Answer: Societal culture and norms
Explanation:
Based on the information given, the ethical factor that is illustrated by this example is "societal culture and norms".
Culture simply refers to the way of life with regards to certain group of people. It has to do with the ideas, attitudes and the values that such people have in the group.
With culture, one can be able to make a distinction between rights from wrongs. Therefore, Europeans believing it is unethical to invade someone's privacy and Americans are not nearly as protective of their right to privacy has to do with societal culture and norms.
g MM Proposition II with taxes: Group of answer choices reveals how utilizing the tax shield on debt causes an increase in the value of a firm. reaches the final conclusion that the capital structure decision is irrelevant to the value of a firm. supports the argument that the cost of equity decreases as the debt-equity ratio increases.
Answer:
reveals how utilizing the tax shield on debt causes an increase in the value of a firm.
Explanation:
According to the MM Proposition II with taxes, the value of a levered firm = Vu + tD
Where :
Vu = value of unlevered firm
tD = debt tax shield
In the presence of taxes, the value of a levered company is greater than that of the same company without debt with the same operating income.
Also, the WACC of a company with debt must be lower than that of an all equity company
Aunt Mabel promised to give you $9000 when you successfully complete your freshman year, $6000 when you successfully complete your sophomore year, $1000 when you successfully complete your junior year, and $8000 when you successfully complete your senior year. Aunt Mabel made this promise when you graduated from High School and let's assume you go directly to the University of Illinois and graduate in four years. Aunt Mabel expects the interest rates to be 5.250% during your freshman year, 2.500% during your sophomore year, 3.250% during your junior year, and 9.250% during your senior year. If Aunt Mable can predict interest rates accurately, she will deposit into her bank account $____________. (dollars, rounded to two places after the decimal)
Solution :
At every stage the formula used will be :
[tex]$\frac{\text{available balance}}{(1+\text{interest rate})}= \text{required bank balance}$[/tex]
After the junior year, Aunt Mabel's bank balance will be :
[tex]$=\frac{8000}{1.0925}$[/tex]
= $ 7,322.65
Aunt Mabel's bank balance after sophomore year will be :
7,322.65 + 1000 = $ 8,322.65
[tex]$=\frac{8,322.65}{1.0325} $[/tex]
= $ 8060.677
After the freshman year, bank balance of Aunt Mable's will be :
8060.677 + 6000 = $ 14,060.677
[tex]$=\frac{14,060.677}{1.0250} $[/tex]
= $ 14.0606
If Aunt Mabel can predict the interest rate with accuracy, she will have to deposit :
$ 14.0606 + $ 9000 = $ 9,014.06
[tex]$=\frac{9014.06}{1.0525}$[/tex]
= $ 8,565.241
If you still donate the $100,000 from the previous problem (investment made today), but ask the college to delay the scholarship payment so that the first scholarship payment is made 10 years from today, then how large will the annual payment be
Answer:
$5,920.98
Explanation:
The computation of the annual scholarship payment would be shown below:
Future value = Donated amount × (1 + rate of interest)^number of years
= $100,000 × (1 + 0.04)^10
= $148,024.43
Now the annual scholarship payment would be
= $148,024.43 × 0.04
= $5,920.98
Hence, the annual scholarship payment is $5,920.98
Carter Company has $800,000 of 6% preferred stock and $1,200,000 of common stock outstanding, each having a par value of $10 per share. No dividends have been paid or declared during the last two years, 2020 and 2019. As of December 31, 2021, the Board of Directors has decided to distribute $420,000 in cash dividends and needs help in determining the allocation between Preferred Stockholders and Common Stockholders. Assuming the preferred stock is noncumulative and nonparticipating, how much of the $420,000 will be allocated to Common Stockholders
Answer and Explanation:
The computation of the allocation done between the preferred and common stockholder is shown below
Given that
Total dividend for current year = $420,000
Less: preference dividend -$40,000 ($800,000 × 5%)
Balance for common stock $380,000
The $40,000 should be first distributed to the preference stockholder and the remaining would be allocated to the common stockholder
Division of work means that similar activities in an organization should be grouped together under one manager.
Answer:
True.
Explanation:
Division of work is the act of "dividing the work equally among a group of people."
