Answer:
$29.56
Explanation:
The computation of unit product cost is shown below:-
Unit product cost = (Direct material + Direct labor + Manufacturing overhead) ÷ Number of units completed
= ($44,000 + (63 × $12) + ($12 × 630)) ÷ 2,000
= ($44,000 + $7,560 + $7,560) ÷ 2,000
= $59,120 ÷ 2,000
= $29.56
Therefore for computing the unit product cost we simply applied the above formula.
A Deloitte employment survey asked a sample of human resource executives how their company planned to change its workforce over the next months. A categorical response variable showed three options: The company plans to hire and add to the number of employees, the company plans no change in the number of employees, or the company plans to lay off and reduce the number of employees. Another categorical variable indicated if the company was private or public. Sample data for companies are summarized as follows. Company Employment Plan Private Public Add Employees 39 32 No Change 21 36 Lay Off Employees 12 44 a. Conduct a test of independence to determine if the employment plan for the next months is independent of the type of company. At a level of significance. Compute the value of the test statistic (to 2 decimals).
The missing figures in the question is shown in bold format.
Also the table is better constructed for clearer understanding when answering the question.
A Deloitte employment survey asked a sample of human resource executives how their company planned to change its workforce over the next 12 months. A categorical response variable showed three options: The company plans to hire and add to the number of employees, the company plans no change in the number of employees, or the company plans to lay off and reduce the number of employees. Another categorical variable indicated if the company was private or public. Sample data for 180 companies are summarized as follows.
Company
Employment Plan Private Public
Add Employees 39 32
No Change 21 36
Lay Off Employees 12 44
a. Conduct a test of independence to determine if the employment plan for the next 12 months is independent of the type of company. At a level of 0.05 significance. Compute the value of the test statistic (to 2 decimals).
Answer:
Explanation:
From the table in the question; we can see the changes in employees adding, shedding, or not changing their staffing.
Company
Plan Private Public
Add 39 32
Number Change 21 36
Lay Off 12 44
The hypothesis are:
[tex]\mathbf{ H_o : Column \ independent \ of \ row}\\ \\ \mathbf{ H_a : Column \ is \ dependent \ of \ row}[/tex]
Using the following relation of variables given to determine expected frequencies ; we have :
[tex]\mathbf{e_f = \dfrac{(row _i)(column_j)}{Total \ sample}}[/tex]
From the above table ; the first row show the total entries of 72
The first column shows the total of 72
[tex]\mathbf{e_f = \dfrac{(39+32)(72)}{180}} \\ \\ \mathbf{e_f = 28.80}}[/tex]
The expected value for the first row, first column is 28.80
Repeating the same process for others;
For the first row ; second column we have :
[tex]\mathbf{e_f = \dfrac{(39+32)(112)}{180}} \\ \\ \mathbf{e_f = 44.80}}[/tex]
For the second row ; first column we have :
[tex]\mathbf{e_f = \dfrac{(21+36)(72)}{180}} \\ \\ \mathbf{e_f = 22.80}}[/tex]
For the second row ; second column we have :
[tex]\mathbf{e_f = \dfrac{(21+36)(112)}{180}} \\ \\ \mathbf{e_f = 35.47}}[/tex]
For the third row ; first column we have :
[tex]\mathbf{e_f = \dfrac{(12+44)(72)}{180}} \\ \\ \mathbf{e_f = 22.40}}[/tex]
For the third row ; second column we have :
[tex]\mathbf{e_f = \dfrac{(12+44)(112)}{180}} \\ \\ \mathbf{e_f = 34.84}}[/tex]
Company
Plan Private Public Total
Add 28.80 44.80 73.60
Number Change 22.80 35.47 58.27
Lay Off 22.40 34.84 57.24
Converting the table to chi- squared using the relation.
