Answer:
Fixed
Explanation:
The government keeps the exchange rate FIXED the the same rate.
A bond with a coupon rate of 5.16 percent and semiannual coupon payments matures in 12 years. The YTM is 6.37 percent. What is the effective annual yield?
Answer:
6.47%
Explanation:
The computation of effective annual yield is shown below:-
Annual YTM = 6.37%
Semiannual YTM = 6.37% ÷ 2
= 3.185%
Effective Annual Yield = (1 + Semiannual YTM)^2 - 1
= (1 + 0.03185)^2 - 1
= 1.03185^2 - 1
= 1.0647 - 1
= 0.0647
or
= 6.47%
Hence, the effective annual yield is 6.47% i.e come after applying the above formula
If A, B, and C are three activities connected with SS and FF (combination) relationships with 2-day lag on the SS relationships only. Their durations are 5, 10, and 3; respectively. What is the duration of the project:
Answer:
22 days
Explanation:
number of activities : 3 ( A,B,C)
connected via : SS and FF combination. days lag on SS and F = 2
Durations : 5,10 and 3
A and B is connected by SS and there is a 2-day lag on the SS connection, this means that B will start 2 days after A have ended
i.e when T = 0 , B will start : 5 +2 = 7 days and end in 17 days
while B and C is connected by FF and there is also a 2-day lag on the FF connection, this means that C will start after B has ended and end in 2 days
i.e when B ends at 17 days ; C starts = 17 + 2 = 19 DAYS
hence the project will end in 19 + 3 = 22 days ( i.e when C ends )
Seller Blake's home just hosted a caravan for his agent's brokerage. What should he or his agent do to get feedback from the other licensees?
Answer:
Ask each agent to fill out an evaluation.
Explanation:
Since in the question it is mentioned that the Seller blake hosted a caravan for the brokerage of the agent and to get the feedback from the other licensees he should ask for evalulation filling in order to provide the better presentation and the other types of the feedback with related to the property
Therefore the last option is correct
The integration of the lowest level of the WBS with the organizational units responsible for performing the work is known as
Answer:
Organization breakdown structure.
Explanation:
This structure is used to show the people who would be working on a project.
Organization Breakdown Structure is in hierarchy and it explains the built organizational framework useful for project planning, resource management, time and expense tracking e.tc. it tells us the Employees that have been assigned to do particular projects, using knowledge, skills and the ability to do a task from start till finish.
Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $2,292,384 as follows. Work in process, November 1 Materials $78,900 Conversion costs 48,300 $127,200 Materials added 1,598,460 Labor 225,200 Overhead 341,524 Production records show that 35,200 units were in beginning work in process 30% complete as to conversion costs, 663,700 units were started into production, and 25,900 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.Required:a. Determine the equivalent units of production and the unit production costs for the Assembly Department.b. Determine the assignment of costs to goods transferred out and in process.c. Prepare a production cost report for the assembly dept.
Answer:
Rivera Company
a1) Equivalent Unit
Materials Conversion
Started & completed 673,000 673,000
WIP 25,900 10,360
Equivalent Units 698,900 683,360
a2) Cost per equivalent unit:
Materials Conversion Total Costs
Costs added $1,598,460 $566,724
Beginning WIP 78,900 48,300
Total costs $1,677,360 $615,024
Equivalent Units 698,900 683,360
Costs per equivalent $2.4 $0.90 $3.30
Costs attributable:
Materials Conversion Total Costs
Started and completed $1,615,200 $605,700 $2,220,900
WIP, November 30 62,160 9,324 71,484
Total costs $1,677,360 $615,024 $2,292,384
c. RIVERA COMPANY
Assembly Department
Production Cost Report
For the month ended November 30,2020
Equivalent units
Quantities Physical Unit Materials Conversion Costs
Units to be accounted for:
Work in process, November 1 35,200
Started into production 663,700
Total units 698,900
Units accounted for:
Transferred out 673,000 673,000 673,000
Work in process, Nov. 30 25,900 25,900 10,360
Total units 698,900 698,900 683,360
Costs Materials Conversion Costs Total
Unit costs
Total costs $1,677,360 $615,024 $2,292,384
÷ Equivalent units 698,900 683,360
= Unit costs $2.40 $0.90 $3.30
Costs to be accounted for:
Work in process, November 1 $127,200
Started into production $2,165,184
Total costs $2,292,384
Cost reconciliation Schedule
Cost s accounted for:
Transferred out $2,220,900
Work in process, November 30
Materials $62,160
conversion costs $9,324
Total costs $2,292,384
Explanation:
a) Data and Calculations:
Total Assembly Department costs = $2,292,384
WIP, November 1:
Materials $78,900
Conversion costs 48,300
Total $127,200
Materials added 1,598,460
Labor 225,200
Overhead 341,524
Units in production:
WIP, November 1 = 35,200
Completion 30% Conversion
Started = 663,700
Ending WIP 25,900
Completion = 40% conversion
b) The equivalent unit of production is the percentage of completion that has been achieved for each stage of the process. It is calculated by applying the percent of work done on the units of production. This is then used to determine the costs per equivalent unit and the costs to be attributable to the ending work in process and the units that have been completed.
