Answer:
False
Explanation:
P&G Vocalpoint is an initiative by Procter and Gamble to promote their products through word of mouth.
In 2001 through it division Tremor 225,000 teenagers were recruited to create awareness on new products.
In December 2005, 600,000 influential mom's were recruited to promote products through word of mouth. The initiative was called Vocalpoint.
So the statement - P&G's Vocalpoint is a group built on the premise that highly engaged individuals do not want to be bothered with learning about products.
Is false
Milano Gallery purchases the copyright on an oil painting for $510,000 on January 1, 2017. The copyright legally protects its owner for 12 more years. The company plans to market and sell prints of the original for 19 years.
Requried:
Prepare entries to record the purchase of the copyright on January 1, 2017, and its annual amortization on December 31, 2017.
Answer:
See journal entries below.
Explanation:
The copy right is known as an intangible asset that is purchased to a business hence debited to factor in its purchase value while the bank is credited for the payment for the purchase.
Although the copyright is amortized for 12 years, the copyright protection expires after 12 years - which is the legal year irrespective of its plan to market and sell the painting for 19 years.
• Entries to record to record the purchase of copyrights on January 1, 2017.
Date
January 1,2017
Copyright Dr $510,000
Bank Cr $510,000
(Being purchase of 12 years painting copyrights)
• Annual amortization on December 31, 2017
December 31, 2017
Amortization Dr $42,500
Copyright Cr $42,500
(Being annual amortization cost on 12 years painting copyright)
Suppose when the price of coffee beans goes from $1 to $1.20 per pound, production increases from 90 million pounds of coffee beans to 110 million pounds per year. Using the mid-point method, the percentage change in quantity supplied is: Multiple Choice 20 percent 18 percent 0.6 6.0
Answer: 20%
Explanation:
Using the midpoint formula, the denominator is an average of the beginning and ending figures;
= [tex]\frac{Q2 - Q1}{Q2 + Q1 /2 } * 100[/tex]
= [tex]\frac{110 - 90}{(110 + 90)/2} * 100[/tex]
= [tex]\frac{20}{100} * 100[/tex]
= 20%
Ballpark has shares of par common stock outstanding. Ballpark announces a stock split of for1. What is the effect of the split?
Answer:
The answer is 'it increases the number of shares outstanding'
Explanation:
Stock split increases the number of shares outstanding. It causes dilution of earnings per share.
For example, ABC Inc. has 50,000 shares outstanding and it announces a stock split of 3-for- 1.
This means that any shareholder that has 1 will exchange that 1 share for 3 shares. So at the end of the stock split the total number of shares outstanding will be 150,000 shares (50,000 x 3)
Mark Ward is a farmer who owns land which borders on the right-of-way of the Northern Railroad. On August 10, 2007, due to the admitted negligence of the Railroad, hay on the farm was set on fire and burned. Ward had had a dispute with the Railroad for several years concerning the ownership of a small parcel of land. The representative of the Railroad has offered to assign any rights which the Railroad may have in the land to Ward in exchange for a release of his right to reimbursement for the loss he has sustained from the fire. Ward appears inclined to accept the Railroad's offer. The Railroad's 2007 financial statements should include the following related to the incident:_________
A. recognition of a loss and creation of a liability for the value of the land.
B. disclosure in note form only.
C. recognition of a loss only.
D. creation of a liability only.
Answer:
A. recognition of a loss and creation of a liability for the value of the land.
Explanation:
This is because, in the financial statement of the Railroad company, it goes to show the financial dealings which the company had within the fiscal year under review. Since, the Northern Railroad Company and Mark Ward has reached an agreement, the best would be the recognition of the loss and create a liability for the value of the land in their financial statement. It will afford the investors to be aware of the assets and liability of the company at the present time.
