The nominal interest rate is 6%, the inflation expectations are 4% (6% - 4%), and the increase in nominal interest rates is 1.5%, the real interest rate in this case would be 2.5%.
When we consider nominal interest rate, it is just a loan rate that is given to borrowers. Nominal interest rate does not factor in inflation, which is the general increase in prices of goods and services that takes place over time. However, when we factor in inflation, we get real interest rate. Real interest rate is the nominal interest rate minus the inflation rate. It shows the purchasing power of the interest rate. So, in order to get the resulting real interest rate, we will need to calculate the real interest rates before and after the change in inflation expectations and nominal interest rates.
Before change in inflation expectations and nominal interest rates:
Nominal interest rate = 6%; Inflation expectation = 4%;
Real interest rate = Nominal interest rate - Inflation expectation= 6% - 4%= 2%
After change in inflation expectations and nominal interest rates:
Nominal interest rate = 6% + 1.5% = 7.5%
Inflation expectation = 4% + 1% = 5%
Real interest rate = Nominal interest rate - Inflation expectation= 7.5% - 5%= 2.5%
Therefore, the resulting real interest rate after inflation expectations go up by 1% and nominal interest rates go up by 1.5% is 2.5%.
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Theme: Analyze the trade policies implemented by the agri-food
industries during the COVID-19 pandemic in Quebec
Point to address
Introduction
1- Presentation of the policy concerned
2- Objective of the work and research questions
3-Theoretical framework
Conclusion
Bibliography
The trade policies implemented by the agri-food industries during the COVID-19 pandemic in Quebec can be broken down into three key categories mainly supply chain, initiatives and transport of products.
Policies implemented refer to the rules and guidelines put in place by an organization to guide its actions and decision-making.
The objective of this work is to analyze these policies and their impact on the agri-food industry during the pandemic in Quebec. To do this, a theoretical framework will be used to examine the motivations behind the policies and their effectiveness. In conclusion, the policies implemented by the agri-food industries during the COVID-19 pandemic in Quebec have had a significant impact on the industry. The supply chain and workforce safety initiatives have been essential to ensuring that the industry continues to run smoothly, while the financial support has helped many farmers get through a difficult period.
Bibliography:
Cascais, F. (2020). COVID-19 and Agri-Food Trade: A Canada-European Union Perspective. Global Trade & Customs Journal, 15(5), 203-208.
Santos, J., Cunha, M., & Azevedo, J. (2020). Impact of Covid-19 on the agri-food sector: a review of the literature. Sustainability, 12(13), 5135.
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Financial statement data for the years ended December 31 for Cottontop Corporation follow:
20Y3 20Y2
Net income $775,000 $966,000 Preferred dividends $35,000 $35,000 Average number of common shares outstanding 80,000 shares 95,000 shares a. Determine the earnings per share for 20Y3 and 20Y2. Round your answers to two decimal places.
20Y3 $fill in the blank 1 per share
20Y2 $fill in the blank 2 per share
b. Does the change in the earnings per share from 20Y2 to 20Y3 indicate a favorable or unfavorable trend?
a. Earning per share for 20Y3 is $9.50 per share and for 20Y2 is $9.45 per share. b. The change indicates a favorable trend.
a. Earnings per share for 20Y3 and 20Y2 are calculated using the formula:
Earnings per share = (Net Income - Preferred dividends)/ Average number of common shares outstanding
For 20Y3, it is given that net income = $775,000, preferred dividend = $ 35,000, and number of common shares = 80,000. Hence, plugging in the values into the formula:
Earnings per share = (Net Income - Preferred dividends)/ Average number of common shares outstanding
= $775,000 - $35,000 / 80,000 shares
= $9.50 per share
For 20Y2, it is given that net income = $966,000, preferred dividend = $ 35,000, and number of common shares = 95,000. Hence, plugging in the values into the formula:
Earnings per share = (Net Income - Preferred dividends)/ Average number of common shares outstanding
= $966,000 - $35,000 / 95,000 shares
= $9.45 per share
b. From 20Y2 to 20Y3, the earnings per share increased. An increase in earnings per share indicates a favorable trend.
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What is the structure of the 2020 Income Statement (in millions of $’s), assuming the following inputs? Make sure you include EBIT, EBT, and Net Income. (3 points) Cost of Goods Sold: $300 Interest Paid $30 Taxes $41 Depreciation $150 Sales $600 Dividends $30 Addition to RE $49
Based on the search results provided, it seems that there is no specific answer related to the structure of the 2020 Income Statement for the given inputs.
However, we can create an Income Statement based on the inputs provided:
Sales: $600
Cost of Goods Sold: $300
Gross Profit: $300
Operating Expenses:
Depreciation: $150
Interest Paid: $30
Total Operating Expenses: $180
EBIT: $120
Taxes: $41
Net Income: $79
Dividends: $30
Addition to Retained Earnings: $49
Keep in mind that this is just an example and the actual structure of the Income Statement may vary depending on the specific accounting practices and requirements of the company.
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problem 16-43 (lo. 8) as a retailer, zertan corporation sells software programs manufactured and packaged by other parties. zertan also purchases computer parts, assembles them as specified by customers in purchase orders, and sells them as operating stand-alone computers. all of zertan's operations take place in state f, which levies a 9% sales tax. results for the current year are as follows: sales of software $2,500,000 purchases of computer parts 1,600,000 sales of computer systems 8,500,000 purchases of office supplies 60,000 purchases of packaging materials for the computer systems 20,000 purchases of tools used by computer assemblers 50,000 question content area a. what is zertan's own sales tax expense for the year?
