Answer:
A lawyer is a good job
Explanation:
lol
whne you try your best and do the best possible you can, but without harmnig anyone or yourself, emotionally or physically
Theresa works as a Risk Management Specialist for an investment corporation. Which best describes her educational pathway?
A. an associate’s degree, then a bachelor’s degree
B. a master’s degree, then vocational school
C. vocational school, then an associate’s degree
D. a bachelor’s degree, then a master’s degree
Answer:
The answer is b
Explanation:
i'm doing the unit test right now
Answer:
I feel that the correct answers is D because to become a Risk Management Specialist you must have a bachelors in business and most likely a master.
Explanation:
To protect consumers from unfair credit practices, credit laws were established
-true
-false
Answer:
true
Explanation:
"It started with the Consumer Credit Protection Act of 1968, when Congress moved to shield consumers and their financial records from abuse. In the years following, other laws refined consumer rights, spelling out how the government can access bank customers’ information, how banks treat borrowers and the way banks handle customer deposits.
It all came to a head after the Great Recession in 2008, and out of that, the Consumer Financial Protection Bureau was formed, a new government agency dedicated to protecting consumers.
Today, there are countless laws, acts and regulations designed to protect consumers. The sheer number of laws can be overwhelming, but it is important that consumers understand their basic rights, so they can identify when those rights have been violated."
Source: debt.org
Company XYZ closed at $ per share with a P/E ratio of . Answer the following questions. a. How much were earnings per share? b. Does the stock seem overpriced, underpriced, or about right given that the historical P/E ratio is 12-14?
Answer:
Hello your question is incomplete below is the complete question
Company XYZ closed at $53.02 per share with a P/E ratio of 14.02 .
Answer :
A) $3.79
B) underpriced
Explanation:
Given data:
Closing price ( price per share ) = $53.02
P/E ratio = 14.02
A ) How much earnings per share
Earnings per share = price per share / (P/E) ratio
= 53.02 / 14.02 = $3.79
B) To check if the stock is overpriced, underpriced or about right
i) At P/E ratio = 12
Earnings per share = 53.02 / 12 = $4.43
Earning yield = ( earning per share / market value ) * 100
= ( 4.43 / 53.02 ) * 100 = 8.33%
ii) At P/E ratio = 13
Earnings per share = 53.02 / 13 = $4.09
Earning Yield = ( earning per share / market value ) * 100
= (4.09 / 53.02 ) * 100 = 7.69%
iii) At P/E ratio = 14
Earnings per share = 53.02 / 14 = $ 3.8
Earnings yield = ( earning per share / market value ) * 100
= ( 3.8 / 53.02 ) * 100 = 7.14%
The average of the earning yield given P/E ratio is 12-14
= ( 8.33 + 7.69 + 7.14 ) % / 3 = 7.72%
while The earning yield given P/E ratio is 14.02
= ( earning per share / market value ) * 100
= ( 3.79 / 53.02 ) * 100 = 7.12%
Therefore the stock is underpriced
One of the disadvantages of the sole proprietorship is related to the fact that the amount of equity capital that can be raised to finance the business is limited to the owner's personal wealth. ____________ is about determining how the firm should finance or pay for assets. The risk manager monitors and manages the firm's risk exposure in financial and commodity markets and the firm's relationships with insurance providers. Privately held, or closely held, corporations are typically owned by a small number of investors, and their shares are not traded publicly.
Answer:
The missing word is: Financial Risk
Explanation:
To begin with, the name of "Financial Risk" is used in the field of business and finances in order to explain that the companies, and also the government, have to find a way to determine how the firm will finance itself so that they could pay for all the assets they own. Moreover, this financial term implicates the loss of the money that can happen when the company needs to invest in assets and the operations may not go right. So that is why that it is a concept used to understand the danger that the organization has when it comes to acquire the assets and pay for them.
Bernie and Phil's Great American Surplus store placed an ad in the Sunday Times stating, "Next Saturday at 8:00 A.M. sharp 3 brand new mink coats worth $5,000 each will be sold for $500 each! First come, First served." Marsha LufMin was first in line when the store opened and went directly to the coat department, but the coats identified in the ad were not available for sale. She identified herself to the manager and pointed out that she was first in line in conformity with the store's advertised offer and that she was ready to pay the $500 price set forth in the store's offer. The manager responded that a newspaper ad is just an invitation to negotiate and that the store decided to withdraw "the mink coat promotion." Review the text on unilateral contracts in Section 12(b) of Chapter 12. Decide.
Answer:
This technique is called "bait and switch", it is illegal and is considered false advertising. A seller cannot falsely advertise a product and then simply say that they do not have it on stock. It is a type of sales fraud and it is prohibited by the Lanham Act.
