Answer:
finding a market for your product then finding a marketing strategy then get your assets set up
Explanation:
Which of the following would cause a person starting a small business to choose a sole proprietorship over a partnership?
a. The person has minimal experience managing a small business.
b. The person is willing to share responsibilities for running the business.
c. The person wants to retain complete control over the entire business.
d. The person lacks sufficient funding for business operations.
Answer:
c
Explanation:
A sole proprietorship is a type of business that is owned by one person
Characteristics
1. it is owned by one person
2. the business has unlimited liability
3. the business has limited access to capital
4. the business usually lacks continuity. this type of business usually ceases to exist when the owner dies
5. the business is usually not separated from the owner
a. What is the total cost for a basket of goods that includes 210 gallons of gas, 55 pizzas, 40 6-packs, and 2 textbooks
Answer:
Total Cost Base year = $815Last year Total cost = $1,464.35Explanation:
In the base year, the total cost was:
= (210 * 1.30) + (55 * 3.60) + (40 * 3.90) + (2 * 94)
= 273 + 198 + 156 + 188
= $815
Last year, the total cost was:
= (210 * 1.60) + (55 * 7.65) + (40 * 6.64) + (2 * 221)
= 336 + 420.75 + 265.60 + 442
= $1,464.35
Notice that the total cost increased last year from the base year. This is the effect of inflation. Things get more expensive overtime.
155) Bristo Corporation has sales of 1,600 units at $50 per unit. Variable expenses are 25% of the selling price. If total fixed expenses are $50,000, the degree of operating leverage is: A) 2.00 B) 8.00 C) 2.17 D) 6.00
Answer:
D) 6.00
Explanation:
Particulars Amount
Sales(1600*50) $80,000
Variable expenses(80,000*25%) $20,000
Contribution margin $60,000
Fixed expenses $50,000
Net operating income $10,000
Degree of operating leverage = Contribution margin / Net operating income
Degree of operating leverage = $60,000/$10,000
Degree of operating leverage = 6
A local bank sponsors a charity run that raises funds for a non-profit building wells and schools in Mali, Africa. How would the use of the bank’s funds for this fundraiser be justified when its goal is to maximize profit?
Answer:
The use of the bank's funds for this fundraiser would be justified when the bank's goal is to maximize profit by:
giving the bank public relations boost, thereby improving its public image.
Explanation:
The creation of publicity opportunities through this fundraiser enhances the bank's activities. Awareness of its services is created through the sponsorship. People perceive the bank as a charity-supporting organization, which cares for the welfare of the less-privileged. The fundraiser creates huge goodwill. Public relation is, therefore, critical in helping the bank to engage its diverse publics across various platforms, including the accruing intangible benefits that derivable from the seemingly unprofitable effort.
A manager of a company is facing an ethical problem. He uses the formal process for ethical decision making to resolve the problem. Which of the following steps will they begin with
Answer: Understanding all the moral standards and recognizing all moral impacts.
Explanation:
Ethics is the standards and the moral principles which guide the behavior of an individual or group of people. Ethical decision making reefers to the assessment of the moral implications of a course of action.
Since the manager uses the the formal process for ethical decision making to resolve the problem, the first step to begin with is to understand the moral standards and recognizing all moral impacts. The manager needs to be aware of the moral standards and be sure if he or she is following the normal process and doing the right thing.
_______ involves giving employees more opportunity to experience achievement, responsibility and advancement.
Answer: empowerment
Explanation:
The process of giving employees more opportunity to experience achievement, responsibility and advancement us referred to as empowerment.
Empowerment is the practice of sharing information, power and rewards with the employees and this is vital as it puts the employees at the heart of the organization.
