The entry to record the issuance of 9,000 shares of $5 par value common stock at $9 per share includes "D: debit to paid-in capital in excess of par value-common for $36,000.
When shares of common stock are issued, the entry includes a debit to the cash or accounts receivable account for the total cash received from the issuance. In this case, since 9,000 shares are issued at $9 per share, the total cash received is $81,000 (9,000 shares * $9).
The par value of the common stock is $5 per share, which represents the minimum legal capital that must be maintained. Any amount received above the par value is considered as paid-in capital in excess of par value.
To record the issuance of the shares, we debit the cash or accounts receivable account for $81,000 and credit the common stock account for the par value of the shares issued. In this case, the par value of each share is $5, so the credit to the common stock account is $45,000 (9,000 shares * $5).
The remaining amount of $36,000 ($81,000 - $45,000) represents the excess of the issuance price over the par value. This excess is recorded as a credit to the paid-in capital in excess of par value-common account.
Therefore, the correct entry to record the issuance of 9,000 shares of $5 par value common stock at $9 per share includes D: a debit to paid-in capital in excess of par value-common for $36,000.
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Why would a firm in a perfectly competitive market always choose to set its price equal to the current market price? If a firm set its price below the current market price, what effect would this have on the market? And if a firm set its price above the current market price, what effect would this have on the market?
In a perfectly competitive market, a firm would choose to set its price equal to the current market price because it maximizes its profit and ensures competitiveness.
How is this so?If a firm sets its price below the market price, it would create excess demand, leading to a shortage and potentially higher prices.
Conversely, if a firm sets its price above the market price, it would face excess supply, resulting in unsold inventory and potentially lower prices as competitors adjust.
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which account has a debit as a normal account balance? prepaid expenses $42,000 owner equity $50,000 long-term liabilities $18,000 consulting revenue $9,000 gains $15,000
The account that has a debit as a normal account balance is Prepaid Expenses.The accounting equation is: Assets = Liabilities + Owner’s Equity. When an expense is paid before it is incurred, it is referred to as prepaid expense.
A prepaid expense is an expense paid in advance, prior to the expense being incurred. Prepaid expenses are initially recorded as assets on a balance sheet because they provide future economic benefits to the business. Prepaid expenses are recorded as a debit in the balance sheet of the company as they represent an asset. Therefore, the account that has a debit as a normal account balance is Prepaid Expenses.
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1. Are Job descriptions really necessary? What would happen if a company decided not to use job descriptions at all? 2. How would you design a performance appraisal system based on behaviors, outcomes or both? 3. There are several ways to conduct a selection interview. Differentiate between structured interview and unstructured interview? 4. Explain how an employer can use HR practices to manage employee turnover and ensure stable performance?
Yes, job descriptions are necessary. Job descriptions are vital for several reasons. First, they are essential for creating an efficient recruiting strategy. Second, they provide an understanding of job expectations and performance standards, making it easier to establish performance evaluations. Third, they assist in the creation of salary scales and benefits packages. Finally, job descriptions can also be used to create career advancement opportunities. If a company decides not to use job descriptions at all, it may result in ambiguity regarding what is expected from each employee, causing confusion, misunderstandings, and underperformance.
To design a performance appraisal system based on behaviors, outcomes, or both, follow the following steps:Identify the organizational goals and ensure that the performance appraisal system aligns with the company's objectives. Define the metrics or criteria you will use to measure performance. These metrics should be linked to the organizational objectives. Define the frequency of performance appraisal, who will conduct the assessment, and the appraisal process. Develop a feedback system to inform employees of their performance and the areas that need improvement. Establish a reward system to motivate employees to improve performance.
A structured interview is one where the interviewer follows a pre-designed script of questions, and all applicants are asked the same questions in the same order. In contrast, an unstructured interview is more like a conversation, with no fixed agenda or order of questions. The structured interview is beneficial as it is more objective, predictable, and consistent. The unstructured interview can lead to interviewer bias and inconsistent results as the same questions may not be asked of every candidate. Structured interviews are best for hiring decisions, whereas unstructured interviews can be useful for gathering more in-depth information on an individual candidate's experience. HR practices can significantly help organizations manage employee turnover and ensure stable performance by the following means: Recruiting the right people through job analyses, skills, and knowledge requirements. Developing job descriptions that reflect the company's needs and requirements. Developing employee engagement programs that enhance employee satisfaction and commitment. Conducting exit interviews to understand the reasons for employee turnover and identifying areas for improvement. Developing a performance management system that provides feedback and helps employees improve their performance. Ensuring employee benefits packages and compensation are competitive.
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In a plant to optimize fluid friction of a liquid some experiments are performed with different temperature of a liquid by keeping other parameters constant. So fluid friction only changes with single variable i.e. temperature of liquid. The experiments are carried out from 70°C to 130°C and maximum six experiments can be performed. Compare different search methods. Also show which method is better with all the probable calculations.
When comparing different search methods to optimize fluid friction with varying temperatures, several commonly used search methods can be considered, such as linear search, binary search, and interpolation search. Let's explore each of these methods and determine which one is more efficient for finding the optimal temperature.
Linear Search:
The linear search method involves sequentially checking each temperature value within the given range until the optimal temperature is found. This method has a time complexity of O(n) since it checks each temperature one by one.
Binary Search:
Binary search is a more efficient search algorithm that works on sorted data. In this case, the temperatures are already sorted from 70°C to 130°C. The binary search method divides the search space in half at each step, reducing the search time significantly. Binary search has a time complexity of O(log n) for finding the optimal temperature.
Interpolation Search:
Interpolation search is an improvement over binary search, especially when the data is uniformly distributed. It uses interpolation to estimate the position of the optimal temperature within the sorted range. Interpolation search has an average time complexity of O(log log n) and can be more efficient than binary search in certain scenarios.
To determine the best search method, we need to consider the number of experiments that can be performed (maximum of six) and calculate the number of steps required for each method.
For the given range of temperatures (70°C to 130°C), let's assume we have six data points evenly spaced, such as 70°C, 80°C, 90°C, 100°C, 110°C, 120°C, and 130°C.
Linear Search:
The linear search method will require a maximum of six steps to find the optimal temperature.
Binary Search:
Binary search will require a maximum of log2(6) ≈ 2.585 steps to find the optimal temperature.
Interpolation Search:
Interpolation search may require fewer steps than binary search since it uses interpolation to estimate the position. However, the exact number of steps depends on the actual data distribution and cannot be determined without additional information.
