Presented below is an amortization schedule related to 5-year, $120,000 bond with a 7% interest rate and a 5% yield, purchased on December 31, 2018, for $130,392.
Date Cash Interest Bond Premium Carrying Amount
Received Revenue Amortization of Bonds
12/31/18 $130,392
12/31/19 $8,400 $6,520 $1,880 128,512
12/31/20 8,400 6,426 1,974 126,538
12/31/21 8,400 6,327 2,073 124,465
12/31/22 8,400 6,223 2,177 122,288
12/31/23 8,400 6,112 2,288 120,000
The following schedule presents a comparison of the amortized cost and fair value of the bonds at year-end.
12/31/19 12/31/20 12/31/21 12/31/22 12/31/23
Amortized cost $128,512 $126,538 $124,465 $122,288 $120,000
Fair value $128,000 $128,800 $126,300 $123,500 $120,000
(a) Prepare the journal entry to record the purchase of these bonds on December 31, 2018, assuming the bonds are classified as held-to-maturity securities.
(b) Prepare the journal entry related to the held-to-maturity bonds for 2019.
(c) Prepare the journal entry related to the held-to-maturity bonds for 2021.
(d) Prepare the journal entry to record the purchase of these bonds, assuming they are classified as available-for-sale.
(e) Prepare the journal entries related to the available-for-sale bonds for 2019.
(f) Prepare the journal entries related to the available-for-sale bonds for 2021.

Answers

Answer 1

Answer:

A. Dr Held-to-Maturity Securities $130,392

Cr Cash $130,392

B. Dr Cash $8,400

Cr Held-to-Maturity Securities $1880

Cr Interest Revenue $6,520

C. Dr Cash $8,400

Cr Held-to-Maturity Securities $2,073

Cr Interest Revenue $6,327

D. Dr Available-for-Sale Securities $130,392

Cr Cash $130,392

E. Dr Cash $8,400

Cr Available-for-Sale Securities $1,880

Cr Interest Revenue $6,520

Dr Unrealized Holding Gain or Loss--Equity $512

Cr Securities Fair Value Adjustment (Available-for-Sale) $512

F. Dr Cash $8,400

Cr Cr Available-for-Sale Securities $2,073

Cr Interest Revenue $6,327

December 31, 2021

Dr Unrealized Holding Gain or Loss--Equity $427

Cr Securities Fair Value Adjustment (Available-for-Sale) $427

Explanation:

A. Preparation of the journal entry to record the purchase of these bonds on December 31, 2018, assuming the bonds are classified as held-to-maturity securities.

December 31, 2018

Dr Held-to-Maturity Securities $130,392

Cr Cash $130,392

(To record the purchase of these bonds)

B. Preparation of the journal entry related to the held-to-maturity bonds for 2019

December 31, 2019

Dr Cash $8,400

Cr Held-to-Maturity Securities $1,880

Cr Interest Revenue $6,520

(To record held-to-maturity bonds)

C. Preparation of the journal entry related to the held-to-maturity bonds for 2021

December 31, 2021

Dr Cash $8,400

Cr Held-to-Maturity Securities $2,073

Cr Interest Revenue $6,327

(To record held-to-maturity bonds)

D. Prepare the journal entry to record the purchase of these bonds, assuming they are classified as available-for-sale.

December 31, 2018

Dr Available-for-Sale Securities $130,392

Cr Cash $130,392

(To record the purchase of these bonds)

E. Preparation of the journal entries related to the available-for-sale bonds for 2019

December 31, 2019

Dr Cash $8,400

Cr Available-for-Sale Securities $1,880

Cr Interest Revenue $6,520

(To record available-for-sale bonds)

December 31, 2019

Dr Unrealized Holding Gain or Loss--Equity $512

[$128,512 - $128,000]

Cr Securities Fair Value Adjustment (Available-for-Sale) $512

(To record available-for-sale bonds)

F. Preparation of the journal entries related to the available-for-sale bonds for 2021

December 31, 2021

Dr Cash $8,400

Cr Cr Available-for-Sale Securities $2,073

Cr Interest Revenue $6,327

(To record available-for-sale bonds)

December 31, 2021

Dr Unrealized Holding Gain or Loss--Equity $427

Cr Securities Fair Value Adjustment (Available-for-Sale) $427

($126,300 - $124,465) - ($128,800 - $126,538)

=($1,835-$2,262=$427)

(To record available-for-sale bonds)


Related Questions

Westmoreland Company Following are selected data from Westmoreland Company's financial statements.