[tex]\mathbf{x^2 = \sum_i ( \dfrac{f_y-e_f}{e_f})^2}[/tex]
where;
[tex]f_y[/tex] = observed frequency from the original table
From the original above table ;
for the first row (1)
the observed frequency is = 39
the expected frequency is = 28.80
[tex]\mathbf{x^2 = \sum_i ( \dfrac{39-28.80}{28.80})^2} \\ \\ \mathbf{x^2 =3.6125}[/tex]
for the first row (2)
the observed frequency is = 32
the expected frequency is = 44.80
[tex]\mathbf{x^2 = \sum_i ( \dfrac{32-44.80}{44.80})^2} \\ \\ \mathbf{x^2 =3.6571}[/tex]
for the second row (1)
the observed frequency is = 21
the expected frequency is = 22.80
[tex]\mathbf{x^2 = \sum_i ( \dfrac{21-22.80}{22.80})^2} \\ \\ \mathbf{x^2 =0.1421}[/tex]
for the second row (2)
the observed frequency is = 36
the expected frequency is = 35.47
[tex]\mathbf{x^2 = \sum_i ( \dfrac{36-35.47}{35.47})^2} \\ \\ \mathbf{x^2 =0.0079}[/tex]
for the third row (1)
the observed frequency is = 12
the expected frequency is = 22.40
[tex]\mathbf{x^2 = \sum_i ( \dfrac{12-22.40}{22.40})^2} \\ \\ \mathbf{x^2 =4.8286}[/tex]
for the third row (2)
the observed frequency is = 44
the expected frequency is = 34.84
[tex]\mathbf{x^2 = \sum_i ( \dfrac{44-34.84}{34.84})^2} \\ \\ \mathbf{x^2 =2.4083}[/tex]
Company
Plan Private Public Total
Add 3.6125 3.6571 7.2696
Number Change 0.1421 0.0079 0.15
Lay Off 4.8286 2.4083 7.2369
Total [tex]x^2 =[/tex] 14.657
Hence, the total chi-square = 14.657;
To find the value for p; we need to determine the degree of freedom
df = (2-1)(3-1)
that result to a degree of freedom of 2
From the chi square chart at the chi-square is 14.657 and degree of freedom is 2 ; the p value is between 0.1 and 0.005. Since this makes p-value less than 0.05.
We rejected [tex]\mathbf{ H_o}[/tex]
Thus; the variables are dependent. We can conclude that the employment plan and the company are significantly related.
Suppose that a 1-year zero-coupon bond with face value $100 currently sells at $90.37, while a 2-year zero sells at $77.15. You are considering the purchase of a 2-year-maturity bond making annual coupon payments. The face value of the bond is $100, and the coupon rate is 9% per year. a. What is the yield to maturity of the 2-year zero?(Do not round intermediate calculations. Round your answers to 3 decimal places.)
Answer:
The yield to maturity on the 2 year-zero coupon bond is 13.85% as computed in the explanation section below
Explanation:
The yield to maturity on the 2-year-zero coupon bond can be computed using the rate formula in excel as shown thus:
=rate(nper,pmt,-pv,fv)
nper is the number of annual coupon payments which is 2
pmt is the amount of annual coupon payment which is zero since it is a zero coupon bond
pv is the current price of the bond which is $77.15
fv is the face value of the bond which is $100
=rate(2,0,-77.15,100)=13.85%
On October 10, a company paid $36,000 to a supplier. Of that amount, $6,000 was for supplies received on October 10 and $30,000 was for supplies that were purchased on account during September. The journal entry to record the $36,000 payment would include a debit to:
Answer:
Debit to :
Supplies Inventory $6,000
Trade Payable $30,000
Explanation:
Here the $6,000 payment will increase the Assets of Supplies Inventories and decrease the Assets of Cash. The $30,000 payment will decrease the Liability - Trade Payable and decrease the Assets of Cash.
