A company issues a callable (at par) ten-year, 6% coupon bond with annual coupon payments. The bond can be called at par in one year after release or any time after that on a coupon payment date. On release, it has a price of $104 per $100 of face value. What is the yield to worst of this bond when it is released

Answer:

= $195,486.67

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

Cash flow in year 0 = $-305,000

Cash flow each year from year 1 to 6 = $105,000

I = 7%

NPV = $195,486.67

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

Answer:

1.597

Explanation:

The computation of the factor beta using the one-factor arbitrage pricing model is shown below:

As we know that

= (Expected rate of return - risk-free rate of return) ÷ (market rate of return-risk-free rate of return)

= (17.61% - 3.68%) ÷ (12.4% - 3.68%)

= 1.597

We simply applied the above formula to determine the factor beta and the same is to be considered

Answer:

(a) $100.00

(b) $95.45

(c) $97.22

(di) $95.24

(dii) $90.91

(diii) $92.59

Explanation:

Brothers Grimm corporation is responsible for the manufacturing of gingerbread houses. During a one year period, they are expected to pay a dividend of $5 and to sell each shares for $100. The share value for different safe interests is calculated as follows

a) If the safe interest is 5%, then the share value for today is

= ( 5+100)/( 1+5/100)

= 105/ ( 1+0.05)

= 105/1.05

= $100.00

b) If the safe interest is 10%, the share value for today would be

= (5+100)/(1+10/100)

= 105/( 1+0.1)

= 105/1.1

= 95.454

= $95.45( to 2 decimal places)

c) If the safe interest is 5% and the risk premium is 3%, then the share value for today is

= (5+100)/(1+(5+3)/100)

= 105/( 1+8/100)

= 105/(1+0.08)

= 105/1.08

= $97.222

= $97.22 (to 2 decimal places)

d) Since Grimm is not expected to pay dividend, the share values for each safe interest can be calculated as follows:

i) If the safe interest is 5% and there is no payment of dividend, then the share value for today is

= 100/( 1+5/100)

= 100/( 1+0.05)

= 100/1.05

= $95.238

= $95.24 ( to 2 decimal places)

ii) If the safe interest is 10% and there is no payment of dividend, then the share value for today is

= 100/( 1+10/100)

= 100/( 1+ 0.1)

= 100/1.1

= $90.909

= $90.91 ( to 2 decimal places)

iii) If the safe interest is 5% and the risk premium is 3% with no payment of dividend, the share value for today is calculated as

= 100/(1+8/100)

= 100/(1+0.08)

= 100/1.08

= $92.592

= $92.59 ( to 2 decimal places)

Share valuation is done based on quantitative techniques and the value of a share will vary depending on market demand and supply.

Valuation of shares is a process of knowing the value of a company's shares. The stock price of listed companies trading publicly can be easily identified.

The share value for different safe interests is calculated as follows

a) If the safe interest is 5%, then the share value for today is

[tex]=\frac{ ( 5+100)}{1+\frac{5}{100}}\\\\= \dfrac{105}{( 1+0.05)} \\\\=\dfrac{105}{1.05}\\\\= \$100.00[/tex]

b) If the safe interest is 10%, the share value for today would be:

[tex]=\frac{ ( 5+100)}{1+\frac{10}{100}}\\\\= \dfrac{105}{( 1+0.1)} \\\\=\dfrac{105}{1.1}\\\\= \$95.454[/tex]

c) If the safe interest is 5% and the risk premium is 3%, then the share value for today is

[tex]=\frac{ ( 5+100)}{1+\frac{(5+8)}{100}}\\\\= \dfrac{105}{( 1+0.08)} \\\\=\dfrac{105}{1.08}\\\\= \$97.222\\[/tex]

d) Since Grimm is not expected to pay a dividend, the share values for each safe interest can be calculated as follows:

i) If the safe interest is 5% and there is no payment of dividend, then the share value for today is $95.238.

ii) If the safe interest is 10% and there is no payment of dividend, then the share value for today is $90.91 ( to 2 decimal places)

iii) If the safe interest is 5% and the risk premium is 3% with no payment of dividend, the share value for today is calculated to be $92.59 ( to 2 decimal places).

