for services rendered. Oliver's has a December 31 year-end. What adjusting entry will the company record on December 31, 2021
Answer: PLease see answer below
Explanation:
Date Account title and explanation Debit Credit
Dec 31 Interest receivable $168
2021 Interest revenue $168
Calculation
Interest =Principal x time x rate
= 7,200 x 8% x 3.5 /12(15th september to 31st December)
=$168
The following U.S. Treasury bond is listed in the The Wall Street Journal: Rate Mo/Yr Bid Asked 9.50 Oct 38 135:30 136:04 This $1,000 par value bond has 18 years to maturity and makes semi-annual coupon interest payments. If you purchased this bond, what would be the bond's yield to maturity
Answer:
6.35%
Explanation:
If you purchase this bond you will need to pay $1,000 x 136.04% = $1,360.40
the coupon rate is 9.5% / 2 = 4.75% or $47.50 every six months
the bond matures in 18 years or 36 semiannual periods
yield to maturity = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]
YTM = {47.5 + [(1,000 - 1,360.4)/36]} / [(1,000 + 1,360.4)/2]
YTM = 37.49 / 1,180.2 = 0.031766 x 2 (annual yield) = 0.06353 = 6.35%
DEFINITION TERM 1. Subtract outstanding checks from the bank balance. 2. Compute the adjusted bank balance. 3. Enter the bank statement balance from the bank statement. 4. Add any unrecorded deposits to the bank balance. 5. Compute the adjusted book balance. 6. Add any unrecorded interest earned to the book balance. 7. Enter the company’s book balance from its accounting records. 8. Subtract bank fees from the book balance.
Complete Question:
What are the correct steps in preparing Bank reconciliation in a chronological order?
Answer:
1. Enter the bank statement balance from the bank statement.
2. Add any unrecorded deposits to the bank balance.
3. Subtract outstanding checks from the bank balance.
4. Compute the adjusted bank balance
5. Enter the company's book balance from its accounting records.
6. Add any unrecorded interest earned to the book balance.
7. Subtract bank fees from the book balance.
8. Compute the adjusted book balance.
Explanation:
In Financial accounting, bank reconciliation can be defined as an evaluation which give a complete details of the financial items responsible for any difference between the balance of the cash account in the balance sheet and the cash balance reported in an entity's bank statement. These reconciliations should be done at regular intervals so as to ensure a balanced record of the cash account are kept by an organization or firm.
A bank reconciliation mainly computed by an accountant, gives the difference between the balance in relation to the bank statement and the cash balance with respect to the accounting records of the depositor in a particular financial institution.
The steps in preparing Bank Reconciliation in a chronological order are;
1. You should enter the bank statement balance from the bank statement.
2. Add any unrecorded deposits to the bank balance.
3. Subtract outstanding checks from the bank balance.
4. Compute the adjusted bank balance
5. Enter the company's book balance from its accounting records.
6. Add any unrecorded interest earned to the book balance.
7. Subtract bank fees from the book balance.
8. Compute the adjusted book balance.
The main purpose of a bank reconciliation is to ensure an accuracy of the depositor's financial information and that of it's bank records.
In a nutshell, after a reconciliation of the bank statement, the adjusted bank balance should be equal to the company's ending adjusted cash balance on the balance sheet.
The correct steps in preparing Bank reconciliation in a chronological order: 1. Enter the bank statement balance from the bank statement.
2. Add any unrecorded deposits to the bank balance.
3. Subtract outstanding checks from the bank balance.
4. Compute the adjusted bank balance
5. Enter the company's book balance from its accounting records.
6. Add any unrecorded interest earned to the book balance.
7. Subtract bank fees from the book balance.
8. Compute the adjusted book balance.
Bank reconciliation is described in financial accounting as an evaluation that provides detailed details of the financial items responsible for any difference between the balance of the cash account on the balance sheet and the cash balance shown on an entity's bank statement. These reconciliations should be performed at regular periods to guarantee that an organisation or corporation maintains a balanced record of the cash account.
