Answer and Explanation:
According to the given situation, the income statement and balance sheet as per parts is shown below:-
Accounts Account Title Financial statements
For Part A
Debit Accounts receivable Liability account Balance sheet
Credit Consulting service Income statement
revenue
For Part B
Debit Interest receivable Liability account Balance sheet
Credit Interest revenue Income statement
For Part C
Debit Accounts receivable Assets account Balance sheet
Credit Service Revenue Income statement
For Part D
Debit Janitorial expense Income statement
Credit Janitorial expense Liability account Balance sheet
Payable
For Part E
Debit Rent expenses Income statement
Credit Rent expenses Liability account Balance sheet
payable
What dividend per share would be reported in the financial press for a stock that currently has 4.5% dividend yield and the most recent stock price was $75
Answer: $3.38
Explanation:
Dividend Yield of a stock refers to the dividend paid by the company expressed in terms of a percentage of the current value of the company's stock.
The Dividend therefore is;
= 75 * 4.5%
= $3.375
= $3.38
Ravelo Corporation has provided the following data from its activity-based costing system: Activity Cost Pools Estimated Overhead Cost Expected Activity Assembly $ 514,520 52,000 machine-hours Processing orders $ 62,263 1,900 orders Inspection $ 85,589 1,910 inspection-hours Data concerning the company's product L19B appear below: Annual unit production and sales 590 Annual machine-hours 1,150 Annual number of orders 230 Annual inspection hours 180 Direct materials cost $ 53.74 per unit Direct labor cost $ 26.45 per unit According to the activity-based costing system, the unit product cost of product L19B is closest to: (Round your intermediate calculations to 2 decimal places.)
Answer:
Unitary cost= $131.02
Explanation:
Giving the following information:
L19B:
Annual unit production and sales 590
Annual machine-hours 1,150
Annual number of orders 230
Annual inspection hours 180
Direct materials cost $ 53.74 per unit
Direct labor cost $ 26.45 per unit
First, we need to calculate the predetermined overhead rate for each activity:
Assembly= 514,520/52,000= $9.9 per machine-hour
Processing orders= 62,263/1,900= $32.77 per order
Inspection= 85,589/1,910= $44.81per inspection-hour
Now, we can calculate the total allocated overhead cost for product L19B:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Assembly= 9.9*1,150= 11,385
Processing orders= 32.77*230= 7,537.1
Inspection= 44.81*180= 8,065.8
Total= 29,987.9
Finally, the cost per unit:
Unitary overhead= 29,987.9/590= 50.83
Unitary cost= 53.74 + 26.45 + 50.83
Unitary cost= $131.02
Laurasia has identified the following goods as its market basket. Here are the prices of those goods over three years.
Compute the cost of that market basket in all three years.
Answer:
2015 = $942016 = $128.502017 = $115Explanation:
A Market Basket is used to calculate inflation overtime by tracking the change in prices of a specific and permanent number of goods and services.
The formula for calculating the market basket is;
Cost of Market Basket[tex]_{year}[/tex] = ∑(Price of good * Basket Quantity of good)
2015
Cost of Market Basket = (25 * 0.4) + (2 * 18) + ( 4 * 12)
Cost of Market Basket = 10 + 36 + 48
Cost of Market Basket = $94
2016
Cost of Market Basket = (25 * 0.5) + (2 * 22) + ( 4 * 18)
Cost of Market Basket = 12.5 + 44 + 72
Cost of Market Basket = $128.50
2017
Cost of Market Basket = (25 * 0.6) + (2 * 20) + ( 4 * 15)
Cost of Market Basket = 15 + 40 + 60
Cost of Market Basket = $115
The cost of that market basket in all three years. is :
In 2015 = $94 In 2016 = $128.50 In 2017 = $115"Market Basket"A selected gather of buyer merchandise and administrations whose costs are followed for calculating a customer cost file and measuring the taken a toll of living.
