Answer:
FEDERAL RESERVE
Assets=$300 (A)
Liabilities =$300 (B)
COMMERCIAL RESERVE
Assets:
Treasure Bills =$-300 (C)
Reserves=$300
Liabilities
No change
Explanation:
To Complete the tables that represent the financial position of the Federal Reserve and commercial banks
FEDERAL RESERVE
Assets=$300 (A)
Liabilities =$300 (B)
COMMERCIAL RESERVE
Assets:
Treasure Bills =$-300 (C)
Reserves=$300
Liabilities
NO change in liabilities
Therefore the Federal Reserve assets will be TREASURY BILLS While the liabilities for Federal Reserves will be MONETARY BASE
How much can a Municipal Finance Professional (MFP) contribute to the "clean up" campaign to pay off campaign debt of an ex-issuer official that is now out of office because she lost the general election
Answer:
An unlimited amount
Explanation:
According to the Political contribution rule, Municipal Finance Professionals cannot make contribution of more than $250 to an elected official's campaign.
However in this case the ex-issuer official lost the general election and is not able to influence municipal securities of the MFP.
So they can contribute any amount to the clean up campaign since the official is out of office.
The Political contribution rule was instituted to prevent office holder from manipulating MFP securities in exchange for large contributions.
Ford and General Motors are considering expanding into the Vietnamese automobile market. Devise a simple prisoners' dilemma game to demonstrate the strategic considerations that are relevant to this decision.
Explanation:
To look at it from a prisoner's escape dilemma, let's look at Ford and General motors as been about out of their status quo and to break into a new market–the Venezuelan market.
They should should see themselves as been worse off if they did not make the move. Also, they need weigh the benefits of expanding. After such considerations, both car companies should work towards expanding regardless of whether or not the other is expanding.
For the coming year, Crane Inc. is considering two financial plans. Management expects sales to be $301,770, operating costs to be $266,545, assets to be $200,000, and its tax rate to be 25%. Under Plan A it would use 25% debt and 75% common equity. The interest rate on the debt would be 8.8%, but the TIE ratio would have to be kept at 4.00 or more. Under Plan B the maximum debt that met the TIE constraint would be employed. Assuming that sales, operating costs, assets, the interest rate, and the tax rate would all remain constant, by how much would the ROE change in response to the change in the capital structure
Answer:
increase in ROE due to plan B = 26.44% - 20.55% = 5.89%
Explanation:
currently EBIT = $301,770 - $266,545 = $35,225
TIE ratio = EBIT / interest expense
Plan A:
interest expense = ($200,000 x 25%) x 8,8% = $4,400
TIE ratio = $35,225 / $4,400 = 8
net income (assuming no taxes) = $30,825
ROE = $30,825 / $150,000 = 20.55%
Plan B:
TIE ratio = 4 = $35,225 / interest expense
interest expense = $35,225 / 4 = $8,806.25
total debt = $8,806.25 / 8.8% = $100,071
equity = $99,929
net income = $35,225 - $8,806.25 = $26,418.75
ROE = $26,418.75 / $99,929 = 26.44%
increase in ROE due to plan B = 26.44% - 20.55% = 5.89%
If the wage rate paid per hour differs from the standard wage rate per hour for direct labor, the variance is a a.rate variance b.variable variance c.quantity variance d.volume variance
Answer:
a.rate variance
Explanation:
The labor rate variance arises when the rate is paid for the labor is different as compared with the standard rate
Also the variance could be favorable or unfavorable that based whether it is below the standard rate or higher standard rate as compared with the actual rate
hence, in the given situation, the correct answer is a. rate variance
A bond that pays interest annually yields a rate of return of 9.25 percent. The inflation rate for the same period is 4 percent. What is the real rate of return on this bond?
Answer: 5%
Explanation:
From the question, we are informed that a bond that pays interest annually yields a rate of return of 9.25 percent and that the inflation rate for the same period is 4 percent.