When you listen with an intent to understand, you ________
a.
listen for your chance to get your point across
b.
are gaining factual information that you can later report to a manager
c.
seek to understand the other person, you don't interrupt, and you don’t make assumptions.
d.
are looking for a way to reframe the conversation
Answer:
C, it makes the most sense out of the other ones
Explain how each of the following is presented in a multiple-step income statement. Sale of marketable securities at a loss. Adjusting entry to create (or increase) the allowance for doubtful accounts. Entry to write off an uncollectable account against the allowance. Adjusting entry to increase the balance in the marketable securities account to a higher market value.
Answer:
Presentation of a Multiple-step Income Statement
1. Sale of marketable securities at a loss.
In the non-operating section of the income statement
2. Adjusting entry to create (or increase) the allowance for doubtful accounts.
In the operating section of the income statement
3. Entry to write off an uncollectible account against the allowance.
In the operating section of the income statement
4. Adjusting entry to increase the balance in the marketable securities account to a higher market value.
In other comprehensive income section of the income statement
Explanation:
The sale of marketable securities at a loss gives rise to a realized loss. This is recorded in the non-operating section of the income statement after the operating section. Items 2 and 3 are recorded in the operating section of the income statement, as they relate to the entity's normal operations. Item 4 refers to an unrealized gain. This is recorded in the other comprehensive income section just as unrealized losses. The other comprehensive income section shows the comprehensive income and expenses, which refer to changes in equity that originate from non-operating sources.
Steve Prince and Chelsy Stevens formed a partnership, dividing income as follows: Annual salary allowance to Prince of $139,200. Interest of 7% on each partner's capital balance on January 1. Any remaining net income divided to Prince and Stevens, 1:2. Prince and Stevens had $55,520 and $97,560, respectively, in their January 1 capital balances. Net income for the year was $240,000. How much is distributed to Prince and Stevens
Answer:
Amount distributed to Prince = $33,914.53
Amount distributed to Steven = $66,885.47
Explanation:
Prince’s interest on capital = Prince’s January 1 capital balances * 7% = $55,520 * 7% = $3,886.40
Stevens’ interest on capital = Stevens’ January 1 capital balances * 7% = $97,560 * 7% = $6,829.20
Net income balance = Net income - Annual salary allowance to Prince - Prince’s interest on capital - Stevens’ interest on capital = $240,000 - $139,200 - $3,886.40 - $6,829.20 = $90,084.40
Prince’s share of net income balance = Net income balance * (1 / 3) = $90,084.40 * (1 / 3) = $30,028.13
Stevens’ share of net income balance = Net income balance * (2 / 3) = $90,084.40 * (2 / 3) = $60,056.27
Therefore, the amount distributed to Prince and Stevens can now be calculated as follows:
Amount distributed to Prince = Prince’s interest on capital + Prince’s share of net income balance = $3,886.40 + $30,028.13 = $33,914.53
Amount distributed to Steven = Stevens' interest on capital + Prince’s share of net income balance = $6,829.20 + $60,056.27 = $66,885.47
Sandra Corporation has provided the following information for its most recent year of operation: Revenues earned were $90,000, of which $9,000 were uncollected at the end of the year. Operating expenses incurred were $40,000, of which $9,000 were unpaid at the end of the year. Dividends declared were $13,000, of which $6,000 were unpaid at the end of the year. Income tax expense is $19,000. What is the amount of net income reported on Sandra's income statement
Answer:
the net income that should be reported on the income statement is $31,000
Explanation:
The computation of amount of net income is shown below:
Revenue $90,000
Less Operating Expenses -$40,000
Profit Before Tax -$50,000
Less Taxes -$19,000
Net Income $31,000
Hence, the net income that should be reported on the income statement is $31,000
Two new software projects are proposed to a young, start-up company. The Alpha project will cost $530,000 to develop and is expected to have annual net cash flow of $60,000. The Beta project will cost $170,000 to develop and is expected to have annual net cash flow of $18,000. The company is very concerned about their cash flow. Calculate the payback period for each project. Which project is better from a cash flow standpoint
Answer: See Explanation
Explanation:
The payback period for both projects would be calculated as:
Alpha Project
Cost = $530,000
Annual net cash flow = $60,000
Payback period = Cash / Annual net cash flow
= $530,000 / $60,000
= 8.83
Beta Project
Cost = $170,000
Annual net cash flow = $18,000
Payback period = Cash / Annual net cash flow
= $170,000 / $18,000
= 9.4
We can see that Alpha Project is better as the payback period is lesser than Beta project
These are true or false!! Please help!!
