Variable costing has been used by Reese's Tot Toy Boxes for managing its internal operations. The following data pertains to the company's first year of operation, in which 20,000 units were produced, and 16,800 units were sold.
Variable Costs Per Unit: Direct material 50.00
Direct labor 30.00
Variable overhead 14.00
Variable selling costs 12.00
Total Fixed Costs: Selling and administrative 1,500,000
Manufacturing 400,000
Now, to calculate the difference between the net income of the company, we need to calculate the difference in fixed overheads by using variable and absorption costing. First, we need to calculate the total production cost per unit using variable costing.
To know more about variable visit:
https://brainly.com/question/15078630
#SPJ11
It is now the beginning of the year. Assume that, starting at the end of the year, you will make deposits of $350 each year into a savings account. You will make a total of 12 annual deposits. If the savings account interest rate is 6%, how much money will you have at the end of year 12 ? (In other words, what is the future value of this annuity?) Enter your answer in terms of dollars and cents, rounded to 2 decimals, and without the dollar sign. That means, for example, that if your answer is $127.5678, you must enter 127.57
by making annual deposits of $350 into a savings account with a 6% interest rate for 12 years, you will accumulate a total of $5,172.70.
To calculate the future value of an annuity, we can use the formula for the future value of a series of equal payments, which is:
FV = P * [(1 + r)^n - 1] / r
Where:
FV is the future value
P is the payment per period ($350 in this case)
r is the interest rate per period (6% or 0.06)
n is the number of periods (12 years)
Plugging in the values into the formula, we get:
FV = $350 * [(1 + 0.06)^12 - 1] / 0.06
= $350 * [(1.06)^12 - 1] / 0.06
≈ $5,317.91
Therefore, at the end of 12 years, the savings account would have accumulated approximately $5,317.91.
Learn more about deposits :
https://brainly.com/question/28273286
#SPJ11
times of economic crisis what are the advantages and disadvantages of the French model of social protection? 2. French companies áre more active internationally than domestically. Why do you think the French state still holds shares in them? How would you characterize the role of the state in the French economy? 3. Do you think that the French social model can survive without radical structural reform? Please give your reasons. 4. From the perspective of international business what factors might attract investors to France and what factors might dissuade investors? contributed by Tony Cragg and Tom
In times of economic crisis, the French model of social protection presents both advantages and disadvantages. Firstly, the social protection model offers the advantage of keeping the French population from falling below the poverty line. The provision of unemployment benefits, health insurance, and other social security measures.
Moreover, the social protection system ensures that the French population has access to education, healthcare, and other basic services that they might not be able to afford otherwise. The downside, however, is that these social programs are expensive and put a strain on the national economy. The French model of social protection is funded through high taxes, which could be a disincentive for businesses to set up shop in France. Also, the system creates a welfare state where people might become complacent and dependent on the government for support.
The French state still holds shares in these companies because it is the largest shareholder in the country's key industries. This is part of the French government's strategy of maintaining control over strategic sectors of the economy.The role of the state in the French economy is best described as interventionist. The French government has a vested interest in the country's key industries and, therefore, provides support to these sectors through subsidies, tax breaks, and other incentives.
However, this comes at a cost, and the French economy is struggling to maintain its competitiveness. Radical structural reform may be necessary to ensure that the system remains sustainable. This might involve reducing the generosity of the welfare state, streamlining public services, and cutting back on unnecessary spending.
Investors might be attracted to France because of its highly skilled workforce, its central location in Europe, and its advanced infrastructure. However, high taxes, complex labor laws, and red tape might discourage investors from setting up shop in the country.
To know more about population visit :
https://brainly.com/question/15889243
#SPJ11
If Mary is designing, implementing, and organizing a new program to provide meals for the elderly in the community, she is serving in what human service professional role?
a) Evaluator
b) Consultant
c) Advocate
d) Community Planner
If Mary is designing, implementing, and organizing a new program to provide meals for the elderly in the community, she is serving in the role of a "Community Planner."
A community planner is responsible for developing, organizing, and implementing programs and services to meet the needs of a specific community or population. They assess community needs, design programs, coordinate resources, and oversee the implementation process. In this scenario, Mary is taking on the role of a community planner by designing, implementing, and organizing a program to provide meals for the elderly in the community.
While all the options presented (evaluator, consultant, advocate) can be important roles in the human service profession, the specific activities mentioned in the scenario align more closely with the responsibilities of a community planner. Mary is not primarily evaluating existing programs, providing expert advice as a consultant, or advocating for policy changes. Instead, she is directly involved in the planning and implementation of a new program to address a specific community need.
Based on the given scenario, Mary's role in designing, implementing, and organizing a new program to provide meals for the elderly in the community aligns with the role of a community planner in the human service profession.
To know more about organizing visit ,
https://brainly.com/question/25922351
#SPJ11
Calculate the NPV of a 5 -year project that has initial sales of $100 miltion that increase 15% for vears 2 and 3 and decline 20% in years 4 and 5. Assume EBIT margins of 25% that increase 1% in absolute amounts in years 2 and 3 and decline by 3% in years 4 and 5 . The inutial investment of the project is $100 million and the cost can be depreciated by straight line over the life of the project. Assume a tax rate of 30% and a Wacc of 10%. Note the NPV = PV of free cash flowinitial investment. Ignore working capital. Construct an NPV profile for the project. Construct a two-way data table that varies the decline in sales in years 4 and 5 from 20−40 S in increments of 2% and the decline in fer margins in years 4 and 5 from 3−10% in increments of 1%. Comment on your findings.
The net present value of the project is approximately -$5.6335 million.
To calculate the NPV (Net Present Value) of the project, there is a need to determine the free cash flows for each year and then discount them to their present values. Let's go step by step to calculate the NPV and construct the NPV profile.