Match the expense recognition approaches with the most appropriate accounting event, to satisfy proper matching of revenues with expenses.
Drag statements on the right to match the left.
Cause-and-effect relationship Cost of goods sold
Specific time period Monthly salary payments to an office employee
Without regard to related revenue
in the period incurred Advertising expenditures
Answer:
Cause-and-effect relationship - Cost of goods sold
This follows the cause and effect relationship because if the goods were not to be sold they would not have incurred a cost. Because the goods were sold, the business incurred costs.
Specific time period - Monthly salary payments to an office employee
The salary is monthly which means that it is for the specific time period of a month.
Without regard to related revenue in the period incurred - Advertising expenditures.
Advertising expenses are made without regard to the related revenue in the period because there is no sure and specific way to measure the impact of advertising on revenue.
The Oliver Company plans to market a new product. Based on its market studies, Oliver estimates that it can sell up to 5,500 units in 2005. The selling price will be $2 per unit. Variable costs are estimated to be 20% of total revenue. Fixed costs are estimated to be $6,400 for 2005. How many units should the company sell to break even
Answer:
4,000
Explanation:
Break even quantity = fixed cost / price - variable cost per unit
Total revenue = price x quantity sold
$2 x 5,500 = $11,000
Variable cost = 0.2 x $11,000 = $2,200
Variable cost per unit = $2,200 / 5500 = $0.4
$6,400 / $2 - $0.4 = 4,000
Which of the following statements is true?A. A government free of corruption is an example of a bad institution.B. Human creativity allows for existing products to improve.C. Wealthy countries tend to have fewer innovative individuals.D. Wealthy nations tend to have weak institutions.
Answer:
I think the most suitable answer to this question can be option B. As everything is below human creativity.
Your credit card company charges you 1.43 percent per month. What is the APR on your credit card?
Answer:
APR is 17.16 percent
Explanation:
APR means annual percentage rate and is calculated annually.
APR = 1.43 percent * 12 months = 17.16 percent
Ames Trading Co. has the following products in its ending inventory.
Product Quantity Cost per Unit Market per Unit
Mountain bikes 30 $700 $650
Skateboards 26 230 260
Gliders 12 870 830
Compute lower of cost or market for inventory applied separately to each product.
Answer:
Product Qty Cost Market LCM Result
Mountain Bikes 30 $700 $650 30*650 $19,500
Skateboards 26 $230 $260 26*230 $5,980
Gliders 12 $870 $830 12*830 $ 9,960
Chester's balance sheet has $86,386,000 in equity. If next year, assets decrease by $4,000,000 and liabilities increase by $2,000,000, what will be Chester's book value? Select: 1Save Answer $80,386,000 $84,386,000 $88,386,000 $31,097,000
Answer:
$88,386,000
Explanation:
The computation of the chester book value is shown below:
= Equity balance + decrease in assets in the next year - increased in liabilities for the next year
where,
Equity balance is $86,386,000
Decrease in assets is $4,000,000
Increased in liabilities $2,000,000
Now place these values to the above formula
So, the book value is
= $86,386,000 + $4,000,000 - $2,000,000
= $88,386,000
Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows:__________.
Average Cost Per Unit
Direct materials $ 5.40
Direct labor $ 2.90
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 2.40
Fixed administrative expense $ 2.10
Sales commissions $ 1.10
Variable administrative expense $ 0.55
1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units? (Do not round intermediate calculations.)
