Answer:
Please see below
Explanation:
a. Current ratio
= Total current asset / Total current liabilities
2017
Current asset. 890,400
Current liabilities 424,000
Current ratio = 890,400/424,000
= 2.1
2016 Current ratio
Current asset. 999,600
Current liabilities 357,000
Current ratio = 999,600/357,000
= 2.8
b. Earnings per share
= (Net income - Preference dividend) / Weighted average number of shares outstanding
2017
Net income. 166,830
Weighted Average number of shares outstanding 201,000
Earnings per share = $166,830/201,000
= $0.83
2016 Earnings per share
Net income $337,600
Weighted Average number of shares outstanding 211,000
Earnings per share = $337,600/211,000
= $1.6
c. Debt to asset ratio
= Total liabilities / Total assets
2017
Total liabilities 573,300
Total assets 1,950,000
= 573,300/1,950,000
= 0.29
2016 Debt to asset ratio
Total liabilities 552,132
Total assets 1,878,000
Debt to asset ratio = 552,132/1,878,000
= 0.29
d. Free cash flow
2017
Cash flow from operating activities 300,000
Less: capital expenditure (271,000)
Free cash flow 29,000
2016 free Cash flow from operating activities
Free cash flow 452,600
Less: capital expenditure (246,500)
Free cash flow. 206,100
Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 4%, and the forecasted payout ratio is 45%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000.
Do not round intermediate calculations. Round your answer to the nearest dollar.
Answer: $412,600
Explanation:
AFN = Increase in assets - Increase in Liabilities - Addition to Retained Earnings
Increase in Assets
= 5,000,000 * 15%
= $750,000
Increase in Liabilities
Only use Accruals and Accounts Payable
= (450,000 + 450,000) * 15%
= $135,000
Additional to Retained Earnings
= After tax Profit
= 9,200,000 * 4%
= $368,000
Addition to retained earnings = 368,000 * ( 1 - payout ratio)
= 368,000 * ( 1 - 45%)
= $202,400
Additional Funds Needed (AFN) = 750,000 - 135,000 - 202,400
= $412,600
________ is used to make purchases while ________ is the total collection of pieces of property that serve to store value.
Answer:
Money; wealth.
Explanation:
Money can be defined as any recognized economic unit that is generally accepted as a medium of exchange for goods and services, as well as repayment of debts such as loans, taxes across the world.
Basically, money is a currency used for the purchase of goods and services such as food, clothes, perfume, shoes, automobile etc.
Hence, money is used to make purchases while wealth is the total collection of pieces of property that serve to store value. This simply means, wealth refers to the total or overall assets that is being owned by an individual or organization at a specific period of time.
Alpha Inc. has receivables from unrelated parties with a face value of $5,000. It transfers these receivables to bank for $4,500, without recourse. It will continue to collect the receivables, depositing them in a non-interest-bearing bank account with the cash flows remitted to the bank at the end of each month. It is not allowed to sell or pledge the receivables to anyone else and is under no obligation to repurchase the receivables from bank. Which of the following is the appropriate treatment for these Accounts receivables?
A) It should show these receivables in its Balance Sheet.
B) It should amortize these receivables.
C) It should derecognize these receivables.
D) It should derecognize these receivables if it retains the interest earned on these.
Answer:
C). It should derecognize these receivables.
Explanation:
Derecognition is characterized as the process of removing or derecognizing a financial asset or liability from the company's balance sheet that was previously acknowledged. In the given situation, the appropriate treatment for the Account receivables would be to dercognize it as the organization does not possess any control over them. Thus, option C is the correct answer.
I WILL GIVE BRAINLIEST
Lean and Six Sigma models contradict one another,
True
False
Which of the following best defines a financial intermediary? a claim by a buyer to a future payment by a seller a collection of stocks and bonds issued to investors a financial institution that transforms investor funds into financial assets an asset sold by a company which entitles the buyer to partial ownership
Answer:
Option C (A financial.......assets) is the correct choice.
