Answer:
-1
Explanation:
The correlation coefficient can range from -1 to 1. It measures how one stock (or security) reacts to any change in the price of performance of another stock (or security). When the correlation is -1, it means that there is no relationship between how the stocks will perform, i.e. they are completely uncorrelated.
In its 2016 income statement, Tow Inc. reported proceeds from an officer's life insurance policy of $90,000 and depreciation of $250,000. Tow was the owner and beneficiary of the life insurance on its officer. Tow deducted depreciation of $370,000 in its 2016 income tax return when the tax rate was 25%. Data related to the reversal of the excess tax deduction for depreciation follow:_______. Year Reversal of excess tax deduction Enacted tax rates2017 $10,000 30%2018 20,000 30%2019 40,000 35%2020 50,000 35% There are no other temporary differences. Taxable income in 2016 is $68,000. Tow expects to report profits (rather than losses) for tax purposes for all future years. What is 2016 Income Tax Expense? a. $57,500 b. $47,000 c. $84,500 d. $53,000 e. $80,000
Answer:
A.. $57,500
Explanation:
Calculation for 2016 Income Tax Expense?
First step is to calculate the deferred tax liability
Year Reversal Tax rates Deferred Tax Liability
2017 $10,000 30% $3,000
2018 $20,000 30% $6,000
2019 $40,000 35% $14,000
2020 $50,000 35% $17,500
TOTAL Deferred tax liability $40,500
Second step is to find the Income tax on current year taxable income
Income tax= 68,000 * 25%
Income tax = 17,000
Last step is to find the total income tax expense to be recorded in the year 2016
Using this formula
Income tax expense= Deferred tax liability +Income tax
Let plug in the formula
Income tax expense=$40,500+$17,000
Income tax expense= $57,500
Therefore the Income Tax Expense for the year 2016 will be $57,500
Which Act can be used to coordinate a securities registration filing under the provisions of the Uniform Securities Act
Answer: Securities Act of 1933
Explanation:
The Act of 1933 is the Act that can be used to coordinate a securities registration filing under the provisions of the Uniform Securities.
The Securities Act of 1933 consists of two main aims which are that the investors should get financial and necessary information with regards to the securities that are offered for public sale and also that fraud, deceit, and misrepresentations should be prohibited when selling securities.
Ray Steen recently started a business. During the first few days of operation, Mr. Steen transferred $100,000 from his personal account into a business account for a company he named Steen Enterprises. Steen Enterprises borrowed $60,000 from First Bank. Mr. Steen's father-in- law, Stan Rhoades, invested $75,000 into the business for which he received a 25 percent owner- ship interest. Steen Enterprises purchased a building from Zoro Realty Company. The building cost $150,000 cash. Steen Enterprises earned $56,000 in revenue from the company's customers and paid its employees $31,000 for salaries expense. Required Identify the entities that were mentioned in the scenario and explain what happened to the cash accounts of each entity that you identify. g
Answer:
1. Identification of mentioned entities:
a. Ray Steen and Steen Enterprises
b. Steen Enterprises and Ray Steen
c. First Bank and Steen Enterprises
d. Stan Rhoades and Steen Enterprises
e. Zoro Realty Company and Steen Enterprises
f. Steen Enterprises, Customers, and Employees
2. Effects on Entities' Cash Accounts:
a. Ray Steen's personal Cash Account decreased and Steen Enterprises' increased by $100,000
b. Steen Enterprises' Cash Account increased as above.
c. First Bank's Cash Account decreased and Steen Enterprises' increased by $60,000 respectively.
d. Stan Rhoades' Cash Account decreased and Steen Enterprises' increased by $75,000
e. Zoro Realty Company's Cash Account increased while Steen Enterprises' decreased by $150,000.
f. Steen Enterprises, Customers, and Employees: Cash Account of Steen Enterprises increased and Customers' decreased by $56,000 respectively. Also the cash account of Steen Enterprises decreased and Employees' cash accounts increased by $31,000 respectively.
