At December 31, Idaho Company had the following ending account balances:
Retained Earnings $250,000
Preferred Stock ($100 par, 7% cumulative, 10,000 authorized,
5,000 issued and outstanding) 500,000
Treasury Stock 40,000
Paid-In Capital in Excess of Par—Common Stock 625,000
Paid-In Capital in Excess of Par—Preferred Stock 50,000
Common Stock ($5 par value, 500,000 shares authorized,
105,000 issued) 525,000
Required:
Prepare the Stockholders' equity section of the balance sheet in good form with all of the required disclosures.
Answers
Answer:
Balance of Stockholder's Equity at December 31 is $1,910,000.
Explanation:
This will appear as follows
Idaho Company
Details $
Stockholder's Equity:
Common Stock 525,000
Preferred Stock 500,000
Additional Paid-In Cap. - Common Stock 625,000
Additional Paid-In Cap. - Preferred Stock 50,000
Treasury Stock (40,000 )
Retained Earnings 250,000
Balance at December 31 1,910,000
The stockholders' equity or the share capital of the company is the amount of capital that is the ownership of investors of shareholders of the company over the assets and debts of the company.
The equity shareholder's are the true owners of the company as they are legible for decision making and voting's.
The stockholders' equity section of the balance sheet includes: common shares, preferred shares, retained earnings, and treasury stock.
The stockholders' equity section of the balance sheet is prepared in the image attached below.
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Related Questions
Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $243,000 and 8,000 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $244,200 and actual direct labor-hours were 5,700.The applied manufacturing overhead for the year was closest to:________
a. 229586
b. 234600
c. 242006
d. 236854
Answers
Answer:
Allocated overhead= $173,137.5
Explanation:
Giving the following information:
Estimated overhead= $243,000
Estimated direct-labor hours= 8,000
Actual direct labor-hours were 5,700.
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 243,000/8,000
Predetermined manufacturing overhead rate= $30.375 per direct labor hour
Now, we can allocate overhead based on actual direct labor hours:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated overhead= 30.375*5,700= $173,137.5
Exceptional Electronics began operations September 1, 2019. The firm sells its merchandise for cash and on open account. Sales are subject to a 7 percent sales tax. During September, Exceptional Electronics engaged in the following transactions:Date Transactions2019Sept. 1 Sold a high-definition television set on credit to Candy Cho: issued Sales Slip 101 for $2,100 plus sales tax of $147.3 Sold stereo equipment on credit to Jim Peters; issued Sales Slip 102 tor $900 plus sales tax of $63.7 Sold a microwave oven on credit to Bridgette Huffman: issued Sales Slip 103 for $300 plus sales tax or $21.12 Accepted return of defective stereo equipment from Jim Peterson: issued Credit Memorandum 101 for $200 plus sales tax of $14. The stereo equipment was sold on September 3.15 Recorded cash sales for the period from September 1 to September 15 of $10,500 plus sales tax of $735.16 Sold a gas dryer on credit to Kathy Sundstrand: issued Sales Slip 104 tor $600 plus sales tax of $42.17 Sold a home entertainment system on credit to Mark Navalta; issued Sales Slip 105 for $2,100 plus sales tax of $147.18 Received $670 from Candy Cho on account.20 Received payment in full from Jim Peterson for the sale of September 3, less the return of September 12.25 Gave Mark Navalta an allowance because of scratches on his home entertainment system sold on September 17, Sales slip 105; issued Credit Memorandum 102 for $200 plus sales tax of $14.27 Received payment in full from Bridgette Huffman tor the sale of September 7.29 Sold a dishwasher on credit to Mark Navalta: issued Sales Slip 106 tor $400 plus sales tax or $28.30 Recorded cash sales for the period From September 16 to September 30 of $10,800 plus sales tax of $756.GENERAL LEDGER ACCOUNTS101 Cash111 Accounts Receivable221 Sales Tax Payable481 Sales421 Sales Returns and AllowancesACCOUNTS RECEIVABLE LEDGER ACCOUNTSCandy Cho Jim PetersonBridgette Huffman Kathy SundstrandMark Navalta Required:2. Post the entries from the general journal into the appropriate accounts in the general ledger and in the accounts receivable ledger.3. Prepare a schedule of accounts receivable.
Answers
Answer:
Since there is not enough room here, I prepared the general ledger, the accounts receivable ledger and the schedule of accounts receivable in an excel spreadsheet (attached).
Explanation:
Susan wants to prepare a presentation that will calculate the total cost of ownership for the system. What financial analysis tools are available to her, and what are the advantages (and possible disadvantages) of each tool
Answers
Personal Trainer, Inc. owns and operates fitness centers in a dozen Midwestern cities. The centers have done well, and the company is planning an international expansion by opening a new “supercenter” in the Toronto area. Personal Trainer’s president, Cassia Umi, hired an IT consultant, Susan Park, to help develop an information system for the new facility. During the project, Susan will work closely with Gray Lewis, who will manage the new operation. Background
During data and process modeling, Susan Park developed a logical model of the proposed system. She drew an entity-relationship diagram and constructed a set of leveled and balanced DFDs. Now Susan is ready to consider various development strategies for the new system. She will investigate traditional and Web-based approaches and weigh the pros and cons of in-house development versus other alternatives.