A bank reconciliation, which is mostly computed by an accountant, provides the difference between the balance on the bank statement and the cash balance on the depositor's accounting records at a certain financial institution.
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Epiphany is an all-equity firm with an estimated market value of $400,000. The firm sells $275,000 of debt and uses the proceeds to purchase outstanding equity. Compute the weight in equity and the weight in debt after the proposed financing and repurchase of equity. Group of answer choices 0.31, 0.69 0.34, 0.66 0.48, 0.52 0.69, 0.31
Answer:
Epiphany
Weight in equity = 0.31
Weight in debt = 0.69
Explanation:
a) Data and Calculations:
Estimated market value of equity = $400,000
Debts = $275,000
Net equity after debt = $125,000
Weight in equity = $125,000/$400,000 = 0.31
Weight in debt = $275,000/$400,000 = 0.69
b) The weight in equity shows the relationship between the equity and the total capital (equity and debt) in use in Epiphany after the sale of debt and repurchase of outstanding equity.
c) The weight in debt shows the relationship between the debt capital and the total capital (equity and debt) in use in Epiphany after the sale of debt and repurchase of outstanding equity.
Question 3
A situation where the level of output scale and average costs are all rising is called
Answer: Decreasing return to scale
Explanation:
Decreasing return to scale is a situation where the level of output, scale and average costs are all rising.
Decreasing return to scale happens when there's a rise in inputs that are involved in production process such as labour and capital which brings about a increase in output as well even though it's lesser.
State the method of acknolwdgement
Explanation:
A page of acknowledgements is usually included at the beginning of a Final Year Project, immediately after the Table of Contents.
Acknowledgements enable you to thank all those who have helped in carrying out the research. Careful thought needs to be given concerning those whose help should be acknowledged and in what order. The general advice is to express your appreciation in a concise manner and to avoid strong emotive language.
Note that personal pronouns such as 'I, my, me …' are nearly always used in the acknowledgements while in the rest of the project such personal pronouns are generally avoided.
The following list includes those people who are often acknowledged.
Note however that every project is different and you need to tailor your acknowledgements to suit your particular situation.
Main supervisor
Second supervisor
Other academic staff in your department
Technical or support staff in your department
Academic staff from other departments
Other institutions, organizations or companies
Past students
Family *
Friends *
stock that has a current price of $25.00, a beta of 1.25, and a dividend yield of 6%. If the Treasury bill yield is 5% and the market portfolio is expected to return 14%, what should MUSS’s stock sell for at the end of an investor's two year investment horizon?
Answer:
$30.2067
Explanation:
From the given question, using the dividend discount model
[tex]V_0 = \dfrac{D_1}{r - g}[/tex]
where:
r is the Expected return on stock and be calculated as:
Expected return on stock = Risk free rate + Beta × (Expected Market Return - Risk free rate)
Expected return on stock = 5% + 1.25 × (14% - 5%) = 16.25%
However, the current price in this process will b used as the dividend price for all future expenses.
Dividend Yield = Current Dividend/The Share Price
Current dividend D0 = 6% × $25.00 = $1.50
D₁ = D₀ × (1 + g)
D₁ = 1.5 × (1 + g)
Thus, we can now employ the use of the growth dividend model (constant) to determine the value of g as follows:
[tex]25 = \dfrac{1.5 \times (1 + g)}{0.1625 - g}[/tex]
By cross multiply, we have:
4.0625 - 25g = 1.5 + 1.5g
collect like terms, we have:
4.0625 - 1.5 = 1.5g + 25g
2.5625 = 26.5g
Divide both sides by 26.5, we have:
2.5625/26.5 = 26.5g/26.5
g = 9.67%
Similarly, suppose the value for the second year-end to be Y₂;
Then the constant growth dividend model can be computed as:
[tex]Y_2 = \dfrac{D_3}{r - g}[/tex]
where;
D₃ = D₂ × (1 + g)
D₂ × (1 + g) = D₁ × (1 + g) × (1 + g)
D₁ × (1 + g) × (1 + g) = D₀ × (1 + g) × (1 + g) × (1 + g)
D₁ × (1 + g) × (1 + g) = D₀ × (1 + g) × (1 + g) × (1 + g) = D₀ × (1 + g) × 3
D₃ = 1.5 × (1 + 9.67%) × 3
D₃ = $1.9876
Finally:
[tex]Y_2 = \dfrac{D_3}{r - g}[/tex]
[tex]Y_2 = \dfrac{1.9876}{0.1625 - 0.0967}[/tex]
Y₂ = $30.2067
When a mentally challenged candidate is overlooked by a recruiter even though he possesses skills that are perfect for the job, which perceptual distortion is likely to be experienced by the recruiter?
