Answer:
All of these.
Explanation:
All of these are the correct answer because to determine the net cash from the operating activities, there is a requirement of the current year's income statement, additional information such as depreciation and amortization and a comparative balance sheet. In order to get cash from operating activities, the changes and non-cash capital, other non-cash adjustments, depreciation is added to the net income.
Health and Wealth Company is financed entirely by common stock that is priced to offer a 15 percent expected return. If the company repurchases 25 percent of the common stock and substitutes an equal value of debt yielding 6 percent, what is the expected return on the common stock after refinancing
Answer: 18%
Explanation:
The expected return on the common stock after refinancing will be calculated thus:
Let's assume that common stock is 1000. Therefore, return will be:
= 15% × 1000 = 150
Since 25% of the common stock is repurchased, this will be:
= 25% × 1000 = 250
Then, this 250 is financed by debt at 6%, and this will be:
= 6% × 250 = 15
Then, the new return will be:
= 150 - 15 = 135
Expected Return will now be:
= 135/(1000 - 250)
= 135/750
= 18%
Beginning work in process are 40,000 units and units started this period are 20,000 units. The total units to account for are:______.
Answer: 60,000
Explanation:
Since we are given the information that the beginning work in process are 40,000 units and units started this period are 20,000 units, then the total units to account for will be the addition of the beginning work in process and the units started this period. This will be:
= 40000 + 20000
= 60000
Therefore, the total units to account for is 60000.
On Jan 1 2020, Ethan Corporation issued 12% bonds with a face value of $4,000,000. These bonds mature in ten years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $4,498,490 to yield 10%. Ethan uses a calendar-year reporting period. Using the effective-interest method of amortization, what amount of interest expense should be reported for 2020
Answer:
Ethan Corporation
Using the effective-interest method of amortization, the amount of interest expense that should be reported for 2020 is:
= $449,096
Explanation:
a) Data and Calculations:
Face value of bonds issued = $4,000,000
Issue price of the bonds = 4,498,490
Premium on the bonds = $498,490 ($4,498,490 - $4,000,000)
Coupon interest rate = 12%
Effective interest rate = 10%
Interest payments = June 30 and December 31
June 30:
Cash payment for bond interest = $240,000 ($4,000,000 * 6%)
Interest expense = 224,925 ($4,498,490 * 5%)
Amortization of bond premium = $15,075 ($240,000 - $224,925)
Bonds value = $4,483,415 ($4,498,490 - $15,075)
December 31:
Cash payment for bond interest = $240,000 ($4,000,000 * 6%)
Interest expense = 224,171 ($4,483,415 * 5%)
Amortization of bond premium = $15,829 ($240,000 - $224,171)
Bonds value = $4,467,586 ($4,483,415 - $15,829)
Interest expense for 2020 = $449,096 ($224,925 + $224,171)
what is another name for advertising?
Answer:
commercial, message, pitch
Explanation:
yes
If five different errands are allocated to five time slots, 12-1pm,1-2pm,2-3pm,3-4pm and 4-5pm, how many distinct schedules are possible
Answer:
120
Explanation:
There are 5 different errands and five different time slots for the errands. We are then required to find in how many ways these errands would be arranged in the time slots schedules.
The number of ways the errands can be arranged in the time slot is 5!
5! = 1×2×3×4×5= 120
Therefore there are 120 different ways to arrange the errands in the times slots schedules(5) available.
The price elasticity of demand for a good is likely to be elastic __________.
