Answer:
A. Market, or beta, risk
Explanation:
i.e when the CFO adjusts the cost per ton of processing the cardboard, the project’s NPV will decrease.
Solution 2 :- The correct answer is (B) I.e Corporate or with in firm risk
a project's risk to the corporation as opposed to its investors
Solution 3 :- Stand alone risk
Stand alone risk is measured by the variability of the project's expected returns - diversification is totally ignored
The CFO of United Recycling Inc. was conducting a sensitivity analysis by varying the recycled cardboard's selling price. Market risk is measured by its effect on the firm's beta coefficient. Stand-alone risk evaluates the risk of an investment individually, ignoring diversification benefits.
Explanation:When United Recycling Inc.'s CFO created models, varying the selling price of recycled cardboard while holding other inputs constant, they were performing a sensitivity analysis. Sensitivity analysis helps to understand the impact of a single variable on a financial model while scenario analysis would involve changing multiple variables simultaneously. Risk analysis is indeed a crucial part of capital budgeting, as it helps to evaluate the uncertainty surrounding an investment's profitability and expected rate of return.
The measurement of risk by its effect on a firm's beta coefficient relates to market risk, also known as beta risk. Market risk is relevant in the context of a diversified portfolio, where we consider the systemic risk that cannot be diversified away. When we talk about a risk measure that ignores diversification, we typically refer to stand-alone risk, which evaluates investment risk on an individual basis without considering how the investment affects portfolio risk.
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A building acquired at the beginning of the year at a cost of $1,375,000 has an estimated residual value of $250,000 and an estimated useful life of 40 years. Determine (A) the double-declining-balance rate and (B) the double-declining-balance depreciation for the first year.
Answer:
a. 5%
b. $68,750
Explanation:
The computation is shown below:
a. The double-declining balance rate would be
= One ÷ estimated useful life
= 1 ÷ 40 years
= 0.025 or 2.5%
Now the rate is double So, 5%
b. In year 1, the original cost is $1,375,000, so the depreciation is $after applying the 5% depreciation rate is $68,750
In mathematically, it would be
= $1,375,000 × 5%
= $68,750
The double-declining-balance rate for a building with an estimated useful life of 40 years is 5%. The double-declining-balance depreciation for the first year for a building acquired for $1,375,000 would be $68,750.
Explanation:To answer your question, we need to firstly calculate the double-declining-balance rate. This is determined by dividing 1 by the estimated useful life of the asset and then doubling the result. So, for a 40-year life, the rate would be (1/40) * 2 = 0.05 or 5%.
For the double-declining-balance depreciation in the first year, you would multiply the initial cost of the asset by the double-declining-balance rate. In this case, $1,375,000 * 0.05 = $68,750 is the depreciation for the first year.
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What is the future value of $1800 invested today at 18% interest in 30 years with interest compounded quarterly?
A. $300,154.84
B. $9.15
C. $354,182.71
D. $258,067.15
E. $394,832.66
Answer:
Future value of amount will be $354182.711
So option (C) will be the correct option
Explanation:
We have given present value [tex]P=$1800[/tex]
Rate of interest r = 18 %
Time t = 30 years
As interest is paid quarterly so
Rate of interest [tex]r=\frac{18}{4}=4.5%[/tex]
And time period = 30×4 = 120
Future value is given by [tex]A=P(1+\frac{r}{100})^n=1800\times (1+\frac{4.5}{100})^{120}=1800\times 196.768=$354182.711[/tex]
So future value of amount will be $354182.711
So option (C) will be the correct option
Parke-Bernet Galleries, acting as agent for an undisclosed principal, sold a painting to Weisz. Weisz laterdiscovered that the painting was a forgery and sued Parke-Bernet for breach of contract. In defense, Parke-Bernet argued that as a general rule, agents are not liable on contracts made for principals. Is this a gooddefense? Explain.
Answer:No, this is not a good defense
Explanation:
An agent is a person acting on behalf of a principal as regards contract relationship for which the principal will be liable provided the agent adhere to.
Disclosure of principal The identity of the principal must be fully disclosed at the time of contract.
The non disclosure of the principal will make the contracting party believe he his dealing with the agent and for any breach thereon the agent will be liable.
In the above scenario the principal was not disclose and this makes Parke Bennet liable.
