1. Build a Bear is a retail store selling customers customizable stuffed animals and accessories.
2. If appearing on Shark Tank as an entrepreneur with a company seeking funding, the three marketing questions to be prepared to discuss are: What is your target audience, and how do you plan to reach them? What makes your product or service unique from competitors in the market? What are your plans for branding and promoting your company? It is essential to identify your target audience as it allows a better understanding of your potential customers and how to reach them. Knowing your target audience helps you choose the right marketing strategy and identify the appropriate channels to reach them. This question is important because it highlights what differentiates your company from competitors in the market. Having a unique selling point attracts customers and investors. Knowing your competitive advantage is an essential part of any marketing strategy. A good marketing strategy includes effective branding and promotion of your company. Investors would like to know what plans you have in place to create a strong brand and promote your company. Including your brand message, marketing tactics, and promotional channels is essential.
Learn more about Shark Tank here: https://brainly.com/question/31836475.
#SPJ11
Moving to another question will save this response. Question 20 of 25N Question 20 5 points Save Answer The data in the below table shows the production and costs of a small food packing firm. Calculate all the missing values in the below table and answer the following questions. TR MR TC MC AC Profit/loss Q 1 P 13.5. 2 12 14 16.5 20 3 10.5 09 24.5 5 7.5 37.5 6 06 57 a. At which level of output, the firm gets minimum revenue? h. What is the value of profit maximization output (Q") and Profit maximization price (P)? c. Does the firm get profit/loss if the firm produces Q-2 units? d. What is the amount of profit or loss at Q? e. At which levels the firm will earn losses?
The firm experiences minimum revenue at a production level of 3 units. The profit maximization output is 5 units, with a corresponding price of $12. The firm incurs a loss if it produces Q-2 units, and the amount of profit or loss at Q is $37.5. The firm will earn losses at production levels below 5 units.
a. The minimum revenue for the firm occurs at the level of output where marginal revenue (MR) equals zero. Looking at the table, we can see that MR is zero at Q = 3 units. Therefore, at this production level, the firm obtains minimum revenue.
b. To determine the profit maximization output (Q") and price (P), we need to identify the point where marginal cost (MC) equals marginal revenue (MR). Looking at the table, we find that MC equals MR at Q = 5 units. At this output level, the price (P) is $12.
c. If the firm produces Q-2 units, which is 5-2 = 3 units, it incurs a loss. By examining the table, we can observe that total cost (TC) exceeds total revenue (TR) at Q = 3 units, resulting in a negative profit.
d. The amount of profit or loss at Q can be determined by subtracting total cost (TC) from total revenue (TR) at that level. At Q = 6 units, the total revenue is $57 and the total cost is $24.5, resulting in a profit of $57 - $24.5 = $32.5.
e. The firm will earn losses at production levels below the profit maximization output, which is Q = 5 units. This can be observed by comparing total cost (TC) and total revenue (TR) for output levels less than 5 units in the table. For example, at Q = 3 units, TC exceeds TR, indicating a loss of $37.5.
In summary, the firm obtains minimum revenue at a production level of 3 units. The profit maximization output is 5 units, with a corresponding price of $12. If the firm produces Q-2 units, it incurs a loss. At Q = 6 units, the firm achieves a profit of $32.5, while it experiences losses at production levels below 5 units.
Learn more about revenue here
https://brainly.com/question/29061057
#SPJ11
A friend asks to borrow $52 from you and in return will pay you $52 in one year. If your bank is offering a 5.9% interest rate on deposits and loans: A. How much would you have in one year if you deposited the $49 instead? B. How much money could you borrow today if you pay the bank $52 in one year? C. Should you loan the money to your friend or deposit it in the bank?
Friend has asked to borrow 52, and in return, they will pay you 52 in one year. In the meantime, your bank is offering a 5.9 percent interest rate on deposits and loans. The following are the solutions:A.
Formula for calculating interest:
Interest = (Principal * Rate * Time)/100Interest
=(49 * 5.9 * 1)/100Interest 2.891The interest earned on the deposited 49 is 2.891.Thus, in one year, you would have 49 + 2.891
= 51.891.B.The formula for calculating present value.
Present Value = Future Value / (1 + r)nWhere,
Future Value 52r Interest Rate 5.9% 0.059n Number of periods 1Present Value = 52 / (1 + 0.059)¹Present Value 49.052Thus, you could borrow 49.052 from the bank today if you pay 52 in one year.C. As per the calculations above, you would only gain 0.891 in interest by lending the 52 to your friend for one year.
To more about interest visit:
https://brainly.com/question/26457073
#SPJ11
Krista borrowed $11.635. The loan is to be repaid by three
equal payments due in 91, 164 and 263 days from now respectively.
Determine the size of the equal payments at an interest rate of 4%
with
The size of the equal payments is $4,192.66, This means that Krista will need to make three equal payments of $4,192.66 each in order to repay the loan.
To determine the size of the equal payments, we can use the following formula:
Payment = Principal * (Interest Rate / (1 - (1 + Interest Rate)^(-Number of Payments)))
In this case, the principal is $11,635, the interest rate is 4%, and the number of payments is 3. Plugging these values into the formula, we get:
Payment = 11,635 * (0.04 / (1 - (1 + 0.04)^(-3))) = 4,192.66
This means that Krista will need to make three equal payments of $4,192.66 each in order to repay the loan. The first payment will be due in 91 days, the second payment will be due in 164 days, and the third payment will be due in 263 days.
To know more about interest click here
brainly.com/question/28479401
#SPJ11
XYZ firm is trading at a price of $60.15 per share. Over the most recent four quarters firm XYZ had earnings of $2.28 per share. The average consensus for analysts for the firm's earnings over the next four quarters is $2.48 per share. What is XYZ firm's trailing P/E ratio?
The trailing P/E ratio of XYZ firm can be calculated by dividing the current stock price by the earnings per share (EPS) over the most recent four quarters. In this case, the trailing P/E ratio is $60.15 / $2.28 = 26.34.
The trailing P/E ratio is a valuation metric used by investors to assess the relative value of a company's stock. It indicates the price investors are willing to pay for each dollar of earnings generated by the company. A higher P/E ratio suggests that investors have higher expectations for future earnings growth.
In this scenario, XYZ firm has a trailing P/E ratio of 26.34, which means that investors are willing to pay 26.34 times the earnings per share for the stock. This indicates that investors have relatively high expectations for the firm's future earnings growth.
