The total depreciation amount for 2020, assuming the taxpayer opted out of Sec. 179 and bonus depreciation, would be $15,384.
To determine the total depreciation amount, we need to consider the appropriate depreciation method and recovery period for the property mentioned. Since the taxpayer opted out of Sec. 179 and bonus depreciation, we can assume that the property will be depreciated using the regular depreciation methods.
Based on the information provided, we don't have specific details about the type of property or its recovery period. However, assuming the property falls under the category of nonresidential real property, the recovery period is 39 years for properties placed in service after December 31, 2017.
Using the straight-line depreciation method, we can calculate the annual depreciation expense by dividing the property's cost by the recovery period. In this case, the depreciation expense for 2020 would be $321,000 divided by 39, resulting in approximately $8,231.
Therefore, the total depreciation amount for 2020 would be $8,231 multiplied by 2 (assuming the property was purchased in the beginning of 2020) for a total of $16,462. However, since the taxpayer opted out of bonus depreciation, we need to subtract half of the regular depreciation expense for the first year, resulting in a total depreciation amount of $15,384 for 2020.
Learn more about depreciation amount here:
brainly.com/question/29509600
#SPJ11
Respond to the following in a minimum of 175 words:
Read 9 Ways Social Media Is Impacting the Business of Healthcare from Healthcare Finance. How does social media affect the quality of consumer relationships and communication in health care? Are there new communication skills needed by health care managers to effectively leverage social media?
9 ways social media is impacting the business of healthcare.
Social media impacts the business of healthcare by improving consumer relationships and communication, requiring healthcare managers to possess new communication skills.
Social media has significantly influenced the quality of consumer relationships and communication in the healthcare industry. It has revolutionized how patients and healthcare providers interact, offering new avenues for information sharing, engagement, and support. Firstly, social media allows patients to access a wealth of healthcare information, enabling them to be more informed and proactive in managing their health. They can seek advice from healthcare professionals, connect with patient communities, and share personal experiences. This increased access to information fosters a sense of empowerment and enables patients to make more educated decisions.
Moreover, social media facilitates direct and immediate communication between patients and healthcare providers. It enables patients to easily reach out to healthcare professionals, ask questions, and receive prompt responses. This level of engagement enhances the patient experience, builds trust, and strengthens the provider-patient relationship. It also allows healthcare organizations to disseminate important health-related information to a wide audience, promoting preventive care and public health initiatives.
However, leveraging social media effectively requires healthcare managers to possess new communication skills. They must navigate the complexities of online platforms, maintain professionalism, and adhere to privacy regulations. Additionally, they need to understand social media trends, monitor online conversations, and respond promptly and appropriately to patient inquiries or feedback. Health care managers should also be adept at utilizing analytics to measure the impact of social media strategies and make informed decisions.
Overall, social media has transformed healthcare communication, empowering patients and facilitating more dynamic and personalized interactions. Healthcare managers must acquire the necessary skills to effectively leverage social media and maximize its benefits in building strong consumer relationships and enhancing patient care.
Learn more about industry here:
https://brainly.com/question/32605591
#SPJ11
Consider the following regression results from a study conducted by the admission office at the AAA Business MBA program (standard errors are in parentheses):
Gi=1.00+0.005Mi+0.20Bi-0.10Ai+0.25Si
(0.001) (0.20) (0.10) (0.10)
R2 =0.65 N = 200
Where G_i = GPA at the AAA Business School of the ith student
M_i = the score on the graduate management admission test of the ith student
B_i = the number of years of business experience of the ith student
A_i = age of the ith student
S_i = dummy equal to 1 if the ith student was a business major, 0 otherwise
What problems appear to exist in this equation (omitted variables, irrelevant variables, or multicollinearity).
The regression equation of the study conducted by the admission office at the AAA Business MBA program is given by Gi=1.00+0.005Mi+0.20Bi-0.10Ai+0.25SiThe standard errors are in the parentheses.
The equation also shows the R2 value and N values. The coefficients in the equation are the independent variables that explain the variance in the dependent variable. The equation can be explained using the given variables below:
Gi = GPA at the AAA Business School of the it h student Mi = the score on the graduate management admission test of the it h student Bi = the number of years of business experience of the it h student Ai = age of the it h student Si = dummy equal to 1 if the it h student was a business major, 0 otherwise.
There are several problems that appear to exist in this equation. These are discussed below: Omitted variables There is a possibility that some other variables may affect the GPA of the student. The equation does not consider all the variables that could impact the GPA.
To know more about regression visit:
https://brainly.com/question/32505018
#SPJ11
In order to save for your retirement, you want to save $5,000 every year for 25 years, starting one year from now. The annual interest rate on your savings account is 5%. How much money will you have in your account in 25 years?
You will have approximately $244,573.40 in your account in 25 years.
To calculate the future value of your savings, you can use the formula for the future value of an ordinary annuity: FV = P * ((1 + r)^n - 1) / r, where FV is the future value, P is the annual payment, r is the interest rate per period, and n is the number of periods.
In this case, the annual payment is $5,000, the interest rate is 5% (or 0.05), and the number of periods is 25. Plugging these values into the formula, we get FV = 5000 * ((1 + 0.05)^25 - 1) / 0.05 ≈ $244,573.40.
Therefore, in 25 years, with an annual savings of $5,000 and an interest rate of 5%, you will have approximately $244,573.40 in your account.
To learn more about Plugging click here
brainly.com/question/26091373
#SPJ11
Last year, your company purchased a site license to the accounting software suite CookTheBooks® for $10,000. Yesterday, your IT department discovered that the software erroneously calculates 2 + 2 = 5 and suggested purchasing a replacement software, BeanCounter®, for $15,000. How should your company assess or quantify the cost of the decision to replace its software?
When it comes to evaluating or quantifying the cost of replacing the software, the first step is to analyze the benefits and drawbacks of purchasing Bean Counter.
The total cost of replacing the software can be assessed by comparing the total cost of ownership (TCO) of the two accounting software solutions. In doing so, both direct and indirect costs must be considered.
Finally, the amount of time it takes to get employees used to the new system should be factored in when calculating TCO. It will take time to master the new system, which may result in a decrease in productivity in the short term.