Explanation:
A legal entity is a person (like Ray Steen, Stan Rhoades, Employees, and Customers, etc), department, team, corporation (First Bank, Zoro Realty Company, and Steen Enterprises), cooperative, partnership, or other groups with whom it is possible to conduct business where economic resources are exchanged between economic agents (entities) undertaking economic events. This shows that in every business transaction, three important things are involved. They are resources, events, and agents. The resources describe the monetary value of assets (economic resources) that are exchanged between the agents. The events are the transactions while the agents are the entities (different personalities) that are involved in the exchange. This is fully developed in the REA model of accounting system.
Duddy Kravitz owns the Saint Viateur Bagel store. His world famous bagels are hand rolled, boiled in honey-water and baked in a wood-burning oven. The store sells 5,000 bagels per day and is open 365 days of the year. The bagels are so popular that, on weekends, the customer line-up runs half-way down the block. Uncle Benjy thinks that the wood-fired oven should be replaced by a modern gas oven, which would reduce costs by $0.02 per bagel. A new oven would cost $105,000.Duddy is considering Uncle Benjy's idea, but he only plans to be in business for another two years. The bagels are sold for $0.75 each. The cost of producing each bagel with the wood-burning oven is $0.50 which includes labor and raw materials. The current oven was purchased thirty years ago for $20,000. It could be sold today for $5,000 and will be worth $3,000 in two years. A new oven costs $105,000 today and could be sold for $55,000 in two years. Duddy's cost of capital is 9%. Assume that investment cash flows occur immediately, and that sales and production costs occur at the end of the year. Assume that both ovens are classified as 10-year property and depreciated using the MACRS system. The tax rate is 35%.What are the terminal year cash flows?a. 30,340b. $36,500c. $62,260d. $90,600e. $94,500
Answer:
No option is even close. With yearly revenues of $1,368,750 and a contribution margin ratio of 36% and 33.33%, the cash flows are in the hundreds of thousands of $.
Explanation:
new oven:
contribution margin per bagel = $0.75 - $0.48 = $0.27
units sold per year = 5,000 x 365 = 1,825,000 x $0.27 = $492,750
initial outlay = $105,000 - [$5,000 x (1 - 35%)] = $103,250
depreciation year 1 = 10% x $105,000 = $10,500
depreciation year 2 = 18% x $105,000 = $18,900
after tax salvage value = $55,000 - [($55,000 - $75,600) x 35%] = $62,210
cash flow year 1 = [($492,750 - $10,500) x (1 - 35%)] + $10,500 = $323,962.50
cash flow year 2 (terminal cash flow) = [($492,750 - $18,900) x (1 - 35%)] + $18,900 + $62,210 = $389,112.50
old oven:
contribution margin per bagel = $0.75 - $0.50 = $0.25
units sold per year = 5,000 x 365 = 1,825,000 x $0.25 = $456,250
initial outlay = $0, and since the oven has been completely depreciated already, the depreciation expense is $0.
after tax salvage value = $3,000 x (1 - 35%) = $1,950
cash flow year 1 = $456,250 x (1 - 35%) = $296,562.50
cash flow year 2 (terminal cash flow) = [$456,250 x (1 - 35%)] + $1,950 = $298,512.50
Primare Corporation has provided the following data concerning last month’s manufacturing operations. Purchases of raw materials $ 30,000 Indirect materials included in manufacturing overhead $ 5,000 Direct labor $ 58,000 Manufacturing overhead applied to work in process $ 87,000 Underapplied overhead $ 4,000 Inventories Beginning Ending Raw materials $ 12,000 $ 18,000 Work in process $ 56,000 $ 65,000 Finished goods $ 35,000 $ 42,000 Required: 1. Prepare a schedule of cost of goods manufactured for the month. 2. Prepare a schedule of cost of goods sold for the month. Assume the underapplied or overapplied overhead is closed to Cost of Goods Sold.
