Answer:
Option D is the right answer.
Explanation:
The selling of debt or factoring of debt means selling of the claims to accounts receivables to a third party in return for instant cash. The factoring firm charges a certain factoring fee and only pay a certain percentage of cash to the selling company.
The amount of cash that will be received is,
Cash = 4400 * 0.96 = 4224
Factoring fee expense = 4400 * 0.04 = 176
Thus, the entry to record such a transaction for the firm which is selling its accounts receivable claims is,
Cash 4224 Dr
Factoring Fee expense 176 Dr
Accounts Receivable 4400 Cr
15. What total incremental cost will Martinez incur if it increases production from 11,000 to 11,001 units
Answer:
The question is incomplete, below is the complete question and accompanying data:
Martinez Company's relevant range of production is 8,500 units to 13,500 units. When it produces and sells 11,000 units, its unit costs are as follows:
Amount per Unit
Direct materials $7.00
Direct labor $4.50
Variable manufacturing overhead $1.40
Fixed manufacturing overhead $5.00
Fixed selling expense $4.00
Fixed administrative expense $2.10
Sales commissions $1.10
Variable administrative expense $0.55
What total incremental cost will Martinez incur if it increases production from 11,000 to 11,001 units? (Round answers to 2 decimal places)
Answer
total incremental cost = $13.45
Explanation:
in the case of an increase in production quantity by 1 unit, (11,000 to 11,0001), only the variable costs will increase, because variable costs are those costs that increase as the unit of output/production increases.
The variable costs here are:
Direct material = $7.00
Direct labor = $4.50
variable manufacturing overhead = $1.40
variable administrative expenses =$0.55
Total incremental cost = 7.00 + 4.50 + 1.40 + 0.55 = $13.45
Therefore, total incremental cost = $13.45
Assume the real rate of return is 3.37% and the inflation rate is 1.47%. Find the nominal rate of return using the exact formula.
Answer:
4.89%
Explanation:
Real rate of return = 3.37%
Inflation rate = 1.47%
The nominal rate of return is computed as shown below:
= [ (1 + real rate of return) x (1 + inflation rate) ] - 1
= [ (1 + 0.0337) x (1 + 0.0147) ] - 1
= (1.0337 * 1.0147) - 1
= 1.04889539 - 1
= 0.04889539
= 4.889539%
= 4.89% approx.
Which of the following is likely to happen if the Fed buys Treasury securities from banks?a. interest rate rises; investment fallsb. interest rate rises; investment risesc. interest rate falls; investment risesd. interest rate falls; investment falls
Answer: c. interest rate falls; investment rises
Explanation:
The Fed buying treasury securities from banks is an expansionary policy when the government wants to increase the money in circulation and increase economic growth.
When the Fed buys Treasury securities from banks, this will lead to availability of funds as prices will be pushed higher and there will be a reduction in the interest rate.
Since there is reduction in interest rate, investment will increase as investors will borrow from banks.
Francisco Olivas of Olivas Medical Supply Company was reading the financial statements of Alvear Corp. to decide whether he wanted to try to acquire the company. He noticed some mistakes in the Alvear Corp. Income Statement:
Answer:
Alvear Corp.'s Operating Income for the year ended 12/31/2015 after correcting the mistakes is $0.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf file file for the complete question.
The explanation of the answer is now provided as follows:
Operating income refers to the amount of profit that a business realized from its operations after operating expenses have been deducted.
Operating expenses are cost incurred by a business in its normal business operations.
The following two mistakes are prominent in the income statement in this question:
1. Gain on sale of equipment is included as part of Total Revenue instead of including under Other Income.
2. Interest Expense is included as part of operating expenses instead of including it under Interest income (expenses).
To correct this mistake, the income statement is prepared again appropriately using a Multi-step income statement format that shows gross profit and the detailed of each category of expenses and incomes to arrive at the net income.
Note: See the attached excel file for the new multi-step income statement that shows Alvear Corp.'s Operating Income for the year ended 12/31/2015 after correcting the mistakes.