In order for this situation to be considered legal, the seller must have advertised and sold a certain amount of coats, but it didn't sell any. I.e. the seller runs out of stock because it already sold the 3 coats.
Martinez Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets.
Projected Benefit Obligation Plan Assets Value
2019 $2,340,000 $2,223,000
2020 2,808,000 2,925,000
2021 3,451,500 3,042,000
2022 4,212,000 3,510,000
The average remaining service life per employee in 2019 and 2020 is 10 years and in 2021 and 2022 is 12 years. The net gain or loss that occurred during each year is as follows:
2019, $327,600 loss; 2020, $105,300 loss; 2021, $12,870 loss; and 2022, $29,250 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances.)
Required:
Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule.
Year Minimum Amortization of Loss
2013 $
2014 $
2015 $
2016 $
Answer:
2020 $11,700
2021 $8,080
2022 $14,040
Explanation:
PBO = Projected benefit Obligation
PA = Plan Asset
Acc. OCI = Accumulated OCI Gain / Loss
Min. Amort loss = Minimum Amortization of Loss
Year : PBO ; PA ; Corridor 10% ; Acc. OCI ; Min. Amort loss
2019 : $2,340,000 ; $2,223,000 ; $234,000
2020 : $2,808,000 ; $2,925,000 ; $280,800 ; $397,800 ; 11,700
2021 : $3,451,500 ; $3,042,000 ; $345,150 ; $264,350 ; 8,080
2022 : $4,212,000 ; $3,510,000 ; $421,200 ; $280,800 ; 14,040
20. The consumer price index was 120 in 2013 and 126 in 2014. The nominal interest rate during this period was 8 percent. What was the real interest rate during this period? A) 3 percent B) 2 percent C) 3.3 percent D) 5.2 percent E) 12.8 percent
Answer: 3%
Explanation:
To calculate the real interest rate, it should be noted that the inflation rate is needed and this can be calculated using the consumer price index as:
= [(126-120)/120] × 100
= 6/120 × 100
= 5%
Real interest rate will now be:
= Nominal Rate - Inflation Rate
= 8% - 5%
= 3%
Bonita Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 18% of sales. The income statement for the year ending December 31, 2014, is as follows.
BONITA BEAUTY CORPORATION
Income Statement For the Year Ended December 31, 2014
Sales $75,000,000
Cost of goods sold
Variable $31,500,000
Fixed 8,610,000 40,110,000
Gross margin $34,890,000
Selling and marketing expenses
Commissions $13,500,000
Fixed costs 10,260,000 23,760,000
Operating income $11,130,000
The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 8% and incur additional fixed costs of $7,500,000.
Under the current policy of using a network of sales agents, calculate the Bonita Beauty Corporation
Answer: $56,040,000
Explanation:
Here is the question:
1.Under the current policy of using a network of sales agents, calculate the Bonita Beauty Corporation's break-even point in sales dollars for the year.
Sales = $75,000,000
Less: variable cost = $75,000,000 + ($75,000,000 × 8%) = $31,500,000 + $6,000,000 = $37,500,000
Contribution margin = $37,500,000
Fixed cost = 10,260,000 + 10,260,000 + 7,500,000 = $28,020,000
Operating income = $11,130,000
Contribution margin = 0.5
Break even point in sales will now be:
= Fixed cost/contribution margin ratio
= $28,020,000/0.5
= $56,040,000
CAM charges for retail leases in a shopping mall must be calculated. The retail mall consists of a total area of 2.8 million square feet, of which 800,000 square feet has been leased to anchor tenants that have agreed to pay $2 per rentable square foot in CAM charges. In-line tenants occupy 1.3 million square feet, and the remainder is a common area, which the landlord believeswill require $8 per square foot to maintain and operate each year. If the owner is to cover total CAM charges, how much will in-line tenants have to pay per square foot?
Answer:
$3.08 per square foot
Explanation:
Calculation for how much will in-line tenants have to pay per square foot
First step is to find the common area
Common area = 2,800,000−800,000−1,300,000 Common area= 700,000
Second step is to find Common area operating costs
Common area operating costs = 700,000×8
Common area operating costs= $5.6 million
Third step is to find the Operating costs charged to in-line tenants
Operating costs charged to in-line tenants = 5,600,000−800,000×2
Operating costs charged to in-line tenants = 4,000,000
Last step is to calculate the In-line CAM charges using this formula
In-line CAM charges=Operating costs charged to in-line tenants -In-line tenants square feet
Let plug in the formula
In-line CAM charges = 4,000,000 ÷ 1,300,000
In-line CAM charges= $3.08
Therefore the amount that in-line tenants have to pay per square foot will be $3.08 per square foot.
