Answer:
A. $192,900
Explanation:
In order to compute the total operating expenses for 2018, first, we have to calculate the variable cost per miles and the fixed cost which is shown below:
Variable cost per miles = (High Operating cost - low operating cost) ÷ (High miles - low miles)
= ($225,150 - $180,000) ÷ (85,000 miles - 50,000 miles)
= $45,150 ÷ 35,000 miles
= $1.29 per miles
Now the fixed cost equal to
= High operating cost - (High miles × Variable cost per miles)
= $225,150 - (85,000 miles × $1.29)
= $225,150 - $109,650
= $115,500
Now the estimated operating expenses would be
= Fixed cost + expected miles × variable cost per miles
= $115,500 + 60,000 × 1.29
= $115,500 + $77,400
= $192,900
Estimated OC for Really Fast Delivery Services is $192,900
Variable cost as per miles = (High OC - Low OC) / (High miles - Low miles)
Variable cost as per miles = [225,150 - 180,000] / [85,000 - 50,000]
Variable cost as per miles = 45,150 / 35,000
Variable cost as per miles = $1.29 per miles
Fixed cost = High OC - (High miles × VC per miles)
Fixed cost = $225,150 - (85,000 × $1.29)
Fixed cost = $115,500
Estimated OC = Fixed cost + [Expected miles × VC per miles]
Estimated OC = $115,500 + [60,000 × 1.29]
Estimated OC = $115,500 + $77,400
Estimated OC = $192,900
So, Option "A" is the correct answer to the following question.
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Jack purchased 100 shares of Ford stock on April 22, 2018. If he sells the stock on April 21, 2019, what is the character of the sale?
Answer:
The sale in this situation is a trading.
Explanation:
The buying and selling of stocks for short periods of time is termed trading. This is usually dependent on the stock prices but also on the holding period which goes from 3days to 364days. This period starts as from 3 days because of the 3-day settlement rule which requires that the brokerage firm clears all payments within these days, either for stock bought or sold.
Any stock held beyong 364 days becomes long term gain and such sale is considered investing.
Metlock, Inc. is considering these two alternatives to finance its construction of a new $1.28 million plant: (1) Issuance of 128,000 shares of common stock at the market price of $10 per share. (2) Issuance of $1.28 million, 8% bonds at face value.If the income before interest and tax is$1,515,000 for issue stock and issue bond. Calculate expenses from bonds.
Answer:
Interest expenses from issuing bond = $102,400
Explanation:
Generally, Bond creates interest expenses for a company. Issuing stock will not create any interest. The tax is low due to paying interest when issuing bond. Since the bond does not have any specific maturity period, the interest expense will be for 1 year only.
Interest expense = The value of bond × Annual interest rate × number of periods
Given,
The value of bond = $1.28 million = $1,280,000
Annual interest rate = 8% = 0.08
Number of periods = 1
Therefore, interest expense = $1,280,000 × 0.08 × 1 = $102,400
Final answer:
To calculate the expenses from bonds, multiply the total bond amount of $1.28 million by the 8% interest rate, resulting in an annual interest expense of $102,400.
Explanation:
The student is asking how to calculate the expenses from bonds for a company considering issuing bonds to finance a new plant. In this scenario, Metlock, Inc. is looking at the option of issuing bonds with an 8% interest rate to raise $1.28 million. To calculate the expenses from the bonds, we multiply the total amount of the bonds by the interest rate, which represents the annual interest payments that the company will need to make to the bondholders.
The calculation would be as follows:
Identify the total amount of bonds to be issued: $1.28 million.Multiply by the interest rate (8% or 0.08): $1.28 million × 0.08.Calculate the annual interest expense: $102,400.Therefore, the annual interest expense from the bonds would be $102,400. This is the amount Metlock, Inc. would pay annually to the bondholders for the use of their funds.
Assume Vandell, a individual taxpayer, is in a 25 percent tax bracket. He invests in Otay Mesa Water District Bonds that pay 4.5 percent interest. What interest on a taxable bond would provide the same after-tax return to Vandell?
