Wildhorse Company's Sales Budget Report for June 2022 shows that the agency did now not achieve its deliberate objectives for Product A, with a difference of three, two hundred gadgets (Unfavorable).
However, for Product B, the employer exceeded its deliberate goals with a distinction of -3,800 devices (Favorable). Overall, the organization exceeded its general sales target with the aid of $10,520 (Favorable).
Budget
WILDHORSE COMPANY
Sales Budget Report:
For the Month Ending June 30, 2022-
Product Line Product A Product B Total Sales
Quantity 44,400 50,200
Unit Price $7 $9
Total Revenue $310,800 $451,800 $762,600
Actual
WILDHORSE COMPANY
Sales Budget Report
For the Month Ending June 30, 2022
Product Line Product A Product B Total Sales
Quantity 41,200 54,000
Unit Price $7.10 $eight.90
Total Revenue $292,520 $480,600 $773,120
Difference (F/U/NA) (U) (F) (U)
Explanation:
Product A:
Budgeted Quantity: 44,400
Actual quantity sold: 41,200
Difference: 44,400 - 41200= 3,200 (Unfavorable)
Product B:
Budgeted amount: 50,200
Actual amount sold: 54,000
Difference: 50,two hundred - 54,000 = -three,800 (Favorable)
Total Sales:
Budgeted general sales: $762,600
Actual general sales: $773,170
Difference: $773,120- $762,600= $10,520 (Favorable)
The corporation performed its deliberate goals for Product B because it offered more units than budgeted at a better unit fee. However, for Product A, the organization sold fewer gadgets than deliberately, resulting in an adverse difference.
Overall, the business enterprise handed its overall sales revenue target, with a good distinction of $10,520.
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15 PPE Depreciation Wilma's Wicker Furniture purchased a laser-guided mitre saw on January 1, 2020 at a cost of $20,000. Deprecia and 2021 was based on an estimated 8-year useful life and $4,000 estimated residual value. The saw has an ex service life of 128,000 hours and operated for a total of 18,000 hours in 2020 and 12,000 in in 2021. On Janua Wilma's revised its estimates and now believes the laser mitre saw will have a total service life of an additic or 135,000 total hours but the residual value will be only $2,000. Wilma's uses the units-of-production meth depreciate all assets. Wilma's Wicker Furniture has a December 31 year end and operated the saw for 20,C Required: Calculate the following items (provide supporting calculations in the workspace below): January 1, 2020 Depreciable Amount: $ 2020 Depreciation Expense: $ 2021 Depreciation Expense: $ December 21 2021 Tere values
January 1, 2020 Depreciable Amount: $18,000
2020 Depreciation Expense: $2,250
2021 Depreciation Expense: $1,500
What are the depreciation amounts for each year?To calculate the depreciable amount, we subtract the estimated residual value ($4,000) from the initial cost ($20,000), resulting in $16,000. Since the saw's total service life is estimated to be 128,000 hours, the depreciation per hour is $16,000 divided by 128,000 hours, which equals $0.125 per hour.
In 2020, the saw operated for 18,000 hours, so the depreciation expense is $0.125 multiplied by 18,000 hours, which equals $2,250.
In 2021, the saw operated for 12,000 hours, resulting in a depreciation expense of $0.125 multiplied by 12,000 hours, which equals $1,500.
It's important to note that on January 1, 2022, Wilma's revised their estimates, extending the total service life to 135,000 hours but reducing the residual value to $2,000. However, since the question does not ask for the depreciation amount for 2022 or beyond, we have not calculated it.
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A 4-step binomial tree is used to price options. On that tree, the value of the underlying asset can go down by 4.65% and time steps have 17 months. What is the value of the annualized volatility, assuming the standard Cox, Ross, and Rubinstein (1979) approach was used to calibrate this tree? Express your final result in percentages [%] per annum, rounded to the first decimal digit. Enter one number only without unit or percentage [%] sign, using the dott.) to separate the decimals. Answer:
The value of the annualized volatility, assuming the standard Cox, Ross, and Rubinstein (1979) approach, is 48.5%.
What is the annualized volatility value using the Cox, Ross, and Rubinstein approach?The Cox, Ross, and Rubinstein (CRR) approach is a commonly used method to calculate the annualized volatility of an underlying asset in option pricing using a binomial tree. In this case, a 4-step binomial tree is used, and the underlying asset's value can go down by 4.65% per time step. Since the time steps in this scenario are 17 months, we need to calculate the annualized volatility.
To calculate the annualized volatility using the CRR approach, we can use the formula:
Volatility = (1 - Downward Movement / Upward Movement) / √Time Steps
In this case, the downward movement is 4.65% (0.0465) and the time steps are 17 months. We can assume equal upward and downward movements, so the upward movement is -1 / (1 - Downward Movement). Plugging in the values into the formula, we can calculate the volatility.
Volatility = (1 - (0.0465 / - 0.0465)) / √17 = 0.485 or 48.5%
Therefore, the value of the annualized volatility, assuming the standard CRR approach, is 16.7% per annum, rounded to the first decimal digit.
The Cox, Ross, and Rubinstein (CRR) approach is a popular method for option pricing using a binomial tree. It provides a discrete approximation of the continuous Black-Scholes-Merton model and allows for the estimation of option prices and related parameters such as volatility. The CRR approach involves constructing a binomial tree, where each node represents the possible price of the underlying asset at a specific time. By calibrating the tree to match the option's known market price, the implied volatility can be derived. This approach assumes that the underlying asset's price can move up or down by a fixed factor at each time step. The annualized volatility, calculated using the CRR approach, provides a measure of the asset's price variability over time and is crucial for option pricing and risk management.
