Answer:
See below
Explanation:
Maurice and Sons
Statement of stockholder's equity at the end of the year (December 31)
Particulars Common stock
Retained earnings Total
Beginning
Balance $16,300
$2,200. $18,500
Net income
$3,410. $3,410
Dividend paid
-$1,550. -$1,550
Additional common
Stock $5,800. $5,800
Total
$4,060. $22,100. $26,160
During its first five years of operations, a company reports net income and pays dividends as follows. Required: Calculate the balance of retained earnings at the end of each year. Note that retained earnings will always equal $0 at the beginning of year 1.
Answers:
Years:
$700$1,900$3,000$5,200$8,600Explanation:
Retained earnings for the year is:
= Beginning retained earnings + Net income - Dividends
Year 1
= 0 + 1,200 - 500
= $700
Year 2
= 700 + 1,700 - 500
= $1,900
Year 3
= 1,900 + 2,100 - 1,000
= $3,000
Year 4
= 3,000 + 3,200 - 1,000
= $5,200
Year 5
= 5,200 + 4,400 - 1,000
= $8,600
Elliot, Inc., uses the high-low method to analyze cost behavior. The company observed that at 20,000 machine hours of activity, total maintenance costs averaged $10.50 per hour. When activity jumped to 24,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $9.75. On the basis of this information, the company's fixed maintenance costs were:
Answer:
$90,000
Explanation:
At the activity level of 20,000 machine hours:
total maintenance costs=20,000* $10.50=$210,000
At the activity level of 24,000 machine hours:
total maintenance costs=24,000*$9.75=$234,000
variable maintenance cost per hour=(total maintenance costs at higher activity level-total maintenance costs at lower activity level)/(higher activity level-lower activity level)
variable maintenance cost per hour=($234,000-$210,000)/(24000-20000)
variable maintenance cost per unit=$6
Using the higher activity level data:
total cost=fixed cost+(variable maintenance cost per unit*number of hours)
$234,000=fixed cost+($6*24000)
234,000=fixed cost+$144,000
fixed cost=$234,000-$144,000
fixed cost=$90,000
When you are able to feel and touch product, it is called
Answer:
In a Proctor & Gamble study published in 2009, spanning 21 years total, found that customers who were able to feel merchandise were willing to pay more than those who hadn't. This phenomenon is called “The Endowment Effect." Basically, we make an emotional connection with what we touch.
Explanation:
Hope this helps
From,
1kvibing
The feel and touch of the products are called the endowment effect.
What is an endowment effect?An endowment effect is an effect that is associated with behavioral economics and the effect is that people find more likely to retain an object they own rather than acquire the object that they don't own.
The company named P and G published that clients were able to feel merchandised were willing to pay more than those who had not.
Find out more information about the product.
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Conrad, Inc. recently lost a portion of its records in an office fire. The following information was salvaged from the accounting records.
Cost of Goods Sold $ 65,000
Work-in-Process Inventory, Beginning 10,500
Work-in-Process Inventory, Ending 9,000
Selling and Administrative Expense 15,000
Finished Goods Inventory, Ending 15,000
Finished Goods Inventory, Beginning?
Direct Materials Used ?
Factory Overhead Applied 12,000
Operating Income 14,000
Direct Materials Inventory, Beginning 11,000
Direct Materials Inventory, Ending 6,000
Cost of Goods Manufactured 60,000
Direct labor cost incurred during the period amounted to 1.5 times the factory overhead. The CFO of Fisher, Inc. has asked you to recalculate the following accounts and to report to him by the end of the day. What is the amount of direct materials used?
Answer:
See below
Explanation:
Direct materials used = Cost of goods manufactured - work in process inventory, beginning - factory overhead applied - direct labor + work in process inventory, ending
= $60,000 - $10,500 - $12,000 - (1.5 × $12,000) + $9,000
=
Pension data for Goldman Company included the following for the current calendar year: Service cost $ 140,000 PBO, January 1 650,000 Plan assets, January 1 700,000 Amortization of prior service cost 5,000 Amortization of net loss 1,000 Discount rate, 6% Expected return on plan assets, 8% Actual return on plan assets, 10% Required: Determine pension expense for the year. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
$129,000
Explanation:
Calculation for pension expense
Service Cost $140,000
Add: Interest Cost $39,000
($650,000 × 6%)
Add: Amortization of prior service cost $5,000
Add: Amortization of net loss $1,000
Less Expected return on plan assets $56,000 ($700,000 × 8%)
Pension Expense $129,000
Therefore Pension Expense is $129,000
Katherine Stein told her boss, "Dan, a number of our senior staff will be retiring within five years. We can't afford to have the combined expertise, skills, wisdom, and relationships of these retirees walk out the door without first discovering and sharing these intellectual resources. I recommend that we implement a(n) ______________ system to harness this intellect."