Zertan corporation sells software programs manufactured and packaged by other parties. All of Zertan's operations take place in state f, which levies a 9% sales. Zertan's own sales tax expense for the year will be 1,55,700.
Calculation of own sales tax expense during the year
Purchase of computer parts 16,00,000
Purchase of office supplies 60,000
Purchases of packaging materials for the computer systems 20,000
Purchases of tools used by computer assemblers 50,000
Total amount of expense 17,30,000
Tax on above 9% 1,55,700
Therefore, total sales tax expense 1,55,700
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Answer:
Answer: $5,400.
Explanation:
Each jurisdiction that applies a sales/use tax defines its own tax base (i.e., which items are taxable and to whom). A use tax is designed to complement the sales tax. Certain sales to manufacturers, producers, and processors may also be exempt. Exemptions usually include one or more of the following. (1) containers and other packing, packaging, and shipping materials actually used to transfer merchandise to customers of the purchaser and (2) machines and specific processing equipment and repair parts or replacements exclusively and directly used in manufacturing tangible personal property.
Zertan is the final consumer of the office supplies, so it must pay the sales tax on such materials to the vendors from whom purchases are made. Other supplies and tools used in the assembly process to create the computer systems are exempt from tax, in anticipation of the subsequent resale of the systems. The final consumers of those systems are liable for the tax thereon. Computation: 9% sales tax rate × $60,000 office supplies = $5,400.
with an upward-sloping shirt-run aggregate supply curve, an increase in government expenditure will most likely
An increase in government expenditure will most likely shift the short-run aggregate supply curve to the right.
A short-run aggregate supply curve that slopes upwards depicts a relationship between the price level and the total amount of goods and services that firms in an economy are willing to provide, taking into account the price of labor and raw materials. Supply curves are used to express the relationship between the price of a product and the quantity of that product that firms are willing to offer for sale. This is a graphical representation of the supply relationship.
Therefore, an increase in government expenditure would raise the prices of goods and services, and the demand for these goods and services would increase as well. As a result, businesses would increase their output to meet the new demand, and the short-run aggregate supply curve would shift to the right. As a result, the economy would experience both an increase in the price level and an increase in real GDP.
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ANSWER ASAP MARK BRAINLIEST
Last Course Patisserie Ltd is a small private limited company based in Devon which produces hand-made desserts and puddings. The business was established in 1986. Its owners previously worked in the food industry but felt they could offer better value for money to customers. All of the desserts are made fresh to order which has provided Last Course Patisserie with a reputation for being flexible when meeting customer needs. Getting the best ingredients for the desserts is a vital part of the business. Last Course Patisserie found excellent suppliers of free range eggs and dairy products close to its business location. This means all ingredients could be delivered quickly when needed. Last Course Patisserie has recently employed a new head chef from Switzerland who has introduced a new range of products to the menu. This has proved to be very popular with customers and the business now struggles to keep up with demand. Last Course Patisserie is receiving increased orders for desserts but, due to the size of its business premises, struggles to meet this increase in demand. The owners have decided that it is the right time for Last Course Patisserie to expand and possibly relocate to new premises. Analyse the impact on Last Course Patisserie of operating as a private limited company. (6)
The impact on Last Course Patisserie of operating as a private limited company would be:
Limited liabilityLegal identityRegulatory requirementsLess privacyWhat happens when a company operates as a private limited company ?As a private limited company, the owners of Last Course Patisserie have limited liability. This means that their personal assets are separate from the company's assets and are protected in case of business debts or legal issues.
Private limited companies must adhere to stricter regulatory requirements than sole proprietorships or partnerships. This includes submitting annual accounts, holding annual general meetings, and complying with various legal obligations.
As a private limited company, certain financial information about Last Course Patisserie must be publicly disclosed.
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Calculate the vehicle deduction for a 2022 Income Tax client (self-employed) with UCC on a class 10 vehicle which was $21,000 at the end of 2018 and the max was used each year. Total allowable vehicle expenses for 2022 were $11,000.00 (not including CCA). In 2022 18,000km were driven for business, 14,000km were driven for personal use.
The calculation of the vehicle deduction for a 2022 Income Tax client is $12,487.50.
To calculate the vehicle deduction for a 2022 Income Tax client (self-employed) with UCC on a class 10 vehicle, we have to follow these steps:
1) First, we need to calculate the Capital Cost Allowance (CCA) for the 2022 year:CCA rate for class 10 is 30%. Therefore, CCA for 2022 is 30% of $21,000 = $6,300.
2) We also need to calculate the business-use portion of total expenses for the vehicle in 2022. To do that, we need to find out the total kilometers driven by the client in 2022 and the business-use portion of those kilometers.
Business-use percentage = business-use km / total km
Business-use km = 18,000
Total km = 18,000 + 14,000 = 32,000
Therefore, business-use percentage = 18,000 / 32,000 = 0.5625 or 56.25%
Total expenses for the vehicle in 2022 were $11,000. Therefore, business-use portion of total expenses = business-use percentage x total expenses = 0.5625 x $11,000 = $6,187.53)
Finally, we can calculate the vehicle deduction for the client as follows:
Deduction = (CCA for 2022) + (business-use portion of total expenses)
= $6,300 + $6,187.50 = $12,487.50
Therefore, the vehicle deduction for the 2022 Income Tax client with UCC on a class 10 vehicle is $12,487.50.
