Answer:
D. harms the society by interfering with the economy's natural process.
Explanation:
In order to get out of recession, the fed should reduce the tax rates, which would in return lead to higher disposable income of the consumers, and then there will be an increase in the demand.
On the other hand the sale of bonds would even further increase the recession, as there will be more cash crunch in the economy. A decrease in reserve ratio will be a long time taking solution, so it would not provide an immediate solution.
MCQ
But, if the fed interferes with the short run equilibrium in the hope of giving short run benefits, it will hamper the economy's natural process to attain a new equilibrium as discussed in the paragraph above. Hence, option D is the correct answer
Option A and C are incorrect, because, employment is not much affected with lowering of income tax. On, the other hand, inflation levels rise, when there is a cut in income tax, as it gives more currency in the economy, hence even C is incorrect.
Consider the following account balances of Smiths Corp. at the end of the year:
Cash $12,000
Unearned Revenue $18,000
Interest Revenue $5,000
Supplies $3,500
Common Stock $25,000
Rent Expense $6,000
Accounts Receivable $11,700
Salaries Expense $7,500
1. How many of these accounts would be reported in the company’s income statement?
Answer:
Interest revenue, rent expense and salaries expense
Explanation:
In the income statement, the total revenues and the total expenses are recorded.
If the total revenues are more than the total expenditure then the company earns net income
And, If the total revenues are less than the total expenditure then the company have a net loss
This net income or net loss would reflect in the statement of the retained earning account.
So, the categorization is shown below:
Interest revenue, rent expense and salaries expense
Which of the following statements concerning the long - run average cost (LRAC) curve is correct?A.The LRAC curve is derived from a series of short-run marginal cost curves.B.The LRAC curve represents the least-cost input combination of inputs for producing each level of output.C.As output increases, the amount of capital employed by the firm is held constant along the LRAC curve.D.The short-run cost curve at the minimum point of the LRAC curve represents the least-cost plant size for all levels of output.
Answer:
The correct answer is letter "B": The LRAC curve represents the least-cost input combination of inputs for producing each level of output.
Explanation:
Presuming that all factors for production are available, the long-run average cost (LRAC) curve portraits the lowest cost per unit of the company at each output level. The approach also presumes that the company has selected the production optimal factor mix.
Naomi knows she has to order her store's Christmas holiday merchandise in April to ensure delivery before the holiday season. Naomi is concerned with the supply chain management goal ofA. providing products at the right time.B. providing products at the right locations.C. providing the right quantities.D. satisfying the service levels supply chain participants expect.E. minimizing system-wide costs.
Answer:
A. providing products at the right time.
Explanation:
Naomi is concerned about the seasonality of Christmas products. She knows that Christmas products not sold in Christmas season are unlikely to be sold in other time of the year. She also knows that customers tend to spend more money in the Christmas season, so there is a high expectation about relative higher sales. The only way Naomy could take advantage of the season is having stock available at the right time when customers desire Christmas products and are willing to pay a relatively higher amount of money. In this case, having products at the right time is the biggest Naomi's concern.
Jack Holmes is a middle-aged, lower-level employee at an automobile service center. Though he is not paid very well, he loves his job. His supervisor speaks to him with respect, and he is the favored candidate for mentoring new employees because of the vast experience he holds in the job. Based on this information, which of the following is most likely to be the reason Jack likes his job?
The question is incomplete. Here is the complete question:
Jack Holmes is a middle-aged, lower-level employee at an automobile service center. Though he is not paid very well, he loves his job. His supervisor speaks to him with respect and he is the favored candidate for mentoring new employees because on the vast experience he holds in the job. Based on this information, which of the following is most likely to be the reason Jack likes his job?
A) recognition
B) prospects of growth
C) salary
D) flextime
E) job sharing
Answer:
A) Recognition
Explanation:
The fact that Jack Holmes is not overlooked, but rather recognized and respected for the vast experience he has on the job, even though he is a lower level employee, is most likely to be the reason why he likes his job.
Despite the low salary, being chosen to mentor new employees gives him job satisfaction.
When there is a positive externality associated with consumption or production: Select one:
a. The market equilibrium quantity will result in over allocation of the good.
b. The market equilibrium quantity will result in under allocation of the good.
c. The market equilibrium quantity will result in efficient allocation of the good.
d. There will be a surplus in production.
Answer:
b. The market equilibrium quantity will result in under allocation of the good.
Explanation:
A positive externality is when there is Social marginal benefit with the production and consumption of a product. Therefore the product does not just benefit an individual consumer but also the society.
This results in under allocation of resources for the production of this good and service and thus the good is generally under produced. This is because the producer down not involve the social benefit in to its pricing and thus charges goods under priced, if they were priced higher there will be more production.
Hope that helps.
