Which of the following statements is most correct? Select one: a. Other things equal, the interest rate in an area with young population would likely be lower than that in an area with old population. b. If the Fed maintains a policy to expand money supply for several years, the entire yield curve will fall due to a higher expected future inflation. c. Short-term interest rates are less volatile than long-term interest rates because the Fed operates mainly in the long-term sector. d. Immediately after the Fed announces to expand the money supply, the long-term interest rate will drop while the short-term interest rates will raise due to a higher expected future inflation. e. An upward-sloping Treasury yield curve suggests that long-term interest rates are higher than short-term interest rates.

Answers

Answer 1

Answer: e. An upward-sloping Treasury yield curve suggests that long-term interest rates are higher than short-term interest rates.

Explanation:

The Yield curve is used to compare interest rates across different periods as it uses the yields of securities that have the same credit risk/ rating but different maturity periods.

A Treasury yield curve will therefore show treasury rates across different periods. If the yield curve is upward sloping, it means that long term rates are higher than short term rates because the curve starts by plotting short term rates and then moving long-term.


Related Questions

Kent Manufacturing produces a product that sells for $64.00 and has variable costs of $35.00 per unit. Fixed costs are $348,000. Kent can buy a new production machine that will increase fixed costs by $20,500 per year, but will decrease variable costs by $4.50 per unit.

Required:
Compute the contribution margin per unit if the machine is purchased.

Answers

Answer:

The contribution margin per unit is $33.50

Explanation:

The contribution margin per unit in the case when the machine is purchased is shown below:

= Selling price per unit - variable cost per unit

= $64 - ($35 - $4.50)

= $64 - $30.50

=  $33.50

hence, the contribution margin per unit is $33.50 and the same is to be considered

We simply applied the above formula

In 2020, Elbert Corporation had net cash provided by operating activities of $531,000, net cash used by investing activities of $963,000, and net cash provided by financing activities of $585,000. At January 1, 2020, the cash balance was $333,000. Compute December 31, 2020, cash.

Answers

Answer:

$486,000

Explanation:

Elbert Corporation

Cashflow Statement for the year ended December 31, 2020.

Cash flow from Operating Activities

Net cash provided by operating activities                $531,000

Cash flow from Investing Activities

Net cash used by investing activities                      ($963,000)

Cash flow from Financing Activities

Net cash provided by financing activities               $585,000

Movement during the year                                        $153,000

Beginning Cash and Cash Equivalent                      $333,000

Ending Cash and Cash Equivalent                           $486,000

Therefore, December 31, 2020, cash balance is $486,000

On December 31, 2020, Coolwear, Inc. had a balance in its prepaid insurance account of $59,400. During 2021, $97,000 was paid for insurance. At the end of 2021, after adjusting entries were recorded, the balance in the prepaid insurance account was $47,500. Insurance expense for 2021 was:

Answers

Answer:

$108,900

Explanation:

Opening balance in the prepaid insurance account = $59,400

Paid for insurance = $97,000

Balance in insurance account at the end = $47,500

Total amount paid ;

= Opening balance in the prepaid insurance account + paid for insurance

= $59,400 + $97,00

= $156,400

Insurance expense for 2021;

= Total amount paid - Balance at the end in the prepaid insurance account

= $156,400 - $47,500

= $108,900

Jake owns a company called Boat Builders, LLC and one evening he took several of his employees out after work to a bar. After eating and drinking for several hours Jake invited them back to the Boat Builders premises so he and some of the employees could show off a boat they’d been working on. After arriving at Boat Builders they all continued to drink and two of the employees, Tyler and Mark, got into an argument. When Tyler went to use the bathroom Mark attacked him from behind causing him to lose consciousness and break a tooth. Mark made light of it but gave Jake a menacing look so Jake dropped it and went to check on Tyler. Tyler sat up and asked what happened and Jake told him that Mark had attacked him from behind. About an hour passed by during which time Jake went out to his car and got his phone so he could play music for everyone. After an hour, Tyler and Mark began to argue again and they walked outside into the Boat Builders parking lot where Mark attacked Tyler again. Mark left and was later arrested for aggravated battery. Tyler regained consciousness after 10 minutes and drove home even though he was badly injured.
Does Tyler have a negligence claim against Boat Builders? Why or why not? A complete answer will be at least 5 sentences and mention critical facts.

Answers

Answer:

Yes, because Boat Builders, LLC failed to exercise a reasonable standard of care at their premises.