1. A need is something that you desire to have because someone else has one.
2. Food, clothing, and shelter are examples of basic wants.
3. One of the problems in economics is that wants are unlimited.
4. Goods and services are produced through the use of economic resources.
5. There are only two kinds of economic resources: human and capital.
6. Labor is another name for human resources.
7. Some resources, such as clean air and water, are limited.
8. Scarcity is a problem that is faced by individuals and businesses but not by government
9. Economic decision making is important to businesses and governments but not to
individuals.
10. Economic decision making is a process requiring four important steps.
Answer:
I'm just going to write T-True n F)-False
1 F-
2 T
3 T
4 T
5 F-
6 T
7 T
8 T
9 F-
10 I'm sorry i don't know about this
Latvia and Estonia are two countries. Assume that currently there is no trade between them. Each country has 100 units of labor. Latvia produces fish, at a cost of 1 unit of labor per fish, and grain, at a cost of 2 units of labor per bushel. Estonia produces fish at a cost of 2 units of labor per fish, and grain at a cost of 3 units of labor per bushel. Both countries consume both fish and grain.a. True or False, the countries can both benefit if they can trade with each other?b. Circle any and all of the following which hold:i. Latvia will export fish if there is tradeii. Latvia will export grain if there is tradeiii. Estonia will export fish if there is tradeiv. Estonia will export grain if there is tradev. We do not have sufficient information to say what will be exported
Answer:
Assume that currently there is no trade between them. Each country has 100 units of labor. Latvia produces fish, at a cost of 1 unit of labor per fish, and grain.
Explanation:
Using the information presented above, determine the following: Determine EPS for Net Income ('x2) $_____________________ (Round your answer to the nearest whole cent. Example: if you determine EPS from Net Income to be $6.94724, round your answer to 6.95. If you determine EPS from Net Income to be $6.94321, round your answer to 6.94. Do not use dollar signs in recording your answer.)
Question Completion:
Income Before Taxes (from ongoing operations) $2,470,000
Income Tax Rate (’x2) 30%
5% Preferred Stock ($100 Par, 10,000 shares issued)
Common Stock ($1 par, 600,000 shares issued, 500,000 outstanding)
Answer:
The company's EPS is:
= 3.46
Explanation:
a) Data and Calculations:
Income Before Taxes (from ongoing operations) (’x2)= $2,470,000
Income Tax Rate (’x2) = (30% * $2,470,000) = $741,000
Net Income after taxes = $1,729,000
5% Preferred Stock ($100 Par, 10,000 shares issued) = $1,000,000
Common Stock ($1 par, 600,000 shares issued, 500,000 outstanding)
Outstanding common stock = $500,000
EPS (Earnings per share) = Net income after taxes/No. of outstanding shares
= $1,729,000/500,000
= $3.458
b) The earnings per share (EPS) equals Company A's net profit after taxes divided by the number of its outstanding common stock shares. Using the EPS, it indicates how much money Company A makes for each share of its stock. As a widely used metric, a potential stockholder of Company A can use it to estimate Company A's value when combined with the price per share.
Assume sales are $14,570, cost of goods sold is $3,820, depreciation expense is $410, interest paid is $730, selling and general expenses are $960, dividends paid are $1,170, and the tax rate is 21 percent. What is the addition to retained earnings
Answer:
Amount added to retained earnings $5,663.50
Explanation:
The computation of the addition to the retained earning is shown below:
Sales $14,570
Less: Cost of goods sold -$3,820
Less: Depreciation -$410
Less: Interest paid -$730
Less: Selling and administration expenses -$960
Profit Before Tax $8,650
Less: Tax at 21% -1,816.50
Profit After tax $6,833.50
Less: Dividend paid -$1,170
Amount added to retained earnings $5,663.50
Help!
Zeke had great fun as a kid running a lemonade stand, and his ideas helped his class reach their fundraising goal for the class trip last year. What career cluster might Zeke be interested in?
A. Information Technology
B. Human Services
C. Science, Technology, Engineering, and Mathematics
D. Marketing, Sales, and Service
Answer:
D
Explanation:
He was selling Lemonade
D is Marketing and sales so yeah it makes sense
8. Effective Yield. A US investor obtain British pounds when the pound is worth $1.50 and invest in a one year-money market security that provides a yield of 5 percent (in pounds). At the end f one year, the investor converts the proceeds from investment to dollars at the prevailing spot rate of $1.52 per pound. Calculate the effective yield.