You pay your neighbor $100 in exchange for the used washing machine she is selling. Your neighbor puts that $100 into her pocket and takes her family out to the movies and a nice dinner at the end of the week. She still has $20 left after this outing and decides to put the remaining $20 into her savings account. This is an example of:
Answer:savings
Explanation:saves the rest of the money where she can reuse it
3. Identify TWO possible suitable sources of external finance Chris could consider, if the local bank
manager refuses to give him a loan for purchasing a new van for his business. (10 marks)
Please help
Answer:
Hire Purchase
Loans from friends
Explanation:
Hire purchase
A hire purchase (HP) , is also called an installment plan, it is is an financing contract whereby a customer agrees to acquire an asset by paying an initial deposit and repays the balance of the price plus interest on installment bases over a period of time .
Loans from friends
These are loans received from friends which are mostly interest free
31. Which one is not the barriers of Enterpreneurship:
(A) Lack of technical skills
(B) Political instability
(C) Technical knowledge
(D) Time pressure and distractions
Answer:
d
Explanation:
I think so, I'm not sure
Apply What You’ve Learned - Managing Credit Cards and ConsumerLoans
Scenario: You are 30 years old, married, have two children, and household income (take-home pay) of$3,500 per month. Your credit and consumer debt is as follows:_______.
• Car loan, 6% interest rate, $10,000 balance, $295 per month
• Department store card, 28% interest rate, $600 balance, minimum payment 5% of balance
• Discover Card, 12% interest rate, $2,000 balance, minimum payment 2% of balance
• VISA Card, 13% interest rate, $3,000 balance, minimum payment 2% of balance
• MasterCard 1, 14% interest rate, $4,000 balance, minimum payment 2% of balance
• MasterCard 2, 14% interest rate, $0 balance, minimum payment 2% of balance
• Gasoline card, 21% interest rate, $300 balance, minimum payment 5% of balance
Assume all credit cards will assess a $35 late fee and ongoing penalty interest of 8% above the currentrate if you miss a payment. Your recent VISA card statement came with a blank cash advance check(for up to $10,000) with terms of 23.99% APR and a fee of 3% if you use it. Your recent MasterCard 2statement came with a balance transfer oFer (up to $4,000) with no fee and 0% APR for 12 months,after which the normal interest rate applies. You recently found an incorrect amount charged on yourVISA card from a store you frequent often. You’d like to come up with a plan to eliminate all of yourcredit card debt.
In general, is it a good idea to make only minimum payments on your credit cards?
Yes, you can invest the money saved each month to earn interest.
No, it will cause your interest rate to go up.
No, the small payment requirement is mathematically guaranteed to keep you in debt for manyyears.
Yes, this allows you more ±exibility in your cash budget.
Assuming you have $1,500 in your budget this month with which to pay down your credit cards, howmuch should you pay on each card?
CardInterestrateOutstandingRequired minimumRecommendedbalancepayment(%)payment($)debtrepaymentamount
store card
Discover Card12%2,0008%
VISA Card13%3,00010%
MasterCard 114%4,0008%
MasterCard 214%010%
Gasoline card21%30015%
Total$9,900$1,500
Answer:
1) In general, is it a good idea to make only minimum payments on your credit cards?
No, the small payment requirement is mathematically guaranteed to keep you in debt for many years.All you have to do is analyze the interest rates charged by the credit card companies and it is really difficult for any investment to match those interest rates.
2) Assuming you have $1,500 in your budget this month with which to pay down your credit cards, how much should you pay on each card?
I would start with the cards that charge the highest interest rates. I would pay the full balance of the department store card and the gasoline card = $600 + $300 = $900
Since I have $600 left, I would then pay the minimum payments for the cards that charge the least interest rates. I would pay $40 to Discover card and $60 to VISA.
The remaining $500 would be used to pay MasterCard 1 card and lower its balance.
Consider a simple example economy where there are two goods, coconuts and restaurant meals (coconut-based). There are two firms. A coconut producer collects and sells 10 million coconuts at $2.00 each. The firm pays $5 million in wages, $0.5 million in interest on an old loan, and $1.5 million in taxes to the government. We also know that 4 million coconuts are sold to the public for consumption, and 6 million coconuts are sold to the restaurant firm, which uses them to prepare meals. The restaurant sells $30 million in meals. The restaurant pays $4 million in wages and the government $3 million in taxes. The government supplies security and accounting services and employs only labor, and government workers are paid $5.5 million, collected in taxed by the government. Finally, consumers pay $1 million in taxes to the government in addition to the taxes paid by the two firms.
Required:
a. Compute GDP for this simple economy using the product approach.
b. Compute GDP for this simple economy using the expenditure approach.
c. Compute GDP for this simple economy using the income approach.
