Answer:
Budgeted selling and administrative expenses must be $190,000.
Explanation:
Budgeted selling and administrative expenses can be calculated as follows:
Budgeted gross margin = Budgeted sales * Percentage of budgeted sales that is budgeted gross margin = $1,150,000 * 30% = $345,000
Budgeted net income = Budgeted gross margin - Budgeted selling and administrative expenses …………. (1)
Substituting the relevant values into equation (1) and solve for budgeted selling and administrative expenses, we have:
$155,000 = $345,000 - Budgeted selling and administrative expenses
Budgeted selling and administrative expenses = $345,000 - $155,000 = $190,000
Therefore, budgeted selling and administrative expenses must be $190,000.
Bond Long will pay $1 in 20 years with a discount interest rate of 5% and Bond Short will pay $1 in 5 years with a discount interest rate of 10%. Which bond has the higher present value
Answer:
Bond short has higher present value.
Explanation:
Below is the calculation of present value:
Present value calculation of bond long.
Future value = $1
Time = 20 years
Present value = Future Value (P/F, n, r)
Present value = 1 (P/F, 20, 5%)
Present value = 1 x 0.376
Present value = 0.376
Present value calculation of bond short.
Future value = $1
Time = 5 years
Present value = Future Value (P/F, n, r)
Present value = 1 (P/F, 5, 10%)
Present value = 1 x 0.376
Present value = 0.6209
Bond short has higher present value.
Signature Appliance Group decided to remove the grill unit from the ovens it sells in South America after customers complained they preferred to grill outside and would never use this feature. Which environmental force caused the company to change its product
Answer:
Signature Appliance Group
The environmental force that caused the company to change its product features is:
the Social and Cultural Environment.
Explanation:
The Social and Cultural Environment refers to the changing needs of customers in South America as a result of the values, attitudes, and preferred styles of consumers. These are always in a state of flux every year. Since customers preferred to grill outside rather than inside their kitchens, adding the grill unit in the ovens that the company sells in South America will not enable customers to choose its ovens over competitors'. To respond to the stated needs of its customers, the grill must be removed, thereby reducing the cost of the ovens.
After getting her degree in Economics, Jeanine went to work for the Bureau of Labor Statistics. She compiles data on the unemployment rate, which serves as an economic indicator. What does this data help Jeanine to understand
Answer:
A. how the economy is doing at the macro level
Explanation:
Since in the given situation it is mentioned that jeanine wants to work so she combined the unemployment rate data that represent the economic indicator so here she need to understand that how the economy is working at the macro level as the unemployment represent the condition that should be made in the labor market and the macro would deals with the overall GDP also how the unemployment level, inflation level and the price level impact it
Therefore the first option is correct
Prepare journal entries to record each of the following four separate issuances of stock.
a. A corporation issued 3,000 shares of $10 par value common stock for $36,000 cash.
b. A corporation issued 1,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $23,000. The stock has a $2 per share stated value.
c. A corporation issued 1,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $23,000. The stock has no stated value.
d. A corporation issued 750 shares of $75 par value preferred stock for $79,250 cash.
Answer:
Transaction a
Debit : Cash $36,000
Credit : Common Stock (3,000 x $10) $30,000
Credit : Common Stock - Paid in excess of par $6,000
Transaction b
Debit : Cash $23,000
Credit : Common Stock $23,000
Transaction c
Debit : Cash $23,000
Credit : Common Stock $23,000
Transaction d
Debit : Cash $79,250
Credit : Preferred Stock (750 x $75) $56,250
Credit : Preferred Stock - Paid in excess of par $23,000
Explanation:
The journal entries to record each of the following four separate issuances of stock have been prepared above.
Step 1 : Distinguish if Stock has par value or not
For par value stock, any amount paid in excess of par value is places in a reserve - Paid in Excess of Par on issuance.
For non par value stocks, we value stocks at market price of item exchanged
Step 2 : Recording
On Issuance, Cash is increasing so we debit Cash Account. The Stock Account as well as the Reserve - Paid in Excess (if applicable) both increases on the credit side, so that will be a Credit entry
A small firm builds television antennas. The investment in plan and equipment is $200,000. The variable cost per television antenna is $500. The price of the television antenna is $1000. How many television antennas would be needed for the firm to break even
Answer:
Break-even quantity is 400 units.
Explanation:
Below is the calculation for the number of television antennas:
At break-even, the firm's total revenue is equal to the total cost.
