Answer:
C. Increase liabilities , decrease stockholder's equity
Explanation:
Usually, investors or shareholders in a company would have their returns paid to them at the end of each accounting period in the form of dividends. The reward of their investment is called dividend.
Shareholders are the owners of a company. They subscribe to shares of a company and their funds is used to run the company.
The effect of the declaration of cash dividend by the board of directors is that it will increase the liabilities and decrease stockholder's equity. What this means is that paying cash dividend would further bring about an increase in the liabilities of a company whilst also reducing the amount of equity or capital of the company's stockholder.
Problem 11-5 Next week, Super Discount Airlines has a flight from New York to Los Angeles that will be booked to capacity. The airline knows from past history that an average of 40 customers (with a standard deviation of 26) cancel their reservation or do not show for the flight. Revenue from a ticket on the flight is $140. If the flight is overbooked, the airline has a policy of getting the customer on the next available flight and giving the person a free round-trip ticket on a future flight. The cost of this free round-trip ticket averages $270. Super Discount considers the cost of flying the plane from New York to Los Angeles a sunk cost. By how many seats should Super Discount overbook the flight? (Use Excel's NORMSINV() function to find the correct critical value for the given α-level. Do not round intermediate calculations. Round your answer to the nearest whole number.) Overbooked by passengers
Answer:
29 Seats
Explanation:
Calculation to determine By how many seats should Super Discount overbook the flight
First step is to calculate the Critical ratio using this formula
Critical ratio=Cu/Cu +Co
Where,
Cu represent cost of underestimating the demand =$140
Co represent the cost of overestimating the demand =$270
Let plug in the formula
Critical ratio=$140/$140+$270
Critical ratio=$140/$410
Critical ratio=0.34146
Second step is to use Excel's NORMSINV() function to find thez-score that yields a p-value of 0.34146 which gives us -0.40848
Now let determine By how many seats should Super Discount overbook the flight
Numbers of seats to overbook the flight= 40 + (-0.40848 x 26)
Numbers of seats to overbook the flight=40 - 10.62048=
Numbers of seats to overbook the flight=29.37952
Numbers of seats to overbook the flight=29.4 seats (Approximately)
Numbers of seats to overbook the flight=29 seats (Rounded to the nearest whole number)
Therefore By how many seats should Super Discount overbook the flight is 29 seats
Suppose that the reserve requirement for checking deposits is 20 percent and that banks do not hold any excess reserves. If the Fed sells $3 million of government bonds, the economy's reservesdecrease by $ million, and the money supply will by $ million. Now suppose the Fed lowers the reserve requirement to 15 percent, but banks choose to hold another 5 percent of deposits as excess reserves. True or False: The money multiplier will remain unchanged. True False True or False: As a result, the overall change in the money supply will remain unchanged. True False
Answer:
1. decrease, $ 3 million, decrease, $ 15 million
2. TRUE
3. TRUE
Explanation:
1. The reverse requirement is given as r = 0.2
The money multiplier is [tex]$\frac{1}{r}=\frac{1}{0.2}=5$[/tex]
Now when the monetary base is changed by $3 million, then the total money supply will change by [tex]$\frac{3}{0.2}= \$ 15 \ mn$[/tex].
Of the $ 15 mn, the reverse will change by $ 15 mn x 0.2 = $ 3 mn.
If Fed sells the government bond of $ 3 million, then the money supply will reduce and the economy's reverses will decrease by $ 3 million and the money supply will decrease by $ 15 million.
2. TRUE
Now if the bank reduces the reserve ratio but he bank maintains excess reserves, then the money multiplier = [tex]$\frac{1}{(r+e)}=\frac{1}{0.15+0.05}=5$[/tex]
Therefore, the money multiplier will remain same, it will remain unchanged.
3. TRUE.
Since the money multiplier remains constant, the overall change in money supply will not increase. It remains the same.
