Answer:
$900
Explanation:
Given that
Total repair up to end of year = 12
Estimated need to be repaid = 8
Average cost = $45
The computation of warranty expense for the current year is shown below:-
For computing the warranty expense for the current year first we need to find out the total repaired cost which is here below
Total repaired cost = Total repair up to end of year + Estimated need to be repaid
= 12 + 8
= 20
Warranty expense for the current year = Average cost × Total
= $45 × 20
= $900
Therefore for computing the warranty expense for the current year we simply applied the above formula.
Timko served on the board of trustees of a school. He recommended that the school purchase a building for a substantial sum of money, and to induce the trustees to vote for the purchase, he promised to help with the purchase and to pay at the end of five years the purchase price less the down payment. At the end of four years, Timko died. The school sued his estate, which defended on the ground that there was no consideration for the promise. Assuming the estate is right on its theory of defending the claim against the school, is there any other theory or action the school could assert against Timko's estate to enforce the promise made by Timko?
Answer:
PROMISSORY ESTOPPEL.
Explanation:
This question is all about a case with no signed contract binding the promise so, the estate is very right or correct in trying to prevent them from being charged for repayment or returning or compensation. But, victory is not yet over for the estate because the school can make use of what is called the PROMISSORY ESTOPPEL.
The PROMISSORY ESTOPPEL is being used by by court if their is no signed contract between the parties involved in the deal. The estoppel will then be used in order for the plaintiff (school) to be compensated a little bit.
Assuming the estate's claim was right, the doctrine that can be asserted against Timko's estate to fulfill the promise made is: Promissory Estoppel.
What is Promissory Estoppel?Promissory Estoppel is a doctrine that necessitates a party who made a promise to another party not to go back on his word if such promise was made with the intent of acting on it, and it is reasonable, clear and unambiguous.Thus, in this case involving the school and Timko's estate, assuming the estate's claim was right, the doctrine that can be asserted against Timko's estate to fulfill the promise made is: Promissory Estoppel.
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Fast Delivery is the world’s largest express transportation company. In addition to the world’s largest fleet of all-cargo aircraft, the company has more than 654 aircraft and 52,000 vehicles and trailers that pick up and deliver packages. Assume that Fast Delivery sold a delivery truck that had been used in the business for three years. The records of the company reflected the following:
Delivery truck cost $ 42,000
Accumulated depreciation 26,800
Required:
1. Prepare the journal entry for the disposal of the truck, assuming that the truck sold for: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
a. $15,200 cash
b. $16,500 cash
c. $14,000 cash
Answer and Explanation:
The journal entries are shown below:
a. Cash $15,200
Accumulate depreciation $26,800
To Delivery truck $42,000
(Being the disposal of the truck is recorded)
b. Cash $16,500
Accumulate depreciation $26,800
To Delivery truck $42,000
To Gain on sale $1,300
(Being the disposal of the truck is recorded)
c. Cash $14,000
Accumulate depreciation $26,800
loss on sale $1,200
To Delivery truck 42,000
(Being the disposal of the truck is recorded)
To record the disposal of a delivery truck, a journal entry is required. The journal entry includes debiting accumulated depreciation and cash, and crediting the truck's cost. Based on the given sales price, different journal entries can be prepared for disposal.
Explanation:When disposing of an asset, such as a delivery truck, a journal entry is needed to record the transaction. The journal entry includes debiting the accumulated depreciation account and the cash account for the amount received from the sale. The credit is made to the truck's cost account, which is reduced by the accumulated depreciation.
For a cash sale of $15,200, the journal entry would be:
Debit Accumulated Depreciation: 26,800Debit Cash: 15,200Credit Delivery Truck (Cost): 42,000For a cash sale of $16,500, the journal entry would be:
Debit Accumulated Depreciation: 26,800Debit Cash: 16,500Credit Delivery Truck (Cost): 42,000For a cash sale of $14,000, the journal entry would be:
Debit Accumulated Depreciation: 26,800Debit Cash: 14,000Credit Delivery Truck (Cost): 42,000Learn more about Disposal of Assets here:https://brainly.com/question/14542603
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As of December 31, 2021, Bennacer Corporation reported the following: Cash dividends payable $ 35,000 Treasury stock 750,000 Paid-in capital—share repurchase 35,000 Common stock and other paid-in capital accounts 5,500,000 Retained earnings 4,500,000 During 2022, half of the treasury stock was resold for $270,000; net income was $750,000; cash dividends declared were $1,650,000; and stock dividends declared were $650,000. The 2022 sale of half of the treasury stock would:
Answer:
The correct option in the attached full question is that the sale of half of treasury stock would reduce retained earnings by $70,000
Explanation:
The sale of half of treasury for $270,000 meant that the stock were sold for less than their worth of $375,000($750,000*1/2).
In order to recognize the loss of $105,000 on the sale ($375,000-$270,000) in the books of account,we first we need to reverse the excess amount posted to paid in capital-share repurchase account of $35,000 while the balance of the loss is debited to retained earnings.