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Ehsan contributed a building at $22,500 and a land valued at $60,000. The journal entry to record this transaction for the partnership is OA Ehsan, Capital. 80,100 Building 22,500 Land. 66,000 OB. Ehs
The given journal entry to record Ehsan's contribution of a building valued at $522,500 and land valued at $560,000 to the partnership seems to contain some errors.
Here's the correct journal entry based on the provided information:
Debit Building for $522,500Debit Land for $560,000Credit Ehsan, Capital for $1,082,500In this entry, we debit the Building and Land accounts to reflect the increase in the partnership's assets due to Ehsan's contribution. The total value of the assets contributed is $1,082,500. To balance the entry, we credit Ehsan's Capital account by the same amount, indicating his increased ownership stake in the partnership. The given options do not accurately record the transaction, as they contain incorrect values and additional accounts that are not necessary for this specific transaction.For such more question on journal entry
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The distribution of house prices is skewed to the right because most houses cost a modest amount but a few cost a very large amount. If you take a random sample of 1000 houses, can you reasonably expect the distribution of the house prices to be approximately normal? Explain your answer.
No, it would not be reasonable to expect the distribution of house prices in a random sample of 1000 houses to be approximately normal if the overall distribution of house prices is skewed to the right.
The normal distribution, also known as the bell curve, assumes symmetry and equal probabilities of observations occurring on both sides of the mean. In a skewed distribution where most houses have modest prices but a few have very large prices, the data is likely to have a long tail on the right side. This indicates the presence of outliers or extreme values that can significantly impact the distribution. The normal distribution does not account for such extreme values or long tails.
Instead, a skewed distribution is better represented by a different probability distribution, such as the skewed right distribution, which acknowledges and accommodates the asymmetry and the presence of outliers. Therefore, it would be more appropriate to expect the distribution of house prices in a random sample of 1000 houses to be skewed to the right, similar to the overall distribution of house prices in the population.
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firms suffering losses in the short run should always continue to operate since they must pay their fixed costs. true false
The given statement "Firms suffering losses in the short run should always continue to operate since they must pay their fixed costs." is FALSE.
In the short run, firms that are experiencing losses must assess their situation and make strategic decisions based on their financial condition and prospects for improvement.
While it is true that fixed costs need to be paid regardless of a firm's financial performance, continuing to operate solely to cover fixed costs may not always be the best course of action.
When a firm is consistently incurring losses, it is crucial to evaluate whether the losses are temporary or indicative of a more systemic issue. Continuing to operate without addressing the underlying problems can lead to further losses and financial distress.
In some cases, firms may choose to temporarily suspend or curtail operations, restructure their operations, seek cost-cutting measures, or explore alternative strategies to improve profitability.
These decisions are based on a careful analysis of the firm's financial position, market conditions, competitive landscape, and the feasibility of turning the business around.
Ultimately, the decision to continue or cease operations should be based on a comprehensive assessment of the firm's long-term viability, prospects for recovery, and the potential impact on stakeholders such as employees, creditors, and shareholders.
Simply continuing to operate solely to cover fixed costs without addressing the underlying issues may not be a sustainable or prudent approach in the long run.
So, the given statement is false.
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On the basis of the following data, what is the estimated cost of the merchandise inventory on May 31 using the retail method
Cost Retail
May 1 Merchandise Inventory $29,257 $48,762
May 1-31 Purchases 46,208 67,338
May 1:31 Sales 101,000
o Os 535535
o 9,815
o 9,360
o 15,100
The estimated cost of the merchandise inventory on May 31 using the retail method is $9,815.
Calculate the cost-to-retail ratio and apply it to the retail value of the remaining inventory.
Cost-to-Retail Ratio = Cost / Retail = ($29,257 + $46,208) / ($48,762 + $67,338) = $75,465 / $116,100 = 0.65
Calculate the estimated cost of the merchandise inventory on May 31:
Estimated Cost = Cost-to-Retail Ratio × Retail Value of Remaining Inventory
Estimated Cost = 0.65 × (Beginning Retail - Sales) = 0.65 × ($48,762 + $67,338 - $101,000)
Estimated Cost = 0.65 × $15,100 = $9,815
Therefore, the estimated cost of the merchandise inventory on May 31 using the retail method is $9,815.
The correct answer is B. $9,815.
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On January 1st, 2009, xyz Company purchased equipment for $360,000. The estimated useful life of this asset was 4 years, and the salvage value was $60,000.
a) Prepare a schedule showing depreciation for the life of the asset, assuming that the company used the straight-line method of depreciation.
b) Prepare a schedule showing depreciation for the life of the asset, assuming that the company used the double-declining balance method of depreciation.
Answer in asper Canadian format
Straight-Line Method of Depreciation: In the straight-line method of depreciation, the same amount of depreciation is charged to the asset for each year of its useful life.
The following schedule shows the annual depreciation expense calculation using the straight-line method for this asset. Using the Straight-line method of depreciation,
Annual Depreciation = ($360,000 – $60,000) / 4= $75,000 per year
The depreciation expense for each of the four years is:$75,000 for 2009, 2010, 2011, and 2012b) Double-Declining Balance Method of Depreciation:
The double-declining balance method of depreciation is an accelerated depreciation technique. It charges a higher depreciation expense in the first years of the asset's life than in the later years. The depreciation expense decreases each year but not by the same amount as it does in straight-line depreciation. The formula for the annual depreciation expense under the double-declining balance method is as follows:
Double-Declining Balance Depreciation = (2 / Useful life)
The following schedule shows the annual depreciation expense calculation using the double-declining balance method for this asset.
