Answer:
B) 1.64
Explanation:
Given that there is 95% service probability i.e. assured
So here the company applied the approach in normally that sets the probability for not stocking out the 95 percent
So it would have the approx 1.64 standard deviation with respect to the safety stock
Therefore the option c is correct
Xavier is hired to perform at a festival. He was hired for his unique signing ability. When the performance date arrived, Xavier delegated his singing responsibility to Jorge. The festival sued Xavier. Who will win
Answer:
The festival, since this involved an invalid assignment of rights
Explanation:
In the given situation, the festival would be the winner of the case as it hired the xavier for the ability related to the unique signing. Also, xavier is delegated to the singing responsibility for jorge i.e. not valid right assignment
Therefore the above should be the answer and the same is relevant
All the other options are wrong
On January 1, 2021, Nath-Langstrom Services, Inc., a computer software training firm, leased several computers under a two-year operating lease agreement from ComputerWorld Leasing, which routinely finances equipment for other firms at an annual interest rate of 6%. The contract calls for four rent payments of $14,000 each, payable semiannually on June 30 and December 31 each year. The computers were acquired by ComputerWorld at a cost of $98,000 and were expected to have a useful life of seven years with no residual value. Both firms record amortization and depreciation semiannually. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare appropriate journal entries recorded by Nath-Langstrom Services for the first year of the lease. 2. Prepare appropriate journal entries recorded by ComputerWorld Leasing for the first year of the lease.
Answer:
Nath-Langstrom Services, Inc.
And
ComputerWorld Leasing
1. Journal entries by Nath-Langstrom Services for the first year of the lease:
Jan. 1, 2021:
Debit Right of Use Asset $52,039.38
Credit Lease Liability $52,039.38
To record the Right of Use Asset.
June 30, 2021:
Debit Interest Expense $1,561.18
Debit Lease Liability $12,438.82
Credit Cash $14,000
To record the semiannual payment of the lease liability.
Debit Lease Amortization Expense $13,010
Credit Accumulated Amortization $13,010
To record amortize the Right of Use Asset.
December 31, 2021:
Debit Interest Expense $1,188.02
Debit Lease Liability $12,811.98
Credit Cash $14,000
To record the semiannual payment of the lease liability.
Debit Lease Amortization Expense $13,010
Credit Accumulated Amortization $13,010
To amortize the Right of Use Asset.
2. Journal Entries by ComputerWorld Leasing for the first year of the lease:
Jan. 1. 2021:
Debit Lease Receivable $52,039.38
Credit Leased Assets $52,039.38
To record the lease receivable.
June 30, 2021:
Debit Cash $14,000
Credit Interest Income $1,561.18
Credit Lease Receivable $12,438.82
To record the receipt of the first lease payment.
Debit Depreciation Expense $7,000
Credit Accumulated Depreciation $7,000
To depreciate the leased asset.
December 31, 2021:
Debit Cash $14,000
Credit Interest Income $1,188.02
Credit Lease Receivable $12,811.98
To record the receipt of lease payment.
Debit Depreciation Expense $7,000
Credit Accumulated Depreciation $7,000
To depreciation the leased asset.
Explanation:
a) Data and Calculations:
Annual interest rate = 6%
Semiannual rental payment = $14,000
Period of lease = 2 years
Number of lease payments = 4
Cost of computers to ComputerWorld = $98,000
Estimated useful life of computers = 7 years
Residual value = $0
N (# of periods) 4
I/Y (Interest per year) 6
PMT (Periodic Payment) 14000
FV (Future Value) 0
Results
PV = $52,039.38
Sum of all periodic payments $56,000.00
Total Interest $3,960.62
Schedule
Period PV PMT Interest FV
1 $52,039.38 $14,000.00 $1,561.18 $39,600.56
2 $39,600.56 $14,000.00 $1,188.02 $26,788.58
Year #1 end
3 $26,788.58 $14,000.00 $803.66 $13,592.23
4 $13,592.23 $14,000.00 $407.77 $0.00
We must take into account the provisions of the lease contract and the relevant accounting guidelines for operating leases in order to create the journal entries for Nath-Langstrom Services, Inc. (the lessee) and ComputerWorld Leasing (the lessor) for the first year of the lease.