Lake Power Sports sells jet skis and other powered recreational equipment. Customers pay one-third of the sales price of a jet ski when they initially purchase the ski, and then pay another one-third each year for the next two years. Because Lake has little information about the ability to collect these receivables, it uses the cost recovery method to recognize revenue on these installment sales. In 2020, Lake began operations and sold jet skis with a total price of $900,000 that cost Lake $450,000. Lake collected $300,000 in 2020, $300,000 in 2021, and $300,000 in 2022 associated with those sales. In 2021, Lake sold jet skis with a total price of $1,290,000 that cost Lake $774,000. Lake collected $430,000 in 2021, $240,000 in 2022, and $240,000 in 2023 associated with those sales. In 2023, Lake also repossessed $380,000 of jet skis that were sold in 2021. Those jet skis had a fair value of $142,500 at the time they were repossessed.In its December 31, 2021, balance sheet, Lake would report:
Answer:
$650,000
Explanation:
Calculation to determine what Lake would report in its December 31, 2021, balance sheet
First step is to calculate Net installment Receiveble for 2020 sales
2020 sales Installment Receiveble 300,000
($900,000-$300,000 2018 Collection -$300,000 2021 Collection)
Less Deferred gross profit $150,000
(450,000-$150,000 2020 collection-$150,000 2021 collection )
Net installment Receiveble for 2020 sales $150,000
Second step is to determine Net installment Receiveble for 2021 sales
2021 sales Installment Receiveble $860,000
($1,290,000-$430,000
Less Deferred gross profit $360,000
($600,000-$240,000)
Net installment Receiveble for 2021 sales $500,000
Now let determine what Lake would report in its December 31, 2021, balance sheet
December 31, 2021, balance sheet=$150,000+$500,000
December 31, 2021, balance sheet=$650,000
Therefore In its December 31, 2021, balance sheet, Lake would report: $650,000
would u act diffetently
Last month when Holiday Creations, Inc., sold 44,000 units, total sales were $308,000, total variable expenses were $215,600, and fixed expenses were $35,700. Required: 1. What is the company’s contribution margin (CM) ratio? 2. What is the estimated change in the company’s net operating income if it can increase total sales by $1,800?
Answer: 1) CM / Sales = CM Ratio
CM = 306,000 - 238,680 = 67,320
CM Ratio = 67,320 / 306,000 = 0.22
2) CM Ratio x 2,500 = 550
Explanation:
Oligopolies would like to act like a Group of answer choices duopoly, but self-interest often drives them closer to the competitive outcome. competitive firm, but self-interest often drives them closer to the duopoly outcome. monopoly, but self-interest often drives them closer to the duopoly outcome. monopoly, but self-interest often drives them closer to the competitive outcome.
Answer:
monopoly, but self-interest often drives them closer to the competitive outcome.
Explanation:
An oligopoly exists when a small number of firms control the resources and price in a market.
They tend to stop each other from having significant influence in the market.
Because of this self interest their monopolistic attribute tends to become more towatds a competitive outcome.
So no one firm has the monopoly of the market rather influence is shared
Oriole has the following inventory data: July 1 Beginning inventory 34 units at $6.70 5 Purchases 134 units at $7.40 14 Sale 90 units 21 Purchases 67 units at $8.10 30 Sale 63 units Assuming that a perpetual inventory system is used, what is the value of ending inventory on a LIFO basis for July
Answer:
The correct answer is "$585.80".
Explanation:
According to the question,
Sold 63 units on July 30 from purchase of July 21, the remaining will be:
= [tex](67-63)\times 8.1[/tex]
= [tex]4\times 8.1[/tex]
= [tex]32.4[/tex]
Sold 90 units on July 14 from purchase of 5, the remaining will be:
= [tex](134-90)\times 7.4[/tex]
= [tex]44\times 7.4[/tex]
= [tex]325.6[/tex]
On July 1, opening stock will be:
= [tex]34\times 6.7[/tex]
= [tex]227.8[/tex]
hence,
The total value of inventory as per LIFO method will be:
= [tex]32.4+325.6+227.8[/tex]
= [tex]585.80[/tex] ($)
10. Which of the following best describes a trial balance?
Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement:
Sales $1,674,000
Variable expenses 588,000
Contribution margin 1,086,000
Fixed expenses 1,195,000
Net operating income (loss) $(109,000)
In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information:
Division
East Central West
Sales $384,000 $690,000 $600,000
Variable expenses as a percentage of sales 45% 28% 37%
Traceable fixed expenses $270,000 $326,000 $204,000
Required:
a. Prepare a contribution format income statement segmented by divisions, as desired by the president.
b. As a result of a marketing study, the president believes that sales in the West Division could be increased by 20% if monthly advertising in that division were increased by $15,000. Would you recommend the increased advertising?Required:
Answer:
Wingate Company
a. Contribution format income statement segmented by divisions:
Division East Central West Total
Sales $384,000 $690,000 $600,000 $1,674,000
Variable expenses $172,800 $193,200 $222,000 588,000
Contribution margin $211,200 $496,800 $378,000 $1,086,000
Traceable fixed expenses 270,000 326,000 204,000 800,000
Non-traceable fixed expenses 395,000
Net operating income (loss) ($58,800) $170,800 $174,000 ($109,000)
b. Yes. I would recommend the increased advertising. The net operating loss reduces from $109,000 to $48,400.