Explanation:
A financial intermediary seems to be an entity that serves as an intermediary seen between the listing agent as well as the buyer's transactions. They help convert investment properties, swap properties between producers and consumers, respectively. Therefore, a financial intermediary would be a finance company that converts capital instruments into investment capital.Other decisions are given aren't connected to the results provided. So that is indeed the safest decision.
SY Manufacturers (SYM) is producing T-shirts in three colors: red, blue, and white. The monthly demand for each color is 3,487 units. Each shirt requires 0.75 pound of raw cotton that is imported from the Luft-Geshfet-Textile (LGT) Company in Brazil. The purchasing price per pound is $1.55 (paid only when the cotton arrives at SYM's facilities) and transportation cost by sea is $0.70 per pound. The traveling time from LGT’s facility in Brazil to the SYM facility in the United States is two weeks. The cost of placing a cotton order, by SYM, is $186 and the annual interest rate that SYM is facing is 32 percent of total cost per pound.
a. What is the optimal order quantity of cotton? (Round your answer to the nearest whole number.)
Optimal order quantity pounds
b. How frequently should the company order cotton? (Round your answer to 2 decimal places.)
Company orders once every months
c. Assuming that the first order is needed on 1-Jul, when should SYM place the order?
17-Jun
1-Jul
15-Jul
d. How many orders will SYM place during the next year? (Round your answer to 2 decimal places.)
Number of orders times
e. What is the resulting annual holding cost? (Round your answer to the nearest whole number.)
Annual holding cost $ per year
f. What is the resulting annual ordering cost?
Annual ordering cost $
g. If the annual interest cost is only 5 percent, how will it affect the annual number of orders, the optimal batch size, and the average inventory?
Answer: See explanation
Explanation:
a. The optimal order quantity can be calculated as:
= √2DS/H
where
D = 3 × 12 × 3487 × 0. 75
= 94149
Total cost incurred during purchase
= $1.55 + $0.70
= $2.25
Setup cost (S) = $186
Holding cost
= 32% × $2.25
= 0.32 × $2.25
= $0.72
Optimal order quantity
= √(2 × 94149 × 186)/0.72
= 6974.50
b. This will be calculated as:
Annual demand / EOQ
= 94149/6974.50
= 13.50
The company should order cotton 13.5 times per year.
c. Since the first order is needed on 1-July and lead time is 2 weeks, SYM should place the order before 17th June.
d. This will be:
= Annual demand / EOQ
= 94149/6974.50
= 13.5 orders
e. The resulting annual holding cost will be:
= 0.72 × (6974.50/2)
= 0.72 × 3487.25
= $2510.82
f. The resulting annual ordering will be:
= 94149/6974.50 × $186
= 13.5 × $186
= $2511
Larkspur Incorporated factored $124,300 of accounts receivable with Cullumber Factors Inc. on a without-recourse basis. Cullumber assesses a 2% finance charge of the amount of accounts receivable and retains an amount equal to 5% of accounts receivable for possible adjustments.
Required:
Prepare the journal entry for Larkspur Incorporated and Cullumber Factors to record the factoring of the accounts receivable to Cullumber.
DR Cash 115,599
Due from Factor (Cullumber) 6,215
Loss on Sale of Receivables 2,486
CR Accounts Receivable 124,300
Working
Due from Factor = 5% * 124,300
= $6,215
Loss on sale of receivables = 2% * 124,300
= $2,486
Cash = 124,300 - 6,215 - 2,486
= $115,599
Cullumber Factors Inc.DR Accounts Receivable 124,300
CR Due to Larkspur 6,215
Financing Revenue 2,486
Cash 115,599
Mcmurtry Corporation sells a product for $250 per unit. The product's current sales are 13,600 units and its break-even sales are 10,608 units. The margin of safety as a percentage of sales is closest to:
Answer:
22%
Explanation:
Margin of Safety is the amount by which sales can fall before making a loss.
