As the controller of Cutting Edge, the opinions of the proposed plan or given case study is as follows
a. Revenue from the new subscriptions should be recognized when the criteria for revenue recognition are met. According to the Generally Accepted Accounting Principles (GAAP), revenue is recognized when it is realized or realizable, and earned. In this case, revenue can be recognized when the customers have made a binding agreement to subscribe to Cutting Edge, and Cutting Edge has fulfilled its obligations in delivering the magazine to the customers.
b. The estimated sales returns stemming from the unconditional guarantee should be classified as a refund liability. This is because the guarantee offers customers the option to receive a full refund if they are dissatisfied with the magazine. Therefore, Cutting Edge needs to recognize a liability for the potential refunds that may be claimed by customers.
c. The atlas premium should be recorded as deferred revenue. This is because customers are entitled to receive the atlas premium whenever they request it, but they have not yet received it. Therefore, Cutting Edge should recognize the payment received for the subscription as deferred revenue until the premium is delivered to the customers.
The estimated premium claims are not a liability. The estimated premium claims represent the cost that Cutting Edge expects to incur when providing the atlas premium to the subscribers. Since it is an estimated cost and not an actual liability, it should not be recorded as a liability on the financial statements.
d. It is possible that the proposed plan could achieve the goals of increasing the current ratio and decreasing the debt-to-equity ratio. By increasing subscriptions through the advertising campaign, Cutting Edge may generate additional revenue, which could potentially improve the current ratio. Additionally, if the revenue generated is used to pay down debt, it could decrease the debt-to-equity ratio. However, it is important to assess the financial impact of the plan and evaluate whether the expected increase in subscriptions and revenue will be sufficient to meet the specific requirements set by the bank loan officer.
#SPJ11
Learn more about the Controller of a company: https://brainly.com/question/32682144
Prepare a forecasted statement of cash flows for the company for 2020 assuming the following assumptions. Depreciation expense to start of year PPE, net 21.2% Amortization expense to start of year intangible assets, net 4.9% CAPEX to total net sales 1.8% Dividends to net earnings 33.5%
Operating Activities: Calculate net cash provided by operating activities.
Investing Activities: Calculate net cash used in investing activities.
Financing Activities: Calculate net cash used in financing activities.
Net Increase/(Decrease) in Cash and Cash Equivalents: Determine the overall change in cash and cash equivalents.
Forecasted Statement of Cash Flows for the Company for 2020:
Operating Activities:
Net Earnings
- Add: Depreciation Expense (PPE, net * 21.2%)
- Add: Amortization Expense (Intangible Assets, net * 4.9%)
= Net Cash Provided by Operating Activities
Investing Activities:
- Subtract: Capital Expenditures (Total Net Sales * 1.8%)
= Net Cash Used in Investing Activities
Financing Activities:
- Subtract: Dividends (Net Earnings * 33.5%)
= Net Cash Used in Financing Activities
Net Increase/(Decrease) in Cash and Cash Equivalents
= Net Cash Provided by Operating Activities + Net Cash Used in Investing Activities + Net Cash Used in Financing Activities
Please note that the percentages provided for depreciation expense and amortization expense are applied to the starting values of the respective asset accounts (PPE, net and Intangible Assets, net) to estimate the expenses for the year.
Similarly, the percentage of CAPEX to total net sales is used to estimate the capital expenditures for the year based on the projected net sales.
Dividends to net earnings ratio is used to estimate the dividends paid based on the projected net earnings.
The resulting values from these calculations are then used to prepare the forecasted statement of cash flows for the company for 2020.
learn more about "financing ":- https://brainly.com/question/20688650
#SPJ11
When regarding a PPF used with the trade model (between two countries or two people) the opportunity costs of producing more of the good on the X-axis are as you move down along the PPF. However, if you are using a PPF with the model of a tradeoff of one country or one person between 2 different goods, typically as you move down the production possibilities curve, opportunity costs are as you produce more of the good. Select one: a. constant; increasing b. decreasing; decreasing c. constant; decreasing d. increasing; increasing
According to the question the correct answer is increasing; increasing.
In the context of a production possibilities curve (PPF) for a single country or individual facing a tradeoff between two different goods, the opportunity costs of producing more of one good typically increase. This means that as you move down the PPF and produce more of a particular good, you have to give up increasing amounts of the other good. The opportunity cost is measured by the slope of the PPF, and it becomes steeper as you produce more of a specific good. This reflects the concept of diminishing marginal returns, where the additional output gained from allocating more resources to a specific good decreases over time.
To learn more about costs
https://brainly.com/question/28147009
#SPJ11
Shamrock Quest Games adjusts its accounts annually. Assume that any prepaid expenses are initially recorded in asse accounts. Assume that any revenue collected in advance is initially recorded as liabilities. The following information is available for the year ended December 31, 2024: 1. A $3,780 one-year insurance policy was purchased on April 1,2024. 2. Paid $5,650 on August 31,2024 , for five months' rent in advance. 3. On September 27,2024 , received $3,650 cash from a corporation that sponsors games for the most improved students attending a nearby school. The $3,650 was for 10 games, worth $365 each, that are played on the first Friday of each month starting in October. (Use the Unearned Revenue account.) 4. Signed a contract for cleaning services starting December 1,2024 , for $530 per month. Paid for the first three months on November 30, 2024. (Use Office Expense for the adjusting entry.) 5. On December 15,2024 , sold $930 of gift certificates to a local gaming club. On December 31,2024. determined that $490 of these gift certificates had not yet been redeemed. (Use the account Unearned Revenue.) For each transaction, prepare the journal entry to record the initial transaction. (Credit account titles are outomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter ofor the amounts. List all debit entries before credit entries.)
Shamrock Quest Games made the necessary journal entries to record the initial transactions related to prepaid expenses and unearned revenue. These entries ensure that the appropriate accounts reflect the expenses and revenue recognized in accordance with the accrual basis of accounting.
Shamrock Quest Games recorded the following transactions during the year ended December 31, 2024: 1) Purchased a one-year insurance policy for $3,780 on April 1, 2024; 2) Paid $5,650 on August 31, 2024, for five months' rent in advance; 3) Received $3,650 cash on September 27, 2024, for 10 games to be played starting in October; 4) Signed a contract for cleaning services starting December 1, 2024, and paid for the first three months on November 30, 2024; 5) Sold $930 of gift certificates on December 15, 2024, with $490 remaining unredeemed on December 31, 2024.
To record the purchase of the insurance policy on April 1, 2024:
Debit: Prepaid Insurance ($3,780)
Credit: Cash ($3,780)
To record the payment for five months' rent in advance on August 31, 2024:
Debit: Prepaid Rent ($5,650)
Credit: Cash ($5,650)
To record the receipt of cash for the sponsorship of games on September 27, 2024:
Debit: Cash ($3,650)
Credit: Unearned Revenue ($3,650)
To record the prepayment for cleaning services on November 30, 2024:
Debit: Prepaid Office Expense ($1,590) [($530/month) x 3 months]
Credit: Cash ($1,590)
To record the sale of gift certificates on December 15, 2024:
Debit: Cash ($930)
Credit: Unearned Revenue ($930)
To adjust for the unredeemed gift certificates on December 31, 2024:
Debit: Unearned Revenue ($490)
Credit: Gift Certificates ($490)
Learn more about transactions here
https://brainly.com/question/24730931
#SPJ11
The contract for the purchase of a $1500 fur coat requires payment in 30 days. If the bill is paid in 10 days, there will be a 4% discount. If the payment is not made in 30 days there is a $25 additional charge for each 30 -day period of delinquency. a) What rate of interest can the purchaser consider his money earns if he pays the bill in 10 days? (5) b) What rate of interest is the delinquency charge? (2) c) If the purchaser is running low on funds, would it be advisable for the purchaser to borrow money from a bank that charges 5% simple interest to take advantage of the discount? [Justify your answer mathematically]. On which day should the purchaser borrow the money? Why? (5;3) Textbook: mathematics of finance Author: May Albert E. Page 40 Question 12 A father's will leaves $30000 in a trust for his three children, aged 5,8 , and 10, with the direction that each child should receive an equal amount at the age of 21 . If the fund earns interest at (0.03,m=2), what does each child receive upon attaining his maturity? (8) Textbook: mathematics of finance Author: May Albert E. Page 41 Question 16 The executor of an estate agrees to settle all the claims against the estate immediately at 4% effective. The obligations are as follows: a) A non-interest-bearing note for $5000 due on march 1, 1954. b) A bill of $1500 which was due on June1, 1950 c) A note for $1000, drawn June 1, 1951, bearing interest at (0.04;m=2), and maturing June 1, 1957 If $7000 liquidates these debts, find the year, month and day in : which the settlement is made. (Hint: use June 1, 1957 as the comparison date) Question 33 a) Mr. Jones bought a lot for $5000 with a down payment of $500. He agreed to pay 6% simple interest on the balance. If he paid $2000 three months after the purchase and $1500 six months later, what payment 1 year later after the date of purchase will discharge his obligation? Put the focal date at the end of 1 year. Ans. $1157.50. (5;5) b) Use two methods to solve this problem. What can you say about the two methods in relations to the answer? (2) Textbook: mathematics of finance Author: Frank Ayres JR Page 79 Question 25 a) At what effective rate will a single payment of $1500 now be equivalent to two payments of $800 each due in 1 and 2 years respectively? Ans. 4.41% b) Mention three strategies that you used in solving the problem in question 25
The rate of interest the purchaser can consider his money earns if he pays the bill in 10 days is 1.46%. the rate of interest for the delinquency charge is 20.33%. The payment is made in 10 days, the purchaser should borrow the money 10 days before the payment is due.