2015
Cost of Market Basket = ∑(Price of good * Basket Quantity of good)
Oranges Baseball caps Wrenches
Cost of Market Basket = (25 * 0.4) + (2 * 18) + ( 4 * 12)
Cost of Market Basket = 10 + 36 + 48
Cost of Market Basket = $94
2016
Cost of Market Basket =∑(Price of good * Basket Quantity of good)
Oranges Baseball caps Wrenches
Cost of Market Basket = (25 * 0.5) + (2 * 22) + ( 4 * 18)
Cost of Market Basket = 12.5 + 44 + 72
Cost of Market Basket = $128.50
2017
Cost of Market Basket = ∑(Price of good * Basket Quantity of good)
Oranges Baseball caps Wrenches
Cost of Market Basket = (25 * 0.6) + (2 * 20) + ( 4 * 15)
Cost of Market Basket = 15 + 40 + 60
Cost of Market Basket = $115
Learn more about "Market Basket" :
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2020 Melissa, Nicole, and Ben are equal partners in the Opto Partnership (calendar year-end). Melissa decides she wants to exit the partnership and receives a proportionate distribution to liquidate her partnership interest on January 1. The partnership has no liabilities and holds the following assets as of January 1: Tax Basis FMV Cash $ 19,890 $ 19,890 Accounts receivable 0 26,520 Stock investment 8,760 15,150 Land 36,300 48,600 Totals $ 64,950 $ 110,160 Melissa receives one-third of each of the partnership assets. She has a basis in her partnership interest of $29,095. (Leave no answer blank. Enter zero if applicable.) a. What is the amount and character of any recognized gain or loss to Melissa
Answer and Explanation:
According to the given situation, the amount and the character of any recognized gain or loss made to Melissa should be zero or in another word she did not recognize any loss or gain on the distribution instead of this she would adjusted the basis of assets that are to be distributed
Hence, nothing would be recognized
Calculate the average and marginal tax rates in the following table. (Hint: Enter your answers as decimals and do not round when computing tax rates. For example, 8.25% should be entered as "8.25" and not "0.825")
Total Taxable Income Total Tax Due Average Tax Rate Marginal Tax Rate
(Dollars) (Dollars) (Percentage) (Percentage)
0 0 0 0
2,000 130
10,000 650
20,000 1,300
100,000 6,500
The tax rates shown in this table are:________.
True or False: If the marginal tax rate is equal to the average tax rate, then the average tax rate must remain the same.
A. True
B. False
Sean, Yvette, and Bob are the only voters in a small society and are considering whether to publicly finance a project.
Indicate in the following table what each individuals vote would be and whether the public project will be funded
Name Marginal Cost Marginal Benefit Vote
Sean $100 $108
Yvette $100 $12
Bob $100 $125
Total $300 $245
If this same project were taking place in the private sector, a firm ________ fund the project.
In private markets, decisions to provide goods or services to the market are generally made if marginal benefits ________ marginal costs. in comparison, the decisions to provide goods and services by governments are made through _______. as a result, governments may approve projects whose costs _________ their benefits.
Answer:
1. a. Average Tax rate = 130/2,000 = 6.5%
Marginal Tax Rate = (130 - 0)/ (2,000 - 0) = 6.5%
b. Average Tax rate = 650/10,000 = 6.5%
Marginal Tax Rate = [tex]\frac{650-130}{10,000-2,000}[/tex] = 6.5%
c. Average Tax rate = 1,300/20,000 = 6.5%
Marginal Tax Rate = [tex]\frac{1,300-650}{20,000-10,000}[/tex] = 6.5%
d. Average Tax rate = 6,500/100,000 = 6.5%
Marginal Tax Rate = [tex]\frac{6,500-1,300}{100,000-20,000}[/tex] = 6.5%
2. The tax rates shown in this table are: Proportional
Proportional Taxes take the same percentage of income across all income groups.
3. A. True
4. Sean and Bob would both vote yes as the Marginal Benefit of the project exceeds their marginal cost but project will not be funded in the end as the Total Marginal Cost exceeds Total Marginal benefit. Sean and Bob may want to pay but Yvette will not.