Answer:
Explanation:
Otay Mesa Water District Bonds are tax free bonds.
They are giving 4.5% interest and Vandell's after tax return is 4.5%.
So we have to calculate a pre-tax return that would be providing the same after tax-return as of Otay Mesa Water District Bonds. Let's assume this return to be x%
Vandell is in the 25% tax bracket, so Vandell's interest will be taxed at 25%.
So,
x ( 100 % - 25 % ) = 4.5
x = 4.5/0.75
x = 6
Final answer:
To find the interest on a taxable bond that provides the same after-tax return to Vandell as a tax-free municipal bond, apply the formula Taxable interest = Tax-free interest / (1 - Tax rate) with Vandell being in a 25% tax bracket and the tax-free bond paying 4.5% interest to calculate the taxable interest as 6%.
Explanation:
To find the interest on a taxable bond that provides the same after-tax return to Vandell as the tax-free municipal bond, you can use this formula: Taxable interest = Tax-free interest / (1 - Tax rate)
Given that Vandell is in a 25% tax bracket and the tax-free municipal bond pays 4.5% interest, the taxable interest that would provide the same after-tax return would be 6%.
Therefore, the interest on a taxable bond that would provide the same after-tax return to Vandell is 6%.
Drussden Inc., a multinational corporation, has decided to hire military veterans. This, the company feels, would not only set a good example of a diverse workplace among its peers and customers, but also let it derive great benefits from this unique talent pool. In implementing this recruiting strategy, Drussden Inc. should expect:
a. an increase in expenses as the company will need to pay a much higher compensation to these employees.
b. a significant decrease in its hiring-related costs.
c. to require sufficient time for training their HR personnel on how to appropriately interview these potential employees.
d. to have a more rigid and harsh workplace environment than before.
Answer:
The correct answer is letter "B": a significant decrease in its hiring-related costs.
Explanation:
Education received in the military -besides being disciplinary- allows individuals to acquire knowledge in diverse fields because soldiers are prepared to face different difficult situations inf front of major events: war. Hiring veterans in a company could represent a big advantage for the organization since some of them could have received even more specialized education compared to the duties they will perform in the firm. By this, that company should expect to reduce the costs of hiring high-skill personnel.
Drussden Inc. should expect a significant decrease in its hiring-related costs and may need to train their HR personnel on how to appropriately interview military veterans.
Explanation:In implementing the recruiting strategy to hire military veterans, Drussden Inc. can expect a significant decrease in its hiring-related costs as military veterans often come with valuable skills, training, and experience that can directly translate to the workplace. Additionally, military veterans often have strong work ethic, discipline, and leadership skills, which can contribute to a more productive and efficient workplace environment.
While the company may need to invest some time and resources to train their HR personnel on how to appropriately interview these potential employees, it is a worthwhile investment considering the benefits they can bring to the company.
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During the initial homeowner meeting, the designer ascertains the homeowner’s preferences, financial constraints, and any special needs.
A. TRUE
B. FALSE
Financial instruments Aa Aa Financial instruments are assets that have a monetary value or record a monetary transaction. To coordinate the exchange of capital between borrowers and lenders, financial instruments trade in the financial markets. These inancial instruments can be categorized on the basis of their issuers, maturity, risk, and other factors Identify the financial instruments based on the following descriptions Description Financial Instrument Issued by nonfederal government entities, these financial instruments are debt securities that fund their capital expenditures. They are exempt from most taxes imposed in the area where the securities are issued State and local government bonds Issued by money-centered financial firms, these short- or Certificates of deposit medium-term insured debt instruments pay higher interest than a regular savings account. They are low-risk instruments and have low returns These financial instruments are investment pools that buy such short-term debt instruments as Treasury bills (T-bills), certificates of deposit (CDs), and commercial paper. They can be easily liquidated Issued by corporations, these financial instruments give their holders a class ownership in a company. They are riskier than bonds but less risky than the general class of ownership Money market mutual funds Preferred stocks Which of the following are money market instruments? Check all that apply Corporate bonds Common stocks Preferred stocks X Commercial paper
Answer:
Issued by nonfederal government entities, these financial instruments are debt securities that fund their capital expenditures. They are exempt from most taxes imposed in the area where the securities are issued. - State and local government bonds
Issued by money-centered financial firms, these short- or medium-term insured debt instruments pay higher interest than a regular savings account. They are low-risk instruments and have low returns. - Certificates of deposit
These financial instruments are investment pools that buy such short-term debt instruments as Treasury bills (T-bills), certificates of deposit (CDs), and commercial paper. They can be easily liquidated. - Money market mutual funds
Issued by corporations, these financial instruments give their holders a class ownership in a company. They are riskier than bonds but less risky than the general class of ownership. - Preferred stocks
Commercial paper is a money market instrument.