The Journal is provided as follows :
Supplies Inventory $6,000 (debit)
Trade Payable $30,000 (debit)
Cash $36,000 (credit)
Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common stock outstanding as of the beginning of 2018.Power Drive has the following transactions affecting stockholders' equity in 2018.March 1 Issues 58,000 additional shares of $1 par value common stock for $55 per share.May 10 Repurchases 5,300 shares of treasury stock for $58 per share.June 1 Declares a cash dividend of $1.65 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.)July 1 Pays the cash dividend declared on June 1.October 21 Reissues 2,650 shares of treasury stock purchased on May 10 for $63 per share.Power Drive Corporation has the following beginning balances in its stockholders' equity accounts on January 1, 2018: Common Stock, $100,000; Additional Paid-in Capital, $4,800,000; and Retained Earnings, $2,300,000. Net income for the year ended December 31, 2018, is $630,000.Required:Prepare the statement of stockholders’ equity for Power Drive Corporation for the year ended December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)
Answer and Explanation:
The Preparation of statement of stockholders’ equity is shown below:-
Statement of Stockholder's Equity
Power Drive Corporation
For the year ended December 31, 2018
Particulars Common Additional Retained Treasury Total
stock paid in Earning Stock Stockholder
capital equity
Jan 1 Balance 100,000 $4,800,000 $2,300,000 0 $7,200,000
Issued common
stock 58,000 $3,132,000 0 0 $3,190,000
(58,000 × $1) (58,000 × $54)
Purchase treasury
stock -$307,400 -$307,400
(5,300 × $58)
Dividends -$251,955 -$251,955
((100,000 + 58,000 - 5,300) × $1.65)
Sale of Treasury
stock $13,250 $153,700 $166,950
(2,650 × $5) (2,650 × $58)
Net Income $630,000 $630,000
Balance,
December
31 158,000 $7,945,250 $2,678,045 -$153,700 $10,627,595
Total Stockholder's equity is
= Common stock + Additional paid in capital + Retained earnings - Treasury stock
= 158,000 + $7,945,250 + $2,678,045 - $153,700
= $10,627,595
Homeowners enjoy many benefits, including a federal tax deduction for state and local property taxes paid. Fishers, Indiana, was voted one of the top 100 best places to live in 2017 by Money magazine. With population of 86,357, a median home price of $236,167, and estimated property taxes at 10.6 mills, how much does the average homeowner pay in property taxes?
Answer:
The average homeowner pay $2,503.37 in property taxes
Explanation:
Population = 86,357
Median home price = $236,167
Estimated property taxes = 10.6 mills
Property Tax 1 Mills equals to 1/1000 Units . That Means Property tax Need to pay $1 For $1000 Assets able value .
Average homeowner pay in property taxes = Home Price × (Mills ÷ 1000)
= $236,167 × (10.6 ÷ 1000)
= $236,167 × 0.0106
=$2,503.37
In March of 2019, Thomas makes a $5,000 cash contribution to a public university. In that month, he also donates $20,000 to an organization subject to the 30 percent limitation. Thomas has adjusted gross income for 2019 of $30,000. What is the amount of Thomas's 2019 charitable contribution deduction?
Answer:
The amount of Thomas's 2019 charitable contribution deduction is $14,000
Explanation:
In order to calculate the amount of Thomas's 2019 charitable contribution deduction we would have to calculate the following:
amount of Thomas's 2019 charitable contribution deduction =Cash contribution + [30% of adjusted gross income or actual property ,whichever is lower]
amount of Thomas's 2019 charitable contribution deduction = $5,000+ [(30%* $30,000) or $20,000 ,whichever is lower]
amount of Thomas's 2019 charitable contribution deduction =$5,000 [ $9,000 or $20,000]
amount of Thomas's 2019 charitable contribution deduction= $5,000 + $9,000
amount of Thomas's 2019 charitable contribution deduction= $14,000
Suppose that the government spending multiplier is 3.2 and the tax multiplier is 2.9. This means that, if prices are constant, a $200 billion rise in government spending will __________________, and a $200 billion cut in taxes will _____________________.