The necessary entries are:
Dr Cash $270,000
Dr paid-in capital-share repurchase $35,000
Dr retained earnings($375,000-$270,000-$35,000) $70,000
Cr treasury stock $375,000
The total rate of return on an investment over a given period of time is calculated by ________. A. dividing the asset's cash distributions during the period, plus change in value, by its ending-of period investment value B. dividing the asset's cash distributions during the period, minus change in value, by its ending-of period investment value C. dividing the asset's cash distributions during the period, minus change in value, by its beginning-of period investment value D. dividing the asset's cash distributions during the period, plus change in value, by its beginning-of period investment value
Answer:
dividing the asset's cash distributions during the period, plus change in value, by its beginning-of period investment value
Explanation:
Rate of return of an investment is defined as the ratio of change of value or/and cash flows from an asset and it's initial cost of investment.
It measures the profit that a business owner gets from an asset in a given period of time.
Cash flows includes interest payments and dividends.
When rate of return is positive it results in profit but when it is negative the business is incurring a loss.
Usually rate of return is calculated within the period of one year, and is referred to as annual rate of return.
Megan Company uses job-order costing. At the end of the month, the following data was gathered: Job # Total Cost Complete? Sold? 803 $500 yes yes 804 200 yes no 805 900 no no 806 600 yes yes 807 400 no no 808 380 no no 809 600 yes no 810 680 yes yes 811 225 no no 812 390 no no Megan’s selling price is cost plus 40% for each of its products. What is the total in the work-in-process (WIP) account? Group of answer choices $1,700 $2,295 $1,895 $1,845 $1,170
Final answer:
The total work-in-process (WIP) account value is found by adding the costs of all the incomplete jobs. For Megan Company, the jobs that are incomplete add up to a WIP total of $2,295.
Explanation:
The total work-in-process (WIP) account value for Megan Company can be calculated by adding up the total costs of all the jobs that are incomplete. Looking at the data provided:
Job 805: $900 (not yet complete)Job 807: $400 (not yet complete)Job 808: $380 (not yet complete)Job 811: $225 (not yet complete)Job 812: $390 (not yet complete)Adding these costs gives us the total WIP value:
$900 + $400 + $380 + $225 + $390 = $2,295.
Therefore, the total in the work-in-process account for Megan Company is $2,295.
During 2017, Ziplock Manufacturing expected Job No. 89 to cost $700,000 in overhead, $1,000,000 in direct materials, and $500,000 in direct labor. Ziplock used direct materials cost as the activity base. Actual production required $1,200,000 in direct materials, $420,000 in direct labor, and the job was completed in 2017. The amount of over- or under-applied overhead relative to this job is Select one: a. not able to be determined from the provided information. b. $260,000 over-applied. c. $140,000 over-applied. d. $140,000 under-applied. e. $260,000 under-applied.
Answer:
a. not able to be determined from the provided information.
Explanation:
For determining the over applied or under applied, first, we have to compute the predetermined rate based on the direct material cost which is
= $700,000 ÷ $1,000,000
= $0.70
Now the applied overhead is
= $0.70 × $1,200,000
= $840,000
And, the actual overhead amount is not given by which we can find out the underapplied or overapplied overhead amount
So, in this case, the correct option is a.
Lasseter Corporation has provided its contribution format income statement for August. The company produces and sells a single product. Sales (4,700 units) $ 206,800 Variable expenses 94,000 Contribution margin 112,800 Fixed expenses 45,400 Net operating income $ 67,400 If the company sells 4,800 units, its total contribution margin should be closest to:
Answer:
Total contribution margin= 115,200
Explanation:
Giving the following information:
Sales (4,700 units) $206,800
Variable expenses 94,000
First, we need to calculate the selling price and the unitary variable cost:
Selling price= 206,800/4,700= $44
Unitary varaible cost= 94,000/4,700= $20
Now, for 4,800 units:
Sales= (4,800*44)= 211,200
Total variable cost= (4,800*20)= (96,000)
Total contribution margin= 115,200
The Cowboy Saddle Company manufactures plastic saddles that are used in the assembly process of their Mr. Ed doll. The firm desires to control inventory levels so as to minimize the sum of holding and order costs. Annual demand is 4000 units, and the item costs $25 per unit. It costs the firm $15 to place an order. The firm estimates its yearly inventory carrying costs at 10%. The lead-time for the product is 5 working weeks. Assume that there are 50 weeks in the work year and 5 working days per week.
i) Using the data above, What will be the time between orders (in working days) if the Cowboy Saddle Company ordered 400 units each time?
ii) What will be the total annual order cost if the Cowboy Saddle Company ordered 400 units each time. Use the data above?
Answer:
time between orders 25 working days
yearly ordering cost: $150
Explanation:
The annual demand is 4,000 units if order size is 400 units there will be 10 orders per year
Given a year of 50 weeks: every 5 weeks an order will be placed.
As each week has 5 working days that would mean every 25 working days
Then, total order cost:
each order cost $15 to place as there are 10 order per year it will be $150 ordering cost.