Pratt is ready to graduate and leave College Park. His future employer (Ferndale Corp.) offers the following four compensation packages from which Pratt may choose. Pratt will start working for Ferndale on January 1, year 1. Benefit Description Option 1 Option 2 Option 3 Option 4 Salary $ 60,000 $ 50,000 $ 45,000 $ 45,000 Health insurance No coverage $ 5,000 $ 5,000 $ 5,000 Restricted stock 0 0 1,000 shares 0 NQO's 0 0 0 100 options Assume that the restricted stock is 1,000 shares that trade at $5 per share on the grant date (January 1, year 1); shares are expected to be worth $10 per share on the vesting date at the end of year 1; and no 83(b) election is made. Assume that the NQOs (100 options) each allows the employee to purchase 10 shares at $5 exercise price. The stock trades at $5 per share on the grant date (January 1, year 1) and is expected to be worth $10 per share on the vesting date at the end of year 1, and the options are exercised and sold at the end of the year. Also assume that Pratt spends on average $3,000 on health-related costs that will be covered by insurance if he had coverage or is an after-tax expense if he isn't covered by insurance (treat this as a cash outflow). Assume that Pratt’s marginal tax rate is 35 percent. (Ignore FICA taxes and time value of money considerations). What is the after-tax value of each compensation package for year 1? If Pratt’s sole consideration is maximizing after-tax value for year 1, which scheme should he select?
Answer:
A. Option 1 After-tax value Compensation Package $36,000
Option 2 After-tax value Compensation Package $32,500
Option 3 After-tax value Compensation Package $35,750
Option 4 After-tax value Compensation Package $35,750
B. Option 1
Explanation:
Calculation to determine the after-tax value of each compensation package for year 1
OPTION 1 COMPENSATION PACKAGE
Salary $60,000
Add Restricted Stock$0
Taxable Total $60,000
($60,000+$0)
Tax Rate 35%
Less Tax Paid ($21,000)
($60,000*35%=$21,000)
After-tax cash value$39,000
($60,000-$21,000)
NQO’s$0
Less Health care expenses ($3,000)
After-tax value $36,000
($39,000-$3,000)
Therefore Option 1 After-tax value Compensation Package is $36,000
OPTION 2 COMPENSATION PACKAGE
Salary $50,000
Add Restricted Stock$0
Taxable Total $50,000
($50,000+$0)
Tax Rate 35%
Less Tax Paid ($17,500)
(35%*$50,000=$17,500)
After-tax cash value $32,500
($50,000-$17,500)
NQO’s$0
Less Health care expenses ($0)
After-tax value $32,500
($32,500-$0)
Therefore Option 2 After-tax value Compensation Package is $32,500
OPTION 3 COMPENSATION PACKAGE
Salary $45,000
Restricted Stock$ 10,000
Taxable Total $55,000
($45,000+$10,000)
Tax Rate 35%
Less Tax Paid ($19,250)
($35%*$55,000)
After-tax cash value$35,750
($55,000-$19,250)
NQO’s$0
Less Health care expenses ($0)
After-tax value $35,750
($35,750-$0)
Therefore Option 3 After-tax value Compensation Package is $35,750
OPTION 4 COMPENSATION PACKAGE
Salary $45,000
NQO’s $10,000
Taxable Total $55,000
($45,000+$10,000)
Tax Rate 35%
Less Tax Paid ($19,250)
($55,000*35%)
After-tax cash value $35,750
($55,000-$19,250)
Less Health care expenses ($0)
After-tax value $35,750
($35,750-$0)
Therefore Option 4 After-tax value Compensation Package is $35,750
b. Based on the above calculation assuming his sole consideration is maximizing after-tax value for year 1, the scheme that he should select is OPTION 1 with the amount of $36,000 reason been that OPTION 1 tend to maximizes after-tax value for year 1.
List five developmental issues common to most LDCs.
Answer:
..........................
what is money placed in a checking account called
Answer:
bank account
Explanation:
Kuzio Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 150 100 % Variable expenses 60 40 % Contribution margin $ 90 60 % The company is currently selling 7,000 units per month. Fixed expenses are $214,000 per month. The marketing manager believes that a $7,500 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? rev: 03_09_2018_
Answer:
Effect on income= $9,600 increase
Explanation:
Giving the following formula:
Unitary contribution margin= $90
The marketing manager believes that a $7,500 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales.
To calculate the effect on income, we need to use the following formula:
Effect on income= increase in total contribution margin - increase in fixed costs
Effect on income= 190*90 - 7,500
Effect on income= 17,100 - 7,500
Effect on income= $9,600 increase
The records of Flounder’s Boutique report the following data for the month of April.
