Answer:
The correct answer is the option: Public.
Explanation:
To begin with, the term of "Public Relations" refers to the instrument that the marketing managers have in order to establish better relationships with agents that are outside the company with the primary focus of increasing those relations that will eventually increase the company's public image. Moreover, one the variables that changes when the company decides to use this type of strategy is the fact that the target audience or market changes to be the public in general and that is why that the company forgets about their customers and focus on the public as a whole.
fremont which uses the high-low method reported total cost of $10 per unit its lowest production level, 5000 units. when production tripled to its highest level, the total cost per unit dropped to $5 variable cost per unit
Answer:
$2.50
Explanation:
Calculation for the estimation of variable cost per unit
Units Total cost
High method 15,000×$5 per units =$75,000
(5,000*3)=15,000
Low method 5,000*$10 per units=$50,000
Difference 10,000 $25,000
Variable cost per unit =$25,000/10,000
Variable cost per unit=$2.50
Note: Based on the information given we were told that production tripled to its highest level which means the high method units will be 15,000 units (5,000 units*3)
Therefore Fremont would estimate its variable cost per unit as: $2.50
Alternate Outputs from One Day's Labor Input: USA: 12 bushels of wheat or 3 yards of textiles. India: 3 bushels of wheat or 12 yards of textiles. From the data, the USA:________.
a) has an absolute advantage over India in the production of wheat.
b) should export textiles to India.
c) has an absolute advantage over India in the production of textiles.
d) has a comparative advantage in the production of textiles.
Answer: a) has an absolute advantage over India in the production of wheat.
Explanation:
When a country is said to have an Absolute advantage in the production of a commodity, it means that they can produce more of that commodity than the country being compared to given the same amount of resources, all else being equal.
Given one day's labor input, the US can produce 12 bushels of wheat while India can only manage 3 bushels. The United States therefore has an Absolute advantage in the production of Wheat than India.
Peter Parker is evaluating two different methods for manufacturing spiderwebs. The first option is manufacturing them in his home lab. This will entail purchasing an industrial-grade chemical reactor that costs $450,000. He will have to hire a lab assistant who will initially receive a salary of $60,000 a year, but that salary must be adjusted for inflation every year at an inflation rate of 2.5%. After ten years, the chemical reactor can be sold for $30,000. This lab setup can produce 10,000 cubic meters of spiderwebs per year.
The second option is outsourcing all the manufacturing process to a biotech company recently set up by Bruce Banner. In this case, the price of the spiderwebs will be $14 per cubic meter over the next ten years.
Since Peter Parker is a broke student, all of this project is being financed by a superhero fund set up by his late friend and mentor Tony Stark. This fund returns 11% annually. Since this is not a commercial endeavor, there are no taxes nor depreciation to consider. Given these data, calculate the unit price of manufacturing spiderwebs in the lab and decide which of the two options makes the most economic sense. Justify your answers with calculations.
Answer:
Option B makes the most economic sense.
Explanation:
Option A:
The total Initial investment amount - $450,000 + $60,000 = $510,000 total Initial investment cost excluding the adjustment for inflation every year of the staff.
Per unit manufacturing cost= $510,000 ÷ 10, 000 (cubic meters of spiderwebs per year) = $51 (implying the selling price per unit will be higher than this).
Option B:
Initial total investment cost = $0 (he only outsourced)
Per unit manufacturing cost= less than $14 (because the price of the spiderwebs will be $14 per cubic meter over the next ten years).
By outsourcing following option B, Peter would avoid the massive initial investment cost of buying the industrial-grade chemical reactor that costs $450,000. Also, since this is not a commercial endeavor he needs to be wary of the lower cost per unit of the spiderwebs he stands to gain with option B.
If $4000 is borrowed at a rate of 4.75% interest per year, compounded quarterly, find the amount due at the end of the given number of years. (Round your answers to the nearest cent.)