Thus, the value of each share under the specified rate of dividend and risk premium is calculated.

To learn more about share value, refer to:

https://brainly.com/question/25818989

Answer:

DR Work in Progress Account $39,650

DR Factory Overhead Account $18,440

CR Wages Payable $58,090

(To record factory Labor Costs)

Workings

Work in Progress

Standard policy is to send the direct cost of Labor to the Work in Progress Account.

The Total direct cost of labor are all of the above except the Indirect cost.

= 3,460 + 2,870 + 5,260 + 5,950 + 3,630 + 2,380 + 16,120

= $39,650

Answer:

6.88%

Explanation:

cost of equity = (next period dividend / by price) + growth rate in dividends.

cost of debt = yield to maturity x (1 - tax rate)

WACC =  weight of debt x cost of debt + weight of equity x cost of equity.

cost of equity = ($0.25 / $40) + 0.07

= 0.07625

cost of debt = 0.09 x (1 - 0.4)

=0.054

WACC = ($40Billion x 0.07625) / 60billion + ($20 billion x 0.054) / $60billion

= 0.05083 + 0.018

= 0.0688 or 6.88%

Answer:

b. and a

Explanation:

Answer:

b. and

Explanation:

Remember, when foreign exchange rates between two currencies of particular country rises (appreciates), it effects is experienced most by the country whose currency hasn't risen. In this case therefore, this would make U.S. consumers pay more dollars for each McLaren car they import from the UK.

Also, to peg the pounds per dollar exchange rate at a level higher than the market clearing exchange​ rate, the UK government needs to buy pounds and sell dollars, because reducing the supply of pounds in the exchange market creates an opportunity for higher exchange prices.

Answer:

1.

                                             Debit               Credit    

31-Dec-10      

(a) Bad debt Expense A/c 85,230    

         To Allowance for Doubtful Accounts A/c 85,230    

(b) Bad debt Expense A/c 75,870    

         To Allowance for Doubtful Accounts A/c 75,870    

(c) Bad debt Expense A/c 80,085    

         To Allowance for Doubtful Accounts A/c 80,085

2.

Current Assets                                     Amount in $ Amount in $    

Account Receivables                                1,270,100    

Less: Allowance for doubtful accounts -85,230             1,184,870

Explanation:

1. In order to prepare the adjusting entry we would have to make the following calculations:

(a) Bad debts estimated =1.5% on Credit sales =$5682,000 *1.5% =$85,230    (b) Bad debts estimated =1% on Total sales =($5682,000 +$ 1905,000) *1% =$75,870  

(c ) Bad debts estimated =5% on year end receivables + Debit Balance =5% *1270100   +16580 =$80085

                                              Debit               Credit    

31-Dec-10      

(a) Bad debt Expense A/c 85,230    

         To Allowance for Doubtful Accounts A/c 85,230    

(b) Bad debt Expense A/c 75,870    

         To Allowance for Doubtful Accounts A/c 75,870    

(c) Bad debt Expense A/c 80,085    

         To Allowance for Doubtful Accounts A/c 80,085

2.  Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2010, balance sheet as follows:

Current Assets                                     Amount in $ Amount in $    

Account Receivables                                1,270,100    

Less: Allowance for doubtful accounts -85,230             1,184,870

Question:

Mr. Isaac is lending Gh₵20000 to Mr Hayford, to be repaid over five years. Mr Isaac would like to effect a policy on Mr Hayford’s life to cover the loan should Mr Hayford die. Mr Hayford would like to insure Mr Isaac’s life just in case he dies and the beneficiaries of his will insist that the loan be repaid early.

(a)​ What is the extent of insurable interest in each case?

