Answer:
State.
Explanation:
About two-thirds of all U.S. commercial banks are chartered by the state in which they are based.The banks are called state banks.
A state bank can be defined as any bank that receives or got its charter from a state government but not the federal government of the United States of America. In the United States of America, a state bank reserves the right to either be a member of the Federal Reserve System ("The Fed") or not and as such, can only do business within the state and be regulated by the state where it is operating.
Some examples of state banks in the United States of America are California Bank of Commerce, CalPrivate Bank, United Pacific Bank, Citizens Business Bank etc.
Corporation has the following data as of December 31, : Total Current Liabilities $36,210 Total Stockholders' Equity $ ? Total Current Assets 58,200 Other Assets 36,800 Long-term Liabilities 139,630 Property, Plant, and Equipment, Net 206,440 Compute the debt to equity ratio at December 31, . (Round your answer to two decimal places, X.XX.)
Answer:Debt Equity ratio= 1.40
Explanation:
Assets
Current Assets $ 58,200
Other Assets $36,800
Property Plant & Equipment (net) =$ 206,440
Total Assets =$301,440
Liabilities
Current Liabilities =$ 36,210
Long Term Liabilities =$139,630
Total Liabilities=$175,840
Total Stockholder's Equity= Total assets - total liabilities
=$301,440-$175,840
=$125,600
Debt Equity ratio = Total liabilities/ Total Stockholder’s Equity
= $175,840/$125,600
= 1.40
Andy and Delilah both work and have one qualifying child.They had AGI of $21,000.What is their EIC?
A) $3,356.
B) $3,373.
C) $5,572.
D) $0.
Answer:
$3,584
Explanation:
For the year 2020 if the married filed jointly so the amount should not exceed than $21,710 and eligible for the one child
So the maximum credit amount earned for the one children is $3,584
Also, the income for investment should be $3,650 or less for the particular year
So in the given options, this above amount is not given so the same is to be considered for the year 2020
And we assume that the question ask for the year 2020 only
Explain how accrual accounting differs from cash basis accounting if:A. Prepaid insurance beginning $400B. Payments for insurance during the period $1,200C. Prepaid insurance ending $700
Answer:
Difference between accrual accounting and cash basis accounting:
The insurance expense for the period will be $900 under the accrual accounting basis. But with the cash basis of accounting, the insurance expense for the period will be $1,200 being the amount of insurance paid during the period.
Explanation:
a) Data:
A. Prepaid insurance beginning $400
B. Payments for insurance during the period $1,200
C. Prepaid insurance ending $700
With accrual basis, the insurance prepaid of $400 at the beginning will be accounted as expense in the current year when the services are consumed. The amount would be debited to the Prepaid Insurance account as a current asset. The payments for insurance during the period of $1,200 are also added to the beginning prepayment. Then the prepaid insurance ending of $700 is deducted (credited) to the insurance account to arrive at the insurance expense for the period.
The cash basis accounting will charge the sum of $1,200 as the insurance expense for the period with no regard for the beginning and ending balances of prepayments.
Journalize Surf and Sun's entry to record bad debts expense for 2018 using the aging-of-receivables method. 2. Prepare a T-account to compute the ending balance of Allowance for Bad Debts.
Answer:
1. Dr Bad Debts Expense $187
Cr Allowance for Bad Debts $187
2. T- account
Credit side Allowance for Bad Debts $2,063
Credit side Balance $187
Credit side $2,250
Explanation:
1. Preparation of Surf and Sun's Journal entry to record bad debts expense for 2018
First step is to find the Estimated total uncollectible
Estimated total uncollectible
Age of Accounts Receivable
0 – 60 Days Over 60 Days Total Receivables
Accounts Receivable. $78,000 $3,000 $81,000
Percent uncollectible× 2%× 23%
Estimated total uncollectible $1,560 $690 $2,250
Second step is to prepare Surf and Sun Journal entry
Journal entry
Dec. 31 2018
Dr Bad Debts Expense $187
Cr Allowance for Bad Debts $187
($2,250 – $2,063)