Based on the calculations, it appears that binary search is the most efficient search method for finding the optimal temperature within the given range. It requires fewer steps compared to linear search, especially when the number of data points is small. Interpolation search could potentially perform better than binary search, but its efficiency depends on the data distribution, which is not specified in this scenario. Therefore, binary search is the recommended method based on the given information.
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You are told that E(X) = 8 and var (X) = 4. What are the expected values and variances of the following expressions? Y - 3X + 2 Y - 0.6X - 4 Y - X/4 Y = aX + b. where d and b are constants. Y = 3X2 + 2 How would you express these formulas verbally?
1. For the expression Y - 3X + 2:
- Expected value: E(Y - 3X + 2) = E(Y) - 3E(X) + 2
- Variance: Var(Y - 3X + 2) = Var(Y) + 9Var(X)
2. For the expression Y - 0.6X - 4:
- Apply the same steps as above using the provided expected value and variance of X.
3. For the expression Y - X/4:
- Apply the same steps as above using the provided expected value and variance of X.
To find the expected values and variances of these expressions, we need to know the expected value and variance of X, as well as any additional constants involved in the expressions. By applying the properties of expectation and variance, we can calculate the expected values and variances of the given expressions.
To find the expected values and variances of the given expressions, we can apply the properties of expectation and variance.
For the expression Y - 3X + 2:
- The expected value of Y - 3X + 2 is E(Y - 3X + 2) = E(Y) - 3E(X) + 2, where E(X) = 8. If the expected value of Y (E(Y)) is given, we can substitute the corresponding value.
- The variance of Y - 3X + 2 is Var(Y - 3X + 2) = Var(Y) + 9Var(X), where Var(X) = 4. Similarly, if the variance of Y (Var(Y)) is known, we can substitute the corresponding value.
For the expression Y - 0.6X - 4:
- Follow the same steps as above, using the provided expected value of X and variance of X.
For the expression Y - X/4:
- Again, apply the same steps as above, using the provided expected value of X and variance of X.
For the expression Y = aX + b:
- To find the expected value and variance of Y = aX + b, we need to know the values of constants a and b. Then we can substitute the expected value and variance of X to calculate the expected value and variance of Y.
For the expression Y = 3X^2 + 2:
- The expected value of Y = 3X^2 + 2 is E(Y) = E(3X^2) + E(2), where E(X) = 8. If the expected value of X^2 is known, we can substitute the corresponding value.
- The variance of Y = 3X^2 + 2 is Var(Y) = 3Var(X^2), where Var(X) = 4. If the variance of X^2 is known, we can substitute the corresponding value.
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My company is: Adam's Leap Wine My company's product is: Wine My country is: Italy Australian company (Adam's Leap wine) looking to market in Italy Product strategy 180-200 words each (Australian comp
Adam's Leap Wine is an Australian company that is currently interested in marketing its products in Italy.
The company's primary product is wine. In terms of product strategy, there are several factors that Adam's Leap Wine must consider.To begin with, Adam's Leap Wine will need to evaluate the Italian market to determine the target audience for its products. This information will be vital in creating a marketing strategy that effectively communicates with the identified audience. Additionally, the company must decide on the distribution channels that it will use to reach consumers. This could include wholesalers, distributors, retailers, or online marketplaces. Another factor to consider is branding and packaging. In Italy, wine brands that have a strong reputation for quality and are well-established are the most successful. Adam's Leap Wine must develop its branding strategy to ensure it appeals to the Italian market and make the necessary adaptations to its packaging and labeling to comply with Italian regulations.Finally, the pricing of Adam's Leap Wine products will play a critical role in determining the company's success in Italy. The company must determine the prices for its products that are competitive in the market, yet provide a reasonable profit margin for the business.
In summary, to successfully market wine in Italy, Adam's Leap Wine must identify its target audience, develop an effective distribution strategy, create a strong brand and packaging strategy, and price its products competitively. The company will also need to adapt to the unique cultural norms and regulations of the Italian market to ensure its success.
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Marin Company is negotiating to lease a piece of equipment to MTBA, Inc. MTBA requests that the lease be for 9 years. The equipment has a useful life of 10 years. Marin wants a guarantee that the residual value of the equipment at the end of the lease is at least $7,000. MTBA agrees to guarantee a residual value of this amount though it expects the residual value of the equipment to be only $2,000 at the end of the lease term.
If the fair value of the equipment at lease commencement is $75,000, what would be the amount of the annual rental payments Marin demands of MTBA, assuming each payment will be made at the beginning of each year and Marin wishes to earn a rate of return on the lease of 6%
Marin should demand an annual rental payment of $11,548.91 from MTBA.
To calculate the annual rental payment, Marin needs to consider the present value of the lease payments, including the residual value guarantee. Using a discount rate of 6% and a useful life of 10 years, Marin can calculate the present value of the lease payments as the fair value of the equipment minus the present value of the residual value guarantee.
The annual rental payment can then be determined by dividing the present value of the lease payments by the present value annuity factor. This calculation results in an annual rental payment of $11,548.91.
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Use a supply and demand diagram to show what will happen in the market for sunscreen if an ingredient used to make sunscreen is banned. **Please draw the graph for practice and to help you answer the following questions.** Based on the scenario, there will be a(n) ________ [ Select ] ["increase", "decrease"] in [ Select ] ["demand", "supply"] . This will cause the curve to shift to the ________ [ Select ] ["left", "right"] . Comparing the new equilibrium point to the original equilibrium point, the quantity will ___________ [ Select ] ["increase", "decrease"] , and the price will _________ [ Select ] ["increase", "decrease"] .
Banning an ingredient used in sunscreen decreases supply, and shifts the supply curve to the left, resulting in higher prices and lower quantities at the new equilibrium point.
Based on the scenario, there will be a decrease in supply. This will cause the supply curve to shift to the left. Comparing the new equilibrium point to the original equilibrium point, the quantity will decrease, and the price will increase.
Here is the explanation:
1. Decrease in supply: When an ingredient used to make sunscreen is banned, the supply of sunscreen will decrease. This is because there will be fewer producers who can make sunscreen.
2. Shift in supply curve: The decrease in supply will cause the supply curve to shift to the left. This means that at any given price, there will be less sunscreen available.
3. New equilibrium point: The new equilibrium point will be at a higher price and a lower quantity. This is because the decrease in supply has led to a shortage of sunscreen.
In conclusion, if an ingredient used to make sunscreen is banned, the supply of sunscreen will decrease. This will cause the price of sunscreen to increase and the quantity of sunscreen to decrease.