Novak Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2021 at a cost of $911,500. At December 31, 2021, the raw materials to be purchased have a market value of $863,400. Prepare any necessary December 31, 2021 entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Answer:
Dr Unrealized Holding Loss—Income (Purchase Commitments)$48,100
Cr Estimated Liability on Purchase Commitments $48,100
Explanation:
Novak Company Journal entries
Dr Unrealized Holding Loss—Income (Purchase Commitments)$48,100
Cr Estimated Liability on Purchase Commitments $48,100
($911,500 – $863,400)
Assume that tomatoes are currently imported from abroad at a market price of $ .50 per tomato. Assume that a tariff of $ .25 is placed on imported tomatoes. Also assume that the supply and demand for tomatoes are normal supply and demand relationships. What will be the effect of the tariff on the price of tomatoes in the U.S. and to the price received by foreign exporters of tomatoes?
Answer:
Increases the price of tomatoes in the U.S.
Decrease the price received by foreign exporters of tomatoes.
Explanation:
Tariff refers to a tax or duty is charged on some imported goods. It is usually used to discourage the importation of the goods.
The effect of the tariff $0.25 will be an increase in the price of tomatoes in the U.S. However, it will lead to a decrease in the price received by foreign exporters of tomatoes.
The reason is that the supply and demand for tomatoes are normal supply and demand relationships which will make the foreign exporter to bear the higher burden of the tariff.
Central Perk orders their organic coffee filters from a South American supplier that mails them as inexpensively (hence, as slowly) as possible. Central Perk uses 80 filters a day with a standard deviation of 5 days. It would be disastrous if they ran out of these filters, years ago customers caught them using paper towels from the men's room and business suffered. They have set their service level at 99% in hopes of avoiding a similar situation. It takes a fortnight (14 days) to receive a shipment and the standard deviation of the shipping time is two days. What is their reorder point?
A.1,490 filters
B.1,120 filters
C.1,515 filters
D.1,450 filters
Final answer:
The reorder point for Central Perk's organic coffee filters is 1,515 filters, which takes into account the lead time demand, desired service level, and safety stock.
Explanation:
To determine the reorder point, we need to consider the lead time demand and the desired service level. The lead time demand is the average number of filters used during the lead time (14 days), which is calculated by multiplying the average daily usage (80 filters) by the lead time (14 days). Therefore, the lead time demand is 80 filters/day * 14 days = 1120 filters.
Next, we need to account for the desired service level of 99%. This is done by considering the z-score associated with a 99% service level, which can be found using a standard normal distribution table or calculator. For a 99% service level, the z-score is approximately 2.33.
Finally, we calculate the reorder point by multiplying the lead time demand by the z-score and adding the safety stock. The safety stock is calculated by multiplying the standard deviation of the daily usage (5 days) by the z-score. Therefore, the reorder point is 1120 filters + (2.33 * 5 filters) = 1514.65, which rounds up to 1515 filters. So, the correct answer is option C: 1,515 filters.
The correct option is A. The reorder point for Central Perk is approximately 1,495.
To determine the reorder point for Central Perk's organic coffee filters, we need to calculate the lead time demand and include a safety stock based on the desired service level. Here's the step-by-step process to find the reorder point:
1. Calculate the average demand during the lead time:
- Daily demand ( D ): 80 filters
- Lead time ( L ): 14 days
[tex]\text{Average demand during lead time} = D \times L = 80 \times 14 = 1120 \text{ filters}[/tex]
2. Determine the standard deviation of demand during the lead time:
- Standard deviation of daily demand ( [tex]\sigma_D[/tex] ): 5 filters
- Standard deviation of lead time ( [tex]\sigma_L[/tex] ): 2 days
The standard deviation of demand during the lead time ( [tex]\sigma_{DL}[/tex] ) can be calculated using the formula:
[tex]\sigma_{DL} = \sqrt{L \cdot (\sigma_D^2) + (D^2 \cdot \sigma_L^2)}[/tex]
Substituting the values:
[tex]\sigma_{DL} = \sqrt{14 \cdot (5^2) + (80^2 \cdot 2^2)} \\\\\sigma_{DL} = \sqrt{14 \cdot 25 + 6400 \cdot 4} \\\\\sigma_{DL} = \sqrt{350 + 25600} \\\\\sigma_{DL} = \sqrt{25950} \\\\\sigma_{DL} \approx 161 \text{ filters}[/tex]
3. Calculate the safety stock:
- Desired service level: 99%
- Z-score corresponding to 99% service level (from the standard normal distribution): 2.33
[tex]\text{Safety stock} = Z \times \sigma_{DL} = 2.33 \times 161 \approx 375[/tex]
4. Calculate the reorder point:
[tex]\text{Reorder point} = \text{Average demand during lead time} + \text{Safety stock} \\\\ \text{Reorder point} = 1120 + 375 = 1495 \text{ filters}[/tex]
Since 1495 filters is not an exact match to the provided options, it is closest to:
A. 1,490 filters
Thus, the reorder point for Central Perk is approximately 1,495 filters, making option A the best choice.