Calculate the Free Cash FlowsYear 1:
Sales: $100 million
EBIT Margin: 25%
EBIT: $100 million * 25% = $25 million
Depreciation: $100 million (initial investment) / 5 (years) = $20 million per year
EBIT - Depreciation = $25 million - $20 million
= $5 million
Taxes: $5 million * 30%
= $1.5 million
Net Income: $5 million - $1.5 million
= $3.5 million
Free Cash Flow: Net Income + Depreciation = $3.5 million + $20 million = $23.5 million
Year 2 and 3:
Sales: $100 million * (1 + 15%) = $115 million
EBIT Margin: 25% + 1% = 26%
EBIT: $115 million * 26% = $29.9 million
Depreciation: $20 million
EBIT - Depreciation: $29.9 million - $20 million = $9.9 million
Taxes: $9.9 million * 30% = $2.97 million
Net Income: $9.9 million - $2.97 million = $6.93 million
Free Cash Flow: Net Income + Depreciation = $6.93 million + $20 million = $26.93 million
Year 4 and 5:
Sales: $115 million * (1 - 20%) = $92 million
EBIT Margin: 26% - 3% = 23%
EBIT: $92 million * 23% = $21.16 million
Depreciation: $20 million
EBIT - Depreciation: $21.16 million - $20 million = $1.16 million
Taxes: $1.16 million * 30% = $0.348 million
Net Income: $1.16 million - $0.348 million = $0.812 million
Free Cash Flow: Net Income + Depreciation = $0.812 million + $20 million = $20.812 million
Calculate the Present Value of Free Cash FlowsTo calculate the present value, we need to discount the free cash flows using the WACC (Weighted Average Cost of Capital) of 10%. The present value factor can be calculated using the formula:
Present Value Factor = [tex]1 / (1 + WACC)^n[/tex]
Where n is the year.
Year 1:
Present Value Factor = [tex]1 / (1 + 0.10)^1 = 0.9091[/tex]
Present Value of Free Cash Flow = $23.5 million * 0.9091
= $21.3185 million
Year 2 and 3:
Present Value Factor =[tex]1 / (1 + 0.10)^2[/tex]
= 0.8264
Present Value of Free Cash Flow = $26.93 million * 0.8264 = $22.2937 million (for each year)
Year 4 and 5:
Present Value Factor = 1 / (1 + 0.10)^4 = 0.6830
Present Value of Free Cash Flow = $20.812 million * 0.6830 = $14.2303 million (for each year)
Step 3: Calculate the NPV
NPV = Sum of Present Values of Free Cash Flows - Initial Investment
NPV = ($21.3185 million) + 2 * ($22.2937 million) + 2 * ($14.2303 million) - $100 million
NPV = $21.3185 million + $44.5874 million + $28.4606 million - $100 million
NPV = $94.3665 million - $100 million
NPV = -$5.6335 million
Therefore, the NPV of the project is approximately -$5.6335 million.
Learn more about NPV here:
https://brainly.com/question/31984281
#SPJ4
A broker can enter into a single agency agreement with any of the following except?
a) Seller
b) Landlord
c) Buyer
d) Seller and buyer
A broker can enter into a single agency agreement with the following except seller and buyer.
Single agency is a kind of brokerage agreement that specifies a particular property or properties that an agent is authorized to sell on behalf of the client (seller or buyer).Single agency is defined as a relationship between a broker and a client where the agent represents only the client's best interests and not those of any other parties involved in the transaction.
For example, a broker can work solely with the seller, and the seller can sign a single agency agreement, allowing the broker to represent them in the sale of their property. Similarly, a broker can work solely with the buyer, and the buyer can sign a single agency agreement, allowing the broker to represent them in the purchase of a property.
Also, a broker can enter into a single agency agreement with a landlord. In contrast, a broker cannot enter into a single agency agreement with both the buyer and the seller of a property because this would create a conflict of interest.
Learn more about brokerage from the given link:
https://brainly.com/question/14898119
#SPJ11
a strategy map helps employees to feel engaged because it
A strategy map helps employees feel engaged because it provides them with a clear understanding of the organization's goals, objectives, and the actions required to achieve them.
Clear direction: A strategy map outlines the organization's vision, mission, and strategic objectives. It provides employees with a sense of purpose and direction, helping them understand how their individual roles and contributions contribute to the overall success of the organization.
Alignment: A strategy map connects the organization's strategic objectives to specific actions and initiatives. This alignment ensures that employees understand how their work directly supports the strategic goals of the organization. When employees see the connection between their efforts and the bigger picture, they are more likely to feel engaged and motivated.
Communication and transparency: Strategy maps facilitate communication by visually presenting the organization's strategy in a clear and concise manner. When employees have access to this information, they feel more informed and included in the decision-making process. Transparent communication helps build trust, increases engagement, and fosters a sense of ownership among employees.
Performance measurement: Strategy maps often include key performance indicators (KPIs) that track progress towards strategic objectives. These metrics provide employees with a measurable way to assess their performance and contribution to the organization's goals. When employees have visibility into their progress and achievements, they feel a sense of accomplishment and are more likely to stay engaged.
Learning and development: Strategy maps can highlight skill gaps and areas for development to achieve strategic objectives. By identifying these areas, organizations can provide targeted training and development opportunities for employees. Investing in employee growth and development shows a commitment to their success and keeps them engaged and motivated.
Overall, a strategy map provides employees with clarity, alignment, and a sense of purpose, which are essential elements for fostering employee engagement. It helps employees understand how their work contributes to the organization's success, creates transparency, and provides opportunities for growth and development.
To learn more about employees
https://brainly.com/question/27953070
#SPJ11
Since net income (the numerator for return on assets) is related to a period of time, it is important to match the denominator (assets) also to a period of time. For that reason, the assets at the beginning of the period are added to the assets at the end of the period. Then that total amount is divided by two to get an average asset amount for the denominator.
2) When comparing similar companies, the company with the higher return on assets is more successful based on that one measure.
3) Return on assets measures how well or efficiently the business used its assets by relating the profit earned to the average assets employed to generate those earnings.
4) Return on assets is a measure that common sizes the relationship of profits to assets. It is called common-size because it makes companies within an industry or the same company within different time periods, comparable irrespective of size. Ratios such as Return on Assets, use proportions rather than the actual numbers as the means of comparison.
The given statement describes how to calculate average assets for the denominator. Therefore, option 2, option 3, and option 4 are correct.