(b) ​Consider any necessary action if the loan was later repaid earlier than anticipated what happens to the policy?

Answer:

To answer the question (a), one must first understand the concept of Insurable Interest.

A policyholder is said to have an insurable interest in a subject matter whenever the subject matter of a contract provides some financial gain to them and would lead to a financial loss if damaged, destroyed, stolen or lost.

For example, if I purchase a car for my use for $10,000, theft of or damage to that car will translate to financial loss to me. Therefore, I have an insurance interest in the car. This qualified me to Insure the car against loss arising from any form of insurable damage, or theft.

In question (a) there are two cases.

Case I - Mr Isaac would like to effect a policy on Mr Hayford’s life to cover the loan should Mr Hayford die.

Mr Isaac, in this case, has full insurable interest on Mr Hayfords life. If Mr Hayford dies,  Mr Isaac will be put in a financial loss to the tune of Gh₵20000.

Case II - Mr Hayford would like to insure Mr Isaac’s life just in case he dies and the beneficiaries of his will insist that the loan be repaid early.

Mr Hayford does an insurable interest on Mr Isaac's life. This insurable interest arises due to the possibility (as given in the question) that Isaacs family have the power to request for the loan earlier than it ought to have been paid.

The insurable interest arises because paying back the loan earlier than anticipated, may put Mr Hayford in financial distress and may lead to financial and economic loss. If the loan is meant for the running of his business, the business may fold up, and he may forfeit all the assets of the business.

In a real-life scenario, this can all be prevented by ensuring that the terms of the loan are documented in a contract which must be ratified by both parties. In this contract, clauses preventing the lender from cutting short the tenure of the loan can be inserted. This is less expensive and easier to administer.

(b) In each of the cases above, if the loan is paid back earlier than anticipated:

i. Under duress from the family: The provision of the policy protecting the interest of Mr. Hayford kicks in and makes good the loss to mitigate it and terminates afterwards.

ii. By volition by Mr Hayford: The policy terminates immediately as the insurable interest he has on Mr Isaac's life becomes extinct.

Cheers!

Answer:

Happy Home Environmental Cleaning

Demonstration of the first four steps in accounting cycle:

1) Analyzing each transaction:

A) Cash + $15,000 and Owners' Equity + $15,000

B) Building + $10,000 and Cash -$10,000

C) Office Equipment + $1,800 and Cash - $1,800

D) Cleaning Supplies + $2,800 and Accounts Payable + $2,800

E) Cash + $16,460 and Equity (Retained Earnings) + $16,460

F) Accounts Receivable + $2,200 and Equity (Retained Earnings) + $2,200

G) Cash - Wages $4,275, Utilities $985, Miscellaneous $195 and Equity (Retained Earnings) - $4,275, $985, $195

H) Cash - $950 and Liabilities - $950

I) Cash - $2,400, Prepaid Insurance + $1,200, and Equity (Retained Earnings) - $1,200

J) Cleaning Supplies -$760 and Equity (Retained Earnings) - $760

K) Cash - $2,000 and Equity - $2,000

2) Using double entry accounting to record transactions in the general journal:

A) Debit Cash Account $15,000

    Credit Owners' Equity $15,000

To record capital contributed to the business.

B) Debit Building $10,000

   Credit Cash Account $10,000

To record purchase of building.

C) Debit Office Equipment $1,800

    Credit Cash Account $1,800

To record purchase of office equipment.

D) Debit Cleaning Supplies $2,800

Credit Accounts Payable $2,800

To record purchase of cleaning supplies on account.

E) Debit Cash $16,460

Credit Service Revenue $16,460

To record cash sales of services.

F) Debit Accounts Receivable $2,200

    Credit Service Revenue $2,200

To record sale of services on account.

G) Debit Wages $4,275

    Debit Utilities $985

    Debit Miscellaneous $195

    Credit Cash Account  $5,455

To record payment of expenses.