Answer:
1) GDP using product Approach ; Market value of all goods and services produced
= Coconut + Restaurant meal
= 10 million*$2 + ($30 million - $6 million*$2) as 6 million coconuts are sold to restaurant as raw materials so to avoid double counting.
= $20 million + $30 million - $12 million
= $38 million
2) Expenditure Approach : Consumption + Investment + Government Expenditure + Net Exports
= $4 million * $2 + $30 million + $5.5 million
= $8 million + $30 million + $5.5 million
= $43.5 million
3) Income Approach : Wages + Rent + Interest + Profit
= $5 million + $0.5 million + $1.5 million +$3 million + $4 million + $1 million
= $15 million
Consider an economy described by the following equations:
Y=C+I+G
C=120+0.8×(Y−T)
I=500−50×r G=150
T=125
where Y is GDP, C is consumption, I is investment, G is government purchases, T is taxes, and r is the interest rate. If the economy were at full employment (that is, at the natural rate of output), GDP would be $2,850.
Identify the equation(s) each of the following statements describes.
a. It is a function of disposable income.
b. It depends on the interest rate.
The marginal propensity to consume in this economy is:____________ .
Suppose the central bank's policy is to adjust the money supply to maintain the interest rate at 3%, so r = 3. When the interest rate is 3%, GDP is __________$ .
GDP at an interest rate of 3% is the full-employment level.
a. True
b. False
Assuming no change in monetary policy, (a decrease, an increase) in government purchases by ____ would restore GDP to the full-employment level. (Note: Assume that such change in fiscal policy has no crowding-out effect.) Assuming no change in fiscal policy, (a decrease. an increase) in the interest rate by ___ would restore GDP to the full-employment level.
Answer:
Consumption c is a function of disposable income
Investment I is a function of interest rate
Marginal propensity to consume equals 0.8
If this 3, I = investment
= 500-(3*50)
= 500-150
= 350
We have Y= C+I+G
Y = 120+0.8(Y-125)+350+150
Y = 120+0.8Y-100+350+150
Y-0.8Y = 120-100+350+150
0.2Y = 520
Y = 520/0.2
Y = 2600
GDP and interest rate falls below full employment
If there is no change in monetary policy an increase in government purchases by 50dollars takes gdp back to full employment
If no change in fiscal policy when interest rate decreases by 1.4% God goes back to full employment.
Three workers each take home two packs of Post-It notes at a cost of $.67 per pack.
Answer:
$ 4.02
Explanation:
Take two packs ×3 and it = 6 then take 6 × 67 and you get $4.02
Producers of snack foods (such as candy bars or potato chips) are most likely to use a(n) _____________ distribution strategy for their products.
Answer:
A.intensive
Explanation:
Products such as chocolate bars and chips fit the classification of non-durable consumer goods, that is, those that are produced for immediate consumption.
Its characteristics involve meeting the needs of the final consumer periodically, generally they are low-cost products that need quick replacement to meet the high demand for these non-durable products.
Therefore, the best strategy for the distribution of non-durable products is the intensive strategy, making it available in different places with easy access to the consumer and with high replacement.
The adjusted trial balance of Gary Cooper Co. as of December 31, 2014, contains the following.
GARY COOPER CO.
ADJUSTED TRIAL BALANCE
DECEMBER 31, 2020
Debit Credit
Cash $20,892
Accounts Receivable 8,340
Prepaid Rent 3,700
Equipment 19,470
Accumulated Depreciation-
Equipment $6,315
Notes Payable 7,120
Accounts Payable 6,892
Common Stock 21,420
Retained Earnings 12,730
Dividends 4,420
Service Revenue 13,010
Salaries and Wages Expense 8,260
Rent Expense 2,154
Depreciation Expense 251
Interest Expense 189
Interest Payable 189
$67,676 $67,676
Instructions:
(a) Prepare an income statement.
(b) Prepare a statement of retained earnings.
(c) Prepare a classified balance sheet.
Answer: See attachment
Explanation:
An income statement is sometimes referred to as the profit and loss account. It should be noted that it shows the revenue and the expenses that are incurred by a particular company for a certain year.
With regards to the questions above, check the attachments for the solution.
In both the United States and France, the demand for haircuts is given by QD=300−10P . However, in the United States, the supply is given by QS=−300+20P , while in France, the supply is given by QS=−33.33+6.67P .
Required:
a. What are the equilibrium prices and quantities of haircuts in the two countries?
b. What are the new equilibrium prices and quantities of haircuts in the two countries?
