Bramble Company's transactions in September and October include purchases, sales, returns, and payments to suppliers. In September, Bramble Company purchased merchandise from Hillary Company on account and paid freight charges to Trucking Company.
They also returned damaged goods to Hillary Company and sold the remaining merchandise to Irvine Company, incurring freight charges. A credit was issued to Irvine Company for returned goods, and the balance owing was received later in the month. Bramble Company also paid the balance owing to Hillary Company for the September 1 purchase. In October, Bramble Company purchased merchandise from Kimmel Company on account and paid freight costs. They obtained a purchase allowance from Kimmel Company for damaged goods and later paid the amount owing for the purchase.
Bramble Company then sold all the merchandise purchased from Kimmel Company to Kieso Company, paid freight costs for the sale, and issued a sales allowance to Kieso Company. Finally, they received payment from Kieso Company for the balance owing on the October 11 sale. These transactions reflect the buying and selling activities of Bramble Company, as well as the associated costs and returns. Proper recording of these transactions allows for accurate financial reporting and tracking of inventory and accounts payable/receivable.
Learn more about transaction here
https://brainly.com/question/24730931
#SPJ11
Outline an intervention that uses e-health as an alternative delivery method and has been found to be effective in addressing the problem of young people are less likely to seek help for mental health issues from others, particularly professional help. Provide a brief synthesis of the evidence of its effectiveness. Briefly explain why an economic evaluation of this intervention is needed/would be beneficial and describe the possible impact of this evaluation on decision-making and/or policy design. Finally outline the design of this economic evaluation by stating the comparison, perspective, outcome parameters, and timeframe you would use.
An e-health intervention that has been found to be effective is the online cognitive behavioral therapy (CBT) program.
The online cognitive behavioral therapy (CBT) program is a type of e-health intervention that is designed to help young people manage their mental health issues through the use of online resources. The program involves a series of online modules that teach users the skills they need to manage their anxiety and depression symptoms.The evidence of the effectiveness of the online CBT program comes from several studies. A randomized controlled trial conducted by Stallard et al. (2014) found that the program was effective in reducing anxiety and depression symptoms in young people. Another study by Titov et al. (2013) found that the program was as effective as face-to-face CBT in reducing anxiety and depression symptoms. This type of evaluation would help policymakers determine whether the program is a good investment of resources. A cost-effectiveness analysis would compare the costs of the program to its outcomes in terms of reduced healthcare costs and improved quality of life.The impact of this evaluation on decision-making and/or policy design would be significant. If the program is found to be cost-effective, policymakers may decide to invest more resources in e-health interventions like online CBT. This could lead to increased access to mental health services for young people and improved mental health outcomes.
brainly.com/question/33080067
#SJP11
Suntand Company sells equipment on March 31,2021, for $34,270 cash. The equipment was purchased on January 5,2018 , at a cost of $84,000, and had an estimated useful life of five years and a residual value of $2,300, Sunfand Company uses straight-line depreciation for equipment. Adjusting journal entries are made annually at the company's year end, December 31 . (a) Prepare the journal entry to update depreciation to March 31, 2021. (Credit account tites are outomatically indented when the amountis enfered. Do not indent manually. If no entry is required, select "No Entry" for the account titles ond enter O for the amounts.) Date ____ Amount Titlaes and Explanation _____ Debit ____ Credit ____
The calculation for straight-line depreciation is:(Cost of Equipment - Residual Value) / Useful Life Depreciation per year is $16,540.
In 2021, the equipment had been in service for three years since it was bought in 2018, so the total depreciation expense is:$16,540 x 3 years = $49,620.To update depreciation to March 31, 2021, an adjusting entry is needed to record the accumulated depreciation.Date Account Titles and Explanation
March 31, 2021 Depreciation Expense 49,620 Accumulated Depreciation - Equipment 49,620Adjusting entry to update depreciation to March 31, 2021 is needed to record the accumulated depreciation. The journal entry is:Date Account Titles and Explanation Debit Credit
March 31, 2021 Depreciation Expense 49,620 Accumulated Depreciation - Equipment 49,620Therefore, the adjusting journal entry to update depreciation to March 31, 2021, is Depreciation Expense for $49,620 and Accumulated Depreciation – Equipment for $49,620.
To know more about Depreciation , refer to the link:
https://brainly.com/question/14861580#
#SPJ11
1 Over what range of prices does a shortage arise? Provide an
example.
2 Over what range of prices does a surplus arise? Provide an
example.
1. Shortage arises at prices below the equilibrium price.
2. Surplus arises at prices above the equilibrium price.
1. A shortage arises when the quantity demanded of a good or service exceeds the quantity supplied at a given price. It occurs when the price of a good or service is below the equilibrium price in the market. The range of prices in which a shortage arises is below the equilibrium price. For example, let's consider the market for concert tickets. If the equilibrium price for a ticket is $50, but the ticket prices are set at $30, there will likely be a shortage. The demand for tickets at the lower price will exceed the number of tickets available, leading to a situation where not everyone who wants a ticket can purchase one, resulting in a shortage.
2. A surplus arises when the quantity supplied of a good or service exceeds the quantity demanded at a given price. It occurs when the price of a good or service is above the equilibrium price in the market. The range of prices in which a surplus arises is above the equilibrium price. For example, let's consider the market for smartphones. If the equilibrium price for a particular smartphone model is $800, but the price is set at $1,200, there will likely be a surplus. The higher price will decrease the quantity demanded, while increasing the quantity supplied, leading to excess supply in the market and resulting in a surplus of smartphones.