2. Preparation of a T-account to compute the ending balance of Allowance for Bad Debts.
T- account
Credit side Allowance for Bad Debts $2,063 Unadjustment
Credit side Balance $187 Adjustment
Credit side $2,250 Balance
The petitie sportswear buyer places the following order: 36 pants costing $10.75 each48 pants costing $15.50 each24 pants costing $17.50 eachShipping charges were 6%of the billed costs. To find the dollar amount of shipping charges, find the total amount of billed costs. Multiply the number of pants to the cost of each pants and find the sum toal:36 pants $10.75 = $38748 pants $10.75 = $74424 pants $10.75 = $420Then find the sum of each cost to find the gross sales. So the sum of 387, 744 and 420 is 1,551. So the total amount of billed costs is $1,551,000.
Answer:
The dollar amount of the shipping charges is:
$93.06
Explanation:
a) Data and Calculations:
36 pants at $10.75 = $387
48 pants at $15.50 = $744
24 pants at $17.50 = $420
108 pants = $1,551
Shipping charges 93.06 (6% of $1,551)
Total billed costs = $1,644.06
The shipping charges of 6% are applied on the total product costs of $1,551 to obtain $93.06. The cost of each purchase of a line of pants is computed by multiplying the line's quantity with its per unit cost. Then the different costs are added together before applying the 6% shipping charges.
A change in depreciation method is accounted for:Select one:a. Retrospectively.b. Prospectively, like changes in accounting estimates.c. As a cumulative adjustment to income in the year of change.d. None of the above.
Answer: :a. Retrospectively
Explanation:
A change in depreciation method is a change in accounting policy and as such it would need to be accounted for retrospectively.
This means that it must be accounted for by going back to all periods where the change affects an entry and adjusting that entry for the change so that the accounting can be more accurate.
After the USA introduces a tariff in the market for gigastraps, the price of gigastraps in the USA will:
Answer:
I'm not sure what a gigastrap is or if it is just a some term made up for this question, but whenever an import tariff is set, the price of the product will increase. It doesn't matter if it is something simple as sugar, microchips, diamonds, cars, etc. It doesn't even matter if the product can be produced domestically or not, the price will still increase since the domestic producers will increase their price to match the increase in price of foreign goods. This is the reason why sugar is so expensive in the US, since the domestic producers charge extremely high prices because they know there is no way foreign sugar producers can compete with them due to the import tariffs and quotas.
For the past six years, the stock price of Slippery Rock Mining has been increasing at a rate of 6.6 percent per year. Currently, the stock is selling for $73 per share and has a required return of 9.1 percent. What is the dividend yield?
Answer:
2.50%
Explanation:
The dividend yield can be computed by dividing annual dividend by share price. As the dividend is not given in the question, we will find the dividend first by the required return formula and then divide it by share price in order to calculate the yield.
DATA
Annual dividend =?
Growth rate = 6.6%
Share price = $73
Required return = 0.1%
Solution
Required return = (D1/price) + growth rate
0.091 = (D1 / 73) + 0.066
0.025 = D1 / 73
D1 = 1.825
Dividend yield = (D1 / price) * 100
Dividend yield = (1.825 / 73) * 100
Dividend yield = 2.50%
Briefly explain whether each of the following is primarily a microeconomic issue or a macroeconomic issue.
a. The effect of higher cigarette taxes on the quantity of cigarettes sold
b. The effect of higher income taxes on the total amount of consumer spending
c. The reasons for the economies of East Asian countries growing faster than the economies of sub-Saharan African countries
d. The reasons for low rates of profit in the airline industry
Answer: Micro; Macro; Macro; Micro.