Explanation:

Remember, we are told, "Jake... invited them back to the Boat Builders premises," meaning they (Boat Bilders, LLC) had a duty of care responsibility toward all of his employees present.

Note we are told, "Mark made light of it but gave Jake a menacing look so Jake dropped it," this was a moment that shows Jake's negligence because as the owner of Boat Builders he had a duty of care to ensure no one is hurt without their own fault within their premises (which included their "parking lot").  

Identify the effect that omitting each of the following items would have on the balance sheet
All Interest earned on a note receivable was not recorded.
Assets and stockholders' equity overstated
Depreciation on equipment was not recorded.
Assets understated and stockholders' equity overstated No adjustment was made for supplies used up during the month
Assets overstated and stockholders' equity
An attorney has earned 1/2 of a retainer fee that was received and recorded last month.
No adjustment was recorded for the amount earned.
Assets and stockholders' equity understated
Property taxes are paid annually.
The estimated monthly amount for the taxes was not recorded.
Liabilities and stockholders equity understated
Supplies used up during the month.
Stockholders' equity understated
An attorney has earned 1/2 of a retainer fee that was received and recorded last month.
No adjustment was recorded for the amount earned
Assets and stockholders' equity understated
Property taxes are paid annually.
The estimated monthly amount for the taxes was not recorded.
Liabilities and stockholders equity understated Wages are paid every Friday for the 5-day work week.
The month ended on Monday and no adjustment was recorded.
Liabilities and stockholders' equity overstated
Liabilities overstated and Services provided to customers on the last day of the month were not billed stockholders' equity understated
A tenant paid 6 months' rent in advance when he moved ir on the first day of the month.
No entry was made on the last day of the month
Liabilities understated and stockholders' equity overstated

Answers

Answer:

All Interest earned on a note receivable was not recorded.

Effect: Assets and stockholders' equity overstated

Explanation:  An omitting of interest earned on a note receivable will result to an understatement of assets and stockholders’ equity

Depreciation on equipment was not recorded.

Effect: Assets understated and stockholders' equity overstated

Explanation: An omitting of depreciation on equipment will result to an overstatement of assets and stockholders’ equity

No adjustment was made for supplies used up during the month

Effect: Assets overstated and stockholders' equity

Explanation:  An omitting of supplies adjustment will result to an overstatement of assets and stockholders’ equity

An attorney has earned 1/2 of a retainer fee that was received and recorded last month.  No adjustment was recorded for the amount earned.

Effect: Assets and stockholders' equity understated

Explanation: An omitting of retainer fee adjustment will result to an overstated liabilities and understated stockholders’ equity

Property taxes are paid annually.  The estimated monthly amount for the taxes was not recorded.

Effect: Liabilities and stockholders equity understated

Explanation: An omitting of property tax adjustment entry will result to an understated liabilities and overstated stockholders’ equity

Wages are paid every Friday for the 5-day work week.  The month ended on Monday and no adjustment was recorded.

Effect: Liabilities and stockholders' equity overstated

Explanation: An omitting of outstanding wages adjustment entry will result to an understated liabilities and overstated stockholders’ equity.

Services provided to customers on the last day of the month were not billed

Effect: Asset and stockholders' equity understated

Explanation: An omitting for bill of services provided to customers on the last day of the month will result to an understatement of assets and stockholders’ equity

A tenant paid 6 months' rent in advance when he moved in on the first day of the month.  No entry was made on the last day of the month

Effect: Liabilities understated and stockholders' equity overstated

Explanation:  An omitting of prepaid rent adjustment entry will result to an overstated liabilities and understated stockholders’ equity

Which of the following statements are true? (Check all that apply.) A. Accounting systems generally consist of several subsystems, each designed to process a particular type of transaction. B. Most mobile devices do not need to be tracked and monitored as their loss represents minimal exposure. C. Supervision is especially important in organizations without responsibility reporting or an adequate segregation of duties. D. All system transactions and activities should be recorded in a log that indicates who accessed what data and when. E. Customer relationship management (CRM) software includes budgets, schedules, and standard costs; reports comparing actual and planned performance; and procedures for investigating and correcting significant variances.

Answers

Answer:

A. Accounting systems generally consist of several subsystems, each designed to process a particular type of transaction.

C. Supervision is especially important in organizations without responsibility reporting or adequate segregation of duties

Explanation:

A. Indeed, because the accounting system consists of several subsystems, such as data systems, the workforce, the procedures and instructions, and software with each designed to process a particular type of transaction.

B. When an organization doesn't assign its staff their specific responsibilities it then becomes especially important to supervise the employees, because failing to do so may result in low worker productivity.

