Answer:
Before tax cost of debt is 7.12%
After tax cost of debt is 4.27%
Cost of equity is 10%
Explanation:
The before-tax cost of debt can be determined using excel rate formula as found below:
=rate(nper,pmt,-pv,fv)
nper is the number of semiannual payments the bond has i.e 20*2=40
pmt is the amount of semiannual payment=$1000*7.5%*6/12=$ 37.50
pv is the current price =$1000*104%=$1,040.00
fv is the face value of $1000
=rate(40,37.50,-1040,1000)=3.56%
The 3.56% is semiannual yield, hence 7.12% per year (3.56%*2)
After-tax cost of debt=7.12%*(1-t) where is the tax rate of 40% or 0.4
after-tax cost of debt=7.12%*(1-0.40)=4.27%
Cost of equity is determined using the below CAPM formula:
Ke=Rf+Beta*(Mr-Rf)
Rf is the risk free rate of 4%
Beta is 1.2
Mr is the market return of 9%
Ke=4%+1.2(9%-4%)=10.00%
Which of the following comes closest to the value at the end of year 6 of investing $600 today (year 0) and then investing another $600 at the end of year 5 if the interest rate is 3%?
a. $ 1,434
b. $ 1,334
c. $ 1,542
d. $ 1,383
e. $ 1,487
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Investment= $600 today and $600 at the end of year 5
Interest rate= 3%
To calculate the final value, we need to apply the following formula on each investment:
FV= PV*(1+i)^n
FV= 600*(1.03^6)= $716.43
FV= 600*(1.03^1)= $618
Total FV= $1,334.43
Government Spending
Consumer Expectations
Degree of Excess Capacity
Personal Income Tax Rates
Productivity
National Income Abroad
Business Taxes
Domestic Resource Availability
Prices of Imported Products
Profit Expectations on Investments
Answer the question based on the accompanying list of items related to aggregate demand or aggregate supply. A change in which factor is most likely to change both aggregate demand and aggregate supply?
Answer:
Business Taxes.
Explanation:
A change in business taxes is most likely to change both aggregate demand and aggregate supply.
Aggregate demand can be defined as the total amount of goods and services by consumers at a specific period of time and price level in an economy.
Aggregate supply can be defined as the total amount of goods and services an organization is willing to sell or provide to it's consumers at a specific price level.
When business taxes are imposed on businesses, such as manufacturing companies, these in turn affect the demand and supply framework (final goods and services).
Basically, business taxes causes shifts in demand and supply, which in turn affect the price and quantity of goods and services in an economy.
Hence, companies would either be forced to cut-down on the amount of goods and services provided, result to borrowing or downsizing their manpower. As a result of this, they won't be able to meet the demands of their consumers.
Montclair Company earns an average contribution margin ratio of 40% on its sales. The local store manager estimates that he can increase monthly sales volume by $45,000 by spending an additional $7,000 per month for direct mail advertising. Compute the monthly increase in operating income if the manager's estimate about the increased sales volume is accurate.
Answer:
$11,000
Explanation:
The computation of the monthly increase in operating income is shown below:
= Sales volume × contribution margin ratio - additional spending done on the direct mail advertising
= $45,000 × 40% - $7,000
= $18,000 - $7,000
= $11,000
We simply applied the above formula so that the monthly increase in operating income could be determined.
Required Information
The following information applies to the questions displayed below) Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $13. At the start of January 2018, VGC's income statement accounts had zero balances and its balance sheet account balances were as follows:________.
Cash $1,600,000
Accounts Receivable 174,000
Supplies 15,100
Equipment 930,000
Buildings 510,000
Land 2,050,000
Accounts Payable 113,000
Deferred Revenue 74,800
Notes Payable (due 2025) 94,800
Common Stock 2,500,000
Retained Earnings 2,498,100
In addition to the above accounts, VGC's chart of accounts includes the following: Service Revenue, Salaries and Wages Expense, Advertising Expense, and Utilities Expense. The following transactions occurred during the January month:________.