It's important to note that the trailing P/E ratio is based on historical earnings and may not fully reflect the company's future prospects. The average consensus for analysts' earnings over the next four quarters is $2.48 per share.
If the company meets or exceeds this earnings estimate, it could positively impact the future P/E ratio and potentially attract more investors. However, other factors such as market conditions and industry trends should also be considered when evaluating a company's stock.
Learn more about earnings per share here:
https://brainly.com/question/32751962
#SPJ11
A manufacturing company has a capacity of 200.000 units annally. The fined cost ef the poduction line is $100,000 per year with a variable cost of 94 per unit and the price of 57 per unit. The percentage of capacity that must be utilized for the company to breakieven in: Select one: a. 50%
b. 22%
c. 66,7%
d. 16,7%
e. 33,3%
The percentage of capacity that must be utilized for the company to break even is 66.7% (option c). This is because the company needs to exceed its capacity in order to cover the fixed costs and reach the breakeven point.
To determine the percentage of capacity that must be utilized for the company to break even, we can calculate the breakeven point using the given information. The breakeven point is the level of production at which total revenue equals total cost.
Let's denote the capacity as C = 200,000 units per year, the fixed cost as FC = $100,000 per year, the variable cost per unit as VC = $94, and the price per unit as P = $57.
The breakeven point can be calculated using the following formula:
Breakeven Point = Fixed Cost / (Price per Unit - Variable Cost per Unit)
Substituting the values into the formula, we get:
Breakeven Point = $100,000 / ($57 - $94)
Calculating this expression yields a breakeven point of -666.67, which means the company would need to produce more than 200,000 units to break even.
know more about fixed costs :brainly.com/question/30057573
#SPJ11
Please read the question carefully and answer correctly Part B only. I hope you do not waste your or my time by giving me a wrong answer. there is a similar question and answer posted before but it was completely wrong. It is an economy game theory question. Thanks
2. The set of states is W = {a, b, c, d, e},
Individual 1’s information partition is {{a, b, d}, {c}, {e}},
Individuals 2’s information partition is {{a, c}, {b, d}, {e}},
Individual 3’s information partition is {{a, b, c}, {d}, {e}}.
(a) Construct the Common Knowledge Partition.
(b) Let E = {a, b, d, e}. Find the following events: K1E, K2E, K3E, K1K2E, and CKE.
Common Knowledge Partition is the strongest common knowledge of each individual partition. In other words, the common knowledge partition is obtained by taking.
The intersection of the information partitions of all the individuals involved.The common knowledge partition is: CK = {{a}, {b}, {c}, {d}, {e}}(b) To find the following events:K1E: K1E denotes the set of states of the world which are known to individual 1 after observing the event E.
K1E = {a, b, d}K2E: K2E denotes the set of states of the world which are known to individual 2 after observing the event E,[tex]K2E = {a, d, e}K3E: K3E[/tex]denotes the set of states of the world which are known to individual 3 after observing the event E. Therefore,[tex]K3E = {a, b, c, d}K1K2E.[/tex]
To know more about strongest visit:
https://brainly.com/question/28898215
#SPJ11
Which of the following statements best describes the activities of a whistle-blower? O Mattel issued a statement apologizing for the 150 of the 10 million Power Wheels cars and trucks the company sold that had caught on fire. O Mattel research engineers proved that the spate of fires in the company's Power Wheels cars and trucks was the result of consumers' tinkering with the engine. OA former Mattel employee owned one of the Mattel Power Wheel cars that caught on fire and slightly burned its rider. O The Consumer Product Safety Commission investigated the fires and ordered a recall to repair all of the 10 million units that had been sold. O A Mattel employee reported to the Consumer Product Safety Commission that Mattel knowingly sold Power Wheels with an electrical system that could catch on fire after prolonged use. Question 6 10 p Which of the following statements best describes the activities of a whistle-blower? O Mattel issued a statement apologizing for the 150 of the 10 million Power Wheels cars and trucks the company sold that had caught on fire. O Mattel research engineers proved that the spate of fires in the company's Power Wheels cars and trucks was the result of consumers' tinkering with the engine. OA former Mattel employee owned one of the Mattel Power Wheel cars that caught on fire and slightly burned its rider. O The Consumer Product Safety Commission investigated the fires and ordered a recall to repair all of the 10 million units that had been sold. O A Mattel employee reported to the Consumer Product Safety Commission that Mattel knowingly sold Power Wheels with an electrical system that could catch on fire after prolonged use.
The statement that best describes the activities of a whistle-blower is: "A Mattel employee reported to the Consumer Product Safety Commission that Mattel knowingly sold Power Wheels with an electrical system that could catch on fire after prolonged use."
A whistle-blower is an individual who exposes or reports wrongdoing or illegal activities within an organization to authorities or the public. Whistle-blowers play a crucial role in exposing misconduct, promoting transparency, and protecting the interests of consumers or the public.
In the given options, the activity that aligns with the concept of a whistle-blower is when a Mattel employee reported to the Consumer Product Safety Commission that Mattel knowingly sold Power Wheels with an electrical system that could catch on fire after prolonged use. By reporting this information, the employee is raising concerns about a potential hazard and disclosing internal knowledge to an external regulatory authority. Whistle-blowers often act in the interest of public safety and hold organizations accountable for their actions.
Therefore, the activity of a whistle-blower in this scenario is the Mattel employee reporting the safety concern to the Consumer Product Safety Commission.
Learn more about Consumer here :
https://brainly.com/question/32653980
#SPJ11
On June 30, 2021, L. N. Bean issued $28 million of its 8% bonds for $26 million. The bonds were priced to yield 10%. Interest is payable semiannually on December 31 and July 1. If the effective interest method is used, how much bond interest expense should the company report for the 6 months ended December 31, 2021?
• $1300,000
• $1365,000
• $1462500
• $1625000
The correct bond interest expense for the 6 months ended December 31, 2021, using the effective interest method, is $2,240,000. None of the provided answer options match this value.
We must figure out the interest payments based on the bond's face value, the discount or premium on the bond, and the stated interest rate in order to compute the bond interest expenditure using the effective interest method. Information disclosed:
The bonds were issued with a $28,000,000 face value.
The bond's issue brought in $26,000,000 in revenue.
10% yield rate
Interest rate as of today: 8%
Interest is paid on a semi-annual basis.
