Answer:
the purchase of a foreign asset and a forward contract in the market for foreign exchange.
Explanation:
An arbitrage is a type of trade that is caused as a result of market inefficiency.
For example, if a stock is trading at $50 on the London Stock Exchange (LSE) while it is trading for $52 on the New York Stock Exchange (NYSE) at the same time. Philip buys the stock on the LSE and sells the same shares immediately on the NYSE and earns a profit of $2 per share, this is referred to as an arbitrage.
This ultimately implies that, arbitrage allows an individual to profit from the price difference between similar goods, commodity, securities or currency in different markets.
A covered interest arbitrage can be defined as trading strategy in which an investor minimizes his or her currency risk by using a forward contract to hedge against the interest rate difference between two countries i.e the exchange rate risk. Thus, it's considered to be the most common interest rate arbitrage around the world.
Hence, a covered interest arbitrage involves both the purchase of a foreign asset and a forward contract in the market for foreign exchange.
Feldpausch Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $1,372,578 61,800 machine-hours Processing orders $63,235 2,010 orders Inspection $151,316 2,090 inspection-hours The company makes 600 units of product W26B a year, requiring a total of 1,200 machine-hours, 78 orders, and 34 inspection-hours per year. The product's direct materials cost is $49.55 per unit and its direct labor cost is $12.44 per unit. The product sells for $128.70 per unit. According to the activity-based costing system, the product margin for product W26B is:_____.a. $8,458.52.b. $10,920.12.c. $40,026.00.d. $10,912.40.
Answer:
The correct answer is A.
Explanation:
First, we need to calculate the activities rates:
Assembly= 1,372,578/61,800= $22.21 per machine-hour
Processing orders= 63,235/2,010= $31.46 per order
Inspection= 151,316/2,090= $72.4 per inspection-hour
Now, we allocate costs to W26B:
Assembly= 22.21*1,200= 26,652
Processing orders= 31.46*78= 2,453.88
Inspection= 72.4*34= 2,461.6
Total allocated costs= $31,567.48
Finally, the unitary cost and margin for W26B:
Unitary allocated cost= 31,567.48/600= $52.61
Unitary total cost= 49.55 + 12.44 + 52.61= $114.6
Product margin= 128.7*600 - 114.6*600= $8,460
Imagine you own a food truck that sells gourmet vegan tacos. You rely on many suppliers, all of which also supply their goods to your competitors (other food trucks in the area). For some items, like paper plates and napkins, you have several suppliers. For other items, like extra-firm tofu, you rely on a single supplier. What is an industry analysis most likely to suggest?
a) The power of suppliers is relatively high for some items and relatively low for others. You should find other suppliers of extra-firm tofu so that you have a more diverse supply
b) The power of suppliers is high overall, because you have so many of them You need to consolidate to fewer suppliers, so you have more bargaining power
c) The power of suppliers is relatively low since you work with so many of them. However, you should have your tofu supplier also supply your paper plates and napkins so that you have a more diverse supply of these paper products
d) None of the above Ос.
Answer:
A
Explanation:
Because there are plenty of suppliers for some goods, the food truck owner is more powerful in this case than the suppliers. Here the power of suppliers is low
For the other goods with only a single supplier. the supplier has more powerful than the taco seller. here the power of supplier is high. If the supplier increases price, the taco seller would most likely have an inelastic demand and would be at the mercy of the supplier
thus, the power of suppliers is relatively high for some items and relatively low for others.
During its first year of operations, Indigo Corporation had credit sales of $3,213,200, of which $361,300 remained uncollected at year-end. The credit manager estimates that $16,880 of these receivables will become uncollectible. Prepare the journal entry to record the estimated uncollectibles. (Assume an unadjusted balance of zero in Allowance for Doubtful Accounts.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit LINK TO TEXTLINK TO TEXT INTERACTIVE TUTORIAL INTERACTIVE TUTORIAL Prepare the current assets section of the balance sheet for Indigo Corporation, assuming that in addition to the receivables it has cash of $91,990, merchandise inventory of $189,180, and supplies of $12,580. (List current assets in order of liquidity)
Answer and Explanation:
The journal entry is given below;
Bad debts expense $16,880
To Allowance for doubtful accounts $16,880
(Being the bad debt expense is recorded)
The preparation of the current asset section of the balance sheet is presented below:
Cash $91,990
Accounts receivable $361,300
less:allowance for doubtful accounts-$16,880 $344,420
Merchandise inventory $189,180
Supplies $12,580
total current assets $638,170
Given the accelerated pace of technological change, in combination with deregulation, globalization, and demographic shifts, a firm will only be successful today if its:
a. resource advantage is maintained for a short period of time.
b. internal strengths change with its external environment in a dynamic fashion.
c. resource advantage is not causally ambiguous or socially complex.
d. competitive advantage is derived from static resource or market advantages.