Explanation:
Economics is divided into two main segments which are microeconomics and macroeconomics. It should be noted that microeconomics deals with study of individuals and the firms while macroeconomics studies the while economy and looks at decisions that are made by governments and countries.
a. The effect of higher cigarette taxes on the quantity of cigarettes sold.
This is a microeconomic issue as one entity is being discussed which is cigarette and the issue is related to just one particular industry.
b. The effect of higher income taxes on the total amount of consumer spending.
This is a macroeconomic issue as taxes affects the whole economy. The whole nation is affected by this decision.
c. The reasons for the economies of East Asian countries growing faster than the economies of sub-Saharan African countries.
This is a macroeconomic issue as it relates to different countries.
d. The reasons for low rates of profit in the airline industry.
This is a microeconomic issue as the issue affects just the airline industry.
What would happen if the government subsidized consumption of this product because it has positive externalities in consumption
Answer:
If a product has postive externalities, it means that it benefits society in some way that is not reflected in the product's price, supply and demand.
Explanation:
This causes economic distortion in which the possible benefit of the product are less than ideal.
For this reason, governments can subsidize goods and services that have postiive externalities, with the effect of bringing about the full benefit of the good or service to society.
A typical example is education, which is not a product, but a service. Education has a lot of positive externalities: it makes societies more educated and productive, even more peaceful. This is why the government heavily subsidizes education, both in primary, secondary, and tertiary levels.
ABC Inc. manufactures bedding sets. The budgeted production is for 55,000 comforters in 2012. Each comforter requires 7 yards of material. So 385,000 yards will be needed. The estimated January 1, 2012, beginning inventory is $124,000 in material. The desired ending balance is $120,000 in material. If the material costs $4.00 per yard, determine the direct materials budget for 2012.
Answer:
Total direct material cost= $1,536,000
Explanation:
Giving the following information:
So 385,000 yards will be needed.
The estimated January 1, 2012, beginning inventory is $124,000.
The desired ending balance is $120,000.
The material costs $4.00 per yard.
To determine the direct material budget, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Direct material budget:
Production= 385,000*4= 1,540,000
Desired ending inventory= 120,000
Beginning inventory= (124,000)
Total direct material cost= $1,536,000
Ragland Corp. purchases supplies on account for $1,000 and appropriately records the transaction in an asset account. A count of inventory at year-end indicates that $300 of supplies are remaining. The adjusting journal entry required at year-end includes:_____.
Answer and Explanation:
The adjusting entry is shown below:
Supplies Expense A/c $700
To Supplies A/c $700
(Being the supplies expense is recorded)
The supplies expense is computed below
= Supplies purchased made - supplies on hand
= $1,000 - $300
= $700
For recording this we debited the supplies expense as it increased the expenses and credited the supplies as it decreased the assets
What is the amount of equity on December 31, 2011?
Company
A Company
December 31, 2010
Assets $ 35,000
Liabilities 28,700
December 31, 2011
Assets 38,000
Liabilities ?
During year 2011
Owner investments 6,000
Net income (loss) 8,300
Owner cash
withdrawals 3,500
Answer:
$17,100
Explanation:
For computing the ending equity first we have to determine the beginning equity which is shown below:
As we know that
Accounting equation comprise of
Total assets = Total liabilities + stockholder equity
$35,000 = $28,700 + stockholder equity
So, the stockholder equity is
= $35,000 - $28,700
= $6,300
Now the ending equity is
= beginning equity + owner investments + net income - withdrawls
= $6,300 + $6,000 + $8,300 - $3,500
= $17,100
The following expenditures are related to land, land improvements, and buildings, which were acquired on November 1, 2013.Cost of real estate acquired for a new manufacturing plant $365000The land is appraised for 262,800 and the building for 102,200Real estate taxes paid by the purchaser 20,000Cost of removing barn 8,500Architect fees for updating building 6750 Attorneys fees for closing sale 12500Grading land 3500Paving parking lot 7000Planting trees and shrubs 9250Cost of repairs to building due to storm 1300Lights placed on driveway 4750Fee to real estate broker 2500Required:a. Determine the cost of the land, the building and the improvements (Round to the nearest dollar)b. Prepare journal entries on December 31, 2013 for depreciation assuming the building will have a useful life of 20 years and no residual value. Use double declining balance method and the half-year convention. c. Depreciate the land improvements using straight-line method, a 5 year life, to the nearest month with zero residual value (to the nearest dollar).