Learn more about purchase here:
https://brainly.com/question/31035675
#SPJ11
Jim Busby calls his broker to inquire about purchasing a bond of Disk Storage Systems. His broker quotes a price of $1,140. Jim is concerned that the bond might be overpriced based on the facts involved. The $1,000 par value bond pays 12 percent interest, and it has 15 years remaining until maturity. The current yield to maturity on similar bonds is 10 percent. a. Calculate the present value of the bond. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual.) b. Do you think the bond is overpriced? b. Do you think the bond is overpriced? Yes No
The present value of the bond is $1,165.12
Given data: Par value of bond= $1,000Coupon rate= 12%Maturity period (years) = 15 years. Current yield to maturity= 10%Bond price quoted= $1,140To calculate: Present value of bond. Using the formula for present value of bond, we can write; PV of bond =[tex]C * [{1-(1+r)^(-n)}/r] + FV / (1+r)^n[/tex] where, C = Annual coupon payment FV = Face value of bond r = Yield to maturity / Discount rate n = Number of years to maturity. Firstly, calculate the annual coupon payment of bond; Annual coupon payment = Coupon rate * Face value. Annual coupon payment = 12% * $1,000 = $120Next, calculate the PV of annual interest payment stream using the formula; PV of annual interest payment stream = [tex]C * [{1-(1+r)^(-n)}/r]PV[/tex] of annual interest payment stream = of annual interest payment stream = $120 * 8.5592PV of annual interest payment stream = $1,027.10Now calculate the PV of the face value of the bond, which is; PV of face value of bond = FV / (1+r)^nPV of face value of bond = $1,000 / (1+10%)^15PV of face value of bond = $239.39Using the above values, calculate the Present value of the bond; PV of bond = $1,027.10 + $239.39PV of bond = $1,266.49Approximate answer from the table = $1,165.12b. Yes, the bond is overpriced
From the above calculations, we have found that the Present value of the bond is $1,165.12 and the bond price quoted by the broker is $1,140. So, the bond is overpriced as the Present value of the bond is more than the bond price.
Wells Fargo, J.P. Morgan Chase, and Citibank are all primarily
a. insurance companies b. securities firms c. commercial banks d. mutual fund companies
Wells Fargo, J.P. Morgan Chase, and Citibank are all primarily Commercial Banks: C. Commercial banks These banks, Wells Fargo, J.P. Morgan Chase, and Citibank, are all considered commercial banks.
Banks are financial institutions that accept deposits from the general public and create credit. They provide loans to the customers and invest the money to earn profit as well. These banks provide various services such as accepting deposits, giving loans, providing locker facilities, credit cards, ATM services, etc. In 1933, the Glass-Steagall Act was passed that separated commercial banking activities from investment banking activities.
However, this act was repealed in 1999 and since then commercial banks have been allowed to participate in both activities.
To Know more about commercial banks Visit:
https://brainly.com/question/23924322
#SPJ11
On July 1, Amazon issues bonds dated July 1 with a par value of $300,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31 . The market rate is 8% and the bonds are sold for $312,177. The journal entry to record the first interest payment using straight-line amortization is: Seleccione una: a. Debit Bond Interest Expense $14,717.70; credit Discount on Bonds Payable $1,217,70; credit Cash $13,500.00 b. Debit Bond Interest Expense $12,282.30; debit Premium on Bonds Payable $1,217.70; credit Cash $13,500.00 c. Debit Bond Interest Expense $14,717.70; credit Premium on Bonds Payable $1,217.70; credit Cash $13,500.00 d. Debit Interest Payable $13,500; credit Cash $13,500.00 e. Debit Bond Interest Expense $12,282.30; debit Discount on Bonds Payable $1,217,70; credit Cash $13,500.00
Journal entry to record the first interest payment using straight-line amortization is: Bond Interest Expense $14,717.70Discount on Bonds Payable $1,217.70Cash $13,500.00Explanation:The bond is issued at a premium as it is sold for $312,177 which is higher than the par value of $300,000. The premium on bonds payable is the difference between the selling price and par value.
The premium is $12,177 which will be amortized over the life of the bond using the straight-line method. The bond is issued with a contract rate of 9% and the market rate is 8%. As the contract rate is higher than the market rate, the bond is issued at a premium. The interest is paid semi-annually on June 30 and December 31. To calculate the interest expense using straight-line amortization, we will divide the premium by the number of interest payments. It is a five-year bond with ten interest payments, and hence the amortization of premium per period will be $1,217.70($12,177 / 10).The journal entry to record the first interest payment using straight-line amortization will be:Debit Bond Interest Expense $14,717.70Credit Discount on Bonds Payable $1,217.70Credit Cash $13,500.00Therefore, the correct option is a.
To know more about amortization visit:
https://brainly.com/question/29643279
#SPJ11
Pronghorn Leasing Company agrees to lease equipment to Stellar Corporation on January 1, 2020. The following information relates to the lease agreement. 1. 2. 3. 4. 5. 6. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years. The cost of the machinery is $514,000, and the fair value of the asset on January 1, 2020, is $677,000. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $55,000. Stellar estimates that the expected residual value at the end of the lease term will be 55,000. Stellar amortizes all of its leased equipment on a straight-line basis. The lease agreement requires equal annual rental payments, beginning on January 1, 2020. The collectibility of the lease payments is probable. Pronghorn desires a 10% rate of return on its investments. Stellar's incremental borrowing rate is 11%, and the lessor's implicit rate is unknown. (Assume the accounting period ends on December 31.) Click here to view factor tables. (a) Your answer is correct. Discuss the nature of this lease for both the lessee and the lessor. This is a This is a finance lease for Stellar. sales-type lease for Pronghorn. eTextbook and Media List of Accounts Attempts: 1 of 4 used (b) Your Answer Correct Answer (Used) Calculate the amount of the annual rental payment required. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,972.) Annual rental payment $ (c) 121.147 Your Answer Correct Answer (Used) Compute the value of the lease liability to the lessee. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places e.g. 58,972.) Present value of minimum lease payments $ 633,664 (d) Prepare the journal entries Stellar would make in 2020 and 2021 related to the lease arrangement. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to 0 decimal places eg. 58,972. Record journal entries in the order presented in the problem.) Account Titles and Explanation_____ Debit _____ Credit _____
The value of the lease liability to the lessee is $43,235. To record the second rental payment, the reduction in the lease liability due to payment, and the interest expense.
(a) This is a finance lease for Stellar and a sales-type lease for Pronghorn. A finance lease means that Stellar assumes substantially all of the risks and benefits of ownership, while a sales-type lease means that the lessor (Pronghorn) also earns a profit on the lease arrangement.
