Answer:
Net sales revenue= 220,100
Explanation:
Giving the following information:
Sales, gross $ 245,000
Sales returns and allowances $ 20,000
Sales discounts 4,900
Sales salaries expense 10,900
Sales salaries expense is not a part of the net sales in a multiple-step income statement. The net sales are as follow:
Sales= 245,000
Sales returns and allowances= (20,000)
Sales discounts= (4,900)
Net sales revenue= 220,100
Innovative Consulting Co. has the following accounts in its ledger: Cash, Accounts Receivable, Supplies, Office Equipment, Accounts Payable, Common Stock, Retained Earnings, Dividends, Fees Earned, Rent Expense, Advertising Expense, Utilities Expense, Miscellaneous Expense. Journalize the following selected transactions for October 20Y2 in a two-column journal. Journal entry explanations may be omitted. If an amount box does not require an entry, leave it blank. Oct. 1. Paid rent for the month, $4,300. 3. Paid advertising expense, $2,750. 5. Paid cash for supplies, $1,180. 6. Purchased office equipment on account, $18,100. 12. Received cash from customers on account, $5,900. 20. Paid creditor on account, $1,730. 27. Paid cash for miscellaneous expenses, $750. 30. Paid telephone bill for the month, $280. 31. Fees earned and billed to customers for the month, $39,300. 31. Paid electricity bill for the month, $470. 31. Paid dividends, $3,000.
Answer:
Date Accounts title Debit$ Credit$
1-Oct Rent expense Account 4300
Cash account 4300
3-Oct Advertisement expense 2760
Cash account 2760
5-Oct Supplies Account 1180
Cash account 1180
6-Oct Office equipment Account 18100
Accounts payable 18100
10-Oct Cash account 5900
Accounts receivable 5900
15-Oct Accounts payable 1730
Cash account 1730
27-Oct Misc expense Account 750
Cash account 750
30-Oct Utility expense Account 280
Cash account 280
31-Oct Accounts receivable Account 39300
Service revenue 39300
31-Oct Utility expense Account 470
Cash account 470
31-Oct Jason payne, Drawings 3000
Cash account 3000
Product K has a unit contribution margin of $120. Product L has a unit contribution margin of $100. Product K requires five furnace hours, while Product L requires four furnace hours. Determine the most profitable product, assuming the furnace is a bottleneck constraint.
Answer: Product L is more profitable
Explanation:
The unit contribution margin per production of product K per bottleneck hour will be:
= $120/5
= $24
The unit contribution margin per production of product L per bottleneck hour will be:
= $100/4
= $25
Product L is more profitable as it gives a profit of ($25 - $24) = $1 more than product K
B. Lopez Company reports unadjusted first-year merchandise sales of 221,000 and cost of merchandise sales of $64,000. The company expects future returns and allowances equal to 5% of sales and 5% cost of sales. The year-end adjusting entry to record the cost side of sales returns and allowances is:
Answer: See explanation
Explanation:
The year-end adjusting entry to record the cost side of sales returns and allowances will be:
Dr Inventory Return estimated $3200
Cr Cost of goods sold $3200
(To record expected coat of returns)
Note that the above calculation was done as:
= $64,000 × 5%
= $64,000 × 0.05
= $3200
A long-term investment classified as equity securities with controlling influence implies that the investor can exert a controlling influence over the investee. An investor who owns more than ____% of a company's voting stock has control over the investee.
Answer: 50%
Explanation:
The Equity Securities with controlling influence refers to the long-term investment whereby the investor exert controlling influence over the investee. In such case, the investors own 50% or more of the voting stock.
On the other hand, the Equity securities with significant influence refers to the long-term investment whereby the investor exerts significant influence over the investee. In such case, the investors own 20% or more of the voting stocks but should be less than 50%.
Insert your overall conclusions about the relevance and significance of macroeconomics. Assess the effectiveness of your economic policy decisions. Did your economic policy decisions produce the anticipated results?
Answer:
Macroeconomics is a very relevant subfield of economics because it studies economic matters at the aggregate level, that means things such as inflation, unemployment, economic growth, investment, saving, and many other economic phenomena that are very relevant for all countries, all governments, and essentially everybody around the world.