Sales revenue $103,300
Purchases (at cost) $52,100
Sales returns 2,200
Purchases (at sales price) 95,200
Markups 9,000
Purchase returns (at cost) 2,200
Markup cancellations 1,600
Purchase returns (at sales price) 3,200
Markdowns 9,500
Beginning inventory (at cost) 29,725
Markdown cancellations 3,100
Beginning inventory (at sales price) 50,100
Freight on purchases 2,600
Compute the ending inventory by the conventional retail inventory method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987.)
Ending inventory using conventional retail inventory method
Answer:
See below
Explanation:
COST RETAIL
Beginning inventory
Add:
Purchases
haraldson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 5.2 ounces $ 5.00 per ounce $ 26.00 Direct labor 0.9 hours $ 14.00 per hour $ 12.60 Variable overhead 0.9 hours $ 5.00 per hour $ 4.50 The company reported the following results concerning this product in June. Originally budgeted output 4,400 units Actual output 4,600 units Raw materials used in production 25,000 ounces Purchases of raw materials 20,100 ounces Actual direct labor-hours 7,200 hours Actual cost of raw materials purchases $ 42,900 Actual direct labor cost $ 14,400 Actual variable overhead cost $ 4,200 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for June is:
Answer:
8,967
Explanation:
Tucan Company manufactures a product requiring 0.5 ounces of platinum per unit. The cost of platinum is approximately $300 per ounce; the company maintains an ending platinum inventory equal to 10% of the following month's production usage. The following data were taken from the most recent quarterly production budget:
July August September
Planned production in units 1,000 11,00 980
The cost of platinum to be purchased to support August production is:_______
Answer:
$163,200
Explanation:
Tucan Company
Purchase Budget for the Month of August
Production Requirement ( 11,00 x 0.5 ) 550
Add Closing inventory ( 980 x 0.5 x 10%) 49
Total 599
Less Opening Inventory ( 11,00 x 0.5 x 10%) (55)
Materials Required 544
Cost $300
Total Cost $163,200
The Duerr Company manufactures a single product. All raw materials used are traceable to specific units of product. Current information for the Duerr Company follows:
Beginning raw materials inventory $27,000
Ending raw materials inventory 30,000
Raw material purchases 104,000
Beginning work in process inventory 39,000
Ending work in process inventory 49,000
Direct labor 129,000
Total factory overhead 104,000
Beginning finished goods inventory 79,000
Ending finished goods inventory 59,000
The company's cost of raw materials used, cost of goods manufactured and cost of goods sold is:________
Answer:
Results are below.
Explanation:
First, we need to calculate the direct material used:
Direct material used= beginning inventory + purchases - ending inventory
Direct material used= 27,000 + 104,000 - 30,000
Direct material used= $101,000
Now, the cost of goods manufactured:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 39,000 + 101,000 + 129,000 + 104,000 - 49,000
cost of goods manufactured= $324,000
Finally, the cost of goods sold:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 79,000 + 324,000 - 59,000
COGS= $344,000
Help! Which tasks commonly are performed in Management and Entrepreneurship jobs? Check all that apply.
packaging products
managing budgets
predicting future results
tracking inventory
hiring and supervising workers
visiting customers’ homes
setting goals and strategies
help me i am being help hostage to do homework
Hello There! The Answer to this problem is: B, C, E, G
Explanation:
Answer:bceg
Explanation:
Test completed
Additionally, as the price level rises, the impact on the domestic interest rate will cause the real value of the dollar torise in foreign exchange markets. The number of domestic products purchased by foreigners (exports) will thereforefall , and the number of foreign products purchased by domestic consumers and firms (imports) willrise . Net exports will thereforefall , causing the quantity of domestic output demanded tofall . This phenomenon is known as theexchange rate effect
Answer:
rise, fall, rise, fall, fall, exchange rate
Explanation:
When there is a change in the level of price it will cause the real value to change as well. This is due to the fact that real value is basically relative price i.e., nominal value adjusted by inflation.
This rise in price effects the demand for exports, which in return falls due to higher goods rates. And the effect is opposite for imports which would now rise. The combination effect of imports and exports results in the change in the net exports which would also fall due to rise in imports and fall in the exports. Overall, this effect is known as the exchange rate effect.
