Answer:
Transaction 1
Cash $15,000 (debit)
Profit and Loss $ 3,000 (credit)
Land $12,000 (credit)
Cash Flow Effect : Increase $15,000
Transaction 2
Cash $20,000 (debit)
Common Stock $20,000 (credit)
Cash Flow Effect : Increase $20,000
Transaction 3
Depreciation Expense $17,000 (debit)
Accumulated Depreciation Expense $17,000 (credit)
Cash Flow Effect : No Change
Transaction 4
Salaries Expenses $9,000 (debit)
Cash $9,000 (credit)
Cash Flow Effect : Decrease $9,000
Transaction 5
Equipment $8,000 (debit)
Common Stock $1,000 (credit)
Paid In Excess of Par $7,000 (credit)
Cash Flow Effect : No Change
Transaction 6
Cash $1,200 (debit)
Accumulated Depreciation $7,000 (debit)
Profit and Loss $1,800 (debit)
Equipment at Cost $10,000 (credit)
Cash Flow Effect : Increase $1,200
Explanation:
All Cash transactions will have an effect on cash flow. Non Cash transactions will not have an effect and these include exchanges of assets and other financial instruments.
Jamie is single. In 2020, she reported $108,000 of taxable income, including a long-term capital gain of $5,800. What is her gross tax liability? (Round your answer to the nearest whole dollar amount.) (Use the tax rate schedules, long-term capital gains tax brackets.)
a. $19.478
b. $20143
c. $18,728
d. 516 200
Answer:
$19,478
Explanation:
Computation of tax liability
i. Total income excluding LTC gain = 108,000 - 5,800 = 102,200
ii. Tax on 102,200 as per single tax schedule = 14605.5+((102200-85525)*24%) = 18607.50
iii. Tax on LTC gain at 15% = 5800 * 15% = 870
So, Gross Tax liability = $18607.50 + $870 = $19477.50 = $19,478
Note: As per Long term capital gain schedule
If a proposed expenditure of $80,000 for a fixed asset with a 4-year life has an annual expected net cash flow and net income of $32,000 and $12,000, respectively, the cash payback period is 2.5 years.
a. true
b. false
Answer: a. true
Explanation:
Cash payback period shows the amount of time it will take for cash inflows from an investment to pay off the investment.
Cash payback period = Investment/ Cash inflow
= 80,000/32,000
= 2.5 years
Statement is proven true.
Wildhorse Co. took a physical inventory on December 31 and determined that goods costing $198,500 were on hand. Not included in the physical count were $25,000 of goods purchased from Waterway Industries, FOB, shipping point, and $26,000 of goods sold to Oriole Company for $30,000, FOB destination. Both the Waterway purchase and the Oriole sale were in transit at year-end.What amount should Wildhorse report as its December 31 inventory
Answer:
$249,500
Explanation:
Calculation for the amount that Sheridan should report as its December 31 inventory
Using this formula
December 31 inventory=Goods costing+Goods purchased +Goods sold
December 31 inventory=$198,500+$25,000+$26,000
December 31 inventory=$249,500
Therefore the amount that Sheridan should report as its December 31 inventory will be $249,500
Suppose the Federal Reserve (the Fed) announces that it is raising its target interest rate by 50 basis points, or 0.50%. It would achieve this by _____________________: The sequence of events that results in a new equilibrium interest rate, after the Fed makes the change you selected, may be described as follows: Because there is ____________ in the financial system the quantity of money demanded __________.
Answer: decreasing money supply; less; decreases.
Explanation:
When the Federal Reserve wants to increase its target interest rate by 50 basis points, this can be done if the Fed reduces the money supply that is in circulation.
This will in turn, lead to a new equilibrium rate and there will also be a decrease in money in the financial system as there'll be a reduction in the quantity of money demanded.
The Army receives proposals from eight different companies in response to a Request for Proposal (RFP). The Contracting Officer has identified the most highly rated proposals, determined the competitive range, and wants to get the offerors' best and final proposals. What type of information exchange would the Contracting Officer use to get the information needed to allow the offerors to revise their proposals
Answer: Negotiation
Explanation:
The contacting officer would use negotiating method to speak to the different companies. By the time he or she is able to communicate by negotiation, there would be results on what's needed for the final phase of the selection
Hasty and Tasty Foodservice received a 120-day, 8% note for $96,000, dated April 9 from a customer on account. Assume 360 days in a year. a. Determine the due date of the note. b. Determine the maturity value of the note. $fill in the blank a7f48f054fe7fee_2 c. Journalize the entry to record the receipt of the payment of the note at maturity. If an amount box does not require an entry, leave it blank.