The average price for regular gasoline at U.S. pumps fell almost 4 cents in March to​ $2.50 a gallon. The price of crude oil dropped to​ $43.46 per barrel on March​ 17, the lowest since March 2009.

Answers

Answer: C. lower the cost of producing gasoline and increase the supply of gasoline

Explanation:

Gasoline is derived from the distillation of crude oil which means that Crude oil is the main raw material in the production of gasoline. This means that if crude oil sees a reduction in price, input costs for gasoline will decrease as well.

Producers of gasoline will take advantage of this to buy more crude oil and therefore process and make more gasoline which will increase the supply of gasoline in the market and reduce its price.

Hoosier Burger is experiencing operational problems, such as stock-outs, missing sales and poor customer service. What business functions need improvement and what systems project could provide opportunities for this improvement?

Answers

Explanation:

Analyzing the operational problems faced by Hoosier Burguer, it is correct to say that there is a set of organizational functions that could implement improvements in the company. As the improvement of the supply chain management, which would guarantee that the cycle that the product takes from its production until reaching the final consumer was more effective, ensuring that the product arrived in the right quality, in the right quantity and at the right time until the consumer.

It is also essential to improve the sales and marketing functions in the company, in order to implement actions that promote the products, attract more customers and create a better positioning of the company in the market.

Rufus Inc. and Hardy Company are negotiating a nontaxable exchange of business properties. Rufus’s property has a $50,000 tax basis and a $77,500 FMV. Hardy’s property has a $60,000 tax basis and a $90,000 FMV. Which party to the exchange must pay boot to make the exchange work? How much boot must be paid? Assuming the boot payment is made, how much gain or loss will Rufus realize and recognize on the exchange, and what tax basis will Rufus take in the property acquired? Assuming the boot payment is made, how much gain or loss will Hardy realize and recognize on the exchange and what tax basis will Hardy take in the property acquired?

Answers

Answer:

Which party to the exchange must pay boot to make the exchange work?

Rufus must pay boot since the FMV of its property is less than the FMV of Hardy's property.

How much boot must be paid?

$90,000 - $77,500 = $12,500

Assuming the boot payment is made, how much gain or loss will Rufus realize and recognize on the exchange, and what tax basis will Rufus take in the property acquired?

Rufus doesn't have any gain, and the tax basis for the new asset will be $50,000 + $12,500 = $62,500

Assuming the boot payment is made, how much gain or loss will Hardy realize and recognize on the exchange and what tax basis will Hardy take in the property acquired?

Since Hardy's property basis is $60,000 and it would be receiving $50,000 (Rufus's property) + $12,500 = $62,500, then it must recognize a $2,500 gain. The basis of Hardy's new property will be $62,500.

Products should be specified by brand because: a. price levels of brand items are low b. the number of potential suppliers is restricted c. it is difficult to develop accurate specifications for an item d. all of the above e. a and b above.

Answers

Answer:

C. It is difficult to develop accurate specifications for an item.

Explanation:

A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.

Generally, these products are manufactured and distributed through different marketing channels to various wholesalers or retailers before it gets to the consumers or customers.

Hence, each product should be distinguished from another through its brand name in order to enhance easier identification by the customers.

Products should be specified by brand because it is difficult to develop accurate specifications for an item. Thus, when a supplier such as a retailer or wholesaler wishes to place an order to a manufacturer, he or she should specify the order by brand.

When the stock price follows a random walk the price today is said to be equal to the prior period price plus the expected return for the period with any remaining difference to the actual return due to:_________

a. A predictable amount based on the past prices.
b. A component based on new information unrelated to past prices.
c. The security's risk.
d. The risk free rate.
e. None of the above.

Answers

Answer:

e. None of the above.

Explanation:

When the stock price follows a random walk the price today is said to be equal to the prior period price plus the expected return for the period with any remaining difference to the actual return due due to new information related to the stock​". This is because any new information on stock which is unrelated to stock prices will lead to an increase/decrease in the stock price over a period of time.

Speicher sells sports shoes and formal shoes. Sports shoes sell for $110 each and cost $50 in variable expenses to make. Formal shoes sell for $220 and cost $100 in variable expenses to make. Speicher’s fixed expenses are $50,000. If 35% of his revenues are from sports shoes, what is Speicher’s weighted average contribution margin ratio? Provide your answer in decimal form (i.e. 65.2% = 0.652) and to three decimal places. Do not round intermediary calculations.