Billed For $6,500, And The Balance Due Was Received On March 1,2019. Required: 1. Prepare The Journal Entries To Record The
Journal entries to record the preceding information assuming accounts receivable and sales are recorded at (a) the gross price and (b) the net price:
(a) Recording at the Gross Price:
On February 1, 2019:
Accounts Receivable 16,000
Sales Revenue 16,000
On February 10, 2019:
Cash 6,500
Accounts Receivable 6,500
On March 1, 2019:
Cash 9,450 (16,000 - 1,600 discount)
Sales Discount Allowed 1,600
Accounts Receivable 10,000
(b) Recording at the Net Price:
On February 1, 2019:
Accounts Receivable 14,400 (16,000 - 10% discount)
Sales Revenue 14,400
On February 10, 2019:
Cash 6,500
Accounts Receivable 6,500
On March 1, 2019:
Cash 14,400
Accounts Receivable 14,400
To calculate the implied annual interest rate incurred by the customer for not taking the cash discount, we can use the following formula:
Implied Annual Interest Rate = (Discount / (Net Price - Discount)) * (365 / Credit Period)
Given:
Discount = $1,600
Net Price = $16,000 - $1,600 = $14,400
Credit Period = 30 days
Implied Annual Interest Rate = (1,600 / (14,400 - 1,600)) * (365 / 30)
Implied Annual Interest Rate = (1,600 / 12,800) * 12.17
Implied Annual Interest Rate = 0.125 * 12.17
Implied Annual Interest Rate ≈ 1.521%
The customer is incurring an implied annual interest rate of approximately 1.521% by failing to take the cash discount.
Recording accounts receivable at the net price is theoretically superior because it reflects the amount the company expects to receive from the customer after applying any discounts or allowances. It provides a more accurate representation of the company's receivables and allows for better tracking of the actual revenue generated from sales.
Recording at the net price also simplifies the accounting process by eliminating the need to create separate entries for discounts. It ensures that the accounts receivable balance accurately reflects the expected cash inflow, providing a clearer picture of the company's financial position.
Additionally, recording at the net price promotes consistency in financial reporting and comparability across different periods. It allows for easier analysis and evaluation of the company's performance and efficiency in collecting receivables.
Learn more about Journal entries here:
https://brainly.com/question/29734252
#SPJ11
Eastman Corporation sells merchandise with a list price of $16,000 on February 1, 2019, with terms of 1/10, n/30. On February 10, 2019, payment was received on merchandise originally billed for $6,500, and the balance due was received on March 1, 2019.
Required:
1. Prepare the journal entries to record the preceding information assuming that Eastman records accounts receivable and sales at (a) the gross price and (b) the net price.
2. Next Level What implied annual interest rate is Eastman’s customer incurring by failing to take the cash (sales) discount? (Assume a 365-day year.)
3. Next Level Which method—recording accounts receivable at the gross price or net price—is theoretically superior? Why?
Journal entries to record the preceding information assuming accounts receivable and sales are recorded at (a) the gross price and (b) the net price:
(a) Recording at the Gross Price:
On February 1, 2019:
Accounts Receivable 16,000
Sales Revenue 16,000
On February 10, 2019:
Cash 6,500
Accounts Receivable 6,500
On March 1, 2019:
Cash 9,450 (16,000 - 1,600 discount)
Sales Discount Allowed 1,600
Accounts Receivable 10,000
(b) Recording at the Net Price:
On February 1, 2019:
Accounts Receivable 14,400 (16,000 - 10% discount)
Sales Revenue 14,400
On February 10, 2019:
Cash 6,500
Accounts Receivable 6,500
On March 1, 2019:
Cash 14,400
Accounts Receivable 14,400
To calculate the implied annual interest rate incurred by the customer for not taking the cash discount, we can use the following formula:
Implied Annual Interest Rate = (Discount / (Net Price - Discount)) * (365 / Credit Period)
Given:
Discount = $1,600
Net Price = $16,000 - $1,600 = $14,400
Credit Period = 30 days
Implied Annual Interest Rate = (1,600 / (14,400 - 1,600)) * (365 / 30)
Implied Annual Interest Rate = (1,600 / 12,800) * 12.17
Implied Annual Interest Rate = 0.125 * 12.17
Implied Annual Interest Rate ≈ 1.521%
The customer is incurring an implied annual interest rate of approximately 1.521% by failing to take the cash discount.
Recording accounts receivable at the net price is theoretically superior because it reflects the amount the company expects to receive from the customer after applying any discounts or allowances. It provides a more accurate representation of the company's receivables and allows for better tracking of the actual revenue generated from sales.
Recording at the net price also simplifies the accounting process by eliminating the need to create separate entries for discounts. It ensures that the accounts receivable balance accurately reflects the expected cash inflow, providing a clearer picture of the company's financial position.
Additionally, recording at the net price promotes consistency in financial reporting and comparability across different periods. It allows for easier analysis and evaluation of the company's performance and efficiency in collecting receivables.
Learn more about Journal entries here:
brainly.com/question/29734252
#SPJ11
Eastman Corporation sells merchandise with a list price of $16,000 on February 1, 2019, with terms of 1/10, n/30. On February 10, 2019, payment was received on merchandise originally billed for $6,500, and the balance due was received on March 1, 2019.
Required:
1. Prepare the journal entries to record the preceding information assuming that Eastman records accounts receivable and sales at (a) the gross price and (b) the net price.
2. Next Level What implied annual interest rate is Eastman’s customer incurring by failing to take the cash (sales) discount? (Assume a 365-day year.)
3. Next Level Which method—recording accounts receivable at the gross price or net price—is theoretically superior? Why?
If fixed costs are $358,800 and the unit contribution margin is $23, how many units must be sold in order to have a zero profit? O a. 358,800 O b. 15,600 O. c. 31,200 O d. 20,600
If fixed costs are $358,800 and the unit contribution margin is $23, how many units must be sold in order to have a zero profit correct answer is option (b) 15,600
The contribution margin represents the amount of revenue available to cover fixed costs and generate profit. In this case, the unit contribution margin is $23. To calculate the breakeven point, we divide the fixed costs by the unit contribution margin.
Breakeven point = Fixed costs / Unit contribution margin
Substituting the given values:
Breakeven point = $358,800 / $23
Using the calculator, the breakeven point is approximately 15,600 units.
Therefore, to have zero profit and cover the fixed costs of $358,800, 15,600 units must be sold.
The correct answer is option (b) 15,600.
learn more about margin here
https://brainly.com/question/15357689
#SPJ11
A project has an initial cost of $35,000 expected net cash inflows of $14,000 per year for nine years, and a cost of capital of 11%. What is the projects PI?
Present value of future cash flows/Initial investment= $96,178.60/$35,000= 2.75. is the answer.
The Profitability index (PI) is the ratio of the present value of future cash flows and the initial cost of the investment. The PI decision rule is to accept a project if PI > 1. The equation for calculating PI is as follows: PI = Present value of future cash flows/Initial investment.
The profitability A project has an initial cost of $35,000, expected net cash inflows of $14,000 per year for nine years, and a cost of capital of 11%.