2018 2017
Current liabilities $230,000 $160,000
Long-term debt 120,000 320,000
Stockholders' equity 420,000 540,000
Cash payments for additions to plant and equipment 45,000 32,000
Net cash flow from operating activities 80,000 51,000
Interest and principal payments 12,000 8,000
Net operating cash flows before interest and taxes 68,000 43,000
Net income 90,000 72,000
Interest expense 8,500 11,500
Income taxes 16,000 14,500
Dividends paid 15,000 30,000


Refer to the Westmoreland Company data.

The company's times interest earned ratio for 2018

a. Indicates the company cannot meet its current year interest payments out of current year earnings.
b. Shows an increase in the company's ability to pay its current debt when it comes due.
c. Decreased, which indicates the company has more cash to pay interest on its debt.
d. Increased, which indicates the company's lenders will be pleased.

Which of the following statements is true regarding valuation amounts on the balance sheet?

1. Assets are recorded at current cost.
2. Stockholders' equity reflects the current market value of the stock.
3. A variety of assumptions are used in determining amounts reported on the balance sheet.
4. Stockholders' equity reflects the amount the stockholders would receive upon liquidation.

Answers

Answer:

Westmoreland Company

1. The company's times interest earned ratio for 2018

d. Increased, which indicates the company's lenders will be pleased.

2. The TRUE statement regarding valuation amounts on the balance sheet is:

3. A variety of assumptions are used in determining amounts reported on the balance sheet.

Explanation:

a) Data and Calculations:

Westmoreland Company

Selected financial statements data.

                                                          2018           2017

Current liabilities                          $230,000   $160,000

Long-term debt                               120,000    320,000

Stockholders' equity                      420,000   540,000

                                                                  2018           2017

Cash payments for additions

to plant and equipment                         45,000    32,000

Net cash flow from operating activities 80,000     51,000

Interest and principal payments             12,000      8,000

Net operating cash flows before

  interest and taxes                               68,000    43,000

Net income                                            90,000    72,000

Interest expense                                     8,500      11,500

Income taxes                                         16,000     14,500

EBIT                                                    $114,500  $98,000

Dividends paid                                      15,000    30,000

Time interest earned (TIE) for 2018 =EBIT/ Interest Expense

= $114,500/$8,500

13.47x

TIE for 2017 = $98,000/$11,500

= 8.52x

A large bakery buys flour in 25-pound bags. The bakery uses an average of 1,215 bags a year. Preparing an order and receiving a shipment of flour involves a cost of $10 per order. Annual carrying costs are $75 per bag.

Required:
a. Determine the economic order quantity. (Round your final answer to the nearest whole number.) Economic order quantity bags
b. What is the average number of bags on hand? (Round your final answer to the nearest whole number.) Average number of bags
c. How many orders per year will there be? (Round your final answer to the nearest whole number.) Number of orders per year
d. Compute the total cost of ordering and carrying flour.

Answers

Answer and Explanation:

The computation is shown below

a. The economic order quantity is

= sqrt ((2 × annual demand × ordering cost) ÷ carrying cost)

= sqrt ((2 × 1,215 × $10) ÷ $75)

=  18 units

b) Average number of bags on hand is

= EOQ ÷ 2

= 18 ÷ 2

= 9

c) Orders per year is

= D ÷ EOQ

= 1215 ÷ 18

= 67.5

= 68

d) Total cost = Total carrying cost+ Total ordering cost

= (Q ÷ 2)H +(D ÷ Q)S

= (18 ÷ 2)75 + (1215 ÷ 18) × 10

= 675 + 675

= $1350

Pina Colada Corp. has the following transactions during August of the current year.