Given
Cost = $98,000
semiannually = $7,000 = $14,000/ 2
Required to pass Journal entries in the books of Nath-Langstrom Services, Inc. and ComputerWorld Leasing
1. Journal entries recorded by Nath-Langstrom Services, Inc.:
On January 1, 2021 (lease inception):
Lease Right-of-Use Asset $98,000
Lease Liability $98,000
On June 30, 2021 (first semiannual payment):
Lease Liability $7,000
Cash $7,000
On December 31, 2021 (second semiannual payment):
Lease Liability $7,000
Cash $7,000
2. Journal entries recorded by ComputerWorld Leasing (the lessor):
On January 1, 2021 (lease inception):
Lease Receivable $98,000
Equipment $98,000
On June 30, 2021 (first semiannual payment):
Cash $7,000
Lease Receivable $7,000
On December 31, 2021 (second semiannual payment):
Cash $7,000
Lease Receivable $7,000
Therefore, the following are the required journal entries in the books of Nath-Langstrom Services, Inc. and ComputerWorld Leasing.
Learn more about journal entries here:
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A trademark is a device that can take almost any form as long as it is capable of identifying and distinguishing specific products or services. Owens-corning fiberglas corporation's trademark is an example of a poduct that is protected by:__________
a. combination of letters and designs.
b. product shape.
c. picture.
d. logo.
e. color.
Answer:
E)color
Explanation:
Trademark can be regarded as one of intellectual property, it can be explained as recognizable insignia, symbol as well as phrase and word, which denotes a particular product and it's one that legally differentiates that particular Product from all other products of its kind. A trademark can also be regarded as one that exclusively identifies a product and allow the consumer to know specific company it belongs to and also allows them to know company that have the ownership of the brand.
It should be noted that trademark is a device that can take almost any form as long as it is capable of identifying and distinguishing specific products or services.
For instance Owens-corning fiberglas corporation's trademark is an example of a poduct that is protected by logo.
ACS Industries is considering a project with an initial cost of $6.2 million. The project will produce cash inflows of $1.8 million a year for five years. The firm uses the subjective approach to assign discount rates to projects. For this project, the subjective adjustment is 2%. The firm has a pre-tax cost of debt of 6.7% and a cost of equity of 9.4%. The debt-equity ratio is 0.6 and the tax rate is 35%. What is the net present value of the project
Answer:
$0.710 million
Explanation:
The net present value of the project is the present value of future cash inflows discounted at the appropriate project discount rate minus the initial investment outlay.
The weighted average cost of capital of the firm is computed using the formula below:
WACC=(weight of equity*cost of equity)+(weight of debt*after-tax cost of debt)
debt-equity ratio=debt/equity= 0.6(which means debt is 0.6 while equity is 1 since 0.6/1=0.6)
weight of equity=equity/(equity+debt)
weight of equity=1/(1+0.6)=62.50%
weight of debt=debt/(equity+debt)
weight of debt=0.6/(1+0.6)=37.50%
cost of equity=9.4%
after-tax cost of debt=pre-tax cost of debt*(1-tax rate)
pre-tax cost of debt=6.7%
tax rate=35%
after-tax cost of debt=6.7%*(1-35%)=4.36%
WACC=(62.50%*9.4%)+(37.50%*4.36%)
WACC=7.51%
The WACC would be adjusted upward by 2% to reflect the higher level of risk of the new project
project's discount rate=7.51%+2%=9.51%
present value of a future cash flow=future cash flow/(1+discount rate)^n
n is the year in which the future cash flow is expected, it is 1 for year 1 cash flow ,2 for year 2 cash flow, and so on.
NPV=$0.710 million($710,000)
A piece of labor-saving equipment has just come onto the market that Mitsui Electronics, Ltd., could use to reduce costs in one of its plants in Japan. Relevant data relating to the equipment follow: Purchase cost of the equipment $ 448,000 Annual cost savings that will be provided by the equipment $ 80,000 Life of the equipment 10 years Required: 1a. Compute the payback period for the equipment. 1b. If the company requires a payback period of four years or less, would the equipment be purchased? 2a. Compute the simple rate of return on the equipment. Use straight-line depreciation based on the equipment’s useful life. 2b. Would the equipment be purchased if the company’s required rate of return is 13%?
Answer:
Mitsui Electronics, Ltd.
1a. Payback period = 5.6 years
1b. No. The equipment would not be purchased if the company requires a payback period of four years or less.
2a. Simple rate of return = 17.86%
2b. Yes. The equipment would be purchased if the company's required rate of return is 13%.
Explanation:
a) Data and Calculations:
Purchase cost of the equipment = $ 448,000
Annual cost savings that will be provided by the equipment = $ 80,000
Life of the equipment = 10 years
1a. Payback period = 5.6 years ($448,000/$80,000)
1b. No. The equipment would not be purchased if the company requires a payback period of four years or less.