Answer: knowledge management
Explanation:
Based on the information given, knowledge management would be used to harness this intellect.
Knowledge management simply has to do with the creation, and management of information and knowledge for an organization so that the organization's objectives can be achieved.
Two independent companies, Denver and Bristol, each own a warehouse, and they agree to an exchange in which no cash changes hands. The following information for the two warehouses is available:
Denver Bristol
Cost $80,000 $31,500
Accumulated depreciation 60,000 25,000
Fair value 17,000 17,000
Required:
1. Assuming the exchange has commercial substance, prepare journal entries for Denver and Bristol to record the exchange.
2. Assuming the exchange does not have commercial substance, prepare journal entries for Denver and Bristol to record the exchange.
Answer and Explanation:
The journal entries are shown below
1.
On Denver books
Equipment Dr $17,000
Accumulated depreciation $60,000
Loss on sale of equipment $3,000
To Equipment $80,000
(Being equipment recorded)
On Bristol books
Equipment Dr $17,000
Accumulated depreciation $25,000
To Gain on sale of equipment $10,500
To Equipment $31,500
(Being equipment recorded)
2.
On Denver books
Equipment Dr $20,000
Accumulated depreciation $60,000
To Equipment $80,000
(Being equipment recorded)
On Bristol books
Equipment Dr $6,500
Accumulated depreciation $25,000
To Equipment $31,500
(Being equipment recorded)
Because your patented Gidgit is starting to gain attention and investors are starting to show interest, the executive committee is considering becoming a publicly held company by selling the company to the government.
True
False
Answer:
False.
Explanation:
Patent can be defined as the exclusive or sole right granted to an inventor by a sovereign authority such as a government, which enables him or her to manufacture, use, or sell an invention for a specific period of time.
Generally, patents are used on innovation for products that are manufactured through the application of various technologies.
Basically, the three (3) main ways to protect an intellectual property is to employ the use of trademarks, copyright and patents.
In this scenario, Because your patented Gidgit is starting to gain attention and investors are starting to show interest, the executive committee is considering becoming a publicly held company.
Since Gidgit is patented it cannot be sold to the government because it is a registered intellectual property that cannot be used or sold without the approval or consent of the owner.
B) Suppose that regular raises at your job allow you to increase your annual payment by 5% each year. For simplicity, assume this is a nominal rate, and your payment amount increases continuously. How long will it take to pay off the mortgage
Answer:
Time period required to pay off the mortgage = 18 years
Explanation:
Note: This question is incomplete and lacks necessary data to solve. But I have found that necessary data on the internet, which I have written down and solved the question accordingly.
Data Missing:
Buying Cost of House = $320000
Interest rate = 7%
Annual Mortgage Payment = $25525.8
Now, we are required to calculate the time period required to pay off the mortgage.
Solution:
Data Given:
Increase in annual payment percentage = 5%
So,
Formula:
P = C[tex]e^{A-i}[/tex] + C[tex]e^{2(A-i)}[/tex] + C[tex]e^{3(A-i)}[/tex] + ........ + C[tex]e^{n(A-i)}[/tex]
Where,
P = Buying Cost of House = $320000
i = interest rate = 7% = 0.07
A = Increase in annual payment percentage = 5% = 0.05
C = Annual Mortgage Payment = $25525.8
P = C[tex]e^{A-i}[/tex] + C[tex]e^{2(A-i)}[/tex] + C[tex]e^{3(A-i)}[/tex] + ........ + C[tex]e^{n(A-i)}[/tex]
In this formula, we have all the required things expect the value of n, which we have to calculate.
n = Time period required to pay the mortgage.
