Answer:
O a French tourist's spending while visiting Canada
Explanation:
A current account shows the balance between a country's exports and imports. In other words, a country's exports and imports are indicated in the country's current account. A positive balance indicates a country has more exports than imports.
Exports include all goods, services, capital, and earnings sent outside the borders of a country. Imports are what is received from other countries. The current account considers goods, services, interest, and capital moving in and out of the borders. The French tourist is spending in Canada. The items being bought are not imports.
Mr. Potts issued a 90-day, 7% note for $200,000, dated February 3 to Valley Co. on account. (Assume a 360-day year when calculating interest.)
(a) Determine the due date of the note.
(b) Determine the interest.
(c) Determine the maturity value of the note.
(d) Journalize the entry to record the receipt of the note from Potts on Feb. 3.
(e) Journalize the entry to record the receipt of payment of the note at maturity by Valley Co.
Answer:
(a) Determine the due date of the note.
The note was issued on February 3, so we have 25 days remaining in February, 31 days in March, 30 days in April and 4 days in May = 90 days total.
This means that the note is due on May 5th (the day after the 90th day)
(b) Determine the interest.
interest expense = $200,000 x 7% x 3/12 = $3,500
(c) Determine the maturity value of the note.
The maturity value of the note = principal + accrued interest = $200,000 + $3,500 = $203,500
(d) Journalize the entry to record the receipt of the note from Potts on Feb. 3.
Dr Accounts payable 200,000
Cr Notes payable 200,000
(e) Journalize the entry to record the receipt of payment of the note at maturity by Valley Co.
Dr Cash 203,500
Cr Notes receivable 200,000
Cr Interest revenue 3,500
Why might ranchers want to lock in a price today for their cattle by signing a six-month futures contract?
Responses
A. To be able to sell all of their cattle for a profit a year from now.
B. To be able to buy a new herd of cattle when the six months is up.
C. To be able to pay off the put option when the futures contract expires.
D. To be able to plan on a certain amount of income in the future.
Answer:
D. To be able to plan on a certain amount of income in the future.
Explanation:
Locking in price is when a seller and buyer agree on the minimum price for a transaction in the future. A locked-in price remains unchanged for the agreed period.
By lock in prices for their cattle, the ranchers have set the cattle's selling price after six months. Changes in market conditions will not affect the price. The ranchers will focus on controlling their costs to attain their target income. Locking in prices guarantees selling of stable prices, which allows them to plan of expected income.
A buyer needs 150 blouses to retail at $15 each and 80 shirts to retail at $20 each. She needs to average a 50.5% markup. If she pays $7 for each blouse, how much can she pay for each shirt in order to achieve the planned markup percent?
Answer:
To achieve the planned markup percent, she can pay for each shirt, the price of:
$18.85
Explanation:
a) Data and Calculations:
Number of blouses to retail at $15 each = 150
Total revenue from blouses = $2,250 (150 * $15)
Number of shirts to retail at $20 each = 80
Total revenue from shirts = $1,600 (80 * $20)
Total sales revenue = $3,850
Average markup = 50.5%
Therefore, the cost of the blouses and shirts = $3,850/1.505 = $2,558
If the cost of blouse = $7 each, the total cost of blouses = $1,050 (150 * $7)
Therefore, the cost of shirts will be equal to $1,508 (2,558 - $1,050)
Then, the cost of each shirt will be equal to $18.85 ($1,508/80).
A person who offers a bribe to secure a contract that will keep her company from going bankrupt and laying off hundreds of employees may be a(n)
Answer:
utilitarian
Explanation:
Utilitarian ethics or utilitarianism is a type of moral ethic code that judges actions only based on the final results. In this case, only the outcome matters, the road used to get there doesn't.
Personally, I do not share this philosophy because a person who needs a transplant could just get out and kill someone else just to get some organ. The final outcome is that they live, which is great for them, but they did something bad to reach that outcome.