Aug. 1 Issues shares of common stock to investors in exchange for $10,880.
4 Pays insurance in advance for 3 months, $1,500.
16 Receives $880 from clients for services rendered.
27 Pays the secretary $680 salary.

Required:
Indicate the basic analysis and the debit-credit analysis.

Answers

Answer and Explanation:

The indication of the basic analysis and the debit credit analysis is as follows;

Date                   Basic Analysis                    Debit - Credit Analysis

Aug. 1       The asset Cash is increased;     Debits increase assets;

              the stockholders' equity account   Debit Cash

                Common stock is increased.         $10,880

                                                      Credits increase stockholders' equity

                                                                      Credit Common stock

                                                                             $10,880

Aug. 4            The asset Prepaid Insurance        Debits increase assets;

                           is increased;                              Debit Prepaid Insurance

              the asset Cash is decreased.               $ 1,500

                                                                              Credits decrease assets;

                                                                             Credit Cash

                                                                              $ 1,500

Aug. 16        The asset Cash is increased;        Debits increase assets;

           the revenue Service revenue               Debit Cash

             is increased.                                         $880

                                                                          Credits increase revenues:

                                                                          Credit Service revenue

                                                                          $880

Aug. 27      The expense Salaries expense    Debits increase expenses:

                  is increased;                                Debit Salaries expense

                 the asset Cash is decreased.       $680.

                                                                       Credits decrease assets:

                                                                      Credit Cash

                                                                         $680

The ratio of shareholders funds to total assets of the company is called?​

Answers

Answer:

share holder equity

Explanation:

it indicates how much of company's assets have been generated

Anti-dilutive securities:_________.Select one:a. should be included in the computation of diluted earnings per share but not basic earnings per share.b. are those whose inclusion in earnings per share computations would cause basic earnings per share to exceed diluted earnings per share.c. include stock options and warrants whose exercise price is less than the average market price of common stock.d. should always be ignored in the computation of diluted EPS.

Answers

Answer: D. should always be ignored in the computation of diluted EPS.

Explanation:

Anti-Dilutive Securities refers to the financial instruments that an organization has which can when converted into the common stock, will lead to an increase in the organization's earning per share.

Unlike the diluted activities which brings about the reduction in the earnings per share, antidilutive maintain or increase the EPS. Therefore, anti-dilutive securities should always be ignored in the computation of diluted EPS.

Jefferson tutoring had the following payroll information on Feb 28:
Gross pay: 4,000
Cumulative earnings prior to this payroll: 4,000
Assume:
FICA tax rates are OASDI 6.2% on a limit of 117,000 and medicare 1.45%.
State unemployment tax rate is 2% on the first 7,000.
Federal unemployment tax rate is 0.8% on the first 7,000
Using the information above the journal entry to record the payroll tax expense for jefferson tutoring would include:____.
A. a credit to FUTA payable for 24.
B. a debit to payroll tax expense in the amount of 390.
C. a credit to SUTA payable for 60.
D. all of the above.

Answers

Answer: D. all of the above.

Explanation:

FUTA:

Cumulative earnings were $4,000. FUTA is one the first $7,000 which means that only $3,000 is left to be taxed on account of the cumulative earnings prior to this payroll having been taxed:

= 0.8% * 3,000

= $24

This will be credited to FUTA Payable to recognize that Jefferson owes this liability.

SUTA:

Same goes for SUTA:

= 2% * 3,000

= $60

This will be credited to SUTA Payable to recognize that Jefferson owes this liability.

Payroll tax expense:

= FICA taxes + Medicare + FUTA + SUTA

= ((6.2% + 1.45%) * 4,000) + 24 + 60

= $390

This will be debited to Payroll Tax expense because expenses are debited when they increase.