Explanation:
State and government bonds are generally safe bonds that promise periodic interest payments. They repay face value by the maturity date listed. These bonds have the purpose of securing funds for government investments. Being backed up by the government, these bonds are usually deemed as secure.
Certificates of deposit is a well known financial firm product, giving the incentive to clients to leave their deposit untouched. These interests are usually low, however, they are nearly risk-free. It is up to each bank or firm to determine the exact terms of the CD offer, as it may clash with other financial products.
Money market mutual funds are funds that are specialized for investing in financial instruments that are extremely liquid, such as cash, cash equivalents etc. Because of the significant liquidity and low level of risk associated, they are popular with funding money market instruments.
Preferred stocks refer to having equity in a firm/company through the possession of these stocks. In contrast to common stock, preferred stockholders have a priority when it comes to claiming dividends. Preferred stockholders have little to no voting and decision rights in company management.
Commercial paper is a money market instrument that backs up short-term debt in a firm, so it is issued by one. Typically, it is used for inventories and short-term obligations (liabilities). Commercial papers are usually not backed up by a collateral, meaning only reputable companies with good debt ranking can issue them.
Joshua started a tutoring website. After a few months, a publishing company filed a lawsuit against his company for copyright infringement. Joshua had to shut down his business and lost all his personal assets in the process.This is an example of which of the following:a) a partnershipb) a proprietorshipc) an LLP/LLCd) a corporation
Answer:
b. a proprietorship
Explanation:
A proprietorship -
It refers to the most simplest business form , where one can start or operate an business , is referred to as a proprietorship .
A sole proprietorship refers to the person , who can operate a business , and is responsible for any type of loss or debt , is referred to as a sole proprietorship .
Hence , from the given scenario of the question,
The correct option is b. a proprietorship .
Final answer:
Joshua's loss of personal assets due to a lawsuit indicates that his business was a proprietorship, which involves unlimited liability for the owner.
Explanation:
When considering the situation where Joshua had to shut down his tutoring website and lost all his personal assets due to a lawsuit for copyright infringement, the type of business structure that best fits this scenario is a proprietorship. In a sole proprietorship, there is unlimited liability, which means the owner is personally responsible for all of the debts and obligations of the company. If the business fails, the proprietor could potentially lose personal assets, as was the case for Joshua. This contrasts with structures like corporations and limited liability companies (LLCs), which provide limited personal liability protection for their owners' personal assets.
For the past year, LaPrade Company had fixed costs of $70,000, a unit variable costs of $32, and a unit selling price of $40. For the coming year, no changes are expected in revenues and costs except that property taxes are expected to increase by $10,000.
a. Determine the break-even sales (in units) for the past year.
b. Determine the break-even sales (in units) for the coming year.
Answer:
a. Break Even points in past year 8,750 units
b. Break Even point in coming year 10,000 units
Explanation:
The breakeven sales in units is calculated by dividing the fixed costs by the contribution margin of each unit of sales.
The selling price is $ 40 and the variable costs per unit are $ 32 so the contribution margin per unit is $ 8.
