The financial information provided for Frank Corporation indicates several selected transactions and account balances for the year 2020. Here is a breakdown of the transactions and balances:
1. Purchased investment securities for $6,400 cash.
2. Borrowed $17,800 on a two-year, 8 percent interest-bearing note.
3. Sold machinery for its carrying amount, received $13,100 in cash.
4. Purchased machinery for $52,800: paid $10,400 in cash and signed a four-year note payable to the dealer for $42,400.
5. Declared and paid a cash dividend of $11,400 on December 31, 2020.
Selected account balances at December 31, 2019, and December 31, 2020, are as follows:
Account Balances (in dollars):
2020 2019
Cash 85,800 22,400
Accounts receivable 18,400 12,700
Inventory 53,400 62,800
Accounts payable 8,400 12,800
Accrued wages payable 1,500 2,400
Income taxes payable 6,400 3,700
The income statement for the year ended December 31, 2020, is as follows:
Sales revenue: $428,000
Cost of sales: $282,000
Gross profit: $146,000
Expenses:
- Salaries and wages: $52,400
- Depreciation: $10,600
- Rent (no accruals): $7,200
The provided financial information for Frank Corporation includes selected transactions, account balances, and an income statement for the year 2020. The transactions highlight the purchase of investment securities, borrowing on a note, sale of machinery, purchase of machinery, and the declaration and payment of a cash dividend.
The account balances at the end of 2019 and 2020 demonstrate the changes in cash, accounts receivable, inventory, accounts payable, accrued wages payable, and income taxes payable. It is worth noting that one-fourth of the sales and one-third of the purchases were made on credit.
The income statement reveals the sales revenue, cost of sales, and gross profit. Additionally, the expenses include salaries and wages, depreciation, and rent (with no accruals).
Overall, these financial details provide insights into the selected transactions, account balances, and financial performance of Frank Corporation in the year 2020.
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Do
you know any company or organization fit the characteristics of any
of the four types in OCAI? Please describe it.
One company that fits the characteristics of Clan Culture in OCAI is Googgle.
Googgle is known for promoting a collaborative and employee-focused environment, where the focus is on employee engagement and empowerment.
Their approach is to treat their employees as family members and encourage them to take on new challenges and tasks to help them grow both professionally and personally.
Employees at Googgle are given a high degree of autonomy, which allows them to work independently and make decisions on their own, which in turn leads to high levels of motivation and productivity.
Googgle is also known for its innovative culture and risk-taking attitude, which aligns with the entrepreneurial and innovative traits that are typically associated with Clan Culture.
In conclusion, Googgle fits the characteristics of Clan Culture in OCAI as it is employee-focused, collaborative, and promotes innovation and risk-taking.
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On August 3, Let Loose sold 2,700 of the reacquired shares at $28 per share. On November 14, Let Loose sold the remaining shares at $24 per share. Journalize the transactions of May 27, August 3, and November 14.
Let Loose reacquired 4,000 shares of its $1 par value common stock on May 27, which had been originally issued for $40 per share. On August 3, it sold 2,700 shares at $28 per share and sold the remaining shares on November 14 for $24 per share.
Reacquisition of company shares can be done for various reasons, such as controlling ownership and increasing earnings per share. The entries for the three transactions of Let Loose show the accounting of the reacquisition and sale of its own common stock. The first entry on May 27 reflects the reacquisition of the 4,000 shares at their original issue price of $40 per share, which amounts to a total of $160,000. To record this transaction, the Treasury Stock account is debited for the cost of the shares repurchased while Cash is credited for the amount paid.
The second entry on August 3 records the sale of 2,700 shares from the reacquired shares at a price of $28 per share, which amounts to $75,600. For this transaction, Cash is debited for the amount received while Treasury Stock is debited for the cost of the shares sold. Additional Paid-In Capital—Treasury Stock account is credited for the difference between the cost and the selling price of the shares sold. The account Gain on Sale of Treasury Stock is also credited for the gain realized from the sale.
The last entry on November 14 shows the sale of the remaining 1,300 shares of treasury stock at $24 per share, totaling $31,200. To record this transaction, Cash is debited for the amount received, while Treasury Stock is debited for the cost of the shares sold. The Additional Paid-In Capital—Treasury Stock account is credited for the difference between the cost and the selling price of the shares sold. The account Loss on Sale of Treasury Stock is credited for the loss incurred from the sale.