The Asset's cost = $360,000 and its useful life is 4 years.
Useful life = 4 years;
Salvage value = $60,000Rate of depreciation = (2/4) = 0.5 or 50%Year 1 calculation:
Depreciation = 50% * $360,000 = $180,000.00Year 2 Calculation:
Depreciation = 50% * ($360,000 - $180,000) = $90,000.00Year 3 Calculation:
Depreciation = 50% * ($360,000 - $270,000) = $45,000.00Year 4 Calculation:
Depreciation = 50% * ($360,000 - $315,000) = $22,500.00
Therefore, the depreciation schedule using the double-declining balance method of depreciation is as follows:
YEAR DEPRECIATION2009 $180,000.002010 $90,000.002011 $45,000.002012 $22,500.00
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Which of the following is most likely to be a motivation to over-report net income? a) To minimize tax consequences. b) Meet earnings expectations. c) Negotiate labor union contracts.
The most likely to be a motivation of following to over-report net income is b) Meet earnings expectations.
Among the options provided, the most likely motivation to over-report net income is to meet earnings expectations. Earnings expectations are the anticipated level of profitability that investors, analysts, and stakeholders have for a company. Companies may have a strong incentive to over-report net income if they believe that falling short of these expectations could result in negative consequences, such as a decrease in stock price or loss of investor confidence. By inflating net income, companies can create the perception of better financial performance, meeting or even exceeding the anticipated earnings expectations.
The correct answer is option b) Meet earnings expectations. While minimizing tax consequences and negotiating labor union contracts may be motivations for financial manipulation in some cases, meeting earnings expectations is often a primary driver for over-reporting net income, as it directly affects a company's reputation, stock value, and investor perception.
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Question 232 pts
Which literary technique is being used in the quotation
below?
From "Daddy" by Sylvia Plath:
There’s a stake in your fat black heart
And the villagers never liked you. (lines 76
The literary technique being used in the quotation is metaphor.
The literary technique being used in the quotation is metaphor. In these lines from Sylvia Plath's poem "Daddy," the speaker is using metaphorical language to convey intense emotions and portray a complex relationship.
The metaphorical language is evident in the line "There's a stake in your fat black heart." Here, the speaker compares the subject's heart to a stake, which symbolizes both a sharp object that can cause pain and a symbol of punishment or retribution. The use of "fat black heart" intensifies the imagery, suggesting a heart that is heavy, dark, and filled with negative qualities.
The metaphor continues with the line "And the villagers never liked you." Here, the speaker extends the metaphor by likening the subject to a disliked or ostracized figure in a village. This implies that the subject is seen as an outsider, someone who is rejected or disliked by others.
By employing this metaphor, Plath conveys a deep sense of resentment, anger, and disdain towards the subject, who is often interpreted to represent the speaker's father. The metaphorical language adds depth and complexity to the speaker's emotional response, creating vivid and evocative imagery that helps convey the intensity of their feelings.
Overall, the use of metaphor in these lines from "Daddy" serves to heighten the emotional impact of the poem and contribute to its overall theme of complex relationships, power dynamics, and the speaker's struggle for independence and self-expression.
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Moving to another question will save this response. Question 9 When a company declares and distrbutes stock dividends, it should be reported on financing activities section of the statement of cash fl
When a company declares and distributes stock dividends, it should be reported in the financing activities section of the statement of cash flows.
The statement of cash flows is a financial statement that outlines the inflows and outflows of cash for an organization during a specific timeframe. It is categorized into three sections: operating activities, investing activities, and financing activities. The financing activities section specifically focuses on cash flows related to financing, such as the issuance or repurchase of stocks and bonds, as well as dividend payments. Hence, when a company distributes stock dividends, which involves a transfer of value to shareholders, it is considered a financing activity and should be disclosed in the financing activities section of the statement of cash flows.In conclusion, when a company declares and distributes stock dividends, it is classified as a financing activity and should be reported in the financing activities section of the statement of cash flows.
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Reese works in Prince Edward Island and has 2022 payroll totals of regular earnings of $62,700.00, vacation pay of $2,680.00, overtime pay of $518.00, interest-free loan taxable benefit of $780.00, group term life insurance taxable benefit of $314.00, pension adjustment of $2,880.00 and employee contributions to a Registered Retirement Savings Plan of $1,890.00. Calculate the total to be recorded in Box 14 of Reese's T4 information slip.
The total to be recorded in Box 14 of Reese's T4 information slip is $67,992.00.
To calculate the total to be recorded in Box 14 of Reese's T4 information slip, we need to add up the regular earnings, vacation pay, overtime pay, and any taxable benefits.
Total earnings:
Regular earnings: $62,700.00
Vacation pay: $2,680.00
Overtime pay: $518.00
Total taxable benefits:
Interest-free loan taxable benefit: $780.00
Group term life insurance taxable benefit: $314.00
Total earnings + Total taxable benefits:
$62,700.00 + $2,680.00 + $518.00 + $780.00 + $314.00 = $67,992.00
The total to be recorded in Box 14 of Reese's T4 information slip is $67,992.00.
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1. We can describe resources that generate a temporary, yet a competitive advantage as resources that are,
A) valuable, rare and costly to imitate.
B) valuable and rare but not costly to imitate.
C) valuable but neither rare nor costly to imitate.
D) valuable and either rare or costly to imitate.