a. Halo effect
b. Selective perception
c. Ability stereotypes
d. Projection
e. Self-fulfilling prophecy
The correct answer is C. Ability stereotypes
Explanation:
Ability stereotypes imply incorrect or inaccurate perceptions about people with different abilities including people with intellectual or cognitive disabilities or mentally challenged people. This often means people consider mentally challenged people unable to perform tasks, understand certain information, among others.
This type of stereotyping occurs in the situation presented because the recruiter is not considering a specific candidate because he/she is mentally challenged. However, this condition does not imply the candidate does not have the skills or qualities to be in this job. Indeed, this candidate can be more suitable than an individual with regular intellectual abilities.
Even though commercial airlines have excellent safety records, in the weeks following a crash, airlines often report a drop in the number of passengers, probably because people are afraid to risk flying. a) A travel agent suggests that since the Law of Averages makes it highly unlikely to have two plane crashes within a few weeks of each other, flying soon after a crash is the safest time. What do you think? b) If the airline industry proudly announces that it has set a new record for the longest period of safe flights, would you be reluctant to fly? Are the airlines due to have a crash?
Answer:
A) There is no such thing as the "Law of Averages." The overall probability of an airplane crash does not change due to recent crashes.
Explanation:
This is the complete question below;
Even though commercial airlines have excellent safety records, in the weeks following a crash, airlines often report a drop in the number of passengers, probably because people are afraid to risk flying. A travel agent suggests that since the Law of Averages makes it highly unlikely to have two plane crashes within a few weeks of each other, flying soon after a crash is the safest time. What do you think?
Choose the correct answer below.
A. There is no such thing as the "Law of Averages." The overall probability of an airplane crash does not change due to recent crashes.
B. The "Law of Averages" states that outcomes must even out in the short run. This means that the overall probability of an airplane crash is higher due to recent crashes.
C. The "Law of Averages" states that outcomes must even out in the short run. This means that the overall probability of an airplane crash is lower due to recent crashes.
D. The "Law of Averages" does not apply to this situation. The overall probability of an airplane crash does not change due to recent crashes.
We are informed from the question that commercial airlines have excellent safety records, in the weeks following a crash, airlines often report a drop in the number of passengers, probably because people are afraid to risk flying. A travel agent suggests that since the Law of Averages makes it highly unlikely to have two plane crashes within a few weeks of each other, flying soon after a crash is the safest time.
In this case, There is no such thing as the "Law of Averages." The overall probability of an airplane crash does not change due to recent crashes.
There was fact that the commercial airlines has excellent safety records in the past and there is a crash after the following week, all these doesn't have any connection with people flying soon after a crash because they think is the safest time.
Airline transportation has its pros and cons. The answers are given below;
My point is that There is nothing like the "Law of Averages." The total likelihood of an airplane crash will not be altered due to recent crashes. When one take a flight, it is usually done at your own risk.If the airline industry proudly announces that it has set a new record for the longest period of safe flights, I would not be be reluctant to fly. Every airline companies are known to have strict maintenance of their planes are its parts.
They ensure that their flights does not have any issue on the way, Even though things do happen, that does not mean I would be scare and not fly.
The airline is not due to crash. This is because the likelihood of a crash occurring is not due to the time a previous crash occurred. One should not be scared or afraid of flying.