Smith Company makes jars of homemade strawberry jam. Each jar is priced at $6.00 per unit. The costs of the ingredients to make each jar are $2.00. The containing jar itself costs $1.00. The company has monthly expenses of $2,000 for rent and insurance, $300 for heat and electricity, and $5,000 in monthly salary expenses. Last month the company sold 3,000 jars. What is the UNIT VARIABLE COST per jar
Answer:
Total variable cost= $1.97
Explanation:
Giving the following information:
The cost of the ingredients to make each jar is $2.00.
The containing jar itself costs $1.00.
$300 for heat and electricity
$5,000 in monthly salary expenses.
Generally, the salary expense and electricity are mixed costs (fixed and variable components). In this case, we will treat them as a full variable cost.
Unitary Electricity= 300 / 3,000= $0.1
Unitary direct labor= 5,000 / 3,000= $1.67
Now, the total variable cost:
Total variable cost= 2 + 1 + 0.1 + 1.67
Total variable cost= $1.97
At the end of May, the following adjustment data were assembled.
Analyze and use these data to complete Part 6.
a. Merchandise inventory on May 31$570,000
b. Insurance expired during the year12,000
c. Store supplies on hand on May 314,000
d. Depreciation for the current year14,000
e. Accrued salaries on May 31:
Sales salaries $7,000
Office salaries 6,60013,600
f. The adjustment for customer returns and allowances is $60,000 for sales and $35,000 for cost of merchandise sold.
Answer: Top line=debits, bottom line=credits
part 4
2019
May 31
(Debits) Cost of Merchandise Sold 13,950
(Credits) Merchandise Inventory 13,950
May 31
Insurance Expense 12,000
Prepaid Insurance 12,000
May 31 (labels correct, dollar amount unknown)
Store Supplies Expense ??
Store Supplies ??
May 31
Depreciation Expense 14,000
Accumulated Depreciation
-Store Equipment 14,000
May 31
Sales Salaries Expense 7,000
Office Salaries Expense 6,600
Salaries Payable 13,600
May 31
Sales 60,000
Customer Refunds Payable 60,000
May 31
Estimated Returns Inventory 35,000
Cost of Merchandise Sold 35,000
S. S. Sarkar (S.S.S.), a real estate investment company, is considering investing in a shopping center. The sale price is $5,000,000 and S.S.S. expects to have positive after-tax and after-mortgage payment cash flows from rents of $400,000 for the next three years. S.S.S. can obtain a mortgage with a downpayment of $3,000,000. At the end of the third year, S.S.S. anticipates selling the shopping center for a net after-tax gain on sale of $4,500,000. If S.S.S.'s required return is 30%, should S.S.S. go ahead and purchase the shopping center?
Answer:
S. S. Sarkar (S.S.S)
S.S.S. should not purchase the shopping center.
It will generate a negative NPV.
Explanation:
a) Data and Calculations:
Selling price of a shopping center = $5,000,000
Expected annual positive after-tax and after-mortgage payment cash flows form rents = $400,000
Down Payment = $3,000,000
Net after-tax gain on sale after three years = $4,500,000
S.S.S.'s required return = 30%
Annuity value factor for 3 years at 30% = 1.816
Present value factor for 3 years at 30% = 0.455
NPV: Cash Flows PV
Down payment $3,000,000 ($3,000,000)
Annual rent $400,000 $726,400 ($400,000 * 1.816)
After-tax gain $4,500,000 2,041,500 ($4,500,000 * 0.455)
NPV = ($226,100)
g Bellingham Company produced 3,400 units of product that required 1.5 standard direct labor hours per unit. The standard fixed overhead cost per unit is $2.95 per direct labor hour at 5,500 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Answer:
the fixed factory overhead volume variance is $1,180 unfavorable
Explanation:
The computation of the fixed factory overhead volume variance is shown below
= (Actual activity - normal activity)× fixed overhead cost per unit
= (3,400 × 1.5 - 5,500) × $2.95
= (5,100 - 5,500) × 2.95
= 400 × 2.95
= $1,180 unfavorable
Hence, the fixed factory overhead volume variance is $1,180 unfavorable
Simply we applied the above formula so that the correct amount could come
Swifty Corporation gathered the following reconciling information in preparing its October bank reconciliation: Cash balance per books, 10/31 $12800 Deposits in transit 500 Notes receivable and interest collected by bank 2600 Bank charge for check printing 60 Outstanding checks 6100 NSF check 520 The adjusted cash balance per books on October 31 is
Answer:
See photo. I show how to balance but your format may be different. Hopefully you can use this info to fill out the format you learn in school.