Annual return = $80,000
Initial cost of the equipment = $448,000
2a. Simple rate of return = 17.86% ($80,000/$448,000 * 100)
2b. Yes. The equipment would be purchased if the company's required rate of return is 13%.
Danni placed $5700 in a savings account which compounds interest continuously at a rate of 2.1%. How much will she have in the account after 4 years
Answer:
$6,194.09
Explanation:
The amount that Danni will have in her savings account (FV) can be determined using a Financial Calculator as follows :
PV = - $5700
N = 4
I/Yr = 2.1 %
P/Yr = 1
PMT = $0
FV = ??
The Future Value (FV) is $6,194.09
Thus, she will have in the account after 4 years an amount of $6,194.09
Answer:
Explanation:
A=Pert
A=5700e(0.021)(4)
A=5700e0.084
A=6199.4846...
Rounded to the nearest dollar, A≈$6199.
On the basis of the following information taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet for the month ended September 30, journalize the closing entries for Perez Roofing Company.
Perez Roofing Company
Adjusted Trial Balance
September 30
Account Title Debit Credit
Cash 22,500
Accounts Receivable 3,575
Office Supplies 2,850
Repair Parts 3,785
Machinery 17,750
Accumulated Depreciation 3,250
Accounts Payable 1,150
Notes Payable 6,500
Common Stock 1,500
Retained Earnings 1,000
Dividends 1,750
Service Revenue 47,200
Wages Expense 4,840
Office Supplies Expense 1,275
Repair Parts Expense 925
Depreciation Expense 1,350
60,600 60,600
Answer:
Perez Roofing Company
Closing Journal Entries:
September 30:
Debit Service Revenue $47,200
Credit Income Summary $47,200
To close service revenue to income summary.
Debit Income Summary $8,390
Credit:
Wages Expense $4,840
Office Supplies Expense $1,275
Repair Parts Expense $925
Depreciation Expense $1,350
To close expenses to income summary.
Debit Income summary $38,810
Credit Retained Earnings $38,810
To close income summary to Retained Earnings.
Debit Retained Earnings $1,750
Credit Dividends $1,750
To close dividends to Retained Earnings.
Explanation:
a) Data and Calculations:
Perez Roofing Company
Adjusted Trial Balance
September 30
Account Title Debit Credit
Cash 22,500
Accounts Receivable 3,575
Office Supplies 2,850
Repair Parts 3,785
Machinery 17,750
Accumulated Depreciation 3,250
Accounts Payable 1,150
Notes Payable 6,500
Common Stock 1,500
Retained Earnings 1,000
Dividends 1,750
Service Revenue 47,200
Wages Expense 4,840
Office Supplies Expense 1,275
Repair Parts Expense 925
Depreciation Expense 1,350
60,600 60,600
Closing Entries:
Service Revenue $47,200
Wages Expense $4,840
Office Supplies Expense $1,275
Repair Parts Expense $925
Depreciation Expense $1,350
Dividends $1,750
The company's bank reconciliation at June 30 included interest earned in the amount of $150. Complete the necessary journal entry by selecting the account names and dollar amounts from the drop-down menus.
Answer:
Dr Cash $150
Cr Interest Revenue $150
Explanation:
Based on the information given ifnThe bank statement included a CREDIT MEMORANDUM in the amount of $150 for interest which means that the journal entry will be :
Dr Cash $150
Cr Interest Revenue $150
Colette Value Inc., a game development firm, has received a new project that involves the development of a mobile game. The project must be completed within a year. The company, however, is facing a shortage of mobile game developers and must hire 50 developers to ensure the timely completion of the project. As a result, the firm decides to take part in a job-related event that would give the firm access to a large pool of applicants at the same time. Which of the following recruitment options has Colette Value decided to use to find a large number of suitable candidates in a short time?
a. Alumni networks.
b. Job fairs.
c. Job posting systems.
d. Employee referrals.
Answer:
b. Job fairs.
Explanation:
Job fairs is the quickest method to bring the right talent as at the job fairs the people who wants to look for the job presently and on urgent basis so it will be considered. Also it considered the young and the latest talent plus the right candidates that hired in some days. Due to this, it saves the cost also received the best talent
So as per the given situation, the option b is correct
For each of the following annuities, calculate the present value. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Present Value Annuity Payment Years Interest Rate
$ 2,100 7 5 %
1,310 9 4 %
11,830 19 6 %
30,650 27 8%
Answer:
Results are below.
