Identify whether each example in the following table belongs in M1, M2, or both.
Example M1 M2
Juanita has $8,000 in a six-month certificate of deposit (CD).
Charles has a $10 bill in his wallet.
Gilberto has $3,000 in a savings account.

Answer:

Inflation for 2014 is 11%

Explanation:

Inflation refers to a quantitative measure of the rate of an increase in the average price level of a selected basket of commodities in an economy over a specified period of time.

The inflation rate for 2014 can be calculated as follows:

Since 2015 is the base year, the it implies that the basket we are going to use contains 80 heads of cauliflower, 90 bunches of broccoli, and 500 carrots.

Therefore, cost of basket for each year can be determined as follows:

2013 cost of basket = ∑(Unit price in 2014 * Quantity in 2015) = ($2 * 80) + ($1.50 * 50) + ($0.10 * 500) = $285

2014 cost of basket = ∑(Unit price in 2014 * Quantity in 2015) = ($2 * 80) + ($1.50 * 50) + ($0.20 * 500) = $335

2015 cost of basket = ∑(Unit price in 2015 * Quantity in 2015) = ($3 * 80) + ($2 * 50) + ($0.25 * 500) = $465

The CPI for each year can be determined using the following for formula:

CPI of a year = Current period cost of basket / Base year cost of basket …………… (1)

As 2015 is the base year, using equation (1), we have:

2013 CPI = (2013 cost of basket / 2015 cost of basket) * 100 = $285 / $465 = 0.61 * 100 = 61

2014 CPI = (2014 cost of basket / 2015 cost of basket) * 100 = $335 / $465 = 0.72 * 100 = 72

2015 CPI = (2015 cost of basket / 2015 cost of basket) * 100 = $465 / $465 = 1 * 100 = 100

The inflation for a year can be determined as follows:

Inflation = (CPI in the current year - CPI in previous year) / CPI in the base year ..................... (2)

Using equation (2), we have:

Inflation for 2014 = (CPI in 2014 - CPI in 2013) / CPI in 2015 = (72 - 61) / 100 = 11 / 100 = 0.11, or 11%

Answer: C. Debit cash $71,000; debit land $132,000; credit Common Stock $203,000.

Explanation:

From the question, we are informed that Richard Redden, the sole stockholder, contributed $71,000 in cash and land worth $132,000 in exchange for common stock to open a new business, RR Consulting.

The journal entries will RR Consulting make to record this transaction will be:

Debit cash $71,000; debit land $132,000; credit Common Stock $203,000.

Answer:

C. Debit cash $71,000; debit land $132,000; credit Common Stock $203,000.

Explanation:

Recognize the Assets of Cash at $71,000, the Assets of Land at $132,000 and an Equity element - Common Stock at $203,000.

The journal entry will be as follows :

Cash $71,000 (debit)

Land $132,000 (debit)

Common Stock $203,000 (credit)

Answer: Social media allows companies to have a short-term focus.

Explanation:

Social Media has made the world way more connected than it was before even with the advent of the Internet. As such, companies were able to leverage on this to improve their brand and popularity by being present on the various social media platforms.

With social media, companies have been able to marketers to establish a public voice and presence online, cost-effectively reinforce other communication activities, build online forums and communities as well as remain relevant in a fast changing world.

Companies having a short term focus as a result of social media is not a benefit of social media. A company should always think long term and even social media can help them achieve long term growth if long term marketing plans are integrated with social media marketing.

Answer:

Break-even point in units= 4,750 units

Explanation:

Giving the following information:

When Isaiah Company has fixed costs of $137,750 and the contribution margin is $29

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 137,750 / 29

Break-even point in units= 4,750 units

Answer:

Germany

Explanation:

In simple words, Mono A came to both the industry in 1959. Continuously simplified utensils, which broken from all standards, was persuaded of its revolutionary value and were to be a beloved, enduring style classic.Karl Oskar Blase, whom, like Raacke, scolded just at Hochschule für Gestaltung in stockholm, has created the design, advertising and contact. It's the origin storey of Mono. Originally, Mono A was scarcely marketed at all.

Answer: False

Explanation:

Dta mining is the generation of new information by examining large databases that are already in existence. In data mining, raw data will be eventually turned to useful information which will be used to increase sales, develop marketing strategies, and decrease costs.

The information that data mining is important because any customer can become a brand advocate or adversary by freely expressing opinions and attitudes that reach millions of other customers on social media is false.