A. Received $57,750 cash from customers on 1/1 for subscriptions that had already been earned in 2017.
B. Purchased 10 new computer servers for $41,500 on 1/2; paid $11,500 cash and signed a three-year note for the remainder owed.
C. Paid $14,300 for an Internet advertisement run on 1/3.
D. On January 4, purchased and received $5,300 of supplies on account.
E. Received $150,000 cash on 1/5 from customers for service revenue earned in January.
F. Paid $5,300 cash to a supplier on January 6.
G. On January 7, sold 19,900 subscriptions at $13 each for services provided during January. Half was collected in cash and half was sold on account.
H. Paid $380,000 in wages to employees on 1/30 for work done in January.
I. On January 31, received an electric and gas utility bill for $6,260 for January utility services. The bill will be paid in February.
Answer:
Cash 57,750 debit
Account receivables 57,750 credit
--------------------------------------------
Equipment 41,500 debit
cash 11,500 credit
note payable 30,000 credit
--------------------------------------------
Advertising Expense 14,300 debit
cash 14,300 credit
--------------------------------------------
supplies 5,300 debit
account payables 5,300 credit
------------------------------------------
cash 150,000 debit
service revenue 150,000 credit
-------------------------------------------
account payables 5,300 debit
cash 5,300 credit
---------------------------------------------
cash 129,350 debit
account receivables 129,350 debit
services revenue 258,700 credit
---------------------------------------------
wages expense 380,000 debit
cash 380,000 credit
--------------------------------------------
utilities expense 6,260 debit
account payable 6,260 credit
Explanation:
To make thge jounral entries we must follow the basic principles:
debit = credit
and one value per account
Is important to comment that A state the income has been earned so we deduct from account recievables
then. we again receive cash for service earned
In none ofthe case we are doing the recognition of hte deferred revenue so this, stays untouched.
G) 19,900 x $13 each = $258,700
half cash-half credit : 258,700 / 2 = 129,350
In 2014, Elbert Corporation had net cash provided by operating activities of 531,000; net cash used by investing activities of 963,000; and net cash provided by financing activities of 585,000. At January 1, 2014, the cash balance was 333,000. Compute the December 31 2014, cash.
Answer:
December 31 2014, cash = $486,000
Explanation:
To solve this, we will classify the particulars as either income or expenditure,and find the difference. This is shown below:
Particulars income($) expenditure($)
operating activities 531,000 -
investing activities - 963,000
financing activities 585,000 -
January 1 cash balance 333,000 -
Total 1,449,000 963,000
∴ net cash available on December 31 2014 = Total income - expenditure
= 1,449,000 - 963,000 = $486,000
Mark is creating Nu2U, a Web site through which he will enter into contracts over the Internet. In his standard online contract, he includes a provision which states "Any disputes under this contract will be resolved under the laws of the State of Texas." This is an example of a
Answer: Choice of Law Clause
Explanation:
The Choice of Law Clause allows parties in a contract to pick a territory's laws as the laws that the contract between them will be applicable to.
This way uncertainty can be avoided when any of the parties seeks legal redress for any perceived breach of contract.
It is worthy of note that parties do not even need to be from the Territory whose laws have been chosen and this is why some parties look for Territories who have laws that will be favourable to them. This is why most big Corporations pick Delaware law because their laws are perceived to be pro big business.
A company's beginning Work in Process inventory consisted of 21,500 units that were 20% complete with respect to direct labor. These beginning units were completed and another 92,400 units were started during the current period. Of those started, 61,500 were finished and the remaining 30,900 were 40% complete at the end of the period. Using the weighted-average method, the equivalent units of production with regard to direct labor were:
Answer:95,360 units.
Explanation:The equivalent unit of production shows the quantity of work done by a manufacturing company on units of output partially completed at the end of a period.
Equivalent units of production =Units completed(work n progress at beginning + finished goods)+Ending work in progess
=(21,500+61, 500)+(30,900×40%)
=83,000 + 12,360
=95,360 units.
The equivalent units of production for conversion is 95,000 units.