The correct option to the sentence "We can describe resources that generate a temporary, yet a competitive advantage as resources that are," is:
D) valuable and either rare or costly to imitate.
A competitive advantage refers to any advantage that a firm has over its competitors. It allows a company to produce goods or services more effectively or at a lower cost than its competitors. Competitive advantages can come from various sources, including unique resources, patents, technologies, and branding.
Resources are the fundamental building blocks of a company, and they can be used to gain a competitive advantage. Resources that are valuable, rare, and difficult to imitate have the potential to create sustainable competitive advantages, according to resource-based theory. These types of resources are described as competitive resources.
According to the resource-based theory, valuable resources have the ability to increase the effectiveness and efficiency of a firm's operations. Rare resources are uncommon and difficult to come by. Costly-to-imitate resources are assets that cannot be replicated easily by rivals. All three of these factors must be present to create a sustainable competitive advantage.
Therefore, resources that generate a temporary but competitive advantage are valuable and either rare or costly to imitate. Option D is the correct answer.
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Do
you know any company or organization fit the characteristics of any
of the four types in OCAI? Please describe it.
One company that fits the characteristics of Clan Culture in OCAI is Googgle.
Googgle is known for promoting a collaborative and employee-focused environment, where the focus is on employee engagement and empowerment.
Their approach is to treat their employees as family members and encourage them to take on new challenges and tasks to help them grow both professionally and personally.
Employees at Googgle are given a high degree of autonomy, which allows them to work independently and make decisions on their own, which in turn leads to high levels of motivation and productivity.
Googgle is also known for its innovative culture and risk-taking attitude, which aligns with the entrepreneurial and innovative traits that are typically associated with Clan Culture.
In conclusion, Googgle fits the characteristics of Clan Culture in OCAI as it is employee-focused, collaborative, and promotes innovation and risk-taking.
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On October 1, 2021, Concord Company places a new asset into service. The cost of the asset is $113000 with an estimated 5-year life and $38000 salvage value at the end of its useful life. What is the depreciation expense for 2021 if Concord Company uses the straight-line method of depreciation? O $22600 O $3750 O $5650 $11300
The depreciation expense for 2021, using the straight-line method of depreciation, would be $3,750.
To calculate the depreciation expense for 2021 using the straight-line method, we need to determine the depreciable amount and divide it by the asset's useful life.
The depreciable amount is the cost of the asset minus the salvage value:
Depreciable amount = Cost of the asset - Salvage value
Depreciable amount = $113,000 - $38,000
Depreciable amount = $75,000
Next, we divide the depreciable amount by the asset's useful life in years to find the annual depreciation expense:
Annual depreciation expense = Depreciable amount / Useful life
Annual depreciation expense = $75,000 / 5 years
Annual depreciation expense = $15,000
However, we need to calculate the depreciation expense for 2021, which is the year the asset was placed into service. Since it was placed into service on October 1, 2021, we only need to consider a portion of the year.
To calculate the depreciation expense for 2021, we can use a proration based on the number of months the asset was in service. In this case, it would be 3 months (October, November, December) out of 12 months.
Depreciation expense for 2021 = Annual depreciation expense * (Number of months in service / Total months in a year)
Depreciation expense for 2021 = $15,000 * (3 / 12)
Depreciation expense for 2021 = $15,000 * 0.25
Depreciation expense for 2021 = $3,750
Therefore, the depreciation expense for 2021, using the straight-line method of depreciation, would be $3,750.
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If consumer purchases of a good are highly sensitive to the price of the good, economists say the demand for the good is relatively: inelastic. elastic. robust. inverse.
If consumer purchases of a good are highly sensitive to the price of the good, economists say the demand for the good is relatively elastic.
The demand for a product is considered elastic if the percentage change in quantity demanded is greater than the percentage change in price. This indicates that when the price of the product goes down, consumers are more willing to purchase the product. If the price of the product increases, consumers are less willing to purchase the product.
Elastic demand is typically seen with non-essential items or luxury items. For example, the demand for designer handbags or luxury cars may be elastic because consumers can easily substitute them with less expensive items. In contrast, the demand for necessities like food and medical care is typically inelastic because people are willing to pay whatever price is necessary to obtain them.
In summary, if consumer purchases of a good are highly sensitive to the price of the good, economists say the demand for the good is relatively elastic.
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The VAT and NHIL Inclurige marked price of 1 standing fan is GHD 10.00 it the VAT and the MHIL are charged at rates of 12.1% and 2.5% respectively. Hind 1. The cost of the fan VAT and MHIL exclusive it. The Nuttil charges 1 The VAT charged The VAT and NHIL inclusive marked price of a standing fan is GHG 50.00. IF the VAT and NHIL are charged at a rate of 12½/2% and 22%. respectively find "The cost of the fan VAT and NHIL exclusive "The NITIL charged Wilhe VAT charged
Given: The VAT and NHIL inclusive marked price of 1 standing fan is GH₵10.00, and the VAT and the NHIL are charged at rates of 12.1% and 2.5% respectively.
The cost of the fan VAT and NHIL exclusive:For the fan, the VAT and NHIL exclusive marked price (MP) = cost price (CP)VAT and NHIL exclusive marked price (MP) of the fan = GH₵10.00/(1 + 0.121 + 0.025) = GH₵7.59Thus, the cost of the fan VAT and NHIL exclusive is GH₵7.59.