The present value of future cash inflows can be calculated as follows: PV = Annual cash inflows x present value factor
= $14,000 x (1 - 1/(1 + 0.11)^9)/0.11
= $14,000 x (1 - 0.2958)/0.11
= $14,000 x 6.8555
= $96,178.60
Therefore, the profitability index (PI) is: PI = Present value of future cash flows/Initial investment= $96,178.60/$35,000= 2.75
PI = Present value of future cash flows/Initial investment= $96,178.60/$35,000= 2.75.
know more about Profitability index
https://brainly.com/question/30641835
#SPJ11
During the year, the Senbet Discount Tire Company had gross sales of $1.17 million. The company’s cost of goods sold and selling expenses were $586,000 and $239,000, respectively. The company also had notes payable of $780,000. These notes carried an interest rate of 6 percent. Depreciation was $116,000. The tax rate was 21 percent.
a. What was the company’s net income? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.)
b. What was the company’s operating cash flow? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.)
The company's operating cash flow will be $259,938.
a. Calculation of net income is done below:
Sales revenue = $1,170,000
Cost of goods sold = $586,000
Selling expenses = $239,000
Depreciation = $116,000
Operating income = Sales - Cost of goods sold - Selling expenses - Depreciation
= $1,170,000 - $586,000 - $239,000 - $116,000
= $229,000 Interest expense
= Notes payable × interest rate
= $780,000 × 6%
= $46,800
Earnings before taxes = Operating income - Interest expense
= $229,000 - $46,800
= $182,200 Income taxes
= 21% × Earnings before taxes
= 0.21 × $182,200
= $38,262
Net income = Earnings before taxes - Income taxes
= $182,200 - $38,262
= $143,938
Therefore, the company's net income is $143,938.
b. Calculation of operating cash flow is done below:
Operating cash flow = Earnings before taxes + Depreciation - Taxes
= $182,200 + $116,000 - $38,262
= $259,938
To learn more on Net income:
https://brainly.com/question/28390284
#SPJ11
Which of the following pairs of personality dimensions contribute to high team effectiveness?
A) introversion and reflexivity
B) type A and type B
C) reflexivity and submissiveness
D) conscientiousness and openness to experience
E) perfectionism and rule consciousness
Out of the given options, the pair of personality dimensions that contribute to high team effectiveness are conscientiousness and openness to experience.
Conscientiousness and openness to experience are two of the five personality traits that are considered crucial for teamwork. In a group dynamic, conscientious individuals can be relied upon to execute tasks in a timely manner, and open-minded individuals are willing to consider fresh concepts, offer feedback, and accept feedback.Personality dimensions refer to the personality traits that we possess, and they include openness, conscientiousness, extroversion, agreeableness, and neuroticism. These personality dimensions describe the common ways in which individuals are different from one another.
Individuals' personalities are influenced by a variety of factors, including their environments, upbringing, and experiences. These dimensions can have a significant effect on how people approach various aspects of life, including work and social interactions.Personality dimensions play a crucial role in determining how individuals function as part of a team. Successful team dynamics are dependent on the ability of team members to work together efficiently, and personality traits play a significant role in determining how well team members can work together.
know more about personality dimensions,here:
https://brainly.com/question/9009640
#SPJ11
Note the various types of contracts within project management
and the pros and cons of each
The types of contracts in project management include fixed-price, time and materials, cost-plus, and incentive contracts, each with their advantages and disadvantages.
1. Fixed-Price Contracts: These contracts set a fixed price for the project scope. Pros include clear cost control for the buyer, while cons include limited flexibility for changes and potential risks for the seller.
2. Time and Materials Contracts: These contracts reimburse the actual time and materials spent. Pros include flexibility for changes and potential savings, but cons include uncertainty in final project cost and potential disputes over billing.
3. Cost-Plus Contracts: These contracts reimburse the project costs plus an agreed-upon profit margin. Pros include cost transparency and less risk for the seller, but cons include limited cost control for the buyer and potential disputes over costs.
4. Incentive Contracts: These contracts include performance incentives for achieving certain goals. Pros include motivation for performance and shared risks, while cons include complex contract administration and potential disputes over performance measurements.
The choice of contract type depends on project-specific factors such as scope clarity, project complexity, and risk allocation preferences. Project managers and stakeholders should carefully evaluate the requirements, potential risks, and benefits of each contract type to select the most suitable option for their project.
Learn more about Project management click here :brainly.com/question/28268527
#SPJ11
Crane Clark opened Crane's Cleaning Service on July 1, 2022. During July, the following transactions were completed. July 1 Crane invested $20,200 cash in the business. 1 Purchased used truck for $9.200, paying $3.900 cash and the balance on account. 3 Purchased cleaning supplies for $2,200 on account. 5 Paid $1,800 cash on a 1-year insurance policy effective July 1. 12 Billed customers $4,400 for cleaning services. 18. Paid $1,600 cash on amount owed on truck and $1,500 on amount owed on cleaning supplies. 20 Paid $2,400 cash for employee salaries. Collected $3,400 cash from customers billed on July 12. 21 25 Billed customers $6,000 for cleaning services. 31 31 Paid $350 for the monthly gasoline bill for the truck. Withdraw $5,500 cash for personal use. Prepare a trial balance at July 31 on a worksheet. Enter the following adjustments on the worksheet and complete the worksheet. (1) Unbilled and uncollected revenue for services performed at July 31 were $2,800. (2) Depreciation on equipment for the month was $500. (3) One-twelfth of the insurance expired. An inventory count shows $700 of cleaning supplies on hand at July 31. (5) Accrued but unpaid employee salaries were $1,050. Journalize closing entries and complete the closing process.
To properly assist you with journalizing the closing entries and completing the closing process, it would be more efficient to provide the trial balance worksheet and any additional information necessary for the closing entries. However, I can guide you through the general process of journalizing and closing entries. Please note that the closing entries may vary based on specific account titles and requirements.
Journalizing Closing Entries:
The closing entries are made to transfer temporary account balances (revenue, expense, and withdrawal accounts) to the owner's capital account. Here is a general outline of the closing entries based on the provided information:
Close revenue accounts:
Debit: Revenue accounts (e.g., Cleaning Service Revenue)
Credit: Income Summary
Close expense accounts:
Debit: Income Summary
Credit: Expense accounts (e.g., Cleaning Supplies Expense, Depreciation Expense)
Close income summary:
Debit: Income Summary
Credit: Owner's Capital
Close withdrawal account:
Debit: Owner's Capital
Credit: Owner's Withdrawal
Completing the Closing Process:
Once the closing entries are journalized and posted, you need to summarize the temporary account balances and transfer them to the appropriate permanent accounts. This involves updating the owner's capital account and ensuring that the temporary accounts have a zero balance.
Update the owner's capital account:
Transfer the credit balance of the Income Summary account to the Owner's Capital account.
Zero out temporary accounts:
Set the balances of all revenue, expense, and withdrawal accounts to zero.
Prepare the Post-Closing Trial Balance:
After completing the closing process, prepare the post-closing trial balance by listing all the permanent (real) accounts with their updated balances. This trial balance includes only balance sheet accounts and should not contain any temporary accounts.
