Answer:
Deluxe should report a liability for un-redeemed coupons of 799,875
Explanation:
Estimated coupons to be redeemed 597,750
(797,000 * 75%)
Less: Coupons redeemed 420,000
Coupons un-redeemed 177,750
X Cost per Coupon 4.50
Liability for un-redeemed Coupons 799,875
You have gathered the following information on your investments. What is the expected return on the portfolio? Stock Number of Shares Price per Share Expected Return F 310 $ 40 13.32 % G 315 $ 26 10.05 % H 255 $ 52 10.59 %
Answer:
Expected return on the portfolio = $3,879.00
Explanation:
a) Data and Calculations:
Stock Number of Shares Price per Share Expected Return Expected
Value
F 310 $ 40 13.32 % $1,651.68
G 315 $ 26 10.05 % $823.09
H 255 $ 52 10.59 % $1,404.23
Total 880 $3,879.00
b) The expected return on the portfolio is the addition of the expected returns of each class of shares. This is obtained by multiplying the number of shares in each class with the price and the expected return in percentage. This gives a weighted value for the class of shares, which are then added to obtain the expected return on the portfolio.
Common stock is called a hybrid security because it takes on the attributes of both preferred stock and bonds.
a. True
b. False
Answer:
false
Explanation:
examples of hybrid stocks is convertible preferred shares
A common stock is a stock that entitles owners of the stock to a fixed amount of shares and holders of the stock are owners of the company where the stock is bought.
Answer:
a. True
Explanation:
In most stocks that attributes of both bonds and preferred stock, it is referred to as a hybrid security. Most organisations and the government recognized it as a medium of security in situations of seeking for loan.
g The company plans a 4-for-1 stock split. How many shares will you own and what will the share price be after the stock split?
Answer: 14,400; $17
Explanation:
Stock splits are a strategy by firms to increase the liquidity of their shares especially when they are trading at a high price. The firm divides the stock by a certain number thus increasing the number of shares by the multiple of the number. This action will divide the price of the stock and thus allow for more trade as they are cheaper.
A 4-for- stock split means that each share will become 4.
Your total number of share will become;
= 4 * 3,600
= 14,400 shares
The new price will be;
= 68/4
= $17 per share
A bond issue with a face amount of $1,200,000 bears interest at the rate of 9%. The current market rate of interest is 10%. These bonds will sell at a price that is:
Answer: The selling price of the bond will be less than $1,200,000
Explanation:
From the question, we are informed that a bond issue with a face amount of $1,200,000 bears interest at the rate of 9% and that the current market rate of interest is 10%.
Since the market rate is 10% which is higher than coupon rate of 9%, this means that the market price for the bond will be smaller than the bond's face value.
Therefore, the selling price of the bond will be less than $1,200,000.
The federal government doesn't have a capital budget; however, private enterprises do have a capital budget and when they invest in productive assets such as machinery it is recorded in their capital budget as an asset. What is one of the explanations why the federal government's investments are not discussed in relation to a capital budget and recorded as an asset like a private enterprise's investments are
Answer:
Hello the options in regards to your question is missing attached below is the complete question
Answer : Private enterprise's investments are in assets that are meant to increase production, which are going to earn revenues and pay for themselves. Thus, private enterprise's spending is unambiguously going towards investments. It is very difficult to determine when the federal government's spending is an investment. ( B )
Explanation:
The federal government's investments are not discussed in relation to a capital budget and recorded as an asset because It is very difficult to determine when the federal government's spending is an investment, because Federal Government is not actually designed to operate as a business entity
Vince offers to buy a book owned by Sun-Hi for twice what Sun-Hi paid for it. She accepts and hands the book to Vince. Sun-Hi's delivery of the book is
Answer:
Vince and Sun-Hi's Book
With Sun-Hi's delivery of the book, the offer by Vince is accepted by Sun-Hi.
Acceptance of an offer is necessary to make a contract.