Answer:
1. $4000(1 + 4.75/4)^20 = $5,065.21
2. $4000(1 + 4.75/4)^28 = $5,566.88
3. $4000(1 + 4.75/4)^36 = $6,118.25
Explanation:
Here is the full question :
f $4000 is borrowed at a rate of 4.75% interest per year, compounded quarterly, find the amount due at the end of the given number of years. (Round your answers to the nearest cent.)
5 Years
7 Years
9 Years
We are to find the future value of the amount
The formula for calculating future value:
FV = P (1 + r/m)^ nm
FV = Future value
P = Present value
R = interest rate
N = number of years
M = number of compounding per year
1. $4000(1 + 4.75/4)^20 = $5,065.21
2. $4000(1 + 4.75/4)^28 = $5,566.88
3. $4000(1 + 4.75/4)^36 = $6,118.25
True or False: The more that the labor supply decreases in response to a decrease in wages, the larger are the supply-side effects of an increase in tax rates (that is, the decrease in output is largerdue to a tax increase).
Answer:
Correct Answer:
1. True
Explanation:
Taxes affect work activity directly through labor supply-and-demand channels and indirectly through government spending responses to available tax revenues. It has been determined that higher tax rates on labor lead to less work time in the legal market sector.
Dustup, a cleaning products company, was trying to revive its old wood floor waxing product. It began offering an augmented service of a small brochure called "Ask a Wood Floor Expert" to its bottles. The brochure included information and a customer support hotline. However, shoppers removed the brochure from bottles in the store, so few bottles were purchased. At the same time, Dustup began receiving a flood of calls to its hotline. This increased Dustup’s costs 30% over projections. What question did the company forget to ask before launching its add-on?
Answer:
Dustup forgot to the consumers if the add-on will give them more satisfaction from using their product.
Explanation:
The market is always king. Getting first-hand information about what consumers need and how they need it is the best way to go about creating a product or modifying an existing one to become more profitable.
The removal of the brochures from the bottles showed that shoppers didn't necessarily want their product. What they wanted was to be able to make contact with the company and get more information on how to revive their old wooden floors.
Cheers!
A company budgets administrative salaries at $5,000 at a sales level of 1,000 units. At a sales level of 1,200 units, budgeted administrative salaries will be $
Answer:
$5,000
Explanation:
Based on the information given we were told that the company had budgets administrative salaries at the amount of $5,000, which means that the amount of $5,000 will be the company budgets administrative salaries.
Therefore the company budgeted administrative salaries will be the amount of $5,000
Tyler Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $127.20 per unit. Sales volume (units) 5,000 6,000 Cost of Sales $419,000 $502,800 Selling and Administrative costs $186,000 $202,200 The best estimate of the total contribution margin when 5,300 units are sold is: Group of answer choices $230,020 $51,410 $146,810 $32,330
Answer:
The correct answer is A.
Explanation:
Giving the following information:
The company sells the product for $127.20 per unit.
Sales volume (units) 5,000 6,000
Cost of Sales $419,000 $502,800
First, we need to determine the unitary variable cost:
unitary variable cost= 419,000/5,000= $83.8
unitary variable cost= 502,800/6,000= $83.8
Now, the unitary contribution margin:
Unitary contribution margin= 127.2 - 83.8= $43.4
Finally, the total contribution margin:
total contribution margin= 5,300*43.4= $230,020
The best estimate of the total contribution margin when 5,300 units are sold is option A $230,020.
Total Contribution Margin
To Calculate the Contribution Margin, we need to find the value of the unitary variable cost, and their margin. We are provided with these information:
Selling price $127.20 per unit.
Sales volume 5,000, & 6,000
Cost of Sales $419,000 & $502,800
To find the value of Total Contribution margin:
Step 1: Unitary Variable Cost= 419,000/5,000= $83.8
Step 2: Unitary Variable Cost= 502,800/6,000= $83.8
Step 3: Unitary Contribution Margin= 127.2 - 83.8= $43.4
Step 4: Total contribution margin when 5300 units are sold= 5,300×43.4= $230,020.