A business will construct its financial statements in a particular order because they are interrelated. This means that items formulated in an earlier statement feed into the subsequent statements, and changes to items on one financial statement can have compounding effects on the overall financial position of a company. Which of the following is one reason the statement of owner's equity is prepared after the income statement?
a. Retained earnings are computed on the income statement.
b. Net income is the beginning retained earnings amount.
c. Retained earnings is really an asset.
d. Net income is part of the computation for ending retained earnings.
Answer: d. Net income is part of the computation for ending retained earnings.
Explanation:
In the statement of owner's equity, Retained earnings are calculated and it is done with the Net Income. This is why when the net income is calculated from the Income Statement it is transfered to the SOE and used to calculate Retained Earnings.
Retained Earnings are calculated by the formula,
Ending Retained = Opening Retained Earnings + Net Income (losses) - Dividends
Net income is added to (or subtracted from if it is a Net loss) the Opening Retained earnings balance. Net dividends are also subtracted.
On January 1, Year 1, Milton Manufacturing Company purchased equipment with a list price of $37,000. A total of $4,000 was paid for installation and testing. During the first year, Milton paid $6,000 for insurance on the equipment and another $700 for routine maintenance and repairs. Milton uses the units-of-production method of depreciation. Useful life is estimated at 100,000 units, and estimated salvage value is $8,000. During Year 1, the equipment produced 14,000 units. What is the amount of depreciation for Year 1
Answer:
Annual depreciation= $4,620
Explanation:
Giving the following information:
Purchasing price= $37,000
Installation= $4,000
Milton uses the units-of-production method of depreciation. Useful life is estimated at 100,000 units, and the estimated salvage value is $8,000. During Year 1, the equipment produced 14,000 units.
First, we will determine the total cost consisting of the purchasing price and all costs to make the equipment operable.
Total cost= 37,000 + 4,000= $41,000
Now, to calculate the depreciation expense, we need to use the following formula:
Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced
Annual depreciation= [(41,000 - 8,000)/100,000]*14,000
Annual depreciation= $4,620
Andrew Manufacturing held an average inventory of $1.1 million (raw materials, work-in-process, finished goods) last year. Its sales were $8.0 million, and its cost of goods sold was $5.8 million. The firm operates 260 days a year. What is the inventory day’s supply? What target inventory level is necessary to reach a 20- and 10-day inventory days supply during the next two years?
Answer:
The Inventory day's supply is 49.3 days supply
The Target inventory level to reach a 20-day inventory days supply is $ 0.446 million
The Target inventory level to reach a 10-day inventory days supply is $ 0.223 million
Explanation:
In order to calculate the inventory day’s supply we would have to calculate the following:
Inventory day's supply = (Average inventory / Cost of goods sold) * 260 days a year
Inventory day's supply = 1.1/5.8)*260
Inventory day's supply = 49.3 days supply
To calculate the target inventory level necessary to reach a 20- and 10-day inventory days supply during the next two years we would have to calculate the following:
Target inventory level to reach a 20-day inventory days supply = (20/260)*5.8 = $ 0.446 million
Target inventory level to reach a 10-day inventory days supply = (10/260)*5.8 = $ 0.223 million
Assume straight-line depreciation. A company plans to purchase machinery costing $1,000,000 with salvage value of $200,000 after 4 years. After-tax net income is expected to be $55,000, $40,000, $35,000, and $30,000 during the 4 years. Calculate the accounting rate of return. Round your answer to the nearest tenth of a percent.
Answer:
Accounting rate of return = 6.67%
Explanation:
The accounting rate of return (ARR) is the proportion of the average investment that is earned as profit.
ARR = average operating income/ Average investment
Average income =( 55,000 + 40,000 + 35,000 + 30,000)/4=40,000
Average investment = initial cost + salvage value/2
= 1,000,000 + 200,000/2 = 600,000
ARR = 40,000/600,000 × 100= 6.67
Accounting rate of return = 6.67%
Answer:
6.7%
Explanation:
Our Lady of the Lake Hospital has assembled a group of employees to engage in planning activities. If the group comprises top executives such as the Chief Executive Officer, Chief Financial Officer, and Chief Marketing Officer, they would likely create
Answer: a. long-term plans.