For past year
To cover the fixed costs of $ 70,000 the breakeven point is calculated as:
$ 70000/ $ 8 = 8.750 units.
For coming year
The fixed costs are increasing by the property taxes increase of $ 10,000 so the fixed costs are $ 80,000
Break even point is calculated as $ 80,000/$8 = 10,000 units.
Residual Income The Avila Division of Maldonado Company had operating income last year of $112,300 and average operating assets of $760,000. Maldonado's minimum acceptable rate of return is 10%. Required: 1. Calculate the residual income for the Avila Division. Round your answer to the nearest dollar. Residual income $ 2. Was the ROI for the Avila Division greater than, less than, or equal to 10%?
The residual income for the Avila Division is $36,300, and the ROI for the division is 14.78%, which is greater than the minimum acceptable rate of return of 10%.
The student is asking how to calculate the residual income for the Avila Division and whether the return on investment (ROI) was greater than, less than, or equal to 10%. Residual income is calculated by subtracting the product of the average operating assets and the minimum acceptable rate of return from the operating income.
Step 1: Determine the minimum required return: $760,000 (average operating assets) imes 10% (minimum rate of return) = $76,000.
Step 2: Calculate the residual income: $112,300 (operating income) - $76,000 (minimum required return) = $36,300.
Regarding the ROI for the Avila Division, we calculate it as follows: $112,300 (operating income) / $760,000 (average operating assets) = 14.78%. Hence, the ROI is greater than the 10% minimum acceptable rate of return.
"A respondent of a survey is asked whether their most recent dining experience was excellent, good, fair, or poor. The person indicates that the experience was "good". This is an example of ________ data."
Answer:
The correct word for the blank space is: Ordinal.
Explanation:
Ordinal data is one of the four (4) types of measurement scales that values in order of importance the rating that can be provided over a subject. However, the difference between each of the rates is not clear. Usually, this approach aims to measure comfort, experience or satisfaction.
The respondent indicating their dining experience was "good" is providing ordinal scale data, which allows ranking without measurable differences. This differs from quantitative discrete data, which involves countable numbers, and qualitative data, which includes subjective insights gathered through more open questions.
Explanation:The survey data collected about a person's dining experience, where the responses range from "excellent" to "poor," exemplifies ordinal scale data. Ordinal scale data allows for ranking of responses, but the differences between the ranks are not measurable. In our example, the response of "good" indicates a preference that is higher than "fair" or "poor" and lower than "excellent," but we cannot quantify the difference between these rankings.
Survey questions using the Likert-response scale also generate ordinal scale data. For instance, when a question asks for the level of agreement to a statement with options ranging from "strongly disagree" to "strongly agree," respondents rank their level of agreement without specifying the magnitude of difference between the choices.
In contrast, quantitative discrete data would involve numerical responses that can be counted, such as the number of tickets sold to a concert. Qualitative data, on the other hand, includes subjective responses that contain more in-depth opinions, beliefs, or feelings, often gathered through open questions or content analysis.
Which of the following is a situational characteristics that influences the choice of leadership style for a supervisor?
a) tolerance for ambiguity
b) time available
c) need for independence
d) Interest in solving a problem
b) Time available is a situational characteristics that influences the choice of leadership style for a supervisor.
It impacts how a supervisor can manage their leadership style. For example:
If a supervisor has limited time, they may adopt a more authoritative style to make quick decisions.Conversely, if they have ample time, they may involve team members in decision-making and adopt a collaborative approach.Understanding the context of the timeline can lead to more effective leadership choices, as it directly relates to how decisions are made and how teams interact with each other in a workplace environment.
identify the order in which a manufacturer would prepare the following budgets. Also note whether each budget is an operating budget or a financial budget.Select the number from 1 to 7 to indicate first to last in preparation and then select the type of budget. Order of preparation Type of budget a.Budgeted income statementb.Production budgetc.Combined cash budgetd.Budgeted balance sheet e.Direct materials budget f.Cash payments budgetg.Sales budget
Answer:
1.(g), 2. (b), 3. (e) ,4.(a), 5. (f) ,6.( c), 7. (d)
Explanation:
1. .Sales budget (g)
2.Production budget (b)
3.Direct materials budget (e)
4.Budgeted income statement (a)
5.Cash payments budget (f)
6.Combined cash budget ( c)
7.Budgeted balance sheet (d)
Which of the following exemplifies a sociocultural component in the general organizational environments?