Your client has $ 99 comma 000 invested in stock A. She would like to build a two-stock portfolio by investing another $ 99 comma 000 in either stock B or C. She wants a portfolio with an expected return of at least 14.5 % and as low a risk as possible, but the standard deviation must be no more than 40%. What do you advise her to do, and what will be the portfolio expected return and standard deviation?
Answer:
Portfolio Returns = 14% for Stock B
Portfolio Returns = 14% for Stock C
Portfolio Standard Deviation for Stock C = 34.9%
Portfolio Standard Deviation for Stock B = 32.8%
Here, we can see that, in both stocks expected return rate is same but the portfolio standard deviation for Stock B is lesser than Stock C. So, I advise her to invest in Stock B.
Explanation:
First of all, let be clear to you that, this question is incomplete and lacks data essential data. I have found similar question on the internet and I am going to share that data with you. Hope, the purpose of solving this question will be fulfilled.
Expected Return . Standard Deviation . Correlation with Stock A
Stock A = 15% 49% 1.00
Stock B = 13% 38% 0.12
Stock C = 13% 38% 0.28
Now, we have complete data. Let's solve this problem.
Condition: If my client invest in Stock B
then,
Expected Returns of stocks A & B will be as follows:
Expected Return of Stock A (R1) = 15%
Expected return of Stock B (R2) = 13%
and Standard Deviation of Stocks A & B will be as follows:
SD of Stock A (SD1) = 49%
SD of Stock B (SD2) = 38%
and weights depending on the amount of money invested on stocks A & B will be as follows:
Weight of Stock A (W1) = 50%
Weight of Stock B (W2) = 50%
Note: Weights are 50% each because, same amount of money is invested in two stocks i.e 99000 USD in Stock A and 99000 USD in Stock B.
So, for all of these data, our correlation with Stock A will be as follows:
Correlation of Stock B with Stock A = 0.12
Now, as we have all the data ready to be plugged into the formula. Let's write down the formula for portfolio return:
Portfolio Returns = W1xR1 + W2xR2 = (0.15x0.50) + (0.13x0.50) = 0.14 x 100 = 14%
Portfolio Returns = 14%
Now, it's time to calculate the Portfolio Standard Deviation:
Portfolio Standard Deviation = (W1² * SD1² + W2² * SD2² + 2*(W1)*(W2)*Correlation* SD1* SD2)^(1/2)
Portfolio Standard Deviation = [(50%² X 49%²) + (50%² X 38%²) + (2 X 50% X 50% X 0.12 X 49% X 38%)]^(1/2)
Portfolio Standard Deviation = 32.8%
Condition: If my client invest in Stock C
then,
Expected Returns of stocks A & C will be as follows:
Expected Return of Stock A (R1) = 15%
Expected return of Stock C (R3) = 13%
and Standard Deviation of Stocks A & C will be as follows:
Standard Deviation of A (SD1) = 49%
Standard Deviation of C (SD3) = 38%
and weights depending on the amount of money invested on stocks A & C will be as follows:
Weight of A (W1) = 50%
Weight of C (W3) = 50%
So, for all of these data, our correlation with Stock A will be as follows:
Correlation of Stock C with Stock A = 0.28
Now, as we have all the data ready to be plugged into the formula. Let's write down the formula for portfolio return:
Portfolio Returns = W1R1 + W3R3 = (0.15*0.50%) + (0.13*0.50) = 0.14 X 100 = 14%
Now, it's time to calculate the Portfolio Standard Deviation:
Portfolio Standard Deviation = (W1² * SD1² + W3² * SD3² + 2*(W1)*(W2)*Correlation* SD1* SD3)^(1/2)
Portfolio Standard Deviation= [(50%² X 49%²) + (50%² X 38%²) + (2 X 50% X 50%X 0.28 X 49% X 38%)]^(1/2)
Portfolio Standard Deviation = 34.9%
Here, we can see that, in both stocks expected return rate is same but the portfolio standard deviation for Stock B is lesser than Stock C. So, I advise her to invest in Stock B.
Textbooks, transportation and room and board are all...
a. included in the price of attending a college or university.
b. additional costs for attending a college or university.
c. included in a school's tuition.
d. usually offered to students who stay on campus.
Answer:
b. additional costs for attending a college or university.
Explanation:
Textbooks, transportation and room and board are additional costs for attending a college or university.
They aren't included as part of tuition costs.
They are the real costs of attending college.
These costs needs to be considered when choosing a college.
I hope my answer helps you
Answer:
addition costs for attending a college or university
Explanation:
thanks me later
Swifty Corporation has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Swifty incurs $7192800 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. The weighted-average contribution margin ratio is
Answer:
37.00%
Explanation:
The computation of the weighted average contribution margin ratio is shown below:
Particulars Sporting Goods Sports Gear Total
Contribution Margin Ratio 30% 50%
Sales Mix - Weights 65% 35%
Weighted Contribution Margin 19.50% 17.50% 37.00%
We simply multiplied the contribution margin ratio with the sales mix weighted so that the weighted contribution margin ratio could come
Stuart Pointers Corporation expects to begin operations on January 1, year 1; it will operate as a specialty sales company that sells laser pointers over the Internet. Stuart expects sales in January year 1 to total $260,000 and to increase 20 percent per month in February and March. All sales are on account. Stuart expects to collect 70 percent of accounts receivable in the month of sale, 21 percent in the month following the sale, and 9 percent in the second month following the sale. Required Prepare a sales budget for the first quarter of year 1. Determine the amount of sales revenue Stuart will report on the year 1 first quarterly pro forma income statement. Prepare a cash receipts schedule for the first quarter of year 1. Determine the amount of accounts receivable as of March 31, year 1.