Explanation:
Long term plans in a business are considered Strategic Plans. Strategic plans aim to formulate general long term goals and visions for what the company aims to do in future and what level they aim to be at.
These types of goals are usually for the policy makers in a company being the Top Executives who are tasked with the long term growth of the company.
The Top Executives come up with these plans and then the Mid and lower level managers come up with tactical and operational plans to meet the objectives of the plans.
The owner of a downtown parking lot has employed a civil engineering consulting frim to advise him on the economic feasibility of constructing an office building on the site. bill samuels, a newly hired civil engineer, has been assigned to make the analysis. he has assembled the following data
alternative total investment total net annual revenue
sell parking lot 0 0
keep parking lot 200,000 22,000
build 1 story building 400,000 60,000
build 2 story building 555,000 72,000
build 3 story building 750,000 100,000
build 4 story building 875,500 105,000
build 5 story building 1,000,000 120,000
The analysis period is be 15 years. for all alternatives, the property has an estimated resale(salvage) value at the end of 15 years equal to the present total investement.
(a) constuct a choice table for interest rate from 0% to 100%
(b) if the MARRR is 10%, what recommendation should bill make?
Answer: The answer has been attached
Explanation:
Base on the MARR been 10%, I'll recommend 3 storey building.
Further explanation has been attached. In the explanation, note that:
I = A/P e.g.
Interest rate for build 1 storey building:
= 60/400 × 100
= 15%
A banking system has a reserve ratio equal to 15%. For every $100 deposited into the banking system, the bank is required to keep 2 at least ____________ on reserve and can therefore lend no more than _________ Instructions: Enter a whole number in each box above.
b. For this banking system, the money multiplier is equal to__________meaning that $100 of cash deposited into the banking system 4 points can be turned into ___________ deposits through the money creation process.
Answer:
A banking system has a reserve ratio equal to 15%. For every $100 deposited into the banking system, the bank is required to keep 2 at least ____$15________ on reserve and can therefore lend no more than ___$85______ Instructions: Enter a whole number in each box above.
b. For this banking system, the money multiplier is equal to_____6.67_____meaning that $100 of cash deposited into the banking system 4 points can be turned into ___$667________ deposits through the money creation process.
Explanation:
a) Reserve Ratio: This is the portion of deposit liabilities that commercial banks must keep, rather than lend out or invest as determined by the country's central bank. In the United States, the Federal Reserve determines the Reserve Ratio and uses it to control the money supply in the economy.
b) The Money Multiplier refers to the change that happens when an initial deposit leads to a bigger final increase in the total money supply. For example, a commercial bank has deposit liability of $1 million and this leads to a final money supply of $10 million. The money multiplier is 10. The formula for calculating the money multiplier is 1/RR, where RR is the Reserve Ratio. This means that the money multiplier is a function of the reserve ratio.
North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December 31. Account Titles Debit Credit Cash $ 12,800 Accounts Receivable 6,800 Prepaid Rent 2,560 Equipment 21,800 Accumulated Depreciation $ 1,080 Accounts Payable 1,080 Income Tax Payable 0 Common Stock 25,600 Retained Earnings 2,900 Sales Revenue 52,400 Salaries and Wages Expense 25,800 Utilities Expense 13,300 Rent Expense 0 Depreciation Expense 0 Income Tax Expense 0 Totals $ 83,060 $ 83,060 Other data not yet recorded at December 31: Rent expired during the year, $1,280. Depreciation expense for the year, $1,080. Utilities used and unpaid, $9,800. Income tax expense, $470. Prepare the adjusting journal entries required at December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Answer:
North Star
Adjusting Journal Entries:
December 31:
Rent Expense $1,280
Prepaid Rent $1,280
To accrue rent for the period.
Depreciation Expense $1,080
Accumulated Depreciation $1,080
To accrue Depreciation charge for the year.