Susan wants to prepare a presentation that will calculate the total cost of ownership for the system.
What financial analysis tools are available to her, and what are the advantages (and possible disadvantages) of each tool?
Answer:
The answer is below
Explanation:
The financial tools available to her,
NPV: Net Present Value
1. It is the total value benefit minus the total value of the costs.
2. It adjusts the value of future costs and benefits to account for the time value of money.
3. The systems can be compared more accurately and consistently.
ROI: Return On Investment.
Advanatge
1. It is a % rate that compares total net benefits received from a project to the total costs of the project.
2. Companies set a minimum ROI that all projects must match or exceed.
3. Disadvantage of this tool is that it expresses only an overall average rate of the return. It is not accurate for a given time period
PAY BACK ANALYSIS
1. It determines the time it takes for an information system to pay for itself.
2. Total development and operating costs are compared with total benefits.
3. Disadvantage of this method is that pay back analyzes on costs and benefits incurred at the beginning of a system’s useful life.
A municipal bond is issued with a covenant that states "if revenue collections are insufficient, the state legislature has the authority, but not the obligation, to make an annual apportionment of funds necessary to meet debt service requirements." This is a:
Answers
Answer:
Moral obligation bond
Explanation:
Moral obligation bond is defined as a revenue bond that is issued by a municipality or by some other government body.
The benefits of moral obligation bonds are tax exemption and a moral pledge that there will be no default on the bond.
Usually a reserve fund is established in case the issuing body is unable to meet its debt obligations.
In this scenario the bond is issued with a covenant that states "if revenue collections are insufficient, the state legislature has the authority, but not the obligation, to make an annual apportionment of funds necessary to meet debt service requirements."
Fairfield Company’s raw materials inventory transactions for the most recent month are summarized here: Beginning raw materials $ 20,000 Purchases of raw materials 90,000 Raw materials issued Materials requisition 1445 25,000 For Job 101 Materials requisition 1446 35,000 For Job 102 Materials requisition 1447 30,000 Used on multiple jobs 1. How much of the raw materials cost would be added to the Work in Process Inventory account during the period? 2. How much of the raw materials costs would be added to the Manufacturing Overhead account? 3. Compute the ending balance in the Raw Materials Inventory account.
Answers
Answer:
1. $60,000
2. $30,000
3. $20,000
Explanation:
1. How much of the raw materials cost would be added to the Work in Process Inventory account during the period?
The amount to add add to the Work in Process Inventory account during the period is the direct material used calculated as follows:
Direct raw materials used = Materials requisition 1445 For Job 101 + Materials requisition 1446 For Job 102 = $25,000 + $35,000 = $60,000
2. How much of the raw materials costs would be added to the Manufacturing Overhead account?
Manufacturing overhead refers to all indirect costs that are incurred during the production process. Therefore, the raw materials costs that would be added to the Manufacturing Overhead account is the indirect materials used on multiple jobs.
Therefore, we have:
Amount to add to the Manufacturing Overhead account = Indirect materials used = $30,000
3. Compute the ending balance in the Raw Materials Inventory account.
Ending raw materials balance = Beginning raw materials + Purchases of raw materials - Direct raw materials used - Indirect materials used = $20,000 + $90,000 - $60,00 - $30,000 = $20,000
Statement of Cash Flows A summary of cash flows for Paradise Travel Service for the year ended May 31, 2018, follows: Cash receipts: Cash received from customers $880,000 Cash received from issuing common stock 40,000 Cash payments: Cash paid for operating expenses 758,000 Cash paid for land 150,000 Cash paid as dividends 10,000 The cash balance as of June 1, 2017, was $50,000. Prepare a statement of cash flows for Paradise Travel Service for the year ended May 31, 2018. Use the minus sign to indicate cash outflows, cash payments and decreases in cash. Paradise Travel Service Statement of Cash Flows For the Year Ended May 31, 2018 Cash flows from operating activities: Cash received from customers $ 880,000 Cash payments for operating expenses 758,000 $ Cash flows used for investing activities: Cash flows from financing activities: $ $ Cash as of June 1, 2017 Cash as of May 31, 2018 $
Answers
Answer:
Paradise Travel Service
Cash Flow Statement
For the Year Ended May 31, 2018
Cash flows from operating activities:
Cash received from customers $880,000
Cash paid for operating expenses -$758,000
Net cash provided by operating activities $122,000
Cash flows from investing activities:
Cash paid for land -$150,000
Net cash provided by investing activities -$150,000
Cash flows from financing activities:
Cash received from issuing common stock $40,000
Cash paid as dividends -$10,000
Net cash provided by financing activities $30,000
Net increase in cash $2,000
Cash balance June 1, 2017 $50,000
Cash balance May 31, 2017 $52,000
On January 1, the $3,000,000 par value bonds of Spitz Company with a carrying value of $3,000,000 are converted to 1,000,000 shares of $1 par value common stock. Record the entry for the conversion of the bonds.
Answers
Answer:
Dr bonds payable $3,000,000
Cr common stock $1,000,000
Cr paid in capital in excess of par val.-common stock($3m-$1m) $2,000,000
Explanation:
The conversion means that the bonds payable account is debited since the obligation has now been settled by a way of giving common stock in lieu.