a) The rate of interest the purchaser can consider his money earns if he pays the bill in 10 days can be calculated using the formula:Rate of Interest = (Discount / Principal) x (365 / Number of Days)
In this case, the principal is $1500 and the discount is 4% of $1500, which is $60. The number of days is 10. Plugging these values into the formula, we get:
Rate of Interest = (60 / 1500) x (365 / 10) = 0.04 x 36.5 = 1.46%
Therefore, the rate of interest the purchaser can consider his money earns if he pays the bill in 10 days is 1.46%.
b) The rate of interest for the delinquency charge can be calculated using the formula:
Rate of Interest = (Additional Charge / Principal) x (365 / Number of Days)
In this case, the principal is $1500 and the additional charge is $25. The number of days is 30.
Plugging these values into the formula, we get:Rate of Interest = (25 / 1500) x (365 / 30) = 0.0167 x 12.17 = 0.2033 or 20.33%
Therefore, the rate of interest for the delinquency charge is 20.33%.
c) To determine if it would be advisable for the purchaser to borrow money from a bank that charges 5% simple interest to take advantage of the discount, we need to compare the interest saved with the interest paid.
The interest saved from the discount is $60, which is 4% of $1500. The interest paid to the bank would be 5% of the borrowed amount.
Let's assume the purchaser borrows the full $1500 from the bank. The interest paid to the bank would be 5% of $1500, which is $75.
Since the interest saved from the discount is greater than the interest paid to the bank, it would be advisable for the purchaser to borrow money from the bank to take advantage of the discount.
To determine the day the purchaser should borrow the money, we need to consider the time it takes for the payment to reach the seller. Since the payment is made in 10 days, the purchaser should borrow the money 10 days before the payment is due.
Learn more about rate of interest here ;
https://brainly.com/question/28236069
#SPJ11
Using the straight-line method show how bonds issued at a discount affect financial statements Diaz Company issued $106,000 face value of bonds on January 1, Year 1 . The bonds had a 8 percent stated rate of interest and a tenyear term. Interest is paid in cash annually, beginning December 31 , Year 1 . The bonds were issued at 97 . The straight-line method is used for amortization. Required a. Use a financial statements model like the one shown below to demonstrate how (1) the January 1, Year 1 , bond issue and (2) the December 31, Year 1, recognition of interest expense, including the amortization of the discount and the cash payment, affect the company's financial statements. b. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31 , Year 1. c. Determine the amount of interest expense reported on the Year 1 income statement. d. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31 , Year 2 . e. Determine the amount of interest expense reported on the Year 2 income statement. Complete this question by entering your answers in the tabs below. Use a financial statements model like the one shown below to demonstrate how (1) the January 1 , Year 1 , bond issue and (2) the December 31 , Year 1, recognition of interest expense, including the amortization of the discount and the cash payment, affect the company's financiai statements. (Use + for increase, - for decrease and if the element is not affected, leave the cell blank. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA) and if there is no effect, leave the cell blank. Not all cells will require entry.) Show less A Use a financial statements model like the one shown below to demonstrate how (1) the January 1 , Year 1 , bond issue and (2) the December 31 , Year 1, recognition of interest expense, including the amortization of the discount and the cash payment, affect the company's financial statements. (Use + for increase, - for decrease and if the element is not affected, leave the cell blank. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA) and if there is no effect, leave the cell blank. Not all cells will require entry.) Complete this question by entering your answers in the tabs below. b. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31 , Year 1. c. Determine the amount of interest expense reported on the Year 1 income statement. d. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31 , Year 2. e. Determine the amount of interest expense reported on the Year 2 income statement.
a. The statement of cash flows. B. The accumulated amortization $95,718. C. The amortization expense $18,762. D. The accumulated amortization $85,083. and E. The sum of the stated interest expense ($6,806) and the amortization expense$17,441.
To demonstrate how bonds issued at a discount affect the financial statements using the straight-line method, let's go through the steps one by one:
a. January 1, Year 1, Bond Issue:
- On this date, Diaz Company issued $106,000 face value of bonds at 97, which means they were issued at a discount.
- The discount is calculated as the difference between the face value and the amount received, which is ($106,000 * 97%) = $102,820.
- The discount is recorded as a liability on the balance sheet under Bonds Payable and is gradually amortized over the life of the bond using the straight-line method.
- The cash received from the bond issue is recorded as an increase in Cash on the balance sheet under Financing Activities (FA).
- There is no effect on the income statement (Net Income) or the statement of cash flows.
b. Carrying Value as of December 31, Year 1:
- The carrying value is the face value of the bond less the unamortized discount.
- Since the bond has a ten-year term and is amortized using the straight-line method, the discount is amortized evenly over the ten years.
- The annual amortization expense is calculated as the discount divided by the number of years, which is ($102,820 / 10) = $10,282.
- Therefore, the carrying value is the face value of the bond ($106,000) minus the accumulated amortization ($10,282) = $95,718.
c. Interest Expense reported on the Year 1 income statement:
- The stated rate of interest on the bond is 8%, and the face value is $106,000.
- Therefore, the annual interest expense is calculated as the face value multiplied by the stated rate, which is ($106,000 * 8%) = $8,480.
- Additionally, the amortization of the discount is also considered as interest expense.
- The amortization expense is recorded as an increase in Interest Expense on the income statement.
- Therefore, the total interest expense reported on the Year 1 income statement is the sum of the stated interest expense ($8,480) and the amortization expense ($10,282) = $18,762.
d. Carrying Value as of December 31, Year 2:
- The carrying value at the end of Year 1 ($95,718) becomes the face value for the next year.
- The discount is still amortized over the remaining nine years (original term minus one year).
- The annual amortization expense for Year 2 is calculated as ($95,718 / 9) = $10,635.
- Therefore, the carrying value as of December 31, Year 2, is the face value ($95,718) minus the accumulated amortization ($10,635) = $85,083.
e. Interest Expense reported on the Year 2 income statement:
- The stated rate of interest on the bond is still 8%.
- The face value of the bond is now the carrying value from Year 2 ($85,083).
- Therefore, the annual interest expense is calculated as ($85,083 * 8%) = $6,806.
- The amortization expense is again considered as interest expense and is calculated as the annual amortization expense for Year 2 ($10,635).
- Therefore, the total interest expense reported on the Year 2 income statement is the sum of the stated interest expense ($6,806) and the amortization expense ($10,635) = $17,441.
This is how bonds issued at a discount affect the financial statements using the straight-line method.
To learn more about interest expense
https://brainly.com/question/28427118
#SPJ11
Why do corporate finance practitioners often refer to the interest rate as the discount rate? Are both rates the same number? Explain
Corporate finance practitioners often use the terms "interest rate" and "discount rate" interchangeably, as they serve similar purposes in financial analysis. Although they are not always equal, they are closely related concepts.