Answer:
Option b. Internal strengths change with its external environment in a dynamic fashion.
Explanation:
The main forces driving industry evolution all over the world are Technology and demand.
Technological change is a form of social and institutional compiled or embedded process. It is limited by their social and economic views. The choices and technologies used are affected by the drive for profit, capital accumulates and investment etc. has compressed greatly as the pace of technological change has also increased or accelerated.
The accelerated pace of technological change, in combination with deregulation, globalization, and demographic shifts, dynamic markets today are the rule. As response, a firm may create, deploy, modify, reconfigure, or upgrade resources so as to give value to customers and/or lower costs.
Types of technological change
1. Incremental innovations:
2. Radical innovations
3. Changes of technology system
4. Changes in the techno-economic paradigm
The problem of determining what goods and services society should produce: would not exist if government owned all of the resources. exists because we can produce more than we need or want. exists because there are not enough resources to provide all of the goods and services that people want. would not exist if all goods and services were scarce.
Answer:
exists because there are not enough resources to provide all of the goods and services that people want.
Explanation:
Factors of production can be defined as the fundamental building blocks used by individuals or business firms for the manufacturing of finished goods and services in order to meet the unending needs and requirements of their customers.
The four factors of production are;
I. Land: this refers to the natural resources and raw materials extracted from the ground or grown in the soil e.g oil, gold, rubber, cocoa, etc.
II. Labor (working): this is the human capital or workers who are saddled with the responsibility of overseeing and managing all the aspects of production.
III. Capital resources: it includes the physical assets used for production of goods and services such as equipment, money, plant, etc.
IV. Entrepreneurship: it is intellectual capacity required to drive a business and the skills to develop an idea into a money making venture (business).
These four (4) factors of production when combined effectively and efficiently are used for the manufacturing or production of goods and services that meets the unending requirements or needs of the consumers.
However, the problem of determining what goods and services society should produce in order to meet the unending requirements or needs (demands) of consumers, exists because there are not enough resources such as the factors of production to provide all of the goods and services that consumers want.
Suppose that Raphael, an economist from an AM talk radio program, and Susan, an economist from a school of industrial relations, are arguing Over saving incentives. The following dialogue Shows an excerpt from their debate:
Susan: I think it's safe to say that, in general, the savings rate of households in today's economy is much lower than it really needs to be to sustain an improvement in living standards.
Raphael: I think a switch from the income tax to a consumption tax would bring growth in living standards.
Susan: You really think households would change their saving behavior enough in response to this to make a difference? Because I don't.
The disagreement between these economists is most likely due to_____________ . Despite their differences, with which proposition are two economists chosen at random most likely to agree?
a. Rent ceilings reduce the quantity and quality of available housing.
b. Immigrants receive more in government benefits than they contribute in taxes.
c. Having a single income tax rate would improve economic performance.
Answer:
a. Difference in values
b. a. Rent ceilings reduce the quantity and quality of available housing.
Explanation:
The disagreement between these economists is most likely due to difference in values.
Economists are known to disagree a lot with each other and this is down to them having different values and perspectives with regards to several economic decisions. This is why there are different economic theories subscribed to by economists such as Keynesian and New Classical theories.
Despite these disagreements however, there are certain things they would always agree on and one of those is that rent ceilings reduce the quantity and quality of available housing.
The logic behind this is that imposing a rent ceiling would dissuade real estate investors from putting in more money to develop properties because the rent ceiling would limit the returns that they can get.
Supply of real estate would also fall because less investors would go into the market because they would fear being unable to recoup adequate returns on account of the rent ceiling.
Poe Company is considering the purchase of new equipment costing $89,500. The projected annual cash inflows are $39,700, to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of an annuity of 1 and present value of an annuity for different periods is presented below. Compute the net present value of the machine.
Periods Present Value of 1 at 10% Present Value of an Annuity of 1 at 10%
1 0.9091 0.9091
2 0.8264 1.7355
3 0.7513 2.4869
4 0.6830 3.1699
A. $(22,101).
B. $(36,345).
C. $22,101.
D. $54,919.
E. $36,345.
Answer: E. $36,345
Explanation:
Net present value = Present value of inflows - Cost of equipment
The inflow is an annuity as it is a constant amount so is calculated as:
Present value of inflows = Inflow * Present value interest factor of an annuity, 10%, 4 years
= 39,700 * 3.1699
= $125,845.03
Net present value = 125,845.03 - 89,500
= $36,345.03
A five-year note payable would appear on the balance sheet as a(n) a.disclosure in the notes only. b.long-term liability for the entire amount owed. c.current liability for any portion due within one year. d.intangible asset.