A perfectly competitive industry consists of many identical firms, each with a long-run average total cost of LATC = 800 – 10Q + 0.1Q2 and long-run marginal cost of LMC = 800 – 20Q + 0.3Q2. In long-run equilibrium, each firm produces a quantity of ____. 50 40 30 60
Answer:
50
Explanation:
According to the question, The computation of the quantity produce is shown below:
Here we use the differentiation LRAC to zero
[tex]\frac{\partial LRATC}{\partial Q}=-10+0.2Q=0\\\\ 0.2Q=10\\\\ Q=50[/tex]
From above calculation it can be concluded that the each firm would be produced the quantity of long run equilibrium for 50
Hence, the first option is correct
Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year. *Three pounds of raw material are needed to produce each unit of finished product. If Paradise Corporation plans to sell 545,000 units during next year, the number of units it would have to manufacture during the year would be:________
a) 492,000 units
b) 545,000 units
c) 575,000 units
d) 515,000 units
Answer: d. 515,000 units
Explanation:
If they plan to sell 545,000 units then given those beginning and ending balances of finished goods, they will have to manufacture;
= Sales + Ending balance - Beginning balance
= 545,000 + 63,000 - 93,000
= 515,000 units
Which of the following accounts is debited, when overhead is applied to jobs?
a) Manufacturing Overhead
b) Work in Process
c) Inventory Indirect
d) Labor Finished
e) Goods Inventory
Answer: Work in process
Explanation:
It should be noted that the work in process inventory will be debited on a situation wherby the overhead is being applied to jobs
During production when the manufacturing overhead is being applied for production purposes, the manufacturing overhead is credited and the work in process is debited.
Therefore, the correct option is B.
The allowance method that assumes a given percent of a company’s credit sales for the period is uncollectible is:___________.
a. The percent of sales method.
b. The percent of accounts receivable method.
c. The aging of accounts receivable method.
d. Direct write-off method.
e. Factoring method.
Answer:
Option A
Explanation:
In simple words, The percentage of sales method can be defined as the financial forecasting model under which all financial line items such as cost of goods sold, stock levels, and funds are expressed in the form of percentage of total sales made from a company's accounts. The analyst then used those projected sales to estimate he future values of those items.
The allowance method with the assumption that a given percent of a company’s credit sales for the period is uncollectible is: The percent of sales method.
The percent of sales method serves as financial forecasting model whereby financial line items such as costs of goods sold as well as inventory, and cash are been calculated as a percentage of sales.It usually use the assumption that particular percent of credit sales in that particular period is uncollectible .Therefore, option A is correct.
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When dealing with tangible products, consistency is usually measured in terms of:_____.
A. Features.
B. Attributes.
C. Systems.
D. Defects.
Answer:
D. Defects
Explanation:
In order to meet the unending needs and wants of consumers, to satisfactorily provide products that meets their requirements, tastes or preferences various manufacturing companies use five (5) main methods of production, and these are; labour-intensive production, mass production, batch production, capital-intensive production and job production.
Generally in Economics, the question of how goods are produced, determines how resources are combined in the production of goods.
This ultimately implies that, before a manufacturer produce its goods it determines the amount of resources that are available. These resources that are to be combined for the purpose of production of goods are entrepreneur, land, labor, and capital, which are generally referred to as the four (4) factors of production.
A tangible product refers to any product that can be physically touched by the end users or consumers such as electronic gadgets, bread, furniture, cooking utensils, etc.
When dealing with tangible products, consistency is usually measured in terms of defects. Any goods (products) manufactured by a company that is consistently devoid of defects such as broken parts or missing parts is generally considered to be of high quality and as such consumers would feel safe to use or buy such tangible products at all times.
In what type of business organization is each owner personally liable for all
business debts, even if the debts were created by other owners?
A. Proprietorship
B. S corporation
C. Corporation
D. Partnership
Answer:
A
Explanation:
It is the simplest form of business organization. Proprietorships have no existence apart from the owners. The liabilities associated with the business are the personal liabilities of the owner, and the business terminates upon the proprietor's death.