Explanation:
An offer by Vince is not a contract, but its acceptance by Sun-Hi without a counter-offer makes it a valid contract that can be enforced in law if other ingredients for a valid contract are present. Acceptance establishes the agreement between Vince and Sun-Hi. Once Sun-Hi accepts Vince's offer with valid considerations (the book and double the price), the agreement for a business transaction between them is consummated. It is acceptance that completes the exchange of promises in this simple contract.
Where can a Master Admin Accountant User view the apps connected to a client’s QuickBooks Online account from within QuickBooks Online Accountant?
Answer:
The answer is below
Explanation:
A Master Administrator is normally the individual who is tasked at establishing the company file in QuickBooks Online.
In other words, Master Admin possesses access to all portions of the company file and can grant authorizations and access to other users.
Therefore, a Master Admin Accountant User can view the apps connected to a client’s QuickBooks Online account from within QuickBooks Online Accountant by doing the following:
1. Go to Settings
2. Select Manage Users.
3. Select Accounting firms.
4. Under the Company section, Select View Apps.
Answer:
Left Navigation Bar > Apps > Client Apps
Explanation:
"A customer has an existing margin account and wants to write five covered calls against 500 shares of stock in the account. The margin requirement to write the calls is:"
Answer: 0
Explanation: The sale of the stock call, would be covered by the ownership of the stock ( someone who owns the said stock). The required margin needed to sell the stock would be ‘0’ since there is no evidence that points to any available risks on the short calls. as short calls helps to predict of prices would drop or not.
If sales are $803,000, variable costs are 66% of sales, and operating income is $262,000, what is the contribution margin ratio
Answer:
34%
Explanation:
The formula to calculate the contribution margin ratio is:
Contribution margin ratio= (Sales – variable expenses)/sales
Sales=$803,000
Variable expenses=$803,000*66%=$529,980
Now, you can replace the values:
Contribution margin ratio=($803,000-$529,980)/$803,000
Contribution margin ratio=0.34
According to this, the answer is that the contribution margin ratio is 34%.
The following data was collected from the manufacturing of an auto component. It represents the diameter (in mm) of that component. What is the LCL for a control chart using this data (z=3)?Sample Obs 1 Obs 2 Obs 3 Obs 41 10 12 12 142 12 11 13 163 11 13 14 144 11 10 7 85 13 12 14 13
Answer:
9.37
Explanation:
The computation of LCL for a control chart is shown below:-
Sample Obs 1 Obs 2 Obs 3 Obs 4 Mean observation Range
1 10 12 12 14 12 4
2 12 11 13 16 13 5
3 11 13 14 14 13 3
4 11 10 7 8 9 4
5 13 12 14 13 13 2
For computing the mean observation and range we will use the below formulas
Mean observation = ( Obs 1 + Obs 2 + Obs 3 + Obs 4) ÷ 4
Range = Highest value - Lowest value
[tex]LCL = \bar{\bar{X}} - A2 \bar{R}[/tex]
[tex]\bar X[/tex] = ( 12 + 13 + 13 + 9 + 13 ) ÷ 5
= 12
[tex]\bar R[/tex] = ( 4 + 5 + 3 + 4 + 2 ) ÷ 5
= 3.6
Since we found the value of A2 with the help of constants table for control charts for a 4 subgroup size.
A2 = 0.729
[tex]LCL = \bar{\bar{X}} - A2 \bar{R}[/tex]
12 - 0.729 × 3.6
= 9.37
Speedy Runner makes running shoes and they have gathered the following data for the month of October: Data Cash on 10/1 Expected Cash Collections Direct Materials Cash Disbursements Direct Labor Cash Disbursements MOH Cash Disbursements Operating Expenses Cash Disbursements Capital Expenditures Cash Disbursements Speedy Runner requires an ending cash balance of at least $12,000 and can borrow from a line of credit in $1,000 increments. How much will Speedy Runner need to borrow at the end of October?