Explanation:
a) Data and Calculations:
Wingate
Most recent monthly contribution format income statement:
Sales $1,674,000
Variable expenses 588,000
Contribution margin 1,086,000
Fixed expenses 1,195,000
Net operating income (loss) $(109,000)
Division East Central West
Sales $384,000 $690,000 $600,000
Variable expenses as a percentage of sales 45% 28% 37%
Traceable fixed expenses $270,000 $326,000 $204,000
b) Increase of sales by 20% and advertising by $15,000:
Division East Central West Total
Sales $384,000 $690,000 $720,000 $1,794,000
Variable expenses $172,800 $193,200 $266,400 632,400
Contribution margin $211,200 $496,800 $453,600 $1,161,600
Traceable fixed expenses 270,000 326,000 219,000 815,000
Non-traceable fixed expenses 395,000
Net operating income (loss) ($58,800) $170,800 $234,600 ($48,400)
For each of the following corporate formations, (1) write the amount of gain or loss that will be recognized by the shareholders as a whole, and (2) write the corporation's basis in the property after the transfer.
a. John and Kelly started Back Stop, Inc., in 2021. Kelly transferred a building with a basis of $120,000 and a FMV of $150,000 for 60% of the stock.
b. John agreed to operate the company on a day-to-day basis in exchange for his stock. Ignore any compensation income recognized by John.
Answer:
Back Stop, Inc.
1. The amount of gain or loss that will be recognized by the company:
a. $30,000 gain
b. $80,000 loss
2. The corporation's basis in the property after the transfer:
a. $150,000
b. ($80,000)
Explanation:
1) Data and Calculations:
a. Building $150,000 Capital, Kelly $120,000 Unrealized gain $30,000
b. Unrealized loss $80,000 Capital, Kelly $80,000
2) The building contributed by Kelly is worth $150,000 for the corporation. However, the contribution by John is worth nothing in real terms. Instead, an unrealized loss is being suffered by the corporation.
During March, XYZ Inc. transferred $50,000 from Work in Process to Finished Goods and recorded a Cost of Goods Sold of $56,000. The journal entries to record these transactions would include a:
Answer:
Date Journal entries Debit Credit
Finished Goods $50,000
Work in Process $50,000
Cost of Goods Sold $56,000
Finished Goods $56,000
Tariffs are a tax placed on ✔ imported goods.
Tariffs are used to give domestically produced goods ✔ an advantage in the market.
As a result of tariffs, imported goods become ✔ more expensive for consumers
Answer:
Imported, an advantage, more.
Explanation:
This is done to discourage the use of foreign items and use of domestically made products. This helps the domestic companies to get their advantage in profit and sales. Thereby making the imported goods more expensive and discourages their use.Answer:
Tariffs are a tax placed on
✔ imported
goods.
Tariffs are used to give domestically produced goods
✔ an advantage
in the market.
As a result of tariffs, imported goods become
✔ more
expensive for consumers
Explanation:
factors to consider when buying a machine
Production Output.
Manpower Engagement.
Warranty Period.
Power Needs and Consumption.
Price.
The Supplier.
Doug & Jennifer are a 40-something married couple. They have built up an emergency
fund of $10,000 that they would like to invest in order to benefit from compound
interest.
How would you recommend they invest their emergency fund?
Answer:
The answer is below
Explanation:
Doug & Jennifer should invest their emergency fund of $10,000 by doing the following to benefit from compound interest:
1. Keep their money in high-yield banks: this type of investment delivers compound interest on money saved or invested in high-yield banks.
2. By investing their money in the Money Market Accounts: this also allows easy access to their money whenever they need it, while also earning money from their investment through compound interest.
The balance sheet indicates what an organization owns or controls and the various sources of the funds used to pay for these assets, such as bank debt and owners' equity.
a. True
b. False
Answer:
The correct answer is the option A: True.
Explanation:
To begin with, in the economics science field and the accounting theory the concept known as the balance sheet refers to a particular report that the managers have to do and understand in order to keep the control of everything inside the organization because it basically shows what the company posses, what it owns and to who it owns it with the characteristic of emphasizing it in a determine duration that could commonly be a year. Moreover it is separated in two main sides, the assets and financing, with this last one separeted in liabilities and owner's equity.
