Corporations with control both within and across industries are formed by a series of mergers and acquisitions across industries. These corporations are referred to as __________; they combine businesses in different commercial areas, all of which are owned by one holding company.

Answers

Answer 1

Answer:

conglomerate                

Explanation:

In simple words, A conglomerate refers to the multi-industry corporation, which is a mixture of many enterprises operating within one organizational group in completely different sectors, which can include a holding company and several branches.

The conglomerates are always global and massive. The predominant conglomerates consolidate financial risk through investing in a variety of different industries, although other conglomerates opt to engage in a single sector, like those in mines.        


Related Questions

At the end of May, the following adjustment data were assembled:A. Insurance expired during May is $275B. Supplies on hand on May 31 are $715C. Depreciation of office equipment for May is $330D. Accrued receptionist salary on May 31 is $325E. Rent expired during May is $1,600F. Unearned fees on May 31 are $3,210Required:Journalize the adjusting entries.

Answers

Answer and Explanation:

The journal entries are shown below:

a.  Insurance expense $275

             To Prepaid insurance $275

(Being the insurance expense is recorded)

b.  Supplies expense $785 ($1,500 - $715)

            To Supplies $785

(Being the supplies expense is recorded)

We assume the balance of supplies before adjustment is $1,500

c. Depreciation - office equipment $330

          To Accumulated depreciation $330

(Being the depreciation expense is recorded)

d. Salary Dr $325

        To Accrued salary $325

(Being the accrued salary is recorded)

e.  Rent expense $1,600

            To Prepaid rent $1,600

(Being the rent expense is recorded)

f. Unearned fees $790

           To Fees revenue $790

(Being the unearned fees is recorded)

We assume the balance of unearned fees before adjustment is $4,000

So, $790 is come from

= $4,000 - $3,210

= $790

Final answer:

Adjusting entries are recorded to account for income and expenditures in the correct accounting period. The entries include adjustments for insurance, supplies, depreciation, salaries, rent, and unearned fees, according to the provided end-of-May adjustment data.

Explanation:

Adjusting entries are made in the journal at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred. The goal is to update the accounts for any earned revenues and incurred expenses that have not been recorded during the accounting period. Here are the adjusting entries based on the provided adjustment data:

Insurance Expense: Debit Insurance Expense $275, Credit Prepaid Insurance $275Supplies: Debit Supplies Expense for the used amount, Credit Supplies for the same amount to reflect the $715 on handDepreciation: Debit Depreciation Expense $330, Credit Accumulated Depreciation – Office Equipment $330Salaries Expense: Debit Salaries Expense $325, Credit Salaries Payable $325Rent Expense: Debit Rent Expense $1,600, Credit Prepaid Rent $1,600Unearned Fees: Debit Unearned Fees $3,210, Credit Fees Earned $3,210

These adjusting entries ensure that the company's financial statements reflect the true financial position and results of operations for May.

Learn more about Adjusting Entries here:

https://brainly.com/question/28867174

#SPJ3

The April 30 bank statement for Trimble Corporation shows an ending balance of $40,262. The unadjusted cash account balance was $33,750. The accountant for Trimble gathered the following information: There was a deposit in transit for $5,356. The bank statement reports a service charge of $174. A credit memo included in the bank statement shows interest earned of $815. Outstanding checks totaled $13,797. The bank statement included a $2,570 NSF check deposited in April. What is the true cash balance as of April 30?

Answers

Answer:

$36,961

Explanation:

The bank reconciliation is one done between the balance per the books and balance per the bank statement. This is usually as a result of transactions known as reconciling items. These are items that have either been recognized in books but yet to be recorded by the bank or vice versa, transactions recorded wrongly by one of the parties etc.

To know the true cash balance, we must first determine what transactions must be adjusted in the books; these are

service charge of $174 - this will be deducted from the book balancecredit memo included in the bank statement shows interest earned of $815 - this will be added to the book balancea $2,570 NSF check deposited in April - This will be added back to the book balance

Hence, the  true cash balance as of April 30

= $33,750 - $174 + $815 + $2570

= $36,961

Javonte Co. set standards of 2 hours of direct labor per unit of product and $15.80 per hour for the labor rate. During October, the company uses 12,100 hours of direct labor at a $193,600 total cost to produce 6,400 units of product. In November, the company uses 16,100 hours of direct labor at a $258,405 total cost to produce 6,800 units of product. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate (1) Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor cost variance for each of these two months. Classify each variance as favorable or unfavorable. (2) Javonte investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company investigate further?

Answers

Answer:

October

direct labor rate variance =$2,420 unfavorable

direct labor efficiency variance  =$11,060 favorable

direct labor cost variance  = $ 8,640 favorable

Investigate : direct labor efficiency variance

November

direct labor rate variance = $4,025 unfavorable

direct labor efficiency variance =$ 39,500 favorable

direct labor cost variance  = $35,475 favorable

Investigate : direct labor efficiency variance

Explanation:

October

direct labor rate variance = (Aq × Ap) -  (Aq × Sp)

                                          = (12,100×$16) - (12,100×$15.80)

                                          =$2,420 unfavorable

direct labor efficiency variance = (Aq × Sp) - (Sq × Sp)

                                                    =(12,100 × $15.80) - (6,400×2 ×$15.80)

                                                    =$11,060 favorable

direct labor cost variance = direct labor rate variance + direct labor efficiency variance  

                                           = $2,420 (A) + $11,060 (F)

                                           = $ 8,640 favorable

November

direct labor rate variance = (Aq × Ap) -  (Aq × Sp)

                                          = (16,100×$16.05) - (16,100×$15.80)

                                          = $4,025 unfavorable

direct labor efficiency variance = (Aq × Sp) - (Sq × Sp)

                                                    =(16,100 × $15.80) - (6,800×2 ×$15.80)

                                                    =$ 39,500 favorable

direct labor cost variance = direct labor rate variance + direct labor efficiency variance

                                          = $4,025 (A) + $ 39,500 (F)

                                           = $35,475 favorable

8. Fung Manufacturing, Inc. (FMI), currently has 275000 shares of stock outstanding that sell for $75 per share. Assuming no market imperfections or tax effects exist, what will the share price be after: a. RMO has a two-for-five reverse stock split? b. RMO has a 6 percent stock dividend? c. RMO has a 18 percent stock dividend? d. RMO has a nine—for-two stock split? e. Redo parts a to d and determine the new number of shares.