The credit entries would comprise of par value of the conversion which is $1 par value multiplied by number of common stock of 1,000,000 which gives $1,000,000 while the remaining balance is credited to paid-in capital in excess-common stock
Hillsdale is considering two options for comparable computer software. Option A will cost $31,000 plus annual license renewals of $1,800 for three years, which includes technical support. Option B will cost $12,000 with technical support being an add-on charge. The estimated cost of technical support is $4,700 the first year, $3,700 the second year, and $2,700 the third year. Assume the software is purchased and paid for at the beginning of year one, but that technical support is paid for at the end of each year. The discount rate is 10%. Ignore income taxes.Required: Determine which option should be chosen based on present value considerations
Answers
Answer:
Option B
Explanation:
The computation of the present value is shown below:
For Option A
Year Cash flows Discount factor at 10% Present value
0 -$31,000 1.0000 -$31,000.00
1 -$1,800 0.9091 -$1,636.36
2 -$1,800 0.8264 -$1,487.60
3 -$1,800 0.7513 -$1,352.37
Total -$35,476.33
For Option B
Year Cash flows Discount factor at 10% Present value
0 -$12,000 1.0000 -$12,000.00
1 -$4,700 0.9091 -$4,272.73
2 -$3,700 0.8264 -$3,057.85
3 -$2,700 0.7513 -$2,028.55
Total -$21,359.13
As we can see that the present value for option B is less than the option A so the option B should be selected
You currently have 80 units of a product on the shelf. The demand for the product has been simulated as follows: Demand_Data.xlsx Sales are made to the extent that you have units in stock (for example, if the demand is for 65 units, then 65 units are sold; however, if the demand is for 135 units, then only 80 units are sold). Using the demand data in the attached file, the expected units sold is [a].
Round your answer to a single decimal point. For example, if your answer is 51.456, then round it to 51.5.
Answers
Answer:
Hello the required attached file is missing and attached to the answer is the file and the Excel solution to the problem
answer : The expected units sold is ; 65.9
Explanation:
ATTACHED IS THE SOLUTION OF THE PROBLEM USING EXCEL and also attached is the missing file
Demand_Data.xlsx (Following values correspond with each of the 200 rows)
65.2109419609769
36.3814378436655
12.0877429656684
42.5590896559879
82.2785877465503
63.8527707854519
63.4004335955251
15.8457750733942
71.0140411177417
70.8838469511829
17.5017830263823
55.8463070268044
72.5535427994328
83.9481016958598
77.4359377322253
51.6086528880987
61.2436578597408
41.7028003942687
61.3092779024737
57.1605268708663
63.4424295133795
105.393077268964
42.3098881077021
72.9272996471264
73.4634922485566
92.1699337998871
73.9350879887934
62.634502632427
75.1440792958601
78.2438873505453
132.73330654949
56.5183781366795
83.8099039759254
85.089108273969
79.8164036899107
87.0501152751967
41.0291376686655
63.5085725155659
84.9410880112555
59.0508206590312
56.5433210288757
59.7236421020352
65.8728722049273
73.6344772524899
49.9832039570902
47.852667143452
92.3204551730305
74.595608515956
66.5629058351624
32.4733391101472
97.4920239462517
74.2992041926482
9.96752891689539
85.1971107698046
110.769009501673
69.4912286638282
118.182118916884
80.9065695141908
66.242581801198
74.6631839722977
94.2071109823883
89.928620531573
59.5205746724969
104.95497367112
63.1786987872329
113.474574340507
47.0437170809601
79.1452875494724
82.0594904728932
45.6039869680535
97.7821527561173
65.7133240968687
58.5785200604005
84.1517375595868
41.9052539148834
63.9809640636668
78.9487002696842
85.280966181308
61.2992052486516
49.7980308358092
67.0680619298946
49.0870788274333
60.8445261098677
68.4155920174089
91.2059148907429
54.3580098968232
44.4463366369018
66.7196345096454
59.9047907092609
41.6861111664912
40.0889020459726
58.9671926212031
56.350849212613
65.2880671116873
75.5627424444538
48.9305093145231
35.4057319276035
71.0829808161361
32.9006197210401
86.8856786331162
77.7846607382526
104.655840863707
106.356141208671
48.7940851092571
72.7866462914972
61.3815372565296
95.9817170444876
51.57595655357
87.819729691837
85.2932898345171
27.4374669464305
52.1301571500953
79.2558366304729
82.1587163448567
97.4762896879111
42.4961980973603
78.3406121120788
62.3225004749838
69.8783550836379
69.651913640264
68.1852624841849
63.8094333629124
72.8979229682591
71.9960907593486
78.7327634901158
77.8358425525948
59.3799213168677
102.537536753807
75.808078640257
47.8837263875175
65.2613052300876
66.4013113640249
61.8226876616245
79.575478543411
91.3108705793275
96.5802555077244
32.6323187840171
63.5827418084955
42.1373114880407
76.5624135459075
89.248909666203
76.6884695115732
79.5514678832842
77.5245679909131
69.5065309121856
109.253427530639
61.218396644399
84.3726992973825
79.2933305495535
77.684093361604
9.07986208796501
65.9900151225156
67.2133537085028
97.0921646006173
55.312570061069
74.2412921175128
78.6738964455435
58.1307985560852
70.8149299901561
50.1941612531664
102.560546969762
69.0012838679832
71.4907982404111
107.142126529943
88.3843440026976
68.1837390805595
60.2680883678841
86.1327989189886
80.9313987195492
48.4910414746264
43.4493030700833
72.7449459594209
70.5454921847559
55.8600403968012
92.95628291904
50.2714683028171
56.9870862312382
127.145371101797
69.4912286638282
118.879155656323
80.3445017884951
119.5754648
54.8273546376731
76.6189386416227
57.2600028538727
94.6262061409652
80.7842652141699
88.6095803655917
59.0686012804508
64.1408532322384
53.0245542398188
55.6273007026175
101.024046620587
46.6278051538393
105.879475035472
113.218460632488
77.5130628829356
93.539587346022
89.7584540728712
71.5537125364062
On June 30, 2010, Microsoft Corporation was holding $4.8 billion of cash that it had collected from customers in advance for future software licenses and the future delivery of other products and services. In its financial statements, Microsoft classified and recorded this amount as
Answers
Answer: O the liability Unearned Revenue on its balance sheet.
