Answer:
$997.37
Explanation:
For computing the invoice price first we have to determine the accrued interest which is shown below:
Accrued interest is
= Par value × coupon rate × remaining months ÷ total months
= $1,000 × 6.11% × 4 months ÷ 12 months
= $20.37
Now
Invoice price is
= Clean price + Accrued interest
= $977 + $20.37
= $997.37
A bank offers a savings account with an annual interest rate of 0.8%, with interest compounded monthly. If you invest $4,000 in the account, how much will be in the account after 10 years? g
Answer:
FV= $8,913.91
Explanation:
Giving the following information:
Annual interest rate= 0.8% interest compounded monthly
Initial investment= $4,000
Number of periods= 10*12= 120
First, we need to calculate the monthly interest rate:
i= 0.08/12= 0.0067
Now, using the following formula, we can calculate the future value.
FV= PV*(1+i)^n
FV= 4,000*(1.0067^120)
FV= $8,913.91
which statement is true The trial balance is completed to ensure that debits and credits are equal in the General Ledger
Answer: a. The trial balance is completed to ensure that debits and credits are equal in the General Ledger.
Explanation:
The Trial balance is used to ensure that all totals on the accounts on the debit side are equal to all totals on the accounts on the credit side.
The account totals are each listed on the debit and credit sides of the trial balance and then added up. If the amounts do not tally, it suggests that there is an error in the entries that needs to be fixed.
Several line items and account titles are listed below. For each, indicate in which of the following financial statement(s) we would likely find the item or account: income statement (IS), balance sheet (BS), statement of stockholders' equity (SE), or statement of cash flows (SCF). a. Cash assetb. Expensesc. Non-cash assetsd. Contributed capitale. Cash outflow for capital expendituresf. Retained earningsg. Cash inflow for stock issuedh. Cash outflow for dividendsi. Net income
Answer:
a. Cash asset - Balance Sheet (BS) and Statement of Cash Flows (SCF)
Cash is recorded as an asset in the balance statement and derived from the statement of cash flows.
b. Expenses - Income statement (IS)
Expenses are deducted from revenue in the income statement to come up with Net Income.
c. Non-cash assets - Balance Sheet (BS)
Non-cash assets are recorded in the balance sheet as all assets are.
d. Contributed capital - Balance Sheet (BS) and Statement of stockholders' equity (SE)
Contributed capital from shareholders will appear in the equity section of the balance sheet and in the statement of equity.
e. Cash outflow for capital expenditures - Statement of Cash Flows (SCF)
This is a Cashflow statement entry under Investing activities.
f. Retained earnings - Balance Sheet (BS) and Statement of stockholders' equity (SE)
Retained earnings will go into the balance sheet and the statement of equity.
g. Cash inflow for stock issued - Statement of Cash Flows (SCF) and Statement of stockholders' equity (SE)
Cash inflow from stock issued will be recorded in the financing section of the cashflow statement as well as in the statement of stockholder equity.
h. Cash outflow for dividends - Statement of Cash Flows (SCF) and Statement of stockholders' equity (SE)
Cash outflow from dividends issued will be recorded in the financing section of the cashflow statement as well as in the statement of stockholder equity.
i. Net income - Income statement (IS), Statement of Cash Flows (SCF) and Statement of stockholders' equity (SE)
Net income is derived from the Income statement and used in the statement of cashflow as well as the equity statement.
Pronghorn Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets.
Projected Plan
Benefit Assets
Obligation Value
2013 2,000,000 $1,900,000
2014 2,400,000 2,500,000
2015 2,950,000 2,600,000
2016 3,600,000 3,000,000
The average remaining service life per employee in 2016 and 2017 is 10 years and in 2018 and 2019 is 12 years. The net gain or loss that occurred during each year is as follows: 2016, $288,400 loss; 2017, $92,700 loss; 2018, $11,330 loss; and 2019, $25,750 gain. (In working the solution, the gains and losses must be aggregated to arrive at year-end balances).
Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule.
Answer:
Year Minimum Amortization of Loss
2016 $0
2017 $3,840
2018 $ 6,855
2019 $1,811.25
Explanation:
Computation of the amount of net gain or loss amortized and charged to pension expense in each of the four years.
Corridor and Minimum Loss Amortization
Year 2016
Projected Benefit Obligation (a) $2,000,000
Plan Assets $1,900,000
10%Corridor 200,000
(10%×$2,000,000)
AccumulatedOCI (G/L) (a) $0
Minimum Amortization of loss $0
Year 2017
Projected Benefit Obligation (a) $2,400,00
PlanAssets $2,500,000
10%Corridor 250,000
(10%×$2,500,000)
AccumulatedOCI (G/L) (a) $288,400
Minimum Amortization of loss $3,840 (b)
Year 2018
Projected Benefit Obligation (a) $2,950,000
PlanAssets $2,600,000
10%Corridor 295,000
(10%×$2,950,000)
AccumulatedOCI (G/L) (a) $377,260(c)
Minimum Amortization of loss $6,855 (d)
Year 2019
Projected Benefit Obligation (a) $3,600,000
PlanAssets $3,000,000
10%Corridor 360,000
(10%×$3,600,000)
AccumulatedOCI (G/L) (a) $381,735(e)
Minimum Amortization of loss $1,811.25 (f)
Workings
A. As of the beginning of the year
B. ($288,400-$250,000)÷10 years
=$38,400÷10 years
=$3,840
C. ($288,400-$3,840+$92,700)
=$377,260
D.($377,260-$295,000)÷12 years
=$82,260÷12 years
=$6,855
E. $377,260-$6,855+$11,330
=$381,735
F. ($381,735-$360,000)÷12 years
=$21,735 ÷12 years
=$1,811.25
Hence,
Year Minimum Amortization of Loss
2016 $0
2017 $3,840
2018 $ 6,855
2019 $1,811.25
Corporation began with retained earnings of million. Revenues during the year were million, and expenses totaled million. declared dividends of million. What was the company's ending balance of retained earnings? To answer this question, prepare 's statement of retained earnings for the year ended December 31, , complete with its proper heading.
Complete Question:
Cell One Corporation began 2018 with retained earnings of $ 260 million. Revenues during the year were $ 520 million, and expenses totaled $ 340 million. Cell One declared dividends of $ 61 million. What was the company's ending balance of retained earnings? To answer this question, prepare Cell One's statement of retained earnings for the year ended December 31, 2018, complete with its proper heading.
Answer:
Cell Corporation
Statement of Retained Earnings for the year ended December 31, 2018:
$'million
Retained Earnings, Dec. 31, 2017 260
Net Income 180
Dividends (61)
Retained Earnings, Dec. 31, 2018 379
Explanation:
a) Data and Calculations:
Beginning Retained Earnings = $260 million
Revenues during the year were $ 520 million
Expenses totaled $ 340 million
Net Income (Revenue - Expenses) $180 million
Cell One declared dividends of $ 61 million
b) Cell Corporation's Retained Earnings for the year ended December 31, 2018 is the difference between the beginning retained earnings, net income, and the amount of dividend declared during the current year. This figure gives the amount of equity that has been retained for growing the business, which is an important internal source of corporate funding.
Each business day, on average, a company writes checks totaling $41,500 to pay its suppliers. The usual clearing time for the checks is six days. Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $52,500. The cash from the payments is available to the firm after four days.
Required:
a. Calculate the company's disbursement float, collection float, and net float (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
b. Calculate the company's disbursement float, collection float, and net float if the collected funds were available in two days instead of four (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g.. 32.).