Highlander Technologies makes three types of smart phones: the HipI, the HipII, and the OldGeezer. Each smart phone requires some labor, in the fabrication department, in the assembly department, and in the shipping department. The smart phones are sold through a local dealer who has estimated the maximum demand for the coming quarter for the HipI, the HipII, and the OldGeezer of 300, 250, and 100 units respectively. The dealer makes profit of, $15, $24, and $18 for the HipI, the HipII, and the OldGeezer respectively. The fabrication department has a maximum of 1850 hours for the quarter. The assembly department has a maximum of 2400 hours for the quarter. The shipping department has a maximum of 1500 hours for the quarter. The HipI model requires 4 hours, 3 hours, and 3 hours for fabrication, assembly, and shipping respectively. The HipII model requires 6 hours, 5 hours, and 2 hours for fabrication, assembly, and shipping respectively. The OldGeezer requires 2 hours, 7 hours, and 4 hours for fabrication, assembly, and shipping respectively. The goal is to maximize profit with the best product mix. Work-in-progress is OK.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
TarHeel Corporation reported pretax book income of $1,026,000. During the current year, the net reserve for warranties increased by $101,300. In addition, tax depreciation exceeded book depreciation by $206,500. Finally, TarHeel subtracted a dividends received deduction of $55,200 in computing its current-year taxable income. TarHeel's accounting effective tax rate is:
a. 21%.
b. 19.87%.
c. 18.74%.
d. 1761%.
Answer:
Effective accounting tax rate = 17.61%
Explanation:
given data
Pre Tax book income = $1,026,000
Reserve for warranties = $101,300
Tax depreciation = $206,500
Deduction inform of dividends received = $55,200
to find out
accounting effective tax rate
solution
we assume here tax rate is 21 %
So Taxable income will be here as
Taxable income = [ $1,026,000 + $101,300 ] - [ $206,500 + $55,200 ]
Taxable income = $1,127,300 - $261,700
Taxable income = $865,600
Tax @21% = $865,600 × 21%
Tax = $181,776
Effective accounting tax rate will be
Effective accounting tax rate = [tex]\frac{181776}{1026000}[/tex]
Effective accounting tax rate = 17.61%
A customer tried to use a fake id during an insurance transaction and the agent had to file a Suspicious Activity Report under law. One could assume a minimum of ______ was involved in the transaction.
Answer:
$ 10,000 USD
Explanation:
Insurance companies are obliged to report to the federal government through form 8300 about transactions that exceed $ 10,000 or even transactions of a lower value that for some reason arouse the impression of suspicious activity; since criminals are normally aware of this rule and try to avoid the law as much as possible. This arrangement has been proposed by the government to control illicit activity and to comply with the anti money laundering program.
When a customer uses a fake ID during an insurance transaction, the agent has to file a Suspicious Activity Report under the law. The minimum amount involved in the transaction depends on the specifics of the case.
Explanation:When a customer tries to use a fake ID during an insurance transaction, it is considered suspicious activity. In such cases, the agent is required to file a Suspicious Activity Report under the law. The minimum amount involved in the transaction may vary, but it is generally assumed that some degree of financial fraud is involved. The specific amount cannot be determined without additional information about the transaction.
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Julie has just retired. Her company’s retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $150,000 immediately as her full retirement benefit. Under the second option, she would receive $14,000 each year for 20 years plus a lump-sum payment of $60,000 at the end of the 20-year period.Required:1. Calculate the present value for the following assuming that the money can be invested at 11%.2. If she can invest money at 11%, which option would you recommend that she accept?
Final answer:
To advise Julie on the best retirement benefit option, we calculate the present value of both options assuming an 11% return. The first option's present value is simply the lump sum of $150,000. For the second option, we calculate the present value of the annuity using the annuity formula and add it to the discounted present value of the future lump sum.
Explanation:
To determine which retirement benefit option is more favorable for Julie, we need to calculate the present value of both options, assuming an investment return of 11%. The present value of an annuity formula is used to calculate the value of a series of future payments in today's dollars, which is given by the formula: PV = P * [1 - (1 + r)^{-n}] / r, where PV is the present value, P is the payment per period, r is the interest rate per period, and n is the number of periods.
Option 1: Lump Sum Payment
The first option offers a lump sum of $150,000 immediately, so the present value of this option is simply $150,000, as no calculations are necessary for a single lump sum already in today's dollars.
Option 2: Annuity Plus Lump Sum
The second option is an annuity of $14,000 per year for 20 years and a separate lump sum of $60,000 at the end of 20 years. To find the present value of the annual payments, we use the present value of annuity formula:
Present Value of Annuity = $14,000 * [1 - (1 + 0.11)^{-20}] / 0.11
We also calculate the present value of the $60,000 lump sum to be received at the end of 20 years by discounting it back to its present value using the formula:
Present Value of Lump Sum = $60,000 / (1 + 0.11)^{20}
By adding these two present values together, we obtain the total present value for the second option.