Answer: $9,000
Explanation:
Speedy Runner will need to borrow the amount of cash disbursements that will exceed their cash receipts.
= Opening Cash + Cash Receipts - Cash Disbursements
= Opening Cash + Expected Cash Collections - Direct Labor Cash - Direct Materials Cash Disbursements - Operating Expenses Cash Disbursements - MOH Cash Disbursements - Capital Expenditures Cash Disbursements - Ending cash balance requirement
= 15,300 + 435,000 - 32,000 - 80,000 - 110,000 - 25,000 - 200,000 - 12,000
= $8,700
They can borrow in incremental terms of $1,000 so to cover the cash requirements they should borrow $9,000.
Harry Company sells 20,000 units at $42 per unit. Variable costs are $26.88 per unit, and fixed costs are $105,800. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Harry Company sells 20,000 units at $42 per unit. Variable costs are $26.88 per unit, and fixed costs are $105,800.
To calculate the contribution margin ratio, we need to use the following formula:
contribution margin ratio= contribution margin / selling price
contribution margin ratio= (42 - 26.88) / 42
contribution margin ratio= 0.36
Now, the contribution margin:
Contribution margin= 42 - 26.88= $15.12
Finally, income from operations:
Contribution margin= 20,000*15.12= 302,400
Fixed costs= (105,800)
Net operating income= 196,600
Managers of an American television network have been told they need to employ a localization strategy if they want to break into the European and Australian markets. What specifically should they do to implement this strategy
Answer:
they will need to follow the television viewing habits,and cultural differences in the locality.
Explanation:
This is very important so as to determine what would work best in each region. An extensive research into television habits as well as cultural norms would need to be carried out.
For example, program schedule times may need adjustments based on a different viewing time.
Given the following data: Average operating assets $ 504,000 Total liabilities $ 23,520 Sales $ 168,000 Contribution margin $ 85,680 Net operating income $ 45,360 Return on investment (ROI) is:
Answer:
9%
Explanation:
According to the given situation, the solution of return on investment is shown below:-
Return on investment = (Net operating income ÷ Average operating assets) × 100
now, we will put the values into the above formula
= ($45,360 ÷ $504,000) × 100
= 0.09 × 100
= 9%
Therefore for computing the return on investment we simply applied the above formula.
A company has 825 shares of $50 par value preferred stock outstanding, and the call price of its preferred stock is $63 per share. It also has 17,000 shares of common stock outstanding, and the total value of its stockholders' equity is $626,575. The company's book value per common share equals:
Answer:
Book Value Per Common Share = $33.80
Explanation:
Book Value Per Common Share = Stockholders' equity - Shares * Call Price per shares) / Shares of common stock outstanding
= ($626,575 - 825*63) / 17000
= ($626,575 - $51,975) / 17,000
= $574,600 / 17,000
= $33.80
Company A was sued by Company B. The management of Company A feels that it is probable that it will have to pay the full amount to Company 8. What is the effect of this contingent event on Company A's accounting equation?
a. Increase liabilities and decrease stockholders' equity.
b. Increase assets and increase stockholders' equity.
c. No effect on the accounting equation.
d. Decrease assets and decrease liabilities.
Answer: a. Increase liabilities and decrease stockholders' equity.
Explanation:
Contingent Liabilities are obligations that the company may owe if a future event happens such as them being ruled against in a case in court.
Contingent Liabilities are to be recorded in the financial statements only when it is probable that it will happen and that the amount to be paid is reasonably estimable.
Company A's management feels like the loss is probable and that they would have to pay the full amount to company B which means that the loss is both likely and estimable.
Company A should therefore increase their liabilities and debit loss which will come from the Equity thereby reducing it.
Between 1953 and 2015, rising labor productivity contributed more to U.S. economic growth than did increases in inputs.
A. True
B. False
Answer: True
Explanation:
Labor productivity has to do with the amount of products and services which are produce at a particular time by the workers.