A) New FDA regulations on food handling and storage in fast food chains
B) Increase in the number of fast food chains offering similar menus
C) Increasing popularity of weight management programs
D) Shortage of spice suppliers
Answer:
C) Increasing popularity of weight management programs
The option that exemplifies a sociocultural component in the general organizational environments is C) Increasing popularity of weight management programs. This reflects societal changes towards health and has implications for businesses, especially in the fast food industry.
The question which exemplifies a sociocultural component in the general organizational environments is: C) Increasing popularity of weight management programs. Sociocultural factors refer to societal and cultural aspects that can influence an organization. This includes public attitudes, trends, traditions, values, and lifestyle changes.As for the options given:
A) New FDA regulations relate to legal or regulatory aspects of the environment.
B) Increase in the number of fast food chains is indicative of competitive factors in the industry.
C) Increasing popularity of weight management programs is a sociocultural shift as it reflects the changing attitude and lifestyle preferences of society towards health and fitness.
D) Shortage of spice suppliers is related to supply-chain factors within the economic environment.
The increase in awareness and participation in weight management programs reflects how societal concerns about health and obesity are affecting consumer behavior and influencing businesses, such as fast food chains, to adapt by offering healthier options or emphasizing caloric information. This aligns with the concepts raised in the reference material about the sociocultural impacts of the fast food industry and the need for more nutrient-dense whole foods.
Controlling costs across the whole value chain often requires a trademinusoff between the individual elements of the value chain. "A. True
B. False"
Answer:
A. True
Explanation:
Value chain analysis is an analysis method used to systematically reveal, define and analyze the strengths and weaknesses in this chain in the business philosophy, which accepts that the operations applied in a certain order to the services or products offered by an organization, that is, thanks to a value chain. How to increase the value, which critical activities and factors to consider for this, how to achieve low cost and differentiation are systematically explained by this analysis by comparing with the competitors' abilities and activities. The analysis of all the indicators is important here. If the focus is cost analyzing or controlling there must be consideration about trademinusoff which happens among individual elements of value chain like inbound, outbound logistics, operations, marketing and services, Human Resources, procurement, technological development and firm infrastructure.
A common size analysis requires the representation of financial statement data relative to a single financial statement item (or base account or value). What is the most commonly used base item for a common size balance sheet
Answer:
The correct answer is letter "C": Total assets.
Explanation:
Total assets represent the total amount of assets that an individual or entity possesses to obtain a return from them. In accounting, it is obtained by subtracting the previous period total assets minus the current period total assets. They appear in the Balance Sheet of a company and is the baseline or common base item to which other line items are expressed.
In a common size analysis of a financial statement, the most commonly used base item for a balance sheet is total assets. All other items on the balance sheet are calculated as a percentage of total assets, providing a clear baseline for comparison.
Explanation:In a common size analysis of a financial statement like a balance sheet, the most commonly used base item is total assets. This is because total assets encompass all resources owned by a business which can generate future economic benefits, thus providing a comprehensive baseline for comparison.
Total assets are used to calculate percentages for all other items on the balance sheet. For example, if accounts receivable constituted $5,000 and total assets amounted to $50,000, accounts receivable would be represented as 10% ($5,000/$50,000) on the common size balance sheet. This method allows for easy comparability across organizations and time periods.
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You receive a report that 68% of your target market has been exposed to your ad campaign during a given period of time. The information in the report relates to ________.