Reacquisition of company shares can be done for various reasons, such as controlling ownership and increasing earnings per share. The entries for the three transactions of Let Loose show the accounting of the reacquisition and sale of its own common stock. The first entry on May 27 reflects the reacquisition of the 4,000 shares at their original issue price of $40 per share, which amounts to a total of $160,000. The second entry on August 3 records the sale of 2,700 shares from the reacquired shares at a price of $28 per share, which amounts to $75,600. The last entry on November 14 shows the sale of the remaining 1,300 shares of treasury stock at $24 per share, totaling $31,200.
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On the basis of the following data, what is the estimated cost of the merchandise inventory on May 31 using the retail method
Cost Retail
May 1 Merchandise Inventory $29,257 $48,762
May 1-31 Purchases 46,208 67,338
May 1:31 Sales 101,000
o Os 535535
o 9,815
o 9,360
o 15,100
The estimated cost of the merchandise inventory on May 31 using the retail method is $9,815.
Calculate the cost-to-retail ratio and apply it to the retail value of the remaining inventory.
Cost-to-Retail Ratio = Cost / Retail = ($29,257 + $46,208) / ($48,762 + $67,338) = $75,465 / $116,100 = 0.65
Calculate the estimated cost of the merchandise inventory on May 31:
Estimated Cost = Cost-to-Retail Ratio × Retail Value of Remaining Inventory
Estimated Cost = 0.65 × (Beginning Retail - Sales) = 0.65 × ($48,762 + $67,338 - $101,000)
Estimated Cost = 0.65 × $15,100 = $9,815
Therefore, the estimated cost of the merchandise inventory on May 31 using the retail method is $9,815.
The correct answer is B. $9,815.
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Which of the following is most likely to be a motivation to over-report net income? a) To minimize tax consequences. b) Meet earnings expectations. c) Negotiate labor union contracts.
The most likely to be a motivation of following to over-report net income is b) Meet earnings expectations.
Among the options provided, the most likely motivation to over-report net income is to meet earnings expectations. Earnings expectations are the anticipated level of profitability that investors, analysts, and stakeholders have for a company. Companies may have a strong incentive to over-report net income if they believe that falling short of these expectations could result in negative consequences, such as a decrease in stock price or loss of investor confidence. By inflating net income, companies can create the perception of better financial performance, meeting or even exceeding the anticipated earnings expectations.
The correct answer is option b) Meet earnings expectations. While minimizing tax consequences and negotiating labor union contracts may be motivations for financial manipulation in some cases, meeting earnings expectations is often a primary driver for over-reporting net income, as it directly affects a company's reputation, stock value, and investor perception.
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Effect of Financing on Earnings Per Share
BSF Co., which produces and sells skiing equipment, is financed
as follows:
Bonds payable, 10% (issued at face amount)
$1,850,000
Preferred 2% stock, $20
The impact of financing on earnings per share depends on the financing instrument used by the company. Bonds payable and preferred stock have a negative impact on earnings per share as they increase interest expense and reduce net income.
Earnings Per Share (EPS) is the portion of a company's profit that is allocated to each share of common stock outstanding. EPS serves as an indicator of a company's profitability. Financing has a significant impact on the company's earnings per share. Changes in the capital structure of a company affect earnings per share by affecting the number of shares outstanding, the amount of interest expense, and the amount of dividend expense. BSF Co. is financed through bonds payable and preferred stock. The impact of this financing method on earnings per share can be assessed by analyzing the impact of these financing instruments on the number of shares outstanding, interest expense, and dividend expense. Number of Shares Outstanding: The number of shares outstanding is affected by the issuance of new bonds or preferred stock. When bonds are issued, they do not increase the number of shares outstanding. However, the payment of interest on the bonds reduces the company's net income, which in turn, reduces earnings per share. The payment of dividends on preferred stock also reduces the company's net income, which in turn reduces earnings per share. Thus, both bonds and preferred stock have a negative impact on earnings per share. Interest Expense: Interest expense reduces net income and, therefore, reduces earnings per share. Bonds payable have a higher interest expense than preferred stock dividends. As a result, bonds payable have a greater impact on earnings per share than preferred stock dividends. Dividend Expense: The payment of dividends on preferred stock reduces net income and, therefore, reduces earnings per share. Preferred stock dividends have a lower expense than bonds payable interest. As a result, preferred stock dividends have less of an impact on earnings per share than bonds payable interest.In conclusion, the impact of financing on earnings per share depends on the financing instrument used by the company. Bonds payable and preferred stock have a negative impact on earnings per share as they increase interest expense and reduce net income.The probable question may be:
Effect of Financing on Earnings Per Share
BSF Co., which produces and sells skiing equipment, is financed as follows:
Bonds payable, 10% (issued at face amount) $1,850,000
Preferred 2% stock, $20 par 1,850,000
Common stock, $25 par 1,850,000
Income tax is estimated at 60% of income.