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The transactions listed below are typical of those involving New Books Inc. and Readers’ Corner. New Books is a wholesale merchandiser and Readers’ Corner is a retail merchandiser. Assume all sales of merchandise from New Books to Readers’ Corner are made with terms 3/10, n/30, and that the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended August 31.
a. New Books sold merchandise to Readers’ Corner at a selling price of $625,000. The merchandise had cost New Books $445,000.
b. Two days later, Readers’ Corner complained to New Books that some of the merchandise differed from what Readers’ Corner had ordered. New Books agreed to give an allowance of $11,000 to Readers’ Corner.
c. Just three days later, Readers’ Corner paid New Books, which settled all amounts owed.
Required:
1. Indicate the effect (direction and amount) of each transaction on the Inventory balance of Readers' Corner. (Enter all amounts as positive values.)
2. Prepare the journal entries that Readers’ Corner would record and show any computations. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Answer:
Readers' Corner
1. Effect of each transaction on the Inventory Balance:
a. $625,000 Purchase: Inventory balance is increased
b. $11,000 Allowance: Inventory balance is decreased.
c. $614,000 Payment: Inventory balance is not affected.
2.
a. Debit Inventory $625,000
Credit Accounts Payable (New Books) $625,000
To record the purchase of new books on account.
b. Debit Accounts Payable (New Books) $11,000
Credit Inventory $11,000
To record the allowance received from New Books.
c. Debit Accounts Payable (New Books) $614,000
Credit Cash Account $614,000
To record the payment on account.
Explanation:
Readers' Corner records its transactions with New Books Inc. by initially using the journal. The entries in the journal identify the accounts involved in each transaction. During the recording, the accounts to be debited and the ones to be credited in the general ledger are identified and recorded accordingly.
1.Processes A, B, C, D, E, and F require service times of 3, 5, 2, 5, 3, and 5. Their arrival times are 0, 1, 3, 9, 10, and 12. What is the average turnaround time, waiting time, response time, and throughput when using SRJF, RR (q
Answer:
please check attachment for the answers I gave. they are in tabular form
Explanation:
ere are simplified financial statements for Watervan Corporation:
INCOME STATEMENT
(Figures in $ millions)
Net sales $
888.00
Cost of goods sold
748.00
Depreciation
38.00
Earnings before interest and taxes (EBIT) $
102.00
Interest expense
19.00
Income before tax $
83.00
Taxes
17.43
Net income $
65.57
BALANCE SHEET
(Figures in $ millions)
End of Year Start of Year
Assets
Current assets $
376
$
326
Long-term assets
272
229
Total assets $
648
$
555
Liabilities and shareholders’ equity
Current liabilities $
201
$
164
Long-term debt
115
128
Shareholders’ equity
332
263
Total liabilities and shareholders’ equity $
648
$
555
The company’s cost of capital is 8.5%.
a. Calculate Watervan’s economic value added (EVA). (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)
b. What is the company’s return on capital? (Use start-of-year rather than average capital.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
c. What is its return on equity? (Use start-of-year rather than average equity.) (Enter your answer as a percent rounded to 2 decimal places.)
d. Is the company creating value for its shareholders?
Answer:
income statements okay
Explanation:kokay
Corporation A has the following returns for the past three years: 7 percent, 13 percent, and 10 percent. Assume each year return had the same probability (weights of 1/3 each). Calculate the expected return
Answer:
10.00%
Explanation:
The expected return is the weighted average of all the returns recorded thus far wherein the probability of each return occurring is used as the weight of each return as shown below:
Expected return=sum of (weight* value of return)
Expected return=(7%*1/3)+(13%*1/3)+(10%*1/3)
Expected return=0.023333333 +0.043333333 +0.033333333
Expected return=10.00%
The following are the transactions for the month of July. Units Unit Cost Unit Selling Price July 1 Beginning Inventory 40 $ 10 July 13 Purchase 200 11 July 25 Sold ( 100 ) $ 14 July 31 Ending Inventory 140 Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under (a) FIFO, (b) LIFO, and (c) weighted average cost. Assume a periodic inventory system is used.