Which budget allows a business owner to calculate the amount to charge the customer in order to make a profit
Answer:
Budgeted Income Statement in the Master Budget
Explanation:
The Master Budget provides a summary of all the operations of the business. It is made up of Budgeted Manufacturing Account, Budgeted Income Statement and Budgeted Financial Position.
Where the selling price it to be determined, the price giving the desired profits can be calculated by adjusting the sales to the desired profits in the Budgeted Income Statement.
In a statement of cash flows, the sale of a long-term investment would ordinarily be classified as:_____.a. an operating activity.
b. a financing activity.
c. an investing activity.
d. a lending activity.
Answer:
c. an investing activity.
Explanation:
The sale and acquisition of items of Property, Plant and Equipment is classified under investing activities in the cash flow statement.
Therefore, the sale proceeds following the sale of a long-term investment would ordinarily be classified as a cash inflow from investing activity.
On January 2, 20X4, West Co. issued 9% bonds in the amount of $500,000, which mature on January 2, 20X24. The bonds were issued for $469,500 to yield 10%. Interest is payable annually on December 31. West uses the interest method of amortizing bond discount. In its June 30, 20X4, balance sheet, what amount should West report as bonds payable?
Answer:
$470,425
Explanation:
The computation of the amount reported as bond payable is shown below:
Particulars Interest at 4.5% Interest at 5% Amortized UnAmortized CV
discount discount
Starting value $30,500 $469,500
($500,000 - $469,500)
June 30 $22,500 $23,475 $975 $29,525 $470,425
($500,000 × 4.5%) ($469500 × 5%)
The six months rate would be the half of the rates given in the question
You are CEO of Eastco, and you recently paid $58,000 or about 2x revenue (well under industry average) to purchase Westco, which makes a product nearly identical to yours. This move will allow you to operate in both regions (East and West) of the country. If you combine the markets, the total Fixed Cost would be $11,000 per month, and your larger purchase size will allow you to advantageous terms for your raw materials, meaning VC will be $4 per unit. Demand and MR in the combined market is as follows:
Qd = 600 - 6P
MR = 100 - 0.333Q
A) Compute your profit in the combined market. Additional analysis shows that demand and fixed costs are different in the 2 regions. The West has the following demand and Mg:
Qd = 300 - 4P
MR = 75 - 0.5Q
Fixed costs associated with operating in the West are $5000/month. While the East is a less price sensitive market:
Qd = 300 - 2P
MR = 150 - Q
Fixed costs associated with operating in the East are $6000/month. The area manager from the East suggests you use a strategy that charges each market a separate price. If you operate in separate markets, the VC associated with each unit is $5.
B) Calculate your profits using this strategy. What is this strategy called?
C) What strategy do you suggest in the Long Run?
Answer:
Profit in the combined market OR Combined profit is
π = -0.1665Q² + 96Q - 11,000 dollars
Explanation:
NOTE: The second or B part of the question is incomplete hence only answers to A part are provided
(A) The data given are:
TFC = $11,000 /month
TVC = $4 /unit = $4Q
QD = 600 - 6P
MR = 100 - 0.333Q
The data derived from this are:
TC = TFC + TVC = 11,000 + 4Q
PROFIT = TR - TC
TR = ∫MR = ∫(100 - 0.333Q) = 100Q - 0.1665Q²
PROFIT = 100Q - 0.1665Q² - 11,000 - 4Q
PROFIT = -0.1665Q² + 96Q - 11,000 dollars
If the money used to purchase WestCo is factored in, then you'll subtract it from this profit. That will be;
PROFIT = -0.1665Q² + 96Q - 69,000 dollars
Granite Enterprises acquired a patent from Southern Research Corporation on January 1, 2021, for $3.7 million. The patent will be used for five years, even though its legal life is 20 years. Rocky Corporation has made a commitment to purchase the patent from Granite for $170,000 at the end of five years. Compute Granite's patent amortization for 2021, assuming the straight-line method is used.