Your Competitive Intelligence team is predicting that the Digby Company will invest in adding capacity to their Deal product this year. Assume Digby's product Deal invests in increasing its capacity by 10% this year. Because of this new information, your company anticipates all other products in the Core segment will increase their capacity by the same amount. How much can the industry produce in the Core segment the next year
Answer:
13,288
Explanation:
The computation of the amount that industry produced in the core segment is shown below:
It can be determined in two ways i.e.
= 6,444 + 6,444
= 13,288
And, the other method is
= 6,444 × 2
= 13,288
In both the methods, the answer would remain the same
Hence, the 13,288 should be produced by the industry for the next year production
How does technological change affect industry evolution? And how should firms manage product adoption and diffusion?
Answer:
How does technological change affect industry evolution?
Technological change greatly affects industry evolution. It is perhaps the most important factor in industry evolution, because technological advancements create new industries, and cause the death of other industries.
For example, the telephone industry replaced the telegraph industry, and the internet has made many technologies obsolete.
And how should firms manage product adoption and diffusion?
Firms should manage product adoption and diffusion in a strategic matter. Firms should look for new products with some anticipation in other to make a profit on customer and technological trends. Firms should also establish when to discard old products that are becoming obsolete in the market.
Rose dies with passive activity property having an adjusted basis of $156,400, suspended losses of $50,048, and a fair market value at the date of her death of $218,960. Of the $50,048 suspended loss existing at the time of Rose's death, how much is deductible on her final return or by the beneficiary
Answer:
12512 dollars that she have
g If the risk-free rate is 5%, return on the market is 8%, and beta is 0.5, a stock with a return of 7% is likely: Group of answer choices Correctly valued Undervalued None of the options Overvalued
Answer:
The stock is undervalued. As the required rate of return (6.5%) on market is less than the actual return (7%), the stock is said to be undervalued as it provides an actual return greater than the required rate of return.
Explanation:
To check if a stock is over valued, undervalued or correctly valued, we simply compare the required rate of return on a stock as measured by CAPM with the actual return on the stock.
We can calculate the required rate of return using CAPM equation. The formula for required rate of return under CAPM is,
r = rRf + Beta * (rM - rRF)
Where,
rRf is the risk free raterM is the return on marketr = 0.05 + 0.5 * (0.08 - 0.05)
r = 0.065 or 6.5%
As the required rate of return on market is less than the actual return, the stock is said to be undervalued as it provides an actual return greater than the required rate of return.
Answer:
Undervalued
Explanation:
to determine if the stock is overvalued or undervalued, we have to determine the expected rate of return using the CAPM and compare it with the return of the stock
Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
5% + 0.5(8% - 5%) = 6.5%
the stock is undervalued because 6.5% is less than 7%
Competitive markets ______ goods with positive externalities and ______ goods with negative externalities. Group of answer choices overprovide; underprovide underprovide; overprovide overprovide; overprovide underprovide; underprovide
Answer:
underprovide; overprovide
Explanation:
A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.
A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation
SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company’s products is grilled salmon with new potatoes and mixed vegetables. During the most recent week, the company prepared 4,800 of these meals using 2,350 direct labor-hours. The company paid its direct labor workers a total of $23,500 for this work, or $10.00 per hour. According to the standard cost card for this meal, it should require 0.50 direct labor-hours at a cost of $9.40 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 4,800 meals? 2. What is the standard labor cost allowed (SH × SR) to prepare 4,800 meals? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance?
Answer:Please find answers in the explanation column
Explanation:
a)standard labor-hours allowed (SH) to prepare 4,800 meals
standard labor-hours =Actual output X standard direct labor hours
4,800 X 0.50 = 2,400hours
B) standard labor cost allowed
direct labor-hours per houR = $9.40
standard labor-hours = 2,400
standard labor cost =direct labor-hours per houR xstandard labor hours
= $9.40 x 2,400= $22,560
c) labor spending variance= Actual cost incurred - Standard Labor cost
= 23,500 - 22,560= 940 -- Which is unfavorable because the actual is cost is greater than the standard labor cost
D)the labor rate variance and the labor efficiency variance?
labor rate variance= (Actual rate - standard rate ) X Actual hours
($10.00 -$9.40) X 2,350= $1,410
Labor efficiency variance=(Actual hrs - standard hrs allowed) x standard rate
2,350- 2,400) X $9.40= $470 --- Favourable as the actual hours used is less than the standard hours .