Answer:
Explanation:
Given the following :
Average checks written per day =$41, 500
Clearing time = 6days
Average checks received per day = 52,500
Time available = 4 days
A.) Disbursement float :
Checks written * clearing time
$41,500 * 6days = $249,000
COLLECTION FLOAT :
Checks received * available time
$52,500 * 4 = $210, 000
NET FLOAT :
$(249,000 - 210,000) = $39,000
B.) if collected funds are available in two days :
Disbursement float :
Checks written * clearing time
$41,500 * 6days = $249,000
COLLECTION FLOAT :
Checks received * available time
$52,500 * 2 = $105,000
NET FLOAT :
$(249,000 - 105,000) = $144, 000
Visit California is responsible for promoting tourism in the state and recently ran a successful ad called "Average Joes" to share lifestyle attributes that are popular there. This an example of which type of advertising
Answer: reminder institutional advertising
Explanation:
From the question, we are informed that Visit California is responsible for promoting tourism in the state and recently ran a successful ad called "Average Joes" to share lifestyle attributes that are popular there.
This is an example of reminder institutional advertising. In reminder institutional advertising, an organization rather than promoting its product, seeks to buy goodwill.
What are other ethical concerns that Stilton may be facing?
Complete Question:
James Stilton is the chief executive officer (CEO) of RightLiving, Inc., a company that buys life insurance policies at a discount from terminally ill persons and sells the policies to investors. RightLiving pays the terminally ill patients a percentage of the future death benefit (usually 65%) and then sells the policies to investors for 85% of the value of the future benefit. The patients receive the cash to use for medical and other expenses, and the investors are "guaranteed" a positive return on their investment. The difference between the purchase and sale prices is RightLiving's profit.
Stilton is aware that some sick patients may obtain insurance policies through fraud (by not revealing their illness on the insurance application). An insurance company that discovers such fraud will cancel the policy and refuse to pay. Stilton believes that most of the policies he has purchased are legitimate, but he knows that some are probably not.
Requirement:
What are other ethical concerns that Stilton may be facing?
Answer with Explanation:
The ethical concerns of Stilton are as under:
Should he tell the investors about the fraud about the policies before making sales?What policies must be implemented so that the legitimate people can easily sell the policies and if not implemented it would not be fair for the RightLiving, Inc.Stilton will also be facing ethical concerns because the business wishes that the customer dies early so that they can benefit from increased deaths of policy holders.12.The metric that measures how well an enterprise is using customers to create short-term and long-term value is
Answer:
return on customer
Explanation:
Return on customer refers to basically measuring customer loyalty and how much revenue returning customers generate to your business. Return on customer focuses on your company's CRM activities and how they affect future customer behavior. Are your CRM activities resulting in more frequent sales? A company spends money on their CRM activities, and this is a way to quantify if they are doing it correctly and if they are yielding positive results.
Some people call this return on customer investment, since the ultimate goal is to determine if your investment in customer services is resulting in higher sales and higher profits.
The basis for designing an effective strategy for exporting begins with ________.
Answer:
Identifying how the company can potentially leverage its core competency into international sales.
Explain the most probable reason why the market price of these bonds has declined, even though Clear-Air‘s credit rating has improved.
Answer:
The information about old and current bond prices is missing, but the answer is probably the same with or without it. The reason why bonds' prices increase or decrease even if their credit rating remains the same is that market rates change. For example, if the market interest rates decrease, the price of bonds will increase. But on the other hand, if the market rates increase, the price of bonds will decrease. Market rates give are determined by averaging the returns of similar investments, and if an investor believes that he could earn more money somewhere else, he will sell the bonds and invest in that other security.
Which of the following statements is correct about the connection between cost centers and revenue?
A) Cost centers do not directly generate revenue from customers, and they have no impact on the customer experience.
B) Cost centers do not directly generate revenue from customers, but they may have an impact on revenue through customer satisfaction and overall quality.
C) Cost centers are the primary driver of revenue from customers.
D) Cost centers directly generate revenue from customers.
Answer:
B) Cost centers do not directly generate revenue from customers, but they may have an impact on revenue through customer satisfaction and overall quality.