Once the present values of both options are calculated, Julie can compare the two and choose the option with the higher present value, meaning the most beneficial option when taking into account the time value of money.
If Julie can invest money at 11%, she should choose the option that offers her the highest present value as that would represent the greater amount of money in today's dollars.
Market surveys conducted by car companies show that people who buy battery-powered cars are very concerned about pollution and its long term impact on the environment. The same surveys show that people with battery-powered cars, compared to others, are more likely to use energy-saving appliances at home. Thus, car companies emphasize the environmentalb potential buyers who are concerned about the environment. Which of the following statements best expresses the main conclusion of the above argument? 1. Ads for battery-powered cars target those who are concerned about the environment 2. More people are concerned about the environment today than in the past. 3. Primary buyers of battery-powered cars are those concerned with the environment.
Answer:
The statement that best expresses the main conclusion of the argument is:
Primary buyers of battery-powered cars are those concerned with the environment.
Explanation:
From the surveys, we can see that the people that buy battery-powered cars are concerned about the long-term effect of pollution on the environment.
We can also see that these people are more likely to use energy-saving appliances at home and people that use other cars.
These statements show that the people more likely to buy battery-powered cars are concerned with the environment.
The Product Owner of a team was asked for a forecast for the completion of a product release. There were 140 story points worth of work remaining in the project. The team's average velocity in the past 3 Sprints has been 65, though the best Sprint among the last three had a velocity of 85 story points. What should the Product Owner say?
Answer:
The product owner should say:
The team will need about 3 Sprints more to complete the product release.
Explanation:
As given the team's average velocity in the past 3 Sprints has been 65 points and best sprint among three was 85 points. There were 140 story points worth of work in the project.
So, if the team keep such a performance then,
three sprints can get = 3 x 65 points
Three sprints can get = 195 points
So, the team will need about 3 sprints more to complete the product release.
In which of the following situations would each of the members be responsible for producing an equal share of the total amount of output sold by the cartel engaged in joint profit maximization?
A) When the amount of revenue generated by each member of the cartel is the same.
B) When there are no economies of scale in production.
C) When each member of the cartel is using the same scale of production.
D) When marginal costs of production are the same for each of the members of the cartel.
Answer:
In which of the following situations would each of the members be responsible for producing an equal share of the total amount of output sold by the cartel engaged in joint profit maximization?
When marginal costs of production are the same for each of the members of the cartel.
Explanation:
D
On June 30 the general ledger of Beverly Hills Clothiers, a clothing store, showed a balance of $63,895 in the Purchases account, a balance of $2,975 in the Freight In account, and a balance of $4,280 in the Purchases Returns and Allowances account. What was the delivered cost of the purchases made during June?
Answer:
$62,590
Explanation:
The computation of the delivered cost of the purchases made is shown below:
= Balance in purchase account + freight in charges - purchase return and allowance
= $63,895 + $2,975 - $4,280
= $62,590
We simply added the freight in charges and deduct the purchase return and allowances to the purchase balance so that the correct amount can come
Final answer:
The delivered cost of the purchases made by Beverly Hills Clothiers during June is $62,590, calculated by adding purchases of $63,895 to freight costs of $2,975 and subtracting returns and allowances of $4,280.
Explanation:
The student asked about calculating the delivered cost of purchases made during June by Beverly Hills Clothiers. To find this value, we utilize the information provided from the general ledger: the balance in the Purchases account, the Freight In account, and the Purchases Returns and Allowances account.
To calculate the delivered cost of the purchases, we must add the cost of purchases to the cost of freight and subtract any returns and allowances. The formula for this calculation is as follows:
Delivered Cost of Purchases = Purchases + Freight In - Purchases Returns and Allowances
Using the given balances:
Purchases: $63,895
Freight In: $2,975
Purchases Returns and Allowances: $4,280
Delivered Cost = $63,895 + $2,975 - $4,280 = $62,590
Therefore, the delivered cost of the purchases made by Beverly Hills Clothiers for June is $62,590.
The free cash flow to the firm is reported as $205 million. The interest expense to the firm is $22 million. If the tax rate is 35% and the net debt of the firm increased by $25, what is the market value of the firm if the FCFE grows at 2% and the cost of equity is 11%?a. $2,168 billionb. $2,397 billionc. $2,565 billiond. $2,998 billion
Answer:
The correct answer is $2,444.6 billion
Explanation:
FCFE= FCF+ Increase in debt- Interest (1-t)
= $205+$25-$22( 1-0.35)
=$215.7
Market Value = [(215.7)1.02)]/ [11%-2%]
=$2,444.6
Assuming a single period growth rate of 2%,
the forecasted FCFE =$215.7(1+0.02)
=$220.01 billion
Although this is not available in the options provided ,$220.01 billion is the correct answer.