H) Debit Accounts Payable $950

   Credit Cash Account $950

To record payment on account.

I) Debit Prepaid Insurance $2,400

  Credit Cash $12,400

To record insurance prepaid.

I) Debit Insurance Expense $1,200

  Credit Prepaid Insurance $1,200

To record insurance expense for the period.

J) Debit Cleaning Supplies Expense $760

   Credit Cleaning Supplies $760

K) Debit Drawings Account $2,000

Credit Cash Account $2,000

To record cash drawings.

3) Posting transactions to the Ledger accounts:

                                                        Debit          Credit        Balance

Cash Account:

Owners' Equity                              15,000                            15,000

Building                                                               10,000        5,000

Office Equipment                                                  1,800        3,200

Service Revenue                           16,460                            19,660

Wages                                                                   4,275       15,385

Utilities                                                                     985       14,400

Miscellaneous                                                          195       14,205

Accounts Payable                                                    950      13,255

Prepaid Insurance                                                 2,400      10,855

Drawings                                                                2,000       8,855

                                                      Debit          Credit        Balance

Owners' Equity:

Cash                                                                 15,000       15,000

                                                      Debit          Credit        Balance

Service Revenue Account:

Cash                                                                 16,460          16,460

Accounts Receivable                                        2,200          18,460

                                                      Debit          Credit        Balance

Building Account:

Cash                                            10,000                            10,000

                                                      Debit          Credit        Balance

Office Equipment Account:

Cash                                               1,800                            1,800

                                                      Debit          Credit        Balance

Wages Expense:

Cash                                              4,275                             4,275

                                                      Debit          Credit        Balance

Utilities Expense:

Cash                                                985                             985

                                                      Debit          Credit        Balance

Miscellaneous Expense:

Cash                                                195                               195

                                                      Debit          Credit        Balance

Cleaning Supplies:

Accounts Payable                         2,800                              2,800

Cleaning Supplies Expense                              760            2,040

                                                      Debit          Credit        Balance

Cleaning Supplies Expense:

Cleaning Supplies                         760                               760

                                                      Debit          Credit        Balance

Accounts Payable:

Cleaning Supplies                                             2,800         2,800

Cash                                               950                                1,850

                                                      Debit          Credit        Balance

Prepaid Insurance:

Cash                                              2,400                             2,400

Insurance Expense                                            1,200         1,200

                                                      Debit          Credit        Balance

Insurance Expense:

Prepaid Insurance                        1,200                             1,200

                                                      Debit          Credit        Balance

Drawing Account:

Cash                                              2,000                             2,000

4) Preparation of a Trial Balance:

                                                      Debit          Credit

Cash                                           $8,855

Owners' Equity                                              $15,000

Building                                      10,000

Office Equipment                        1,800

Cleaning Supplies                      2,040

Cleaning Supplies Expense          760

Accounts Payable                                              1,850

Service Revenue                                             18,660

Accounts Receivable                2,200

Prepaid Insurance                      1,200

Insurance Expense                    1,200

Wages                                        4,275

Utilities                                          985

Miscellaneous                               195

Drawings                                   2,000

Total                                       $35,510          $35,510

Explanation:

The steps in the accounting cycle are:

a) Analyzing each transaction from source documents, e.g. from Sales Invoice.  This shows the accounts affected and even the effect of the transaction on the accounting equation.

b) Journal Entries:  This involves using the doubt entry system of accounting to record transactions in the general journal.  This is the first accounting record.  It shows the accounts to be debited and the ones to be credited in the General Ledger.

c) General Ledger: Each transaction is posted to their respective accounts in the ledger, depending on journal entries.  Usually, two accounts are affected by each transaction, just like in the journal.

d) The fourth step is the extraction of a Trial Balance.  This is an accounting tool for checking that the first three steps have been completely and correctly followed.

Answer: True

Explanation:

The balanced scorecard perspective implies that the company has to satisfy their customer through the provision of quality products and services.

