You manage a pension fund that promises to pay out $10 million to its contributors in five years. You buy $7472582 worth of par-value bonds that make annual coupon payments of 6% and mature in five years. Right after you make the purchase, the interest rate on same-risk bonds decreases to 4.5%. If the rate does not change again and you reinvest the coupon payments that you receive in same-risk bonds, how much will you fall short of the money that you promised

Answer:

The correct answer is Debit Interest Expense, $5,100.

Explanation:

Note is a promissory note with a written promise made by the borrower to the lender (payee) to pay a certain, definite sum at a specified date.

Interest expense on the notes is calculated as: Principal x Interest Rate x Time

In this case, the total interest expense is $170,000 x 9%/12 x 6 months = $7,650.

Interest expense as at December 31, 2021 is therefore $7,650 / 6 x 4 = $5,100.

Answer:

Zentric Corporation

Journal Entries:

January 22:

Debit Cash with $1,140,000

Credit Common Stock with $1,140,000

To record issue of 76,000 shares of no-par value common stock at $15 each.

February 14:

Debit Cash Account with $400,000

Credit Preferred 6% Stock with $400,000

To record the issue of 8,000 shares at $50 par.

August 30:

Debit Cash Account with $780,000

Credit Preferred 6% Stock with $600,000

Credit APIC - Preferred with $180,000

To record issue of 12,000 shares, $50 par at $65.

No Chart of Accounts was provided for exact wording of account titles.

Explanation:

1. No-par common stock:  When shares are issued at no-par, it means that there is no set par value.  Par value is the nominal value of a share.  Issuing at no-par implies that the amount realized from the sale would be credited to the Common Stock without any to the Additional Paid-in Capital (APIC).

2. Issue of preferred 6% stock at par value:  This means that the stock was issued without additional paid-in capital.  The stock was issued at the nominal value without premium.

3. Issue of preferred 6% stock, $50 par at $65:  This stock was issued at a premium.  More was charged above the par value.  There is additional paid-in capital of $15 per share.  This additional is credited to Additional Paid-in Capital - Preferred.

Answer:

a. Lead time for both suppliers should be the same

Explanation:

Lead time is the time required from order to delivery of good. The supplier 1 has less variability as compared to supplier 2 but the average lead time for both supplier will be the same. The supplier 1 has higher delivery time but no of days are lesser. The supplier 2 has higher number of days but less delivery time than supplier 1. The average lead time will be same for both the suppliers.

Answer: 100 lawns

Explanation:

The Break-Even Point is the point where expenses/costs equal revenue.

First calculate the costs starting with the fixed costs which are Depreciation, advertising and insurance

= 2,400 + 400 + 2,400

= $5,200

Then the Variable costs per units which are, Weed and feed materials, Direct labor and Fuel.

= 15 + 31 + 2

= $48

Now calculate the Contribution Margin ratio which is,

= (Sales - Variable Cost ) / Sales

= (100 - 48) / 100

= 52%

With Contribution Margin, Break-Even sales can be calculated as,

Breakeven sales = fixed costs / contribution margin ratio

Breakeven sales = 5,200/52%

Breakeven sales in cash = $10,000

Breakeven sales in lawns = breakeven sales / sales per unit

Breakeven sales in lawns = 10,000/100

Breakeven sales in lawns = 100 lawns

Novak breaks even at servicing 100 lawns.

Answer:

Change in government purchase needed = $40

Explanation:

Multiplier denotes the extent to which, change in an autonomous variable leads to multiple change in economy income.

Multiplier 'k' = Change in Income 'ΔY'  / Change in autonomous variable 'ΔG', as autonomous variable = government purchase here.

ΔY needed = 200 billion , k = 5 , ΔG = ?

k = ΔY / ΔG

5 = 200 / ΔG  

ΔG = 200 / 5

ΔG = 40  

Change in government purchase needed = $40

Answer:

$ 1,072.23

Explanation:

Price of the Bond is the Present Value of the Bond.

