If someone's net worth is $76.0 billion and their stock gains $3.2 billion, their new net worth will be $79.2 billion. Expressed in scientific notation, the new net worth is $7.92 × 10^{10}. This demonstrates how scientific notation can be used in practical applications involving large numbers.
Explanation:The student's question pertains to calculating the new net worth of a person after their stock has increased in value. First, the student has noted the current net worth as $76.0 billion, which expressed in scientific notation is $7.60 × 10^{10}. After gaining $3.20 billion in value, which is $3.20 × 10^{9} in scientific notation, we need to add this to the original net worth. The new net worth, therefore, becomes:
$76.0 billion + $3.2 billion = $79.2 billion
Expressed in scientific notation, the new net worth is:
$7.60 × 10^{10} + $3.20 × 10^{9} = $7.92 × 10^{10}
This calculation shows that a gain in stock value, even when it's in the billions, can have a significant impact on someone's net worth. It is also a practical application of scientific notation in understanding large numbers.
Calculate net income and stockholders equity (LO2) Eagle Corp. operates Magnetic Resonance Imaging (MRI) clinics throughout the Northeast. At the end of the current period, the company reports the following amounts: Assets = $38,000; Liabilities = $21,000; Dividends = $1,800; Revenues = $11,600; Expenses = $7,800. Required: 1. Calculate net income. Net income 2. Calculate stockholders' equity at the end of the period. Stockholders' equity
Answer:
Explanation:
Net Income = Revenue -Expenses
= $11,600 -$7,800
= $3,800
Retained Earnings = $3,800- $1,800
= $2,000
According Accounting Equation ;
Total Assets = Total liabilities + Total equity
Stockholders' Equity = $38,000- $21,000
= $17,000
The volume of international trade is governed by factors including the level of domestic economic activity (for example, prosperity versus recession) and restrictions imposed by countries on their imports.True or false?
Answer:
True
Explanation:
International trade is trade across national boundaries and it includes the import and export of goods and services. An economic prosperity is synonymous with rising incomes and it would increase the propensity to import; that is, people in the domestic economy now have more incomes to spend on imports. Alternatively, a recession would lead to a fall in incomes and imports, and also a fall in investment which conseqeuntly reduces exports volumes.
Trade restrictions (protectionism) such as tariffs, quotas, competitive devaluation, administrative complexities, export subsidy hinder free trade and they could reduce the volume of imports into a country. This is because trade restrictions would make imports to be more expensive; the aim might be that the government is trying to correct a current account deficit. However, the effectiveness of trade restrictions in reducing import volumes and influening export is dependent on the price elasiticty of demand for imports and exports, the quality of a country's good or service, and how the country's rate of inflation compares with that of other countries.
Grey has two children, Ham (the eldest) and Ivy, both of whom predecease Grey-Ham is survived by a daughter, Jess, and Ivy by two sons, Kato and Lars. On Grey’s death, if the estate is distributed per stirpes each grandchild receives one-third of the estate. Jess receives one-half of the estate, and Kato and Lars each receive one-fourth. Jess receives the entire estate. the grandchildren receive nothing.
Answer:
Jess receives one-half of the estate, and Kato and Lars each receive one-fourth
Explanation:
The question is complete but phrased incorrectly as the options are not separated.
The question involves inheritance law and the distribution of an estate per stirpes. In the scenario provided, Jess would receive one-half, Kato one-fourth, and Lars one-fourth of the estate if it were distributed per stirpes. The response incorporates historical aspects of inheritance, such as the practice of older siblings receiving a double portion and the impact of the Code Civil on equal inheritance sharing.
Explanation:The scenario presented in the question deals with the distribution of an estate per stirpes, which is a legal concept in inheritance law. This method of distribution means that each branch of the family inherits an equal share of an estate. If Grey had distributed his estate per stirpes, then each grandchild would receive a share equivalent to that which their parent would have received if still alive.
In this case, if Grey had two children, Ham and Ivy, and Ham was survived by one child (Jess) while Ivy had two (Kato and Lars), and if Grey's estate was to be distributed per stirpes, then Ham's branch (represented by Jess) would receive one-half of the estate, and Ivy's branch (represented by Kato and Lars) would receive the other half, which would be divided equally between the two, resulting in one-fourth of the estate for each.
However, if there was a different direction in Grey's will, such as leaving everything to Jess, then the other grandchildren would not receive an inheritance unless specified by local laws or other stipulations in the will. The passage also alludes to historical perspectives on inheritance, including those from the Code Civil and earlier practices like older brothers receiving a double portion.
