Regarding the Multicurrency function in QuickBooks Online following statements are true:1. Balance Sheet accounts that existed prior to turning on Multicurrency are assigned the home currency2.
Once youve added a transaction in a foreign currency, you cannot delete the currency used from the listWhen the Multicurrency feature is turned on QuickBooks assigns the currency to your existing accounts according to the home currency of the company. You cannot change the currency that is assigned to an account. This means that the accounts that were present before the multicurrency feature was turned on will remain in the home currency and will not change.If you add a transaction in a foreign currency the foreign currency will be added to the list. This will help you manage your foreign currencies easily and keep track of them accurately. However once a currency is used it cannot be deleted from the list. This is because you may have future transactions in that currency so deleting it from the list may cause errors in the future.
to know more about Regarding intake pls visit:
https://brainly.com/question/30838854
#SPJ11
for each of the following long-lived assets, select its nature and related cost allocation concept.
Depreciation is the cost allocation concept related to furniture. The cost of furniture should be allocated over its useful life.
Here are the nature and related cost allocation concept for the given long-lived assets: Land: Nature - Long-lived asset with an unlimited life and it is not subject to cost allocation concepts. Related cost allocation concept - There is no cost allocation concept related to land. Building: Nature - Long-lived asset with a finite life. The service potential of the asset decreases over time. Related cost allocation concept - Depreciation is the cost allocation concept related to the building. The cost of the building should be allocated over its useful life. Machinery: Nature - Long-lived asset with a finite life. It is used to perform production activities in a company. Related cost allocation concept - Depreciation is the cost allocation concept related to machinery. The cost of machinery should be allocated over its useful life. Vehicles: Nature - Long-lived asset with a finite life. It is used for transportation and conveyance purposes. Related cost allocation concept - Depreciation is the cost allocation concept related to vehicles. The cost of vehicles should be allocated over its useful life. Furniture: Nature - Long-lived asset with a finite life. It is used for sitting and storage purposes. Related cost allocation concept - Depreciation is the cost allocation concept related to furniture. The cost of furniture should be allocated over its useful life.
To know more about Depreciation visit:
https://brainly.com/question/30531944
#SPJ11
Which of the following suggestions should be applied when writing a formal report? Use first-person pronouns as a rule. Use passive voice. Place two headings consecutively without any intervening text. Use tense consistently. Ain) _____includes a reminder that an application for a certain job is on file, presents additional education or experience accumulated and its relationship to the job, and closes with a reference to desired action recommendation request OO application form thank-you message follow-up message
The two suggestions that should be applied when writing a formal report are: B) Use passive voice, and D) Use tense consistently.
When writing a formal report, the suggestion that should be applied are:Use passive voice.Use tense consistently.Both A and B (Use passive voice and Use tense consistently). A formal report is a type of document that provides a detailed overview of a subject, frequently presented to a manager or other high-ranking individuals in an organization. A formal report is a structured document that follows a predetermined format.
It is commonly written in passive voice, as this makes the report seem more objective. In addition, it is necessary to use tense consistently throughout the report.
To know more about report visit :
brainly.com/question/32321551
#SPJ11
when fraud factors are identified during an audit the auditor's documentation should include
When fraud factors are identified during an audit, the auditor's documentation should include a complete explanation of the observations, as well as any supplementary information. The auditor's report should detail the procedures that were performed in order to identify and assess fraud risk. This comprehensive documentation is crucial to support the findings and conclusions related to potential fraud risks.
ExplanationDuring the audit, if the auditors identify fraud or evidence that fraud may have occurred, they should ensure that the audit documentation includes a complete explanation of the observations, along with any supporting information. The auditor must also include their assessment of the importance and impact of the observations. The auditor must report their findings on fraud in the audit report if they conclude that it exists.
When fraud is identified during an audit, the auditor's documentation should include a thorough description of the observations and supporting data, as well as an assessment of the implications of the findings. The auditor must also detail the procedures that were performed to identify and assess fraud risk. The documentation should also include the auditor's assessment of the risk of fraud in the financial statements and the adequacy of the company's internal controls. If fraud is discovered, the auditor must determine the extent of the misstatement, its potential impact on the financial statements, and any potential implications for the company's management. The auditor's documentation should provide a detailed analysis of all of these factors in order to assist with the evaluation of the overall impact of the audit on the company.
to know more about potential fraud risk visit:
brainly.com/question/20316129#
#SPJ11
Salam is an investment on the customer's behalf by a bank. O True O False
The statement is false. Salam is not an investment made on the customer's behalf by a bank in Islamic finance.
Salam is a specific type of contract in Islamic finance that involves the sale of goods for deferred delivery and advance payment. It is primarily used in agricultural and commodity transactions. In a Salam contract, the buyer (customer) pays the seller (supplier) upfront for the purchase of goods that will be delivered at a later specified date.
Unlike an investment made by a bank on behalf of a customer, Salam does not involve the bank acting as an intermediary or investing funds on the customer's behalf. Instead, it is a direct transaction between the buyer and the seller.
Salam contracts are designed to support producers by providing them with upfront funds to finance their production or farming activities. The buyer benefits by securing the goods at a predetermined price, and the seller receives the necessary funds for production.
Overall, Salam contracts are a mechanism to facilitate trade and address the financing needs of producers and buyers in Islamic finance, but they do not involve the bank making investments on behalf of customers.
Learn more about Islamic finance here:
https://brainly.com/question/32625777
#SPJ11
Given the information below for Seger Corporation, compute the expected share price at the end of 2014 using price ratio analysis.