Answers

Estate Cambodia’s a los 5

Final answer:

After various stock actions, FMI's share prices adjust to maintain the same total market value. A reverse stock split increases the price, while a stock dividend or a regular stock split decreases the price.

Explanation:

Fung Manufacturing, Inc. (FMI) starts with 275,000 shares worth $75 each. The share price adjustment after various stock actions are as follows:

Two-for-five reverse stock split: The number of shares will reduce to 2/5 of the original. New price = (275,000 * 2/5) shares = 110,000 shares; total market value remains the same, so the new share price = 275,000 * $75 / 110,000 = $187.50.6 percent stock dividend: The number of shares increases by 6%, but the market cap remains the same, so the new share price will decrease to factor the increase in shares. New shares = 275,000 * 1.06 = 291,500; new share price = (275,000 * $75) / 291,500 = $70.50.18 percent stock dividend: Similar to the 6% dividend, shares increase by 18%. New shares = 275,000 * 1.18 = 324,500; new share price = market cap / new number of shares = $20,625,000 / 324,500 = $63.55.Nine-for-two stock split: The number of shares becomes 9/2 times the original. New shares = 275,000 * (9/2) = 1,237,500; new share price = market cap / new number of shares = $20,625,000 / 1,237,500 = $16.67.

The concept of capital gains is relevant as it represents the increase in value of stock between purchase and sale, impacting investor returns alongside dividends.

"Northern Region unit sales 25,200 37,200 Southern Region unit sales 27,200 28,600 Total 52,400 65,800 The finished goods inventory estimated for March 1, for the Bath and Gym scale models is 1,800 and 2,300 units, respectively. The desired finished goods inventory for March 31 for the Bath and Gym scale models is 1,300 and 2,500 units, respectively. Prepare a production budget for the Bath and Gym scales for the month ended March 31. For those boxes in which you must enter subtracted or negative numbers use a minus sign."

Answers

Answer:

The budgeted production for bath and Gym is 51900 and 66000 units

Explanation:

Production Budget

                                       

Particulars                     Bath       Gym  

Unit Sales          

Northern Region          25200     37200    

Southern Region            27200     28600    

 Total Sales                 52,400        65,800

Add Desired FG Inv     1300             2500

Less Beg Inv                 1800            2300      

Production Budget       51900           66000

The production budget is calculated by adding the desired ending inventory to the sales and subtracting the beginning inventory from it.

Production= Sales + Desired Ending Inventory - Beginning Inventory

hown here are annual financial data at December 31, 2017, taken from two different companies. Music World Retail Wave-Board Manufacturing Beginning inventory Merchandise $ 200,000 Finished goods $ 500,000 Cost of purchases 300,000 Cost of goods manufactured 875,000 Ending inventory Merchandise 175,000 Finished goods 225,000 Required: 1. Prepare the cost of goods sold section of the income statement at December 31, 2017, for each company in Merchandising Business and Manufacturing Business.

Answers

Answer and Explanation:

As per the data given in the question,

a)

                                      Music World Retail

                                 Partial Income Statement

                              For year ended Dec-31,2017

Cost of goods sold :

Beginning merchandise inventory $200,000

Add: Cost of purchase $300,000

Goods available for sale $500,000

Less: Ending merchandise inventory $175,000

Cost of goods sold $325,000

b)

                              Wave Board Manufacturing

                               Partial Income Statement

                           For year ended Dec-31,2017

Cost of goods sold :

Beginning finished goods inventory $500,000

Add: Cost of goods manufacture $875,000

Goods available for sale $1,375,000

Less: Ending finished inventory $$225,000

Cost of goods sold $1,150,000

We simply applied the above format

Cooper Industries wants to replace two small delivery trucks with one larger delivery truck. The old trucks are valued at $13,000 each. The new truck will cost $52,000. If Cooper’s controllable margin is $97,000 and their operating assets were valued at $580,000 before they bought the new truck, what will their new ROI be?
A: 17.5%
B: 16.0%
C: 15.3%
D: 16.7%

Answers

Final answer:

The new ROI after Cooper Industries replaces two old trucks with a new one, considering their controllable margin and altered operating assets, is found to be approximately 16.0%.

Explanation:

First, let's estimate the change in operating assets. Cooper Industries had old trucks valued at $13,000 each. They had two of these old trucks, so the total is $26,000. They've replaced these with a new truck costing $52,000. The net change is $52,000 - $26,000 = $26,000 increase in operating assets.

So, their total operating assets after purchasing the new truck becomes $580,000 + $26,000 = $606,000.

Return on Investment (ROI) is calculated as (Controllable Margin / Operating Assets) * 100. Therefore, the new ROI is ($97,000 / $606,000) * 100 = 16.01%, which rounds to 16.0% (Option B).

Learn more about Return on Investment (ROI) here:

https://brainly.com/question/11913993

#SPJ12

On March 1, 2018, E Corp. issued $1,400,000 of 8% nonconvertible bonds at 101, due on February 28, 2028. Each $1,000 bond was issued with 50 detachable stock warrants, each of which entitled the holder to purchase, for $65, one share of Evan's $45 par common stock. On March 1, 2018, the market price of each warrant was $3. By what amount should the bond issue proceeds increase shareholders' equity?