Assume Mexico can produce 18 tons of coffee or 6 tons of rice and Costa Rica 6 tons of coffee ord 3 tons of rice. According to comparative advantage. Costra Rica therefore should produce a. only coffee b. both coffee and rice c. neither coffee or rice. d. only rice
Answer:
d. only rice
Explanation:
Please see attachment
Suppose you purchase a 9-year AAA-rated Swiss bond for par that is paying an annual coupon of 5 percent and has a face value of 2,600 Swiss francs (SF). The spot rate is U.S. $0.66667 for SF1. At the end of the year, the bond is downgraded to AA and the yield increases to 7 percent. In addition, the SF depreciates to U.S. $0.74074 for SF1.
a. What is the loss or gain to a Swiss investor who holds this bond for a year?
b. What is the loss or gain to a U.S. investor who holds this bond for a year?
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.
Individuals and business organizations that buy finished goods and resell them to make a profit without changing the physical characteristics of the product are classified as ____ markets.A) ConsumerB) institutionalC) producerD) governmentE) reseller
Answer: reseller markets
Explanation: In simple words, re-sellers refers to the buyers buying certain goods with the intention of selling them to anyone else. There are suppliers, retailers and distributors on the re-seller trade.
Re sellers can constrain their acquisitions to one product or company or offer a variety of brands and products.
These are the part of supply chain which makes their profit by adding value in the goods in form of providing any kind of service. For example the retailer provides commodities near the customer place hence charges extra for the time saving customer.
firm employs 100 workers and has 2 divisions, each in perfectly competitive markets. Division A produces tape measures and Division B produces saws. How should the firm allocate its workers to maximize efficiency?
Allocate workers between the divisions so the average cost of producing tape measures equals the average cost of producing saws.
Allocate workers to the division with the lowest marginal product of labor and divest from the other division.
Allocate workers so the marginal product of labor is the same in both divisions.
III only.
II and III only.
II only.
I only.
Answer:
Only III.
Explanation:
To begin with, we have to define the marginal product of labour. We can say that it is the change that occurs in output due to the use of one more unit of labor; thus, the marginal product of labour let us know when the labor force is more productive, which results in a higher income because it is cheaper to produce each item, and then is directly a measure of efficiency.
In this vein, if we want to maximize efficiency, we must maintain the marginal product of labour balanced in both divisions, thus , the answer is only III.
Option I is not a correct answer because the average cots of producing a product doesn't refer to the efficiency of the process. And option II does not specify to what extent workers should be moved.
Campbell Inc. produces and sells outdoor equipment. On July 1, 20Y1, Campbell issued $30,000,000 of 10-year, 10% bonds at a market (effective) interest rate of 9%, receiving cash of $31,951,110. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.Required:1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 20Y1.*2. Journalize the entries to record the following:*a. The first semiannual interest payment on December 31, 20Y1, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.)b. The interest payment on June 30, 20Y2, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.)3. Determine the total interest expense for 20Y1.4. Will the bond proceeds always be greater than the face amount of the bonds when the contract rate is greater than the market rate of interest?5. Compute the price of $31,951,110 received for the bonds by using the present value tables. (Round to the nearest dollar.)
Answer:
Cash 31,951,110 debit
Bonds Payable 30,000,000 credit
Premium on BP 1, 951, 110 credit
--to record issuance of bonds--
interest expense 1,402,444.5 debit
Premium on BP 97,555.5 debit
cash 1,500,000 credit
--to record payment of interest of Dec 31th--
interest expense 1,402,444.5 debit
Premium on BP 97,555.5 debit
cash 1,500,000 credit
--to record payment of interest of June 30th--
Interest expense for 20Y1: 1,402,444.5 dollars
4.- Yes, as the market is willing to accept a higher price o nthe bond as it yields above the market.
Explanation:
proceeds: 31, 951, 110
face value: 30,000,000
premium 1, 951, 110
the premium is the difference between the proceeds and face value.
It will be amortized over 20 payment periods:
1,951,110 / 20 = 97,555.5
this will be subtracted from the interest cash payment to determinate the interest expense:
30,000,000 x 5% = 1,500,000
1,500,000 - 97,555.5 = 1,402,444.5
Under straight line mehtod all entries are the same.
To record the cash proceeds from the bond issuance, debit Cash, Bonds Payable, and Premium on Bonds Payable. Journalize the first interest payment and amortization of the bond premium. Determine the total interest expense for the year. Explain the relationship between bond proceeds and face amount. Compute the bond price using present value tables.
Explanation:To journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 20Y1, you would debit Cash for $31,951,110 and credit Bonds Payable for $30,000,000 and Premium on Bonds Payable for $1,951,110.
To journalize the entries for the first semiannual interest payment on December 31, 20Y1, you would debit Interest Expense for $1,500,000 and the Premium on Bonds Payable for $714,198, and credit Cash for $2,214,198.
The total interest expense for 20Y1 would be $3,000,000.