Thus, Calculate the Present Value of this Bond

N= 10

PMT = $1,000×7.4% = $ 74

YTM = 6.4%

FV = $1,000

P/YR = 1

PV = ?

Using a Financial Calculator  PV is $ 1,072.23

Answer:

$1,072.22

Explanation:

Price of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond. Both of these cash flows discounted and added to calculate the value of the bond.

According to given data

Face value of the bond is $1,000

Coupon payment = C = $1,000 x 7.4% = $74 annually

Number of periods = n = 10 years

Market Rate = 6.4% annually

Price of the bond is calculated by following formula:

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

Price of the Bond = $74 x [ ( 1 - ( 1 + 1.064% )^-10 ) / 1.064% ] + [ $1,000 / ( 1 + 1.064% )^10 ]

Price of the Bond = $534.47 + $537.75 = $1072.22

Price of the Bond = $5,627.25

Answer:

The correct answer to the following question will be "12/31, majority interest taxable year".

Explanation:

They will vote for the 12/31 fiscal year minimum interest. And the solution to the above seems to be the right one.

Answer:

Instructions are below.

Explanation:

Giving the following information:

Martha receives $200 on the first of each month. Stewart receives $200 on the last day of each month. Both Martha and Stewart will receive payments for 30 years. The discount rate is 9 percent, compounded monthly.

To calculate the present value, first, we need to determine the final value.

i= 0.09/12= 0.0075

n= 30*12= 360

Martha:

FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}

A= montlhy payment

FV= {200*[(1.0075^360)-1]}/0.0075 + {[200*(1.0075^360)]-200}

FV= 366,148.70 + 2,746.12

FV= 368,894.82

Now, the present value:

PV= FV/ (1+i)^n

PV= 368,894.82/ 1.0075^360

PV= $25,042.80

Stewart:

FV= {A*[(1+i)^n-1]}/i

A= monthly payment

FV= {200*[(1.0075^360)-1]}/0.0075

FV= 366,148.70

PV= 366,148.70/1.0075^360

PV= $24,856.37

Martha has a higher present value because the interest gest compounded for one more time.

Final answer:

The difference in present value for Martha and Stewart's payments stems from receiving payments at the beginning versus the end of the month, with Martha's payments having a slightly higher present value due to earlier investment potential.

Explanation:

The question relates to the calculation of present value of annuity payments, received at different times, under a certain discount rate. Martha receives her payments at the beginning of the month, and Stewart receives his at the end of the month, both over a 30-year period with a 9 percent discount rate, compounded monthly. The present value difference between their payments arises because of the time value of money; Money received earlier is worth more because it can be invested to earn interest.

To calculate the present value of the payments for both Martha and Stewart, we would use the present value of an annuity formula considering the timing of their payments. As Martha receives her payments at the beginning of the month, her valuation would be slightly higher than Stewart's, who receives payments at the end of the month, due to Martha being able to invest each payment a month earlier over the 30-year period.

Answer:

Break-even point:

a. Product Model 94 units =  160,378.38   units

b. Product Model 81 units= 53,459.46   units

Explanation:

The break even point in units is the minimum units of  each of the two products that  Conley Company should sell in order for it to make no profit or loss.

At this units of sales, the sales revenue would produce a total contribution exactly equal to the fixed cost of $17,802,000.

The beak-even point (total units) = Total fixed cost / average contribution per unitAverage average contribution per unit = ( 81× 75%) + (90× 25%) = $83.25

Break-even point =  $17,802,000/83.25 = 213,837.84   units

Product Model unit = 75%× 213,837.84   units

                               =   160,378.38   units

Product Model 81 units = 25% × 213,837.84

                                      =  53,459.46   units

The break-even points are 160,411 units for Yankee and 53,471 units for Zoro.

The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products follow:

The sales mix for products Yankee and Zoro is 75% and 25%, respectively. To determine the break-even point in units for each model, we need to use the weighted average contribution margin (WACM).

Step 1: Calculate the WACM

Step 2: Calculate the total break-even point in units

Step 3: Determine the break-even point in units for each product

Therefore, the break-even points for Conley Company in units are 160,411 units for Model Yankee and 53,471 units for Model Zoro.