Answers

Answer:

$210,000

Explanation:

No market value was been given for the bonds.

Therefore the amount attributable to the warrants (shareholders' equity) =

Market price of each warrant was $3 ×50 detachable stock warrants per bond

=$150

Issued $1,400,000/$1,000 bond

=$1,400

Hence:

$150 × 1,400 bonds

= $210,000.

Therefore the amount that the bond should issue if proceeds increase shareholders' equity is $210,000

Assume the perpetual inventory method is used. 1) The company purchased $13,800 of merchandise on account under terms 2/10, n/30. 2) The company returned $3,300 of merchandise to the supplier before payment was made. 3) The liability was paid within the discount period. 4) All of the merchandise purchased was sold for $21,600 cash. What effect will the return of merchandise to the supplier have on the accounting equation?

Answers

Answer:

Assets and liabilities are reduced by $3,300.

Explanation:

The effect that the return of merchandise to the supplier have on the accounting equation is that Assets and liabilities are reduced by $3,300 because the purchase return will decrease assets or reduced the assets which is the merchandise inventory and decrease liabilities or reduced the liabilities which is accounts payable by $3,300 which is said to be the full invoiced amount of the merchandise returned.

Final answer:

The return of merchandise to the supplier impacts the accounting equation by reducing both assets and liabilities of the company. The assets decrease due to the reduction in inventory and cash, and the liabilities decrease because the accounts payable have been settled.

Explanation:

When the company returned merchandise to the supplier for the amount of $3,300, it impacted the accounting equation by decreasing both the assets and liabilities of the company. Initially, the company had a liability (accounts payable) of $13,800. However, when returning the merchandise, the company reduced the accounts payable by $3,300 to $10,500. Using the perpetual inventory method, the inventory (an asset) would also reduce by $3,300.

Furthermore, the company took advantage of the 2/10 discount and paid the liability within the discount period. Therefore, the payment is 98% of $10,500, which is $10,290. So, the company's assets (cash) would decrease by this amount, and the liabilities (accounts payable) would reduce to zero.

In conclusion, the return of merchandise and the payment within the discount period impact the accounting equation. The assets decrease due to the reduction in inventory and cash, and the liabilities decrease due to the settlement of accounts payable.

Learn more about Accounting Equation here:

https://brainly.com/question/33441178

#SPJ3

At the beginning of the month, the Painting Department of Skye Manufacturing had 40,000 units in inventory, 80% complete as to materials, and 25% complete as to conversion. The cost of the beginning inventory, $48,650, consisted of $42,400 of material costs and $6,250 of conversion costs. During the month the department started 135,000 units and transferred 150,000 units to the next manufacturing department. Costs added in the current month consisted of $329,600 of materials costs and $604,500 of conversion costs. At the end of the month, the department had 25,000 units in inventory, 40% complete as to materials and 10% complete as to conversion. If Skye Manufacturing uses the weighted average method of process costing, compute the costs per equivalent unit of materials and conversion respectively for the Painting Department.

Answers

Answer:

Material Cost per equivalent unit  = $2.325

Conversion Cost per equivalent unit = $4.004

Explanation:

According to the scenario, computation of the given data are as follow:-

Particular                                           Material cost   Conversion cost

Completed and transferred out units        150,000           150,000

Work in process at the end of the month  10,000            2,500

Equivalent units per material               160,000            152,500

Cost incurred in the current month consisted $372,000  $610,750

Cost per equivalent unit                       $2.325            $4.004

Work in Process at the end of the Month Material Cost = Units × Percent

= 25,000 × 40÷100 = 10,000

Work in process at the end of the month conversion cost =25,000 × 10÷100

= 2,500

Material Cost incurred= $329,600 + $42,400 = $372,000

Conversion Cost incurred= $604,500 + $6,250 = $610,750

Cost Per Equivalent Unit = Cost Incurred ÷ Equivalent Unit

Material Cost per equivalent unit = 372,000 ÷ 160,000

= $2.325

Conversion Cost per equivalent unit = 610,750 ÷ 152,500

= $4.004

Calculate the inventory turnover for 2019. (Round your answer to 2 decimal places.) Calculate the number of days' sales in inventory for 2019, using year-end inventories. (Use 365 days a year. Round your answer to 1 decimal place.) Calculate the accounts receivable turnover for 2019. (Round your answer to 1 decimal place.) Calculate the number of days' sales in accounts receivable for 2019, using year-end accounts receivable. (Use 365 days a year. Round your answer to 1 decimal place.)

Answers

Answer:

A.3.63 times

B.95.5 days

C.21.0 times

D.13.5 days

Explanation:

a.

Inventory turnover = Cost of goods sold / Average inventories

Hence:

= $602,250 / $166,000

= 3.63 times

b.

Number of days’ sales in inventory = Inventory at year-end / Average day’s cost of good sold

= $157,575 / $1,650

= 95.5 days

Average day’s cost of goods sold

= Annual cost of good sold / 365

= $602,250 / 365 = $1,650

c.Accounts receivable turnover

= Sales / Average accounts receivable

= $821,250 / $39,100

= 21.0 times

d.

Number of days’ sales in accounts receivable

= Accounts receivable at year-end / Average day’s sales

= $30,400 / $2,250 = 13.5 days

Average day’s sales = Annual sales / 365

= $821,250 / 365

= $2,250

Final answer:

Explanation of inventory turnover, days' sales in inventory, accounts receivable turnover, and days' sales in accounts receivable for the year 2019.