Wookie Company issues 8%, five-year bonds, on January 1 of this year, with a par value of $108,000 and semiannual interest payments.
Semiannual Period-End Unamortized Premium Carrying Value
(0) January 1, issuance $8,271 $116,271
(1) June 30, first payment 7,444 115,444
(2) December 31, second payment 6,617 114,617
Use the above straight-line bond amortization table and prepare journal entries for the following:
a) The issuance of bonds on January 1.
b) The first interest payment on June 30.
c) The second interest payment on December 31.
Answer:
See the journal entries and explanation below.
Explanation:
The journal entries will look as follows
a) The issuance of bonds on January 1.
Date Accounts title Debit ($) Credit ($)
Jan. 1 Cash 111,671
Premium on Bonds Payable 8,271
Bonds Payable (w.1) 108,000
(To record issuance of bonds.)
b) The first interest payment on June 30.
Date Accounts title Debit ($) Credit ($)
Jun. 30 Interest Expense (w.4) 3,493
Premium on Bonds Payable (w.2) 827
Cash (w.3) 4,320
(To record first interest payment)
c) The second interest payment on December 31.
Date Accounts title Debit ($) Credit ($)
Dec. 31 Interest Expense (w.4) 3,493
Premium on Bonds Payable (w.5) 827
Cash (w.6) 4,320
(To record second interest payment)
Workings:
w.1: Bond payable = Cash - Premium on Bonds Payable = $111,671 - $8,271
w.2: Premium on Bonds Payable = January 1 Unamortized Premium - June 30 Unamortized Premium = $8,271 - $7,444 = $827
w.3: Cash = $108,000 * 8% * (6 / 12) = $4,320
w.4: Interest expense = w.3 - w.2 = $4,320 - $827 = $3.493
w.5: Premium on Bonds Payable = June 30 1 Unamortized Premium - December 31 Unamortized Premium = $7,444 - $6,617 = $827
w.6: Cash = $108,000 * 8% * (6 / 12) = $4,320
w.7: Interest expense = w.6 - w.5 = $4,320 - $827 = $3,493
Daniel owns his own computer repair shop. Business has not been good, so Daniel's credit limit has been exhausted, and he needs a short-term loan to help him stay in business. Which institution, known as the lender of last resort, would Daniel most likely turn to for a loan
The institution that is called the lender of the last resort is the finance company.
The following information should be relevant:
Daniel should be converted into a finance company where the business provides short-term loans at high-interest rate as compared to the banks. Due to the high-interest rate, the financial companies should be treated as the lender of last resort for an individual & the businesses where the credit limit could be exhausted having poor credit ratings.So, the rest of the options are incorrect.
Therefore we can conclude that the institution that is called the lender of the last resort is the finance company.
Learn more about the credit limit here: brainly.com/question/8243881
Match the definition with the term.
a. It is a collection of all accounts with their activity and balances that exist in a business.
b. It is a book of original entry that includes a chronological record of all transactions that Have occurred within a business during a period occurred
c. It is a list of each account and its balance at any given time and is used to verify that debits = credits
d. It is a list of all ledger accounts which exist in a business and includes an identification number assigned to each account
1. A general ledger
2. A chart of accounts
Answer:
a. It is a collection of all accounts with their activity and balances that exist in a business. - A general ledger
The General Ledger is the central record in an accounting system and contains a record of all financial transactions in the company.