Answer:
6.4%
Explanation:
money invest = $1.50 or 1£
interest earned = 1£ x 5% = 0.05£
total returns = 1.05£
now we convert them back to dollars = 1.05£ x $1.52/£ = $1.596
effective yield = (total return - initial investment) / initial investment = ($1.596 - $1.50) / $1.50 = 6.4%
Apr. 2 Purchased $4,600 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point.
3 Paid $300 cash for shipping charges on the April 2 purchase.
4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $600.
17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise.
18 Purchased $8,500 of merchandise from First Corp. with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination.
21 After negotiations, received from Frost a $500 allowance toward the $8,500 owed on the April 18 purchase.
28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.
Required:
Prepare journal entries to record the above transactions for a retail store. Assume a perpetual inventory system.
Answer:
Apr-02
Dr Purchase $ 4,600
Cr Accounts payable-Lyon $ 4,600
Apr-03
Dr Transportation - in $ 300
Cr Cash $ 300
Apr-04
Dr Accounts payable-Lyon $ 600
Cr Purchase returns & Allowances $ 600
Apr-17
Dr Accounts payable-Lyon $ 4,000
Cr Purchase discount$ 80
Cr Cash $ 3,920
Apr-18
Dr Purchase $ 8,500
Cr Accounts payable-Frist corp. $ 8,500
Apr-21
Dr Accounts payable-Frist corp. $ 500
Cr Purchase returns & Allowances $ 500
Apr-28
Dr Accounts payable-Frist $8,000
Cr Purchase discount$ 160
Cr Cash $7,840
Explanation:
Preparation of the journal entries to record the above transactions for a retail store. Assume a perpetual inventory system.
Apr-02
Dr Purchase $ 4,600
Cr Accounts payable-Lyon $ 4,600
(Being To record purchase merchandise from Lyon company )
Apr-03
Dr Transportation - in $ 300
Cr Cash $ 300
(Being To record shipping charges paid on above purchase )
Apr-04
Dr Accounts payable-Lyon $ 600
Cr Purchase returns & Allowances $ 600
(Being To record purchase return to Lyon company )
Apr-17
Dr Accounts payable-Lyon $ 4,000
($4,600 -$600)
Cr Purchase discount$ 80
{($4600 - $600)* 2% }
Cr Cash $ 3,920
($ 4,000 -$ 80 )
(Being To record cash paid to Lyon company for above purchase )
Apr-18
Dr Purchase $ 8,500
Cr Accounts payable-Frist corp. $ 8,500
(Being To record purchase merchandise from Frist corp. )
Apr-21
Dr Accounts payable-Frist corp. $ 500
Cr Purchase returns & Allowances $ 500
(Being To record received allowance on above purchase)
Apr-28
Dr Accounts payable-Frist $8,000
($8,500 -$500)
Cr Purchase discount$ 160
{($8,500 -$500)*2%}
Cr Cash $7,840
($ 8,000 -$ 160 )
(Being To record cash paid to Frist corp. for above purchase )
A firm has beginning retained earnings of $6,880 and ending retained earnings of $7,430. What is the amount of dividends paid if the firm earned a net income of $5,130
Answer:
the dividend paid is $4,580
Explanation:
The computation of the amount of the dividend paid is as follows:
As we know that
Ending retained earning balance = Beginning retained earning balance + net income - dividend paid
$7,430 = $6,880 + $5,130 - dividend paid
So, the dividend paid is $4,580
Journalize the transactions. ( This information relates to Cheyenne Real Estate Agency. Oct. 1 Stockholders invest $31,770 in exchange for common stock of the corporation. 2 Hires an administrative assistant at an annual salary of $42,720. 3 Buys office furniture for $3,740, on account.
Answer and Explanation:
The journal entry is given below:
Oct 1
Cash Dr $31,770
To Common stock $31,770
(Being exchange for the common stock is recorded)
Here cash is debited as it increased the asset and credited the common stock as it also increased the equity
Oct 2
No journal entry is required
Oct 3
Office furniture Dr $3,740
To Account payable $3,740
(Being office furniture purchased on an account)
Here office furniture is debited as it increased the asset and credited the account payable as it also increased the liabilities
Argo, a firm organizing adventure travel, has returns that vary with the economy. Argo predicts that there is a 20% probability of a strong economy, a 50% probability of a normal economy, and a 30% probability of a weak economy. Given a strong economy, Argo expects a 35% return, given a normal economy, Argo expects a 14% return, and given a weak economy, Argo expects to lose 20%. What is the expected return for Argo
Answer: 8%
Explanation:
The expected return is a weighted average of the returns given the probability of certain states of the economy:
= (Prob. of boom * return if boom) + (Prob. of normal * return if normal) + (Prob. of weak * return if weak)
= (20% * 35%) + (50% * 14%) + (30% * -20%)
= 0.07 + 0.07 - 0.06
= 8%
Answer:
it is 8% my dear friend
Explanation:
Parkman Sporting Goods is preparing its annual report for its 2021 fiscal year. The company’s controller has asked for your help in determining how best to disclose information about the following items: Required: Indicate whether the above items should be disclosed (A) in the summary of significant accounting policies note, (B) in a separate disclosure note, or (C) on t
Answer:
Entries disclosed in the summary of significant accounting policies note as the term implies, have to do with the accounting method a company uses to calculate certain metrics.