Answer: current liability for any portion due within one year
Explanation:
Notes payable are referred to as the written agreements whereby one party agrees to pay the other party a certain amount of money.
It should be noted that on the balance sheet, notes payable will appear as liabilities. In a situation when the amount is due within a year, then it's considered to be current liabilities while it's regarded as a long-term liability when it's more than a year,
It should be noted that a five-year note payable would appear on the balance sheet as current liability for any portion due within one year.
Compute the future value of a $105 cash flow for the following combinations of rates and times.
a. r = 8%; t = 10 years
b. r = 8%; t = 20 years
c. r = 4%; t = 10 years
d. r = 4%; t = 20 years
Answer:
The answer is
A. $226.69
B. $489.40
C. $155.43
D. $230.07
Explanation:
A.
PV = 105
i = 8%
N = 10years
FV =. ?
Using texas BA II plus
PV -105; I/Y = 8; N = 10; CPT FV= 226.69
Therefore, future value of $105 is $226.69
B.
PV = 105
i = 4%
N = 10years
FV =. ?
Using texas BA II plus
PV -105; I/Y = 8; N = 20; CPT FV= 489.40
Therefore, future value of $105 is $489.40
C.
PV = 105
i = 4%
N = 10years
FV =. ?
Using texas BA II plus
PV -105; I/Y = 4; N = 10; CPT FV= 155.43
Therefore, future value of $105 is $155.43
D.
PV = 105
i = 4%
N = 20years
FV =. ?
Using texas BA II plus
PV -105; I/Y = 4; N = 20; CPT FV= 230.07
Therefore, future value of $105 is $230.07
Zoey Bella Company has a payroll of $10,000 for a five-day workweek. Its employees are paid each Friday for the five-day workweek. Journalize the adjusting entry required on December 31, assuming the year ends on a Thursday. If an amount box does not require an entry, leave it blank.
Date Description Post. Ref. Debit Credit
Answer:
Wages Expense debit $8,000
Wages Payable credit $8,000
Explanation:
At the end of December 31, which is a Thursday, workers would have worked 4 days out of a 5-day week, which implies we need to recognize wages for the 4 days because it has been incurred even not yet paid
Wages for 4-days=$10,000*4/5
Wages for 4-days=$8,000
We would debit wages account with $8,000 since an increase in an expense account is a debit entry while wages payable would be credited since it is an increase in liabilities
Prepare general journal entries to record the transactions below for Spade Company by using the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment:; Accounts Payable; Recording effects of K. Spade, Capital: K. Spade, Withdrawals; Fees Earned; and Rent Expense. Use the letters beside each transactions in T-accounts transaction to identify entries. After recording the transactions, post them to T-accounts, which serves as A the general ledger for this assignment. Determine the ending balance of each T-account.
a. Kacy Spade, owner, invested $100,750 cash in the company
b. The company purchased office supplies for $1,250 cash.
c. The company purchased S10,050 of office equipment on credit.
d. The company received S15,500 cash as fees for services provided to a customer.
e. The company paid $10,050 cash to settle the payable for the office equipment purchased in transaction c
f. The company billed a customer $2,700 as fees for services provided.
g. The company paid $1,225 cash for the monthly rent.
h. The company collected S1,125 cash as partial payment for the account receivable created in transaction f.
i. Kacy Spade withdrew $10.000 cash from the company for personal use.
Answer:
a. Cash (Dr.) $100,750
Capital (Cr.) $100,750
b. Office Supplies (Dr.) $1,250
Cash (Cr.) $1,250
c. Office equipment (Dr.) $10,050
Accounts Payable (Cr.) $10,050
d. Cash (Dr.) $15,500
Service revenue (Cr.) $15,500
e. Accounts Payable (Dr.) $10,050
Cash (Cr.) $10,050
f. Accounts Receivable (Dr.) $2,700
Service Revenue (Cr.) $2,700
g. Rent Expense (Dr.) $1,225
Cash (Cr.) $1,225
h. Cash (Dr.) $1,125
Accounts Receivable (Cr.) $1,125
i. Capital / Cash (Dr.) $10,000
Drawings (Cr.) $10,000
Explanation:
Trial Balance :
Debits :
Cash $104,850
Accounts Receivable $1,575
Office supplies $1,250
Office equipment $10,050
Rent expense $1,225
Total $118,950
Credits :
Accounts Payable 0
Service Revenue $18,200
Capital $90,750
Drawings $10,000
Total $118,950
Favaz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $9; fixed manufacturing costs, $60,000; variable selling and administrative costs per unit, $2; and fixed selling and administrative costs, $220,000. The company sells its units for $45 each. Additional data follow.