If a portfolio of the two assets has an expected return of 7 percent, what is its beta? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)
Answer:
the beta of the portfolio is 0.562
Explanation:
The computation of the beta is shown below:
As we know that
Expected return of portfolio = return of stock × weightage of stock + return of risk free asset × weightage of risk free asset
7% = 11% × weightage of stock + 2.4% × (1 - weightage of stock)
weightage of stock = 0.535
Now Beta of portfolio is
= 1.05 × 0.535
= 0.562
hence, the beta of the portfolio is 0.562
One of the indirect costs of bankruptcy is the effect that a potential bankruptcy has on the firm's decisions. The general result is that:A. the firm will select only all-equity financed projects.B. stockholders expropriate value from bondholders by selecting high-risk projects.C. the firm will always select the lowest-risk project available.D. bondholders expropriate value from stockholders by selecting high-risk projects.E. the firm will rank all projects and select the project which results in the highest expected firm value.
Answer: B. stockholders expropriate value from bondholders by selecting high-risk projects.
Explanation:
Bankruptcy simply means when an individual or business cannot pay back the funds that is owed to the creditor. When bankruptcy is declared by a particular business, the assets for the business are used in paying back the debt.
One of the indirect costs of bankruptcy is the effect that a potential bankruptcy has on the firm's decisions. The general result is that stockholders expropriate value from bondholders by selecting high-risk projects.
Therefore, option B is the answer.
XYZ Corp issued $600,000 of 9% , 10-year bonds on June 30,2020, for $562,500. This price provided a yield of 10% on the bonds. Interest is payable semiannually on December 31 and June 30. If XYZ uses the effective- interest method , what is the amount of interest expense that has accrued if the accounting period ends on October 31, 2020.
a. $27,000
b. $28,125
c. $18, 750
d. $20,000
Answer:
c. $18, 750
Explanation:
The computation of the amount of interest expense i.e. accrued is shown below:
= Issued amount × yield on the bonds × given months ÷ total number of months in a year
= $562,500 × 10% × 4 months ÷ 12 months
= $18,750
The 4 months is calculated from July 1 to October 31
Hence, the correct option is c. $18,750
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Which of the following describes the impact a few years of heavy rainfall would have on commodity prices?
- Crops would enjoy a longer planting season, and commodity prices would go down. - - Planting would be delayed, resulting in crop shortages, and commodity prices would rise.
- Crops would increase due to additional rainfall, and commodity prices would go down. - Planting would be delayed, limiting farmers’ risks, and commodity prices would rise.
Answer:
Crops would enjoy a longer planting season, and commodity prices would go down
Explanation:
Answer:
c
Explanation:
Macroeconomic is the branch of economics that focuses on ?
Answer:
economic principles affecting entire countries
Explanation:
05. In identifying risks to then manage and control, as the portfolio
manager you are consulting organizational process assets such as:
Menard quit his high school teaching job, which paid $60,000 per year, to start a business that prepares students for the SAT exam. His first year in business generated the following revenues and costs: Menard's economic cost of SAT preparation is $____. 20,000 15,000 105,000 100,000
Answer: $105,000
Explanation:
Maynard's economic cost is the sum of both his implicit and explicit costs.
Explicit costs are the normal accounting costs of running a business which in this case are supplies and employee salaries.
Implicit costs are the opportunity costs which means that this is the benefit foregone from another alternative for the current decision one has made. In this case that would be the $60,000 Menard could have been making from his high school teaching job had he not quit to prepare students for the SATs.
Economic costs;
= Explicit + Implicit costs
= 30,000 + 15,000 + 60,000
= $105,000
Stormer Company reports the following amounts on its statement of cash flow: Net cash provided by operating activities was $37,500; net cash used in investing activities was $13,800 and net cash used in financing activities was $17,700. If the beginning cash balance is $6,900, what is the ending cash balance?
a) $75,900.
b) $62,100.
c) $40,500.
d) $6,000.
$12,900.