Answer:
At constant prices, a $200 billion rise in government spending will increase Real GDP by 640 billion
and;
A $200 billion cut in taxes will increase real GDP by 580 billion
Explanation:
Government spending multiplier = 3.2
Tax multiplier = 2.9
Mathematically;
ΔY/ΔG = 3.2
ΔY/200 = 3.2
ΔY = 200 * 3.2
ΔY = 640 billion
Cut in taxes;
Tax multiplier = 2.9
ΔY/ΔT = 2.9
ΔY/200 = 2.9
ΔY = 2.9 * 200
ΔY = 580 billion
The following items are taken from the financial statements of the Freight Service for the year ending December 31, 2016:
Accounts payable $ 19,000
Accounts receivable 13,000
Accumulated depreciation – equipment 26,000
Advertising expense 21,200
Cash 15,000
Owner’s capital (1/1/16) 104,000
Owner’s drawings 11,000
Depreciation expense 12,000
Insurance expense 3,800
Note payable, due 6/30/17 72,000
Prepaid insurance (12-month policy) 7,200
Rent expense 16,000
Salaries and wages expense 32,000
Service revenue 135,000
Supplies 5,000
Supplies expense 6,000
Equipment 210,000
What is the company’s net income for the year ending December 31, 2016?
Answer:
Freight Service
Income Statement for the year ending December 31, 2016:
Service Service $135,000
Costs:
Advertising expense 21,200
Depreciation expense 12,000
Insurance expense 3,800
Rent expense 16,000
Salaries & Wages exp 32,000
Supplies expense 6,000
Total Expenses $91,000
Net Income $44,000
Explanation:
In calculating the net income for the year, only revenue and expenses (income statement) items are taken into account. They are also called temporary or period accounts which are closed to the income statement for the period, because they are not permanent accounts. Permanent accounts are taken to the balance sheet and carried over to the next accounting period.
"Cincinnati Supply, Co. is a local supplier to the Kraft Heinz Company, which is the third-largest food and beverage company in North America and the fifth-largest food and beverage company in the world. Cincinnati Supply, Co. purchased new furniture at a cost of $33,000 on January 1. The furniture is estimated to have a useful life of 6 years and a $3,000 salvage value. The company uses the straight-line method of depreciation. What is the amount of depreciation expense reported on December 31
Answer:
Annual depreciation= $5,000
Explanation:
Giving the following information:
Purchasing price= $33,000
Salvage value= $3,000
Useful life= 6 years
To calculate the depreciation expense under the straight-line method, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (33,000 - 3,000)/6
Annual depreciation= $5,000
Managers can use CSR and sustainability information as important feedback to guide decision making in a variety of areas. Which of the following areas is least likely to be impacted by this feedback?
a. cost control decisions
b. FASB compliance with U.S. GAAP
c. strategic and operational areas
d. resource allocation decisions
Answer:
Option B. FASB compliance with U.S. GAAP
Explanation:
Because FASB is an independent body and publishes amendmends in Accounting standards which are internationally accepted so it has nothing to do with the US GAAP. Our decision making impact can be seen on the matters that are dependent on us not on the things we don't have control of or if they independent body. So the least impacted would be FASB compliance with US GAAP.
Whereas the rest of options are controlled by the managers so they can be easily influenced by the decision making power of the managers.
Of the following steps of the Accounting Cycle, which step should be completed first? a. Transactions are posted to the general ledger. b. Closing entries are journalized and posted to the ledger. c. Adjusting entries are journalized and posted to the general ledger. d. Financial statements are prepared.
Answer:
a. Transactions are posted to the general ledger.
Explanation:
Accounting cycle is an arrangement of accounting procedure in a systematic order during the accounting year for each accounting information.
The first step in accounting cycle is to analyze the given date and classify them accordingly, after which the transaction will be journalized. The next step is to Post transactions to the general ledger. Next is to prepare trial balance(unadjusted) and then record the adjusting entries. After this step, the adjusted trial balance is then prepared before preparing the financial statement and then record the closing entries.
According to the Marketing Concept, a. Companies produce only what customers want. b. A company should produce only basic products. c. Managements primary task is to convince buyers to purchase what we produce. d. Management’s most important task is to keep production costs low. e. ALL OF THE ABOVE. f. NONE OF THE ABOVE
Answer:
The answer is A
Explanation:
Companies should produce what customers want based on the marketing concept. Companies and customers are dependent on each other. Companies should focus on producing goods which consumers/customers want. These companies should think of what consumers want and the prices they would pay since it is the consumer that creates demand for goods and services that are produced by the company.
Therefore companies should produce only what consumers want else they would produce goods and services with little demand.