Margin of Safety = Expected Sales - Break-even Sales ÷ Expected Sales
= (13,600 - 10,608) ÷ 13,600
= 0.22 or 22%
A check register shows a balance of $152.34. The bank statement shows that a check for $75.00 deposited by the account owner was drawn against insufficient funds and was returned. A charge for $2.00 was also deducted by the bank because of the return. Compute the adjusted cash balance of the check register.
Answer:
$150.34
Explanation:
The $75 check has been drawn against insufficient funds and has been returned so this check won't be included in the adjusted cash balance of the check register.
A charge for $2.0 will be deducted from the balance shown by the cash register above to calculate the adjusted cash balance of the check register.
Adjusted cash balance of the check register = $152.34 - $2
Adjusted cash balance of the check register = $150.34
What is a sum of money that is borrowed and is expected to be paid back with interest?
You are invested in two hedge funds. The probability that hedge fund Alpha generates positive returns in any given year is 60%. The probability that hedge fund Omega generates positive returns in any given year is 70%. Assume the returns are independent. What is the probability that both funds generate positive returns in a given year? What is the probability that both funds lose money?
Answer:
42% and 12%
Explanation:
The computation is shown below:
For Alpha Fund
Positive return = 60%
Lose money is
= 1 - 0.60
= 40%
For Omega Fund
Positive return = 70%
Lose money is
= 1 - 0.70
= 0.30
Also the returns are non-dependent
Now the positive return is
= 60% × 70
= 42%
And, the probability of lose money is
= 40% × 30%
= 12%
today ,I am happy I help my grandma
According to the video, what are some things that Human Resources Managers do? Check all that apply.
oversee hiring and firing
purchase computers
distribute office supplies
develop training programs
develop personnel policies
develop pricing strategies
develop recruiting programs
Answer:
1 4 5 7
Explaination:
Answer:
1 4 5 7
Explanation:
Last month Empire Company had a $35,280 profit on sales of $287,000. Fixed costs are $68,040 a month. By how much would sales be able to decrease for Empire to still break even
Answer:
sales might decrease by $287,000 - $189,000 = $98,000 and the company will still break even
Explanation:
gross profit = net income + fixed costs = $35,280 + $68,040 = $103,320
COGS = total sales - gross profit = $287,000 - $103,320 = $183,680
contribution margin ratio = $103,320 / $287,000 = 36%
break even point in $ = $68,040 / 36% = $189,000
sales might decrease by $287,000 - $189,000 = $98,000 and the company will still break even
BMW’s vehicle-assembly facility in South Carolina represents a direct investment inside the United States by the German manufacturer. This facility is an example of:
Answer:
Foreign direct investment.
Explanation:
BMW’s vehicle-assembly facility in South Carolina represents a direct investment inside the United States by the German manufacturer. This facility is an example of foreign direct investment.
A foreign direct investment (FDI) can be defined as an investment made by an individual or business entity (investor) into an investment market (industry) located in another country. The investor here, shares a different country of origin from the country where his investment is located.
In a foreign direct investment (FDI), an investor must establish his business, factory and operations in a foreign country or acquire assets in a business that is being operated in a foreign country.
Additionally, foreign direct investment (FDI) are categorized into three (3) main types and these are;
1. Vertical FDI: it involves establishing a different business that is however similar to the main business owned by the investor.
2. Horizontal FDI: it involves establishing the same type of business in a foreign country as owned in the investor's country.
3. Conglomerate FDI: it involves establishing a business that is completely different in another (foreign) country.
Presented below are condensed financial statements adapted from those of two actual companies competing as the primary players in a specialty area of the food manufacturing and distribution industry. ($ in millions, except per share amounts.)