A) reach
B) frequency
C) impact
D) engagement
E) qualitative value
Answer:
The answer is "Option A"
Explanation:
The reach tends to refer to the number of persons or households linked to at minimum one channel over a given time by applying the figures of media and marketing research and it is, important because it is used to attack important ads, help you understand, and other choices are not correct that can be described as follows:
Frequency, It is used to gather data.Impact, It is a method, that is used to find troublesome effects.Engagement, It is used for employee effort.Qualitative value, It is used in research purposes.When firms grow larger, they sometimes add many additional layers of managers between the top executives and the entry-level employees. Because these managers do not actually produce any output themselves, we expect more layers of management to lead to _____.(A) a diminishing marginal return.(B) increasing marginal returns.(C) diseconomies of scale(D) economies of sealed
Answer:
The correct answer is letter "C": diseconomies of scale.
Explanation:
Diseconomies of scale is a point where a business no longer experiences a decrease in cost per unit of output. Rather, after this point cost per unit tend to increase. Typically, diseconomies of scale arise when the increase in production represents an increase in the average unit per cost.
Sylvio purchased an apartment building as an investment in January 2008 for $383,500 and sold it for $475,000 in 2014. He reported $68,436 of allowed accumulated straight-line depreciation. If Sylvio is in the highest tax bracket for ordinary income, how much of his gain qualifies for preferential tax treatment? (Points : 1)
$0.
$68,436.
$91,500.
$159,936.
Answer:
Hi there!!
$159,936
Explanation:
Sales proceeds $475,000
Less: book value
Cost $383,500
Accumulated depreciation $(68,436) $315,064
Gain $159,936
Since Sylvio has maintained its investment for more than a year, the tax law allows reducing the tax on capital gain although the form of calculation of the profit is the same as for common cases.
In this case tax rate drops from 39.6% to 20%.
Joker stock has a sustainable growth rate of 7 percent, ROE of 10 percent, and dividends per share of $1.20. If the P/E ratio is 15.0, what is the value of a share of stock?
Answer:
P/E ratio = Market price per share
Earnings per share
15 = Market price per share
$4
Market price per share = 15 x $4 = $60
Growth rate = Retention rate x ROE
0.07 = Retention rate x 0.10
0.07 = Retention rate
0.10
Retention rate = 0.7 = 70%
Dividend pay-out ratio = 100% - 70%
Dividend pay-out ratio = 30%
Earnings per share = 100/30 x $1.20 = $4
Explanation:
In this case, we will apply the formula of price-earnings ratio, which is market price per share divided by earnings per share. The P/E ratio was given while the earnings per share is derived. The market price per share becomes the subject of the formula.
In order to determine the earnings per share, we need to obtain the retention ratio by applying the formula of growth rate. In this case, growth rate and ROE were provided in the question with the exception of retention rate. Thus, the retention rate is made the subject of the formula. Having obtained the retention rate, we will now obtain the dividend payout ratio which is 100% minus retention rate.
Then, we will obtain the earnings per share by dividing 100 by the pay-out ratio multiplied by the dividend per share.
The Lantern (a news clipping service) is considering an artificial intelligence (AI) product. Rather than manually clipping and photocopying articles of interest and mailing them to its clients, employees electronically input stories from most widely circulated publications into a database. Each new issue is searched for keywords, such as a client's company name, competitors' names, type of business, and the company's products, services, and officers. When matches occur, affected clients are instantly notified via an online network. If the story is of interest, it is electronically transmitted, so the client often has the story and can prepare comments for follow-up interviews before the publication hits the street. The manual process has fixed costs of$380,000 per year and variable costs of $6.10 per clipping mailed. The price charged to the client is $9.00 per clipping. An AI process can improve client targeting. The new service has fixed costs of $1,100,000 per year and variable costs of $2.15 per story electronically transmitted to the client.The present volume of business is 235,000 clippings per year. Many of the clippings sent with the current process are not of interest to the client or are multiple copies of the same story appearing in several publications. The new AI process believes that by improving service and by lowering the price to $5.7 per story, the AI will increase volume to 740,000 stories transmitted per year.If the forecasted increase in business is too optimistic, at what volume will the new AI service break even?