2008
Price $94.50
EPS 4.34
CFPS 7.27
SPS 52.60
2009
Price $100.40
EPS 5.05
CFPS 8.24
SPS 58.52
2010
Price $99.10
EPS 5.22
CFPS 8.71
SPS 57.90
2011
Price $97.90
EPS 6.06
CFPS 10.12
SPS 60.69
2012
Price $121.50
EPS 7.00
CFPS 11.80
SPS 71.60
2013
Price $136.80
EPS 8.00
CFPS 13.10
SPS 78.70
The expected share price at the end of 2014 using price ratio analysis and SPS (Sales per Share) ratio and the historical growth rate in SPS. is $943.68
First, let's calculate the historical growth rate in SPS: SPS growth rate = ((SPS end - SPS start) / SPS start) * 100 SPS growth rate from 2008 to 2013 = ((78.70 - 52.60) / 52.60) * 100 SPS growth rate from 2008 to 2013 = 49.62%
Next, we will project the SPS for 2014 based on the historical growth rate: Projected SPS for 2014 = SPS 2013 * (1 + SPS growth rate) Projected SPS for 2014 = 78.70 * (1 + 49.62%) Projected SPS for 2014 = 117.96
Finally, we can calculate the expected share price at the end of 2014 using the projected SPS: Expected share price at the end of 2014 = Projected SPS for 2014 * EPS 2013 Using the EPS for 2013 of 8.00:Expected share price at the end of 214 = 117.96 * 8.00 Expected share price at the end of 2014 = 943.68
Therefore, the expected share price at the end of 2014 using price ratio analysis is $943.68.
Know more about share price refer here:
https://brainly.com/question/31793966
#SPJ11
c3. Paid for the equipment purchased. (tran. A1) d4. On December 31, 2020, Pool Corporation had $24,000 of pool cleaning supplies on hand. Record the necessary adjusting entry. e5. Property tax due and payable worth $12,000. e6. Recognize revenue earned (transaction L) e7. Record interest accrued on bank loan (Transaction N). e8. Record the adjusting entry to record expired insurance (Transaction P).
To provide the necessary adjusting entries and record the transactions, I will use the following format:
Transaction [Transaction Code]: [Description]
Date:
Account Debit Credit
d4. On December 31, 2020, Pool Corporation had $24,000 of pool cleaning supplies on hand. Record the necessary adjusting entry.
Date: December 31, 2020
Account Debit Credit
Supplies Expense $24,000
Supplies $24,000
e5. Property tax due and payable worth $12,000.
Date: [Date property tax is due and payable]
Account Debit Credit
Property Tax Expense $12,000
Property Tax Payable $12,000
e6. Recognize revenue earned (transaction L).
Date: [Date revenue is earned]
Account Debit Credit
Accounts Receivable $[Amount of revenue earned]
Revenue $[Amount of revenue earned]
e7. Record interest accrued on bank loan (Transaction N).
Date: [Date of interest accrual]
Account Debit Credit
Interest Expense $[Amount of interest accrued]
Interest Payable $[Amount of interest accrued]
e8. Record the adjusting entry to record expired insurance (Transaction P).
Date: [Date of insurance expiration]
Account Debit Credit
Insurance Expense $[Amount of expired insurance]
Prepaid Insurance $[Amount of expired insurance]
Please note that the specific dates and amounts for transactions e5, e6, e7, and e8 are missing from the provided information. Please insert the relevant dates and amounts to complete the entries accurately.
Learn more about Prepaid Insurance here:
https://brainly.com/question/30361066
#SPJ11
Bramble Corp. Purchased Office Supplies Costing $7300 And Increase Supplies For The Full Amount. At The End Of The Accounting Period, A Physical Count Of Office Supplies Revealed $2600 Still On Hand. The Appropriate Adjustment To Be Made At The End Of The Period Would Be: Increase Supplies, $2600; Decrease Supplies Expense, $2600. Increase Supplies Expense,
Bramble Corp. purchased office supplies costing $7300 and increase Supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed $2600 still on hand. The appropriate adjustment to be made at the end of the period would be:
increase Supplies, $2600; decrease Supplies Expense, $2600.
increase Supplies Expense, $2600; decrease Supplies, $2600.
increase Supplies Expense, $4700; decrease Supplies, $4700.
increase Supplies, $4700; decrease Supplies Expense, $4700.
The answer to this question is: Increase Supplies, $2600; decrease Supplies Expense, $2600.
Bramble Corp. purchased office supplies costing $7300 and increase Supplies for the full amount.
At the end of the accounting period, a physical count of office supplies revealed $2600 still on hand.
The appropriate adjustment to be made at the end of the period would be: Increase Supplies, $2600; decrease Supplies Expense, $2600.
The increase of supplies is to record the value of the supplies that have not been used at the end of the accounting period, and the decrease in supplies expense is to ensure that the cost of the supplies that were used during the period is recorded correctly.
The following journal entry would be made: Debit Supplies Expense by $4700Credit Supplies by $4700
Therefore, the answer to this question is: Increase Supplies, $2600; decrease Supplies Expenses, $2600.
Know more about Supplies Expense here:
https://brainly.com/question/27975133
#SPJ11
The following table shows the four-firm concentration ratios of various industries.
Industry Four-Firm Concentration Ratio
Cigarettes 98.9
Petroleum and coal products 34.1
Breakfast cereals 85.0
Aerospace products and parts 55.6
Greeting cards 80.0
Based on the data presented in the table, which of the following industries is the closest to perfect competition?
Aerospace products and parts
Breakfast cereals
Cigarettes
Greeting cards
Petroleum and coal products
Among the industries listed, breakfast cereals is the closest to perfect competition based on the provided data.
The four-firm concentration ratio measures the combined market share of the four largest firms in an industry. A higher concentration ratio indicates a greater level of market concentration and potential for market power.
Based on the given data, the industry with the lowest four-firm concentration ratio is breakfast cereals with a ratio of 85.0. This suggests that the market is relatively more competitive in the breakfast cereal industry compared to the other listed industries.
In contrast, industries such as cigarettes (98.9), petroleum and coal products (34.1), aerospace products and parts (55.6), and greeting cards (80.0) exhibit higher concentration ratios, indicating a higher level of market concentration and potentially less competitive market structures.