Macroeconomics is a contested field, with some points in agreement, but many others in dispute among economists. For this reason, the policy recommendations that are based on macroeconomic criteria are often very different, and frequently clash into political conflict.
Economic policy decisions never produce exactly the expected result, but they often give a satisfactory result (not always). For example, the monetary policy based on the principles of monetarism did manage to bring down inflation substantially ever since it began to be applied in the late 1970s.
Timeliness of financial statements varies across nations.Which of the following countries has financial statements issued closest to year-end (on average)?
A) Japan
B) Germany
C) Canada
D) Italy
Answer: C. Canada
Explanation:
While Canada does not enforce a rule that says that companies should issue statements at year end, most companies on average seem to favor having a December year end in Canada than all the other countries on this list.
A survey in 2017 showed that 57% of Canadian companies favored a December year end with the other months not even receiving anything more than 7% each. Compared to the U.S. however, Canada is lacking as 71% or more American companies favored a December year end.
The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Units to be produced 10,400 9,400 11,400 12,400
Each unit requires 0.25 direct labor-hours and direct laborers are paid $12.00 per hour. In addition, the variable manufacturing overhead rate is $1.70 per direct labor-hour. The fixed manufacturing overhead is $84,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $24,000 per quarter.
Required:
1. Prepare the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.
2. Prepare the company’s manufacturing overhead budget.
Answer and Explanation:
The preparation is presented below:
1. For Direct labor budget
Particulars 1st quarter 2nd quarter 3rd quarter 4th quarter Year
Production Units 10400 9400 11400 12400 43600
direct labor time
per unit (hr) 0.25 0.25 0.25 0.25 0.25
Total direct labor
hour needed 2600 2350 2850 3100 10900
direct labor cost
per hour 12 12 12 12 12
Total direct
labor cost 31200 28200 34200 37200 130800
2. For Manufacturing overhead budget
Particulars 1st quarter 2nd quarter 3rd quarter 4th quarter Year
Variable
manufacturing overhead 4420 3995 4845 5270 18530
Fixed manufacturing
overhead 84000 84000 84000 84000 336000
Total manufacturing
overhead 88420 87995 88845 89270 354530
Less: depreciation -24000 -24000 -24000 -24000 -96000
cash disbursement
for manufacturing overhead 64420 63995 64845 65270 258530
A notepad company is looking to repackage and reposition its small notepads. It is thinking of coloring the pages yellow, resizing them into the shape of a stick of butter, and selling them through novelty stores. The company needs this repositioning of its product to succeed. In order for the company to avoid common pitfalls, which areas it should cover in the repositioning process?
Answer: See explanation
Explanation:
Tou didn't give the options to your question but based on further research online, the correct options are given below:
• reinforce the “back to basics” version of the product to retain what customers care about most
• create clean and understandable positioning between its old and the new product positions
• do sufficient research with market perceptions or target segments.
Once a good or service nears the end of its product life cycle, the firm recognizes that Multiple Choice it is impossible to revert to an earlier stage of the model. it can return to an earlier stage through creative marketing. it will enjoy relatively high profits. marketing dollars spent now will provide little benefit.
Answer:
it can return to an earlier stage through creative marketing.
Explanation:
A product life cycle can be defined as the stages or phases that a particular product passes through, from the period it was introduced into the market to the period when it is eventually removed from the market.
Generally, there are four (4) stages in the product-life cycle;
1. Introduction.
2. Growth.
3. Maturity.
4. Decline.
A product that is at the decline stage is generally referred to as a failed product and wouldn't generate profit or much revenue for the manufacturer because it has little economic importance.
However, once a good or service nears the end of its product life cycle i.e it's at the decline stage, the business firm recognizes that it can return to an earlier stage where it offers satisfaction to the consumers and generate revenue, through creative marketing.
Marketing can be defined as the process of developing promotional techniques and sales strategies by a firm, so as to enhance the availability of goods and services to meet the needs of the end users or consumers through advertising and market research. Thus, it comprises of all the activities such as, identifying, anticipating set of medium and processes for creating, promoting, delivering, and exchanging goods and services that has value for customers. It typically, involves understanding customer needs, building and maintaining healthy relationships with them in order to scale up your business.