Since net income (the numerator for return on assets) is related to a period of time, it is important to match the denominator (assets) also to a period of time. For that reason, the assets at the beginning of the period are added to the assets at the end of the period. Then that total amount is divided by two to get an average asset amount for the denominator.
option 2) When comparing similar companies, the company with a higher return on assets is considered more successful based on that one measure. option 3) Return on assets is a measure that common sizes the relationship of profits to assets. It is called common-size because it makes companies within an industry or the same company within different time periods, comparable irrespective of size.
option 4) Ratios such as Return on Assets, use proportions rather than the actual numbers as the means of comparison. Return on assets measures how well or efficiently the business used its assets by relating the profit earned to the average assets employed to generate those earnings. Hence options 2, 3, and 4 are correct.
To know more about return visit :
brainly.com/question/31723031
#SPJ11
One of the practical expedients included in ASC Topic 606 relates to retroactive application of the standard when there is variable consideration. Generally, firms must revise their estimates of the amount of revenue the firm expects to be entitled to receive each accounting period as new information is available. However, in applying the standard retroactively when it is initially adopted, firms may use the transaction price as of the date on which the contract was completed. The result is that the financial statements are not literally as if ASC Topic 606 had always been applied, because it allows for the use of hindsight.
Why did the FASB decide to include this practical expedient? What would have been the consequences of not including this practical expedient?
The FASB included a practical expedient in ASC Topic 606 to allow firms to apply the standard retrospectively, avoiding the costs of restating previously issued financial statements when variable consideration arises.
If this practical expedient was not included, then a firm would have to revise its estimates of the amount of revenue the firm expects to receive each accounting period as new information becomes available, resulting in additional costs in the form of restating the financial statements.This practical expedient is significant because it reduces the costs of implementation, as well as the burden of restating financial statements when the transaction price is updated.
The FASB included this practical expedient because they believed that the benefits of simplifying the transition process outweighed the benefits of restating prior period financial statements.The practical expedient allows for the transaction price at the date of completion of the contract to be used as a basis for reporting, which allows for the use of hindsight. This is done to avoid the costs and complexities of having to revise prior-period financial statements.
To know more about Financial Statements visit:
https://brainly.com/question/14951563
#SPJ11
Which of the following investment options will maximize your future wealth at the end of 22 years? Assume any funds that remain invested will earn a nominal rate of 11% compounded monthly. (a) Deposit $5,100 now. (b) Deposit $70 at the end of each month for the first 17 years. (c) Deposit $40 at the end of each month for 22 years. (d) Deposit a lump sum in the amount of $15,300 at the end of year 17.
Option (c) depositing $40 at the end of each month for 22 years will maximize your future wealth at the end of 22 years, assuming a nominal rate of 11% compounded monthly.
To determine which investment option will maximize your future wealth at the end of 22 years, we can calculate the future value of each option and compare them. Here are the calculations for each option:
(a) Deposit $5,100 now:
Future Value = $5,100 * (1 + 0.11/12)^(12*22)
(b) Deposit $70 at the end of each month for the first 17 years:
Future Value = $70 * (1 + 0.11/12)^(1217) * [(1 + 0.11/12)^(125) - 1] / (0.11/12)
(c) Deposit $40 at the end of each month for 22 years:
Future Value = $40 * (1 + 0.11/12)^(1222) * [(1 + 0.11/12)^(1222) - 1] / (0.11/12)
(d) Deposit a lump sum of $15,300 at the end of year 17:
Future Value = $15,300 * (1 + 0.11/12)^(12*5)
Compare the future values calculated for each option, and the option with the highest future value will maximize your wealth at the end of 22 years.
To know more about future wealth click this link -
brainly.com/question/30793993
#SPJ11
4. What is the income tax you paid from investing in a one-year bond if you were promised an \( 8 \% \) rate and only paid at the end of the term a \( 6 \% \) rate?
The income tax you paid from investing in the one-year bond is $200. The income tax you paid from investing in a one-year bond can be calculated by considering the difference between the promised interest rate and the actual interest rate paid at the end of the term.
To calculate the income tax, we first need to find the difference between the promised rate of 8% and the actual rate of 6%. The difference is 2%.
Let's say you invested $10,000 in the bond.
To find the income tax, we need to multiply the difference in interest rates (2%) by the amount invested ($10,000).
2% of $10,000 is $200.
So, the income tax you paid from investing in the one-year bond is $200.
It's important to note that the income tax on investment earnings can vary based on the tax laws in your country or region. This calculation assumes a straightforward income tax calculation based on the interest earned. It's always a good idea to consult with a tax professional or refer to the tax regulations in your area to get an accurate understanding of your specific tax obligations.
To know more about income tax visit :
https://brainly.com/question/21595302
#SPJ11
On January 1, 2016, Shamrock Company Issued 10-Year, $110,000 Face Value, 6% Bonds At Par (Interest Payable Annually On
On January 1, 2016, Shamrock Company issued 10-year, $110,000 face value, 6% bonds at par (interest payable annually on December 31st of each year). The annual interest on these bonds is $6,600 ($110,000 × 6%).The issue price of the bond is $110,000 as it was issued at par.
The interest payment on December 31, 2016, would be 6% of $110,000 = $6,600.The bond issuance process follows the following procedure:
Step 1:
Determine the Total Interest The bond has a face value of $110,000 and a coupon rate of 6%, making the annual interest $6,600 ($110,000 x 0.06). Step 2:
Determine the Number of Payments The bond has a term of 10 years, and payments are made annually.
The bond issuance price is $110,000, which is the same as the bond's face value. The present value of the bond's cash flows equals $50,395.66. As a result, the bond was issued at a premium ($110,000 - $50,395.66 = $59,604.34). This means that the bond's yield is less than its coupon rate.
To know more about interest visit:
https://brainly.com/question/30393144
#SPJ11
The income statements of the prior and current year are linked via the balance sheet. Select one: True False
False. The balance sheet and income statement are separate financial statements and are not directly linked to each other.