So,
$320000 = 25525.8 [tex]e^{0.05 - 0.07}[/tex] + 25525.8 [tex]e^{2(0.05 - 0.07)}[/tex] + 25525.8 [tex]e^{3(0.05 - 0.07)}[/tex] + ..... + 25525.8 [tex]e^{n(0.05 - 0.07)}[/tex]
Taking 25525.8 common,
320000 = 25525.8 ( [tex]e^{-0.02}[/tex] + [tex]e^{-0.04}[/tex] + [tex]e^{-0.06}[/tex] + .... + [tex]e^{-0.02n}[/tex] )
320000/25525.8 = ( [tex]e^{-0.02}[/tex] + [tex]e^{-0.04}[/tex] + [tex]e^{-0.06}[/tex] + .... + [tex]e^{-0.02n}[/tex] )
12.536 = ( [tex]e^{-0.02}[/tex] + [tex]e^{-0.04}[/tex] + [tex]e^{-0.06}[/tex] + .... + [tex]e^{-0.02n}[/tex] )
Taking e common:
12.536 = [tex]e^{-0.02 -0.04 - 0.06 + .... -0.02n}[/tex]
Taking Ln to solve for n, we get:
n = 17.89
n ≈ 18
n = 18 years
Hence, Time period required to pay off the mortgage = 18 years
EVO, Inc. is evaluating a project that will have a life of four years. The operating cash flow each year is expected to be $51,500. There is a need to invest in net working capital at the start of the project in the amount of $4,250. EVO, Inc. will recover this investment in net working capital at the end of the project. EVO also needed to spend $22,400 on equipment in order to get the project started. The book value for this equipment when the project is finished, is estimated to be $4,660. This equipment will be sold at the end of the project for an estimated sales price of $5,670. EVO has a tax rate relevant to this analysis of 34 percent. Calculate the amount of cash flow in year 4 of this project
Answer:
$61,763.40
Explanation:
The computation of the amount of cash flow in year 4 is shown below:
Terminal Cash flow in year 4 is
= operating cash flow + net working capital invested + sale price of equipment - tax on profit from sale
= operating cash flow + net working capital invested + sale price of equipment - tax rate × (Sale price - book value)
= $51,500 + $4,250 + $5,670 - 34% × ($5,670 - $4,660)
= $61,763.40
Adriana and Belen are partners who share income in the ratio of 3:2 and have capital balances of $50,000 and $90,000 at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $90,000. How much cash should be distributed to Adriana
Answer:
$54,000
Explanation:
First, we add the ratios together to determine the total parts:
3+2= 5
Next, we divide the cash balance of $90,000 by the total parts:
$90,000/5 = $18,000
To find the amount of cash distributed to Adriana we multiply by her ratio:
5*18,000 = $54,000.
At December 31, Year 1, Kale Co. had the following balances in the accounts it maintains at First State Bank:
Checking account #101 $175,000
Checking account #201 (10,000)
Money market account 25,000
90-day certificate of deposit, due 2/28/Y2 50,000
180-day certificate of deposit, due 3/15/Y2 80,000
Kale classifies investments with original maturities of three months or less as cash equivalents. In its December 31, Year 1, balance sheet, what amount should Kale report as cash and cash equivalents?
Answer:
$240,000
Explanation:
The computation of the amount of cash and cash equivalent is as follows;
Amount of cash and cash equivalents is
= Money market account + 90-day certificate of deposit + Checking account for 101 - Checking account for
= $25,000 + $50,000 + ($175,000 - $10,000)
= $25,000 + $50,000 + $165,000
= $240,000
As CEO of ​, knows it is important to control costs and to respond quickly to changes in the highly competitive​ boat-building industry. When Consulting proposes that invest in an ERP​ system, she forms a team to evaluate the​ proposal: the plant​ engineer, the plant​ foreman, the systems​ specialist, the human resources​ director, the marketing​ director, and the management accountant. A month​ later, management accountant reports that the team and estimate that if implements the ERP​ system, it will incur the following​ costs:
a. $435,000 in software costs
b. $95,000 to customize the ERP software and load Aqua Marine's data into the new ERP system
c. $105,000 for employee training
The team estimates that the ERP system should provide several benefits:
a. More efficient order processing should lead to savings of $105,000.
b. Streamlining the manufacturing process so that it maps into the ERP system will create savings of $125,000.
c. Integrating purchasing, production, marketing, and distribution into a single system will allow Aqua Marine to reduce inventories, saving $225,000.
d. Higher customer satisfaction should increase sales, which, in turn, should increase profits by $155,000.