Final answer:
The market value of the firm is calculated using the FCFE model, considering the given FCFF, net debt issued, interest expenses after taxes, cost of equity, and growth rate. The resulting market value of the firm is $2,397 million.
Explanation:
To calculate the market value of the firm using the Free Cash Flow to Equity (FCFE) model, we first need to find the FCFE. The FCFE can be calculated by taking the Free Cash Flow to the Firm (FCFF), adding any net debt issued, and then subtracting interest expenses after taxes. We are given that the FCFF is $205 million, net debt issued is $25 million, and the interest expense is $22 million. Taking the tax rate of 35% into account, the after-tax interest expense is $22 million ( 1 - 0.35) = $14.3 million.
The FCFE is therefore $205 million + $25 million - $14.3 million = $215.7 million. Now, to find the market value of equity, we would use the Gordon Growth Model, also known as the perpetuity formula: Market Value of Equity = FCFE ( Cost of Equity - Growth Rate). Plugging in our numbers: Market Value of Equity = $215.7 million ( 0.11 - 0.02) = $2,397 million.
Therefore, the market value of the firm is $2,397 million, which corresponds to option b.
During the recession of 2007-2009, the U.S. economy was experiencing a decrease in home prices and consumer wealth, a credit crisis in the financial markets, and declining consumer and business confidence. a. What components of aggregate demand were affected and what was the impact on real output? b. What were the policy options?
Answer:Answer The business sector (b)The policy option is the fiscal policy
Explanation:
Recession can be defined as a state of economic declines in a country which in turn lead to decline in the GDP of a country as well as increase in the rate of unemployment in the country. It is a period of slow business activities in the country which can last for period of six months or a year depending on the quick response of the handlers of the economy to quickly put the situation under control. It is a period of slow growth in the economy. In a period of recession, the business sector experience lack of credit facility which arise due to the inability of the banking sector of the economy to lend to the business sector.. during these period there is a decrease in consumer spending, in the sense that, the demand for goods and services by the households will reduced drastically as a result of the reduction in the purchasing power of the people.
However, with a view to bring the economy under control, the policy option to be adopted is the fiscal policy in which the government can increase their spending on the economy, The fiscal policy also includes the reduction of the income tax as a way of increasing the purchasing power of the people. In addition, The banking sector will also be encouraged to start lending to the business sector as a way of boosting the economy and bring back the economy to the path of growth.
Jamie is saving for a trip to Europe. She has an existing savings account that earns 2 percent annual interest and has a current balance of $4,500. Jamie doesn’t want to use her current savings for vacation, so she decides to borrow the $1,500 she needs for travel expenses. She will repay the loan in exactly one year. The annual interest rate is 5 percent.
a. If Jamie were to withdraw the $1,500 from her savings account to finance the trip, how much interest would she forgo? $_________b. If Jamie borrows the $1,500 how much will she pay in interest? $__________
Answer:
forgo interest = $30
interest = $75
Explanation:
given data
annual interest = 2%
current balance = $4,500
borrow = $1,500
annual interest rate = 5 percent
to find out
how much interest would she forgo and how much will she pay in interest
solution
first we get here Forgo interest that is here
forgo interest = withdrawal amount × interest rate ..........................1
put here value we get
forgo interest = $1500 × 2%
forgo interest = $30
and
now w get here pay in interest that is
interest = amount borrow × interest rate ..........................2
put here value we get
interest = $1500 × 5%
interest = $75
Jamie would forgo $30 in interest earnings if she were to use her savings for her trip. Instead, if she borrows $1,500 at a 5% interest rate, she would end up paying $75 in interest on the loan.
Explanation:a. If Jamie were to withdraw the $1,500 from her savings account to finance the trip, her savings account balance would decrease by that amount and the interest earned would also decrease. To calculate how much interest she would forgo, you use the formula of the principal amount times the interest rate. So, $1,500 * 0.02 (2% as a decimal) = $30. Therefore, Jamie would forgo $30 in interest earnings.
b. If Jamie borrows the $1,500, she will have to pay interest on this amount. The annual interest rate on the loan is 5%. So, $1,500 * 0.05 (5% as a decimal) = $75. Thus, Jamie will pay $75 in interest on the loan.