Utilities Expense $9,800
Utilities Payable $9,800
To accrue unpaid utilities.
Income Tax Expense $470
Income Tax Payable $470
To accrue income tax liability.
Explanation:
Adjusting entries are journal entries that are made at the end of an accounting period to ensure that all expenses and incomes pertaining to the period are recognized in accordance with the accrual concept and the matching principle. These accounting concepts require that all expenses incurred whether paid for or not and income whether received or not, which relate to the period, are matched respectively.
g You currently hold an inflation-indexed bond, which pays out real coupons of 10% per year, starting one year from now. The bond has a real face value of $600, and will mature three years from today. If inflation over the next year will be 2% per year for the next three years, what will be the total nominal payment you will receive at the date of maturity
Answer:
$618 dollars
Explanation:
The beginning face value will be our starting position: $600
Then, we have a 2 percent increase over the next three years
this makes for a principal at maturity of:
600 x (1 + 2% x 3 years ) = $618
This makes each coupon return in coins to also increase over time as, they are calcualted based on the adjusted face vale. This method iguarantee the 10% return on the bond regardless of inflation during the period.
Before year-end adjusting entries, Marigold Corp.'s account balances at December 31, 2020, for accounts receivable and the related allowance for uncollectible accounts were $1540000 and $91500, respectively. An aging of accounts receivable indicated that $123000 of the December 31 receivables are expected to be uncollectible. The accounts receivable amount expected to be collected after adjustment is
Answer:
1,417,000
Explanation:
$123000 of the December 31 receivables is to be subtracted from $1540000 of the related allowance for uncollectible accounts
= $1540000 - $123000
= $1,417,000.
The accounts receivable amount expected to be collected after adjustment is $1,417,000
A limited partnership: Multiple Choice May only have two partners. Has owners called stockholders. Includes a general partner with unlimited liability. Is the same as a corporation. Is subject to double taxation.
Answer:
Is the same as a corporation.
Explanation:
The partnership is a firm in which there are two or more partners comes in a contract to share the profit and losses to their profit and losses sharing ratio
A limited partnership is a partnership firm in which the partners have limited liability to their investment but the general partner has unlimited liability
It is just like a corporation who contains limited partners with the limited liability
Business Calculators Inc. will pay an annual dividend of $2.25 per share next year. The company just announced that future dividends will be increasing by 0.75 percent annually. How much are you willing to pay for one share of this stock if you require a rate of return of 12.25 percent?
Answer: $19.57
Explanation:
You should be willing to pay for the what the stock is valued at the moment and you can use the Gordon Growth Model to value this stock.
Formula is,
Vs = D1/ Re - g
Vs = Value of stock
D1 = the next dividend
Re = Required Return
g = growth rate
Value of stock is,
= 2.25 / ( 12.25% - 0.75%)
= $19.565
= $19.57
On July 8, Jones Inc. issued an $62,900, 9%, 120-day note payable to Miller Company. Assume that the fiscal year of Jones ends on July 31. Using the 360-day year, what is the amount of interest expense recognized by Jones in the current fiscal year
Answer:
The amount of interest expense recognized by Jones in the current fiscal year is $361.675
Explanation:
According to the given data Jones Inc. issued an $62,900, 9%, 120-day note payable to Miller Company On July 8, therefore if the the fiscal year of Jones ends on July 31 there 23 days between July 8 and July 31.
So, to calculate the amount of interest expense recognized by Jones in the current fiscal year we would have to make the following calculation:
Interest expense=$62,900*9%*(23/360)
Interest expense=$361.675
The amount of interest expense recognized by Jones in the current fiscal year is $361.675
During the year, the following selected transactions affecting stockholders' equity occurred for Navajo Corporation: a. Feb. 1 Repurchased 230 shares of the company's own common stock at $27 cash per share. b. Jul. 15 Sold 130 of the shares purchased on February 1 for $28 cash per share. c. Sept. 1 Sold 100 of the shares purchased on February 1 for $26 cash per share. Required: 1. Prepare the journal entry required for each of the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
a. Feb. 1
Treasury Shares $6,210 (debit)
Cash $6,210 (credit)
b. Jul. 15
Cash $3,600 (debit)
Common Shares $3,600 (credit)
c. Sept. 1
Cash $2,600 (debit)
Common Shares $2,600 (credit)
Explanation:
The purchase of company own shares is known as Treasury Shares.This decreases the equity element (Treasury Shares) and decreases the Assets of Cash.