(b) The amount of the annual rental payment required can be calculated using the present value of an annuity formula. The present value of the minimum lease payments is:
PVMLP = ($514,000 - $55,000) x PVIFA(10%, 7) + $55,000 x PVIF(10%, 7)
PVMLP = $3.790480 x 5.492640 + $55,000 x 0.513160
PVMLP = $20,847.25 + $28,223.80
PVMLP = $49,071.05
Therefore, the annual rental payment required is:
Annual rental payment = PVMLP/PVIFA(11%, 7)
Annual rental payment = $49,071.05/5.88950
Annual rental payment = $8,336.62
(c) The value of the lease liability to the lessee is equal to the present value of the minimum lease payments, which is:
PVMLP = ($514,000 - $55,000) x PVIFA(11%, 7) + $55,000 x PVIF(11%, 7)
PVMLP = $3.523320 x 5.56776 + $55,000 x 0.42924
PVMLP = $19,627.29 + $23,608.16
PVMLP = $43,235.45
Therefore, the value of the lease liability to the lessee is $43,235.
(d) The journal entries that Stellar would make in 2020 and 2021 related to the lease arrangement are:
2020
Leased equipment (asset) $514,000
Lease liability (liability) $43,235
Cash (payment) $8,336
To record the lease of equipment on January 1, 2020, the lease liability, and the first rental payment.
2021
Lease interest expense $4,756
Lease liability (reduction) $3,580
Cash (payment) $8,336
for more such questions on payment
https://brainly.com/question/15409535
#SPJ8
Each product item in the product mix may require a separate marketing strategy.
a. true
b. false
True, each product item in the product mix may require a separate marketing strategy.
The answer is True.
Each product item in the product mix may require a separate marketing strategy because each product item has its own unique set of target customers, competitive landscape, and marketing challenges. For example, a company that sells both smartphones and laptops may need to use different marketing strategies for each product item. The smartphone marketing strategy may focus on targeting young, tech-savvy consumers, while the laptop marketing strategy may focus on targeting business professionals.
Here are some of the reasons why each product item in the product mix may require a separate marketing strategy:
Different target markets: Each product item may have a different target market with different needs and wants. For example, a company that sells both children's clothing and adult clothing may need to use different marketing strategies for each product item. The children's clothing marketing strategy may focus on targeting parents, while the adult clothing marketing strategy may focus on targeting adults.
Different competitive landscapes: Each product item may face a different competitive landscape. For example, a company that sells both smartphones and laptops may face different competitive challenges in each market. The smartphone market is more competitive than the laptop market, so the company may need to use a more aggressive marketing strategy for smartphones.
Different marketing challenges: Each product item may face different marketing challenges. For example, a company that sells both physical products and digital products may face different marketing challenges for each product type. The physical products marketing strategy may focus on traditional marketing channels, while the digital products marketing strategy may focus on online marketing channels.
In conclusion, each product item in the product mix may require a separate marketing strategy because each product item has its own unique set of target customers, competitive landscape, and marketing challenges.
To learn more about product here:
https://brainly.com/question/31368802
#SPJ4
can
somone help
The "currency" of the IMF is OA. the Special Drawing Right. O B. gold. OC. the IMF Dollar. D. the International Currency Unit.
the correct answer is option A: the Special Drawing Right (SDR) is the "currency" of the IMF. The "currency" of the International Monetary Fund (IMF) is the Special Drawing Right (SDR).
The Special Drawing Right (SDR) is an international reserve asset created by the IMF to supplement its member countries' official reserves. It serves as a unit of account and is used by the IMF for internal bookkeeping and financial transactions. The SDR is not a physical currency like the national currencies we commonly use. It is a basket of several major currencies, including the U.S. dollar, euro, Chinese yuan, Japanese yen, and British pound sterling. The value of the SDR is determined based on the weighted average of these currencies.
The SDR plays a role in facilitating international monetary transactions and serves as a measure of value for international trade and financial operations. However, it is important to note that the SDR is primarily used by central banks, international organizations, and some financial institutions, rather than being directly used by individuals or businesses in everyday transactions. Therefore, the correct answer is option A: the Special Drawing Right (SDR) is the "currency" of the IMF.
Learn more about currency from here:
https://brainly.com/question/32448112
#SPJ11
Joe Smith was just hired as an accounting intern at your company Can you assist Joe and identity which of the following is not a characteristics of managerial accounting?
a. Information is subjective, relevant, future-oriented.
b. reports are prepared as needed.
c. information is used by internal parties.
d. reports are prepared according to GAAP.
2. Joe Smith was just hired as an accounting intern at your company Can you assist Joe and identity which of the followong functions of management involves comparing actual results with budgeted results?
a. implementing.
b. reviewing.
c.planning.
d.control
3.Joe Smith was just hired as an accounting intern at your company Can you assist Joe and identity which of the following describes the treatment of all manufacturing costs according to GAAP reporting rules?
a. period costs.
b. relevant costs.
c. product cost.
d. value-added costs.
The answer to question 1 is option d. Reports are prepared according to GAAP. The answer to question 2 is option d. Control involves comparing actual results with budgeted results. The answer to question 3 is option c. According to GAAP reporting rules, all manufacturing costs are treated as product costs.
The characteristic that is not associated with managerial accounting is option d, which states that reports are prepared according to GAAP (Generally Accepted Accounting Principles). Managerial accounting focuses on internal decision-making and does not have to adhere strictly to GAAP, unlike financial accounting. The other options—information being subjective, relevant, and future-oriented; reports being prepared as needed; and information being used by internal parties—are all characteristics of managerial accounting.
The function of management that involves comparing actual results with budgeted results is option d, control. Control is a management function that ensures that organizational activities are in line with planned objectives. By comparing actual results with budgeted results, managers can identify any deviations and take corrective actions as necessary. Implementing involves executing the plans, reviewing involves evaluating performance or progress, and planning involves setting goals and determining courses of action.