Perfect competition is characterized by a large number of small firms, easy entry and exit, homogeneous products, and no market power. While no industry may perfectly fit the conditions of perfect competition, based on the provided data, breakfast cereals exhibit a relatively lower level of concentration, implying a higher likelihood of competitive conditions compared to the other industries listed.
Learn more about competitive here:
https://brainly.com/question/30923466
#SPJ11
Sarratt Corporation's contribution margin ratio is 76% and its fixed monthly expenses are $32,000. Assume that the company's sales for May are expected to be $91,000. Required: Estimate the company's net operating income for May, assuming that the fixed monthly expenses do not change. Net operating income
The estimated net operating income for Sarratt Corporation in May is $37,160.
net operating income for Sarratt Corporation:
To estimate Sarratt Corporation's net operating income for May, we can use the contribution margin ratio and the expected sales.
Calculate the contribution margin:
Contribution margin = Sales * Contribution margin ratio
Contribution margin = $91,000 * 0.76
Contribution margin = $69,160
Calculate the net operating income:
Net operating income = Contribution margin - Fixed expenses
Net operating income = $69,160 - $32,000
Net operating income = $37,160
Therefore, the estimated net operating income for Sarratt Corporation in May is $37,160.
To know more about contribution margin visit:
brainly.com/question/29534784
#SPJ11
If the market-size variance is $400F and the sales-mix variance is $700F, and the market share variance is $300U, we know that which of the following is TRUE?
A) The sales-quantity variance is $100U.
B) The sales volume variance is $800F
C) The sales-quantity variance is $100U
D) The static budget variance is $800F
Based on the given information, the correct statement is C) The sales-quantity variance is $100U.
The sales-quantity variance can be calculated by subtracting the budgeted quantity from the actual quantity sold and multiplying it by the budgeted selling price. Since the market share variance is $300U, it indicates that the actual quantity sold is higher than the budgeted quantity. Therefore, the sales-quantity variance would be unfavorable (U) and equal to the market share variance of $300U.
The other options are not supported by the given information. The sales volume variance and static budget variance cannot be determined solely based on the provided variances.
To know more about variances visit-
brainly.com/question/32323336
#SPJ11
Choose the correct statement(s) about the Legislative Branch.
A. The Legislative Branch is found in Article 1 of the Constitution.
B. The are 435 Senators and 100 Representative in Congress.
C. The Legislative Branch is responsible for enforcing the laws.
D. The number of Representatives for each State is based on the population of the State.
E. All of the above.
F. None of the above.
The correct statement(s) about the Legislative Branch are: A. The Legislative Branch is found in Article 1 of the Constitution and D. The number of Representatives for each State is based on the population of the State.
What is the reason?The Legislative Branch is a branch of the government responsible for making laws and passing them. It is made up of two houses: the Senate and the House of Representatives.
The Legislative Branch is found in Article 1 of the Constitution. Among the duties of the Legislative Branch is determining the number of representatives for each state, which is based on the population of the State.
The higher the population of a state, the more representatives it will have in Congress.
Hence, options A and D are correct.
To know more on government visit:
https://brainly.com/question/4160287
#SPJ11
if property tax bills totaling $200,000 are mailed to taxpayers and 97 percent are deemed collectible, what amount should be recorded as revenue?
The total property tax bills that are mailed to taxpayers are $200,000. And, 97% of them are deemed collectible. Now, we need to calculate the amount that should be recorded as revenue. Let's proceed with the solution.
How to calculate revenue? Revenue is the income that a company earns from its normal business activities, usually from the sale of goods and services. It is calculated as the amount of money a business earns before any expenses are taken out. Formula to calculate revenue is: Revenue = Total amount of goods sold x Price per unit Let's calculate the revenue for the given scenario: Total Property Tax Bills mailed = $200,00097% of the bills are collectible
Therefore, the total amount collectible = 97/100 * $200,000= $194,000Now, this amount should be recorded as revenue. Therefore, the amount recorded as revenue is $194,000. This solution is written in 117 words. You may modify it to reach the desired length of 150 words.
know more about Taxpayers.
https://brainly.com/question/32626613
#SPJ11
how much can a station charge a customer for a "replacement" safety sticker on a new windshield?
The amount a station can charge a customer for a "replacement" safety sticker on a new windshield may vary depending on local regulations and market practices. Therefore, there is no specific fixed amount that can be stated universally.
The cost of a replacement safety sticker for a new windshield is typically determined by the station or auto repair shop providing the service. Factors such as location, competition, and the cost of materials may influence the price. Additionally, local regulations or laws may exist that establish maximum or minimum fees for such services.
In conclusion, the specific amount a station can charge for a replacement safety sticker on a new windshield is not universally fixed. It is subject to various factors, including local regulations and market practices. To determine the exact cost, it is advisable to inquire with the specific station or auto repair shop in question. They will provide the most accurate and up-to-date information regarding pricing for replacement safety stickers.
To know more about customer ,visit:
https://brainly.com/question/31192428
#SPJ11
A company reports Net Income for the current year as $1,505,000. Preferred stock dividends for the year total $55,150. At January 1, 100,000 shares of common stock were outstanding. On September 1, 9,000 shares of this common stock were re-purchased as treasury stock. a) What is the company's Earnings Per Share? b) What does Earnings Per Share measure? c) If the P/E ratio is 3.2, what will the anticipated stock price be in the next period?
the company's EPS is approximately $16.54. EPS is a financial measure that indicates the profitability of a company on a per-share basis and is often used by investors to assess the company's performance.
To calculate the company's Earnings Per Share (EPS), we divide the net income available to common shareholders by the weighted average number of common shares outstanding. In this scenario, the net income is given as $1,505,000. To determine the weighted average number of common shares outstanding, we start with 100,000 shares at the beginning of the year and subtract the 9,000 shares repurchased as treasury stock on September 1. The resulting weighted average number of common shares outstanding is 91,000.