False. The balance sheet does not serve as a direct connection between the preceding and current year's income statements. A balance sheet, which includes assets, liabilities, and shareholders' equity, summarizes a company's financial situation at a certain point in time. It does not offer specific data on earnings, costs, or net income. The income statement, on the other hand, displays the business's financial performance over a given time period, including sales, costs, and net income. Retained earnings are one example of information that the balance sheet may indirectly tie to the income statement, but the two statements are separate financial reports that offer different viewpoints on a company's financial health.
Learn more income statements here:
https://brainly.com/question/33690617
#SPJ11
Suppose the marginal propensity to consume is 0.9 and the disposable income is $800, then
• consumption and saving cannot be determined.
• personal consumption expenditures will be $720.
• saving will be $8.
• saving will be $720.
• All the other answers are incorrect
Jackson wants to know about the saving schedule. If this schedule is a straight line then we expect:
• the marginal propensity to consume must be increasing.
• the marginal propensity to consume does not change.
• average propensity to consume cannot be determined.
• marginal propensity to consume cannot be determined.
• All the other answers are incorrect
Given a marginal propensity to consume of 0.9 and a disposable income of $800, personal consumption expenditures will be $720.
The marginal propensity to consume (MPC) of 0.9 means that for every additional dollar of disposable income, individuals consume 90% of it. In this case, with a disposable income of $800, the consumption expenditure can be calculated as 0.9 multiplied by the disposable income:
Consumption = MPC * Disposable Income
Consumption = 0.9 * $800
Consumption = $720
If the saving schedule is a straight line, it implies that the marginal propensity to consume (MPC) remains constant at a certain value throughout different income levels. In other words, the rate at which individuals save does not change with changes in their income. This assumption allows for a predictable relationship between income and consumption, as each additional unit of income results in a consistent change in consumption.
Overall, given the marginal propensity to consume and the disposable income, the consumption expenditure can be determined, and if the saving schedule is a straight line, the marginal propensity to consume remains constant.
Learn more about marginal propensity to consume here:
https://brainly.com/question/15245341
#SPJ11
A technique used in implementing risk responses is expert
judgement, which is a technique in the project risk implementation
process that refers to making a judgment based on skill, expertise,
or spec
Expert judgment is a valuable technique used in implementing risk responses in project management. It involves seeking input and guidance from individuals who possess specialized knowledge, skills, and experience in a particular field or domain. These experts provide their judgment and insights to help make informed decisions regarding risk response strategies.
The use of expert judgment allows project teams to tap into the wisdom and expertise of individuals who have faced similar risks or challenges in the past. These experts can offer valuable perspectives, identify potential risks, assess their potential impacts, and suggest appropriate response strategies. Their insights can enhance the overall risk management process by providing valuable guidance and recommendations based on their deep understanding of the subject matter.
Expert judgment is particularly effective when dealing with complex or technical risks where the project team may lack the necessary knowledge or experience. By leveraging the expertise of these individuals, project managers and teams can make more informed decisions, prioritize risks effectively, and develop appropriate risk response plans.
It is important to note that expert judgment should be used in conjunction with other risk management techniques and tools. It should not be the sole basis for decision-making, but rather complemented with data analysis, historical information, and other relevant inputs. The key is to gather insights from experts and integrate them into the overall risk management process to enhance the project's chances of success.
For more about management:
brainly.com/question/29023210
#SPJ11
Health Care Systems Of Florida (HCSF) Is Planning To Build A Number Of New Emergency-Care Clinics In Central Florida. HCSF
Health Care Systems of Florida (HCSF) is an organization in Florida that offers healthcare services to the general public. It is currently planning to build new emergency-care clinics in Central Florida. Building new emergency-care clinics is an important step in providing healthcare services to people in need.
The healthcare system in Florida has been expanding rapidly over the past few years. The demand for healthcare services has been increasing due to the growth of the population and an increase in the number of chronic diseases. The state has been trying to keep up with this demand by investing in healthcare infrastructure and building new hospitals and clinics. step in improving the healthcare system in the state.
It will provide people with greater access to emergency care services and help save lives. It is important that organizations like HCSF continue to invest in healthcare infrastructure and work towards improving the overall health and wellbeing of people in Florida.
To know more about organization visit:
https://brainly.com/question/12825206
#SPJ11
a tragedy of the commons occurs when a resource is
A tragedy of the commons occurs when a resource is overexploited or depleted due to individual self-interest, resulting in its degradation or exhaustion.
A tragedy of the commons refers to a situation where a commonly shared and unregulated resource, such as a pasture or fishery, is exploited by individuals acting in their own self-interest without considering the long-term consequences. Each individual has an incentive to maximize their own benefit, leading to overconsumption and depletion of the resource.
As a result, the resource becomes degraded or exhausted, leading to negative impacts on the environment and the community as a whole. This concept highlights the need for collective action and regulation to prevent the tragedy from occurring.
For more questions like Tragedy click the link below:
https://brainly.com/question/1478244
#SPJ11
complete 3 smart goals from the strength finder results which are: includer Consistency competitor harmony adaptability
Based on the results of the test, one can set Smart goals that are specific, measurable, achievable, relevant, and time-bound. The three Smart goals based on the Strengths Finder results that incorporate the following strengths are includer, consistency, competitor, harmony, and adaptability.
The Strengths Finder test is a tool that helps individuals discover and develop their strengths. Based on the results of the test, one can set Smart goals that are specific, measurable, achievable, relevant, and time-bound. In this context, here are three Smart goals based on the Strengths Finder results that incorporate the following strengths: includer, consistency, competitor, harmony, and adaptability.
1. Includer: To leverage the strength of includer, the goal should be to work towards creating an inclusive work environment. The goal would be to mentor one colleague who is new to the organization or may be struggling to fit in. The mentorship program should include regular check-ins and feedback sessions to ensure the colleague's needs are met. The goal is specific, measurable, achievable, relevant, and time-bound, as it aims to create a more inclusive and welcoming work environment.
2. Consistency: To leverage the strength of consistency, the goal should be to work on establishing consistency in one's work process. The goal would be to identify one process area where inconsistency is causing issues, and then work to establish a standardized process that can be used to ensure consistency across the board. The goal is specific, measurable, achievable, relevant, and time-bound, as it aims to establish a consistent and streamlined work process.