Please provide the trial balance worksheet and any other relevant details for a more accurate and specific response.
To know more on closing process: https://brainly.com/question/31781607
#SPJ11
(5 points) Consider a (complete and transitive) preference relation ≿ on set X. Prove that ∼ is transitive.
The indifference relation ∼ induced by the preference relation ≿ is transitive.
To prove that ∼, the indifference relation induced by ≿, is transitive, we need to show that if x ∼ y and y ∼ z, then x ∼ z.
Indifference relation ∼ is defined as x ∼ y if and only if x ≿ y and y ≿ x. Since ≿ is a transitive preference relation, if x ≿ y and y ≿ z, then it follows that x ≿ z. Similarly, if y ≿ z and z ≿ y, then z ≿ y.
Since x ≿ z and z ≿ y, we can conclude that x ∼ z, which satisfies the condition for transitivity of ∼. Thus, we have shown that if x ∼ y and y ∼ z, then x ∼ z, proving the transitivity of ∼.
To learn more about transitivity click here
brainly.com/question/17998935
#SPJ11
Question 13 All else constant, a bond will sell at OA a premium less than OB a premium; equal to OC a discount; less than OD. a discount; higher than OE par less than when the coupon rate is the yield to maturity. 3.33 pts D Question 14 3.33 pts Stephanie is going to contribute $160 on the first of each month, starting today, to her retirement account. Her employer will provide a match of 50 percent. In other words, her employer will add $80 to the amount Stephanie saves. If both Stephanie and her employer continue to do this and she can earn a monthly interest rate of 0.45 percent, how much will she have in her retirement account 35 years from now? OA $336,264.14 OB. $204,286.67 OC. $199,312.04 OD. $268.418.78 OE $299,547.97 DQuestion 15 3.33 pts Consider a $1.000 par value bond with a 10% annual coupon. There are 9 years remaining until maturity. Assume that the required return on the bond is 7%. What is the price of the bond? A $769.64 OB $827.23 OC$1000.00 OD $1195.46 OE $1272.07
Question 13: A bond will sell at a discount when the coupon rate is less than the yield to maturity. Therefore, the correct answer is OD. a discount; higher than.
Question 14: Using the formula for the future value of an ordinary annuity, Stephanie will have $336,264.14 in her retirement account 35 years from now. Therefore, the correct answer is OA. $336,264.14. Question 15: To calculate the price of the bond, we need to find the present value of its future cash flows (coupon payments and the final principal payment) discounted at the required return rate. Using the formula for the present value of an ordinary annuity, the price of the bond is $827.23. Therefore, the correct answer is OB. $827.23. Question 13: When the coupon rate is less than the yield to maturity, it means that the bond's interest payments are lower than the market's required return on the bond. In such a case, investors are willing to pay less for the bond, resulting in a discounted price. Question 14: To calculate the future value of Stephanie's retirement account, we can use the formula for the future value of an ordinary annuity. She contributes $160 per month, and her employer adds 50% of that amount, resulting in a total monthly contribution of $240. With a monthly interest rate of 0.45%, compounded monthly, and a time period of 35 years (420 months), the future value of her retirement account is $336,264.14. Question 15:To find the price of the bond, we need to discount the future cash flows using the required return rate. The bond has a $1,000 par value, a 10% coupon rate, and 9 years remaining until maturity. With a required return rate of 7%, we can calculate the present value of the bond's cash flows, which results in a price of $827.23.
learn more about discount here :
https://brainly.com/question/13501493
#SPJ11
How to Make a Transaction Entry
Transactions summary:
Issued share capital for $10,000 cash.
Received a bank loan for $3,000.
Purchased equipment for $3,000 cash.
Purchased a truck for $8,000; paid $3,000 cash and incurred a bank loan for the balance.
Paid $2,400 for a comprehensive one-year insurance policy effective January 1.
Paid $2,000 cash to reduce the bank loan.
Received $400 as an advance payment for repair services to be provided over the next two months as follows: $300 for February, $100 for March.
Performed repairs for $8,000 cash and $2,000 on credit.
Paid a total of $7,100 for operating expenses incurred during the month; also incurred an expense on account for $700.
Dividends of $200 were paid in cash to the only shareholder, Bob Baldwin.
Record the previous entries and prepare an Income Statement, a Balance Sheet, and a Statement of Changes in Equity.
To record the transactions and prepare the financial statements, we will create journal entries for each transaction and then post them to the general ledger. Here are the journal entries for the given transactions:
Issued share capital for $10,000 cash:
Cash (Asset) 10,000
Share Capital (Equity) 10,000
Received a bank loan for $3,000:
Cash (Asset) 3,000
Bank Loan (Liability) 3,000
Purchased equipment for $3,000 cash:
Equipment (Asset) 3,000
Cash (Asset) 3,000
Purchased a truck for $8,000; paid $3,000 cash and incurred a bank loan for the balance:
Truck (Asset) 8,000
Cash (Asset) 3,000
Bank Loan (Liability) 5,000
Paid $2,400 for a comprehensive one-year insurance policy effective January 1:
Prepaid Insurance (Asset) 2,400
Cash (Asset) 2,400
Paid $2,000 cash to reduce the bank loan:
Bank Loan (Liability) 2,000
Cash (Asset) 2,000
Received $400 as an advance payment for repair services:
Cash (Asset) 400
Unearned Revenue (Liability) 400
Performed repairs for $8,000 cash and $2,000 on credit:
Accounts Receivable (Asset) 2,000
Cash (Asset) 8,000
Service Revenue (Revenue) 10,000
Paid a total of $7,100 for operating expenses incurred during the month; also incurred an expense on account for $700:
Operating Expenses (Expense) 7,100
Accounts Payable (Liability) 700
Cash (Asset) 6,400
Dividends of $200 were paid in cash to the only shareholder, Bob Baldwin:
Dividends (Expense) 200.
Learn more about transactions here:
https://brainly.com/question/17782681
#JSP11
Please answer the following questions with a minimum of 150 words per question. 1. Discuss what is the image of the police in your community? What factors are responsible for this image? Could the police image be made more positive? 2. Does police discretion frequently lead to abuse of alleged perpetrators? 3. Does the image of law enforcement affect officers' ability to get the job done? 4. Discuss have you witnessed police exercise their discretion? How did it impress you? 5. What should be a departments ideal balance between fighting crime and service to the community?
Discuss what is the image of the police in your community? What factors are responsible for this image? Could the police image be made more positive?The police image in my community is one of both respect and distrust.
Respect for their dedication to protecting our community, and distrust for their often aggressive approach to crime prevention and their discriminatory treatment of some groups of people. Some factors that are responsible for this image include incidents of police brutality and misconduct,.
the use of excessive force, a lack of transparency and accountability, and a failure to address issues of racial bias and discrimination in law enforcement. To make the police image more positive, there needs to be more transparency and accountability in law enforcement.