Answer:
a. Month Days
April 21 (30 -9)
May 31
June 30
July 31
August 7
Total 120 days
Thus, due date of the note is August 7
b. Interest = $2,560 [$96,000 * 8% * (120/360)]
Principal = $96,000
Maturity value $98,560
c. Date Account Titles Debit Credit
Aug 7. Cash $98,560
Note receivables $96,000
Interest revenue $2,560
Zepol Company is planning to produce 600,000 power drills for the coming year. The company uses direct labor hours to assign overhead to products. Each drill requires 0.75 standard hour of labor for completion. The total budgeted overhead was $1,777,500. The total fixed overhead budgeted for the coming year is $832,500. Predetermined overhead rates are calculated using expected production, measured in direct labor hours. Actual results for the year are:
Answer:
Actual results are missing, so I looked for a similar question and found:
Actual results for the year are: Actual production (units) 594,000 Actual variable overhead $928,000 Actual direct labor hours (AH) 446,000 Actual fixed overhead $835,600
1. Compute the applied fixed overhead
2. Compute the fixed overhead spending and volume variances
1) budgeted labor hours = 600,000 units x 0.75 labors hours per unit = 450,000 labor hours
standard fixed overhead rate = $832,500 / 450,000 labor hours = $1.85 per labor hour
applied fixed overhead = actual labor hours x standard fixed overhead rate = 446,000 x $1.85 = $825,100
2) Fixed overhead volume variance = applied fixed overhead – budgeted fixed overhead = $825,100 - $832,500 = -$7,400 favorable
Fixed overhead spending variance = actual fixed overhead - applied fixed overhead = $835,600 - $825,100 = $10,500 unfavorable
total fixed overhead variance = -$7,400 + $10,500 = $3,100 unfavorable
In deciding whether to drop or keep a product line, all of the following are relevant to the decision except: a. Whether dropping the product line today would eliminate future options for growth and expansion. b. Demand interdependencies across product lines of the company. c. The level of unavoidable fixed costs. d. Effect of the decision on overall company morale. e. The segment margin generated by the product line.
Answer:
c. The level of unavoidable fixed costs.
Explanation:
Product line in marketing is considered as a group of different products that are related to each other and often targets to the same thing. They are marketed and created under a single brand and sold by the same company. An example of it is product line hair care like shampoo, hair gel, hair wax, hair oil, etc.
Deciding a product lining is very essential to the organization. The growth and the expansion of the company depends upon the product lining of the future options. Therefore, dropping off a product line or keeping it should be decided properly. It also affects the overall morale of the company.
The relevant margin that is generated by the product line of the company should also be checked before deciding.
Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow: Total Hiking Fashion Sales revenue $520,000 $380,000 $140,000 Variable expenses 365,000 245,000 120,000 Contribution margin 155,000 135,000 20,000 Fixed expenses 81,000 40,500 40,500Operating income (loss) $74,000 $94,500 $(20,500)Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for per year, how will operating income be affected?A. Increase $157,000.B. Decrease $49,500.C. Increase $6,000.D. Increase $83,000.
Question Completion:
Assuming that the rent received from the Fashion line space is $40,500.
Answer:
Boots Plus
The operating income will be increased by $20,500.
Explanation:
a) Data and Calculations:
Boots Plus Income Statement before the discontinuation of Fashion line:
Total Hiking Fashion
Sales revenue $520,000 $380,000 $140,000
Variable expenses 365,000 245,000 120,000
Contribution margin 155,000 135,000 20,000
Fixed expenses 81,000 40,500 40,500
Operating income (loss) $74,000 $94,500 $(20,500)
Elimination of the Fashion line
Boots Plus Income Statement after the discontinuation of Fashion line::
Total
Sales revenue $380,000
Variable expenses 245,000
Contribution margin 135,000
Fixed expenses 81,000
Rent income 40,500
Operating income (loss) $94,500
The total asset market value of General Motors (GM) is $10 billion. GM has an equity market value (market capitalization) of $7 billion of equity. What are the weights in equity and debt that are used for calculating the WACC, respectively
Answer:
0.70,0.30
Explanation:
Calculation for the weights in equity and debt that are used for calculating the WACC respectively
Calculation for weights in equity
Weights in equity= $7 million / $10 million
Weights in equity = 0.70
Therefore the Weights in equity will be 0.70
Calculation for debt
Debt = ($10 million - $7 million) / $10 million
Debt=$3millon/$10 million
Debt= 0.30
Therefore the debt that are used for calculating the WACC will be 0.30
"Political risk is the possibility that political events in a particular country will influence the economic well-being of a firm operating in that country. Multinational firms need to anticipate and manage political risk. In order to do that, the firm must understand the differing types of risks and their likelihood of occurrence. The political risks facing a multinational firm can be categorized as"
Answer:
macro risk and micro risk.