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The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: Rails Division Locomotive Division Corporate Total Cost of goods sold $ 47,200 $30,720 Direct operating expenses 27,200 20,040 Sales 108,000 78,000 Interest expense $ 2,040 General overhead 18,160 Income tax 4,700
The income from operations for the Rails Division is
a.$33,600
b.$8,700
c.$21,150
d.$60,800
Answer:
a.$33,600
Explanation:
The computation of the income from operations is shown below:
= Sales - costs of goods sold - direct operating expense
= $108,000 - $47,200 - $27,200
= $33,600
We simply deduct the direct operating expense and the costs of goods sold from the sales revenue so that the correct amount can come
All other information which is given is not relevant. Hence, ignored it
Carmen is giving a persuasive presentation at her university tomorrow. During the speech design process, Carmen asks herself why her audience is showing up, how the topic could be viewed, and what other speakers will be talking about. These questions are all a part of her
a. audience analysis.
b. relational questions.
c. physical questions.
d. context analysis.
Answer:
Letter a is correct. Audience analysis.
Explanation:
Audience analysis is the preparation stage for a presentation, and is relevant for audience evaluation and definition so that communication is appropriately addressed to them.
Audience definition is important for the direction of the presentation, so you can create an engaging presentation that will create the intended understanding of the presenter and positively impact the audience. For this it is necessary to know some characteristics of the public, such as age group, level of knowledge of the subject, interest, culture and others, in order to trace the ideal profile and the direction to occur effectively.
Durable goods such as _____________, furniture, and appliances will fluctuate more widely in sales over a business cycle than nondurables such as food and medicine which are necessities.A drinking waterB tooth pasteC gasolineD automobiles
Answer:
D automobiles
Explanation:
In economic theory, a durable good is defined as that product (or service) that once acquired can be used a large number of times over time. Durable goods are those reusable goods and, although they may end up being spent, they are not consumed quickly as non-durable goods. It is argued that durable goods are those that provide the consumer with a flow of service for a relatively long time, such as automobiles, furniture, homes, etc. It is not necessary that a durable good be luxurious, for example an armchair is a durable good. On the other hand, non-durable goods are depleted or consumed completely in the act of satisfying a need, such as food, water or electricity. It should be noted that one of the fundamental characteristics of durable goods is that they are bought today, while the flow of their services extends over time and that the benefits they yield in a period are proportional to the number of units that are removed from the stock, characteristics that resemble it with the investment in productive capital and is defined as a good that is consumed immediately, with a use or a life time of less than 3 years.
Final answer:
The correct answer is D. automobiles. Durable goods such as automobiles fluctuate more in sales compared to nondurables due to changes in economic conditions, while nondurable goods like food and medicine are necessities with more stable sales patterns.
Explanation:
Durable goods such as automobiles, furniture, and appliances will fluctuate more widely in sales over a business cycle than nondurables such as food and medicine which are necessities. In this context, the correct answer is D. automobiles.
When discussing consumers, goods & services, we refer to economic products that are transferable and useful to individuals or entities. As consumers, we purchase these products to fulfill our needs. Consumer goods are intended for individual use and are classified into durable goods, like automobiles, and nondurable goods, such as food products and gasoline. Durable goods tend to experience larger fluctuations in sales during the business cycle, affected significantly by changes in economic conditions like disposable income and consumer confidence.
You have a bond that entitles you to a one-time payment of $10,000 one year from now. The interest rate is 10 percent per year. How much is the bond worth today?
Answer:
$9,090.91
Explanation:
The computation of today price is shown below:
Present value = One time payment × (1 + interest rate)^ number of years
= $10,000 × (1 + 0.10)^1
= $10,000 × 0.909090
= $9,090.91
Simply we determine the discount factor and then multiplied it with the one time payment so that estimated value can come
On a reset date, floating-rate notes:
Multiple Choice:
O experience very volatile price changes.
O market price will usually gravitate toward par.
O market price will usually gravitate toward par, unless the borrowers’ credit rating has declined.
O none of the options
Answer:
The correct answer is letter "B" and "C": market price will usually gravitate toward par; market price will usually gravitate toward par, unless the borrowers’ credit rating has declined.
Explanation:
A floating-rate note is a debt instrument with an interest rate that floats or varies. They are also called floaters. Financial institutions and governments typically issue floaters. Floaters can protect investors because they gain more when interest rates rise, unlike fixed-rate bonds which lose value when rates rise. Then, it is said that the market price will gravitate towards par unless the borrower's credit rating declines.
Use the following information to determine the ending cash balance to be reported on the month ended June 30 cash budget. a. Beginning cash balance on June 1, $94,000. b. Cash receipts from sales, $413,000. c. Budgeted cash disbursements for purchases, $268,000. d. Budgeted cash disbursements for salaries, $95,000. e. Other budgeted cash expenses, $57,000. f. Cash repayment of bank loan, $32,000. g. Budgeted depreciation expense, $34,000.