Answer:
$706,000
Explanation:
Amortisation is a method used in expensing the cost of a natural resource
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
Useful life = 5
cost of the asset = $3.7 million.
Salvage value = $170,000
($3.7 million - $170,000 ) / 5 = $706,000
A military organization is very structured. Ranks are very clear, defining who can give and who must take orders. This is an example of
Answer:
vertical management
Explanation:
The flow of information that takes flows from the top management to the subordinates is said to be vertical management. The information is passed from the managers to the employees at the lower levels. Primarily the feedback are communicated in this form of management. The control of the higher authority is high and strong.
The given excerpt is an example of vertical management that flows in the military organization.
Consider the following sentence: In order to swim for an hour, Paolo must take time away from work, where he earns $11 per hour. This is in addition to paying a $4 entrance fee for the pool. Which basic principle of individual choice do these statements best illustrate?
Answer: The cost of something is what you give up to get it
Explanation:
The options to the question are:
1.) The cost of something is what you give up to get it
2) Markets are usually a good way to organize economic activity
3) People usually exploit opportunities to make themselves better off.
4) Trade can make everyone better off
This has to do with opportunity cost whereby there's always a trradeoff between two goods. One has to make a choice and leave out one economic decision in order to make another decision.
This can be seen in the question where we were told that In order to swim for an hour, Paolo must take time away from work, where he earns $11 per hour. This is in addition to paying a $4 entrance fee for the pool.
Project management is ideally suited for a business environment requiring all of the following EXCEPT:________.
A) Accountability
B) Flexibility
C) Innovation
D) Speed
E) Repeatability
Answer:
D) SPEED
Explanation:
Use the information presented in Midwestern Mutual Bank's balance sheet: Bank's Balance Sheet Assets Liabilities and Owners' Equity Reserves $175 Deposits $1,400 Loans $700 Debt $225 Securities $875 Capital (owners' equity) $125 Suppose the owners of the bank borrow $100 to supplement their existing reserves. This would increase the reserves account and____the_____account. This would also bring the leverage ratio from its initial value of to a new value of_____. Which of the following is true of the capital requirement?A. It specifies a minimum leverage ratio for all banks. B. Its intended goal is to protect the interests of those who hold equity in the bank. C. Its intended goal is to protect the interests of the depositors.
Answer:
1. This would increase the reserves account and increase the debt account.
The bank borrowed $100 to supplement their reserves which increased the reserves account. It will also increase the debt account to reflect the liability.
2. This would also bring the leverage ratio from its initial value of 14 to a new value of 14.8.
Leverage is calculated as;
Original leverage = Total assets/ Capital
= ( 175 + 875 + 700)/125
= 14
New Leverage = ( 175 + 875 + 700+ 100 increase in reserves)/125
= 14.8
3. C. Its intended goal is to protect the interests of the depositors.
Capital is held by banks as a safeguard against people defaulting on loans because loans are derived from the money deposited by depositors and will need to be paid back to them. If a loan is defaulted on therefore, the bank pays the depositor from the capital it holds.