Round your answers to the nearest cent.
a. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $721,500.
$fill in the blank 1 per share
b. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $906,500.
$fill in the blank 2 per share
c. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $1,091,500.
$fill in the blank 3 per share
By the Month Inc. sold 19,500 annual magazine subscriptions for $42 during December 20Y4. These new subscribers will receive monthly issues, beginning in January 20Y5. By the Month Inc. issued a $154,800, 180–day, 5% note payable on December 1, 20Y4. On March 31, 20Y5, By the Month Inc. had accounts payable of $22,000 and accrued wages payable of $6,700.
Prepare the Current Liabilities section of the balance sheet for By the Month Inc. on March 31, 20Y5. Do not round intermediate calculations and round your final answers to the nearest dollar. (Assume 360 days in a year.)
By the Month Inc.
Current Liabilities Section of the Balance Sheet
March 31, 20Y5
Current liabilities:
Accounts payable Federal income taxes expense Federal income taxes payable Sales Subscription revenue receivable Accounts payable
$Accounts payable
Accrued wages payable Federal income taxes expense Federal income taxes payable Sales Subscription revenue receivable Accrued wages payable
Accrued wages payable
Accrued interest payable Federal income taxes expense Federal income taxes payable Sales Subscription revenue receivable Accrued interest payable
Accrued interest payable
Federal income taxes expense, Federal income taxes payable, Notes payable, Sales, Subscription revenue receivable, Notes payable
Notes payable
Accounts payable, Advances on magazine subscriptions, Federal income taxes expense, Sales, Subscription revenue receivable, Advances on magazine subscriptions
Advances on magazine subscriptions
Total current liabilities $fill in the blank 11
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Suppose 'Car Today' is the only firm selling cars in a small, rural town in Victoria. Assume that people in the town do not want to leave the town to buy cars. Also assume that there is a constant marginal cost for 'Car Today'. What type of market structure do you think 'Car Today' belongs to? Why? Explain in 100 words or less.
The type of market structure that Car Today firm belongs to is the monopoly market structure. This market structure can be described as a market where a single firm dominates the entire market by producing and selling a good or service for which no other close substitute exists. Thus, it has a significant amount of market power that allows it to set the price for the good or service it produces.
In the case of Car Today, the company is the only firm selling cars in the town. The people of the town do not want to leave the town to buy cars, and there is a constant marginal cost for Car Today. This implies that the firm has no close competitors and can set the price for its cars as it deems fit. Therefore, Car Today can maximize its profit by setting a higher price for its cars.
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Corporations prefer bonds over preferred stock for financing their operations because:
a. Preferred Stocks require a dividend,
b. Bond interest rates change with the economy while stock dividends remain constant,
c. The after-tax cost of debt is less than the cost of preferred stock,
d. None of the above.
Corporations prefer bonds over preferred stock for financing their operations because the after-tax cost of debt is less than the cost of preferred stock. The correct option is C.
The after-tax cost of debt is generally lower than the cost of preferred stock for corporations. Interest payments made on bonds are tax-deductible, which reduces the overall cost of debt for the issuing corporation.
On the other hand, preferred stock requires regular dividend payments, which are not tax-deductible, increasing the cost for the corporation. Therefore, from a cost perspective, corporations often find issuing bonds more advantageous than issuing preferred stock. It correctly states that the after-tax cost of debt is generally lower than the cost of preferred stock, providing a valid reason for corporations' preference for bonds over preferred stock.
The correct option is C.
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1. We can describe resources that generate a temporary, yet a competitive advantage as resources that are,
A) valuable, rare and costly to imitate.
B) valuable and rare but not costly to imitate.
C) valuable but neither rare nor costly to imitate.
D) valuable and either rare or costly to imitate.
The correct option to the sentence "We can describe resources that generate a temporary, yet a competitive advantage as resources that are," is:
D) valuable and either rare or costly to imitate.
A competitive advantage refers to any advantage that a firm has over its competitors. It allows a company to produce goods or services more effectively or at a lower cost than its competitors. Competitive advantages can come from various sources, including unique resources, patents, technologies, and branding.