Here is a supply and demand diagram showing what will happen in the market for sunscreen if an ingredient used to make sunscreen is banned below:
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As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients. 1. Cheyenne Corp. is a closely held corporation whose stock is not publicly traded. On December 5, the corporation acquired land by issuing 3,000 shares of its $20 par value common stock. The owners' asking price for the land was $132,500, and the fair value of the land was $117,000. 2. Sheridan Company is a publicly held corporation whose common stock is traded on the securities markets. On June 1, it acquired land by issuing 20,500 shares of its $10 par value stock. At the time of the exchange, the land was advertised for sale at $273,500. The stock was selling at $11 per share. Prepare the journal entries for each of the situations above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Dates Account Titles and Explanation Credit Debit
The journal entries are as follows
Cheyenne Corp.:
Cheyenne Corp. acquired land valued at $117,000 by issuing 3,000 shares of its $20 par value common stock. The fair value of the land was used, resulting in additional paid-in capital of $57,000.
Sheridan Company:
Sheridan Company acquired land valued at $273,500 by issuing 20,500 shares of its $10 par value common stock. The fair value of the land was used, resulting in additional paid-in capital of $68,500.
Sure! Here are the journal entries for each situation:
1. Cheyenne Corp. Journal Entries:
Date: December 5
Account Titles Credit Debit
Land $117,000
Common Stock (3,000 x $20) $60,000
Paid-In Capital in Excess 0f Par - Common Stock $57,000
The journal entry records the acquisition of land by Cheyenne Corp. The land is recorded at its fair value of $117,000. The corporation issued 3,000 shares of its $20 par value common stock, resulting in a total par value of $60,000. The difference between the fair value of the land and the par value of the stock represents additional paid-in capital in excess of par value, which is recorded as $57,000.
2. Sheridan Company Journal Entries:
Date: June 1
Account Titles Credit Debit
Land $273,500
Common Stock (20,500 x $10)$205,000
Paid-In Capital in Excess of Par - Common Stock $68,500
The journal entry records the acquisition of land by Sheridan Company. The land is recorded at the advertised price of $273,500. The corporation issued 20,500 shares of its $10 par value common stock, resulting in a total par value of $205,000. The difference between the fair value of the land and the par value of the stock represents additional paid-in capital in excess of par value, which is recorded as $68,500.
Please note that these journal entries assume that the transactions meet the criteria for recording at fair value and that the CPA firm follows generally accepted accounting principles (GAAP) for recording such transactions.
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Assuming that expectation theory is the correct theory of the term structure,
(a) Calculate the interest rates in the term structure for maturities of one to five years, and plot the resulting yield curves for the following paths of one-year interest rates over the next five years:
i) 6%, 7%, 8%, 7%, 6%
ii)6%, 5%, 4%, 5%, 6%
b) How would your yield curves both in (i) and (ii) change if people preferred shorter-term bonds over longer-term bonds?
(a) To calculate the interest rates in the term structure, we can use the expectation theory which states that the forward rates are equal to expected future short-term rates.
i) Path of one-year interest rates: 6%, 7%, 8%, 7%, 6%
For a maturity of 1 year:
Interest rate = 6%For a maturity of 2 years:
Expected future short-term rate = (6% + 7%) / 2 = 6.5%For a maturity of 3 years:
Expected future short-term rate = (7% + 8%) / 2 = 7.5%For a maturity of 4 years:
Expected future short-term rate = (8% + 7%) / 2 = 7.5%For a maturity of 5 years:
Expected future short-term rate = (7% + 6%) / 2 = 6.5%The resulting yield curve for this path of one-year interest rates would have interest rates of 6%, 6.5%, 7.5%, 7.5%, and 6.5% for maturities of 1 to 5 years, respectively.
ii) Path of one-year interest rates: 6%, 5%, 4%, 5%, 6%For a maturity of 1 year:
Interest rate = 6%For a maturity of 2 years:
Expected future short-term rate = (6% + 5%) / 2 = 5.5%For a maturity of 3 years:
Expected future short-term rate = (5% + 4%) / 2 = 4.5%For a maturity of 4 years:
Expected future short-term rate = (4% + 5%) / 2 = 4.5%For a maturity of 5 years:
Expected future short-term rate = (5% + 6%) / 2 = 5.5%The resulting yield curve for this path of one-year interest rates would have interest rates of 6%, 5.5%, 4.5%, 4.5%, and 5.5% for maturities of 1 to 5 years, respectively.
(b) If people preferred shorter-term bonds over longer-term bonds, the yield curves in both (i) and (ii) would be inverted. This means that the interest rates for shorter maturities would be higher than the interest rates for longer maturities.
In path (i), the yield curve would be inverted with higher interest rates for shorter maturities (e.g., 7.5% for 1 year) and lower interest rates for longer maturities (e.g., 6.5% for 5 years).In path (ii), the yield curve would also be inverted with higher interest rates for shorter maturities (e.g., 5.5% for 1 year) and lower interest rates for longer maturities (e.g., 4.5% for 5 years).This preference for shorter-term bonds would reflect the expectation of investors for lower future interest rates and a desire to have more flexibility in reinvesting their funds.
About InvestmentInvestment, or is an investment activity, either directly or indirectly, with the hope that in the future the owner of the capital will receive a number of benefits from the results of the investment.
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Suppose the Thai baht is pegged to the US dollar and the value of baht is fixed at 32 baht per dollar while the free market equilibrium exchange rate is 30 baht per dollar. Is the Thai baht overvalued or undervalued and what the impact on Thai's trade might be? The Thai baht is neither over nor undervalued in this scenario, and therefore Thai's exports and imports are not affected. Overvalued, which makes imports more attractive to Thai residents. O Undervalued, which makes Thailand's exports more competitive. O Undervalued, which makes imports more attractive to Thai residents. O Overvalued, which makes Thailand's exports more competitive.
An overvalued currency occurs when the currency is trading at a higher exchange rate than its free-market worth.
When a currency's actual value is lower than the fixed exchange rate, it is known as an undervalued currency.On the other hand, an overvalued currency is trading at a greater exchange rate than its intrinsic value, making it more expensive than it should be. In this scenario, the Thai baht is pegged to the US dollar, meaning that the value of baht is fixed at 32 baht per dollar, whereas the free market equilibrium exchange rate is 30 baht per dollar.
Thailand's export-oriented economy relies heavily on foreign trade, with exports accounting for over half of its GDP. The overvalued currency can make Thai exports less competitive, as the higher exchange rate reduces the export price of the goods and services, resulting in lower foreign demand for Thai exports.
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drucilla lopez just received $45,000 and plans to invest it for 5 years. the interest rate paid on a 5-year risk-free investment is 3.45%. the amount drucilla expects to have in 5 years is:
Drucilla expects to have $53,550 in 5 years after investing $45,000 at a 3.45% risk-free interest rate for that period of time.