Explanation:
Unearned Revenue is a liability that goes into the balance sheet to record the cash received for goods and/or services that the company have not delivered yet.
This is so that the company is not in violation of the Accrual Accounting concept known as the Revenue Recognition Principle that states that revenue should be recognised only in the period that they have been earned.
Microsoft in this scenario will record this cash as an Unearned Revenue and then consider it revenue when it has delivered the said goods and services.
What eventually happens to non-market “command” economies?
Answers
Answer:
From the historical references, we can say that the two leading command economies of the world, China and the Soviet Union both made the transition to the mixed economy.
Explanation:
A command economy refers to the economic system where all significant facets of the economy and economic production are controlled by the Government. In the command economy, it is the government that makes the decision of what to produce, how to produce, and how to distribute the manufactured products and services within the economy. It establishes a very dominant government which restricts the rights of its citizen to seek economic goals. It inevitably creates an environment in which governments will expand their influence over certain aspects of human life. Most command economies, including the Soviet Union, started making the transition to a mixed economy from the 1980s onward. This entailed a privatization process and price deregulation.
The graph shows excess demand. A graph titled Excess supply has quantity on the x-axis and price on the y-axis. A line with positive slope represents supply and a line with negative slope represents demand. The lines intersect at the point of equilibrium (p star, Q star). A point on the demand line is (P 2, quantity demanded) and a point on the supply line is (P 2, quantity supplied). Both points are lower than the point of equilibrium. Excess demand is indicated between the 2 points. Which needs to happen in order to stop disequilibrium from occurring? Q needs to be coordinated with supply. Q needs to be coordinated with demand. The price of goods needs to be increased. The price of goods needs to be decreased.
Answers
Answer:
The price of goods needs to be increased.
Explanation:
Excess demand occurs when the quantity demanded is higher than the quantity supplied. This happens when the price of the good is lower than the equilibrium price. This can happen naturally in the market, or can happen if the government imposes a binding price floor.
The best way to solve excess demand is to raise the price, in order to reach equilibrium. Once in equilibrium, the price will coordinate the quantity supplied and the quantity demanded so that they're roughly equal.
Association between the number of goods the producers wants to sell at a specific value to that of quantity the purchaser wants to buy is called demand and supply.
The correct answer is:
Option C. The cost of goods needs to be raised.
This can be explained as:
When there is more need for the product than it is supplied or created is excess demand.This problem arises when the value of the goods and commodities is lower.This can arise intrinsically or due to any trade or governmental policies.The excess demand can be solved by increasing the price of the product.Therefore, the price of the goods should be increased.
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Purpose of Assignment The purpose of this assignment is for students to employ capital budgeting techniques using time value of money concepts to determine the acceptability of large dollar value assets. Assignment Steps Scenario: A firm has projected free cash flows of $575,000 for Year 1, $625,000 for Year 2, and 650,000 for Year 3, $725,000 for Year 4, and 850,000 for Year 5. The projected terminal value at the end of Year 5 is $6,000,000. The firm's Weighted Average cost of Capital (WACC) is 12.5%. Create a Microsoft® Excel® document to determine the Discounted Cash Flow (DCF) value of the firm based on the information provided above. Recommend acceptance of this project using net present value criteria using a Microsoft® Word® document. Include up to what level of initial investment you would accept the project? Why? Give a complete explanation of up to 350 words. Display your calculations. Coursehero
Answers
Answer:
Present Value 5,715,331.32
We are going to accept the project only if the initial investment is at 5,715,331 or below in order to achieve the return to support the cost of capital structure of the company
Accepting a project with a higher cost will not generate enought cashflow to sustain the patyment of debt and the return expected from the stockholders therefore, will generate a economic result and investor will leave the company for other which can sustain their desired return.
Explanation:
We are going to discount the yearly cash-flow at the given rate of 12.50%
then, the terminal value which is the present value of the future period will also be discounted at this rate.