The Nuttil charged:VAT charged:Given, the VAT rate = 12.5/2% = 12.5/2/100 = 0.0625 and the NHIL rate = 22%.The NHIL charged will be 22/100 x 50 = GH₵11.The VAT charged will be 0.0625 x 50 = GH₵3.13.
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Corporations prefer bonds over preferred stock for financing their operations because:
a. Preferred Stocks require a dividend,
b. Bond interest rates change with the economy while stock dividends remain constant,
c. The after-tax cost of debt is less than the cost of preferred stock,
d. None of the above.
Corporations prefer bonds over preferred stock for financing their operations because the after-tax cost of debt is less than the cost of preferred stock. The correct option is C.
The after-tax cost of debt is generally lower than the cost of preferred stock for corporations. Interest payments made on bonds are tax-deductible, which reduces the overall cost of debt for the issuing corporation.
On the other hand, preferred stock requires regular dividend payments, which are not tax-deductible, increasing the cost for the corporation. Therefore, from a cost perspective, corporations often find issuing bonds more advantageous than issuing preferred stock. It correctly states that the after-tax cost of debt is generally lower than the cost of preferred stock, providing a valid reason for corporations' preference for bonds over preferred stock.
The correct option is C.
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On August 3, Let Loose sold 2,700 of the reacquired shares at $28 per share. On November 14, Let Loose sold the remaining shares at $24 per share. Journalize the transactions of May 27, August 3, and November 14.
Let Loose reacquired 4,000 shares of its $1 par value common stock on May 27, which had been originally issued for $40 per share. On August 3, it sold 2,700 shares at $28 per share and sold the remaining shares on November 14 for $24 per share.
Reacquisition of company shares can be done for various reasons, such as controlling ownership and increasing earnings per share. The entries for the three transactions of Let Loose show the accounting of the reacquisition and sale of its own common stock. The first entry on May 27 reflects the reacquisition of the 4,000 shares at their original issue price of $40 per share, which amounts to a total of $160,000. To record this transaction, the Treasury Stock account is debited for the cost of the shares repurchased while Cash is credited for the amount paid.
The second entry on August 3 records the sale of 2,700 shares from the reacquired shares at a price of $28 per share, which amounts to $75,600. For this transaction, Cash is debited for the amount received while Treasury Stock is debited for the cost of the shares sold. Additional Paid-In Capital—Treasury Stock account is credited for the difference between the cost and the selling price of the shares sold. The account Gain on Sale of Treasury Stock is also credited for the gain realized from the sale.
The last entry on November 14 shows the sale of the remaining 1,300 shares of treasury stock at $24 per share, totaling $31,200. To record this transaction, Cash is debited for the amount received, while Treasury Stock is debited for the cost of the shares sold. The Additional Paid-In Capital—Treasury Stock account is credited for the difference between the cost and the selling price of the shares sold. The account Loss on Sale of Treasury Stock is credited for the loss incurred from the sale.
Reacquisition of company shares can be done for various reasons, such as controlling ownership and increasing earnings per share. The entries for the three transactions of Let Loose show the accounting of the reacquisition and sale of its own common stock. The first entry on May 27 reflects the reacquisition of the 4,000 shares at their original issue price of $40 per share, which amounts to a total of $160,000. The second entry on August 3 records the sale of 2,700 shares from the reacquired shares at a price of $28 per share, which amounts to $75,600. The last entry on November 14 shows the sale of the remaining 1,300 shares of treasury stock at $24 per share, totaling $31,200.
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2 0 points eBook Hint Print References Prepare journal entries to record each of the following four separate issuances of stock. 1. A corporation issued 9,000 shares of $20 par value common stock for
1.Credit: Additional Paid-in Capital $36,000
2.Credit: Common Stock (Excess of Stated Value over Par Value) $51,500
3.Credit: Common Stock $56,000
4.Credit: Additional Paid-in Capital $56,000
Let's prepare the journal entries to record each of the four separate issuances of stock:
1.Issuance of 9,000 shares of $20 par value common stock for $216,000 cash:
Date: [Date of issuance]
Debit: Cash $216,000
Credit: Common Stock $180,000
Credit: Additional Paid-in Capital $36,000
2.Issuance of 4,500 shares of no-par common stock to promoters in exchange for their efforts, estimated to be worth $56,000. The stock has a $1 per share stated value:
Date: [Date of issuance]
Debit: Promoters' Efforts $56,000
Credit: Common Stock (Stated Value) $4,500
Credit: Common Stock (Excess of Stated Value over Par Value) $51,500
3.Issuance of 4,500 shares of no-par common stock to promoters in exchange for their efforts, estimated to be worth $56,000. The stock has no stated value:
Date: [Date of issuance]
Debit: Promoters' Efforts $56,000
Credit: Common Stock $56,000
4.Issuance of 2,250 shares of $100 par value preferred stock for $281,000 cash:
Date: [Date of issuance]
Debit: Cash $281,000
Credit: Preferred Stock $225,000
Credit: Additional Paid-in Capital $56,000
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The complete question is:
Prepare journal entries to record each of the following four separate issuances of stock.
1. A corporation issued 9,000 shares of $20 par value common stock for $216,000 cash.
2. A corporation issued 4,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $56,000. The stock has a $1 per share stated value.
3. A corporation issued 4,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth$56,000. The stock has no stated value.
4. A corporation issued 2,250 shares of $100 par value preferred stock for $281,000 cash.
Question 10 (10 points) Do leaders and managers need to have a balance of both emotional intelligence (EI) and intelligent quotient (IQ) or do leaders just need El and managers just need IQ? Explain y
Leaders and managers are responsible for leading and managing their organizations, teams, and employees, and both need to possess emotional intelligence (EI) and intelligent quotient (IQ) for optimal performance.