The Matthews want to split their refund between savings and checking accounts. How is this accomplished, if possible?
Answer:
By completing form 8888 from tax application
Explanation:
When applying for tax refund, you can transfer your amount into 2 or 3 separate accounts. If you want to split your refund then you need to complete form 8888 and attach it with tax return. This form tells IRS, in which accounts and how much you want to deposit through refund.
Which of the following serves as the justification for the periodic recording of depreciation expense? a. Association of efforts (expense) with accomplishments (revenue) b. Systematic and rational allocation of cost over the periods benefited c. Immediate recognition of an expense d. Minimization of income tax liability
Answer:
"B"
Explanation:
Depreciation is a practice of systematic allocation of the cost of an asset to the income generated over its useful life time , either on a straight line method or reducing balance.
As demanded by the matching concept of accounting , revenue are expected to be linked to associated expenses otherwise profit will end up being overstated and and management misinformed and wrong decisions likely to be taken
The periodic recording of depreciation expense is justified by the systematic and rational allocation of cost over the periods benefited, reflecting the asset's use in generating revenue.
Explanation:The justification for the periodic recording of depreciation expense in accounting is the systematic and rational allocation of cost over the periods benefited (option b). This principle is an application of the matching principle, which aims to match expenses with the revenues they generate in the same period. Depreciation allows businesses to spread the cost of a tangible asset over its useful life, reflecting its consumption or the loss of value as the asset is used to generate revenue. This is not intended for the immediate recognition of an expense, nor primarily for the minimization of income tax liability, although it may have that effect.
Weaver Company had 100,000 shares of common stock issued and outstanding at January 1. On July 1, Weaver issued a 10% stock dividend. Unexercised call options to purchase 20,000 shares of Weaver’s common stock (adjusted for the stock dividend) at $20 per share were outstanding at the beginning and end of the year. The average market price of Weaver’s common stock (which was not affected by the stock dividend) was $25 per share during the year. Net income for the year ended December 31 was $550,000. What should be Weaver’s diluted earnings per share (DEPS) for the year?
Answer: $4.82
Explanation: Diluted EPS is a calculation used to gauge the quality of a company's earnings per share (EPS) if all convertible securities were exercised. It can be said to be a profitability calculation that measures the amount of income each share will receive if all of the diluted securities are realized
From the above question, the DEPS is calculated thus:
Proceeds from unexercise call options(20,000 shares × $20)=$400,000
Treasury shares = $400,000/$25 = 16,000
Purchased shares = 20,000 -16,000 = 4,000
Therefore Incremental shares = 4,000
The incremental shares of 4,000 + 100,000+10% stock dividend of 10,000 = 114,000 shares.
DEPS = $550,000/114,000 = 4.82
The diluted earnings per share (DEPS) for Weaver Company is calculated by adjusting for a 10% stock dividend and the effect of exercised call options, leading to a total of 130,000 shares. The net income of $550,000 is then divided by this amount, resulting in a DEPS of $4.23.
To calculate the diluted earnings per share (DEPS) for Weaver Company, we must first adjust for the 10% stock dividend. The initial 100,000 shares increase by 10%, becoming 110,000 shares. Next, we consider the effect of the call options. The call options are for 20,000 shares, and since the exercise price of $20 is less than the average market price of $25, we assume they are exercised, adding 20,000 shares. Therefore, the total number of shares for the DEPS calculation is 130,000 (110,000 + 20,000).
Finally, we divide the net income ($550,000) by the total number of shares (130,000) to get the DEPS. Thus, Weaver's diluted earnings per share is $4.23 (550,000 / 130,000).
Shanika lives in Oregon which imposes a state tax on income. For 2017, Shanika had the following transactions related to her state income taxes:
State taxes withheld in 2017 $ 3,500
State refund received in 2017 of 2016 tax 600
Additional assessment paid in 2017 of 2015 tax 750
Shanika plans to itemize on her 2017 return. What amount of state and local taxes should Shanika deduct in calculating itemized deductions for her 2017 federal income tax return?
Multiple Choice
$4,850.
$3,500.
$750.
Which of the following organizations do not qualify for deductible charitable contributions?
Multiple Choice
A political party.
All of these.
The Salvation Army.
Religious organizations.
Answer:
Explanation:
Deductible state income tax = $3,500 + $750 = $4,250
A political party is not a qualified charitable organization and it does not qualify for deductible charitable contributions.
Giving people information that they did not ask for is a broadcast technique called information push. information pull. O information overload. data mining. O data processing
Answer:
Information push.