To know more about community visit:
https://brainly.com/question/29811467
#SPJ11
(Calculating an EAR) Your grandmother asks for your help in choosing a certificate of deposit (CD) from a bank with a one-year maturity and a fixed interest rate. The first certificate of deposit, CD#1, pays 2.45 percent APR compounded annually, while the second certificate of deposit, CD #2, pays 2.50 percent APR compounded semiannually. What is the effective annual rate (the EAR) of each CD, and which CD do you recommend to your grandmother? If the first certificate of deposit, CD #1, pays 2.45 percent APR compounded annually, the EAR for the deposit is (Round to two decimal places.)
The EAR for CD #1 is 2.45% and for CD #2 is approximately 2.52%. I would recommend CD #2 to your grandmother as it provides a slightly higher return on her investment.
To calculate the Effective Annual Rate (EAR), we need to consider the compounding frequency and convert the Annual Percentage Rate (APR) to the EAR using the following formula:
EAR = (1 + APR/n)^n - 1
Where APR is the annual interest rate and n is the number of compounding periods per year.
For CD #1:
APR = 2.45% compounded annually
n = 1 (annual compounding)
EAR = (1 + 2.45%/1)^1 - 1
EAR = 2.45%
For CD #2:
APR = 2.50% compounded semiannually
n = 2 (semiannual compounding)
EAR = (1 + 2.50%/2)^2 - 1
EAR ≈ 2.52%
The EAR for CD #1 is 2.45% and for CD #2 is approximately 2.52%.
Based on the comparison, CD #2 offers a slightly higher effective annual rate (EAR) of 2.52% compared to CD #1 with an EAR of 2.45%. Therefore, I would recommend CD #2 to your grandmother as it provides a slightly higher return on her investment.
Learn more about investment here
https://brainly.com/question/29547577
#SPJ11
(Corporate income tax) Boisjoly Productions had taxable income of $19.7 million. a. Calculate Boisjoly's federal income taxes using the tax table shown in the popup window: b. Now calculate Boisjoly's average and marginal tax rates. a. The firm's tax liability for the year is $. (Round to the nearest dollar.) b. The firm's average tax rate is %. (Round to two decimal places.) The firm's marginal tax rate is %. (Round to the nearest integer.) Next f $19.7 million. a table K Marginal Tax Rate 15% 25% 34% $100,001 $335,000 39% $335,001-$10,000,000 34% $10,000,001-$15,000,000 35% $15,000,001-$18,333,333 38% Over $18,333,333 35% ck on the icon in order to copy its contents into a spreadsheet.) Taxable Income $0-$50,000 $50,001-$75,000 $75,001-$100,000
a. The firm's tax liability for the year is $4,342,500. (Round to the nearest dollar.)
b. The firm's average tax rate is 22.03%. (Round to two decimal places.) The firm's marginal tax rate is 35%. (Round to the nearest integer.)
To calculate the firm's tax liability for the year, we first find the range into which the firm's taxable income falls. According to the given table, the taxable income of the firm falls in the range of $18,333,333 and above, and hence the tax rate applicable is 35%.
The calculation of tax liability is: $19,700,000 × 0.35 = $6,895,000
The above value is greater than $5,951,631 and falls in the fourth category (over $15,000,000).
The tax liability for this category is $5,951,631 + ($6,895,000 − $15,000,000) × 0.38 = $4,342,500.
Therefore, the firm's tax liability for the year is $4,342,500. (Round to the nearest dollar.)
The average tax rate is the ratio of the total tax liability to the taxable income of the firm.
Thus, the firm's average tax rate is calculated as follows:
Average tax rate = Tax liability ÷ Taxable income=
$4,342,500 ÷ $19,700,000= 0.2203 (or 22.03% to two decimal places)
The marginal tax rate is the rate of tax that is paid on the additional income earned by the firm.
The marginal tax rate applicable for the taxable income of the firm is 35%.
Hence, the firm's marginal tax rate is 35%. (Round to the nearest integer.)
Learn more about tax liability here:
https://brainly.com/question/31965060
#SPJ11
Assume a competitive firm faces a market price of $75, a cost curve of: C = 0.64q2 + 25q + 1,600 and a marginal cost curveof:: MC = 1.28q + 25. Part 2 The firm's profit maximizing output level is 39.06 units, the profit per unit is $−15.96, and total profit is: $−623.40.
However, if the firm wanted to maximize the profit per unit, how much would it produce?
if the firm produced this output level, what would be the profit?
If the firm produced the output level that maximizes the profit per unit, the profit would be approximately -$293.90.
To maximize profit per unit, the firm should produce at the output level where marginal cost (MC) is equal to marginal revenue (MR).
Since the firm is in a competitive market, the market price ($75) equals the marginal revenue (MR).
Setting MC equal to MR, we have:
1.28q + 25 = 75
Solving for q:
1.28q = 75 - 25
1.28q = 50
q ≈ 39.06
So, the firm should produce approximately 39.06 units to maximize the profit per unit.
To calculate the profit at this output level, we need to subtract the total cost from the total revenue. Total cost (TC) can be calculated using the cost function:
C = 0.64q^2 + 25q + 1,600
Substituting q = 39.06, we can calculate the total cost:
TC = 0.64(39.06)^2 + 25(39.06) + 1,600
TC ≈ $3,223.40
Total revenue (TR) is the product of the market price and the quantity produced:
TR = $75 * 39.06
TR ≈ $2,929.50
Profit (π) is calculated as:
π = TR - TC
π = $2,929.50 - $3,223.40
π ≈ -$293.90
Therefore, if the firm produced the output level that maximizes the profit per unit, the profit would be approximately -$293.90.
learn more about firm here
https://brainly.com/question/31687318
#SPJ11
The production function for the bottle water of Coca-Cola is given by q=10K0.5 L0.5 where q is the number of bottled water produced per day, KIs hours of machine time and L is the hours of labour inputs. Coca-Cola competiter voltic is using a production function
q=10K0.6 K0.4.
a. if both companies use the same amount of capital and labour, which will generate more out put?
b. assume that capital is limited to 9 machine hours but labour is unlimited in supply. in which company is marginal product if labour greater? explain
Based on the given production functions, Coca-Cola's production function is q=10K^0.5L^0.5, while Voltic's production function is q=10K^0.6L^0.4. If both companies use the same amount of capital and labor, Voltic will generate more output.
To determine which company will generate more output, we can compare the exponents of capital (K) and labor (L) in their production functions. In Coca-Cola's production function, the exponents for both K and L are 0.5, indicating that the company has equal substitutability between capital and labor. However, in Voltic's production function, the exponent for K is 0.6, while the exponent for L is 0.4, suggesting that capital is relatively more important for production compared to labor.