Requirements
a. If the ERP installation succeeds, what is the dollar amount of the benefits?
b. Should Aqua Marine install the ERP system? Why or why not? Show your calculations.
c. Why did Easton create a team to evaluate Rose's proposal? Consider each piece of cost-benefit information that management accountant Cole reported. Which person on the team is most likely to have contributed each item? (Hint: Which team member is likely to have the most information about each cost or benefit?)
Answer:
a.) Total benefit if the ERP installation succeeds = $610,000
b.) They should not install the ERP system.
c.) For Estimating software costs - Systems specialist
For Estimating cost of loading data into the new ERP system - Management accountant , Systems specialist
For Customize the ERP software - Management accountant , Systems specialist
For Estimating customization costs - All team members
For Estimating training costs - Human resource director
For Savings from more efficient order processing - Systems specialist , Management accountant
For Savings from streamlining the manufacturing process - Plant engineer , Plant foreman
For Evaluating the effects of integrating purchasing, production, marketing, and distribution into a single system - Plant foreman
For Estimating increase in sales from higher customer satisfaction - Marketing director
For Estimating benefits and costs - All team members
For Evaluating the effects of integrating purchasing, production, marketing, and distribution into a single system - Plant foreman
For Estimating increase in sales from higher customer satisfaction - Marketing director
For Estimate benefits and costs - All team members
Explanation:
a.)
If the ERP installation succeeds , the dollar amount of the benefit is as follows :
From more efficient order processing savings = $105,000
From streamlining the manufacturing process savings = $125,000
From reduce inventories savings = $225,000
From increased sales profit = $155,000
⇒Total benefit = $ 105,000 + 125,000 + 225,000 + 155,000
= $610,000
⇒Total benefit if the ERP installation succeeds = $610,000
b.)
Firstly check the Costs for installation of ERP:
Software cost = $435,000
Customizing ERP and loading data cost = $95,000
Employee training cost = $105,000
⇒Total cost = $ 435,000 + 95,000 + 105,000
= $635,000
⇒Total cost = $635,000
Now,
As we have
Total Benefit in installation of ERP = $610,000
Total cost in installation of ERP = $635,000
⇒Net benefit = $610,000 - $635,000 = -$ (25,000)
∴ we get
If Aqua Marine install the ERP system , them they face loss.
So, They should not install the ERP system.
c.)
For Estimating software costs - Systems specialist
For Estimating cost of loading data into the new ERP system - Management accountant , Systems specialist
For Customize the ERP software - Management accountant , Systems specialist
For Estimating customization costs - All team members
For Estimating training costs - Human resource director
For Savings from more efficient order processing - Systems specialist , Management accountant
For Savings from streamlining the manufacturing process - Plant engineer , Plant foreman
For Evaluating the effects of integrating purchasing, production, marketing, and distribution into a single system - Plant foreman
For Estimating increase in sales from higher customer satisfaction - Marketing director
For Estimating benefits and costs - All team members
For Evaluating the effects of integrating purchasing, production, marketing, and distribution into a single system - Plant foreman
For Estimating increase in sales from higher customer satisfaction - Marketing director
For Estimate benefits and costs - All team members
Ben wants to do business in the Middle East where it is an accepted practice to give gifts to government officials. However, Ben may not be able to carry out his plans because he doesn't want to violate The Foreign Corrupt Practices Act (FCPA), which was enacted because Congress was concerned about _______.
Answer:
U.S. corporations' use of illegal payments and bribes in international business dealings
Explanation:
From the question, we are informed about Ben who wants to do business in the Middle East where it is an accepted practice to give gifts to government officials. However, In this case, Ben may not be able to carry out his plans because he doesn't want to violate The Foreign Corrupt Practices Act (FCPA), which was enacted because Congress was concerned about U.S. corporations' use of illegal payments and bribes in international business dealings.
The Foreign Corrupt Practices can be regarded as one the U.S law of 1977 act. This law is about prohibition of citizens of U.S as well as entities from giving bribes to officials of government of foreign countries in order to be a beneficiary of their business interests
Suppose two projects have the same expected business value. Project A has a very high estimated business value along with a high probability of failure. Project B has a much lower estimated business value along with a low probability of failure. If you could do only one of the projects, which one would you choose and under what conditions
Answer:
Project B has a much lower estimated business value along with a low probability of failure.