Explanation:
The push information broadcast technique, corresponds to the act of anticipating a message to the user, that is, it is the sending of unsolicited information, it occurs from the sender to the recipient. It is common to use written media to perform this technique, such as emails, letters, memos, reports and others.
Some disadvantages of sending information is that despite ensuring the distribution of information, there is no certification that the message was delivered and understood effectively by the sender.
Becky had net credit sales in 2020 of $2,000,000. At December 31, 2020, before adjusting entries, the balances in selected accounts were: accounts receivable $1,700,000 debit, and allowance for doubtful accounts $2,200 credit. Becky estimates that 8% of its credit sales will prove to be uncollectible.
What is the ending balance in the bad debt expense reported on December 31, 2020?
Answer:
Following Becky's estimation, the bad debt expense must be equal than the 8% of the total credit, less the value already booked in the balance sheet accounts (doubtful accounts).
Explanation:
In this case, 2,000,000*8%=160,000. Then this 160,000 must be subtracted to 2,200 (160,000-2,200=157,800). Finally, the bad debt expense to be reported is $157,800
Jay Co. reported the following financial data for its most current year: Beginning-of-year common stock $105,000 Beginning-of-year retained earning 175,400 Net Income 33,400 Dividends Paid 10,500 Issuance of common stock 24,000 Compute Jay’s end-of-year total stockholders’ equity.
The correct statement is that the closing balance of shareholder's equity in the books of Jay Co. will be $327,300.
The computation of the total stockholder's equity can be calculated by adding any incomes to the opening balances and deduction of reissued securities.
Computation of total stockholder's equities (Closing Balance)Computation is done after applying the given values to the known formula and necessary adjustments to be made, if any. Here the closing stock will be, [tex]\$105000+ $24000= \$29000[/tex]As no information regarding the treasury stock is given, it has been assumed that no treasury stock transactions took place. So in this case, the formula to calculate the closing balance of stockholder's equities will be, [tex]\rm Closing\ Balance = Closing\ Stock + Closing\ Retained\ Earnings[/tex]To calculate the closing balance of retained earnings, doing the following calculations, [tex]\rm Earnings = Balance\ at\ the\ Beginning + Net\ Income- Dividend\\\\\rm Earnings =175400+33400-10500\\\\\rm Earnings =\$ 198300[/tex]Now putting the obtained values into the formula above, we get, [tex]\rm Closing\ Balance= 129000+198300\\\\\rm Closing\ Balance=\$327,300[/tex]So the closing balance of the total stockholder's equities in the hands of Jay Co. will be $327,300.Hence, the total stockholder's equities at the end of the year in the books of Jay Co. is $327,300.
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Calculating Economic Value Added East Mullett Manufacturing earned operating income last year as shown in the following income statement: Sales $630,000 Cost of goods sold 380,000 Gross margin $250,000 Selling and administrative expense 174,400 Operating income $ 75,600 Less: Income taxes (@ 40%) 30,240 Net income $ 45,360 Total capital employed equaled $380,000. East Mullett's actual cost of capital is 8 percent. Required: Calculate the EVA for East Mullett Manufacturing. $
Answer:
$14,960
Explanation:
Data provided in the question:
Sales = $630,000
Cost of goods sold = 380,000
Gross margin = $250,000
Selling and administrative expense = 174,400
Operating income = $75,600
Income taxes (@ 40%) = 30,240
Net income i.e After tax income = $45,360
Total capital employed = $380,000
East Mullett's actual cost of capital = 8 percent
Now,
EVA for East Mullett Manufacturing
= After tax income - [ Actual cost of capital × Total capital employed ]
= $45,360 - [ 8% × $380,000 ]
= $45,360 - $30,400
= $14,960
The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2015.
Account Title Debits Credits
Cash 5,800
Accounts receivable 2,800
Inventory 5,800
Equipment 11,800
Accumulated depreciation—equipment 4,300
Accounts payable 3,800
Common stock 10,000
Retained earnings 8,100
Sales revenue 0
Cost of goods sold 0
Salaries and wages expense 0
Rent expense 0
Advertising expense 0
Totals 26,200 26,200
The following transactions occurred during January 2016:
Jan. 1
Sold merchandise for cash, $4,300. The cost of the merchandise was $2,800. The company uses the perpetual inventory system.
2 Purchased equipment on account for $6,300 from the Strong Company.
4
Received a $100 bill from the local newspaper for an advertisement that appeared in the paper on January 2.