The government of Velovia made progress in its efforts to bring rapid inflation under control. Although prices are still rising, the rate of increase has slowed considerably. This suggests that Velovia is experiencing disinflation.

a. True
b. False

Answers

Answer:

a. True

Explanation:

At the time when the velvovia government made the efforts in its progress in order to control the increased inflation but at the same time the price is also still increasing but the increase rate would be falled down so here it is recommended that the velovia experienced the disinflation where the inflation is considerably slowing and the rate of inflation is also slow down

Therefore the given statement is true

A rules-based monetary policy :_______.a. is advocated by activists. b. is advocated by nonactivists. c. could involve a predetermined steady growth rate in the money supply. d. b and c e. all of the above

Answers

Answer:

d. b and c

Explanation:

Monetary policy can be defined as the actions (macroeconomic policies) adopted and undertaken by the central bank of a particular country (Federal Reserve System in the United States of America) to control the money supply and interest rates so as to boost or enhance economic growth.

Basically, monetary policies are used by the central bank to manage inflation, economic growth through long-term interest rates and level of unemployment in a country. In order to boost economic growth, the national government through its central bank introduces monetary policy to increase money supply (liquidity). Also, a monetary policy can be used to prevent inflation through the reduction of money supply at a given period of time.

A rules-based monetary policy is advocated by non-activists and when it's adopted by the central bank of a country, it could involve a predetermined steady growth rate in the money supply because it's implemented based on specific indicator events existing in the economy.

To determine the scope of a bookkeeping clean-up engagement, you are reviewing the Client Overview tab for a potential client. You notice that there is a large amount in the Opening Balance Equity account.
Which 3 reasons could be causing this balance?
A. The client added transactions in the Banking Center without assigning an account to them
B. Opening balance for an inventory item was entered during the setup process
C. The client entered an Opening Balance when creating an Other Current Asset account
D. Opening balances were included when importing customers using the Import data tool
E. The client forced a bank reconciliation when the difference was not zero

Answers

Answer: B. Opening balance for an inventory item was entered during the setup process.

D. Opening balances were included when importing customers using the Import data tool.

E. The client forced a bank reconciliation when the difference was not zero.

Explanation:

The reasons that can be attributed to the large amount in the Opening Balance Equity account will be:

• Opening balance for an inventory item was entered during the setup process.

• Opening balances were included when importing customers using the Import data tool.

• The client forced a bank reconciliation when the difference was not zero.

The 3 reasons could be causing this balance is that:

The client has added transactions in the Banking Center without assigning an account to them.

The Opening balances for one or more Product/Service items were entered during the setup process.

Opening Balances were included when importing Customers, using the Import Data tool.

The Opening Balance Equity account value most times is often equal to the prior year Retained Earnings.

if a balance in the Opening Balance Equity account does exists and if the balance is equal to the prior year’s Retained Earnings, the Opening Balance Equity may be closed into Retained Earnings.

Conclusively, if a balance remains on the Balance Sheet for Opening Balance Equity, it is advisable to review the individual transactions.

Learn more from

https://brainly.com/question/14329894

1 1.1 Briefly name and explain the aspects of the marking mix.​

Answers

Answer: Marketing mix could described as methods taken by an organization to boast their brand or improve demand of product in the market.

Explanation:

Marketing mix could described as methods taken by an organization to boast their brand or improve demand of product in the market.

Aspects of marketing mix are Price, product, promotion and place.

Price; this refers to the value of a product. The organization in considering marketing mix would have to make her price affordable for the market in relation with the value of the product it's selling.

Product; this is the item being sold. The item must be valuable and worth the buy of the customers, this would improve consistent buying and referral by those who have already bought.

Promotion: this refers to actions taken to make known the product visibility in the market. This actions could be through branding, marketing with the aim of making the products demanded more than usual always.

Place: these is referred to as the target market. Every market is not a market, the place refers to those who are either already customers or would be customers. The organization must try to identify those who her products address and try selling to them.