Using these figures, we can calculate the EPS as follows:
EPS = Net Income / Weighted Average Number of Common Shares Outstanding
EPS = $1,505,000 / 91,000 ≈ $16.54
Earnings Per Share (EPS) is a financial metric that measures the profitability of a company on a per-share basis. It provides insight into how much profit is generated for each outstanding share of common stock. EPS is a widely used indicator by investors and analysts to assess a company's financial performance and to compare it with other companies in the same industry. Higher EPS values generally indicate higher profitability and potential returns for shareholders. However, it's important to consider other factors and financial ratios when evaluating a company's investment potential.
The Price-to-Earnings (P/E) ratio is a valuation metric that relates the company's stock price to its EPS. To calculate the anticipated stock price in the next period using the P/E ratio, we can multiply the EPS by the P/E ratio. In this case, the given P/E ratio is 3.2. Therefore, the anticipated stock price in the next period would be approximately $16.54 (EPS) multiplied by 3.2 (P/E ratio), resulting in approximately $52.93. It's worth noting that the P/E ratio and stock price can be influenced by various factors, including market conditions, industry trends, and investor sentiment.
Know more about Earning per share :brainly.com/question/20354889
#spj11
Suppose that the following production function is given: Q = 9KL a-) (6 points) For the above production function, find the elasticity of substitution? Find the Returns to Scale. b-) (8 points) Using the above production function: find the labor demand and capital demand as functions of output (Q). price of labor (w) and price of capital (r). Does the Law of Demand hold for each input? Are these inputs normal or inferior inputs in the production process? Are inputs complements or substitutes? Why? c-) (10 points) Find the cost function for the above production function. Verify the properties of the cost function d.) (8 points) Suppose that a firm wants to produce 144 units of output and w=1, r=1. Find long run total cost. Suppose now that wage goes up to 4. Find the new long run total cost. Does firm substitute capital for labor? What is the percentage of cost saving relative to the case where fimm is not able to substitute? e-) (4 points) Suppose that w=1, r=1 and a firm has fixed amount of capital K -16 in short run (SR). Find the short run total cost, average total cost and marginal cost. What would be the short run total cost of producing 144 units. Compare your answer with long run total cost in part d. How and why are they different?
Answer:
a) To find the elasticity of substitution (σ), we need to take the logarithmic derivative of the production function with respect to the capital-labor ratio (K/L):
Explanation:
ln(Q) = ln(9) + a * ln(K) + a * ln(L)
Taking the derivative with respect to ln(K) and ln(L):
∂ln(Q)/∂ln(K) = a
∂ln(Q)/∂ln(L) = a
Using these derivatives, we can find the elasticity of substitution:
σ = ∂ln(K/L)/∂ln(K/L) = ∂ln(K)/∂ln(L) = a/a = 1
The elasticity of substitution is equal to 1, indicating constant substitution between capital and labor.
To find the Returns to Scale (RTS), we need to sum the exponents of K and L in the production function:
RTS = a + a = 2a
b) To find the labor demand and capital demand as functions of output (Q), we need to solve the production function for L and K:
Q = 9KL
Solving for L:
L = Q / (9K)
Solving for K:
K = Q / (9L)
The Law of Demand holds for each input, as the labor and capital demand decrease as the price of each input (w and r) increases.
Inputs in the production process are normal inputs, as the demand for both labor and capital increase with higher output levels.
Inputs in the production process are complements, as an increase in one input (e.g., labor) leads to an increase in the demand for the other input (e.g., capital). They are complements because they work together to produce output.
c) The cost function (C) can be derived from the production function by multiplying the quantities of inputs (K and L) with their respective prices (r and w):
C = rK + wL
d) To find the long-run total cost, we substitute the given values into the cost function:
C = 1K + 1L = K + L
To produce 144 units of output, we substitute Q = 144 into the production function and solve for K:
144 = 9KL
144 = 9K(K/144)
1 = K^2/16
K^2 = 16
K = 4
Substituting K = 4 into the long-run total cost equation:
C = 4 + L
The new long-run total cost when the wage increases to 4 can be found by substituting the new wage (w = 4) into the cost function:
C = 4K + 4L
To determine if the firm substitutes capital for labor, we compare the change in inputs. In this case, the firm does not substitute capital for labor because both inputs increase by the same amount.
The percentage of cost saving relative to the case where the firm is not able to substitute can be calculated by comparing the costs in the two scenarios.
Cost saving percentage = (Previous cost - New cost) / Previous cost * 100
Cost saving percentage = (C - C') / C * 100
Cost saving percentage = (4 + L - (4K + 4L)) / (4 + L) * 100
e) In the short run (SR), the firm has a fixed amount of capital K = 16. Using the given wage (w = 1) and capital (K = 16), we can find the short-run total cost, average total cost, and marginal cost.
Learn more about elasticity of substitution (σ) here:
brainly.com/question/31039203
#SPJ11
As a minority group member, when Naomi interacts with members of the dominant ethnic group in her culture, she is asked insensitive questions and is spoken to very slowly. She is experiencing the degree of ethnocentrism called the distance of ____________.
a. avoidance
b. disparagement
c. indifference
d. violence
As a minority group member, when Naomi interacts with members of the dominant ethnic group in her culture, she is asked insensitive questions and is spoken to very slowly. She is experiencing the degree of ethnocentrism called the distance of disparagement Correct answer is option B
In this case, Naomi is experiencing the degree of ethnocentrism called the distance of disparagement.The distance of disparagement is a degree of ethnocentrism that involves negative attitudes toward out-group members. When a minority group member interacts with a member of the dominant ethnic group in their culture, negative assumptions and stereotypes may be made about the minority group member.
This type of ethnocentrism may lead to the dominant group member talking down to the minority group member, making insensitive comments, or even physically abusing them.This distance is driven by a lack of knowledge and understanding of the minority group, and a lack of interest in learning about it.
Members of the dominant group may believe that their culture is superior to the minority group's culture, which leads to feelings of superiority over the minority group member. This type of ethnocentrism is harmful and can lead to negative attitudes and actions toward minority groups.