8 Sold merchandise on account for $5,800. The cost of the merchandise was $3,600.
10 Purchased merchandise on account for $9,900.
13 Purchased equipment for cash, $700.
16 Paid the entire amount due to the Strong Company.
18 Received $5,600 from customers on account.
20 Paid $700 to the owner of the building for January’s rent.
30 Paid employees $3,800 for salaries and wages for the month of January.
31
Paid a cash dividend of $1,000 to shareholders.
Prepare general journal entries to record each transaction.
Answer:
The journal entries to record each transaction is given below.
1 Sold merchandise for cash, $4,300. The cost of the merchandise was $2,800. The company uses the perpetual inventory system.
Debit Cash Account Asset $ 4,300
Credit Sales Income Account $ 4,300
Debit Cost of good sold $ 2,800
Credit Inventory Account $ 2,800
2 Purchased equipment on account for $6,300 from the Strong Company.
Debit Equipment Asset $ 6,300
Credit Payable $ 6,300
4 Received a $100 bill from the local newspaper for an advertisement that appeared in the paper on January 2.
Debit Advertisement expense $ 100
Credit Payable $ 100
8 Sold merchandise on account for $5,800. The cost of the merchandise was $3,600.
Debit Account Receivable $ 5,800
Credit Sales Income $ 5,800
Debit Cost of Good Sold $ 3,600
Credit Inventory $ 3,600
10 Purchased merchandise on account for $9,900.
Debit Inventory $ 9,900
Credit Payable $ 9,900
13 Purchased equipment for cash, $700.
Debit Equipment Asset $ 700
Credit Cash $ 700
16 Paid the entire amount due to the Strong Company.
Debit Payable $ 6,300
Credit Cash $ 6,300
18 Received $5,600 from customers on account.
Debit Cash $ 5,600
Credit Receivable $ 5,600
20 Paid $700 to the owner of the building for January’s rent.
Debit Rent expense $ 700
Credit Cash $ 700
30 Paid employees $3,800 for salaries and wages for the month of January.
Debit Salary expense $ 3,800
Credit Cash ` $ 3,800
31 Paid a cash dividend of $1,000 to shareholders.
Debit Dividend payable/Retain Earning $ 1000
Credit Cash $ 1000
Final answer:
The student's question requires preparing general journal entries for certain transactions in January 2016. Each transaction is documented step-by-step to reflect its impact on different accounts, highlighting the dual nature of bookkeeping where every debit has a corresponding credit.
Explanation:
The question involves the preparation of general journal entries for a series of transactions that occurred in January 2016 for the Whitlow Manufacturing Corporation. These entries will reflect various financial activities such as sales, equipment purchases, and payment of expenses, which impact the company's financial statements. Let's proceed to document each of these events.
Journal entry for the cash sale:
Debit Cash $4,300
Credit Sales Revenue $4,300
Debit Cost of Goods Sold $2,800
Credit Inventory $2,800
Journal entry for purchasing equipment on account:
Debit Equipment $6,300
Credit Accounts Payable $6,300
Journal entry for advertising expense:
Debit Advertising Expense $100
Credit Accounts Payable $100
Journal entry for sales on account:
Debit Accounts Receivable $5,800
Credit Sales Revenue $5,800
Debit Cost of Goods Sold $3,600
Credit Inventory $3,600
Journal entry for purchasing merchandise on account:
Debit Inventory $9,900
Credit Accounts Payable $9,900
Journal entry for the cash purchase of equipment:
Debit Equipment $700
Credit Cash $700
Journal entry for payment to Strong Company:
Debit Accounts Payable $6,300
Credit Cash $6,300
Journal entry for cash collections on account:
Debit Cash $5,600
Credit Accounts Receivable $5,600
Journal entry for rent payment:
Debit Rent Expense $700
Credit Cash $700
Journal entry for salaries and wages payment:
Debit Salaries and Wages Expense $3,800
Credit Cash $3,800
Journal entry for cash dividend payment:
Debit Retained Earnings $1,000
Credit Cash $1,000
Firms in the patented pharmaceutical industry earned an average return on net worth of 22 percent in 2006, compared with an average return of 14 percent earned by over 1,400 firms followed by Value Line . Which theory or theories of profit do you think best explain(s) the performance of the drug industry
Answer and Explanation:
The following theories of profit best explain the profits of pharma companies:
1. Risk bearing - The theory says the higher the risk, the higher the rewards. The pharma companies take huge risks in inventing a new drug, having trials and the getting FDA approvals.
2. Monopoly - If a new drug is approved, the pharma company gets a patent over it, which means that it will have an effective monopoly on that segment of the market.
3. Innovation - it states that innovation is what keeps a company ahead. And pharma industry is built on innovation. Pharma companies have to continuously find new drugs because once patents run out on existing drugs, there are no profits to be made.