EI is crucial for leaders, while IQ is essential for managers, but both are essential for optimal performance. Leaders need to be emotionally intelligent to inspire and motivate their teams, promote creativity and innovation, and build trust and commitment within the organization.
They need to be empathetic, self-aware, and able to handle their emotions and those of their team members, especially in high-pressure situations. In contrast, managers need to be intelligent and capable of understanding complex problems, analyzing data, and making sound decisions based on logic and evidence. They need to be detail-oriented, organized, and good at planning and executing strategies. However, managers also need to have emotional intelligence, particularly when dealing with people.
They need to be able to communicate effectively, build relationships, and understand the emotional needs of their employees to create a positive work environment and achieve their goals. In conclusion, leaders and managers need to have a balance of both EI and IQ to achieve success in their roles and achieve their organizational goals.
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Thank you for your help!
Handy Home sells windows (40% of sales) and doors (60% of sales). The selling price of each window is $300 and of each door is $700. The variable cost of each window is $175 and of each door is $450.
The Handy Home sells two types of products windows and doors. The windows account for 40% of total sales while the doors account for 60%. Each product has a selling price and a variable cost associated with it. The selling price of each window is $300, while each door sells for $700. On the other hand, the variable cost of each window is $175, and for each door, it's $450.
To compute the contribution margin per unit for the two products, we can use the following formula:Contribution Margin per Unit = Selling Price per Unit - Variable Cost per UnitCM window = $300 - $175 = $125CM door = $700 - $450 = $250To calculate the contribution margin ratio, we use the following formula:Contribution Margin Ratio = (Contribution Margin per Unit / Selling Price per Unit) * 100CMR window = ($125 / $300) * 100 = 41.67%CMR door = ($250 / $700) * 100 = 35.71%
The contribution margin ratio helps us determine what percentage of sales revenue is available to cover the fixed costs of the company. In this case, we know that Handy Home sells more doors than windows, but windows have a higher contribution margin ratio. This means that for each window sold, Handy Home can contribute more money towards fixed costs than each door sold.
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Effect of Financing on Earnings Per Share
BSF Co., which produces and sells skiing equipment, is financed
as follows:
Bonds payable, 10% (issued at face amount)
$1,850,000
Preferred 2% stock, $20
The impact of financing on earnings per share depends on the financing instrument used by the company. Bonds payable and preferred stock have a negative impact on earnings per share as they increase interest expense and reduce net income.
Earnings Per Share (EPS) is the portion of a company's profit that is allocated to each share of common stock outstanding. EPS serves as an indicator of a company's profitability. Financing has a significant impact on the company's earnings per share. Changes in the capital structure of a company affect earnings per share by affecting the number of shares outstanding, the amount of interest expense, and the amount of dividend expense. BSF Co. is financed through bonds payable and preferred stock. The impact of this financing method on earnings per share can be assessed by analyzing the impact of these financing instruments on the number of shares outstanding, interest expense, and dividend expense. Number of Shares Outstanding: The number of shares outstanding is affected by the issuance of new bonds or preferred stock. When bonds are issued, they do not increase the number of shares outstanding. However, the payment of interest on the bonds reduces the company's net income, which in turn, reduces earnings per share. The payment of dividends on preferred stock also reduces the company's net income, which in turn reduces earnings per share. Thus, both bonds and preferred stock have a negative impact on earnings per share. Interest Expense: Interest expense reduces net income and, therefore, reduces earnings per share. Bonds payable have a higher interest expense than preferred stock dividends. As a result, bonds payable have a greater impact on earnings per share than preferred stock dividends. Dividend Expense: The payment of dividends on preferred stock reduces net income and, therefore, reduces earnings per share. Preferred stock dividends have a lower expense than bonds payable interest. As a result, preferred stock dividends have less of an impact on earnings per share than bonds payable interest.In conclusion, the impact of financing on earnings per share depends on the financing instrument used by the company. Bonds payable and preferred stock have a negative impact on earnings per share as they increase interest expense and reduce net income.The probable question may be:
Effect of Financing on Earnings Per Share
BSF Co., which produces and sells skiing equipment, is financed as follows:
Bonds payable, 10% (issued at face amount) $1,850,000
Preferred 2% stock, $20 par 1,850,000
Common stock, $25 par 1,850,000
Income tax is estimated at 60% of income.
Round your answers to the nearest cent.
a. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $721,500.
$fill in the blank 1 per share
b. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $906,500.
$fill in the blank 2 per share
c. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $1,091,500.
$fill in the blank 3 per share
By the Month Inc. sold 19,500 annual magazine subscriptions for $42 during December 20Y4. These new subscribers will receive monthly issues, beginning in January 20Y5. By the Month Inc. issued a $154,800, 180–day, 5% note payable on December 1, 20Y4. On March 31, 20Y5, By the Month Inc. had accounts payable of $22,000 and accrued wages payable of $6,700.
Prepare the Current Liabilities section of the balance sheet for By the Month Inc. on March 31, 20Y5. Do not round intermediate calculations and round your final answers to the nearest dollar. (Assume 360 days in a year.)
By the Month Inc.