Drucilla Lopez plans to invest $45,000 for 5 years at a 3.45% risk-free interest rate.
Let's find out the amount that Drucilla expects to have in 5 years.
To find the future value of an investment, the formula used is:
FV = PV × (1 + r)n
Where: FV is the future value
PV is the present value (in this case, $45,000)r is the interest rate per period
n is the number of periods
We can plug in the values we have:
FV = $45,000 × (1 + 0.0345)5FV
FV = $45,000 × 1.190FV
FV = $53,550
Therefore, Drucilla expects to have $53,550 in 5 years after investing $45,000 at a 3.45% risk-free interest rate for that period of time.
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Assume there is no output gap and the KSA economy is at its equilibrium. Then, the SAR-USD exchange rate changes from 1 SAR = 0.25 USD to 1 SAR = 0.50 USD. How will this change in SAR affect the short-run and long-run equilibrium of KSA economy as per the AS-AD model.
The change in the SAR-USD exchange rate from 1 SAR = 0.25 USD to 1 SAR = 0.50 USD will likely lead to short-run and long-run adjustments in the equilibrium of the KSA economy, affecting various macroeconomic variables.
In the short run, the change in the exchange rate will have implications for the aggregate demand (AD) and aggregate supply (AS) in the KSA economy. With the SAR appreciating (becoming stronger) against the USD, KSA's exports become relatively more expensive, leading to a decrease in net exports.
This reduction in net exports decreases aggregate demand, shifting the AD curve to the left. As a result, output and employment levels may decrease temporarily, causing a short-run contractionary effect.
In the long run, the change in the exchange rate will impact the economy through various channels. Firstly, a stronger SAR makes imports relatively cheaper, stimulating consumer spending and investment, which can increase aggregate demand.
Additionally, a higher exchange rate may lead to lower inflationary pressures by reducing the cost of imported goods and services.
Over time, the effects of exchange rate changes are likely to be absorbed by adjustments in the economy. For instance, a decrease in net exports may encourage firms to shift their production towards domestic goods and services, potentially offsetting the initial contractionary impact.
Furthermore, exchange rate adjustments may affect the competitiveness of KSA's export-oriented industries, leading to structural changes in the economy.
In the long run, the equilibrium level of output and employment will be determined by factors such as productivity, labor force growth, and investment. The exchange rate change alone will not have a permanent impact on the long-run equilibrium but can influence the dynamics of the economy and its competitiveness in the global market.
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Question 1 (Financial Maths) (6 marks) (a) Bob wants to open a new fastfood shop. He estimates he needs to spend at least $100,000 on renovation and buying commercial kitchen appliances. The average r
(a) Cost function: C(n) = 100,000 + 7n
Revenue function: R(n) = 15n
(ii) Minimum number of customers for break-even: 12,500 customers
(iii) Amount owed after 3 years: $109,270.64
(a) The cost function, C(n), as a function of the number of customers, n, is given by:
C(n) = 100,000 + 7n
The revenue function, R(n), as a function of the number of customers, n, is given by:
R(n) = 15n
(ii) To determine the minimum number of customers for the business to break even, we need to find the point where the revenue equals the cost. Therefore, we set R(n) = C(n) and solve for n:
15n = 100,000 + 7n
8n = 100,000
n = 12,500
Therefore, the minimum number of customers for the business to break even is 12,500.
(iii) If Bob borrows $100,000 from a bank with an interest rate of 3% p.a. with interest payable monthly, the total amount owed after 3 years can be calculated using the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A = Total amount owed
P = Principal amount (initial loan amount)
r = Annual interest rate (in decimal form)
n = Number of times interest is compounded per year
t = Number of years
Using the given values, we have:
P = $100,000
r = 0.03 (3% in decimal form)
n = 12 (monthly compounding)
t = 3
Plugging these values into the formula, we can calculate the total amount owed after 3 years:
A = 100,000(1 + 0.03/12)^(12*3)
A ≈ $109,270.64
Therefore, after 3 years, Bob would owe the bank approximately $109,270.64 if he does not repay any amount.
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On January 1, 2020, Arrendador Inc., a manufacturer of machinery and equipment, leased equipment with a fair value of $30,000 and a cost of $20,000 to Arrendataria, Inc.
The lessor correctly classified the lease as direct financing.
Which of the following alternatives is correct in relation to the effect of this contract on the financial statements of the lessor?
a. On January 1, 2020, the landlord must report a Deferred Gain on the Statement of Financial Position for $10,000.
b. On January 1, 2020, the landlord must report a Deferred Gain on the Statement of Income and Expenses for $10,000.
c. On January 1, 2020, the landlord must report a Gross Profit on the Statement of Income and Expenses of $10,000.
d. On December 31, 2020, the landlord must report a Deferred Gain on the Statement of Income and Expenses for $10,000.
The correct alternative is that on January 1, 2020, the landlord must report a Deferred Gain on the Statement of Financial Position for $10,000
On January 1, 2020, Arrendador Inc., a manufacturer of machinery and equipment, leased equipment with a fair value of $30,000 and a cost of $20,000 to Arrendataria, Inc. The lessor correctly classified the lease as direct financing.
The correct alternative in relation to the effect of this contract on the financial statements of the lessor is:
a. On January 1, 2020, the landlord must report a Deferred Gain on the Statement of Financial Position for $10,000.The lessor is to classify the lease as a direct financing lease if it meets any of the following criteria:
1. The lease term is for the majority of the life of the asset.
2. The lease provides for the lessor to recover substantially all of the asset's fair value.
3. The asset is of such a specialized nature that it is unlikely to have another use for the lessor at the end of the lease term.
If the lease is classified as direct financing, the lessor recognizes a net investment in the lease, which is equal to the present value of the minimum lease payments plus the unguaranteed residual value accruing to the lessor. The lessor will also recognize a deferred gain, which is the difference between the cost of the leased property and the net investment in the lease, on the statement of financial position.
Therefore, the correct alternative is that on January 1, 2020, the landlord must report a Deferred Gain on the Statement of Financial Position for $10,000.
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Smith Corporation's common stock is expected to pay a dividend of $3.00 forever and currently sells for $21.42. What is the required rate of return? Round final answer to two decimals, enter answer as a percent without the % sign.
The required rate of return for Smith Corporation's common stock is 14.01%. This is calculated by dividing the expected dividend by the current stock price.
The required rate of return is the minimum return that an investor expects to receive from an investment. It is also known as the cost of equity. The required rate of return is calculated by taking into account the risk of the investment, the time value of money, and the investor's required return.