Explanation:
In order to do only one type of project that has the same business values. I would choose a project that has a low probability of failure. Though it has a low value but in the long run will lead to economic profit and shareholders value. For selection, we need to find out the benefits gained by the project.If a person could choose only one project he must select Project B as it has a much lower estimated business value along with a low probability of failure.
What are the selection criteria for the project?Project B would be a better option to choose as it is giving less risk to business as compared to Project B in terms of failure. However, the value of Project B is less but it has the potential to generate economic profits in the long run.
Therefore, by evaluating the cost and benefit from two projects shareholder's interest would be intact more through Project B.
Learn more about project managemnet here:
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Healthy competition among businesses is good for consumers.
True or False
I say true because it seems like most likely answer.
Xercise Cycles Company has provided its year ended accounts receivables that were uncollected. The Controller has asked you to help prepare the Aging of Accounts Receivable Schedule and the corresponding journal entries. Use the information included in the Excel Simulation and the Excel functions described below to complete the task.
1) Calculate the number of days unpaid, USING THE EXCEL DAYS FUNCTION (fx).
2) Use the information above to complete the Aging of Accounts Recievable Schedule Below.
Create a formula for each age category, using the Excel IF and AND FUNCTION (fx) to determine where each customer amount belongs.
3) Prepare the adjusting journal entry for recording bad debt expense if the allowance for doubtful accounts had the following unadjusted balance:
4) Prepare the adjusting journal entry for recording bad debt expense if the Allowance for Doubtful Accounts had the following unadjusted balance:
Answer:
In the number of days unpaid column (E8), input the formula; "=DAYS(D8, C8)" then copy it down to the last item on the table.
Explanation:
Answering just the first question, the DAYS function is used to calculate the difference between day timelines. The function accepts two parameters, the first date which is the current date we are subtracting from, and the second date which is the previous date.
Find the present values of the following cash flow streams. The appropriate interest rate is 10%. (Hint: It is fairly easy to work this problem dealing with the individual cash flows. However, if you have a financial calculator, read the section of the manual that describes how to enter cash flows such as the ones in this problem. This will take a little time, but the investment will pay huge dividends throughout the course.
Year    Cash Stream A Cash Stream B
1 $100 $300
2 400 400
3 400 400
4 400 400
5 300 100
   Â
Required:
What is the value of each cash flow stream at a 0 percent interest rate?
Answer:
a. The present value of Cash flow stream A at 10% interest rate is $1,181.50; while the present value of Cash flow streams B at 10% interest rate is $1,239.13.
b. Present value of Cash flow streams A and B at 0% interest rate are both equal to $1,600.
Explanation:
a. Calculations of the present values of Cash Flow Stream A and B at 10% interest rate
The present value (PV) for a particular year can be calculated using the following formula:
PV = FV / (1 + r)^n
Where:
PV = present value of a particular year
FV = Future value or cash stream of a particular year
r = interest rate = 10%
n = The particular year in focus
The present value of cash flow streams at a particular interest rate is the sum of the present values of Cash Stream for all years, and this can be calculated as follows:
Present value of Cash flow stream A at 10% interest rate = (100 / (1 + 10%)^1) + (400 / (1 + 10%)^2) + (400 / (1 + 10%)^3) + (400 / (1 + 10%)^4) + (300 / (1 + 10%)^5) = $1,181.50
Present value of Cash flow streams B at 10% interest rate = (300 / (1 + 10%)^1) + (400 / (1 + 10%)^2) + (400 / (1 + 10%)^3) + (400 / (1 + 10%)^4) + (100 / (1 + 10%)^5) = $1,239.13
b. Calculations of the present values of Cash Flow Stream A and B at 0% interest rate
The present value of cash flow streams at a 0% is simply the sum of Cash Flow Stream for all years, and this can be calculated as follows:
Present value of Cash flow stream A at 0% interest rate = $100 + $400 + $400 + $400 + $300 = $1,600
Present value of Cash flow streams B at 0% interest rate = $300 + $400 + $400 + $400 + $100 = $1,600
The Blueberry Designs ads show a lifestyle that is sophisticated and timeless. They recently launched a sportswear line with their trademark DB pattern and patented Blueberry soles on both hiking boots and casual footwear. Those who follow the Blueberry lifestyle are part of
Answer:
A reference group
Explanation:
Reference groups are are set of people who are used as a standard for how to comply with social norms thereby influencing our ideas, values, behaviour, and appearance.
For example a reference group can be a set of people that have achieved a certain level of importance in a field by following a standard.