Issue of Company own shares increases the Equity element (Common Shares) and decreases the Assets of Cash.
Exhibit 9-1 Refer to Exhibit 9-1. If the economy is self-regulating, the price level is:_________.
a) lower in short-run equilibrium than in long-run equilibrium.
b) lower in long-run equilibrium than in short-run equilibrium.
c) higher in long-run equilibrium than in short-run equilibrium.
d) lower when the economy is in a recessionary gap than when it is in long-run equilibrium.
e) a and c
Answer: b) lower in long-run equilibrium than in short-run equilibrium.
Explanation:
A self regulating economy will try to move to the long run Equilibrium.
From the graph attached you will notice that the Price Level at the point where the Long Run Curve intersects with the Aggregate Demand curve is lower than the point where the Short Run Supply curve intersects with the same Aggregate Supply.
This means that Prices in the long term at equilibrium will be less than prices in the short term at Equilibrium should the Economy be a self regulating type that will move towards a long term Equilibrium.
Frank Barlowe is retiring soon, so he is concerned about his investments providing him with a steady income every year. He is aware that if interest rates , the potential earnings power of the cash flow from his investments will increase. In particular, he is concerned that a decline in interest rates might lead to annual income from his investments. What kind of risk is Frank most concerned about protecting against? Reinvestment rate risk Interest rate risk
Answer:
Increase
less
A) Reinvestment rate risk.
Explanation:
Reinvestment rate risk is demonstrated as the type of financial risk in which the investor is concerned about his investment getting canceled or stopped in the future and the other party/place might not be able to provide a similar rate of return.
In the given situation, Frank Barlowe is concerned about reinvestment risk. He is aware that he will earn a steady income from his investments as he knows that when the interest rates increase, his potential returns would increase and vice versa. But since he is retiring, he has a potential concern that if the investment gets abandoned somehow, he might not be able to reinvest his amount at the same rate and will not be able to continue with steady returns. Thus, option A is the correct answer.
You are considering an investment in a clothes distributer. The company needs $ 110 comma 000 today and expects to repay you $ 121 comma 000 in a year from now. What is the IRR of this investment opportunity? Given the riskiness of the investment opportunity, your cost of capital is 17 %. What does the IRR rule say about whether you should invest?
Answer:
The IRR of this investment opportunity is 10%
The IRR rule says that you should not invest
Explanation:
To calculate the IRR of this investment opportunity we shall calculate the following:
Let the IRR be x.
Now , Present Value of Cash Outflows=Present Value of Cash Inflows
110,000 =121,000/(1.0x)
x= 10%
Hence, the IRR of this investment opportunity is 10%
Cost of Capital = 17%
The IRR rule says that one must not accept. This is because the IRR is lower than the cost of capital.