In the attached excel file, Alvear Corp.'s Operating Income for the year ended 12/31/2015 after correcting the mistakes is $0 (see red color).
econ301 2. What advantages do franchise business offer nonprofit that seek side business to generate revenues to support their causes
Explanation:
A franchise business is one that allows another business (or non-profit) to carry out certain commercial activities, in a sense acting as an agent for the company.
Consider the following advantages:
1. Capital
The franchisor (the company that grants permission) may provide all the capital required to open and operate the non-profit.
2. Better-quality management. The years of experience accumulated by the franchisor may be of benefit to the non-profit. Thus, improving the quality of operations.
Other benefits include;
increase their speed of Growth increased Profitability reduced RiskIn most situations, the UCC uses the test of _____ for determining when a person is excused from performing contractual obligations.
Answer:
commercial impracticability.
Explanation:
Uniform Commercial Code (UCC) is a set of comprehensive, codified, and modernized business laws that regulate commercial transactions and financial contracts across different state in the United States of America.
The U.C.C isn't a federal law, but a uniformly adopted state law with the sole aim and purpose to create uniformity of law across multiple court jurisdictions in the United States of America. It is called the backbone of American commerce because it has been adopted by all 50 states, in whole or in large part and thus, enhancing commercial transactions or business to thrive significantly.
In most situations, the uniform commercial code (UCC) uses the test of commercial impracticability for determining when a person is excused from performing contractual obligations.
Commercial impracticability can be defined as the inability to perform a contractual obligation or act based on terms that are considered to be reasonable in commerce.
Additionally, the cause of this inability to perform are typically unforseen or unanticipated.
Buzz is a product of the Baldwin company which is primarily in the Nano segment, but is also sold in another segment. Baldwin starts to create their sales forecast by assuming all policies (R&D, Marketing, and Production) for all competitors are equal this year over last. For this question assume that all 1128 of units of Buzz are sold in the Nano segment. If the competitive environment remains unchanged what will be the Buzz product’s demand next year (in 000’s)? Select: 1Save Answer 1128 1207 2572 1286
Answer:
1286
Explanation:
the following information is missing:
The marketing team makes a 14 percent growth forecastIf the competitive environment remains the same, then the sales forecast should equal actual demand + estimated sales increase:
actual demand = 1,128 units
estimated sales increase = 14%
sales forecast for next year = 1,128 + (14% x 1,128) = 1,128 + 157.92 = 1,285.92 ≈ 1,286 units
Which stage is arguably the most formal and structured opportunity for organizational change?a. Data gatheringb. Diagnosisc. Interventiond. Contracting
Answer:
Intervention
Explanation:
Structural change is defined as a change to corporate structure that can be as a result of internal or external factors and affects the mode of operation of the company.
Intervention are measures taken to improve organisation structure and processes.
It seeks to minimise negative effects and maximise effectiveness of the organisation.
This is the ideal stage for formal and organisational change to occur.
New systems can be put in place that will remove inefficiency in the business.
Currently Ark is charged $3,144,267 Depreciation on the Income Statement of Andrews. Andrews is planning for an increase in this depreciation. On the financial statements of Andrews will this
Question Completion:
A)Have no impact on the Net Cash from Operations as depreciation appears in both the Cash Flow and the Income Statement
B)Decrease Net Cash from Operations on the Cash Flow Statement
C)Increase Net Cash from Operations on the Cash Flow Statement
D)Just impact the balance sheet
Answer:
C)Increase Net Cash from Operations on the Cash Flow Statement
Explanation:
When Andrews increases the depreciation charge of $3,144,267 to a higher amount, this will decrease the net operating income. In computing the adjustment to net income for non-cash expenses, the increased depreciation will automatically increase the net cash from operations because of the tradeoff effects. So, on the financial statements of Andrews, specifically on the Statement of Cash Flows, the increased depreciation expense or charge will positively increase the net cash from operating activities.