In conclusion, the distance of disparagement is a degree of ethnocentrism that involves negative attitudes toward out-group members. In this case, Naomi is experiencing the degree of ethnocentrism called the distance of disparagement when interacting with members of the dominant ethnic group in her culture. Correct answer is option B
Know more about ethnocentrism here:
https://brainly.com/question/11786995
#SPJ11
All of the following business formations can register to conduct real estate transactions, EXCEPT:
(a) Corporation for profit
(b) Not-for-profit corporation
(c) Corporation sole
(d) Limited partnership
All of the business formations listed - corporation for profit, not-for-profit corporation, corporation sole, and limited partnership - have the ability to register and conduct real estate transactions. None of them are excluded from engaging in real estate activities. Therefore, the correct answer is that there is no business formation that cannot register to conduct real estate transactions.
A corporation for profit is a legal entity that can engage in various business activities, including real estate transactions. It provides liability protection to its shareholders and can hold and transfer real estate properties.
A not-for-profit corporation, although primarily focused on non-profit purposes, can also engage in real estate transactions. Non-profit organizations often acquire and manage real estate assets for their operations or to support their charitable objectives.
A corporation sole, which is typically associated with religious or charitable organizations, can also participate in real estate transactions. It is a legal entity that represents a single individual, often a religious leader or a designated officeholder, and can hold real estate in its name.
A limited partnership is a business formation that consists of both general partners and limited partners. While limited partners have limited liability and are not actively involved in the management of the partnership, they can still participate in real estate transactions through the partnership's activities.
All of the business formations listed in the question - corporation for profit, not-for-profit corporation, corporation sole, and limited partnership - have the capability to register and conduct real estate transactions. None of them are excluded from engaging in real estate activities.
learn more about business here:brainly.com/question/15826604
#SPJ11
Question 16 0 / 1 pts On March 30, 2018, Frank bought 1,000 shares of Wolf Corporation stock at $12 per share. Two years later, the stock price started to drop. On April 15, 2020, Frank sold 500 shares at $11 per share. Two weeks later, on April 29, 2020, the stock price dropped to $10 per share and Frank bought 1,500 shares at the market price. What is Frank's basis in the Wolf stock he purchased on April 29, 2020? $18,000 $15,000 $16,500 $15,500
When Frank bought 1,000 shares of Wolf Corporation stock at $12 per share on March 30, 2018, the cost of his purchase was: $12 * 1,000 = $12,000.Frank sold 500 shares at $11 per share on April 15, 2020.
The cost of the shares that he sold is: 500 * $11 = $5,500.The cost of the shares that Frank bought on April 29, 2020, is calculated as follows:1,500 shares * $10 per share = $15,000Therefore, Frank's total cost basis in Wolf Corporation is: $12,000 - $5,500 + $15,000 = $21,500Therefore, the answer is none of the above as it exceeds all the provided options, and the correct answer is $21,500.
To know more about shares visit:
https://brainly.com/question/32328563
#SPJ11
According to classical finance theory, we are risk averse investors and demand higher rewards in order to take on more risk. Estimate the risk-return relation and discuss what you see with reference to our discussions about debt versus equity as well as investor psychology.
According to classical finance theory, investors are risk-averse and demand higher rewards for taking on more risk.
Debt investments, such as bonds, are considered less risky than equity investments. Debt holders receive priority in payments and offer lower potential returns. On the other hand, equity investments, such as stocks, carry more risk but provide the potential for higher returns. Investor psychology, including biases like loss aversion, can influence risk preferences.
Investors may choose debt over equity due to perceived safety, even though equity may offer higher returns. Market conditions and sentiment also impact the risk-return relationship, as optimism can reduce risk aversion and deflate risk premiums. However, the theory doesn't capture all aspects of investor behavior and market dynamics.
To know more about Psychology related question visit:
https://brainly.com/question/28585630
#SPJ11
Exercise B-12 (Algo) Present value of bonds LO P1, P3 Spiller Corporation plans to issue 8%, 10 year $430,000 par value bonds payable that pay interest semiannually on June 30 and December 31. The bonds are dated January 1 of the current year and are issued on that date. (VoL $1. EV of Si. PVA of Si, and EVA of $1) (Use appropriate factor(s) from the tables provided. Round your "Table value to 4 decimal places and final answers to nearest whole dollar.) if the market rate of interest for the bonds is 6% on the date of Issue, what will be the total cash proceeds from the bond issue? Answer is not complete. Table Values are Based on: n 20 5% ® 1= Cash Flow Table Value Amount Present Value Present (maturity) value Interest (annuity) Total cash proceeds
Spiller Corporation plans to issue $430,000 par value bonds with a coupon rate of 8% and a maturity of 10 years. The bonds will pay interest semiannually on June 30 and December 31. With a market rate of interest of 6% on the date of issue, the total cash proceeds from the bond issue can be calculated.
To calculate the total cash proceeds from the bond issue, we need to determine the present value of the bond's cash flows. The cash flows include both the semiannual interest payments and the par value payment at maturity. Since the bonds have a par value of $430,000, the par value payment will be $430,000. The interest payments will be based on the coupon rate of 8% and the semiannual payment frequency. Therefore, the semiannual interest payment will be ($430,000 × 8%) / 2 = $17,200. To calculate the present value of these cash flows, we use the market rate of interest, which is 6%. Using the appropriate present value of an annuity factor from the provided tables, we can find the present value of the semiannual interest payments over the 10-year period. Once we have the present value of the interest payments, we add it to the present value of the par value payment to obtain the total present value of the bond's cash flows. The total cash proceeds from the bond issue will be equal to the total present value. Calculating the exact values and performing the necessary calculations requires the use of the provided tables and formulas. By applying the appropriate factors and rounding the final answer to the nearest whole dollar, the total cash proceeds from the bond issue can be determined based on the given information and calculations.