Hence, option A is correct.
Learn More about Contribution Margin here:
https://brainly.com/question/24309427
"One of the ten IG principles is a Continuous improvement. What is the importance of this principle to the organization program"
Answer:
the importance is to provide periodic program review and necessary adjustments against gaps and it short comings
Explanation:
Information governance is a full way of managing information in a corporation by the implementation of a series of processes, controls and roles. It can be simply said to be a process of managing information assets as this will cause a balance between security and usage.
continuous improvement is one of its 10 principles. And it simply means that programs in information governance have to go through continuous reviews and updates as doing such will help to reduce shortcomings.
2. Suppose that you have 2 buyers and one item for sale. The first buyer values your product at $10, and the second buyer values your product at $6. You estimate that the probability of getting the high value customer is 40%. Your marginal costs are $3. You have only one chance to sell your item to these buyers. What is your optimal price and expected profit
Answer:
Price at $6, Profit = $3
Explanation:
When price is $ 10:
Profit = $10 - $3 = $7
But there is 40% chance of high valued customer
So, profit = $7 X 0.40 = $2.8
When price is $6
Profit = $6 - $3 = $3
Fertile Acres Inc., Growers Farm Co-op, and Harvest Orchards agree to exchange information, conduct an advertising campaign, and set certain regulatory standards to govern their operations. This association is
Answer: a. subject to analysis under the rule of reason.
Explanation:
The Rule of Reason is used to interpret whether he Sherman Act which is an anti-trust law has been breached. This Rule was established so as not to unfairly close down all monopolies and Monopolies are not illegal, price fixing is.
If companies therefore come together as Fertile Acres Inc., Growers Farm Co-op, and Harvest Orchards have done, the Government under the Rule of Reason will check to see if the actions of these firms was done in order for them to go against free trade practices. If it was not then the agreement might be allowed to stand.
Costs which can be eliminated in whole or in part if a particular business segment is discontinued are called:
Answer:
Avoidable costs
Explanation:
An avoidable cost is defined as one that an entity will not incur if a particular activity is not undertaken.
In business operations avoidable costs are usually variable costs. These are costs that vary or change in the cost of production. For example wages, cost of raw materials, and labour. These can be avoided depending on business needs.
Costs that are not avoidable are fixed cost. For example rent, insurance, and utilities.
These costs are paid wether production occurs or not.
Which of the following statements is CORRECT? a. Commercial paper can be issued by virtually any firm so long as it is willing to pay the going interest rate. b. Short-term debt is favored by firms because, while it is generally more expensive than long-term debt, it exposes the borrowing firm to less risk than long-term debt. c. Commercial paper is a form of short-term financing that is primarily used by large, strong, financially stable companies. d. Trade credit is provided only to relatively large, strong firms. e. Commercial paper is typically offered at a long-term maturity of at least five years.
Answer: Commercial paper is a form of short-term financing that is primarily used by large, strong, financially stable companies.
Explanation:
Commercial papers a promissory notes which are issued by companies on a short term basis that are unsecured. It should be noted that that they are used by the strong, large, and financially stable companies.
Commercial paper are issued in order to finance payroll, and also meet a company's short-term liabilities.
Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company’s products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,400 helmets, using 2,346 kilograms of plastic. The plastic cost the company $15,484. According to the standard cost card, each helmet should require 0.64 kilograms of plastic, at a cost of $7.00 per kilogram. Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,400 helmets? 2. What is the standard materials cost allowed (SQ × SP) to make 3,400 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance?
Answer:
1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,400 helmets?