Explanation:

Inventory Turnover for 2019:

Calculate Inventory Turnover = Cost of Goods Sold / Average Inventory

Inventory Turnover = $500,000 / $100,000 = 5 times

Days' Sales in Inventory for 2019:

Calculate Days' Sales in Inventory = 365 days / Inventory Turnover

Days' Sales in Inventory = 365 days / 5 = 73 days

Accounts Receivable Turnover for 2019:

Calculate Accounts Receivable Turnover = Net Credit Sales / Average Accounts Receivable

Accounts Receivable Turnover = $700,000 / $50,000 = 14 times

Days' Sales in Accounts Receivable for 2019:

Calculate Days' Sales in Accounts Receivable = 365 days / Accounts Receivable Turnover

Days' Sales in Accounts Receivable = 365 days / 14 = 26 days

Oza has established several successful products in the competitive beverage Why has he been able to achieve this success when large organizations with more resources, such as Coca Cola and Pepsi, are forced to buy these new successful brands?



What types of unique marketing support helped to sustain Vitaminwater and Bai’s tremendous growth?



Suggest a celebrity endorsement with a beverage brand, and tell why that pairing would lead to What are the brand attributes and the reputation of the endorser that would resonate with specific consumer segments?

Answers

Answer:

1.) Rigorous marketing strategy

2.) partnerships with celebrities who found the product appealing

3.) Fifty cent, Taylor Swift, Rihanna and madonna

4.) The brand has to be a fan of a celebrity and the celebrity must also be a fan of the product

Explanation:

1.) Why has he been able to achieve this success when large organizations with more resources, such as Coca Cola and Pepsi, are forced to buy these new successful brands?

He used to take products everywhere, which were mainly bottles of Vitamin Water. He would hand the flight attendants drinks, the hostess on the gates, other people on the flight.

These people influence large amounts of society. They see thousands of a people on a regular basis and it just takes people with that reach to say they love something and recommend it to as many people as possible. In that way, he will surely win brand fans

That is how he build up a brand culture without taking just traditional routes of advertising

2.) What types of unique marketing support helped to sustain Vitaminwater and Bai’s tremendous growth?

Vitaminwater tremendously came up with different marketing approaches by forming creative partnerships with celebrities who found the product appealing

3.) Suggest a celebrity endorsement with a beverage brand, and tell why that pairing would lead to success.

Taylor's the most iconic musician and celebrity on the planet. She does what she wants and isn't deterred by the press or anyone else. She managed to influence one of the biggest corporations on the planet — Apple – that's real power. Partnering with her will definitely lead to success because she also rolls with a posse and a crew of people who are all beautiful females.

4.) What are the brand attributes and the reputation of the endorser that would resonate with specific consumer segments

It has to be a good organic fit where the brand is a fan of a celebrity and the celebrity is a fan of the product.

People need a natural fit otherwise it will be too forced. The celebrity endorsement should not be forced because people will discover that and reject it and people will tell you about it.

Oza has had successful products in the competitive beverage despite the presence of bigger companies because of the rigorous marketing strategies used.

Oza took the products with him wherever he went to. He also encouraged people to purchase his product. He used the aggressive marketing strategy to achieve his aim.

The types of unique marketing support that helped to sustain Vitaminwater and the growth of Bai was the partnerships with celebrities.

A celebrity endorsement with celebrities such as Drake, Ronaldo, Beyonce etc will  help in the growth of one's brand. These people are well known and will have a positive impact on ones product as there'll be higher demand.

In conclusion, partnership with celebrity can help one's business.

Read related link on:

https://brainly.com/question/15684001

Pendant Publishing is considering a new product line that has expected sales of $1,100,000 per year for each of the next 5 years. New equipment that is required to produce the new product will cost $1,200,000. The equipment has a useful life of 5 years and a $300,000 salvage value and will be sold at the end of year 5 for its’ salvage value. Total variable costs of the product line are $450,000 per year, total fixed costs (not including depreciation) will be an additional $180,000 per year and the initial working capital investment, to buy inventory, will be $15,000. The discount rate (interest rate) for the project is 10% and the company’s tax rate is 35%. What is the operating cash flow of year 1 for the company?

Answers

Answer:

The operating cash flow of year 1 for the company is $368,500

Explanation:

In order to calculate the operating cash flow of year 1 for the company first we need to calculate the Cashflow before tax and depreciation as follows:

Cashflow before tax=Sales-Variable cost-fixed cost

Cashflow before tax=$1,100,000-$450,000-$180,000      

Cashflow before tax=$470,000

 

Depreciation = Original cost - Salvage / fixed Cost

Depreciation= $1,200,000 - $300,000 / 5

= $180,000

Therefore, to calculate the operating cash flow of year 1 for the company we would have to make the following calculation:

Operating Cash Flow=(CFBT×65%)+Depreciation×35%

Operating Cash Flow=($470,000×65%)+($180,000×35%)

Operating Cash Flow=$368,500

The operating cash flow of year 1 for the company is $368,500

How do managers decide upon an ethical course of action when confronted with decisions pertaining to working conditions, human rights, corruption, and environmental pollution? From an ethical perspective, how do managers determine the moral obligations that flow from the power of a multinational? In many cases, there are no easy answers to these questions because some are very real dilemmas with no obvious correct action. Nevertheless, managers can and should do many things to make sure that basic ethical principles are adhered to and that ethical issues are routinely inserted into international business decisions.

Answers

Explanation:

Organizational ethics is a competitive advantage in organizations.

In the globalized business world, the companies that insert an ethical context in all their internal and external decisions are those with a better positioning in the market, a better image before the stakeholders and greater value for the potential audience.

Nowadays, companies are also seen as transforming agents of society, so it is important that there is ethical management for all social and environmental issues on the rise in the world, it is necessary that issues involving working conditions, human rights, corruption and environmental pollution are based on ethical policies that assist in complying with the legislation in force in a locality and that overcome it, becoming an agent that acts with transparency in favor of improving the living conditions of society.