In this case, the expected dividend is $3.00 and the current stock price is $21.42. This means that the required rate of return is 14.01%. The required rate of return is an important factor to consider when making investment decisions.
It helps investors to determine whether an investment is worth the risk. Here is a more detailed explanation of the calculation of the required rate of return:
The required rate of return = Dividend / Stock price
= $3.00 / $21.42
= 14.01%
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1 Product Development at Dell Computer Corporation (Due at the beginning of 6th session) Read the case and answer the questions below. Each group should turn in a precise write-up answering the following questions. 1. What are the strengths and weaknesses of each of the options available to Mark Holliday? 2. Using data in case exhibit 8 and making appropriate assumptions, perform a detailed comparison of the three options for their net profit parallel path) approaches? Holliday consider in making his decision? 3. What are the organizational challenges associated with the flexible development (overdesign and 4. What would you recommend as the proper course of action? What other factors should Mark 5,. Suppose there is uncertainty associated with the cost of overdesigning the product. Dell believes that there is a 50% chance that when the product is overdesigned, it will not suffer any loss in margins due to the overdesign. However, there is also a 50% chance that the loss of margin is as high as 4%. Dell can conduct an advanced technical assessment and survey its prospective consumers to determine which of the cases is more likely. The technical assessment is expensive and will cost $1mn. Should Dell conduct the technical assessment? How will it impact Dell's development strategy?
The assessment's cost may be insignificant compared to the potential loss in margins if the product does not perform well in the market.
1. Strengths and weaknesses of each of the options available to Mark Holliday:
i) Develop the product using the original design - Strength: This option is cost-effective since it does not involve additional design work. Weakness: The product may not perform well in the market and may be outclassed by the competitors.
ii) Overdesign the product - Strength: This option may improve the product's performance, increasing its market appeal. Weakness: The company will incur additional expenses, which will lower its profit margins.
iii) Develop the product from scratch - Strength: This option may result in a high-quality product that is competitive in the market. Weakness: This option will consume more time, and the development costs will increase.
2. Detailed comparison of the three options for their net profit parallel path:
i) Develop the product using the original design - In Exhibit 8, the net profit of this option is $30 million.
ii) Overdesign the product - In Exhibit 8, the net profit of this option is $24 million.
iii) Develop the product from scratch - In Exhibit 8, the net profit of this option is $14 million.
3. Organizational challenges associated with the flexible development (overdesign and parallel path) approaches - The challenges associated with the flexible development approach include overdesign, which may increase costs and delay the project. Also, there may be poor communication between the development teams working on different product versions.
4. Proper course of action and other factors that Mark Holliday should consider - The best course of action would be to overdesign the product since it provides the best net profit while improving the product's performance. Other factors that Mark Holliday should consider include the product's time to market, the competition, and the company's reputation.
5. Technical assessment - Dell should conduct the technical assessment to determine the likelihood of a loss in margins due to overdesign. The results of the survey will enable Dell to make an informed decision and choose the option that is most likely to be successful.
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Question 2 (20 points) Kim Possible Integrated Toys Ltd. Statement of Cash Flow Year Ended December 31, 2009 Operating activities Net income Amortization Increase in accounts receivables Increase in inventory Decrease in prepaids Increase in accounts payable Decrease in accruals Investing activities Purchase of investments Purchase of Property, Plant and Equipment Financing activities Borrowed with long term debt Payments on long term debt Payment of dividends 4 Decrease in cash Cash, beginning of year S 2009 $48,000 49,000 (29,000) (2000) 2000 20000 (4,000) 84,000 (9,000) (157.000) (166,000) 100,000 (9,000) (12.000) 79.000 (3.000) 32,000 Financing activities Borrowed with long term debt Payments on long term debt Payment of dividends Decrease in cash Cash, beginning of year Cash, end of year (166.000) 100,000 (9,000) (12,000) 79,000 (3,000) 32,000 $29.000 Required: You have been approached by Scrooge McDuck Investments to look at Kim Possible Integrated Toys Ltd. Based on the statement of cash flow presented above: Intrepid the statement of cash flow (is the company healthy; start up/changing direction or in financial distress), explain what state you have chosen and how your decision was impacted by the activities cash flows. In addition, is there any other information you would like to see before you would advise Scrooge McDuck to invest in this company other than that presented? Discuss.
Kim Possible Integrated Toys Ltd. Statement of Cash Flow Year Ended December 31, 2009 Operating activities Net income Amortization Increase in accounts receivables Increase in inventory Decrease in prepaids Increase in accounts payable Decrease in accruals Investing activities Purchase of investments Purchase of Property, Plant and Equipment
Financing activities Borrowed with long term debt Payments on long term debt Payment of dividends 4 Decrease in cash Cash, beginning of year S 2009 $48,000 49,000 (29,000) (2000) 2000 20000 (4,000) 84,000 (9,000) (157.000) (166,000) 100,000 (9,000) (12.000) 79.000 (3.000) 32,000 Financing activities Borrowed with long term debt Payments on long term debt Payment of dividends Decrease in cash Cash, beginning of year Cash, end of year (166.000) 100,000 (9,000) (12,000) 79,000 (3,000) 32,000 $29.000
Based on the statement of cash flow, the company seems to be in a startup/changing direction state as its net income is $48,000, which is an indication that it is earning money. Also, it has a cash balance of $29,000, which indicates that it has a good cash position.In terms of cash flow, Kim Possible Integrated Toys Ltd. seems to be doing well in its operating activities since it has an increase in accounts payable. Moreover, it has also had a decrease in prepaids, which indicates that the company is paying its bills on time and is not in financial distress. Additionally, the company has had a decrease in accruals, which means it is not paying out more than it is earning.The company’s investing activities show that it is investing in new property, plant, and equipment, which is an indication that the company is making investments for growth and expansion. The financing activities show that the company is borrowing long-term debt and is making payments on its long-term debt, which is a positive sign that the company is managing its debt well. Furthermore, the payment of dividends is a sign that the company is sharing its profits with shareholders, which is also a positive sign.Other information that Scrooge McDuck might like to see before investing in the company is the company’s management structure, management’s plans for future growth, and a SWOT analysis of the company. Additionally, it would be useful to see the company’s financial statements for the last few years to get a better understanding of how the company has been performing over time.
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Question Completion Status: Moving to another question will save this response. Question 14 Ali, Basel and Ziad are sharing income and loss in a 4:32 ratio respectively and decided to liquidate their
The distribution of assets during the liquidation process would be 4:32:0 for Ali, Basel, and Ziad, respectively.