The interest rate represents the cost of borrowing money or the return on investment. It indicates the percentage at which interest is charged or earned on a loan or investment. In corporate finance, the interest rate is commonly employed to determine the cost of capital or the required rate of return for an investment.
On the other hand, the discount rate is utilized to calculate the present value of future cash flows. By discounting future cash flows back to their present value, it determines their current worth. The discount rate incorporates the concept of the time value of money, recognizing that money received in the future is worth less than the same amount received today.
Although the interest rate and discount rate may not always align numerically, they share a conceptual relationship. The discount rate often encompasses the interest rate as a component, along with other factors such as risk and inflation. In practice, corporate finance practitioners may employ different rates depending on the specific analysis or context.
Learn more about Corporate
https://brainly.com/question/32217998
#SPJ11
Suppose the demand for a good is estimated to be Q
D
=20−2P. The supply is estimated to be Q
S
=2P−4 Now suppose the government implements a tax of $2 per unit sold that the seller must pay. Determine the following (answers should be whole numbers - no decimals or fractions): a) Price consumers pay with the tax imposed =$ b) Quantity exchanged with tax imposed = units c) Price producers receive with tax imposed =$ d) Consumer surplus (after tax is imposed) =$ c) Price producers receive with tax imposed =$ d) Consumer surplus (after tax is imposed) =$ e) Producer surplus (after the tax is imposed) =$ f) Total tax revenue collected =$ g) Deadweight loss from the tax=$
a) Price consumers pay with the tax imposed = $8
b) Quantity exchanged with tax imposed = 6 units
c) Price producers receive with tax imposed = $6
d) Consumer surplus (after tax is imposed) = $4
e) Producer surplus (after the tax is imposed) = $8
f) Total tax revenue collected = $12
g) Deadweight loss from the tax = $2
a) The equilibrium price before the tax was imposed was $6. When the tax is $2, the price consumers pay is $8.
b) The equilibrium quantity before the tax was imposed was 8 units. After the tax is imposed, the quantity demanded decreases to 6 units.
c) The price producers receive with the tax imposed is $6.
d) The consumer surplus before the tax was imposed was ($1/2) x (8 - 6) x 6 = $6. After the tax is imposed, the consumer surplus is ($1/2) x (8 - 6) x 4 = $4.
e) The producer surplus before the tax was imposed was ($1/2) x (8 - 6) x 8 = $8. After the tax is imposed, the producer surplus is ($1/2) x (6 - 4) x 8 = $8.
f) The tax is $2 per unit sold. After the tax is imposed, only 6 units are sold. Therefore, the total tax revenue is $2 x 6 = $12.
g) The deadweight loss from the tax is ($1/2) x (8 - 6) x (8 - 6) - ($1/2) x (6 - 4) x (6 - 4) - $12 = $2.
To learn more about tax revenue visit:
https://brainly.com/question/29792127
#SPJ11
I've heard you've decided to start a business helping people turn antiques into interesting light fixtures. I really like this idea! Have you thought about which form of business ownership you will use? Yes, I know the two major options for me would be a sole proprietorship or partnership. I think I recall you saying that corporations only apply to large businesses. I know the three major options for me would be a sole proprietorship, partnership, or corporation. Yes, I know the only form of ownership that applies to a small business like mine is a sole proprietorship.
As you plan to start a business that will help people convert antiques into light fixtures, you must decide on the form of business ownership. The two significant options for you to choose from are sole proprietorship or partnership. However, corporations are also suitable for small businesses like yours. A corporation is an independent legal entity, and the owners of the corporation have limited liability for the company's debts. A corporation can enter into contracts, own property, and pay taxes, among other things.
The following is a detailed explanation of each form of ownership and its suitability for your business:
Sole proprietorship - A sole proprietorship is a type of business in which a single person owns and operates the business. The proprietor is in charge of all business aspects, including finances, operations, marketing, and management. A sole proprietorship is simple to establish and operate, but the proprietor is personally liable for the company's debts and obligations. A sole proprietorship is a suitable option for a small business that does not require a lot of resources or personnel.
Partnership - A partnership is a type of business in which two or more individuals share ownership and management of the company. Each partner contributes resources, such as money, property, or expertise, to the business. The partners share profits and losses equally or based on their contributions. A partnership can be either general or limited, depending on the partners' roles and responsibilities. A partnership is suitable for small businesses that require more resources and expertise than a sole proprietorship.
Corporation - A corporation is an independent legal entity that is owned by shareholders. The corporation has limited liability, and its owners are not responsible for the company's debts and obligations. A corporation's shareholders appoint a board of directors to oversee the company's management. A corporation is suitable for small businesses that require more resources and expertise than a sole proprietorship or partnership.
Learn more about corporations: brainly.com/question/13551671
#SPJ11
On 31 Jt January 2022, MacroApp said it will acquire software development company MicroSoft in a deal valued at $15 billion. With the acquisition, MacroApp gains control of the WinWin Operating System developed by MicroSoft. Over 85% of software users are running the Macro Operating System across all different types of computing devices globally. The acquisition will help MacroApp to increase the market share of its operating system customer base to 95%. Which of the following provides the most sensible justification for MacroApp's acquisition? MacroApp will achieve economy of scope through this acquisition. MacroApp will alleviate agency cost through this acquisition. MacroApp will gain monopoly power through this acquisition. MacroApp will decrease its financing cost through this acquisition. MacroApp will diversify its business through this acquisition.
MacroApp's acquisition of MicroSoft and the WinWin Operating System will enable it to gain monopoly power in the market, increasing its market share and potentially leading to higher profits and market dominance.
By acquiring MicroSoft, MacroApp gains control of the WinWin Operating System, which is used by over 85% of software users globally. This gives MacroApp a dominant position in the market, allowing them to exert significant control and influence over the industry.
With such a large market share, MacroApp can dictate terms, set prices, and limit competition, leading to increased profits and market dominance. This acquisition allows MacroApp to consolidate its position and establish itself as the leading provider of operating systems, thereby gaining monopoly power.
To know more about Acquisition visit-
brainly.com/question/28318155
#SPJ11
1. Share if your company or a company you are familiar with outsourcing either domestically (within the US) or internationally (offshore) any of its supply chain operations/products/services.
2. Include which supply chain operations/products / services and why?
3. How can sourcing enhance a firm's competitiveness?
As an AI language model, I don't have access to personal or company-specific information. However, I can provide you with general information about outsourcing and how it can enhance a firm's competitiveness.
1. Many companies, both large and small, outsource certain aspects of their supply chain operations/products/services. This can include both domestic and international outsourcing.
2. The specific supply chain operations/products/services that a company chooses to outsource depend on various factors such as the company's industry, core competencies, cost considerations, and strategic goals. Common areas that companies outsource include:
- Manufacturing: Companies may choose to outsource manufacturing processes to lower-cost countries to benefit from cost savings, specialized expertise, and increased production capacity.
- Logistics and Transportation: Outsourcing transportation and logistics functions can provide companies with access to efficient and specialized distribution networks, improved inventory management, and reduced transportation costs.
- IT Services: Many companies outsource IT services such as software development, application maintenance, and technical support to take advantage of specialized skills, cost savings, and access to the latest technologies.
- Customer Service: Outsourcing customer service operations, such as call centers, can provide companies with 24/7 support, multilingual capabilities, and cost-effective customer service solutions.
3. Sourcing, whether through domestic or international outsourcing, can enhance a firm's competitiveness in several ways:
- Cost Efficiency: Outsourcing certain operations or services to lower-cost locations can help companies reduce expenses, improve cost efficiency, and enhance profitability.
- Focus on Core Competencies: By outsourcing non-core functions, companies can focus their resources and expertise on their core competencies, allowing them to innovate, differentiate, and excel in their primary business activities.
- Scalability and Flexibility: Outsourcing enables companies to scale their operations quickly in response to market demands, without incurring significant fixed costs or infrastructure investments.
- Access to Specialized Expertise: Outsourcing allows companies to tap into the specialized skills and knowledge of external service providers, gaining access to industry best practices, advanced technologies, and specialized resources.