Current Liabilities Section of the Balance Sheet
March 31, 20Y5
Current liabilities:
Accounts payable Federal income taxes expense Federal income taxes payable Sales Subscription revenue receivable Accounts payable
$Accounts payable
Accrued wages payable Federal income taxes expense Federal income taxes payable Sales Subscription revenue receivable Accrued wages payable
Accrued wages payable
Accrued interest payable Federal income taxes expense Federal income taxes payable Sales Subscription revenue receivable Accrued interest payable
Accrued interest payable
Federal income taxes expense, Federal income taxes payable, Notes payable, Sales, Subscription revenue receivable, Notes payable
Notes payable
Accounts payable, Advances on magazine subscriptions, Federal income taxes expense, Sales, Subscription revenue receivable, Advances on magazine subscriptions
Advances on magazine subscriptions
Total current liabilities $fill in the blank 11
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Buchanan Corp. forecasts the following payoffs from a project:
Outcome Probability of Outcome Assumptions
$1,000 50% pessimistic
$3,000 60% moderately successful
$6,000 50% optimistic
What is the expected value of the outcomes?
A) $3,000
B) $3,333
C) $5,300
D) The forecast is incorrect and must be modified before finding the expected value.
The resulting expected value is $5,300.
Option c is correct .
To calculate the expected value of an outcome, multiply the probabilities corresponding to each outcome and sum them up.
Given:
result:
50% chance of $1,000 (pessimistic)
result:
60% chance of $3,000 (moderate success)
result:
50% chance of $6,000 (optimistic)
Expected value = ($1,000 x 0.5) + ($3,000 x 0.6) + ($6,000 x 0.5)
Expected value = $500 + $1,800 + $3,000
Expected Value = $5,300
In this case, there are three possible outcomes, each with its own probability. Multiplying each outcome by its probability and summing it gives us an expected value of $5,300. This means that we can expect an average return of $5,300 from the project given the given probabilities.
Hence, Option c is correct .
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In the market for oil, the current price per barrel is $75, and the current demand is 600 barrels per day. It is predicted that price of oil will increase to $100 by the end the next 6 months. If the price elasticity of demand for oil is known to be 0.8, what is your best prediction of the quantity of oil that will be demanded at the end of the 6-month period? Show work for full credit.
Elasticity of demandElasticity of demand measures the degree to which demand changes when the price changes. When elasticity is less than 1, the demand for a good is inelastic (that is, the percentage change in quantity demanded is less than the percentage change in price).
When elasticity is greater than 1, the demand for a good is elastic (that is, the percentage change in quantity demanded is greater than the percentage change in price). When elasticity is equal to 1, the demand for a good is unit elastic (that is, the percentage change in quantity demanded is equal to the percentage change in price).Let's use the formula for price elasticity of demand to calculate the demand for oil that will be demanded at the end of the 6-month period.
Let's substitute the known values into the formula for price elasticity of demand:Price elasticity of demand = percentage change in quantity demanded / percentage change in priceThe price increased from $75 to $100. So the percentage change in price is:Percentage change in price = ((New Price - Old Price) / Old Price) * 100%Percentage change in price = (($100 - $75) / $75) * 100%Percentage change in price = (25 / 75) * 100%Percentage change in price = 33.3%.
Now we can use the price elasticity of demand formula to calculate the percentage change in quantity demanded:0.8 = percentage change in quantity demanded / 33.3%Solve for the percentage change in quantity demanded:Percentage change in quantity demanded = 0.8 * 33.3%Percentage change in quantity demanded = 26.64%To find the predicted quantity of oil demanded, we can use this formula:New Quantity Demanded = Old Quantity Demanded * (1 + percentage change in quantity demanded).
Let's substitute the known values into this formula:Old Quantity Demanded = 600New Quantity Demanded = 600 * (1 + 26.64%)New Quantity Demanded = 600 * 1.2664New Quantity Demanded = 759.84The best prediction of the quantity of oil that will be demanded at the end of the 6-month period is approximately 759.84 barrels per day.
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1. Name three (3) "Hillbilly" songs that crossed-over to the Pop Charts between 1938-41?
2. Name three (3) INDIES (Independent Recording Companies) during the 1950s.
3. Name three (3) major recording labels during the 1950s. (NOT MERCURY)
4. Name the four (4) sections of a Big band.
Name three (3) cities that had an independent recording company.
During 1938-1941, three "Hillbilly" songs that crossed over to the Pop Charts were "New San Antonio Rose", "Chattanooga Choo Choo", and "Tumbling Tumbleweeds".
2. Notable INDIES (Independent Recording Companies) in the 1950s included Sun Records (Memphis), Chess Records (Chicago), and Specialty Records (Los Angeles).
3. Major recording labels of the 1950s, excluding Mercury, were Columbia Records, RCA Victor, and Capitol Records.
4. The four sections of a Big band are Saxophones, Trumpets, Trombones, and Rhythm (piano, bass, guitar, drums).
5. Three cities with independent recording companies were Memphis (Sun Records), Chicago (Chess Records), and Detroit (Motown Records).
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Q3. Blue Sky Company produces toys and other items for use in beach and resort areas. A small inflatable toy has come in the market that the company is anxious to produce and sell. The new toy will se
Blue Sky Company is a company that produces toys and other items for use in beach and resort areas. A small inflatable toy has come in the market that the company is anxious to produce and sell. The new toy will sell for $18.00 per unit, and Blue Sky expects to sell at least 3,000 units per month.
Fixed costs of $12,000 per month will be required to produce the toy. Variable costs are estimated to be $10.00 per unit, and the company expects to use 2.5 direct labor hours to produce each unit of the product.The total production cost for the product, according to the given data, can be calculated by using the following formula:Total production cost = Fixed cost + Variable cost Per unit variable cost is calculated as follows:Per unit variable cost = Direct labor cost per unit + Direct materials cost per unit + Variable manufacturing overhead cost per unitAccording to the given data, the direct labor cost per unit of the product is 2.5 hours × $6.00 per direct labor hour = $15.00 per unit, direct materials cost per unit = $5.00 per unit, and variable manufacturing overhead cost per unit = $2.00 per unit.