What is fixed and variable cost?
Answer:
Okay, so fixed costs are costs that are consistant in their price (buildings, rent, machinery, etc.). Variable costs are costs that change based on production (wages, materials, utilities, etc.).
Hope this helps :)
Explanation:
Explained above.
Shulman Inc. has the following data, in thousands. Assuming a 365-day year, what is the firm's cash conversion cycle? Annual sales = $45,000 Annual cost of goods sold = $30,000 Inventory = $4,500 Accounts receivable = $1,800 Accounts payable = $2,500
Answer:
38.93
Explanation:
Firm Cash Conversion Cycle = Inventory Conversion Period + Average Collection Period - Payable Deferral Period
Inventory Conversion Period = 365 * Inventory / Annual cost of goods sold
365 days * 4500 / 30000 = 54.75
Average Collection Period = 365 days * Account receivable / sales
= 365 * 1800 / 45000 = 14.60
Payable Deferral Period = 365 days * Account payable / sales = 365 * 2500 / 30000 = 30.42
Hence, Firm Cash Conversion Cycle = 54.75 + 14.60 - 30.42 = 38.93
The firm Cash Conversion Cycle is 38.93
Uniform Supply accepted a $8,800, 90-day, 9% note from Tracy Janitorial on October 17. What entry should Uniform Supply make on January 15 of the next year when the note is paid? (Assume reversing entries are not made.). (Use 360 days a year.)
Answer:
Dr cash($8800+$33+$165) $8,998
Cr notes receivable $8,800
Cr interest revenue $33
Cr interest receivable $165
Explanation:
As at January 15 when the note is received ,there is need to recognize interest revenue for 15 days of January i.e 15/360*9%*$8800=$33
From October 17 to December 31 ,interest receivable amount already recognized as revenue=75/360*9%*$8800=$165
The actual of amount of notes receivable is the original amount of $8,800
Bob's lawn-mowing service is a profit-maximizing, competitive firm. Bob mows lawns for $30 each. His total cost each day is $320, of which $70 is a fixed cost. He mows 10 lawns a day. In the short run, Bob should____________ . In the long run, Bob should__________ the industry.
Answer:
In the short run, as long as the contribution margin is positive he should continue in the industry. In the long run, if the company keeps losing money, he should leave the industry.
Explanation:
Giving the following information:
Bob mows lawns for $30 each. His total cost each day is $320, of which $70 is a fixed cost. He mows 10 lawns a day.
First, we need to calculate the unitary variable cost:
Total variable cost= 320 - 70= 250
Unitary varaible cost= 250/10= $25
Contribution margin= 30 - 25= $5
In the short run, as long as the contribution margin is positive he should continue in the industry. In the long run, if the company keeps losing money, he should leave the industry.
A firm buys on terms of 3/15, net 45. It does not take the discount, and it generally pays after 85 days. What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year? The firm's APR of not taking the trade credit is ____. (If you use percent, then do not use the percent sign. Go two places to the right of the decimal point (XX.XX). If you use decimal places, then go four places to the right of the decimal place. 0.XXXX). 0.1613
Answer:
What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year? The firm's APR of not taking the trade credit is 0.1613.
Explanation:
The nominal cost of its non-free trade credit = the discounts lost for paying late.
In this case, the seller offers a 3% discount if the firm pays within 15 days.
annual financial cost = [discount / (100% - discount)] x [365 / (repayment time - discount period)]
annual financial cost = [3% / (100% - 3%)] x [365 / (85 - 15)] = (3% / 97%) x (365 / 70) = 0.1613 or 16.13%
1. Which of the following is an example of the resource-based view of the firm? a. Philip Morris diversified by purchasing Kraft foods, because they did not want to put money back in the high-risk cigarette business. b. Google hires employees by asking them to fill out a 200-item questionnaire; many of the questions have nothing to do with computers. c. Halliburton takes advantage of the US war budget to bill the government at over $5 per gallon of gasoline. d. Canon manufactures scanners, printers, copiers and cameras, all using its capability in imaging.
Answer:
An example of the resource-based view of the firm is:
d. Canon manufactures scanners, printers, copiers and cameras, all using its capability in imaging.