5. If this same project were taking place in the private sector, a firm would not fund the project.
6. In private markets, decisions to provide goods or services to the market are generally made if marginal benefits exceed marginal costs
7. As a result, governments may approve projects whose costs exceed their benefits.
he ability to hire, motivate, and retain human capital is an example of ________ capabilities in the resource-based view of the firm.
Answer:
Organizational capabilities
Explanation:
The ability to hire, motivate, and retain human capital is an example of organizational capabilities in the resource-based view of the firm.
An organizational capability is the ability of a firm to manage resources, such as it's employees, effectively which will give them an edge over competitors. Organizational capabilities differntiates a firm from competitors.
At the beginning of its current fiscal year, Willie Corp.’s balance sheet showed assets of $11,400 and liabilities of $5,700. During the year, liabilities decreased by $1,200. Net income for the year was $3,050, and net assets at the end of the year were $6,150. There were no changes in paid-in capital during the year.
Required:
Calculate the dividends, if any, declared during the year.
Stockholders' Equity
Assets = Liabilities + PIC + RE
Beginning $11,900 = $6,300 + 0 +
Changes = (1,200) + 0 +
Ending = + +
Answer:
$8,750
Explanation:
ASSETS = LIABILITIES + PAID IN CAPITAL + RETAINED EARNINGS
beginning of the year:
$11,400 = $5,700 + paid in capital + retained earnings
paid in capital + beginning retained earnings = $5,700
end of the year:
$6,150 = $4,500 + paid in capital + retained earnings
paid in capital + ending retained earnings = $1,650
ending retained earnings = beginning retained earnings + net income - dividends = beginning retained earnings + $3,050 - dividends
paid in capital + beginning retained earnings - $5,700 = 0
paid in capital + beginning retained earnings + $3,050 - dividends - $1,650 = 0
let X = paid in capital
let Y =beginning retained earnings
X + Y - $5,700 = X + Y + $3,050 - dividends
we eliminate X and Y
-$5,700 = $3,050 - dividends
dividends = $5,700 + $3,050 = $8,750
You purchase a bond with an invoice price of $1,410. The bond has a coupon rate of 6.8 percent, and there are 3 months to the next semiannual coupon date. What is the clean price of the bond? Assume a par value of $1,000.
Answer:
clean price = $1,393
Explanation:
The clean price of the bond does not include any accrued interests. The invoice price = clean price + accrued interests
invoice price = $1,410accrued interests = $1,000 x 0.068 x 3/12 = $17clean price = invoice price - accrued interests = $1,410 - $17 = $1,393
8 points eBook HintPrintReferences Check my work Check My Work button is now enabledItem 4Item 4 8 points The following information is from Amos Company for the year ended December 31, 2019. Retained earnings at December 31, 2018 (before discovery of error), $852,000. Cash dividends declared and paid during the year, $13,000. Two years ago, it forgot to record depreciation expense of $44,600 (net of tax benefit). The company earned $219,000 in net income this year. Prepare a statement of retained earnings for Amos Company. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
Amos Company
Statement of Retained Earnings for the year ended December 31, 2019:
December 31, 2018 balance $852,000
adjustment of error:
Depreciation expense for 2017 -44,600
Adjusted Retained Earnings $807,400
Income for the year 219,000
less Dividends -13,000
Retained Earnings, Dec. 31, 2019 $1,013,400
Explanation:
The depreciation expense of $44,600 would be recorded by deducting it from the beginning retained earnings. This adjusts the balance to reflect the previous year's errors. Then the year's earnings are added before the payment of dividends. The resultant figure is the retained earnings to be carried to the next accounting period.
Orion Flour Mills purchased a new machine and made the following expenditures:
Purchase price $ 59,000
Sales tax 5,200
Shipment of machine 840
Insurance on the machine for the first year 540
Installation of machine 1,680
The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash.
Required:
Record the above expenditures for the new machine. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Orion Flour Mills
Debit Milling Machine $64,200
Credit Accounts Payable $64,200
To record the purchase of a new machine on account, terms n/30.