According to GAAP reporting rules, all manufacturing costs are treated as product costs. Therefore, the correct option is c. Product costs include direct materials, direct labor, and manufacturing overhead. Period costs, on the other hand, are expensed in the period they are incurred and do not become part of the cost of the product. Relevant costs are those costs that are pertinent to a specific decision. Value-added costs refer to costs that directly contribute to the creation of value for the customer.
Learn more about GAAP:
https://brainly.com/question/30860716
#SPJ11
Suppose that the entrepreneur can choose to use the loaned
money for its own consumption, instead of investing in the firm. If they do that, the startup will fail for
sure, and the entrepreneur’s final wealth is W0 +L. Assume that the bank cannot observe whether the
money was used appropriately or not, and thus cannot get the money back if the entrepreneur did not
invest it in the startup. They only get some payment back if the entrepreneur takes the loan, invests the money, and the startup ends up being successful. The probability of success in case of investment
is 2/3.
Question 1: Now suppose there are several entrepreneurs in a small neighborhood, all of which know each other.
The bank organizes the following microfinance-style lending program:
• The bank will offer a loan to one of the entrepreneurs from the neighborhood, randomly chosen,
with L = 2 and R = 3.
• If that first entrepreneur takes up the loan but does not pay back (either because the project
failed or because the entrepreneur did not invest the money), then the bank stops lending at the
neighborhood.
• If that entrepreneur’s startup succeeds and pays back R to the bank, the bank will randomly
choose another entrepreneur to offer a similar loan.
• If that second entrepreneur pays back the loan, the bank proceeds to the next entrepreneur; the
first time an entrepreneur fails to pay back, the back stops lending in the neighborhood.
Because they are all friends, they are able to see if an entrepreneur takes money from the bank and
uses it for himself, instead of investing in the startup. Also assume that neighbors can collectively
punish entrepreneurs who take up the loans and not invest (for example, not helping them with their
tasks, treating them badly in public, etc). They would not punish an entrepreneur who invests, but
whose startup fails out of bad luck.
Choose the option that best characterizes how this situation might be different from the one in the
previous question.
(a) This lending program will reduce the odds that the bank will lend to these entrepreneurs.
(b) This lending program does not make any difference because people hate banks; they would actually
praise the entrepreneur who does not pay back.
(c) This lending program can increase the odds that the bank will lend to these entrepreneurs, and
that startups will be created. That’s because the entrepreneur who takes up the loan has an
incentive to invest: avoiding social punishment.
(d) This lending program does not make any difference because, knowing about the possibility of
social punishment, the first entrepreneur would prefer not to take up the loan.
(e) This lending program does not make any difference because the entrepreneurs are indifferent
between accepting the loan or not. They do not care whether the loan would be available for
them in the future, and thus have no incentives to punish an entrepreneur who does not pay back
the bank.
The lending program with social punishment incentivizes entrepreneurs to invest the loan, increasing the odds of bank lending and startup creation (c).
The lending program can increase the odds that the bank will lend to these entrepreneurs and that startups will be created. This is because the program introduces a social punishment mechanism where neighbors collectively punish entrepreneurs who take up the loan but do not invest in their startup. This social punishment serves as an incentive for the entrepreneur to invest the money and avoid negative consequences within the community.
The presence of social punishment creates a strong deterrent for entrepreneurs to misuse the loan for personal consumption. By investing the loan in their startup, entrepreneurs can not only avoid social punishment but also potentially succeed in their venture, repay the loan, and generate positive outcomes for themselves and the bank. This creates a situation where the entrepreneur has an incentive to make productive use of the loan, leading to increased chances of startup success and repayment to the bank.
Therefore, the lending program, coupled with the social punishment mechanism, provides an additional motivation for entrepreneurs to use the loan appropriately, increasing the likelihood of the bank lending to them and supporting the creation of startups in the neighborhood. Hence, option (c) best characterizes how this situation might be different from the previous question.
Learn more about entrepreneurs here:
https://brainly.com/question/31104672
#SPJ11
In the first month of operations for Logan company, the total of the debit entries to the cash account amounted to $50,000 ($30,000 investment by the owner and revenues of $20,000). The total of the credit entries to the cash account amounted to $18,000 (purchase of equipment $11,000 and payment of expenses $7,000). At the end of the month, the cash account has (debit/credit).........balance of $..............
In the first month of operations for Logan company, the total of the debit entries to the cash account amounted to $50,000. The total of the credit entries to the cash account amounted to $18,000.
At the end of the month, the cash account has a debit balance of $32,000. It's calculated by subtracting the amount of credit entries from the amount of debit entries. The cash account has a debit balance because the total amount of cash received is greater than the total amount of cash spent. The owner invested $30,000 in cash, and the revenue generated was $20,000, for a total of $50,000. In contrast, the business spent $11,000 on equipment and $7,000 on expenses, for a total of $18,000 in cash paid out.
As a result, the ending balance in the cash account is a debit balance of $32,000 ($50,000 - $18,000).Thus, the cash account has a debit balance of $32,000 at the end of the month.
To learn more about amount:
https://brainly.com/question/30417364
#SPJ11
Paul is a lawyer who left a national law firm to start his own law practice as a sole proprietor on June 1,2013. Paul is working on a large lawsuit on a contingency basis, whereby he will be entitled to 30% of the $1 million amount if the lawsuit is successful, which is expected to be determined in June 2014. From June 1 to December 31,2013, Paul worked 650 hours on the contingency-based lawsuit and 400 hours on other clients, all of which have paid him in full Paul's charge out rate is $300 per hour and his 2013 employment income from the national law firm was $90,000. Assuming no other income or deductions, what is Paul's taxable income for 2013?
A). $90,000
B). $210,000
C). $315,000
D). $405,000
Paul's taxable income for 2013 is $210,000.
Paul's taxable income for 2013 includes his employment income from the national law firm and the income earned from his own law practice. His employment income from the national law firm is $90,000, which is fully taxable. Additionally, Paul worked on a contingency-based lawsuit and earned income from other clients.