- Risk Mitigation: Through outsourcing, companies can transfer certain risks, such as operational or regulatory risks, to the service providers, who often have better capabilities and experience in managing those risks.
It's important to note that outsourcing decisions should be carefully evaluated, considering factors such as cost, quality, reliability, intellectual property protection, and potential risks associated with outsourcing to ensure the desired outcomes and competitiveness are achieved.
Learn more about company here:
https://brainly.com/question/30532251
#SPJ11
Anyone who does business without creating a separate business organization has a sole:____.
a. proprietorship.
b. corporation.
c. partnership.
d. none of these choices.
Anyone who does business without creating a separate business organization has a sole proprietorship. Option a is the answer.
A sole proprietorship is a shape of trade organization where a person works a trade without creating a partitioned lawful substance. In a sole proprietorship, the person claims and oversees the trade, accepts all the dangers and liabilities, and receives all the benefits. It is the only and most common shape of trade possession.
A sole proprietorship is a prevalent choice for little businesses and personal business visionaries due to its simplicity and ease of setup. It is an unincorporated trade structure, meaning there's no legitimate qualification between the commerce and the proprietor. The proprietor has full control over all viewpoints of the trade and accepts individual risk for its debts and commitments.
One of the key advantages of a sole proprietorship is its adaptability. The proprietor has the opportunity to form all trade choices without the requirement for meeting or consensus from other accomplices or shareholders. Moreover, the proprietor holds all the benefits produced by the trade.
know more about proprietorship
https://brainly.com/question/32997613
#SPJ4
Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC). Both projects require an annual return of 16 percent. Year Deepwater Fishing New Submarine Ride 0 −$995,000 −$1,940,000 1 415,000 990,000 2 546,000 845,000 3 465,000 840,000
The Bahamas Recreation Corporation (BRC) is evaluating two mutually exclusive projects: Deepwater Fishing and New Submarine Ride. Both projects have cash flows over a three-year period and require a minimum annual return of 16 percent. The cash flows for each project are provided for years 0 to 3.
To determine which project is more financially viable, we need to calculate the net present value (NPV) of each project. The NPV represents the difference between the present value of cash inflows and the present value of cash outflows, discounted at the required rate of return.
For the Deepwater Fishing project, we calculate the NPV by discounting the cash flows at a rate of 16 percent. In year 0, there is an initial cash outflow of $995,000. In years 1 to 3, there are cash inflows of $415,000, $546,000, and $465,000, respectively. By discounting these cash flows, we can determine the present value of each cash flow and sum them up to calculate the NPV for the Deepwater Fishing project.
Similarly, for the New Submarine Ride project, we discount the cash flows at a rate of 16 percent. The cash flows include an initial cash outflow of $1,940,000 in year 0 and cash inflows of $990,000, $845,000, and $840,000 in years 1 to 3, respectively. By discounting these cash flows, we can calculate the NPV for the New Submarine Ride project.
Comparing the NPVs of the two projects will help determine which project is more financially attractive. A positive NPV indicates that the project's present value of cash inflows exceeds the present value of cash outflows, making it a potentially profitable investment. Conversely, a negative NPV suggests that the project may not generate sufficient returns to meet the required rate of return of 16 percent.
To learn more about annual return: -brainly.com/question/10383221
#SPJ11
Early in 2020, Pharoah Equipment Company sold 600 Rollomatics at $5,700 each. During 2020, Pharoah spent $20,000 servicing the 2-year assurance warranties that accompany the Rollomatic. All sales transactions are on a cash basis. (a) Prepare 2020 entries for Pharoah. Assume that Pharoah estimates the total cost of servicing the warranties in the second year will be $37,000. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
(a) The 2020 entries for Pharoah Equipment Company can be prepared as follows: To record the sales of 600 Rollomatics at $5,700 each: Date Account Debit Credit, (Assuming all sales are for cash), Cash $3,420,000, Sales Revenue $3,420,000. To record the cost of servicing the warranties in 2020: Date Account Debit Credit, Warranty Expense $20,000, Cash $20,000. To record the estimated cost of servicing warranties in the second year: Date Account Debit Credit, Warranty Liability $37,000, Warranty Expense $37,000.
The first entry records the cash received from the sales of 600 Rollo matics. The debit to Cash represents the total cash received ($5,700 x 600 = $3,420,000), and the credit to Sales Revenue recognizes the revenue generated from the sales. The second entry records the actual cost of servicing warranties in 2020. The debit to Warranty Expense recognizes the expense incurred ($20,000), and the credit to Cash reflects the cash paid for warranty servicing. The third entry records the estimated cost of servicing warranties in the second year. The debit to Warranty Liability establishes a liability for the estimated future warranty expenses ($37,000), and the credit to Warranty Expense recognizes the expense for the estimated future costs. These entries accurately record the sales revenue, warranty expenses, and the establishment of a liability for future warranty servicing costs.
Learn more about Warranty Liability here: https://brainly.com/question/30431480.
#SPJ11
Consider the two period binomial model, with the stock price at time t=0,S 0
=4, the "up factor" u=2, "down factor" d=1/2, and risk free interest rate r=1/4 so that p
~
=1/2. Assume in each period the probability P[H]=3/4. Solve the two-period investors problem for Δ i
,i=0,1, if U(x)=−2e −x
and X 0
=10. Exercise 17. In the previous problem, what was the optimal percentage of wealth invested in the stock each period?
In this two-period binomial model, with an initial stock price of 4, up and down factors of 2 and 1/2 respectively, a risk-free interest rate of 1/4, and a probability of an up movement of 3/4, the call option values at each node are calculated. The backward recursion method is applied to find the call option values at time t = 0, which turn out to be 0 for all nodes. As a result, the optimal percentage of wealth invested in the stock for both periods is 0%.
The optimal investment strategy is to invest all of the wealth in the risk-free asset at each period.
The stock price at t = 0, S0 = 4
The "up factor" u = 2, "down factor" d = 1/2
Risk-free interest rate r = 1/4 and p = 1/2
The probability P[H] = 3/4For a 2-period binomial model, we have the following stock price tree using the given factors:
The stock price at each of the final nodes is:
S(2, 0) = 4 × 2 × 1/2
= 4S(2, 1) = 4 × 1/2 × 1/2 = 1S(2, 2)
= 4 × 1/2 × 2 = 4
The call option value at each of the final nodes is:
Δ(2, 0) = max[0, S(2, 0) - 150]
= max[0, -146] = 0Δ(2, 1)
= max[0, S(2, 1) - 150]
= max[0, -149] = 0Δ(2, 2)
= max[0, S(2, 2) - 150]
= max[0, -146] = 0
Using these values, we can compute the call option values at t = 1.
At time t = 0, we have:
C(1, 0) = (1/4)[(1/2)(0) + (1/2)(0)]
= 0C(1, 1) = (1/4)[(1/2)(0) + (1/2)(0)]
= 0C(1, 2) = (1/4)[(1/2)(0) + (1/2)(0)] = 0
We can now apply the backward recursion to find the call option value at t = 0:
C(0, 0) = (1/4)[(1/2)(0) + (1/2)(0)]
= 0C(0, 1) = (1/4)[(1/2)(0) + (1/2)(0)]
= 0C(0, 2) = (1/4)[(1/2)(0) + (1/2)(0)] = 0
Therefore, the solution is as follows:
Δ0 = Δ(1, 0)
= (C(1, 1) - C(1, 0))/(S(1, 1) - S(1, 0))
= 0/3 = 0Δ1 = Δ(0, 0)
= (C(0, 1) - C(0, 0))/(S(0, 1) - S(0, 0))
= 0/2 = 0
The optimal percentage of wealth invested in the stock each period is 0% for both periods.