Resources are the fundamental building blocks of a company, and they can be used to gain a competitive advantage. Resources that are valuable, rare, and difficult to imitate have the potential to create sustainable competitive advantages, according to resource-based theory. These types of resources are described as competitive resources.
According to the resource-based theory, valuable resources have the ability to increase the effectiveness and efficiency of a firm's operations. Rare resources are uncommon and difficult to come by. Costly-to-imitate resources are assets that cannot be replicated easily by rivals. All three of these factors must be present to create a sustainable competitive advantage.
Therefore, resources that generate a temporary but competitive advantage are valuable and either rare or costly to imitate. Option D is the correct answer.
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1. Name three (3) "Hillbilly" songs that crossed-over to the Pop Charts between 1938-41?
2. Name three (3) INDIES (Independent Recording Companies) during the 1950s.
3. Name three (3) major recording labels during the 1950s. (NOT MERCURY)
4. Name the four (4) sections of a Big band.
Name three (3) cities that had an independent recording company.
During 1938-1941, three "Hillbilly" songs that crossed over to the Pop Charts were "New San Antonio Rose", "Chattanooga Choo Choo", and "Tumbling Tumbleweeds".
2. Notable INDIES (Independent Recording Companies) in the 1950s included Sun Records (Memphis), Chess Records (Chicago), and Specialty Records (Los Angeles).
3. Major recording labels of the 1950s, excluding Mercury, were Columbia Records, RCA Victor, and Capitol Records.
4. The four sections of a Big band are Saxophones, Trumpets, Trombones, and Rhythm (piano, bass, guitar, drums).
5. Three cities with independent recording companies were Memphis (Sun Records), Chicago (Chess Records), and Detroit (Motown Records).
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firms suffering losses in the short run should always continue to operate since they must pay their fixed costs. true false
The given statement "Firms suffering losses in the short run should always continue to operate since they must pay their fixed costs." is FALSE.
In the short run, firms that are experiencing losses must assess their situation and make strategic decisions based on their financial condition and prospects for improvement.
While it is true that fixed costs need to be paid regardless of a firm's financial performance, continuing to operate solely to cover fixed costs may not always be the best course of action.
When a firm is consistently incurring losses, it is crucial to evaluate whether the losses are temporary or indicative of a more systemic issue. Continuing to operate without addressing the underlying problems can lead to further losses and financial distress.
In some cases, firms may choose to temporarily suspend or curtail operations, restructure their operations, seek cost-cutting measures, or explore alternative strategies to improve profitability.
These decisions are based on a careful analysis of the firm's financial position, market conditions, competitive landscape, and the feasibility of turning the business around.
Ultimately, the decision to continue or cease operations should be based on a comprehensive assessment of the firm's long-term viability, prospects for recovery, and the potential impact on stakeholders such as employees, creditors, and shareholders.
Simply continuing to operate solely to cover fixed costs without addressing the underlying issues may not be a sustainable or prudent approach in the long run.
So, the given statement is false.
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Moving to another question will save this response. Question 9 When a company declares and distrbutes stock dividends, it should be reported on financing activities section of the statement of cash fl
When a company declares and distributes stock dividends, it should be reported in the financing activities section of the statement of cash flows.
The statement of cash flows is a financial statement that outlines the inflows and outflows of cash for an organization during a specific timeframe. It is categorized into three sections: operating activities, investing activities, and financing activities. The financing activities section specifically focuses on cash flows related to financing, such as the issuance or repurchase of stocks and bonds, as well as dividend payments. Hence, when a company distributes stock dividends, which involves a transfer of value to shareholders, it is considered a financing activity and should be disclosed in the financing activities section of the statement of cash flows.In conclusion, when a company declares and distributes stock dividends, it is classified as a financing activity and should be reported in the financing activities section of the statement of cash flows.
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Question 10 (10 points) Do leaders and managers need to have a balance of both emotional intelligence (EI) and intelligent quotient (IQ) or do leaders just need El and managers just need IQ? Explain y
Leaders and managers are responsible for leading and managing their organizations, teams, and employees, and both need to possess emotional intelligence (EI) and intelligent quotient (IQ) for optimal performance.
EI is crucial for leaders, while IQ is essential for managers, but both are essential for optimal performance. Leaders need to be emotionally intelligent to inspire and motivate their teams, promote creativity and innovation, and build trust and commitment within the organization.