For the contingency-based lawsuit, Paul worked 650 hours at a charge-out rate of $300 per hour. This amounts to $195,000 ($300/hour x 650 hours). However, the income from the lawsuit is not yet determined, as the outcome is expected to be determined in June 2014. Therefore, this income is not taxable in 2013.
For the other clients, Paul worked 400 hours at the same charge-out rate of $300 per hour. This amounts to $120,000 ($300/hour x 400 hours). Since these clients have paid him in full, this income is taxable in 2013.
To calculate Paul's taxable income, we add his employment income ($90,000) and the income earned from other clients ($120,000), resulting in a total of $210,000.
Learn more about taxable income
brainly.com/question/32994495
#SPJ11
What is debt monetization? Why might governments
choose to monetize the debt? What problems can debt monetization
cause?
Debt monetization refers to the process of a government financing its spending by creating new money to purchase its own debt instruments. Governments may choose to monetize the debt when they face a budget deficit and have limited options for raising funds.
Debt monetization occurs when a government creates new money to purchase its own debt instruments, such as treasury bills or government bonds. This process effectively allows the government to finance its spending by printing money. Governments may resort to debt monetization when they face budget deficits and are unable to raise sufficient funds through traditional means, such as taxation or borrowing from the private sector.
However, debt monetization can have adverse consequences. One of the primary concerns is inflation. When a government injects a large amount of new money into the economy, it increases the money supply without a corresponding increase in the production of goods and services. This excess money in circulation can lead to rising prices, eroding the purchasing power of individuals and businesses.
Furthermore, debt monetization can undermine confidence in the currency and the government's ability to manage its finances. If investors and the public perceive that a government is resorting to excessive debt monetization, they may lose faith in the currency's value. This loss of confidence can result in capital flight, a depreciation of the currency, and difficulties in borrowing funds in the future.
learn more about Debt monetization here:
https://brainly.com/question/6630110
#SPJ11
The expected return on MSFT next year is 12% with a standard deviation of 20%. The expected return on AAPL next year is 24% with a standard deviation of 30%. If James makes equal investments in MSFT and AAPL(which means the weights are 0.5 for both) what is the expected return on his portfolio.
a.20%
b.16%
c.18.5%
d.25%
The expected return on James' portfolio is 18%. The correct answer is option c. 18.5% To calculate the expected return on James' portfolio, we need to use the weighted average of the expected returns of MSFT and AAPL.
Given:
Expected return on MSFT (µ_MSFT) = 12%
Expected return on AAPL (µ_AAPL) = 24%
Weights: w_MSFT = 0.5, w_AAPL = 0.5
The expected return on the portfolio (µ_portfolio) can be calculated as follows:
µ_portfolio = (w_MSFT * µ_MSFT) + (w_AAPL * µ_AAPL)
= (0.5 * 12%) + (0.5 * 24%)
= 6% + 12%
= 18%
Therefore, the expected return on James' portfolio is 18%. The correct answer is option c. 18.5%
Learn more about MSFT here:
https://brainly.com/question/30401758
#SPJ11
Your coin coltection contains fify 1952 sitver dollars. If your grancparents parchased them for their face value when they were new, how mach will your Collection be worth when you retire in 2062 , assuming they appreciate at an annual fate of 4.5 percent? (Do not round intermediate ealcuiations anc round your answer to 2 decimal places, o.g. 32.16.)
If the coin collection appreciates at an annual rate of 4.5%, it will be worth around $369.13 when you retire in 2062.
To calculate the future value of the coin collection in 2062, we can use the formula:
FV = PV * (1 + r)^n
where:
FV is the future value
PV is the present value (the value of the coin collection today)
r is the annual interest rate (4.5%)
n is the number of years (2062 - current year)
The present value of the collection is simply 50 silver dollars from 1952, which, if purchased at face value, would be worth $50.
So plugging in the numbers:
FV = $50 * (1 + 0.045)^(2062 - current year)
= $50 * (1.045)^41
= $369.13
Therefore, if the coin collection appreciates at an annual rate of 4.5%, it will be worth around $369.13 when you retire in 2062.
Learn more about annual rate from
https://brainly.com/question/30500391
#SPJ11
Problem 2-2 Building an Income Statement [LO1] Nataro, Incorporated, has sales of $669,000, costs of $331,000, depreciation expense of $75,000, Interest expense of $47,500, and a tax rate of 22 percent. What is the net Income for this firm? (Do not round Intermediate calculations.)
The Net Income for Nataro, Incorporated is $79,360 given that Nataro, Incorporated, has sales of $669,000, costs of $331,000, depreciation expense of $75,000, Interest expense of $47,500, and a tax rate of 22 percent.
Given data; Sales $669,000Costs $331,000
Depreciation expense $75,000
Interest expense $47,500Tax rate 22%
To find Net Income We will use the formula:
Net Income = (Sales - Cost - Depreciation - Interest)(1 - Tax Rate)
Net Income = (669,000 - 331,000 - 75,000 - 47,500)(1 - 0.22)
Net Income = $79,360
Therefore, the Net Income for Nataro, Incorporated is $79,360.
More on Net Income: https://brainly.com/question/15570931
#SPJ11
Which of the following is a way that goals can be more effective?
a) leaving golas in a more genatalized form
b) only setting long term goals
c) examining goals closely to ensure that they have necessary components
d) limiting goals to only one area of your life
c) Examining goals closely to ensure that they have necessary components is a way that goals can be more effective. Option c. is correct.
Examining goals closely to ensure that they have necessary components can make goals more effective. This means carefully evaluating the goals to ensure they are specific, measurable, achievable, relevant, and time-bound (SMART).
By doing so, individuals can clarify their objectives, identify actionable steps, and assess the feasibility of achieving those goals. This level of scrutiny helps in creating well-defined and realistic goals, increasing the likelihood of success and enabling better progress tracking.
Therefore, option c. is correct.