Explanation:
A NOW account requires a minimum balance of $750 for interest to be earned at an annual rate of 4 percent. An account holder has maintained an average balance of $500 for the first six months and $1,000 for the remaining six months. The account holder writes an average of 60 checks per month and pays $0.02 per check, although it costs the bank $0.05 to clear a check.
Required:
a. What average return does the account holder earn on the account?
b. What is the average return if the bank lowers the minimum balance to $400?
c. What is the average return if the bank pays interest only on the amount in excess of $400? Assume that the minimum required balance is $400.
d. How much should the bank increase its check fee to the account holder to ensure that the average interest it pays on this account is 5 percent? Assume that the minimum required balance is $750.
Answer:
a. Average return = 5.55%
b. Average return = 6.88%
c. Average return = 4.75%
d. Bank increase per check fees = $.0257
Explanation:
a.)
Interest earned on first $500 = $500×0×6 / 12 = $0
Interest earned on next $1000 = $1000×0.04×6 / 12= $20
Now,
Fees earned on checks = ($.05 - $.02)×60×12 = $21.6
So,
Total interest earned = $20 + $21.6 = $41.6
Given,
Average balance maintained = $750
So,
Average return = $41.6 / $750 = 5.55%
b.)
Interest earned on first $500 = $500×0.04×6 / 12 = $10
Interest earned on next $1000 = $1000×0.04×6 / 12 = $20
Now,
Fees earned on checks = ($.05 - $.02)×60×12 = $21.6
So,
Total interest earned = $10 + $20 + $21.6 = $51.6
Given that,
Average balance maintained = $750
So,
Average return = $51.6 / $750 = 6.88%
c.)
Interest earned on first $100 = $100×0.04×6 / 12 = $2
Interest earned on next $600 = $600×0.04×6 / 12 = $12
Now,
Fees earned on checks = ($.05 - $.02)×60×12 = $21.6
So,
Total interest earned = $2 + $12 + $21.6 = $35.6
Given that,
Average balance maintained = $750
So,
Average return = $35.6 / $750 = 4.75%
d.)
Total interest earned = $750×0.05 = $37.5
So,
fees earned on checks = $37.5 - $20 = $17.5
Subsidiary per check = $17.5 / 60×12 = $.0243
So,
Bank increase per check fees = $.05 – $.0243 = $.0257
The following are the unit costs of making and selling an item at a volume of 30,000 units per month, which represents the company's capacity: Manufacturing: Direct materials $ 5.90 Direct labor 11.90 Variable overhead 1.90 Fixed overhead 3.90 Selling and administrative: Variable 7.90 Fixed 9.90 Assume the company has 300 units left over from last year which have small defects and which will have to be sold at a reduced price as scrap. This would have no effect on the company's other sales. The variable selling and administrative costs would have to be incurred to sell the defective units. The cost that is relevant as a guide for setting a minimum price on these defective units is: (Round your answer to two decimal places.) Multiple Choice $35.60 per unit. $7.90 per unit. $17.80 per unit. $31.50 per unit.
Answer:
$7.90 per unit
Explanation:
The computation of the minimum price on these defective units is shown below:
It is equivalent to the selling & admin variable cost per unit i.e. $7.90 per unit
oAs all the other cost would be considered as a sunk cost because the product is already generated and the fixed cost is not considered as it would remain the same whether the production is increase or not
Therefore the second option is correct
Direct Materials Variances The following data relate to the direct materials cost for the production of 20,000 automobile tires: Actual: 80,000 lbs. at $2.65 $212,000 Standard: 86,000 lbs. at $2.50 $215,000 a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter favorable variances as negative numbers. Enter unfavorable variances as positive numbers. Price variance $fill in the blank 1 Quantity variance fill in the blank 3 Total direct materials cost variance $fill in the blank 5 b. The direct materials price variance should normally be reported to the . The direct materials quantity variance due to a malfunction of equipment that had not been properly operated should be reported to the . The total materials cost variance should be reported to the .