Answer:
Explanation:
The preparation of sales budget for the first quarter of year
Sales budget for the first quarter
Jan Feb March
Sales $260,000 $312,000 $374,400
Working Note
For Feb Sales = $260,000 × (100 + 20%)
= $260,000 × 120%
= $312,000
For March Sales = $312,000 × 120%
= $374,400
The amount of sales revenue Stuart will report on the year 1 first quarterly pro forma income statement is shown below:-
Jan Sales = $260,000
Feb Sales = $260,000 × (100 + 20%)
= $260,000 × 120%
= $312,000
March Sales = $312,000 × 120%
= $374,400
Total Sales = $260,000 + $312,000 + $374,400
= $946,400
The preparation of cash receipts schedule for the first quarter of year is shown below:-
Jan Feb March
Jan Sales collection $182,000 $54,600 $23,400
($260,000 × 70%) ($260,000 × 21%) ($260,000 × 9%)
Feb Sales collection $218,400 $65,520
($312,000 × 70%) ($312,000 × 21%)
March Sales collection $262,080
($374,400 × 70%)
Total cash collections $182,000 $273,000 $351,000
The amount of accounts receivable is given below:-
Receivables
Out of Feb Sales $28,080
($312,000 × 9%)
Out of March Sales $112,320
($374,400 × (21% + 9%))
Total receivables $140,400
When preparing the statement of cash flows using the indirect method, which statement is INCORRECT? A. Losses on the sale of longminusterm assets are subtracted from net income. B. Increases in current liabilities are added to net income. C. Depreciation expense is added to net income. D. Gains on the sale of longminusterm assets are subtracted from net income.
Answer:
The correct answer is Option A.
Explanation:
A. Losses on the sale of longminusterm assets are subtracted from net income - This is incorrect because on losses on sale of an asset are usually added to the net income to avoid double-counting of income. Under the investing section of the cash flows, the proceed received on disposal is recorded there as inflow, if the losses realized on the disposal are subtracted, there would be a double-counting because the losses had already reduced the net income before.
B. Increases in current liabilities are added to net income - This is an inflow of cash, so it is usually added back.
C. Depreciation expense is added to net income - The explanation under Option A above applies but only that depreciation is a non-cash item, which already reduced the net income and it has to be added back to reinstate the net income.
D. Gains on the sale of longminusterm assets are subtracted from net income - Explanation under Option A applies.
Calculate the opportunity cost of capital (WACC) for a firm with the following capital structure: 53% in debt, 15% in preferred stock, and the remaining fraction in equity.The firms has a cost of debt of 7.12%, a cost of preferred stock equal to 10.9% and a 13.87% cost of common stock. The firm has a 29% tax rate. You answer should be entered as a %, for example 15.48%
Answer:
The WACC is 8.75%
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure is made up of debt, preferred stock and common stock.
The formula for WACC is,
WACC = wD * rD * (1 - tax rate) + wP * rP + wE * rE
Where,
w represents the weight of each component in the capital structure or value of each component as a proportion of total assetsr represents the cost of each componentwe take after tax cost of debt. So we multiply cost of debt by (1 - tax rate)The weight of common equity = 1 - (0.53 + 0.15) = 0.32 or 32%
The WACC is:
WACC = 0.53 * 0.0712 * (1 - 0.29) + 0.15 * 0.109 + 0.32 * 0.1387
WACC = 0.0875 or 8.75%
A lawyer works for a firm that advises corporate firms planning to sue other corporations for antitrust damages. He finds that he can "beat the market" by short selling the stock of the firm that will be sued. This finding is in violation of the:
A. Semi-strong form market efficiency
B. The finding is not in violation of market efficiency at all
C. Weak and semi-strong form market efficiency
D. Strong form market efficiency
E. Weak form market efficiency
Answer: D. Strong form market efficiency
Explanation:
Strong form efficiency this is the most demanding version of the efficient market hypothesis (EMH) investment theory, Which states that for all information in a given market, whether it’s a public or private market, they are usually accounted for in a stock's price.