Cost of investment (fixed cost) = $200000
Variable cost = $500
Pirce of television antenna = $1000
At break-even, TR = TC
(P x Q) = (TFC + TVC)
1000Q = 200000 + 500Q
10000Q-500Q = 200000
500Q = 200000
Q = 200000 / 500
Q = 400 units
Thus break-even quantity is 400 units.
mwakilembe Co.ltd is a micro business which buys and sell toys on 1 January 2020 the company predicted its annual sales to be 1000000 units. Each order would cost the company TZS 80 . The company pays TZS 160 per unit of a product. Estimated inventory carrying costs are 25 percent of inventory value. Establish the EOQ units.
Answer:
2000
Explanation:
Given:
Annual DEMAND, D = 1,000,000
Holding cost, H = (I * C)
Cost per order, S = 80
Unit cost, C = 160
Holding cost (%) = 25% = 0.25
The Economic order quantity :
EOQ = √[(2 * D * S) / (I * C)]
EOQ = √[(2 * 1000000 * 80) / (0.25 * 160)]
EOQ = √[(160000000) / 40]
EOQ = √4000000
EOQ = 2000
When it comes to Risk Mitigation, which risk counter measure involves not even taking the chance with the risk?
Answer:
The risk countermeasure that involves not even taking the chance with the risk is:
risk avoidance.
Explanation:
Risk avoidance is a risk mitigation strategy. To avoid risk, risk exposures and hazards are completely eliminated. This means that risk avoidance seeks to completely avoid compromising events while other risk mitigation or management efforts try to control the damages and financial consequences of threatening events.
how to develop a deaf social club?
In the simple Keynesian model, there are three simplifying assumptions. Among these assumptions is: __________
a. the price level is flexible no foreign sector
b. the price level is constant until
c. the economy reaches its full-employment level
d. the money supply always rises b and c
Answer: B and C
No foreign sector
The price level is constant until the economy reaches its full-employment level
Explanation:
Keynesian economics refers to the theory that relates to total spending in the economy and how it affects output, Inflation and employment in the economy.
Assumptions of the Keynesian Model include:
• No foreign sector as economy is closed.
• Demand creates its own supply.
• The aggregate price level is fixed. ...
• The price level is constant until the economy reaches its full-employment level
• No retained earnings etc.
In much of the country, homeowners choose to heat their houses with either natural gas or heating oil, both of which are normal goods. Which factor would cause an increase in the demand for natural gas
Group of answer choices.
a. an increase in consumer incomes
b. an increase in the price of natural gas
c. a decrease in the price of heating oil
d. a decrease in the price of natural gas
Answer:
a. an increase in consumer incomes
Explanation:
A market demand curve is used to graphically represent the quantity of goods demanded by all the buyers or consumers at different price points.
This ultimately implies that, a market demand curve can be determined by the horizontal summation of the various quantities for which, each buyer or consumer in a market is willing to pay for at different prices.
Thus, the market demand curve is downward sloping due to the fact that as the price of a product increases, the quantity demanded by the consumer decreases.
Generally, the demand for a good or service increases when consumer income increases and it decreases when the income earned by consumers fall. Thus, the demand for goods or services is directly proportional to consumer income.
Hence, a factor which would cause an increase in the demand for natural gas is an increase in consumer incomes.
A firm presents a market value balance sheet and a book value balance sheet to prospective investors. What is wrong with using the book value version of the balance sheet in making a decision to invest in the company?A : The book value is based on comparative values.B : The book value is too low compared to market values.C : The book value is based on historical values.D : The book value represents sample values used in the sheet.
Answer:
c
Explanation:
The expected average rate of return for a proposed investment of $5,610,000 in a fixed asset, using straight-line depreciation, with a useful life of 20 years, no residual value, and an expected total net income of $16,830,000 over the 20 years is (round to two decimal points). a.15.00% b.30.00% c.1.50% d.60.00%
Answer:
b.30.00%
Explanation:
Calculation to determine what the expected total net income of $16,830,000 over the 20 years is
Expected total net income =($16,830,000/20)/($5,610,000/2)*100
Expected total net income=$841,500/$2,805,000
Expected total net income =30.00%
Therefore the expected total net income of $16,830,000 over the 20 years is 30.00%
g If it is difficult to substitute for a good in the short run, but easy in the long run, then _____ . Group of answer choices the elasticity of demand is more elastic in the short un elasticity changes along the demand curve the elasticity of demand is more elastic in the long run the good is an inferior good
Answer:
the elasticity of demand is more elastic in the long run
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
In the long run, people have more time to search for suitable alternatives than when compared to the short run. Thus, demand tends to be more elastic in the long run
Blue Co. recorded a right-of-use asset of $210,000 in a 10-year operating lease. Payments of $37,167 are made annually at the end of each year. The interest rate charged by the lessor was 12% and was known by Blue. The balance in the right-of-use asset after two years will be:
Answer:
The balance in the right-of-use asset after two years will be $184,629.96.