The sum of all this will be the present value of the firm.
[tex]\left[\begin{array}{ccc}$Year&$Cash Flow&$Discounted\\1&575000&511111.11\\2&625000&493827.16\\3&650000&456515.77\\4&725000&452613.93\\5&850000&471689.61\\$terminal&6000000&3329573.74\\Present&Value&5715331.32\\\end{array}\right][/tex]
The formula we use the present value of a lump sum:
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
We are going to accept the project only if the initial investment is at 5,715,331 or below in order to achieve the return to support the cost of capital estructure of the company
Compared with diversification based on intangible resources, diversification based on financial resources is: a. less imitable and more likely to create value on a long-term basis. b. more imitable and less likely to create value on a long-term basis. c. less imitable and less likely to create value on a long-term basis. d. more imitable and more likely to create value on a long-term basis.
Answers
Answer:
b. more imitable and less likely to create value on a long-term basis.
Explanation:
In Finance, diversification can be defined as an investment technique that focuses on distributing capital or portfolio across various investments.
Basically, the aim of adopting a diversification is to lessen or mitigate the degree of uncertainty of the portfolio by enhancing its high long-term returns.
Diversification helps financial experts or investors to complement or annul the losses associated with an asset class by the benefits of another asset class in a portfolio.
Compared with diversification based on intangible resources, diversification based on financial resources is more imitable or copied by rivals in the industry and less likely to create value on a long-term basis.
Diversification based on intangible resources, includes intellectual property, brand recognition, human resources, patents, customer lists, trademarks, copyrights, and goodwill etc.
Diversification based on financial resources, includes shares, money, bond, gold, debentures, checks, and promissory notes.
Identify each of the following types of businesses as either job-order or process costing. a. Hospital services b. Custom cabinet making c. Toy manufacturing d. Soft-drink bottling e. Airplane manufacturing (e.g., 767s) f. Personal computer assembly g. Furniture making (e.g., computer desks sold at discount stores) h. Custom furniture making i. Dental services j. Paper manufacturing k. Nut and bolt manufacturing l. Auto repair m. Architectural services n. Landscape design services o. Flashlight manufacturing
Answers
Answer:
The answer to the question above is given below:
Explanation:
First, for a better understanding of the type of business to be categorized as job-order or process costing, explanation would be made on what job-order and process costing are.
Job-order costing is used when items produced differ such that each carries a significant cost. Job-order costing systems track costs by job and are used by companies to calculate costs of unique products been produced.
Process costing assigns product costs to departments and is used by companies that produce similar products this ensures a continuous style of production employed. No difference in the products been produced in process costing.
Going by the definition above one can categorize the businesses:
a. Hospital services are a Job-order costing type of business
b. Custom cabinet making is a Job-order costing type of business
c. Toy manufacturing is a Process costing type of business
d. Soft-drink bottling is a Process costing type of business
e. Airplane manufacturing (e.g., 767s) is a Process costing type of business because they produce similar products (767s) that translate to a consistent process. But if the model of the airplane is not specified then it is a Job-order costing type of business.
f. Personal computer assembly is a Job-order costing type of business
g. Furniture making (e.g., computer desks sold at discount stores)
h. Custom furniture making is a Job-order costing type of business
i. Dental services are a Job-order costing type of business
j. Paper manufacturing is a Process costing type of business
k. Nut and bolt manufacturing is a Process costing type of business
l. Auto repair is a Job-order costing type of business
m. Architectural services are a Job-order costing type of business
n. Landscape design services are a Job-order costing type of business
o. Flashlight manufacturing is a Process costing type of business
The owner of a small firm has just purchased a personal computer, which she expects will serve her for the next two years. The owner has been told that she "must" buy a surge suppressor to provide protection for her new hardware against possible surges or variations in the electrical current, which have the capacity to damage the computer. The amount of damage to the computer depends on the strength of the surge. It has been estimated that there is a 3% chance of incurring 350 dollar damage, 5% chance of incurring 250 dollar damage, and 12% chance of incurring 100 dollar damage from a surge within the next two years. An inexpensive suppressor, which would provide protection for only one surge, can be purchased. How much should the owner be willing to pay if she makes decisions on the basis of expected value
Answers
Answer:
$35
Explanation:
The computation of the expected value is shown below;
As we know that
= Estimated chance of damage percentage × dollar damage + Estimated chance of damage percentage × dollar damage + Estimated chance of damage percentage × dollar damage
= 3% × $350 + 5% × $250 + 12% × $100
= $10.5 + $12.5 + $12
= $35
We simply multiplied the estimated chance of damage percentage with the dollar damage and then added the other two so that the expected value could arrive
Which of the following are examples of hidden unemployment? Select the two correct answers below. Select all that apply: John is 15 years old and even though he wants to find summer job, he can't. Lisa cannot find the job she wants so she has stopped looking. Penny has a college degree in nursing, but currently has to work as a store clerk as it is the only available job in her small town. Rita is working in the job of her dreams.