2. For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units? (Do not round intermediate calculations.)
3. If 8,000 units are produced and sold, what is the variable cost per unit produced and sold? (Round your answer to 2 decimal places.)
4. If 12,500 units are produced and sold, what is the variable cost per unit produced and sold? (Round your answer to 2 decimal places.)
5. If 8,000 units are produced and sold, what is the total amount of variable costs related to the units produced and sold? (Do not round intermediate calculations.)
6. If 12,500 units are produced and sold, what is the total amount of variable costs related to the units produced and sold? (Do not round intermediate calculations.)
7. If 8,000 units are produced, what is the average fixed manufacturing cost per unit produced?
8. If 12,500 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.)
9. If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
10. If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? (Round your "per unit" answer to 2 decimal places and other answers to the nearest whole dollar amount.)
12. If 12,500 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? (Round your "per unit" answer to 2 decimal places and other answers to the nearest whole dollar amount.)
13. If the selling price is $21.40 per unit, what is the contribution margin per unit? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
14. If 12,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production? (Do not round intermediate calculations.)
15. What incremental manufacturing cost will Martinez incur if it increases production from 10,000 to 10,001 units? (Round your answer to 2 decimal places.)
Answer:
Martinez Company
1. Total amount of product costs for 10,000 units:
= 10,000 * $13.90
= $139,000
2. Period costs for 10,000 units:
= 10,000 * $6.15
= $61,500
3. Variable cost per unit of 8,000 produced and sold:
= $11.55
4. Variable cost per unit of 12,500 produced and sold:
= $11.55
5. Total variable costs for 8,000 units produced and sold:
= 8,000 * $11.55
= $92,400
6. Total variable costs for 12,500 units produced and sold:
= 12,500 * $11.55
= $144,375
7. Average fixed manufacturing cost per unit produced for 8,000 units:
= $4.00
8. Average fixed manufacturing cost per unit produced for 12,500 units:
= $4.00
9. Total fixed manufacturing cost for 8,000 units:
= 8,000 x $4.00
= $32,000
10. Total fixed manufacturing cost for 12,500 units:
= 12,500 x $4.00
= $50,000
11. Total amount of manufacturing overhead costs for 8,000 units:
= 8,000 * $5.60
= $44,800
per unit = $5.60
Variable manufacturing overhead = $1.60
Fixed manufacturing overhead = $4.00
Total per unit = $5.60
12. Total amount of manufacturing overhead for 12,500 units:
= 12,500 x $5.60
= $70,000
per unit = $5.60
Variable manufacturing overhead = $1.60
Fixed manufacturing overhead = $4.00
Total per unit = $5.60
13. Contribution margin per unit:
Selling price = $21.40
Variable manufacturing cost per unit = $9.90
Contribution margin per unit $11.50
14. Total amounts of direct and indirect manufacturing costs for 12,000 units:
Direct manufacturing costs = $9.90 x 12,000 = $118,800
Indirect manufacturing costs = $4.00 x 12,000 = $48,000
15. Incremental manufacturing cost if Martinez increases production from 10,000 to 10,001:
= $9.90
Explanation:
a) Data and Calculations:
Average Cost Per Unit
Direct materials $ 5.40
Direct labor $ 2.90
Variable manufacturing overhead $ 1.60
Total Variable Costs per unit $ 9.90
Fixed manufacturing overhead $ 4.00
Total product cost per unit $13.90
Period Costs:
Fixed selling expense $ 2.40
Fixed administrative expense $ 2.10
Sales commissions $ 1.10
Variable administrative expense $ 0.55
Total period costs per unit $6.15
All Variable costs:
Variable production costs $9.90
Sales Commission $1.10
Variable administrative expense $ 0.55
Total Variable costs $11.55
All Fixed Costs:
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 2.40
Fixed administrative expense $ 2.10
Total fixed costs per unit $8.50
The total amount for the product cost incurred will be $139000.
The period cost for 10000 units will be $61500. If 8,000 units are produced and sold, the variable cost per unit produced and sold will be $11.55. If 12,500 units are produced and sold, the variable cost per unit produced and sold will be $11.55.If 8,000 units are produced and sold, the total amount of variable costs that are related to the units produced and sold will be $92400.The total variable cost for 12500 units will be $144375. The average fixed manufacturing cost for 8000 units and 12500 units will be $4.00. The total fixed manufacturing cost for 8000 units and 12500 units will be $32000 and $50000 respectively.The total amount of manufacturing overhead costs for 8000 units will be;
= 8000 × $5.60
= $44800
The total amount of manufacturing overhead for 12500 units will be:
= 12500 × $5.60
= $70000
The contribution margin per unit will be:
= Selling price - Variable manufacturing cost per unit.