Explanation:
This can be calculated as follows:
First year interest = Cost of the right-of-use asset * Interest rate = $210,000 * $12% = $25,200
Principal paid in the first year = Annual payment - First year interest = $37,167 - $25,200 = $11,967
Balance in the right-of-use asset after one year = Cost of the right-of-use asset - Principal paid in the first year = $210,000 - $11,967 = $198,033
Second year interest = Balance in the right-of-use asset after one year * Interest rate = $198,033 * $12% = $23,763.96
Principal paid in the second year = Annual payment - Second year interest = $37,167 - $23,763.96 = $13,403.04
Balance in the right-of-use asset after two years = Balance of the right-of-use asset after one year - Principal paid in the second year = $198,033 - $13,403.04 = $184,629.96
Therefore, the balance in the right-of-use asset after two years will be $184,629.96.
You need to have $32,250 in 9 years. You can earn an annual interest rate of 4 percent for the first 5 years, and 4.6 percent for the next 4 years. How much do you have to deposit today? A. 23341.12 B. 20769.78 C. 22142.99 D. 24936.86
Answer:
The deposit today is:
C. 22142.99
Explanation:
a) Data and Calculations:
Future expected value = $32,250
Time period = 9 months
Annual interest rate = 4% for the first 5 years
Annual interest rate = 4.6% for the next 4 years
Today's deposit to earn the above future value is calculated from an online financial calculator as follows:
N (# of periods) 5
I/Y (Interest per year) 4
PMT (Periodic Payment) 0
FV (Future Value) 26940.33
Results
PV = $22,142.99
Total Interest $4,797.34
N (# of periods) 4
I/Y (Interest per year) 4.6
PMT (Periodic Payment) 0
FV (Future Value) 32250
PV = $26,940.33
Total Interest $5,309.67
An account is opened with an initial deposit of $5,500 and earns 2.5% interest compounded annually. What will the account be worth in 10 years
Answer:
Explanation:
Every year the 5,500 Dollars, make an interest of 2.5% so if ten years have passed.
2.5x10
=25% are added to the money so find out the 25% of 5,500
5,500 x 0.25
= 1375
1375 + 5500
= 6875 Dollars is the total money in 10 years
Thank you!!
Standards for competitive rivalry differ in countries throughout the world. What should firms do to cope with these differences? How do the differences relate to ethical practices?
Explanation:
As a consequence of the market factors prevalent in the market, there really are various levels of competitiveness. The quality of the company's strategy, for example, will be determined by the quality standards imposed by government bodies.
These differences are linked to ethical behaviours in the sense that they will impact the quality of commodities produced by firms. When the quality of the products is degraded, it raises ethical concerns about the product.
what is the effect on market when suppliers under invest in their businesses
Answer:
Low supplyScarcityLow economic growthExplanation:
When suppliers under invest in their business, they will end up having the capacity to only produce less than the market requires. Should this happen, supply will be reduced in the market which would lead to relative scarcity all else being equal.
For economic growth to happen, there must be increasing production in an economy so if suppliers are under investing and production is low, there might be low or no economic growth.
Twenty graduate students in business were asked how many credit hours they were taking in the current quarter. Their responses are shown as follows:
Student Number Credit Hours Student Number Credit Hours Student Number Credit Hours
1 2 8 8 15 10
2 7 9 12 16 6
3 9 10 11 17 9
4 9 11 6 18 6
5 8 12 5 19 9
6 11 13 9 20 10
7 6 14 13
Required:
a. Determine the mean, median, and mode for this sample of data. Write a sentence explaining what each means.
b. It has been suggested that graduate students in business take fewer credits per quarter than the typical graduate student at this university. The mean for all graduate students is 9.1 credit hours per quarter, and the data are normally distributed. Set up the appropriate null and alternative hypotheses, and determine whether the null hypothesis can be rejected at a 95 percent confidence level.
Answer:
Since the calculated value of t= -1.016 does not fall in the critical region t ≥ 1.729 we conclude that the mean for all graduate students is 8.5 and fail to reject the null hypothesis.
Explanation:
Student Credit Student Credit Student Credit
Number Hours Number Hours Number Hours
1 2 8 8 15 10
2 7 9 12 16 6
3 9 10 11 17 9
4 9 11 6 18 6
5 8 12 5 19 9
6 11 13 9 20 10
7 6 14 13
The mean is the value which gives the average value of all the data.It is obtained by adding the value and dividing it by the number of values.
x`= ∑x/n
x`=2 +8 +10+ 7+ 12 + 6+ 9 +11+ 9 +9 +6 + 6 +8 + 5+ 9 +11+ 9+ 10+ 6 + 13/20
x`= 8.3
Median is the middle value which divides the data into two equal halves.