Answer:
Primare Corporation
Cost of Goods Sold:
Raw materials:
Beginning Inventory $12,000
Purchase 30,000
Ending Inventory (18,000)
Cost of raw materials $24,000
Direct labor 58,000
Beginning Work in process 56,000
Ending Work in process (65,000)
Manufacturing overhead 87,000
Cost of goods produced $160,000
Beginning Finished goods 35,000
Ending Finished goods (42,000)
Underapplied overhead 4,000
Cost of goods sold $157,000
Explanation:
a) Data and Calculations:
Raw materials purchase $ 30,000
Direct labor $ 58,000
Manufacturing overhead $ 87,000
Underapplied overhead $ 4,000
Inventories Beginning Ending
Raw materials $ 12,000 $ 18,000
Work in process 56,000 65,000
Finished goods 35,000 42,000
b) The cost of goods sold is the addition of the cost of production with the beginning inventory of finished goods and the ending inventory of finished goods. The underapplied overhead is added to the cost of goods sold.
The linear programming model for crashing presented in the textbook assumes that any portion of the activity crash time can be achieved for a corresponding portion of the activity crashing cost. True False
Answer: True
Explanation:
Linear programming is a mathematical programming method to get the best solution to a problem when we are given certain constraints.
The linear programming model for crashing presented in the textbook assumes that any portion of the activity crash time can be achieved for a corresponding portion of the activity crashing cost is true.
Which statement is true regarding the Preferred Vendor field in Product and Services items?A. You can add more than one preferred vendor to each product/service item.B. You can create a new vendor from the product/service information screen.C. Preferred vendors must be assigned to utilize Price rules.
Answer: B. You can create a new vendor from the product/service information screen
Explanation:
The statement that is true regarding the Preferred Vendor field in Product and Services items is that can create a new vendor from the product/service information screen.
Other statements given in the question such as adding more than one preferred vendor to each product/service item and Preferred vendors must be assigned to utilize Price rules are not true.
Therefore, option B is the correct answer.
Suppose a firm is producing in the long run. When it produces 2,000 units of output, its total cost is $4,000. When it produces 2,300 units of output, its total cost is $4,100, and when it produces 2,600 units of output, its total cost is $4,200.
This firm is experiencing (constant, decreasing, increasing, increasing then decreasing, decreasing then increasing) returns to scale.?
Answer:
This firm is experiencing Decreasing return to scale
Explanation:
ATC = TC/Q
ATC (2,000) = $4,000/2000 unit = 2
ATC (2,300) = $4,100/2,300 unit = 1.78
ATC (2,600) = $4,200/2600 unit = 1.62
The ATC is decreasing, hence it is decreasing return to scale.
10. Why is it important to include a cover message with all résumés you send, even if you send them by e-mail? (L.O. 6) g
Answer:
When sending a resume even if by e-mail, there are reasons why one should always include a cover letter with some of them being;
Introduction - This is the most important. You need to introduce yourself in the cover letter so that the recruiter may know more about the person sending the resume and have an extra interest in reading the it. To assess your writing skills - This is also important even if it will simply be a byproduct of you sending the email. Your letter writing skills will be on full display in the cover letter which will help the recruiter better ascertain your skill in that area.To qualify for the quantity discount, which of the following may not be joined together under the definition of any person?
A. Husband and wife investing in a joint account.
B. Father and son in an UTMA account.
C. Father and his 35-year-old son investing in seperate account.
Answer:
C. Father and his 35-year-old son investing in separate account.
Explanation:
Quantity discount when offered relates to one particular account, and not multiple accounts at a time.
In a transaction joint accounts are called as single person where there is only one main account in consideration and no secondary account exists for the same.
As in the given options,
Option A of husband and wife investing in a joint account means a single account is made of which both the husband and wife are controllers.
Option B is of UTMA account which is made for the benefit of the minor child, although involves two people that is parent and child, but is run individually by the parent and is a single account.
Further Option C provides for separate investment accounts , which means two different accounts and therefore are completely different one of father and another of son, thus do not qualify of quantity discount jointly, either of the one account can claim the quantity discount as a person.
What is the net present value of the investment in the furnace? (Do not round intermediate calculations. Round your answer to the nearest whole dollar.)b. What is the IRR? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)c. What is the payback period? (Do not round intermediate calculations. Round your answer to 2 decimal places.)d. What is the equivalent annual cost of the furnace? (Do not round intermediate calculations. Round your answer to 2 decimal places.)e. What is the equivalent annual savings derived from the furnace?