Balance Sheets
Metropolitan Republic
Assets $ 179.3 $ 37.1
Cash
Accounts receivable (net) 422.7 325.0
Short-term investments — 4.7
Inventories 466.4 635.2
Prepaid expenses and other current assets134.6 476.7
Current assets $ 1,203.0 1,478.7
Property, plant, and equipment (net) 2,608.2 2,064.6
Intangibles and other assets 210.3 464.7
Total assets $ 4,021.5 $4,008.0
Liabilities and Shareholders’ Equity
Accounts payable $ 467.9 691.2
Short-term notes 227.1 557.4
Accruals and other current liabilities 585.2 538.5
Current liabilities $ 1,280.2 1,787.1
Long-term debt 535.6 542.3
Deferred tax liability 384.6 610.7
Other long-term liabilities 104.0 95.1
Total liabilities $ 2,304.4 3,035.2
Common stock (par and additional paid-in capital)
144.9 335.0
Retained earnings 2,476.9 1,601.9
Less: treasury stock (904.7) (964.1)
Total liabilities and shareholders’ equity $
4,021.5 4,008.0
Income Statements
Net sales 5,698.0 7,768.2
Cost of goods sold (2,909.0) (4,481.7)
Gross profit $ 2,789.0 3,286.5
Operating expenses (1,743.7 ) (2,539.2)
Interest expense (56.8) (46.6)
Income before taxes $ 988.5 700.7
Tax expense (394.7) (276.1)
Net income 593.8 424.6
Net income per share $ 2.40 6.50
Note: Because comparative statements are not provided you should use year-end balances in place of average balances as appropriate.
Required:
Calculate the rate of return on assets for the following companies
Calculate the return on assets for both companies.
Calculate the Rate of return on shareholders’ equity for the following companies
Calculate the equity multiplier for the following companies.
Calculate the acid-test ratio and current ratio for the following companies.
Calculate the receivables and inventory turnover ratios the following companies.
Calculate the times interest earned ratio for the following companies.
Answer and Explanation:
We refer to balance sheet figures for each company stated above to retrieve figures for our calculations and use the following formulas for calculations:
For return on assets= net imcome/total assets
For rate of return on shareholders equity =net income/equity
For equity multiplier= total assets/ total equity
For acid-test ratio=liquid assets/current liabilities
For current ratio =current assets/current liabilities
For receivables = credit sales /acct receivables and inventory turnover ratios=cost of goods/inventory
For times interest earned ratio=ebit/interest expenses
The revenues budget identifies: a. expected cash flows for each product b. actual sales from last year for each product c. the expected level of sales for the company d. the variance of sales from actual for each product
Answer:
c. the expected level of sales for the company
Explanation:
Revenue/Sales Budget is the first budget to be prepared by most companies because most businesses are sales led.
This Budget shows, the expected level of sales for the company.
A Corporation has two divisions: the South Division and the West Division. The corporation's net operating income is $26,900. The South Division's divisional segment margin is $42,800 and the West Division's divisional segment margin is $29,900. What is the amount of the common fixed expense not traceable to the individual divisions
Answer:
$45,800
Explanation:
Common fixed expense not traceable to the individual divisions = South division's divisional segment margin + west division's divisional segment - corporation's net operating income
Common fixed expense not traceable to the individual divisions = $42,800 + $29,900 - $26,900
Common fixed expense not traceable to the individual divisions = $45,800
Alice and Bob entered into a forward contract some time ago. Alice has the long position, while Bob has the short position. The forward contract will mature in three months and has a delivery price of $40. The current forward price for the contract is $42. The three-month risk-free interest rate (with continuous compounding) is 8%. What is the value Bob's position?
Answer:
$ - 1.96
Explanation:
After three months, Alice (long the contract) can buy the underlying by paying the delivery price of $40 which is $2 less than $42 the long position would have to pay if the contract was entered today.
DATA
Delivery price = $40
The three-month risk-free interest rate (with continuous compounding) =8%.