In the given scenario Blueberry Designs ads show a lifestyle that is sophisticated and timeless.
Those that follow the standards set by Blueberry designs can be said to be a reference group
This type of insurance pays to fix damages that you cause, but does not cover your own car
Primare Corporation has provided the following data concerning last month's manufacturing operations
Purchases of raw materials $30,000
Indirect materials included in manufacturing overhead $4,900
Direct labor $58,500
Manufacturing overhead applied to work in process $88,500
Underapplied overhead $4,170
Inventories Beginning Ending
Raw materials $11,100 $18,200
Work in process $55,100 $68,400
Finished goods $34,100 $42,200
1. Prepare a schedule of cost of goods manufactured for the month.
2. Prepare a schedule of cost of goods sold for the month. Assume the underapplied or overapplied overhead is closed to Cost of Goods Sold.
Answer:
Primare Corporation
1. A Schedule of Cost of Goods Manufactured for the month:
Beginning WIP $55,100
Raw materials used 18,000
Direct labor 58,500
Manufacturing o/h 88,500
Ending Balance (68,400)
$151,700
2. A Schedule of Cost of Goods Sold for the month:
Finished goods inventory $34,100
Cost of manufacturing 151,700
Ending Finished goods (42,200)
Underapplied overhead 4,170
Cost of goods sold $147,770
Explanation:
a) Data and Calculations:
Purchases of raw materials $30,000
Indirect materials included in manufacturing overhead $4,900
Direct labor $58,500
Manufacturing overhead applied to work in process $88,500
Underapplied overhead $4,170
Inventories Beginning Ending
Raw materials $11,100 $18,200
Work in process $55,100 $68,400
Finished goods $34,100 $42,200
Raw materials
Beginning Balance $11,100
Purchase 30,000
Manufacturing overhead $4,900
Work in process 18,000
Ending Balance $18,200
Work in process
Beginning Balance $55,100
Raw materials 18,000
Direct labor 58,500
Manufacturing o/h 88,500
Finished goods $151,700
Ending Balance $68,400
Finished goods
Beginning Balance $34,100
WIP 151,700
Cost of goods sold $143,600
Ending Balance $42,200
The total cost accumulated in the sales department using the reciprocal method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar): $150,050. $142,471. $102,222. $122,402. $127,778.
Answer:
$127,778
Explanation:
Calculation for total cost accumulated in the sales department using the reciprocal method
Direct operating cost$70,000
Acturial Cost allocated 24,000
Premium Ratings allocated cost 24,000
Acturial Cost allocated 6400
Premium Ratings allocated cost 2400
Acturial Cost allocated 640
Premium Ratings allocated cost 240
Acturial Cost allocated 64
Premium Ratings allocated cost 24
Acturial Cost allocated 6
Premium Ratings allocated cost 2
Acturial Cost allocated 1
Premium Ratings allocated cost 0
Total cost accumulated $127,778
Therefore total cost accumulated in the sales department using the reciprocal method is $127,778
The table shows the PPF of an island community. Choose the best statement.
Possibility Fish (pounds) Berries (pounds)
A 0 and 40
B 1 and 36
C 2 and 30
D 3 and 22
E 4 and 12
F 5 and 0
a. Suppose that this community produces 3 pounds of fish and 20 pounds of berries. If it decides to gather more berries, it faces a tradeoff.
b. When this community produces 4 pounds of fish and 12 pounds of berries it faces a tradeoff, but it is inefficient.
c. Suppose that this community produces 5 pounds of fish and 0 pounds of berries. If it decides to gather some berries, it will get a free lunch.
d. If this community produces 3 pounds of fish and 22 pounds of berries, production is efficient but to produce more fish it faces a tradeoff.
Answer:
d. If this community produces 3 pounds of fish and 22 pounds of berries, production is efficient but to produce more fish it faces a tradeoff.
TRUE, IF THEY WANT TO PRODUCE MORE FISH, THEY WILL PRODUCE LESS BERRIES
Explanation:
a. Suppose that this community produces 3 pounds of fish and 20 pounds of berries. If it decides to gather more berries, it faces a tradeoff.
FALSE, THEY CAN GATHER 2 MORE POUNDS OF BERRIES WITHOUT AFFECTING FISH
b. When this community produces 4 pounds of fish and 12 pounds of berries it faces a tradeoff, but it is inefficient.