Answer and Explanation:
The computation is shown below:
a. Direct material price variance
= 80,000 × ($2.65 - $2.5)
= $12,000 unfavorable
Direct material quantity variance
= $2.5 × (80,000 - 86,000)
= -$15,000 favorable
ANd, the total direct material cost variance
= $12,000 unfavorable - $15,000 favorable
= -$3,000 favorable
2. The direct material price variance should be reported to the purchasing department while the direct material quantity variance should be reported to the production supervisor and the total material cost variance should be reported to the senior plant management
Look up a field in nutrition and wellness that interests you.
Part A
Choose any two job titles and give a brief description of the job.
Consider the economies of Sporon and Gribinez, both of which produce agricultural products using only land and labor. The following tables show the supply of land, population size, and real GDP for these two economies from 2020 to 2023. Calculate real GDP per capita for the two economies, and complete the last column of the following two tables.
Sporon
Year Land Population Real GDP Real GDP per Capita
(Acres)
2020 20,000 1,000 $15,000 $
2021 20,000 2,000 $28,000 $
2022 20,000 3,000 $36,000 $
2023 20,000 4,000 $40,000 $
Gribinez
Year Land Population Real GDP Real GDP per Capita
(Acres)
2020 20,000 500 $4,500 $
2021 20,000 1,000 $10,000 $
2022 20,000 1,500 $16,500 $
2023 20,000 2,000 $24,000 $
Rapid population growth tends to threaten economic growth in economies with land-to-labor ratios. Which of the following is a correct description of the effect of population growth on economic growth in Gribinez from 2020 to 2023?
a. *Real GDP per capita rose initially but eventually fell as population continued to expand.
b. *Real GDP per capita rose from 2011 to 2014 as population increased.
c. *Real GDP per capita fell in*Real GDP per capita fell from 2011 to 2014 as population increased.
Answer:
Sporon
2020 $15
2021 $14
2022 $12
2023 $10
Gribinez
2020 $9
2021 $10
2022 $11
2023 $12
Real GDP per capita rose from 2020 to 2023 as population increased.
Explanation:
Real Per capita GDP measures the standard of living of the people in a country. The higher the Real Per capita GDP, the higher the standard of living
Real Per capita GDP = Real GDP / population
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.
Sporon
2020 : $15,000 / 1000 = $15
2021: $28,000 / 2000 = $14
2022 : $36,000 /3,000 = $12
2023: $40,000/4000 = $10
Gribinez
2020 : $4500 / 500= $9
2021 : $10,000 / 1000 = $10
2022 $16,500 / 1500= $11
2023: $24,000 / 2000 = $12
The real GDP per capita of Gribinez rose from 2011 to 2014 as population increased because the rate of increase of real GDP per capita was higher than the rate of increase in population
Rate of increase of population in 2022 = (1500 / 1000) - 1 = 0.5 = 50%
Rate of increase in Real GDP in 2022 = (16500 / 10,000) - 1 = 0.65 = 65%
Both Aaria and Justin work with businesses. Aaria tries to sell them packages that will cover their employees in case of injury or illness. Justin helps the businesses to grow their money and assets. Which statement describes their careers?
Aaria is in Business Financial Management Services and Justin is in Financial and Investment Planning.
Aaria is in Financial and Investment Planning Services and Justin is in Business Financial Management.
Aaria is in Business Financial Management and Justin is in Insurance Services.
Aaria is in Insurance Services and Justin is in Business Financial Management.
Answer:
D.Aaria is in Insurance Services and Justin is in Business Financial Management.
Explanation:
This is what people in business finacial management do, they sell their clients a cover package to help with any cases such as injurys and illness.
Answer:
D
Explanation:
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On January 1, 2010, Desert Company purchased a machine for $820,000. At the time, management estimated the useful life to be 20 years with a salvage value of $80,000 and will use straight-line depreciation. On January 1, 2020, the company reviewed the asset for impairment and determined that its future net cash flows totaled $420,000 and its fair value was $360,000. Desert has decided to continue to use the machine. What is the amount of depreciation expense Desert will record for this machine in 2020 after accounting for any potential impairment?