When the contract rate is greater than the market rate of interest, the bond proceeds may or may not be greater than the face amount of the bonds. This depends on various factors such as the overall demand for bonds and the perceived creditworthiness of the issuer.
The price of $31,951,110 received for the bonds can be computed using the present value tables. By discounting the cash flows (interest payments and face value payment) at the market interest rate of 9%, you can calculate the present value of the bond.
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Suppose the NFL wants to give the "common fan" the opportunity to attend the Super Bowl, so it sets Super Bowl prices "low"—let's say they set ticket prices for a regular seat at the Super Bowl to cost $400. People who have tickets, however, can turn around and sell them online for $1,500 or more. If there are no transaction costs for fans with tickets to sell them, the true cost to a fan of attending the Super Bowl is:
Answer:
The true cost is $1,500. If there are no transactional costs and exists a steady demand for tickets with a price of $1,500, it means that the total seats available are less than the demand for it. Therefore, by the market mechanism, the equilibrium price of the ticket will be higher than $400.
Explanation:
Since there is a fixed number of seats and a bigger number of fans with the desire and capacity of buying a ticket, and the accessibility to prices of $400 is not related to level of favourability in buyers, all the those who are not really fans of NFL but got the chance to got a ticket in $400 will sell the ticket, because he or she will find another fan with the interest of buying the ticket at that price. This mechanism will repeat until the last ticket is sold, and the average price paid will be $1,500.
Final answer:
The true cost to a fan of attending the Super Bowl is effectively the opportunity cost of not selling the ticket at the market price, which is $1,500, highlighting concepts of economic opportunity cost, supply and demand, and market inefficiencies.
Explanation:
The true cost to a fan of attending the Super Bowl, when tickets can be resold online for $1,500 or more, despite their original price being set at $400, largely depends on the concept known as economic opportunity cost. Opportunity cost refers to the value of what you have to give up in order to choose something else. In this scenario, if fans can sell their tickets for $1,500, the opportunity cost of attending the game instead of selling the ticket is effectively the foregone income - $1,500. Therefore, even though the ticket's face value is $400, the true cost, considering the opportunity to sell at a higher price, is $1,500.
This illustrates a principle in economics regarding supply and demand, where the limited supply of tickets and high demand for a premier event like the Super Bowl drives up secondary market prices. Furthermore, it indicates a market inefficiency where price ceilings below market equilibrium create shortages or surpluses, in this case leading to potential scalping opportunities.
do the terms debit and credit signify increase or decrease?
The terms debit and credit in accounting refer to increases or decreases in an account's value. Debit usually signifies an increase in assets or expenses or a decrease in liabilities, equity, or revenue. On the other hand, credit typically represents a decrease in assets or expenses or an increase in liabilities, equity, or revenue.
Explanation:In accounting, the terms debit and credit are used to describe the increase or decrease of an account's value. A debit usually represents an increase in assets or expenses or a decrease in liabilities, equity, or revenue. In contrast, a credit typically signifies a decrease in assets or expenses or an increase in liabilities, equity, or revenue.
Take, for instance, a business purchases a piece of machinery costing $10,000. This transaction results in a debit to the business's Asset account (to increase it) and a credit to the Cash account (to decrease it because the business has less cash after the purchase).
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Administrative Expenses $ 686,200 Beginning Finished Goods $ 108,620 Beginning Raw Materials $ 427,150 Beginning WIP $ 20,625 Depreciation on Factory Equip $ 202,035 Direct Labor $ 756,908 Ending Finished Goods $ 93,612 Ending Raw Materials $ 501,302 Ending WIP $ 27,941 Factory Utilities $ 312,052 Indirect Materials Used from Raw Materials $ 87,712 Insurance (70% for factory 30% for admin) $ 210,855 Marketing Expenses $ 442,807 Raw Materials Purchases $ 2,422,920 Repair and Maintenance on Factory Equip $ 129,246 Sales $ 6,420,456 Sales Supervision $ 294,485 Direct Materials Used is:
1) 2,348,768
2) 2,261,056
3) 2,422,920
4) 2,850,070
Answer:
1) 2,348,768
Explanation:
The formula to compute the direct material used is shown below:
= Opening balance of raw material + purchase - ending balance of raw material
= $427,150 + $2,422,920 - $501,302
= $2,348,768
We simply added the purchase and deduct the ending balance to the opening balance of raw material so that the accurate amount can come
A firm has four branch offices throughout the state. Following are the operating results from last year. K City G City W City S City Branch office sales $300,000 $420,000 $ 540,000 $606,000 Branch office profit 120,000 294,000 318,000 104,000 Average total assets 805,000 914,000 1,650,000 745,000 Which branch had the highest return on investment?