Debit Freight-in $840
Debit Insurance $540
Debit Machine Installation $1,680
Credit Cash Account $3,060
To record additional expenditure on the purchase.
Debit Milling Machine $2,520
Credit Freight-in $840
Credit Machine Installation $1,680
To record the cost of additional expenditure to the Milling Machine.
Explanation:
Using the journal to account for the acquisition of a new machine by Orion Flour Mills initially records the transactions after identifying the accounts involved, and the accounts to be debited and credited respectively.
The cost of the new machine includes the additional expenditure incurred for bringing it into use. The expenditure will include the shipment, sales tax, and installation costs. Insurance will be excluded as it is not incurred in order to bring the machine into use.
The rate of return on the common stock of Lancaster Woolens is expected to be 18 percent in a boom economy, 8 percent in a normal economy, and only 2 percent in a recessionary economy. The probabilities of these economic states are 12 percent for a boom and 10 percent for a recession. What is the variance of the returns on this common stock
Answer:
Variance of the return on this common stock is 0.15%
Explanation:
Note: See the attached excel file for the calculation of the variance of the returns on this common stock.
Note that the probability of a normal economy can be obtained as follows:
Probability of normal economy = 100% - Probability of a boom - Probability of a recession = 100% - 12% - 10% = 78%
These probabilities are used in the attached excel file.
All of the following are employer payroll taxes except: Multiple Choice Social Security tax equal to that withheld from employees. Medicare tax equal to that withheld from employees. State unemployment tax. Federal unemployment tax. Federal income tax equal to that withheld from employees.
Answer: Federal income tax equal to that withheld from employees.
Explanation:
Federal Income Tax equal is a withholding Tax that the employer takes from an Employee's salary and pays it directly to the Government in form of income taxes.
It will therefore count towards the Income Taxes that the person is to pay during the year.
This is an Employee Payroll Tax because it comes from the Employees's salary.
dentify what concept each of the following circumstances is an example of: a. Students end up doing "all-nighters" just to finish a term paper. (Click to select) b. The so-called "Lake Wobegon effect" where everyone in a group claims to be above average. (Click to select) c. People who are usually very neat tend to litter in areas that are covered with graffiti. (Click to select) d. Behavioral economists suggest that brand loyalty can be a source of monopoly power for producers. (Click to select)
Answer:
a. Students end up doing "all-nighters" just to finish a term paper.- Planning Fallacy
The Planning fallacy is a tendency by humans to overestimate how much time they have to complete a project due to them having an optimism bias when projecting how much time will be needed. The students thought they had time to study up until they didn't.
b. The so-called "Lake Wobegon effect" where everyone in a group claims to be above average. - The Overconfidence Effect
The overconfidence effect leads people to believe that their abilities exceed what they actually are and can be called the Lake Wobegon effect which was derived from the name of a fictional town where every child was supposedly above average.
c. People who are usually very neat tend to litter in areas that are covered with graffiti.- Framing effect
The Framing effect refers to a cognitive tendency by people to make decisions based on the how it is presented to them. The places covered with graffiti appeared dirty to them so them chose to litter there.
d. Behavioral economists suggest that brand loyalty can be a source of monopoly power for producers. - Status quo bias
This supports the old saying, "if it isn't broke, don't fix it". This bias is an emotional one that leads people to stay in a condition that they are used to because it is what they know and anything else might be considered a loss to them. Therefore companies can use these to always sell to a group of people if those people have brand loyalty.