3,400 helmets x 064 kgs per helmet = 2,176 kgs
2. What is the standard materials cost allowed (SQ × SP) to make 3,400 helmets?
2,176 kgs x $7 per kg = $15,232
3. What is the materials spending variance?
$15,484 - $15,232 = $252 unfavorable (because total expenditures on materials were higher than budgeted)
4. What is the materials price variance and the materials quantity variance?
materials price variance = [($15,484/2,346) - $7] x 2,346 = -$938 favorable (the purchase price per kg was lower than budgeted)
materials quantity variance = (2,346 - 2,176) x $7 = $1,190 unfavorable
A firm has a debt-to-equity ratio of .5 and a market-to-book ratio of 2. What is the ratio of the book value of debt to the market value of equity
Answer: 0.25
Explanation:
The The debt-to-equity ratio is calculated when the total liabilities of w company is divided a by the shareholder equity while the book-to-market ratio is used to know a company's value by comparing the book value of the company to its market value.
Since the firm has a debt-to-equity ratio of .5 and a market-to-book ratio of 2. The ratio of the book value of debt to the market value of equity will be:
= 0.5/2
= 0.25
A company had the following cash flows for the year: (a) Purchased inventory, $60,000 (b) Sold goods to customers, $90,000 (c) Received loan from a local bank, $150,000 (d) Purchased land, $180,000 (e) Purchased treasury stock, $40,000 (f) Paid dividends, $10,000 (g) Sold delivery truck, $30,000 What amount would be reported for net investing cash flows on the Statement of Cash Flows (for a negative number put a minus in front of the number)?
Answer:
The amount would be reported for net investing cash flows on the Statement of Cash Flows is –$190,000, that is, minus $190,000.
Explanation:
Cash flow from investing activities refers to the section of the cash flow statement that provides amount of cash that is generated or spent on investing activities.
Investing activities comprises of purchases or sales property plant, and equipment (PP&E), marketable securities (i.e., stocks, bonds, etc.), and among others.
From the question, the amount of net investing cash flows can be computed as follows:
Particulars Amount ($)
Purchased land –180,000
Purchased treasury stock –40,000
Sold delivery truck 30,000
Net cash flow from investing activities –190,000
Therefore, the amount would be reported for net investing cash flows on the Statement of Cash Flows is –$190,000, that is, minus $190,000.
Laurie's Ice Rink keeps an extra $1,500 in its checking account simply in case an emergency arises. Which type of motive for holding cash does this represent
Answer:
Precautionary Motive
Explanation:
there are three motives for Holding Money . They are :
1. Transaction Motive: the motive for holding money is to be able to carry out transactions such as to pay for goods or services.
2. Precautionary Motive: the motive for holding money is to meet unforeseen circumstances or emergencies. e.g. if my car suddenly develops a fault.
3. Asset or Speculative Motive: the motive for holding money is to take advantage of the rise and fall of prices of bonds and securities.
By 2002, Fisher's strategic initiatives in China had yielded significant results. They had 63% of the retail film market and 7,000 stores.
A. Exporting
B. Contractual agreements
C. Strategic alliances/joint ventures
D. Direct investment
Answer: Strategic alliances/joint ventures
Explanation:
From the question, we are informed that by 2002, Fisher's strategic initiatives in China had yielded significant results and that they had 63% of the retail film market and 7,000 stores.
The method used for their success was the strategic alliances or joint venture whereby two or more business or individuals come together and utilize the resources available to carry out a particular objective.