If property rights are not well enforced, all of the following are likely to occur except;_________
A. a significant number of people will be willing to risk their funds by investing them in local businesses.
B. fewer goods and services will be produced
C. economic efficiency will be reduced
D. an economy will produce inside its production possibilities frontier.

Answers

Answer:

If property rights are not well enforced, all of the following are likely to occur except;_________

A. a significant number of people will be willing to risk their funds by investing them in local businesses.

Explanation:

Other options are likely to occur, except option A.  Investors cannot risk their capital investing in the local economy.  This is the fate of an economy where property rights are not protected.  This also underlines the need for each government to ensure that property rights are recognized and legally protected.

A company projects an increase in net income of $108000 each year for the next five years if it invests $900000 in new equipment. The equipment has a 5-year life and an estimated salvage value of $300000. What is the annual rate of return on this investment?
a. 20.5%
b. 31.0%
c. 30.0%
d. 30.8%

Answers

Answer:

18 %

Explanation:

Annual rate of return on this investment = annual profit / average investment x 100

where,

annual profit = $108000

average investment = (initial cost + salvage value) ÷ 2

                                 = ($900000 + $300000) ÷ 2

                                 = $600,000

therefore,

annual rate of return on this investment = $108000 / $600,000 x 100

                                                                   = 18 %

Kite Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range.
Sales (3,000 units) $ 180,000
Variable expenses 108,000
Contribution margin 72,000
Fixed expenses 62,400
Net operating income $ 9,600
The contribution margin ratio is closest to:______.
a. 33%
b. 40%
c. 60%
d. 67%

Answers

Answer:

b. 40%

Explanation:

Contribution margin ratio = Contribution / Sales x 100

where,

Contribution = Sales - Variable Costs

                     =  $180,000 - 108,000

                     =  $72,000

therefore,

Contribution margin ratio = $72,000/ $180,000 x 100

                                          = 40 %

thus,

The contribution margin ratio is closest to 40 %.

Oi boa tarde , onde consigo um curso online de aprimoramento de laticinios

Answers

Explanation:

aqui neste APP...............

. Alternative A has a first cost of $20,000, an operating cost of $9,000 per year, and a $5,000 salvage value after 5 years. Alternative B will cost $35,000 with an operating cost of $4,000 per year and a salvage value of $7,000 after 5 years. At an MARR of 12% per year, which should be selected

Answers

Answer and Explanation:

The computation is shown below:

NPW of X is

= -$20,000 - $9,000 × (P/A,12%,5) + $5,000 × (P/F,12%,5)

= -$20,000 - $9,000 × 3.604776 + $5,000 × 0.567427

= -$49,605.85

And,  

NPW of Y is

= -$35,000 - $4,000 × (P/A,12%,5) + $7,000 × (P/F,12%,5)

= -$35,000 - $4,000 × 3.604776 + $7,000 × 0.567427

= -$45,447.11

Based on the above calculations as we can see that net present cost of Y is lower than the net present cost of X so Y should be selected  

On November 1, 2010, Salem Corporation sold land priced at $900,000 in exchange for a 6%, six-month note receivable. As a result of this sale of land, what will Salem's Balance Sheet on December 31, 2010 include

Answers

Answer:

Note receivables of $900,000 & Interest receivable of $9,000

Explanation:

As a result of this sale of land, what will Salem's Balance Sheet on December 31, 2010 include?

Interest receivable = $900,000*6%*2/12

Interest receivable = $900,000 * 0.01

Interest receivable = $9,000

So, Salem's Balance Sheet on December 31, 2010 will include Note receivables of $900,000 and Interest receivable of $9,000.

What are derivatives? Different types of derivatives ? What are Forward contracts ?

What are Futures contracts ? Features and benefits of derivatives ?

Answers

Explanation:

The most common types of derivatives are forwards, futures, options, and swaps. The most common underlying assets include commodities, stocks, bonds, interest rates, and currencies. Derivatives allow investors to earn large returns from small movements in the underlying asset's price.