Kouba Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.52 direct labor-hours. The direct labor rate is $9.00 per direct labor-hour. The production budget calls for producing 1,700 units in April and 1,600 units in May. The company guarantees its direct labor workers a 40-hour paid work week. With the number of workers currently employed, that means that the company is committed to paying its direct labor work force for at least 960 hours in total each month even if there is not enough work to keep them busy.Required Construct the direct labor budget for the next two months. (Round your answers to 2 decimal places.) April May Required production in units Direct labor-hours per unit Total direct labor-hours needed Total direct labor-hours paid Total direct labor cost
Answer:
Kouba Corporation
Direct labor budget for April and May:
April May
Production in units 1,700 1,600
Direct labor-hours per unit 0.52 0.52
Total direct labor-hours needed 884 832
Total direct labor-hours paid 960 960
Direct labor rate $9.00 $9.00
Total direct labor cost $8,640 $8,640
Explanation:
a) Data and Calculations:
April May
Production in units 1,700 1,600
Direct labor-hours per unit 0.52 0.52
Total direct labor-hours needed 884 832
Total direct labor-hours paid 960 960
Direct labor rate $9.00 $9.00
Total direct labor cost $8,640 $8,640
Idle hours paid for 76 128
Cost for idle hours $684 $1,152
b) The Kouba Corporation pays its workers for a total of 204 idle hours with a total cost of $1,836 for the two months period. This amount is substantial, about 10% of the total amount paid for the two months.
A loss on sale of equipment is added to net income in determining cash provided by operations under the indirect method.
A. True
B. False
Answer: A. True
Explanation: In creating a statement of cashflow, the direct or Indirect method may be employed. The Indirect method simply starts from the net income or loss by making necessary adjustment to the net income before arivubg at cash made from operating activities. Hence, Indirect methods starts calculation from the net income. This is the opposite in direct method whereby cash inflows and outflows from operating activities are used to arrive at the net income or cashflow.
High-End Fashions, Inc., bought a production line of ankle-length skirts last year at a cost of $500,000. This year, however, miniskirts are hot in the market and ankle-length skirts are completely out of fashion. High-End has the option to rebuild the production line and use it to produce miniskirts with a cost of $300,000 and expected revenue of $700,000. How should the company treat the cost of $500,000 of the old production line in evaluating the rebuilding plan
Answer:
the $500,000 that the old production line costed must be treated as a sunk cost. Sunk costs are costs that have already been incurred and the firm cannot recover them no matter what they do. in this case, since ankle-length skirts are out of fashion, the production is useless and is worth $0.
Explanation:
1. Describe the changes occurring today in the management function. 2. Describe the four functions of management. 3. Relate the planning process and decision making to the accomplishment of company goals 4. Describe the organizing function of management. 5. Explain the differences between leaders and managers, and describe the various leadership styles. 6. Summarize the five steps of the control function of management.
Explanation:
Management function refers to specific activities carried out in other achieve organizational goals.
The Management functions are:
PlanningOrganizingLeadingControllingAn organization uses the Planning function to have a vision of their future. For example, how many countries they would like to operate in in the next five years.
The Organizing Function of management allows management to decides its structure, such as its method of operations. Would they use remote part-time staff or full-time staff?
________ refers to a subset of expatriates who are citizens of a foreign country working in the home country of their multinational employer.
Answer:
Inpatriates
Explanation:
Inpatriates is an employee most known as specialist or a professionals of a multinational company who is from a foreign country, but is moved or posted from a foreign subsidiary to the corporation’s headquarters which is located in the home country of the multinational employer.
What are the five key things you must know in order to identify opportunities in your area of work?
Answer:
The answer is below
Explanation:
Five key things you must know in order to identify opportunities in your area of work are:
1. Study industry trends and insights, by checking the latest or current infographics on your industry.
2. Study top executives in the industry, through interviews, magazines profiles, and their company websites.
3. Pay attention to both existing and potential clients' needs.
4. Understand the present challenges in the industry and think the solution
5. Attend conferences and seminars relating to your industry.
different types of products and services
Answer:
Classification of Products and Services.
Convenience Goods. These are products that consumers purchase often and habitually, without much thought given.
Shopping Goods. In contrast, consumers looking to purchase shopping goods are more willing to do research and compare different product options....
Specialty GoodsUnsought Goods.ᐛ