Answers

Answer:

weighted contribution margin ratio = 0.545

Explanation:

contribution margin of sport shoes = $110 - $50 = $60

contribution margin ratio of sport shoes = $60 / $110 = 0.545454

contribution margin of formal shoes = $220 - $100 = $120

contribution margin ratio of sport shoes = $120 / $220 = 0.545454

35% of total revenues come from sport shoes

weighted contribution margin ratio (it is the same for both products) = 0.545454 = 0.545

If a company purchases equipment costing $4,500 on credit, the effect on the accounting equation would be: Multiple Choice Assets increase $4,500 and liabilities decrease $4,500. One asset increases $4,500 and another asset decreases $4,500. Equity decreases $4,500 and liabilities increase $4,500. Equity increases $4,500 and liabilities decrease $4,500. Assets increase $4,500 and liabilities increase $4,500.

Answers

Answer: Assets increase $4,500 and liabilities increase $4,500.

Explanation:

An asset are the properties which a business or an organization owns. An asset possess an economic value.

Since the equipment purchased is an asset, this will lead to an increase of assets by $4500 and since it was bought on credit and hasn't been paid for, liabilities will also increase by $4500.

The Josey Company uses the weighted average method. The beginning work in process consists of 6,000 units (100% completed as to materials and 50% complete as to conversion costs). The number of units completed was 130,000. The ending work in process consists of 10,000 units (100% complete as to materials and 20% complete as to conversion costs). What are the equivalent units of production for conversion costs

Answers

Answer:

Total equivalent units= 135,000 units

Explanation:

The weighted average method blends the costs and units of the previous period with the costs and units of the current period.

Conversion costs:

Units completed and transferred out= 133,000 units

Ending WIP= 10,000*0.2= 2,000 units

Total equivalent units= 135,000 units

B. Panuto: Isulat sa patlang kung ano ang tinutukoy sa pangungusap.
1. Ang tawag sa taong nagnenegosyo.
2. Ang panimulang salapi na ginagamit sa
pagnenegosyo.
3. Ang isang entrepreneur ay dapat magkaroon nito
upang ang produkto o serbisyo ay kumita ng
maganda
4. Alamin ang pagtatayuan ng negosyo.
5. Mahalaga ito upang maihatid at makilala ang
bagong produkto sa pamilihan.​

Answers

Explanation:

1.negosyante.

2.kapital.

3.ng sapat na kaalaman sa pang negosyo.

4.inquiry

5.flayears

4. Sectoral shifts, frictional unemployment, and job searches Suppose the world price of steel falls substantially. The demand for labor among steel-producing firms in Pennsylvania will . The demand for labor among automobile-producing firms in Michigan, for which steel is an input, will . The temporary unemployment resulting from such sectoral shifts in the economy is best described as unemployment. Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that apply. Improving a widely used job-search website so that it matches workers to job vacancies more effectively Establishing government-run employment agencies to connect unemployed workers to job vacancies Increasing the benefits offered to unemployed workers through the government's unemployment insurance program

Answers

Answer:

decrease

increase

structural unemployment

Improving a widely used job-search website so that it matches workers to job vacancies more effectively

Establishing government-run employment agencies to connect unemployed workers to job vacancies

Explanation:

If the world price of steel falls, the profits that can be earned from producing steel would fall. This would make steel-producing firms cutback on production. If they do this, they would lead less labour, so the demand for labour would fall.

The decrease in the price of steel would make purchasing steel by automobile companies cheaper. This would lead to a rise in production and as a result an increase in the demand for labour.

Structural unemployment occurs when there is a mismatch between the skills of labour and the jobs available.  Measures taken to increase information on available jobs would reduce this type of unemployment

Allowance for Doubtful Accounts, showed a credit balance of $950 on January 1, 2004. During the year, the company wrote off $3,200 of uncollectible accounts, and reinstated $1,300 of previously written off accounts. The Dec 31, 2004 balance of Accounts Receivable is $97,500, and 6% of outstanding accounts receivable are assumed to be uncollectible. What will be the company's Bad Debts Expense for 2004

Answers

Answer:

Bad debts expense = $6,800

Explanation:

Estimated bad debts =  $97,500 * 6%    

Estimated bad debts =  $5,850

                 Allowance for doubtful accounts  

Wrote off         $3,200      Opening  Balance  $950  

                                          Reinstated             $1,300

                                          Adjustment             $6,800

 

                                          Closing balance       $5,850

Bad debts expense = $6,800

At the beginning of the year, Bryers Incorporated reports inventory of $6,100. During the year, the company purchases additional inventory for $21,100. At the end of the year, the cost of inventory remaining is $8,100. Calculate cost of goods sold for the year.