Suppose Cold Goose Metal Works Inc. is evaluating a proposed capital budgeting project (project Beta) that will require an initial investment of $3,000,000. The project is expected to generate the following net cash flows:
Year Cash Flow
Year 1 $350,000
Year 2 $450,000
Year 3 $450,000
Year 4 $450,000
Cold Goose Metal Works Inc.'s weighted average cost of capital is 8%, and project Beta has the same risk as the firm's average project. Based on the cash flows, what is project Beta's NPV?
Answer:
Cold Goose Metal Works Inc.
Based on the cash flows, project Beta's NPV is negative:
= ($1,602,200).
Explanation:
a) Data and Calculations:
Initial investment in project Beta = $3,000,000
Weighted average cost of capital = 8%
Net cash flows:
Year Cash Flow Discount Factor Present Value
Year 1 $350,000 0.926 $324,100
Year 2 $450,000 0.857 385,650
Year 3 $450,000 0.794 357,300
Year 4 $450,000 0.735 330,750
Total cash inflows = $1,397,800
Investment cost = $3,000,000
NPV = -$1,602,200
b) Cold Goose should not pursue the investment. The cash outflows outweigh the cash inflows by more than 50%. The net present value of the project is negative.
Using the GLOBE study results and other supporting data, determine what Japanese managers believe about their subordinates. How are these beliefs similar to those of U.S. and European managers? How are these beliefs different?
Net income was $35,000. Issued common stock for $64,000 cash. Paid cash dividend of $14,600. Paid $50,000 cash to settle a note payable at its $50,000 maturity value. Paid $12,000 cash to acquire its treasury stock. Purchased equipment for $39,000 cash. Use the above information to determine cash flows from financing activities. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
- $76,600
Explanation:
cash flows from financing activities - $76,600
A costing system that uses actual costs for direct materials and labor and predetermined overhead rates to apply overhead is called a(n)
Answer: normal costing system
Explanation:
A costing system which uses the actual costs for direct materials and the labor and predetermined overhead rates to apply overhead is referred to as the normal costing system.
Normal costing system is the cost allocation method whereby cost is assigned to products which are based on the labor, materials, and the overhead which are used in their production.
How to evaluate the creditworthiness of customers both individual consumers and business customers?
Answer:
Here are six ways to determine creditworthiness of potential customers.Assess a Company's Financial Health with Big Data. ..Review a Businesses' Credit Score by Running a Credit Report. ...Ask for References. ..check the Businesses' Financial Standings. ...Calculate the Company's Debt-to-Income Ratio. ...Investigate Regional Trade Risk.Explanation:
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Answer:
The three most commonly used credit reporting agencies that measure creditworthiness are Experian, TransUnion, and Equifax.
Credit helps you purchase a home, lease a car, rent an apartment, etc. Credit is very important, but also very dangerous. Mistakes you make will have a lasting impact that will stay on your credit report for years. NEVER max out a credit card, it will greatly impact your score and any future loans you need for the next several years following the max out.
Credit, in my experience and opinion, is really for lenders to see how responsible of a spender you are.
Explanation:
My answer for Plato
Payne Company provided the following information relevant to its inventory sales and purchases for December 2013 and the first quarter of 2014:
Dec. 2013 Jan. 2014 Feb. 2014 Mar. 2014
(Actual) (Budgeted) (Budgeted) (Budgeted)
Cost of goods sold $80,000 $140,000 $180,000 $120,000
Desired ending inventory levels are 25% of the following month's projected cost of goods sold. The company purchases all inventory on account. January Year 2 budgeted purchases are $180,000. The normal schedule for inventory payments is 60% payment in month of purchase and 40% payment in month following purchase.
Budgeted cash payments for inventory in February 2014 would be: __________
Answer:
$171,000
Explanation:
Purchases in February = ($120,000 * 25%) + ($180,000 -$180,000*25%)
Purchases in February = $30,000 + $135,000
Purchases in February = $165,000
Payment in February = ($180,000 * 40%) + ($165,000 * 60%)
Payment in February = $72,000 + $99,000
Payment in February = $171,000
So, the bdgeted cash payments for inventory in February 2014 will be $171,000.