Explanation:
The resource-based view is a model or framework for examining the potentials an organization possesses to develop a competitive advantage over other competitors. By applying this model, management sees resources as key to superior firm performance. It therefore focuses its attention on internal resources in an effort to identify those assets, capabilities, and competencies with the potential to deliver superior competitive advantages.
The other approaches mentioned do not consider the firm's internal capabilities as a means of competitive advantage.
The board of directors of Capstone Inc. declared a $0.80 per share cash dividend on its $1 par common stock. On the date of declaration, there were 48,000 shares authorized, 16,000 shares issued, and 5,000 shares held as treasury stock. What is the entry when the dividends are declared
Answer and Explanation:
The journal entry when the dividend is declared is shown below:
Cash Dividend A/c Dr $8,800 {(16,000 shares - 5,000 shares) × $0.80}
To Dividend payable A/c $8,800
(Being the dividend is declared)
for recording this we debited the cash dividend as it increased the balance of dividend and credited the dividend payable as it also increased the liabilities
Common stocks typically have which of the following that bonds do NOT have?
I. Voting rights
II. Fixed cash flows
III. Set maturity date
IV. Tax deductibility of cash flows to investors
a) i only
b) i,ii and iv only
c) ii,iii and iv only
d) iv only
e) i, ii,iii and iv
Answer:
The correct option is A, i only
Explanation:
The voting right attached to common stock means that common stockholders being the original owners of the company have the right to attend the company annual general meetings and vote on issues concerning the efficient running of the company as well as election of board of directors.
Fixed cash flows of annual or semiannual coupon interest, set maturity date including the tax deductibility of cash flows to investors are all features of bonds.
A firm is about to undertake the manufacture of a product, and is weighing the process configuration options. There are two intermittent processes under consideration, as well as a repetitive focus. The smaller intermittent process has fixed costs of $3,000 per month, and variable costs of $10 per unit. The larger intermittent process has fixed costs of $12,000 and variable costs of $2 per unit. A repetitive focus plant has fixed costs of $50,000 and variable costs of $1 per unit.a. At what output does the large intermittent process become cheaper than the small one?b. At what output does the repetitive process become cheaper than the larger intermittent process?
Answer:
A.$1,125
B.$38,000
Explanation:
Using this formula:
Fixed Cost of Process B- Fixed Cost of Process A ÷Unit Variable cost of Process A – Unit Variable Cost of Process B
a.
Where:
Fixed Cost =$12,000
Fixed Cost =$3,000
Unit Variable =10
Unit Variable =2
Hence:
(12,000-3,000)/ (10-2)
=$9,000/8
= $1,125
This means that large intermittent process become cheaper than the small one by $1,125
b.
Fixed Cost =$50,000
Fixed Cost =$12,000
Unit Variable =2
Unit Variable =1
(50,000-12,000)/ (2-1)
=$38,000/1
= 38,000
This means that repetitive process become cheaper than the larger intermittent process by $38,000
At the end of 2001, Lehnhoff Inc. had $75 million in cash on its balance sheet. During 2002, the following events occurred: The cash flow from Lehnhoff's operating activities totaled $325 million. Lehnhoff issued $500 million in common stock. Lehnhoff's notes payable decreased by $100 million. Lehnhoff purchased fixed assets totaling $600 million. How much cash did Lehnhoff Inc. have on its balance sheet at the end of 2002
Answer:
The multiple choices are:
a. $200 Million
b. $50 Million
c. $1.4 Billion
d. $100 Million
The correct option is A,$200 million
Explanation:
The increase in cash recorded from the statement of cash flows prepared in the year plus the opening balance of cash at the beginning of the year gives the cash balance at the end of the year shown below:
Increase in cash in the year=cash flow from operations+cash flow from financing activities-cash flow used on investing activities
increase in cash in the year=$325+($500-$100)-$600=$125 million
cash at the end of the year=$125 +$75=$200 million
On January 1, Year 1, the Accounts Receivable balance was $21,000 and the balance in the Allowance for Doubtful Accounts was $1,900. On January 15, Year 1, an $530 uncollectible account was written-off. What is the net realizable value of accounts receivable immediately after the write-off
Answer:
$19,100
Explanation:
Accounts receivable represents amount owed to a business by its customers for products or services offered. It is payable in the future.