Answers

Answer:

$19,100

Explanation:

The cost of goods sold refers to the actual cost, expended in the manufacturing of goods or products that is produced and then sold in a given period. It comprises all direct costs expended in the manufacturing of goods.

With regards to the above, the cost of goods sold for the year is computed as;

= $6,100 beginning inventory + $21,100 purchases for the period - $8,100 closing inventory

= $19,100

Therefore, the cost of goods sold for the year is $19,100

Q 20.27: Liberty Bicycles currently sells unassembled bikes for $240 each. The variable production costs for each bike are $35 and the fixed production costs are $72. Liberty is thinking about selling the bikes fully assembled for $300 each. The variable costs for assembling one bike will be $18 and the fixed costs will be $31. Given these figures, Liberty will increase its net income per unit by ________ if it opts to assemble the bikes.

Answers

Answer:

$11

Explanation:

Find the incremental effect on net income of assembling the bikes as follows :

Incremental analysis for assembling the bikes per unit

Sales ( $300 - $240)                    $60

Less incremental costs :

Variable costs                               ($18)

Fixed production costs                 ($31)

Incremental Income/(loss)              $11

Conclusion

Thus  Liberty will increase its net income per unit by $11  if it opts to assemble the bikes.

Waterway Company sold 10,100 Super-Spreaders on December 31, 2020, at a total price of $1,050,400, with a warranty guarantee that the product was free of any defects. The cost of the spreaders sold is $535,300. The assurance warranties extend for a 2-year period and are estimated to cost $37,000. Waterway also sold extended warranties (service-type warranties) related to 1,800 spreaders for 2 years beyond the 2-year period for $10,800. Given this information, determine the amounts to report for the following at December 31, 2020: sales revenue, warranty expense, unearned warranty revenue, warranty liability, and cash. Amounts Reported in Income Sales revenue $ Warranty Expense Amounts Reported on the Balance Sheet Unearned Service Revenue $ Cash Warranty Liability

Answers

Answer:

Amounts Reported in Income

Particulars                     Amount

- Sales revenue            $1,050,400

- Warranty expenses    $37,000

Amounts Reported on the Balance Sheet

Particulars                                  Amount

- Unearned service revenue      $10,800

- Cash ($1,050,400 + $10,800)  $1,061,200

- Warranty Liability                      $37,000

Dissolving a limited partnership requires: Group of answer choices a unanimous vote among all partners. a unanimous vote of the general partners and a majority vote of the limited partners. a unanimous vote of the limited partners and consent of any general partner who owns a majority of the rights to receive a distribution as a general partner. a unanimous vote of the general partners and consent of any limited partner who owns a majority of the rights to receive a distribution as a limited partner.

Answers

Answer:

Dissolving a limited partnership

a unanimous vote of the general partners and consent of any limited partner who owns a majority of the rights to receive a distribution as a limited partner.

Explanation:

Partnerships can dissolve if the general partner dies, retires, or withdraws from the partnership.  However, the dissolution of a partnership is subject to the partnership agreement.  It specifies how a partnership should be dissolved.  It is in the absence of a specific agreement that the general rules apply.

Relay Corporation manufactures batons. Relay can manufacture 300,000 batons a year at a variable cost of$750,000 and a fixed cost of $450,000. Based on Relay's predictions, 240,000 batons will be sold at the regular price of $5.00 each. In addition, a special order was placed for 60,000 batons to be sold at a 40% discount off the regular price. Required: By what amount would income before income taxes be increased or decreased as a result of the special order

Answers

Answer:

The total rise in income is $30,000

Explanation:

The computation is shown below:

Sale price     3     {5 × (1 - 0.40)

Less: Incremental cost  2.5   ($750,000 ÷ 300,000)

Increase in income per unit   0.50

Divide by Total units    60,000

Total increase in income   $30,000

Hence, the total rise in income is $30,000 and the same is to be considered

The total rise in income before tax is $30,000 as a result of a special offer when the Relay Corporation manufactures batons.

What is income?

Income is defined as the consumption and saving opportunity achieved by a commodity within a nominal time structure, which is commonly represented in monetary words. Income is challenging to describe conceptually, and the explanation may be further across areas.

Computation of change in income:

According to the given information,

Regular price = $5.