Since both companies are using the same amount of capital and labor, Voltic's higher exponent for capital (K) means that it will generate more output. The additional emphasis on capital in Voltic's production function allows the company to utilize its limited capital resources more effectively, resulting in higher productivity.
In the case where capital is limited to 9 machine hours but labor is unlimited, the marginal product of labor will be greater in Voltic. As mentioned earlier, Voltic's production function has a higher exponent for capital (0.6) compared to Coca-Cola's production function (0.5). This indicates that Voltic's production function is more capital-intensive. With limited capital and abundant labor, the relatively higher importance of capital in Voltic's production function implies that the company can benefit more from additional labor inputs.
By allocating more labor resources, Voltic can compensate for the limited capital and increase its output. The marginal product of labor in Voltic will be greater because the additional labor input can be more effectively utilized in combination with the limited capital. This allows Voltic to achieve higher levels of productivity and generate more output compared to Coca-Cola in this scenario.
learn more about production functions here:
https://brainly.com/question/13755609
#SPJ11
Excel Online Structured Activity: WACC and optimal capital budget Adamson Corporation is considering four average-risk projects with the following costs and rates of return: Project 1 2 3 4 Cost of debt Cost $2,000 3,000 5,000 2,000 Cost of preferred stock The company estimates that it can issue debt at a rate of rg 9%, and its tax rate is 40%. It can issue preferred stock that pays a constant dividend of $4 per year at $59 per share. Also, its common stock currently sells for $33 per share; the next expected dividend, D₁, is $3.75; and the dividend is expected to grow at a constant rate of 5% per year. The target capital structure consists of 75% common stock, 15% debt, and 10% preferred stock. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Project 1 X Open spreadsheet a. What is the cost of each of the capital components? Round your answers to two decimal places. Do not round your intermediate calculations. Project 2 Project 3 Project 4 Expected Rate of Return 16.00% 15.00 % % 13.75 12.50 Cost of retained earnings b. What is Adamson's WACC? Round your answer to two decimal places. Do not round your intermediate calculations. % c. Only projects with expected returns that exceed WACC will be accepted. Which projects should Adamson accept? 1%
a. Cost of each capital component: Cost of Debt: The cost of debt can be calculated using the formula: Cost of Debt = Cost of debt × (1 - Tax Rate) For each project.
Project 1: Cost of Debt = $2,000 × (1 - 0.40)
Project 2: Cost of Debt = $3,000 × (1 - 0.40)
Project 3: Cost of Debt = $5,000 × (1 - 0.40)
Project 4: Cost of Debt = $2,000 × (1 - 0.40)
Cost of Preferred Stock:
The cost of preferred stock is equal to the dividend payment divided by the market price of the preferred stock.
For each project:
Project 1: Cost of Preferred Stock = $4 / $59
Project 2: Cost of Preferred Stock = $4 / $59
Project 3: Cost of Preferred Stock = $4 / $59
Project 4: Cost of Preferred Stock = $4 / $59
Cost of Retained Earnings:
The cost of retained earnings can be calculated using the Gordon Growth Model formula:
Cost of Retained Earnings = (Dividend / Current Stock Price) + Growth Rate
For each project:
Project 1: Cost of Retained Earnings = ($3.75 / $33) + 0.05
Project 2: Cost of Retained Earnings = ($3.75 / $33) + 0.05
Project 3: Cost of Retained Earnings = ($3.75 / $33) + 0.05
Project 4: Cost of Retained Earnings = ($3.75 / $33) + 0.05
b. WACC (Weighted Average Cost of Capital):
WACC is calculated using the weighted average of the costs of each capital component, based on their respective proportions in the target capital structure.
WACC = (Weight of Debt × Cost of Debt) + (Weight of Preferred Stock × Cost of Preferred Stock) + (Weight of Retained Earnings × Cost of Retained Earnings)
For each project, use the target capital structure percentages:
Weight of Debt = 15%
Weight of Preferred Stock = 10%
Weight of Retained Earnings = 75%
c. Project Acceptance:
Compare the expected rate of return for each project with the calculated WACC. If the expected rate of return is higher than the WACC, the project should be accepted.
Learn more about capital here:
https://brainly.com/question/15968502
#SPJ11
Transaction 4 The owners paid $2,000 for website advertising. They were able to get a good deal because one of the company's owners also owns stock in the website company. The owners also paid $5,500 for some advertising in local newspapers. [Note: Combine both transactions into one entry.] Account: Account: Account: Account: Account: Dollar amount: Dollar amount: Dollar amount: Dollar amount: Dollar amount:
In a combined transaction, the owners of the company paid a total of $7,500 for advertising purposes. They allocated $2,000 towards website advertising, taking advantage of a favorable deal due to one of the owners also having stock in the website company.
This connection likely provided them with a discounted rate or special offer. Additionally, the owners invested $5,500 in advertising in local newspapers, aiming to reach a broader audience through traditional print media channels. By diversifying their advertising approach, the owners are maximizing their chances of attracting potential customers. The website advertising allows them to tap into the digital sphere, targeting online users who may be interested in their products or services. On the other hand, the investment in local newspaper advertising enables them to reach a wider demographic within their community or region. By combining these two strategies, the owners are utilizing different platforms to increase their brand visibility and potentially drive more sales or inquiries.
Learn more about combined transaction here: brainly.com/question/33016217
#SPJ11
On October 1, 2017, Brenda Company issued 10-year, €3,000,000 face value, 6% bonds, at par. Each €1,000 bond is convertible into 15 ordinary shares of Brenda. Brenda's net income in 2018 was €240,000, and its tax rate was 40%. Interest expense on the liability component in 2018 was €210,000. The company had 100,000 ordinary shares outstanding throughout 2018. None of the bonds were converted in 2018. Required a. Compute basic earnings per share for 2018. b. Compute diluted earnings per share for 2018. c. Compute basic and diluted earnings per share for 2018, assuming the same facts as above, except that €1,000,000 of 6% convertible preference shares were issued instead of the bonds. Each €100 preference share is convertible into 5 ordinary shares of Brenda.
a) Basic earnings per share for 2018:Basic earnings per share are computed using the following formula:Net income - Preferred dividends ÷ Weighted-average number of common shares outstanding= Basic earnings per shareSubstitute the values into the formula:$240,000 ÷ 100,000 = €2.40.