A company reports the following beginning inventory and purchases for the month of January. On January 26, the company sells 350 units. 150 units remain in ending inventory at January 31. Units Unit CostBeginning inventory on January 1 320 $ 3.00 Purchase on January 9 80 3.20 Purchase on January 25 100 3.34 Assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method. (Round your per unit costs to 2 decimal places.)A company reports the following beginning inventory and purchases for the month of January. On January 26, the company sells 350 units. 150 units remain in ending inventory at January 31. Units Unit CostBeginning inventory on January 1 320 $ 3.00 Purchase on January 9 80 3.20 Purchase on January 25 100 3.34 Assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the LIFO method. (Round your per unit costs to 2 decimal places.)
Answer:
The costs assigned to ending inventory based on the LIFO method under periodic inventory system are:
= $450.
Explanation:
a) Data and Calculations:
On January 26, the company sells 350 units. 150 units remain in ending inventory at January 31.
Units Unit Cost Total Cost
Beginning inventory on January 1 320 $ 3.00 $960
Purchase on January 9 80 3.20 256
Purchase on January 25 100 3.34 334
Tota units available for sale 500 $1,550
Sales on January 26 350 $1,100
Ending inventory at January 31 150 $3.00 $450
Depreciation, a type of expense, is included in the ________ category.
Answer:
General and administrative
Explanation:
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors.
Generally, financial statements are the formally written records of the business and financial activities of a business entity or organization.
There are four (4) main types of financial statements and these are;
1. Balance sheet: it contains financial information about assets, liability, and equity.
2. Cash flow statement: it contains financial information about operating, financial and investing activities.
3. Income statement: it contains financial information about the income and expenses of an organization.
4. Statement of changes in equity: it contains financial information about profits or loss, dividends, etc.
Depreciation can be defined as a process in which the monetary or financial value with respect to an asset decrease or falls over time as a result of wear and tear.
This ultimately implies that, depreciation is a process which typically involves the general fall in the value of an asset such as currency, plant equipment or machinery etc over a specific period of time.
Basically, depreciation is a type of expense and it is included in the general and administrative (G&A) category of a balance sheet.
A general and administrative (G&A) can be defined as the expenditures that are required for the smooth running or operations of a business, which are not associated with the manufacturing of goods.
Robo Inc.requires $70,000 of direct material for production and top management desires $3,000 in ending raw materials inventory. The company has $2,000 in beginning raw materials inventory. What would Robo's budgeted purchases of direct materials be
Answer:
Budgeted purchases = $71000
Explanation:
Below is the given values:
Direct material for the production = $70000
Ending raw material inventory = $3000
Beginning raw material = $2000
Budgeted purchases = Direct material for the production + Ending raw material - Beginning raw material
Budgeted purchases = 70000 + 3000 - 2000
Budgeted purchases = $71000
If the demand for donuts is elastic, then a decrease in the price of donuts will a. not change total revenue of donut sellers. b. There is not enough information to answer this question. c. decrease total revenue of donut sellers.
Answer:
increase the total revenue of donut sellers.
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
If demand is elastic and price is reduce, the percentage reduction in price would be less than the total increase in quantity demanded. As a result, there would be an increase in total revenue.
74. When a company issues shares at a
premium the amount of premium should
be received by the company:
(1 Point)
O Along with application money
Along with allotment money
Along with calls
Along with any of the above
Answer:
Along with any of the above
Explanation:
The book value per share of stock can be defined as a measure of the total amount of value associated with a net asset that an investor is entitled to when he or she buys a share of stock.
Hence, the book value per share of stock is a ratio of the equity gotten by an investor to the amount of outstanding shares.
In the financial markets, when a company issues shares at a premium the amount of premium should be received by the company;
I. Along with application money
II. Along with allotment money
III. Along with calls
QS 8-11 Natural resources and depletion LO P3 Perez Company acquires an ore mine at a cost of $1,400,000. It incurs additional costs of $400,000 to access the mine, which is estimated to hold 1,000,000 tons of ore. 180,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $200,000. Calculate the depletion expense from the information given. 1.
Answer:
$288,000
Explanation:
Cost = $1,800,000 ($1,400,000+$400,000)
Salvage value = $200,000
Amount subject to depletion = Cost - Salvage value
Amount subject to depletion = $1,800,000 - $200,000
Amount subject to depletion = $1,600,000
Total units of capacity = 1,000,000 tons
Depletion per unit = Amount subject to depletion / Total units of capacity
Depletion per unit = $1,600,000 / 1,000,000 tons
Depletion per unit = $1.6 per unit
Units extracted and sold in period = 180,000 tons
Depletion expense = Units extracted and sold in period * Depletion per unit
Depletion expense = 180,000 tons * $1.6 per unit
Depletion expense = $288,000
Hannah, age 70 and single, is claimed as a dependent by her daughter. During 2020, Hannah had interest income of $2,550 and $850 of earned income from babysitting. Hannah's taxable income is:
Answer: $550
Explanation:
Standard deduction is the greater of $1,050 or the sum of the earned income and $350.