Answer:
a. P = 20 and Q = 100 in the United States; and also P = 20 and Q = 100 in France.
b. P = 23.33 and Q = 166.70 in the United States; and P = 26 and Q = 140 in France.
Explanation:
Note: The part b of the requirement is not complete. The entire question is therefore represented with the complete pat b before answering the question as follows:
In both the United States and France, the demand for haircuts is given by QD=300−10P . However, in the United States, the supply is given by QS=−300+20P , while in France, the supply is given by QS=−33.33+6.67P .
Required:
a. What are the equilibrium prices and quantities of haircuts in the two countries?
b. Suppose that the demand for haircuts in both countries increases by 100 units at each price, so that the new demand is QD = 400 - 10P. What are the new equilibrium prices and quantities of haircuts in the two countries?
The explanation to the answers is now provided as follows:
a. What are the equilibrium prices and quantities of haircuts in the two countries?
In economics, an equilibrium occurs at point where the quantities demanded is equal to the quantities supplied.
Let Q denotes equilibrium quantity and P denotes equilibrium price, the equilibrium prices and quantities of haircuts in the two countries can therefore be calculated as follows:
In the United States
QD =300 − 10P
QS= −300 + 20P
Since at equilibrium, QD = QS, we can therefore solve for P by equating the two equations above as follows:
300 - 10P = −300 + 20P
300 + 300 = 20P + 10P
600 = 30P
P = 600 / 30
P = 20
To obtain equilibrium quantity, we substitute P = 20 into any QD and QS since at equilibrium QD = QS. Using QD, we have:
Q = 300 – 10(20)
Q = 300 – 200
Q = 100
Therefore, P = 20 and Q = 100 in the United States.
In France
QD = 300 − 10P
QS= −33.33 + 6.67P
Since at equilibrium, QD = QS, we can therefore solve for P by equating the two equations above as follows:
300 - 10P = −33.33 + 6.67P
300 + 33.33 = 6.67P + 10P
333.33 = 16.67P
P = 333.33 / 16.67
P = 20
To obtain equilibrium quantity, we substitute P = 20 into any QD and QS since at equilibrium QD = QS. Using QD, we have:
Q = 300 – 10(20)
Q = 300 – 200
Q = 100
Therefore, P = 20 and Q = 100 also in France.
b. Suppose that the demand for haircuts in both countries increases by 100 units at each price, so that the new demand is QD = 400 - 10P. What are the new equilibrium prices and quantities of haircuts in the two countries?
In the United States
QD = 400 − 10P
QS= −300 + 20P
Since at equilibrium, QD = QS, we can therefore solve for P by equating the two equations above as follows:
400 - 10P = −300 + 20P
400 + 300 = 20P + 10P
700 = 30P
P = 700 / 30
P = 23.33
To obtain equilibrium quantity, we substitute P = 20 into any QD and QS since at equilibrium QD = QS. Using QD, we have:
Q = 400 – 10(23.33)
Q = 400 – 233.30
Q = 166.70
Therefore, P = 23.33 and Q = 166.70 in the United States.
In France
QD = 400 − 10P
QS= −33.33 + 6.67P
Since at equilibrium, QD = QS, we can therefore solve for P by equating the two equations above as follows:
400 - 10P = −33.33 + 6.67P
400 + 33.33 = 6.67P + 10P
433.33 = 16.67P
P = 433.33 / 16.67
P = 25.99 = 26
To obtain equilibrium quantity, we substitute P = 20 into any QD and QS since at equilibrium QD = QS. Using QD, we have:
Q = 400 – 10(26)
Q = 400 – 260
Q = 140
Therefore, P = 26 and Q = 140 in France.
1. Accrual accounting is used by the vast majority of companies. *
O
True
O False
Answer:
True
Explanation:
The accrual accounting system is one of the two methods of reporting or recording income and expenses. The other way is the cash system.
In the accrual method, income and expenses are accounted for when they were earned or incurred regardless of whether money changed hands. Sales are reported when goods are delivered, and the invoice is issued even if the customer has not paid.
The accrual system is the standard method of operating for many businesses, big and small. The accrual method matches revenue and income with the time of their respective economic events. The general accounting principles recommend the accrual accounting system for both the private and public sectors.
For each transaction,
1. Analyze the transaction using the accounting equation.
2. Record the transaction in journal entry form
3. Post the entry using T-accounts to represent ledger accounts.
Use the following (partial) chart of accounts—account numbers in parentheses: Cash (101); Accounts Receivable (106); Office Supplies (124); Trucks (153); Equipment (167); Accounts Payable (201); Unearned Landscaping Revenue (236); D. Tyler, Capital (301); D. Tyler, Withdrawals (302); Landscaping Revenue (403); Wages Expense (601), and Landscaping Expense (696).
a. On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $7,000 in cash along with equipment having a $3,000 value.
b. On May 21, Elegant Lawns purchases office supplies on credit for $500.
c. On May 25, Elegant Lawns receives $4,000 cash for performing landscaping services.
d. On May 30, Elegant Lawns receives $1,000 cash in advance of providing landscaping services to a customer.