Due to a boom in the US, the average rate of return on investments is likely to rise causing the demand for US dollar to
Answer:
Increase
Explanation:
When there is a boom there is an increase in several key indicators in an economy. Gross domestic product will rise and so also will productivity. This would give rise also to profit as there would be increases in business sale. Then business income will go higher as well as family income. A boom is the result of an increase in consumer spending. The return on investment rises thereby causing an increase in demand for dollars.
A monopoly produces widgets at a marginal cost of $10 per unit and zero fixed costs. It faces an inverse demand function given by P = 50 - Q. What are the profits of the monopoly in equilibrium
A. $300.B. $400.C. $500.D. $600.
Answer: B. $400
Explanation:
Profit is maximised at point where Marginal revenue equals marginal cost.
The Marginal revenue curve is below the demand curve for a monopolist and is double slopped compared to an inverse demand curve.
The expression for the Marginal Revenue is therefore;
MR = 50 - 2Q
MR = MC
50 - 2Q = 10
2Q = 50 - 10
2Q = 40
Q = 20
P = 50 - Q
=50 - 20
= $30
Total revenue = P * Q
= 30 * 20
= $600
Total cost.
= AC * Q
MC is given as a fixed number so can be considered as Average Cost
= 10 * 20
= $200
Profit = TR - TC
= 600 - 200
= $400
Based on the information given the profits of the monopoly in equilibrium
is: B. $400.
Given:
Marginal cost = $10 per unit
Fixed costs=0
P = 50 - Q
Hence:
MR = 50 - 2Q
MR = MC
50 - 2Q = 10
2Q = 50 - 10
2Q = 40
Q = 20
P = 50 - Q
P=50 - 20
P= $30
Total revenue = 30×20
Total revenue = $600
Total cost= 10 × 20
Total cost= $200
Profit = Total Revenue - Total Cost
Profit= 600 - 200
Profit= $400
Inconclusion the profits of the monopoly in equilibrium is: B. $400.
Learn more about equilibrium here:https://brainly.com/question/24735820
Large corporations collect vast amounts of information about their customers' shopping habits, including how, when, why, where, and what they buy, and then use that information to ______.
Answer:
plan future products and services
Explanation:
Data collection by large corporations.on their customers is an important part of strategy to retain present Clint's and gain more market share.
Customer information like shopping habits, including how, when, why, where, and what they buy. Is used to predict customer behaviour and preferences.
This information is then used to plan future products and services.
For example if a customer buys watches, the company can target the customer by sending promotional materials on new watch releases.
how air particle density and air pressure are related
Explanation:
The more gas particles there are within a given area, the greater the air density. Likewise, the greater the air density, the more gas particles there are per unit volume. Therefore, there are more air particles bombarding with a surface. Thus, the air pressure increases as the air density increases and visa versa... I hope this helps you answer your question :)
Machida Inc. is considering a project that is expected to produce cash inflows of $3,200 per year in years 1-4, with a final cash inflow of $5,700 in year 5. The project's initial cost is $9,800 and Machida's discount rate is 17 percent. Should Machida accept the project
Answer:
The NPV = $1578.185602 rounded off to $1578.19
As the NPV is positive, the project should be accepted.
Explanation:
The Net Present Value or NPV is a tool used to evaluate projects. It is used with various other tools to decide whether to undertake a project or not. To calculate the Net Present Value or NPV, we take the present value of the cash inflows provided by the project and deduct the initial cost of the project. If the NPV is positive, we should proceed with the project and vice versa.
NPV = CF1 / (1+r) + CF2 / (1+r)^2 + ... + CFn / (1+r)^n - Initial Cost
Where,
CF1, CF2, ... represents cash flow in Year 1, Year 2 and so on. r is the required rate of return
NPV = 3200 / (1+0.17) + 3200 (1+0.17)^2 + 3200 (1+0.17)^3 +
3200 (1+0.17)^4 + 5700 (1+0.17)^5 - 9800
NPV = $1578.185602 rounded off to $1578.19
Task _____ is the characteristic of a job that refers to how predictable job duties are from one day to the next.