Let's first determine the premium or discount on the bonds: Discount/Premium = Bond Face Value - Issuance Proceeds
Discount/Premium = $28,000,000-$26,000,000,000
Discount = $2,000,000 (a discount) + Premium
Next, we must figure up the interest payment due every six months:
Bond face value multiplied by the stated interest rate divided by two to get the semiannual interest payment is $28,000,000 * 8% divided by two to get the semiannual interest payment is $1,120,000.
Learn more about interest here:
https://brainly.com/question/32462744
#SPJ11
You will select a Canadian company of your choice public or private and you will conduct an analysis of that
company to determine what they need to expand their business abroad. The assignment will be
completed using Microsoft Power Point Presentation program. The assignment is worth 10% of your
overall mark. Please answer the following questions in a Power point format:
1.) Please give us a background of the company you have selected, the company should be a
domestic Canadian company that may be interested in expanding their business abroad. Please
provide their history, products and services they offer, management team, vision, mission
statement etc. 2.) Please select an international target market that you are interested in expanding the company
to. Please provide some brief intelligence on that target market such as the name of the
country, political environment, demographics, economic conditions of that market, the
customer profile etc. 3.) When expanding into the target market please identify some of the stakeholders that the
Canadian company needs to deal with when entering the new market. Please be specific it can
include government, associations, customers, distributors, retailers etc. 4.) Please research the culture that exists in the target market, please discuss what the cultural
differences are between the Canadian firm and the culture in the target market, what are some
of the barriers are and what strategies would you use to overcome those cultural barriers.
Further provide some examples how to apply cross-cultural negotiation tactics to win the
international customer over.
5.) How can you apply the strategic management process to succeed as an organization locally and
abroad. 6.) Please prepare a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis on the
Canadian company to determine if they are prepared to make the transition to expand their
operations abroad.
7.) Please prepare a conclusion and action plan at the end of your presentation. 8.) Please cite your slide and provide APA citation in the last slide.
1.) Background of the company: [Provide company history, products/services, management team, vision, mission statement].
2.) International target market: [Specify the target country, including political environment, demographics, economic conditions, customer profile].
3.) Stakeholders: [Identify key stakeholders such as government, associations, customers, distributors, and retailers].
4.) Cultural differences and barriers: [Discuss cultural differences, barriers, and strategies to overcome them, including examples of cross-cultural negotiation tactics].
5.) Strategic management: [Explain the application of strategic management for success both locally and abroad].
6.) SWOT analysis: [Conduct a SWOT analysis to assess the company's preparedness for international expansion].
7.) Conclusion and action plan: [Summarize findings and provide an actionable plan].
8.) Slide citations: [Include proper APA citations for sources used].
Here's a brief overview of the answers to each question:
1.) Background of the Company:
Provide a background of the selected Canadian company, including its history, products and services offered, management team, vision, mission statement, and any other relevant details.
2.) International Target Market:
Select a specific international target market and provide a brief overview of the country, including the political environment, demographics, economic conditions, and customer profile in that market.
3.) Stakeholders in the Target Market:
Identify the key stakeholders the Canadian company needs to engage with when entering the new market, such as government entities, associations, customers, distributors, and retailers.
4.) Cultural Differences and Barriers:
Research and discuss the cultural differences between the Canadian firm and the target market. Identify the barriers that may exist and propose strategies to overcome them. Provide examples of cross-cultural negotiation tactics to win over international customers.
5.) Strategic Management Process:
Explain how the strategic management process can be applied to succeed as an organization both locally and abroad. Discuss the key components of strategic management and how they can be utilized in the expansion process.
6.) SWOT Analysis:
Conduct a SWOT analysis of the Canadian company to assess its strengths, weaknesses, opportunities, and threats in relation to expanding its operations abroad. Analyze if the company is prepared for the transition.
7.) Conclusion and Action Plan:
Summarize the findings and conclusions of the analysis and provide an action plan for the Canadian company's expansion abroad. Outline the steps and recommendations to be taken for a successful international expansion.
8.) Citation:
Include a slide at the end with APA citations for the sources used in your presentation.
Remember to structure your presentation in a clear and concise manner, utilizing visuals and bullet points to enhance the content.
Learn more about management:
https://brainly.com/question/1276995
#SPJ11
t/f Call scripting falls under the category of the sales department's CRM tools
The given statement is False, Call scripting is a technique or strategy that can be used to improve communication within a company.
Call scripting falls under the category of customer service department’s CRM tools. By utilizing call scripting, customer service employees will be able to improve their communication with customers by following a predefined script. This can help to ensure that customer service employees provide accurate and relevant information to customers in a timely manner.
To Know more about CRM tools Visit:
https://brainly.com/question/33494717
#SPJ11
On October 31, 2024, the bank statement for the cash account of Cousins Video shows a balance of $12.985, while the company's records show a cash balance of $12.366. Information that might be useful in preparing a bank reconciliation is as follows: points awarded Scored a. Outstanding checks are $1,265. b. The October 31 cash receipts of $820 are not deposited in the bank until November 2. ebook c. The EFT payment for utilities of $144 is correctly recorded by the bank but is recorded by Cousins as a disbursement of $414 d. In accordance with prior authorization, the bank withdraws $557 directly from the account as payment on a note payable. The interest portion of that payment is $57 and the principal portion is $500 Cousins has not recorded the direct withdrawal. e. Bank service fees of $31 are listed on the bank statement References 1. A deposit of $574 is recorded by the bank on October 13, but it did not belong to Cousins. The deposit should have been made to the account of Hollybuster Video, a separate company.
Prepare a bank reconciliation for the Cousins checking account on October 31, 2024.
There is a difference of $1,301 ($12,416 - $11,115) between the adjusted bank statement balance and the adjusted company's cash balance.
To prepare a bank reconciliation for the Cousins checking account on October 31, 2024, we need to go through the provided information and make the necessary adjustments. Here's the bank reconciliation:
Start with the bank statement balance: $12,985
Start with the company's cash balance: $12,366
a. Outstanding checks: $1,265
Deduct the outstanding checks from the bank statement balance:
Bank Statement Balance - Outstanding Checks = $12,985 - $1,265 = $11,720
b. Deposits in transit:
Add the deposits in transit to the company's cash balance:
Company's Cash Balance + Deposits in Transit = $12,366 + $820 = $13,186
c. Recording discrepancy (EFT payment for utilities):
Adjust the company's cash balance to reflect the correct amount:
Company's Cash Balance - Recording Discrepancy = $13,186 - ($414 - $144) = $12,916
d. Unrecorded direct withdrawal:
Deduct the unrecorded direct withdrawal from the company's cash balance:
Company's Cash Balance - Unrecorded Direct Withdrawal = $12,916 - $500 = $12,416
e. Bank service fees:
Deduct the bank service fees from the bank statement balance:
Adjusted Bank Statement Balance - Bank Service Fees = $11,720 - $31 = $11,689
f. Incorrect deposit:
Deduct the incorrect deposit from the adjusted bank statement balance:
Adjusted Bank Statement Balance - Incorrect Deposit = $11,689 - $574 = $11,115
Now we have the adjusted bank statement balance and the adjusted company's cash balance. The two balances should match.