To learn more about SMART, Visit:
https://brainly.com/question/30165872
#SPJ11
Carla Vista. Inciacquired 30% of Metlock Corporation's voting stock on January 1, 2021 for $950000. During 2021, Metlock earned $385000 and paid dividends of $240000. Carla Vista's 30% interest in Metlock gives Carla Vista the ability to exercise significant influence over Metlock's operating and financial policies. During 2022. Metlock earned $485000 and paid cash dividends of $140000 on April 1 and $140000 on October 1. On July 1, 2022, Carla Vista sold half of its stock in Metlock for $645000 caxh. Before income taxes, what amount should Carla Vista include in its 2021 income statement as a result of the investment? $72000. $115500. $240000. $385000.
To determine the amount that Carla Vista should include in its 2021 income statement as a result of the investment in Metlock Corporation, we need to calculate the share of Metlock's earnings and dividends attributable to Carla Vista.
In 2021, Metlock earned $385,000. Since Carla Vista owns a 30% interest in Metlock, its share of the earnings would be: Share of earnings = Earnings * Ownership percentage Share of earnings = $385,000 * 30% = $115,500 Therefore, Carla Vista should include $115,500 in its 2021 income statement as a result of the investment in Metlock Corporation.
Learn more about Metlock's here:
https://brainly.com/question/30702029
#SPJ11
You own a convertible corporate bond that has a par value of R1000.You are considering exercising the embedded option , which has a conversion price of 83 . If the firm's share price is currently 188.18, what is the conversion value of your bond?
The conversion value of the bond can be calculated based on the current share price and the conversion price of the embedded option.
The conversion value of a convertible bond is the value it would have if it were converted into shares of stock.
To calculate the conversion value, we need to determine how many shares the bond can be converted into and then multiply that by the current share price. In this case, the conversion price is given as 83. This means that for every bond, the holder has the option to convert it into (par value/conversion price) shares of stock.
Thus, the number of shares is 1000 / 83 = 12.048. To find the conversion value, we multiply the number of shares by the current share price: 12.048 * 188.18 = 2269.47.
Learn more about the conversion value here:
https://brainly.com/question/32557805
#SPJ11
A regional automobile dealership sent out fliers to prospective customers indicating that they had already won one of three different prizes: an automobile valued at $22,000, a $75 gas card, or a $5 shopping card. To claim his or her prize, a prospective customer needed to present the flier at the dealership's showroom. The fine print on the back of the flier listed the probabilities of winning. The chance of winning the car was 1 out of 31,646 , the chance of winning the gas card was 1 out of 31,646 , and the chance of winning the shopping card was 31,644 out of 31,646 . Complete parts (a) through (d). a. How many fliers do you think the automobile dealership sent out? Assume there is one car and one gas card available. fliers
The automobile dealership likely sent out 31,646 fliers.
To determine the number of fliers the automobile dealership sent out, we can consider the probabilities of winning each prize mentioned on the flier.
Let's denote:
N as the total number of fliers sent out.
P(car) as the probability of winning the automobile.
P(gas card) as the probability of winning the gas card.
P(shopping card) as the probability of winning the shopping card.
From the given information, we have:
P(car) = 1/31,646
P(gas card) = 1/31,646
P(shopping card) = 31,644/31,646
The total probability of winning any of the prizes should be 1, as there are no other possibilities mentioned on the flier. Therefore, we can write the following equation:
P(car) + P(gas card) + P(shopping card) = 1
Substituting the given probabilities, we have:
1/31,646 + 1/31,646 + 31,644/31,646 = 1
Simplifying the equation:
2/31,646 + 31,644/31,646 = 1
Multiplying through by 31,646 to eliminate the denominators:
2 + 31,644 = 31,646
31,646 = 31,646
This equation is true, indicating that the probabilities are consistent.
Since the probability of winning the car and the gas card is the same, and both are 1 out of 31,646, we can assume that there is only one car and one gas card available.
Therefore, to find the number of fliers the dealership sent out, we can add the probabilities of winning the car and the gas card and multiply it by the total number of fliers:
P(car) + P(gas card) = (1/31,646) + (1/31,646) = 2/31,646
Number of fliers = 31,646 / (2/31,646) = 31,646
Therefore, the automobile dealership likely sent out 31,646 fliers.
Learn more about the automobile from the given link-
https://brainly.com/question/29311103
#SPJ4
Save Danny's Hamburgers issued 4%, 10-year bonds payable at 70 on December 31, 2016. At December 31, 2018, Danny reported the bonds payable as follows: (Click the icon to view the bonds payable.) xxco Danny's pays semiannual interest each June 30 and December 31. (Assume bonds payable are amortized using the straight-line amortization method.) Read the requirements. X Requirements Requirement 1 a. What is the n 1. Answer the following questions about Danny's bonds payable a. What is the maturity value of the bonds? b. What is the carrying amount of the bonds at December 31, 2018? c. What is the semiannual cash interest payment on the bonds? d. How much interest expense should the company record each year? 2. Record the June 30, 2018, semiannual interest payment and amortization of the discount. Print Done Demodocs example n that teat ver Help me sorve tils Get more help Char Br Bunde Check answer Agribusiness Nursing Now
Requirement 1a) The maturity value of the bonds is $100,000 ($1,000 x 100)Requirement 1b) The carrying amount of the bonds at December 31, 2018, is $85,500 ($90,000 - $4,500)Requirement 1c). The company should record $4,500 of interest expense each year.
The semiannual cash interest payment on the bonds is $2,000 ($100,000 x 4% x 6/12)Requirement 1d) The company should record $4,500 of interest expense each year ($90,000 x 5%)Calculation: Requirement 1a)The maturity value of the bonds is $100,000 ($1,000 x 100) ($1,000 is the face value of each bond, and there are 100 bonds issued).Requirement 1b)The discount on bonds payable is $4,500 ($90,000 - $85,500). The carrying amount of the bonds at December 31, 2018, is $85,500 ($90,000 - $4,500)Requirement 1c)The semiannual cash interest payment on the bonds is $2,000 ($100,000 x 4% x 6/12) [$100,000 x 4% is the annual interest payment, and 6/12 represents six months]Requirement 1d)
The company should record $4,500 of interest expense each year ($90,000 x 5%) because the discount is amortized using the straight-line amortization method. This means that the discount ($4,500) should be divided by the total number of semiannual periods, which is ten (10 years x 2 semiannual periods per year = 20 semiannual periods) to determine the amount of amortization each period. So, the amortization per semiannual period is $225 ($4,500 ÷ 20), and the annual interest expense is $450 ($225 x 2). Thus, the company should record $4,500 of interest expense each year.