The real rate of return on this bond will be calculated as:
= (1+nominal rate)/(1+inflation rate) - 1
= (1 + 9.25%)/(1 + 4%) - 1
= (1 + 0.0925)/(1 + 0.04) - 1
= (1.0925/1.04) - 1
= 1.05 - 1
= 0.05
= 5%
Which of these are good ways to find a buyer’s agent?
a. Ask an attorney
b. Referrals
c. Ask a broker
d. Search online
e. Interview agents
it's e interview agents
Turrubiates Corporation makes a product that uses a material with the following standards:________. Standard quantity 6.5 liters per unit Standard price $1.00 per liter Standard cost $6.50 per unit The company budgeted for production of 2,300 units in April, but actual production was 2,400 units. The company used 16,410 liters of direct material to produce this output. The company purchased 18,600 liters of the direct material at $1.10 per liter. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for April is:________. a. $891 U b. $810 U c. $891 F d. $810 F
Answer:
Direct material quantity variance= $810 unfavorable
Explanation:
Giving the following information:
Standard quantity 6.5 liters per unit Standard price $1.00 per liter
Actual production was 2,400 units.
The company used 16,410 liters of direct material to produce this output.
To calculate the direct material quantity variance, we need to use the following formula:
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Standard quantity= 6.5*2,400= 15,600
Direct material quantity variance= (15,600 - 16,410)*1
Direct material quantity variance= $810 unfavorable
How is your opportunity cost of taking this course online different than taking it on-campus?
Answer:
Online classes is new trend now these days. Both ways have their own advantage and disadvantages.
Explanation:
Now these days the trend of online classes are on top. This is not a longer novelty. This mode of learning changes the structure and experience of the class.
It is not necessary that the changes could be right for all. There are some advantage of online classes.
Flexible scheduleFaster completionTo study anytimeTo login from anywhereTo access the more collegesNo commuteIt has potentially lower cost
But in traditional classroom in campus, you have to attend the classes at campus. You will meet new people. Students get socialize with another students and new people
Both way of taking course have advantage and disadvantage.
You haven't been able to spend much time talking with your team lately, but your workload should be back to normal soon. When you checked in with your team today, several associates joked about being surprised to see you. Assuming all options are possible, what would you be most and least likely to do? 1. Explain the issue to team members and praise them for their work while you've been out. Let them know that you will soon have more time. 2. Talk to your manager to explain the situation. Propose that you ease some of your commitments so that you can spend more time with your team. 3. Keep your other commitments and try to be more strategic about when you interact with your team, picking the best times to maximize impact. 4. Immediately start spending more time with your team, even though this requires additional hours, in order to keep your other commitments. Most Least
Answer & Explanation: Team bonding is an important part of work as it helps to build morale and improve productivity.
In this scenario, I will most likely 'Explain the issue to team members and praise them for their work while you've been out. Let them know that you will soon have more time". This will help the team members to be involved and understand the intention.
However, I will least likely 'Immediately start spending more time with your team, even though this requires additional hours, in order to keep your other commitments'. This will mean pleasing the team at my expense and may lead to breakdown.
Kzinski warrants the mixers to be free of defects in material and workmanship for 1 year from the date of original purchase. If the mixer has such a defect, Kzinski will repair or replace the mixer free of charge for parts and labor. The product must be shipped prepaid to an authorized Kzinski service center. The consumer pays the cost to ship the mixer. The cost to return the product to the consumer is paid by Kzinski.
The authorized service center is located in Boston. Because Cookie Creations values serving its customers, it pays the shipping to Boston for any mixers needing repair under Kzinski’s warranty terms. Based on past experience, Kzinski has found that approximately 10% of mixers are returned for repair or replacement. The average cost to ship a mixer to Boston is $60.
The following transactions take place in 2020 and 2021.
A total of 30 mixers are sold in 2020.
Four of the mixers sold in 2020 are returned for repair in 2021. The total shipping cost for returning these four mixers to Boston is $210.
A total of 40 mixers are sold in 2021.
Two of the mixers sold in 2021 are returned for repair in 2021. The total shipping cost for returning these two mixers to Boston is $55.
1. Calculate Cookie Creations’ warranty liability for the shipping costs at December 31, 2020.
2. Record the estimated warranty liability at December 31, 2020.
3. Prepare the summary journal entry (or entries) to record the shipment of the six mixers (four from the 2020 sales and two from the 2021 sales) for warranty repair in 2021.