Planned production in units 10,000
Actual production in units 10,000
Number of units sold 8,500
There were no variances. The net income (loss) under absorption costing is:
a. (7500)
b. 9,000
c. 15,00
d. 18,000
e. Some other amount
Answer:
I think it might be b. 9,000
If a well-diversified portfolio of stocks has an expected return of 15% when the expected return on the market portfolio is 10%, then:_____
a. Treasury bills are offering a 7% yield.
b. The portfolio beta is greater than 1.0.
c. The portfolio beta equals 1.67.
d. The investor's portfolio contains many defensive stocks.
Answer:
B
Explanation:
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
Systemic risk is measured by beta. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors
Market beta is represented by 1. If a portfolio has a beta that is higher than 1, it means that it is more risky than the market portfolio and investors would demand a higher return than the market portfolio
Trevor heard a burglar entering through a living room window.He grinned as he picked up his gun. Crouching behind the sofa in his darkened home,he ambushed and killed the intruder with several well placed shots.He then added another notch in his trusty side-arm.Trevor most probably:____________
a. has exercised his constitutional right of self-defense.
b. has acted legally,because the shooting took place inside his home.
c. has acted legally if,but only if,the burglar was armed with a gun.
d. is guilty of a homicide,or at least voluntary manslaughter.
Answer: D. guilty of a homicide, or at least voluntary manslaughter.
Explanation:
Homicide is the act whereby a human being kills another person. A homicide can be reckless or accidental. Voluntary manslaughter is when someone else is killed unlawfully such as for self-defense.
Therefore, Trevor most probably be guilty of a homicide, or at least voluntary manslaughter.
Part II of the Lionbridge examination, Page Quality.
Answer:
part2 contains web page quality part.
Explanation:
the best way to pass the lionbridge exam is exceptional preparation with a sharp eye. you have to answer at least 80% of the questions correctly
XYZ uses a single plantwide predetermined overhead rate based on MHs. It estimated the following data:
Total MHs 40,000
Total fixed MOH cost $ 344,000
Variable MOH per MH $ 3.90
Recently, Job M759 was completed. It required 60 MHs. The overhead applied to Job M759 is closest to:______ (Round your intermediate calculations to 2 decimal places.)
a. $516
b. $234
c. $750
d. $984
Answer:
See below
Explanation:
Given the above information, the overhead applied to job M759 is computed as;
= Variable MOH per MH × Required MH
Given that:
Variable MOH per MH = $3.90
MH = 60 MHs
Hence,
Overhead applied to job M759
= $3.90 × 60
= $234
On March 1, a designer received a check for $7,500 from a customer for services to be provided after the customer chooses a color scheme for the first floor of her house. On July 31, the designer completed the design work for this customer.
Required:
Journalize the entries.
Answer:
Date Account Title Debit Credit
March 1 Cash $7,500
Unearned Revenue $7,500
Date Account Title Debit Credit
July 31 Unearned Revenue $7,500
Design Services Revenue $7,500
In March the revenue had not been earned as the work had not been carried out so the revenue will be sent to the Unearned revenue account.
When the designer finishes in July, they can now recognize the revenue so it will be moved from the Unearned revenue account to the proper revenue account.
Now, consider the situation in which Noah wants to earn a return of 7%, but the bond being considered for purchase offers a coupon rate of 9%. Again, assume that the bond pays semiannual interest payments and has three years to maturity. If you round the bond's intrinsic value to the nearest whole dollar, then its intrinsic value of
Answer:
$1,053.29
Explanation:
The intrinsic value of the bond is the present value of the bond's future cash flows, semiannual coupons for 3 years as well as the face value at the bond's maturity payable to bondholders.
The bond price can be determined using a financial calculator bearing in mind that the calculator would be set to its default end mode before making the following inputs:
N=6(there are 6 semiannual coupons in 3 years)
PMT=45(semiannual coupon=1000*9%*6/12=45)
I/Y=3.5(semiannual yield=7%*6/12=3.5%
FV=1000*(the face value of the bond is $1000)
CPT
PV=$1,053.29
Hollyfield Corporation sold a piece of equipment on September 30, 2018 for $201,000 cash. The equipment had been purchased on January 1, 2012 for $450,000. It had an estimated useful life of 10 years and a $50,000 residual value. Hollyfield Corp. has been using the straight-line method of depreciation and has a year-end of December 31st. Compute the gain or loss on disposal.