Answer:
a) NPV = $65,034.65
b) IRR = 27.71%
c) Payback period = 3.85 years
d) Equivalent annual cost = -$4,815.84
e) Equivalent annual saving = $12,454.79
Explanation:
The first part of the question is missing, so I looked it up:
"A new furnace for your small factory will cost $41,000 to install and will require ongoing maintenance expenditures of $3,500 a year. But it is far more fuel efficient than your old furnace and will reduce your consumption of heating oil by 3,800 gallons per year. Heating oil this year will cost $3 a gallon; the price per gallon is expected to increase by $.50 a year for the next 3 years and then to stabilize for the foreseeable future. The furnace will last for 20 years, at which point it will need to be replaced and will have no salvage value. The discount rate is 10%."
since the question is a little bit long, I prepared an excel spreadsheet:
During May, Bergen Company accumulated 2,500 hours of direct labor costs on job 200 and 3,000 labor hours on job 305. The total direct labor incurred at a rate of $28 per direct labor hour for job 200 and $24 per direct labor hour for job 305. Bergen Company estimates that total factory overhead costs will be $620,000 for the year. direct labor hours are estimated to be 80,000. For Bergen Company,
(a) determine the predetermined factory overhead rate using direct labor hours as the activity base
(b) determine the amount of factory overhead applied to jobs 200 and 305 in May using the information on direct labor hours.
(c) journalize the the entry to record the flow of labor costs into production during May
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Answer:
a. $7.75 per direct labor hour.
b. Job 200 = $19,375 and Job 305 = $23,250
c. Journal
Work In Process : Job 200 $19,375 (debit)
Work In Process : Job 200 $23,250 (debit)
Overheads $42,625 (credit)
Explanation:
Predetermined factory overhead rate = Budgeted Fixed Costs ÷ Estimated Direct Labor Hours
= $620,000 ÷ 80,000
= $7.75 per direct labor hour.
Application of Overheads.
Job 200 = Actual Labor hours × Predetermined factory overhead rate
= 2,500 hours × $7.75
= $19,375
Job 305 = Actual Labor hours × Predetermined factory overhead rate
= 3,000 hours × $7.75
= $23,250
If Congress cuts spending to balance the federal budget, the Fed can act to prevent unemployment and recession by
Answer: C. Reduce interest rates by increasing the money supply
Explanation:
If the Fed hopes to prevent unemployment and recession it needs to stimulate the economy to produce more goods and services as this will stave off recession while reducing unemployment as people will be needed to produce those goods and services.
The Fed can increase money supply which will lead to interest rates decreasing. When this happens more companies and individuals will be able to borrow funds as the cost of borrowing is low. These funds can then be invested in projects to increase production in the economy.
When a monopolist increases output, total revenue will: Multiple Choice increase if the price effect outweighs the quantity effect. decrease if the quantity effect outweighs the price effect. increase if the quantity effect outweighs the price effect. increase but it will have no price effect.
Answer: will increase if the quantity effect outweighs the price effect
Explanation:
A monopolist is an individual or a firm that controls all the market for a certain good or service in the market. A monopolist has so much power and usually doesn't improve their product as there are no alternatives.
An increase in output by monopolist will increase if the quantity effect outweighs the price effect.
Marketing is the activity, set of institutions, and processes that create, capture, communicate, and ______ value.
Answer:
deliver
Explanation:
Marketing can be defined as a business strategy for an organization whose focus is to build a strong relationship with the consumer and deliver value. Through well-planned marketing strategies consistent with the company's objective, it is possible to attract and retain customers, in addition to increasing the company's position in the market.
Generating value for the company and the customer, is one of the focuses of marketing, this is a complex strategy that is achieved by aligning what the company is with the image that it intends to convey to the consumer.
Value is achieved through effective communication, good service, quality, image, company values, price, etc.
A company that builds value for the customer is a company that achieves reliability in the market, which guarantees greater consumer loyalty, greater market share and greater competitiveness, which consists of a successful strategy for achieving organizational objectives and goals.