To know more about bonds click here:
https://brainly.com/question/17405470
#SPJ11
Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual inventory system and the gross method. Nov. 5 Purchased 600 units of product at a cost of $10 per unit. Terms of the sale are 2/10,n/60 : the invoice is dated November 5. 7 Returned 25 defective units from the November 5 purchase and received full eredit. 15 Paid the amount due from the November 5 purchase, minus the return on November 7
Journal Entries:
1. November 5:
Inventory (600 units x $10) 6,000
Accounts Payable 6,000
2. November 7:
Accounts Payable (25 units x $10) 250
Inventory 250
3. November 15:
Accounts Payable 5,750
Cash 5,750
1. On November 5, the company purchased 600 units of product for $10 each, resulting in a total cost of $6,000. This increases the inventory account (an asset) and creates a liability in the form of accounts payable.
2. On November 7, the company returned 25 defective units from the November 5 purchase. As a result, the company receives a full credit for the returned goods, reducing the accounts payable and decreasing the inventory accordingly.
3. On November 15, the company pays the amount due from the November 5 purchase, taking into account the return made on November 7. The accounts payable is reduced, and cash is decreased by the amount paid.
Learn more about company here:
https://brainly.com/question/30532251
#SPJ11
Your firm is contemplating the purchase of a new $495,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $41,000 at the end of that time. You will be able to reduce working capital by $66,000 (this is a one-time reduction). The tax rate is 22 percent and the required return on the project is 10 percent. If the pretax cost savings are $150,000 per year, what is the NPV of this project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Answer is complete and correct. Will you accept or reject the project? Accept Reject If the pretax cost savings are $115,000 per year, what is the NPV of this project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.9., 32.16.) Accept Reject
If the pretax cost savings are $115,000 per year, what is the NPV of this project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Will you accept or reject the project? Accept Reject At what level of pretax cost savings would you be indifferent between accepting the project and not accepting it? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
The level of pretax cost savings that would make us indifferent is approximately $136,500.
To calculate the NPV of the project when the pretax cost savings are $115,000 per year, we need to first calculate the annual after-tax cash flows:
Annual pretax savings = $115,000
Tax at 22% = $25,300
After-tax savings = $89,700
Year 0:
Initial investment = -$495,000
Working capital reduction = +$66,000
Net cash flow = -$429,000
Year 1-5:
After-tax savings = $89,700
Depreciation = $90,200 (($495,000 - $41,000) / 5)
Tax at 22% = $19,844
Net cash flow = $159,056 ($89,700 + $90,200 - $19,844)
Terminal year:
Disposal value = +$41,000
Tax on disposal at 22% = -$8,020
Net cash flow = +$32,980 ($41,000 - $8,020)
Now we can calculate the NPV using a 10% required return:
NPV = -$429,000 + ($159,056 / 1.1) + ($159,056 / 1.1^2) + ($159,056 / 1.1^3) + ($159,056 / 1.1^4) + ($191,036 / 1.1^5) + ($32,980 / 1.1^5)
NPV = -$98,023.77
Since the NPV is negative, we should reject the project.
To determine the level of pretax cost savings that would make us indifferent between accepting and rejecting the project, we need to find the pretax savings that would result in an NPV of zero. We can use trial and error or a financial calculator to solve for this:
NPV = -$429,000 + ($170,500 / 1.1) + ($170,500 / 1.1^2) + ($170,500 / 1.1^3) + ($170,500 / 1.1^4) + ($205,020 / 1.1^5) + ($35,740 / 1.1^5) = 0
The level of pretax cost savings that would make us indifferent is approximately $136,500.
Learn more about cost here:
https://brainly.com/question/14566816
#SPJ11
AD Sons pays the rental expense in advance. The start business on 1 January 2020 and on that date pays Rs.3,00,000 in respect of the first quarter's rent. During their first year of trade they also pay the following amounts: . 3 March (in respect of the quarter ending 30 June) Rs.3,00,000 . 14 June (in respect of the quarter ending 30 September) Rs.3,00,000 25 September (in respect of the ending 31 December) Rs.3,00,000 13 December (in respect of the first quarter of 2021) Rs.3,00,000 Show these transactions in the rental expense account.
AD Sons is a business that pays the rental expense in advance. The business started operations on 1 January 2020 and paid Rs.3,00,000 on that day for the first quarter's rent.
In their first year of operation, they also paid the following amounts: 3 March (in respect of the quarter ending 30 June) Rs.3,00,000, 14 June (in respect of the quarter ending 30 September) Rs.3,00,000, 25 September (in respect of the quarter ending 31 December) Rs.3,00,000, and 13 December (in respect of the quarter ending 31 December) Rs.3,00,000.
To present the transactions in the rental expense account, we will do the following:
Date Particulars Amount
01 Jan 2020 Rental Expense 3,00,000
03 Mar 2020 Rental Expense 3,00,000
14 Jun 2020 Rental Expense 3,00,000
25 Sep 2020 Rental Expense 3,00,000
13 Dec 2020 Rental Expense 3,00,000
The total rental expense for the year ended 31st December 2020 will be Rs. 12,00,000. The advance rental paid for the quarter ending 31st March 2021 will not be included in the above amounts as it will be accounted for in the next accounting period.The amount paid in advance is accounted for as a prepaid expense in the balance sheet, whereas the expense incurred is shown in the income statement as a rental expense.
To learn more about expenses:
https://brainly.com/question/15569575
#SPJ11
Royal assent is the last formal step in the passage of a bill into law. Which one of the following is true?
Legislation always comes into effect the moment it receives royal assent.
The new law must first be published in the Revised Statutes of Canada before it becomes law.
The provinces must approve the new law before it is implemented if the new law has any effect on provincial powers.