The internationalization of companies is another factor that requires an ethical and moral positioning established through legislation, culture and values ​​of a specific country where a multinational is established, since cultural differences can be related to ethical dilemmas whose managers must seek preventive actions so that differences and values ​​are respected and established through an ethical inclusion policy.

Problem 9-20 Two investment advisers are comparing performance. One averaged a 16% rate of return and the other a 15% rate of return. However, the beta of the first investor was 1.3, whereas that of the second investor was 1. a. Can you tell which investor was a better selector of individual stocks (aside from the issue of general movements in the market)? First investor Second investor Cannot determine b. If the T-bill rate was 7% and the market return during the period was 10%, which investor would be considered the superior stock selector? Second investor First investor Cannot determine c. What if the T-bill rate was 4% and the market return was 14%? First investor Second investor Cannot determine

Answers

Answer:

Imma solve it out for you no problem. Give me a quick second

Explanation:

Give me a minute to solve it out real quick. I gotchu

Why is it difficult for the federal government to increase or decrease spending

Answers

Answer:

here you go bruv

Explanation:

The New York Times published a chart today that succinctly explains why it is so hard to cut the federal government's spending: the programs that people want to cut don't cost very much, and the programs that cost a lot people don't want to cut.

WACC.  


Eric has another​ get-rich-quick idea, but needs funding to support it. He chooses an​ all-debt funding scenario.


He will borrow ​$4 comma 911 from​ Wendy, who will charge him 4​% on the loan.


He will also borrow ​$4 comma 305 from​ Bebe, who will charge him 6​% on the​ loan, and ​$2 comma 784 from​ Shelly, who will charge him 12​% on the loan.


What is the weighted average cost of capital for​ Eric?

Answers

Answer:

6.57%

Explanation:

The WACC formula is really easy you just have to calculate the weights of the debt or equity whatever is given in the question and then multiply it by the percentage of borrowing given. The total borrowing in this question is 12000(4911+4305+2784).

WACC for this question will be calculated as:

=> (4911/12000)*0.04 + (4305/12000)*0.06 + (2784/12000)*0.12

=> 0.0657

=> 6.57%

Hope this helps,

Goodluck buddy

The Azuza Company owns no plant assets and had the following income statement for the year:

Sales revenue $930,000
Cost of goods sold $650,000
Wages expense 210,000
Rent expense 42,000
Utilities expense 12,000 914,000
Net income $16,000

Additional information about the company includes:

End of Year Beginning of Year
Accounts receivable $67,000 $59,000
Inventory 62,000 86,000
Prepaid rent 9,000 7,000
Accounts payable 22,000 30,000
Wages payable 9,000 7,000

Required:
Use the preceding information to calculate the cash flow from operating activities using the indirect method. Remember to use negative signs with answers when appropriate.

Answers

Answer:Please see answer below

Explanation:

Solving

Net income= $16,000

Change in asset and liabilities

Accounts receivable Increased $67,000- $59,000 =- -8000

Inventory Decreased 62,000- 86,000=24,000

Prepaid rent --Increased 9,000- 7,000 = -2000

Accounts payable ---decreased 22,000 -30,000 = -8000

Wages payable ----Increased 9,000- 7,000=2000

Net cash provided by operating activity.=24,000+ 2000-(8000+2000+8000)

= $24,000

Net income= $16,000

Change in asset and liabilities

Accounts receivable--Increase -$8,000

Inventory--Decreased-- $24,000

Prepaid rent --Increased -$2,000

Accounts payable ---decreased-$8,000

Wages payable ----Increased $2,000

Net cash provided by operating activities,= $24,000

What range of returns should you expect to see with a 99 percent probability for the riskiest asset in this group?: Large company stocks have an average return of 9.1 percent and a standard deviation of 18.7 percent; small company stocks have an average return of 10.85 percent and a standard deviation of 24.64 percent; and corporate bonds have an average return of 6.8 percent and a standard deviation of 11.4 percent.

Answers

Answer: Range is, -63.07% to 84.77%

Explanation:

The range of returns that you can expect to see 99% of the time is calculated by the formula

= Mean+- (3 * standard deviation)

The question asks for the range of returns you should expect to see with a 99 percent probability for the RISKIEST ASSET.

The Riskiest Asset is one with the highest standard deviation which is the Small Company Stock.

Calculating the range therefore is,

Lower limit,

= Mean - (3 * standard deviation)

= 10.85% - (3 * 24.64%)

= -63.07%

Upper limit

= Mean + (3 * standard deviation)

= 10.85% - (3 * 24.64%)

= 84.77%

Range is, -63.07% to 84.77%

Final answer:

The range of returns for small company stocks with a 99 percent probability is -63.07 percent to 84.77 percent. This calculation is based on the highest standard deviation among the assets, which indicates the highest risk level.

Explanation:

To determine the range of returns for the riskiest asset with a 99 percent probability, we'll use the concept of standard deviation and the empirical rule, which applies to normally distributed data. Considering that small company stocks have the highest standard deviation at 24.64 percent, they are the riskiest asset among those listed. The empirical rule says that for a normal distribution, approximately 99 percent of the data will fall within three standard deviations of the mean.

Accordingly, we calculate the range as follows:

Identify the mean return for small company stocks: 10.85 percent.

Calculate three standard deviations: 3 × 24.64 percent = 73.92 percent.

Compute the lower and upper bounds: 10.85 percent ± 73.92 percent.

So, the range with 99 percent probability is -63.07 percent to 84.77 percent. This wide range highlights the high risk and high potential return associated with small company stocks.