2 5,6,6,6,6, 7,8 ,8, 9,9, 9,9 ,9 ,10, 10,11,11, 12 , 13
For even number
Median = n/2=10 th.
Here the 10th value is 9 when the data is arranged in ascending order.
Mode=9
Mode gives the repeated value .
Let the hypotheses be
H0 : u = 8.5 vs Ha: u ≥ 8.5
The mean for all graduate students is 8.5
against the claim that
The mean for all graduate students is greater than 8.5
The sample mean x`= 8.5 and standard deviation s= 2.64
Putting in the test statistic
t= x`- u / s/ √n
t= 8.5-9.1/2.64/√20
t= -0.6/2.64/4.472
t= -1.016
The critical region for alpha = 0.05 for one tailed test with n-1= 2-0-1= 19 degrees of freedom is t ≥ 1.729
Since the calculated value of t= -1.016 does not fall in the critical region t ≥ 1.729 we conclude that the mean for all graduate students is 8.5 and fail to reject the null hypothesis.
Durable goods $3,000
Services $6,000
Business purchases of capital goods $400
Fixed investment $850
Exports $600
Imports $800
Nondurable goods $700
Inventory investment $200
Government transfer payments $100
Purchases of new residential housing $450
Government purchases $900
GDP is equal to:_______
a. $14,000
b. $11,550
c. $11,450
d. $8,600
e. $13,050
Answer:
c. $11,450
Explanation:
GDP = Consumption (C) + Investment (I) + Government Expenditure (G) + Net Export (NX)
GDP = [Non durable goods+Durable goods+Services] + [Fixed investment+Inventory investment] + Government purchase + [Export-Import]
GDP = [$700+$3000+$6000] + [$850+$200] + $900 + [$600-$800]
GDP = $9700 + $1050 + $900 - $200
GDP = $11,450
The Allowance for Bad Debts account had a balance of $10,600 at the beginning of the year and $12,200 at the end of the year. During the year (including the year-end adjustment), bad debts expense of $18,800 was recognized.
Required:
Calculate the total amount of past-due accounts receivable that were written off as uncollectible during the year. (Hint: Make a T-account for the Allowance for Bad Debts account, plug in the amounts that you know, and solve for the missing amount.)
Bad debt write-offs _________
Answer:
Written off = $17,200
Explanation:
Allowance for Bad Debt Account
Debtors (Write off) (Bal. fig) $17,200 Beginning Bal. $10,600
Bad debt expense $18,800
Ending Balance $12,200
Thus, the total amount of past-due accounts receivable that were written off as uncollectible during the year is $17,200.
Enviro Company issues 14.00%, 10-year bonds with a par value of $500,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 11.00%, which implies a selling price of 129.625. The straight-line method is used to allocate interest expense.
Required:
a. Using the implied selling price of 129 5/8. what are the issuer's cash proceeds from issuance of these bonds?
b. Whet total amount of bond interest expense will be recognized over the life of these bonds?
Answer: a. $648,125
b. $551875
Explanation:
a. Using the implied selling price of 129 5/8. what are the issuer's cash proceeds from issuance of these bonds?
Bonds Face Value = $500,000
Cash Proceeds will then be:
= 129.625% × $500,000
= $648,125
b. What total amount of bond interest expense will be recognized over the life of these bonds?
20 payments of $35000 = $700000
Pee value at maturity = $500000
Total repaid = $1200000
Less: Amount borrowed = $648125
Total bond Interest expense = $551875
If the shadow price for a resource is 0 (the allowable increase is 1000) and 150 units of the resource are added what happens to the optimal solution
Answer:
The answer is "No change"
Explanation:
The optimal solution is a feasible alternative where the optimal solution reaches its highest (or lowest) values, including most profit and the price is lower. There is no other viable solution with an objective function that is universally ideal. Whenever the resource regression coefficient is 0, the best solution would not be changed.
A statement of cash flows reflects a net cash flow from operating activities of -$89 million, a net cash flow from investing activities of $42 million, and a net cash flow from financing activities of $28 million. What can you determine from this information
Answer:
The net cash movement is -$19 million, this means that the firm is facing liquidity challenges.
Explanation:
Movement of Cash during the year :
Net cash flow from operating activities -$89 million
Net cash flow from investing activities $42 million
Net cash flow from financing activities $28 million
Movement during the year -$19 million
Conclusion,
The net cash movement is -$19 million, this means that the firm is facing liquidity challenges.