4. Calculate Cookie Creations’ warranty liability at December 31, 2021.
Answer:
1. Calculate Cookie Creations’ warranty liability for the shipping costs at December 31, 2020.
warranty liability = 30 x 10% x $60 = $180
2. Record the estimated warranty liability at December 31, 2020.
Dr Warranty expense 180
Cr Warranty liability 180
3. Prepare the summary journal entry (or entries) to record the shipment of the six mixers (four from the 2020 sales and two from the 2021 sales) for warranty repair in 2021.
Dr Warranty liability (= $210 + $55) 265
Cr Cash 265
4. Calculate Cookie Creations’ warranty liability at December 31, 2021.
warranty expense = ($210 - $180) + [(40 x 10% x $60) - $55] = $30 + $185 = $215
Dr Warranty expense 215
Cr Warranty liability 215
Levine, Inc., has a total debt ratio of 0.48. What is its debt-equity ratio?
Answer:Debt equity ratio= 0.92
Explanation:
Debt equity ratio is a company's liquidity ratio that compares its total debt to total equity showing how the proportion of the finance of the company proceeds from its creditors and investors.
its formulae is given by
Debt equity ratio= Total liabilities /Total shareholder's equity
= Debt/ total asset - debt
let the total asset = 100% = 1
Therefore,
Debt equity ratio=Debt/ total asset - debt
= 0.48/ 1 -0.48 = 0.48 /0.52 = 0.9231
You will receive $225 a month for the next eight years from an insurance settlement. The interest rate is 7% compounded monthly for the first three years and 9% compounded semi-annually (quarterly) for the final five years. What is this settlement worth to you today?
Answer:
$16,014.64
Explanation:
first we have to determine the present value of the last five years:
effective interest for last 5 years = (1 + 9%/4)⁴ - 1 = 1.093 - 1 = 9.31%
9.31% / 12 = 0.7757%
present value = $225 x 47.82377 (PV annuity factor, 0.7757%, 60 periods) = $10,760.35
now, present value = $10,760.35 / (1 + effective interest)³
effective interest first 3 years = (1 + 7%/12)¹² - 1 = 1.0723 - 1 = 7.23%
present value = $10,760.35 / (1 + 7.23%)³ = $8,727.25
now we need to determine the present value of the first 3 years:
present value = $225 x 32.38838 (PV annuity factor, 2.25%, 36 periods) = $7,287.39
total value of the annuity = $16,014.64
The bullwhip effect occurs when slight to moderate demand variability becomes magnified as demand information is transmitted back upstream. True/False
Answer:
The given statement is "True".
Explanation:
The bullwhip effect has been characterized as either the production disruption that flows upstream again from supplier to something like the wholesaler as well as a distributor throughout the production process, given the differences of shipments that might have been broader than those of revenues. Because these, upstream advertisers usually experience a reduction in prediction performance while the gap between some of the consumer as well as the supplier grows.(Consider This) According to economist Abba Lerner (1903-1982), fiscal and monetary policy is analogous to
Answer:
a steering wheel in an automobile.
Explanation:
Abba Lerner a twentieth-century economist, is widely known for his suggestion of the utilization of fiscal policy and monetary policy as a form of Keynesian economics. In his analysis, he declared that fiscal and monetary policy is analogous to a steering wheel in an automobile.
Hence, the correct answer to the question is "a steering wheel in an automobile."
A(n) ____ focuses on the need for service providers to build strong bonds with customers.
Answer:
Interpersonal relationship
Explanation:
Took business
Answer:
interpersonal relationship
Greg and Joyce have an adjustable rate mortgage on their home. What is the key feature of this type of loan?
Answer: Interest rate can vary
Explanation: Based on the description of Greg's and Joyce's mortgage loan, the key term is the adjustable nature of the loan used to finance the mortgage. Being adjustable simply means not fixated. Hence, the interest on the loan is bound to change throughout the entire period of the loan. This type of mortgage loans are called ADJUSTABLE RATE MORTGAGE or FLOATING mortgage. The change in the interest rate applied on the outstanding balance of is usually at intervals which could be annually, semianually or monthly basis as the case may be.