The current forward price = $42
Solution
So based on the present situation, Alice would be in $2 profit at the end of 3 months and Bob would be in $2 loss
Present value of Bob's loss (with continuous compounding) = 2\times e^{-0.08\times 0.25}
Present value of Bob's loss (with continuous compounding) = $1.96
The value of Bob's position is $ - 1.96
It is important that marketers be able to identify which strategy a competitor is using so that they better understand how to position their own products and services. You will see a list of recent or potential strategic decisions made by large firms, and your job is to identify which type of strategy was used in each example.
While there are a variety of strategies across industries, most fall under four basic categories.
1. Market penetration strategies emphasize selling more existing products and services to existing customers.
2. Product development strategies involve creating new goods or services for existing markets.
3. Market development strategies focus on selling existing products or services to new customers. The targeted new customers could be a different gender, age group, or international market.
4. Finally, diversification strategies involve offering new products that are unrelated to the existing products produced by the organization.
Select the most appropriate category of emotional intelligence for below mention behaviors.
i. Arm and Hammer selling baking soda for new purposes.
a. Market penetration
b. Product development
c. Market development
d. Diversification
ii. Apple opening mini-stores within Target
a. Market penetration
b. Product development
c. Market development
d. Diversification
iii. Disney purchasing ESPN
a. Market penetration
b. Product development
c. Market development
d. Diversification
Answer:
1. Market development
2. Market penetration
3. Diversification
Explanation:
we have already been given a definition of these concepts from question
1.
for Ann and hammer: it is market development because they are trying to create a product for new purposes
2.
for apple: since they are opening mini stores within target they are trying to have an expansion approach where more products and services would be sold to their customers.
3.
for disney: they are diversifying into a new product entirely. ESPN is a well known channel for sporting related activities.
If a Treasury note has a bid price of $975, the quoted bid price in the Wall Street Journal would be
Answer:
the quoted bid price would be 97:16
Explanation:
the quoted ask price will be 97:50
The quoted bid price is the price at which buyers are willing to purchase a security, while the quoted ask is the price at which sellers are willing to sell their securities. There is always a difference between both of them, and it is called the spread.
When all of a firm's inputs are doubled, input prices do not change, and this results in the firm's level of production more than doubling, a firm is operating:
Answer: (B) on the downward-sloping portion of its long-run average total cost curve.
Explanation:
The downward-sloping portion of a company's Long Run Average Total Cost(LRATC) curve is the part where increasing returns to scale is witnessed.
This is because the costs that are incurred by the company leads to higher proportional output thereby reducing the average cost and pulling the LRATC down.
In this scenario, the inputs doubled and the firm's level of production more than doubled which means that with outputs increasing more than costs, the Average cost is reducing and the slope is downward sloping.
Assessment
A customer hands you $3,850 in cash and would like to purchase 14 prepaid cards of
$275 each. The customer hands you the cash with an expired ID, and is expecting you to
process the transaction.
You must decline the transaction for the following reasons: (Select all that apply)
A customer may not purchase more than $2,000 in prepaid cards within a 24-hour period.
We do not sell prepaid cards.
The POS will prompt for customer ID for all prepaid card purchases.
Customer ID must be a valid (not expired) government issued photo ID (US or Canadian
issued driver's license, state ID, passport; US military ID, US Territory ID)
The customer appears to be purchasing prepaid cards just below the threshold where an ID
would be needed.
The customer is attempting to purchase more than the allowable number of gift cards in a
single transaction.
Answer:
You must decline the transaction for the following reasons:
A customer may not purchase more than $2,000 in prepaid cards within a 24-hour period.
Customer ID must be a valid (not expired) government issued photo ID (US or Canadian issued driver's license, state ID, passport; US military ID, US Territory ID)
Customers may not purchase more than $250 at the assisted check out (ACO).
Explanation:
A customer may not purchase more than $2,000 worth of prepaid products in one business day.
POS will prompt cashiers for an ID at $300:
POS will prompt cashiers to scan or manually enter a valid ID for purchases at $300.
Customers may not purchase more than 10 prepaid cards in one day.
Customers may not purchase more than $250 at the assisted check out (ACO).