A. the budget share spent on the good.
B. the number of close substitutes for the good.
C. the available time during which consumers can adjust.
D. all of the above.
Answer:
The price elasticity of demand for a good is likely to be elastic :
A. the greater the proportion of budget share spent on the good.
B. the greater the number of close substitutes for the good.
C. the longer the available time during which consumers can adjust.
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
Price is more elastic in the long run than in the short run because consumers have more time to search for suitable alternatives
The more close substitutes a good has, the more elastic its demand. This is because if price is increased, consumers can easily shift to the consumption of an alternative product
the greater the proportion of budget share spent on the good, the more elastic the demand for the good
Hãy chỉ rõ điểm giống nhau và khác nhau về vấn đề sau đây: Giá trị, giá thành, giá trị cá biệt, giá trị xã hội, giá cả thị trường
This morning you purchased one share of stock for $14. The stock pays $.20 per share each quarter as a dividend. What must the stock price be one year from now if you want to earn a total return of 12 percent for the year
Answer:
$14.88
Explanation:
The computation of the stock price is given below:
A total return of 12% means that
= 0.12 × 14
= $1.68 in a year.
Now
The total dividend payments for 4 quarters is
= 0.2 × 4
= $0.8.
Now the price of the stock should increase by
= 1.68 - 0.8
= 0.88
So the stock price one year from now is
= 14 + 0.88
= $14.88
A court may pierce an LLC's veil if a.members treat the LLC like a separate organization. b.members keep their assests and the assets of the LLC separate. c.the LLC has too many members. d.members fail to provide adequate capital.
Answer:
d.members fail to provide adequate capital.
Explanation:
In the case when the court might have pierce an LLC veil so in that case the members could fail in order to give the enough capital as neither it is treated as the separate organization, nor its assets could keep as separate and also it has not so much members
So as per the given situation, the option d is correct
relationship between short and long run in Philips curve
Answer:
In the short-run, inflation and unemployment are inversely related; as one quantity increases, the other decreases. In the long-run, there is no trade-off. In the 1960's, economists believed that the short-run Phillips curve was stable.
Explanation:
https://courses.lumenlearning.com/boundless-economics/chapter/the-relationship-between-inflation-and-unemployment/
The Bretton Woods system ended when: A. several countries tied the value of their currencies to the U.S. dollar.
B. the United States decided to stop backing the U.S. dollar with gold reserves C. the United States experienced its second Industrial Revolution
D. the gold standard became more popular in countries around the world
Answer:
B
Explanation:
There is no other answer but B. That was Nixon's doing. He took the American dollar off the Gold system. Gold in 1980 eventually went from 35 dollars to 800 which is a stupendous move. Many people, unfortunately for them, bought at the top and it took 31 years (I think) for them to recover their money.
Answer:
B
Explanation:
Loco Pony Adventures rents clowns and ponies for children’s birthday parties. If the annual total cost of furnishing entertainment is given by TC = 0.5 Q 2 + 25 Q + 1,000, the average variable cost of catering to 30 birthday parties is:
Answer and Explanation:
The computation is shown below:
As we know that the variable cost is the cost that changed with the production
So the variable cost arise from TC should be
VC=0.5Q^2+25Q
= 0.5 × (30)^2+25 × 30
= 1200
And,
AVC is
= VC ÷ Q
= 1200 ÷ 30
= 40
Bloom Corporation purchased $1,450,000 of Taylor Company 5% bonds, at their face amount, with the intent and ability to hold the bonds until they matured in 2025, so Bloom classifies its investment as AFS. Unfortunately, a combination of problems at Taylor Company and in the debt securities market caused the fair value of the Taylor investment to decline to $960,000 during 2021.
Required:
For each of the following scenarios, prepare appropriate entry(s) at December 31, 2018, and indicate how the scenario will affect the 2018 income statement (ignoring income taxes).
a. Bloom now believes it is more likely than not that it will have to sell the Taylor bonds before the bonds have a chance to recover their fair value. Of the $490,000 decline in fair value, Bloom attributes $295,000 to credit losses, and $195,000 to noncredit losses.
b. Bloom does not plan to sell the Taylor bonds prior to maturity, and does not believe it is more likely than not that it will have to sell the Taylor bonds before the bonds have a chance to recover their fair value. Of the $490,000 decline in fair value, Bloom attributes $295,000 to credit losses, and $195,000 to noncredit losses.