Answer:
$42,000
Explanation:
Straight line depreciation charges a fixed amount of depreciation for the period the asset is used in the business.
Depreciation Expense = Cost - Salvage Value ÷ Estimated Useful Life
January 1, 2020
Carrying Amount
Cost - Accumulated depreciation = $450,000
Recoverable Amount :
Higher of Fair Value and Future Cash Flows
Recoverable Amount = $420,000
Impairment loss incurs when Carrying Amount > Recoverable Amount
therefore,
Impairment loss = $30,000
December 31 , 2020
Depreciation expense = New Depreciable Amount ÷ Remaining useful life
= $420,000 ÷ 10
= $42,000
Use the following account balances from the adjusted trial balance of Flora Wholesalers:
Account Debit Balance Credit Balance
Cash $4,200
Accounts receivable $300
Accounts payable $1,100
H. Jones, Capital $4,400
H. Jones, Drawing $900
Fees revenue $13,200
Advertising expense $8,100
Travel expense $4,200
Shipping expense $300
Computer software expense $400
Required:
What accounts of Flora Wholesalers will have the same balance at the beginning of next year as it does presently on the adjusted trial balance?
Answer:
Flora Wholesalers:
The accounts of Flora Wholesalers that will have the same balance at the beginning of next year as they do presently on the adjusted trial balance are:
Assets:
Cash $4,200
Accounts receivable $300
Liabilities and Equity:
Accounts payable $1,100
H. Jones, Capital $4,400
Explanation:
a) Data and Analysis:
Adjusted Trial Balance
Account Debit Balance Credit Balance
Cash $4,200
Accounts receivable $300
Accounts payable $1,100
H. Jones, Capital $4,400
H. Jones, Drawing $900
Fees revenue $13,200
Advertising expense $8,100
Travel expense $4,200
Shipping expense $300
Computer
software expense $400
Assets:
Cash $4,200
Accounts receivable $300
Liabilities and Equity:
Accounts payable $1,100
H. Jones, Capital $4,400
b) The above assets, liabilities, and equity accounts will have the same balances at the beginning of next year as they do presently on the adjusted trial balance. They are called permanent accounts. Only the temporary accounts do change their balances from the adjusted trial balances to the opening balances. The only other account that is not included above is the Retained Earnings. This account is adjusted with the differences in the temporary accounts.
April is studying finance in college. She wants to enter a career that will analyze the risk of for a company. Which career pathway would be best suited for this ?
Brokerage Clerk
Risk Management Specialist
Tax Preparer
Insurance Sales Agent
Answer:
Risk Management Specialist
Explanation:
this is because this person wants to be in a career that analyzie risk for the company which is a fit for Risk Management Specialist
Answer:
Risk Management Specialist
Explanation:
Risk management specialists specialize in manage and assess financial risks in a company.
The client Circuit City is considering the introduction of private label brands into their superstores. Private label brands are unbranded products made by an OEM (original equipment manufacturer). Is there any value in this product line? If yes, what are the sources of value of this program? What are the potential downside risks associated with introducing private label products?
Answer:
Following are the responses to the given question:
Explanation:
Please find the complete question.
Yes, value exists. Their price is lower and therefore more competition and benefit are higher. Its value is reduced. Further competition among producers leads to higher production and lower prices. Further good product feedback will increase profitability after their use by consumers. Based on buyers' requirements, drugs can also be added. The drawback is that the output and performance depend more on the producer. Initially, the gain can be very low due to lower prices. Because they are typically replicas of premium products, a distinctive identity becomes difficult to have. Besides, customers get less trust and this problem is worse from the outset.
Pension data for Barry Financial Services Inc. include the following: ($ in thousands) Discount rate, 7% Expected return on plan assets, 10% Actual return on plan assets, 9% Service cost, 2021 $ 340 January 1, 2021: Projected benefit obligation 2,450 Accumulated benefit obligation 2,150 Plan assets (fair value) 2,550 Prior service cost—AOCI (2021 amortization, $40) 340 Net gain—AOCI (2021 amortization, $6) 360 There were no changes in actuarial assumptions. December 31, 2021: Cash contributions to pension fund, December 31, 2021 275 Benefit payments to retirees, December 31, 2021 300 Required: 1. Determine pension expense for 2021. 2. Prepare the journal entries to record (a) pension expense, (b) gains and losses (if any), (c) funding, and (d) retiree benefits for 2021.
