Answer:
D)the chance to be their own boss
Explanation:
Proprietorship may be defined as the state of a business that is owned by oneself. When one is the rightful owner or holds the business independently, it is known as the proprietorship.
The sole proprietorship is also called as the individual entrepreneurship or the sole tradership. It is when a business or a firm is owned by one person. In such cases there many not be any legal difference between owner and the business entity.
Thus one of the major attraction of the sole proprietorship is the chance to be their own boss for many businessmen.
Dobbs Company issues 6%, two-year bonds, on December 31, 2018, with a par value of $106,000 and semi-annual interest payments.
Semi-annual Period-End Unamortized Discount Carrying Value
(0) 12/31/2018 $6,120 $99,880
(1) 6/38/2019 4,598 101,410
(2) 12/31/2019 3,868 102,940
(3) 6/38/2020 1,538 104,470
(4) 12/31/2020 0 106,000
Required:
Use the above straight-line bond amortization table and prepare journal entries for the following:
a. The issuance of bonds on December 31, 2018.
b. The first through fourth interest payments on each June 30 and December 31.
c. The maturity of the bonds on December 31, 2020.
Answer: See explanation
Explanation:
a. The issuance of bonds on December 31, 2018.
Dec 31, 2018.
Debit Cash $99880
Debit Discount on bonds payable $6120
Credit Bonds payable $106000
(to record bond issue)
b. The first through fourth interest payments on each June 30 and December 31.
June 30
Debit Interest expense = $4718
Credit Discount on bonds payable = $1538
Credit Cash (106000×6%×6/12) = $3180
(To record interest)
Dec, 31.
Debit Interest expense = $4718
Credit Discount on bonds payable = $1538
Credit Cash (106000×6%×6/12) = $3180
(To record interest)
June 30
Debit Interest expense = $4718
Credit Discount on bonds payable = $1538
Credit Cash (106000×6%×6/12) = $3180
(To record interest)
Dec, 31
Debit Interest expense = $4718
Credit Discount on bonds payable = $1538
Credit Cash (106000×6%×6/12) = $3180
(To record interest)
c. The maturity of the bonds on December 31, 2020.
Dec 31,2020
Debit Bonds payable = $106000
Credit Cash = $106000
(To record retirement)
Value is defined as ______. Group of answer choices the reciprocal of the function to its cost the ratio of the function to its cost the difference between the function and its cost the product of the function to its cost
Answer:
The reciprocal of the function to its cost
Explanation:
Value is defined as "the reciprocal of the function to its cost."
The above statement implies that the value of a product is based on the relationship between its functionalities and the cost at which it is purchased. That is, to determine the value of a product, its functionalities must commensurate, meets, or correspond in proportion to the cost of getting the product.
Answer:
the reciprocal of the function to its cost.
Explanation:
Value is defined as the reciprocal of the function to its cost.
Manson Industries incurs unit costs of $8 ($5 variable and $3 fixed) in making an assembly part for its finished product. A supplier offers to make 11,500 of the assembly part at $6 per unit. If the offer is accepted, Manson will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Manson will realize by buying the part.
Answer:
Total Annual Cost
Buy $92,000
Make $103,500
Net income -$11,500
The decision should be to MAKE the part
Explanation:
Preparation of an analysis showing the total cost saving
MANSON INDUSTRIES
Make Buy Net Income Inc. ( dec.)
Variable Mfg. Costs $57,500 $0 -$57,500
($5*11,500)
Fixed Mfg. costs $34,500 $34,500 0
($3*11,500)
Purchase price $0 $69,000 -$69,000
($6*11,500)
Total Annual Cost $92,000 $103,500 -$11,500
Therefore based on the above analysis The decision should be to MAKE THE PART because it is cheaper or lesser than Buy decision.