5. Common resources versus private goods Spring is here, and Ginny and her uncle would like to go fishing for the weekend in New Hampshire. Ginny could either go to the river in town where anyone can fish without a permit, or she could drive up to a stream located on her family's property in the countryside to fish. Assume that, no matter where people fish, all of the fish that are caught would be kept (that is, there is no "catch and release" policy). The fish in the river are considered and whereas the fish in the private stream are and . In other words, the fish in the river are an example of , and the fish in the private stream are an example of . Fishing in the river will likely lead to because of which of the following reasons? All fishermen will choose to fish in the river because of the limited access to the stream. Anyone can fish in the river, and one person's fishing activity decreases the ability of someone else to fish with success. Nobody will enjoy fishing because of the lack of private contributions to the maintenance of the river. All fishermen will choose to fish in the stream believing that there are more fish there. Grade It Now Save & Continue Continue without saving
Answer:
1. Fish in private stream (rival/Excludable). Fish in River (rival/non Excludable)
2. Fish in Private stream (private good). Fish in River (common resource)
3. Tragedy of commons
Explanation:
1. The fish in the private stream are Rival in consumption and Excludable while the fish in the river are Rival in consumption and Non- Excludable
2. The fish in the private stream is a private good, the fish in the river is a common resource.
A private good must be purchased to be consumed. Consumption by one person prevents another person from consuming it hence it is rival and Excludable. A common resource like the river benefits all individuals because it is not owned by any one individual. A common resource stands the risk of depletion and over consumption.
3. Fishing in the river will lead to tragedy of the commons because anyone can fish in the river, and one person's fishing activity decreases the ability of someone else to fish with success.
On July 1, 2018, Mason & Beech Services issued $ 44 comma 000 of 11% bonds that mature in five years. They were issued at par. The bonds pay semiannual interest payments on June 30 and December 31 of each year. On December 31, 2018, what is the total amount paid to bondholders?
Answer:
The total amount paid to bondholders is $2,420.
Explanation:
Bonds are long-term liability or debt, usually issued at face value, discount or premium.
The total amount paid to bondholders on December 31, 2018 will be the semiannual interest payments, calculated as follows: Face value of the bond x Period interest rate (semi-annual).
Total payment: $44,000 x 11% / 2 = $2,420
g Samco signed a 5-year note payable on January 1, 2018, of $ 475 comma 000. The note requires annual principal payments each December 31 of $ 95 comma 000 plus interest at 9%. The entry to record the annual payment on December 31, 2021, includes A. a debit to Interest Expense for $ 17 comma 100. B. a debit to Interest Expense for $ 42 comma 750. C. a credit to Cash of $ 137 comma 750. D. a credit to Notes Payable for $ 95 comma 000.
Answer:
B. a debit to Interest Expense for $ 42 comma 750.
C. a credit to Cash of $ 137 comma 750.
Explanation:
Payment of Note Payable includes the payment of interest on the outstanding balance and principal amount of the note. In this question it is the first payment of the note payable, so the outstanding balance is the face value of the note, Interest is calculated using this value, A fix payment of $95,000 is also made.
As per given data
Principal Payment = $95,000
First Interest payment = $475,000 x 9% = $42,750
Total Payment = $95,000 + $42,750 = $137,750
Journal Entry for first payment
Dr. Interest Expense $42,750
Dr. Not Payable $95,000
Cr. Cash $137,750
You purchased 1,350 shares of Barrett Golf Corp. stock at a price of $36.23 per share. While you owned the stock, you received dividends totaling $.65 per share. Today, you sold your stock at a price of $40.18 per share. What was your total dollar return on the investment?
Answer:
$6210.00
Explanation:
The computation of total dollar return on the investment is shown below:-
Total Return on Shares = (Dividend + (Sale price - Purchase price)) × Number of Shares
= ($0.65 + $40.18 - $36.23) × 1,350
= $4.6 × 1,350
= $6210.00
Therefore for computing the total return on shares we simply applied the above formula.
A comparative balance sheet and income statement is shown for Cruz, Inc. CRUZ, INC. Comparative Balance Sheets December 31, 2017 2017 2016 Assets Cash $ 64,400 $ 16,200 Accounts receivable, net 27,800 34,400 Inventory 58,200 64,600 Prepaid expenses 3,600 2,900 Total current assets 154,000 118,100 Furniture 72,600 82,200 Accum. depreciation—Furniture (11,300 ) (6,200 ) Total assets $ 215,300 $ 194,100 Liabilities and Equity Accounts payable $ 10,100 $ 14,300 Wages payable 6,100 3,400 Income taxes payable 1,000 1,800 Total current liabilities 17,200 19,500 Notes payable (long-term) 20,700 47,800 Total liabilities 37,900 67,300 Equity Common stock, $5 par value 154,500 124,000 Retained earnings 22,900 2,800 Total liabilities and equity $ 215,300 $ 194,100 CRUZ, INC. Income Statement For Year Ended December 31, 2017 Sales $ 332,400 Cost of goods sold 213,900 Gross profit 118,500 Operating expenses Depreciation expense $ 25,600 Other expenses 60,700 86,300 Income before taxes 32,200 Income taxes expense 11,800 Net income $ 20,400 Furniture costing $56,600 is sold at its book value in 2017. Acquisitions of furniture total $47,000 cash, on which no depreciation is necessary because it is acquired at year-end. What is the cash inflow related to the sale of furniture? rev: 02_19_2019_QC_CS-159605
Answer:
Cruz Inc.