Therefore, per unit variable cost is:Per unit variable cost = $15.00 + $5.00 + $2.00 = $22.00Therefore, the total production cost can be calculated as follows:Total production cost = Fixed cost + Variable cost= $12,000 + ($22.00 × 3,000)= $12,000 + $66,000= $78,000Therefore, the company will have to incur a total production cost of $78,000 to produce 3,000 units of the product. Since the company expects to sell at least 3,000 units per month at a selling price of $18.00 per unit, the company will generate a revenue of $54,000 per month. Since the revenue generated is more than the total production cost incurred, the company will make a profit on the sale of the product. Since the given data provides a fair and reasonable estimate of the costs and revenues, it can be assumed that the company's decision to produce and sell the new product will be profitable for the company. The company must take into account the other costs that may come up while producing and selling the product. However, the given data shows that the decision to produce and sell the new product will lead to a profit. Therefore, the company should go ahead and produce and sell the product.
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The incentive to offshore from a developed to a developing country the activities of a good's production that require low skills is (a) Lower wages for unskilled workers in the developing country (b) Lower relative wages for unskilled workers in the developing country (c) Lower transportation costs in the developing country (d) All answers are correct
The incentive to offshore from a developed to a developing country the activities of a good's production that require low skills is the lower relative wages for unskilled workers in the developing country.
As a result, offshoring is often used to move jobs from developed to developing countries.The incentive to offshore from a developed to a developing country the activities of a good's production that require low skills is Lower relative wages for unskilled workers in the developing country.
When a company is seeking to outsource to reduce production costs, one of the most important factors is labor costs. The low-wage rates in developing countries attract companies that require low-skill labor to the region. The lower relative wages in developing countries may also serve as an incentive for companies to relocate.
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what is the double entry system?
Answer: Double-entry bookkeeping, in accounting, is a system of book keeping where every entry to an account requires a corresponding and opposite entry to a different account. The double-entry system has two equal and corresponding sides known as debit and credit. Double entry, a fundamental concept underlying present-day bookkeeping and accounting, states that every financial transaction has equal and opposite effects in at least two different accounts. It is used to satisfy the accounting equation,
Suppose 'Car Today' is the only firm selling cars in a small, rural town in Victoria. Assume that people in the town do not want to leave the town to buy cars. Also assume that there is a constant marginal cost for 'Car Today'. What type of market structure do you think 'Car Today' belongs to? Why? Explain in 100 words or less.
The type of market structure that Car Today firm belongs to is the monopoly market structure. This market structure can be described as a market where a single firm dominates the entire market by producing and selling a good or service for which no other close substitute exists. Thus, it has a significant amount of market power that allows it to set the price for the good or service it produces.
In the case of Car Today, the company is the only firm selling cars in the town. The people of the town do not want to leave the town to buy cars, and there is a constant marginal cost for Car Today. This implies that the firm has no close competitors and can set the price for its cars as it deems fit. Therefore, Car Today can maximize its profit by setting a higher price for its cars.
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Students are expected to read Achieving Success in Virtual Teams which can be found in the Unit 3- Reading folder and use the following questions as a guide for the discussion that will ensue.
Describe the attributes that contribute to the success of virtual teams and those that contribute to the failure of virtual teams.
Discuss the extent to which the characteristics of well-functioning, effective groups overlap the attributes that contribute to the success of virtual teams.
Explain how cultural diversity can affect the effective functioning of virtual teams operating in a global economy.
Is Volvo’s approach to evaluating the effectiveness of its virtual teams one that could serve as a useful model for other organizations to follow in evaluating their own virtual teams? Justify your answer.
Virtual teams are those in which team members are not physically located in the same area, but rather work together via communication technology to achieve a common goal. The following are some of the attributes that contribute to the success of virtual teams:
1. Communication: One of the most important aspects of working in a virtual team is communication. Communication should be clear, concise, and regular, regardless of the distance between team members.
2. Trust: For virtual teams to be successful, there must be trust among the members.
3. Technology: Technology is the glue that holds virtual teams together. It allows team members to communicate with one another in real-time, share documents and files, and collaborate on projects.
4. Clear Goals: In order for virtual teams to be successful, the goals and objectives must be clear and well-defined. Each of the factors mentioned above contributes to the success of virtual teams. Conversely, a lack of communication, trust, technology, and clear goals are common reasons why virtual teams fail. The characteristics of well-functioning, effective groups overlap with those that contribute to the success of virtual teams to a great extent. These include good communication, trust, and clear goals, among other things.
A well-functioning, effective group can be translated into a virtual environment, provided that these key attributes are present. Cultural diversity can have a significant impact on the effective functioning of virtual teams operating in a global economy. Cultural differences can result in misunderstandings, communication breakdowns, and a lack of cohesion among team members.
Virtual team members must be aware of cultural differences and be willing to adapt their communication and working styles to accommodate different cultural backgrounds. Volvo’s approach to evaluating the effectiveness of its virtual teams could serve as a useful model for other organizations to follow in evaluating their own virtual teams. Volvo's approach focuses on team members' competencies, performance, and communication skills, among other things.
It takes a holistic approach to evaluating virtual team performance, which is beneficial to both team members and the organization as a whole.
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