Explanation:
Political risks are crucial factors for a multinational company to make investments in a given country, due to the instability of the country's political scenario that can bring negative adverse effects to the company in a context of macro risk and micro risk.
Macro risk is that which is inherent in the country and affects all economic sectors equally, such as the risk of government expropriation.
Micro risk, on the other hand, is one that will impact only a specific business sector, such as corruptions that aim to defraud or harm an organization.
John (45) and Cynthia (46) are married, and they will file a joint return. During the year, they earned investment income consisting of: $200 interest income from a savings account with their local bank, reported on Form 1099-INT. $350 interest income from a certificate of deposit held with another local bank, reported on Form 1099-INT. $100 in dividends from a savings account with a local credit union, reported on Form 1099-INT. $250 interest income from a U.S. Treasury note, reported on Form 1099-INT. $500 tax-exempt interest income from a municipal bond investment, reported on Form 1099-INT. $1,700 in ordinary dividends from a mutual fund investment, reported on Form 1099-DIV. Complete John and Cynthia's Schedule B (Form 1040), Interest and Ordinary Dividends.
Answer:
Calculation of Net taxable income
Particulars Amount Amount
Interest income from savings interest $200
Interest income from certificate deposit $350
Dividend from saving account with $100
local credit union
Interest income from us treasury note $250
Tax exempt interest from municipality bond $500
Ordinary dividend $1,700
Gross total income $3,100
Income exempt
Dividend from saving account $100
Dividend from treasury note $250
Tax exempt interest from municipality bond $500 $850
Net taxable income $2,250
On January 1, Balanger Company buys 10 percent of the outstanding shares of its parent, Altgeld, Inc. Although the total book and fair values of Altgeld's net assets equaled $3.2 million, the price paid for these shares was $340,000. During the year, Altgeld reported $415,000 of separate operating income (no subsidiary income was included) and declared dividends of $35,000. How are the shares of the parent owned by the subsidiary reported at December 31
Answer: a. Consolidated stockholders’ equity is reduced by $340,000.
Explanation:
Consolidated stockholders' equity is the equity owned by stockholders in the entire parent company of Altgeld and its subsidiaries. Balanger as a company, then buys some of its parent's stock for $340,000.
The effect this will have is to reduce the stock available to stockholders in the parent and the subsidiaries almost like buying treasury shares. Consolidated stockholders' equity will therefore reduce by the amount paid for the shares of $340,000.
Factor Weight A B C
Convenience 0.15 85 85 82
Parking facilities 0.20 70 91 91
Display area 0.18 87 97 90
Shopper traffic 0.27 95 90 92
Operating costs 0.10 86 90 97
Neighborhood 0.10 88 92 84
1.00
Using the above factor ratings, calculate the composite score for each location.
Answer and Explanation:
The composite score for each location is as follows;
The Composite score for Location A is
= 85 × 0.15 + 70 × 0.2 + 87 × 0.18 + 0.27 × 95 + 86 × 0.1 + 88 × 0.1
= 85.7
= 86
The Composite score for Location B is
= 85 × 0.15 + 91 × 0.2 + 97 × 0.18 + 90 × 0.27 + 90 × 0.1 + 0.1 ×92
= 90.91
= 91
The Composite score for Location C is
= 82 × 0.15 + 91 × 0.2 + 90 × 0.18 + 92 × 0.27 + 97 × 0.1 + 0.1 ×84
= 89.64
= 90
NU YU announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $0.47 a share. The following dividends will be $0.52, $0.67, and $0.97 a share annually for the following three years, respectively. After that, dividends are projected to increase by 3.3 percent per year. How much are you willing to pay today to buy one share of this stock if your desired rate of return is 14 percent
Answer:
P0 = $7.383535 rounded off to $7.38
Explanation:
Using the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the price of the stock today, we will use the following formula,
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n +
[(Dn * (1+g) / (r - g)) / (1+r)^n]
Where,
r is the required rate of return
g is the constant growth rate in dividends
n is the number of years
P0 = 0.47 / (1+0.14) + 0.52 / (1+0.14)^2 + 0.67 / (1+0.14)^3 +
0.97 / (1+0.14)^4 + [(0.97 * (1+0.033) / (0.14 - 0.033)) / (1+0.14)^4]
P0 = $7.383535 rounded off to $7.38
A company that sends email advertising messages to millions of individuals without their permission violates?