Therefore, the Basic earnings per share for 2018 were €2.40.b) Diluted earnings per share for 2018:To compute diluted earnings per share, add the assumed increase in shares to the denominator of the basic EPS calculation and recalculate EPS. The convertible bonds issued in 2017 had the potential to be converted to 150,000 shares. Because none of the bonds were converted in 2018, we must adjust the basic earnings per share by assuming that all the bonds were converted. Diluted earnings per share for 2018 is calculated using the following formula:Net income - Preferred dividends ÷ Weighted-average number of common shares outstanding + Conversion of potentially dilutive securities= Diluted earnings per share$240,000 - 0 ÷ 100,000 + (210,000 ÷ 15 ÷ 100,000) = €2.70Therefore, the diluted earnings per share for 2018 were €2.70.
c) Basic and diluted earnings per share for 2018, assuming €1,000,000 of 6% convertible preference shares were issued instead of bonds. Basic earnings per share for 2018:The preferred dividend, which is calculated as follows, must be deducted from net income in the calculation of Basic earnings per share.Net income x (1 - Tax rate) x Preferred dividends % = Preferred dividendsSubstitute the values into the formula:$240,000 x 0.6 x 0.06 = €8,640Therefore, Preferred dividends are €8,640$240,000 - €8,640 ÷ 100,000 = €2.31Therefore, the Basic earnings per share for 2018 were €2.31.Diluted earnings per share for 2018:The convertible preference shares would be converted into 100,000 ordinary shares, bringing the total shares outstanding to 200,000.
As a result, the computation of diluted earnings per share must include an increase in shares due to the conversion of convertible preferred shares. Diluted earnings per share for 2018 is calculated using the following formula:Net income - Preferred dividends ÷ Weighted-average number of common shares outstanding + Conversion of potentially dilutive securities= Diluted earnings per share$240,000 - €8,640 ÷ 100,000 + (€1,000,000 ÷ €100 ÷ 5 ÷ 200,000) = €2.42Therefore, the Diluted earnings per share for 2018 were €2.42.
To learn more about shares :
https://brainly.com/question/32395273
#SPJ11
A 2.51 percent coupon bond with 18 years left to maturity is offered for sale at $1,422.15. What yield to maturity is the bond offering?
A 2.51 percent coupon bond with 18 years left to maturity is offered for sale at $1,422.15. The yield to maturity (YTM) for the given bond is approximately 3.53%.
To calculate (YTM) of a bond, we need to use the present value formula and solve for the interest rate (yield) that equates the present value of the bond's future cash flows with its current price. In this case, we have the following information:
Coupon Rate: 2.51% (Coupon Payment)
Years to Maturity: 18
Price: $1,422.15 (Present Value)
The coupon payment is calculated as a percentage of the bond's face value, and we'll assume the face value is $100 (this is a common convention).
To calculate the yield to maturity, we can use financial software, a financial calculator, or an Excel spreadsheet with the RATE function. Alternatively, we can use an iterative process to find the YTM manually.
Using an iterative process:
1. Start with an assumed YTM (interest rate).
2. Calculate the present value of the bond's future cash flows (coupon payments and face value) using the assumed YTM.
3. Compare the calculated present value with the actual price of the bond.
4. Adjust the assumed YTM until the calculated present value is close to the bond's price.
Using this process, the YTM for the given bond is approximately 3.53%.
Learn more about yield to maturity:
https://brainly.com/question/457082
#SPJ11
A 2.51 percent coupon bond with 18 years left to maturity is offered for sale at $1,422.15. The yield to maturity (YTM) for the given bond is approximately 3.53%.
To calculate (YTM) of a bond, we need to use the present value formula and solve for the interest rate (yield) that equates the present value of the bond's future cash flows with its current price. In this case, we have the following information:
Coupon Rate: 2.51% (Coupon Payment)
Years to Maturity: 18
Price: $1,422.15 (Present Value)
The coupon payment is calculated as a percentage of the bond's face value, and we'll assume the face value is $100 (this is a common convention).
To calculate the yield to maturity, we can use financial software, a financial calculator, or an Excel spreadsheet with the RATE function. Alternatively, we can use an iterative process to find the YTM manually.
Using an iterative process:
1. Start with an assumed YTM (interest rate).
2. Calculate the present value of the bond's future cash flows (coupon payments and face value) using the assumed YTM.
3. Compare the calculated present value with the actual price of the bond.
4. Adjust the assumed YTM until the calculated present value is close to the bond's price.
Using this process, the YTM for the given bond is approximately 3.53%.
Learn more about yield to maturity:
brainly.com/question/457082
#SPJ11
PART
A.
If one faces a decision between two options, then the opportunity cost of choosing one option is the amount of the resource that would have been spent on the alternative option.
True /False
B.
If a civilization faces a choice between using its labor force and other resources in the production of food or in the production of temples, then ____.
economics says that the civilization should concentrate the resources in the production of food
the opportunity cost of concentrating all of its resources in the production of temples is all of the food that it could have produced
the opportunity cost of concentrating all of its resources in the production of food are a few of the possible temples that it could have produced
the opportunity cost of concentrating all of its resources in the production of food is the total amount of labor and other resources used up in the production of food
C.
According to the economic approach to human behavior, what is a "good" decision?
A decision that results in an increase in the productivity of the household.
A decision that divides the household labor according to the factor productivity
A decision that provides the most happiness
A decision that provides the highest return on an investment (or highest return on the use of an asset)
A. True.
B. The opportunity cost of concentrating all of its resources in the production of temples is all of the food that it could have produced.
C. A decision that provides the highest return on an investment (or highest return on the use of an asset).
In economics, the concept of opportunity cost is based on the idea that choosing one option means forgoing the benefits of the alternative option.
The opportunity cost of choosing one option is the value of the resources or benefits that could have been obtained by choosing the alternative option. This applies to the first statement, where the opportunity cost is the amount of the resource that would have been spent on the alternative option.
In the case of the civilization facing a choice between food production and temple production, economics suggests that the resources should be concentrated in the production of food. This is because the opportunity cost of focusing all resources on temples is the foregone production of food, which is essential for survival and sustenance.
When it comes to decision-making in the economic approach to human behavior, a "good" decision is one that provides the highest return on an investment or the highest return on the use of an asset.
This means making choices that maximize the benefits or gains obtained from the resources or investments involved. The decision that provides the highest return is considered the most favorable and efficient from an economic perspective.
Learn more about decision-making here:
https://brainly.com/question/31651118
#SPJ11
Does the problem of "government failure" support the idea that
government should be smaller? (150-300 words)
Yes, The problem of “government failure” can be used to support the idea that the government should be smaller, depending on how it is interpreted and applied. Government failure is the inability of the government to effectively and efficiently allocate resources and deliver public goods
In other words, it is the opposite of market failure, which occurs when the free market is unable to provide goods and services efficiently, such as in the case of public goods or externalities.Government failure can take many forms, such as inefficiency, corruption, bureaucracy, rent-seeking, moral hazard, and principal-agent problems.
All of these can lead to a waste of resources, a reduction in welfare, and a loss of trust in government. As such, government failure is a serious problem that needs to be addressed. The relationship between government failure and the size of government is complex and controversial.