b. It is a book of original entry that includes a chronological record of all transactions that Have occurred within a business during a period occurred. - A Journal
When a transaction takes place in a business, it is recorded first in a Journal. As such, a journal contains a chronological record of all transactions that have occurred within a business during a period occurred.
c. It is a list of each account and its balance at any given time and is used to verify that debits = credits . - Trial Balance
The Trial Balance helps a business balance its debits and credits by listing them so then equating them to verify that indeed the debits match the credits.
d. It is a list of all ledger accounts which exist in a business and includes an identification number assigned to each account . - A chart of accounts
Guardian Corporation has two major divisions-Healthcare Products and Pharmaceutical Products. It provides the following information for the year Pharmaceutical Division Healthcare Division $150,000 $47.000 $310,000 $1,000,000 $218,400 $5,660,000 13 0% sales ating income age assets Target rate of return 13 0% Calculate the residual income for the Healthcare Division.
a. $47 000
b. $6700
c. $27.500
d. $103,000
Answer:
Residual income =$6,700
Explanation:
Residual income is the excess of the controllable profit over the opportunity cost of capital invested.
It is used to evaluate the financial performance of a division or department.
The a positive residual value indicate a good performance, hence the higher the residual value the better
It is computed as follows:
Residual income = Controllable profit - (cost of capital× operating assets)
Controllable profit = 47,000
Interest on capital = × 13% × 310,000 = 40300
Residual income = 47,000 - 40,300 = 6700
Residual income =$6,700
The company currently markets McDog T-bone, Lapdog Lunchtreats, Rover's Potroast, and Puppy Porterhouse in the dog food market. Prime Cuts will be an addition to the
Answer:
company's product line in the dog food market
Explanation:
In the description provided, it can be said that Prime Cuts will be an addition to the company's product line in the dog food market. A product line is a group of related products all marketed under a single brand name and are sold by the same company to the same targeted group of consumers. Such as in this scenario, all of the products listed are dog treats/food with different ingredients and are all sold by the same company to people looking for dog food.
Nakatomi Corporation produces 10,000 units of Product A at a cost of $20 per unit. A detailed breakdown of the cost is below. Choose the correct answer from the options provided. Per Unit Variable costs $ 12 Allocated manufacturing overhead costs 3 Allocated general administrative costs 5 $ 20 Outside supplier's offer $ 17 What are the total relevant cost of producing the units internally
Answer:
$120,000
Explanation:
Calculation for the total relevant cost of producing the units internally
Using this formula
Total relevant cost = Variable costs per unit*Units Produce
Let plug in the formula
Total relevant cost=$12 per unit* 10,000 units
Total relevant cost=$120,000
Therefore the total relevant cost of producing the units internally will be $120,000
Provident Bank offers a 10-year CD that earns 2.15% compounded continuously. If $10,000 is invested in this CD, how much will it be worth in 10 years
Answer:
the CD will be worth $12,370.40 in 10 years time.
Explanation:
The Future Value is the term given to the amount that a dollar invested today would be worth in the future.
The Future Value of the CD can be determined as follows :
PV = - $10,000
n = 10
i = 2.15 %
Pmt = $ 0
P/yr = 1
FV = ?
Using a financial calculator,the future value (FV) of the CD in 10 years time will be : $12,370.40
Bronn and Jaime make a written contract where Jaime will sell Bronn his armor and sword for $1,200.
Which of the following is not a defense to the formation of the contract?
Group of answer choices
A. fraud
B. illegality
C. incapacity
D. unconscionability
E. mirror image rule
Answer: Mirror image rule
Explanation:
It should be noted that the contract formation defenses are fraud, illegality, incapacity, unconscionability, duress and statute of Frauds.
The mirror image rule is not among the defense to the formation of w contract. It implies that an offer should be accepted with no changes made to the offer.
When modeling the right to develop an oil property as a real option, and in the presence of fixed costs, using oil price volatility in the option-pricing model will
Answer:
overestimate because the value of the option depends on the volatility of revenue
Explanation:
The greater the market volatility, the greater the range that would be needed to determine the option premium. This would end up causing an overestimation of the premium value.