A. K City.
B. G City.
C. W City.
D. S City.
Answer:
City K City G City W City S
$ $ $ $
ROI
= NP x 100 120.000 x 100 294,000 x 100 318,000 x 100 104,000 x 100
ATA 805,000 914,000 1,650,000 745,000
ROI 14.91% 32.17% 19.27% 13.96%
Where ROI refers to return on invetment, NP represents net profit and ATA denotes average total assets.
City G has the highest return on investment.
Explanation:
Return on investment is calculated as the ratio of net profit to average total assets multiplied by 100.
Strawberry Mansion Company sells its special strawberry pie for $18. The total cost to produce the pie is $10. Of this amount, $2 per unit is selling costs. The total variable cost is $7. The desired profit is $8 per unit. What is the markup percentage on product cost?
Answer:
Product cost: $
Variable production cost 5.00
Variable selling cost 2.00
Total variable cost 7.00
Total fixed cost 3.00
Total cost 10.00
Desired profit 8.00
Selling price 18.00
Mark-up percentage on product cost
= 8 x 100
10
= 80%
Explanation:
In this case, we will divide the profit by the total cost in order to obtain the mark-up percentage on cost. The total cost equals $10 while the profit is $8. The division of profit by total cost multiplied by 100 gives the mark-up percentage on product cost.
80% is the markup percentage on product cost. Divide the difference between the sales price and the unit cost by the unit cost. The markup percentage can then be calculated by multiplying by 100.
Why do we calculate markup?A markup is an increase in a product's price that enables businesses to make a profit. Markups are necessary for long-term success because, without them, you won't be making a profit off of your products. Because it enables companies to properly price their products, markup calculation is crucial.
Given
Sale Price =$18
Total Cost $10
Required to find markup percentage on product cost =?
markup percentage on product cost = Sale Price - Total cost x 100/ Total cost.
markup percentage on product cost = 18-10 x 100 /10 =80%
The term "markup percentage" refers to a percentage markup over the cost price to arrive at the selling price. It is calculated as a ratio of gross profit to the unit's cost. 80% is the markup percentage on product cost.
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Laurel, Inc., and Hardy Corp. both have 10 percent coupon bonds outstanding, with semiannual interest payments, and both are currently priced at the par value of $1,000. The Laurel, Inc., bond has six years to maturity, whereas the Hardy Corp. bond has 19 years to maturity.If interest rates suddenly rise by 2 percent, what is the percentage change in the price of each bond?
Answer:
Laurel = -8.38%
Hardy = -14.85%
Explanation:
Present Price of Bond :
Laurel, Inc. = $1000
Hardy Corp. = $1000
After Percentage Price would be
Laurel, Inc = Present Value (i=6%, n=12, PMT=50, FV=1000) = $916.16
Hardy Corp = Present Value (i=6%, n=30, PMT=50, FV=1000) = $851.54
Percentage change in price
Laurel, Inc = (916.16-1000)/1000 = -8.38%
Hardy Corp = (851.54-1000)/1000 = -14.85%
Final answer:
The price of both bonds will decrease if interest rates rise by 2 percent, with the bond having a longer maturity being more affected. To calculate the specific percentage change in price, discount the bond's future cash flows by the new interest rate and compare it to the original price of $1,000 using the provided formula.
Explanation:
If interest rates suddenly rise by 2 percent, the price of each bond will decrease, because the present value of the interest and principal payments will decrease. The bond price will be impacted more for the bond with the longer maturity. To calculate the percentage change in the price of the bond, we must consider the present value of the bond's future cash flows discounted by the new market interest rate.
Since these are 10 percent coupon bonds with semiannual interest payments, a 2 percent increase in rates implies a 1 percent increase per semiannual period. The formula to find the bond price is:
Bond Price = (C × (1 - (1 + r)^(-n)) / r) + (F / (1 + r)^n)
Where:
C is the semiannual coupon payment,r is the new semiannual market interest rate,n is the number of semiannual periods remaining until maturity,F is the face value of the bond.For a 10 percent coupon bond with a face value of $1,000, the semiannual coupon payment is $50 (5 percent of $1,000).
With a 2 percent increase in annual rates, the semiannual rate becomes 6 percent (since the current market rate is 5 percent plus a 1 percent increase).
The percentage change in price would be calculated as:
Percentage Change = ((New Price - Old Price) / Old Price) × 100%
The actual calculation requires the proper input of C, r, and n for each bond and then applying the percentage change formula.
The following is the adjusted trial balance for Stockton Company. Stockton Company Adjusted Trial Balance December 31 Cash 5,146 Accounts Receivable 2,625 Prepaid Expenses 706 Equipment 13,948 Accumulated Depreciation 5,457 Accounts Payable 1,627 Notes Payable 4,184 Common Stock 1,000 Retained Earnings 8,630 Dividends 705 Fees Earned 6,510 Wages Expense 2,887 Rent Expense 816 Utilities Expense 310 Depreciation Expense 201 Miscellaneous Expense 64 Totals 27,408 27,408 Determine the net income (loss) for the period.