= $21.40 - $9.90
= $11.50
The total amount of direct manufacturing cost will be:
= $9.90 × 12000 = $118800
The total amount of indirect manufacturing cost will be:
= $4.00 × 12000 = $48000
Lastly, the incremental manufacturing cost will be $9.90.
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EBITDA stands for:________
A) Earnings before Income Taxes, Discontinued Operations and Other Adjustments
B) Earnings before Income Taxes, Discontinued Operations and Other Amortization
C) Earnings before Interest, Taxes, Depreciation and Amortization
D) Earnings before Interest, Taxes, Discontinued Operations and Amortization
Can someone help me figure this out?
Answer:
I can help call me 8470589364
e. Which country has a comparative advantage in producing cars? f. Which country has a comparative advantage in producing grain?
Answer:
Comparative advantage in Cars - JapanComparative advantage in grain - AmericaExplanation:
The country that has a competitive advantage in producing something is the one that has less opportunity cost when they do so. In other words, they give up less of another good in order to produce a good.
The Japanese can either produce 4 cars or 5 tons of grain in a year. If they forgo 1 car therefore they produce 5/4 = 1.25 tons of grain per year.
If Americans forgo 1 car they produce 10/4 = 2.5 tons of grain.
Japan has a lower opportunity cost producing cars so they have a comparative advantage.
For Japan to produce 1 ton of grain they will forgo 5/4 = 0.8 cars. For Americans to produce 1 ton of grain they will forgo 4/10 = 0.4 cars.
America has a lower opportunity cost producing grain so they have a comparative advantage.
Which of the following would not be considered an advantage of the corporate form of organization?
A. Limited liability of stockholder's.
B. Seperate legal exsistence.
C. Continuous life.
D. Government regulation.
Answer:
D. Government regulation
Explanation:
Having the government regulating a corporate form of organization bus a disadvantage. A corporate organisation is an organization that exists separately on its own as a legal entity. It's advantages includes limited liabilities for people that have shares there, and also ease in ownership transfer. It is guided by a board of directors.
Options A B and C are all advantages.
The disadvantage of the corporate form of organization is Option D government regulation.
Because Interest rates are influenced by government policy, and a rise in interest rates raises the cost of borrowing for businesses.
The other Options are incorrect as:
Option A is incorrect as limited liability is an advantage of the corporate form of organization.
Option B is incorrect as separate legal existence is an advantage of the corporate form of organization.
Option C is incorrect as continuous life is an advantage of the corporate form of organization.
Thus Option D is correct Option for disadvantage of corporate firm.
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The employees of neat clothes work monday through friday every other friday the company issues payroll checks totaling 36,000. The current pay period ends on Friday, July 3. Neat Clothes is now preparing quarterly financial statements for the three months ended June 30. What is the adjusting entry to record accrued salaries at the end of June?
Salaries expense 22,400
Salaries payable 22,400
Amount accrued: $32,000 x 7/10 = $22,400
1. Can you explain how did we get 22,400?
2. Why we divide 7 over 10? What does 7 mean and what does 10 represent?
Answer:
Neat Clothes
1. Can you explain how did we get 22,400?
The total wages for 2 weeks or 10 days (5 days each) is $32,000. For the weeks under review, only 7 days are worked in June, the remaining 3 days are in July. To calculate June salaries alone the $32,000 is divided by 10 days, to get the wages per day, and then multiplied by 7 days for the seven days in June.
2. Why we divide 7 over 10? What does 7 mean and what does 10 represent?
The 7 means the days of work done in June and 10 represents the 2 weeks for which wages are being calculated.
So, dividing 7 over 10 gives the proportion of June salaries from the total of $32,000.
Explanation:
As above.
Jackson Ltd is developing computer software for use in its courier delivery service business. So
far the company had spent $50 000 but the software is still unfinished and not expected to be
finished in time for the preparation of the reports. As a result, the company had to purchase a
computer package amounting to $100 000 to finalise its accounts. There is no further use for the
unfinished software as it is expected that the purchased computer package could be used by the
entity for another 10 years. Which accounting treatment would be consistent with the
framework?
ion
34
Finish
Select one
O a Recognise an asset of $100 000 and expense of S50 000.