Answer:
variability
Explanation:
When a worker is performing a task, he or she might come across a situation that is not expected or a situation not experienced before. Task variability enables the prediction of certain tasks, especially where those task are standardized and repetition of such reduces task variability.
Also, any exceptions experienced when carrying out a duty either in a new situation or at any stage in the value creation process, such would eventually make task variability high. In other words, take variability refers to the numbers of exceptions, a worker experienced when carrying out a duty.
Given Advanced Company's data, and the knowledge that the product is sold for $71 per unit and operating expenses are $300,000, compute the net income under absorption costing.
a) $70,000
b) $113,000
c) $210,700
d) $183,000
e) $288,000
Answer:
b) $113,000
Explanation:
For the computation of net income under absorption costing first we need to follow some steps which is shown below:-
variable overhead per unit = $105,000 ÷ 35,000
= $3 per unit
The Variable cost of production per unit
Particulars Amount
Direct material $19.00
Direct labor $21.00
Variable overhead $3.00
Variable cost of production
per unit $43.00
Cost per unit of finished goods under absorption costing
Particulars Amount
Total direct material cost $665,000
($19 × 35000)
Total direct labor $735,000
($21 × 35000)
Total variable overhead $105,000
Total fixed overhead $175,000
Total $1,680,000
Units in finished goods = Number of units produced - units sold
= 35,000 - 21,000
= 14,000
Cost of finished goods under variable costing
= Variable cost of production per unit × Number of units in finished goods
= $43 × 14,000
= $602,000
Cost of goods sold
= Production cost - Finished goods cost
= $1,680,000 - $602,000
= $1,078,000
Income statement under absorption costing
Particulars Amount
Sales revenue $1,491,000
($71 × 21,000)
Less: cost of goods sold -$1,078,000
Gross Profit $413,000
Less : operating expenses -$300,000
Net operating income $113,000
where P is the price of the stock and E is the earnings per share. Recently, the price per share of a certain company was $ and the earnings per share were $. Find the price-earnings ratio. g
Answer:
the information is incomplete but we can assign some numbers just to serve as an example:
suppose that the stock's price is $60, and the earnings per share (EPS) is $1.50, the price earnings ratio will be:
price earnings ratio = stock price / earnings per stock = $60 / $1.50 = 40
g The crowding out effect refers to the ________ from ________ in the government's budget deficit.
Answer:
The crowding out effect refers to the decrease in investment from an increase in the government's budget deficit.
Explanation:
The crowding-out effect refers to an expansionary fiscal policy or an increase in government spending that result in an offsetting falls in spending in the private sector.
The increase in government spending is usually inanced by government borrowing from the public and this sometimes bring about an increase in interest rate that dicourages investors from borrowing and therefore causes a fall in the spending by investors.
Therefore, crowding out effect is a situation whereby government hijacked fund that is supposed to be used by investors and the eventual result will be an increase in the government's budget deficit and decrease in investment.
Therefore, the crowding out effect refers to the decrease in investment from an increase in the government's budget deficit.
what are types of opportunity costs
Answer:
This distinction gives rise to two types of opportunity cost--explicit and implicit.
1:Explicit Cost: This is an opportunity cost that involves a money payment and usually a market transaction. ...
2:Implicit Cost: This is an opportunity cost that DOES NOT involve a money payment or market transaction.
Answer:
Explicit CostImplicit CostExplicit Cost: This opportunity cost involves money payment (and sometimes a market transaction).
Implicit Cost: This opportunity cost DOES NOT involves money payment or a market transaction.
Explanation:
Kellerman Company purchased a building and land with a fair market value of $550,000 (building, $425,000, and land, $125,000) on January 1, 2018. Kellerman signed a 20-year, 6% mortgage payable. Kellerman will make monthly payments of $3,940.37. Round to two decimal places.