Discount Rate=40%

Then sales price would be:

[tex]\text{Sale Price}= \text{Regular Price}(1- \text{Discount Rate})\\\\\text{Sale Price}=\$5 \text (1 - 0.40)\\\\\text{Sale Price}= \$3[/tex]

Then the incremental cost is:

[tex]\text{Incremental Cost}=\dfrac{ \text{Variable Cost}}{\text{Units Produced}}\\\\ \text{Incremental Cost}=\dfrac{\$750,000}{\$300,000}\\\\ \text{Incremental Cost}=2.5[/tex]

Increase in income per unit:

[tex]\text{Increase In Income}=\text{Sales Price}- \text{Incremental Cost}\\\\\text{Increase In Income}=\$3-\$2.5\\\\\text{Increase In Income}=0.50[/tex]  

Therefore, the increase in income is :

[tex]=\text{Per unit Increase In Income}\times\text{Total Units}\\\\=0.50\times60,000\\\\=\$30,000[/tex]

Learn more about income, refer to:

https://brainly.com/question/17961582

On January 1, 2018, the general ledger of Big Blast Fireworks includes the following account balances:
Accounts Debit Credit
Cash $ 24,300
Accounts Receivable 42,500
Inventory 42,000
Land 79,600
Allowance for Uncollectible Accounts 2,700
Accounts Payable 29,200
Notes Payable (8%, due in 3 years) 42,000
Common Stock 68,000
Retained Earnings 46,500
Totals $ 188,400 $ 188,400
The $42,000 beginning balance of inventory consists of 420 units, each costing $100.
During January 2018, Big Blast Fireworks had the following inventory transactions:
January 3 Purchase 1,050 units for $115,500 on account ($110 each).
January 8 Purchase 1,150 units for $132,250 on account ($115 each).
January 12 Purchase 1,250 units for $150,000 on account ($120 each).
January 15 Return 160 of the units purchased on January 12 because of defects.
January 19 Sell 3,600 units on account for $576,000. The cost of the units sold is determined using a FIFO perpetual inventory system.
January 22 Receive $529,000 from customers on accounts receivable.
January 24 Pay $359,000 to inventory suppliers on accounts payable.
January 27 Write off accounts receivable as uncollectible, $2,100.
January 31 Pay cash for salaries during January, $110,000.
The following information is available on January 31, 2018.
a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each.
b. At the end of January, $5,200 of accounts receivable are past due, and the company estimates that 30% of these accounts will not be collected.
c. Of the remaining accounts receivable, the company estimates that 5% will not be collected.
d. Accrued interest expense on notes payable for January.
1. Record adjusting entries on January 31 for the above transactions.
2. Interest is expected to be paid each December 31. Accrued income taxes at the end of January are $13,500.
3. Prepare an adjusted trial balance as of January 31, 2021.
4. Prepare a multiple-step income statement for the period ended January 31, 2021.
5. Prepare a classified balance sheet as of January 31, 2021.
6. Record closing entries.

Answers

Answer:

journal entries

January 3 Purchase 1,050 units for $115,500 on account ($110 each).

Dr Inventory 115,500

    Cr Accounts payable 115,500

January 8 Purchase 1,150 units for $132,250 on account ($115 each).

Dr Inventory 132,250

    Cr Accounts payable 132,250

January 12 Purchase 1,250 units for $150,000 on account ($120 each).  *110

Dr Inventory 150,000

    Cr Accounts payable 150,000

January 15 Return 160 of the units purchased on January 12 because of defects.

Dr Accounts payable 19,200

    Cr Inventory 19,200

January 19 Sell 3,600 units on account for $576,000. The cost of the units sold is determined using a FIFO perpetual inventory system.

Dr Accounts receivable 576,000

    Cr Sales revenue 576,000

Dr Cost of goods sold 407,350

    Cr Inventory 407,350

January 22 Receive $529,000 from customers on accounts receivable.

Dr Cash 529,000

    Cr Accounts receivable 529,000

January 24 Pay $359,000 to inventory suppliers on accounts payable.

Dr Accounts payable 359,000

    Cr Cash 359,000

January 27 Write off accounts receivable as uncollectible, $2,100.

Dr Bad debt expense 2,100

    Cr Allowance for uncollectible accounts 2,100

January 31 Pay cash for salaries during January, $110,000.

Dr Wages expense 110,000

    Cr Cash 110,000

adjusting entries

a. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each.

Dr Cost of goods sold [110 units x ($120 - $100)] 2,200

    Cr Inventory 2,200

b. At the end of January, $5,200 of accounts receivable are past due, and the company estimates that 30% of these accounts will not be collected.