Therefore making use of oil price volatility in the option-pricing model will overestimate as value of option is dependent on how volatile the revenue is.
Byrd Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 205,000 shares of stock outstanding. Under Plan II, there would be 125,000 shares of stock outstanding and $1.73 million in debt outstanding. The interest rate on the debt is 8 percent and there are no taxes. a. Use MM Proposition I to find the price per share. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the value of the firm under each of the two proposed plans? ((Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.)
Answer:
a) $21.63
b) $4,433,125
Explanation:
plan I, total stocks outstanding = 205,000
plan II, total stocks outstanding = 125,000, and $1,730,000 in debt ($1,730,000 x 8% = $138,400 in interests)
under MM proposition I, a firm's total value is equal whether it uses external financing (debt) or not:
205,000P₀ = 125,000P₀ + $1,730,000
205,000P₀ - 125,000P₀ = $1,730,000
80,000P₀ = $1,730,000
P₀ = $1,730,000 / 80,000 = $21.625 = $21.63
the firm's total value = $21.625 x 205,000 = $4,433,125
Ernest is applying for a carpentry apprenticeship program. He must take a test involving mathematical calculations including working with fractions and geometry. This is illegal because carpentry is a manual labor job and these tests are cognitive and not job-related.
A. True
B. False
Answer:
B. False
Explanation:
Since in the question, it is mentioned that Erney applied for a carpentry apprenticeship program. Also he took the test. This is not a illegal as if he wants to work in two specialized field than he could co but the work should be legal in nature and both the work are legal itself
Hence, the given statement is false
Calculation of national output at Market Prices is known as _________
a.
Real GDP
b.
Nominal GDP
c.
Non-monetary income
d.
None of these
Answer:
A
Explanation:
A project requires an investment of $10 million and offers an annual after-tax cash flow of $1,250,000 indefinitely. If the firm's WACC is 12.5% and the project is riskier than the firm's average projects, should it be accepted?
Answer:
No.It should not be Accepted.
Explanation:
Weighted Average Cost of Capital (WACC) is the minimum return that is expected from a project. It shows the risk of the entity. If a project gives a return below the WACC, it is regarded as very risk and must not be accepted.
If I currently sell 10,000 units, and my use of Formula 1 indicates that I will need to sell 500 additional units to justify my suggested change to the marketing mix, what percentage of sales does that represent
Answer:
It represents a 5% change to the marketing mix.
Explanation:
The change = 500/10,000 x 100 = 5%.
Company A's change in a variable can be compared with another index, by expressing the change (addition) as a percentage of the index. For instance, the sale of 10,000 units is an index. The additional 500 units that is needed to be sold represent the change. In percentage terms, the change can be divided by the index and then multiplied by 100.
For an automobile company, the total overhead applied was $48,000,000 at the end of the year. Actual overhead was $52,850,000. Closing over/under applied overhead into cost of goods sold would cause net income to:
Answer:
Net income decreased by $4,850,000.
Explanation:
Given total overhead applied = $48000000
The actual overhead = $52850000
Over/under Applied overhead = total overhead applied - Actual overhead at the end of the year.
Over / under Applied overhead = 48000000-52850000
Over / under Applied overhead = -$4850000
From the calculation, it can be seen that the overhead is underapplied therefore when under applied overhead allocated to cost of goods sold then cost of goods sold decreased by $4850000.
A small ice cream business earns $26538 profit during the two months of July and August. This represents 35% of the annual profit. Find the annual profit. Round to the nearest whole number.
Let the annual profit be x.
profit earned in July and August is 35% of the annual profit
=> $26538 = 35% of x
=> $26538 = (35/100) × x
=> $26538 × (100/35) = x
=> $2653800/35 = x
=> $530760/7 = x
So, the profit is $530760/7.