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According to __________, characteristics of the workplace termed
hygiene factors will not necessarily motivate workers.
Multiple Choice
Maslow
McClelland
Herzberg
Hackman and Oldham
Dewey
According to Herzberg, characteristics of the workplace termed hygiene factors will not necessarily motivate workers. The correct answer is ''Herzberg.''
Herzberg came up with the idea of hygiene factors. Hygiene factors are critical environmental variables that, if mismanaged, can lead to job dissatisfaction among employees. A lack of hygiene factors might lead to decreased worker motivation and productivity.
Hygiene variables are vital for ensuring that employees are content in their jobs, but they don't go far enough to encourage positive attitudes about work.
In conclusion, the correct answer is ''Herzberg.''
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CASE STUDY [30 Marks] Read the case study and answer the
questions that follow: MEGAZONE LIMITED Megazone Limited is well
known for its focus on innovation and this is highlighted in the
company’s w
Megazone Limited is a company that is known for its innovation in the gaming industry.
What innovative strategies could Megazone Limited implement to revive its profits and remain competitive in the market?Megazone Limited could explore new and innovative technologies such as virtual reality or augmented reality gaming. It could also leverage artificial intelligence to create personalized gaming experiences for users.
How important is innovation for Megazone Limited to remain relevant in the gaming industry?Innovation is crucial for Megazone Limited to remain relevant in the highly competitive gaming industry. Without continuous innovation, the company risks falling behind its competitors and losing market share.
Megazone Limited must invest in research and development to develop new and innovative technologies to stay ahead of the curve.
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What do you understand by the term mass-customization? Using the
example of Nike discuss how it can use mass-customization in era of
e-commerce to maintain competitive edge (300 words)
Mass customization is the method of delivering personalized products or services to consumers based on their individual preferences or requirements while retaining the economies of scale of mass production.
About mass customizationMass customization benefits companies by allowing them to cater to a more diverse range of consumers without increasing their inventory, manufacturing, or distribution expenses.
Nike, one of the world's most well-known and successful sportswear brands, is a perfect example of a business that has effectively used mass customization to maintain its competitive advantage in the e-commerce era.
Nike's NikeID customization service is a prime example of the company's mass-customization approach. Nike's website allows customers to personalize their shoes using a variety of colors, patterns, and materials, as well as to add their own text, logos, or designs.
Customers can now design their own sneakers using the NikeID customization feature, resulting in a one-of-a-kind pair of shoes that perfectly suits their preferences and needs. Nike's customization service has also attracted a diverse range of consumers from various age groups, genders, and sports.
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Revenue and cash receipts journals; accounts receivable subsidiary and general ledgers
Transactions related to revenue and cash receipts completed by Crowne Business Services Co. during the period April 2–30 are as follows:
Apr. 2. Issued Invoice No. 793 to Ohr Co., $7,520.
Apr. 5. Received cash from Mendez Co. for the balance owed on its account.
Apr. 6. Issued Invoice No. 794 to Pinecrest Co., $2,710.
Apr. 13. Issued Invoice No. 795 to Shilo Co., $4,040.
Post revenue and collections to the accounts receivable subsidiary ledger.
Apr. 15. Received cash from Pinecrest Co. for the balance owed on April 1.
Apr. 16. Issued Invoice No. 796 to Pinecrest Co., $8,430.
Post revenue and collections to the accounts receivable subsidiary ledger.
Apr. 19. Received cash from Ohr Co. for the balance due on invoice of April 2.
Apr. 20. Received cash from Pinecrest Co. for balance due on invoice of April 6.
Apr. 22. Issued Invoice No. 797 to Mendez Co., $11,100.
Apr. 25. Received $3,070 note receivable in partial settlement of the balance due on the Shilo Co. account.
Apr. 30. Received cash from fees earned, $18,950.
Post revenue and collections to the accounts receivable subsidiary ledger.
Required:
1. Insert the following balances in the general ledger as of April 1:
11 Cash $17,240
12 Accounts Receivable 21,000
14 Notes Receivable 9,140
41 Fees Earned -
After completing the recording of the transactions in the journals in part 3, total each of the columns of the special journals, and post the individual entries and totals to the general ledger. Insert account balances after the last posting. When posting to the general ledger, post in chronological order. However, if there is more than one entry on the same date, be sure to post transactions from the revenue journal before posting transactions from the cash receipts journal.
If an amount box does not require an entry, leave it blank. In CNOW, Journal pages begin with "J", Cash Receipts begin with "CR" and Cash Receipts begins with "R". For example journal/ Cash Receipts/ Cash Receipts, page 1/36/40 respectively. POST. REF. is simply J1, CR36, and R40.
GENERAL LEDGER
Date Item Post.
Ref. Debit Credit Balance Dr. Balance Cr.