Learn more about binomial
https://brainly.com/question/30339327
#SPJ11
On June 30,2021 , Vaughn SA issued R\$4,470,000 face value of 14%,20-year bonds at R$5,142,560, to yield 12%. The bonds pay semiannual interest on June 30 and December 31 . (a) Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, eg. 38,548 . If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Credit occount titles are automatically indented when amount is entered. Do not indent manually) (1) The issuance of the bonds on June 30, 2021 . (2) The payment of interest and the amortization of the premium on December 31,2021. (3) The payment of interest and the amortization of the premium on June 30,2022. (4) The payment of interest and the amortization of the premium on December 31,2022. No. Date Account Titles and Explanation (1) June 30, 2021 (2) December (3) June 30 , 2022 (4) December Show the proper statement of financial position presentation for the liability for bonds payable on the December 31,2022 . statement of financial position. (Round answers to O decimal places, e.g. 38,548.) Coronado SA Statement of Financial Position eTextbook and Media List of Accounts Attempts: 2 of 3 (c) Your answer is correct. Provide the answers to the following questions. (1) What amount of interest expense is reported for 2022? (Round answer to 0 decimal places, e.g. 38,548.) Interest expense reported for 2022R$ (2) Determine the total cost of borrowing over the life of the bond. (Round answer to 0 decimal places, e.g. 38,548.) Total cost of borrowing over the life of the bond R$
The issuance of the bonds on June 30, 2021: R$672,560. The payment of interest and the amortization of the premium on December 31, 2021: R$73,981. The interest expense reported for 2022 is the sum of the interest expenses recorded in transactions (3) and (4): R$80,706. The total cost of borrowing over the life of the bond is the sum of the premium on bonds payable and the interest expense reported for 2022: R$753,266.
To solve this problem, let's go through each transaction and prepare the necessary journal entries.
The issuance of the bonds on June 30, 2021: Date: June 30, 2021
Account Titles: Cash (Dr) R$5,142,560, Bonds Payable (Cr) R$4,470,000, Premium on Bonds Payable (Cr) R$(5,142,560 - 4,470,000) = R$672,560
The payment of interest and the amortization of the premium on December 31, 2021:
Date: December 31, 2021
Account Titles: Interest Expense (Dr) R$672,560 * 0.12 / 2 = R$40,353
Premium on Bonds Payable (Dr) R$672,560 / 20 = R$33,628
Cash (Cr) R$40,353 + R$33,628 = R$73,981
The payment of interest and the amortization of the premium on June 30, 2022:
Date: June 30, 2022
Account Titles: Interest Expense (Dr) R$672,560 * 0.12 / 2 = R$40,353, Premium on Bonds Payable (Dr) R$672,560 / 20 = R$33,628
Cash (Cr) R$40,353 + R$33,628 = R$73,981
The payment of interest and the amortization of the premium on December 31, 2022:
Date: December 31, 2022
Account Titles:
Interest Expense (Dr) R$672,560 * 0.12 / 2 = R$40,353
Premium on Bonds Payable (Dr) R$672,560 / 20 = R$33,628
Cash (Cr) R$40,353 + R$33,628 = R$73,981
Now, let's prepare the statement of financial position presentation for the liability for bonds payable on December 31, 2022:
Coronado SA Statement of Financial Position
Liabilities: Bonds Payable R$4,470,000
Less: Discount on Bonds Payable (Amortized Premium) R$33,628 * 3 = R$100,884
Net Bonds Payable (Liability) R$(4,470,000 - 100,884) = R$4,369,116
Finally, let's answer the additional questions:
What amount of interest expense is reported for 2022?
The interest expense reported for 2022 is the sum of the interest expenses recorded in transactions (3) and (4):
R$40,353 + R$40,353 = R$80,706
Determine the total cost of borrowing over the life of the bond.
The total cost of borrowing over the life of the bond is the sum of the premium on bonds payable and the interest expense reported for 2022:
R$672,560 + R$80,706 = R$753,266
know more about transaction here
https://brainly.com/question/32761288#
#SPJ11
Afex Engineering Company has cost of equity of 17%, cost of debt of 12% and debt ratio of 40%. The company is considering an investment project in its existing line of business. The project will need a cash outlay of $120million. It is expected to generate annual EBDIT of $35million for 8 years. The project will require $3million each year for net working capital and capital expenditure. Afex will be able to borrow 50% of the project’s cost from a financial institution at a rate of 12% p.a., and the loan will be repaid in five equal instalments after 3 years. Corporate tax rate is 30%, and assuming straight-line depreciation for tax purposes, with zero terminal value of the project; i. Determine whether Afex should undertake the project. ii. Due to the company’s credit worthiness, suppose the management of Afex is able to negotiate for a lower interest rate from the financial institution of 10% p.a. What effect would this have on the firm’s NPV?
i. Calculate the project's Net Present Value (NPV) by subtracting the initial cash outlay from the present value of cash flows. A positive NPV indicates project viability.
ii. Negotiating a lower interest rate would increase the project's NPV, making it more financially attractive and potentially improving profitability.
i. To determine whether Afex should undertake the project, we need to calculate the project's Net Present Value (NPV).
First, let's calculate the annual cash flows:
Annual EBDIT: $35 million
Annual net working capital and capital expenditure: -$3 million
Now, let's calculate the after-tax cash flows:
EBDIT - Taxes: ($35 million * (1 - tax rate))
Net working capital and capital expenditure - Taxes: (-$3 million * (1 - tax rate))
Next, calculate the present value of the cash flows using the appropriate discount rate for each year:
Discount rate for debt-funded portion: Cost of debt * (1 - tax rate)
Discount rate for equity-funded portion: Cost of equity
Calculate the present value of the cash flows for each year, including the cash inflow from the loan after 3 years. Subtract the initial cash outlay from the present value of the cash flows to obtain the NPV.
If the NPV is positive, the project should be undertaken as it is expected to generate more value than the initial cash outlay. If the NPV is negative, the project may not be financially viable.
ii. If the management of Afex is able to negotiate a lower interest rate of 10% p.a., it would result in a lower discount rate for the debt-funded portion of the project's cash flows. Consequently, the present value of the cash flows would be higher, leading to an increase in the NPV.
A lower interest rate reduces the cost of debt financing, making the project more attractive from a financial standpoint. The higher present value of the cash flows would contribute to a higher NPV, indicating increased profitability and value creation for the company.
In summary, negotiating a lower interest rate would positively impact Afex's NPV, making the project more favorable and potentially enhancing the company's financial performance.
learn more about "capital ":- https://brainly.com/question/23631000
#SPJ11
Exercise 3-19 (Algo) Calculating ratios; solve for unknowns [LO3-8]
The current asset section of Guardian Consultant’s balance sheet consists of cash, accounts receivable, and prepaid expenses. The balance sheet reported the following:
cash, $1,330,000; prepaid expenses, $390,000; long-term assets, $2,700,000; and shareholders’ equity, $2,800,000. The current ratio at the end of the year was 2.5 and the debt to equity ratio was 1.3.
Required: Determine the following amounts and ratios: Note: Round your "The acid-test ratio" answer to 1 decimal place.
1.) Current Liabilities
2.) Long-term Liabilities
3.) Accounts Receivable
4.) Acid-test ratio
We can determine the current liabilities and long-term liabilities based on the given ratios and values. However, the accounts receivable amount and the acid-test ratio cannot be calculated without further information.
To determine the required amounts and ratios, we can use the given information and some key formulas.
1.) Current Liabilities:
The current ratio is given as 2.5, which is calculated as Current Assets divided by Current Liabilities. We are given the Current Assets as the sum of cash, accounts receivable, and prepaid expenses, which amounts to $1,330,000 + Accounts Receivable + $390,000. Let's represent Current Liabilities as "CL." Using the formula for the current ratio, we can set up the equation:
2.5 = (1,330,000 + Accounts Receivable + 390,000) / CL
To solve for CL, we can multiply both sides of the equation by CL:
2.5 * CL = 1,330,000 + Accounts Receivable + 390,000
Simplifying the equation, we get:
2.5 * CL = 1,720,000 + Accounts Receivable
2.) Long-term Liabilities:
The debt to equity ratio is given as 1.3, which is calculated as Total Liabilities divided by Shareholders' Equity. We are given Shareholders' Equity as $2,800,000. Let's represent Long-term Liabilities as "LL." Using the formula for the debt to equity ratio, we can set up the equation:
1.3 = LL / 2,800,000
To solve for LL, we can multiply both sides of the equation by 2,800,000:
1.3 * 2,800,000 = LL
Simplifying the equation, we get:
LL = 3,640,000
3.) Accounts Receivable:
To determine the value of Accounts Receivable, we need additional information or another equation. The given data does not provide enough information to directly calculate this amount.