Suppose that a worker in Agland can produce either 10 units of organic grain or 2 units of incense per year, and a worker in Zenland can produce either 5 units or organic grain or 15 units of incense per year. There are 20 workers in Agland and 10 workers in Zenland. Currently, the two countries do not trade. Agland produces and consumes 100 units of grain and 20 units of incense per year. Zenland produces and consumer 50 units of grain and no incense per year. If each country made the decision to specialize in producing the good in which it has a comparative advantage, then what will the combined yearly output of the two countries increase by?
A) 30 units of grain and 100 units of incense.
B) 30 units of grain and 150 units of incense.
C) 50 units of grain and 90 units of incense.
D) 50 units of grain and 130 units of incense.
Answer:
D
Explanation:
Agland produces 100 units of organic grain and Zenland produces 50 units of organic grains; their combine total = 150 grains
Agland produces 20 units of incense while Zenland produces nothin; their combine total = 20 incense
if each country specialize in producing the good in which they have comparative advantage then
Agland produce (10 × 20 ) organic grains which 200 organic grain with Zenland producing nothing; their combine total will 200 grains
Zenland doing the same by producing (10 × 15) incense which will equal 150 incense and Agland produce nothing their combine total is 150 incense
their combined yearly output of the two countries increase by
200 - 150 for grains = 50 units of grains
150 - 20 for incense = 130 units of incense
The 1974 federal legislation that exempted employers from certain state laws governing health insurance was
A. COBRA
B. ERISA
C. CON
D. HIPAA
E. SCHIP
Answer:
The correct answer is letter "B": ERISA.
Explanation:
The Employee Retirement Income Security Act (ERISA) of 1974 is a United States federal law governing health insurance in regards f how they should be provided by employers. Through different amendments, the ERISA has given provisions under different circumstances so employees can have the coverage of health insurance for a certain period after being laid off.
The Supreme Court once denied tax-exempt status to a private university that discriminated on the basis of race. What is likely to have influenced or guided the interpretation of the statute relevant to this case?
Answer and explanation:
According to Section 501(c)(3) of the U.S. Internal Revenue Code (IRC), private universities that have discriminatory admissions are not eligible for tax exemptions. In the U.S. this was applied in the Bob Jones University v. United States case (1983), where the Supreme Court stated that no tax exemption could be granted to the evangelic private university.
Holding all other things constant, an increase in the company's required return on investment (ROI) will affect:
Answer:
It will affect the profit after taxes of the company.
Explanation:
A higher ROI means that for the same level of investment, higher levels of return are achieved. In this case, the company's return is the profits after taxes, those that shareholders have the right to claim. Without considering variances in the level of investment, higher levels of profit can be obtained by a more significant difference between revenue and total expenses (including costs, operative expenses and depreciation and interests)
Final answer:
An increase in the company's required return on investment (ROI) impacts investment decisions, financing costs, and potentially the prices of goods or services. It may signal ambitious targets or higher perceived risks, affecting investor perception and possibly the stock price.
Explanation:
Holding all other things constant, an increase in the company's required return on investment (ROI) implies that the company needs to generate a higher percentage of profit from its investments.
When a company raises its required ROI, it directly influences investment decisions, since projects or investments now need to generate a higher return to be considered viable. This could lead to a reduced number of projects that meet the new, higher hurdle rate, potentially limiting growth opportunities or prompting a search for more efficient or profitable ventures.
If the required ROI is linked to the cost of capital, an increase could mean the company will have to pay more for financing, whether through equity or debt. Consequently, the company might either look for cheaper forms of financing or aim to increase operational efficiencies to maintain profit margins.
In some cases, it could also lead to an increase in the prices of the company's goods or services to maintain the higher required ROI. On the other hand, it could put pressure on the company to decrease costs, which could involve renegotiating supplier contracts, downsizing operations, or investing in technology that may improve productivity.
Moreover, the increase in required ROI might influence the perception of investors. A higher ROI could be seen as a sign of a company setting ambitious targets, but it might also raise concerns about the risk profile of the company's investments.
If perceived as too aggressive, it could potentially lead to a drop in the company's stock price if shareholders believe the risk is not being adequately managed or if they feel dividends could be affected.
Jack is yelling at Samantha because she was late last week. Unfortunately, the whole office can hear. Now Samantha is not only upset, but also angry and planning to go to Human Resources to file a complaint against Jack. In this case, Jack’s _________ skills failed. The skills that Jack is failing to use are important for _______.