Answer:

x1 = 4891.294

Explanation:

given data

mean μ =  $5,793

standard deviation  σ =  $439

solution

we know here that

P(x < x1 ) = 0.02     .................1

so

[tex]P(\frac{x-\mu }{\sigma } < \frac{x1-\mu }{\sigma }) = 0.02[/tex]

so

[tex]P(z < \frac{x1-\mu }{\sigma }) = 0.02[/tex]

[tex]\frac{x1-\mu }{\sigma }[/tex]  = invNorm(0.02)

so

x1 = μ + σ × invNorm(0.02)    .....................2

we use here table for invNorm(0.02) and put value in eq 2

x1 = 5793 + 439 × (-2.054 )

x1 = 4891.294

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:

Answer:

Slightly more than 5.33%.

Explanation:

In case when the municipal bond owned by an individual i.e. issued is not for interest free tax rate but also it is non tax on that particular state

So here the tax-equivalent yield is

= Purchase bond percentage ÷ (1 - tax rate)

= 0.04 ÷ (1 - 0.25)

= 5.33%

Hence, his total tax-equivalent yield is 5.33% i.e. calculated by applying the above formula

Answer:

a) The federal funds rate has a higher interest rate than the discount rate to encourage borrowing

Explanation:

The Feds fund rate is the rate at which banks borrow from each other usually overnight, while the discount rate is the interest rate charged by the Fed to commercial banks for borrowing directly from the Fed.

These borrowings help the commercial banks meet up their liquidity requirements.

The discount rate is higher than the Fed funds rate. This is to encourage banks to borrow from each other instead of borrowing directly from the Federal Reserve.

The Fed fund rate also tends to affect the prime lending rate (rate at which banks lend money to their clients).

So the statement - The federal funds rate has a higher interest rate than the discount rate to encourage borrowing. Is not correct

Answer:

Intrinsic value=$73.77

Explanation:

The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset.

According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.

Price = D/Kp

D- Dividend payable

Kp- cost of preferred stock

So will need to work out the cost of equity using CAPM

The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c  

This model is considered superior to DVM. Hence, we will use the CAPM

Using the CAPM , the expected return on a asset is given as follows:  

E(r)= Rf +β(Rm-Rf)  

E(r) =? , Rf- 2.4%, Rm- 12.1% β- 1.01

E(r) = 2.4% + 1.23×(12.1- 2.4)%  = 12.20 %

Cost of preferred stock= 12.20 %

Using the dividend valuation model

Intrinsic value = 9/0.1220=73.77

Intrinsic value=$73.77

Answer:

shift demand and supply for loanable funds to the right (up), increasing interest rates.

Explanation:

According to the Fisher hypothesis when there is an increase in the expected inflation there is an equal increase in nominal interest rates.

As interest rates rise demand and supply for loanable funds will rise. This is illustrated in the attached diagram. Interest rate moves from i0 to i1.

Inflation is a reduction in the purchasing power of money. When inflation increases money regulation agencies reduce supply of money as a way to reduce price increase. This in turn reduces the amount of loanable funds commercial banks have to give out

Answer: company can produce boxes 100 times per year.

Explanation:

Ordering cost per order, S = $250

Annual demand, D = 500,000

Holding or carrying cost per unit,  = $10

Economic order Quantity = [tex]\sqrt{2 x Annual demand X ordering cost /carrying cost}[/tex]

=[tex]\sqrt{ 2 X 500,000 X 250 /10}[/tex] =  [tex]\sqrt{25,000,000}[/tex] = 5000

Optimal order quantity = 5000 boxes.

Number of times company can produce boxes =  Annual Demand/ Optimal order quantity =  500,000 / 5000 = 100  times

Answer:

The LOWEST acceptable transfer price is $18 the Tire Division's variable cost per tire.

The HIGHEST acceptable transfer price is $75the Tire Division's market price.

Explanation:

Calculation for the lowest acceptable transfer price and the highest acceptable transfer price

Variable Cost per tire:

Direct Material $15

Conversion cost $3

=$18 per tire

The LOWEST acceptable transfer price is $18 Tire division variable cost per tire

Based on the information we were told that the market price per tire is $75 which means that the HIGHEST transfer price is $75 tire division market price.

Therefore If Graham Motors has a negotiated transfer price policy The LOWEST acceptable transfer price is $18 the Tire Division's variable cost per tire While The HIGHEST acceptable transfer price is $75 the Tire Division's market price.

Answer:

r = 0.1352 or 13.52%

Explanation:

The expected rate of return or r is the average return that is expected from the stock. It is the expected rate of profit or loss that an investor can anticipate on an investment whose returns are known or anticipated.

The expected rate of return of can be calculated as follows,

r = pA * rA  +  pB * rB + ... + pN * rN

Where,

r = 0.21 * 0.19  +  0.7 * 0.14  +  0.09 * -0.03

r = 0.1352 or 13.52%

Answer: True

Explanation:

The Four-Firm Concentration Ratio simply measures aggregate market share of the four biggest firms that are in a particular industry while the Eight-Firm Concentration Ratio measures that of the eight biggest firms.