Explanation:
Giving the following information:
Annuity Payment Years Interest Rate
$ 2,100 7 5 %
1,310 9 4 %
11,830 19 6 %
30,650 27 8%
To calculate the present value, we need to use the following formula:
PV= A*{(1/i) - 1/[i*(1 + i)^n]}
A= annual payment
a)
PV= 2,100*{(1/0.05) - 1 / [(0.05*(1.05^7)]}
PV= $12,151.38
b)
PV= 1,310*{(1/0.04) - 1 / [(0.04*(1.04^9)]}
PV= $9,740.28
c)
PV= 11,830*{(1/0.06) - 1 / [(0.06*(1.06^19)]}
PV= $132,000.52
d)
PV= 30,650*{(1/0.08) - 1 / [(0.08*(1.08^27)]}
PV= $335,162.8
Edible Chemicals Corporation owns a $2 million whole life insurance policy on the life of its CEO, naming Edible Chemicals as beneficiary. The annual premiums are $72,000 and are payable at the beginning of each year. The cash surrender value of the policy was $22,000 at the beginning of 2018.
1. & 2. Prepare the appropriate 2018 journal entries to record insurance expense and the increase in the investment assuming the cash surrender value of the policy increased according to the contract to $28,200. The CEO died at the end of 2018.
Answer:
1. Dr Insurance expense $65,800
Dr Cash surrender value of life insurance $6,200
Cr Cash $72,000
2. Dr Cash $2000,000
Cr Cash surrender value of life insurance $28,200
Cr Gain on life insurance settlement $1,971,800
Explanation:
1. & 2. Preparation of the appropriate 2018 journal entries to record insurance expense and the increase in the investment
1. Dr Insurance expense $65,800
($72,000+$22,000-$28,200)
Dr Cash surrender value of life insurance $6,200
($72,000-$65,800)
Cr Cash $72,000
2. Dr Cash $2000,000
Cr Cash surrender value of life insurance $28,200
Cr Gain on life insurance settlement $1,971,800
($2000,000-$28,200)
Managers lead in a wide variety of situations and organizations and have various kinds of subordinates performing diverse tasks in a multiplicity of environmental contexts. Given the wide variety of situations in which leadership occurs, what makes a manager an effective leader in one situation (such as certain traits or behaviors) is not necessarily what that manager needs to be equally effective in a different situation. Contingency models of leadership take into account the situation or context within which leadership occurs. According to contingency models, whether or not a manager is an effective leader is the result of the interplay between what the manager is like, what he or she does, and the situation in which leadership takes place.
Answer:
need points
Explanation:
Lopez Company has Retained Earnings of $48,000 at the end of March, 2020. During the month of April, Lopez has revenues of $72,000 and total operating expenses of $52,000. Lopez also pays its shareholders dividends of $10,000 on April 30. What is Lopez Ending RE = Beg. RE+NI - Div = Beg. RE + (Rev - Exp) - Div = 10,000 + (70,00 0-85,000) - 5,000 = (10,000) Company's ending balance of Retained Earnings on April 30?
Answer: $58,000
Explanation:
Ending retained earnings = Beginning retained earnings + Net income - Dividends
Net income = Revenues - Operating expenses
= 72,000 - 52,000
= $20,000
Ending retained earnings = 48,000 + 20,000 - 10,000
= $58,000
The sources of economic growth are _______. A. work hours growth and labor productivity growth B. democracy and labor productivity growth C. job experience and low inflation D. work hours growth and a stable government
Answer:
A. work hours growth and labor productivity growth
Explanation:
An economy is a function of how money, means of production and resources (raw materials) are carefully used to facilitate the demands and supply of goods and services to meet the unending needs or requirements of the consumers.
Hence, a region's or country's economy is largely dependent on how resources are being allocated and utilized, how many goods and services are to be produced, what should be produced, for whom they are to be produced for and how much money are to be spent by the consumers to acquire these goods and services.
Basically, there are four (4) main types of economy and these are;
I. Mixed economy.
II. Free market economy.
III. Traditional economy.
IV. Command economy.
Generally, the sources of economic growth of a country are work hours growth and labor productivity growth.
Labor (working) is simply the human capital or workers who are saddled with the responsibility of overseeing and managing all the aspects of production.
An educational institution has total direct labor and material costs of $1964 per student. Its fixed costs are $352,800. Total revenues for the year were $1,800,000. It had 800 students in the past year. How many students should they accept in the next year to break even assuming the variable cost margins are equal to this year, and assuming fixed costs are to increase by $19,000 due to increased rent for expansion? (round to the nearest whole number).