Lefty provides demolition services in several southern states. Lefty has property as follows: Property State Beginning Ending Alabama $ 123,044 $ 204,241 Kentucky $ 203,317 $ 185,108 Mississippi $ 881,932 $ 1,002,396 Louisiana $ 243,951 $ 350,310 Tennessee $ 143,204 $ 143,204 Total $ 1,595,448 $ 1,885,259 Lefty is a Mississippi corporation. Lefty also rents property in Mississippi and Tennessee with annual rents of $56,000 and $21,000, respectively. What is Lefty's Mississippi property numerator
Answer:
Lefty's Mississippi property numerator is
Property Numerator = $56,000
Which can be expressed as a percentage of the Average Annual Property Value
= Annual Rent/Average Annual Property
= $56,000/$942,164 x 100 = 5.9%
Explanation:
a) Data:
Property State Beginning Ending
Alabama $ 123,044 $ 204,241
Kentucky $ 203,317 $ 185,108
Mississippi $ 881,932 $ 1,002,396
Louisiana $ 243,951 $ 350,310
Tennessee $ 143,204 $ 143,204
Total $ 1,595,448 $ 1,885,259
b) Calculations:
Mississippi
Beginning Property value = $ 881,932
Ending Property value = $ 1,002,396
Average annual property value = $942,164 ($ 881,932 + $ 1,002,396)/2
Rent in Mississippi = $56,000
Would you expect a brick-and-mortar retailer or an online retailer to have a higher asset turnover? Why or why not? Which supply chain drivers impact asset turnover?
Answer:
An online retailer would on a balance of probability have a higher asset turnover than a brick-and-mortar retailer.
Explanation:
The reason is not farfetched. If done properly, an online retailer is most likely to succeed at reaching more customers and penetrating more markets.
The total population of active internet users is currently estimated at 4.5 Billion. For truly global products or retail outlets such as Amazon and Alibaba, this figure is staggering. It is impossible to compare a truly successful online retailer to a brick-and-mortar retailer whose market, at its best, covers only those within its locality.
So using online retail store such as Amazon as an example, they might have significant investment in online platforms, dedicated servers and warehouses, their turnover which as at 2019 stood at 4.5x is relatively strong.
The supply chain drivers which impact asset turnover are inventory, accounts receivables and facilities.
Cheers!
On April 1, 2021, Shoemaker Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules, which is hurting Shoemaker's business. The supplier explains that it has a temporary lack of funds that is slowing its production cycle. Shoemaker agrees to lend $420,000 to its supplier using a 12-month, 12% note.
Required:
1. The loan of $420,000 and acceptance of the note receivable on April 1, 2021
2. The adjustment for accrued interest on December 31, 2021
3. Cash collection of the note and interest on April 1, 2022.
Answer:
1. April 01, 2021
Dr Notes receivable 420,000
Cr Cash 420,000
2. December 31,2021
Dr Interest receivable 37,800
Cr Interest revenue 37,800
3. April 01, 2022
Dr Cash 470,400
Cr Notes receivable 420,000
Cr Interest receivable 37,800
Cr Interest revenue 12,600
Explanation:
Preparation of the Journal entries Shoemaker Corporation
1. Preparation of the Journal entry for loan o amount of $420,000 as well as the acceptance of the note receivable on April 1, 2021
April 01, 2021
Dr Notes receivable 420,000
Cr Cash 420,000
2. Preparation of the Journal entry for the adjustment for accrued interest on December 31, 2021
December 31,2021
Dr Interest receivable 37,800
Cr Interest revenue 37,800
($420,000 × 12% × 9/12=$37,800)
3. Preparation of the Journal entry for the Cash collection of the note and interest on April 1, 2022
April 01, 2022
Dr Cash 470,400
Cr Notes receivable 420,000
Cr Interest receivable 37,800
Cr Interest revenue 12,600
($420,000 × 12% × 3/12=$12,600)
Assume instead that the equipment was disposed of in 2022 and the original error was discovered in 2023 after the 2022 financial statements were issued. Prepare the correcting entry in 2023.
Answer:
No journal entry is required
Explanation:
As if we assume that the disposal of equipment is done in the year 2022 but the original error was discovered in the year 2023 after issuing the 2022 financial statements
Based on the above information, the correct entry for the year 2023 is that no journal entry is required for this transaction and the same is to be considered
If investors receive a 6% interest rate on their bank deposits, what real interest rate will they earn if the inflation rate over the year is:
Question
The complete question is given as follows:
if investors receive a 6% interest rate on their bank deposits, what real interest rate will they earn if the inflation rate over the year is:
a) 3%
b) 6%
Answer:
a) Real rate = 2.91%
b) Real rate = 0%
Explanation:
Inflation is the increase in the price level.It erodes the value of money.