Learn more about interest here
https://brainly.com/question/30393144
#SPJ11
(A,Default/B,Reinvestment/C,Price) risk is the risk of a decline in a bond's value due to an increase in interest rates. This risk is higher on bonds that have long maturities than on bonds that will mature in the near future. (A,Default/B,Reinvestment/C,Price) risk is the risk that a decline in interest rates will lead to a decline in income from a bond portfolio. This risk is obviously high on callable bonds. It is also high on short-term bonds because the shorter the bond's maturity, the fewer the years before the relatively high old-coupon bonds will be replaced with new low-coupon issues. Which type of risk is more relevant to an investor depends on the investor's (A,Investment Horizon/B,Default Period/C,Option Period), which is the period of time an investor plans to hold a particular investment. Longer maturity bonds have high (A,Reinvestment/B,Price/C,Exchange) risk but low (A,Reinvestment/B,Price/C,Exchange) risk, while higher coupon bonds have a higher level of (A,Reinvestment/B,Price/C,Exchange) risk and a lower level of (A,Reinvestment/B,Price/C,Exchange) risk. To account for the effects related to both a bond's maturity and coupon, many analysts focus on a measure called (A,Correlation/B,Duration/C,Signaling) , which is the weighted average of the time it takes to receive each of the bond's cash flows.
Conceptual Question: Which of the following bonds would have the largest duration? A)10year-zero coupon bonds
B)10year-7% annual coupon bonds
C)10year-3% annual coupon bonds
D)5year-3% annual coupon bonds
E)3year-7% annual coupon bonds
The answer to this statement: "The bond with the largest duration would be option A) 10-year zero-coupon bonds."
The duration of a bond is a measure of its sensitivity to changes in interest rates. It takes into account the timing and amount of the bond's cash flows. In general, bonds with longer maturities and lower coupon rates tend to have higher durations.
Among the options provided, the bond with the largest duration would be the one with the longest maturity and the lowest coupon rate. Looking at the options:
A) 10-year zero-coupon bonds: These bonds have a long maturity but no coupon payments. Since there are no coupon payments to be received before maturity, the duration of zero-coupon bonds is equal to their maturity. Therefore, the duration of 10-year zero-coupon bonds would be 10 years.
B) 10-year 7% annual coupon bonds: These bonds have a longer maturity but a higher coupon rate compared to option C. The higher coupon payments received throughout the bond's life help to reduce the overall duration. Therefore, the duration of these bonds would be less than 10 years.
C) 10-year 3% annual coupon bonds: These bonds have a longer maturity compared to options D and E, and a lower coupon rate compared to option B. The combination of longer maturity and lower coupon rate suggests that these bonds would have a higher duration than option B, but lower than option A.
D) 5-year 3% annual coupon bonds: These bonds have a shorter maturity compared to options A, B, and C. The shorter maturity generally leads to a lower duration.
E) 3-year 7% annual coupon bonds: These bonds have the shortest maturity among the options. The shorter maturity typically results in a lower duration.
Therefore, among the given options, the bond with the largest duration would be option A) 10-year zero-coupon bonds.
To know more about coupon bonds visit:
https://brainly.com/question/28528712
#SPJ11
find the market equilibrium point for the following demand and supply equations. demand: p = − 2 q 439 supply: p = 5 q − 989 the market equilibrium point is
The market equilibrium point is where the equilibrium price (p) is $31 and the equilibrium quantity (q) is 204 units.
To find the market equilibrium point, we need to set the quantity demanded equal to the quantity supplied and solve for the equilibrium price (p) and quantity (q).
The demand equation is given as: p = -2q + 439
The supply equation is given as: p = 5q - 989
Setting the two equations equal to each other, we have:
-2q + 439 = 5q - 989
Simplifying the equation, we get:
7q = 1428
Dividing both sides by 7, we find:
q = 204
Substituting this value of q back into either the demand or supply equation, we can find the equilibrium price. Using the supply equation:
p = 5(204) - 989
p = 1020 - 989
p = 31
Therefore, the market equilibrium point is where the equilibrium price (p) is $31 and the equilibrium quantity (q) is 204 units.
To know more about equilibrium please visit:
https://brainly.com/question/30694482
#SPJ11
(Economic Value Added) Drew Concrete uses Economic Value Added as a financial performance measure. Drew has $240 million in assets, and the firm has financed its assets with 37 percent equity and 63 percent debt with an interest rate of 6 percent. The firm’s opportunity cost on its funds is 12 percent, while the operating return on the firm’s assets is 14 percent.
What is the Economic Value Added created or destroyed by Drew Concrete?
What does Economic Value Added measure?
Economic Value Added (EVA) is a financial performance measure used by Drew Concrete. Drew Concrete has $240 million in assets and the company has financed its assets with 37 percent equity and 63 percent debt with an interest rate of 6 percent.
The opportunity cost of Drew Concrete's funds is 12 percent, while the operating return on the firm’s assets is 14 percent. Economic Value Added measures the wealth that a company has created or destroyed over a given period. EVA is a measure of the company's ability to generate a profit from its invested capital. Economic Value Added is calculated by subtracting the firm's cost of capital from its net operating profit after taxes (NOPAT). The formula for calculating EVA is EVA = NOPAT - (WACC x Capital).Using the given values, the Economic Value Added created by Drew Concrete can be calculated as follows:EVA = NOPAT - (WACC x Capital)NOPAT = Operating return on assets x Capital = 14% x $240 million = $33.6 millionWACC = (Weight of Equity x Cost of Equity) + (Weight of Debt x Cost of Debt x (1 - Tax Rate))Weight of Equity = 37%, Weight of Debt = 63%, Cost of Equity = 12%, Cost of Debt = 6%, Tax Rate = 0.35WACC = (0.37 x 0.12) + (0.63 x 0.06 x (1 - 0.35)) = 0.0776 or 7.76%EVA = $33.6 million - (7.76% x $240 million) = $15.84 million
Therefore, the Economic Value Added created by Drew Concrete is $15.84 million.