a. Journalize the mortgage payable issuance on January 1, 2018. Date Credit Debit 425000 15000 Non BUnding 550000 morigage payuple Prepare an amortization schedule for the first two payments. Principal Amortization
b. Carrying Value Cash Interest Date Payment Expense Borrow Date First Pmt Second Pmt
c. Journalize the first payment on January 31, 2018. Date Debit Credit
d. Journalize the second payment on February 28, 2018. Debit Credit Date
Answer:
a, Journal Entry
Date Account Title Debit Credit
Jan 1 Building $425,000
Land $125,000
Mortgage payable $550,000
b. Date Interest Cash Principal Carrying
expense payment amortization value
Borrow date $550,000
First payment $2,750 $3,940.37 $1,190.37 $548,809.63
Second payment $2,744.05 $3,940.37 $1,196.32 $547,613.31
Working
First payment date
Interest expenses = 550,000 x 6% x 1/12 = 2,750
Cash payment = 3,940.37
Principal amortization = 3,940.37 - 2,750 = 1,190.37
Carrying value = 550,000 - 1,190.37 = 548,809.63
Second payment date
Interest expenses = 548,809.63 x 6% x 1/12 = 2,744.05
Cash payment = 3,940.37
Principal amortization = 3,940.37 - 2,744.05 = 1,196.32
Carrying value = 548,809.63 - 1,196.32 = 547,613.31
c. Journal
Date Account Title Debit Credit
Jan 31 Mortgage payable $1,190.37
Interest expense $2,750
Cash $ 3,940.37
d . Journal
Date Account Title Debit Credit
Feb 28 Mortgage payable $1,196.32
Interest expense $2,744.05
Cash $3,940.37
CoffeeCarts has a cost of equity of , has an effective cost of debt of , and is financed with equity and with debt. What is this firm's WACC?
Complete Question:
Coffee Carts has a cost of equity of 15.5%, has an effective cost of debt of 3.9%, and is financed 75% with equity and 25% with debt. What is the firm's WACC?
Answer:
The firm's WACC is:
= (0.75 * 0.155) + (0.25 * 0.039)
= 0.11625 + 0.00975
= 0.126
= 12.6%
Explanation:
CoffeeCarts Company's WACC (Weighted Average Cost of Capital) is the average rate that the company is expected to pay to all its security holders (stockholders and debt holders) who financed its assets. We can calculate CoffeeCarts' WACC by multiplying the cost of each capital source (equity and debt) by its relevant weight, and then adding the products together. The weight is the proportional percentage of each class of finance source to the whole.
Most of the significant decisions in contemporary organizations are made under which decision-making condition?
Answer:
A state of uncertainty.
Explanation:
The state of uncertainty is a condition of decision making that can be defined as the risk associated with the manager of making an ineffective decision to solve the expected problem. This is due to the complexity of the current business environment, which ensures that there are inherent risks when making a decision, since there are many variables involved in the current competitive market whose manager does not have full knowledge, so uncertainty exists when making a complex decision.
What the manager can do to minimize uncertainty is to adopt an analytical thinking that gathers the available information and his experience so that risks are minimized, such as the use of statistical analysis and analysis of the variables involved in the decision-making process, to judge the least risky option and try to make the right decision.
The following information on selected cash transactions for 2011 has been provided by Mancuso Company:
Proceeds from sale of land $160,000
Proceeds from long-term borrowings 400,000
Purchases of plant assets 144,000
Purchases of inventories 680,000
Proceeds from sale of Mancuso common stock 240,000
What is the cash provided (used) by investing activities for the year ended December 31, 2011, as a result of the above information?
a. $16,000.
b. $256,000.
c. $160,000.
d. $800,000.
Answer:
a. $16,000.
Explanation:
The computation of the cash provided or used by the investing activities is shown below:
Cash flow from investing activities
Proceeds from the sale of land $1,60,000
Less:
Purchase of plant asset -$1,44,000
Net cash flows provided by investing activities $16,000
hence, the correct option is a. $16,000
During its first year of operations, Anthony Lupa set up Lupo Inc. and invested $15,000 in the corporation. The company earned $35,000 of revenues and incurred $23,000 of expenses. A cash dividend of $2,000 was paid to Anthony. At the end of the year, the company's equity totaled:
Answer:
At the end of the year, the company's equity totaled: $25,000
Explanation:
The company earned $35,000 of revenues and incurred $23,000 of expenses.