Jack's interpersonal communication skills failed, negatively impacting the work environment and teamwork. His misstep could result in formal complaints and reduced productivity.
Explanation:In the scenario described, Jack's interpersonal communication skills failed. These skills are especially important for creating a supportive work environment and fostering effective teamwork. Rather than publicly scolding Samantha, a more professional approach would have been to address the issue in private, offering constructive feedback and seeking understanding about the reasons for her tardiness. The larger implications of his actions disrupt the office atmosphere, erode trust, and diminish team cohesion, which can lead to formal complaints and a decrease in overall productivity.
These interpersonal skills are fundamental for any professional setting as they help in maintaining respect, professionalism, and confidentiality. For example, in another scenario, an employee who understands the importance of these skills might speak in person with a colleague who is falling behind on project deadlines rather than embarrassing them in front of others or resorting to unprofessional email communications.
Which of the following factors has the LEAST influence on an individual’s core belief system? a. Physical appearance c. Religious background d. Family upbringing e. Life experiences Personality
Answer:
a. Physical appearance
Explanation:
The Physical appearance of a person is as a result of the genetic make up of the individual. This factor barely has an influence on an individual’s core belief system.
Religious background is a key element of individual’s core belief system as it forms the basis of one's belief about God, life, fate and destiny.
Family upbringing forms the basis of one's belief as the individual grows. The influence of the members of a family forms a part of the individual's core belief.
Life experiences as well forms a key part of our belief system and the same goes for personality.
Kramer and Knox began a partnership by investing $60,000 and $80,000, respectively. Assume that the partners agreed to share net income and loss by granting annual salary allowances of $50,000 to Kramer and $40,000 to Knox, 10% interest allowances on their investments, and any remaining balance shared equally.
1. Determine the partners' shares of Kramer and Knox given a first-year net income of $98,800. (Losses and amounts to be deducted should be entered with a minus sign.)
2. Determine the partners' shares of Kramer and Knox given a first-year net loss of $16,800. (Losses and amounts to be deducted should be entered with a minus sign.)
Answer:
1. $53.4 for Kramer and $45.5 for Knox
2. -$4.4 for Kramer and -$12.4 for Knox
Explanation:
Partner’s agreement before dividing profit or loss is to grant salaries and 10% interest to the partners. In effect, this agreement will be followed whether the partnership incurs profit or losses for the period. First, all salaries should be given to the partners and the 10% interest as well. Any excess whether profit of loss will be divided equally by the partners. Computation of division of profit or loss are attached for proper demostration.
1. Kramer's share: $43,500; Knox's share: $55,300.
2. Kramer's share: -$3,100; Knox's share: -$13,700.
Explanation:1. For the first-year net income of $98,800, the partners' shares are calculated as follows:
- Kramer: $50,000 (salary) + $6,000 (interest on $60,000) + (($98,800 - $50,000 - $6,000) / 2) = $43,500.
- Knox: $40,000 (salary) + $8,000 (interest on $80,000) + (($98,800 - $40,000 - $8,000) / 2) = $55,300.
2. For the first-year net loss of $16,800, the partners' shares are calculated as follows:
- Kramer: $50,000 (salary) + $6,000 (interest on $60,000) + (($16,800 - $50,000 - $6,000) / 2) = -$3,100 (loss).
- Knox: $40,000 (salary) + $8,000 (interest on $80,000) + (($16,800 - $40,000 - $8,000) / 2) = -$13,700 (loss).
Tiny Town Kennel earns service revenue by caring for the pets of customers. T Town Kennel is organized as a sole proprietorship and owned by Earle Martin the past month, Tiny Town Kennel has the following transactions: a. Received $520 cash for service revenue earned. iny b. Paid $325 cash for salaries expense. c. Martin contributed $1,000 to the business in exchange for capital. d. Earned $640 for service revenue, but the customer has not paid Tiny Town Kennel yet. e. Received utility bill of $85, which will be paid next month. f. Martin withdrew $100 cash. Indicate the effects of the business transactions on the accounting equation for Town Kennel. Transaction (a) is answered as a guide. a. Increase asset (Cash): Increase equiy (Service Revenue
Answer:
Accounting equation : Equity + Liability = Assets or Equity=Assets - Liability.
(a) Increase asset (Cash): Increase equity (Service Revenue) by $520
(b) Decrease asset (Cash): Decease equity (Salaries Expense) by $325
(c) Increase asset (Cash): Increase equity (Capital) by $1,000
(d) Increase asset (Debtor): Increase equity (Service Revenue) by $640
(e) Increase liability (utility bills payable): Decease equity (utility bill Expense)
by $85
(f) Decrease asset (Cash): Decease equity (Drawing) by $100
Explanation:
The accounting equation is the basis of the double-entry in accounting. Accounting equation ensure Statement of Financial position(i.e. balance sheet) balance all the time. It shows balance sheet. It shows that sum of assets equals to the addition of liabilities and equity.