To calculate the ending cash balance, subtract the total cash disbursements from the sum of the beginning balance and cash receipts. Depreciation expense is ignored as it is not a cash item. The ending cash balance for June 30 is $55,000.
To determine the ending cash balance to be reported on the month-ended June 30 cash budget, we start with the beginning cash balance and adjust for cash inflows and outflows throughout the month. Here's a step-by-step calculation:
Beginning cash balance: $94,000Plus cash receipts from sales: +$413,000Less budgeted cash disbursements for purchases: -$268,000Less budgeted cash disbursements for salaries: -$95,000Less other budgeted cash expenses: -$57,000Less cash repayment of bank loan: -$32,000Ignore budgeted depreciation expense since it is a non-cash item.Now, we calculate the ending balance:
End Balance = Begin Balance + Cash Inflows - Cash Outflows
End Balance = $94,000 + $413,000 - ($268,000 + $95,000 + $57,000 + $32,000)
End Balance = $94,000 + $413,000 - $452,000
End Balance = $507,000 - $452,000
End Balance = $55,000
The ending cash balance to be reported on the June 30 cash budget is $55,000.
In a very strong economy, where the demand for qualified job applicants exceeds the supply, the environmental characteristic of ____ is likely to be particularly salient for many companies.a.environmental complexityb.environmental changec.resource scarcity
d.environmental uncertaintye.environmental risk
Answer: (C) Resource scarcity
Explanation:
The resource scarcity is one of the basic economical problem that cause decreasing in the various types of natural resources and various types of basic requirements.
According to the question, the resource scarcity is one of the environmental characteristics and it occur when the demand exceeds as compared to the basic supply and specific requirement. When the consumption are get increased to the basic usage of the requirement.
Therefore, Option (C) is correct.
Blair Madison Co. issues $1.9 million of new stock and pays $281,000 in cash dividends during the year. In addition, the company took advantage of falling interest rates to borrow $1.59 million in a new bond issue and paid off existing bonds with a face value of $2.45 million. The company bought 509 of another company's $1,090 bonds at a $109,000 premium. The net cash flow provided by financing activities is:
Answer:
$759,000
Explanation:
Given that,
New stock issues = $1.9 million
Dividend paid in cash during the year = $281,000
The net cash flow provided by financing activities is:
= Million new stock issue increase in cash - Cash dividend decrease in cash + Increase in cash - Decrease in cash
= $1,900,000 - $281,000 + $1,590,000 - $2,450,000
= $759,000
Structural unemployment is caused bya. short-term changes in the economy.b. temporary layoffs in industries such as construction.c. hifts in the economy that make certain job skills obsolete.d. the impact of the business cycle on job opportunities.2. Which of the following statements is true?a. According to supply-side fiscal policy, lower tax rates would shift the aggregate demand curve to the right, expanding the economy and creating some inflation.b. To combat inflation, Keynesians recommend lower taxes and greater government spending.c. The presence of the automatic stabilizers tends to destabilize the economy.d. Above the optimal tax rate, a reduction in tax rates along the downward-sloping portion of the Laffer curve would increase tax revenues.
Answer:
Consider the following explanation
Explanation:
1. Option C.
Structural unemployment is a type of unemployment which occurs naturally when the economy shifts in time.
This forces certain job skills to become obsolete, due to which mismatch of skills and the jobs available in the economy.
Many workers are also laid off as their jobs no longer match their current skills.
2. Option D.
A laffer curve is a curve which shows a relationship between the taxes imposed within an economy and the tax revenues collected from the imposed taxes.
Above the optimal tax rate, a reduction in tax rates along the downward sloping portion of the laffer curve would increase the tax revenue's.
If a local bank decides to convert some of its U.S. Treasury securities into cash, which it will hold in its vault, reserves will ________, liabilities will ________, and owner’s equity will ________. Choose one:
A. decrease; stay the same; decrease
B. increase; stay the same; stay the same
C. stay the same; increase; decrease
D. decrease; decrease; decrease
E. increase; stay the same; decrease
Answer:
B. increase; stay the same; stay the same
Explanation:
Bank reserves are compulsory deposits by the banks that they are required to not loan out( they are kept in the vault). Therefore, when a local bank decides to convert some of its U.S. Treasury securities into cash, this is an increase in assets. Since the cash is held in its vault, reserves will increase, liabilities will not be affected and owner’s equity will also not be affected. Therefore, the correct answer is B.