They need to be empathetic, self-aware, and able to handle their emotions and those of their team members, especially in high-pressure situations. In contrast, managers need to be intelligent and capable of understanding complex problems, analyzing data, and making sound decisions based on logic and evidence. They need to be detail-oriented, organized, and good at planning and executing strategies. However, managers also need to have emotional intelligence, particularly when dealing with people.
They need to be able to communicate effectively, build relationships, and understand the emotional needs of their employees to create a positive work environment and achieve their goals. In conclusion, leaders and managers need to have a balance of both EI and IQ to achieve success in their roles and achieve their organizational goals.
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Thank you for your help!
Handy Home sells windows (40% of sales) and doors (60% of sales). The selling price of each window is $300 and of each door is $700. The variable cost of each window is $175 and of each door is $450.
The Handy Home sells two types of products windows and doors. The windows account for 40% of total sales while the doors account for 60%. Each product has a selling price and a variable cost associated with it. The selling price of each window is $300, while each door sells for $700. On the other hand, the variable cost of each window is $175, and for each door, it's $450.
To compute the contribution margin per unit for the two products, we can use the following formula:Contribution Margin per Unit = Selling Price per Unit - Variable Cost per UnitCM window = $300 - $175 = $125CM door = $700 - $450 = $250To calculate the contribution margin ratio, we use the following formula:Contribution Margin Ratio = (Contribution Margin per Unit / Selling Price per Unit) * 100CMR window = ($125 / $300) * 100 = 41.67%CMR door = ($250 / $700) * 100 = 35.71%
The contribution margin ratio helps us determine what percentage of sales revenue is available to cover the fixed costs of the company. In this case, we know that Handy Home sells more doors than windows, but windows have a higher contribution margin ratio. This means that for each window sold, Handy Home can contribute more money towards fixed costs than each door sold.
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On October 1, 2021, Concord Company places a new asset into service. The cost of the asset is $113000 with an estimated 5-year life and $38000 salvage value at the end of its useful life. What is the depreciation expense for 2021 if Concord Company uses the straight-line method of depreciation? O $22600 O $3750 O $5650 $11300
The depreciation expense for 2021, using the straight-line method of depreciation, would be $3,750.
To calculate the depreciation expense for 2021 using the straight-line method, we need to determine the depreciable amount and divide it by the asset's useful life.
The depreciable amount is the cost of the asset minus the salvage value:
Depreciable amount = Cost of the asset - Salvage value
Depreciable amount = $113,000 - $38,000
Depreciable amount = $75,000
Next, we divide the depreciable amount by the asset's useful life in years to find the annual depreciation expense:
Annual depreciation expense = Depreciable amount / Useful life
Annual depreciation expense = $75,000 / 5 years
Annual depreciation expense = $15,000
However, we need to calculate the depreciation expense for 2021, which is the year the asset was placed into service. Since it was placed into service on October 1, 2021, we only need to consider a portion of the year.
To calculate the depreciation expense for 2021, we can use a proration based on the number of months the asset was in service. In this case, it would be 3 months (October, November, December) out of 12 months.
Depreciation expense for 2021 = Annual depreciation expense * (Number of months in service / Total months in a year)
Depreciation expense for 2021 = $15,000 * (3 / 12)
Depreciation expense for 2021 = $15,000 * 0.25
Depreciation expense for 2021 = $3,750
Therefore, the depreciation expense for 2021, using the straight-line method of depreciation, would be $3,750.
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In the market for oil, the current price per barrel is $75, and the current demand is 600 barrels per day. It is predicted that price of oil will increase to $100 by the end the next 6 months. If the price elasticity of demand for oil is known to be 0.8, what is your best prediction of the quantity of oil that will be demanded at the end of the 6-month period? Show work for full credit.
Elasticity of demandElasticity of demand measures the degree to which demand changes when the price changes. When elasticity is less than 1, the demand for a good is inelastic (that is, the percentage change in quantity demanded is less than the percentage change in price).
When elasticity is greater than 1, the demand for a good is elastic (that is, the percentage change in quantity demanded is greater than the percentage change in price). When elasticity is equal to 1, the demand for a good is unit elastic (that is, the percentage change in quantity demanded is equal to the percentage change in price).Let's use the formula for price elasticity of demand to calculate the demand for oil that will be demanded at the end of the 6-month period.