To determine the best option using present worth analysis at a 9% interest rate, calculate the present value of the benefits for each alternative. Use the perpetuity formula for Alternative A and equivalent annual benefits for Alternatives B and C considering their respective lifespans and replacement costs. The alternative with the highest present worth is the best option.

To find the best alternative using present worth analysis, we need to calculate the present value (PV) of each alternative at the 9% per year interest rate over the given lifespan of the alternatives. Since Alternative A has an infinite lifespan, its annual benefit of $1,375 will be perpetually received, which means we can use the perpetuity formula to calculate its present worth. The formula for perpetuity is PV = (Annual Benefit / Interest Rate).

For Alternative A:

Alternatives B and C are finite and will be replaced with identical replacements at the end of their useful lives, thus we can consider them as perpetuities as well, but we need to calculate the equivalent annual benefit that takes the replacement cost into account.

For Alternative B (18-year lifespan):

For Alternative C (9-year lifespan):

Once the PW for B and C are calculated, compare the PW of all three alternatives. The alternative with the highest present worth is considered the best financial option.

Answer:

$31.49 per share

Explanation:

The price of the shares after 3 years according to the Dividend Valuation formula would be:

Future Value after three years = Po * (1 + g)^3

And here,

Po = Do  * (1 + g) / (k - g)

So this means that the the above equation becomes:

Future Value after three years = E1  * (1 - b) / (k - g)       *    (1 + g)^3

Here

E1 is the earnings per share $2

b is 50%

k is the shareholder's rate of return, which is 12%

g = Plowback ratio * ROE = 50%  *  16%  = 8%

Now by putting values, we have:

Future Value after three years = $2 * (1 - 50%) / (12% - 8%)  * (1 + 8%)^3

= $31.49 per share

Answer:

Cost of sales is a product cost since it is directly associated to the production of services by Amazon.

Explanation:

Another term for cost of sales is cost of goods sold. Even though Amazon provides services, it doesn't manufacture any goods, its cost of sales (or COGS) is directly related to the providing of the sales service.

Period costs are not directly associated to the production of goods or services, instead they are incurred as time passes, e.g. rent or interests.

Amazon's cost of sales is considered a product cost. It forms a crucial part of their business model, which combines economies of scale and technology to maintain low fulfillment costs.

Amazon's cost of sales is generally categorized as a varietal product cost. Product costs are directly linked to the manufacturing or purchasing of the goods that a company sells, which does represent a significant portion of Amazon's business model. In contrast, period costs are not directly tied to the production process and typically include expenses like administrative and selling costs.

Amazon has been able to succeed largely due to its effective use of economies of scale, keeping its fulfillment costs low by storing inventories in vast, technologically advanced warehouses in areas with lower rent. This approach, in addition to their online business model, enables Amazon to reduce the average cost per sale and maintain competitive pricing.

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Answer:

The answer is $16,200

Explanation:

First-in, first-out (FIFO) inventory costing method refers to one in which the most recently stocked goods are sold last. To calculate this, let us first lay out the relevant information:

January 31 purchase = 500 units at $30 each

February 28 purchase = 600 units at $36 each

sales = 650 units at $40 each.

required = cost of ending inventory

According to FIFO method, all the goods bought in January, will be sold first before the goods bought in February, hence out of the 650 units sold:

500 units are from January inventory and the remaining 150 units are from February inventory.

Therefore to calculate the cost of ending inventory, which is units of goods remaining from February purchases:

Total initial units in February = 600 units

Units sold from February purchases = 150 units

∴ Units remaining from February purchases = 600 - 150 = 450

remember that for unit cost of goods for February = $36 per unit

∴ Cost of ending inventory = units of ending inventory × unit cost of ending inventory

= 450 × 40 = $16,200

Final answer:

The cost of ending inventory on December 31 using FIFO is $16,200, calculated by considering that 450 units remaining from the February purchase at $36 each are left after sales.