Answer:
$2,000
Explanation:
the gain or loss on disposal is
10. Which of the following is NOT a reason that real GDP is a poor measure of a nation's
economic welfare?
A)Real GDP omits measures of political freedom.
b) Real GDP does not consider the value of people's leisure time.
c) Real GDP does not include the underground economy.
D) Real GDP omits household production.
Answer:
A)Real GDP omits measures of political freedom.
Explanation:
The Real Gross Domestic Product is a measure of all the goods produced in an economy within a year but with changes in price levels triggered by inflation factored in. Political freedom does not affect economic freedom. People may be restricted politically but still, go about their normal economic activities.
Because the Real GDP basically focuses on transactions done in the markets, it might not accurately measure the growth rate because some people conduct illegal businesses underground that are not captured by the government, while some produce their goods at home. Also, leisure time is not factored and it is important because an increase in leisure time will affect time spent in activities that improve the economy.
A bond has a modified duration of 8 and a price of 112,955 calculated using an annual effective interest rate of 6.4%. EMAC is the estimated price of this bond at an interest rate of 7.0% using the first-order Macaulay approximation. EMOD is the estimated price of this bondat an interest rate of 7.0% using the first-order modified approximation.Calculate EMAC - EMOD A. 91 B. 102 C. 116 D. 127 E. 143
Answer:
8.4%
Explanation:
The Bug House purchased some new machinery last year at a total cost of $18,500. The depreciation to date on this machinery is $3,400. Should the firm opt to sell the machinery today, it could probably do so at a price of $14,150. What is the current book value of this machinery
Answer:
No, 15,100
Explanation:
The book value is 15,100 (18500-3400) which is more than the potential sales price of 14,150.
I wouldn’t sell the equipment since it is worth more (15,100) than potential sales price.
Flexible Budgeting
At the beginning of the period, the Fabricating Department budgeted direct labor of $9,280 and equipment depreciation of $2,300 for 640 hours of production. The department actually completed 600 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting.
Flexible Budgeting
At the beginning of the period, the Grinding Department budgeted direct labor of $55,200 and property tax of $30,000 for 2,400 hours of production. The department actually completed 2,900 hours of production. Determine the budget for the department, assuming that it uses flexible budget.
Answer:
Results are below.
Explanation:
Giving the following information:
The flexible budget is adapting the standard costs to the actual quantity.
Fabricating Department:
Depreciation= $2,300
Standard hourly rate= 2,300/640= $3.594
The department completed 600 hours of production.
Actual budget:
Depreciation= 2,300
Direct labor= 3.594*600= 2,156.4
Total cost= $4,456.4
Grinding Department:
Property tax= $30,000
Standard hourly rate= 55,200/2,400= $23
The department completed 2,900 hours of production.
Actual budget:
Property tax= $30,000
Direct labor= 23*2,900= 66,700
Total cost= $96,700
Cordell Inc. experienced the following events in Year 1, its first year of operation:
Received $59,000 cash from the issue of common stock.
Performed services on account for $81,000.
Paid a $5,900 cash dividend to the stockholders.
Collected $65,000 of the accounts receivable.
Paid $59,000 cash for other operating expenses.
Performed services for $19,000 cash.
Recognized $2,900 of accrued utilities expense at the end of the year.
Required:
a. Identify the events that result in revenue or expense recognition and those which affect the statement of cash flows.
b. Based on your response to Requirement a, determine the amount of net income reported on the 2018 income statement.
Answer:
Cordell Inc.
a. Events that result in revenue or expense recognition:
Performed services on account for $81,000.
Paid $59,000 cash for other operating expenses.
Performed services for $19,000 cash
Recognized $2,900 of accrued utilities expense at the end of the year.
b. Events that affect the Statement of Cash Flows:
Received $59,000 cash from the issue of common stock.
Paid a $5,900 cash dividend to the stockholders.
Collected $65,000 of the accounts receivable.
Paid $59,000 cash for other operating expenses.
Performed services for $19,000 cash
b. The amount of the net income reported on the 2018 income statement is:
= $38,100.
Explanation:
a) Data and Analysis:
Cash $59,000 Common stock $59,000
Accounts Receivable $81,000 Service Revenue $81,000
Cash Dividend $5,900 Cash $5,900
Cash $65,000 Accounts receivable $65,000
Operating $59,000 Cash $59,000
Cash $19,000 Service Revenue $19,000
Utilities Expense $2,900 Utilities Payable $2,900
Revenue:
Accounts Receivable $81,000
Cash $19,000 $100,000
Expenses:
Operating $59,000
Utilities Expense $2,900 $61,900
Net income $38,100
Sandhill Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred.