Name two of the organizations that are involved in standards or installation requirements for home automation systems:
Answer:
American National Standards Institute
Institute of Electrical and Electronics Engineers
Explanation:
The American National Standards Institute oversees the standardization of products, systems, and services in the United States as well as the harmonization of these standards with those obtainable in other countries. They also accredit the standards developed by other standards organizations.
The Institute of Electrical and Electronics Engineers makes educational contributions to the advancement and development of standards and installation systems. It is a merger of the American Institute of Electrical Engineers and the Institute of Radio Engineers.
Which of the following would not occur as a result of a monopolistically competitive firm suffering a short-run economic loss?
A) The firm could exit the industry in the long run.
B) If the firm does not exit the industry in the long run its demand curve will shift to the left.
C) If the firm does not exit the industry in the long run its demand curve will shift to the right.
D) If the firm remains in the industry in the long run it will break even.
choose "A"
choose "B"
choose "C"
choose "D"
Answer:
B) If the firm does not exit the industry in the long run its demand curve will shift to the left.
Explanation:
This is because the statement "If the firm does not exit the industry in the long run its demand curve will shift to the left, " simply means that if the monopolistic competitive firm stays in a particular industry for long, the firm will experience a situation in which less of the good or service is demanded at every price.
However, this cannot be true because a monopolistic competitive firm produces unique products that tend to have its specific customers. These customers, in the long run, will demand more goods and services of the firms which will be affected positively by a lot of reasons including prices of related goods, increase in salary, better economy at large, etc.
A competitive market analysis takes into consideration?
Answer:
A competitive analysis is the process of identifying your competitors and evaluating their strategies to determine their strengths and weaknesses relative to your own business, product, and service. The goal of the competitive analysis is to gather the intelligence necessary to find a line of attack and develop your go-to-market strategy.Explanation:
#AnswerForTreesLisa Company had 100 units in beginning inventory at a total cost of $10,000. The company purchased 200 units at a total cost of $26,000. At the end of the year, Lisa had 85 units in ending inventory.
Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost. (Round average-cost per unit and final answers to 0 decimal places, e.g. 1,250.)
The cost of the ending inventory
$ FIFO
$ LIFO
$ Average-cost
The cost of goods sold
$ FIFO
$ LIFO
$ Average-cost
Answer:
Lisa Company
FIFO LIFO Average-cost
The cost of the ending inventory $11,050 $8,500 $10,200
The cost of goods sold $24,950 $27,500 $25,800
Explanation:
a) Data and Calculations:
Beginning inventory 100 units $10,000 $100
Purchase of 200 units 26,000 $130
Total units available for sale = 300 $36,000
Ending inventory - 85 units
Units sold = 215 units
Weighted-average cost per unit = $120 ($36,000/300)
FIFO:
Cost of goods sold = $24,950 ($36,000 - $11,050)
Ending inventory = $11,050 (85 * $130)
LIFO:
Cost of goods sold = $27,500 ($36,000 - $8,500)
Ending inventory = $8,500 (85 * $100)
Weighted-average:
Cost of goods sold = $25,800 (215 * $120)
Ending inventory = $10,200 (85 * $120)
Onslow Co. purchases a used machine for $178,000 cash on January 2 and readies it for use the next day at a $2,840 cost. On January 3, it is installed on a required operating platform costing $1,160, and it is further readied for operations. The company predicts the machine will be used for six years and have a $14,000 salvage value. Depreciation is to be charged on a straight-line basis. On December 31, at the end of its fifth year in operations, it is disposed of.
Required:
1. Prepare journal entries to record the machine’s purchase and the costs to ready and install it.
Cash is paid for all costs incurred.
2. Prepare journal entries to record depreciation of the machine at December 31 of (a) its first year in operations and (b) the year of its disposal.
Prepare journal entries to record the machine’s disposal under each of the following separate assumptions: (a) it is sold for $15,000 cash; (b) it is sold for $50,000 cash; and (c) it is destroyed in a fire and the insurance company pays $30,000 cash to settle the loss claim.
Answer:
Onslow Co.
Journal Entries:
1. Jan. 2: Debit Equipment $178,000
Credit Cash $178,000
To record the cash payment for equipment purchase.
2. Jan. 3: Debit Equipment $4,000
Credit Cash $4,000
To record the cash payment for readying the equipment for use.