Demand is created through meeting customer buying criteria, credit terms, awareness (promotion) and accessibility (distribution). According to the Thrift segment's customers, which of these products was the most competitive at the end of last year?
a) Cute
b) Drat
c) Able
d) Crimp
Answer:
hello the Thrift segment customers table is missing hence i will give you a general guideline to the correct answer
answer : Of all the products listed, the product with the highest survey score in the month of December is the most competitive at the end of last year.
Explanation:
The product that was the most competitive at the end of last year is the product with the highest survey score for the month of December. this is because the more competitive a survey score of a product is, it signifies that more customers are interested in the product and that will make the product very competitive in the open market
An example of a good that is nonexclusive but rival is A. national defense. B. public radio. C. hunting in a public game area. D. a pay-TV channel.
Answer:
C. hunting in a public game area
Explanation:
A good is nonexclusive if it is accessible to all.
a rival good is something that can only be possessed or consumed by a single user.
If someone hunts at a public game area, and kills an animal, the person that kills it , possesses the animal.
Answer:
C. hunting in a public game area.
Explanation:
A nonexclusive good is one that cannot be possessed Soley by one person, but is used by many people. While exclusive goods are used only by one person. For example if a person buys a car he can restrict it's use to only himself so it is an exclusive good.
A rival good is one whose use affects the rate of use by others. For example at a gas station the petrol bought by one person reduces the amount another can buy.
Hunting in a public game arena is an example of a nonexclusive but rival good.
The game arena is open to everyone, but when a hunter kills game it reduces the number of game other hunters can kill.
The income statement of Dolan Corporation for 2012 included the following items:
Interest revenue $131,000
Salaries and wages expense 170,000
Insurance expense 15,200
The following balances have been excerpted from Dolan Corporation's balance sheets:
December 31, 2012 December 31, 2011
Interest receivable $18,200 $15,000
Salaries and wages payable 17,800 8,400
Prepaid insurance 2,200 3,000
The cash paid for insurance premiums during 2012 was:______
A) $13,000.
B) $12,200.
C) $16,000.
D) $14,400.
Answer:
C) $16,000.
Explanation:
cash paid for insurance premiums = total insurance expense + ending balance of prepaid insurance - beginning balance of prepaid insurance
cash paid for insurance premiums = $15,200 + $3,000 - $2,200 = $16,000
Generally when you purchase an insurance policy you can either pay every month or pay for several months in advance and get a discount. When you pay for several months in advance, you must debit prepaid insurance. Then as time passes, you must accrue insurance expense. For e.g. you pay $2,400 today for a 1 year insurance premium, and at the end of the month you will accrue $200 of insurance expense. But your cash payment was made today.
Assume the real rate was 9.5% and the inflation rate was 4%. Using the Fisher Effect, what was the nominal rate?
Answer:
13.88%
Explanation:
According to the fisher effect
(1 + nominal rate) = (1 + real rate) x (1+ inflation rate)
= (1.095) x (1.04) = 1.1388
(1 + nominal rate) = 1.1388
Nominal rate = 1.1388 - 1 = 0.1388 = 13.88%
Hielta Oy, a Finnish company, processes wood pulp for various manufacturers of paper products. Data relating to tons of pulp process during June are provided below: Percent Completed Tons of Pulp Materials Labor and OverheadWork in process, June 1 80,400 81% 24%Work in process, June 30 51,200 43% 17%Started into production during June 301,400 Required:1. Compute the number of tons of pulp completed and transferred out during June.Units completed and transferred out: 2. Compute the equivalent units of production for materials and for labor and overhead for June.Materials Labor and OverheadEquivalent units of production
Answer:
the equivalent units of production for materials = 352,616 units,
the equivalent units of production for for labor and overhead (conversion) = 339,304 units
Explanation:
First Determine the physical units that were Completed and Transferred out
Units Completed and Transferred = Units in Opening Work In Process + Units Started During the Year - Units in Closing Work In Process
= 80,400 + 301,400 - 51,200
= 330,600
Calculation of Equivalent Units of Production for
1. Materials
Units Completed and Transferred ( 330,600 × 100%) = 330,600
Units in Closing Work In Process ( 51,200 × 43%) = 22,016
Total Equivalent Units of Production for Materials = 352,616
2. Labor and Overhead
Units Completed and Transferred ( 330,600 × 100%) = 330,600
Units in Closing Work In Process ( 51,200 × 17%) = 8,704
Total Equivalent Units of Production for Conversion = 339,304
Inflation is 14 percent. Debt is $4 trillion. The nominal deficit is $360 billion. What is the real deficit or surplus
Answer:
Real Surplus is $200 billion
Explanation:
Inflation = 14%
Debt = $4 trillion = $4,000 billion
Nominal deficit = $360 billion
Real Deficit = Nominal deficit - (Inflation*Debt)
= $360 - 14% * 4,000
= $360 - 560
= -$200
Hence, the answer is Real Surplus of $200 billion
Match the financial institution to its role. take deposits and make loans manage a pool of money that is designated to be paid out to beneficiaries when they are in retirement
1. Commercial banks
2. Mutual funds help businesses, governments, and institutions to raise funds to
3. Pension funds finance their activities by issuing securities
4. Investment banks purchase a portfolio of assets for a group of investors
Answer:
1. Commercial banks - take deposits and make loans
Commercial banks create loans from the money deposited with them. They then earn interest on these loans and give the depositors some of the interest revenue depending on the type of account opened.