To know more about EVA visit-
https://brainly.com/question/32665926
#SPJ11
Which of the following statement is CORRECT about the foundational assumption used in CVP analysis. O Behavior of revenue and costs can be graphed as a straight line. Selling price, variable cost per unit and total fixed costs are known and fluctuates. The time value of money is considered. Relative sales proportions of multiple products are known and fluctuates. Moving to anot
The correct statement about the foundational assumption used in CVP (Cost-Volume-Profit) analysis is: Behavior of revenue and costs can be graphed as a straight line.
CVP analysis is a tool used by companies to understand the relationship between costs, volume, and profitability. It is based on several assumptions, and one of the key assumptions is that the behavior of revenue and costs can be graphed as a straight line within a relevant range of activity.
This assumption implies that the company's sales revenue and costs can be approximated as linear functions, where changes in volume or activity level result in proportional changes in revenue and costs. It assumes a constant selling price per unit, constant variable cost per unit, and fixed costs that remain constant within the relevant range.
While other factors such as selling price, variable cost per unit, and total fixed costs may fluctuate, the assumption of a linear relationship between revenue and costs is fundamental to CVP analysis. It allows managers to make simplified projections and predictions regarding profit levels at different activity levels and helps in making important business decisions.
Therefore, the correct statement is that the behavior of revenue and costs can be graphed as a straight line.
To know more about Revenue visit-
brainly.com/question/14293132
#SPJ11
In many countries, one of the roles of the central bank is to provide loans to distressed financial institutions. In economics, the term for this is:
a. bailout bank
b. lender of last resort
c. source of ultimate credit
d. provider of fiduciary insurance
e. liquidity resource
Another potential role of central banks is to foster confidence in the banking system by making sure that people can retrieve their money even if a bank goes bankrupt. In economics, the term for this is:
a. banking promise
b. deposit insurance
c. deposit guarantee
d. financially distressed institution clause
In many countries, one of the roles of the central bank is to provide loans to distressed financial institutions. In economics, the term for this is lender of last resort. Central banks have been viewed as the ultimate source of liquidity during times of financial crisis.
By providing a lender of last resort function, the central bank can act as a lender to banks and other financial institutions that are facing liquidity problems.Another potential role of central banks is to foster confidence in the banking system by making sure that people can retrieve their money even if a bank goes bankrupt. In economics, the term for this is deposit insurance. The deposit insurance is a program that provides insurance to depositors in the event that a bank fails. This program helps to protect depositors from the loss of their deposits and promotes confidence in the banking system. Deposit insurance programs are designed to be a safety net for depositors who have entrusted their money to a bank.
To know more about central bank visit:
https://brainly.com/question/28024310
#SPJ11
Your want to estimate the share price of JLloyd Enterprises and have collected data on two comparable companies shown below.
Comparable Share price EPS
Pad Ty $57.00 $-5.7
Sys BK $31.00 $5.07
JLloyd has Net Income of $8.4 million and 2.7 million shares. What is your estimate of JLloyd's share price?
The estimated share price of JLloyd Enterprises is -$4.50. To estimate JLloyd Enterprises' share price, we can use the price-to-earnings (P/E) ratio of the comparable companies and apply it to JLloyd's earnings per share (EPS).
First, let's calculate JLloyd's EPS:
EPS = Net Income / Number of shares
EPS = $8.4 million / 2.7 million shares
EPS = $3.11
Next, let's calculate the average P/E ratio of the comparable companies:
P/E ratio = Share price / EPS
For Pad Ty:
P/E ratio = $57.00 / (-$5.7) (Note: The negative EPS might indicate a loss)
P/E ratio = -10
For Sys BK:
P/E ratio = $31.00 / $5.07
P/E ratio = 6.11
Taking the average of the P/E ratios:
Average P/E ratio = (-10 + 6.11) / 2
Average P/E ratio = -1.45
Now, let's calculate JLloyd's estimated share price:
Estimated share price = EPS * Average P/E ratio
Estimated share price = $3.11 * -1.45
Estimated share price = -$4.50
Based on the calculation, the estimated share price of JLloyd Enterprises is -$4.50. However, it's worth noting that a negative share price may not be realistic or meaningful. It's advisable to reassess the data and consider other factors before making any investment decisions.
To know more about Net Income visit:
brainly.com/question/29999079
#SPJ11
17.6. Examine the peer group average ratios given in problems 17.4 and 17.5. Explain why the ratios are different between the managed care and nursing home industries. 17.7. Recent financial statements for the Heart Hospital are provided below: The Heart Hospital Balance Sheet September 30, 2020 (in thousands) Current assets: Cash $14,202 Accounts receivable, net 5,918 Medical supplies inventory 1,211 Prepaid expenses and other current assets 1,429 Total current assets $22,760 Property, plant, and equipment, net $33,769 Other assets 901 Total assets $57,430 Current liabilities: Accounts payable $ 1,910 Accrued compensation and benefits 2,543 Other accrued liabilities 1,843 Current portion of long-term debe 2,064 Total current liabilities $ 8,360 Long-term debt 21,640 Total liabilities $30,000 Owners' equity $27,430 Total liabilities and owners' equity $57,430 Net patient service revenue $64,505
17.6. The difference in ratios between the managed care and nursing home industries can be attributed to several factors.
Firstly, the nature of the services provided by these industries differs. Managed care companies primarily focus on administering healthcare plans and managing healthcare costs, while nursing homes provide long-term care services to elderly or disabled individuals. This difference in services leads to variations in revenue sources, cost structures, and profitability.
Secondly, the regulatory environment and reimbursement systems for these industries vary. Managed care companies often negotiate contracts with healthcare providers and receive capitated or per-member-per-month payments from insurers or employers. On the other hand, nursing homes typically receive payments from government programs like Medicare and Medicaid based on patient occupancy and care provided. These differences in reimbursement models can impact financial ratios such as revenue per patient or operating margin.
Furthermore, the capital requirements and asset structures of these industries differ. Nursing homes require significant investments in property, plant, and equipment to provide care facilities, while managed care companies focus more on administrative infrastructure and technology. These variations in asset structure can affect ratios such as return on assets or asset turnover.