Answer
no it doesn't violate because its and advertisement and millions of businesses do it
Explanation:
Answer:
the CAN-SPAM act
Explanation:
the first step in successfully creating and using a budget is
Answer:
Determine your income. Start with how much money you make after tax each month
Explanation:
i hope this help
In examining investors’ preferences for dividends, it is useful to begin with the concept of dividend irrelevance. Dividend irrelevance suggests that in a world with no taxes or brokerage (or transaction) costs, firms and investors are indifferent to the paying or receiving of dividends. However, as these restrictions are relaxed, various factors suggest that firms should pursue high or low payouts. One such factor is:
Answer: Favor a high payout
Explanation:
Investors are allowed to exclude as much as 70% of dividend income from taxes. They will therefore demand a higher payout in terms of investment so that they make make more income after they exclude taxes.
For instance, assume investors had a choice between receiving $40 and $60 in dividends.
On $40, the non-taxable amount would be = 40 * 70% = $28
On $60, the non-taxable amount would be = 60 * 70% = $42
They will pick the higher payout of $60 in order to get more income after tax.
Sally Clark purchased 500 shares of ABC corporation for $10 per share and oaid a total commission of $200. The current price of the stock is $12 per share. Last year, Sally received dividends of $2 per share
Answer:
38.46%
The question
Based on the information given, compute stock returns.
Explanation:
The percentage return will be
The actual returns/ amount invested x 100
Returns represent gains from the share.
1. The gain in share price
= Current value - original value
=($12 x 500 ) - ($10 x 500)
=$6,000 - $5,000
=$1,000
2. gain from dividends
=$2 x 500
=$1,000
Total gain = $1000 + 1000 = $2000
The amount invested = original value + commissions
=($10 x 500) + $200
=$5200
The percentage gain
= $2000/5200 x 100
=0.384615 x 100
=38.46%
why does crime exist?
Answer:
well for me I think
Explanation:
The world is polluted
Since the costs of producing an intermediate product do not change regardless of whether the intermediate product is sold or processed further, these costs are not considered in deciding whether to further process a product.
a) true
b) false
Answer: a) true
Explanation:
The costs incurred to produce the intermediate products have already been incurred and as such are referred to as sunk costs.
They will not change regardless of whether the good is sold before further processing or if it is sold after. They therefore do not matter in the decision to either process or sell and so are not considered.
Which of the following arguments are in favor of active stabilization policy by the government? Check all that apply
Answer:
D) Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses.
Explanation:
The Federal Reserve (FED) can respond to excessive pessimism among consumers and businesses by expanding the money supply and lowering interest rates. To deal with excessive optimism they can do the opposite, they can shrink the money supply and increase the interest rate.
“EBIT is generally considered to be independent of financial leverage, because EBIT is the result of a firm’s operating effectiveness. However, with an excessive debt levels, EBIT might actually be influenced by financial leverage.”
Comment on the statement above.
Answer:
The answer is below
Explanation:
EBIT is known as an accounting measure to determine the profit level of a firm. It is an acronym of Earnings Before Interest and Taxes.
EBIT is generally considered to be independent of financial leverage because EBIT is the result of a firm’s operating effectiveness.
This is true because, EBIT is based on the firm's level of sales and cost of operation, of which financial leverage has no effects on it.
However, with excessive debt levels, EBIT might be influenced by financial leverage.
This implies that even though the financial leverage of a firm has no direct influence on EBIT, in a situation whereby a firm is operating at huge deficits, every aspect of the film will be concerned. This will include staff, customers, investors, and operational activities, thereby affecting the firm's sales and cost of operation. As a result, this will ultimately affect the firm's EBIT.
U.S. firms, their foreign subsidiaries, or foreign firms that are licensees of U.S. technology cannot sell a product to a country in which the sale is considered by the U.S. government to affect the Group of answer choices overall balance of payments of the United States. competitive balance of free competition inside the U.S. national security of the United States. competitive balance of world trade. relationship of the U.S. with the world community.