It is true that in recent years, industries with high four- and eight-firm concentration ratios include cars, cereal breakfast foods, and farm machinery.

Full question reads;

The issue of _____ concerns how often a particular project will be repeated and what its lifespan will be.

 a.     frequency

b.    consumption

c.     pressures

d.    rules

Answer:

a.     frequency

Explanation:

Indeed, no particular human project can last forever, so there is a need to ascertain the frequency of a project, detailing how often the project would be repeated so as to also determine what the project's lifespan will be.

For example, a road construction project may take into account how often the road would be used, which provides insight into the frequency of road repairs and the overall lifetime of the car.

The issue of _____ concerns how often a particular project will be repeated and what its lifespan will be.

Answer: 4%

Explanation:

Abnormal returns are the excess actual returns received over the expected return.

The actual return can be calculated as;

= [tex]\frac{New Stock price + dividends - Old Stock Price}{Old stock price}[/tex]

= [tex]\frac{12 - 10 + 1}{10}[/tex]

= 30%

The expected return according to CAPM;

Expected return = Risk free rate + beta( market return - risk free rate)

= 16% + 1 ( 26% - 16%)

= 26%

Abnormal return = 30% - 26%

= 4%

The question is incomplete as it is missing the options. The complete question is,

A company factored $45,000 of its accounts receivable and was charged a 4% factoring fee. The journal entry to record this transaction would include a:

a. Debit to Cash of $45,000 and a Credit to Account Receivable of $45,000

b. Debit to Cash of $46,800 and a Credit to Account Receivable of $46,800

c. Debit to Cash of $45,000 and a Credit to Notes Payable of $45,000

d. Debit to Cash of $45,000, a Debit to Factoring Fee Expense of $1800, and Credit to Account Receivable of $43,200

e. Debit to Cash of $43,2000, a Debit to Factoring Fee Expense of $1,800, and Credit to Account Receivable of $45,000

Answer:

The correct answer is option e.

Explanation:

Factoring accounts receivables means selling the claims on accounts receivables to a third party in exchange of cash. Such factoring is done to receive payment for these accounts receivables instantly and selling the claims to some other company. The factoring company charges a certain portion of accounts receivable as fee and only provides cash after deducting this percentage. This fee is an expense for a company using factoring service and is debited.

So the general entry to record factoring would be,

Cash                                       43200 Dr

Factoring fee                         1800 Dr

       Accounts receivables                 45000    Cr

Cash = 0.96 * 45000 = 43200

Factoring fee = 45000 * 0.04 = 1800

Answer:

The Company WACC is 6.1%

Explanation:

WACC is the averge cost of capital that a company bears based on the weights of each financing option available to the company.

First we need to calculate the Market values

Debt = $50 M x $1,050 / $1,000 = $52.5 M

Common Equity = $30 M

Preferred equity = $20 M x $90 / $100 = $18 M

Total Capital = $52.5 M + $30 M + $18 M = $100.5

Now we need to calculte the Cost of each financing option

Cost of Debt

Price of Bond = C x ( 1 - ( 1 + YTM )^-n / r + Face value / ( 1 + YTM )^n

$1,050 = $60 x ( 1 - ( 1 + YTM )^-5 / YTM + $1,000 / ( 1 + YTM )^5

YTM = 4.85%

Cost of Common Equity = 12%

Cost of Preseferred Stock = $5 / $90 = 0.05556 = 5.56%

Now use following fomula to calculte the WACC

WACC = ( Common Equity weight x Cost of Common equity ) + ( Weight of Debt x Cost of Debt x ( 1 - Tax rate ) + ( Weight of Preferred Shares x Cost of Preferred Shares )

Now Place all the valus in the formula

WACC = ( $30 / $100.5 x 12% ) + ( $52.5 / $100.5 x ( 1 - 40% ) x 4.85% ) + ( $18 / $100.5 x 5.56% )

WACC = 3.58% + 1.52% + 1.00% = 6.1%

Answer:

Some information was missing, so i looked it up:

State of               Prob. of the state          Sunglasses            Umbrella

the economy      of the economy             Company               Corporation

Sunny                          .50                              25%                          0%

Rainy                           .50                               0%                          25%

expected returns:

Sunglasses Company = 0.5 x 25% = 12.5%

Umbrella Corporation = 0.5 x 25% = 12.5%,

so the expected return of the portfolio = (12.5% x 0.50) + (12.5% x 0.50) = 12.5%

standard deviation:

Sunglasses Company = √{[(0% - 12.5%)² + (25% - 12.5%)²] / 2} = √156.25 = 12.5%

Umbrella Corporation = √{[(0% - 12.5%)² + (25% - 12.5%)²] / 2} = √156.25 = 12.5%

so the standard deviation of the portfolio = 12.5%

Answer:

d) All of these apply.