It should be noted that between 1953 and 2015, rising labor productivity contributed more to U.S. economic growth than did increases in inputs. This brought about increase in the available goods and services in the country.
Fetzer Company declared a $0.55 per share cash dividend. The company has 200,000 shares authorized, 190,000 shares issued, and 8,000 shares in treasury stock. The journal entry to record the payment of the dividend is:
Answer:
Please see journals below
Explanation:
Retained earnings Dr $104,000
Common dividend payable Cr $104,000
Common dividend payable Dr $104,000
Cash Cr. $104,000
Retained earnings Dr $100,100
Common dividends payable Cr $100,100
Common dividends payable Dr $100,100
Cash Cr $100,100
Retained earnings Dr $110,000
Common dividends payable Cr $110,000
Working
Dividends payable
= 190,000 × $0.55
= $104,000
Common dividend payable
= $0.55 × (190,000 shares - 8,000 shares)
= $100,100
___________is a partnership Is also called the articles of incorporation.
a) Is the same as a limited liability partnership.
b) Is not binding unless it is in writing.
c) Is binding even if it is not in writing.
d) Does not generally address the issue of the rights and duties of the partners.
Answer:
c
Explanation:
here is the correct question :
A partnership agreement:
A. Is not binding unless it is in writing.
B. Is the same as a limited liability partnership.
C. Is binding even if it is not in writing.
D. Does not generally address the issue of the rights and duties of the partners.
E. Is also called the articles of incorporation.
A partnership agreement is a contract between partners in a partnership. it contains guidelines on the relationship between the partners and responsibilities of partners. the partnership agreement creates legally binding relationships among the partners
Click to review the online content. Then answer the question(s) below, using complete sentences. Scroll down to view additional questions. Career Connection: Shin-fong How does Shin-fong keep track of his finances?
Answer:
By means of a budget he prepared.
Explanation:
According to the information available, Shing-fong has a carefully thought out strategy. Here's some of what he does;
he keeps tracks of his finances by means of a budget plan.he views all his transactions also checking his debit or credit cards to keep track of how much he spendsShing-Fong avoids eating out as much as he used to and preparing cheaper food at home.he also avoids unnecessarily spending with friends whenever he is invited.An organizationally-driven reason for outsourcing is that it can improve effectiveness by focusing on what the firm does best.
Answer:
True
Explanation:
Outsourcing is when a company gives some of its internal activities to an external party that takes the responsibility to get things done and one of the reasons for a company to do this is to get rid of activities that have to get done but that are not part of their core operations to be able to concentrate on their main activity and get those things done by experts which can help increase productivity. According to that, the answer is that the statement is true.
If we had a situation of Diminishing Marginal Productivity, then this would be great news for the firm. Senior management loves this kind of cost reduction outcome.
True or False
Answer:
The correct answer is the second option: False.
Explanation:
To begin with, the well known term of "Diminishing Marginal Productivity" is understood to be an economic law whose main purpose is to explain that given a certain level of an input, the production of the company will start to go down eventually after adding more and more of that variable. Therefore that this theory states that when a company adds more of a factor of production, everything else constant, when it reaches a certain level that input will start to affect the output of the good and with it the profits of the business. That is why that if the company is in a situation of diminishing marginal productivity the senior management would not be pleased.
York's outstanding stock consists of 80,000 shares of noncumulative 7.5% preferred stock with a $5 par value and also 200,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends: 2015 total cash dividends $20,000 ; 2016 total cash dividends 28,000 ; 2017 total cash dividends 200,000 ; 2018 total cash dividends 350,000. Please explain how to journal this.
Answer:
dividends paid during 2015:
preferred stock dividends = $20,000, dividend per preferred stock = $0.25
common stock dividends = $0, dividend per common stock = $0
dividends paid during 2016:
preferred stock dividends = $28,000, dividend per preferred stock = $0.35
common stock dividends = $0, dividend per common stock = $0
dividends paid during 2017:
preferred stock dividends = $30,000, dividend per preferred stock = $0.375
common stock dividends = $170,000, dividend per common stock = $0.85
dividends paid during 2018:
preferred stock dividends = $30,000, dividend per preferred stock = $0.375
common stock dividends = $320,000, dividend per common stock = $1.60
Since the preferred stocks are not cumulative, any preferred dividends that are not paid during a year will not be paid in future years.