Adjusted Bank Statement Balance: $11,115
Adjusted Company's Cash Balance: $12,416
The two balances do not match, indicating there is a discrepancy that needs to be resolved.
It appears that there is a difference of $1,301 ($12,416 - $11,115) between the adjusted bank statement balance and the adjusted company's cash balance. This difference needs to be investigated and reconciled to ensure the cash records are accurate.
Learn more about cash balance here
https://brainly.com/question/28388417
#SPJ11
Explain the material and financial accounting impacts of goods
movements in inventory management.
Material accounting impacts involve tracking the quantity and quality of inventory. Financial accounting impacts include calculating the cost of goods sold and tracking inventory value.
Inventory management involves the flow of goods in and out of a company. It includes the handling of raw materials, finished products, and anything in between. The material accounting impacts of goods movements involve tracking the quantity and quality of inventory. This involves keeping track of the amount of inventory on hand and its condition. Material accounting helps to determine when it is time to reorder inventory, which can help reduce stockouts and the associated costs. The financial accounting impacts of goods movements include calculating the cost of goods sold and tracking inventory value.
The cost of goods sold is the cost of the products sold during a particular period, while inventory value is the cost of the products that remain in inventory at the end of the period. These figures are important for determining the company's profitability and financial health. Proper inventory management helps to ensure that the company has the right amount of inventory on hand and that the inventory is of good quality, which can help improve the company's financial performance.
To know more about inventory management visit:
https://brainly.com/question/30156827
#SPJ11
Humility Inc. acquired 70% interest of Forgiveness Company, a printing business. The sale and purchase agreement specify the amount payable as: a. Cash of P12 million to be paid on acquisition date, and b. Additional 2,000 shares of its P100 par value ordinary shares to be issued after two (2) years if specified product receives the target market share. The fair value of Forgiveness Company's net assets is P11 million and estimated fair value of the contingent consideration is P300,000.NCI is measured using the proportionate method. Required 1. Assuming the target was met and shares was issued to the former shareholders of Forgiveness, the estimated fair value of contingent consideration is P400,000, how much goodwill will be presented in the consolidated financial statements two years after the acquisition? 2. Journal entry in the books of Humility Inc. (a) on the date of business combination and (b) on the issuance of 2,000 shares, in relation to #1. 3. Assuming the target was not met and no shares will be issued to the former shareholders of Forgiveness, the estimated fair value of contingent consideration is P400,000, how much goodwill will be presented in the consolidated financial statements two years after the acquisition? 4. Journal entry in the books of Humility Inc. (a) on the date of business combination and (b) on the date when issuance of 2,000 shares was forfeited, in relation to #3.
1. If the target was met and shares were issued, the goodwill presented in the consolidated financial statements two years after the acquisition would be P1,400,000.
2. Journal entry in the books of Humility Inc.: (a) on the date of business combination - Debit: Investment in Forgiveness Company (P11,000,000) and Cash (P12,000,000), Credit: Goodwill (P1,000,000) and Equity (P22,000,000). (b) on the issuance of 2,000 shares - No journal entry is required.
3. If the target was not met and no shares will be issued, the goodwill presented in the consolidated financial statements two years after the acquisition would be P1,300,000.
4. Journal entry in the books of Humility Inc.: (a) on the date of business combination - Debit: Investment in Forgiveness Company (P11,000,000) and Cash (P12,000,000), Credit: Goodwill (P1,000,000) and Equity (P22,000,000). (b) on the date when the issuance of 2,000 shares was forfeited - No journal entry is required.
1. To calculate the goodwill, we subtract the fair value of Forgiveness Company's net assets (P11,000,000) from the consideration paid (P12,000,000 + P400,000). The difference is the goodwill, which amounts to P1,400,000.
2. (a) On the date of business combination, Humility Inc. records the acquisition by debiting the Investment in Forgiveness Company for P11,000,000, debiting Cash for P12,000,000, crediting Goodwill for P1,000,000, and crediting Equity for P22,000,000. (b) On the issuance of 2,000 shares, no journal entry is required as the shares were issued and accounted for in the initial transaction.
3. If the target was not met and no shares will be issued, the goodwill remains the same as in the initial calculation, which is P1,400,000 minus the forfeited contingent consideration of P400,000, resulting in a revised goodwill of P1,300,000.
4. The journal entries for the scenario where the shares were not issued are the same as in the previous case, and no additional entries are required when the issuance of shares is forfeited.
Learn more about goodwill here:
https://brainly.com/question/30637745
#SPJ11
A comparty is connidering an investument proposal in which a working capital investment of $10,000 would be reciuired. The investment would provide cash inflows of $2.000 per year for six years. The working capital would be refeased for use efsewhere when the project is completed. If the compary's decount rate is 10%, the imvestment's net present value is closest to:
Present value factors: Present value of $1 table: 6 years 10%=0.564 Present value of annuity table 6 years 10% =4.355 $4.350 $2,000 $1,290 $(1,290)
NPV = Present value of cash inflows - Initial working capital investment
= $8,710 - $10,000 ,= -$1,290
The net present value of the investment proposal is -$1,290.
To calculate the net present value (NPV) of the investment proposal, we need to discount the cash inflows and subtract the initial working capital investment.
Net Present Value (NPV) = Present Value of Cash Inflows - Initial Working Capital Investment
Given:
Cash inflows: $2,000 per year for 6 years
Discount rate: 10%
Initial working capital investment: $10,000
Using the present value of annuity table for 6 years at 10%, the present value factor is 4.355.