Cash inflow from the sale of Furniture:
Difference in the accumulated depreciation account is transferred to Sale of Furniture:
Accumulated Depreciation- Furniture
Opening Balance - $6,200
Plus Depreciation Expense - $25,600
Less Credit Balance - $11,300
Balance transferred to sale of furniture = $20,500
Sales of Furniture Account
Debit: Furniture Account (book value) = $56,600
Credit: Accumulated Depreciation = $20,500
Credit: Cash inflow = $36,100
Explanation:
The cash inflow is the difference between the book value of the furniture sold and its attributable accumulated depreciation.
The attributable accumulated depreciation is the difference between opening accumulated depreciation and depreciation expenses less closing accumulated depreciation. This difference represents the amount of accumulated depreciation transferred out, as a result of the sale.
Final answer:
The cash inflow related to the sale of furniture by Cruz, Inc. is $56,600, which is the book value of the furniture that was sold in 2017. This is calculated using the historical cost and accumulated depreciation provided, considering that the sold furniture did not contribute to any gain or loss in the sale.
Explanation:
The question you asked pertains to the cash inflow from the sale of furniture as reported in the financial statements of Cruz, Inc. To calculate this cash inflow, we need to examine the details provided in the comparative balance sheet and the income statement, as well as the additional information given.
In the balance sheet, the accumulated depreciation on furniture increased by $5,100 from 2016 to 2017 ($11,300 - $6,200). This increase in accumulated depreciation suggests that some furniture was sold, as there is no depreciation expense necessary for new acquisitions in the current year, based on the information provided.
The income statement shows a depreciation expense of $25,600 for the year. Since we've been told that furniture with a historical cost of $56,600 was sold at its book value, we need to figure out this book value. The historical cost of the furniture is subtracted by the accumulated depreciation related to the furniture that was sold, which must be part of this year's depreciation expense, to find the book value.
The book value of the sold furniture could be calculated as follows: $56,600 (historical cost) - (total depreciation expense $25,600 - depreciation for new acquisitions $0) = $56,600 (since there is no additional depreciation for new acquisitions in this year, all depreciation expense is related to old furniture).
Since the furniture was sold at its book value and there was no loss or gain reported, it implies the cash inflow is equal to the book value of the furniture that was sold. Therefore, the cash inflow related to the sale of furniture is $56,600.
You have taken a short position in a futures contract on corn at $3.74 per bushel. Over the next 5 days (Day 1 to Day 5) the contract settled at 3.68, 3.71, 3.67, 3.64, and 3.61. Before you can reverse your position in the futures market you are notified on Day 5 to complete delivery. What will you receive on delivery per bushel and what is the net amount per bushel you receive in total
Answer:
Explanation:
In finance, short selling (also known as shorting or going short) is the practice of selling assets, that have been borrowed from a third party with the intention of buying identical assets back at a later date to return to the lender.
So in the given scenario the investor would be at lose of
Selling price = 3.74 per bushel
Purchase price = 3.61 per bushel
therefore lose of $ 0.13 per bushel you need to pay off.
An analysis of the machinery accounts of Noller Company for 2015 is
as follows: Machinery, Net of Accumulatfd Machinery Depreciation
Balance at January 1, 2015 $500,000 $125,000 $375,000 Purchases
of new machinery in 2015 for cash 200,000 — 200,000 Depreciation in
2015 — 100,000 (100,000) Balance at Dec. 31, 2015 $700,000
$225,000 $475,000. The information concerning Noller's machinery
accounts should be shown in Noller's statement of cash flows
(indirect method) for the year ended December 31, 2015, as a(n):______.
A. $100,000 increase in cash flows from financing activities.
B. subtraction from net income of $100,000 and a $200,000 decrease
in cash flows from financing activities.
C. addition to net income of $100,000 and a $200,000 decrease in cash
flows from investing activities.
D. $200,000 decrease in cash flows from investing activities.
Answer:
C. addition to net income of $100,000 and a $200,000 decrease in cash
flows from investing activities.
Explanation:
Since there is a depreciation expense of $100,000 the same is added back to the net income under the operating activities section of the balance sheet
While the investing activities refer to the purchase and sale of long term assets where purchase shows the outflow of cash and the sale refer to the inflow of cash
So the $200,000 reflects the purchase of machinery and the same is recorded in the investing activities as a negative sign
You are evaluating the following two investment opportunities: Project A: This project requires $2,000 upfront, and pays you $500 at the end of each of the first 2 years, and an additional lump-sum of $1200 at the end of year 3. Project B: This project requires $2,000 upfront, and pays you $600 at the end of each of the first 2 years, and an additional lump-sum of $1000 at the end of year 3. Which project has a smaller IRR, and which project is more attractive?
Answer:
The project A has a smaller IRR, and the project B is more attractive
Explanation:
Solution
Solve for Project A:
Now,
Let assume that the IRR be x
Hence,
The Present Value of Outflows of Cash Outflows= The Present Value of Inflows of Cash
Thus,
2000 =500/(1.0x) +500/ (1.0x)^2 +1200/(1.0x)^3
Or we say x= 4.223%
Therefore the IRR is 4.223%
For project B:
Let assume that the IRR be y.