On January 1, a company issued and sold a $300,000, 5%, 10-year bond payable, and received proceeds of $293,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The carrying value of the bonds immediately after the first interest payment is:
Answer: $293,350
Explanation:
The carrying value of the bonds immediately after the first interest payment will be the addition of the received proceed and the ammortized discount. This will be:
= $293,000 + $350
= $293,350
Note that the ammortized discount was calculated as:
= ($300000 - $293000)/20
= $7000/20
= $350
A stock has had the following year-end prices and dividends: Year Price Dividend 1 $ 43.37 - 2 48.35 $ .60 3 57.27 .63 4 45.35 .80 5 52.27 .85 6 61.35 .93 What are the arithmetic and geometric average returns for the stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
geometric mean return = 1.2%
arithmetic mean return = 1.21%
Explanation:
Year Price Dividend Yearly return
1 $43.37 - 0
2 $48.35 $0.60 1.24%
3 $57.27 $0.63 1.1%
4 $45.35 $0.80 1.76%
5 $52.27 $0.85 1.63%
6 $61.35 $0.93 1.52%
geometric mean return = [(1 + 0) x (1 + 0.0124) x (1 + 0.011) x (1 + 0.0176) x (1 + 0.0163) x (1 + 0.0152)]¹/⁶ - 1 = 1.012 - 1 = 0.012 = 1.2%
arithmetic mean return = (0% + 1.24% + 1.1% + 1.76% + 1.63% + 1.52%) / 6 = 7.25% / 6 = 1.21%
Ray's Satellite Emporium wishes to determine the best order size for its best-selling satellite dish (model TS111). Ray has estimated the annual demand for this model at 1,500 units. His cost to carry one unit is $80 per year per unit, and he has estimated that each order costs $22 to place.
Using the EOQ model, how many should Ray order each time?
Answer:
28.72 units
Explanation:
Calculation of how many should Ray order each time using EOQ model
Using this formula
EOQ= √2DS/H
Where,
D=Annual demand 1,500 units
S=Order costs $22
H=Holding Costs $80 per unit
Let plug in the formula
EOQ=√2*1,500*$22/$80
EOQ=√66,000/$80
EOQ=√825
EOQ=28.72 units
Therefore Using the EOQ model, Ray should order 28.72 units each time.
Blossom, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $4,700 from sales $201,000, variable costs $175,000, and fixed costs $30,700. If the Big Bart line is eliminated, $19,800 of fixed costs will remain. Prepare an analysis showing whether the Big Bart line should be eliminated. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) g
Answer:
Analysis of the Big Bart line discontinuity
Opportunity Costs :
Sales ($201,000)
Savings :
Variable Costs $175,000
Fixed Costs ($30,700 - $19,800) $10,900
Financial Advantage / (Disadvantage) ($15,100)
Conclusion :
Do not eliminate / discontinue Big Bart line.
Explanation:
The results show that closing Big Bart line results in a contribution towards fixed cost being lost to the amount of $15,100. Therefore leaving the entire company in a worse off position.
Which of the following perspectives from the balanced scorecard approach helps managers answer the question, "How do we look to shareholders?
a. Learning and growth perspective
b. Internal business perspective
c. Customer perspective
d. Financial perspective
Answer:
d. Financial perspective
Explanation:
-Learning and growth perspective focuses on the measures that the company can take to improve its performance.
-Internal business perspective indicates if the internal performance is allowing to meet the customers' needs.
-Customer perspective shows if the company is focused on the customers and on delivering value to them.
-Financial perspective indicates if the company's strategy is providing benefits and value to the shareholders.
According to this, the answer is that the perspective from the balanced scorecard approach that helps managers answer the question, "How do we look to shareholders?" is the financial perspective because it indicates the shareholders if the company is getting the economic results that are expected.
What is the yield to maturity on a bond that pays annual coupon rate of 14%, has a par value of $1,000, matures in 10 years, and is selling for $911?
Answer:
Yield to Maturity =15.6%
Explanation:
The Yield to maturity is the discount rate that equates then price of the bonds to the present of cash inflows expected from the bond
The yield on the bond can be determined as follows using the formula below:
YM = C + F-P/n) ÷ 1/2 (F+P)
YM-Yield to maturity-
C- annual coupon
F- Face Value
P- Current Price
n- number of years
DATA
Coupon = coupon rate × Nominal value = 1,000 × 14%=140
Face Value = 1000
YM-?, C- 140, Face Value - 1,000, P-911 , n- 10
YM = (140 + (1000-911)/10) ÷ ( 1/2× (1000 + 911) )
YM = 0.156 × 100 = 15.6%
Yield to Maturity =15.6%
The following transactions occurred during March 2016 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.