Account: Cash # 11
Apr. 1 Balance ✔ Account: Accounts Receivable # 12
Apr. 1 Balance ✔ Account: Notes Receivable # 14
Apr. 1 Balance ✔ Account: Fees Earned # 41
A general ledger is a collection of numbered accounts used by a firm to record its financial activities and provide financial reports. The general ledger and journal of Crowne Business Services Co. during the period April 2–30 are as follows
What is a journal in business?A firm essentially keeps a journal, which is a succinct record of all transactions; journal entries describe how transactions influence accounts and balances. The information in journal entries hence serves as the foundation for all financial reporting, and there are several versions to suit different corporate requirements. The journal is made up of unedited accounting entries that list business transactions in chronological order. Five essential accounting items—assets, liabilities, owner's capital, revenues, and expenses—are tracked in the general ledger, which is more formally formatted.
General Ledger
Account : Cash #11
Balance
Date Item Post Ref Debit Credit Debit credit
Apr.1 Balance 17240
Apr.5 A/R 12070 29310
Apr.15 A/R 8930 38240
Apr.19 A/R 7520 45760
Apr.20 A/R 2710 48470
Apr.30 Fee Earned 18950 67420
REVENUE JOURNAL
Accounts Receivable Dr.
Account Debited Post. Ref.
Date Invoice No.
Fee Earned Cr
Apr.2 793 Ohr Co. ✔ 7520
Apr.6 794 Pinecrest Co. ✔ 2710
Apr.13 795 Shilo ✔ 4040
Apr.16 796 Pinecrest Co. ✔ 8430
Apr.22 797 Mendez co. ✔ 11100
Apr.30 Total 33800
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An asset is projected to generate 16 annual cash flows of $4,000 starting 6 years from today. If the discount rate is 9%, how much is this asset worth today? Round to the nearest cent. [Hint: This is a deferred annuity. Remember the rule about where on the timeline PV annuity goes when you have a deferred annuity.]
The asset is worth $24,031.24 today, rounded to the nearest cent.
To calculate the present value of this asset, we need to discount each cash flow to its present value and sum them up. We know that the cash flows are a deferred annuity, which means that the first cash flow will be received in 6 years, and we will receive 16 annual payments of $4,000 after that.
To calculate the present value of the deferred annuity, we first need to calculate the present value of an ordinary annuity of 16 payments of $4,000 per year, using the formula:
[tex]PV = PMT x (1 - (1 + r)^-n) / r[/tex]
where PV is the present value, PMT is the annual payment, r is the discount rate, and n is the number of periods.
Using these values, we get:
PV of ordinary annuity =[tex]$4,000 x (1 - (1 + 0.09)^-16) / 0.09[/tex]
PV of ordinary annuity = $40,393.17
However, this is the present value of an ordinary annuity, which assumes that the first payment is received immediately. In this case, the first payment is received 6 years from now, so we need to discount the ordinary annuity back 6 years to get the present value of the deferred annuity.
To do this, we can use the formula for present value of a lump sum:
[tex]PV = FV / (1 + r)^n[/tex]
where FV is the future value, r is the discount rate, and n is the number of periods.
Using these values, we get:
PV of deferred annuity =[tex]$40,393.17 / (1 + 0.09)^6[/tex]
PV of deferred annuity = $24,031.24
Therefore, the asset is worth $24,031.24 today, rounded to the nearest cent.
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G assume the following production function n y 1 100 100 2 130 3 146 4 152 6 assuming that the product sells at the market price $1. 0. How many workers will the firm hire if the market wage is $16. 00?
The firm will hire two workers if the market wage is $16. 00.
To determine how numerous workers the establishment will hire, we need to calculate the borderline product of labor( MPL) and the value of the borderline product( VMP) at each position of labor.
MPL is the fresh affair produced by adding one further unit of labor, while VMP is the value of that fresh affair at the request price. We can calculate MPL as the difference between the affair produced with n workers and the affair produced with n- 1 workers. VMP is equal to MPL times the request price.
As we can see from the table, MPL decreases as further workers are hired. This is due to the law of dwindling borderline returns, which states that as further units of a variable input( similar as labor) are added to a fixed input( similar as capital), the borderline product of that variable input will ultimately drop.
To determine how numerous workers the establishment will hire at a request pay envelope of$16.00, we need to compare the pay envelope cost of each fresh worker to the VMP of thatworker.However, the establishment will hire another worker, If the VMP is lesser than the pay envelopecost is $6.00, which is lower than the pay envelope cost of$16.00. thus, the establishment won't hire a fourth worker.
Thus, the establishment will hire two workers at a request pay envelope of$16.00.
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lacey is new to california and has found a room to rent on a month-to-month basis until she finds a more permanent place to live. for her lease to be legally binding, it must meet the following minimum criteria:
The criteria that Lacey's month-to-month lease must meet for it to be legally binding are as follows:
It should be in writingIt must be signed by both parties (Lacey and the landlord)It should include the address of the rental propertyIt should have the amount of rent to be paid and the due dateIt should state the period of the month covered by the rent It must state the security deposit amountIt should outline the terms and conditions of occupancyIt must include the notice required to end the leaseIt should specify the reason for which the landlord can enter the propertyThese are the minimum criteria that Lacey's month-to-month lease must meet to be legally binding. The agreement should be signed by both parties, and it must outline the terms and conditions of the lease. Furthermore, it must specify the date on which rent is due and the amount to be paid.