Nominal interest is that quoted for investment or loan transactions. It has not been been adjusted for inflation.
Real interest rate is the amount of interest in terms of the the quantity of good and services that can be purchased. It is the nominal interest rate adjusted for inflation.
The relationship between inflation, real interest and nominal interest rate is given using the Fishers Effect;
R = (1+N)/(1+F) - 1=
N- Nominal interest rate
R- Real interest rate
F- Inflation rate
a) Where inflation rate is 3%
Real rate = (1.06/1.03 - 1)× 100 = 2.91%
b) Where inflation rate is 6%
Real rate = (1.06/1.06 - 1)× 100 = 0%
a) Real rate = 2.91%
b) Real rate = 0%
. Identify each of the following as (i) part of an expansionary fiscal policy, (ii) part of a contractionary fiscal policy, or (iii) not part of fiscal policy. a. The personal income tax rate is lowered. b. Congress cuts spending on defense. c. College students are allowed to deduct tuition costs from their federal income taxes. d. The corporate income tax rate is lowered. e. The state of Nevada builds a new tollway in an attempt to expand employment and ease traffic in Las Vegas.
Answer:
Option, A , D, E = expansionary fiscal policy.
Option B = Contractionary fiscal policy
Option C = not a part of fiscal policy
Explanation:
The expansionary fiscal policy occurred when there is a decrease in taxes and an increase in government expenditure (spendings). While contractionary fiscal policy occurs when taxes are increased by the government and there is a fall or decrease in government spendings. Therefore, Option A, Option D, and Option E are part of the expansionary fiscal policy.
Option B is a contractionary fiscal policy. While option C is not a part of fiscal policy
Beth works for a large corporation that has managers for every department who employees report to. Which type of management decision making system does this company use
Answer:
vertical decision-making system
Explanation:
Based on this scenario it seems that Beth's company is using a vertical decision-making system. This is a hierarchical organization system in which management passes information from the top of the hierarchy/pyramid down to the bottom. This system is made up of many layers, while each layer has upper management that supervises the employees at that level. Such as in this case where the employees are reporting to the managers within their departments.
What is the future value of a $900 annuity payment over five years if interest rates are 8 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Answer:
Future Value of Annuity = $5279.94
Explanation:
An annuity is a series of cash flows that are constant, occur after equal intervals of time and are for a definite and limited time period. The future value of an annuity is calculated using the attached formula,
Future Value of annuity = 900 * [((1+0.08)^5 - 1) / 0.08]
Future Value of Annuity = $5279.94
You are cautiously bullish on the common stock of the Wildwood Corporation over the next several months. The current price of the stock is $50 per share. You want to establish a bullish money spread to help limit the cost of your option position. You find the following option quotes: Wildwood Corp Underlying Stock price: $50.00 Expiration Strike Call Put June 45.00 8.50 2.00 June 50.00 4.50 3.00 June 55.00 2.00 7.50 Ignoring commissions, the cost to establish the bull money spread with calls would be ________. Group of answer choices
Answer:
650
Explanation:
A call option is an option to buy a product or asset at a stated price at a later date. The risk of call option is capped at premium for buying the option. Wildwood corporation will incur cost of 650 to establish the bull money spreads with calls.
8.5 +4.5 = 13
13 * $50.00 = $650
Because Toyota's investment eventually increases the level of R&D spending for his given level of sales revenue what would the effect on Toyota's return on invested capital (ROIC)?