From the question, the target of increasing customers satisfaction is a good example of a performance target that is focused on customer's perspective of the balance scorecard. This means that the statement is true.

Answer:

Worst case = $28 per kilogram

Base case = $16 per kilogram

Best case = $10.50 per kilogram.

Explanation:

Based on the information and data given in slide 37 what i would expect to be the probability of it costing would tend to depend on the worst, base and best case scenarios once all the parameters given are been taken into account.

The unit of production will tend to cost dollar per Kilogram which means that Worst case will be $28 per kilogram ,Base case will be $16 per kilogram and Best case will be $10.50 per kilogram. .

Answer:

D

Explanation:

The self determination theory is a theory of motivation that examines extrinsic and intrinsic motivation.

The theory states that humans have innate needs. If this needs are satisfied, humans would grow and function optimally. They include :

1. Autonomy - the desire to be in charge of one's life. It is the feeling of intrinsic motivation, in which workers perceive their work to have meaning and perceive themselves to be competent, having an impact, and capable of self-determination

2. Relatedness - the desire to relate and interact with other people.

3. Competence. This is the desire to achieve mastery.

Autonomy is when

Answer:

b. empowerment.

Explanation:

This is explained to be a great act of giving someone power, this is in the form of more freedom and also rights to be productive. This gives the said person a natural flay; if seen in a business place or at place of work, it gives the worker or workers a sense of collaboration, making them share values, pull resources together and happily achieve goals that sharpen their psychs and make the company take great steps to greater heights as this empowerment is not only for the company, because it makes the said workers determined and also self competent in their working activities.

Answer:

Year 1 - $192,000

Year 2 - = $153,600

Year 3 - $122,880

Explanation:

Depreciation expense using the double declining method = Depreciation factor x cost of the asset

Depreciation factor = 2 x (1/useful life) = 2 x (1/10) = 0.2

Depreciation expense in the first year = 0.2 x $960,000 = $192,000

Book value at the beginning of year 2 = $960,000 - $192,000 = $768,000

Depreciation expense in year 2 = 0.2 x $768,000 = $153,600

Book value in year 3 = $768,000 - $153,600 = $614,400

Depreciation expense in year 3 = 0.2 x $614,400 = $122,880

I hope my answer helps you

Additional information:

The financial statements for Castile Products, Inc., are given below:

Castile Products, Inc.

Balance Sheet

December 31

 Assets            

Current assets:            

    Cash $23,000  

    Accounts receivable, net $250,000  

    Merchandise inventory $340,000  

    Prepaid expenses $8,000  

Total current assets $621,000  

Property and equipment, net $840,000  

Total assets $1,461,000  

Liabilities and Stockholders' Equity            

Liabilities:            

    Current liabilities $290,000  

    Bonds payable, 11% $300,000  

Total liabilities $590,000  

Stockholders’ equity:            

    Common stock, $10 par value $130,000  

    Retained earnings $741,000  

Total stockholders’ equity $871,000  

Total liabilities and equity $1,461,000  

Castile Products, Inc.

Income Statement

For the Year Ended December 31

Sales $2,140,000  

Cost of goods sold $1,230,000  

Gross margin $910,000  

Selling and administrative expenses $600,000  

Net operating income $310,000  

Interest expense $33,000  

Net income before taxes $277,000  

Income taxes (30%) $83,100  

Net income $193,900

Required:

Compute financial ratios as follows: 1. Earnings per share. (Round your answer to 2 decimal places.) 2. Dividend payout ratio. (Round your intermediate calculations to 2 decimal places. Round your final percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%).) 3. Dividend yield ratio. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%).) 4. Price-earnings ratio. (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.) 5. Book value per share. (Round your answer to 2 decimal places.)