Accountants focus on creating financial statements, whereas finance professionals use these statements to evaluate a firm and answer questions about its performance. Indicate which financial statement you would refer to when answering the questions in the following table:

Income Statement Statement of Retained Earnings

How profitable has the firm been?
How much of the firm's earnings are left as balance after the firm pays out dividends to its shareholders?

If compensation for senior management is based on short-term performance of the firm, in the short run the firm is likely to:
a. Overstate its earnings
b. Understate its earnings

Answers

Answer:

1. Indication of financial statement to refer to when answering questions in the following table:

Question                                                   Financial Statement

How profitable has the firm been?         Income Statement

How much of the firm's earnings are     Statement of Retained Earnings

left as balance after the firm pays out

dividends to its shareholders?

2. If compensation for senior management is based on short-term performance of the firm, in the short run the firm is likely to:

a. Overstate its earnings

Explanation:

Company A's Income Statement shows its profit performance at different levels.  At one level is the gross profit, which shows the difference between the net sales or service revenue and the cost of sales/service.  At another level is the operating income, which is the income before interest and taxes.  The next important level is the net income, which is the profit after taxes.  This shows the earnings available for distribution to stockholders.  The Statement of Cash Flows classifies the cash flows generated into operating, investing, and financing activities, and shows the non-cash flow adjustments.

In the market for wheat, if the price of ethanol (which is made from corn, a substitute in the production process) increased dramatically, the _____ wheat would _____.
a. demand for; increase.
b. supply of; decrease.
c. demand for; decrease.
d. supply of; increase.

Answers

Answer:

I think C.

Explanation:

Please correct me if wrong and if right, give brainliest plz?


The answer is C
Explanation

You manage an equity fund with an expected risk premium of 13% and a standard deviation of 44%. The rate on Treasury bills is 6.6%. Your client chooses to invest $90,000 of her portfolio in your equity fund and $60,000 in a T-bill money market fund. What is the expected return and standard deviation of return on your client’s portfolio? (Round your answers to 2 decimal places.)

Answers

Answer and Explanation:

The computation of the expected return and the standard deviation is given below:

the expected return is

= $90,000 × 13% + $60,000 × 6.6%

= $15,660.00

And,

standard deviation of return is

= $90,000 × 13% × 44% + $60,000 × 6.6%

= $5,148 + $3,960

= $9,108.00

In this way it should be calculated

Explain 2 reasons why businesses create business plan?

Answers

determine whether your business has a chance of making a good profit.
provide an estimate of your start-up costs, and how much you'll need to invest or finance.

The goods exported to Uruguay arrived at the port on the 12th day of this month. Today is the 15th, the bank informed that the customer had not redeemed the bill. We guess it may be the reason for the holidays, so the customer did not redeem in time. I wonder if the destination port will incur any expenses. What should we ask the bank to do with this issue?​

Answers

Answer:

we should ask the bank for extra time

An industry consists of three firms with sales of $355,000, $825,000, and $435,000.
a. Calculate the Herfindahl-Hirschman index (HHI).
Instruction:
Enter your response rounded to the nearest integer.
b. Calculate the four-firm concentration ratio (C4).
c. Based on the FTC and DOJ Horizontal Merger Guidelines described in the text, is the Department of Justice likely to attempt to block a horizontal merger between two firms with sales of $355,000 and $435,000

Answers

Answer:

Calculating Herfindahl-Hirschman Index and Four-Firm Concentration Ratio:

a. Herfindahl-Hirschman index (HHI) = 3,814

b. The four-firm concentration ratio (C4) = 1

c. If the two firms with sales of $355,000 and $435,000 merged, the resulting HHI would increase by 1,723 to 5,537.  The post-merger HHI now exceeds that allowed under the Guidelines (2,500). The increase in HHI is more than that permitted under the Guidelines (200), the merger is likely to be blocked by the Department of Justice.