Identify whether each of the following would be reported as an operating, investing, or financing activity on the statement of cash flows: a. Repurchase of common stock b. Cash received from customers c. Payment of accounts payable d. Retirement of bonds payable e. Purchase of equipment f. Purchase of inventory for cash
Answer:
Identification of Transactions as Operating, Investing, or Financing Activity
Transaction Activity
a. Repurchase of common stock Financing (Outflow)
b. Cash received from customers Operating (Inflow)
c. Payment of accounts payable Operating (Outflow)
d. Retirement of bonds payable Financing (Outflow)
e. Purchase of equipment Investing (Outflow)
f. Purchase of inventory for cash Operating (Outflow)
Explanation:
Operating activities show the cash activities that produce revenue and net income for the entity.
Investing activities are cash activities involved in the purchase and sale of noncurrent assets and other non-cash equivalent investments.
Financing activities are cash activities related to noncurrent liabilities and owners' equity.
a. Due to high demand and high prices, profits in the carpet-painting industry are at all-time highs. Since the carpet-painting industry is perfectly competitive, this will cause firms to (Click to select) in the long run. b. You observe high profits in the perfectly competitive pencil eraser industry. In the long run, you expect those profits to (Click to select) .
Answer:
enter into the industry
fall
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $673,252 and Allowance for Doubtful Accounts has a balance of $25,716. What is the net realizable value of the accounts receivable?
Answer:
Net realizable value = $647536
Explanation:
Below is the calculation for net realizable value:
Given the accounts receivable = $673252
Allowance for doubtful accounts = $25716
Net realizable value = Accounts receivable - allowance for doubtful account
Net realizable value = 673252 - 25716
Net realizable value = $647536
Therefore the net realizable value is $647536.
The two general approaches to forecasting discussed in the notes are:________
A. judgmental and qualitative
B. historical and associative
C. qualitative and quantitative
D. judgmental and associative
E. mathematical and statistical
Answer:
C. qualitative and quantitative
Explanation:
Qualitative forecasting should be used when the data is insufficient or less. Here the managers applied the subjective that depend upon the opinion and the consumer judgement to forecast the future. The methods like sales force, excuetive opinion represent the qualitative one
On the other hand the quantitative one should be used when the mathematical model to the past and the present are available. Like time series analysis, regression models, etc
hence, the option c is correct
Suppose the owners of the bank contribute an additional $175 from their own funds and use it to buy securities in the name of the bank. This would increase the securities account a
Answer: increase; capital account
Explanation:
This would increase the securities account and increase the capital account.
When owners of a company put in their own money, it increase the capital of the company and this is reflected in the capital account. This is why the sale of shares to equity holders increases the capital account.
The owners of the bank in this instance, put forward additional cash. from their own funds This will therefore increase the capital of the bank and be reflected as an increase in the capital account.
This would increase the securities account and increase the capital account.
What is capital?Capital can be defined as the amount used in commencing a business. Firms, businesses require opening capital to begin or start off their operations.
At any point owners of a company put in their own money, it will increase the capital of the company hence reflect in the capital account. This is why the sale securities to holders increases the capital account.
Hence, additional input would increase the securities account and increase the capital account.
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The Andrews Company has just purchased $43,088,000 of plant and equipment that has an estimated useful life of 15 years. The expected salvage value at the end of 15 years is $4,308,800. What will the book value of this purchase (exclude all other plant and equipment) be after its third year of use?
Answer: $35,332,160
Explanation:
The boik value of the purchase will be calculated thus:
Cost of plant = $43,088,000
Useful life = 15
Savage value = $4,308,800
Depreciation per year = ($43,088,000 - $4,308,800) / 15
= $38779200/15
= $2,585,280
Accumulated depreciation after third year will be:
= $2,585,280 × 3
= $7755840
Book value = $43,088,000 - $7,755,840
= $35,332,160
Kohl Co. provides warranties for many of its products. The January 1, 2019, balance of the Estimated Warranty Liability account was $55,726. Based on an analysis of warranty claims during the past several years, this year's warranty provision was established at 0.84% of sales. During 2019, the actual cost of servicing products under warranty was $16,290, and sales were $5,870,500.
Required:
a. What amount of Warranty Expense will appear on Kohl Co.'s income statement for the year ended December 31, 2019? Warranty Expense Actual warranty expense Estimated warranty expense Warranty Expense
b. What amount will be reported in the Estimated Warranty Liability account on the December 31, 2019, balance sheet?