Explanation:

Given the purchases and sales data, here's how you would calculate the ending inventory:

According to FIFO, the oldest inventory is sold first. To calculate the ending inventory, subtract the 650 units sold from the total units purchased (500 + 600 = 1100 units). As 500 of the oldest units were sold first, only 150 out of the 650 sold units would come from the batch purchased in February. This leaves us with 450 units from the February purchase remaining in the ending inventory. Therefore:

450 units x $36 each = $16,200 ending inventory on December 31.

Answer:

The economy has an actual output of 700 billion, and its potential ouput was 600 billion, therefore, we can say that the economy is already performing well, beyond potential, for this reason, the government should simply not intervene, because government intervetion reduces the economic efficiency of market outcomes.

If the economy was below potential, the government could tax some of the 25% income that households save, in order to increase spending. This would promote economic growth, bringing the economy closer to potential.

Answer:

The multiple choices are:

a. 7.72%  

b. 5.40%

c. 5.22%

d. 7.46%

e. 4.90%

Option B is the correct answer,5.40%

Explanation:

In order to determine the after tax cost of Baxter's debt,we need to first of all calculate the pretax cost of debt which is by applying the rate formula in excel.

=rate(nper,pmt,-pv,fv)

nper is the number of coupon payments the bond would make which is 30

pmt is the annual coupon interest on the bond=7%*$1000=$70

pv is the current price of the bond minus the flotation cost=$945*(1-3%)=$916.65

The fv is the face value of $1000 per bond

=rate(30,70,-916.65,1000)

pretax cost of debt=rate=7.72%

After tax cost of debt=pretax cost of debt*(1-t)

t is th tax rate of 30% 0or 0.30

after tax cost of debt=7.72%*(1-.3)=5.40%

Answer: 1.54 %

Explanation:

Assuming no risk, the interest rate on the debt can be calculated using the Cost of Equity of levered Capital formula which is,

Cost of Equity of Levered Capital = Un levered cost of capital + Debt / equity * (rate of return - rate of debt)

All the variables are present except the rate of debt.

Plugging them in is,

0.125 = 0.091 + 0.45 ( 0.091 - rD)

0.125 = 0.091 + 0.04095 - 0.45(rD)

0.125 = 0.13195 - 0.45rD

0.45rD= 0.13195 - 0.125

0.45rD = 0.00695

rD = 0.00695/0.45

rD = 0.01544444444

rD = 1.54%

1.54% is the interest rate on the​ debt.

The question asks for the determination of the interest rate on Hubbard Industries' debt after a leveraged recapitalization. The interest rate can be calculated using a rearranged Modigliani-Miller proposition formula for levered cost of equity. Given all equity return and post-recapitalization equity return, along with the debt-equity ratio, one can compute the cost of debt.

The question involves determining the interest rate on the debt after Hubbard Industries performs a leveraged recapitalization. Initially, the firm was all-equity with an expected return of 9.1%. Post recapitalization, we are given that the new expected equity return is 12.5% and the debt-equity ratio is 0.45. To calculate the interest rate on Hubbard's debt, we must use the Modigliani-Miller proposition without taxes which implies that the firm's value (and cost of capital) does not change due to the capital structure decisions. The formula for the levered cost of equity is:

Re = Ru + (Ru - Rd) * (D/E)

Where Re is the cost of equity after leverage, Ru is the cost of equity (or assets) without leverage, Rd is the cost of debt, and (D/E) is the debt-to-equity ratio. Here, Re is 12.5%, Ru is 9.1%, and D/E is 0.45.

Rearranging the formula to solve for Rd gives us:

Rd = Ru - (Re - Ru) / (D/E)

Substituting the given values:

Rd = 9.1% - (12.5% - 9.1%) / 0.45

Rd represents the interest rate on the company's debt. After calculation, we can determine the interest rate which Hubbard's shareholders will face post recapitalization.

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Answer: $1,200,000

Explanation:

The firm should include $1,200,000 as the cost of the Manufacturing facility for a new project in it's analysis.