Answer:
e. $12,900
Explanation:
Given that:
Net Cash provided by operating activities = $37,500
Net Cash used in investing activities = $13,800
Net Cash used in financing activities = $17,700
Beginning cash balance = $6,900
Stormer company's ending balance would be;
= Beginning cash balance + Net cash provided by operating activities - Net cash used in financing activities - Net cash used in investing activities
= $6,900 + $37,500 - $17,700 - $13,800
= $12,900
Assume that you can receive $500,000, $515,000, and $600,000 over a 3 year period and the present value of those sums at 8% is $1,495,370. Explain what that means in simple terms.
Please show me how to calculate and get $1,495,370. My results is 1,380,791.80, different with 1495370.
Answer:
present value = $500,000/1.08 + $515,000/1.08² + $600,000/1.08³ = $1,380,791.80
you calculated the present value correctly, assuming that you receive the annual payments at the end of each year (ordinary annuity).
but if you receive the annual payment at the beginning of the year (annuity due) = $500,000 + $515,000/1.08 + $600,000/1.08² = $1,493,255
it's not exactly the same value, but it is much closer and you could assume that the difference is due to rounding: ($1,493,255 - $1,495,370) / $1,495,370 = -0.1%
Suppose apples are currently selling for 50 cents a piece. Someone says that apple
sellers can't make a decent living if they sell their apples so cheaply. This person says
there should be a law stating that no one can sell an apple and no one can buy an apple
for less than 75 cents. A law to raise the income of apple sellers is suggested. What might
be an unintended consequence (effect) of this law?
A manufacturing company incurs direct materials costs of $6 per unit. The total direct materials cost is______when the company manufactures 2,000 units.
Answer:
$12,000
Explanation:
The manufacturing company has a direct materials cost of $6
The company manufactures 2,000 unit
Therefore total direct material cost can be calculated as follows
= 2,000×6
= $12,000
Hence the total direct material cost of $12,000
A trading arrangement that eliminates most or all barriers to trade among participating nations and utilizes common barriers to trade with other countries outside the group is called a
Answer:
preferential trade agreement
Explanation:
This agreement is known as a preferential trade agreement. It is called this because it tends to make it easier for specific goods to be traded but only to the countries that are part of the group and/or agreement. This agreement also makes it harder for countries that are not part of the agreement to be able to trade with the countries that are in order to maintain the countries within the agreement trading with each other.
A firm operated at 90% of capacity for the past year, during which fixed costs were $420,000, variable costs were 40% of sales, and sales were $1,000,000. Operating income was:____________.
a. $420,000
b. $980,000
c. $180,000
d. $1,080,000
Answer:
A
Explanation:
Based on the fixed and variable costs, as well as the sales amount, the operating income was C. $180,000.
What was the operating income?This can be found as:
= Sales - Variable costs - Foxed costs
Solving gives:
= 1,000,000 - (40% x 1,000,000) -420,000
= 1,000,000 - 400,000 - 420,000
= $180,000
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The manager of a fashionable restaurant open Wednesday through Saturday says that the restaurant does about 26 percent of its business on Friday night, 34 percent on Saturday night, and 24 percent on Thursday night. What seasonal relatives would describe this situation?
Answer: See Explanation
Explanation:
The work done for each day is written below:
Thursday night = 24%
Friday night = 26%
Saturday night = 34%
Wednesday night = 100% - (24% + 26% + 34%) = 100% - 84% = 16%
Let's assume that sales in a week is represented by x. Therefore average sales in week if x = 1 will be 1/4 = 0.25.
Seasonal relative will be:
= Sales in a day /Average sales in a week
Wednesday = 16% / 0.25 = 0.16 / 0.25 = 0.64
Thursday = 24% / 0.25 = 0.96
Friday = 26% / 0.25 = 1.04
Saturday = 34% / .25 = 1.36
Jared's Co. has total assets of $60,000 and total liabilities of $40,000. Its debt-to-equity ratio is
Answer:
2.0
Explanation:
A car's price is currently $20,000 and is expected to rise by 4% a year. If the interest rate is 6%, how much do you need to put aside today to buy the car one year from now
Answer:
the amount need to put aside is $19,623
Explanation:
The computation of the amount need to put aside is shown below;
= (Current car price × (1 + expected rise percentage)) ÷ (1 + rate of interest)
= ($20,000 × 1.04) ÷ 1.06
= $19,623
hence, the amount need to put aside is $19,623
We simply applied the above formula so that the correct value could come
And, the same is to be considered
If the balance in the account 7 months after the final deposit is $8, 000, how large is each deposit?