4.) Acid-test ratio:
The acid-test ratio, also known as the quick ratio, measures a company's ability to pay off its current liabilities with its most liquid assets. It is calculated as (Current Assets - Prepaid Expenses) divided by Current Liabilities. Using the given data, the acid-test ratio can be calculated as:
Acid-test ratio = (1,330,000 + Accounts Receivable) / CL
However, since we don't have the value of Accounts Receivable, we cannot calculate the acid-test ratio with the given information.In summary, we can determine the current liabilities and long-term liabilities based on the given ratios and values. However, the accounts receivable amount and the acid-test ratio cannot be calculated without further information.
Learn more about Liabilities here,https://brainly.com/question/14921529
#SPJ11
Describe the difference between "autonomous consumption" and "induced consumption". What happens to private saving when induced consumption increases? What happens to private saving when autonomous consumption increases? Explain.
Induced consumption is influenced by changes in disposable income and leads to changes in both consumption and private saving. When induced consumption increases, private saving tends to decrease. On the other hand, autonomous consumption represents the baseline level of consumption and is independent of income. Therefore, an increase in autonomous consumption does not directly affect private saving.
"Autonomous consumption" and "induced consumption" are two concepts used in the field of macroeconomics to describe different factors that influence consumer spending and, consequently, private saving.
Autonomous Consumption: Autonomous consumption refers to the level of consumer spending that occurs regardless of income levels. It represents the minimum level of consumption necessary for an individual or household to meet basic needs and sustain a certain standard of living. Autonomous consumption includes expenses on essential goods and services, such as food, clothing, and shelter. It is independent of changes in income or other economic variables.
Induced Consumption: Induced consumption, on the other hand, refers to the additional consumption that occurs as a result of changes in disposable income. Disposable income is the amount of income left after taxes have been deducted. When disposable income increases, individuals and households tend to spend more on discretionary goods and services, such as vacations, luxury items, and entertainment. Induced consumption is directly influenced by changes in disposable income and is considered a function of income.
Now let's consider the impact of changes in induced and autonomous consumption on private saving:
When induced consumption increases: If there is an increase in disposable income, individuals and households tend to spend more, leading to an increase in induced consumption. However, when consumption increases, the amount available for saving decreases. This is because people are using a larger portion of their income for spending rather than saving. Consequently, an increase in induced consumption generally leads to a decrease in private saving.
When autonomous consumption increases: Autonomous consumption represents the minimum level of consumption necessary for individuals to sustain their basic needs. An increase in autonomous consumption means that individuals are spending more even at lower income levels. However, this increase in autonomous consumption does not directly affect disposable income or the amount available for saving. Therefore, when autonomous consumption increases, private saving is not directly impacted.
To learn more about, autonomous consumption, click here, https://brainly.com/question/31868349
#SPJ11
Interstate businesses are exempt from state taxation because a state tax on interstate commerce would create an "undue burden" True False Arizona has enacted a law that says "no citizen may sell blue soda pop anywhere in the state." The federal government, however, has established the "Anti-Blue Sales Discrimination Act," prohibiting actions that discriminate against the color of goods sold. A local food and beverage vendor who sells blue soda pop in vending machines is charged with violating the state law. She challenges the law. Will she prevail? No, unless she can demonstrate that the law is an undue burden on commerce No, a state has a general police power to legislate for the health, welfare and safety of the public Yes, because of the supremacy clause Yes, unless the state can demonstrate a legitimate reason for the law Question 7 1 pts Even if state law does not explicitly conflict with federal law, it can still be struck down if congress has legitimately "occupied the field" with federal legislation True False
False. Interstate businesses are not exempt from state taxation simply because a state tax on interstate commerce would create an "undue burden." States have the authority to impose taxes on interstate businesses as long as the tax does not discriminate against interstate commerce or unduly burden it.
The court uses the "undue burden" test to determine if a state tax is constitutional. In the given scenario, the local food and beverage vendor who sells blue soda pop in vending machines is charged with violating the state law that prohibits the sale of blue soda pop.
She can challenge the law and argue that it violates the supremacy clause, which states that federal law takes precedence over state law. Therefore, the answer is "Yes, because of the supremacy clause."
To know more about businesses visit:
https://brainly.com/question/15826604
#SPJ11
Hoagland Corp's stock price at the end of last year was $ 48.50, and its book value per share was $25.00. What was its market/book ratio? 1.55 2.17 1.63 1.94 1.80
Option D 1.94 is the correct choice. The market-to-book ratio (M/B) is a financial metric used to assess whether a stock is overvalued or undervalued.
It is calculated by dividing the stock's market price by its book value per share. A ratio greater than 1 suggests that the stock is overvalued, while a ratio less than 1 indicates that the stock is undervalued.
For example, if the M/B ratio is 1.55, it means that the stock is trading at 1.55 times its book value per share. To calculate the market/book ratio for Hoagland Corp, we need to determine the market price per share and the book value per share. Let's assume:
Market price per share = $48.50
Book value per share = $25.00
To calculate the market/book ratio, we divide the market price per share by the book value per share:
Market/book ratio = Market price per share / Book value per share
Market/book ratio = $48.50 / $25.00
Market/book ratio = 1.94
Therefore, Hoagland Corp's market/book ratio is 1.94. This suggests that the stock is trading at nearly twice its book value per share, indicating a potential overvaluation.
To learn more about market-to-book ratio
https://brainly.com/question/28499282
#SPJ11
Which of the following taxpayers is not eligible for a qualified business income deduction?
a.
Leroy's Hot Dog Restaurant, a sole proprietorship
b.
Kallie who is employed by Dillards Department Store
c.
Tom, a Uber driver who is self-employed.
d.
Sandra, a general partner of a large accounting firm.
2.Eagle Company, a partnership, had a short-term capital loss of $10,000 during the current year. Aaron, who owns 25% of Eagle, will report $2,500 of Eagle’s short-term capital loss on his individual tax return.
A. true
B. false
1. The taxpayer who is not eligible for a qualified business income deduction is Kallie. The correct option is b. ; 2. The correct option is B. false
Let's go through questions one by one:
1. The taxpayer who is not eligible for a qualified business income deduction is b. Kallie who is employed by Dillards Department Store.
This deduction is available to owners of pass-through entities such as sole proprietorships, partnerships, and S-corporations, but not to employees. The correct option is b,
2. The correct answer is B. false. Aaron, as a partner in Eagle Company, will report his share of the partnership's short-term capital loss on his individual tax return.
So, if he owns 25% of Eagle, he will report 25% of the $10,000 short-term capital loss, which would be $2,500.
Know more about the income deduction
https://brainly.com/question/29392161
#SPJ11
Calculate the operating cash flow. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. Calculate the change in net working capital. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. Calculate the net capital spending. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) d. Calculate the cash flow from assets. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) e. Calculate the cash flow to creditors. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) f. Calculate the cash flow to stockholders. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) a. Operating cash flow b. Change in net working capital c. Net capital spending d. Cash flow from assets e. Cash flow to creditors f. Cash flow to stockholders Graffiti Advertising, Incorporated, reported the following financial statements for the last two years. 2021 Income Statement Sales $ 565,200 Costs of goods sold 274,025 Selling & administrative 124,733 Depreciation 54,576 EBIT Interest $ 111,866 19,296 EBT $ 92,570 48,137 Taxes Net income 44,433 Dividends Addition to retained earnings $ 9,600 $ 34,833 Cash Accounts receivable Inventory GRAFFITI ADVERTISING, INCORPORATED Balance Sheet as of December 31, 2020 $ 13,320 Accounts payable 18,994 Notes payable 13,794 Current liabilities $ 46,108 Long-term debt $ 9,504 14,508 Current assets $ 24,012 $ 136,800 $ 229,722 Net fixed assets $ 344,426 Owners' equity Total assets $ 390,534 Total liabilities and owners' equity $ 390,534 Cash Accounts receivable Inventory GRAFFITI ADVERTISING, INCORPORATED Balance Sheet as of December 31, 2021 $ 14,306 Accounts payable 21,099 Notes payable 22,754 Current liabilities $ 10,512 16,466 Current assets $ 58,159 Long-term debt $ 26,978 $ 152,000 $ 285,492 Net fixed assets $ 406,311 Owners' equity Total assets $ 464,470 Total liabilities and owners' equity $ 464,470
The answers to the given questions are as follows:
a. Operating cash flow: The operating cash flow for the company is $118,305.
b. Change in net working capital: The change in net working capital is $13,647.
c. Net capital spending: The net capital spending is $116,461.
d. Cash flow from assets: The cash flow from assets is $1,844.
e. Cash flow to creditors: The cash flow to creditors is $1,822.
f. Cash flow to stockholders: The cash flow to stockholders is $9,600.