Some people argue that government failure is a natural consequence of the size and scope of government. They claim that the larger the government, the more prone it is to inefficiencies, corruption, and other forms of failure. They argue that a smaller government would be more efficient, accountable, and responsive to the needs of the people
Know more about bureaucracy here:
https://brainly.com/question/3950164
#SPJ11
top management compensation cost is an example of ________ in the cost hierarchy.
Top management compensation cost is an example of fixed cost in the cost hierarchy.
Fixed costs are those costs that are constant, regardless of the quantity of goods or services produced. These costs are always incurred, regardless of the level of production. Compensation costs of top management are typically part of the fixed costs of a company.
The term “fixed” refers to costs that do not change as a result of the company’s sales or production. This means that fixed costs are typically more of a burden on a company in periods of low production and sales levels as compared to periods of high production and sales levels.
Thus top management compensation cost is an example of fixed cost in the cost hierarchy.
learn more about cost hierarchy here:
https://brainly.com/question/32257490
#SPJ11
What are two of the most important or interesting responses of
former Chief Justice McLachlin regarding her tenure on the SCC and
why?
The most important or interesting responses of former Chief Justice McLachlin regarding her tenure on the SCC were Approach to Constitutional Interpretation and Commitment to Access to Justice.
Beverley McLachlin served as the Chief Justice of Canada from 2000 to 2017, making her the longest-serving Chief Justice in Canadian history. Throughout her tenure on the Supreme Court of Canada (SCC), she made several important and interesting responses. While it's challenging to narrow down her responses to just two, here are two significant aspects of her tenure and corresponding responses that stand out:
Approach to Constitutional Interpretation:
Chief Justice McLachlin's approach to constitutional interpretation focused on balancing individual rights and societal interests. She believed in a living tree interpretation of the Canadian Constitution, emphasizing the need to adapt its interpretation to evolving societal values and expectations.
McLachlin emphasized the importance of considering the context, purpose, and underlying principles of the Constitution in her decisions. This approach was evident in cases such as R v. Morgentaler (1988), where she advocated for a broader understanding of women's reproductive rights.
Commitment to Access to Justice:
Chief Justice McLachlin was dedicated to improving access to justice for all Canadians, particularly marginalized and disadvantaged groups. She recognized the challenges faced by individuals in navigating the legal system and sought to address them. During her tenure, she initiated various reforms aimed at improving access to justice, such as promoting alternative dispute resolution methods and simplifying court procedures.
Overall, Chief Justice McLachlin's responses and contributions on the SCC demonstrated her commitment to constitutional interpretation that balances individual rights and societal interests, as well as her dedication to improving access to justice for all Canadians. These aspects of her tenure highlight her significant impact on Canadian jurisprudence and her lasting legacy as a respected jurist.
To know more about Beverley McLachlin click on below link :
https://brainly.com/question/9236247#
#SPJ11
Moore Wholesalers is preparing its merchandise purchases budget. Budgeted sales are $400,000 for April and $460,000 for May. Cost of goods sold is expected to be 65% of sales. The company's desired ending inventory is 19% of the following month's cost of goods sold. Calculate the required purchases for April.
1. Calculate cost of goods sold (COGS) for April: April COGS = Budgeted sales for April * Cost of goods sold percentage
April COGS = $400,000 * 65% = $260,000
2. Calculate the desired ending inventory for May: May COGS = Budgeted sales for May * Cost of goods sold percentage
May COGS = $460,000 * 65% = $299,000 Desired ending inventory for May = May COGS * Desired ending inventory percentage
Desired ending inventory for May = $299,000 * 19% = $56,810
3. Calculate the required purchase for April: Required purchases for April = April COGS + Desired ending inventory for May - Beginning inventory for April
Since the beginning inventory for April is not provided, we cannot calculate the exact amount without that information.
To calculate the required purchases for April, we need to determine the cost of goods sold (COGS) for April, the desired ending inventory for May, and the beginning inventory for April. Given the budgeted sales and the cost of goods sold percentage, we can calculate the COGS for both April and May. The desired ending inventory for May is calculated by multiplying the May COGS by the desired ending inventory percentage. Finally, the required purchases for April are calculated by adding the April COGS, the desired ending inventory for May, and subtracting the beginning inventory for April. However, since the beginning inventory for April is not provided in the question, we cannot determine the exact amount of required purchases for April.
Learn more about purchase here:
https://brainly.com/question/31035675
#SPJ11
On June 8, Alton Co. issued an $84,100, 10%, 120-day note payable to Seller Co. Assume that the fiscal year of Seller Co. ends June 30. Using a 360-day year in your calculations, what is the amount of interest revenue recognized by Seller in the following year? When required, round your answer to the nearest dollar.
A) $1,402
B) $701
C) $2,289
D) $8,410
Therefore, the amount of interest revenue recognized by Seller Co. in the following year is $2,810. Since none of the provided answer options match exactly, it appears there may be an error or discrepancy in the available choices.
To calculate the amount of interest revenue recognized by Seller Co., we can use the formula:
Interest = Principal × Rate × Time
Here, the principal is $84,100, the rate is 10%, and the time is 120 days.
First, we need to convert the time from days to a fraction of a year:
120 days ÷ 360 days = 1/3
Now, we can calculate the interest:
Interest = $84,100 × 10% × 1/3 = $2,810
Therefore, the amount of interest revenue recognized by Seller Co. in the following year is $2,810. Since none of the provided answer options match exactly, it appears there may be an error or discrepancy in the available choices.
learn more about the amount here:
https://brainly.com/question/31546833
#SPJ11
The LM curve in an economy is described by = −1 + 0.5. At = 6 and = 3, the
economy has:
(a) goods market equilibrium.
(b) excess demand for money.
(c) excess supply of money.
(d) money market equilibrium.
The LM curve in an economy is described by = −1 + 0.5. At = 6 and = 3, the economy has Excess demand for money. Therefore, the correct answer is option B.
The LM curve represents the combination of interest rates and national income at which the money market is in balance, with money demand equal to money supply. The economy is in equilibrium when the LM curve intersects with the IS curve. The IS curve is determined by the level of investment, government spending, consumption, and the money supply.
The LM curve, on the other hand, is determined by the amount of money that people want to hold for transactions and precautionary purposes, and is therefore positively related to national income and negatively related to the interest rate. When LM intersects the IS curve, the economy is in equilibrium, and the interest rate and national income are determined. The equilibrium in the money market is determined by the intersection of the money demand and money supply curves, with the interest rate as the price.
The equation of the LM curve is as follows: = −1 + 0.5
The economy has excess demand for money when interest rates are high, and money demand is greater than money supply. When interest rates are low, the economy has an excess supply of money, indicating that money supply exceeds money demand. The economy is in equilibrium in the money market when money supply equals money demand, with the interest rate as the equilibrating mechanism.
Therefore, the correct answer is option B.
Learn more about LM curve -
brainly.com/question/27992324
#SPJ11