(Amounts to be deducted should be indicated by minus sign.) Estimated Warranty Liability, 1/1/19 balance Estimated Warranty Liability 12/31/19 balance
Answer:
a. Warranty Expense = Sales * Estimated Warranty Percentage
Warranty Expense = $5,870,500 * 0.84%
Warranty Expense = $49,312.20
b. Beg. Bal. of Estimated Warranty Liability Jan. 1, 2019 $55,726
Less: Actual warranty costs in 2019 ($16,290)
Add: Warranty expense accrued in 2019 $49,312.20
Ending Balance of Estimated Warranty Liability Dec. 31, 2019 $88,748.20
A company has $104,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 5% of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is a(n) $940 credit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for:
Answer:
$4,260
Explanation:
The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense is given below:
Estimated Uncollectible Accounts is
= $104,000 × 5%
= $5,200
Now
Bad debt expense is
= Estimated Uncollectible accounts - credit balance in Allowance account
= $5,200 - $940
= $4,260
For an Arkansas-based corporation that will earn $40,000 in 2018: a. What is the: (i) Federal marginal tax rate; (ii) Arkansas state marginal tax rate
Answer and Explanation:
The computation of the Federal marginal tax rate and the Arkansas state marginal tax rate is shown below:
For the year 2018
a. The marginal tax rate is 21%
b. And, the state marginal tax rate is 6%
So, the total marginal tax rate is 27%
Hence, the same should be relevant and considered
Assume that Simko, Inc. has three activity pools which have the following costs: Machine Setups, $40,000; Material Moves, $35,000; and Machine Operations, $18,000. The activity cost drivers (and driver quantity) for the three pools are, respectively, number of setups (200), number of material moves (350), and number of machine hours (360). Product ZA7 used the following quantity of activity drivers to produce 100 units of final product: 20 setups, 30 material moves, and 65 machine hours. The total ABC cost and unit ABC cost assigned to Product ZA7 is:______.
A. $93,000 total ABC cost & $93 unit ABC cost
B. $10,250 total ABC cost & $102.50 unit ABC cost
C. $93,000 total ABC cost & $930 unit ABC cost
D. $3,500 total ABC cost & $350 unit ABC cost
Answer:
B. $10,250 total ABC cost & $102.50 unit ABC cost
Explanation:
The computation is shown below;
Total Overhead cost allocated
= (40,000 ÷ 200) × 20 + (35,000 ÷ 350) × 30 + (18,000 ÷ 360) × 65
= 10,250
now
Cost per unit is
= 10,250 ÷ 100
= $102.50
Hence, the option b is correct
Berol Company plans to sell 200,000 units of finished product in July and anticipates a growth rate in sales of 5% per month. The desired monthly ending inventory in units of finished product is 80% of the next month's estimated sales. There are 150,000 finished units in inventory on June 30. Berol Company's production requirement in units of finished product for the three-month period ending September 30 is: __________
a. 712,025 units
b. 630,500 units
c. 664,000 units
d. 665,720 units
The production requirement in units of finished product for the three-month period ending September 30 is 630,500 units.
Hence, the correct option is (b).
To calculate Berol Company's production requirement for the three-month period ending September 30, we need to determine the estimated sales for each month and the desired ending inventory for the following month.
Given information:
July sales: 200,000 units
Monthly sales growth rate: 5%
Desired ending inventory as a percentage of next month's estimated sales: 80%
Finished units in inventory on June 30: 150,000 units
First, let's calculate the estimated sales for each month:
July sales: 200,000 units
August sales = July sales + (July sales × monthly growth rate) = 200,000 + (200,000 × 0.05) = 210,000 units
September sales = August sales + (August sales × monthly growth rate) = 210,000 + (210,000 × 0.05) = 220,500 units
Next, let's calculate the desired ending inventory for each month:
August desired ending inventory = August sales × desired ending inventory percentage = 210,000 × 0.8 = 168,000 units
September desired ending inventory = September sales × desired ending inventory percentage = 220,500 × 0.8 = 176,400 units
Now, let's calculate the production requirement for the three-month period:
Production requirement = Total sales - Beginning inventory + Ending inventory
= (July sales + August sales + September sales) - Beginning inventory + (August desired ending inventory + September desired ending inventory)
= (200,000 + 210,000 + 220,500) - 150,000 + (168,000 + 176,400)
= 630,500 units
Therefore, the production requirement in units of finished product for the three-month period ending September 30 is b. 630,500 units.