Answer:
1. Pension expense $291
2.A. Pension expense
Dr Pension expense $291
Dr Plan assets (expected plan assets) $255
Dr Net gain -aoci6
Cr Prior service cost- oci 40
Cr PBO $512
B. Gains and losses
Dr Loss-oci 25
Dr Plan assets 25
(c) funding
Dr Plan assets $275
Cr cash 275
D. retiree benefits for 2021.
Dr PBO 300
Cr Plan assets 300
Explanation:
1. Calculation to determine the Pension Expense
PENSION EXPENSE
Service cost (given) $340
Add Interest cost $172
Less Expected return on plan assets ($255)
Add Prior service cost $40
Less Net gain or (loss) (6))
PENSION EXPENSE $291
2. Preparation of the journal entries to record
(a) pension expense
Dr Pension expense $291
Dr Plan assets (expected plan assets) $255
Dr Net gain -aoci6
Cr Prior service cost- oci 40
Cr PBO (service cost + interest cost)$512
($340+$172)
b. gains and losses
Dr Loss-oci 25
Dr Plan assets 25
(c) funding
Dr Plan assets $275
Cr cash 275
D. retiree benefits for 2021.
Dr PBO 300
Cr Plan assets 300
Working :
Projected benefit obligation ($2,450) x Discount rate (.07) = $172 Interest cost
Plan assets (fair value) ($2,550) x Expected return on plan assets (.10) = $255
Plan assets (fair value) ($2,550) x Actual return on plan assets (.09) =$230
Gain or (loss on plan assets) $255-$230 = ($25) loss
Service cost (given) =$340
Prior service cost (given)= 40
Benefit payments to retirees, December 31, 2013= $300
Cash contributions to pension fund, December 31, 2021 (given)= 275
Net gain or (loss) (given) = (6)Net gain–AOCI (2021 amortization
Match each transaction with the appropriate journal in which it should be recorded.a. Sales journalb. Purchases journalc. Cash receipts journald. Cash disbursements journale. General journal____ 1. Borrowed $7,000 cash from the local bank.____ 2. A customer returned a $250 item purchased on account.____ 3. Purchased merchandise on account, $2,100.____ 4. Purchased equipment on account for $4,000.____ 5. Paid $15,000 cash in wages to employees.____ 6. Paid a telephone bill for $3,400 cash.____ 7. Purchased $1,150 of office supplies on account.____ 8. Recorded depreciation on office equipment of $2,000.____ 9. Returned defective inventory purchased on account, $2,550.____ 10. Recorded cash sales of $12,700.
Answer and Explanation:
The matching is as follows:
1. Cash receipts journal - since cash is received
2. General journal - since the items is returned
3. Purchase journal - since purchase is done
4. Purchase journal - since purchase is done
5. Cash disbursement journal - since cash is paid
6. Cash disbursement journal - since cash is paid
7. Purchase journal - since purchase is done
8. General journal - since expenses are recorded
9. General journal - since the items is returned
10. Cash receipts journal - since cash is received
Ace Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for July for the two rackets is as follows:
Junior Pro Striker
Production budget 7,400 units 18,600 units
Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows:
Forming Department Assembly Department
Junior 0.2 hour per unit 0.4 hour per unit
Pro Striker 0.35 hour per unit 0.7 hour per unit
The direct labor rate for each department is as follows:
Forming Department $14 per hour
Assembly Department $12 per hour
Required:
Prepare the direct labor cost budget for July.
Answer and Explanation:
The preparation of the direct labor cost budget for July month is as follows:
Particulars Forming Dept Assembly Dept
Production 7,400 units 18,600 units
Hours required junior 1,480 2,960
(7,400 units × 0.2) (7,400 units × 0.4)
Hours required pro 6,510 13,020
(18,600 units × 0.35) (18,600 units × 0.7)
Total hours 7,990 15,980
Total hours rate $14 $12
Total direct labor cost $111,860 $191,760