June
1 Purchased books on account for $2,575 (including freight) from Catlin Publishers, terms 2/10, n/30.
3 Sold books on account to Garfunkel Bookstore for $1,300. The cost of the merchandise sold was $900.
6 Received $75 credit for books returned to Catlin Publishers.
9 Paid Catlin Publishers in full.
15 Received payment in full from Garfunkel Bookstore.
17 Sold books on account to Bell Tower for $1,150. The cost of the merchandise sold was $750.
20 Purchased books on account for $900 from Priceless Book Publishers, terms 3/15, n/30.
24 Received payment in full from Bell Tower.
26 Paid Priceless Book Publishers in full.
28 Sold books on account to General Bookstore for $1,900. The cost of the merchandise sold was $970. 30 Granted General Bookstore $130 credit for books returned costing $90.
Required:
Journalize the transactions for the month of June for Sandhill Warehouse, using a perpetual inventory system.
Answer:
01-Jun
Dr Inventory $2,575
Cr Accounts Payable $2,575
03-Jun
Dr Accounts Receivable $1,300
Cr Sales $1,300
03-Jun
Dr Cost of goods sold $900
Cr Inventory $900
06-Jun
Dr Accounts Payable $75
Cr Inventory $75
09-Jun
Dr Accounts Payable $2,500
Cr Cash $2,450
Cr Inventory $50
15-Jun
Dr Cash $1,300
Cr Accounts Receivable $1,300
17-Jun
Dr Accounts Receivable $1,150
Cr Sales $1,150
17-Jun
Dr Cost of goods sold $ 750
Cr Inventory $ 750
20-Jun
Dr Inventory $ 900
Cr Accounts Payable $ 900
24-Jun
Dr Cash $1,127
Dr Sales Discounts $ 23
Cr Accounts Receivable $1,150
26-Jun
Dr Accounts Payable $ 900
Cr Cash $873
Cr Inventory $27
28-Jun
Dr Accounts Receivable $1,900
Cr Sales $1,900
28-Jun
Dr Cost of goods sold $970
Cr Inventory $970
30-Jun
Dr Sales Returns & Allowances $130
Cr Accounts Receivable $130
30-Jun
Dr Inventory $90
Cr Cost of goods sold $90
Explanation:
Preparation of the journal entries for the month of June for Sandhill Warehouse, using a perpetual inventory system.
01-Jun
Dr Inventory $2,575
Cr Accounts Payable $2,575
03-Jun
Dr Accounts Receivable $1,300
Cr Sales $1,300
03-Jun
Dr Cost of goods sold $900
Cr Inventory $900
06-Jun
Dr Accounts Payable $75
Cr Inventory $75
09-Jun
Dr Accounts Payable $2,500
($2,575-$75)
Cr Cash $2,450
($2,500-$50)
Cr Inventory $50
($2,500*2%)
15-Jun
Dr Cash $1,300
Cr Accounts Receivable $1,300
17-Jun
Dr Accounts Receivable $1,150
Cr Sales $1,150
17-Jun
Dr Cost of goods sold $ 750
Cr Inventory $ 750
20-Jun
Dr Inventory $ 900
Cr Accounts Payable $ 900
24-Jun
Dr Cash $1,127
($1,150-$23)
Dr Sales Discounts $ 23
($1,150*2%)
Cr Accounts Receivable $1,150
26-Jun
Dr Accounts Payable $ 900
Cr Cash $873
($900-$27)
Cr Inventory $27
(900*3%)
28-Jun
Dr Accounts Receivable $1,900
Cr Sales $1,900
28-Jun
Dr Cost of goods sold $970
Cr Inventory $970
30-Jun
Dr Sales Returns & Allowances $130
Cr Accounts Receivable $130
30-Jun
Dr Inventory $90
Cr Cost of goods sold $90
Pet Supply purchased some fixed assets two years ago at a cost of $43,800. It no longer needs these assets so it is going to sell them today for $32,500. The assets are classified as five-year property for MACRS. The MACRS rates are 20%, 32% 19.2%, 11.52%, 11.52%, 5.76%, for years 1 to 6, respectively. What is the net cash flow (A-T Salvage Value) from this sale if the firm's tax rate is 35 percent
Answer:
$28,483.4
Explanation:
The computation of the net cash flow is shown below;
Asset cost $43,800
MACRS Rate 0.2 0.32
8760 14016
So total depreciation is
= $8,760 + $14,016
= $22,776
Now
Book Value of the company is
= oriignal value - depreication
= $43,800 - $22,776
= $21,024
And,
Sale price = 32500
So,
Gain is
= $32,500 - $21,024
= $11,476
So,
Tax = 0.35% of 11476
= $4,016
And, finally
Net cashflows is
= Sale price - tax
= $28,483.4
Answer:
The correct solution is "28483".