Dr Bad debt expense 1,560

    Cr Allowance for uncollectible accounts 1,560

c. Of the remaining accounts receivable, the company estimates that 5% will not be collected.

Dr Bad debt expense 3,975

    Cr Allowance for uncollectible accounts 3,975

d. Accrued interest expense on notes payable for January.

Dr Interest expense 280

    Cr interest payable 280

Accrued income taxes at the end of January are $13,500.

Dr Income taxes expense 13,500

    Cr Income taxes payable 13,500

adjusted trial balance

                                                                  debit            credit

Cash                                                     $84,300

Accounts Receivable                          $89,500

Inventory                                              $11,000

Land                                                     $79,600

Allowance for Uncollectible Acc.                               $10,335

Accounts Payable                                                       $48,750

Interest payable                                                             $280

Income taxes payable                                                $13,500

Notes Payable                                                            $42,000

Common Stock                                                           $68,000

Retained Earnings                                                      $46,500

Sales revenue                                                          $576,000

Cost of goods sold                             $409,550

Wages expense                                   $110,000

Bad debt expense                                  $7,635

Interest expense                                       $280

Income taxes expense                         $13,500                            

Totals                                                  $805,365        $805,365

income statement

Sales revenue                                    $576,000

COGS                                                ($409,550)

Gross profit                                         $166,450

Operating expenses:

Wages expense $110,000Bad debt expense $7,635       ($117,635)

Operating profit (EBIT)                        $48,815

Interest expense                                    ($280)

Income taxes expense                     ($13,500)

Net income                                         $35,035

closing entries

Dr Sales revenue 576,000

    Cr Income summary 576,000

Dr Income summary 540,965

    Cr Cost of goods sold 409,550

    Cr Wages expense 110,000

    Cr Bad debt expense 7,635

    Cr Interest expense 280

    Cr Income taxes expense 13,500  

Dr Income summary 35,035

    Cr Retained earnings 35,035

balance sheet

Assets:

Current assets

Cash                                          $84,300

Accounts Receivable, net         $79,165

Inventory                                    $11,000

Total current assets                                    $174,465

Property, plant and equip.

Land                                         $79,600

Total P, P & E                                               $79,600

Total assets                                                                      $254,065

Liabilities:

Current liabilities

Accounts Payable                    $48,750

Interest payable                            $280

Income taxes payable              $13,500

Total current liabilities                                 $62,530

Long term liabilities:

Notes Payable                         $42,000

Total long term liabilities                            $42,000

Stockholders' equity:

Common Stock                       $68,000

Retained Earnings                    $81,535

Total stockholder's equity                         $149,535

Total liabilities + stockholders' equity                           $254,065

is the present value of these cash flows? (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Present value Investment X $ Investment Y $ (b) Which of these cash flow streams has the higher present value at 5 percent? (Click to select) Requirement 2: (a) If the discount rate is 23 percent, what is the present value of these cash flows? (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Present value Investment X $ Investment Y $ (b) Which of these cash flow streams has the higher present value at 23 percent?

Answers

Answer and Explanation:

1A. For investment X, given 6% discount rate, 6700 PMT, N= 9 years

Present value of investment X= 6700* PVIF using 6%, 9 years

= $45751.34

For investment Y, given 6% discount rate, 9200 PMT, N= 5 years

Present value of investment Y =9200*PVIF using 6%, 9 years

=$38753.75

1B. Investment X from the above has higher present value

2A. For investment X, given 22% discount rate, 6700 PMT, N = 9 years

Present value of investment X

=6700*PVIF using 22% ,9 years

= $25368.11

For investment Y, given 22% discount rate, 9200 PMT, N = 5 years

Present value of investment X

=9200*PVIF using 22% ,N = 5 years

= $26345.49

2B. Investment Y from the above has higher present value.

We sell to a customer paying with Visa and the fee is 2%. Part of the transaction would include a debit to:

Answers

Answer:

there are no available options, but the complete journal entry to record a credit card sale is:

Dr Cash account 98% of sale

Dr Credit card fees 2% of sale

    Cr Sales revenue 100% of sale

Explanation:

Since VISA payments are automatic, you can debit cash directly. There is no need to debit accounts receivable and then once the payment is confirmed, debit cash. Some credit cards do not pay automatically, and in those cases you should debit accounts receivable.

Instead of credit card fees, some people use credit card discount, or credit card expense, but all these accounts are basically the same. They are all expense accounts.