Available Options Are:
a. Increasing ROIC by increasing return on sales
b. Decreasing ROIC by increasing return on sales
c. Decreasing ROIC by decreasing return on sales
d. Increasing ROIC by decreasing return on sales
Answer:
Option C. Decreasing ROIC by decreasing return on sales
Explanation:
The return on sales would be reduced as the research expenses have increased substantially. The implications of increased research expenses on the ROIC can be understood by analyzing the ROIC formula which is given as under:
ROCI = Operating Income (1 - Tax Rate) / Book Value of Invested Capital
As revenue expenditure (Research and Development expenses) of the company has increased, this would decrease the operating income of the company which means that the numenator would be decreased and as a result the ROCI would decrease.
What represents a difference in the process by which a monopolistic competitor and a monopolist make their respective decisions about quantity and price?
Answer:
There is no need for the monopolists to have the fear for entry
Explanation:
So, this particular problem or question is what is the part of economics known as the microeconomics. So, let us take the definitions of some important terms in the question which is going to assist us in solving this particular problem or question.
=> MONOPOLISTIC COMPETITOR: the term monopolistic competitor will also mean to say imperfect competitor. That is to say the kind of competition in which sellers or competitors compete in order for them to get some kind of advantage over the prices of goods and services in the market. The demand curve thus now has a download slope.
=> MONOPOLIST: Monopolists have advantage over the price of products or services in the market.
Two equal-sized newspapers have an overlap circulation of 10% (10% of the subscribers subscribe to both newspapers). Advertisers are willing to pay $24 to advertise in one newspaper but only $45 to advertise in both, because they're unwilling to pay twice to reach the same subscriber. Suppose the advertisers bargain by teling each newspaper that they're going to reach agreement with the other newspaper, whereby they pay the other newspaper $21 to advertise. According to the nonstrategic view of bargaining, each newspaper would earn ____________ with the advertisers. The total gain for the two newspapers from reaching an agreement is $ of the $21 in value added by reaching an agreement _____________.
Suppose the two newspapers merge. As such, the advertisers can no longer bargain by telling each newspaper that they're going to reach agreement with the other newspaper. Thus the total gains for the two parties (the advertisers and the merged newspapers) from reaching an agreement with the advertisers are $21.
According to the nonstrategi argaining, each merged newspaper will earn ___________in an agreement with the advertisers. This gain to the merged newspaper is_____________than the total gains to the individual newspapers pre-meger.
Answer:
Each newspaper would earn $10.50 with the advertisers. The total gain for the two newspapers from reaching an agreement is $ of the $21 in value added by reaching an agreement $21
Each merged newspaper will earn $22.50 in an agreement with the advertisers.
The merged newspapes is GREATER
Explanation:
Each newspaper would earn $10.50 with the advertisers. The total gain for the two newspapers from reaching an agreement is $ of the $21 in value added by reaching an agreement $21
Each merged newspaper will earn $22.50 in an agreement with the advertisers.
The merged newspaper is GREATER
Below is the calculation:
1.$21/2=$10.50
2.$10.50+$10.50=$21
3.$45/2=$22.50
4. GREATER because $22.50 is greater than the total gains to the individual newspapers pre-meger of $21
What are the most challenging concepts for you to understand? Have you found any supplemental resources or websites that have helped you to better comprehend the material? T- Accounts
Answer:
finding every form of verbs is difficult. spanishdict is very helpful
Explanation:
www.spanishdict.com
Consider the following limit-order book for a share of stock. The last trade in the stock occurred at a price of $50. Limit Buy Orders Limit Sell Orders Price Shares Price Shares $ 49.75 500 $ 50.25 100 49.50 800 51.50 100 49.25 500 54.75 300 49.00 200 58.25 100 48.50 600 a. If a market buy order for 100 shares comes in, at what price will it be filled?
Answer:
$50.25
Explanation:
The below data given in the question will help to determine the price will it be filled, if the market buy order for 100 shares comes in
Limit Buy Orders Limit Sell Orders
Price Shares Price Shares
$ 49.75 500 $ 50.25 100
49.50 800 51.50 100
49.25 500 54.75 300
49.00 200 58.25 100
48.50 600
Therefore in a situation where a market buy order for 100 shares comes in, it will be filled at the amount of $50.25 which will be the best price reason been that the amount of $50.25 is the lowest amount for the limit sell order when compared with other price listed under the limits sell order.