Answers
Answer:
Lisa cannot find the job she wants so she has stopped looking. Penny has a college degree in nursing, but currently has to work as a store clerk as it is the only available job in her small town.Explanation:
Hidden Unemployment also known as Disguised Unemployment in simple terms refers to the following people; people who are not working and have given up on looking for work because they could not find any, people who have the skillset and determination to work full-time working only part time and people who are underemployed meaning that they are working a job that they are overqualified for.
Hidden Unemployment is considered hidden as it is not reflected in employment statistics.
Lisa could not find a job so she stopped looking. This is Hidden Unemployment and official figures will not even count her as unemployed because you need to be actively looking for work to be classified unemployed.
Penny is overqualified for the store clerk position she holds or rather she is qualified for a different profession. Employment statistics will however show her as employed.
In contrast to a differentiator, a cost-leader will:
a. focus its research and development on process technologies to improve efficiency.
b. charge a premium price for its products and services.
c. avoid an organizational structure that relies on strict budget controls.
d. build an organizational culture where creativity and customer responsiveness thrive.
Answers
Answer: a. focus its research and development on process technologies to improve efficiency.
Explanation:
A Cost Leadership strategy entails reducing the costs associated with production to the point that you are the most efficient producer in the industry. By reducing cost, the company is able to see higher profitability margins and could be able to lower sales prices thereby capturing greater market share.
The Cost Leader will therefore focus on coming up with ways with which it can keep costs at a minimum because it is important to their mode of operations.
A Differentiator on the other hand aims to increase market share by creating a product that people will see as different and will buy due to the added value. They will focus more on supporting creativity to make better products as well as customer responsiveness to see what it is that the customers like so that they can offer it.
A company purchased 10 units for $5 on January 3. It purchased 10 units for $7 each on February 28. It sold 10 units on March 1. If the company uses the last in, first out (LIFO) inventory costing method, what is the dollar amount for ending inventory on the December 31 balance sheet, assuming that the company uses a perpetual inventory system
Answers
Answer:
The dollar amount for ending inventory using the last-in-first-out method of inventory valuation is $50
Explanation:
Using LIFO,last-in-first-out method of inventory valuation,items received last into the store are deemed to be sold first, hence the sales of 10 units on March 1 was the inventory purchased on February 28, leaving the items of inventory purchased on January 3 as closing inventory
value of closing inventory using LIFO=10*$5=$50
To a greater or lesser degree, many governments can be considered pragmatic nationalists when it comes to foreign direct investment (FDI); this means it has both benefits and costs. FDI can benefit a host country by bringing capital, technology, and jobs, and it can also have a negative effect on a country's balance of payments. Accordingly, government policies are shaped by a consideration of these costs and benefits of FDI.
Home countries can adopt policies designed to both encourage and restrict FDI. Host countries try to attract FDI by offering incentives and try to restrict FDI by dictating ownership restraints and requiring that foreign multinational enterprises (MNE) meet specific performance requirements.
Roll over each item on the left to read its description. Determine whether the scenario represents a benefit or cost to the home or host country, and then drag it to the appropriate place on the chart.
HOST-COUNTRY BENEFIT HOST-COUNTRY COST
HOME-COUNTRY BENEFIT HOME-COUNTRY COST
-outflow of earnings from a foreign subsidiary
a- loss of jobs
b-inflows of foreign earnings
c-substitute for imports
d-loss of economic independence
e-increase in direct and indirect empolyment
f-skills that can be leveraged internationally
g-loss of local entreprenurship
h-Host country limits profit expatriation
i-transfer of new technology
Answers
Answer:
Home Country Benefit
b - inflows of foreign earnings.
The Company operating in the Host Country will send some of it's profits back to it's Home Country and this will be treated as Foreign Earnings.
f-skills that can be leveraged internationally.
The Home Country will gain skills from their experience in the Host Country. These skills can then be used to be competitive on the global market.
Home Country Cost
a- loss of jobs
The Home Country would lose the jobs that it's companies created in the Host Country. These are jobs that could have employed people in the Home Country but now employ people in the Host Country.
h-Host country limits profit expatriation
In order that they don't lose too much money to the Home Country, the Host Country might come up with laws that limit the amount of money that can be taken out from the country this limiting the amount of foreign Earnings that the Home country gets.
Host Country Benefit
c-substitute for imports
The products that the companies founded by FDI are producing could have been products that the Host Country used to import. Now that the goods are being made in the Host Country, there will be no need for imports.
e-increase in direct and indirect employment
The companies founded by FDI in the Host Countries will create employment for people in the company which is direct employment. Many auxiliary services such as drivers and caterers as an example will also spring up to take care of these newly employed folk thereby creating indirect employment.
i-transfer of new technology
The Company formed from FDI will bring with them technology from the Home Country that could be very beneficial to the Host Country.
Host Country Costs.
- Outflow of earnings from a foreign subsidiary
The Companies established through FDI will send some of their profits back to their home Countries. This means that the earnings would leave the Host Country instead of being reinvested in them.
d-loss of economic independence
These FDI companies tend to get very influential and powerful in the Host Country and can sometimes dictate policies. This would mean the companies have significant control over the resources of the Host Country which will lead to a loss of Economic independence. This is the main reason most people believe that China is interested in Africa.
g-loss of local Entrepreneurship
These companies created by FDI will bring with them better technology and capital that will enable them to be very competitive in the local Economy. This will discourage local Entrepreneurs who do not have the economic nor the financial backing to challenge the companies without making huge losses.