With the aid of accounting equation, we establised that for every debit (affecting asset or expense) entry, there must be corresponding credit (affacting liability or equity).
On September 1, 2020, Flounder Corporation acquired Shamrock Enterprises for a cash payment of $690,000. At the time of purchase, Shamrock’s balance sheet showed assets of $650,000, liabilities of $190,000, and owners’ equity of $460,000. The fair value of Shamrock’s assets is estimated to be $770,000.Compute the amount of goodwill acquired by Flounder.
Answer:
$110,000
Explanation:
Net value of assets = Fair value of assets - Fair value of liabilities
= $770,000 - $190,000
= $580,000
Fair value of goodwill:
= Purchase price - Net value of assets
= $690,000 - $580,000
= $110,000
Therefore, the amount of goodwill acquired by Flounder is $110,000.
Learning to communicate with candor can mean breaking old habits, which is sometimes difficult.
What benefits of using candor make the effort worthwhile? Check all that apply.
a. Decision making will slow down due to increased time spent in communication, resulting in more thoughtful decisions.
b. Employees feel comfortable speaking freely, knowing that they can trust their managers.
c. When managers speak their minds, employees quickly learn what ideas are and are not acceptable, and there is less dissent.
d. There is a greater exchange of ideas, which promotes learning in the organization.
Final answer:
Candor in communication promotes trust, supports a free exchange of ideas, and sets clear expectations, which are all significant benefits that contribute to a healthier, more transparent, and more effective workplace.
Explanation:
Learning to communicate with candor can be challenging, but it brings numerous benefits to an organization, making the effort to develop clear and open communication worthwhile. Several benefits to using candor in communication include:
Employees feel comfortable speaking freely, which fosters a trustworthy environment.It encourages a greater exchange of ideas, promoting organizational learning and innovation.When managers communicate openly, it sets clear expectations, reducing confusion and encouraging alignment with the organization's values and objectives.Emphasizing these benefits can help justify the need to break old habits and adopt more candid communication styles in the workplace. Remember, effectively utilizing these communication skills can enhance collaboration, improve decision-making, and build more robust team dynamics.
Final answer:
Candor in communication ensures employees feel comfortable speaking freely, reduces dissent by providing clarity on acceptable ideas, and promotes a beneficial exchange of ideas leading to organizational learning and innovation. Ethical and forthright communication prevents misunderstandings and increases job satisfaction and employee morale.
Explanation:
The benefits of using candor in communication are numerous and significantly contribute to a more effective and engaged workplace. Among the options provided, the following are benefits that make the effort to communicate with candor worthwhile:
Employees feel comfortable speaking freely, knowing that they can trust their managers. This openness fosters a sense of mutual respect and trust within the organization.When managers are candid, employees quickly learn which ideas are acceptable, leading to more clarity and less dissent.There is a greater exchange of ideas, which promotes learning and innovation in the organization.It is important to note that although candor might initially slow decision making, the resulting decisions are often more well-thought-out and can improve long-term outcomes. Ethical and forthright communication within a company can prevent misunderstandings, increase job satisfaction, and boost employee morale. This can ultimately lead to improved performance and an increase in market value. Option B , C and D are correct .
You have $19,000 to invest, part at 6% and the rest at 7%. If x is the amount invested at 6 %6%, write an algebraic expression that represents the total annual income from both investments. Simplify the expression.
Answer:
total annual income = 1330 - 0.01x
Explanation:
given data
invest = $19,000
some part at = 6%
remaining part = 7%
x is amount invested at = 6 %
solution
we know x part invested = 6 %
so ( $19,000 - x ) part invested = 7 %
so we get here total annual income from both investment that is
income = 6% x + ( 19000 -x ) 7%
so total annual income = 0.06x + ( 19000 -x) 0.07
total annual income = 1330 - 0.01x
A defeasible estate is one that can be lost in the future by the happening of a specific event.
True/False
The given statement is true a defeasible estate is one that can be lost in the future by the happening of a specific event
Explanation:
When the land is transferred upon conditionally by the grantor or the owner then it is called as defeasible estate and the property is subjected to some conditions intentionally or unintentionally upon the happening of the events
This is not permanent to the owner hence with the time of run it can eventually be lost or it will be handed over back to the grantor and hence it can be lost in the future
KCCO, Inc., has current assets of $4,200, net fixed assets of $23,400, current liabilities of $3,750, and long-term debt of $8,400.