Answer:
(a) FIFO (b) LIFO (c) weighted
average cost:
Cost of goods available for sale $2,600 $2,600 $2,600
Ending inventory 1,540 1,500 1,516
Sales $1,400 $1,400 1,400
Cost of goods sold 1,060 1,100 1,083
Gross profit $340 $300 $317
Explanation:
a) Data and Calculations:
Units Unit Cost Unit Selling Price
July 1 Beginning Inventory 40 $ 10 $400
July 13 Purchase 200 11 2,200
July 25 Sold ( 100 ) $ 14 (1,400)
July 31 Ending Inventory 140
July 31 Goods available 240
Average unit cost = $10.83 ($2,600/240)
FIFO:
Cost of goods available for sale $2,600 ($400 + $2,200)
Ending inventory 1,540 (140 * $11)
Sales $1,400 ($14 * 100)
Cost of goods sold 1,060 (40 * $10 + 60 * $11)
Gross profit $340
LIFO:
Cost of goods available for sale $2,600 ($400 + $2,200)
Ending inventory 1,500 (40 * $10 + 100 * $11)
Sales $1,400 ($14 * 100)
Cost of goods sold 1,100 (100 * $11)
Gross profit $300
Weighted Average:
Cost of goods available for sale $2,600 ($400 + $2,200)
Ending inventory 1,516 (140 * $10.83)
Sales $1,400 ($14 * 100)
Cost of goods sold 1,083 (100 * $10.83)
Gross profit $317
Osgood Company, which applies overhead at the rate of 190% of direct material cost, began work on job no. 101 during June. The job was completed in July and sold during August, having accumulated direct material and labor charges of $27,000 and $15,000, respectively. On the basis of this information, the total overhead applied to job no. 101 amounted to:
Answer: $51300
Explanation:
From the question, we are informed that Osgood applies overhead at rate of 190% of direct cost material and we've been given the direct cost material as $27, 000. Therefore, the total overhead applied to the job will be:
= $27000 × 190%
= $27000 × 1.9
= $51300
Select all that apply What is the difference between an adjusted trial balance and an unadjusted trial balance? (Check all that apply.) Multiple select question. The adjusted trial balance is a list of accounts and their balances after adjusting entries have been posted. The unadjusted trial balance is more up to date and should be used to prepare financial statements. The adjusted trial balance is used to prepare financial statements. The adjusted trial balance generally has more accounts listed than the unadjusted trial balance.
Answer:
The adjusted trial balance is a list of accounts and their balances after adjusting entries have been posted.The adjusted trial balance is used to prepare financial statements. The adjusted trial balance generally has more accounts listed than the unadjusted trial balance.Explanation:
The Adjusted Trial balance lists the accounts that the company has at their ending balances which means that adjusting entries have been posted.
As a result of the Adjusted Trial Balance having final account balances, it is used to prepare the financial statements for the company as only final balances should be used in such.
More often than not, the Adjusted trial balance will have more accounts than the unadjusted balance because in process of adjustment, more accounts may be created for transactions that were not posted properly. For instance, there might be liability accounts for expenses if the expenses were not paid in the current period.
Imagine that Scott has asked your opinion about whether Barcelona should try to reduce involuntary turnover. What is an advantage of the current practice of firing a large percentage of employees?
a. Barcelona can replace less effective performers with better performers.
b. Barcelona can develop a monoculture in which all employees behave similarly.
c. Barcelona saves money on training costs.
d. Barcelona can gain valuable feedback about deficiencies in the company by conducting exit interviews.
Answer:
a. Barcelona can replace less effective performers with better performers.
Explanation:
As per the conversation i.e. you cant give the training to the people for enthusiastic them as you want to hire them also it is a transient business
So here you need to fire the old employees who are less effective and hire new employees who are enthusiastic that ultimately benefits the company
Therefore option a is correct
and the same is to be considered
It is estimated that the net cash flows to be received from the copyright will be $63,000, and its fair value is $59,850. The accumulated amortization at the end of 2021 was $15,435. Compute the amount of impairment, if any, to be recorded on December 31, 2021. (If there is a loss on impairment, then enter amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Answer:
The amount of the impairment = $3,150.