Answer:
Hi there!
Break-even volume: 30,986 clippings per year
Explanation:
What you need to do first is to calculate the contribution margin (CM) wich represents the portion of sales revenue that is not consumed by variable costs and so contributes to the coverage of fixed costs. Is calculated as selling price (P) per unit minus the variable cost (V) per unit.
CM = P - V
CM = 5.7 - 2.15
CM = 3.55
You can now calculate the break-even point as
[tex]x = \frac{TFC}{P-V}[/tex]
TFC is Total Fixed Costs,
P is Unit Sale Price, and
V is Unit Variable Cost.
[tex]x=\frac{110,000}{5.7-2.15} \\\\x=\frac{110,000}{3.55}\\ \\x= 30,985.92[/tex]
x ≅ 30,986
Determine the treatment of a loss on rental property under the following facts: Basis $650,000 FMV before the loss 800,000 FMV after the loss 200,000
Answer:
$600,000
Explanation:
The loss on the rental property in the given question will be lower of the following two limits:
1. Decline in FMV of the property
2.Basis amount
Decline in FMV of the property=FMV before the loss-FMV after the loss
=800,000-200,000
=$600,000
Basis=$650,000
So based on the above discussion, the loss in the given scenario shall be $600,000
Final answer:
Treatment of a loss on rental property involves recognizing it as a capital loss, which can be used to offset capital gains and reduce taxable income.
Explanation:
Loss on rental property treatment: When a loss occurs on rental property, it is treated as a capital loss. In this case, with a basis of $650,000 and a post-loss fair market value of $200,000, the loss incurred would be $450,000 ($650,000 - $200,000).
Capital Loss Calculation Example: Capital loss = Basis - FMV after the loss = $650,000 - $200,000 = $450,000.
Capital Loss Treatment: This loss can be used to offset capital gains and reduce taxable income in the year the loss occurred.
The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores. What is the total amount of the costs listed above that are NOT direct costs of the Northridge Store?
Answer:
See explanation section
Explanation:
Apart from Cosmetics Department sales commissions--Northridge Store, Cosmetics Department cost of sales--Northridge Store, Cosmetics Department manager's salary--Northridge Store, all the other costs are not direct cost. Corporate office salaries or expenses can not be a direct cost for a divisional or regional offices. Lease cost is not for Northridge store, therefore, it is not a direct cost. Store security, Store manager's salary, and heating expenses for Northridge are indirect costs.
Income allocation in a partnershipKramer and Knox began a partnership by investing $60,000 and $80,000, respectively. During its first year, the partnershipearned $160,000. Prepare calculations showing how the $160,000 income should be allocated to the partners under eachof the following three separate plans for sharing income and loss:(1) the partners failed to agree on a method to share income; (2) the partners agreed to share income and loss inproportion to their initial investments (round amounts to the nearest dollar); and (3) the partners agreed to share incomeby granting a $50,000 per year salary allowance to Kramer, a $40,000 per year salary allowance to Knox, 10% interest ontheir initial capital investments, and the remaining balance shared equally.
Answer:
1. $68,571 on Kramer and $91,429 on Knox
2. $68,571 on Kramer and $91,429 on Knox
3. $84,000 on Kramer and $76,000 on Knox
Explanation:
1. In absence of the agreement on how the profit or loss will be allocated, we will use the ration based on the capital balances of the partners.
Kramer $60,000
Knox $80,000
Total $140,000
The allocation would be:
Kramer $160,000 x (60,000/140,000) = $68,571
Knox $160,000 x (80,000/140,000) = $91,429
2. The partners agreed to divide profit based on the initial investment of the partners.
Kramer $60,000
Knox $80,000
Total $140,000
The allocation would be:
Kramer $160,000 x (60,000/140,000) = $68,571
Knox $160,000 x (80,000/140,000) = $91,429
3. The partners agrred to allocate the profit based on the salaries given to the partners, 10% interest and divide the excess equally.