2. Mutual funds - purchase a portfolio of assets for a group of investors
Mutual funds pool money from multiple investors and then purchase a portfolio of assets. Profits made are divided amongst its investors.
3. Pension funds - manage a pool of money that is designated to be paid out to beneficiaries when they are in retirement.
Pension funds are meant to provide money to beneficiaries in retirement so they manage a pool of money that beneficiaries had invested into before they retired.
4. Investment banks - help businesses, governments, and institutions to raise funds to finance their activities by issuing securities.
Investment firms are mostly underwriters who help businesses, governments and other institutions raise funds to finance their activities.
You are writing the financial analysis for a snowboarding apparel business you are hoping to open in Topeka. Which tips should you follow?
a. Discuss market characteristics.
b. Describe how your service will benefit customers.
c. Outline a realistic start-up budget.
d. Present an operating budget that projects costs.
Answer: c. Outline a realistic start-up budget.
d. Present an operating budget that projects costs.
Explanation:
If one is writing the financial analysis for a snowboarding apparel business that one is hoping to open in Topeka, tye tios to follow include outlining a realistic start-up budget and presenting an operating budget that projects costs.
This will help the individual to know how much will be needed to fund the business and find means to get the fund to meet the requred costs.
Evaluating the competitive value of cross-business strategic fits in a company pursuing related diversification does not involve which one of the following?
a) Determining whether the strategic fits present sizable opportunities to reduce costs by combining the performance of certain related activities (and thereby capture economies of scope) and whether these cost-savings might be big enough to give one or more of the company's businesses a cost-based competitive advantage over rivals
b) Evaluating whether the fits among the strategies of each business unit are sufficiently compatible to produce strong resource fit and generate the financial resources needed for each business to aggressively competitive advantage in their respective industries
c) Evaluating whether there is much competitive value to be gained from cross-bu collaboration to create valuable new resources or capabilities that could driv gains in performance
d) Determining whether there is much competitive value to be gained from cross-business transfer of technology, skills, or know-how to correct the resource/capability deficiencies of the diversified company's weaker businesses and thereby boost their performance
e) Determining whether there is much competitive benefit to be gained from cross-business sharing of either the well-respected brand name of a sister business or the corporate parent's umbrella brand name pursue and have success in achieving a sustainable e significant
Answer: evaluating whether there is much competitive value to be gained from cross-business collaboration to create valuable new resources or capabilities that could drive significant gains in performance.
Explanation:
Related Diversification is a situation whereby a company expands its production line or markets bu producing a new product or in a case whereby a company has to penetrates a new market that is related to the business activity of the company.
It should be noted that the evaluation of the competitive value of cross-business strategic fits in a company pursuing related diversification does not involve evaluating whether there is much competitive value to be gained from cross-business collaboration to create valuable new resources or capabilities that could drive significant gains in performance
What kinds of business transactions are NOT summarized in a sole proprietor's books? A. Credits. B. Expenses or deductions. C. Gross income. D. Sole proprietor's wages.