Answer:
the first part of the question is missing:
Suppose that you make a sequence of 31 equal monthly deposits into an account paying a nominal rate of 6.7% convertible quarterly.
we need to determine the present value of the $8,000 at the moment that you stop making the monthly payments.
the effective annual interest rate = (1 + 6.7%/4)⁴ - 1 = 6.87%
the effective monthly interest rate = (1 + 6.87%)¹/¹² - 1 = 0.55523%
the value at the moment that you finish making the deposits = $8,000 / (1 + 0.0055523)⁷ = $7,695.86
now we can calculate the monthly payments using the future value of an annuity formula:
future value = monthly payment x FV annuity factor
monthly payment = future value / FV annuity factor
future value = $7,695.86FV annuity factor, 31 periods, 0.55523% = 33.72594monthly payment = $7,695.86 / 33.72594 = $228.19
Professional Properties is considering remodeling the office building it leases to Heartland Insurance. The remodeling costs are estimated at $3.4 million. If the building is remodeled, Heartland Insurance has agreed to pay an additional $820,000 a year in rent for the next 5 years. The discount rate is 15 percent. What is the benefit of the remodeling project to Professional Properties? A) -$651,233 B) -$489,072 C) $5,214 D) $128,399 E) $311,417
Answer:
A) -$651,233
Explanation:
The computation of the benefit generated of the remodelling project is shown below:
If we considered the discounted rate i.e. 15% for 5 years of $820,000 so its present value would be $2,748,767 ($820,000 × 3.3521)
And, the predicted cost is $3,400,000
So here the cost is there instead of the benefit of
= $2,748,767 - $3,400,000
= -$651,233
Hence, the correct option is A
Explain which of the following items are money in the U.S. economy. Discuss your answers in terms of three functions of money. 1. US $100 2. Euro 3. Mona Lisa painting 4. American Express credit card
Answer:
$100
Mona Lisa painting
Explanation:
To start with, I will list the 3 primary functions of money, which are;
store of value,
unit of account, and
medium of exchange.
Going by the above, I would say that 2 of the 4 options presented before us are money, why so?
A $100 bill is definitely money, no much explanation is needed here, because it's used daily as a means of exchange between people
2. Euro is not a form of money in the US. While it is a form of money in many other places, it's not in the US because it doesn't satisfy the "medium of exchange" criteria of function of money. Euro can not be spent in a store or anywhere in the country, without it having been first exchanged into dollars
3. Mona Lisa painting, part of the functions of money is to store value, and I believe very much, a painting is a good store of money in that regard.
4. American Express credit card is not a form of money because unlike money
being used essentially, to pay for goods and services directly, a credit card is more or less, a store of wealth that is lent by the bank
Many firms offer substantial rebates by mail or coupons for discounts at the point of sale. The people who use the rebates or coupons have ______ than the people who don't use them.
a. greater price sensitivity.
b. less price sensitivity.
c. inverted price sensitivity.
d. the same price sensitivity.
Answer:
a. greater price sensitivity.
Explanation:
Price sensitivity can be defined as a measure of the degree to which the selling price of a product affects the purchasing behavior of a customer.
This ultimately implies that, a price sensitive customer is impacted negatively by the price of a product and as such would be stuck between making the decision of whether to buy or not buy the product.
Hence, when customers are paying the bill themselves, they are likely to be more price sensitive because they are solely responsible for the payment. Therefore, it's an innate nature of human to be less sensitive to the price of goods and services when it's another person paying for them or say when sharing the cost.
In this scenario, many firms offer substantial rebates by mail or coupons for discounts at the point of sale. Thus, the people who use the rebates or coupons have greater price sensitivity than the people who don't use them.