Kramer Knor Total
Salary 50,000 40,000 90,000
Interest 6,000 8,000 14,000
Excess 28,000 28,000 56,000
TOTAL 84,000 76,000 160,000
Interest
Kramer $60,000 x 10% = $6,000
Knox $80,000 x 10% = $8,000
Bravo Automotive provide repair services for $250 on account. What account will be debited?
Answer:
The correct answer is: Accounts receivable.
Explanation:
Accounts receivable is an accounting term used to refer to the money that is owed to a company by its customers. The company that may be individuals or corporations are the debtors since they owe money for the goods or services provided by the company on credit. Accounts receivable are recorded as a current asset in the Balance Sheet.
For an individual business owner, which of the following would typically be classified as a capital asset for federal income tax purposes? a. Marketable securities. b. Inventory. c. Machinery and equipment used in a business. d. Accounts receivable.
Answer:
a. Marketable securities
Explanation:
A(correct one). Capital assets are able to cover all marketable securities unless the taxpayer becomes a dealer.
B -incorrect. The inventory is not such as capital although it is asset. It is fixed asset type
C-incorrect. The assets which are depreciable must be excluded from capital assets group. Because they will be fixed ones again.
D-incorrect. Accounts receivable of a business are excluded from the definition of capital assets. because they are the other section of accounting elements and not considered as asset at all.
The company wants to increase the capacity of the plant by 500,000 units at a fixed cost of $2 million. The fixed cost will be incurred this year. Should They do it
Answer:
If the company wants to increase the capacity of the plant at a cost of $ 1,000,000 ($ 500,000 x $ 2) the first thing to see is what are the revenues that will allocate the costs, if these are durable (by means of a contract)
It would also have to evaluate what the variable costs are, if these are added to the fixed costs, there should be a profit margin, so to know it first you should know the level of income.
According to media scholar and critic Ben Bagdikian, in 2004 approximately ______ corporations owned a majority of media outlets in the United States. A. 5,000 B. 50 C. 500 D. 5
Answer:
Option "D" is the correct answer.
5 corporations
Explanation:
An American Ben Bagdikian was reporter, mainstream media reviewer and broadcaster, and college professor. Ben Bagdikian helped contribute to over 200 domestic publications and newspapers all across his career.Approximately 5 companies controlled a plurality of media outlets in the United States in 2004, according to media expert and analyst Ben Bagdikian.The following information ($ in millions) comes from a recent annual report of Amazon, Inc.: Net sales $10,760 Total assets 4,476 End of year balance in cash 1,208 Total stockholders' equity 355 Gross profit (Sales - Cost of Sales). 2,560 Net increase in cash for the year 28 Operating expenses 2,060 Net operating cash flow 629 Other income (expense), net (12) Compute Amazon's balance in cash at the beginning of the year.
Answer:
$1,180 million
Explanation:
The computation of the beginning cash balance is shown below:
= End of year balance in cash - Net increase in cash for the year
= $1,208 millions - $28 millions
= $1,180 million
Simply we deduct the net increase in cash from the ending year cash balance so that he accurate amount could come
This ending cash balance should be displayed on the asset side of the balance sheet
Subprime lending means lending to borrowers and charging interest that is below the current prime interest rate.
True or False?
Answer:
False
Explanation:
Subprime lending means lending to borrowers and charging interest that is above the current prime interest rate.
The current prime interest refers to the rate offered to the best credit rated customers based on their credit history. This rate is lower as it is meant to be an attraction for the customers who are good credit payers and takers.
The sub-prime lending refers to giving loans at a rate higher than current prime interest rate to the borrowers who are lower on credit rating. This lending takes on higher risk and hence thereby charges higher interest from the borrowers.
When you construct the replicating portfolio for the option in the previous question how many dollars do you need to invest in the cash account
Answer: The same amount of dollars
When it comes to the financial level, a replicating portfolio as the name implies, is a repetition of specific flows of a given asset, so it must be constituted with the same resources. In this case, the same amount of cash would be needed to create the replica.