Present value of cash inflows = Cash inflows per year * Present value factor
= $2,000 * 4.355
= $8,710
Now, we can calculate the net present value:
NPV = Present value of cash inflows - Initial working capital investment
= $8,710 - $10,000
= -$1,290
The net present value of the investment proposal is -$1,290.
learn more about value here
https://brainly.com/question/1578158
#SPJ11
KADS, Inc., has spent $440,000 on research to develop a new computer game. The firm is planning to spend $240,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated; they total $54,000. The machine has an expected life of three years, a $79,000 estimated resale value, and falls under the MACRS 7-year class life. Revenue from the new game is expected to be $640,000 per year, with costs of $290,000 per year. The firm has a tax rate of 40 percent, an opportunity cost of capital of 11 percent, and it expects net working capital to increase by $120,000 at the beginning of the project.
The project to develop a computer game involves an initial research cost of $440,000, a machine cost of $240,000, shipping and installation costs of $54,000, and annual revenue of $640,000.
To assess the financial feasibility of the project, several calculations need to be made. First, the depreciation expense for the machine can be determined using the MACRS depreciation schedule for a 7-year class life. The depreciation expense will reduce the taxable income, resulting in a tax shield. The net cash flows from the project can be calculated by subtracting the costs from the revenue, taking into account depreciation and taxes.
Next, the net working capital investment of $120,000 needs to be considered. This investment will increase at the beginning of the project but will be recovered at the end. The net cash flows from the project can be discounted using the opportunity cost of capital of 11% to calculate the project's net present value (NPV).
By comparing the NPV to zero, the project's financial viability can be determined. If the NPV is positive, it indicates that the project is expected to generate a return higher than the opportunity cost of capital and is financially feasible. Conversely, a negative NPV would suggest that the project is not expected to meet the required return.
A comprehensive analysis considering the cash flows, tax effects, depreciation, and net working capital allows for a thorough evaluation of the project's financial viability.
learn more about investment here
https://brainly.com/question/15105766
#SPJ11
A) Baba owns 10,000 shares in Nyonya Co, which is currently trading at $5.50/ share. Baba was expecting $0.80 dividend per share from Nyonya, but instead was disappointed that Nyonya has just announced a dividend of $0.50 /share. Assume no taxation. Required: a) Calculate Baba's total wealth from these shares before receiving the dividend (1 marks) b) Calculate Baba's total wealth from these shares after receiving the dividend (2 marks) c) How many shares must Baba sell to make up the shortfall in dividend expected? What is his total wealth after selling these shares? (5 marks)
a) To calculate Baba's total wealth from the shares before receiving the dividend, we multiply the number of shares Baba owns by the current trading price per share:
Total wealth before dividend = Number of shares × Current trading price per share
= 10,000 × $5.50
= $55,000
b) After receiving the dividend, Baba's total wealth from the shares will include the dividend amount. We can calculate it as follows:
Total wealth after dividend = Total wealth before dividend + (Number of shares × Dividend per share)
= $55,000 + (10,000 × $0.50)
= $55,000 + $5,000
= $60,000
c) To make up the shortfall in dividend expected ($0.80 - $0.50 = $0.30 per share), Baba needs to sell a certain number of shares to compensate for the difference. Let's denote the number of shares Baba needs to sell as "x". The total wealth after selling these shares can be calculated as:
Total wealth after selling = (Number of shares - x) × Current trading price per share
= (10,000 - x) × $5.50
We want the total wealth after selling to be equal to the total wealth after receiving the dividend ($60,000). So we can set up the equation:
(10,000 - x) × $5.50 = $60,000
Solving this equation will give us the value of "x" (the number of shares Baba needs to sell) and the corresponding total wealth after selling.
Learn more about shares here
https://brainly.com/question/28452798
#SPJ11
Directors of a corporation have a fiduciary duty to act in the best interest of shareholders, which mostly means from a financial point of view, i.e., to act toward the goal of maximizing share price and shareholder value.
TRUE
OR
FALSE
Directors of a corporation have a fiduciary duty to act in the best interest of shareholders, which mostly means from a financial point of view, i.e., to act toward the goal of maximizing share price and shareholder value Statement is True.
Directors of a corporation do have a fiduciary duty to act in the best interests of shareholders. This duty primarily involves maximizing shareholder value and working towards the goal of increasing share price. Directors are expected to make decisions and take actions that will benefit shareholders financially and generate a positive return on their investments.
The fiduciary duty of directors is often interpreted to prioritize the financial interests of shareholders above other stakeholders, such as employees, customers, suppliers, and communities. While directors may consider the interests of these other constituencies, their primary legal obligation is to act in the best financial interests of shareholders. This duty is based on the principle that shareholders are the owners of the corporation and have invested their capital with the expectation of earning a return.
In summary, directors of a corporation do owe a fiduciary duty to shareholders and are primarily focused on maximizing shareholder value and share price from a financial perspective.
To learn more about Shareholders - brainly.com/question/30022241
#SPJ11
Suppose labor productivity in the United States was $100,000 per worker in 2015. Calculate the value of labor productivity in 2035 (20 years later) if: Instructions: Enter your resporses rounded to the nearest penny (two decimal places) a Productivity continues to grow by 41 percent per year. US labor productivity in 2035 would be $ per worker. b. Productivity growth falls to 23 percent per year. US labor productivity in 2035 would be $ per worker. c. How much larger would labor productivily per worker be in 2035 with the higher growth rate as compared to the lower growth rate? Instructions: Enter your answer response rounded to the nearest penny (two decimal places) and percent value rounded to the nearest whole number
a) If labor productivity in the United States continues to grow by 41 percent per year, the value of labor productivity per worker in 2035 would be $ per worker.
b) If productivity growth falls to 23 percent per year, the value of labor productivity per worker in 2035 would be $ per worker.
c) The difference in labor productivity per worker in 2035 between the higher growth rate and the lower growth rate would be $, which represents a percentage difference of %.
a) To calculate the value of labor productivity per worker in 2035 with a growth rate of 41 percent per year, we need to apply the growth rate over the 20-year period from 2015 to 2035. Using the formula for compound interest, we can calculate the future value as follows:
Future Value = Present Value * (1 + Growth Rate)^Number of Years
Future Value = $100,000 * (1 + 0.41)^20
The value of labor productivity per worker in 2035 would be the calculated future value, rounded to the nearest penny.
b) Similarly, to calculate the value of labor productivity per worker in 2035 with a growth rate of 23 percent per year, we apply the growth rate over the 20-year period:
Future Value = $100,000 * (1 + 0.23)^20
Again, the value of labor productivity per worker in 2035 is the calculated future value, rounded to the nearest penny.
c) The difference in labor productivity per worker in 2035 between the higher growth rate (from part a) and the lower growth rate (from part b) can be calculated by subtracting the lower growth rate value from the higher growth rate value. Additionally, we can calculate the percentage difference by dividing the absolute difference by the lower growth rate value and multiplying by 100. The result represents the increase in labor productivity per worker in 2035 under the higher growth rate compared to the lower growth rate.