Explanation:

a) Data and Calculations:

Sales of three firms in an industry:

                            Sales          Industry Share

Firm A sales = $355,000        22% ($355,000/$1,615,000 * 100)

Firm B sales =   825,000         51% ($825,000/$1,615,000 * 100)

Firm C sales =   435,000        27% ($435,000/$1,615,000 * 100)

Total sales =  $1,615,000

Herfindahl-Hirschman index (HHI) = 3,814 (22² + 51² + 27²)

Four-firm concentration ratio (C4) = Sales of the four largest firms/Industry sales = $1,615,000/$1,615,000

If the two firms with sales of $355,000 and $435,000 were to merge, the new Herfindahl-Hirschman index (HHI) = 5,537(49² + 51²)

Increase in HHI as a result of the merger = 1,723

Oregon Forest Products will acquire new equipment that falls under the five-year MACRS category. The cost is $500,000. If the equipment is purchased, the following earnings before depreciation and taxes will be generated for the next six years. Use Table and calculate your final answer using the formula and financial calculator methods.
Earnings before Depreciation
Year 1 $160,000
Year 2 215,000
Year 3 125,000
Year 4 89,000
Year 5 78,000
Year 6 44,000
The firm is in a 20 percent tax bracket and has a 12 percent cost of capital. Calculate the net present value.

Answers

Explanation:

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Answer:

to the end of the sixth year;

b/ The number of years required before the capital stock exceeds $200 000.

Borges Machine​ Shop, Inc., has a​ 1-year contract for the production of 225,000 gear housings for a new​ off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three alternatives. They are​ general-purpose equipment​ (GPE), flexible manufacturing system​ (FMS), and​ expensive, but​ efficient, dedicated machine​ (DM). The cost data​ follow: ​

General-Purpose Equipment​ (GPE) Flexible Manufacturing System​ (FMS) Dedicated Machine​ (DM)
Annual contracted units 225,000 225,000 225,000
Annual fixed cost $125,000 $225,000 $480,000
Per unit variable cost $15.00 $14.00 $13.00

The option GPE is best when the contracted volume is below:__________

Answers

Answer:

For 225,000 units FMS is the best alternative.

For GPE: TC  

GPE  

[tex]= $100,000 + ($15.00\times 225,000)\\\\= $3,475,000[/tex]

For 0 units GPE has the lowest TC. The next lowest cost is FMS.

x = ($200,000-$100,000)/($15-$14) = 100,000  

Therefore, for 0 to 100,000 units GPE is the best alternative.

Explanation:  

Formula used:-

For 225,000 units FMS is the best alternative.

Total Cost (TC) = Fixed Cost (FC) + [Variable Cost (VC) x Annual Contract Units (ACU)]  

For GPE: TC  

GPE  

[tex]= $100,000 + ($15.00\times 225,000)\\\\= $3,475,000[/tex]

For FMS: TC  

FMS  

[tex]= $200,000 + ($14.00\times 225,000)\\\\= $3,350,000[/tex]

For DM: TC  

DM  

[tex]= $480,000 + ($13.00 \times225,000)\\\\= $3,405,000[/tex]

   

For 0 units GPE has the lowest TC. The next lowest cost is FMS. Comparing these two plans, let x be the no of units when the cost of both plans is the same.  

x = ($200,000-$100,000)/($15-$14) = 100,000  

Therefore, for 0 to 100,000 units GPE is the best alternative  

Similarly comparing FMS and DM to find x, we get  

x= ($ 480,000-$ 200,000)/($14-$13) = 280,000  

So, for the 225,000 and 280,000 range, FMS is the best alrernative.  

For greater than 280,000 DM is the best alternative.  

The option GPE is best when the contracted volume is below 100,000 units  

The option FMS is best when the contracted volume is between 100,000 and 280,000 units (enter your response as a whole number)  

The option DM is best when the contracted volume is over 280,000 units (enter your response as a whole number)

Identify the financial instruments based on the following descriptions.

a. Backed by the US government, these financial instruments are fixed-rate debt securities with a maturity of more than one year. They are considered default free but are subject to interest rate risk.
b. Issued by corporations, these unsecured debt instruments are used to fund corporate short-term financing requirements. If issued by a financially strong company, they have less risk.
c. These financial instruments are investment pools that buy such short-term debt instruments as Treasury bills (T-bills), certificates Of deposit (CDs), and commercial paper. They can be easily liquidated.
d. These financial instruments are contractual agreements that give one party a long-term agreement to use an asset by providing regular payments.