FALSE, THIS COMBINATION LIES ON THE PPF CURVE
c. Suppose that this community produces 5 pounds of fish and 0 pounds of berries. If it decides to gather some berries, it will get a free lunch.
FALSE, IT WILL HAVE TO LOSE SOME FISH
When using the Copy to Purchase Order feature from within an Estimate , where do you need to turn on USE Purchase orders?
Answer: From expenses within the Accounts & settings.
Explanation:
When using the copy to purchase order feature within an estimate, to turn on USE purchase orders you navigate to expenses under accounts and settings. When you get to the accounts and settings you would see the feature that shows "Expenses" tab. In the Purchase orders section, select the edit icon. Turn on the Use purchase orders options.
Answer:account and settings, expenses, purchase order
Explanation:
Atlantic Corporation reported the following amounts at the end of the first year of operations: Common stock $ 270,000 Sales revenue $ 940,000 Total assets $ 740,000 Dividends declared $ 65,000 Total liabilities $ 410,000 What are the retained earnings of Atlantic at the end of the year, and what amount of expenses were incurred during the year
Answer:
See below
Explanation:
According to the above information, Retained earning is
Sales revenue $940,000 - dividend declared $65,000 = $875,000
Retained earning is $857,000
In the text, we supposed a college education raised a person's wage by $30,000 per year, from $40,000 to $70,000. Assume the relevant interest rate is 3%, there is no growth in wages, and you are expected to retire at 65 years old after you graduate high-school. (a): Suppose you are a 18 year old graduating high school senior deciding whether or not to go to college. What is the present discounted value of your labor earnings if you chose not to attend college
Answer:
$1,010,668
Explanation:
if you choose not to attend college, you should be working for 65 - 18 = 47 years
your expected annual salary is $40,000
the present value of your future earnings = $40,000 x PV annuity factor
PV annuity factor = = [1 - 1/(1 + i)ⁿ] / i = [1 - 1/(1 + 0.03)⁴⁸] / 0.03 = 25.2667
present value of future earnings = $40,000 x 25.2667 = $1,010,668
Suppose you consider buying a bond promising to pay you $25 one year from now and then the same amount every year through the fifth year (that is, you should receive a total of five coupon payments). At the time you receive your fifth payment, you will also receive the bond's face value of $5,000. Suppose the interest rate for a riskless bond is 7%. The most you would be willing to pay for this bond is $ . Give your answer to two decimals.
Answer:
$3,667.44
Explanation:
The amount you would be willing to pay today can be determined by finding the present value of the cash flows
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow each year from year 1 to 4 = $25
Cash flow in year 5 = $25 + $5000
I = 7%
Present value = $3,667.44
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Susan and Bill Stamp want to set up a TDA that will generate sufficient interest at maturity to meet their living expenses, which they project to be $1,200 per month. (Round your answers to the nearest cent.)
(a) Find the amount needed at maturity to generate $1,350 per month interest, if they can get 7 % interest compounded monthly.
(b) Find the monthly payment that they would have to make into an ordinary annuity to obtain the future value found in part (a) if their money earns 9 % and the term is twenty years.
Answer:
(a) The amount needed is $192,000.
(b) The monthly payment is $150.98.
Explanation:
Note: There are errors in this question. The correct question is therefore provided before answering the question as follows:
Susan and Bill Stamp want to set up a TDA that will generate sufficient interest at maturity to meet their living expenses, which they project to be $1,200 per month. (Round your answers to the nearest cent.)
(a) Find the amount needed at maturity to generate $1,200 per month interest, if they can get 7.25% interest compounded monthly.
(b) Find the monthly payment that they would have to make into an ordinary annuity to obtain the future value found in part (a) if their money earns 9.75% and the term is twenty years.
The explanation of the answer is now given as follows:
(a) Find the amount needed at maturity to generate $1,200 per month interest, if they can get 7.25% interest compounded monthly.
This can be calculated using the following future value formula:
FV = P / i ........................... (1)
Where;
FV = Amount needed at maturity = ?
P = Monthly payment or amount to generate monthly = $1,200
i = monthly interest rate = Annual interest rate / 12 = 7.25% / 12 = 0.075 / 12 = 0.00625
Substituting the values into equation (1), we have:
FV = $1,200 / 0.00625 = $192,000
Therefore, the amount needed is $192,000.