Gladiator USA, a tire manufacturer, guarantees its tires against defects for five years or 60,000 miles, whichever comes first. Suppose USA can expect warranty costs during the five-year period to add up to of sales. Assume that a USA dealer in Denver, Colorado, made sales of during 2018. Gladiator USA received cash for % of the sales and took notes receivable for the remainder. Payments to satisfy customer warranty claims totaled during 2018. Record the sales, warranty expense, and warranty payments for Gladiator USA.
Answer:
DR Cash............................................$96,450
DR Notes receivable........................$546,550
CR Sales revenue...................................................$643,000
(To record sales)
DR Warranty expense .............................$32,150
CR Warranty liability.................................................$32,150
(To record Warranty Expense)
DR Warranty liability.................................$20,000
CR Cash......................................................................$20,000
(To record Warranty Claim Payments)
Explanation:
Cash = 15% * $643,000
= $96,450
Notes Receivable = 643,000 - 96,450
= $546,550
Warranty Expense = 5% x $643,000
= $32,150
Each extra worker produces an extra unit of output up to six workers. After six, no additional output is produced. Draw the total product of labor, average product of labor, and marginal product of labor curves.
Answer:
attached is the diagram
Explanation:
Each extra worker produces an extra unit of output, is said to be the marginal production of an extra worker employed
marginal production :
change in total production / change in labor = ΔTp / ΔL
Average production = Tp / L
Tp = total production , L = number of labor
To draw the Total product of labor , average product labor and marginal product labor curves starting from zero labor
0 worker : Total product = 0, average product labor = 0 , marginal = 0
1 worker : Total product = 1, average product = 1 , marginal = 0
2 worker : Total product = 2, average product = 1, marginal = 1
3 workers: total product = 3 average product = 1, marginal = 1
4 workers: Total product = 4, average product = 1, marginal = 1
5 workers : Total product = 5 average product = 1, marginal = 1
6 workers : total product = 6 average product = 1 , marginal = 1
7 workers : total product = 7 , average product = 0.85, marginal = 0
8 workers : total product = 8, average product = 0.75 marginal = 0
Cara Industries incurred the following costs for 50,000 units:
Variable costs $90,000
Fixed costs 120,000
Cara has received a special order from a foreign company for 5,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4,250 for shipping.
If Cara wants to break even on the order, what should the unit sales price be?
A. $4.2
B. $5.05
C.$1.8
D. $2.65
Answer:
Selling price= $2.65
Explanation:
Because it is a special offer, and there is unused capacity, we will take into account only the incremental fixed costs.
First, we need to calculate the unitary variable cost:
Unitary variable cost= 90,000/50,000= $1.8
Now, we can determine the total unitary cost and the selling price per unit:
Total unitary cost= (4,250/5,000) + 1.8= $2.65
Selling price= $2.65
Suppose that you have an old car that is a real gas guzzler. It is 10 years old and could be sold to a local dealer for $ cash. The annual maintenance costs will average $ per year into the foreseeable future, and the car averages only miles per gallon. Gasoline costs $ per gallon, and you drive miles per year. You now have an opportunity to replace the old car with a better one that costs $. If you buy it, you will pay cash. Because of a 2-year warranty, the maintenance costs are expected to be negligible. This car averages miles per gallon. Should you keep the old car or replace it? Utilize a 2-year comparison period and assume that the new car can be sold for $ at the end of year 2. Assume that the salvage value of the old car at the end of year 2 will be $0. Ignore the effect of income taxes and let your MARR be %.