Answer:
Net income for the period $
Fees earned 6,510
Wages (2,887)
Rent expenses (816)
Utility expenses (310)
Depreciation expenses (201)
Miscellaneous expenses (64)
Dividend paid (705)
Net income 1,527
Explanation:
Net income is the excess of fees earned over costs and dividends paid. Thus, we will deduct all the costs and dividend paid from fees earned so as to obtain net income.
Final answer:
The net income for Stockton Company is calculated by subtracting the total expenses of $4,278 from the total revenues of $6,510, resulting in a net income of $2,232 for the period.
Explanation:
To determine the net income for Stockton Company, we need to calculate the total revenues and subtract the total expenses.
Based on the adjusted trial balance provided:
Fees Earned is the revenue, totaling $6,510.Total Expenses are the sum of Wages Expense ($2,887), Rent Expense ($816), Utilities Expense ($310), Depreciation Expense ($201), and Miscellaneous Expense ($64), which equates to $4,278.To find the net income, subtract the total expenses from total revenues:
Net Income = Fees Earned - Total Expenses = $6,510 - $4,278 = $2,232.
Therefore, the net income for the period is $2,232.
Tyell Corp. is a financial consulting firm. The firm has a varied client base. It also hires employees from various ethnicities and backgrounds. As this diversified workforce can give way to problems, the company invests time in increasing its employees' knowledge regarding one another's cultures. The employees are taught to question stereotypes and how to change their personal assumptions about other people. In the given scenario, Tyell Corp. uses _____.
a. supervisory training
b. readiness-based diversity training
c. awareness training
d. skills-based diversity training
Answer:
In the given scenario, Tyell Corp. uses
b. readiness-based diversity training
Explanation:
Diversity Training:
A type of training in which the audience are trained to accept and understand the diversity of traits and cultural backgrounds of people.
In this scenario, Tyell Corp. teaches its diversified employees to ask questions stereotypes and change their personal opinion about each other. As this training is encouraging to understand the diversification so the option a and c are not valid. The options b is valid as the consulting firm is motivating its employee to ask the questions and understand other people that is preparing the employee to accept the differences. So, they can work in harmony for the progress of the firm The option d is not valid in this scenario, as this training is focusing on readiness of the employees to accept the cultural differences but not no skills.The correct option is d. skills-based diversity training.
In the scenario provided, Tyell Corp. is engaging in activities that go beyond mere awareness of cultural differences. The company is actively teaching employees how to interact with one another in a way that respects and acknowledges these differences. This involves questioning stereotypes and changing personal assumptions, which are skills that employees can apply in their interactions.
Here's the reasoning behind the
a. Supervisory training: This type of training is specifically aimed at supervisors and focuses on management skills, legal compliance, and leadership. It does not necessarily address the broader scope of diversity within the entire workforce.
b. Readiness-based diversity training: This training is designed to prepare an organization for upcoming changes in its workforce demographics. It is more about anticipating and preparing for diversity rather than actively engaging with and managing current diversity.
c. Awareness training: This type of training raises awareness about cultural differences and the value of diversity. While it is an important first step, it does not typically involve teaching employees specific skills to change their behavior or assumptions.
d. Skills-based diversity training: This training goes beyond awareness and focuses on developing specific competencies and behaviors that foster an inclusive work environment. It involves teaching employees how to communicate effectively across cultures, how to recognize and counteract biases, and how to work collaboratively with people from different backgrounds.
Given that Tyell Corp. is actively teaching employees to question stereotypes and change personal assumptions, the company is providing skills-based diversity training. This training equips employees with the practical skills necessary to navigate a diverse workplace effectively."
Zebra Company reports the following figures for the years ending December 31, 2017 and 2016: What are the percentage changes from 2016 to 2017 for Net Sales, Cost of Goods Sold and Gross Profit, respectively? (Round your final answers to one decimal place, X.X%) A. 100%, 162.5%, 10.8% B. 37.8%, 10.8%, 162.5% C. 100%, 0.9%, 0.4% D. 162.5%, 37.8%, 10.8%
Answer:
B. 37.8%, 10.8%, 162.5%
Explanation:
1. Changes in Net Sales
We know,
Percentage changes in Net sales from previous year to current year =
[tex]\frac{2017 Net income - 2016 Net income}{2016 Net income}[/tex]
Given,
[tex]Net Sales_{2017}[/tex] = $62,000
[tex]Net Sales_{2016}[/tex] = $45,000
Therefore,
Percentage changes in Net Sales = [tex]\frac{62,000 - 45,000}{45,000}[/tex]
Percentage changes in Net Sales = 37.8% (Rounded to 1 decimal Places)
Therefore, Net sales changes 37.8% from 2016 to 2017.