Exercise 11-2 Blossom Company had these transactions during the current period. June 12 Issued 78,000 shares of $1 par value common stock for cash of $292,500. July 11 Issued 2,500 shares of $100 par value preferred stock for cash at $104 per share. Nov. 28 Purchased 1,000 shares of treasury stock for $7,100.Prepare the journal entries for the Blossom Company transactions.
Answer:
Explanation:
The journal entries are shown below:
1. Cash A/c Dr $292,500
To Common Stock $78,000 (78,000 × $1)
To Additional Paid-in Capital in excess of par - Common Stock $214,500
(Being the issue of the stock is recorded and the balance remaining is credited to the additional paid-in capital account)
2. Cash A/c Dr $260,000 (2,500 shares × $104)
To Preferred stock $250,000 (2,500 shares × $100)
To Additional Paid-in Capital in excess of par - Preferred Stock $10,000
(Being the issue of the stock is recorded and the balance remaining is credited to the additional paid-in capital account)
3. Treasury stock A/c Dr $7,100
To Cash A/c $7,100
(Being the treasury stock is purchased for cash)
Which of the following is NOT an assumption that economists make when developing a production possibilities frontier (PPF)?
a. We live in a world with only two goods.
b. There are no increases in technology
c. There is no change in available resources.
d. Society will always be producing somewhere on the PPF.
e. There are no decreases in technology.
Answer:
Option D
Explanation:
Because it is not one of the key assumption underlying ppf
The return on a 10 percent coupon bond that initially sells for $1,000 and sells for $900 one year later is?
The section of the Americans with Disabilities Act that pertains primarily to brokers selling real estate to the public is:
Answer:The Fair Housing Act
Explanation:
The Fair Housing Act governs the actions of real estate agents, whether agents agree or not. Some agents openly try to defy the Fair Housing Act, either because they don't understand it or they don't agree with it, neither of which is an excuse. To understand a real estate agent's scope of duties and what an agent can and cannot do for you, look first to federal and state regulations.
Real Estate Regulators
Here are a few of the entities that govern or affect a real estate agent's actions:
Federal Fair Housing Act
State Real Estate Laws
National Association of REALTORS Code of Ethics
Employing Broker's Guidelines
Lawsuits
The Fair Housing Act is easy for agents to overlook, yet it is essential to an agent's practice. The Fair Housing Act was created and made law to prevent discrimination. The Civil Rights Act of 1968 contained the Fair Housing Act legislation, which was later modified by the Fair Housing Amendments Act of 1988. There are seven classes protected by the Federal Fair Housing Act. They are:
Race
Color
Religion
National Origin
Sex
Handicap
Familial Status
"The Carla Vista Boat Company's bank statement for the month of November showed a balance per bank of $8,500. The company's Cash account in the general ledger had a balance of $5,536 at November 30. Other information is as follows:
(1) Cash receipts for November 30 recorded on the company's books were $6,480 but this amount does not appear on the bank statement.
(2) The bank statement shows a debit memorandum for $50 for check printing charges.
(3) Check No. 119 payable to Sunland Company was recorded in the cash payments journal and cleared the bank for $368. A review of the accounts payable subsidiary ledger shows a $18 credit balance in the account of Sunland Company and that the payment to them should have been for $386.
(4) The total amount of checks still outstanding at November 30 amounted to $6,260.
(5) Check No. 138 was correctly written and paid by the bank for $506. The cash payment journal reflects an entry for Check No. 138 as a debit to Accounts Payable and a credit to Cash in Bank for $560.
(6) The bank returned an NSF check from a customer for $700. (7) The bank included a credit memorandum for $3,880 which represents a collection of a customer's note by the bank for the company; the principal amount of the note was $3,748 and interest was $132. Interest has not been accrued. Prepare a bank reconciliation for the Carla Vista Boat Company at November 30.
Prepare a bank reconciliation for the Carla Vista Boat Company at November 30 AND Prepare any adjusting entries necessary as a result of the bank reconciliation
Answer:
Explanation:
The Carla Boat Company
Bank Reconciliation Statement
as at 30th November
Balance as per bank balance $8,500
Add: Uncredited payment $6,480
Add: Bank Charges $50
Add: Returned Chq $700
Less: Outstanding Chqs ($6,260)
Less: Note received ($3,880)
Less: transposition error on payment ($54)
Balance as per cash book $5,536
Journal entries for transactions:
1. Debit : Bank Charges Expenses $50
Credit: Bank Account $50
Being bank charges expenses for the month of Nov
2. Debit: Cash in bank $54
Credit: Account Payable $54
Being transposition error on Check No 138
3. Debit: Account payable $700
Credit: Bank Account $700
Being NSF check returned
4. Debit: Bank Account $3,880
Credit: Notes Receivable $3,748
Credit: Interest on investment $132
Being note receivable and accrued int
To prepare a bank reconciliation for the Carla Vista Boat Company at November 30, start with the balance per bank, consider items not yet recorded in the bank statement and items recorded on the company's books but not yet cleared the bank. Adjust the balance per bank based on these items and compare it to the Cash account balance in the general ledger. Make adjusting entries to reflect the correct balances.