What does the income statement reflect?
A) The cash that has flowed in and out of the company over an accounting period.
B) Revenues minus expenses over an accounting period.
C) Both of the above.
D) None of the above.
Answer: B) Revenues minus expenses over an accounting period.
Explanation:
The Income statement lets the business know how much profit it made from its operations during the year.
It lists the revenue that was earned and then deducts all expenses that were incurred from that revenue including taxes and interest payment and then presents the net income/loss.
The first option refers to the Cashflow statement.
Controls that prevent, detect, and correct transaction errors and fraud in application programs are called: A. Application controls B. General controls C. Preventive controls D. Detective controls
Answer:
A. Application controls
Explanation:
Application control refers to the practice that looks in the security issues that lingers over the data. It helps in restricting or blocking the applications that are unauthorized to become a threat to data security. When the data is transferred or shared among different applications, the application control helps in performing the function of a safeguard.
"A customer has an existing short margin account with credits of $16,000 and a short position in ABC stock worth $12,000. The SMA in the account is $1,000. If the market value of ABC falls to $8,000, the equity is:"
Answer:
$8,000
Explanation:
Short sale is a transaction involving an investor who borrows shares to sell in the market in anticipation of buying back the shares in the future when the market prices decreases. Where there is a proceed in short sale transaction, such will be deposited in a short margin account.
With regards to the above, if the market value of ABC shares falls to , then the equity would be;
Equity = Short margin account credits -Short market value
Equity = $16,000 - $8,000
Equity = $8,000
You and your firm need to develop policies that avoid acquisitions and restructuring. Select one: True False
Answer:
True
Explanation:
If polices are not developed that avoid acquisitions and restructuring, this results in hostile takeover of the company by other investors or decline of earning per share of the investors. So its important to develop such polices.
Best's Bicycles manufactures three different types of bikes: the Tiny Tike, the Adult Aero, and the Mountain Monger. Given the information in the table, calculate the required capacity for this year's production. Note that the times are given for assembly lines, so capacity calculations should be in terms of the number of lines necessary. Assume that Best Bicycles operates three shifts, each with 2,000 hours per year.Bike Demand Forecast Processing Time Lot Size (# of bikes) Setup Time (units/year) (minutes/unit) (minutes/setup)Tiny Tike 14,000 8 15 50Adult Aero16,000 10 18 80Mountain 19,000 12 25 40Mongera. Determine the total setup timeb. Determine the total operating time availablec. Determine the number of assembly lines
Answer:
A.148,177.78
B.360,000 hours
C. 2.89
Explanation:
A. Calculation to Determine the total setup time
Determine the total setup time for each of the three different types of bikes
Tiny Bike= (14,000/15)×50
=933.3333×50
=46,666.67
Adult Aero (16,000/18)×80
=888.889×50
=71,111.11
Mountain Monger (19,000/25)×40
=760×40
=304,00
Total Setup Time=
Tiny Bike 46,666.67+Adult Aero 71,111.11+Mountain Monger 30,400
Total Setup Time=148,177.78
Therefore the total setup time will be 148,177.78
b. Calculation to Determine the total operating time available
Total Operating Time=3×2,000×60
Total Operating Time=360,000 hours
Therefore the total operating time be 360,000 hours
c. Calculation to Determine the number of assembly lines
Number of assembly lines=(532,000+148,178)/360,000)+1
Number of assembly lines=(680,178/360,000)+1
Number of assembly lines=1.88938333+1
Number of assembly lines=2.89
Therefore the number of assembly lines will be 2.89
Assume Intervale Railway is considering investing in Pale Co. stock for three months. The investment will represent 5% of the voting stock of Pale Co. How would the investment be classified?a. Significant interest investmentb. Trading investmentc. Held-to-maturity investmentd. Controlling interest investment
Answer:
Option b (trading investment) is the correct choice.
Explanation:
Usually, the word 'trade investment' becomes interpreted as another expenditure undertaken by a corporation in certain company's securities or debentures towards supporting the initial company's transaction either business.Trading securities involve commodities or assets which are already intended by the administrators to start buying to generate money initially.Given $100,000 to invest, construct a value-weighted portfolio of the four stocks listed below.