2. Changes in Cost of Goods sold
We know,
Percentage changes in Cost of goods sold from previous year to current year = [tex]\frac{2017 COGS - 2016 COGS}{2016 COGS}[/tex]
Given,
[tex]COGS_{2017}[/tex] = $41,000
[tex]COGS_{2016}[/tex] = $37,000
Putting the value in the above formula,
Percentage changes in COGS = [tex]\frac{41,000 - 37,000}{37,000}[/tex]
Percentage changes in COGS = 10.8%
Therefore, Cost of goods sold changes 10.8% from 2016 to 2017.
3. Changes in Gross Profit
We know,
Percentage changes in Gross Profit from previous year to current year = [tex]\frac{2017 Gross Profit - 2016 Gross Profit}{2016 Gross Profit}[/tex]
Given,
[tex]Gross Profit_{2017}[/tex] = $21,000
[tex]Gross Profit_{2016}[/tex] = $8,000
Hence,
Percentage changes in Gross Profit = [tex]\frac{21,000 - 8,000}{8,000}[/tex]
Percentage changes in Gross Profit = 162.5%
Therefore, Gross Profit changes 162.5% from 2016 to 2017.
Laurel, Inc., has debt outstanding with a coupon rate of 5.9 % and a yield to maturity of 7.2 %. Its tax rate is 38 %. What is Laurel's effective (after-tax) cost of debt? NOTE: Assume that the debt has annual coupons. Note: Assume that the firm will always be able to utilize its full interest tax shield. The effective after-tax cost of debt is nothing%.
Answer:
effective (after-tax) cost of debt = 4.464 %
Explanation:
given data
coupon rate = 5.9 %
yield to maturity = 7.2 %
tax rate = 38 %
to find out
effective (after-tax) cost of debt
solution
we get here effective (after-tax) cost of debt that is express as
effective (after-tax) cost of debt = Yield to maturity × ( 1 - Tax rate) ..........1
put here value we get
effective (after-tax) cost of debt = 7.2% × ( 1 - 38 % )
effective (after-tax) cost of debt = 0.072 × ( 1 - 0.38 )
effective (after-tax) cost of debt = 0.072 × 0.62
effective (after-tax) cost of debt = 0.04464
effective (after-tax) cost of debt = 4.464 %
Calculating Transfer Price Burt Inc. has a number of divisions, including the Indian Division, a producer of liquid pumps, and Maple Division, a manufacturer of boat engines. Indian Division produces the h20-model pump that can be used by Maple Division in the production of motors that regulate the raising and lowering of the boat engine's stern drive unit. The market price of the h20-model is $720, and the full cost of the h20-model is $540. Required: 1. If Burt has a transfer pricing policy that requires transfer at full cost, what will the transfer price be? $
Answer:
The transfer price is $540
Explanation:
Since the transfer pricing policy of Burt stipulates that transfers should be made at full cost and the full cost is $540, thus, the transfer price is $540.
The transfer price according to Burt Inc.'s policy, which requires transferring at full cost, would be $540 for the h20-model pump.
Explanation:The subject in question involves transfer pricing, which is a concept used in managerial and cost accounting. In the scenario provided, Burt Inc.'s internal transfer pricing policy requires transfers at full cost. Therefore, the transfer price that the Indian Division would charge the Maple Division for the h20-model pump would be the full cost of the product. If Burt Inc. has a transfer pricing policy that requires transfer at full cost, then the transfer price for the h20-model pump will be the full cost of $540.
As stated: "The full cost of the h20-model is $540." This means that the transfer price from the Indian Division to Maple Division should be $540.
In​ 1982-84 dollars, the real average hourly wage rate in 2003 was ​$8.28 and in 2004​, it was ​$8.24. In 2003​, the CPI was 184.0 and in 2004​, the CPI was 188.9. Calculate the nominal wage rate in 2003 and in 2004.
Answer:
The nominal wage in 2003 = $15.22
The nominal wage in 2004 = $15.565
Explanation:
Inflation = [ ( CPI of 2003 - CPI of base year ) ÷ CPI of Base year ] × 100
= [ ( 184 - 100 ) ÷ 100 ] × 100
= 84%
Therefore,
The wage will increase by this inflation to be nominal
= 8.28 × (1.84)
= $15.23
Similarly
Inflation = [ ( CPI of 2004 - CPI of base year ) ÷ CPI of Base year ] × 100
= [ ( 188.9 - 100 ) ÷ 100 ] × 100
= 88.9%
Therefore,
The wage will increase by this inflation to be nominal
= 8.24 × (1.889)
= $15.565
Hence,
The nominal wage in 2003 = $15.22
The nominal wage in 2004 = $15.565
A polling company reported that 57% of 2302 surveyed adults said that they play basketball. Complete parts (a) through (d) below. a. What is the exact value that is 57% of 2302? The exact value is 1312.14. (Type an integer or a decimal.) b. Could the result from part (a) be the actual number of adults who said that they play basketball question mark Why or why not?