Willetta Company purchases inventory for $29,000 with terms 2/10, n/30. It then returns $3,900 of the inventory purchased to the supplier and also receives an allowance for defective inventory of $290. The company pays the amount due within the discount period. What is the amount of the discount that will be taken
Answers
Answer:
Discount taken is $496.20
Explanation:
The amount of purchases after some items were returned and also defective inventory allowance was taken needs to first of all be established.
adjusted purchases=$29,000-$3,900-$290=$ 24,810.00
Thereafter, the amount of discount taken is 2% of the adjusted purchases amount computed above.
Discount taken=$ 24,810.00*2=$ 496.20
Suppose the comparative balance sheets of Windsor, Inc. are presented here. WINDSOR, INC. Condensed Balance Sheet May 31 ($ in millions) 2017 2016 Assets Current Assets Property, plant, and equipment (net) Other assets Total assets Liabilities and Stockholders' Equity Current Liabilities Long-term liabilities Stockholders' equity Total liabilities and stockholders' equity $9,520 $8,720 2,010 1,870 1,610 $13,080 $12,200 1,550 3,210 $3,320 1,210 1,290 7,590 $13,080 $12,200 8,660 (a) Prepare a horizontal analysis of the balance sheet data for Windsor, using 2016 as a base. (if amount and percentage are a decrease show the numbers as negative, e.g.-55,000 -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.) WINDSOR, INC. Condensed Balance Sheet May 31 ($ in millions) 2017 2016 (Decrease) Change from 2016 $9,520 $8,720 2,010 1,870 1,610 Current Assets Property, plant, and equipment (net) Other assets 1,550 Total assets $13,080$12,200 $ Liabilities and Stockholders' Equity $3,210 $3,320 1,210 1,290 7,590 $13,080 $12,200 Current Liabiiies Long-term liabities Stockholders equity Total liabilities and stockholders' equity 8,660
Answers
Answer:
since there is not enough room here, I prepared the comparative balance sheets on an excel spreadsheet.
Explanation:
WINDSOR, INC.
May 31 2017 2016
($ in millions)
Assets
Current Assets $9,520 $8,720
Property, plant, and equipment (net) $2,010 $1,870
Other assets $1,550 $1,610
Total assets $13,080 $12,200
Liabilities and Stockholders' Equity
Current Liabilities $3,210 $3,320
Long-term liabilities 1,210 1,290
Stockholders' equity 8,660 7,590
Total liabilities and stockholders' equity $13,080 $12,200
Brief Exercise 10-18 Presented below is the partial bond discount amortization schedule for Whispering Winds Corp., which uses the effective-interest method of amortization. Interest PeriodsInterest to Be PaidInterest Expense to Be Recorded Discount Amortization Unamortized Discount Bond Carrying Value Issue date$67,991$1,350,009 1$70,900$74,250$3,35064,6411,353,359 270,90074,4353,53561,1061,356,894 (a) Prepare the journal entry to record the payment of interest and the discount amortization at the end of period 1.
Answers
Answer:
interest expense 74,250 debit
discount on bonds payable 3,350 credit
cash 70,900 credit
Explanation:
Adjustment to a better display of the data:
Paid Expense Amortization Unarmotized Carrying Value
Issue Date 67,991 1,356,709
1 70,900 74,250 3,350 64,641 1,353,359
2 70,900 74,435 3,535 61,106 1,349,824
To record the payment of interest and discount we will debit the interst expense
and credit the cash given along with the discount on Bonds Payble for the difference
During the year, Lillie rented her vacation home for three months and spend one month there. Gross rental income from the property was $5,000. Lillie incurred the following expenses: mortgage interest, $3,000; real estate taxes $1,500; utilities, $800; and depreciation, $4,000. Compute Lillie's allowable deductions for the vacation home.
Answers
Answer:
$8,100
Explanation:
The home was rented for more than 14 days, you must pay taxes for the rental income
Since Lille used the house for more than 15 days herself, limits her deduction. The home cannot be treated as rental home nor personal use vacation home.
total days used = (30 x 3) + 30 = 120 days
rental days = 90/120 = 75% (this doesn't apply to mortgage interest nor real estate taxes, they are still 100% deductible)
mortgage interest and real estate taxes still qualify as personal expenses = $3,000 + $1,500 = $4,500
utilities and depreciation will be deducted only 75% = ($800 + $4,000) x 75% = $3,600
total deductions = $4,500 + $3,600 = $8,100
Lately the demand for building materials has dropped due to the slowdown in new housing construction. Woods Corp, is thinking of closing its fine wood division that produces mahogany and cherry lumber for building cabinets and other applications. Under the Boston Consulting Group Growth-Share Matrix, the fine wood division would most likely be classified as a:________.
A. dog
B. cash cow
C. top gun
D. star
Answers
Answer:
A. dog
Explanation:
The Boston Consulting Group growth share matrix is a graphical representation used in planning which of a companie's products should be kept, discarded, or invested more in.
Four categories of products are stars, dogs, cash cow, and question mark.