Stock Price/Share ($) Number of Shares Outstanding (millions)
Golden Seas 14 1.43
Jacobs and Jacobs 24 1.44
MAG 43 29.52
PDJB 9 11.48
Required:
Write down the the portfolio weight.
Answer:
Given $100,000 to invest using a value-weighted method, the weights will be decided based on market share. The individual stocks will be weighted based on their proportion of the total market value.
Total Market value for all the shares
= ($14 * 1,430,000) + ( 24 * 1,440,000) + (43 * 29,520,000) + ( 9 * 11,480,000)
= 20,020,000 + 34,560,000 + 1,269,360,000 + 103,320,000
= $1,427,260,000
Golden Seas Weight
= (14 * 1,430,000) / 1,427,260,000
= 1.40%
Jacobs and Jacobs
= ( 24 * 1,440,000) / 1,427,260,000
= 2.42%
MAG
= (43 * 29,520,000) / 1,427,260,000
= 88.9%
PDJB
= ( 9 * 11,480,000) / 1,427,260,000
= 7.24%
If the demand curve for a life-saving medicine is perfectly inelastic, then a reduction in supply will cause the equilibrium price to:
Answer:
If the demand curve for a life-saving medicine is perfectly inelastic, then a reduction in supply will cause the equilibrium price to rise and the equilibrium quantity to stay the same.
Explanation:
Perfectly inelastic demand curve indicates the quantity demanded for the life-saving medicine remains the same or does not change in response to a change in price.
Since a part of the law of supply states that the lower the quantity supplied, the higher the price; a reduction in the supply of the life-saving medicine will increase its price.
The combining effect of the two above will lead to an increase in the equilibrium price while the equilibrium quantity will remain the same as it will not respond to the change in price.
The attached graph explains this more clearly. In the graph, the demand curve DD is used to represent the perfectly inelastic demand curve for the life-saving medicine. Therefore, the quantity remains at q no matter the changes, either increase or decrease, in price. Movement from the supply curve S1 to S2 indicates a reduction in supply of the life-saving medicine which causes an increase in the equilibrium price from Po to P1 while the equilibrium quantity stays at q.
This therefore shows that if the demand curve for a life-saving medicine is perfectly inelastic, then a reduction in supply will cause the equilibrium price to rise and the equilibrium quantity to stay the same.
Determine the formula, then enter the amounts to calculate the equivalent units of production for direct materials and conversion costs
Answer:
Direct materials cost per equivalent unit=$0.75
Conversion cost per equivalent unit=$0.55
Explanation:
Computation of the cost per equivalent unit of production for direct materials.
Using this formula
Direct materials cost per equivalent unit = Direct materials costs /Equivalent units of materials
Let plug in the formula
Direct materials cost per equivalent unit = $48,750/65,000
Direct materials cost per equivalent uni=$0.75
Computation of the cost per equivalent unit of production for conversion costs.
Using this formula
Conversion cost per equivalent unit =Conversion costs/Equivalent units of conversion costs
Let plug in the formula
Conversion cost per equivalent unit = $24,750/45,000
Conversion cost per equivalent unit=$0.55
Therefore the Direct materials cost per equivalent unit will be $0.75 while
Conversion cost per equivalent unit will be $0.55
The structure that organizations most commonly adopt to solve the control problems that result from producing many different kinds of products in many different locations for many different types of customers is the divisional structure.
a. True
b. False
Answer:
a. True
Explanation:
There are two commonly used organization structures by firms. The first one is known as the Functional Organization Structure. The other one is known as the Divisionalized Organisation Structure.
Functional Organization Structure - Activities of a similar type within the company are placed under the control of the appropriate department head. Examples of Functions are Production, Marketing and Finance.
Divisionalized Organisation Structure - Organisations are split up into divisions in accordance with products that are made. These divisions are separate Investment and Cost Centers and decision making is decentralized.
Terrell and hi parents live in a home near San Francisco. Terrell has a Visa card, which he is using to pay for car insurance today. Write a short paragraph telling ways Terrell and his family are making use of the U.S. monetary systems and policies.