Answer:
a. Dr OTT impairment loss $490,000
Cr Discount on bond investment $490,000
Income statement -$490,000
B.Dr OTT impairment loss $295,000
Cr Discount on bond investment $295,000
Dr OTT impairment loss - other comprehensive income $195,000
Cr Fair value adjustment - non credit losses $195,000
Income statement-$295,000
Explanation:
a. Prepare of the appropriate entry(s) at December 31, 2018 and indication for how the scenario will affect the 2018 income statement
31.12.21
Dr OTT impairment loss $490,000
Cr Discount on bond investment $490,000
(To record impairment loss of investment)
Effect on net income : Earnings are reduced by $490,000
INCOME STATEMENT
Other than temporary impairment loss - $490,000
b. Prepare of the appropriate entry(s) at December 31, 2018 and indication for how the scenario will affect the 2018 income statement
31.12.2021
Dr OTT impairment loss $295,000
Cr Discount on bond investment $295,000
(To record credit losses of impairment of investment)
31.12.2021
Dr OTT impairment loss - other comprehensive income $195,000
Cr Fair value adjustment - non credit losses $195,000
(To record non - credit losses of impairment loss of investment)
Effort net income : Earnings are reduced by
INCOME STATEMENT
Other than temporary impairment loss -$490,000
Less : Portion recognized in other comprehensive income $195,000
Other than temporary recognized in earnings -$295,000
Perfect elasticity and zero elasticity refer to the same event, which occurs when quantity demanded or quantity supplied change by an infinite amount in response to any change in price.
a) true
b) false
Answer:
b
Explanation:
perfectly elasticity is when at an existing price quantity demanded can increase or decrease.the numerical co efficient is always infinity ♾️
A client of an investment firm has $10000 available for investment. He has instructed that his money be invested in three stocks, so that no more than $5000 is invested in any one stock but at least $1000 be invested in each stock. He has further instructed the firm to use its current data and invest in the manner that maximizes his overall gain during a one-year period. The stocks, the current price per share and the firm’s predicted stock price a year from now are summarized below:
Stock Current Price Projected Price 1 year
James $25 $35
QM $50 $60
Del Candy $100 $125
Required:
Formulate the problem as a linear programming model including decision variables, objective function and the constraints. Use the first letter of each variable to represent the decision variable.
Answer:
Decision variables:
J = Number of James stocks
Q= Number of QM stocks
D = Number od Del Candy stocks
Objective Function:
G=10J+10Q+25D
Constrains:
[tex]25J+50Q+100D \leq 10,000[/tex]
[tex]J \leq 200[/tex]
[tex]Q \leq 100[/tex]
[tex]D \leq 50[/tex]
[tex]J \geq 40[/tex]
[tex]Q \geq 20[/tex]
[tex]D \geq 10[/tex]
Explanation:
In order to define the decision variables we take the first letter of each Stock, as the problem indicates. We have three Stocks: James, QM and Del Candy, so:
J = Number of James stocks
Q= Number of QM stocks
D = Number od Del Candy stocks
Now, to get the objective function, we need to know how much each stock is going to earn. For the James stocks, we know that the original value is $25 and the future value is $35, therefore, each stock will gain: $35-$25=$10.
That's where the 10J came from.
For the QM stocks, we know that the original value is $50 and the future value is $60, therefore, each stock will gain: $60-$50=$10.
That's where the 10Q came from.
And finally. For the Del Candy stocks, we know that the original value is $100 and the future value is $125, therefore, each stock will gain: $125-$100=$25.
That's where the 25D came from.
So we put them all together to get our objective function, which will represent the overall gain during the one year period:
G=10J+10Q+25D
For the constrains, we know that the client wishes to invest $10,000 and that James stock's price is $25, QM's price is $50 and Del Candy's price is $100 so the first constrain will be:
[tex]25J+50Q+100D \leq 10,000[/tex]
It would be less than or equal because they have a top of $10,000 to invest. They could invest less though if that maximizes the profit.