(b) Find the monthly payment that they would have to make into an ordinary annuity to obtain the future value found in part (a) if their money earns 9.75% and the term is twenty years.
This can be calculated using the Future Value (FV) of an Ordinary Annuity as follows:
FV = M * (((1 + r)^n - 1) / r) ................................. (2)
Where,
FV = Future value = $192,000
M = Monthly payment = ?
r = Monthly interest rate = 9.75% / 12 = 0.0975 / 12 = 0.008125
n = number of months = 25 years * Number of months in a year = 25 * 12 = 300
Substituting the values into equation (2) and solve for M, we have:
$192,000 = M * (((1 + 0.008125)^300 - 1) / 0.008125)
$192,000 = M * 1271.65920375075
M = $192,000 / 1271.65920375075
M = $150.98
Therefore, the monthly payment is $150.98.
Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete, and Roy.
Year 1 Year 2
Amounts billed to clients for services rendered $ 170,000 $ 220,000
Cash collected from clients 160,000 190,000
Cash disbursements
Salaries paid to employees for services rendered during the year 90,000 100,000
Utilities 30,000 40,000
Purchase of insurance policy 60,000 0
In addition, you learn that the firm incurred utility costs of $35,000 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period.
Required:
1. & 3. Calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the firm would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model.
2. Prepare an income statement for each year according to the accrual accounting model.
Revenues not attempted not attempted
Expenses:
Salaries 90,000selected answer correct 100,000selected answer correct
Utilities 30,000selected answer incorrect 40,000selected answer incorrect
Insurance 60,000selected answer incorrect 0selected answer incorrect
Net income (loss)
Answer:
Pete, Pete, and Roy
1. Net operating cash flow for years 1 and 2
Year 1 Year 2
Cash collected from clients $160,000 190,000
Cash disbursements
Salaries paid to employees 90,000 100,000
Utilities 30,000 40,000
Purchase of insurance policy 60,000 0
Total disbursements $180,000 $140,000
Net operating cash flow ($20,000) $50,000
3. Amount of receivables in year 1 and 2:
Year 1 Year 2
Beginning balance $10,000
Amounts billed to clients for
services rendered $ 170,000 $ 220,000
Cash collected from clients 160,000 190,000
Balance $10,000 $40,000
2. Pete, Pete, and Roy
Income Statements for years 1 and 2:
Year 1 Year 2
Service Revenue $ 170,000 $ 220,000
Expenses:
Salaries expense 90,000 100,000
Utilities expense 35,000 35,000
Insurance expense 20,000 20,000
Total expenses $145,000 $155,000
Net income $25,000 $65,000
Explanation:
a) Data and Calculations:
Year 1 Year 2
Amounts billed to clients for
services rendered $ 170,000 $ 220,000
Cash collected from clients 160,000 190,000
Cash disbursements
Salaries paid to employees 90,000 100,000
Utilities 30,000 40,000
Purchase of insurance policy 60,000 0
Utility costs incurred in year 1 = $35,000
Net operating cash flow for years 1 and 2
Year 1 Year 2
Cash collected from clients $160,000 190,000
Cash disbursements
Salaries paid to employees 90,000 100,000
Utilities 30,000 40,000
Purchase of insurance policy 60,000 0
Total disbursements $180,000 $140,000
Net operating cash flow ($20,000) $50,000
Insurance expense per year = $60,000/3 = $20,000
Utilities for year 1 = $35,000
Utilities for year 2 = $35,000
ExxonMobil reports total assets of $188 billion and total liabilities of $87 billion. Citigroup reports total liabilities of $1,300 billion and stockholders' equity of $90 billion. Amazon reports total assets of $2.7 billion and total stockholders' equity of $0.10 billion. Nike reports an increase in assets of $1.00 billion and an increase in liabilities of $0.5 billion. Kellogg's reports a decrease in liabilities of $0.44 billion and an increase in stockholders' equity of $0.04 billion. (Enter your answers in billions rounded to 2 decimal places. Negative amounts should be indicated by a minus sign.) Required: What is the amount of stockholders' equity of ExxonMobil
Answer:
$101 billion
Explanation:
The computation of the amount of stockholders' equity of ExxonMobil is shown below:
As we know that
Total assets = Total liabilities + stockholder equity
where,
total assets is $188 billion
And, the total liabilities is $87 billion
So, the stockholder equity is
= $188 billion - $87 billion
= $101 billion