Hence you should not invest
Journalize the following transactions that occurred in March2018for DubleCompany. Assume Dubleuses the periodic inventory system. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name. Mar. 3 Purchased merchandise inventory on account from Silton Wholesalers, $3,000. Tems 3'1, niEOM, FOB shipping point. 4 Paid freight bill of S70 on March 3 purchase. 5 Purchase merchandise inventory for cash of $2,000. 6 Retumed S700 of inventory from March 3 purchase. 8 Sold merchandise inventory to Herrick Company, $3,400, on account. Terms 2/15, n/35 9 Purchased merchandise inventory on account from Teaton Wholesalers, $5,500. Terms 1/10, n/30, FOB destination. 10 Made payment to Silton Wholesalers for goods purchased on March 3, less return and discount. 12 Received payment from Herrick Company, less discount. 13 After negotiations, received a $300 allowance from Teaton Wholesalers. 15 Sold merchandise inventory to Jeter Company, $2,300, on account. Terms 2/10, nEOM. 22 Made payment, less allowance, to Teaton Wholesalers for goods purchased on March 9 9 10 12 13 15 23 Jeter Company retumed $600 of the merchandise sold on March 15. 25 Sold merchandise inventory to Smede for $1,400 on account. Terms of 2/10, n/30 were offered, FOB shipping point. 26 After negotiations, granted a $300 allowance to Smede for merchandise purchased on March 25. 29 Received payment from Smede, less allowance and discount. 30 Received payment from Jeter Company, less return. 26 29 30
Answer:
Mar. 3 Purchased merchandise inventory on account from Silton Wholesalers, $3,000. Tems 3'1, niEOM, FOB shipping point.
Dr Purchases 3,000
Cr Accounts payable - Silton Wholesalers 3,000
4 Paid freight bill of S70 on March 3 purchase.
Dr Freight in expenses 70
Cr Cash 70
5 Purchase merchandise inventory for cash of $2,000.
Dr Purchases 2,000
Cr Cash 2,000
6 Returned S700 of inventory from March 3 purchase.
Dr Accounts payable - Silton Wholesalers 700
Cr Purchases returns and allowances 700
8 Sold merchandise inventory to Herrick Company, $3,400, on account. Terms 2/15, n/35
Dr Accounts receivable - Herrick Company 3,400
Cr Sales 3,400
9 Purchased merchandise inventory on account from Teaton Wholesalers, $5,500. Terms 1/10, n/30, FOB destination.
Dr Purchases 5,500
Cr Accounts payable - Teaton Wholesalers 5,500
10 Made payment to Silton Wholesalers for goods purchased on March 3, less return and discount.
Dr Accounts payable - Silton Wholesalers
Cr Cash 2,231
Cr Purchase discounts 69
12 Received payment from Herrick Company, less discount.
Dr Cash 3,332
Dr Sales discounts 68
Cr Accounts receivable - Herrick Company 3,400
13 After negotiations, received a $300 allowance from Teaton Wholesalers.
Dr Accounts payable - Teaton Wholesalers 300
Cr Purchases returns and allowances 300
15 Sold merchandise inventory to Jeter Company, $2,300, on account. Terms 2/10, nEOM.
Dr Accounts receivable - Jeter Company 2,300
Cr Sales 2,300
22 Made payment, less allowance, to Teaton Wholesalers for goods purchased on March 9
Dr Accounts payable - Teaton Wholesalers 5,200
Cr Cash 5,200
23 Jeter Company returned $600 of the merchandise sold on March 15.
Dr Sales returns and allowances 600
Cr Accounts receivable - Jeter Company 600
25 Sold merchandise inventory to Smede for $1,400 on account. Terms of 2/10, n/30 were offered, FOB shipping point.
Dr Accounts receivable - Smede 1,400
Cr sales 1,400
26 After negotiations, granted a $300 allowance to Smede for merchandise purchased on March 25.
Dr Sales returns and allowances 300
Cr Accounts receivable - Smede 300
29 Received payment from Smede, less allowance and discount.
Dr Cash 1,078
Dr Sales discounts 22
Cr Accounts receivable - Smede 1,100
30 Received payment from Jeter Company, less return.
Dr Cash 1,700
Cr Accounts receivable - Jeter Company 1,700
Universal Containers wants to provide a more consistent service experience to its customers and is evaluating the Service Cloud macro feature. Which three configurations must be made?
A. Users must use Lightning Experience. B. Publisher Actions used in the macros must be on the page layout.C. The Macros widget or utility must be added to the console.D. The Run Macros Permission must be granted to users.E. The Run Macros Action must be on the page layout.