Answer:
Terrell is using credit, which is a US regulated monetary system.
Explanation:
When you use credit (I also study finance along with investing) your borrowing money and paying it back later. This is a system that banks and government agencies make lots of money from, and they make money long term, while Terrell gets to pay his insurance in the short term. (I would advise against putting more than 10% of your credit limit of your credit card. Yes I know about credit cards lml) *edit- Credit is a form of small loans unless its secured or prepaid*
In order to sell restricted stock under the provisions of Rule 144, the stock must be:________
I think Options were omitted, which are
I. fully paid
II. either properly margined or fully paid
III. held for at least 6 months
IV. held for at least 1 year
Answer:I. fully paid
, III. held for at least 6 months
Explanation: Rule 144 enforced by the U.S. Securities and Exchange Commission (SEC) regulates the conditions securities (stock ) whether restricted, unregistered or controlled can be allowed for sale or resale
The conditions include
--That adequate public information about a company should be made known to investors
--That 1% of outstanding shares can be sold every thee months by an seller especially as an affiliate of a company
--The firm is cannot solicit buy orders or permitted to receive commissions in excess of their normal rates.
----A seller must file the 144 "Notice of Sale" with the SEC at or before the placement of the sell order
Above all the holding period of 6 months which starts from when the holder or buyer has fully paid for securities and this applies mainly to restricted securities.
You bought one of Great White Shark Repellant Co.’s 8 percent coupon bonds one year ago for $1,044. These bonds make annual payments and mature 13 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 6 percent. The bonds have a par value of $1,000.Required:If the inflation rate was 3.4 percent over the past year, what was your total real return on investment?
Answer:
17.4%
Explanation:
original purchase price 1 year ago = $1,044
current market price:
0.06 = {80 + [(1,000 - MV)/13]} / [(1,000 + MV)/2]
0.06 x [(1,000 + MV)/2] = 80 + [(1,000 - MV)/13]
0.06 x (500 + 0.5MV) = 80 + 76.92 - 0.0769MV
30 + 0.03MV = 156.92 - 0.0769MV
0.1069MV = 126.92
MV = 126.92 / 0.1069 = $1,187.28
total returns during the year = $80 (coupon) + ($1,187.28 - $1,044) = $223.28
nominal return on investment = $223.28 / $1,044 = 21.387%
real return on investment = [(1 + i) / (1 + inflation)] - 1 = [(1 + 0.21387) / (1 + 0.034)] - 1 = 1.174 - 1 = 0.174 = 17.4%
Assume that an investor owns 35% of an investee, and accounts for its investment using the equity ethod. At the beginning of the year, the Equity investment was reported on the investor's balance sheet at $360,000. During the year, the investeee reported net income of $110,000 and paid dividends of $20,000 to he investor. In addition, the investor sold inventory to the investee, realizing a gorss profit of $36,000 on the sale. At the end of the year, 15% of the inventory remained unsold by the investee.
a) How much equity income should the investor report for the year?
b) What is the balance of the Equity Investment at the end of the year?
c) Assume that the inventories are all sold in the following year, The investeee reports $160,000 of net income. How much equity income will the investor report for the following year?
Answer:
a. Investors shares in Net Income = Net Income * Share percentage
= $110,000 * 35%
= $38,500
Share of unrealized gain = Gross profit * Percentage of remaining inventory * Share percentage
= $36,000 * 15% * 35%
= $1,890
Hence, Equity Income = Investors share in Net income - Investor share in unrealized gain on ending inventory
= $38,500 - $1,890
= $38,610
b. Equity investment balance at year end = Equity Investment in the beginning during the time+ Equity income to be reported - Dividend paid
= $360,000 + $36,610 - $20,000
= $376,000
c. Investor share in Net Income = Net income * Share percentage
= $160,000 * 35%
= $56,000
Share of unrealized gain = Gross profit * Percentage of remaining inventory * Share percentage
= $36,000 * 15% * 35%
= $1,890
Hence, Equity Income = Investor share in Net Income + Investor share in unrealized gain on beginnging inventory
= $56,000 + $1,890
= $57,890