3. Dec. 31: Debit Depreciation Expense $28,000
Credit Accumulated Depreciation $28,000
To record depreciation expense for the first year.
4. Dec. 31, Year 5: Debit Equipment Disposal$178,000
Credit Equipment $178,000
To transfer the equipment account to the Equipment Disposal account.
Debit Accumulated Depreciation $140,000
Credit Equipment Disposal $140,000
To transfer accumulated depreciation to the Equipment Disposal account.
a) Debit Cash $15,000
Credit Equipment Disposal $15,000
To record the cash proceeds from sale of equipment.
Debit Loss on Sale of Equipment $23,000
Credit Equipment Disposal $23,000
To record the loss on Equipment Disposal.
b) Debit Cash $50,000
Credit Equipment Disposal $50,000
To record the cash proceeds from sale of equipment.
Debit Sale of Equipment $12,000
Credit Gain on Sale of Equipment $12,000
To record the gain on Equipment Disposal.
c) Debit Cash $30,000
Credit Equipment Disposal $30,000
To record the cash proceeds from insurance company.
Debit Loss on Disposal $8,000
Credit Equipment Disposal $8,000
To record the loss on Equipment Disposal.
Explanation:
a) Data and Calculations:
January 2: Cost of used machine = $178,000
January 3: Readying costs = $4,000 ($2,840 + $1,160)
Estimated useful life = 6 years
Estimated salvage value = $14,000
Depreciable amount = $168,000 ($182,000 - $14,000)
Depreciation method = straight-line method
Annual depreciation expense = $28,000 ($168,000/6)
Accumulated depreciation at December 31, Year 5 = $140,000 ($28,000*5)
Disposal date = December 31, Year 5
Journal Entries Analysis:
1. Jan. 2: Equipment $178,000 Cash $178,000
2. Jan. 3: Equipment $4,000 Cash $4,000
3. Dec. 31: Depreciation Expense $28,000 Accumulated Depreciation $28,000
4. Dec. 31, Year 5: Equipment Disposal $178,000 Equipment $178,000
Accumulated Depreciation $140,000 Equipment Disposal $140,000
a) Cash $15,000 Equipment Disposal $15,000
Loss on Sale of Equipment $23,000 Equipment Disposal $23,000
b) Cash $50,000 Equipment Disposal $50,000
Equipment Disposal $12,000 Gain on Sale of Equipment $12,000
c) Cash $30,000 Equipment Disposal $30,000
Loss on Disposal $8,000 Equipment Disposal $8,000
Using the starting point method, what is the price elasticity of demand from a price of $4.50 to a price of $4.00 per pack of 100 screws
Answer:
The price elasticity of demand is -9.00.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
The table below shows the weekly demand for machine screws at the local hardware store.
Price (dollars per pack of 100 screws) Quantity (packs of 100 screws)
$5.00 0
4.50 60
4.00 120
3.50 180
3.00 240
2.50 300
2.00 360
1.50 420
1.00 480
0.50 540
0.0 600
Using the starting point method, what is the price elasticity of demand from a price of $4.50 to a price of $4.00 per pack of 100 screws:
The explanation of the answer is now provided as follows:
New quantity = 120
Old quantity = 60
New price = $4.00
Old price = $4.50
Using the formula for calculating the starting point method for elasticity of demand, we have:
Price elasticity of demand = ((New quantity - Old quantity) / (New price - Old price)) * (Old price / Old quantity) = ((120 - 60) / (4.00 - 4.50)) * (4.50 / 60) = -9.00
Therefore, the price elasticity of demand is -9.00.
The price elasticity of demand is -9.00.
Given information
New quantity = 120
Old quantity = 60
New price = $4.00
Old price = $4.50
Now, we will use the formula below for calculating the starting point method for elasticity of demand.
Price elasticity of demand = ((New quantity - Old quantity) / (New price - Old price)) * (Old price / Old quantity)
Price elasticity of demand = ((120 - 60) / (4.00 - 4.50)) * (4.50 / 60)
Price elasticity of demand = -9.00
In conclusion, the price elasticity of demand is -9.00.
Read more about price elasticity of demand
brainly.com/question/5078326
Draw supply and demand graphs that estimate what will happen to demand, supply, and the equilibrium price of coffee if these events occur: Widely reported medical studies suggest that coffee drinkers are less likely to develop certain diseases.