Explanation:To prepare a bank reconciliation for the Carla Vista Boat Company at November 30, we need to compare the company's Cash account balance in the general ledger with the balance per the bank statement.
Starting with the balance per bank, which is $8,500, we need to take into consideration the items that are not yet recorded in the bank statement. These items include the cash receipts for November 30 ($6,480) that were not yet recorded. So, we add $6,480 to the balance per bank, giving us a corrected balance of $14,980.
We also need to consider the items that have been recorded on the company's books but have not yet cleared the bank. This includes the total amount of checks still outstanding ($6,260). So, we subtract $6,260 from the corrected balance, resulting in a adjusted balance per bank of $8,720.
Now, let's compare this adjusted balance per bank with the balance in the company's Cash account in the general ledger. The Cash account balance is $5,536.
To reconcile the difference, we need to consider the items that have been recorded on the company's books but have not yet cleared the bank. One of these items is Check No. 138, which was recorded as $560 in the company's Cash account but cleared the bank for $506. So, we subtract the difference of $54 from the Cash account balance, giving us a reconciled balance of $5,482.
We also need to consider the payment to Sunland Company, which was recorded for $368 but should have been $386 according to the accounts payable subsidiary ledger. So, we subtract the difference of $18 from the Cash account balance, resulting in a reconciled balance of $5,464.
Finally, we need to consider the debit memorandum for $50 for check printing charges. This charge is not yet recorded in the company's Cash account, so we subtract $50 from the reconciled balance, giving us a final adjusted balance of $5,414.
In summary, the bank reconciliation for the Carla Vista Boat Company at November 30 shows an adjusted balance per bank of $5,414, which is the reconciled balance between the balance per bank and the Cash account balance in the general ledger.
As for the adjusting entries necessary as a result of the bank reconciliation, we need to record the cash receipts for November 30 ($6,480) and the check printing charges ($50) in the Cash account. These will increase the Cash account balance by $6,530. We also need to adjust the payment to Sunland Company to the correct amount of $386, increasing the Cash account balance by $18. Therefore, the total adjustment to the Cash account is $6,548.
Stewart Parnell, the former CEO of the now-bankrupt Peanut Corporation of America, was charged with falsifying food safety reports required by the FDA. The reports certified that his peanut base product was salmonella free. In some cases, the tests were not yet complete when the certification was done and in other cases the tests indicated the presence of salmonella. Part of the case came from federal agents’ examination of e-mails Mr. Parnell sent to his managers and employees. Which of the following is correct about the agents’ access to those e-mails?
a. Because employees e-mails are not private, the agents did not need a warrant.
b. both b and c
c. The agents would have been required to obtain a warrant.
d. Mr. Parnell could successfully object to the use of the e-mails because of his Fifth Amendment rights.
Answer: c. The agents would have been required to obtain a warrant
Explanation: The decision determined that a person’s cell phone contains more information than a person’s house does. A person therefore has a "reasonable expectation of privacy" for the contents in their phone and police should not be able to search an arrestees cell phone without voluntary consent or a valid search warrant. Police are required to have a warrant to search a person’s cell phone even after a valid arrest... So it is very feasible that the agents to search the employees phone would have been asked to get a warranty which they possibly did to have been able to assess such information.
Federal agents would have needed a warrant to access Stewart Parnell's e-mails (option c), because the Fourth Amendment protects individuals' privacy and typically requires a warrant based on probable cause.
The correct answer to the question about Stewart Parnell, the former CEO of the Peanut Corporation of America, and federal agents' access to his e-mails is option c. The agents would have been required to obtain a warrant before accessing the e-mails.
This is because, under the Fourth Amendment, individuals have a right to privacy, and accessing private communications typically requires law enforcement to obtain a warrant based on probable cause.
Option a is incorrect because, although there may be circumstances where employee e-mails are not considered private, generally, a warrant is still needed to access electronic communications. Option d is also incorrect because Mr. Parnell's Fifth Amendment rights, which protect against self-incrimination, do not directly protect the content of his e-mails from being used as evidence, especially if there was a warrant to collect them.