Answer:
1) I used an excel spreadsheet
2) a. On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $7,000 in cash along with equipment having a $3,000 value.
Dr Cash 7,000
Dr Equipment 3,000
Cr DeShawn Tyler, capital 10,000
b. On May 21, Elegant Lawns purchases office supplies on credit for $500.
Dr Office supplies 500
Cr Accounts payable 500
c. On May 25, Elegant Lawns receives $4,000 cash for performing landscaping services.
Dr Cash 4,000
Cr Landscaping Revenue 4,000
d. On May 30, Elegant Lawns receives $1,000 cash in advance of providing landscaping services to a customer.
Dr Cash 1,000
Cr Unearned Landscaping Revenue 1,000
3)
Cash (101)
debit credit
7,000
4,000
1,000
12,000
Office Supplies (124)
debit credit
500
Equipment (167)
debit credit
3,000
Accounts Payable (201)
debit credit
500
Unearned Landscaping Revenue (236)
debit credit
1,000
D. Tyler, Capital (301)
debit credit
10,000
Landscaping Revenue (403)
debit credit
4,000
The following income statement items appeared on the adjusted trial balance of Foxworthy Corporation for the year ended December 31, 2021 ($ in 000s): sales revenue, $22,600; cost of goods sold, $14,650; selling expense, $2,330; general and administrative expense, $1,230; dividend revenue from investments, $230; interest expense, $330. Income taxes have not yet been accrued. The company’s income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company’s income statement every year. The company’s controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2021 ($ in 000s). All transactions are material in amount.
1. Investments were sold during the year at a loss of $300. Foxworthy also had unrealized losses of $200 for the year on investments.
2. One of the company’s factories was closed during the year. Restructuring costs incurred were $2,000.
3. During the year, Foxworthy completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP regarding discontinued operations. The division had incurred operating income of $800 in 2016 prior to the sale, and its assets were sold at a
loss of $1,800.
4. Foreign currency translation gains for the year totaled $600.
Required:
Prepare Foxworthy's single, continuous statement of comprehensive income for 2021, including basic earnings per share disclosures. Two million shares of common stock were outstanding throughout the year.
Question attached
Answer and Explanation:
Please find attached
Wainwright Corporation owns and operates a wholesale warehouse.
The following transactions occurred during March 2016:
1. Issued 30,000 shares of capital stock in exchange for $300,000 in cash.
2. Purchased equipment at a cost of $40,000. $10,000 cash was paid and a note payable was signed for the balance owed.
3. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000.
5. Paid $5,000 in rent on the warehouse building for the month of March.
6. Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2016.
7. Paid $70,000 on account for the merchandise purchased in 3.
8. Collected $55,000 from customers on account.
9. Recorded depreciation expense of $1,000 for the month on the equipment.
Required:
1.Analyze each transaction and classify each as a financing, investing and/or operating activity.
A transaction can represent more than one type of activity.
Also indicate the cash effect of each, if any.
Activities:
Transaction Financing Investing Operating
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Answer:
Wainwright Corporation
Activities:
Transaction Financing Investing Operating Cash Effect
1. Common Stock Issue $300,000 $300,000
Transaction Financing Investing Operating Cash Effect
2. Equipment purchase $40,000 -$10,000
Transaction Financing Investing Operating Cash Effect
3. Inventory purchase $90,000
Transaction Financing Investing Operating Cash Effect
4. Credit Sales $120,000
Transaction Financing Investing Operating Cash Effect
5. Rent Expense $5,000 -$5,000
Transaction Financing Investing Operating Cash Effect
6. Prepaid Insurance $6,000 -$6,000
Transaction Financing Investing Operating Cash Effect
7. Accounts Payable payment $70,000 -$70,000
Transaction Financing Investing Operating Cash Effect
8. Cash Receipt from customers $55,000 $55,000
Transaction Financing Investing Operating Cash Effect
9. Depreciation Expense $1,000 None
Explanation:
These transactions of Wainwright Corporation in March 2016 are classified as financing, investing, or operating activities. Some have cash effect, while others did not have any effect on the cash asset of the company. Some cash effects are negative, representing outflows while others are positive, representing inflows. The outflows are marked with the minus sign while the inflows are not marked. This analysis shows that every transaction can be classified into financing, investing, or operating activities according to the presentation of the statement of cash flows but not all have cash effects.