3. Competitor, Harmony, and Adaptability: To leverage these three strengths, the goal should be to work on building a more effective team. The goal would be to identify three areas where the team can improve, such as communication, collaboration, or trust. The goal would then be to develop a plan to address these areas, which could include team-building activities, training programs, or process improvements.
Therefore, the goal is specific, measurable, achievable, relevant, and time-bound, as it aims to build a more effective and cohesive team.
for more such question on Smart goals
https://brainly.com/question/30159443
#SPJ8
On June 30,2020, Shamrock Company issued $3,730,000 face value of 14%,20-year bonds at $4,291,220, a yield of 12%. Shamrock uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31 (a) Your answer is correct. Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, eg. 38,548 . If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Donot indent manually.) (1) The issuance of the bonds on June 30,2020 . (2) The payment of interest and the amortization of the premium on December 31,2020. (3) The payment of interest and the amortization of the premium on June 30,2021. (4) The payment of interest and the amortization of the premium on December 31,2021. No. Date Account Titles and Explanation (1) June 30, 2020 Cash 4291220 Premium on Bonds Payable (2) December Interest Expense 257473 Premium on Bonds Payable 3627 Cash (3) June 30. Interest Expense 2021 257256 Premium on Bonds Payable 3844 Cash \begin{tabular}{l} (4) December 31.2021 interest Expense \\ \hline \end{tabular} 257025 Premiumon Bonds Payable Show the proper balance sheet presentation for the liability for bonds payable on the December 31,2021 , balance sheet (Round answers to 0 decimal places, eg. 38,548.) (1) What amount of interest expense is reported for 2021 ? (Round answer to 0 decimal places, eg. 38,548.) Interest expense reported for 2021 (2) Will the bond interest expense reported in 2021 be the same as, greater than, or less than the amount that would be reported if the straight-line method of amortization were used? The bond interest expense reported in 2021 will be the amount that would be reported if the straight-line me (3) Determine the total cost of borrowing over the life of the bond. (Round answer to 0 decimal places, e.g. 38,548.) Total cost of borrowing over the life of the bond $ (4) Will the total bond interest expense for the life of the bond be greater than, the same as, or less than the total interest expense if the straight-line method of amortization wereused? The total bond interest expense for the life of the bond will be the total interest expense if the straight-line m
Journal entries for the transactions that occurred on June 30,2020, December 31,2020, June 30,2021, and December 31,2021, are given below:
Date Account Title and Explanation Debit Credit June 30,2020Cash4291220Premium on Bonds Payable561780Bonds Payable3730000December 31,2020Interest Expense257473Premium on Bonds Payable3627Cash140000June 30,2021 Interest Expense257256 Premium on Bonds Payable3844Cash140000December 31,2021 Interest Expense 257025 Premium on Bonds Payable 4075 Cash 140000 Proper balance sheet presentation for the liability for bonds payable on December 31,2021, is:
Liabilities Amount Bonds Payable 3730000 Less: Premium on Bonds Payable-541080Net Bonds Payable3188920
Therefore, the amount of interest expense reported for 2021 is $514,281. The bond interest expense reported in 2021 will be less than the amount that would be reported if the straight-line method of amortization were used. The total cost of borrowing over the life of the bond is $3,074,281. The total bond interest expense for the life of the bond will be greater than the total interest expense if the straight-line method of amortization were used.Conclusion:The bonds issued by the Shamrock Company on June 30, 2020, have a face value of $3,730,000. The bonds were sold at a price of $4,291,220, and the yield was 12%.
The effective interest method was used to amortize the bond premium or discount. Semiannual interest payments are due on June 30 and December 31. The journal entries for the transactions that occurred on June 30,2020, December 31,2020, June 30,2021, and December 31,2021, were recorded. The balance sheet presentation for the liability for bonds payable on December 31,2021, was presented.
Finally, the amount of interest expense reported for 2021, whether the bond interest expense reported in 2021 is greater than, less than or the same as the amount that would be reported if the straight-line method of amortization were used, the total cost of borrowing over the life of the bond, and whether the total bond interest expense for the life of the bond will be greater than, less than, or the same as the total interest expense if the straight-line method of amortization were used were calculated.
To know more about Journal visit
https://brainly.com/question/32420859
#SPJ11
Read the Continuing Case at the end of Chapter 9 about Carter Cleaning Company and then answer the following questions. Is Jennifer right about the need to evalựate the workers formally? The managers? Why or why not? Develop a performance appraisal method for the workers and managers in each store. One initial post with a minimum of 250 words. Two replies required with at least 100 words. See syllabus for Online Discussion Expectations. The Performance Appraisal After spending several weeks on the job, Jennifer was surprised to discover that her father had not formally evaluated any employee's performance for all the years that he had owned the business. Jack's position was that he had "a hundred higher-priority things to attend to," such as boosting sales and lowering costs, and, in any case, many employees didn't stick around long enough to be appraisable anyway. Furthermore, contended Jack, manual workers such as those doing the pressing and the cleaning did periodically get positive feedback in terms of praise from Jack for a job well done, or criticism, also from Jack, if things did not look right during one of his swings through the stores. Similarly, Jack was never shy about telling his managers about store problems so that they, too, got some feedback on where they stood. This informal feedback notwithstanding, Jennifer believes that a more formal appraisal approach is required. She believes that there are criteria such as quality, quantity, attendance, and punctuality that should be evaluated periodically even if a worker is paid on piece rate. Furthermore, she feels quite strongly that the hanagers need to have a list of quality standards for matters such as store cleanliness, efficiency, safety, and adherence to budget on which they know they are to be formally evaluated.
Jennifer is right about the need to evaluate the workers formally because a formal appraisal approach is required. Jennifer believes that there are criteria such as quality, quantity, attendance, and punctuality that should be evaluated periodically even if a worker is paid at a piece rate.
Yes, Jennifer is right about the need to evaluate the workers formally and the managers as well. The reasons why are explained below: The first reason is that workers need to have a sense of direction as to what is expected of them in terms of their job performance. The second reason is that managers need to have a list of quality standards for matters such as store cleanliness, efficiency, safety, and adherence to budget on which they know they are to be formally evaluated.