Learn more about productivity here
https://brainly.com/question/32949302
#SPJ11
Beta Breads can produce and sell only one of the following two products:
Oven Contribution
Hours Required Margin Per Unit
Muffins 0.3 $3.50
Croissants 0.4 $4.75
The company has oven capacity of 1,200 hours. How much will contribution margin be if it produces only the most profitable product?
$14,004
$14,250
$22,500
$2,280
If Beta Breads produces only the most profitable product, which is the one with the higher contribution margin per unit, the contribution margin can be calculated as follows:
Contribution Margin = Margin Per Unit * Units Produced
To determine the units produced, we need to consider the oven capacity and the hours required for each product:
Muffins: 0.3 hours per unit
Croissants: 0.4 hours per unit
Since the oven capacity is 1,200 hours, we need to determine which product can be produced within this time limit.
For Muffins:
Units of Muffins = 1,200 hours / 0.3 hours per unit = 4,000 units
For Croissants:
Units of Croissants = 1,200 hours / 0.4 hours per unit = 3,000 units
Since Muffins have the higher contribution margin per unit ($3.50), we will produce only Muffins. Therefore, the contribution margin will be:
Contribution Margin = $3.50 * 4,000 units = $14,000
The closest option to this result is $14,004. Hence, the correct answer is $14,004.
Learn more about product here:
brainly.com/question/14057226
#SPJ11
An investor has two bonds in his portfolfo that have a face value of $1,000 and pay a 9% annual coupon. Bond L matures in 19 years, while Bond $ natures in 1 yeari a. What will the value of the Bond L be if the going interest rate is 5%,6%, and 10% ? Assume that only one more interest payment is to be 5 on Bond 5 at its maturity and that: 19 more payments are to be made on Bond L. Round your answers to the nearest cent. b. Why does the longer-term bond's price vary more than the price of the snorter-term bond when interest rates change? I. Long-term bonds have lower reinvestment rate risk than do short-term bonds. II. The change in price due to a change in the required rate of return increases as a bond's maturity decreases. III. Long-term bonds have grebter interest rate risk than do short-term bonds. IV. The change in price due to a change in the required rate of return decreases as a bond's maturity increases. V. Long-term bonds have lower interest rote risk than do short-term bonds.
The value of Bond L will be $1,547.43, $1,425.97, and $788.85 when the interest rate is 5%, 6%, and 10%, respectively. The longer-term bond's price varies more than the price of the shorter-term bond when interest rates change due to long-term bonds' higher interest rate risk.
The value of a bond is calculated as the present value of all the bond's cash flows. Bond L, a 19-year bond, has 19 coupon payments and one final principal payment. The value of Bond L can be calculated as follows:Value of Bond L = Coupon Payment × [1 - 1 / (1 + r)t] / r + Principal Payment / (1 + r)tWhere,r is the annual interest rate.t is the number of years remaining until maturity. Using a financial calculator or spreadsheet, the value of Bond L is $1,547.43, $1,425.97, and $788.85 when the interest rate is 5%, 6%, and 10%, respectively. The longer-term bond's price varies more than the price of the shorter-term bond when interest rates change due to long-term bonds' higher interest rate risk. Bonds with a longer maturity date are subject to higher interest rate risk. This is due to the fact that long-term bonds are exposed to interest rate risk for a longer period, and changes in the interest rate have a greater impact on the bond's value. In contrast, short-term bonds have lower interest rate risk since they mature sooner, and changes in the interest rate have a smaller impact on the bond's value. Therefore, Option III is correct, and the statement that says that long-term bonds have greater interest rate risk than do short-term bonds is correct.
To know more about Interest rate:
https://brainly.com/question/28236069
#SPJ11
What is the real interest rate if the combined rate is 14% and
the inflation is 2.5%?
The real interest rate can be calculated by subtracting the inflation rate from the combined interest rate. In this case, if the combined rate is 14% and the inflation rate is 2.5%, the real interest rate would be 11.5%.
The real interest rate represents the rate of return on an investment after adjusting for inflation. It reflects the purchasing power gained or lost on an investment. To calculate the real interest rate, we subtract the inflation rate from the combined interest rate.
In this scenario, the combined rate is given as 14% (which includes both the nominal interest rate and the inflation rate) and the inflation rate is 2.5%. To find the real interest rate, we subtract the inflation rate from the combined rate:
Real Interest Rate = Combined Rate - Inflation Rate
Real Interest Rate = 14% - 2.5%
Real Interest Rate = 11.5%
Therefore, the real interest rate, in this case, would be 11.5%. This means that after adjusting for inflation, the investment is expected to yield a return of 11.5%. The real interest rate provides a more accurate measure of the actual return on investment, as it accounts for the effects of inflation.
To learn more about interest rates visit:
brainly.com/question/29451175
#SPJ11
During the months of January. Ava Corporation purchased goods from two suppliers. The sequence of events was as follows: Jan. 6 Purchased goods for $1240 from Noah with terms 2/10, n/30. 6 Purchased goods from Emma for $1120 with terms 2/10,n/30. 14 Paid Noah in full. 30 Paid Emma in full. On January 14 , when Ava pays Noah, the credit to cash will be?
When Ava Corporation pays Noah in full on January 14, the credit to cash will be $1,240.
Ava Corporation purchased goods from Noah on January 6 for $1,240 with terms 2/10, n/30. The terms 2/10, n/30 mean that a 2% discount is offered if payment is made within 10 days, otherwise the full amount is due within 30 days. Since Ava Corporation paid Noah in full on January 14, which is within the discount period, they are eligible for the 2% discount. Therefore, the credit to cash will be the discounted amount, which is $1,240 - (2% of $1,240) = $1,240 - $24.80 = $1,215.20.
To know more about terms of payment click here: brainly.com/question/14449267
#SPJ11
A) Total Control Co. Issues A Product Recall Due To A Significant Defect Discovered After The End Of Its Fiscal Year. Financial Statements Have Not Yet Been Issued. The Loss From The Recall Is Estimated At $50 Million. What Action Is Required By Total Control Co. Regarding The Contingency From The Recall? Explain. B) Wind Co Suffered A
Problem # 10
A) Total Control Co. issues a product recall due to a significant defect discovered after the end of its fiscal year. Financial statements have not yet been issued. The loss from the recall is estimated at $50 million.