Mathias Corporation manufactures and sells wire rakes. The rakes sell for $20 each. Information about the company's costs is as follows.
Variable manufacturing cost per unit $6
Variable selling and administrative cost per unit 2
Fixed manufacturing overhead per month $300,000
Fixed selling and administrative cost per month 600,000
Required:
a. Determine the company's monthly break-even point in units.
b. Determine the sales volume (in dollars) required for a monthly operating income of $1,200,000.
c. Compute the company’s margin of safety if its current monthly sales level is $2,500,000.
d. Estimate the amount by which monthly operating income will increase if the company anticipates a $100,000 increase in monthly sales volume.
Answer:
a. 75,000 units
b. $1,700,000
c. 0.40 or 40 %
d. $60,000
Explanation:
Break-even point is the level of activity where a firm neither makes a profit nor a loss.
Break-even point (units) = Fixed Costs ÷ Contribution per unit
Where,
Contribution per unit = Unit Selling Price less Variable Costs per unit
= $20 - $6 - $2
= $12.00
Therefore,
Break-even point (units) = ($300,000 + $600,000) ÷ $12.00
= 75,000 units
Sales (dollars) to reach target profit = (Fixed Costs + Target Profit) ÷ Contribution Margin Ratio
Where,
Contribution Margin Ratio = Contribution ÷ Sales
= $12.00 ÷ $20.00
= 0.60
Therefore,
Sales (dollars) to reach target profit = ($300,000 + $600,000 + 1,200,000) ÷ 0.60
= $1,700,000
Margin of Safety = (Sales level - Break-even Sales level) ÷ Sales level
= ($2,500,000 - $1,500,000) ÷ $2,500,000
= 0.40 or 40 %
Calculation of Incremental Monthly Operating Income
Incremental Sales $100,000
Less Incremental Variable Costs (5,000 × $8) ($40.000)
Incremental Contribution $60,000
Less Incremental Fixed Costs $0
Incremental Operating Income $60,000
This activity is important because any business that offers multiple product lines to multiple market segments is faced with the task of making the product/market decisions and prioritizing those decisions. Products and market segments that are growing quickly and are very profitable should get more attention and resources than a product and market segment that does not show as much potential.
Once a marketing manager creates a market-product grid, they must select which segments to target. To do this, the marketing manager should use several criteria in assessing the different segments. Those criteria include: market size, expected growth, competitive position, cost of reaching the segment, and the compatibility with the organization's objectives and resources.
The goal of this exercise is to demonstrate your understanding of the market-product development process by analyzing a gift shop's markets and products.
Read the case below and then answer the questions that follow as you consider its markets and product offerings.
A small local gift shop recently marked its 25th anniversary of being in business. Over that time, the owners have continually changed the products sold in its store to reflect changes in the market. From the early days of selling small gift-type items such as figurines and collectibles, the store now offers a more eclectic mix of merchandise that includes Vera Bradley purses and inexpensive jewelry, as well as items that could be classified as "gift-type" products and merchandise that is best described as "collectibles."
However, the demographics of the store's market, as well as the needs of that market, seem to be changing. There has been an influx of younger customers (20s and 30s) into the area, which has brought the average age of the area down by 9.8 years. This rapidly growing segment doesn't seem interested in buying the same collectibles that their parents bought. Many older residents (60s and 70s) have been leaving the area for retirement. The older customers are still buying the collectibles, but are also buying gifts for children and grandchildren for holidays and special occasions. Indeed, while sales of merchandise aimed at the younger customers have grown 30 percent, sales to the older crowd have been flat. And the younger group has now passed the older segment in terms of the size of the population. While there are other stores in the area selling similar merchandise, this gift shop has managed to get an exclusive on the Vera Bradley line, which has been popular with the younger customers. The owners of the gift shop are considering which market segment should be the focus of their attention and limited resources. This is an especially critical decision because of the limited space in the store and the need to add fixtures for carrying some of the collectible items that are coming on the market.
Based on the limited information in the case, which market segment is larger?
a) the over-80 segment
b) all segments are the same size
c) the 60s and 70s segment
d) the 20s and 30s segment
Answer:
d) the 20s and 30s segment
Explanation:
The case clearly states "And the younger group has now passed the older segment in terms of the size of the population."
Besides the fact that there are more younger people than older people in the area, the demographic of the store's customers is changing also: "... sales of merchandise aimed at the younger customers have grown 30 percent, sales to the older crowd have been flat.".
We can imply that the store's largest market segment is young people in their 20s and 30s.