Describe whether the following changes cause the short-run aggregate supply to increase, decrease, or neither. a. The price level increases. b. Input prices decrease. c. Firms and workers expect the price level to fall. d. The price level decreases. e. New policies increase the cost of meeting government regulations. f. The number of workers in the labor force

Answers

Answer:

Short Run Aggregate Supply SRAS is the total goods and services available in an economy at different price levels with respect to fixed production resources.

Explanation:

A) When the price level increases, aggregate supply increases as well because demand is high and manufacturers will produce more.

B) When Input prices decrease, short run aggregate supply is not affected.

C) When firms and workers expect the price level to fall, aggregate supply decreases to cushion the effect of imminent loss due to fall in prices.

D) When the price level decreases, supply also decreases since it is an indication that the market is approaching saturation,

E) New policies increase the cost of meeting government regulations and does not necessarily influence SRAS.

F) The number of workers in the labor force does not affect SRAS.

Consider two bonds, a 3-year bond paying an annual coupon of 3%, and a 20-year bond, also with an annual coupon of 3%. Both bonds currently sell at par value. Now suppose that interest rates rise and the yield to maturity of the two bonds increases to 6%. a. What is the new price of the 3-year bond?

Answers

Answer:

New price = $919.81

Explanation:

Computation of the given data are as follows:

Let Face value (FV) = $1,000

YTM (Rate ) = 6%

Time period (Nper) = 3 years

Coupon rate = 3%

Coupon payment = 3% × $1,000 = $30

So, we can calculate the new price by using financial calculator.

The attachment is attached below:

New price = $919.81

On September 1, 2020, Windsor Company sold at 104 (plus accrued interest) 3,840 of its 8%, 10-year, $1,000 face value, nonconvertible bonds with detachable stock warrants. Each bond carried two detachable warrants. Each warrant was for one share of common stock at a specified option price of $13 per share. Shortly after issuance, the warrants were quoted on the market for $2 each. No fair value can be determined for the Windsor Company bonds. Interest is payable on December 1 and June 1. Prepare in general journal format the entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation

Answers

Answer:

total sales value = 3,840 x $1,000 = $3,840,000 x 1.04 = $3,993,600

since each bond carried 2 detachable stock warrants, we must include in the bond issuance the value of the stock warrants = 3,840 bonds x 2 warrants x $2 per warrant = $15,360

the premium on bonds payable = total cash received - bonds payable - stock warrants = $3,993,600 - $3,840,000 - $15,360 = $138,240

the journal entry for recording the bond issuance:

September 1, 2020, 3,840 8% bonds issued

Dr Cash 3,993,600

    Cr Bonds payable 3,840,000

    Cr Premium on bonds payable 138,240

    Cr Additional paid in capital - warrants 15,360

To record the issuance of the Windsor Company bonds with detachable stock warrants, the market value of the warrants is used to allocate a portion of the proceeds. The journal entry includes the accounts for Cash, Bonds Payable, Premium on Bonds Payable, and Stock Warrants. The Premium on Bonds Payable is adjusted to account for the value of the warrants.

To record the issuance of the bonds with detachable stock warrants by Windsor Company, we must separate the bond's value from the warrants' value. Since we do not have a fair value for the bonds, we need to use the market value of the warrants to allocate a portion of the proceeds to the warrants and the remainder to the bonds. Here is the journal entry on September 1, 2020, assuming the bonds were issued for cash:

Cash (3,840 bonds × $1,000 face value × 104%) = $3,993,600Bonds Payable (face value of the bonds) = $3,840,000Premium on Bonds Payable (the excess of cash received over the face value of the bonds) = $153,600

However, this does not take into account the value of the attached warrants. To allocate value to the warrants, we can use the market value of the warrants (3,840 bonds × 2 warrants/bond × $2 per warrant = $15,360). Therefore, the journal entry would include an additional line:

Stock Warrants (value of the detachable warrants) = $15,360

The Stock Warrants account reflects the value attributed to the warrants, which would then reduce the Premium on Bonds Payable by the same amount. The adjusted premium would be the original premium less the value of the warrants ($153,600 - $15,360 = $138,240).

Culver Company has completed all of its operating budgets. The sales budget for the year shows 50,180 units and total sales of $2,273,600. The total unit cost of making one unit of sales is $23. Selling and administrative expenses are expected to be $301,900. Interest is estimated to be $10,000. Income taxes are estimated to be $214,000.


Required:

Prepare a budgeted multiple-step income statement for the year ending December 31, 2017.

Answers

Answer:

Net Income = $593,560

Explanation:

Cost of Goods Sold=sales unit × cost of sales per unit

= $23 × 50,180 = $1,154,140

Income statement December 31,2017

Particular                           Amount($)

Sales                                   2,273,600

Less:-Cost of goods sold   (1,154,140)

Gross Profit                           1,119,460

Less-Selling and Administrative Expenses (3,019,00)

Income from Operation           817,560

Less-Estimated Interest     (10,000)

Income before Taxes           807,560

Less-Income Taxes          (214,000)

Net Income                            593,560

Shaw Company sells goods that cost $300,000 to Ricard Company for $410,000 on January 2, 2020. The sales price includes an installation fee, which has a standalone selling price of $40,000. The standalone selling price of the goods is $370,000. The installation is considered a separate performance obligation and is expected to take 6 months to complete. (a) Prepare the journal entries (if any) to record the sale on January 2, 2020.

Answers

Answer:

January 2, 2020

Dr Accounts receivable 410,000

    Cr Sales revenue 370,000

    Cr Unearned revenue 40,000

Dr Cost of goods sold 300,000

    Cr Merchandise inventory 300,000

Accrual accounting states that revenues must be recognized during the periods that they actually occur (i.e. the earning process is completed). Since the installation process lasts 6 months, the unearned revenue will be recognized as the process is being completed.