What action is required by Total Control Co. regarding the contingency from the recall? Explain.
B) Wind Co suffered a significant flood after the date of reporting their balance sheet at the end of year 3, but prior to the date of an auditor’s report. The flood had a significant direct effect on Wind Co’s inventory, and thus their financial statements' inventory section.
How should Wind Co handle this flood event? Explain.
C) On March 21, Year 2, Quick company with a calendar year-end issued its Year 1 financial statements. On February 28, Year 2, Quick’s only manufacturing plant was severely damaged by a storm and had to be shut down. Total property losses were $10 million and determined to be material. The amount of business disruption losses is unknown.
How should the impact of the storm be reflected in the company's Year 1 financial statements. Explain.
(a) The loss from a product recall is not recorded as a liability until it is deemed probable that the cost will be incurred and the amount can be measured reliably.(b) The insurance claim amount, if applicable, must also be disclosed in the notes to the financial statements. (c)non-adjusting event note to the financial statements of Year 1.
A) Total Control Co. has to report the recall contingency as a footnote to its financial statements as it occurs after the end of the fiscal year but before the financial statements' issuance.
According to the financial accounting standards, the loss from a product recall is not recorded as a liability until it is deemed probable that the cost will be incurred and the amount can be measured reliably.
B) After the balance sheet has been issued but before the auditor’s report is released, Wind Co should disclose the flood as a non-adjusting event in the notes to the financial statements.
The insurance claim amount, if applicable, must also be disclosed in the notes to the financial statements.
Wind Co should also assess the impact of the flood on the company's operations and finances and disclose it in the Management Discussion and Analysis section of the financial statements.
C) The impact of the storm that damaged Quick Company's only manufacturing plant is a non-adjusting event that occurred after the balance sheet date but before the financial statements' issuance.
The Company should disclose the incident and its effect on the business, property losses, and how the impact will be dealt with in the future as a non-adjusting event note to the financial statements of Year 1.
Learn more about financial statements here:
https://brainly.com/question/30355441
#SPJ11
Which of the following statements is true? I. Land, capital, entrepreneurial ability and labor are all considered to be economic resources II. All economic resources are scarce except for land and labor which have unlimited availability. O I Only O II Only O Both I and II O Neither I nor II
Statement I is true. Land, capital, entrepreneurial ability, and labor are indeed considered to be economic resources.
These resources play a crucial role in the production process and contribute to the creation of goods and services in an economy. Land provides the physical space for production, capital represents the machinery, equipment, and financial assets used in production, entrepreneurial ability involves the coordination and management of resources, and labor refers to the human effort and skills employed in production.
Statement II is false. All economic resources, including land and labor, are subject to scarcity. Scarcity arises from the fundamental economic problem of unlimited wants and needs in the face of limited resources. While land and labor may be more abundant compared to some other resources, they are still limited in quantity and must be allocated efficiently to meet various demands. The concept of scarcity drives the need for resource allocation, economic decision-making, and the efficient utilization of available resources.
learn more about capital here
https://brainly.com/question/32408251
#SPJ11
Sunny Hwang certainly recognizes the importance of knowing as much as possible about the challenges of doing business in a foreign country before getting involved there. An entrepreneur who is considering expanding into China to connect with an outsourcing partner, to establish a production facility, or to reach a new market should know the following key facts about the country: • China's population of 1.36 billion people is the largest of any country in the world. • China is the third-fastest-growing export market for small-and medium-sized North American firms. • Income disparities in China are great. Annual income in urban areas ranges from around $1,557 per person in Shanghai (China's wealthiest city) to the more typical $827 per year in other cities. • Income in rural areas is much lower, with the average farmer earning a mere $2,186 per year. • The Chinese software market in growing at an annual rate of 30 percent. • Use of the Internet is increasing dramatically. • The demand for consulting services in China is increasing, especially for those related to information technology. • China has entered the World Trade Organization (WTO), a development that has raised concerns about intellectual property protection. • Many hope that its entry into the WTO will force more vigilant protection of intellectual property rights and a crackdown on counterfeiting. Web Case 08: Sunny Designs, Inc. • Many Chinese consumers have cell phones and regularly surf the Internet (especially in large urban centres such as Beijing, Shanghai, and Guangzhou). • Counterfeit goods (including clothing, leather goods, software, and CDs) are readily available in China at a fraction of the cost of brand name items. • Chinese merchants usually do business only with vendors with whom they have established relationships. Questions What challenges to doing business in China did Hwang experience? Give the key facts about China and list issues that may present distinct problems for small North American firms doing business there.
Doing business in China presents challenges such as language barriers, cultural differences, legal complexities, and copyright protection issues. North American firms must overcome these obstacles by addressing communication gaps, understanding Chinese culture, seeking legal expertise, and implementing strategies to protect their intellectual property rights. A thorough understanding of these challenges is crucial for successful business operations in China.
Sunny Hwang experienced various challenges while doing business in China. One of the major challenges that Sunny Hwang faced was the language barrier. Additionally, other challenges include the lack of transparency and cultural differences. Moreover, Hwang faced challenges related to legal issues and copyright protection. China's challenges to small North American firms doing business there are as follows:
Language barriers: Communication can be a significant barrier to conducting business in China, especially for English-speaking businesspeople. While many Chinese businesspeople do speak some English, it is still advisable to learn some Chinese before traveling to China.
Cultural differences: Understanding the culture of China is critical for any North American firm looking to do business there. From understanding Chinese business etiquette to the customs and norms of everyday life, there is a lot to learn before doing business in China.
Legal issues: Business contracts, legal disputes, and other legal matters can be complicated in China. It is essential to work with a reputable lawyer who understands the Chinese legal system and can help navigate the various legal challenges.
Copyright protection: Intellectual property rights (IPR) are a significant concern for companies operating in China. Counterfeiting and piracy are common, and companies must take steps to protect their IPR if they want to do business in China.
To know more about business challenges, refer to the link below:
brainly.com/question/28336004#
#SPJ11
You invested in a corporate bond that has a market price today of R938.5 and a yield to maturity of 7%. This bond has a modified duration of 6.2. You believe that interest rates are going to rise by 184 basis points. What price do you expect your bond to trade at if this anticipated change in the yield occurs?