Prepare a bank reconciliation as of October 31 from the following information:
a. The October 31 cash balance in the general ledger is $806.
b. The October 31 balance shown on the bank statement is $350.
c. Checks issued but not returned with the bank statement were No. 462 for $24 and No. 483 for $42.
d. A deposit made late on October 31 for $433 is included in the general ledger balance but not in the bank statement balance.
e. Returned with the bank statement was a notice that a customer's check for $80 that was deposited on October 25 had been returned because the customer's account was overdrawn.
f. During a review of the checks that were returned with the bank statement, it was noted that the amount of Check No. 471 was $65 but that in the company's records supporting the general ledger balance, the check had been erroneously recorded as a payment of an account payable in the amount of $56.
Answer:
Bank Reconciliation Statement as of October 31
Particulars Amount Particulars Amount
Balance as per bank $350 Balance as per books $806
Add: Late deposit $433 Less: Returned checks $80
Less: Outstanding check $66 Less: Error recordings $9
($24+$42) ($65-$56)
Reconciled Balance $717 Reconciled Balance $717
Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2018. Edison purchased the equipment from International Machines at a cost of $139,107.
Related Information:
Lease term 2 years (8 quarterly periods)
Quarterly rental payments $18,000 at the beginning of each period
Economic life of asset 2 years
Fair value of asset $139,107
Implicit interest rate 4% (Also lessee’s incremental borrowing rate)
Required:
Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2019. Edison’s fiscal year ends December 31.
Answer:
Amortization table
Opening liability Installments Interest Principal payment Closing liability
139,108 18000 1211 16788.92498 122,319
122,319 18000 1043 16956.81423 105,362
105,362 18000 873 17126.38238 88,235
88,235 18000 702 17297.6462 70,938
70,938 18000 529 17470.62266 53,467
53,467 18000 354 17645.32889 35,822
35,822 18000 178 17821.78218 18,000
18,000 18000 0 0 0
Bristo Corporation has sales of 1,750 units at $40 per unit. Variable expenses are 30% of the selling price. If total fixed expenses are $39,000, the degree of operating leverage is:
Answer:
1,750=$40=1,750×40=70-30÷100×39,000=58,3
Explanation:
is total cost of production can be fixed cost +variable cost
Answer:
degree of operating leverage= 4.9
Explanation:
To calculate the degree of operating leverage, we need to use the following formula:
degree of operating leverage= Total contribution margin / operating income
Total Contribution margin= 1,750*(40*0.7)= $49,000
Operating income= 49,000 - 39,000= $10,000
degree of operating leverage= 49,000/10,000
degree of operating leverage= 4.9
1. Rosa Green estimates the cost of future projects for a large contracting firm. Rosa uses precisely the same techniques to estimate the costs of every potential job and formulates bids by adding a standard profit markup. For some companies, to which the firm offers its services, there are no competitors also seeking their business, so Rosa's company is almost certain to get these companies as clients. For these jobs, Rosa finds that her cost estimates are right, on average. For jobs where competitors are also vying for the business, Rosa finds that they almost always end up costing more than she estimates.
a. True
b. False
2. Rosa is less likely to win the jobs where she underestimates the costs, causing her to experience the winner's curse.
a. False
b. True
Answer:
1) a. True
Rosa is almost always right when she knows that her company is a monopoly, i.e. has no competition, but is generally wrong when her company has to compete with other contractors. It is simple, a monopolist can decide which markup percentage to use, and can use a really high one, but when competition exists, markups are not so high and profits not so abundant. That is why she almost always gets it wrong when having to deal with other competitors.
2) a. False
The winner's curse usually happens when someone wins a bid over some contract or asset, but then they realize that the actual price of the contract or asset was lower than the bid. E.g. in an auction, two people are fighting over to see who buys an antique car which increases the price of the car way beyond the real market value. But it can also happen to a company that offers very low prices, and then after they won a contract, cannot perform properly because their actual costs are higher.
When a company makes an offer, they are certain about the price of the contract and they should know the value of the services or goods that they are offering. If Rosa underestimates her costs, and prepares her offer using unrealistically low costs, then she will probably win the bid but end up losing money.
Question 7
5 pts
(03.02 MC)
Gina made a down payment on a motorcycle. What incentive did she have for making a down payment?
O A tax break
O A higher loan rate
O A less secure loan
O A reduced time in debt
Because Gina made a down payment on a motorcycle, an incentive that she have for making such down payment is a reduced time in debt.
What do we mean by down payment?Basically, a down payment refers to the cash that the buyer pays upfront in a transaction and other large purchases. These payment are typically a percentage of the purchase price and can range from as little as 3% to as much as 20%
Here, she intends to purchase that motorbike on credit and by making a down-payment, she is reducing the amount she needs to borrow to buy the bike. So, a reduced loan amount means that Gina will require less to repay which implies that the interest to be paid will reduce.
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