Answers

Answer:

The solution to the given point can be defined as follows:

Explanation:

For point a:

TREASURY NOTE: For further than a year, Treasury notes were issued for the federal reserves.

For point b:

COMMERCIAL PAPER: Brief securities mostly on corporate debt Sar financial markets.

For point c:

MONEY MARKET MUTUAL FUND: In short-term assets, the Financial Market Fund invests.

For point d:

PREFERENCE SHARES: Preferred shareholders are much more divergent than owners, and less than the shareholders were dealt with.

please someone should help me.....how do we solve the square root of x +8 plus the square root of x+1 equals 7.....note the question is a surd question​

Answers

The solution to the surd equation here is x = 449/49

How to solve for the value of the surd

[tex]\sqrt{x+8} +\sqrt{x-1} = 7[/tex]

We have to isolate the surds

[tex]\sqrt{x+8} =\sqrt{x-1} +7[/tex]

Square the both sides of the equation

x+8 = x-1+49-14√x-1

Separate the equations on the left and the right hand side

14√x-1 = -x-8+x-1+49

Rearrange the equation

14√x-1 = 40

square the both sides of the equation such that

196x  -1796 = 0

Divide through by 196

x = 1796/196

x = 449/49

Read more on surds here:

https://brainly.com/question/26957266

#SPJ1

During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly counted its inventory as $229,134 instead of the correct amount of $165,639. The effect on the balance sheet and income statement would be

Answers

Answer:

Assets will be overstated and Net Income understated

Explanation:

The effect on the balance sheet and income statement

Balance Sheet :

Inventory will be overstated

Inventory belongs to the Current Asset group

Meaning Assets will be overstated

Income Statement :

Inventory will be overstated

This reduces cost of sales with an amount greater

Meaning Profits will be overstated

Conclusion

The effect on the balance sheet and income statement would be : Assets will be overstated and Net Income understated.

In recent years, rules have tightened such that those who work for the U.S. government in trade negotiations are now restricted from working for lobbyists for foreign firms. Take the stance of either for or against that statement. Provide justification for your stance.

Answers

Answer: For this statement.

Explanation:

People will generally offer their loyalties to those who pay them the highest or who pay them at all and companies will typically be loyal to their country of origin.

What this means is that trade negotiators who work for lobbyists of foreign firms will typically want to advance the interests of the foreign firms when negotiating trade deals for the U.S. government.

This presents a problem because the foreign companies might want to negotiate a deal that favors their own countries over the United States so if trade negotiators that are on their side are the ones negotiating for the United States, the U.S. might not get a good enough deal.

Imagine for instance, a person negotiating a trade deal for the U.S. with China but the person works for lobbyists of Huawei. It is reasonable to assume that the person would want to advance the interests of China on behalf of Huawei. Restricting such a person from negotiating for the U.S. reduces such a possibility.

According to real business cycle theorists, ______________ consumption resulting from the major production innovations incentivizes businesses to borrow ______________ from banks, causing the money supply to ______________.

Answers

Answer:

increase in,  more,  increase

Explanation:

Real business cycle theory states that the [tex]\text{macroeconomic fluctuations}[/tex] in any economy can be explained by the technological shocks and the changes in the productivity. All these changes in the technological growth affects the decisions of the firms on investment as well as workers or the labor supply.

Edward C. Prescott and Finn E. Kydland first gave the concept of real business cycle theory.

In the theory of real business cycle, the increase in consumption results from the major [tex]\text{production innovations incentivizes businesses}[/tex] to borrow more from the banks, and it causes the supply of money to increase.

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