To calculate the various cash flow components, we need to analyze the changes in the financial statements for Graffiti Advertising, Incorporated.
Let's calculate each component step by step:
a. Operating cash flow:
Operating Cash Flow = EBIT + Depreciation - Taxes
Operating Cash Flow = $111,866 + $54,576 - $48,137
Operating Cash Flow = $118,305
b. Change in net working capital:
Change in Net Working Capital = (Current Assets 2021 - Current Liabilities 2021) - (Current Assets 2020 - Current Liabilities 2020)
Change in Net Working Capital = ($58,159 - $10,512) - ($24,012 - $46,108)
Change in Net Working Capital = $13,647
c. Net capital spending:
Net Capital Spending = Net Fixed Assets 2021 - Net Fixed Assets 2020 + Depreciation
Net Capital Spending = $406,311 - $344,426 + $54,576
Net Capital Spending = $116,461
d. Cash flow from assets:
Cash Flow from Assets = Operating Cash Flow - Net Capital Spending
Cash Flow from Assets = $118,305 - $116,461
Cash Flow from Assets = $1,844
e. Cash flow to creditors:
Cash Flow to Creditors = Interest - Net New Borrowing
Cash Flow to Creditors = $19,296 - ($26,978 - $9,504)
Cash Flow to Creditors = $1,822
f. Cash flow to stockholders:
Cash Flow to Stockholders = Dividends - Addition to Retained Earnings
Cash Flow to Stockholders = $44,433 - $34,833
Cash Flow to Stockholders = $9,600
Learn more about Cash Flow from the given link:
https://brainly.com/question/30066211
#SPJ11
In a few sentences explain what are the two distinct possible sources of higher returns on ESG funds
The two distinct possible sources of higher returns on ESG funds are Improved risk management and Long-term value creation.
The two distinct possible sources of higher returns on Environmental, Social, and Governance (ESG) funds are:
1. Improved risk management: ESG factors allow for a more comprehensive assessment of risks and opportunities.
By integrating environmental, social, and governance considerations into investment decisions, ESG funds can identify and mitigate potential risks, such as climate change impacts or regulatory non-compliance, leading to potentially higher returns.
2. Long-term value creation: ESG funds focus on investing in companies that prioritize sustainable practices and responsible business conduct. These companies are often better positioned to generate long-term value by attracting investors, customers, and talented employees.
Their sustainable strategies can result in improved operational efficiency, innovation, and market positioning, leading to potentially higher financial performance over time.
Learn more about Risk management from the link:
https://brainly.com/question/29787414
#SPJ11
Who was the military officer who arrived in 1610 to turn the fortunes of the jamestown colony?
Thomas West, 3rd Baron De La Warr, was the military commander who came to the Jamestown colony in 1610 to change its course.
He goes under the moniker Lord De La Warr. He established stringent rules, strengthened the colony's defences, and brought in much-needed supplies and troops as soon as he arrived. His actions contributed to the survival of Jamestown by stabilising it. The river that flows through the settlement and is now called the Delaware River was given his name by the English.
To know more about Jamestown colony :
https://brainly.com/question/14623795
#SPJ4
You purchased 275 shares of Red House, Inc. at \$61.38 per share. Since then, the company initiated dividends and you have received the following dividends per share: $0.17 (September 19), $0.17 (December 16), $0.19 (March 18), $0.19 (June 17), \$0.19 (September 17) The current price of the stock is $63.09. What is the Holding Period Return (Total Vield) in percent ( $ )? 4.25K 279 K 375x 271 K 4.27 N
Approximately 4.48% is the Holding Period Return (Total Yield).We must take into account the initial investment, the dividends received, and the current stock price in order to determine the Holding Period Return (Total Yield).
1. Calculate the initial investment:
You purchased 275 shares at $61.38 per share, so the initial investment is 275 * $61.38 = $16,845.
2. Calculate the total dividends received:
Add up all the dividends received: $0.17 + $0.17 + $0.19 + $0.19 + $0.19 = $0.91 per share.
Multiply the total dividends per share by the number of shares: $0.91 * 275 = $250.25.
3. Calculate the current value of the investment:
The current price of the stock is $63.09 per share.
Multiply the current price by the number of shares: $63.09 * 275 = $17,349.75.
4. Calculate the Holding Period Return (Total Yield):
Subtract the initial investment from the current value: $17,349.75 - $16,845 = $504.75.
Add the total dividends received to the result: $504.75 + $250.25 = $755.
Calculate the percentage return by dividing the result by the initial investment and multiplying by 100: ($755 / $16,845) * 100 ≈ 4.48%.
Learn more about initial investment
https://brainly.com/question/16781185
#SPJ11
What is the value in 3 years of $21,500 deposited in an account earning 3% compounded monthly?
Question 6 options:
$23,493.63
$62,312.98
$21,661.65
$23,522.11
The value in 3 years of $21,500 deposited in an account earning 3% compounded monthly is approximately $23,522.11.
To calculate the future value of $21,500 deposited in an account earning 3% compounded monthly for 3 years, we can use the formula for compound interest:
Future Value = Principal × (1 + (Interest Rate / Number of Compounding Periods))^(Number of Compounding Periods × Number of Years)
Plugging values, the calculation becomes:
Future Value = $21,500 × (1 + (0.03 / 12))^(12 × 3)
Simplifying this equation, we get:
Future Value = $21,500 × (1.0025)^(36)
Future Value ≈ $23,522.11
Therefore, the value in 3 years of $21,500 deposited in an account earning 3% compounded monthly is approximately $23,522.11.
Learn more about account here:
https://brainly.com/question/1033449
#SPJ11
Read the Continuing Case at the end of Chapter 8 about Carter Cleaning Company and then answer the following questions. Specifically, what should the Carters cover in their new employee orientation program, and how should they convey this information? Which specific training techniques should Jennifer use to train her pressers, her cleaner/spotters, her managers, and her counter people? Why should these training techniques be used? The Carter Cleaning Centers currently have no formal orientation or training policies or procedures, and Jennifer believes this is one reason why the standards to which she and her father would like employees to adhere to are generally not followed. The Carters would prefer that certain practices and procedures be used in dealing with the customers at the front counters. For example, all customers should be greeted with what Jack refers to as a "big hello." Garments they drop off should immediately be inspected for any damage or unusual stains so these can be brought to the customer's attention, lest the customer later return to pick up the garment and erroneously blame the store. The garments are then supposed to be placed together in a nylon sack immediately to separate them from other customers' garments. The ticket also has to be carefully written, with the customer's name and telephone number and the date clearly noted on all copies. The counter person is also supposed to take the opportunity to try to sell the customer additional services such as waterproofing, or simply notify the customer that "Now that people are doing their spring cleaning, we're having a special on drapery cleaning all this month." Finally, as the customer leaves, the counter person is supposed to make a courteous comment like "Have a ruice day." Each of the other jobs in the stores -pressing, cleaning and spotting, and so forth-similarly contain certain steps, procedures, and, most important, standards the Carters would prefer to see upheld. The company has had problems, Jennifer feels, because of a lack of adequate employee training and orientation. For example, two new employees became very upset last month when they discovered that they were not paid at the end of the week, on Friday, but instead were paid (as are all Carter employees) on the following Tuesday. The Carters use the extra two days in part to give them time to obtain everyone's hours and compute their pay. The other reason they do it, according to Jack, is that "frankly, when we stay a few days behind in paying employees it helps to ensure that they at least give us a few days' notice before quitting on us. While we are certainly obligated to pay them anything they earn, we find that psychologically they seem to be less likely to just walk out on us Friday evening and not show up Monday morning if they still haven't gotten their pay from the previous week. This way they at least give us a few days' notice so we can find a replacement." There are other matters that could be covered during orientation and training, says Jennifer. These include company policy regarding paid holidays, lateness and absences, health benefits (there are none, other than workers' compensation), substance abuse, eating or smoking on the job (both forbidden), and general matters like the maintenance of a clean and safe work area, personal appearance and cleanliness, time sheets, personal telephone calls, and personal e-mail. Jennifer believes that implementing orientation and training programs would help to ensure that employees know how to do their jobs the right way. And she and her father further believe that it is only when employees understand the right way to do their fobs that there is any hope their iobs Jennifer believes that implementing orientation and training programs would help to ensure that employees know how to do their jobs the right way. And she and her father further believe that it is only when employees understand the right way to do their jobs that there is any hope their jobs will be accomplished the way the Carters want them to be accomplished.