Answer:
you should replace the old car with a newer and more efficient one
Explanation:
all the numbers are missing, so I looked them up:
current sale value of old car $400
maintenance costs per year $800
gasoline expense per year = $3.50 x 1/10 x 15,000 = $5,250
resale value in 2 years = $0
cost of replacing old car = $8,000
maintenance costs per year $0
gasoline expense per year = $3.50 x 1/30 x 15,000 = $1,750
resale value in 2 years = $5,000
MARR = 15%
if you keep the old car, your net cash flows will be:
Year 1 = -$6,050
Year 2 = -$6,050
if you change your car, your net cash flows will be:
Year 0 = -$8,000 + $400 = -$7,600
Year 1 = -$1,750
Year 2 = $3,250
keeping the old car results in a NPV = -$6,050/1.15 - $6,050/1.15² = -$5,260.87 - $4,574.67 = -$9,835.54
changing for a new car results in a NPV = -$7,600 -$1,750/1.15 + $3,250/1.15² = -$7,600 -$1,521.74 + $2,457.47 = -$6,664.27
since both options result in negative cash flows, we must select the option that results in a smaller loss
Effectiveness of a solution is equal to:_______
a. Quality of a Solution 20% (x) Acceptability of the Solution 80%
b. Quality of a Solution 80% (x) Acceptability of the Solution 20%
c. Quality of a Solution 10% (x) Acceptability of the Solution 90%
d. Quality of a Solution 90% (x) Acceptability of the Solution 10%
e. None of the above
Answer:
a. Quality of a Solution 20% (x) Acceptability of the Solution 80%
Explanation:
We say that a solution is effective i.e 100%, when it has a 20% of its quality and 80% of its acceptability.
A solution is effective when it has a 100% effect. The application of a solution to a problem which yields 100% effect is said to be effective and acceptable.
The scale used is the relationship given as:
Effectiveness of a solution = Quality of a Solution 20% (x) Acceptability of the Solution 80%
A project that provides annual cash flows of $2,700 for nine years costs $8,800 today.
Requirement 1:A. At a required return of 9 percent, what is the NPV of the project?
B. At a required return of 28 percent, what is the NPV of the project?
C. At what discount rate would you be indifferent between accepting the project and rejecting it?
Answer:
A. $8,187.17
B. $597.38
C. 30%
Explanation:
Calculate the Net Present Value of the Project at the Required Return of 9%
The following is the calculation of NPV using a financial calculator :
($8,000) CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
9.00 % i/yr
Shift NPV $8.187.1666 or $8,187.17
Calculate the Net Present Value of the Project at the Required Return of 9%
The following is the calculation of NPV using a financial calculator :
($8,000) CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
28.00 % i/yr
Shift NPV $597.3765 or $597.38
You will be indifferent between accepting the project and rejecting it at the internal rate of return. The Internal Rate of Return is the interest rate that makes the Present Vale of Cash Flows to equal the Initial Cost of the Investment.
Use the Data given to find the Internal Rate of Return :
($8,000) CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
$2,700 CFj
Shift IRR 30%
Patterson Company owns 80% of the outstanding common stock of Stevens Company. On June 30, 2013, landcosting $500,000 is sold by one affiliate to the other for $800,000.Required:Prepare in general journal form the workpaper entries necessary because of the intercompany sale of land in theconsolidated financial statements workpaper for the year ended December 31, 2014, assuming that:A. Patterson Company purchased the land from Stevens Company.B. Stevens Company purchased the land from Patterson Company.
Answer:
1. Sale of land by Stevens (subsidiary) - Upstream transaction
General Journal
Date Particulars Debit Credit
31-Dec-14 Retained earnings A/c $240,000
(300,000*80%)
Non controlling interest $60,000
(300,000*20%)
To, Land $300,000
(Being profit on sale eliminated)
2. Sale by Patterson (holding) - Downstream transaction
Date Particulars Debit Credit
31-Dec-14 Retained earnings a/c $300,000
To, Land $300,000
(Being profit on sale earlier recognized by holding eliminated)