Time
O b. Recognise an asset of $150 000
O c Recognise an expense of $150 000
od Recognise an asset of 550 000 and expense of S100 000.
Answer:
Jackson Ltd
Software Development ($50,000) and Purchase ($100,000):
The accounting treatment consistent with the framework is to:
a. Recognise an asset of $100 000 and expense of $50 000.
Explanation:
The development cost of the Software which is abandoned cannot be capitalized. Software development cost can only be capitalized after testing for usability. Otherwise, Software development costs are expensed as they are incurred. On the other hand, the purchased Software can be recognized as a long-term asset, Plant, Property, and Equipment as it will be in use for more than 2 years.
Variable costs refer to the costs of __________ that can easily be increased or decreased in a __________ period. g
Answer:
outputs, short
Explanation:
Variable costs is an expense which changes as production output changes. When production is increasing, variable cost is increasing and when production is decreasing, variable cost is decreasing as well.
Variable costs can be seen as short-term as it can be adjusted.
Examples of variable costs are: utility costs, costs of raw materials, direct labor costs, etc.
What tool of monetary policy will the Fed use to increase the federal funds rate from 1 percent to 1.25 percent
Answer:
Open-market operations
Explanation:
Open-market operations is a term that is used to describes a form of arrangement or process used as monetary policy, whereby the federal government through federal reserves basically trade the nation's treasury securities for the purpose of controlling the flow of in the economy, on the open market.
Hence, the tool of monetary policy the Fed uses to increase the federal funds rate from 1 percent to 1.25 percent is called OPEN-MARKET OPERATIONS
On January 1, 2016, Aspen Company acquired 80 percent of Birch Company's voting stock for $364,000. Birch reported a $320,000 book value and the fair value of the noncontrolling interest was $91,000 on that date. Then, on January 1, 2017, Birch acquired 80 percent of Cedar Company for $108,000 when Cedar had a $108,000 book value and the 20 percent noncontrolling interest was valued at $27,000. In each acquisition, the subsidiary's excess acquisition-date fair over book value was assigned to a trade name with a 30-year remaining life. These companies report the following financial information. Investment income figures are not included. 2016 2017 2018 $ 485,000 $ 767,500 211,500 386,000 Not available 263,700 $ 892,500 622,300 240,000 Sales: Aspen Company Birch Company Cedar Company Expenses : Aspen Company Birch Company Cedar Company Dividends declared: Aspen Company Birch Company Cedar Company $ 332,500 167,000 Not available $ 525,000 $ 635,000 315,000 550,000 244,000 210,000 $ 10,000 $ 45,000 $ 55,000 8,000 18,000 18,000 Not available 2,000 6,000 Assume that each of the following questions is independent:
a. If all companies use the equity method for internal reporting purposes, what is the December 31, 2017, balance in Aspen's Investment in Birch Company account?
b. What is the consolidated net income for this business combination for 2018?
c. What is the net income attributable to the noncontrolling interest in 2018?
d. Assume that Birch made intra-entity inventory transfers to Aspen that have resulted in the following intra-entity gross profits in inventory at the end of each year:
Date Amount
12/31/16 $13,500
12/31/17 16,200
12/31/18 30,400
What is the accrual-based net income of Birch in 2017 and 2018, respectively? Complete this question by entering your answers in the tabs below. Req A to C Req D
a. If all companies use the equity method for internal reporting purposes, what is the December 31, 2017, balance in Aspen's Investment in Birch Company account?
b. What is the consolidated net income for this business combination for 2018?
c. What is the net income attributable to the noncontrolling interest in 2018?