Let's substitute the known values into the formula for price elasticity of demand:Price elasticity of demand = percentage change in quantity demanded / percentage change in priceThe price increased from $75 to $100. So the percentage change in price is:Percentage change in price = ((New Price - Old Price) / Old Price) * 100%Percentage change in price = (($100 - $75) / $75) * 100%Percentage change in price = (25 / 75) * 100%Percentage change in price = 33.3%.
Now we can use the price elasticity of demand formula to calculate the percentage change in quantity demanded:0.8 = percentage change in quantity demanded / 33.3%Solve for the percentage change in quantity demanded:Percentage change in quantity demanded = 0.8 * 33.3%Percentage change in quantity demanded = 26.64%To find the predicted quantity of oil demanded, we can use this formula:New Quantity Demanded = Old Quantity Demanded * (1 + percentage change in quantity demanded).
Let's substitute the known values into this formula:Old Quantity Demanded = 600New Quantity Demanded = 600 * (1 + 26.64%)New Quantity Demanded = 600 * 1.2664New Quantity Demanded = 759.84The best prediction of the quantity of oil that will be demanded at the end of the 6-month period is approximately 759.84 barrels per day.
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On January 1st, 2009, xyz Company purchased equipment for $360,000. The estimated useful life of this asset was 4 years, and the salvage value was $60,000.
a) Prepare a schedule showing depreciation for the life of the asset, assuming that the company used the straight-line method of depreciation.
b) Prepare a schedule showing depreciation for the life of the asset, assuming that the company used the double-declining balance method of depreciation.
Answer in asper Canadian format
Straight-Line Method of Depreciation: In the straight-line method of depreciation, the same amount of depreciation is charged to the asset for each year of its useful life.
The following schedule shows the annual depreciation expense calculation using the straight-line method for this asset. Using the Straight-line method of depreciation,
Annual Depreciation = ($360,000 – $60,000) / 4= $75,000 per year
The depreciation expense for each of the four years is:$75,000 for 2009, 2010, 2011, and 2012b) Double-Declining Balance Method of Depreciation:
The double-declining balance method of depreciation is an accelerated depreciation technique. It charges a higher depreciation expense in the first years of the asset's life than in the later years. The depreciation expense decreases each year but not by the same amount as it does in straight-line depreciation. The formula for the annual depreciation expense under the double-declining balance method is as follows:
Double-Declining Balance Depreciation = (2 / Useful life)
The following schedule shows the annual depreciation expense calculation using the double-declining balance method for this asset.
The Asset's cost = $360,000 and its useful life is 4 years.
Useful life = 4 years;
Salvage value = $60,000Rate of depreciation = (2/4) = 0.5 or 50%Year 1 calculation:
Depreciation = 50% * $360,000 = $180,000.00Year 2 Calculation:
Depreciation = 50% * ($360,000 - $180,000) = $90,000.00Year 3 Calculation:
Depreciation = 50% * ($360,000 - $270,000) = $45,000.00Year 4 Calculation:
Depreciation = 50% * ($360,000 - $315,000) = $22,500.00
Therefore, the depreciation schedule using the double-declining balance method of depreciation is as follows:
YEAR DEPRECIATION2009 $180,000.002010 $90,000.002011 $45,000.002012 $22,500.00
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Accounts Receivable and Allowances for Doubtful Accounts Janelle Co Inc. generated $5.5 million in credit sales during the current year. Based on past experience, it is estimated that 1.5% of all credit sales will prove to be uncollectible. The balance of the allowance for doubtful accounts at December 31 is $8,900 credit. Accounts receivable at December 31 consists of the following: Amount Account Classification Outstanding 1-30 days $850,000 31-60 days 175,000 61-90 days 120,000 91-120 days 50,000 Over 120 days 20,000 Time left 0:52:31 Requirement 1: of credit sales KOD Requirement 1: Calculate and record the journal entry for bad debt expense for the current year using the percentage of credit sales method. Time left C Requirement 2: Janelle Co. has decided to write-off all the accounts that were over 120 days old. Record the journal entry. Requirement 3: Requirement 3: What is the balance for Accounts Receivable as shown on the December 31 statement of financial position? Show your supporting calculations in the workspace below. Requirement 4: One of the customers whose $5,000 account was written off, paid Janelle Co. in full. Record the journal entry. WORKSPACE
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Vicksburg LLC has provided the following contribution format income statement for the sales of 15,000 units:
Sales 930,000 $
Variable costs 765,000
Contribution margin 165,000
Fixed costs 74,000
Net operating income $ 91,000
Answer the following two independent questions related to the data above for Vicksburg LLC:
1) Estimate how many units must be sold to achieve a target profit of $120,000.