The Carters should cover company policies, customer service practices, job-specific procedures, and expectations in their new employee orientation program.
They should convey this information through interactive training sessions, hands-on demonstrations, visual aids, and written materials. Jennifer should use techniques such as on-the-job training, role-playing, shadowing experienced employees, and providing feedback and coaching. These training techniques should be used because they facilitate effective learning, help employees understand and internalize the desired standards and procedures, and improve their job performance. Orientation and training programs will ensure that employees know how to perform their jobs correctly, adhere to company policies, provide excellent customer service, and maintain a clean and safe work environment. The Carters need to establish a comprehensive orientation program to introduce new employees to the company's expectations and practices. By covering topics such as company policies, customer service, and job-specific procedures, they can set clear standards and help employees understand their roles and responsibilities. The information should be conveyed through a variety of training techniques to accommodate different learning styles and enhance retention. Interactive sessions and hands-on demonstrations enable employees to actively participate and practice the desired behaviors. Visual aids and written materials provide reference materials for ongoing learning. For job-specific training, techniques like on-the-job training, role-playing, and shadowing experienced employees allow new hires to observe and learn from experienced staff. Additionally, providing feedback and coaching helps employees improve their performance and align with the Carters' expectations. By implementing these training techniques, the Carters can ensure that employees have the necessary knowledge and skills to carry out their jobs effectively and meet the desired standards.
Learn more about company here:
https://brainly.com/question/30532251
#SPJ11
Which private equity strategy specializes in leveraged acquisitions of shares in established businesses?
A. Buyouts
B. Venture Capital
C. Distressed Debt
D. Mezzanine Debt
Buyouts are often funded through a combination of debt and equity, and the debt is typically secured by the assets of the target company.
The private equity strategy that specializes in leveraged acquisitions of shares in established businesses is buyouts.
Buyouts are transactions that involve acquiring a controlling interest in an established business with the intention of selling or restructuring the business at a later date to realize a significant return on investment.
There are several types of buyouts, including management buyouts (MBOs), in which the existing management team of the target company buys out the company from its current owners; and leveraged buyouts (LBOs), in which the acquiring company uses a significant amount of debt to finance the acquisition.
These types of buyouts are often used by private equity firms to acquire established companies that have a proven track record of profitability but may be underperforming or undervalued.
The buyout strategy is focused on acquiring established businesses with a strong cash flow and growth potential, and then using operational and financial improvements to increase the value of the company over time.
To know more about leveraged visit:-
https://brainly.com/question/33088040
#SPJ11
The McDonald's golden arches (see picture) is an example of a Brand Packaging Logo Label
The McDonald's golden arches are not an example of brand packaging, logo, or label. The golden arches are actually trademarked logo that represents the McDonald's brand. A trademark is a unique symbol, design, or word that identifies and distinguishes a company's products or services from those of other companies.
In the case of McDonald's, the golden arches logo is instantly recognizable and is associated with their fast food restaurants.
Brand packaging refers to the physical packaging that a product is presented in, such as a box, bag, or bottle. It includes elements like the design, colours, and materials used to create the packaging. The golden arches logo is often displayed on McDonald's packaging, such as food containers and bags, but it is not the packaging itself.
A logo, on the other hand, is a graphic or symbol that represents a company or brand. It is used to visually identify the company and create brand recognition. The McDonald's golden arches logo is an iconic example of a logo that is widely recognized and associated with the McDonald's brand.
A label, meanwhile, is a piece of information or identification attached to a product or its packaging. It typically includes details like the product name, ingredients, and nutritional information. While the golden arches logo may be displayed on McDonald's product labels, it is not itself a label.
In summary, the McDonald's golden arches are not an example of brand packaging, logo, or label. They are trademarked logo that represents the McDonald's brand and is displayed on various elements of the brand's visual identity, including packaging and labels.
Learn more about trademark here ;
https://brainly.com/question/29841205
#SPJ11
CASE: UPDATING PHONE-E LTD'S ACCOUNTING POLICY MANUAL Phone-E Ltd 1 operates in the telecommunications industry. Many years ago, Phone-E Ltd withdrew from the retail market due to intense competition from international suppliers. Recently, Phone-E Ltd decided to re-enter the retail market and has four new products: The prepaid SIM is for the provision of data service over a period of time. Phone-E Ltd had sold similar items a long time ago and the accounting treatment for them is described in the company's Accounting Policy Manual. The accountant has already updated the Accounting Policy Manual for the sale of the phone and the prepaid SIM cards as separate items. She said, "I am going on holidays now, so try and finish this task before I get back on 20 September. It was very easy; I just changed the name of the Accounting Standard because the accounting treatment is the same under the new Standard." 1 While an attempt has been made to provide realistic transactional data, the firm in this assignment is fictitious and any resemblance to any actual entity is coincidental. 1 Extract from Phone-E Ltd's Accounting Policy Manual Sale of Combined Phone plus prepaid SIM card Recognise all of the consideration received as unearned revenue when received and amortise to revenue as data is used until the expiry date. Recognise any unamortised unearned revenue as revenue when the contract expires. Recognise the cost of providing data as an expense, based on standard cost and the amount of data provided each month. Disclose the policy for accounting for revenue for data service and the carrying amount of unearned revenue at the end of the reporting period. (Reference AASB 118: Extract from Phone-E Ltd's Accounting Policy Manual Sale of Combined Phone plus prepaid SIM card Recognise all of the consideration received as unearned revenue when received and amortise to revenue as data is used until the expiry date. Recognise any unamortised unearned revenue as revenue when the contract expires. Recognise the cost of providing data as an expense, based on standard cost and the amount of data provided each month. Disclose the policy for accounting for revenue for data service and the carrying amount of unearned revenue at the end of the reporting period. (Reference AASB 118: Revenue). Recognise the cost of the phone as a "customer acquisition asset" at the beginning of the contract. Classify it as an intangible asset and amortise it over three years. Disclose the policy for accounting for cost of phones and the assumption that customers will renew their contracts for several years.
In order to update Phone-E Ltd's Accounting Policy Manual for the sale of combined phones and prepaid SIM cards, the following steps should be taken:
1. Recognize all consideration received as unearned revenue when received.
2. Amortize the unearned revenue to revenue as data is used until the expiry date.
3. Recognize any unamortized unearned revenue as revenue when the contract expires.
4. Recognize the cost of providing data as an expense, based on standard cost and the amount of data provided each month.
5. Disclose the policy for accounting for revenue for data service and the carrying amount of unearned revenue at the end of the reporting period, referencing AASB 118: Revenue.
6. Recognize the cost of the phone as a "customer acquisition asset" at the beginning of the contract.
7. Classify the cost of the phone as an intangible asset and amortize it over three years.
8. Disclose the policy for accounting for the cost of phones and the assumption that customers will renew their contracts for several years.
These steps ensure that the accounting treatment for the sale of combined phones and prepaid SIM cards is properly recorded in the updated Accounting Policy Manual. Remember to complete this task before the accountant returns on September 20th.
To know more about Accounting Policy visit:
https://brainly.com/question/32600696
#SPJ11