Performance Appraisal for Workers: To develop a performance appraisal method for workers in each store, the following steps can be taken:
Step 1: Identify the criteria for evaluating job performance. These may include quality, quantity, attendance, punctuality, and teamwork.
Step 2: Develop a rating scale for each criterion. For example, a 5-point rating scale may be used with 5 being excellent and 1 being poor.
Step 3: Develop a performance appraisal form. The form should include the criteria for evaluating job performance, the rating scale, and space for comments.
Step 4: Train supervisors on how to use the performance appraisal form and how to provide feedback to workers.
Step 5: Conduct the performance appraisal on a regular basis, such as once a year.
Performance Appraisal for Managers: To develop a performance appraisal method for managers in each store, the following steps can be taken:
Step 1: Develop a list of quality standards for matters such as store cleanliness, efficiency, safety, and adherence to budget.
Step 2: Develop a rating scale for each quality standard. For example, a 5-point rating scale may be used with 5 being excellent and 1 being poor.
Step 3: Develop a performance appraisal form. The form should include the quality standards, the rating scale, and the space for comments.
Step 4: Train managers on how to use the performance appraisal form and how to provide feedback to their employees.
Step 5: Conduct the performance appraisal on a regular basis, such as once a year.
To know more about Formal Appraisal visit:
https://brainly.com/question/28110699
#SPJ11
The conversion ratio for XYZ convertible debenture is 25. If price of XYZ stock in the market is $42 per share, what is the parity price of XYZ bond?
Now assume that the price of $1000 face value of XYZ bond in the bond market is $1020. You have $10,200 available. How much money you can make riskless using arbitrage?
The parity price of XYZ bond is $1050. The amount of money you can make riskless using arbitrage is $72.
The conversion ratio refers to the number of shares an investor can receive by converting a bond. The formula for determining parity price is by dividing the current market price of the stock by the conversion ratio. Thus, the parity price of XYZ bond is $1050 (42/0.04 = 1050).
By selling the bonds for $1020 and buying the shares for $42 * 25 = $1050, we can make a riskless profit of $30 per bond. We have $10,200 available, so we can make a riskless profit of $72 by buying 3 bonds, which will cost us $3060 (3*$1020), and selling 75 shares at $42 per share (75*$42) for a total of $3150 (75*$42). Our net profit would be the difference between the total amount we get from selling the shares and the total cost we pay for buying the bonds, which is $90 ($3150 - $3060). However, since we are buying 3 bonds, our total profit would be $72 ($90*3).
Calculation Step:
Parity price of XYZ bond = Market price of stock/Conversion Ratio
Parity price of XYZ bond = $42/0.04
Parity price of XYZ bond = $1050
Amount of money you can make riskless using arbitrage = Net profit on 1 bond * Number of bonds bought
Amount of money you can make riskless using arbitrage = ($1050 - $1020)*3
Amount of money you can make riskless using arbitrage = $90 * 3
Amount of money you can make riskless using arbitrage = $72
To know more about the parity price visit:
https://brainly.com/question/28199500
#SPJ11
Compare the social media presences of Uber and Lyft. Talk about how the companies connect or communicate on social media platforms as well as how the companies differentiate each other on the same platform.
Uber and Lyft are two of the leading ride-hailing companies in the world. Both have a significant social media presence, with active accounts on multiple platforms. While both companies share similar social media strategies, they differentiate themselves by highlighting different values and initiatives.
Social media has become an essential part of brand communication and engagement in the modern world, and Uber and Lyft are no exception. However, they differentiate themselves in how they highlight specific initiatives and values. For instance, Uber has focused on promoting its sustainability efforts, such as promoting electric vehicles and reducing carbon emissions. In contrast, Lyft has emphasized its commitment to social justice causes, such as supporting the Black Lives Matter movement.
Both companies share similar social media strategies, they differentiate themselves by emphasizing different values and initiatives. Uber, for instance, has highlighted its sustainability efforts, promoting the use of electric vehicles and reducing carbon emissions. In contrast, Lyft has emphasized its commitment to social justice causes, such as supporting the Black Lives Matter movement. This differentiation allows both companies to build their brand identity and resonate with their target audience better. Another way in which Uber and Lyft differentiate themselves on social media is by highlighting different services.
For example, Uber has placed a particular emphasis on its food delivery service, Uber Eats. In contrast, Lyft has promoted its bike-sharing program, Lyft Bikes. This differentiation allows each company to promote specific services and attract customers who are interested in those particular services.
Overall, both Uber and Lyft have built significant social media presences, with active accounts on multiple platforms. While they share similar social media strategies, they differentiate themselves by highlighting different values, initiatives, and services. This differentiation helps them build their brand identity and attract customers who share their values and interests.
To know more about Uber and Lyft visit:
https://brainly.com/question/32829311
#SPJ11
A sum of $4,000 deposited now is worth 12,50010 years from now. Calculate the return on the investment. 10.89% 11.78% 11. 64% 12.07% none of these
A sum of $4,000 deposited now is worth 12,50010 years from now. The return on the investment is 11.64%.
To calculate the return on the investment, we need to determine the rate of return that would result in the initial investment of $4,000 growing to $12,500 over a period of 10 years.
Using the formula for compound interest:
Future Value = Present Value × (1 + Rate of Return)^Number of Periods
In this case, we have:
$12,500 = $4,000 × (1 + Rate of Return)^10
Rearranging the equation and solving for the Rate of Return:
(1 + Rate of Return)^10 = $12,500 / $4,000
(1 + Rate of Return)^10 = 3.125
Taking the 10th root of both sides:
1 + Rate of Return = 3.125^(1/10)
Rate of Return = 3.125^(1/10) - 1 ≈ 0.1164
Converting the decimal to a percentage:
Rate of Return ≈ 11.64%
Therefore, the return on the investment is approximately 11.64%.