Show less
a. Investment in Birch
b. Consolidated net income
c. Noncontrolling interests' share of the consolidated net income
Answer:
A.$440,432
B.$354,400
C.$24,036
D.2017 Realized income - Birch $78,840
2018 Realized income- Birch $76,880
Explanation:
a) Calculation for December 31, 2017, balance in Aspen's Investment in Birch Company account
Consideration transferred by Aspen $364,000
Add Noncontrolling interest fair value $91,000
Birch’s business fair value $455,000
Less :Book value ($320,000)
Trade name $135,000
Life 30 years
Annual amortization $4,500
($135,000/30)
Consideration transferred for Cedar by Birch $108,000
Add Noncontrolling interest fair value $27,000
Cedar’s business fair value $135,000
Less Book value ($108,000)
Excess to trade name $27,000
Life 30 years
Annual amortization $900
(27,000/30)
Investment in Birch $364,000
Birch's reported income-2016 $44,500
($211,500 - $167,000)
Less Amortization expense $4,500
Accrual-based income $40,000
Aspen’s percentage ownership 80%
Equity accrual-2016 $32,000
(80%×$40,000)
Dividends received 2016 ($6,400)
($32,000-$40,000)
(-$8,000 x 80%)
Birch's reported income-2017 $71,000
($386,000 - $315,000)
Amortization expense -$4,500
Income from Cedar $15,040
[80% x (263,700 -244,000 - 900]
Accrual-based income $81,540
($71,000+$15,040-$4,500)
Aspen’s percentage ownership 80%
Equity accrual-2013 $65,232
(80%×$81,540)
Dividends received from Birch 2017 ($14,400)
($18,000 x 80%)
Investment in Birch Dec 31,2017 $440,432
($364,000+$32,000+$65,232-$6,400-$14,400)
b) Calculation for the consolidated net income for this business combination for 2018
Consolidated $1,754,800
LessConsolidated expenses ($1,395,000)
Less Total amortization expense ( a) ($5,400)
Consolidated net income for 2018 $354,400
c) Calculation for the net income attributable to the noncontrolling interest in 2018
Cedar’s NCI in consolidated net income
Revenues less expenses $30,000
($240,000 - $210,000)
Less Excess amortization ($900)
Accrual-based income $29,100
Noncontrolling interest percentage 20%
Cedar’s NCI in consolidated net income$5,820
(20%×$29,100)
Birch's NCI in consolidated Net income
Revenues less expenses $72,300
($622,300 - $550,000)
Less Excess amortization ($4,500)
Equity in Cedar income $23,280
[(30,000 – 900) × 80%]
Realized2014 income of Birch $91,080
($72,300+$23,280)
Noncontrolling interest percentage 20%
Birch’s NCI in consolidated net income $18,216 (80%×$91,080)
Total NCIshare of 2018 consolidated net income $24,036
($18,216+$5,820)
d) Calculation for the accrual-based net income of Birch in 2017 and 2018, respectively
2017 Realized income of Birch
prior to accounting for unrealized gross profit(a) $81,540
2016 Transfer-gross profit recognized in 2017 $13,500
Less 2017 Transfer-gross profit to be recognized in 2018 ($16,200)
2017 Realized income - Birch $78,840
2018 Realized income of Birch prior to accounting for unrealized gross profit(c) $91,080
2017 Transfer-gross profit recognized in 2018 16200
Less 2018 Transfer-gross profit to be recognized in 2019 ($30,400)
2018 Realized income-Birch $76,880
West Corp. issued 14-year bonds 2 years ago at a coupon rate of 9.8 percent. The bonds make semiannual payments. If these bonds currently sell for 103 percent of par value, what is the YTM?
Answer:
the YTM is 9.38 %.
Explanation:
Bond Prices in most countries is expressed per $100. We shall use this as the Price for the bond in question.
Then the Yield to Maturity (YTM), r of the Bond can be determined as follows
Pv = - $103
pmt = ($100 × 9.80) ÷ 2 = $4.90
p/yr = 2
n = (14 - 2) × 2 = 24
Fv = $100
r = ?
Using a Financial Calculator, the Yield to Maturity (YTM), r is 9.38 %
Giorgio Italian Market bought $10,500 worth of merchandise from Food Suppliers and signed a 120-day, 6% promissory note for the $10,500. Food Supplier's journal entry to record the sales transaction is:
A) Debit Notes Receivable $10,500; credit Sales $10,500.
B) Debit Notes Receivable $10,500; debit Interest Receivable $210; credit Sales $10,710.
C) Debit Accounts Receivable $10,500; credit Sales $10,500.
D) Debit Notes Receivable $10,710; credit Sales $10,710.
E) Debit Accounts Receivable $10,710; credit Sales $10,710.
Answer:
A) Debit Notes Receivable $10,500; credit Sales $10,500.