Explanation:
a) Data and Calculations:
Net cash flows = $63,000
Fair value of copyright = $59,850
Accumulated amortization = $15,435
Impairment gain = $3,150 ($63,000 - $59,850)
b) There is an impairment gain of $3,150 since the net cash flows is higher than the fair value of the copyright. Copyright is an intangible asset and impairment assessment must be conducted yearly.
Mo has a credit card that gives a 3% discount on every purchase. The annual percentage rate on the card is 12%. He is purchasing an electronic reader for $140. Check all that apply. If Mo uses the credit card and pays the full balance during the billing cycle, the cost of the purchase will be $140. If Mo pays cash, the cost of the purchase will be $140. If Mo uses the credit card and pays off the balance at $30 a month for 7 months with no late fees, the cost of the purchase will be $143.34. If Mo pays cash, the cost of the purchase will be $135.80. If Mo uses the credit card and pays off the balance at $20 a month for 7 months with no late fees, the cost of the purchase will be $139.89. If Mo uses the credit card and pays the full balance during the billing cycle, the cost of the purchase will be $135.80.
Answer:
B: If Mo pays cash, the cost of the purchase will be $140.
E: If Mo uses the credit card and pays off the balance at $20 a month for 7 months with no late fees, the cost of the purchase will be $139.89.
F: If Mo uses the credit card and pays the full balance during the billing cycle, the cost of the purchase will be $135.80.
The correct answers to this question are B, E, and F and they are also
answers 2, 5, and 6.
Based on the information given, the correct options will be:
If Mo pays in cash, the cost of the purchase will be $140. If Mo uses the credit card and pays off the balance at $20 a month for 7 months with no late fees, the cost of the purchase will be $139.89. If Mo uses the credit card and pays the full balance during the billing cycle, the cost of the purchase will be $135.80.It should be noted that when she pays in cash, she'll have to pay $140. In a situation whereby she uses the credit card, she'll be given a discount of 3%. Therefore, the amount that she'll have to pay will be:
= $140 - (3% × $140)
= $140 - (0.03 × $140)
= $140 - $4.20
= $135.80.
In conclusion, the correct options are B, E, and F.
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Percentage of sales budgeting can also be called _____.
arbitrary budgeting
objective and task budgeting
rule of thumb budgeting
competitive budgeting
Answer:
promotional budget is set as a percentage of current or anticipated sales
Typical percent of sales is 2%-5%
Explanation:
so I would have to say arbitrary budgetingAll three of the $5000 billion GDP figures (Production, Income and Spending) are in ____________ dollars.
Answer: D inflation adjusted, real
Explanation:
The GDP calculation acquired in the flow chart of $5,000 billion were all done after adjusting for inflation which means that they were in real dollars.
Inflation adjusted GDP enables more effective comparison between different periods as inflation tends to inflate the prices of goods and services and can make one think that the economy has grown more than it actually has.
When the value of GDP is inflation adjusted, it can then be seen just how much the economy improved or shrank.
Despite its drastic downsizing a decade ago under a federally funded bailout and bankruptcy restructuring, General Motors again finds itself with too many U.S. factories that can turn out too many vehicles. GM's factory-utilization rate in North America averaged 95.1% over the past two years, below Ford's 111.9% and Toyota 's 101.4%. (Rates can exceed 100% when factories work a 3rd shift or schedule overtime work on weekends.) The auto industry often runs its factories dawn-till-dusk or even around the clock to boost their efficiency. Factory-utilization rates typically measure how much production capacity a plant uses based on a 16-hour workday. GM says its utilization rate is 100% on average when its round-the-clock truck and SUV lines are figured in with the relatively sleepy factories making cars. GM said it is working to "drive further improvements" in its plant utilization, including adding crossover SUVs to more factory lines. A plant in the Kansas City area that now makes only the Malibu is scheduled to begin assembling a small Cadillac SUV soon. But such a switch-over typically takes car makers several years of lead time, to order and install new assembly-line equipment and tooling.