Answer:
1300 students
Explanation:
The computation of the no of students to be accepted for break even is given below:
Fixed cost is
= $352,800 + $19,000
= $371,800
Revenue per student is
= $1,800,000 ÷ 800
= 2250
And,
Variable cost per student = 1964
So,
Contribution margin = Revenue - Variable cost
= $2,250 - $1,964
= $286
Break even point is
= Fixed cost ÷ Contribution margin per unit
= 371800÷ 286
= 1300 students
Suppose the standard deviation for the Martin Products Distribution is 4.0. If an investor is hoping for a return of at least 13%, the chances that investing in Martin Products will return at least 13%
a. are much less than in investing in U.S.
b. are the same as investing in U.S.
c. are greater than in investing in U.S.
d. cannot be determined
Answer: C. are greater than in investing in U.S.
Explanation:
Based on more information that was gotten online regarding the question, the distribution of Martin product is more than that of the US Water.
Therefore, in a case whereby an investor is hoping for a return of at least 13%, the chances that investing in Martin Products will return at least 13% will then be greater than in investing in U.S.
Year 1 Year 2 EBITDA $7,650 $9,150 Total value of equity $76,500 $82,500 Total firm value $99,450 $132,000 What is value of the entity multiple of Company X in Year 1?
Answer:
$5.59
Explanation:
Calculation to determine the value of the entity multiple of Company X in Year 1
Using this formula
Entity multiple=Market value / EBITDA
Let plug in the formula
Entity multiple=$99,450/$17800
Entity multiple=$5.59
Therefore the value of the entity multiple of Company X in Year 1 will be $5.59
consumers who had used a gasoline company's proprietary credit card...is the court of appeals likely to accept the interlocutory appeal
Answer:
No appeal can not be made.
Explanation:
Interlocutory appeal is the one in which a court will issue order while the case is still pending. Any appeal is not accepted on these orders. Appeal can only be made when the court issues final judgement after a trial.
Delta River Company sold manufacturing equipment with a cost of $44,000 and accumulated depreciation of $32,000 for $9,000. The journal entry to record this transaction will include:_________
a) a credit to Accumulated Depreciation â Equipment for $32,000.
b) a debit to a loss account for $3,000.
c) a credit to a gain account for $8,000.
d) a credit to the Equipment account for $12,000.
Answer:
b) a debit to a loss account for $3,000.
Explanation:
Based on the information given the journal entry to record this transaction will include: a DEBIT TO A LOSS ACCOUNT FOR $3,000.
Debits Cash $9,000
Debit Accumulated Depreciation - Equipment $32,000
Debit loss account ($3,000)
($44,000-$32,000+$9,000)
Credit Equipment $44,000
A firm is paying an annual dividend of $10.00 for its preferred stock which is selling for $66.00. There is a selling cost of $3.00. What is the after-tax cost of preferred stock if the firm's tax rate is 31%
Answer:
15.87%
Explanation:
Calculation to determine the after-tax cost of preferred stock
Using this formula
Kp=Dividend/Price − floatation costs per share
Let plug in the formula
Kp=$10.00/$66-$3.00
Kp=$10.00/$63
Kp= 0.1587*100
Kp=15.87%
Therefore the after-tax cost of preferred stock is 15.87%
what is mextura give one example
Answer:
A mixture is a substance made by combining two or more different materials in such a way that no chemical reaction occurs. A mixture can usually be separated back into its original components. Some examples of mixtures are a tossed salad, salt water and a mixed bag of M&M's candy.
Answer:
Mextura is a hybrid font, which combines elements of sansserif and black letter types.
Song, Inc., uses the high-low method to analyze cost behavior. The company observed that at 22,000 machine hours of activity, total maintenance costs averaged $33.40 per hour. When activity jumped to 25,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $30.40.On the basis of this information, the variable cost per machine hour was:___________A. $8.40.B. $22.00.C. $25.00.D. $30.40.E. $33.40.
Answer:
Variable cost per unit= $8.4
Explanation:
First, we need to calculate the total cost for each level of machine hours:
Low activity level:
Total cost= 22,000*33.4= $734,800
High activity level:
Total cost= 25,000*30.4= $760,000
Now, we can determine the variable and fixed costs:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (760,000 - 734,800) / (25,000 - 22,000)
Variable cost per unit= $8.4
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 760,000 - (8.4*25,000)
Fixed costs= $550,000
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 734,800 - (8.4*22,000)
Fixed costs= $550,000
Which of the following describes the tax advantage of a qualified retirement plan
Answer:
Qualified retirement plans give employers a tax break for the contributions they make for their employees. Those plans that allow employees to defer a portion of their salaries into the plan can also reduce employees' present income-tax liability by reducing taxable income.