Entries that are not shown in the financial statements but are however important to know, will be put in a separate disclosure note.
1. A related-party transaction. B
Important but cannot be put into the financial statements so will go to a separate disclosure note.
2. Depreciation method. - A
Has to do with an accounting method used so will go to the significant accounting policies notes.
3. Allowance for uncollectible accounts. - C
Goes to balance sheet to reduce Accounts Receivables.
4. Composition of investments. - B
Another important information that does not go into financial statement so will go to separate disclosure.
5. Composition of long-term debt. - B
Important but not in financial statement. Separate disclosure.
6. Inventory costing method. - A
Shows accounting method used so will go to significant policies notes.
7. Number of shares of common stock authorized, issued, and outstanding. - C
Equity section of Balance sheet.
8. Employee benefit plans. - B
Important but not in financial statement. Separate disclosure.
Wildcat Corporation has a fiscal year-end of December 31. Please review the following transactions: On October 1, the insurance premium of $23,000 was paid for a one-year fire insurance policy. On June 30, the company advanced its chief financial officer $21,000; principal and interest at 7% on the note are due in one year. Equipment costing $71,000 was purchased at the beginning of the year for cash. Depreciation on the equipment is $14,200 per year. If the adjusting entries were not recorded, would net income be higher or lower and by how much
Answer:
S/n General Journal Debit Credit
1. Insurance Expense $5,750
{(23,000/12) * 3}
Prepaid Insurance $5,750
2. Interest Receivable $735
(21,000 * 7% * 6/12)
Interest Revenue $735
3. Depreciation Expense $14,200
Accumulated Dep. $14,200
Effect on Net Income
Net Income would be lower by:
==> ($5,750 - $735 + $14,200)
==> $19,215
Before prorating the manufacturing overhead costs at the end of 2016, the Cost of Goods Sold and Finished Goods Inventory had applied overhead costs of $57,600 and $21,000 in them, respectively. There was no Work-in-Process at the beginning or end of 2016. During the year, manufacturing overhead costs of $75,000 were actually incurred. The balance in the Applied Manufacturing Overhead was $78,600 at the end of 2016. If the under- or overapplied overhead is prorated between Cost of Goods Sold and the inventory accounts, how much will be the Cost of Goods Sold after the proration
Answer: $60238
Explanation:
First and foremost, we need to calculate the over applied overhead which will be the difference between the actual overhead and the applied overhead. This will be:
= $78600 - $75000
= $3600
Then, the portion allocated to the cost of goods sold will be:
= $3600 × $57600 /($57600 + $21000)
= $3600 × $57600/$78600
= $3600 × 0.7328
= $2638
Therefore, the cost of Goods Sold after the proration will be:
= $57600 + $2638
= $60238
Presented below is the income statement of Cowan, Inc.: Sales revenue $380,000 Cost of goods sold 225,000 Gross profit $155,000 Operating expenses 95,000 Income before income taxes 60,000 Income taxes 24,000 Net income $36,000 In addition, the following information related to net changes in working capital is presented: Debit Credit Cash $12,000 Accounts receivable 25,000 Inventories $19,400 Salaries payable (operating expenses) 8,000 Accounts payable 14,000 Income taxes payable 3,000 The company also indicates that depreciation expense for the year was $16,700 and that the deferred tax liability account increased $2,600. Instructions Prepare a schedule computing the net cash flow from operating activities that would be shown on a statement of cash flows: (a) using the indirect method. (b) using the direct method.
Answer:
NET CASH FLOW FROM OPERATING ACTIVITY INDIRECT METHOD
Cowan Inc.