Answer:
The question is actually missing (see attached image):
the answer is:
D. Less than that of its competitors.
Explanation:
Personally, I believe that GM is an extremely spoiled child that refuses to assume responsibility for its continuous and never ending mistakes. GM has either filed for bankruptcy or threatened to do so twice in the last 30 years or so, and every time the US government has to bail them out. But GM keeps doing things wrong.
It doesn't matter if you like their cars or not, GM is terribly managed. No other company in US history has received so much financial aid from the government and continued to lose money and work inefficiently. The problem is that whenever things go wrong, stockholders lose their money but the executives keep getting tens of millions of dollars. If a company is managed in such a disastrous way, their top management shouldn't get paid that much.
A car factory costs a lot of money, and not using it efficiently is outrageous considering GM's history. If they had never received a cent from the government, then its only their problem. But the government lost $11.2 billion on GM's last bailout. During the 1980s GM lobbied fro the government to impose import quotas on Japanese cars because they were better cars and GM couldn't compete against them. So whenever they do things wrong, big brother has to help them. During the last couple of years GM had to sell most of its foreign operations in order to get cash, and you generally do not make money by selling your assets.
Rocky Mountain Bottling Company produces a soft drink that is sold for a dollar. At production and sales of 1,000,000 units, the company pays $700,000 in production costs, half of which are fixed costs. At that volume, general, selling, and administrative costs amount to $320,000, of which $70,000 are fixed costs. What is the amount of contribution margin per unit
Answer:
contribution margin per unit = $0.40
Explanation:
total variable production costs = $350,000
total fixed production costs = $350,000
total variable S&A expenses = $250,000
total fixed S&A expenses = $70,000
total costs = $1,020,000
total fixed costs = $420,000
total variable costs = $600,000
sales price = $1
variable cost per unit = $600,000 / 1,000,000 = $0.60
contribution margin per unit = $1 - $0.60 = $0.40
A double-entry accounting system is an accounting system: Multiple Choice That records each transaction twice. That records the effect of each transaction in at least two accounts with equal debits and credits. In which each transaction affects and is recorded in two or more accounts but that could include two debits and no credits. That allows total credits to be greater than total debits. That allows total debits to be greater than total credits.
Answer:
That records the effect of each transaction in at least two accounts with equal debits and credits.
Explanation:
A double-entry accounting system is the accounting system in which it shows the impact of each transaction in terms of debit and credit. In this the amount of credit should be equivalent to the amount of credit that means both the amount should be equivalent to each other
hence, the second option is correct and the same is to be considered
The income statement for the year 2015 of Fugazi Co. contains the following information: Revenues$70,000 Expenses: Salaries and Wages Expense$45,000 Rent Expense12,000 Advertising Expense10,000 Supplies Expense6,000 Utilities Expense2,500 Insurance Expense2,000 Total expenses77,500 Net income (loss)$ (7,500) After all closing entries have been posted, the Income Summary account will have a balance of
Answer:
$0
Explanation:
When the closing entries are recorded, so the net profit or net loss would be transferred to the retained earning account with the help of the closing entries
Therefore after closing entries posting, the balance in the income summary account would be zero and the same is to be considered
hence, the balance would be zero
Old Time Savings Bank pays 3% interest on its savings accounts. If you deposit $3,000 in the bank and leave it there: (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. How much interest will you earn in the first year?
Answer:
Interest= $90
Explanation:
Giving the following information:
Initial investment= $3,000
i= 3%
Number of periods= 1
First, we need to calculate the future value, using the following formula:
FV= PV*(1+i)^n
FV= 3,000*1.03= $3,090
Now, the interest earned:
Interest= 3,090 - 3,000
Interest= $90
The point that each glass of lemonade consumed on a hot day brings lower and lower levels of satisfaction is known as the principle of A. increasing opportunity cost. B. decreasing marginal price. C. total benefits. D. increasing marginal cost. E. decreasing marginal benefit.