Overall, the differences in services, reimbursement systems, and asset structures between managed care and nursing home industries contribute to the disparities in financial ratios observed in the peer group averages.
17.7. Based on the provided balance sheet for the Heart Hospital, the total assets amount to $57,430, with current assets comprising $22,760 and property, plant, and equipment (PPE) accounting for $33,769. Other assets are listed at $901.
On the liabilities side, the current liabilities amount to $8,360, including accounts payable, accrued compensation and benefits, other accrued liabilities, and the current portion of long-term debt. The long-term debt is reported as $21,640, bringing the total liabilities to $30,000.
The owners' equity is reported as $27,430, which represents the residual interest in the hospital's assets after deducting liabilities.
Based on the information provided, the net patient service revenue for the Heart Hospital is $64,505, indicating the revenue generated from patient services.
It is important to note that the information provided in the question does not specify the time period covered by the balance sheet or provide any additional financial data.
Learn more about ratios here
https://brainly.com/question/14010408
#SPJ11
Mann Inc., a calendar year taxpayer, incurred $39,640 start-up expenditures during the preoperating phase of a new business venture. The business started operations in November. Mann expensed the $39,640 on its current-year financial statements. Which of the following statements is true?
Group of answer choices
The start-up expenditures resulted in a $34,255 unfavorable book/tax difference.
The start-up expenditures resulted in a $39,640 unfavorable book/tax difference.
The start-up expenditures resulted in a $34,640 unfavorable book/tax difference.
The start-up expenditures resulted in a $34,640 favorable book/tax difference.
The start-up expenditures resulted in a $34,640 unfavourable book/tax difference.
Start-up expenses are costs that are incurred in the process of starting a new business venture. The Internal revenue Service (IRS) has given specific guidelines for how such expenses should be treated in terms of tax treatment. According to the given problem, Mann Inc., a calendar year taxpayer, incurred $39,640 in start-up expenditures during the preoperating phase of a new business venture, and the business started operations in November. Mann expensed the $39,640 on its current-year financial statements. Based on this information, the following statement is true: The start-up expenditures resulted in a $34,640 unfavourable book/tax difference.
A start-up expense is an expense that is incurred to investigate or otherwise prepare a new business or a new product or service offering. These costs are considered capital expenditures and are generally not deductible for tax purposes. They are amortized over 180 months, starting in the month in which the business begins. However, the business may elect to deduct up to $5,000 of start-up expenses in the year in which the business commences operations.
know more about expenditures
https://brainly.com/question/29803226
#SPJ11
Fit-Freak Ltd (‘FF’) is a Perth-based company that specialises in designing and manufacturing indoor gymnasium equipment. Clause 2 (the objects clause) of FF’s constitution provides that the company’s activities are restricted to the ‘design and manufacture of indoor gymnasium equipment’. Eighty per cent of the company’s members are outdoor enthusiasts who would like the company to expand its activities to include the design and manufacture of outdoor exercise equipment (for use in public parks and other outdoor public places). The directors think that this is not a good idea. With reference to the above set of facts, and using the four-steps process, discuss whether the directors have to give effect to the members’ wishes. If the directors ignore the members’ wishes, can the members change the company’s constitution to remove clause 2 of the constitution, and if so,
how this can be done.
Fit-Freak Ltd is a Perth-based company specializing in indoor gymnasium equipment. The company's constitution restricts its activities to the design and manufacture of indoor equipment.
Eighty percent of the members want the company to expand into designing and manufacturing outdoor exercise equipment, but the directors are opposed. The question arises whether the directors are obligated to follow the members' wishes and whether the members can change the constitution to remove the restriction. According to the four-step process for determining the directors' obligations, the first step is to examine the company's constitution. In this case, Clause 2 of FF's constitution restricts its activities to indoor gymnasium equipment design and manufacture. As the members' request pertains to outdoor exercise equipment, it falls outside the scope of the current constitution.
The second step is to consider relevant legislation. The Corporations Act 2001 (Cth) governs the operation of companies in Australia. Section 198A(1) of the Act states that a company's constitution binds the company and its members. Therefore, the directors are obliged to act in accordance with the constitution. The third step involves analyzing any relevant case law. In this scenario, if the members wish to change the constitution, they can do so by passing a special resolution. A special resolution requires at least 75% of the members' votes in favor. Once passed, the change will become effective, and the directors will be obligated to follow the revised constitution.
The fourth step is to consider any exceptions or qualifications. If the members do not have the required majority to pass a special resolution, they may explore alternative avenues such as proposing amendments to the constitution in a general meeting or seeking legal advice on possible remedies. In conclusion, based on the four-step process, the directors are not obligated to give effect to the members' wishes as they fall outside the current constitution. However, the members have the power to change the constitution through a special resolution, thereby removing Clause 2 and allowing the expansion into outdoor exercise equipment.
Learn more about the Corporations Act here:- brainly.com/question/16403316
#SPJ11
The US Navy is building an aircraft carrier. Price: $12 billion. There are about 300 million people in the US. Suppose half the population has a marginal benefit of this aircraft carrier equal to S100 each. The other half has a marginal benefit of the aircraft carrier equal to -$30 each. (That is, they'd be willing to pay up to $30 to NOT build the carrier.) Should the aircraft carrier be built?
To determine whether the aircraft carrier should be built, we need to compare the total marginal benefit (MB) with the cost.
Let's calculate the total marginal benefit first. Half of the population (150 million people) has a marginal benefit of $100 each, so their total marginal benefit is (150 million * $100) = $15 billion. The other half of the population (150 million people) has a marginal benefit of -$30 each, but since marginal benefit represents the willingness to pay, we'll consider it as zero for simplicity.
The total marginal benefit is $15 billion, which is greater than the cost of $12 billion to build the aircraft carrier. Therefore, based on this analysis, the aircraft carrier should be built. The total benefit exceeds the cost, indicating a positive net benefit for society.
Know more about marginal benefit here:
https://brainly.com/question/28332599
#SPJ11