Answer:
national security of the United States
Explanation:
In the case when the U.S firms, their foreign subsidiaries that have taken the license of United states to not sell the products to a country in which the considered thing is sale due to which it impact the united stated national security as these trade could be prevented because of the concern related to the national security
hence, the above is the correct option
Thus, the same is to be considered
Bruno's Lunch Counter is expanding and expects operating cash flows of $28,500 a year for 6 years as a result. This expansion requires $95,800 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $7,000 of net working capital throughout the life of the project. What is the net present value of this expansion project at a required rate of return of 10 percent
Answer:
$25,276
Explanation:
The computation of the net present value is shown below:
The Present value of inflows is
= Cash inflow × Present value of discounting factor (rate% , number of years)
= $28,500 ÷ 1.1 + $28,500 ÷ 1.1^2 + $285,00 ÷ 1.1^3 + $28,500 ÷ 1.1^4 + $28,500 ÷ 1.1^5 + $28,500 ÷ 1.1^6 + $7,000 ÷ 1.1^6
= $128,076.25
And,
Present value of outflows is
= $95,800 + $7,000
= $102,800
So
As we know that
NPV = Present value of inflows - Present value of outflows
= $128,076.25 - $102,800
= $25,276
Describe THREE different types of warehousing
Answer:
1. Private Warehouses: Owned and managed by manufacturers and only them can store goods in it.
2. Public Warehouses: Managed by the general public and everyone can store goods in it on payment of rent.
3. Government Warehouses: Owned and managed by the government.
Explanation:
We need various kinds of goods in our everyday life. We may get a portion of these things in mass and store them in our home. Additionally, finance managers likewise need an assortment of products for their utilization. Some of them may not be accessible constantly. However, they need those things over time with no break.
The need for storage emerges both for raw material just as completed items. Storage includes legitimate plan for saving merchandise from the hour of their creation or buy till the real use. At the point when this storage is done for a huge scope and in a predefined way it is called 'warehousing'.
(a) How does Alibaba implement competitive pricing strategy in market
Explanation:
Alibaba is a Chinese business group that uses one of its main business strategies to offer a lower price than its competitors.
There are several reasons why Alibaba is able to maintain this strategy competitively, for example, as it is a group of companies with different niches and different suppliers, it is possible to find a variety of them within the group's e-commerce, which makes there are options for price variations and incentive for the consumer to choose. In addition, the price variation remains at a healthy level that does not generate losses for Alibaba.
The group also maintains a strategy of offering discounts to consumers that generate greater purchase motivation, such as discount coupons, gifts, free shipping, etc.
Riverrun Co. provides medical care and insurance benefits to its retirees. In the current year, Riverrun agrees to pay $31,500 for medical insurance and contribute an additional $9,650 to a retirement program. Record the entry for these accrued (but unpaid) benefits on December 31.
Answer:
Date Details Debit Credit
December 31, Employee benefits expense $41,150
Medical insurance payable $31,500
Employee Retirement program $9,650
payable
Working
= 31,500 + 9,650
= $41,150
If a large, undiversified oil company used information technology in order to manage organizational coordination, it is likely trying to offset problems with
Answer: diseconomies of scale
Explanation:
Diseconomies of scale is a scenario that occurs when the growth of a particular company brings about an increase in the company's cost per unit. A rise in output in turn, leads to a rise in cost.
Therefore, if a large, undiversified oil company used information technology in order to manage organizational coordination, it is likely trying to offset problems with diseconomies of scale.
Jeff and Riley were married for 35 years when Riley died in July of 2016. The couple have two children who are 6 and 10 years old. Which of the following applies to Jeff regarding filing status?a) Jeff can file using any status he wants for the next 3 yearsb) Since Jeff’s spouse died during the year, he may be entitled to the special qualifying widower with dependent child benefits for tax year 2017 and 2018c) Since Jeff’s spouse died during the year, he may be entitled to the special qualifying widower with dependent child benefits for tax year 2016 onlyd) Since Jeff’s spouse died during the year, he may be entitled to the special qualifying widower with dependent child benefits for tax year 2017 only
Answer:
(D) I think
Explanation:
When your husband or spouse dies,you file as a widower. If he has children he could get extra benefits because he can file his kids as a Dependent on his Taxes.
Hope this helps:)!
Stay beautiful ❤️
With Riley having died in 2016, the procedure would be that b) Since Jeff’s spouse died during the year, he may be entitled to the special qualifying widower with dependent child benefits for tax year 2017 and 2018.
Special Qualifying WidowerAllows a widower to still fill taxes jointly as a married person for two years after the spouse dies. Can only apply if there is at least a single dependent child.There are two dependent children in this scenario so Jeff qualifies for this filling status. As Riley died in 2016, Jeff's two years would be the years 2017 and 2018.
In conclusion, option B is correct.
Find out more on the special qualifying widower status at https://brainly.com/question/26021534.