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Required information Skip to question [The following information applies to the questions displayed below.] Eva received $60,000 in compensation payments from JAZZ Corp. during 2020. Eva incurred $5,000 in business expenses relating to her work for JAZZ Corp. JAZZ did not reimburse Eva for any of these expenses. Eva is single and she deducts a standard deduction of $12,400. Based on these facts, answer the following questions: Use Tax Rate Schedule for reference. (Leave no answer blank. Enter zero if applicable.) a. Assume that Eva is considered to be an employee. What amount of FICA taxes is she required to pay for the year
Answer:
$4,590
Explanation:
Calculation to determine What amount of FICA taxes is she required to pay for the year
Using this formula
FICA taxes =FICA taxes rates *Compensation payments received
Let plug in the formula
FICA taxes = $60,000 × 7.65%
FICA taxes = $4,590
Therefore amount of FICA taxes she is required to pay for the year will be $4,590 reason been that her salary is lower than the Social Security wage base limit for the year 2018 of the amount of $128,400 which is the why she pays FICA taxes rate of 7.65% on the entire amount of $60,000.
Mary-Jo owns a theater. She purchased a new computer to run the accounting software and lighting for the theater. The computer cost $2,000 and was purchased on May 4, 2020. It was the only equipment purchased by the theater for 2020. Using the MACRS system, how much is her depreciation deduction for 2020
Answer:
The depreciation for 2020 is $233.33
Explanation:
Under the MACRS, computer useful life is 5 years.
The depreciation rate for every year, applying double declining method is: 100% / 5 = 20%. So, depreciation expenses for first year of the computer is calculated as: Cost of the computer x 20% = = 2,000 x 20% = $400.
As the computer is purchased in May, the year 2020 would only account for 7 month out of the first year of depreciation. Thus 2020 depreciation expenses = First year depreciation x 7/12 = 400 x 7/12 = $233.33
Why are vice presidents and other executive managers who are privy to financial performance data considered insiders to a publicly traded company as defined by the Securities and Exchange Commission
Answer: See explanation
Explanation:
Public companies are the companies which have their stocks traded on the public exchange market. Its ownership is organized through shares of stock.
Based on the information given, then the vice president and other executive managers will be considered insiders due to the fact they have information which are gotten internally.
g Mark quit his job as a salesman where he made $43,000 per year to start his own t-shirt making business. His business expenses are $6,000 per year on rent, $12,000 per year on supplies, and $4,000 per year on part- time help. As for his personal expenses, his apartment costs him $4,800 per year and his personal bills are an extra $1,200 per year. What is Mark's opportunity cost of running the business
Answer:
$43,000
Explanation:
Implicit cost or opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
by starting his business, he forgoes the opportunity to earn 43k
1. Discuss the consumer decision making process for a product such as canned/packaged tuna and the response hierarchy model this is most likely to be applicable in the purchase of this product.
Answer
Because of the shift away from media promoting, the dynamic interaction has changed incredibly. When media promoting was weighty with COSI and StarKist, customers had gotten used to seeing the advertisements and their separate symbols. Buyers were extremely faithful to a particular brand and the reliability outgrew the recognizable symbols "Charlie the Fish" and the mermaid for COSI. Since the center has moved to principally print advertisements, advancements coming up, and coupons, there is something else entirely to keep the customer dynamic cycle occupied. An item, for example, canned fish isn't a need, and in this way can without much of a stretch be supplanted by substitutes. There is more seriousness since a buyer could simply pick a brand since it is the least expensive at a specific store or in light of the fact that they discovered a coupon in a notice. Brand devotion is done being squeezed into shoppers' psyches through business spots with an agreeable mermaid. Presently, organizations are battling to offer more advancements or more limits to build deals, yet the outcome is that for certain buyers each excursion to the store could end with an alternate brand on fish being bought. Purchasers are presently being reached at home through paper advertisements, intelligent item sites, and different advancements. Clients might have settled on their choice before going on an outing to the store. Clients would have followed the Progressive system of Impacts Model before the promoting endeavors moved from media publicizing. Shoppers knew about the brands since they were faithful and fabricated inclinations after some time that prompted buying one brand over the other. Presently, the last buy isn't driven by dedication, however rather each buy has the customer taking a gander at a few components. The activities of retail deals, print advertisements, or different advancements influence their purchasing conduct.