When collection is uncertain the amount is put in doubtful account.
If an amount is confirmed to be uncollectible it is written off as a loss
In this scenario we are calculating realisable value after write-off
Account receivable after write-off = Account receivable balance - Uncollectible amount
Account receivable after write-off= 21,000 - 530= $20,470
Allowance balance after write-off= Doubtful account - Uncollectible account
Allowance balance after write-off= 1,900 - 530 = $1,370
Net realisable value after write-off= 20,470 - 1,370= $19,100
The city football stadium is dangerous and there is a need to build a new city football stadium for both safety and size reasons. The city must have land adjoining the current stadium to enlarge. A condemnation proceeding to take the land is initiated against the land owner. This is an example of:
Answer:
Police power.
Explanation:
This form of power is sternly found in the law of the united states of america. It was been arranged and strongly enforced in the tenth amendment of the constitution. This law is said to be carried out by the higher authorities or state to protect and enforce order within their range for benefit of the environment, people and inhabitants.
And it is generally known that the states/authorities can possibly come all out to enforce this law no matter how hard they seem to come against the individual, provided his/her humans rights are not been tampered.
(1) From the case above, identify four factors within the general environment of Jessops Group Limited..
Answer:
The four factors within the general environment of Jess-ops Group Limited are macroeconomic factor, technological factor, regulatory factor, and social factor.
Explanation:
The general environment can be described as the larger environment in which the company operate.
The four factors within the general environment of Jess-ops Group Limited are macroeconomic factor, technological factor, regulatory factor, and social factor.
Note: These factors are explained in the attached file as there was a difficulty in submitting the explanation here.
Changes in reserve requirements to conduct monetary policy is generally not a good idea for the United States because:
A)it requires approval of Congress and this can take too long.
B)it takes a long time to work whereas other tools are much quicker.
C)this tool is powerful and makes it difficult for bank managers to plan for the future and manage funds as they like.
D)the United States is too large of a country to use this tool.
Answer: this tool is powerful and makes it difficult for bank managers to plan for the future and manage funds as they like.
Explanation:
Reserve requirements are the amount of money that a bank holds in its reserve to ensure that it can meet liabilities in the case of sudden withdrawals. The reserve requirement is a tool that is used by the central bank of a country to either increase or decrease the money supply in the economy and also influence interest rates.
The changes in reserve requirements to conduct monetary policy is not a good idea for the United States because it is a powerful tool which makes it hard for bank managers to make future plans and manage funds as they want. In a situation whereby small variation in the reserve ratio brings about huge changes in an economy, the changes are positive and okay but in a situation whereby they bring about negative effect, it will be hard to face such scenarios.
On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market (effective) interest rate of 8%, receiving cash of $37,282,062. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.
Required:1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.2. Journalize the entries to record the following:*A. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method.
B. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the straight-line method.
3. Determine the total interest expense for Year 1.4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest?5. Compute the price of $37,282,062 received for the bonds by using the present value tables
Answer:
1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.
Dr Cash 37,282,062
Dr Discount on bonds payable 2,717,938
Cr Bonds payable 40,000,000
2. Journalize the entries to record the following:*A. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method.
Dr Interest expense 1,535,897
Cr Cash 1,400,000
Cr Discount on bonds payable 135,897
B. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the straight-line method.
Dr Interest expense 1,535,897
Cr Cash 1,400,000
Cr Discount on bonds payable 135,897
3. Determine the total interest expense for Year 1.
Interest expense 1,535,897
4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest?
Yes, when the bond's interest rate is lower than the market rate, the bonds will be sold at a discount (less than face value). The market rate applicable to this bond issuance is the one used for similar bonds, so the market rate can change depending on the bond.