2) If the number of units sold increases by 3,000 units, sales price increases $4 per unit, variable costs increase $3 per unit and fixed costs decrease $15,000, what would be the resulting net operating income?
1) Vicksburg LLC must sell 4,000 units to achieve a target profit of $120,000.
2) The resulting net operating income would increase by $21,000.
How to calculate units needed for target profit?1) To estimate how many units must be sold to achieve a target profit of $120,000, we can use the contribution margin per unit.
Contribution margin per unit = Contribution margin / Units sold
Contribution margin per unit = $165,000 / 15,000 units = $11 per unit
Target profit = Fixed costs + Target profit
$120,000 = $74,000 + (Units to be sold * $11)
Solving for Units to be sold:
Units to be sold = ($120,000 - $74,000) / $11 = 4,000 units
Therefore, Vicksburg LLC must sell 4,000 units to achieve a target profit of $120,000.
How would changes in sales, costs, and units affect net operating income?To calculate the resulting net operating income with the given changes in units sold, sales price, variable costs, and fixed costs:
Increase in units sold: 3,000 units
Increase in sales price per unit: $4
Increase in variable costs per unit: $3
Decrease in fixed costs: $15,000
Change in net operating income = (Increase in units sold * Contribution margin per unit) + (Increase in sales price per unit - Increase in variable costs per unit) * Increase in units sold - Decrease in fixed costs
Change in net operating income = (3,000 * $11) + ($4 - $3) * 3,000 - $15,000
Change in net operating income = $33,000 + $3,000 - $15,000
Change in net operating income = $21,000
therefore,The resulting net operating income would increase by $21,000.
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Question 232 pts
Which literary technique is being used in the quotation
below?
From "Daddy" by Sylvia Plath:
There’s a stake in your fat black heart
And the villagers never liked you. (lines 76
The literary technique being used in the quotation is metaphor.
The literary technique being used in the quotation is metaphor. In these lines from Sylvia Plath's poem "Daddy," the speaker is using metaphorical language to convey intense emotions and portray a complex relationship.
The metaphorical language is evident in the line "There's a stake in your fat black heart." Here, the speaker compares the subject's heart to a stake, which symbolizes both a sharp object that can cause pain and a symbol of punishment or retribution. The use of "fat black heart" intensifies the imagery, suggesting a heart that is heavy, dark, and filled with negative qualities.
The metaphor continues with the line "And the villagers never liked you." Here, the speaker extends the metaphor by likening the subject to a disliked or ostracized figure in a village. This implies that the subject is seen as an outsider, someone who is rejected or disliked by others.
By employing this metaphor, Plath conveys a deep sense of resentment, anger, and disdain towards the subject, who is often interpreted to represent the speaker's father. The metaphorical language adds depth and complexity to the speaker's emotional response, creating vivid and evocative imagery that helps convey the intensity of their feelings.
Overall, the use of metaphor in these lines from "Daddy" serves to heighten the emotional impact of the poem and contribute to its overall theme of complex relationships, power dynamics, and the speaker's struggle for independence and self-expression.
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what is the double entry system?
Answer: Double-entry bookkeeping, in accounting, is a system of book keeping where every entry to an account requires a corresponding and opposite entry to a different account. The double-entry system has two equal and corresponding sides known as debit and credit. Double entry, a fundamental concept underlying present-day bookkeeping and accounting, states that every financial transaction has equal and opposite effects in at least two different accounts. It is used to satisfy the accounting equation,
2 0 points eBook Hint Print References Prepare journal entries to record each of the following four separate issuances of stock. 1. A corporation issued 9,000 shares of $20 par value common stock for
1.Credit: Additional Paid-in Capital $36,000
2.Credit: Common Stock (Excess of Stated Value over Par Value) $51,500
3.Credit: Common Stock $56,000
4.Credit: Additional Paid-in Capital $56,000
Let's prepare the journal entries to record each of the four separate issuances of stock:
1.Issuance of 9,000 shares of $20 par value common stock for $216,000 cash:
Date: [Date of issuance]
Debit: Cash $216,000
Credit: Common Stock $180,000
Credit: Additional Paid-in Capital $36,000
2.Issuance of 4,500 shares of no-par common stock to promoters in exchange for their efforts, estimated to be worth $56,000. The stock has a $1 per share stated value:
Date: [Date of issuance]
Debit: Promoters' Efforts $56,000
Credit: Common Stock (Stated Value) $4,500
Credit: Common Stock (Excess of Stated Value over Par Value) $51,500
3.Issuance of 4,500 shares of no-par common stock to promoters in exchange for their efforts, estimated to be worth $56,000. The stock has no stated value:
Date: [Date of issuance]
Debit: Promoters' Efforts $56,000
Credit: Common Stock $56,000
4.Issuance of 2,250 shares of $100 par value preferred stock for $281,000 cash:
Date: [Date of issuance]
Debit: Cash $281,000
Credit: Preferred Stock $225,000
Credit: Additional Paid-in Capital $56,000
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The complete question is:
Prepare journal entries to record each of the following four separate issuances of stock.