Next, the client said that no more than $5,000 should be invested in any one stock, so we take the price of each stock and the number of shares to be bought for each stock and build our inequalities:
[tex]25J \leq 5,000[/tex]
[tex]50Q \leq 5,000[/tex]
[tex]100D \leq 5,000[/tex]
and solve for each variable so we get:
[tex]J \leq 200[/tex]
[tex]Q \leq 100[/tex]
[tex]D \leq 50[/tex]
the client also said that at least $1,000 should be invested in each stock, so we get the following inequalities:
[tex]25J \geq 1,000[/tex]
[tex]50Q \geq 1,000[/tex]
[tex]100D \geq 1,000[/tex]
and then we solve each inequality for the given variable>
[tex]J \geq 40[/tex]
[tex]Q \geq 20[/tex]
[tex]D \geq 10[/tex]
Debbie promises to sell Brian a one of a kind baseball card for $1,000. Brian says that he does not have the money right now, but will have at it his next paycheck. Debbie gives Brian a signed written notice that the offer will stay open for two months. Does it the analysis change if Debbie is a merchant seller for this to be a firm offer under the UCC?
a. Yes, such offers are not reasonable.
b. Yes, such offers are voidable.
c. Yes, such offers are void.
d. Yes, the offeror must be a merchant, pursuant to the UCC definition of merchant.
e. Yes, such offers are only valid until the sun sets.
Answer:
d. Yes, the offeror must be a merchant, pursuant to the UCC definition of merchant.
Explanation:
The Uniform Commercial Code (UCC) establishes that firm offers can only be made by merchants. They also apply only to the sale of goods, but the baseball card is a type of good.
The problem is that Debbie is not probably a merchant. In order for her to be considered a merchant, she would need to be in the business of buying and selling baseball cards on a regular basis.
Splish Brothers Inc. reported net income of $394000 for the year. During the year, accounts receivable increased by $29000, accounts payable decreased by $12000 and depreciation expense of $61000 was recorded. Net cash provided by operating activities for the year is
Answer:
$414000
Explanation:
Calculation to determine what Net cash provided by operating activities for the year is
Net income $394000
Less Receivable increased ($29000)
Less Accounts payable decreased ($12000)
Add depreciation expense $61000
Net Net cash provided by operating activities $414000
Therefore Net cash provided by operating activities for the year is $414000
Dan purchases a 1000 par value 10-year bond with 9% semiannual couponsfor 925. He is able to reinvest his coupon payments at a nominal rate of 7%convertible semiannually.Calculate his nom
Answer:
9.2%
Explanation:
Missing word "Calculate his nominal annual yield rate convertible semiannually over the ten-year period"
Semi annual coupon payments = 9% / 2 = 4.5%
Par value = 4.5% * 1,000 = $45
interest rate per period = r = 7% / 2 = 3.5%
Number of periods, n = 2 x 10 = 20
FV of all the coupons reinvested = 45 / r * [(1 + r)^n - 1]
FV of all the coupons reinvested = 45 / 3.5% * [(1 + 3.5%)^20 - 1]
FV of all the coupons reinvested = $1,272.59
Receipt of par value at the end of the 10 years = par value = 1,000
Total accumulated value at the end of 10 years = $1,272.59 + 1,000
Total accumulated value at the end of 10 years = $2,272.59
Invested amount = $925
i = nominal interest convertible semi annually.
$925 * (1 + i / 2)^n = 2,272.59
925 * (1 + i / 2)^20 = 2,272.59
i = 2 * [(2,272.59 / 925)^1/20 - 1]
I = 9.19%
I = 9.2%
So, his nominal annual yield rate convertible semiannually over the ten-year period is 9.2%
Accounts receivable $ 18,000 Long-term notes payable $ 21,000 Accounts payable 11,000 Office supplies 2,800 Buildings 45,000 Prepaid insurance 3,560 Cash 7,000 Unearned services revenue 3,000 Compute Chavez Company's current ratio using the above information.