1. Issued 30,000 shares of capital stock in exchange for $300,000 in cash.
2. Purchased equipment at a cost of $40,000. $10,000 cash was paid and a note payable was signed for the balance owed.
3. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000.
5. Paid $5,000 in rent on the warehouse building for the month of March.
6. Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2016.
7. Paid $70,000 on account for the merchandise purchased in 3.
8. Collected $55,000 from customers on account.
9. Recorded depreciation expense of $1,000 for the month on the equipment.
Required:
Analyze each transaction and classify each as a financing, investing, and/or operating activity (a transaction can represent more than one type of activity). In doing so, also indicate the cash effect of each. (Amounts to be deducted should be indicated with a minus sign. If there is no cash effect, leave cell blank.)
Answer:
1. Financing Activity : $300,000
2.Investing Activity : $10,000 and Non-cash Financing and Investing Activity : $30,000
3.Operating Activity : - $90,000
4.Operating Activity : $50,000
5.Operating Activity : -$5,000
6.Operating Activity : -$6,000
7.Operating Activity : -$70,000
8.Operating Activity : $55,000
9.Operating Activity : $1,000
Explanation:
Operating Activities involves the entity`s trading operation in ordinary course of business.
Investing Activities involves the entity`s sale or purchase of Investments.
Financing Activities involves the entity`s acquisition and sale of funds.
rancis Inc.'s stock has a required rate of return of 10.25%, and it sells for $87.50 per share. The dividend is expected to grow at a constant rate of 6.00% per year. What is the expected year-end dividend, D1
Answer:
$3.72
Explanation:
Francis incorporation stock has a required rate of return of 10.25%
The stock is sold at $87.50 per share
The growth rate is 6% per year
Therefore, the expected dividend can be calculated as follows
= Po(rs-g)
= $87.50(10.25%-6%)
= $87.50×4.25
= $3.72
Hence the expected year end dividend is $3.72
Ben and Jerry were shareholders of Water Ice Inc., an S corp. On Jan. 1, 1998, Ben owned 40 shares and Jerry owned 60 shares. Ben sold his shares to Joe for $10,000 on March 31, 1998. The corp. reported a $50,000 loss at the end of 1998.
How much of the loss is allocated to Joe?
A. $20,000
B. $15,060
C. $12,500
D. $10,000
Answer: $15,060
Explanation:
From the question, we are informed that Ben and Jerry were shareholders of Water Ice Inc., an S corp. On Jan. 1, 1998, Ben owned 40 shares and Jerry owned 60 shares.
We are further told that Ben sold his shares to Joe for $10,000 on March 31, 1998 and that the corp. reported a $50,000 loss at the end of 1998. The loss that will be allocated to Joe will be:
= $50,000 × 40% × 9/12
= $50,000 × 0.4 × 0.75
= $15,000
The closest figure we have close to that is $15,060 which is option B
The annual report for Malibu Beachwear reported the following transactions affecting stockholders’ equity:a. Purchased $350,100 of common stock now held in treasury.b. Declared cash dividends in the amount of $260,050.c. Paid the dividends in (b).d. Issued 101,000 new shares of $0.10 par value common shares for $2 per share.e. Closed the Dividends account.Required:Indicate the effect (+ for increase, − for decrease, +/− for increase/decrease) of each of these transactions on total assets, liabilities, and stockholders’ equity.
Answer:
Malibu Beachwear
Indication of the effect (+ for increase, − for decrease, +/− for increase/decrease) of each of these transactions on total assets, liabilities, and stockholders’ equity:
a. Purchased $350,100 of common stock now held in treasury.