Midtown Holdings Inc. contracts to sell a commercial parking garage to Nuevo Property LLC. The contract provides that if Midtown does not close the deal by a certain date, it must pay the buyer one-half of the value of the property. This provision is not enforceable if it is

Answers

Answer:

A penalty clause.

Explanation:

As the word penalty implies, it's said to come back as a sort of punishment towards who faults during a breach towards a contract, it can come as a punishment or forfeiture of a said paper, property or something tangible. it's sometimes seen to heavily levy it defaulters in an exceedingly monetary aspect during a lot of cases. An example will be seen when parties to a construction contract may agree that, if one party fails to deliver materials on time specified the project is delayed, it'll pay a hard and fast sum of cash per day, until delivery is created. It will be beneficial to use liquidated damages clauses, for various reasons.

Como podemos definir la Maquila.

Frente a la competencia en el mercado, cuales son los objetivos que persiguen las empresas multinacionales con la creación del sistema de maquilas en la producción de bienes?

Por qué la maquila se convierte en un factor que favorece la capacidad de competencia de las empresas multinacionales en el mercado.

Qué ventajas brinda el fenómeno maquilador a los consumidores finales de los bienes.

Cuales empresas salen perjudicadas en el mercado municipal, por la competencia de la maquila controlada por las multinacionales y las familias ricas de la economía nacional y Por Qué. ​

Answers

Answer:

Como podemos definir la Maquila.

Una maquila es una empresa manufacturera que importa materia prima sin aranceles de un país determinado, la transforma en producto terminado, y luego vende ese producto terminado en el país de donde importó la materia prima en primer lugar.

Frente a la competencia en el mercado, cuales son los objetivos que persiguen las empresas multinacionales con la creación del sistema de maquilas en la producción de bienes?

Las multinacionales persiguen abaratar costos con las maquilas. En un entorno competitivo, tener unos costos de producción más bajos es una de las mejores estrategias corporativas ya que esto genera precios más bajos.

Por qué la maquila se convierte en un factor que favorece la capacidad de competencia de las empresas multinacionales en el mercado.

Porque les permite producir bienes a precios más bajos.

Qué ventajas brinda el fenómeno maquilador a los consumidores finales de los bienes.

Los consumidores se benefician de poder comprar productos más baratos, lo que significa que su ingreso rinde más.

Cuales empresas salen perjudicadas en el mercado municipal, por la competencia de la maquila controlada por las multinacionales y las familias ricas de la economía nacional y Por Qué. ​

Las empresas que salen perjudicadas son aquellas que no pueden competir con los bajos costos y las economías de escala de las compañías multinacionales que tienen maquilas, y que por ésta razón, terminan ofreciendo productos más costosos, lo que repercute de forma negativa en su nivel de ventas.

Which kind of monetary policy would you expect in response to high inflation:

a. Expansionary
b. Contractionary

Answers

Answer:

B. Contractionary Monetary Policy

Explanation:

According to Investopedia, inflation is a quantitative measure of the rate at which average price level of selected goods and services in an economy increases over a period of time which causes the purchasing power of the currency to fall.

One popular method of controlling high inflation is the Contractionary Monetary Policy. The aim of the contractionary monetary policy is to cut the supply of money within an economy by decreasing bond prices and increasing interest rates through the central bank.

When the Central Bank increases their interests rates, banks become forced to increase their rates as well which discourages consumers from borrowing and makes saving more attractive.

These help to cut down spending, causes prices of goods and services to drop and consequently causes inflation to slow down.

What benefits do customers receive in return for the sacrifice they make when buying a membership at Planet Fitness?

Answers

Answer:

Customers receive the following benefits in return for the price they pay when they buy membership at Planet Fitness:

a) Fitness training

b) Physical exercise

c) Relaxation and comfort

d) Clean and safe environment and conducive atmosphere

e) the friendly and courteous staff is a bonus

Explanation:

Planet Fitness operates fitness centers and clubs around the world under franchises.  Planet Fitness has adequate and clean cardio machines, free weights of up to 80 lbs., curl bars, and other strength training equipment and accessories.  The average gym user is offered abundant, 5-star, and world-class Cardio equipment and services.

If a firm averages $2,000 in daily credit sales and offers 60-day terms, the average accounts receivable balance will be $120,000.
a. True
b. False

Answers

Answer:

a. True

Explanation:

The computation of the average accounts receivable balance is shown below:

= Daily credit sales × day terms

= $2,000 × 60 days terms

= $120,000

We simply multiplied the average amount with the day term so that the average account receivable balance could come

Hence, the given statement is true

Therefore the correct option is a.

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