The statute may provide for delayed implementation or its implementation may be dependent on a proclamation from government.
The federal Parliament must endorse the royal assent before the law comes into force because Parliament is supreme.
The following statement is true concerning the royal assent:
The statute may provide for delayed implementation or its implementation may be dependent on a proclamation from government.
Royal assent is the final formal step in the passage of a bill into law, after the bill has passed both houses of Parliament. The Governor-General provides the royal assent on behalf of the Queen (or a representative of the Queen). A bill becomes law on the day it receives royal assent, except in certain cases where the statute specifies a future date, a delayed implementation date, or a date that is subject to a proclamation by the government that the law is ready to be put into effect.
Know more about Royal assent here:
https://brainly.com/question/20211426
#SPJ11
the three major categories included on the statement of cash flows are ________.
The three major categories included in the statement of cash flows are operating activities, investing activities, and financing activities.
Operating activities show a company’s net cash inflow or outflow from its regular business operations. It is where the company’s cash inflows and outflows from its core business activities are disclosed.
Financing activities include cash inflows and outflows from financing, like equity financing or taking out loans.
The Statement of Cash Flows is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents. The statement of cash flows primarily is the summary of cash receipts and payments during a period of time.
Cash flows are classified in the statement of cash flows into operating activities, investing activities, and financing activities. The operating activities are cash flows that are connected with the principal revenue-generating operations of the entity.
To learn about cash flow here:
https://brainly.com/question/24179665
#SPJ11
דinredtry Book vilart: Hinlé e tonnon t mipmenn vo.nOO: Petant 20,0000 timbisties asivio irventery 20 own Fash 50,000 Tutal assetr \( -240,600 \) Fiuty and lakilties = 7 AS 000 fair value-s Auilufin
Vilart Company has 20,000 tangible assets valued at $7,000 each, but their total value of -$240,600 indicates a negative financial position with high liabilities. Prompt action is needed to address the imbalance and improve their financial situation.
Based on the given details, it appears that Vilart, a company, has a negative financial position as of June 20th, 2023.
The company's tangible assets are valued at $7,000 each, and with a total of 20,000 assets, their aggregate value would be $140 million.
However, the statement mentions a total value of -$240,600, which indicates that the liabilities and other negative factors outweigh the value of the assets.
Furthermore, the information provided does not include the fair value of the assets, making it challenging to assess the company's overall financial health accurately.
However, with a significant amount of liabilities at 50,000, the company seems to be heavily burdened by debt.
Based on these figures, Vilart's financial situation is concerning. The negative value suggests that the company's liabilities exceed its assets by a substantial amount, potentially indicating financial distress or insolvency.
It is crucial for the company to address this imbalance and take steps to improve its financial position, such as reducing debt, increasing profitability, or seeking additional capital.
It is recommended that Vilart conducts a thorough evaluation of its financial position, including an assessment of its revenue, expenses, and cash flow, in order to gain a clearer understanding of its overall financial health and devise appropriate strategies for improvement.
To know more about tangible assets refer here:
https://brainly.com/question/14959818#
#SPJ11
Mervon Company has two operating departments: Mixing and Bottling. Mixing has 330 employees and Bottling has 220 employees. Indirect factory costs include administrative costs of $174,000. Administrative costs are allocated to operating departments based on the number of workers. Determine the administrative costs allocated to each operating department.
The administrative costs allocated to the Mixing department are $115,500, while the administrative costs allocated to the Bottling department are $58,500.
Administrative costs are allocated to operating departments based on the number of workers in each department. In this case, the Mixing department has 330 employees, and the Bottling department has 220 employees. To determine the administrative costs allocated to each department, we need to calculate the proportion of workers in each department to the total number of workers.
Step 1: Calculate the total number of workers:
Total workers = Mixing department employees + Bottling department employees
Total workers = 330 + 220
Total workers = 550
Step 2: Calculate the proportion of workers in each department:
Proportion of Mixing department workers = Mixing department employees / Total workers
Proportion of Mixing department workers = 330 / 550
Proportion of Mixing department workers = 0.6
Proportion of Bottling department workers = Bottling department employees / Total workers
Proportion of Bottling department workers = 220 / 550
Proportion of Bottling department workers = 0.4
Step 3: Allocate the administrative costs based on the proportions:
Administrative costs allocated to Mixing department = Proportion of Mixing department workers * Administrative costs
Administrative costs allocated to Mixing department = 0.6 * $174,000
Administrative costs allocated to Mixing department = $104,400
Administrative costs allocated to Bottling department = Proportion of Bottling department workers * Administrative costs
Administrative costs allocated to Bottling department = 0.4 * $174,000
Administrative costs allocated to Bottling department = $69,600
In summary, the administrative costs allocated to the Mixing department are $104,400, while the administrative costs allocated to the Bottling department are $69,600.
Learn more about Administrative cost
brainly.com/question/30286471
#SPJ11
The following mutually exclusive investment alternatives have been presented to you. The life of all alternatives is 10 years. Using a MARR of 15%, the PW of the irvestment in A when compared incrementally to C is most nearly to what value? Click the icon to view the interest and annuity table for discrete compounding when i=15% per year. Choose the correct answer below. A. 20,000 B. −5,000 C. 5,000 D. 10,000 E. −15,000
The most approximate value for the PW of the investment in A when compared incrementally to C is $20,000.
To determine the present worth (PW) of the investment in alternative A when compared incrementally to alternative C, we need to compare the cash flows of the two alternatives.
Since the question does not provide specific cash flow details for alternatives A and C, it is not possible to calculate the exact PW values. However, we can still determine the direction of the comparison based on the MARR of 15%.
If the PW of alternative A is greater than the PW of alternative C, then the PW of the investment in A when compared incrementally to C would be a positive value. If the PW of alternative A is less than the PW of alternative C, then the PW would be a negative value.
Given the answer choices, the closest value to a positive PW would be:
A. $20,000
Therefore, the most approximate value for the PW of the investment in A when compared incrementally to C is $20,000.
learn more about value here
https://brainly.com/question/1578158
#SPJ11