Answer: 2.24
Explanation:
Current ratio = Current Assets / Current liabilities
Current assets = Accounts receivable + Office supplies + Prepaid insurance + Cash
= 18,000 + 2,800 + 3,560 + 7,000
= $31,360
Current liabilities:
= Accounts payable + Unearned service revenue
= 11,000 + 3,000
= $14,000
Current ratio = 31,360 / 14,000
= 2.24
Following the law is:______. a. unimportant as a standard of business behavior b. the maximum standard of behavior we expect from business c. an unrealistic expectation for business behavior d. the minimum standard of behavior we expect from business
Answer:
b. the maximum standard of behavior we expect from business
Explanation:
In the laws of business, it is expected according to the law that as much possible, we accept the maximum standard of behavior from any businesses. While doing a business, we all have to follow the business ethics and always follows the laws of the businesses. The behavior of business should be of maximum standard and should comply with the rules and ethics with the related businesses.
Thus the correct option is (b).
The ________ is the difference between merchandise imports and exports and a measure of a country's international trade in goods.
Answer:
balance of trade
Explanation:
Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time.
Basically, trade can be categorized into two (2) main groups and these are;
I. Import: this involves bringing in goods from a foreign country to sell in a different (domestic) country.
II. Export: it involves the sales of goods produced in a domestic country to a foreign country.
In Economics, a balance of trade is a measure of the difference between merchandise imports and exports, as well as a country's international trade in goods. Thus, it's a measure of the difference between the monetary value of the import and export of goods of a country over a specific period of time.
The cost components of a heater include $38 for the compressor, $14 for the sheet molded compound frame, and $70 per unit for assembly. The factory machines and tools cost is $53,000. The company expects to produce 1,400 heaters in the coming year. What cost function best represents these costs
Answer: y = 122x + 53,000
Explanation:
The cost function takes the form, y = mx + c
Y = total cost
m would be the variable cost because it is the increase in x
x = total number of units to be produced
c = fixed cost because this is the y intercept and represents an amount that will not change regardless of the change in x
Variable cost = compressor + compound frame + assembly
= 38 + 14 + 70
= $122
Fixed cost = $53,000
Cost function is:
y = 122x + 53,000
The privately-owned school system in Smalltown has a virtually unlimited capacity. It accepts all applicants and operates on both tuition and private donations. Although every resident places value on having an educated community, the school's revenues have suffered lately due to a large decline in private donations from the elderly population. Since the benefit that each citizen receives from having an educated community is a public good, which of the following would not be correct?
a. The free-rider problem causes the private market to undersupply education to the community
b. The govemment can potentially help the market reach a socially optimal level of education.
c. A tax increase to pay for education could potentially make the community better off.
d. The private market is the best way to supply education.
Answer:
A
Explanation:
The privately-owned school system in Smalltown generates positive externality to members of SmalltownA good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.
The free rider problem is a form of market failure. It occurs when people benefit from a good or service of communal nature and do not pay to enjoy these services.
The free rider has caused a decline in revenues and did not cause the private market to undersupply education to the community
A company reported the following asset and liability balances at the end of 2015 and 2016:
2015 2016
Assets $150,000 $180,000
Liabilities $70,000 $80,000
If the company paid dividends totaling $5,000, what is the amount of net income for 2016?
A. $20,000.B. $105,000.C. $80,000.D. $25,000.
Answer:
D. $25,000
Explanation:
The equity is the difference between assets and liabilities
Opening equity=$150,000-$70,000
opening equity=$80,000
Ending equity=$180,000-$80,000
ending equity=$100,000
The ending equity formula below can be used to derive the net income for 2016:
ending equity=beginning equity+ net income-dividends
The net income increases the amount of ending equity while dividends decrease it.
net income=unknown
dividends=$5000
$100,000=$80,000+net income-$5000
net income=$100,000-$80,000+$5,000
net income=$25,000
The free market in actual terms, and not in the theoretical ideal, consists of commerce legally constrained by what is economically desirable and what is socially desirable, as well.
Answer: True
Explanation:
In the free market, the goods and services that are sold are those that consumers in the economy require which is why they buy the goods in the first place.
The goods and services that are sold are also socially desirable. This means that in a particular society, the goods and services sold must conform to the social norms and values that the economy holds. In essence, they shouldn't be illegal.