Answer:

Explanation:

1. Earnings per share = net income / average shares outstanding = $193,900 / 13,000 stocks = $14.92

2. Dividend payout ratio = total dividends / net income = ($2.55 x 13,000) / $193,900 = $33,150 / $193,900 = 17.1%

3. Dividend yield ratio = dividend per share / market price per share = $2.55 / $70 = 3.6%

4. Price-earnings ratio = price per share / earnings per share = $70 / $14.92 = 4.7

5. Book value per share = (stockholders' equity - preferred stocks) / total number of stocks outstanding = $871,000 / 13,000 = $67

Answer: $7500

Explanation:

The following can be deduced from the question:

Accounts Receivable balance= $100,000

Allowance for Doubtful Accounts = $500

Net credit sales = $150,000.

Percentage-of-sales approach states that the amount of bad debt expense that is recognized by a company will be calculated as a percentage of the credit sales that are generated during the current accounting period.

Using the percentage of credit sales method, the ending balance in the "Allowance for Doubtful Accounts" will be:

= Net credit sales × percentage of credit sales uncollected in the past

= $150,000 × 5%

= $150,000 × 0.05

= $7500

Answer:

Building= $334,000

Fontaine's capital account= $217,000

Explanation:

From the question above

Fountain company and Monroe company come together to form a partnership.

Fontaine invests a building that has a market value of $334,000

The partnership takes charge for a $117,000 note secured by a mortgage on the building

Monroe invests $92,000 on cash and equipments

The cash and equipments has a market value of $67,000

Therefore the amount recorded for the building is $334,000

The amount recorded for Fontaine's capital account is

= $334,000-$117,000

= $217,000

Hence for the partnership the amounts recorded for the building and fontaine's capital account is $334,000 and $217,000 respectively.

Answer:

Option B ,$26.57 is correct

Explanation:

The cost of equity =Rf+Beta*Mrp

Rf is the risk free rate of 3.00%

Beta of equity is 1.20

Mrp is the market risk premium which is 5.50%

Cost of equity=3.00%+(1.20*5.50%)=9.60%

Stock price =present value of dividends+present value of terminal value

D1=$1.25*(1+22%)/(1+9.6%)^1=$ 1.39

D2=$1.25*(1+22%)^2/(1+9.6%)^2=$ 1.55  

D3=$1.25*(1+22%)^3/(1+9.6%)^3=$ 1.72  

D4=$1.25*(1+22%)^4/(1+9.6%)^4=$ 1.92  

terminal value=year 4 dividend/(r-g)

year 4 dividend=$1.25*(1+22%)^4= 2.77  

r is the cost of equity of 9.6%

g is the dividend afer year 4 which is 0%

terminal value= 2.77/(9.6%-0%)=$ 28.85  

present value of terminal value= 28.85/(1+9.6%)^4=$ 19.99  

Total present values=$ 1.39+$ 1.72+$ 1.92  +$ 1.92 +$ 19.99  =$26.58

According to the question Option B ,$26.57 is correct

When The cost of equity = [tex]Rf+Beta "/times" Mrp[/tex]

After that, Rf is the risk free rate of 3.00%

then Beta of equity is[tex]1.20[/tex]

After that Mrp is the market risk premium which is 5.50%

So that, Cost of equity 3.00%+(1.20*5.50%)=9.60% = 9.60%

Then The Stock price is = present value of dividends + present value of terminal value

Now, D1 is = $[tex]1.25 "/times" (1+22[/tex]%[tex])/(1+9.6[/tex]%)^[tex]1=$ 1.39[/tex]

Then, D2 is = $[tex]1.25 "/times" (1+22[/tex]%[tex])^2/(1+9.6[/tex]%)^[tex]2=$ 1.55[/tex]  

Then D3 is = $1.25 "/times" (1+22%)^3/(1+9.6%)^3=$ 1.72  

After that D4 is = $[tex]1.25*(1+22[/tex]%[tex])^4/(1+9.6[/tex]%)^[tex]4=$ 1.92[/tex]

Then the terminal value is = year 4 dividend/(r-g)