Thus,
The Present Value of Outflow of Cash = The Present Value of Inflow of Cash
so,
2000 =600/(1.0y) + 600/ (1.0y)^2 + 1000/(1.0y)^3
Or we say, y= 4.498%
Therefore the IRR is 4.498%
b) IKEA is also very "IKEA-centric." For example, the IKEA store itself will be laid out as a maze that requires customers to walk through every department before they reach the checkout stations. This forced path can seem constraining to their customers who naturally are more free spirited than the IKEA management model. Can this spell trouble in the near future, or is the IKEA way a sustainable business model? Why?
Answer:
Explanation:
As long as IKEA is able to deliver value and differentiation via quality, cost, and new designs, then the IKEA way of putting people through the different departments before making checkouts, will not spell trouble.
Furthermore, the movement of people through the different departments will give consumers, exposure to other new products available and it will make them aware of the quality present in other goods. As a result, the consumer and the company will benefit from increased sales.
Here, IKEA has to assure that quality is to be maintained and movement through the different departments should not be high traffic and it will be convenient for people to easily move through to remain interested in visiting the IKEA stores on a regular basis.
Thus, it will be the right step to build a sustainable business model by IKEA.
On November 1, 2021, Blossom Company purchased Splish, Inc., 10-year, 10%, bonds with a face value of $900000, for $820000. An additional $34000 was paid for the accrued interest. Interest is payable semiannually on January 1 and July 1. The bonds mature on July 1, 2028. Blossom uses the straight-line method of amortization. Ignoring income taxes, the amount reported in Blossom's 2021 income statement as a result of Blossom's available-for-sale investment in Splish was
A. $9850.
B. $12150.
C. $13000.
D. $11000.
Answer:
C. $13000
Explanation:
Face Value 900000
Interest Rate 10%
Half Yearly Interest Rate 5%
900000 × 5% = 45,000
Amortization = (900000 - 820000) * 2 months /80 months = 2,000
Accrued Interest = 34,000
Amount reported in Blossom 2021 Income Statement
= Total Interest + Amortization -Accrued Interest
45,000 + 2,000 - 34,000
= $13,000
Gehring Services is a company organized around a strong management which values experience, knowledge, and structure. The company has a detailed framework of rules, procedures, and guidelines in place to help employees respond to problems in an orderly manner. Mails, memos, and notifications are used to communicate between managers, employees, and the management. Despite such provisions to help in structuring and executing work, the company incurs losses for delays and quality issues. One of their key clients had asked for two similar projects to be delivered by the teams headed by Briony and Benedict. While Benedict's team completed the project successfully on time, Briony's team had to implement numerous last-minute changes to meet client specifications, and she ended up delivering the project over a week late. Which of the following, if true, would explain this delay in Briony's submission? Briony had a good track record with clients who trusted her to do a good job. Briony and Benedict had teams comprising equal members and were allocated company resources in equitable manner. Briony's team was comprised of members who generated a lot of positive synergy while working together. The company stipulated that all communication be in the upward or downward mode only to ensure clarity and control. The management allowed Briony's team an extension to complete the project.
Answer:
the company stipulated that all communication be in the upward or downward mode only to ensure clarity and control.
Explanation:
even though Briony's team consist of members who gives a lot of positive synergy while working together is not a concrete reason forthe delay in team's submission and also, even if Briony and Benedict had teams comprised of equal members and were allocated company resources in equitable manner is still not a reasonablle explantion for delay in Briony's project submission. even if the companylayed a ground rule that all communication be in the upward or downward mode is a reasonable fact or explaination to the delay in Briony's project submission due to the the fact that Gehring servichas a plicy of strict adherance to formal vertical structure for all communications, it has become inefficient. Lateral communication occurring with management's knowledge and support can be beneficial in such a situation. The reason that Briony had a good track record with clients who trusted her to do a good job is not a concrete or valid reason/explantion to the delay in her project submission. The reason the management permit Briony's team an extension to complete the project is a consequence of the delay.
On January 2, 2020, Concord Corporation began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2021. Expenditures for the construction were as follows: January 2, 2020 $ 607000 September 1, 2020 1803600 December 31, 2020 1803600 March 31, 2021 1803600 September 30, 2021 1213000 Concord Corporation borrowed $3320000 on a construction loan at 10% interest on January 2, 2020. This loan was outstanding during the construction period. The company also had $11520000 in 7% bonds outstanding in 2020 and 2021. The interest capitalized for 2020 was:
Answer:
$120,820
Explanation:
The calculation of interest capitalized for 2020 is shown below:-
Date Expenditure Weight Average
02-Jan-20 $607,000 12 ÷ 12 $607,000
01-Sep-20 $1,803,600 4 ÷ 12 $601,200
31-Dec-20 $1,803,600 0 ÷ 12 $-
Accumulated
Expenditures $4,214,200 $1,208,200
Interest Capitalized for 2020 = Total Average × Percentage of construction loan
= $1,208,200 × 10%
= $120,820
So, for computing the interest capitalized for 2020 we simply multiply the total average with percentage of construction loan.