Managing our prepaid card limits on a daily basis is run, similar to our money order process. The 2,000 daily limits for prepaid/gift cards is accomplished through a partnership with APPRISS.
Note :
The POS Register does not allow a single transaction over $2,000 to ensure CVS/pharmacy is in compliance with federal regulations.
Breaking up transactions to allow the purchase of more than $2,000
in prepaid products to one customer, couple or group is strictly against CVS/pharmacy policy and may result in disciplinary action up to, and including, termination of employment.
Nutritional Foods reports merchandise inventory at the lower-of-cost-or-market. Prior to releasing its financial statements for the year ended August 31, 2019, Nutritional's preliminary income statement, before the year-end adjustments, appears as follows:
NUTRITIONAL FOODS
Income Statement (Partial)
Year Ended March 31, 2017
Sales Revenue ........ $117,000
Cost of Goods Sold ..... 45,000
Gross Profit ........ $72,000
Nutritional has determined that the current replacement cost of ending merchandise inventory is $17,000. Cost is $19,000.
Required:
a. Journalize the adjusting entry for merchandise inventory, if any is required.
b. Prepare a revised partial income statement to show how Nutritional Foods should report sales, cost of goods sold, and gross profit.
Answer:
a) since the cost of ending inventory is higher than the replacement value, then ending inventory must decrease, which will result in higher COGS. The adjusting journal entry is:
March 31, 2017, inventory adjustment
Dr Cost of goods sold 2,000
Cr Merchandise inventory 2,000
b) revised income statement
NUTRITIONAL FOODS
Income Statement (Partial)
Year Ended March 31, 2017
Sales Revenue ........ $117,000
Cost of Goods Sold ..... $47,000
Gross Profit ........ $70,000
The following information is available for Mergenthaler Corporation for the year ended December 31, 2022:
Collection of principal on long-term loan to a supplier $16,000
Acquisition of equipment for cash 10,000
Proceeds from the sale of long-term investment at book value 22,000
Issuance of common stock for cash 20,000
Depreciation expense 25,000
Redemption of bonds payable at carrying (book) value 34,000
Payment of cash dividends 6,000
Net income 30,000
Purchase of land by issuing bonds payable 40,000
In addition, the following information is available from the comparative balance sheet for Mergenthaler at the end of 2022 and 2021:
2021 2022
Cash $148,000 $91,000
Accounts receivable (net) 25,000 15,000
Prepaid insurance 19,000 13,000
Total current assets $192,000 $119,000
Accounts payable $30,000 $19,000
Salaries and wages payable 6,000 7,000
Total current liabilities $36,000 $26,000
Required:
Prepare Mergenthaler's statement of cash flows for the year ended December 31, 2014, using the indirect method.
Answer:
Cash Flow from Operating Activities Amount$
Net Income 30000
Add Depreciation Expense 25000
Increase in Accounts Payable 11000
Increase in Accounts Receivables -10000
Increase in Prepaid Insurance -6000
Decrease in Salaries and Wages Payable -1000
Net Cash Flow from Operating Activities A 49000
Cash Flow from Investing Activities
Acquisition of Equipment for Cash -10000
Proceeds from Sale of Long-Term Investment 22000
Net Cash Flow from Investing Activities B 12000
Cash Flow from Financing Activities
Redemption of Bonds Payable -34000
Proceeds from Issuance of Common Stock 20000
Payment of Cash Dividends -6000
Collection of Principal on Long-Term Loan 16000
Net Cash Used in Financing Activities C -4000
Opening Cash Balance 91000
Add Increase in Cash (A+B+C) 57000
Closing Cash Balance 148000
Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator.
The GDP deflator for this year is calculated by dividing the____________________ using by_____________________________ the using___________ and multiplying by 100. However, the CPI reflects only the prices of all goods and services .