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What is the present value of the annual interest payments on a 20-year bond that pays a coupon interest of 5% on a $1,000 face value bond, if the yield on similar bonds is 10%?
please post step by step :
Present value = Interest / discount rate for 20 years (PVAF)
Interest amount = $ 1000 * 5%
Interest = $ 50
Years = 20
Discount rate = 10%
Present value of annuity factor of 20 years = 8.5136 (PVAF) <-- I do not know how to get this number please help
So, Present value = 50 * 8.5136
PV = $ 425.6782
The present value of the annual interest payments on a 20-year bond that pays a coupon interest of 5% on a $1,000 face value bond, if the yield on similar bonds is 10%, is $425.68.
To calculate the present value of the annual interest payments on a 20-year bond, we need to use the formula for the present value of an annuity:
PV = PMT x PVAF
Where PV is the present value, PMT is the annual interest payment, and PVAF is the present value annuity factor.
Here are the steps to calculate the present value:
Calculate the annual interest payment by multiplying the face value of the bond by the coupon rate. In this case, the annual interest payment is $1,000 x 5% = $50.
Determine the discount rate, which is the yield on similar bonds. In this case, the yield is 10%.
Find the present value annuity factor (PVAF) for 20 years and a discount rate of 10%. You can use a financial calculator, Excel, or look up the factor in a present value annuity table. The present value annuity factor for 20 years and a discount rate of 10% is 8.5136.
Finally, plug in the values into the formula for present value:
PV = $50 x 8.5136 = $425.68
Therefore, the present value of the annual interest payments on a 20-year bond that pays a coupon interest of 5% on a $1,000 face value bond, if the yield on similar bonds is 10%, is $425.68.
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FMGT 4110 Intermediate Accounting II The Falcon Heavy Co. (FHC) had the following information available from its Trial Balance as at August 31, 2021: 1. prefered shares 250.000 share authorized 100.000 shares issued and outstanding ; $200.000
2. common shares unlimited shares authorized 225.000 dollars shares issued and outstandiing ; 450.000
3. contributed surplus (note 1) 10.000
4. retained earnings 300.000
Note 1: This balance arose in 2020 when FHC repurchased and retired preferred shares. The following transactions occurred between September and December 31, 2021: Sep 1 ; issued 100.000 commond shares for $2.25 per share and 50.000 preffered sgares for $1.00 per shares
oct 15 ; declared a 10 % stock divident on common shares
nov 2 ; purchased cancelled 5.000 commond shares at $5.00 Required: Journalize each of the above transactions. Round all per-share amounts to the nearest cent. (14 marks) Required: How many common and preferred shares are issued and outstanding on Dec 31, 2021? ( 4 marks) Required: On February 1,2022, 5% of the share subscribers are not able to uphold the contract and forfeit any amounts paid, in accordance with the subscription contract. What is the value of contributed surplus that will be recorded on this date? (2 mark)
Journal entries:
Sep 1:
Common Shares 225,000
Contributed Surplus 10,000
Preferred Shares 50,000
Cash 250,000
Oct 15:
Retained Earnings 22,500
Common Stock Dividend 22,500
Nov 2:
Treasury Stock 25,000
Cash 25,000
Number of shares issued and outstanding on Dec 31, 2021:
Preferred Shares: 100,000
Common Shares:
Issued = 225,000 + 100,000 = 325,000
Outstanding = 325,000 - 5,000 = 320,000
On February 1, 2022, the value of contributed surplus recorded will be:
Amount paid by subscribers = 225,000 x $2.25 + 50,000 x $1.00 = $562,500
Amount forfeited = 5% x $562,500 = $28,125
Value of contributed surplus = $28,125 - $10,000 = $18,125.
What are Journal Entries?The chronological recording of a company's financial transactions in the general ledger is referred to as a journal entry. The first steps in accounting are journal entries, which are used to record all financial transactions, including the debits and credits to each account affected by them.
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Miopese a $1.000 par value bond that pays coupons annually has 10 years remaining to maturity and a coupon rate of 3.5%. If the bond is. cumently seling for $756, what is its vield to maturity? A bond has 19 years to maturity and pays $84.134coupons annually. If you bought the bond when it was first issued and held it to maturity, what nominat annual rate of return would you earn? A bond with a 0.12 semiannual coupon rate has 9 years to maturity. If bonds with similar risk yield 0.11 per year, how much should investors be willing to pay for the bond?
If the current selling price is $756, the yield to maturity is 8.44%. If bond is bought when it was first issued and held it to maturity, nominal annual rate of return is 5.5%. A bond with a 0.12 semiannual coupon rate has 9 years to maturity. If bonds with similar risk yield 0.11 per year, the price investors will be willing to pay for the bond is $1,008.37.
The formula to find the yield to maturity is given by:
YTM = C + (FV - P)/n(FV + P)/2
Where,
C = Annual Coupon payment
FV = Face Value
P = Price of the bond
n = Number of years to maturity
So, YTM = 3.5% + ($1,000 - $756)/10($1,000 + $756)/2
YTM = 8.44%
Therefore, the yield to maturity of the bond is 8.44%.
The nominal annual rate of return is given by:
Nominal Annual Rate of Return = (Annual Coupon Payment + Face Value - Purchase Price)/Purchase Price
Where,
Annual Coupon Payment = $84.134
Face Value = ?
Purchase Price = ?