5. Compute the price of $37,282,062 received for the bonds by using the present value tables
the value of the bonds = PV of face value + PV of coupons
PV of face value = $40,000,000 / (1 + 4%)²⁰ = $18,255,478PV of annuity = $1,400,000 x PV annuity 4% for 20 periods = $1,400,000 x 13.59033 = $19,026,462total value = $18,255,478 + $19,026,462 = $37,281,940
There is a small difference, $122, due to rounding errors from the annuity table. But the error is not significant, it represents only 0.0003% of the bonds' price.
Explanation:
issued $40,000,000 of 10-year, 7% bonds at a market (effective) interest rate of 8%, receiving cash of $37,282,062
coupon payment = $40,000,000 x 7% x 1/2 = $1,400,000
semiannual coupon paid December 31 and June 30
Discount on bonds payable $2,717,938 / 20 coupons = $135,896.90 ≈ $135,897 per coupon payment
Suppose that the world price of oil is $70 per barrel and that the United States can buy all the oil it wants at this price. Suppose also that the demand and supply schedules for oil in the United States are as follows:Price ($ Per Barrel) U.S. Quantity Demanded) U.S. Quantity Supplied68 16 470 15 672 14 874 13 1076 12 12a) Draw the supply and demand curve for the United Statesb) With free trade in oil, what price will Americans pay for their oil? What quantity will Americans buy? How much of this will be supplied by American producers? How much will be imported?
Answer:
The supply and demand curves for the United States are shown in the graphs attached.
Explanation:
Free trade in oil implies that a country in the international oil market can import as much oil as it wants and export as much oil as it wants.
The costs of demand and the revenues obtained in each case are given below:
QD1 cost = 68 × 70 = $4,760
QS1 revenue = 16 × 70 = $1,120
QD2 cost = 470 × 70 = $32,900
QS2 revenue = 15 × 70 = $1,050
QD3 cost = 672 × 70 = $47,040
QS3 revenue = 14 × 70 = $980
QD4 cost = 874 × 70 = $61,180
QS4 revenue = 13 × 70 = $910
QD5 cost = 1076 × 70 = $75,320
QS5 revenue = 12 × 70 = $840
Find the graph attachments.
Fox Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,150 2 1,030 3 1,520 4 1,880 a. If the discount rate is 11 percent, what is the present value of these cash flows
Answer:
The answer is $4,221.77
Explanation:
Present value = Cash flow/(1+r)^n
where n is the number of years
Cash flow 1:
$1,150/1.11^1
=$1,036
Cash flow 2:
$1,030/1.11^2
=$835.97
Cash flow 3:
$1,520/1.11^3
=$1,111.41
Cash flow 4::
$1,880/1.11^4
=$1,238.39
Present Value of all the cash flows is
$1,036 + $835.97 + $1,111.41 + $1,238.39
=$4,221.77
Causwell Company began 2018 with 11,000 units of inventory on hand. The cost of each unit was $4.00. During 2018 an additional 35,000 units were purchased at a single unit cost, and 21,000 units remained on hand at the end of 2018 (25,000 units therefore were sold during 2018). Causwell uses a periodic inventory system. Cost of goods sold for 2018, applying the average cost method, is $108,750. The company is interested in determining what cost of goods sold would have been if the FIFO or LIFO methods were used. Required: 1. Determine the cost of goods sold for 2018 using the FIFO method. [Hint: Determine the cost per unit of 2018 purchases.] 2. Determine the cost of goods sold for 2018 using the LIFO method.
Answer and Explanation:
For computing the cost of goods sold under two method first we have to determine the cost per unit which is shown below:
The average cost per unit is
= $108,750 ÷ 25,000 units
= $4.35
Now the cost per unit is
Total cost (11,000 units + 35,000 units) × $4.35 $200,100
Beginning units (11,000 units × $4) $44,000
The Remaining cost for 35000 units ($200,100 - $44,000) $156,100
Divide by Purchase cost per unit of 35000 units $4.46
Now the cost of goods sold are as follows
1. Under the FIFO method
Beginning 11,000 × $4.00 $44,000
Purchased 14,000 × $4.46 $62,440
Total 25,000 $1,06,440
2. Under the LIFO method
Purchased 25,000 × $4.46 $1,11,500