Indicate whether each scenario will affect the GDP deflator or the CPI for the United States.
a. A decrease in the price of a Chinese-made car that is popular among U.S. consumers.
b. An increase in the price of a Waterman Industries deep-water reel, which is a commercial fishing product used for deep-sea fishing, made in the U.S., but not bought by U.S. consumers.
Answer:
1. The GDP deflator for this year is calculated by dividing the Value of all goods and services produced in the economy this year using this year's prices by the Value of all goods and services produced in the economy in the base year using the base year's prices and multiplying by 100.
However, the CPI reflects only the prices of all goods and services bought by consumers.
2. a. A decrease in the price of a Chinese-made car that is popular among U.S. consumers. Affects CPI.
This affects CPI because the CPI reflects only the prices of goods and services purchased by customers.
b. An increase in the price of a Waterman Industries deep-water reel, which is a commercial fishing product used for deep-sea fishing, made in the U.S., but not bought by U.S. consumers. Affects GDP Deflator.
This is a good produced in the United States so it will affect the GDP Deflator as that deals with GDP.
At January 1, 2021, Cafe Med leased restaurant equipment from Crescent Corporation under a nine-year lease agreement. The lease agreement specifies annual payments of $29,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 thereafter through 2028. The equipment was acquired recently by Crescent at a cost of $207,000 (its fair value) and was expected to have a useful life of 13 years with no salvage value at the end of its life. (Because the lease term is only 9 years, the asset does have an expected residual value at the end of the lease term of $94,113.) Crescent seeks a 12% return on its lease investments. By this arrangement, the lease is deemed to be an operating lease.
Required:
a. What will be the effect of the lease on Cafe Med's earnings for the first year (ignore taxes)?
b. What will be the balances in the balance sheet accounts related to the lease at the end of the first year for Café Med (ignore taxes)?
Answer:
Café Med
a. Café Med's earnings for the first year will be reduced by $58,000 (Operating lease expense for January 1 and December 31, 2021).
b. In Café Med's Balance Sheet, at the end of the first year, there will be a liability balance or Lease Expense Payable of $29,000 for the balance due to be paid on December 31, 2021.
Explanation:
Lease annual payments = $29,000
First payment date = January 1, 2021
Subsequent payment dates = December 31, 2021 to 2028.
Period of lease agreement = 9 years < 75% (9/13)
Cost of equipment to Crescent = $207,000
Lifespan of equipment = 13 years
Residual value at end of the lease term = $94,113
b) Café Med will recognize this lease arrangement as an operating lease. This is based on periodic rental payment on a straight-line basis, which is recorded as an operating lease expense. The liability arising will be for unpaid rentals at the end of the accounting period.
Robert needs his daily fix of coffee in the mid-afternoon and visits different coffee shops that will give him as much utility as possible, given his $20/month food budget. On Monday, the Blue Coffee Shop was selling espresso shots for $3 each and Robert added 3 shots to his cappuccino. By Friday, the Purple Coffee Shop offered espresso shots for $2 each, while all other prices remained the same, so Robert was bold and added 4 espresso shots to his hot beverage.
Required:
Given this information, plot Robert's demand curve for espresso shots.
Answer:
I drew Robert's demand curve for espresso shots assuming that it was a linear curve since the information contained in the question is limited to that.
A demand curve generally is downward sloping, since an increase in price will usually result in a higher quantity demanded (at least for normal goods).
A company has total equity of $2,160, net working capital of $240, long-term debt of $1,070, and current liabilities of $4,500. What is the company's net fixed assets?
Answer:
$2,990
Explanation:
A company's fixed asset consist of its plants and machineries, motor vehicles , buildings etc.
To get the company's net fixed asset, we would subtract the networking capital from total equity and add up long term debt.
Therefore,
Net fixed asset = $2,160 total equity - $240 working capital + $1,070 long term debt
= $2,990
Hence net fixed asset is $2,990
Who was the first missionary to arrive in Africa?
Answer:
David Livingstone in 1840.
Hope this helps ; ) Enjoy your day!