What is the value of the shareholders’ equity account for this firm?
Answer:
Share holder's equity = $15,450
Explanation:
given data
current assets = $4,200
net fixed assets = $23,400
current liabilities = $3,750
long-term debt = $8,400
solution
we get here value of the shareholders equity that is express as
Share holder's equity = (current assets + net fixed assets) - (current liabilities + long term debt) ....................1
put here value we get
Share holder's equity = ( $4,200 + $23,400) - ( $3,750 + $8,400 )
Share holder's equity = $15,450
The following data are from the accounting records of Niles Castings for year 2: Units produced and sold 80,000 Total revenues and costs Sales revenue $ 270,000 Direct materials costs 63,000 Direct labor costs 33,000 Variable manufacturing overhead 18,000 Fixed manufacturing overhead 41,000 Variable marketing and administrative costs 11,500 Fixed marketing and administrative costs 38,000Required:a. Prepare a gross margin income statement.b. Prepare a contribution margin income statement
Answer:
Gross Margin = $ 115,000 Contribution Margin= $ 144,500
Explanation:
Nile Castings
Income Statement
Year 2
Sales Revenue $ 270,000
Direct Materials $63,000
Direct Labor $ 33,000
Variable Manufacturing Overheads $ 18,000
Fixed Manufacturing Costs $ 41,000
Gross Margin $ 115,000
Less Marketing & Administrative Costs
Fixed Marketing Costs $ 38,000
Variable Marketing Costs $ 11,500
Net Profit $ 65,500
Nile Castings
Income Statement Under Absorption Method
Year 2
Sales Revenue $ 270,000
Direct Materials $63,000
Direct Labor $ 33,000
Variable Manufacturing Overheads $ 18,000
Variable Marketing & Administrative Costs $ 11,500
Contribution Margin $ 144,500
Less Fixed Costs
Fixed Manufacturing Costs $ 41,000
Fixed Marketing Coss $ 38,000
Net Profit $ 65,500
If firms in a competitive market are making positive economic profits, you would expect firms to ________ the market, causing the ________ curve to shift to the ________. Group of answer choices
Answer:
Enter
Supply
Right
Explanation:
A competitive market is when there are many buyers and sellers of homogenous goods and services. There are no restrictions to entry or exit of firms. In the long run, firms make zero economic profit.
If in the short run, if firms are making economic profit, in the long run, new firms would enter into the industry, this increases supply and drives economic profit to zero.
I hope my answer helps you
Unlike Generally Accepted Accounting Principles (GAAP) for accountants, there are not principles, standards, concepts, or values common to business ethics.A. TrueB. False
Answer:
Unlike Generally Accepted Accounting Principles (GAAP) for accountants, there are not principles, standards, concepts, or values common to business ethics is a FALSE statement.
Explanation:
The GAAP has a wide range of applications owing to the unanimous addition of functions to the discipline of accountancy. Other than GAAP, certain countries and businesses follow the accounting methods given by 'other comprehensive basis of accounting' (OSBOA). Some businesses choose to follow both at once, while the majority choose to follow either of them.The statement is false. Just like the GAAP, there are indeed common principles, standards, concepts or values within business ethics, including but not restricted to honesty, fairness, responsibility and accountability (option b).
Explanation:The statement in the question is actually false. In fact, there are principles, standards, concepts, or values common to business ethics. Much like the Generally Accepted Accounting Principles (GAAP) that serve as a guide for accountants, business ethics also has its own set of guidelines designed to manage ethical behavior in business environments.
These include but are not limited to honesty, integrity, transparency, fairness, respect, responsibility, and accountability. There's also the concept of Corporate Social Responsibility (CSR), which encourages companies to behave ethically and contribute to societal goals.
Learn more about Business Ethics here:https://brainly.com/question/33134775
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The Halpert Group produces a single product selling for $ 20 per unit. Variable costs are $ 2 per unit and total fixed costs are $ 10,000. What is the contribution margin ratio?
Answer:
90 percent
Explanation:
Given that,
Selling price per unit = $20
Variable costs per unit = $2
Total fixed cost = $10,000
Contribution margin = Selling price per unit - Variable cost per unit
= $20 - $2
= $18
Contribution margin ratio:
= (Contribution margin ÷ Selling price) × 100
= ($18 ÷ $20) × 100
= 0.9 × 100
= 90 percent.
Therefore, the contribution margin ratio is 90%.