Milton Corporation gives the preferred stockholders an annual dividend of $5 per share. Each share of stock sells for $100 and selling costs of $3. What is the company's cost of preferred stock
Answer:
Milton Corporation
The company's cost of preferred stock is:
= 5.2%.
Explanation:
a) Data and Calculations:
Annual dividend per share = $5
Selling price of preferred stock = $100
Flotation cost per share = $3
The Company's cost of preferred stock, using the flotation cost is = Dividend per share/(Selling price - Flotation cost per share)
= $5/($100 - $3)
= $5/$97
= 0.052
= 5.2%
If the flotation cost was not incurred in the current period, the cost of preferred stock will be = $5/$100 = 0.05 = 5%
Suppose you are stranded on an island. Luckily, this island is rich in clams and mangos. If you devote all of your time to harvesting clams, you can get 100 clams in a week. If you us all of your time to collect mangos, you can find 200 mangos in a week.
Assume it is possible to collect fractional amounts of both goods and draw a sketch of your production possibility frontier for a week. (Place mangos on the x-axis and clams on the y-axis.)
Calculate the opportunity cost of each good. (Use a straight-line PPF for this question because the opportunity cost is constant - it doesn't change)
Answer:
a. See the attached photo for the sketched PPF.
b. We have:
Opportunity cost of a clam = 2 mangos
Opportunity cost of a mango = 0.5 clam
Explanation:
a. Assume it is possible to collect fractional amounts of both goods and draw a sketch of your production possibility frontier for a week. (Place mangos on the x-axis and clams on the y-axis.)
Note: See the attached photo for the sketched PPF.
In the attached PPF, Point A indicates when you use all of your time to collect mangos and find 200 mangos in a week; while Point B shows when you devote all of your time to harvesting clams and can get 100 clams in a week. Since it assumed that it is possible to collect fractional amounts of both goods, Point C indicates when you use half of your time to find 100 mangos and harvest 50 clams in a week.
b. Calculate the opportunity cost of each good.
If you devote all of your time to harvesting clams or to collect mangos, we have:
100 clams = 200 mangos ................. (1)
Dividing both sided of equation (1) by 100, we have:
Opportunity cost of a clam = 2 mangos
Dividing both sided of equation (1) by 200, we have:
Opportunity cost of a mango = 1/2 clam, or 0.5 clam
Networks are proven to be relevant in the context of innovation and entrepreneurship. Explain
the main features of an entrepreneurial network including the role of personal contact networks
and how they are developed over time by explaining at least three approaches that can be used to
manage network relationships. Support your answer with examples
Answer:
Accommodation
Engagement Refinement
Explanation:
In the entrepreneurial ecosystem, networks still remain a popular and important aspect which is often thought and seen as a stepping stone to achieving entrepreneurial greatness. This network simply entails the creation of a circle or set of skilled individuals usually in different strategic areas of specialization relevant to a certain business line or sector. This way embarking on projects tends to be much easier as these networks of people can offer help, tips or together engage in to proffer solution on time. Networks are created usually through meetups and good interpersonal relationships. Having professionals around can speed up processes and. However, networks has to be properly managed usy be being accommodating and warm when approcached; frequent engagement topics and trending issues, including the desire to learn more and measure up to new trends.