Answer and Explanation:
57% x 2302 = 1312.14 is the exact value.
This cannot be the exact value because it is in decimal whereas the answer should be a whole number to represent people which in this case are adults.
The actual value of adults who play basketball could be 1312.
During fiscal year-end 2016, Kohl’s Corporation reports the following (in $ millions): net income of $556, retained earnings at the end of the year of $12,522 and retained earnings at the beginning of the year of $12,329. Assume that there were no other retained earnings transactions during fiscal 2016. What dividends did the firm pay in fiscal year ended January 28, 2017? a. $683 millionb. $1,669 millionc. $363 milliond. $0
Answer:
c. $363 million
Explanation:
We can compute this easily by making a retained earning extract from the balance sheet at the closing date,
Opening Retained earnings $12,329
Add retained earnings for the year $556
Less: Dividends paid $363
Closing Retained earnings $12,522
Reverse calculating the information gives us c. $363 million
Hope that helps.
Two key structural enhancements should improve the coordination of multinational forces. They are a(n) _____ and coordination centers.
Answer:
The correct word for the blank space is: Liaison network.
Explanation:
A liaison network is formed when countries contact others to fulfill their needs. Those countries set up a communication network that allows them to be in touch efficiently to break the distance barriers and to allow information to be shared at the same peace they happen.
For Tax Year 2019, amounts are indexed using the Chained Consumer Price Index for All Urban Consumers ("chained CPI"). What impact will this have on 2019 tax returns?
a. Taxpayers will end up paying more tax on 2019 tax returns.
b. Taxpayers will not pay any tax on 2019 tax returns.
c. Using the chained CPI, taxpayers will pay less tax on 2019 tax returns.
d. Using the chained CPI will not have a notable impact on 2019 tax returns.
Answer:
d. Using the chained CPI will not have a notable impact on 2019 tax returns.
Explanation:
when amounts are indexed using the chanined consumer price index, they increase slowly because there is a period to period connection in the consumer price index.
Therefore, The use of the chained consumer price index would have not have any significant impact on 2019 tax returns.
how did US policy makers seek to stimulate the economy and integrate?
Increasing trade (Japan) and railroads (transcontinental railroad). The development of railroads continued the trend of encroaching on natives' lands.
Explanation:
The American political figures stimulated the economy and introduced the Trans-Mississippi Railroad into the nation through the transcontinental railway, creating more jobs and more revenue for the region. It boosted commerce and investment in Mississippi and increased investments in San Francisco from 7.4 million to 49 million dollars.
The current state of the United States The US negotiators have instead focused their efforts on negotiating smaller regional and reciprocal trade and investment negotiations in the midst of a stagnant WTO process. Further combined with those of Canada and Mexican nations, the US Free Trade Agreement (NAFTA, 1994)
Jason, Inc. produces leather purses. Jason has developed a static budget for the first quarter, based on 20,000 direct labor hours. During the quarter, the actual activity was 22,000 direct labor hours. Data for the first quarter are summarized as follows: Static budget (20,000 hours) Actual costs (22,000 hours) Direct materials cost $ 80,000 $ 87,000 Direct labor cost 160,000 174,000 Building rental 48,000 50,000 Total $288,000 $311,000 What is the flexible budget amount for the first quarter?
a.$311,000
b.$261,000
c.$288,000
d.$312,000
e.Cannot be determined.
To determine the flexible budget for Jason, Inc., variable costs for direct materials and labor were calculated per hour and then multiplied by actual hours worked. Fixed costs for building rental were added to these variable costs to get the total. The flexible budget amount for the first quarter is $312,000. The correct option is d.$312,000.
To calculate the flexible budget amount for Jason, Inc., which produces leather purses, we must adjust the static budget based on actual activity levels. A flexible budget calculates what costs should have been for the actual level of activity during the period. Since we have the actual costs for 22,000 hours and the budgeted costs for 20,000 hours, we need to determine the variable and fixed components of the costs.
The given costs are as follows:
Direct labor cost
Building rental
Generally, direct materials and labor costs are variable costs, meaning they change with the level of production activity. The building rental is a fixed cost, which remains constant regardless of the activity level.
We can estimate the variable cost per labor hour for materials and labor by dividing the static budget costs by the budgeted labor hours. The fixed cost for building rental doesn't change and remains at $48,000.
Now, let's calculate the flexible budget:
1. Direct materials cost per hour = $80,000 / 20,000 hours = $4 per hour
2. Direct labor cost per hour = $160,000 / 20,000 hours = $8 per hour
3. Total variable cost per hour = Direct materials cost per hour + Direct labor cost per hour = $4 + $8 = $12 per hour
The flexible budget for variable costs at 22,000 hours would therefore be $12 per hour * 22,000 hours = $264,000. Adding the fixed cost of building rental, we get $264,000 (variable costs) + $48,000 (fixed costs) = $312,000.