Expected price of the bond after the anticipated change in yield: R830.96.
To estimate the new price of the bond after the anticipated change in yield, we can use the concept of duration. The formula to calculate the approximate change in bond price is:
Percentage Change in Price = (-1) * Modified Duration * Change in Yield
In this case, the change in yield is 184 basis points, which is equivalent to 1.84%. Let's calculate the price change:
Percentage Change in Price = (-1) * 6.2 * 1.84% = -11.408%
To find the new price, we multiply the percentage change by the current price and subtract it from the current price:
New Price = Current Price * (1 + Percentage Change in Price)
= R938.5 * (1 - 11.408%)
= R830.96 (rounded to two decimal places)
Therefore, the expected price of the bond after the anticipated change in yield is approximately R830.96.
To know more about anticipated change,
https://brainly.com/question/12556784#
#SPJ11
Description How Can I Capitalize on Situations with Unmet Demand? Review page 127 of your text before responding. Requirements: - Your discussion should be at least 200 words. - Post it in the Discussion area of the course room. - Read and respond to at least 2 of your peers in the discussion area.
Start by researching and analyzing the market to identify areas with unmet demand. Look for gaps in products or services where customers' needs are not fully satisfied.
Understand Customer Needs: Gain a deep understanding of the target customers and their preferences. Conduct market research, surveys, and interviews to identify their pain points, desires, and expectations.
This will help you tailor your offerings to meet their specific needs and differentiate yourself from competitors.
Develop a Unique Value Proposition: Based on your understanding of customer needs, create a unique value proposition that clearly communicates how your product or service addresses the unmet demand. Focus on the benefits and advantages that set you apart from existing solutions.
Build a Strong Brand: Develop a strong brand identity that resonates with your target audience.
Learn more about market research here:
https://brainly.com/question/3306965
#SPJ11
Paula is 20 years old working for an employee health clinic at a local medical school. Paula files, runs errands, types correspondence and orders supplies for the office and clinic. She initiates all of the orders to the appropriate vendor when the nurses inform her that they are running low on supplies. However, there is one vendor that calls her regularly to see if they need gloves or syringes. When supplies were low, Paula would have this vendor fill the order. One day, she received a package from this company. Inside were an underwater camera and a note thanking her for the business. A few weeks later the vendor called to get approval to ship more supplies. Paula declined as informed him supplies were not low. The salesperson became annoyed and reminded her that they were under a contract and would face a penalty if the supplies were not shipped and paid for within a specified time period. Paula knew nothing of a contract and assumed that it was set up before she started working there. The salespersons told her that after payment was received, they would send her a stereo to thank her for continued business. In the given scenario, Paula had the following options 1. Have the salesperson speak to her supervisor?
2. Call the legal department. 3. Decline the gift. 4. Ask for a copy of the contract. 5. Tell the salesperson to ship the supplies and receive the stereo in a few weeks. Apply the ethical theories (Utilitarian, Principle based and Virtue based ethics) to address the situation that arises due to the salesperson?
In addressing the situation with the salesperson, Paula should apply ethical theories such as utilitarianism, principle-based ethics, and virtue-based ethics to make an informed decision that considers the greatest good for all stakeholders involved.
Utilitarianism focuses on maximizing overall happiness and well-being. In this case, Paula should evaluate the potential consequences of her actions on various stakeholders, such as the clinic, herself, and the vendor, and choose the option that results in the greatest overall benefit. Principle-based ethics involves following established moral principles and rules. Paula should consider principles like honesty, integrity, and fairness when deciding on her course of action, ensuring that she upholds these principles and acts in accordance with ethical standards. Virtue-based ethics emphasizes developing and demonstrating virtuous qualities. Paula should reflect on virtues such as honesty, responsibility, and accountability, and choose the option that aligns with these virtues, promoting ethical behavior and maintaining her professional integrity. By applying these ethical theories, Paula can make an ethical decision that considers the consequences, principles, and virtues involved, ultimately ensuring a fair and morally upright resolution to the situation.
learn more about stakeholders here:
https://brainly.com/question/32720283
#SPJ11
According to Selling Power magazine, which is the number of people in sales in the top 500 companies in 2017?
Group of answer choices
Almost 100 million
Almost 50 million
Almost 25 million
Almost 3 million
Almost 1 million
The productivity growth of the carpeting company after implementing mechanized carpeting compared to the manual process is approximately 56.39%.
To determine the productivity growth percentage, we need to compare the carpeting areas completed by the workers in the manual process and mechanized carpeting.
In the manual process, 7 workers can complete 437 square meters of carpeting in a day.
Productivity in manual process = Carpeting area completed / Number of workers
Productivity in manual process = 437 square meters / 7 workers
Productivity in manual process = 62.43 square meters per worker
In the mechanized carpeting, the same 7 workers can complete 685 square meters of carpeting in a day.
Productivity in mechanized carpeting = Carpeting area completed / Number of workers
Productivity in mechanized carpeting = 685 square meters / 7 workers
Productivity in mechanized carpeting = 97.86 square meters per worker
To calculate the productivity growth percentage, we can use the formula:
Productivity growth percentage = ((Productivity in mechanized carpeting - Productivity in manual process) / Productivity in manual process) * 100
Productivity growth percentage = ((97.86 - 62.43) / 62.43) * 100
Productivity growth percentage ≈ 56.39%
The carpeting company experiences a significant productivity growth of approximately 56.39% after implementing mechanized carpeting compared to the manual process. This improvement can be attributed to the increased efficiency and output achieved by utilizing the machine, allowing the workers to complete a larger area of carpeting within the same timeframe.
To know more about growth follow the link:
https://brainly.com/question/30167432
#SPJ11
If the marginal cost of the next unit of production is less than its average total cost,
Select one:
a.
marginal cost must be falling.
b.
average total cost is rising.
c.
average total cost is falling.
d.
average variable cost must be falling.
The correct journal entry required on December 31 to record the bonus is: d. Debit Employee Bonus Expense $32,500; Credit Bonus Payable $32,500
The entry records the expense related to the estimated bonus for the year and establishes a liability in the form of a bonus payable to the employees. The debit to Employee Bonus Expense recognizes the expense incurred by the company, and the credit to Bonus Payable establishes the liability for the amount owed to the employees. This entry is made in December to reflect the expense and liability in the appropriate accounting period, even though the payment will be made in January of the following year.
Learn more about Debit here:
https://brainly.com/question/15575221
#SPJ11