This is because $1,200,000 is the opportunity cost of not selling the facility. The old costs that were incurred for the land and the facility are to be considered sunk costs as they have already been incurred and the only relevant cost now is what the market will pay for the facility which is $1,200,000.

Final answer:

In the project analysis for Tiger Mfg.'s potential use of an idle manufacturing facility and land, only the opportunity cost, which is the forgone sale price of $1,200,000, should be included.

Explanation:

The question revolves around determining the relevant costs that Tiger Mfg. should include in the project analysis for utilizing an idle manufacturing facility and land, which have book values of $1,258,000 and $159,000 respectively, and for which they recently rejected a $1,200,000 offer. In project analysis, the focus should be on incremental cash flows or costs and benefits that would change as a result of undertaking the project. In this case, the original cost and the book value of the land and facility are sunk costs and should not be considered in the project analysis. However, if the project precludes the sale of the land and facility, the potential sale price (opportunity cost) of $1,200,000 represents the economic cost that should be factored into the project analysis.

Answer: Use antitrust laws to increase competition.

Explanation:

If the aim of the Government really is to.improve competition then they should use Anti-trust laws to increase competition.

This question is rooted in the concept of Capitalism and focuses on its good side which is that competition is good.

With such a law coming into effect, the large market share of the big company can be redistributed to the smaller firms which would enable competition amongst them and the large company as well. Competition at base level is good for the Economy for two main reasons;

1. It will make companies more efficient as they strive to better than each other. They'll produce better products and be more cost effective.

2. The citizens and consumers gain better service at cheaper costs because again, the companies would be competing amongst themselves and introducing newer and better ways to capture market share.

Answer:

Turn the company into a public enterprise.

Explanation:

Base on the scenario been described in the question, the policy options might most effectively enable the government to achieve its objectives in this situation is turn the company into a public enterprise.

If the government belief that the economies of scale in this industry are not significant, and therefore, multiple smaller firms would be able to provide lower prices is true, it would be profitable for the market, When a natural monopoly, such as an electric utility, is forced to sell itself to a public institution, the private monopoly will become a public enterprise. Such a policy option, which might be chosen by a government that views electricity as a public good, is generally the European approach to providing utilities. A potential drawback of this approach is that government managers may have little incentive to keep costs down

Answer:

Boston Enterprises

1. Bond Interests every six months:

Interest = $1,900,000 x (6%/2)= $57,000

2. Journal entries:

a) Issuance of bonds on January 1:

Debit Cash Account with $1,900,000

Credit Bonds Payable with $1,900,000

To record the issue of bonds at par value, 20 years' maturity at 6% semiannually.

b) First Interest Payment on June 30:

Debit Interest Expense with $57,000

Credit Cash Account with $57,000

To record payment of interest.

c) Second Interest Payment on December 31:

Debit Interest Expense with $57,000

Credit Cash Account with $57,000

To record payment of interest.

3. Journal Entries for issuance of bonds:

a) at $98,

Debit Cash Account with $1,862,000

Debit Bonds Discount with $38,000

Credit Bonds Payable with $1,900,000

To record the issue of bonds at $98 (discount).

b) at $102

Debit Cash Account with $1,938,000

Credit Bonds Payable with $1,900,000

Credit Bonds Premium with $38,000

To record the issue of bonds at $102 (premium).

Explanation:

a) Bond interest: Since the bond's interest of 6% are paid semiannually, the effective interest rate is 3% (6%/2).  The interest payment would be $57,000 every six months.  This is equal to 3% of $1,900,000.

b) Bonds are sold at a discount when the market interest rate exceeds the coupon rate of the bond.  The purpose of issuing at a discount is to make the bonds attractive vis-a-vis the market interest rate.  The bondholders will then benefit from the interests and being repaid at the par value.

c) Bonds are sold at a premium when the coupon rate of the bond exceeds the market interest rate.  This yields more for the issuer.  The bondholders benefit from the interest payments.

Answer:

D. credit to Unearned Warranty Revenue of $1,400

Explanation:

Unearned extended warranty revenue can be defined as the way in unearned revenues is reflected in accrued liabilities in the balance sheets which in turn lead to the revenue from separately priced as well as self-insured service contracts to be deferred at the point of sale.