Thus, the flexible budget amount for the first quarter is $312,000
Oriole Company sells office equipment on July 31, 2022, for $20,280 cash. The office equipment originally cost $78,950 and as of January 1, 2022, had accumulated depreciation of $38,410. Depreciation for the first 7 months of 2022 is $4,410. Prepare the journal entries to (a) update depreciation to July 31, 2022, and (b) record the sale of the equipment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Answer:
a. The journal entries to update depreciation to July 31, 2022
Debit Depreciation expense $4,410
Credit Accumulated depreciation account $4,410
b.The entry records the sale of the equipment
Debit Cash $20,280
Debit Accumulated depreciation account $42,820
Debit Loss on asset disposal $15,850
Credit Equipment asset $78,950
Explanation:
a. The journal entries to update depreciation to July 31, 2022
Debit Depreciation expense $4,410
Credit Accumulated depreciation account $4,410
b.
Accumulated depreciation on July 31, 2022 = $38,410 + $4,410 = $42,820
Carrying amount of the equipment = Originally cost of the equipment - Accumulated depreciation = $78,950 - $42,820 = $36,130
Sales price - Carrying amount of the equipment = $20,280 - $36,130 = -$15,850 <0
The company recognizes loss on the sale $15,850
The entry records the sale of the equipment
Debit Cash $20,280
Debit Accumulated depreciation account $42,820
Debit Loss on asset disposal $15,850
Credit Equipment asset $78,950
The reorder point r = dm is defined as the lead-time demand for an item. In cases of long lead times, the lead-time demand and thus the reorder point may exceed the economic order quantity Q*. In such cases, the inventory position will not equal the inventory on hand when an order is placed, and the reorder point may be expressed in terms of either the inventory position or the inventory on hand. Consider the economic order quantity model with D = 5,000, Co = $32, Ch = $2, and 250 working days per year. Identify the reorder point in terms of the inventory position and in terms of the inventory on hand for each of the following lead times:
a. 5 days
b. 15 days
c. 25 days
d. 45 days
Answer:
Please find the detailed answer as follows:
Explanation:
Daily Demand
Daily Demand = Annual Demand / Working days per year
= 5,000 units / 250 days
= 20 units per day
Economic Order Quantity [EOQ]
Economic Order Quantity [EOQ] is calculated by using the following formula
Economic Order Quantity = [(2 × Annual Demand x Ordering Cost) / Carrying Cost Per Order]½
Economic Order Quantity = [(2 × Annual Demand x Ordering Cost) / Carrying Cost Per Order] ½
= [(2 × 5,000 x 32) / 2]½
= [320,000 / 2] ½
= [160,000]½
= 400 Units
Reorder point and inventory on hand if the lead time is 5 Days
Re-order Point = 100 Units [5 Days x 20 units per day]
Inventory position and inventory on hand = 100 units [Since, the Re-order Point is less than the EOQ]
Reorder point and inventory on hand if the lead time is 15 Days
Re-order Point = 300 Units [15 Days x 20 units per day]
Inventory position and inventory on hand = 300 units [Since, the Re-order Point is less than the EOQ]
Reorder point and inventory on hand if the lead time is 25 Days
Re-order Point = 500 Units [25 Days x 20 units per day]
Inventory position and inventory on hand = 400 units [Since, the Re-order Point is greater than the EOQ]
Reorder point and inventory on hand if the lead time is 45 Days
Re-order Point = 900 Units [45 Days x 20 units per day]
Inventory position and inventory on hand = 400 units [Since, the Re-order Point is greater than the EOQ]
The reorder point can vary based on lead time and can be expressed in terms of inventory position or inventory on hand. Calculating the reorder point for different lead times using the economic order quantity model.
Explanation:The reorder point can be expressed in terms of the inventory position or the inventory on hand. In the economic order quantity model with D = 5,000, Co = $32, Ch = $2, and 250 working days per year, we can calculate the reorder point for different lead times:
For a lead time of 5 days, the reorder point in terms of inventory position is 5 * 5000 / 250 = 100 units and in terms of inventory on hand is 5 * 5000 / 250 + Q* = 100 + Q* units.For a lead time of 15 days, the reorder point in terms of inventory position is 15 * 5000 / 250 = 300 units and in terms of inventory on hand is 15 * 5000 / 250 + Q* = 300 + Q* units.For a lead time of 25 days, the reorder point in terms of inventory position is 25 * 5000 / 250 = 500 units and in terms of inventory on hand is 25 * 5000 / 250 + Q* = 500 + Q* units.For a lead time of 45 days, the reorder point in terms of inventory position is 45 * 5000 / 250 = 900 units and in terms of inventory on hand is 45 * 5000 / 250 + Q* = 900 + Q* units.Learn more about Reorder point here:
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