Then year 4 dividend is = $[tex]1.25×(1+22[/tex]%)^4= 2.77  

Then r is the cost of equity of 9.6%

Now, g is the dividend after year 4 which is 0%

After that terminal value is = 2.77/(9.6%-0%)=$ 28.85  

Then present value of terminal value is = [tex]28.85/(1+9.6[/tex]%)^4=$ 19.99  

Thus, The Total present values is =$ [tex]1.39+$ 1.72+$ 1.92  +$ 1.92 +$ 19.99[/tex]  =$26.57

Therefore Option B is $26.57

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Answer: Allowance for the doubtful accounts with a credit balance of $29,600

Explanation:

From the information that is provided in the question, the following can be deduced and the year-end financial statements should show:

Allowance for the doubtful accounts with a credit balance will be calculated as: the beginning allowance for the doubtful accounts + (the sales × Provision % ) - accounts receivable that were written off.

= $3,500 + ($1,110,000 × 3%) - $7,200

= $3500 + $33300 - $7200

= $36800 - $7200

= $29,600

Answer:

Stage 3

Explanation:

Strategic management is defined as formulation of strategies (decisions, actions, and measures) which are implemented to meet organisational goals and objectives.

Strategy formulation is a very important first step in strategy management. Lack of good strategy formulation can lead to organisational failure.

In the given scenario where motivation among employees is identified as a weakness, the action of modifying the reward system falls under the stage 3 of strategic implementation framework

Strategic implementation is concerned with how formulated strategy is implemented.

Answer:

The correct option is A, risk averse

Explanation:

Risk aversion is a situation where a person undertaking a business or an investor tries as much as possible to limit exposure to losses by taking drastic steps to ensure the losses do not materialize.

The publisher in this case is conscious of facing the lawsuit that could result from publishing story and has taken a precautionary measure by not even venturing into the publishing ,let alone a  lawsuit with substantial amount in damages rears its ugly head.

A risk seeking investor would go ahead with the publishing since success could bring a juicy income

Answer:

Depreciation expense/cost

For 2021 = $6200

For 2022 = $6700

Explanation:

Depreciation expense is the systematic allocation of an asset's cost over its estimated useful life. The depreciation expense is calculated using various methods. The units of activity method charges a depreciation based on the usage of the asset in a particular period as a proportion to its estimated useful life calculated in the form of total usage expected.

The formula for units of activity depreciation per period is,

Depreciation expense = [(Cost - Salvage value) / Total estimated life time activity of the asset]   *  Activity performed during the period

Depreciation expense-Taxi 10:

For 2021 = [(29000 - 200) / 144000]   *   31000  =  $6200

For 2022 = [(29000 - 200) / 144000]   *   33500  = $6700

Answer: The answer is provided below

Explanation:

The credit score is a number used by lenders to help them decide the likelihood of an individual to repay on time if the person is granted a credit card or a loan. The higher the scores, the likelihood that the person qualifies for credit cards and loans.

A person that has a poor credit score due to the amount of debt on credit card and instalment loans can improve his or her score by paying off the debt. When an individual pays of his or her debt, the person will have an improved credit score which can be used to apply for further loans.

Furthermore, such individual can also keep his or her balances low on the credit cards. A credit card with high debts doesn't represent the individual well when applying for a loan which will lead to a negative credit score.

Answer:

a. How much is the​ firm's net working​ capital?

net working capital = current assets - current liabilities = (cash + accounts receivable + inventory) - (accounts payable + short term notes payable) = ($16,540 + $9,580 + $6,450) - ($4,770 + $600) = $27,200

b. Complete an income statement and a balance sheet for Belmond.

                        Belmond Inc.

                   Income Statement

   For the Year Ended December 31, 202x

Sales                                                             $12,830

Cost of goods sold                                     ($5,790)

Gross Profit                                                      $7,040

Operating Expenses                                     ($1,330)

General and Administrative Expense                ($870)

Interest Expense                                               ($920)

Depreciation Expense                                       ($540)

Operating Income                                              $3,380

Taxes                                                             ($1,460)

Net Income                                                         $1,920

                        Belmond Inc.