The net present value of an investment to purchase a solar PV system that costs $10,000 and saves $2,000 per year for 20 years, and will increase the cost of reroofing by $5,000 in year ten, if your next best investment is 3% per year is about:
Answer:
The net present value of an investment to purchase a solar PV system that costs $10,000 and saves $2,000 per year for 20 years, and will increase the cost of reroofing by $5,000 in year ten, if your next best investment is 3% per year is about:
= $16,040.
Explanation:
a) Data and Calculations:
Investment cost for the purchase of a solar PV system = $10,000
Cost of reroofing in year ten = $5,000
Annual savings = $2,000
Period of investment = 20 years
Discount rate = 3%
Present value of Costs:
Investment at year 1 = $10,000
Re-Roofing cost in year ten = 3,720 ($5,000 * 0.744)
Total PV of costs = $13,720
Present value annuity factor at 3% for 20 years = 14.88
Present value of savings = $29,760 ($2,000 * 14.88)
Net present of the investment = $16,040 ($29,760 - $13,720)
6. Describe the role of human resource management in managing a workplace
Answer:
This is my answer
Explanation:
Hope it helps
A college charges a basic fee of $100 per semester plus an additional fee of $50 per credit hour. You take 10 credit hours this semester. The marginal cost to you of the 10th credit hour this semester is:
Answer:
The marginal cost of the 10th credit hour this semester is:
= $50
Explanation:
a) Data and Calculations:
Basic fee (Fixed cost) per semester = $100
Additional fee per credit hour = $50
Taking 10 credit hours will cost = $600 {$100 + ($50 * 10)}
b) Marginal cost is the differential change in the total cost that is incurred when the credit hours are increased by one credit hour by the student for this semester. It is also equal to the $50 that the college charges per credit hour.
If a security of $10,000 will be worth $15,036.30 seven years in the future, assuming that no additional deposits or withdrawals are made, what is the implied interest rate the investor will earn on the security
Answer:
6%
Explanation:
Implied interest rate = (Future value / present value)^(1/n) - 1
n = number of years
($15,036.30 / $10,000) ^(1/7) - 1
1.503630^(1/7) - 1
= 1.06 - 1 = 0.06 = 6%
Does an organization/job exist if there are no people present?
Answer:
yes an organization/ job will always exist even if no one wanted the job or no one presented because its part of a buissness requirement
hope this helps!
Last year Carson Industries issued a 10-year, 15% semiannual coupon bond at its par value of $1,000. Currently, the bond can be called in 6 years at a price of $1,075 and it sells for $1,280. What is the bond's nominal yield to maturity
Answer:
10.425%
Explanation:
Given :
Present value of bond, PV = 1280
Par value of bond = $1000
Annual coupon rate = 15%
Coupon payment frequency = twice a year (semiannual)
Years to maturity = 10 years
Using the information above by inputting into a financial calculator, the bond's nominal yield to maturity output is : 10.425%
Yield to maturity (YTM) : 10.425%
It could also be used with the PMT value :
PMT = par value * coupon rate /2
PMT = (1000 * (0.15/2)) = $75
PERIOD, n = 10 years ; semiannual = twice a year ;
n = 10 * 2 = 20
Also using this values with the financial calculator, gives 10.425%
Hypercompetitive environments are most common among global competitors, and Lululemon would fall into this category. Which of the following is a characteristic of hypercompetition that is an essential part of Lululemon's strategic management process?
a. High barriers to entry
b. A low-cost environment
c. A monopoly on resources
d. Successful innovation
Answer:
d. Successful innovation
Explanation:
The company should focused on the innovation of the product and the technology in order to develop the innovative yoga pants along with the fabrics. So for successful innovation it represent the key to received the competitor head for the hypercompetitive environment
So as per the given situation, the option d is correct
And, the same should be considered
Suppose the Baldwin company shifts focus to only competing in the Thrift and Nano segments, while competing on price by reducing costs and passing the savings to the customers, what strategy would they be implementing
Answer: Niche Cost Leader
Explanation:
Niche Cost Leader refers to when the seller wants to dominate the market by setting the price below the price of the competitors and still make profits.
Since the company competes on the price by reducing costs and passing the savings to the customers, then the strategy that they will be implementing will be niche cost leader.