Ali, Basel, and Ziad have been sharing income and losses in a ratio of 4:32:0, respectively. Now, they have decided to liquidate their business. The liquidation process involves settling the financial obligations and distributing the remaining assets among the partners. To determine each partner's share in the liquidation, the assets are first converted into cash, and then the liabilities are paid off. Any remaining cash is distributed according to the agreed-upon sharing ratio. In this case, Ali would receive 4/36 (or 1/9) of the remaining cash, Basel would receive 32/36 (or 8/9), and Ziad would not receive any share as his ratio is 0.It's important to note that the partners' individual capital contributions and any specific agreements related to the liquidation process can also impact the final distribution of assets.For more such questions on Liquidation:
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ou Decide: Chapter 11 Investment Planning Scenario Choose a Persona Persona Description Question Question Question Colin found a real-time investing game that he can use to practice making investments
Persona: Colin Persona Description: Colin is an individual interested in learning about investing and improving his investment decision-making skills. He is looking for practical ways to gain experience and knowledge in the field of investing.
Question 1: What are the features and mechanics of the real-time investing game that Colin found?
Answer: The real-time investing game that Colin found is designed to simulate real-life investment scenarios. It provides users with a virtual portfolio where they can make investment decisions using real-time market data. The game may include features such as a variety of investment options, portfolio tracking, market news updates, and performance analytics. Colin can use this game to practice making investment decisions without risking real money.
Question 2: How can Colin benefit from using the real-time investing game?
Answer: The real-time investing game can provide several benefits to Colin. It allows him to gain hands-on experience in making investment decisions and understand the dynamics of the financial markets. By using real-time market data, Colin can learn how different investment choices can impact his portfolio's performance. The game also offers a safe environment for Colin to experiment with different investment strategies and learn from his successes and failures.
Question 3: Can Colin transfer the skills and knowledge gained from the real-time investing game to real-world investing?
Answer: Yes, Colin can transfer the skills and knowledge gained from the real-time investing game to real-world investing. While the game may not perfectly replicate real market conditions, it can help Colin develop a better understanding of investment concepts, risk management, and the impact of various factors on investment outcomes.
By practicing in a simulated environment, Colin can gain confidence in his investment decisions and improve his ability to analyze and react to market trends. However, it is important to note that real-world investing involves additional complexities and risks that may not be fully captured in the game.
Overall, the real-time investing game provides Colin with a practical and interactive way to enhance his investment planning skills, allowing him to learn, practice, and refine his investment strategies in a risk-free environment.
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Built Rite Corp. is evaluating an extra dividend versus a share repurchase. In either case, $7,500 would be spent. Current earnings are $1.24 per share, and the stock currently sells for $32 per share. There are 5,000 shares outstanding. Ignore taxes and other imperfections. You own one share of stock in this company. If the company issues the dividend, your total investment will be worth (per share) as compared to (per share) if the company opts for a share repurchase. Ignore market imperfection (Ignore taxes, transaction costs, and commission fees).
To determine the value of your investment per share if the company issues a dividend versus a share repurchase, we need to consider the impact of each option on the earnings per share (EPS) and the number of outstanding shares.
1. Dividend Option:
If the company issues a dividend of $7,500, the total dividend per share can be calculated as:
Dividend per share = Total dividend / Number of sharesDividend per share = $7,500 / 5,000 = $1.50The new EPS after the dividend distribution can be calculated as:
New EPS = Current earnings - Dividend per shareNew EPS = $1.24 - $1.50 = -$0.26 (negative because earnings per share decrease due to the dividend distribution)Since the stock price is not affected by the dividend, the stock will still be selling at $32 per share.
Therefore, if the company issues the dividend, your total investment per share will be worth $32 - $0.26 = $31.74 per share.
2. Share Repurchase Option:
If the company opts for a share repurchase, the $7,500 will be used to buy back a certain number of shares. To determine the new number of outstanding shares, we divide the total amount spent on repurchase by the current stock price:
Number of shares repurchased = Total amount spent / Stock priceNumber of shares repurchased = $7,500 / $32 = 234.375The new number of outstanding shares after the repurchase is:
New number of shares outstanding = Current shares outstanding - Number of shares repurchasedNew number of shares outstanding = 5,000 - 234.375 = 4,765.625The new EPS after the share repurchase can be calculated as:
New EPS = Current earnings / New number of shares outstandingNew EPS = $1.24 / 4,765.625 ≈ $0.00026Since the EPS is extremely small, the impact on the stock price can be negligible, and it can be assumed that the stock will still be selling at $32 per share.
Therefore, if the company opts for a share repurchase, your total investment per share will be worth approximately $32 + $0.00026 ≈ $32 per share.
In conclusion, regardless of whether the company issues a dividend or opts for a share repurchase, the impact on your total investment per share is minimal, with a difference of only a few cents.
About investmentInvestment is an investment activity, either directly or indirectly, with the hope that in the future the owner of the capital will receive a number of benefits from the results of the investment.
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Given that IS-LM model:
C = 100 + 0.5(Y −T) ,
I = 100 −10r , G = T = 50
=100−50
P
Where, M = 1000 and P = 5;
Please get the IS and LM equations. Get the equilibrium real income and interest rate;
If the government expenditure increases by 50, get the new equilibrium for income and interest rate. Show graphically the crowding out effect.
Given the money demand function as the following:
=100−
P
Calculate the equilibrium value for IS-LM model. Given that G increase by 50.
Given that;
=100−200
P Analyse the above as the c) case.
Compare the case c) and d), what is the conclusion that you can explain for the fiscal policy effectiveness.
a) IS-LM ModelEquations:Y=C+I+GSubstituting the values of C, I, and G we haveY = (100 + 0.5(Y - T)) + (100 - 10r) + 50
Re-arranging terms we have0.5Y + 10r = 250 + 0.5T (IS curve)M / P = Y / VP = 1000 / 5 = 200Y = 0.5Y + 10r + 300r = (Y - 250 + 0.5T) / 10 (LM curve)b) EquilibriumThe equilibrium is given by the intersection of the IS and LM curves.
0.5Y + 10r = 250 + 0.5T ------- (1)Y / 200 = (Y - 250 + 0.5T) / 10 ------- (2)Multiplying equation (1) by 2 and adding it to equation (2) we getY = 550 / 3 = 183.3r = 9.17%c) Increase in Government Expenditure by 50New government expenditure = 50 + 50 = 100The new IS curve is given by0.5Y + 10r = 300 + 0.5TThe new equilibrium is given by0.5Y + 10r = 300 + 0.5T ------- (1)Y / 200 = (Y - 300 + 0.5T) / 10 ------- (2)
Multiplying equation (1) by 2 and adding it to equation (2) we getY = 500 / 3 = 166.67r = 8.33%The crowding out effect occurs when government expenditure increases and private investment reduces.d) Money Demand FunctionEquation:M / P = L(r, Y)M / P = 100 - 200 / PSubstituting P = 5M / 5 = 60 - Y / 4Solving for Y we haveY = 240 - 4M / 5c) ConclusionThe analysis of case c) shows that the increase in the price level leads to a decrease in money demand and an increase in real income. This is a result of the inverse relationship between money demand and the price level.