Provides a way to accumulate substantial retirement income.
Those are some reasons, hope they helped!!
Explanation:
Which of the following would be relevant in the make or buy decision? Direct materials Depreciation on equipment with no resale value A) Yes Yes B) Yes No C) No Yes D) No No
Answer:
B) Yes No
Explanation:
Materials cost are incremental and relevant whereas Depreciation on equipment with no resale value are irrelevant.
Your parent offer you the opportunity to invest $ 50,000 in new coffee shop on the existing building on their property. It is located in the city centre. This building has 200m2 of space. Assumed that the project lasts 9 years, opportunity cost of capital is 10%, corporate income tax is ignored.
a. You should make some assumptions and forecast intial investment (cost of reparing old building and purchase of fix assets); operation cash flow (\, price per cup of coffee, number of cups of coffee per year; cost, depreciation, profit and cash flow from operation); and cash flow from changes in working capital.
b. What is NPV of this project? Do you invest this project? Why?
Answer:
no I don't invest this project
In 2020, Susan had interest expense of $58,500 from her investments. Susan's has investment income of $46,500. Of this amount, interest is $15,000, qualified dividends are $9,000, and a net capital gain on the sale of securities is $22,500. What is the maximum amount of Susan's investment interest expense deduction for the current year if she decides to give up the capital gain preferential treatment
Answer:
Susan
The maximum amount of Susan's investment interest expense deduction for the current year if she decides to give up the capital gain preferential treatment is:
= $46,500.
Explanation:
a) Data and Calculations:
Investment interest expense = $58,500
Investment income = $46,500
Makeup of investment income:
Interest = $15,000
Dividends = $9,000
Net capital gain on the sale of securities = $22,500
b) Susan's investment interest expense is the interest amounting to $58,500 that she paid on the money she borrowed to purchase the taxable investments. The amount that Susan can deduct is capped at her net taxable investment income for the year, which totaled $46,500 since she gives up the capital gain preferential treatment. The remaining $12,000 in interest expense can be carried forward to the next fiscal year to reduce her future taxes.
Larry estimates that the costs of insurance, license, and depreciation to operate his car total $460 per month and that the gas, oil, and maintenance costs are 33 cents per mile. Larry also estimates that, on average, he drives his car 2,000 miles per month.
Required:
a. How much cost would Larry expect to incur during April if he drove the car 1,545 miles? (Round your answer to 2 decimal places.)
b. Would it be meaningful for Larry to calculate an estimated average cost per mile for a typical 2,000-mile month?
a. Yes
b. No
Answer and Explanation:
a The computation of the cost is
= $460 + 1,545 miles × 0.33
= $460 + $509.85
= $969.85
b. It should not be considered as the meaningful as the fixed cost would remains the fixed i.e. $460 also the 0.33 per mile should be considered as the variable cost that change with the change in the no of miles covered
Therefore the same should be considered
__________aggregate customers' opinions related to products or services that they have purchased and then suggest them to others with the same interest.
Answer:
Recommendation websites
Explanation:
Recommendation websites aggregate customers' opinions related to products or services that they have purchased and then suggest them to others with the same interest.
These websites make use of customer data based on what they have purchased in the past (product or service) to present to them new/similar products.
Which of the following methods of accounting for investments is appropriate when the investor has significant influence over the investee?
a. cost method.
b. mark to market method.
c. equity method.
d. lower of cost or market method.
Answer:
The answer is "Option c".
Explanation:
The equity method is indeed the conventional technique used whenever an investor, a firm, has a massive effect on some other asset manager.
It is the method used by a company to document its money generated through investment in another company.
The investor should record its profits or losses following its ownership percentage. It regularly changes the value of the property to a balance sheet of even an investor.
g Suppose a commercial bank has checkable deposits of $80,000 and the legal reserve ratio is 20 percent. If the bank's required and excess reserves are equal, then its actual reserves
Answer:
$32,000
Explanation:
The computation is shown below;
Required reserves = checkable deposits × legal reserve ratio
= $80,000 × 20%
= $16,000
Now the actual reserves is
= $16,000 + $16,000
= $32,000
Also excess reserve is equivalent to the required reserves
Hence, the actual reserves is $32,000