Answer:
D. Sole proprietor's wages.
Explanation:
The owner of the business is the sole proprietor on the other hand sole proprietor is not an employee. Therefore he receives no salaries as he is the person who is an owner of any company or an organization. Any sum he takes from the company is considered to be withdrawn amount.
Hence, Sole Proprietor's wages are not listed in the ledger of the sole proprietor. So, the correct answer is D.
Sheltie Company sells lamps and clocks. Consider the following per unit data: At the break-even point, what is the sales revenue for lamps when fixed costs are $149,952 for Sheltie Company?
Answer:
$351,450
Explanation:
some information was missing, so I looked it up:
lamps clocks
selling price 75 45
variable costs 48 30
contribution margin 27 15
sales mix 3 1
contribution margin per bundle = (3 x $27) + (1 x $15) = $96 per bundle
break even point (in bundles) = $149,952 / $96 = 1,562 bundles which represents 4,686 lamps and 1,562 clocks
sales revenue for lamps at break even point = 4,686 lamps x $75 per lamp = $351,450
Kensington had this info at the end of 2015, its first year of operations:Pretax book income $800.000Prepaid expense 300,000Excess of tax over book depreciation 200,000 Interest Income on municipal bonds 100.000No other permanent or temporary differences exist. The prepaid expense will be expensed in 2018; the depreciation will reverse evenly over the next three years. Tax rate is 30%. Future net income is probable. The 12/31/15 Income Tax Payable is:______.a. $60,000.b. $240,000.c. $210,000.d. $180,000.e. $360,000.
Answer:
D. $180,000
Explanation:
Calculation for the 12/31/15 Income Tax Payable
Using this formula
Income tax payable =(Pretax book income-Excess of tax over book depreciation)× Tax rate
Let plug in the formula
Income tax payable=($800,000-$200,000)×30%
Income tax payable=$600,000×30%
Income tax payable=$180,000
Therefore the 12/31/15 Income Tax Payable is $180,000
A firm has $600,000 in current assets and $150,000 in current liabilities. Which of the following is correct if it uses cash to pay off $50,000 in accounts payable?
1) Current ratio will increase to 5.0.
2) Net working capital will increase to $500,000.
3) Current ratio will decrease.
4) Net working capital will not change.
Answer:
4) Net working capital will not change.
Explanation:
The best answer to the question is the 4th option. The net working capital will not be changed if company would be usingcash to pay off their accounts payable. Also the difference that exists between current assets and current liabilities will also stay the same way as it was before. current ratio will go up to 5.5.
Thank you.
An instrumental value is a desired end state or outcome that people seek to achieve.
A. True
B. False
Answer:
verdadero
Explanation:
Los valores instrumentales son aquellas formas de actuar específicas que una persona utiliza en un momento determinado para alcanzar un objetivo deseado
The instrumental value or worth of objects that provide a means to some desirable end, that satisfy some human needs and wants. Thus, instrumental value is a desired end state or outcome that people seek to achieve is true.
What is an instrumental value?Instrumental value is the value that something has because it helps us to get or achieve something else for example money. It is the value or worth of objects that provide a means to some desirable end, that satisfy human needs and wants.
In moral philosophy, instrumental and intrinsic value are the distinction between what is a means to an end and what is as an end in itself. Things are deemed to have instrumental value if they help one achieve a particular end.
Therefore, the statement mentioned in the question is true.
To learn more about instrumental value, click here:
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If a bank is forced to write off bad loans, what item on a bank's balance sheet act as a safety net to prevent bank failure should reserves run low
Answer:
Bank capital
Explanation:
Banks keep reserves that are used to serve customers. In the case where the bank reserves run low as a result of loan write off the next balance sheet item that the bank can fall back on is capital.
Banks are required to keep a particular level of net worth or capital in case of insolvency these can be sold to finance the bank's activities.
Having large capital means the bank can get high income to cover emergencies like bank runs.
Assets are expected to exceed liabilities. When liabilities exceed assets the bank is sadi to have negative net worth and the FDIC has the right to close such banks