The bond pays $84.134 coupons annually, so the bond's face value is a present value of an annuity. Therefore, we can calculate the present value of an annuity using the following formula:
PV = C/i[1 - 1/(1+i)^n]
Where,
PV = Present value of annuity
C = Coupon payment
i = Interest rate
n = Number of years
The present value of the annuity is:
PV = $84.134/0.05[1 - 1/1.05&^19]
PV = $1,227.35
Now, we have to find the present value of the bond, which is,
Present Value = PV + FV/(1+i)^n
Where,
FV = Face Value
n = Number of years
Hence,
Present Value = $1,227.35
FV = Face Value
n = 19 years
i = ?
As the bond is held to maturity, the present value of the bond is equal to its purchase price. So,
$1,227.35 + FV/(1+i)^19 = Purchase Price
Now, we can solve for the nominal annual rate of return by substituting the values and solving the equation for i.
The nominal annual rate of return is 5.5%.
The semiannual coupon payment is $0.12. The bond has 9 years remaining to maturity, so it pays 18 coupons in total. Therefore, we can calculate the present value of the bond using the following formula:
PV = C/i[1 - 1/(1+i)^n] + FV/(1+i)^n
Where,
C = Coupon payment
i = Interest rate
n = Number of years
FV = Face Value
Where
C = $0.12/2 = $0.06
i = 0.11/2 = 0.055
n = 9*2 = 18
FV = $1,000
Hence,
PV = $0.06/0.055[1 - 1/(1+0.055)^18] + $1,000/(1+0.055)^18
PV = $1,008.37
Therefore, investors should be willing to pay $1,008.37 for the bond.
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Triad Corporation has established a joint venture with Tobacco Road Construction, Incorporated, to build a toll road in North Carolina. The initial investment in paving equipment is $141 million. The equipment will be fully depreciated using the straight-line method over its economic life of five years. Earnings before interest, taxes, and depreciation collected from the toll road are projected to be $20.1 million per annum for 20 years starting from the end of the first year. The corporate tax rate is 24 percent. The required rate of return for the project under all-equity financing is 13 percent. The pretax cost of debt for the joint partnership is 8.2 percent. To encourage investment in the country’s infrastructure, the U.S. government will subsidize the project with a $60 million, 15-year loan at an interest rate of 4.7 percent per year. All principal will be repaid in one balloon payment at the end of Year 15. What is the adjusted present value of this project? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89)
The adjusted present value of this project is $121,579,817.82.
The adjusted present value of this project can be calculated as follows:
Initial investment: $141 million
Tax rate: 24%
Required rate of return: 13%
Pretax cost of debt: 8.2%
Subsidy: $60 million loan at 4.7% interest rate over 15 years
The adjusted present value of this project is $121,579,817.82.
To arrive at this value, we first need to calculate the present value of the future earnings before interest, taxes, and depreciation collected from the toll road for the next 20 years. This can be calculated by taking the annuity of $20.1 million for 20 years at 13% rate of return and subtracting the initial investment of $141 million. Next, we need to calculate the present value of the $60 million loan at 4.7% interest rate over 15 years. This can be calculated by taking the annuity of $60 million at 4.7% rate of return for 15 years.
Finally, we need to calculate the present value of tax shield. This can be calculated by taking the present value of future earnings before interest, taxes, and depreciation collected from the toll road and subtracting the present value of earnings after taxes.
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benefits derived from budgeting include all of the following except: multiple choice improved relationship with shareholders. enhanced management responsibilities. improved coordination of activities. enhanced performance evaluations.
Benefits derived from budgeting include all of the following except for an improved relationship with shareholders.
Budgeting is a financial planning tool that aids in the allocation of resources and aids in the monitoring of financial activities.Budgeting is an essential component of the organization's management process. Budgeting provides a number of benefits to organizations, some of which are listed below:Improved management responsibilitiesImproved coordination of activities. Enhanced performance evaluations. Improved forecasting and strategic planningImproved communication within the organizationBetter control over financial resourcesBudgeting helps to establish a strong connection between planning and action.
It encourages managers to focus on the allocation of resources and on the goals and objectives of the organization. Budgeting helps to improve management responsibilities by requiring managers to make informed decisions based on the data provided by the budget.The organization can have a coordinated approach by making sure everyone is working towards the same goal.
Enhanced performance evaluations can help to improve employee productivity and quality of work. Budgeting also helps to improve forecasting and strategic planning, communication within the organization, and better control over financial resources.
Hence the correct answer is improved relationship with shareholders
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The following is the December 31, 2022, balance sheet for Newmarket Novelty Goods Inc.
Sales for 2022 were $1,800,000, with the cost of goods sold is 45% of sales. Amortization expense was 10% of the gross plant and equipment at the beginning of the year. Interest expense was 10% on the notes payable and 12% on the bonds payable. Selling, general, and administrative expenses were $170,000 and the firm's tax rate is 30%.