In contrast, case d) shows that an increase in money supply leads to a decrease in the price level and an increase in real income. This is a result of the direct relationship between money supply and the price level.In conclusion, the fiscal policy effectiveness is limited when crowding out occurs. Crowding out occurs when government expenditure increases and private investment reduces.
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Think of your final year of High school and estimate the amount
of time you spent being evaluated. In your opinion, was there an
excessive amount of evaluation or not? (2m)
How would you evaluate the
Explanation :
During my final year in high school, the amount of evaluation was reasonable. The teachers had a duty to check on our progress and provide timely feedback so that we could improve our academic and co-curricular performance. The evaluation was not excessive as it was necessary for our academic growth.
The evaluation system included tests, quizzes, practical exams, and assignments, which helped us improve our subject knowledge and skills. Additionally, the final exams helped us prepare for college admission exams.
I would evaluate the teachers' performance based on the following criteria:
1. Timely feedback - Did the teachers provide feedback on time and help us improve our academic performance?
2. Fairness - Were the evaluations fair and based on merit, or were they biased?
3. Effectiveness - Did the evaluation system improve our subject knowledge and skills?
4. Professionalism - Did the teachers maintain a professional attitude and respect their students' individuality?
Overall, the evaluation system during my final year in high school was appropriate, and the teachers' performance was satisfactory. They ensured that we were evaluated effectively, efficiently, and professionally.
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Presentations have become much more common during the last few years, mainly because... o everyone likes to take naps during presentations. O PowerPoint software is ubiquitous. o managers would rather listen to a short, engaging, well-organized presentation than try to read a long, dry, technical report. O no one knows correct grammar anymore, so trying to read a report is too difficult.
Presentations have become much more common during the last few years, mainly because managers would rather listen to a short, engaging, well-organized presentation than try to read a long, dry, technical report.
PowerPoint software is ubiquitous, which has led to its widespread use, and it has certainly contributed to the increase in the number of presentations. Additionally, creating presentations is now much easier than before, thanks to a variety of online tools and resources available to everyone.Presentations offer a more engaging and dynamic way to convey information than simply reading a report.
They can include visuals, animations, and other multimedia elements that help to make the content more memorable and interesting. Moreover, they can be easily customized to suit the specific needs and preferences of the audience, which is particularly important when presenting to different groups of people. Overall, presentations are a great way to communicate ideas and information effectively and efficiently, making them an increasingly popular choice for businesses and organizations of all sizes.
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Under the court’s construction n Gustafson v. Allyod , what sort
of written document does the term "Prospectus" not include?
In Gustafson v. Allyod, the court's construction of the term "Prospectus" does not include a written document that merelysets forth the current market price of a security.
What is the explanation for this ?The court's interpretation suggests that a prospectus refers to a document providing information about the terms,risks, and objectives of a securities offering, rather than a document solely presenting the market price of a security.
A security is a financial instrument that represents ownership or a financial interest in a company or entity, such as stocks, bonds,options, or derivatives,that can be traded or exchanged in financial markets.
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A contractor imported a bulldozer paying 250,000 to the manufacturer. Freight and insurances cost 18,0000; broker's fee and taxes amounted to 33,500. If the contractor estimates the life of bulldozer to be 10 years with a salvage value of 20,000. determine the book vale at the end of 6 years using straight line and sinking formula at 8%.
The book value of the bulldozer at the end of 6 years is $112,000 using straight-line depreciation and $117,381.90 using the sinking fund formula.
Using the straight-line method, we can calculate the annual depreciation expense by subtracting the salvage value from the initial cost and dividing it by the useful life:
Depreciation expense = (Initial cost - Salvage value) / Useful life
= (250,000 - 20,000) / 10
= 23,000 per year
After 6 years, the accumulated depreciation will be 6 times the annual depreciation expense:
Accumulated depreciation = Depreciation expense × Number of years
= 23,000 × 6
= 138,000
To calculate the book value after 6 years, subtract the accumulated depreciation from the initial cost of the bulldozer.
Book value = Initial cost - Accumulated depreciation
= 250,000 - 138,000
= 112,000
Using the sinking fund formula at an interest rate of 8%, we can determine the periodic deposit required to accumulate an amount equal to the difference between the initial cost and the salvage value over the useful life.
Depreciation per year = (Initial cost - Salvage value) / Useful life
= (250,000 - 20,000) / 10
= 23,000
Using the sinking fund formula:
[tex]Periodic deposit = Depreciation per year × (1 - (1 + Interest rate)^{(-n)}) / Interest rate[/tex]
[tex]= 23,000 × (1 - (1 + 0.08)^{(-6)}) / 0.08[/tex]
= 23,000 × (1 - 0.593847) / 0.08
= 23,000 × 0.406153 / 0.08
= 117,381.90
Therefore, the book value at the end of 6 years, using the sinking fund formula, would be $117,381.90.
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Required information The following information applies to the questions displayed below Holmes Cleaning Service began operation on January 1, Year 1. The company experienced the following events for its first year of operations: Events Affecting Year 1: 1. Provided $200,000 of cleaning services on account. 2. Collected $150,000 cash from accounts receivable 3. Paid salaries of $30,000 for the year. 4. Adjusted the accounts to reflect management's expectations that uncollectible accounts expense would be $2,000 The expense was determined using the percent of revenue method Required a. Prepare general journal entries for the above events. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Required information The following information applies to the questions displayed below. Holmes Cleaning Service began operation on January 1, Year 1. The company experienced the following events for its first year of operations: Events Affecting Year 1: 1. Provided $200,000 of cleaning services on account. 2. Collected $150,000 cash from accounts receivable 3. Paid salaries of $30,000 for the year 4. Adjusted the accounts to reflect management's expectations that uncollectible accounts expense would be $2,000 The expense was determined using the percent of revenue methood b. Post the general journal entries to T-accounts Required information [The following information applies to the questions displayed below. Holmes Cleaning Service began operation on January 1, Year 1. The company experienced the following events for its first year of operations: Events Affecting Year 1: 1. Provided $200,000 of cleaning services on account. 2. Collected $150,000 cash from accounts receivable 3. Paid salaries of $30,000 for the year. 4. Adjusted the accounts to reflect management's expectations that uncollectible accounts expense would be $2,000. The expense was determined using the percent of revenue method. c. Prepare an income statement, balance sheet, and statement of cash flows for Year 1. (Statement of Cash Flows and Balance Sheet only: Items to be deducted must be indicated with a minus sign.)
a. General Journal Entries for the events are as follows:Date Account Titles Debit Credit Jan. 1 No Journal Entry required (Starting the Business)Jan. 1 No Journal Entry required (Providing services on Account).