The annual profit is $75,823.
Given that,
Two months profit is $26,538.This two month profit represents 35% of annual profit.We need to find annual profit.According to the scenario, computation of the given data are as follows,
Let annual profit be X.
So, X [tex]\times[/tex] 35% = 26,538
X = 26,538 [tex]\div[/tex] 0.35
X = 75,822.86 or 75,823
Hence annual profit = $75,823.
Learn more : https://brainly.com/question/21003301
During 2021, Deluxe Leather Goods issued 707,000 coupons which entitles the customer to a $5.00 cash refund when the coupon is submitted at the time of any future purchase. Deluxe estimates that 71% of the coupons will be redeemed. 261,000 coupons had been processed during 2021. Deluxe recognizes coupon expense in the period coupons are issued. At December 31, 2021, Deluxe should report a liability for unredeemed coupons of:
Answer:
Deluxe should report a liability for unredeemed coupons of $1,204,850
Explanation:
Estimated coupons to be redeemed $501,970
(707,000 * 71%)
Less: Coupons redeemed $261,000
Coupons unredeemed $240,970
X Cost per Coupon 5.00
Liability for unredeemed Coupons $1,204,850
People decide to save 20 percent of their incomes. The value of the marginal propensity to consume is ________ and the value of the spending multiplier is ________.
Answer: 0.8; 5
Explanation:
From the question, we are informed that people decide to save 20 percent of their incomes. We should note that the addition of the marginal prospensity to consume(MPC) and the marginal prospensity to save(MPS) will be equal to 1.
Therefore, the value of the marginal propensity to consume will be:
= 1 - 20%
= 1 - 0.2
= 0.8
The value of the spending multiplier will be calculated as:
= 1/MPS
= 1/0.2
= 5
Swan Textiles Inc. produces and sells a decorative pillow for $98.00 per unit. In the first month of operation, 2,200 units were produced and 1,800 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes: Variable manufacturing costs $24.00 per unit Variable marketing costs $5.00 per unit Fixed manufacturing costs $13.00 per unit Administrative expenses, all fixed $21.00 per unit Ending inventories: Direct materials −0− WIP −0− Finished goods 400 units What is the operating income using variable costing?
Answer:
Net operating profit= 57,800
Explanation:
Giving the following information:
Selling price= $98
Units sold= 1,800
Variable manufacturing costs $24.00 per unit
Variable marketing costs $5.00 per unit
Fixed manufacturing costs $13.00 per unit
Administrative expenses, all fixed $21.00 per unit
First, we need to calculate the total fixed costs:
Total fixed manufacturing cost= 13*2,200= 28,600
Total administrative cost= 21*1,800= 37,800
Variable costing income statement:
Sales= 98*1,800= 176,400
Total variable cost= 1,800*(24 + 5)= (52,200)
Contribution margin= 124,200
Total fixed manufacturing cost= (28,600)
Total administrative cost= (37,800)
Net operating profit= 57,800
Using the same information from before, please calculate the WACC of Correct Inc. assuming a risk free rate of 2.5%, a company Beta of 1.2 and a market risk premium of 6%.
Answer:
WACC = 21.7%
Explanation:
The firm is an all-equity finance firm which implies that the company uses only equity funds to finance its its operation without the use of debt. Therefore, the cost of the equity of the firm would be the same as its cost of capital (WACC)
The WACC can be determined using the the capital asset pricing model (CAPM). The CAPM relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c
Using the CAPM , the required rate of return is given as follows:
E(r)= Rf +β(Rm-Rf)
E(r) - required return
β- Beta
Rm- Return on market
Rf- Risk-free rate
Rm-Rf- Market risk premium
DATA
E(r) =? , Rf- 2.5%, Rm-Rf- 6% , β- 1.2
E(r) = 2.5% + 1.2× (16%) = 21.7 %
Cost of equity = 21.7%
WACC = 21.7%