Answer:
B. Publisher Actions used in the macros must be on the page layout.
C. The macros widget or utility must be added to the console
D. The run Macros permission must be granted to users.
Explanation:
The macros are a function which specifies how an input function should be mapped in the computer software to produce defined output. Macros are used to make tasks less repetitive. The macros can be used in service cloud. To use macros in service cloud the macros permission must be granted to all users, the macros widget must be added to the console and the macros must be on the page layout.
When Sandra and Charles Givens were divorced, the court ordered a division of property and awarded Sandra $65,000. The award was a judgment against Charles, who failed to pay it. Sandra asked the court to find Charles in contempt. Their lawyers had a conference with the judge, and they agreed that Charles would pay $2500 immediately and $300 per month until the judgment was paid in full. Charles alleged that the new payment schedule was a binding contract, because Sandra had accepted his offer of payments. Was it a contract
Answer:
Yes, it is a binding contract.
Explanation:
A contract is a legal binding agreement between two or more parties at the court of law. The agreement could be in terms of money, services, right or duties between the parties involved.
Since a consent has been reached between the two parties before the judge, Charles would pay the sum in the stipulated manner. The acceptance of the offer of payment by Sandra made it a binding contract for Charles, so he is bound by this service until he pays the full amount to Sandra.
The demand curve for the new computer game, Rock and Roll Trivia, is given as follows: Q = 200 - 5P - .1Pc - .5Pd + .2A - I Where P is the price of the game, Pc is the price of a computer, Pd is the price of a diskette, A is the level of advertising, and Q is the level of income. Suppose P = 10, Pc = 100, Pd = 2, A = 5, and I = 50. What is the price elasticity of demand?
Answer:
Income elasticity of demand = - 0.56
Explanation:
Given,
P=10, Pc=100, Pd=2, A=5, and I=50.
So,
Q=200-5(10)-.1(100)-.5(2)+.2(5)-(50).
Q=90 (level of income)
Computation:
Given , I = 50, Q = 90.
ΔQ / ΔI = -1
Income elasticity of demand = (ΔQ / ΔI) x (I / Q)
Income elasticity of demand = - 1 x (50 / 90)
Income elasticity of demand = - 0.56
Each week your supervisor holds a meeting in which he invites you and all the other employees to give feedback regarding current projects. According to path-goal theory, which behavior best describes your supervisor?
1. Supportive
2. Directive
3. Participative
4. Achievement oriented
Answer:
The correct answer is the third option: Participative.
Explanation:
To begin with, the path-goal theory refers to leadership theory developed by Robert House in 1971 and whose main focus is on the behavior that a leader has among its followers and states that the behavior that he has will influece the satisfaction, motivation and performance of his followers.
Secondly, the theory states that there are four behaviors and one of them is the partcipative behavior whose characteristics are that the leader tends to consult with followers and ask for their suggestion before making a final decision and that is why the best behavior that describes correctly to the supervisor is the participative.
Suppose your company reports $160 of net income and $40 of cash dividends paid, and its comparative balance sheet indicates the following. Beginning Ending Cash $ 35 $ 205 Accounts Receivable 75 175 Inventory 245 135 Total $ 355 $ 515 Salaries and Wages Payable $ 10 $ 50 Common Stock 100 100 Retained Earnings 245 365 Total $ 355 $ 515 Required: Prepare the operating activities section of the statement of cash flows, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
Answer and Explanation:
The preparation of the operating activities section of the cash flow statement using the indirect method is shown below:
Cash flow from operating activities
Net income $160
Add or less adjustments made
Less Increase in account receivable $100 ($175 - $75)
Add: Decrease in inventory $110 ($245 - $135)
Add: Increase in salaries and wages payable $40 ($50 - $10)
Net cash provided by operating activities $210
The cash inflow represents in a positive sign and cash outflow represents in negative sign
The operating activities section of the statement of cash flows, using the indirect method is $210.
Cash flow from operating activities
Net income $160
Increase in account receivable ($100)
($175 - $75)
Decrease in inventory $110
($245 - $135)
Increase in salaries and wages payable $40
($50 - $10)
Net cash flow from operating activities $210
Inconclusion the operating activities section of the statement of cash flows, using the indirect method is $210.
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