Explanation:
According to the question,
Given:
Sales price,
= 32500
MARCS rates,
= [tex]43800\times 0.2[/tex]
= [tex]8760[/tex]
Or,
= [tex]43800\times 0.32[/tex]
= [tex]14016[/tex]
Now,
The total depreciation will be:
= [tex]8760+14016[/tex]
= [tex]22776[/tex]
The company's book value will be:
= [tex]Original \ value-Depreciation[/tex]
= [tex]43800-22776[/tex]
= [tex]21024[/tex]
Gain will be:
= [tex]32500-21024[/tex]
= [tex]11476[/tex]
Tax,
= [tex]35\times 11476[/tex]
= [tex]4016[/tex]
hence,
The net cashflows will be:
= [tex]Sale \ price-Tax[/tex]
= [tex]32500-4016[/tex]
= [tex]28483[/tex]
Lease Plan Effectively Manages Diversity
The term, glass ceiling, was used to represent an absolute barrier or solid roadblock that prevented women from advancing to higher-level positions. The ceiling resulted in women finding themselves stuck in lower-level jobs, ones that did not have profit and loss responsibility, and jobs with less visibility, power, and influence. This scenario is changing. This case illustrates the impact motivated leadership and changing company policies can have on gender diversity in the workplace. Per the United States Department of Labor, compared to women comprising 21 percent of the workforce in 1920, women comprised nearly half of the workforce in the United States in 2013, making gender diversity issues more and more important. This activity asks you to identify and apply your knowledge of such aspects of diversity.
Read the case below and answer the three questions that follow.
In 2003, the representatives of Lease Plan USA's top customers were mostly women, as was most the company's employees. However, men represented a large majority of top managers at the company, reflecting the old-boys network type culture that dominated the fleet industry. New leadership decided to change this and provided career counseling to women, revised reward systems to focus on performance instead of seniority, and replaced some existing managers. Two years ago, only one of seven top executives were a woman. Now, three of the top eight executives are women.
The company's new chief executive claims that these changes are motivated by strategy rather than political correctness. He says, "Lease Plan doesn't build anything…Our sustainable competitive advantages are people." Lease Plan now also implements a development program catered specifically for female employees. The program includes skills assessments, career guidance, communications, brand building, and panel discussions with female executives from other companies.
Lease Plan’s efforts have yielded very positive results in a short period. For example, a 2006 survey showed that 35 percent of women agreed that "management supports my efforts to manage my career," which was improved the following year to 47 percent. A growing percentage of women also feel that their opportunities are growing—increased to 30 percent from 22 percent.
Gerri Patton, Director of Client Activation, says the program helped her become more confident and outspoken. The 23-year Lease Plan veteran encourages her female subordinates to apply. "I wish I would have done that program 10 or 15 years ago," she says. "There's no telling where I would be...The sky would've been the limit."
After reading the case please answer three multiple questions below:
1) According to Eagly and Carli, and also supported by subsequent data analysis by the textbook authors, women have broken through the glass ceiling. Based on what you have read in the case, which of the following trends in gender diversity appears to be most supported by the outcomes of Lease Plan’s program changes?
Educational attainment—women earned the majority of bachelor’s and master’s degrees from 2006 through 2012.
Increases in seats on boards of directors—in Fortune 550 firms up to 16.6 percent in 2013 from only 9.6 percent in 1995.
Leadership positions—in educational institutions in 2010, women represented 18.7 percent of college presidents and 29.9 percent of board members.
Court Appointments—in federal court in 2013, women received 32 percent and 30 percent respectively of appointments to federal courts of appeals and US district court judge positions.
None of these
2) Which of Thomas’s generic action options for managing diversity is most illustrated in the case?
suppress
isolate
deny
include/exclude
tolerate
3) Based on the information in the case, which of the following barriers and challenges to managing diversity that were identified in the text appear to have been present at Lease Plan?
an unsupportive or hostile work environment
poor career planning
lack diversity in senior management
inaccurate stereotypes
difficulty in balancing career and family issues
Answer:
Lease Plan
1) The trend in gender diversity that appears to be most supported by the outcomes of Lease Plan's program changes is:
Increases in seats on boards of directors—in Fortune 550 firms up to 16.6 percent in 2013 from only 9.6 percent in 1995.