Explanation:
Cost Centers are functions where costs are accumulated.
Cost centers do not generate revenue, but they do have impact on revenue since price determination lies on the cost if the company is to make profit.
Costs also determine the quality of the final product to customer and the satisfaction there-off - which are vital for driving revenue.
What was once considered the ideal engine for economic growth, but resulted in inflated public-sector bureaucracies and inefficient public companies
Answer: state ownership
Explanation:
State ownership was once considered the ideal engine for economic growth, but resulted in inflated public-sector bureaucracies and inefficient public companies.
In state owned enterprises, there are inefficiencies among the employees as they don't really strive to achieve their goals unlike those that works in private establishments who are more serious with their work.
Prescott expects to produce 225,000 basic models and 225,000 professional models. Compute the predetermined overhead allocation rates using activity-based costing. How much overhead is allocated to the basic model? To the professional model?Estimated overhead cost / Estimated qty of the allocation base= Predetermined OH Basic Model Professional ModelManufacturing overhead assembly 264800 195200Manufacturing overhead packaging 55200 227700Total manufacturing overhead cost 320000 422900
Answer and Explanation:
The Calculation of Predetermined OH Rate is shown below:
For Materials Handling, it is
= Estimated Overhead Costs ÷ Estimated allocated base Quantity
= $54,000 ÷ 96
= $562.50 per part
For Machine Setup, it is
= Estimated Overhead Costs ÷ Estimated allocated base Quantity
= $204,000 ÷ 60
= $3,400 per setup
For Insertion of Parts, it is
= Estimated Overhead Costs ÷ Estimated allocated base Quantity
= $486,000 ÷ 96
= $5,062.50 per part
Now
Calculation of allocated OH is
For Basic Model:
Allocated OH is
= $562.50 × 32 + $3,400 × 20 + $5,062.50 × 32
= $248,000
For Professional Model:
Allocated OH is
= $562.50 × 64 + $3,400 × 40 + $5,062.50 × 64
= $496,000
Which of the following statements are inconsistent with the efficient market hypothesis?a. The average annual return on stocks is greater than zero. b. Stocks that outperform the index in March always underperform it in April. c. Half of fund managers are able to beat their relevant index each year, before fees. d. Stocks that outperform the index in March always outperform it in April.
Answer:
b. Stocks that outperform the index in March always underperform it in April.
d. Stocks that outperform the index in March always outperform it in April.
Explanation:
The Efficient market hypothesis states that in an efficient market, all the available information in the market are reflected in the prices of the stocks being traded. As such, all stock are fairly priced.
Stocks that perform in a certain way in March and then in another way in April are violations of the hypothesis. This is because if indeed the market was efficient, the prices would adjust to reflect the different performances by month such that there would be no more fluctuations.
When businesses collect demographic information on where people live, what they buy, and how they spend their time, they are responding to the
Answer:
Social environment.
Explanation:
When businesses collect demographic information on where people live, what they buy, and how they spend their time, they are responding to the social environment. The social environment comprises of values, beliefs, practices, customs and behaviors of a group of people living together in a society and how their actions influence their surroundings or environment.
Demographics can be defined as the study and analysis of the characteristics of a population based on pre-defined factors such as education, race, income, sex or gender, and age.
Additionally, businesses gather, analyze and use demographic informations about people in the target market so as to have a competitive edge or advantage and to help build a strong relationship.
As the price level rises, firms respond in the short run to the change in the real wage rate by ______.
Answer:
A. increasing production
Explanation:
In case when the level of price increased, that the firm respond in the short run with respect to the change in the real wage rate would increase the production level as the level of price increased also it shows the direct relationship between the price level and the production level
Therefore in the given situation, the correct option is A. increasing production and hence, the same is to be considered
When presenting the preliminary design and design concept of an office space to a client, what information should be included?