Net income = Revenue - Expenses = $35,000 - $23,000 = $12,000
Retained earnings of the company = Net income - Cash dividend = $12,000 - $2,000 = $10,000
At the end of the year, the company's equity = Anthony Lupa's invested + Retained earnings = $15,000 + $10,000 = $25,000
In an organization, project managers report directly to the head of a PMO. In this case, which statement is probably not true
Answer:
Projects will be run by the functional organization and project managers expedite change control.
Explanation:
A project management office or PMO is a department within an organisation that is tasked with maintaining the standard of project management. They also make sure there is economies of repitition in project execution (ensure success of projects is replicated).
In the given scenario if project managers report to the head of a PMO it means that the project management team is independent of the functional organisation.
So the statement - Projects will be run by the functional organization and project managers expedite change control.
Is false.
Assume that the risk-free rate is 5% and the required return on the market is 12%. What is the required rate of return on a stock with a beta of 1.5?
Answer:
15.5%
Explanation:
Calculation for the required rate of return
Using this formula
Required return=Risk free rate +(Expected return-Free risk rate)×(Beta)
Let plug in the formula
Required return=0.05+(0.12-0.05)×(1.5)
Required return=0.05+(0.07)×(1.5)
Required return=0.05+0.105
Required return=0.155×100
Required return=15.5%
Therefore the required rate of return on a stock with a beta of 1.5 will be $15.5%
If an organization permits its employees to use personally-owned computers for remote access, how are security and vulnerability management affected
Explanation:
In this case, it would be risky for a company to allow the use of personal computers for remote access to organizational systems that contain data and information that must be protected by information security, which includes the confidentiality, integrity and availability of information.
In this case, the vulnerability management would be reduced, since each different remote computer may present weaknesses in the pillars of information security that significantly compromise security and induce attacks, failures and exposure of essential information to a company's business, the which can negatively interfere in business and cause a lot of damage to a company.
According to the lecture, which of the following is INCORRECT?A. The U.S.-Canadian border was set by agreement at 49* N latitudeB. The Modoc and Klamath native peoples inhabited Oregon while the Palouse and Yakima tribes inhabited WashingtonC. Because of its remoteness, there was much slower population growth in this region than the national averages in U.S. and CanadaD. Most of the region’s population lives in the lowlands from the Fraser River in Canada to the Willamette Valley in WashingtonE. The first railroad to Seattle stimulated large numbers of immigrants, especially Scandinavians, into Washington
Answer:C. Because of its remoteness, there was much slower population growth in this region than the national averages in U.S. and Canada.
Explanation:
Based on the lectures, the correct options are:
• The U.S.-Canadian border was set by agreement at 49* N latitude
• The Modoc and Klamath native peoples inhabited Oregon while the Palouse and Yakima tribes inhabited Washington.
• Most of the region’s population lives in the lowlands from the Fraser River in Canada to the Willamette Valley in Washington.
• The first railroad to Seattle stimulated large numbers of immigrants, especially Scandinavians, into Washington.
Therefore, option C is the answer.
When a municipal dealer gives a customer a "bond appraisal," he is disclosing:_________.
Answer: a likely price that the bonds can be sold which are based on market prices of similar securities
Explanation:
An appraiser bond is an insurance which is bought by appraise which show that they comply with certain laws and regulations. It gives confidence to the buyer of a home that their appraiser will be honest with them concerning the worth of the house.
When a municipal dealer gives a customer a "bond appraisal," he is disclosing a likely price that the bonds can be sold which are based on market prices of similar securities
An access control strategy that gives a user or group of users only those powers which are absolutely essential to do the job required is called the:
Answer:
Principle of least privilege
Explanation:
Principle of least privilege is a data management strategy that allows users access only to resources that are absolutely required to perform their functuons.
Lowest clearance level is given to uers so it is also called least privilege.
Transactions that requires resources not available to the user needs authorisation by someone with higher access level, for example a supervisor.
Some operating systems also provide default privilege settings for different types of user accounts