                      Balance Sheet

   For the Year Ended December 31, 202x

ASSETS

Cash                                $16,540

Accounts Receivable         $9,580

Inventory                         $6,450

Building and Equipment      $122,110

Accumulated Dep.              ($34,370)

TOTAL ASSETS               $120,310

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts Payable                 $4,770

Short-Term Notes Payable   $600

Long-Term Debt              $55,230

Common Stock              $44,900

Retained Earnings                $14,810

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $120,310

c. If you were asked to respond to parts ​(a​) and ​(b​) as part of a training​ exercise, what could you tell your boss about the​ company's financial condition based on your​ answers?"

The financial condition of the company can be considered healthy, since its profit margin is almost 15%, although its debt to equity ratio is high = $60,600 / $59,710 = 101.5%. The company has too much debt, even though it makes enough money to pay its obligations.

Answer:

Larkspur Inc. will increase its truck account by:  $43,000.

Explanation:

Step I

To arrive at the above, we need to make the necessary additions and deductions:

Purchase Price = $44,000

Less cash discount of $4,200. Therefore, the final offer is

$44,000-$4,200 = $39,800.

Step II - Calculate the final value truck by applying Sales Tax

Final sales value amount plus sales tax

$39,800 + $2,200 = $ 42 000

Step III - Calculate Total cost to company by adding cost of insurance of the vehicle.

$ 42 000  + $1,000 = $ 43,000

Therefore the total cost of the truck the company is $43,000.

Cheers!

Answer:

40%

Explanation:

The markup percentage to the variable cost using the variable cost method can be obtained by dividing the addition of the target profit and total fixed cost by the total variable cost as follows:

Total fixed cost = Fixed overhead costs + Fixed selling and administrative costs = $120,000 + $50,00 = $170,000

The markup percentage to the variable cost = (Target profit + Total fixed cost) / Total variable cost = ($100,000 + $170,000) / $675,000 = $270,000 / $675,000 = 0.40, or 40%.

Therefore, the markup percentage to the variable cost using the variable cost method is 40%.

Answer:

The answer is A.

Explanation:

This system is known as Fractional Reserve Banking.

Fractional Reserve Banking is a banking system which allow banks to hold a fraction their customers' deposit as reserves. The rest not kept as reserves are used to make loans, thereby creating new money.

Central banks announce reserve requirements which banks within the jurisdiction must comply with.

Answer:

For question (1): 4. Verify whether there is only a fixed set of alternatives.

For question (2): 4. Conflict among team members would increase.

Explanation:

Managers involved in negotiation should always verify whether there is only a fixed set of alternatives.

It is ideal that when managers are making a negotiation and by extension decision-making, they should ensure there are one or more alternative options. A fixed set of alternatives would only mean they're absolutely liable to the other party, without any reasonable benefits to their organization in the event of a crisis with the deal.

Conflict among team members would increase if the project team did not have clear and commonly understood project goals.

As a rule and standard, it is necessary to ensure that team members share common understanding, aims, ideas and vision in order to achieve their project goals and objectives.

When team members are in sync, they're bound to collaborate and use collective intelligence to attain success.

Hence, to increase the level of trust, motivation level, and interdependency among team members, project managers should ensure they've clear and commonly understood project goals.

Answer:

Option B  

Explanation:

In simple words, vertical merger refers to the joining of the two separate entities that provide value to different level of supply chains. Such mergers are implemented by the entities to take advantage of realized synergies.

These mergers provide many benefits such as reduced cost or steady supply but the acquiring entity gets the burden to operate a separate entity and manage it.

Answer:

  $214,800

Explanation:

The amount paid is the sum of the amount declared and the difference in amounts payable.

  dividends paid = $209,800 +50,400 -45,400

  dividends paid = $214,800