Therefore the journal entry to record this transaction would include:

credit to Unearned Warranty Revenue of $1,400

Answer:

Unit contribution margin= $15

Explanation:

Giving the following information:

These items all add up to $10 on average. Jamara charges each participant $25 for each sign they make.

The contribution margin is the result of deducting from the selling price, the unitary variable cost.

Unit contribution margin= selling price - unitary variable cost

Unit contribution margin= 25 - 10

Unit contribution margin= $15

Final answer:

The gross margin or contribution margin for Jamara's Paint A Sign party business is $15 per sign, calculated by subtracting the variable cost of $10 for materials from the revenue of $25 per sign.

Explanation:

To calculate the gross margin or contribution margin for Jamara's home party Paint A Sign business, we need to consider the revenues generated from the parties and subtract the variable costs associated with hosting those parties.

The revenue per sign is $25, which is what each participant pays. The variable cost per sign is $10 for materials. Therefore, the gross margin per sign would be the revenue per sign minus the variable cost per sign:

Gross Margin per sign = Revenue per sign - Variable cost per sign
Gross Margin per sign = $25 - $10
Gross Margin per sign = $15

Note that this calculation does not take into account the annual fee of $500, which is a fixed cost and doesn't vary with the number of signs made or parties hosted.

Answer:

The equity will reduce by $1,125,000 or 1.125 M

Explanation:

Liquid assets needed to mange the withdraw = Withdrawal amount - Existing Liquid asset

Liquid assets needed to mange the withdraw = $9,500,000 - $5,000,000

Liquid assets needed to mange the withdraw = $4,500,000

Required Sale of Non-liquid assets = Liquid assets needed to mange the withdraw  / Ratio of sale to book value

Required Sale of Non-liquid assets = $4,500,000 / 80%

Required Sale of Non-liquid assets = $5,625,000

Change in Bank Equity = Required Sale of Non-liquid assets -  Liquid assets needed to mange the withdraw

Change in Bank Equity = $5,625,000 - $4,500,000

Change in Bank Equity = $1,125,000

The equity will reduce by $1,125,000 or 1.125 M

Answer:

Dr Cash                                                                              $270,000

Dr discount on bonds payable($300,000-$270,000)   $30,000

Cr bonds payable                                                                             $300,000

Explanation:

First and foremost we need to determine the yield to maturity on this bond using rate formula in excel:

=rate(nper,pmt,-pv,fv)

nper is the number of interest payments the bond would make,which is 2

years multiplied 2 since interest is paid twice i.e nper is 4

pmt is the semiannual interest payable =$300,000*6%*6/12=$9000

pv is the current price of $270,000

fv is the face value of $300,000

=rate(4,9000,-270000,300000)=5.88%

5.88%  is the semiannual rate

5.88%*2=11.76% is the annual yield

The annual yield is made use of in the attached amortization schedule.

1. The journal entry to record the Bonds Issuance on January 1, 2020, is as follows:

Debit Cash $270,000

Debit Bond Discounts $30,000

Credit Bonds Payable $300,000

To record the issuance of the bonds.

2. The completion of the Amortization Schedule is as follows:

Period ended  Cash Paid  Interest Expense  Amortization   Carrying amount

01/01/2020                                                                                      $270,000

06/30/2020     $9,000            $16,500               $7,500                277,500

12/31/2020       $9,000            $16,500               $7,500                285,000

06/30/2021     $9,000             $16,500               $7,500                292,500

12/31/2021       $9,000             $16,500               $7,500             $300,000

Data and Calculations:

Face value of bonds = $300,000

Bonds Proceeds = $270,000

Bonds Discounts = $30,000 ($300,000 - $270,000)

Maturity period = 2 years

Coupon interest rate = 6%

Interest payment = semi-annually on June 30 and December 31

Amortization method = Straight-line

Semi-annual amortization = $7,500 ($30,000/4)

Cash payment = $9,000 ($300,000 x 6% x 1/2)

Interest Expense = $16,500 ($9,000 + $7,500)

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Answer and Explanation:

The Journal entry is shown below:-

September 9

Petty cash fund Dr, $400

     To Cash $400

(Being establishment of petty cash fund is recorded)

Here we debited the petty cash fund as assets is increasing while we credited the cash is decreasing.