Filer Manufacturing has 7.4 million shares of common stock outstanding. The current share price is $44, and the book value per share is $5. The company also has two bond issues outstanding. The first bond issue has a face value of $68.2 million and a coupon rate of 6.1 percent and sells for 109.2 percent of par. The second issue has a face value of $58.2 million and a coupon rate of 6.6 percent and sells for 107.1 percent of par. The first issue matures in 9 years, the second in 26 years. Suppose the company’s stock has a beta of 1.3. The risk-free rate is 2.2 percent, and the market risk premium is 6.1 percent. Assume that the overall cost of debt is the weighted average implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 40 percent. What is the company’s WACC?

Answers

Answer:

6.08%

Explanation:

WACC = [(market value of equity / total value of financing) x cost of equity] + [(market value of debt / total value of financing) x cost of debt x (1 - tax rate)]

market value of equity = 7,400,000 shares x $44 = $325,600,000total value of financing = $325,600,000 + $74,474,400 + $62,332,200 = $462,406,600cost of equity = risk free rate of return + Beta × (market rate of return – risk free rate of return) = 2.2% + 1.3(6.1% - 2.2%) = 2.2% + 5.07% = 7.27%market value of debt₁ = $68,200,000 x 1.092 = $74,474,400 market value of debt₂ = $58,200,000 x 1.071 = $62,332,200tax rate = 40%cost of debt₁ = yield to maturity = [C + (F - P)/n] / (F + P)/2 = [2,080,100 + (68,200,000 - 74,474,400)/18] / (68,200,000 + 74,474,400)/2 = 1,731,522 / 71,337,200 = 0.0242 x 2 = 4.8545%  cost of debt₂ = yield to maturity = [C + (F - P)/n] / (F + P)/2 = [1,920,600 + (58,200,000 - 62,332,200)/52] / (58,200,000 + 62,332,200)/2 = 1,841,135 / 60,266,100 = 0.03055 x 2 = 6.11002%

WACC = [(market value of equity / total value of financing) x cost of equity] + [(market value of debt₁ / total value of financing) x cost of debt₁ x (1 - tax rate)] + [(market value of debt₂ / total value of financing) x cost of debt₂ x (1 - tax rate)]

WACC =  [($325,600,000 / $462,406,600) x 7.27%] + [($74,474,400 / $462,406,600) x 4.8545% x (1 - 40%)] + [($62,332,200 / $462,406,600) x 6.11002% x (1 - 40%)] = 5.12% + 0.47% + 0.49% = 6.08%

Daniel Patrick Moynihan, the late senator from New York, once introduced a bill that would levy a 10,000 percent tax on certain hollow-tipped bullets.


True or False:

This tax won't raise much revenue because the high tax rate would likely cause the equilibrium quantity to be near zero.

Answers

Answer:

True.

Explanation:

Daniel Patrick Moynihan, the late senator from New York, once introduced a bill that would levy a 10,000 percent tax on certain hollow-tipped bullets.

However, this tax won't raise much revenue because the high tax rate would likely cause the equilibrium quantity to be near zero.

Levered, Inc., and Unlevered, Inc., are identical in every way except their capital structures. Each company expects to earn $12.6 million before interest per year in perpetuity, with each company distributing all its earnings as dividends. Levered’s perpetual debt has a market value of $74 million and costs 5 percent per year. Levered has 3.2 million shares outstanding that sell for $90 per share. Unlevered has no debt and 4.9 million shares outstanding, currently worth $73 per share. Neither firm pays taxes. What is the value of each company's equity?

Answers

Answer: Unlevered firm Equity is worth $357,700,000.

Levered firm Equity is worth $283,700,000 going by the Modigliani-Miller Proposition I.

Explanation:

The Unlevered firm has no debt and so the value of it's equity can be calculated by simply multiplying shares outstanding by the market price.

= 4.9 million * 73

= $357,700,000

Unlevered firm Equity is worth $357,700,000.

Now according to Modigliani-Miller Proposition I, if a Levered firm and an identical Unlevered firm are not paying taxes, they should be of equal value.

This means that the Levered firm should have a value of $357,700,000 meaning that their equity should be that value minus the value of their debt.

= 357,700,000 - 74,000,000

= $283,700,000

$283,700,000 should be the value of their Equity going by the Modigliani-Miller Proposition I.

Calculating with their figures however gives,

= 3.2 million * 90

= $288,000,000

The market value of the Levered firm is more than it's value according to the Modigliani-Miller Proposition I.

This means that the Unlevered firm's Equity is UNDERVALUED and the Levered Firm's Equity is OVERVALUED.

The cash flows below contain the year 1 cash flows for a potential real estate investment. What is the property's operating expense ratio? Year 1 Number of Units 75 Average Rent $800 Potential Gross Income $720,000 Vacancy and Collection Losses ($72,000) Effective Gross Income $648,000 Operating Expenses ($243,389) Capital Expenditures ($19,440) Net Operating Income $385,171 Annual Debt Service ($323,301) Before-Tax Cash Flow $61,870

Answers

Answer:

37.56%

Explanation:

Data provided

Operating expenses = $243,389

Effective gross income = $648,000

The computation of property's operating expense ratio is shown below:-

Operating expenses ratio = Operating expenses ÷ Effective gross income

= $243,389 ÷ $648,000

= 0.3756

= 37.56%

Therefore for computing the operating expenses ratio we simply divide operating expenses by effective gross income.

Advanced Enterprises reports yearminusend information from 2018 as​ follows: Sales ​(160 comma 250 ​units) $ 963 comma 000 Cost of goods sold 641 comma 000 Gross margin 322 comma 000 Operating expenses 269 comma 000 Operating income $ 53 comma 000 Advanced is developing the 2019 budget. In 2019 the company would like to increase selling prices by 13.5​%, and as a result expects a decrease in sales volume of 9​%. All other operating expenses are expected to remain constant. Assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost. What is budgeted sales for​ 2019?