= Earned income + 350 = $1,200
Additional deduction for single seniors in 2020 is $1,650.
Total deduction is:
= 1,200 + 1,650
= $2,850
Hannah's taxable income is:
= 2,550 + 850 - 2,850
= $550
In the United States, if the price of imported oil rises so that the prices of gasoline and heating oil rise, then the a. consumer price index rises much more than does the GDP deflator. b. consumer price index rises slightly more than does the GDP deflator. c. GDP deflator rises much more than does the consumer price index. d. GDP deflator and the consumer price index rise by about the same amount.
Answer: a. consumer price index rises much more than does the GDP deflator.
Explanation:
The Consumer Price Index is a measure of inflation. It shows the change in the prices of a basket of goods over a period of time. If the prices of gasoline and heating oil rise, this basket will be affected and so Consumer Price Index (CPI) will increase.
GDP deflator on the other hand, adjusts the nominal GDP to a Real GDP measure. Not everything will increase in price in the country as a result of oil going up so GDP will not change by much which would limit the increase in the GDP deflator.
The CPI will therefore rise more than the GDP deflator.
An investment that costs $105,000 today is expected to produce the following cash inflows over each of the next five years: $20,000; $25,000; $23,000; $22,000; $21,000. What is the IRR (compounded annually) for this investment
Answer: 1.89%
Explanation:
You can use Excel to find the IRR here:
Investment amount should be first as shown and should be in negative.
The cash flows will then follow each other by year.
Use the =IRR formula to select all the cells and the IRR will show.'
IRR here = 1.89%
Assume that it is January 1, 2019, and that the Mendoza Company is considering the replacement of a machine that has been used for the past 3 years in a special project for the company. This project is expected to continue for an additional 5 years (i.e., until the end of 2023). Mendoza will either keep the existing machine for another 5 years (8 years total) or replace the existing machine now with a new model that has a 5-year estimated life. Pertinent facts regarding this decision are as follows:
Keep Existing Machine Purchase New Machine
Purchase price of machine (including transportation, setup charges, etc.) $ 150,000 $ 190,000
Useful life (determined at time of acquisition) 8 years 5 years
Estimated salvage value, end of 2023* $ 20,000 $ 25,000
Expected cash operating costs, per year:
Variable (per unit produced/sold) $ 0.25 $ 0.19
Fixed costs (total) $ 25,000 $ 24,000
Estimated salvage (terminal) values:
January 1, 2019 $ 68,000
December 31, 2023 $ 12,000 $ 22,000
Net working capital committed at time of acquisition of existing machine (all fully recovered at end of project, December 31, 2023) $ 30,000
Incremental net working capital required if new machine is purchased on January 1, 2019 (all fully recovered at end of project, December 31, 2023) $ 10,000
Expected annual volume of output/sales (in units), over the period 2019–2023 500,000 500,000
*Note: These amounts are used for depreciation calculations.
Assume further that Mendoza is subject to a 40% income tax, both for ordinary income and gains/losses associated with disposal of machinery, and that all cash flows occur at the end of the year, except for the initial investment. Assume that straight-line depreciation is used for tax purposes and that any tax associated with the disposal of machinery occurs at the same time of the related transaction.
Required:
1. Determine relevant cash flows (after-tax) at time of purchase of the new machine (i.e., time 0: January 1, 2019).
2. Determine the relevant (after-tax) cash inflow each year of project operation (i.e., at the end of each of years 1 through 5).
3. Determine the relevant (after-tax) cash inflow at the end of the project's life (i.e., at the project's disposal time, December 31, 2023).
5. Determine the undiscounted net cash flow (after tax) for the new machine and determine whether on this basis the old machine should be replaced.
Answer:
C
Explanation:
c is the answer just trust
Jamon is a manager in a human resources organization. He has a message for Bob who works on the assembly line. What channel is he likely to use get the message to Bob
Answer: All of the above
Explanation:
The options include:
a. Face-to-face
b. Telephone
c. Electronic mail
d. All of the above
Since the manager manager has a message for Bob, any of the communication channels given here can be used.
There is no preferred communication channel here. The manager may decided to tell Bob the message face to face when he sees him. Also, he can call him on the telephone or send an email to him.
Therefore, the correct option is All of the above.