September 30

Merchandise Inventory Dr, $51

Postage expense Dr, $73

Cash Short and over Dr, $13

Miscellaneous Dr, $141

      To Petty Cash $278

(Being reimburse of petty cash find is recorded)

Here we debited the merchandise Inventory, postage expense, cash short and over and miscellaneous as it is expenses while we credited the petty cash as is reimbursed.

October 1

Petty cash fund Dr, $60

($460 - $400)

     To Cash $60

(Being increase in petty cash fund is recorded)

Here we debited the petty cash fund as assets is increasing while we credited the cash is decreasing.

Final answer:

The student needs three journal entries to manage the petty cash transactions: establishing the fund, reimbursing it, and increasing its total. These transactions involve various accounts such as Petty Cash, Cash, and specific expense accounts.

Explanation:

To assist the student with their accounting question regarding petty cash transactions, here are the journal entries needed:

The receipts and cash shortfall are used to determine how much to reimburse the petty cash to bring it back up to the established amount of $400 on September 30. Then, the fund's size is increased from $400 to $460 on October 1 with additional cash.

Answer:

c

Explanation:

Even though no final conclusion is currently warranted, a number of research papers, including those of fama and French, have argued that:

The correct option is option c.

c.stocks with high book-value-to-stock-price ratios outperform stocks with low ratios.

Rest all option are absurd in context of the question.

Answer:

Relevant:

$5,500

$1,650

$7,700

Explanation:

The only data irrelevant is the first production cost. The $4,400 is not relevant because it is a sunk cost. It will remain constant in both choices. The other costs and income are relevant because they vary on each decision. The $4,400 should not be a part of the decision making process.

Answer:

Explanation:

Cost of acquisition - $21,500

Residual value - $6,500

Depreciable amount - 21500-6500 =15,000

Useful life = 5 years

Total units produced = 10000

Depreciation rate = 1/5*100 = 20%

Double depreciation raate = 40%

Depreciation                           2018                  2019

Straight line 20%*15000        3000                3000

Units of production

850/10000*15000                   1275

1300/10000*15000                                          1950

Double declining balance method

2018 = 40%*21500 = 8600

2019 =(21500-8600) *40%= 5160

2020  (12900 -5160)*40% = 3096

2021   (7740-3096) *40% =1858

2022 (4644-1858)*40% = 1114

Answer:

1. Common stock is sold for cash above par value.  Financing activity

2. Bonds payable are issued for cash at a discount.  Financing activity  

3. Interest on a short-term note receivable is collected. Operating activity

4. Merchandise is sold to customers for cash. Operating activity

Explanation:

Operating activity

Cash Flow from operating activities cash generated from to day to day activities of the business. All the cash flows needed to operate the business smoothly.

Interest on Account receivables and Sale of Merchandise are operating activities.

Investing activity

All the cash flows related to the fixed asset is called cash flows from the investing activities. Cash inflows from the sale fixed asset and cash outflows from the purchase of fixed assets are included in it.

There is no Investing activities in this question

Financing activity

Cash flow from financing activities is the cash inflows and outflows related to the Financing of the business. It includes the cash flows related to Financing from common stock, preferred stock, Debt etc.

Proceeds from issuance of common stock and bond is classified as cash flow from Financing activities.

Answer:

he/she is right

Explanation:

i got the same answer

Answer:

Net cash flows from operating activities $2,730

Explanation:

Cash flows from operating activities:

Net loss($4,625)

Adjustments for non cash effects:

Depreciation expense $6,125

Amortization of patent $490

Changes in operating assets and liabilities:

Increase in salaries payable $495

Decrease in accounts receivable $2,175

Increase in inventory($2,320)

Decrease in discount on bonds $390

Net cash flows from operating activities $2,730