Statement of cash flow (partial)
Indirect Method
Cash Flows from Operating Activities:
NET INCOME $36,000
Adjustment of non cash expenditure:
Depreciation $16,700
Operating profit before working capital changes $52,0700
ADJUSTMENTS FOR WORKING CAPITAL CHANGES:
INCREASE IN ACCOUNT RECEIVABLE ($25,000)
DECREASE IN INVENTORY $19,400
INCREASE IN ACCOUNT PAYABLE $14,000
DECREASE IN SALARY PAYABLE ($8,000)
DECREASE IN INCOME TAX PAYABLE ($3,000)
INCREASE IN DEFERRED TAX LIABILITY $2,600
NET CASH FROM OPERATING ACTIVITY $52,700
Rodriguez Company pays $342,225 for real estate with land, land improvements, and a building. Land is appraised at $245,000; land improvements are appraised at $73,500; and a building is appraised at $171,500. Required: 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase.
Answer and Explanation:
a. The allocation of the total cost among the three assets is given below:
(a) (b) (a × b)
Appraise value Total appraised Total cost of Apportioned
value cost
Percentage acquisition
Land $245,000 50% $342,225 $171,112.50
Land
improvements $73,500 15% $342,225 $51,333.75
Building $171,500 35% $342,225 $119,778.75
Total $490,000
b. The journal entry to record the purchase is given below:
Land $171,112.50
Land improvements $51,333.75
Building $119,778.75
To Cash $342,225
(To record the purchase)
Here the asset is debited as it rises the assets and cash is credited as it reduced the assets
After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of Schenkel Enterprises. Unfortunately, you will be the only individual voting for you. a. If the company has 520,000 shares outstanding and the stock currently sells for $36, how much will it cost you to buy a seat if the company uses straight voting
Answer: $9360036
Explanation:
If the straight voting method is used by the company, the number of shares that's required for the person would be:
= 520,000/2 + 1
= 260,001
Then, the total cost that'll be required to purchase a seat will then be:
= 260001 × $36
= $9360036
4. Tom Busby owes $20,000 now. A lender will carry the debt for four more years at 8 percent interest. That is, in this particular case, the amount owed will go up by 8 percent per year for four years. The lender then will require Busby to pay off the loan over 12 years at 11 percent interest. What will his annual payment be
Answer:
Tom Busby
His annual payment will be:
= $4,091.64
Explanation:
a) Data:
Loan = $20,000
Interest on loan for 4 years = 8% per annum
Amount of loan after 4 years = $27,200 ($20,000 * 1.360)
Payment period = 12 years
Interest rate during payment period = 11%
b) From online finance calculator:
You will need to pay $4,091 every year for 12 years to payoff the debt at 11% interest.
Monthly Payment $340.97
Annual Payment $4,091.64
Time Required to Clear Debt 12.00 years
Total of 144 or 12 Payments = $49,099.25
Total Interest $21,899.25
The present value of a zero-interest-bearing note given for property, goods, or services should be measured by A : using the prime interest rate to discount the note. B : the book value of the property on the seller's books the interest rate on similar notes being offered in the market place for similar property, goods, or services. C : the fair value of the property, goods, or services or by an amount that reasonably approximates the fair value of the note. D : using a negotiated interest rate between the issuer of the note and the owner of the property, goods, or services to discount the note.
Banks use a large percentage of their checkable deposits for the purpose of __________.
A.
paying interest
B.
giving loans
C.
employee salaries
D.
maintaining reserves
the answer is D
Answer:
B. giving loans
Explanation:
The reserve requirement system requires commercial banks to maintain a small fraction of their deposits as a reserve. Only a small percentage of the checkable deposits is required to be held in the banks as reserves. The reserves requirement fractions vary with the monetary policy in place.
The percentage of reserve requirement ranges from 3% to 10%. It would hardly get to 20%. The rest other bigger percentage ( over 80%) is available to be used to create loans.
Answer:
D.) maintaining reserves
Explanation:
got it right on the test review
g widgets inc plans to produce 8000 widgets during the upcoming year. each widget requires four direct labor hours at 25 per hour and 110 in direct material costs .... compute the predetermined overhead rate per direct labor hour
Answer:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Explanation:
Giving the following information:
Production= 8,000 units
Direct labor hours= 4*8,000= 32,000 hours
To calculate the predetermined overhead rate, we need the estimated overhead costs. We don't have the number, but I will provide a fake number, and determine the overhead rate.
Estimated overhead costs= $1,500,000
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 1,500,000 / 32,000
Predetermined manufacturing overhead rate= $46.875 per direct labor hour