Answer:
Please find the required diagram in the attached image
Explanation:
Only a change in the price of a good leads to a movement along the demand curve of that good. Also, only a change in the price of the good would lead to an increase or decrease in the quantity demanded of that good.
Other factors other than the change in the price of the good would lead to a shift of the demand curve. Some of those factors include :
1. a change in consumers' expectation
2. a change in the taste of consumers
3. a change in income
As a result of the study, there would be an increase in the demand for coffee. This would shift the demand curve to the right. As a result, there would an increase in equilibrium price and quantity
Carstow uses the periodic inventory method. (In the periodic method it is assumed that all sales occur the last day of the accounting period - or after all purchases during the period.) Carstow had the following inventory transactions in May, of the current year. On May 1, Carstow had 250 units in inventory that cost $8 each. On May 14, Carstow purchased 800 units at $10 each. On May 20, Carstow purchased 60 units at $13 each. On May 24, Carstow purchased 110 units at $14 each. Carstow sold 840 units on May 28th for $28 each. Do a computation for items 1-6 in the left column. Then, match the computations to the description. There may be extra choices in the right column that will not be used. Round the weighted average cost per unit to the nearest penny for those computations. (Final answer should be rounded to the nearest dollar.)
1. Sales revenue
2. Total cost of goods available for sale during the period
3. Cost of goods sold under FIFO
4. Cost of goods sold under LIFO
5. Cost of ending inventory under LIFO
6. Cost of goods sold under weighted average
A. $3,300
B. $3,838
C. $4,420
D. $7,900
E. $8,484
F. $9,020
G. $12,320
H. $23,520
Answer:
Carstow Inc.
1. Sales revenue = H. $23,520
2. Total cost of goods available for sale during the period = G. $12,320
3. Cost of goods sold under FIFO = D. $7,900
4. Cost of goods sold under LIFO = F. $9,020
5. Cost of ending inventory under LIFO = A. $3,300
6. Cost of goods sold under weighted average = E. $8,484
Explanation:
a) Data and Calculations:
Date Description Units Unit Cost Total
May 1 Beginning inventory 250 $8 $2,000
May 14 Purchase 800 $10 8,000
May 20 Purchase 60 $13 780
May 24 Purchase 110 $14 1,540
May 28 Total units/costs 1,220 $12,320
May 28 Sales 840 $28
May 28 Ending inventory 380
Sales revenue = $23,520 (840 * $28)
FIFO:
Cost of goods sold = $7,900 (250 * $8 + 590 * $10)
Ending inventory = $4,420 ($12,320 - $7,900)
LIFO:
Ending inventory = $3,300 ($250 * $8 + 130 * $10)
Cost of goods sold = $9,020 (12,320 - $3,300)
Weighted average costs:
Cost of goods available for sale = $12,320
Total units available for sale = 1,220
Unit cost of goods = $10.10 ($12,320/1,220)
Cost of goods sold = $8,484 (840 * $10.10)
Economists use the term inflation to describe a situation in which a. some prices are rising faster than others. b. the economy's overall price level is rising. c. the economy's overall price level is high, but not necessarily rising. d. the economy's overall output of goods and services is rising faster than the economy's overall price level.
Answer:
b
Explanation:
Inflation is a persistent rise in the general price levels
Types of inflation
1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect
Shoe leather cost is when people try to spend money immediately so they would not be holding money for a long time. This is because money loses its value in an inflation.
Menu costs are the costs of changing price constantly as a result of inflation, When there is inflation, prices increases regularly. As a result prices needs to be updated regularly.
Boats and Bait has 78,000 shares outstanding that sell for a price of $74 per share. The stock has a par value of $2 per share. The company's balance sheet shows capital surplus of $185,000 and retained earnings of $225,000. If the company declares a stock dividend of 17.5 percent, what is the new common stock value on the balance sheet?
Answer:
$183,300
Explanation:
The computation is shown below:
Value of common stock value on the balance sheet prior to the stock dividend is
= No of stock outstanding × Face value per share
= 78,000 × $2
= $156,000
Now
New shares to be issued is
= 78,000 × 0.175
= 13,650 shares
So,
Total shares outstanding after stock issue is
= 78,000 + 13,650
= 91,650 shares
Now the value of common stock after stock dividend is
= 91,650 × $2
= $183,300
7. During January 2005, an Italian invested in the Italian stock market and earned a return of 1.47%. During the same month, an American investor investing in the Italian stock market earned a return of –2.358%.