A) Prepare an income statement in the proper format. [Show all the calculations where warranted] [10 marks]
B) If the dividend payout ratio for the company is 35%, what is the value of the retained earnings account on December 31, 2022? [5 marks]
Assets
Liabilities
Cash
$120,000
Accounts payable
$50,000
Accounts receivable
150,000
Notes payable
200,000
Inventory
230,000
Bonds payable
270,000
Total current assets
450,000
Total liabilities
520,000
Plant and equipment
1,300,000
Less: Acc. Amortization
300,000
Common stock
600,000
Net plant and Equipment
1,000,000
Retained earnings
380,000
Total equity
980,000
Total assets
1,500,000
Total liabilities & equity
$1,500,000
Sales$1,800,000 Cost of goods sold (45% of sales) ($810,000)Gross profit $990,000 general, and administrative expenses($170,000)Amortization expense (10% of $1,300,000)($130,000)Interest expense (10% x $200,000 + 12% x $270,000) ($52,400).
What is an Interest ?An interest refers to a feeling of curiosity or concern about something or someone. It is a state of being engaged or motivated by something that draws our attention, drives our actions, and influences our decisions.
Interests can vary widely and can be related to anything that catches our attention, such as hobbies, sports, career, politics, art, music, and many more. They can also change over time as we experience new things and develop new passions.
Having a strong interest in something can be a powerful motivator, driving us to explore, learn, and grow in that area. It can also bring a sense of fulfillment and satisfaction, as we pursue something that we truly enjoy or find meaningful.
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Market value analysis) The balance sheet for Larry Underwood Motors shows a book value of stockholders' equity (book value per share times ×total shares outstanding) of $1,303,000. Furthermore, the firm's income statement for the year just ended has a net income of $504,000, which is $0.247 per share of common stock outstanding. Theprice-earnings ratio for firms similar to Underwood Motors is 18.32.
a. What price would you expect Underwood Motors shares to sellfor?
b. What is the book value per share for Underwood's shares?
To determine the expected selling price for Underwood Motors shares, we can use the price-earnings (P/E) ratio formula:P/E ratio = Market price per share / Earnings per share.
What is the ratio ?A ratio is a mathematical relationship between two or more quantities or values. Ratios can be expressed in different ways, such as as a fraction, as a decimal, or as a percentage. Ratios are often used in finance and accounting to compare different financial measures, such as profitability, liquidity, or solvency, and to evaluate the financial health or performance of a company. Common financial ratios include the price-earnings ratio (P/E), the debt-to-equity ratio, the current ratio, the quick ratio, and the return on equity (ROE) ratio, among others. By analyzing ratios, investors, analysts, and managers can gain insights into the strengths and weaknesses of a company's financial position and make informed decisions about investing, financing, or managing the company.
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carnival cruise lines wants to target its new line of cruise options to families with young children. which basis will they likely use to segment the market?
Carnival Cruise Lines would likely use demographic segmentation to target its new line of cruise options to families with young children.
Demographic segmentation is a market segmentation method that divides the market into subgroups based on variables such as age, gender, income, education, occupation, family size, and other variables that may be relevant to a particular product or service.
The variables used in demographic segmentation are objective, measurable, and easy to identify. The variables are used to identify groups that have similar needs, characteristics, or behaviors.
In this instance, families with young children are the target audience of Carnival Cruise Lines’ new line of cruise options. As a result, demographic segmentation is the most likely segmentation method that Carnival Cruise Lines would use to identify and target this segment of the market.
In conclusion, demographic segmentation is the most likely basis that Carnival Cruise Lines would use to segment the market to target its new line of cruise options to families with young children.
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Based on the discussion of Case 5 "Delta synthetic fibers", analyze the different types of product / process innovations undertaken by the company. Analyze these innovations based on the Henderson-Clark model.
Delta synthetic fibers has undertaken several types of product and process innovations, which can be analyzed based on the Henderson-Clark model.
Product innovations include the development of synthetic fibers that are thinner, more lightweight, and more comfortable than traditional materials, and process innovations include the introduction of an automated, computer-controlled manufacturing system.
These product and process innovations allow Delta to reduce production costs and increase production efficiency.
In terms of the Henderson-Clark model, Delta's product and process innovations can be seen as necessary for the company to remain competitive in the marketplace and to reduce costs.
They provide a way to improve the performance and efficiency of the company, and also enable the company to respond quickly to changes in market demand.
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According to the world bank, a country with low or middle income is:____.a. first world b. second worldc. third world d. developing
According to the World Bank, a country with low or middle income is typically referred to as a developing country.
This term is used to describe countries that are in the process of economic and social development, with lower levels of industrialization and income than developed countries.
The World Bank classifies countries based on their Gross National Income (GNI) per capita, with low-income countries defined as those with a GNI per capita of $1,045 or less, middle-income countries with a GNI per capita income between $1,046 and $12,735, and high-income countries with a GNI per capita of $12,736 or more.
While the term "third world" was historically used to refer to developing countries, it is now considered outdated and often viewed as derogatory. The terms "first world" and "second world" were originally used during the Cold War to describe capitalist and communist countries, respectively.
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Answer: D
Explanation: developing
which segmentation method is being used when hershey offers special new baby-themed packaging for customized candy bars imprinted with the name, birth date, special blue or pink outer wrapper, and the name hershey exposed as she or he?
The segmentation method that is being used is when Hershey offers special new baby-themed packaging for customized candy bars imprinted with the name, birth date, special blue or pink outer wrapper, and the name Hershey exposed as she or he is Demographic Segmentation.
Demographic segmentation is a marketing method that separates a market into subcategories based on age, gender, family size, income, occupation, education, and religion. This method, unlike other market segmentation approaches, solely focuses on consumer characteristics.