Answers

Answer:

Sales budget in 2019 $994,543.55

Explanation:

The sales budgeted shows the expected units to be sold at a particular price for forth coming accounting period, together with the total sales revenue.

Selling price in 2018= 963,000/160,250 =$6.009

Expected selling price in 2019 = 113.5%× price in 2018

                                      =  113.5% × $6.009 = $6.820

Expected sales volume in 2019= (100- 9%)× sales volume in 2018

                                        = 91%× 160,250

                                         =145827.5

Sales budget for 2019 = $6.820 × 145,827.5

                                       = $994,543.55

Bill and Guilda each own 50 percent of the stock of Radiata Corporation, an S corporation. Guilda's basis in her stock is $21,000. On May 26, 2018, Bill sells his stock, with a basis of $40,000, to Loraine for $50,000. For the 2018 tax year, Radiata Corporation has a loss of $104,000.


Round your final answers to the nearest dollar. Use a 365-day year in your computations.


a. Calculate the amount of the corporation's loss that may be deducted by Bill on his 2018 tax return.

$___________


b. Calculate the amount of the corporation's loss that may be deducted by Guilda on her 2018 tax return.

$___________


c. Calculate the amount of the corporation's loss that may be deducted by Loraine on her 2018 tax return.

$___________

Answers

Answer:

a) $20,800

b) $21,000

c) $31,200

Explanation:

a) Bill held his stock from January 1 to May 26. The loss accrued to him should only be for those days.

The number of days are,

= 31 (January) + 28 ( February) + 31 + 30 + 26

= 146 days.

50% of the losses accrued to him for 146 days out of 365.

= 104,000 * 0.5 * 146/365

= $20,800

b) The maximum amount of loss that Guilda can claim on her 2018 tax return as a current shareholder is equal to her current basis in the stock. That basis is $21,000 so Guilda can only deduct $21,000 from her 2018 tax return.

c) Seeing as Lorraine acquired the stock from Bill on May 26, the amount of loss due to her will be for the period she held the stock.

She held the stock for,

= 365 - 146

= 219 days

At 50% ownership, her losses will be,

= 104,000 * 0.5 * 219/365

= $31,200

Other Questions
In the above plant cell, what is the name of the cellular organelle labeled with the letter X?A -chloroplastB-cell wallC-nucleusD- vacuole Describe the enlightenment concepts that are incorporated into the united states constitution.one paragraph will brainlist The following observations were made on fracture toughness of a base plate of 18% nickel maraging steel (in ksi in. , given in increasing order)]: 65.2 71.9 72.8 73.1 73.1 73.5 75.5 75.7 75.8 76.1 76.2 76.2 77.0 77.9 78.1 79.6 79.7 79.9 80.1 82.2 83.7 93.8 Calculate a 99% CI for the standard deviation of the fracture toughness distribution. (Round your answers to one decimal place.) - 2 PointsAn object is located 75.0 cm from a concave mirror. The magnitude of themirror focal length is 15.0 cm. What is the image distance? Use the equationd = aufO A. 12.5 cmO B. -18.8 cmO C. -12.5 cmO D. 18.8 cmSUBMIT what percentage of the total earth population growth is undeveloped countries How is loess beneficial? 6(b+2)+8 answer quick Which best explains how the body maintains homeostasis Explain what you believe may have happened to the ecosystem in year 6 from the Ecosystem Study graph above. Which man was a Union general known for attacking his opponents resources? Arrange the layers from youngest to oldest Harry Trading Company must choose its optimal capital structure. Currently, the firm has a 20 percent debt ratio and the firm expects to generate a dividend next year of $5.64 per share. Dividends are expected to remain at this level indefinitely. Stockholders currently require a 12.3 percent return on their investment. Harry is considering changing its capital structure if it would benefit shareholders. The firm estimates that if it increases the debt ratio to 30 percent, it will increase its expected dividend to $5.92 per share. Again, dividends are expected to remain at this new level indefinitely. However, because of the added risk, the required return demanded by stockholders will increase to 13.6 percent. Based on this information, should Harry make the change? 13. Which components of DNA are held together by weak hydrogen bonds?A) phosphate and adenineB) phosphate and deoxyriboseC) thymine and deoxyriboseD) cytosine and guanine Describe what ballistic stretching is and why its harmful. Then, provide at least two examples of how one should properly stretch? (Site 1) When something very different from what was expected occurs, a surprising event. Which lines from the excerpt most clearly develop an argumentative tone?"You will eat lunch / at school / with friends.""Not without knowing / what I am agreeing to.""Worry instead / about getting sleep""Mother sighs, / walking away." Two unrelated individuals, dave and tom, own all the stock of arnold corporation, which has earnings and profits of $400,000. because of his inactivity in the business for the last several years, dave has decided to retire from the business completely and move to oregon. accordingly, arnold corporation will redeem all the stock owned by dave and, in return, dave will receive a distribution of $500,000. dave's adjusted basis in the stock is $250,000. what will be the tax effect to dave? 2.A company has been successful in reducing the amount of sales returns and allowances. At the same time, a credit card company reduced the credit card discount from 3% to 2%. What effect will these changes have on the company's net sales, all other things equal? a.Net sales will not change. b.Net sales will increase. c.Net sales will decrease. d.Either (b) or (c). Human papilloma virus (HPV) greatly increases the risk of which cancer in women? colon mouth liver cervical Which activity is not a strong discussion technique?OA. Using pathos to support claimsB. Challenging established ideasC. Synthesizing multiple claimsOD. Asking clarifying questions Steam Workshop Downloader