Answer: B. Bubble diagrams, preliminary floor plan, and conceptual sketches
Explanation:
The options to the question are:
A. Preliminary floor plan, orthographic drawings, and rendered perspectives
B. Bubble diagrams, preliminary floor plan, and conceptual sketches
C. Dimensioned floor plan, orthographic drawings, and sample boards
D. Bubble diagrams, conceptual sketches, and sample boards.
When presenting the preliminary design and design concept of an office space to a client, the information that should be included are bubble diagrams, preliminary floor plan, and conceptual sketches. These will help the client on having an idea of what the design will be like.
The bubble diagram is simply a diagrammatic drawing that is made by interior designs and architects in order to plan for space and also organization.
essalyn Poulsen is an accountant for her firm, a medium-sized company with 125 employees. The firm has traditionally maintained the administration of its payroll. Her co-worker, the only other accountant in the firm, retires. Because of budget concerns, the firm chooses not to refill the position. What options does Jessalyn have regarding administration of the payroll?
Available Options Are:
A. Jessalyn could obtain a software program to fill the need
B. The company can outsource the task to any of a number of qualified, certified payroll preparation firms.
C. The company could opt to process payroll manually
Answer:
Option A and B are correct here.
Explanation:
Obtaining a software program to fill the need can help as using the software will lower the burden on the employees for managing the accounts department as the software prepares financial statements its self and all you have to do is enter transactions. So option A is correct.
The task can be outsourced to a firm that will manage the accounts of the company and will charge small fee.
By doing so the budget issue of the company would be resolved otherwise processing payroll department manually would cost more than these above two options.
Mike Watson wishes to have $ 120000 in seven years. If he can earn annual interest of 2%, how much must he invest today?
Answer:
The money that should be invested today is $104467.2214
Explanation:
We want to find the present value of a sum of money that earns an annual interest of 2%. Assuming that the interest rate provided is an annual compound interest rate of 2%. The formula for Future value of a sum is,
FV = PV * (1+i)^t
Where,
FV is the future valuePV is the present valuei is the interest ratet is the time120000 = PV * (1+0.02)^7
120000 = PV * 1.148685668
120000 / 1.148685668 = PV
PV = $104467.2214
A project manager has just been assigned to a new project and has been given the project charter. The FIRST thing the project manager must do is:
Answer:
Confirm that all the stakeholders have had input into the scope.
Explanation:
When assigned to a new project, the project manager may be tempted to start planning immediately. One may conclude that the first thing is planning. It will be wise and smart to understand the project charter before planning. Therefore, it is very important to " Confirm that all the stakeholders have had input into the scope." So, Option B is the correct answer.
In the current business climate, firms may want to consider evaluating performance more often because
Answer:
Changes in the business climate occurs rapidly
Explanation:
Performance evaluation is the process by which an employee is rated based on his performance on various key performance indices.
Feedback from performance evaluation serves as a way for the employee to improve of their job execution.
Businesses may want to consider more frequent evaluation not performance because this provides information they can use for future job assignments and compensation, and help in modifying employee behaviour to more effective work habits.
This is necessary to keep the business competitive in the changing business climate
"The person who acts as agent helping find customers for a new issue, but neither participates in selling responsibility nor liability in a new issue syndicate, is known as the:"
Answer: Selling Group Member
Explanation:
A syndicate is when investment banking firms with lead underwriters are responsible for the offer and sale of new issues to public.
A selling group member is the person who acts as agent helping find customers for a new issue, but neither participates in selling responsibility nor liability in a new issue syndicate.
The current exchange rate between U.S. Dollar and Euro is $1.355/.738. It means that:______a. one Euro can buy 0.738 Dollars.b. one Dollar can buy 0.738 Euros.c. one Euro can buy 1.355 Dollars.d. both one Dollar can buy 0.738 Euros and one Euro can buy 1.355 Dollars.