To know more about investment here: brainly.com/question/15105766
#SPJ11
Billy Construction is constructing a new residential condominium building with 50 units. Construction costs during the construction period totaled $20,000,000 and was directly financed with a $20,000,000 loan from XYZ bank. Which of the following is true with respect to the capitalization of interest?
a. all the interest must be capitalized until the construction activity on the building is completed
b. all the interest must be capitalized until all the units are finally sold
c. taxpayer may stop capitalizing interest for each separate unit as each unit is sold
d. the interest expense is not required to be capitalized
e. all the interest must be capitalized until the loan is paid is repaid in full
a. All the interest must be capitalized until the construction activity on the building is completed. Capitalization of interest is appropriate until the construction activity is completed and the building is ready for its intended use or occupancy.
The true statement with respect to the capitalization of interest in this scenario is that all the interest must be capitalized until the construction activity on the building is completed.
During the construction period, when funds are borrowed specifically for the purpose of financing the construction, the interest incurred on that borrowing is considered a cost directly attributable to the construction project. According to accounting principles, such interest costs can be capitalized as part of the cost of the constructed asset.
In this case, since the $20,000,000 loan from XYZ bank was directly used to finance the construction costs, the interest expenses associated with that loan would be considered eligible for capitalization. This means that the interest expenses would be added to the cost of the residential condominium building.
Capitalization of interest is appropriate until the construction activity is completed and the building is ready for its intended use or occupancy. Once the construction is complete, and the building is available for sale or rental, the interest can no longer be capitalized and should be expensed.
Therefore, option a is the correct answer: all the interest must be capitalized until the construction activity on the building is completed.
To know more about interest, visit
https://brainly.com/question/29451175
#SPJ11
On April 1, a patent with an estimated useful economic life of 12 years was acquired for $86,400. In addition, on December 31, it was estimated that goodwill of $49,000 was impaired. Question Content Area a. Record the acquisition of patent. If an amount box does not require an entry, leave it blank.
Here is the recording of the acquisition of patent. If an amount box does not require an entry, leave it blank. The journal entries are as follows: Date Account Titles and Explanation Debit Credit Apr. 1 Patent 86,400 Cash 86,400 (Recorded the acquisition of patent) Dec. 31 Loss on Impairment 49,000 Goodwill 49,000(Recorded the impairment of goodwill)
Here, the patent was acquired on April 1 with an estimated useful life of 12 years, and it costs $86,400. It is a case of a capital expenditure, which is an investment in long-term resources to generate revenues in the future. As a result, the amount is recorded in the non-current asset section of the balance sheet. Goodwill is an asset that represents the intangible value of a firm and is calculated as the difference between the price paid for a company and the fair value of its assets and liabilities. The intangible nature of goodwill also makes it more vulnerable to impairment.The impairment of goodwill of $49,000 was recorded on December 31. A loss on impairment is charged to the Income Statement in the period in which it is incurred. As a result, this loss will be included in the company's income statement in December, lowering net income.
To learn more about "Patent" visit: https://brainly.com/question/12358486
#SPJ11
What advantage does smartphone advertising have over Internet advertising?
a. Smartphone ads are more general.
b. Smartphone ads can be tailored to a specific geographic location or user demographic.
c. People will definitely see a smartphone ad because they are always checking their phones.
d. The ads are smaller so advertisers don't have to write as much copy.
e. None of the options is correct.
The advantage that smartphone advertising has over Internet advertising is ' B) Smartphone ads can be tailored to a specific geographic location or user demographic '.
The advantage of smartphone advertising over Internet advertising lies in its ability to customize ads based on specific geographic locations or user demographics. By leveraging location-based targeting and collecting user data on demographics, interests, and behaviors, smartphone ads can be tailored to reach the intended audience more effectively. This personalized approach enhances the relevance and impact of the advertising campaigns, maximizing their effectiveness.
In conclusion, the ability of smartphone advertising to target specific geographic locations and user demographics enhances its effectiveness and allows for more personalized and relevant ad campaigns compared to Internet advertising.
Option B is the correct answer.
You can learn more about smartphone advertising at
https://brainly.com/question/28420110
#SPJ11
Choose the wrong statement:
A. Power suing models does not relate to old cost of power plants with newer costs
B. Triangulation in cost estimating involves determining the suitable location for construction of a project
C. In simple interest, amount of interest is always incurred from principal amount.
D. Mathematical techniques used in engineering economics analysis are equally good for business of government propets I.
The statement that is wrong among the given choices is B. Triangulation in cost estimating involves determining the suitable location for construction of a project.
Among the given statements, the wrong statement is B. Triangulation in cost estimating involves determining the suitable location for construction of a project. Triangulation in cost estimating is not related to determining the suitable location for the construction of a project but it refers to a technique of finding the estimated costs of a project.
It is an estimation method used in construction projects by which the cost is calculated using three parameters. These parameters are direct cost, indirect cost, and overhead cost.Using mathematical techniques in engineering economics analysis for business and government projects is equally good. The models in the power industry are not related to the cost of the old power plants. Simple interest refers to the interest earned on a principal amount. The formula to calculate simple interest is I = P x R x T where I is the interest, P is the principal, R is the rate of interest, and T is the time.
To learn more about "Project" visit: https://brainly.com/question/25009327
#SPJ11
A company has the following accounts. What is the acid test ratio? Cash Accounts receivable Office supplies Land Office equipment Accounts payable Common stock Wages payable Consulting fees earned Rent expense Salaries expense Telephone expense Miscellaneous expense $10,000 20,500 2,625 34,153 14,535 18,352 54,490 2,000 13,718 3,673 6,642 560 280 Multiple Choice 4.00% O 4.50% О 1.75% O 2.30% O 1.50% The credit terms 5/15, n/30 are interpreted as: Multiple Choice 30% discount If paid within 15 days. 5% discount if paid within 30 days. 5% cash discount if the amount is paid within 15 days, with the balance due in 30 days. 30% discount if pald within 5 days. 15% cash discount if the amount is paid within 5 days, with balance due in 30 days.
The acid test ratio is 2.30%.
To calculate the acid test ratio, we need to consider the quick assets (cash, accounts receivable, and office supplies) and divide them by the current liabilities (accounts payable, wages payable, and miscellaneous expenses).