Explanation:
The journal entry for recording the sales transaction is shown below:
Notes receivable Dr $10,500
To Sales $10,500
(Being the recording of the sales transaction is recorded)
Here we debited the note receivable as it increased the assets and credited the sales as it also increased the revenue so that the correct posting of this transaction could be done
Hence, the correct option is A.
Orange Co. is a manufacturer and Pineapple Company is a merchandiser. What is the difference in the budgets the two entities will prepare?
Answer:
Orange Co.'s budget will include the cost of production, which is made up of raw materials, direct labor, and manufacturing overhead. The above cost of production and the accompanying items will not be found in the budget of Pineapple Company. The latter's budget will focus on purchase of goods for sale (instead of raw materials) and inventories of finished goods (instead of raw materials and work in process). Orange Co. determines its product cost per unit from the cost of production divided by the quantity produced. Pineapple Company's product cost is based on the purchase price of goods, which includes the manufacturer's profit.
Explanation:
The operations and accounting for the cost of production of Orange Co. will be different from Pineapple Company's. The difference is a reflection of their statuses as manufacturer and merchandiser respectively. Orange Co. manufactures and sells goods while Pineapple Company sell manufactured goods.
Which law most likely prompted organizations to create codes of ethics and install ethics hotlines?
A) Corporate and Auditing Accountability, Responsibility, and Transparency Act.
B) Federal Sentencing Guidelines for Organizations Act.
C) Procurement Integrity Act.
D) McCarran-Ferguson Act.
Answer:
B) Federal Sentencing Guidelines for Organizations Act.
Explanation:
The Federal Sentencing Guidelines for Organizations Act (FSGO) was passed on November, 1991, and it provides a guideline for organizations' compliance and ethics programs. It applies to virtually all types of private organizations, including corporations, partnerships, non-profits, labor unions, etc.
What is the future value of $15,000 received today if it is invested at 7.5% compounded annually for five years
Answer:
the future value is $21,534.44
Explanation:
The computation of the future value is shown below:
As we know that
Future value = Present value × (1 + interest rate)^number of years
where,
Present value is $15,000
The Interest rate is 7.5%
And, the number of the year is 5 years
Now put these values to the above formula
So, the future value is
= $15,000 × (1 + 0.075)^5
= $21,534.44
Hence, the future value is $21,534.44
Which of the following is a good example of a program?a. Planting a gardenb. Developing a new residential area that includes six custom homesc. Developing a new marketing pland. Taking notes each class meeting to prepare for the finale. Planning a wedding
Answer:
b. Developing a new residential area that includes six custom home
Explanation:
A program refers to a group in which the projects that are related are designed to achieve a common objective within a period of time
Now if we going through the options, the option B is correct as it involves establishing a new residential area that consists of six custom homes i.e. it is customized according to the needs of the client, customers, company, etc
Therefore option B is correct
If the nominal interest rate is 4.7% and the inflation rate is 3.4%, what is the real interest rate?
Answer:
1.3%
Explanation:
The real interest rate is calculated by subtracting the inflation rate from the nominal interest rate.
real interest rate=nominal interest rate-inflation rate
nominal interest rate=4.7%
inflation rate= 3.4%
real interest rate=4.7%-3.4%
real interest rate=1.3%
According to this, the answer is that the real interest rate is 1.3%.
If individuals forecast future prices by examining the rates of inflationof the present and recent past, they are using:
a. adaptive expectations
b. rational expectations
c. inflationary
d. structural expectations
Answer:
a. adaptive expectations
Explanation:
When we say someone is using adaptive expectations, it means that they are using past events or experiences in order to predict future behaviors or trends. This methodology is commonly used to predict inflationary rates and how they affect the prices of assets in the future. Generally people will believe that past events will tend to repeat themselves in the future.
What would happen to GDP if a significant number of house-spouses who were previously staying home to care for their children began taking jobs and placing their children in day-care? Would the nation's well-being necessarily be better off?
Answer:
The GDP will increase.
Explanation:
The number of women taking a job will result in the rise of real GDP because their participation will increase the number of economic activities. Therefore, a rise in economic activities will boost the GDP. But it would be uncertain to say that the well being of the nation will be better off because daycare will harm the bond of children and parents. Moreover, lack of parental supervision will result in the low performance of children at the latter age and if the child is at the age in which breastfeeding is required then lack of breastfeeding may harm child's physical and mental health as well.