Answer:
Escreva a expressão algébrica correspondente a cada sentença abaixo descrita.
a) O quadrado de um número real x.
b) O cubo de um número real y.
c) O triplo de um número adicionado ao dobro de um número k.
d) A terça parte de um número real diminuído 7.
Explanation:
Escreva a expressão algébrica correspondente a cada sentença abaixo descrita.
a) O quadrado de um número real x.
b) O cubo de um número real y.
c) O triplo de um número adicionado ao dobro de um número k.
d) A terça parte de um número real diminuído 7.
What is the value of Company X stock if the dividend next year will be $3 and is expected to grow at a rate of 4% forever if your required return is 10.74%
Answer:
PV= $44.51
Explanation:
Giving the following information:
Dividen 1= $3
Discount rate= 10.74% = 0.1074
Growth rate= 4% = 0.04
To calculate the price of the stock today, we need to use the following formula:
PV= D1 / (i - g)
PV= 3 / (0.1074 - 0.04)
PV= 3 / 0.0674
PV= $44.51
Financial statements are inexorably moving to a model where all assets and liabilities will be measured on the basis of fair value rather than historical cost.
Required:
a. Discuss the conceptual differences between historical cost and fair value.
b. Discuss the merits and demerits of the two alternative measurement models.
c. What types of assets (or liabilities) more readily lend themselves to fair value measurements? Can we visualize a scenario where all assets are measured using fair value?
d. What are the likely effects of adopting the fair value model on reported income?
Answer:
Part a
historical cost = this is when we carry assets and liabilities at cost less accumulated depreciation or amortization.
fair value = this is when we carry assets and liabilities at amount that they could be exchanged for at arms length between market participants
Part b
Historical Cost
Merits : Value are easy to obtain since they are generated internally
Demerits : Is not very accurate.
Fair Value
Merits : Accurate method as it reflects market situation
Demerit : Costly as data and information is obtained externally
Part c
Assets : Investment Property and Financial assets measured through Profit and Loss
Liabilities : Bonds
Part d
Income is shown more accurately and eliminates biases form estimates.
Explanation:
Historical Method carries assets and liabilities at cost less accumulated depreciation or amortization while Fair Value Model carries assets and liabilities at amount that they could be exchanged for at arms length between market participants
Senior managers have an increasingly important role in top management because of their ability to think strategically. Most bring multi-industry backgrounds, cross-functional management expertise, analytical skills, and intuitive marketing insights to their job. These individuals are referred to as:__________
a. chief financial officer.
b. chief marketing officer.
c. chief executive officer.
d. chief human resource officer.
e. chief manufacturing officer.
Answer:
b. chief marketing officer.
Explanation:
A Chief Marketing Officer (CMO) is a person that is responsible for watching the proper planning, development and the execution of the marketing & advertising initiatives taken by the company. Here the message of an organization should be distributed across the various channels and targeted audience so that the sales goals could be met out
Therefore the option b is correct
An investor will choose between Asset Q with an expected return of 6.5% and a standard deviation of 5.5%, Asset U with an expected return of 8.8% and a standard deviation of 5.5%, and Asset B with an expected return of 8.8% and a standard deviation of 6.5%. Which one should the investor prefer
Answer:
Asset U
Explanation:
Reward-to-volatility ratio for Asset Q = Expected return / standard deviation
Reward-to-volatility ratio for Asset Q = 6.5% / 5.5%
Reward-to-volatility ratio for Asset Q = 1.1818
Reward-to-volatility ratio for Asset U = Expected return / standard deviation
Reward-to-volatility ratio for Asset U = 8.8% / 5.5%
Reward-to-volatility ratio for Asset U = 1.6
Reward-to-volatility ratio for Asset B = Expected return / standard deviation
Reward-to-volatility ratio for Asset B = 8.8% / 6.5%
Reward-to-volatility ratio for Asset B = 1.3538
The investor should prefer Asset U because its has the highest reward to volatility ratio among the three options.