Assets (-$350,100) = Liabilities + Shareholders' Equity (-$350,100)
b. Declared cash dividends in the amount of $260,050.
Assets = Liabilities (+$260,050) + Shareholders' Equity (-$260,050)
c. Paid the dividends in (b).
Assets (-$260,050) = Liabilities (-$260,050) + Shareholders' Equity
d. Issued 101,000 new shares of $0.10 par value common shares for $2 per share.
Assets (+$202,000) = Liabilities + Shareholders' Equity (+$202,000)
e. Closed the Dividends account.
Assets = Liabilities + Shareholders' Equity
Explanation:
a. The purchase of common stock held in treasury implies that Malibu Beachwear bought its own shares from investors and paid cash. The recording of the transaction involves a reduction in Cash (Assets) and Shareholders' Equity with the creation of Treasury Stock Account. The treasury stock account is a contra account to the Common Stock account and the balance is deducted from the Shareholders' Equity in the balance sheet.
b. By declaring cash dividends, Malibu Beachwear is returning to its stockholders part of the assets that belong to them. This transaction reduces the Shareholders' Equity (Retained Earnings) and increases the liabilities with Dividends Payable in the sum of $260,050 respectively.
c. The payment of the cash dividend by Malibu reduces the Assets (Cash) and the Liabilities (Dividends Payable) in the sum of $260,050.
d. The issue of 101,000 new shares of $0.10 par value for $2 per share by Malibu Beachwear increases its Assets (Cash) with the sum of $202,000 (101,000 x $2) and the Shareholders' Equity (Common Stock with $10,100 and Additional Paid-in Capital- Common Stock with $191,900).
e. Closing the dividends account does not affect the accounting equation. Instead, it affects the Income Summary (Statement of Retained Earnings) to which the account is closed.
f. The accounting equation of Assets = Liabilities + Equity is an important feature of the double-entry system of bookkeeping and financial accounting. The equation implies that every transaction affects the two sides of the equation since two or more accounts are involved. Where it does not affect the two sides, it implies that one side is affected twice or more. This equation keeps the assets and liabilities + equity sides in balance at all times. It also implies that Malibu Beachwear for every transaction, will have the assets equal the liabilities or equity.
A company sold equipment that originally cost $290,000 for $145,000 cash. The accumulated depreciation on the equipment was $145,000. The company should recognize a:
Answer:
$0 gain/loss
Explanation:
A company sold an equipment that originally cost $290,000 for $145,000
The accumulated depreciation on the equipment was $145,000
The first step is to calculate the book value of the equipment
Book value of the equipment= Cost of equipment-accumulated depreciation
= $290,000-$145,000
= $145,000
Therefore, the gain/loss on the equipment can be calculated as follows
= Selling price-book value
= $145,000-$145,000
= 0
Hence there is no recognized gain or loss on the equipment
Answer:
Company would recognize a no loss or gain on the disposal i.e Nil
Explanation:
The gain or loss on disposal is the difference between the carrying value of an assets at the point of disposal and the the disposal value.
Gains/(Loss)= Disposal value - carrying value
The carrying value is the difference between the historical cost and the accumulated depreciation till date.
Carrying value = Historical cost - Accumulated depreciation till date
Carrying value = 290,000 - 145,000 = 145 ,000
Gains/Loss= 145,000 - 145,000 = 0.
Company would recognize a no loss or gain on the disposal i.e Nil
A NASDAQ security is bid at $30.25 and offered at $30.75. An over-the-counter trader effects a trade at $30.75 and charges a commission of $.50 to the customer. The price that will show on the tape is:
Answer:
$30.75
Explanation:
Given that
Security bidding = $30.25
Offered price = $30.75
over the counter trading = $30.75
Commission charged = $0.50
based on the above information, the price that shows on the tape is equivalent to the over the counter trading price i.e $30.75 also it does not include the commission charged i.e $0.50
Hence, the price is $30.75