Jan. 1 Accounts Receivable 200,000 Service Revenue 200,000(Provided services on Account)Jan. 1 No Journal Entry required (Paid salaries for the year)
Jan. 1 Uncollectible Accounts Expense 2,000 Allowance for Doubtful Accounts 2,000(Adjusting the accounts to reflect management's expectations)
Jan. 1 Cash 150,000 Accounts Receivable 150,000(Collection of Cash from Accounts Receivable)b. T-Accounts for the events are as follows:
c. The income statement, balance sheet, and statement of cash flows for Year 1 are as follows:Income Statement for Year 1 Particulars Amounts ($)Service Revenue 200,000 Less: Uncollectible Accounts Expense 2,000 Net Service Revenue 198,000 Salaries Expense 30,000
Net Income 168,000 Balance Sheet as of December 31, Year 1 Particulars Amounts ($)Assets Cash 120,000 Accounts Receivable 50,000 Less:
Allowance for Doubtful Accounts 2,000 Inventory 2,000 Total Assets 170,000 Liabilities and Equity Accounts Payable 20,000 Equity:Capital Stock 150,000 Retained Earnings (Starting from Scratch)0 Total Equity 150,000 Total Liabilities and Equity 170,000 Statement of Cash Flows for Year 1 Particulars Amounts ($)Cash Flows from Operating Activities:
Collection of Cash from Accounts Receivable 150,000 Cash Received from Customers 200,000 Less: Salaries Paid(30,000)Net Cash Flows from Operating Activities 320,000 Cash Flows from Investing Activities:
Purchase of Inventory(2,000)Net Cash Flows from Investing Activities(2,000)Cash Flows from Financing Activities:Collection of Capital Stock 150,000 Net Cash Flows from Financing Activities 150,000 Net Increase in Cash Flows 468,000 Add:
Cash Balance, Jan. 1(348,000)Cash Balance, Dec. 31, Year 1120,000 Note: Accounts Receivable balance as of December 31, Year 1 = $50,000 - $150,000 = $0. The inventory account is not affected in any of the events, so the purchase of inventory account will have a balance of $0.
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Calculate break-even point: Your company sells t-shirts at music concerts. You sell your shirts for $35 each. You pay $10 for each t-shirt, and $1 to print the band's logo and tour dates on each shirt. You pay the band a royalty (licensing fee) of $1 per shirt sold. You pay the venue $100 in rent for your kiosk, and you pay your room-mate $100 to help you sell shirts. Question 5) How many shirts will you need to sell to break even?
You will need to sell 9 shirts to break even.
In order to calculate break-even point, the following formula can be used:
Break-even point (in units) = Fixed costs ÷ (Price per unit − Variable costs per unit)
Where Fixed costs are the costs that do not vary with the quantity of output produced (e.g. rent, salaries, etc.), Variable costs are costs that vary with the quantity of output produced (e.g. materials, commissions, etc.), and
Price per unit is the selling price of one unit.
The given information in the question is as follows:
Selling price per shirt (Price per unit) = $35
Variable cost per shirt = $10 + $1 + $1 = $12 (cost of t-shirt, printing band's logo, and licensing fee)
Fixed costs = $100 + $100 = $200 (cost of rent and paying roommate)
Putting these values in the formula:
Break-even point (in units) = $200 ÷ ($35 − $12)
Break-even point (in units) = 8.33 (rounded up to 9 shirts)
Therefore, you will need to sell 9 shirts to break even.
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Current Attempt in Progress Westerville Corp. has collected the following data concerning its maintenance costs for the past six months: Units Produced Total Cost July 17,400 $29,860 August 32,800 48,
The fixed cost for maintenance is $8,980, and the variable cost per unit is $1.20. Given data:Units Produced July: 17,400; Total Cost: $29,860 Units Produced August: 32,800; Total Cost: $48,420.
The total cost equation is given by:
Total cost = Fixed cost + (Variable cost per unit × Number of units produced). Using the given data, we can find the fixed and variable costs for maintenance as follows:
Step 1: Find the variable cost per unit
Variable cost per unit = (Total cost in August – Total cost in July) ÷ (Units produced in August – Units produced in July) = ($48,420 – $29,860) ÷ (32,800 – 17,400) = $18,560 ÷ 15,400 = $1.20
Step 2: Find the fixed cost
Fixed cost = Total cost in July – (Variable cost per unit × Units produced in July) = $29,860 – ($1.20 × 17,400) = $29,860 – $20,880 = $8,980
Therefore, the fixed cost for maintenance is $8,980, and the variable cost per unit is $1.20.
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In an experiments on preparedness, bedford and anger found that it is easier for pigeons to learn to avoid shock _____.
In their experiments on preparedness, Bedford and Anger found that it is easier for pigeons to learn to avoid shock stimuli that are biologically relevant or naturally associated with danger. This concept of preparedness suggests that animals, including pigeons, are predisposed to learn certain associations more readily than others based on evolutionary factors.
The term "preparedness" refers to the inherent predisposition of organisms to acquire certain associations or behaviors more easily than others due to their evolutionary history. In the case of the experiments conducted by Bedford and Anger, they observed that pigeons showed a greater ease in learning to avoid shock when the stimuli used were biologically relevant. For example, pigeons may have a natural predisposition to associate certain cues, such as predator-like stimuli or stimuli resembling food poisoning, with the potential for harm or danger.
This finding aligns with the broader understanding of preparedness in learning theory, which suggests that animals are more likely to form associations between stimuli that are evolutionarily significant or relevant to their survival. This is thought to be a result of natural selection favoring organisms that can quickly and effectively learn to avoid threats and dangers in their environment.
The experiments by Bedford and Anger demonstrate that pigeons are more readily able to form associations between certain stimuli and the possibility of receiving a shock. The ease of learning in these situations suggests that pigeons have a biological predisposition to recognize and respond to specific cues associated with potential harm or danger.
Overall, the experiments on preparedness conducted by Bedford and Anger highlight the importance of considering an organism's evolutionary history and biological predispositions when studying learning and behavior. Understanding how animals naturally respond to certain stimuli can provide valuable insights into their survival mechanisms and shed light on the adaptive nature of learning processes.
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