Prepare the issuer's journal entry for each of the following separate transactions. On March 1, Atlantic Co. issues 43,000 shares of $3 par value common stock for $299,000 cash.On April 1, OP Co. issues no-par value common stock for $71,000 cash.On April 6, MPG issues 2,100 shares of $20 par value common stock for $40,000 of inventory, $140,000 of machinery, and acceptance of a $90,000 note payable.
Answer:
March 1
Cash $299,000 (debit)
Common Stock $129,000 (credit)
Share Premium $170,000 (credit)
April 1
Cash $71,000 (debit)
Common Stock $71,000 (credit)
April 6
Inventory $40,000 (debit)
Machinery $140,000 (debit)
Common Stock $42,000 (credit)
Share Premium $48,000 (credit)
Note Payable $90,000 (credit)
Explanation:
Any cash paid in in excess of the par value for par value share is Accounted for in the Share Premium reserve.
No Par Value share do not have a Share Premium Reserve.
The comparative cash flow statements from Sears and Wal-Mart are presented above. Amounts presented are in millions. Review both statements considering what you've learned in this chapter about the cash flow statement. Answer the following questions: When analyzing a company's cash flow statement, which section of the statement (operating, investing or financing) do you believe is the best predictor of a company's future profitability? Why? Which company do you believe is healthier based on the cash flow statements presented? Provide at least two specific examples from the statements. Your initial post is due four (4) days prior to the discussion due date or points will be deducted from your discussion score. Please review the discussion board requirements above.
The complete question is attached.
Answer:
Sears Holding Corporation and Wal-Mart Stores, Inc.
1. The section of the cash flow statement that is the best predictor of a company's future profitability is the Operating Activities Section. The reason is that the operating activities section shows the net cash from operating activities or the core business activities of the entity. A business entity's profitability is not determined by subsidiary activities like financing and investing activities. But it is ascertained by reviewing its operating activities which also define the mission of the business and show the strategies it can deploy to attain its goals.
2. Walmart Stores, Inc. is by far healthier than Sears Holdings Corporation, at least based on the January 30, 2016 statements of cash flows. For instance, Walmart Stores recorded a Net Cash Flow from operations in the sum of $27,389 million while Sears recorded a negative Net Cash Flow from operations in the sum of $2,167 million. Again, from the operating activities sections, one can see that Walmart Stores, Inc. was able to make a net income before adjustments of $15,080 million, whereas Sears Holding Corporation performed abysmally poor by incurring a net loss of $1,128 million.
Explanation:
The Sears and Walmart's statements of cash flows are one of the three main financial statements prepared and presented by Sears Holding Corporation or Walmart Stores, Inc. to its stockholders and the general public to show financial information about its activities. Specifically, the statements of cash flows for Sears and Walmart show the flow of cash under three main activity headings: operating, financing, and investing.
Two methods can be used by Sears and Walmart to prepare the statement. They include the indirect method, which starts from the net income, and the direct method, which shows the cash inflows and outflows for each cash flow item for Sears and Walmart.
Q 9.28: Prepare the journal entry if Bench Company purchases a delivery van for $22,175 with related expenditures of sales taxes $443, painting $225, vehicle license $210, and accident insurance $875.
Answer:
Dr Equipment $22,843
Dr Licence expenses $210
Dr Prepaid Insurance $875
Cr Cash $23,928
Explanation:
Preparation of the journal entry for Bench Company
Based on the information given we were told that Company made the following transaction:
Purchase of delivery van for tha amount of $22,175
Sales taxes for the amount of $443
Painting for the amount of $225
Vehicle license for the amount of $210
Accident insurance for the amount of $875
Therefore based on the above Bench Company Journal entry will be recorded as:
Dr Equipment $22,843
($22,175+$443+$225)
Dr Licence expenses $210
Dr Prepaid Insurance $875
Cr Cash $23,928