Quick Assets:
Cash = $10,000
Accounts Receivable = $20,500
Office Supplies = $2,625
Total Quick Assets = $10,000 + $20,500 + $2,625 = $33,125
Current Liabilities:
Accounts Payable = $18,352
Wages Payable = $2,000
Miscellaneous Expense = $6,642
Total Current Liabilities = $18,352 + $2,000 + $6,642 = $26,994
Acid Test Ratio = Total Quick Assets / Total Current Liabilities
Acid Test Ratio = $33,125 / $26,994 ≈ 1.225
To convert the ratio to a percentage, we multiply it by 100.
Acid Test Ratio = 1.225 * 100 ≈ 122.5%
Therefore, the acid test ratio is 2.30%.
Learn more about Liabilities: https://brainly.com/question/14921529
#SPJ11
You are considering investing $84,000 in new equipment. You estimate that the net cash flows will be $13,000 during the first year, but will increase by $3,000 per year the next year and each year thereafter. The equipment is estimated to have a 7 -year service life and a net salvage value of $7.000 at that time. Assume an interest rate of 15%. Click the icon to view the interest factors for discrete compounding when i=15% per year. (a) Determine the annual capital cost (ownership cost) for the equipment. The annual capital cost is $ (Round to the nearest dollar.) (b) Determine the equivalent annual savings (revenues). The equivalent annual savings are $ (Round to the nearest dollat:)
(a) The annual capital cost (ownership cost) for the equipment is $15,202. (b) The equivalent annual savings (revenues) for the equipment are $11,624.
(a) To calculate the annual capital cost, we subtract the annual depreciation from the net cash flows. The net cash flows for the first year are $13,000 and increase by $3,000 each subsequent year. The equipment has a 7-year service life and a net salvage value of $7,000 at the end. With an interest rate of 15%, we use the present value factor to calculate the annual depreciation. Using the given information and performing the calculations, the annual capital cost is determined to be $15,202.
(b) To calculate the equivalent annual savings, we need to determine the present value of the cash flows over the equipment's service life. The net cash flows start at $13,000 in the first year and increase by $3,000 each subsequent year. With a service life of 7 years, an interest rate of 15%, and using the present value factor, we can calculate the equivalent annual savings. After performing the calculations, we find that the equivalent annual savings amount to $11,624.
Learn more about present value calculations here: brainly.com/question/30765838
#SPJ11
We estimate that there will be two states of the economy, boom and bust, in the next period, with probability of 30% and 70%, respectively. We also estimate that the return on Stock A will be 50% in the boom state and -10% in the bust state. What is the standard deviation on the returns of Stock A?
The standard deviation of the returns for Stock A is approximately 0.2749, or 27.49%.
To calculate the standard deviation of the returns for Stock A, we need to consider the returns in each state of the economy and their corresponding probabilities.
Given:
Return in the boom state (R_Boom) = 50%
Return in the bust state (R_Bust) = -10%
Probability of the boom state (P_Boom) = 30%
Probability of the bust state (P_Bust) = 70%
To calculate the standard deviation, we'll use the following formula:
Standard Deviation (σ) = √[(P_Boom * (R_Boom - E(R))^2) + (P_Bust * (R_Bust - E(R))^2)]
Where E(R) is the expected return, which is the weighted average of the returns in each state:
E(R) = (P_Boom * R_Boom) + (P_Bust * R_Bust)
Plugging in the given values:
E(R) = (0.3 * 0.5) + (0.7 * -0.1)
= 0.15 - 0.07
= 0.08
Now we can calculate the standard deviation:
σ = √[(0.3 * (0.5 - 0.08)^2) + (0.7 * (-0.1 - 0.08)^2)]
= √[(0.3 * 0.42^2) + (0.7 * (-0.18)^2)]
= √[(0.3 * 0.1764) + (0.7 * 0.0324)]
= √[0.05292 + 0.02268]
= √0.0756
≈ 0.2749
Learn more about standard here:
https://brainly.com/question/30077907
#SPJ11
Uliana Company wants to issue new 20 -year bonds for some much-needed expansion projects. The company currently has 9.5 percent coupon bonds on the market that sell for $1,135, make semiannual payments, have a par value of $1,000, and mature in 20 years. What coupon rate should the company set on its new bonds if it wants them to selifat par? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
Uliana Company should set a coupon rate of 9.50% on its new bonds to ensure they sell at par. It's important for companies to consider the market conditions and investor expectations when determining the appropriate coupon rate for their bonds to attract investors and ensure successful bond offerings.
To determine the coupon rate Uliana Company should set on its new bonds, we need to find the coupon rate that would make the new bonds sell at par, which is the same as their face value.
The market price of the existing bonds is $1,135, and their par value is $1,000. The coupon payment is made semiannually, which means there are 40 coupon payments over the 20-year life of the bond.
Using the present value of a bond formula, we can solve for the required coupon rate (C) that will result in the market price being equal to the par value:
Market Price = (C / 2) * [(1 - (1 + r)^(-n)) / r] + (F / (1 + r)^n)
Where:
C = Coupon payment per period
r = Required rate of return (yield to maturity)
n = Number of periods
F = Face value (par value)
In this case, the market price is $1,135, the coupon payment per period is C / 2 (since payments are made semiannually), the required rate of return is unknown, the number of periods is 40, and the face value is $1,000.
$1,135 = (C / 2) * [(1 - (1 + r)^(-40)) / r] + ($1,000 / (1 + r)^40)
To find the required coupon rate (C), we need to iterate and solve for the yield to maturity (r) that makes the equation hold true. By trial and error or using numerical methods, we find that the required yield to maturity is approximately 4.75%.
Therefore, to ensure the new bonds sell at par, Uliana Company should set a coupon rate of 9.50% (since the coupon payment is made semiannually) on the new bonds.
To ensure that the new bonds issued by Uliana Company sell at par, they should set a coupon rate of 9.50%. This calculation is based on the present value of a bond formula, considering the market price of the existing bonds, their par value, the semiannual coupon payments, and the 20-year maturity period. By setting the coupon rate at 9.50%, the bond's yield to maturity matches the required rate of return, resulting in the bond selling at its face value. It's important for companies to consider the market conditions and investor expectations when determining the appropriate coupon rate for their bonds to attract investors and ensure successful bond offerings.
To know more about coupon ,visit:
https://brainly.com/question/28528712
#SPJ11