According to the liquidity preference model, the equilibrium interest rate is determined by the: International Monetary Fund. supply of and demand for money. supply of and demand for loanable funds. level of investment spending and saving.
Answer:
Supply of and demand for money.
Explanation:
The equilibrium interest rate is determined by the demand and supply of the money. The interest rate is represented by the verticle axis of the graph and supply and demand for money is represented by the horizontal axis. Thus, the point of intersection between supply curve and demand curve determines the equilibrium interest rate.
Fern, Inc., Ivy, Inc., and Jeremy formed a general partnership. Fern owns a 50% interest, and Ivy and Jeremy both own 25% interests. Fern, Inc. files its tax return on an October 31 year-end; Ivy, Inc., files with a May 31 year-end, and Jeremy is a calendar year taxpayer. Which of the following statements is true regarding the taxable year the partnership can choose?
A) The partnership must choose the calendar year because it has no principal partners.
B) The partnership must choose an October year-end because Fern, Inc., is a principal partner.
C) The partnership can request permission from the IRS to use a January 31 fiscal year under § 444.
D) The partnership must use the "least aggregate deferral" method to determine its "required" taxable year.
E) None of the above items are true.
Answer: D) The partnership must use the "least aggregate deferral" method to determine its "required" taxable year.
Explanation:
The Least Aggregate Deferral rule is used when neither of the partners can enforce their taxable year on the others because there is no dominant partner as is the case here because no shareholder has more than 50% ownership and the tax years of the partners are not aligned.
The partnership will have to use the "Least Aggregate Deferral" method when the above happens which is based on the percentage of profits for each partner.
The Fed threw a lot of money at the financial crisis in 2008 to unfreeze credit markets and encourage economic activity. As part of its effort to keep the interest rate low, the Fed purchased government bonds worth $300 billion between March and September 2009. By October, the Fed held $770 billion in government securities, nearly double its pre-crisis total. Before the crisis, the Fed held mainly government securities, which it used to control the quantity of money in the economy. Now government securities make up just 35% of the Fed's balance sheet.
Explain how the Fed uses its government securities to control the nominal interest rate
When the Fed purchases government securities, bank reserves ______ and bank deposits ______.
A. increase; increase
B. decrease; increase
C. decrease; decrease
D. increase; decrease
Answer:
D. increase; decrease
Explanation:
$2200; increased; 300
Indicate whether the following instruments are examples of money market or capital market securities.
a. U.S. Treasury bills
b. Long-term corporate bonds
c. Common stocks
d. Preferred stocks
e. Dealer commercial paper
Answer and Explanation:
In the Money Market Securities, it is treated as the short-term securities that means they are traded for short-term period i.e. less than one year. It has the less risk also the return is also very less but the liquidity is very rich. Examples - treasury bills, commercial papers etc
While on the other hand, the capital market securties are traded for the long term i.e. more than one year. It contains the high risk also the return is very high. Examples - stocks, bonds, debentures
So based on the above explanation, the classification is as follows
a. Money market securities
b. capital market securities
c. capital market securities
d. capital market securities
e. money market securities
A severe freeze has damaged the Florida orange crop. The impact on the market for orange juice will be a leftward shift of
Group of answer choices.
A. the supply curve, resulting in a lower equilibrium price.
B. the supply curve, resulting in a higher equilibrium price.
C. the demand curve, as consumers try to economize because of the shortage.
D. the demand curve, resulting in a price ceiling in the market.
Answer:
B. the supply curve, resulting in a higher equilibrium price.
Explanation:
In this scenario, a severe freeze has damaged the Florida orange crop. Thus, the impact on the market for orange juice will be a leftward shift of the supply curve, resulting in a higher equilibrium price.
An equilibrium price can be defined as the price at which the quantity of goods demanded is equal to the quantity of goods supplied.
Additionally, the equilibrium price is generally said to be stable because at this price, the quantity of goods or services demanded is equal to the quantity of goods or services supplied to the consumers.