Dogs have low market share and low growth rate. Options for handling such products are selling, repositioning, or liquidation.
Demand for building materials has dropped due to the slowdown in new housing construction and the company is considering bclosing its fine wood division that produces mahogany and cherry lumber for building cabinets and other applications.
This division is most likely a dog
Graham Petroleum produces oil. On May 1, it had no work-in-process inventory. It started production of 244 million barrels of oil in May and shipped 216 million barrels in the pipeline. The costs of the resources used by Graham in May consist of the following:
Materials $6,000 Million
Conversion Cost (Labor and overhead) $7,968 Million
Required:
The production supervisor estimates that the ending work-in-process is 60 percent complete on May 31.
Compute the cost of oil shipped in the pipeline and the amount in work-in-process ending inventory as of May 31. (Do not round intermediate calculations. Enter your answers in millions. For example, enter "1" instead of "1,000,000".)
Answers
Answer:
The cost of 216 million barrels of oil shipped is $ 12,960 million
Cost of ending work in process is $1,008 million
Explanation:
The total costs of oil production is computed thus:
$million
materials 6,000
conversion cost 7,968
total cost 13,968
Production started 244 million
Oil shipped 216 million
ending work in process 28 million
total equivalent units=216 million+28 million*60%=216 million+16.8 million=232.8 million
cost of oil shipped=$13,968/232.8*216=$ 12,960 million
amount of ending inventory=$13,968-$12,960=$1,008.00
American Corporation has the following financial information. Year 1 Year 2 Cash $ 202.95 $ 245.90 A/R 398.02 485.34 Inventory 785.12 648.54 If Year 1 is the base year, what is the percentage increase/decrease of each current asset amount
Answers
Answer: The answer is given below
Explanation:
Since Year 1 has been given as the base year, the percentage change will be:
(Year 2 - Year 1)/Year 1 × 100
Cash:
= (245.90 - 202.95)/202.95 × 100
= 42.95/202.95 × 100
= 0.21 × 100
= 21% Increase
A/R:
= (485.34 - 398.02)/398.02 × 100
= 87.32/398.02 × 100
= 0.22 × 100
= 22% Increase
Inventory:
= (648.54 - 785.12)/785.12 × 100
= -136.58/785.12 × 100
= -0.17 × 100
= 17% decrease
glass co. had net income of $70,000 during the year. Depreciation was $10,000. the following information is available: accounts receivable increase (sale price $100,000) non trade notes payable increased by 50,000, equipment purchases increased by 40,000 account payable increase 30,000. what amount should galss report as net cash provided by investing activities
Answers
Answer:
Net cash from investing activities (40,000)
Explanation:
The investing activities are those that pertain to the purchase and sales of non-current assets and marketable securities.
Example of such includes the sales and purchase of property plant an equipment. Therefore, the only item to be considered here is the purchase of equipment.
$
Investing activities
Equipment purchase (40,000)
Net cash from investing activities (40,000)
You have graduated from college and, after working hard for ten years, have scraped enough money together to make a down payment on a forty-acre farm within driving distance to the small city where you work in Colorado. In town at lunch one day, you run into an old friend from high school, Hayley Mills, who tells you that she is saving her money to start a high-end consignment shop in town. You allow her to have a room in your house for a few months until she has enough money to go into business. Over the following weeks, however, you realize that old acquaintances from high school are stopping by almost daily for short visits. When you bring this up to Hayley, she admits that many old friends are now relying on her for marijuana. She is not a licensed caregiver in Colorado and is clearly violating the law. Out of loyalty, you tell her that she has three weeks to move out, but you do not prevent her from continuing sales while she is there. What crime have you committed?
Answers
Answer:
A conspiracy crime
Explanation:
Note that the tem consipiracy could also mean knowingly supporting directly or indirectly in a set course of action with another.
Thus, since the homeowner did not prevent the illegal actions of her acquaintance out of loyalty for her, the homeowner became part of an illegal drug sale conspiracy. This is further evident from the fact that the homeowner
gave the acquaintance three weeks to move out; in a sense giving more ample time for the illegal transactions.
Elaborate on any three internal factors of Jessops’ Group Limited that can influence its functioning
Answers
Answer:
The internal factors are factors that are under the control of the company and these can be tangible or intangible in nature.
Explanation:
Examples of three internal factors of Jessops’ Group Limited that can influence its functioning are:
1. Assets of the company: the company has over 200 stores around the UK, and also has an online shop and call center. This will make the company to serve a wide base of customers which can increase the revenue of the UK’s premier photographic retailer.
2. Photo and imaging business: This is a business line which is a key part of the company's product portfolio. The decision of the company to focus its attention on making its imaging business the market leader is because of the stability in its margins during the 2008–09 economic recession in the UK.
3. Participation and investment in social responsibility: The response of the company to the Waste Electrical and Electronic Equipment (WEEE) regulations on the disposal of electronic goods at the end of their life by contributing towards a national fund to assist local councils to develop collection facilities for electronic goods is an example of social responsibility. The creation of a convenient battery recycling points in its stores and effort to increase awareness of the WEEE regulations are part of social responsibility functions that will be seen more favorably by consumers. This can therefore increase the sales of the company.