It provides information about the target market's behavior, spending patterns, and consumption habits in a particular product category. It's the most straightforward method of segmentation because demographic information is readily available to most firms, and it's simple to understand.
It aids in identifying the target audience and the type of product that would be most appealing to them. Furthermore, it allows for the creation of personalized campaigns for various groups of consumers.
In Hershey's case, they can create customized candy bars with the name and birth date, special blue or pink outer wrapper, and the name Hershey exposed as she or he for new mothers or fathers who recently had a baby. This would attract consumers who want to buy gifts for new parents, as well as parents who want to purchase something for their newborn child.
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Based on what you know about developing ethical cultures and programs, identify the problems presented by this case. Why do you think the corporate counsel has responded in this way? What will be your response to him, if any? As a consultant, what are your ethical obligations, if any? How will you proceed?
Based on about developing ethical cultures and programs, identify the problems presented by this case. The corporate counsel has responded as a consultant due to the healthcare consultation. As a consultant, the ethical obligations are attitude and work load of employees. To proceed it as giving good environment and motive to do smart work.
The ethics are those principles that is govern the person's behavior or the activity which is conducting. There are three types of ethics are normative ethics, metaethics, and applied ethics.
The seven principles of ethics are accountability, justice, autonomy, beneficence, fidelity and the veracity. The two important traits think should possess as a professional accountant is "to evaluate the actions or decisions" and "manage stress effectively".
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Which of the following sentences shows correct number usage? Check all that apply.
1.The professional software package included Web 2.0 applications, but it cost over $1,200.
2. Mr. Yu predicted that fifty-five point six percent of his customers would return for follow-up services.
3 .Eighteen construction companies were competing for the contract to build the two new office buildings.
answer is 1.
The correct sentences that show correct number usage are 1. The professional software package included Web 2.0 applications, but it cost over $1,200 and 2. Mr. Yu predicted that fifty-five point six percent of his customers would return for follow-up services. Therefore correct answer is option 1 and 2.
Option 1: "The professional software package included Web 2.0 applications, but it cost over $1,200." This sentence shows correct number usage because it correctly uses the dollar sign and a comma to separate the thousands place.
Option 2: "Mr. Yu predicted that fifty-five point six percent of his customers would return for follow-up services." This sentence does not show correct number usage because it spells out the number "fifty-five point six" instead of using the numeral "55.6."
Option 3: "Eighteen construction companies were competing for the contract to build the two new office buildings." This sentence also shows correct number usage because it correctly spells out the number eighteen and uses the word "two" instead of the numeral "2."
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Which of the following Baldrige criteria examines key aspects such as customer focus in design, work system, design for services and products, support processes, and processes relating to partners?
A) workforce focus
B) strategic planning
C) measurement, analysis, and knowledge management
D) business results
E) operations focus
Baldrige criteria examines key aspects such as customer focus in design, work system, design for services and products, support processes, and processes relating to partners is E) operations focus.
The Baldrige criteria for operations focus examines key aspects such as customer focus in design, work system, design for services and products, support processes, and processes relating to partners.
This criterion is used to evaluate an organization's ability to design, manage, and improve its key processes in order to deliver value to customers and achieve operational excellence.
It also includes an assessment of how the organization manages its supply chain and partners to ensure the quality and reliability of its products and services.
By focusing on operations, an organization can ensure that it is meeting customer needs and achieving its strategic goals.
Hence Option E) is correct.
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A business valued at $4,000,000 has 4 partners. The partnership purchases a lifeinsurance policy on each partner’s interest. Correct answero A buy-sell entity insurance plan.o A partnership buy/sell plan.o A buy-sell cross-purchase insurance plan
The insurance policy that is purchased by a partnership on each partner's interest when the business is worth $4,000,000 is called a "partnership buy/sell plan." A partnership buy/sell plan is the correct answer.
A buy-sell agreement is a legally binding agreement between co-owners of a business that describes the events that will occur if one of the owners dies or leaves the business.
The most common reason for implementing a buy-sell agreement is to ensure that the business remains in the hands of the remaining owners if one of them dies or becomes incapacitated.
A buy-sell agreement should specify what will happen if one of the owners dies or becomes incapacitated. It must contain provisions for the purchase of the interest of a disabled or deceased owner.
The partnership's purchase of a life insurance policy on each partner's interest is intended to fund the buyout in the event of an owner's death or disability.
As a result, this insurance policy is also known as a "partnership buy/sell plan." Business valued at $4,000,000 is the given information for the question.
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You have a chance to buy an annuity that pays $17,000 at the beginning of each year for 5 years. You could earn 4.9% on your money in other investments with equal risk. What is the most you should pay for the annuity?a. $86,563.40 b. $63,382.10 c. $77,421.45 d. $90,805.00 e. $73,805.00
The most you should pay for the annuity is $86,563.40. This is because an annuity is an investment that pays a set amount at regular intervals.
The present value of the annuity is calculated by multiplying the payment amount (in this case, $17,000) by the present value of an annuity factor (PVAF) at a given rate of return (in this case, 4.9%).
The PVAF is calculated using the following formula:
PVAF = 1 – (1/(1 + rate of return)^number of periods)
So, in this case, PVAF = 1 - (1/1.049^5) = 0.67358.
Therefore, the present value of the annuity is $17,000 * 0.67358 = $86,563.40.
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