2. Thomas's generic action options for managing diversity that is most illustrated in the case is:
include/exclude
3. Based on the information in the case, the barriers and challenges to managing diversity that were identified in the text that appear to have been present at Lease Plan were:
a. an unsupportive or hostile work environment
b. inaccurate stereotypes
Explanation:
Thomas's include and exclude generic action option emphasizes that more diverse employees should be employed in addition to minority-owned companies being used as vendors. This option makes it possible for embracing and practicing workplace diversity. It creates an open-minded and supportive workplace, encouraging the sharing of information and the integration of behavior to accept and value human differences, thereby overcoming stereotypes.
Truck-Or-Treat specializes in leasing trucks to delivery companies. It is considering adding 25 more trucks to its available stock. Doing so will not change the risk of the company's business. The trucks depreciate over five years under the straight-line depreciation method, all the way to zero. Truck-Or-Treat believes that these newly added trucks would be able to bring the company $220,000 in annual earnings before taxes and depreciation (i.e., sales revenue minus costs of goods sold) for five years. The company is unlevered. It is in 21 percent tax rate bracket. The required annual rate of return on Truck-Or-Treat's unlevered equity is 15 percent. The risk-free rate, e.g., the Treasury bill rate, is 6 percent per year.
Required:
Calculate the maximum price that Truck-or-Treat should be willing to pay for the purchase of the new trucks if it remains an unlevered company. (In other words, what should be the "initial investment" of this unlevered truck project such that the project's NPV equals $0?
Answer:
The maximum price that Truck-or-Treat should be willing to pay for the purchase of the new trucks if it remains an unlevered company is $510,702.49.
Explanation:
Let:
x = Maximum price for the new truck = initial investment = ?
AEBTD = Annual earnings before taxes and depreciation = $220,000
T = Tax rate = 21%, or 0.21
n = Number of years = 5
Since the it is assumed that Truck-or-Treat remains an unlevered company, this implies the required annual rate of return on Truck-Or-Treat's unlevered equity of 15 percent is the relevant rate of return to use.
Therefore, we have:
r = required annual rate of return = 15%, or 0.15
D = Annual depreciation = Maximum price for the new truck / Number of useful years = x / 5 = 0.2x
P = Annual cash flow = ((AEDTD - D) * (1 - T)) + D = ((220000 - 0.2x) * (1 - 0.21)) + 0.2x = ((220000 - 0.2x) * 0.79) + 0.2x = 173,800 - 0.158x + 0.2x = 173,800 - 0.042x
Using the formula for calculating the present value (PV) of an ordinary annuity, we have:
PVP = Present value of annual cash flow = P * ((1 - (1/(1 + r))^n) / r) = (173,800 - 0.042x) * ((1 - (1/(1 + 0.15))^5) / 0.15) = (173,800 - 0.042x) * 3.3521550980114 = 582,604.56 - 0.140790514116479x
For the NPV of this unlevered truck project to be equal to $0, we must have:
x = PVP
That is:
x = 582,604.56 - 0.140790514116479x
Solving for x, we have:
x + 0.140790514116479x = 582,604.56
x(1 + 0.140790514116479) = 582,604.56
x1.140790514116479 = 582,604.56
x = 582,604.56 / 1.140790514116479 = $510,702.49
Therefore, the maximum price that Truck-or-Treat should be willing to pay for the purchase of the new trucks if it remains an unlevered company is $510,702.49.
You want to buy a house and will need to borrow $295,000. The interest rate on your loan is 6.37 percent compounded monthly and the loan is for 30 years. What are your monthly mortgage payments?
Answer:
$1,839.45
Explanation:
PV = P * [1-(1+r)^-n / r]
n = 30*12=360 months, r = 6.37%/12 = 0.5308% (monthly)
295,000 = P*[1 - (1+0.005308)^-360 / 0.005308}
295,000 = P * $160.3739
P = $295,000 / $160.3739
P = $1,839.45
So, the monthly mortgage payments is $1,839.45.
Excel technology is trying to increase its cash flow cycle. Sales in 2019 was $3,250,000 ( all on credit) and its net profit margin was 7%. Its inventory turnover was 6.0 times during the year. and its DSO was 41days. Its annual cost of goods sold was $1,800,000. The firm had fixed assets $535,000, its payable deferral period is 45 days. Calculate Excel technology's cash conversion cycle
Answer:
56.83 days
Explanation:
Calculation to determine Excel technology's cash conversion cycle
First step is to determine the Days inventory outstanding
Days inventory outstanding = 365 / Inventory turnover
Days inventory outstanding= 365 /6.0
Days inventory outstanding= 60.83 days
Now let determine the Cash conversion cycle
Cash conversion cycle = Days inventory outstanding + Days sales outstanding - Days payable outstanding
Cash conversion cycle=60.83 + 41 - 45
Cash conversion cycle=56.83 days
Therefore Excel technology's cash conversion cycle is 56.83 days