Answer:
E. decreasing marginal benefit.
Explanation:
The law of diminishing marginal utility can be explained as whenever there is rise in the supply of particular goods/services, then the marginal utility falls. Utility in Economics can be regarded as Satisfaction derived from particular goods/services.
Therefore, in the case of the question, point that each glass of lemonade consumed on a hot day brings lower and lower levels of satisfaction is known as the principle
decreasing marginal benefit. Because as the consumption of the lemonade increases, marginal utility gotten from
every added units taken will start reducing like that.
If Tonya purchased 200 decorative pillows at $12 each and sold 75 of the pillows for $20 each, what is the cost of goods sold
Answer:
the cost of goods sold is $1,500
Explanation:
The computation of the cost of goods sold is
= Opening inventory + purchase - ending inventory
= $0 + 200 × $12 - (200 × $12 - 75 × $20)
= $ + $2,400 - ($2,400 - $1,500)
= $2,400 - $900
= $1,500
hence, the cost of goods sold is $1,500
We simply applied the above formula so that the correct value could come
And, the same is to be considered
You are considering how to invest part of your retirement savings.You have decided to put $400,000 into three stocks: 61% of the money in GoldFinger (currently $28/share), 24% of the money in Moosehead (currently $73/share), and the remainder in Venture Associates (currently $9/share). Suppose GoldFinger stock goes up to $43/share, Moosehead stock drops to $67/share, and Venture Associates stock drops to $6 per share. a. What is the new value of the portfolio? b. What return did the portfolio earn? c. If you don't buy or sell any shares after the price change, what are your new portfolio weights?
Answer:
a. Number of shares of GoldFinger = 61%*400000/24
Number of shares of GoldFinger = 10166.6667
Number of shares of Moosehead = 24%*400,000/73
Number of shares of Moosehead = 1315.0685
Number of shares of Venture Associates = (1 - 61% - 24%) * 400,000/9
Number of shares of Venture Associates = 15% * 400,000/9
Number of shares of Venture Associates = 6666.6667
New value of the portfolio = 10166.6667*$43 + 1315.0685*$67 + 6666.6667*$6
New value of the portfolio = $437,166.6681 + $88,109.5895 + $40000.0002
New value of the portfolio = $565,276.2578
b. The return that the portfolio earn is = ($565,276.2578 - $400,000) / $400,000 = $165,276.2578 / $400,000 = 0.4131906445 = 41.32%
c. Weight of Goldfinger is now = (10166.6667*$43) / $565,276.2578
= $437166.6681 / $565,276.2578
= 0.7734
= 77.34%
Weight of Moosehead is now = (1315.0685*$67) / $565,276.2578
= $88109.5895 / $565,276.2578
= 0.15587
= 15.59%
Weight of Venture is now = 100% - 77.34 - 15.59%
= 7.07%
What factors should be considered for a leader when delegating responsibilities to committee members?
a. Politics and personnel
b. Money and connections
c. Trust and respect
d. Character and job code
What should be considered as key elements when planning the logistics of your event?
a) location, contracts, parking
b) date, director, charity
c) date, location, budget
d) location, budget, profit
What should you do during the development phase regardless of the type of event you are implementing?
a) identify your goals and objectives
b) identify the charity for the event profits
c) identify the location of the event
d) identify who will be the master of ceremonies
Which responsibility best describes the responsibility of the media or marketing director?
a. contracts
b. public relations
c. risk management
d. venue selection
Answer:
1) Character and job code
2) date, location, budget
3) identify your goals and objectives
4) public relations
Explanation:
When considering a committee member for a certain delegated role, a leader must select a person judged to have impeccable character and whose job code corresponds to the role you want to delegate to him/her.
When planning the logistics of an event, a suitable date must be chosen, an accessible and suitable location must be selected and the budget must be fair and manageable.
At the development phase of event planning, the event planner must identify exactly what the goals and objectives of the event are before other factors are considered.
The media or marketing director has the important role of promoting the image of the organization by engaging the public in issues regarding the organization. Hiss/her primary role has to do with public relations.