__________________ includes policies, procedures and mindset of top management. A tangible representation can be found in the employee handbook or annual statement. Monitoring process Control activity Control environment Risk assessment
Answer:
Control environment
Explanation:
Internal controls can be defined as the policies, set of rules, and procedures implemented or put in place by an organization to protect its assets, boost efficiency, enhance financial accountability, enforce adherence to company policies and prevent fraudulent behaviors among the employees.
The main purpose of internal controls is to guarantee that loss is eliminated by ensuring that there is an accurate and reliable accounting system.
An internal control involves the timely use of both internal and external sources of auditing or financial reporting and as such enhance the maintenance of accurate and proper financial records which would also improve their operational efficiency.
Hence, internal controls if properly executed helps to increase operational efficiency, protect and safeguard assets, provides accurate financial information, prevents fraudulent or unlawful behaviors, timeliness of financial records and reporting. Internal control includes the control environment.
Control environment includes policies, procedures and mindset of top management. One good example of the representation of a control environment can be found in the employee handbook or annual statement of the business firm or organization.
The United States requires that 50 percent of all parts used to construct an automobile in the United States be manufactured in the United States. As a result of this, when Toyota Motor Company builds automobile manufacturing plants in Tennessee and Ohio, it faces economic risks associated with _______
Answer:
Local-content laws
Explanation:
Local content laws are designed to encourage increased impact of locally produced goods on the local, regional, or national economy.
It goes beyond just making profit for the firm, but also how much the local products contribute to the economy.
In the given scenario the local content law in the United States is that 50 percent of all parts used to construct an automobile in the United States be manufactured in the United States.
This is a local content requirement.
So Toyota motor Company is facing risk associated with local content laws.
Sixty monthly deposits are made into an account paying 6% nominal interest compounded monthly. If the objective of these deposits is to accumulate $100,000 by the end of the fifth year, what is the amount of each deposit?
Answer:
The amount is "$1433.28"
Explanation:
The amount of each deposit is calculated as shown below:
[tex]\begin{aligned}&A=100000\left(A / F, \frac{6 \%}{12}, 5 * 12\right)=100000(A / F, 0.5 \%, 60)=100000(A / F, 0.005,60) \\&(A / F, i, N)=\frac{i}{\left((1+i)^{N}-1\right)} \quad(A / F, 0.005,60)=\frac{0.005}{\left((1+0.005)^{60}-1\right)}=0.0143328 \\&(A / F, 0.005,60)=\frac{0.005}{\left((1+0.005)^{60}-1\right)}=0.0143328 \\&A=100000(A / F, 0.005,60)=100000(0.0143328) \\&A=\$ 1433.28\end{aligned}[/tex]
Jane has discovered that she is bored and frustrated working for others. She wants to open a business where she alone will have control and the least interference from government regulation. Which form of business would best meet her needs
Answer:
Sole proprietorship.
Explanation:
A sole proprietorship is a type of business that is owned by a single person and as such their profits are taxed once as personal income tax. It is a type of business that is typically owned by an individual or one person and as such is solely responsible for its debts.
In this scenario, Jane discovers she is bored and frustrated working for other business owners and as a result, she wants to open her own business, wherein, she alone will have control over the business and with the least interference of any form through government regulation. Thus, the form of business which would best meet Jane's needs is a sole proprietorship business because it is offers an exclusive ownership and control to its owner while preventing third-party interference.
Use the following information to create an Excel workbook and write the appropriate Excel formula.
Single Payment Compound Amount-
SPCA = (1+i)^n
i, interest rate per period, has a value of 0.00675
n, number of periods, has a value of 89.
Your answer must be the value produced by the Excel formula. Your answer must contain TWO and only TWO decimal places.
Answer:
id k
Explanation:
I=Prt try that if it helps
intrest = principla x rate x time
Strong, Inc., bundles two kinds of service activities into a single $6,000 fixed-price contract, yielding two distinct performance obligations, A and B. Each activity has a stand-alone selling price of $3,200. Obligation A is satisfied immediately upon contract signing. Obligation B is satisfied evenly over an eight-month period. After the date of contract signing and the satisfaction of obligation A, two months have passed. Cumulatively, how much revenue should Strong, Inc., recognize by the end of the second month
Answer:
the revenue recognized is $3,750
Explanation:
The computation of the revenue that recognized by the end of the second month is given below:
= $6,000 ÷ $6,400 × $3,200 + $6,000 ÷ $6,400 × $3,200 × 2 months ÷ 8 months
= $3,750
The $6,400 comes from
= $3,200 + $3,200
= $6,400
Hence, the revenue recognized is $3,750