Explanation:

An optimum capital structure can be defined as a financial instrument used by firms to determine the best mix of debt and equity financing that maximizes its market value, as well as minimizes its cost of capital such as operations and expansion. It minimizes the weighted average cost of capital (WACC) of a firm to the least most possible value.

Generally, the optimum capital structure used by a firm to maximize its market value;

a) Provides the lowest cost of capital.

b) Has the best mix of debt, preferred stock, and common equity.

c) Can change over time as market and firm conditions change.

Answer:

2 nd year ( FORM 2)

Explanation:

PLEASE MARK ME AS BRAINLIEST AND DO FOLLOW ME.

❤✌ITZ AAROHI ❤✌

LOVE YOU

Answer:

Discounted payback period= 2 years 1 month

Explanation:

The discounted payback period is the estimated length of time in years it takes  the present value of net cash inflow from a project to equate the net cash the initial cost  

To work out the discounted payback period, we will compute present value of the cash inflow and then determine how long it will take for the sum to be equal to the initial cost. This is done as follows:

Year          Cash flow    DF             Present value                

0              900    ×          1        =     900                

1               500     ×      1.1^(-1)   =     454.55

2             500     ×      1.1^(-2)    =    413.22

2             500     ×      1.1^(-3)   =      375.66

Total PV for 2 years = 454.55  +  413.22 = 867.77

Balance of cash flow remaining to equal 900 = 900 -867.77  = 32.23

Discounted payback period = 32.23 /375.66 × 12 months

                                               = 2 years 1 month

Discounted payback period= 2 years 1 month

Answer:

The correct answer is: Closed Shop.

Explanation:

To begin with, the name of "Closed Shop" refers to a type of practice well known as "pre-entry closed shop" too that unions favored with the only purpose to obligate the companies to contract workers who are already members of the union itself so in that situation both the company and the union tend to have an agreement of maintaining certain salary price for the workers so they are not in a continous fight. Moreover, this practice allow the workers to be employed by the company only if they are members of the union and as long as they are members of it.

Answer: budget deficit

Explanation:

From the question, we are informed that the total spending for the federal government of Lilliput for the last fiscal year was $1.06 billion and that the country collected $1.05 billion in taxes during this same fiscal year.

Since the expenditure of $1.06 billion is more than the revenue of $1.05 billion, this show that there was a budget deficit.

Answer:

Working capital = $ 374,000

Explanation:

Calculation to Determine the company’s working capital at December 31, 2021

Formula for Working Capital

Working capital = Current assets - Current liabilities

First is to find the Current assets

Current assets =Cash $40,000 + Accounts receivable 170,000 +Raw materials 44,000+Work in process 62,000 +Finished goods 109,000 +Notes receivable 120,000 +Interest receivable 23,000 +Investment in debt securities 52,000+Prepaid rent 40,000 (80,000/2)

Current assets=$660,000

Second step is to find the Current liabilities

Current liabilities =Interest payable $25,000+Accounts payable 200,000+Deferred revenue 28,000 (56,000/2) +Allowance for uncollectible accounts 33,000

Current liabilities =$286,000

Let plug in the formula

Working capital =$660,000 - $286,000

Working capital = $ 374,000

Therefore the company’s working capital at December 31, 2021 will be $374,000

Answer: B) Only materials costs are relevant

Explanation:

When choosing between alternatives, the main decider is the difference in costs. The costs that are different are the ones to decide whether a company takes on a project as it will signal the financial viability of a project.

In both alternatives, the Processing costs remain at $37,000 therefore the alternative chosen is irrelevant to these costs as they will be incurred regardless of the company's choice. They are therefore not to be considered.

Material costs on the other hand vary by the alternatives and so should be considered.

Answer: D.  The officer must forfeit the profit on the sale

Explanation:

The Vice-president of ACME who is the one attempting to sell is an officer of ACME and as such falls under Rule 144 of the Securities Exchange Act of 1934 as a control person.

This Act is meant to curb market manipulation and so it places restrictions on some activities by officers of a company. One of which is that for the seller to claim any profits on such sales, they would have to had held the stock for at least 6 months so that they do not have a "short swing" profit. If they do so, they are to pay the profits accrued back to the Issuer of the stock so indeed, the officer must forfeit the profit on the sale.

Answer:

If the company makes the motors, it will save $160,000.

Explanation:

Giving the following information:

Production= 50,000 units

Production costs:

Direct materials $10.90

Direct labor $9.90

Variable manufacturing overhead $4.15

The price offered to S Corporation for this motor is $28.15.

We will take into account only the avoidable costs:

Make in-house:

Total cost= 50,000*(10.9 + 9.9 + 4.15)= $1,247,500

Buy:

Total cost= 50,000*28.15= $1,407,500

If the company makes the motors, it will save $160,000.