Answer:
b. one Dollar can buy 0.738 Euros
Explanation:
Given that
The Current Exchange rate is
= $1.335 ÷ 0.738 Euro
The 0.738 represents the indirect exchange rate now transform it into direct exchange rate
Direct Exchange rate is
= $1 ÷ 0.738 Euro
= $1.3550
Now bid price for purchase one euro is $1.335 and ask price to purchase one euro is $1.355
But the person could purchased at ask price only
Therefore the option b is correct
Which of the following is an ineffective practice during a negotiation process? Bargaining by focusing on positions rather than interests Starting the negotiation with a relationship-based tone rather than on an adversarial note Concentrating on problems rather than people when bargaining Exploring all possibilities for solutions rather than quickly focusing on one fixed solution
Answer: Bargaining by focusing on positions rather than interests
Explanation;
Positional bargaining is described as one of the most ineffective bargaining types there are. This is because it leads to myopia in the parties involved as all they will be interested in is to ensure that their position is secure.
Interest based negotiations however move past positions and instead of maintaining a position, think about why they have such a position and how they can still satisfy those interests with through other methods thereby enabling them to reach more effective compromises or deals.
If autonomous imports increase, then the aggregate expenditure curve shifts ________ and equilibrium real GDP ________.
Answer:
If autonomous imports increase, then the aggregate expenditure curve shifts downward and equilibrium real GDP decreases
Explanation:
When the autonomous imports takes place there will be more demand for the foreign good over the domestic goods. This is a fall in the demand for the domestic goods and this will result in lower production in the economy and also result a fall in the employment. So the ultimate result is the reduction of the aggregate demand in the economy.
Pollution is a negative externality and it causes harm to the society worth $8 per unit of coal production. In order to ensure socially efficient production, government should
Answer:
Impose a simple tax of $8 per unit of production on suppliers of coal.
Explanation:
Given that the question asks us to ensure socially efficient production, then according to social efficiency which means Marginal Social Benefit equals Marginal Social Cost.
Therefore, in this case, the Marginal Social Cost is $8 per unit of coal production, and in order to have equal Marginal Social Benefit of $8 as well, the government should "impose a simple tax of $8 per unit of production on suppliers of coal."
Time management and world view college success
Explanation:
As most students discover, college is not the same as high school. For many students, college is the first time they are “on their own” in an environment filled with opportunity. And while this can be exciting, you may find that social opportunities conflict with academic expectations. For example, a free day before an exam, if not wisely spent, can spell trouble for doing well on the exam. It is easy to fall behind when there are so many choices and freedoms.
One of the main goals of a college education is learning how to learn. In this chapter we zoom in on learning how to skillfully manage your time. To be successful in college, it’s imperative to be able to effectively manage your time.
In the following Alleyoop Advice video, Alleyoop (Angel Aquino) discusses what many students discover about college: there is a lot of free time—and just as many challenges to balance free time with study time
Assume that the banking system has total reserves of $100 billion. Assume also that required reserves are 10 percent of checking deposits and that banks hold no excess reserves and households hold no currency. Calculate the money multiplier and money supply for this banking system.
Answer:
The money multiplier and money supply for this banking system is 10 and $1,000 billion respectively
Explanation:
The computation of the money multiplier and the money supply is shown below:
As we know that
Money multiplier is
= 1 ÷ required reserve ratio
= 1 ÷ 0.10
= 10
So, the money supply is
= Total Reserves × Money Multiplier
= $100 billion × 10
= $1,000 billion
hence, the money multiplier and money supply for this banking system is 10 and $1,000 billion respectively
A written representation from a client’s management that, among other matters, acknowledges responsibility for the fair presentation of financial statements, should normally be signed by the
Answer:
The answer is Chief Executive Officer and and the Chief Financial Officer
Explanation:
As part of the requirements for audit process, the external auditor will obtain from the management a written representation for the financial statements being presented to the external auditor. The management is responsible for the preparation of Financial statement and the external auditor expresses their opinions on it.
To show accountability, The Chief Executive Officer and the Chief Financial Officer both sign on it.