1. A corporation issued 9,000 shares of $20 par value common stock for $216,000 cash.
2. A corporation issued 4,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $56,000. The stock has a $1 per share stated value.
3. A corporation issued 4,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth$56,000. The stock has no stated value.
4. A corporation issued 2,250 shares of $100 par value preferred stock for $281,000 cash.
Buchanan Corp. forecasts the following payoffs from a project:
Outcome Probability of Outcome Assumptions
$1,000 50% pessimistic
$3,000 60% moderately successful
$6,000 50% optimistic
What is the expected value of the outcomes?
A) $3,000
B) $3,333
C) $5,300
D) The forecast is incorrect and must be modified before finding the expected value.
The resulting expected value is $5,300.
Option c is correct .
To calculate the expected value of an outcome, multiply the probabilities corresponding to each outcome and sum them up.
Given:
result:
50% chance of $1,000 (pessimistic)
result:
60% chance of $3,000 (moderate success)
result:
50% chance of $6,000 (optimistic)
Expected value = ($1,000 x 0.5) + ($3,000 x 0.6) + ($6,000 x 0.5)
Expected value = $500 + $1,800 + $3,000
Expected Value = $5,300
In this case, there are three possible outcomes, each with its own probability. Multiplying each outcome by its probability and summing it gives us an expected value of $5,300. This means that we can expect an average return of $5,300 from the project given the given probabilities.
Hence, Option c is correct .
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assume that an economy described by the solow model is in a steady state with output and capital growing at 3 percent and labor growing at 1 percent. the capital share is 0.3. the growth-accounting equation indicates that the contributions to growth of capital, labor, and total factor productivity are:
The growth-accounting equation indicates that the contributions to growth of capital, labor, and total factor productivity are δY/Y = αδK/K + (1 - α)δL/L + δA/A.
The Solow growth model is used to model economic growth by describing the relationship between capital accumulation, labor, and output. The model was developed in 1956 by Robert Solow, who won the Nobel Prize in Economics for his work.In a steady state, output (Y), capital (K), and labor (L) grow at the same rate (g).
In this situation, the growth rate of technology (A) equals zero.
The growth-accounting equation indicates that the contributions to growth of capital, labor, and total factor productivity are:
δY/Y = αδK/K + (1 - α)δL/L + δA/A
where δY/Y represents the percentage change in output,
δK/K represents the percentage change in capital,
δL/L represents the percentage change in labor,
and δA/A represents the percentage change in total factor productivity.
The capital share, α, in the equation is the share of income going to capital.
In this problem, α is given as 0.3.
Given that the economy is in a steady state with output and capital growing at 3 percent and labor growing at 1 percent, we can calculate the contribution of each factor:
δY/Y = 0.3(0.03) + (1 - 0.3)(0.01) + 0
= 0.024 + 0.007
= 0.031 (or 3.1%)
The contribution of capital is 2.4%, the contribution of labor is 0.7%, and the contribution of total factor productivity is zero since A is not growing.
Therefore, the contributions to growth of capital, labor, and total factor productivity are 2.4%, 0.7%, and 0%, respectively. The growth rate of output is 3.1%.In summary, the growth-accounting equation can be used to decompose the sources of economic growth.
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The VAT and NHIL Inclurige marked price of 1 standing fan is GHD 10.00 it the VAT and the MHIL are charged at rates of 12.1% and 2.5% respectively. Hind 1. The cost of the fan VAT and MHIL exclusive it. The Nuttil charges 1 The VAT charged The VAT and NHIL inclusive marked price of a standing fan is GHG 50.00. IF the VAT and NHIL are charged at a rate of 12½/2% and 22%. respectively find "The cost of the fan VAT and NHIL exclusive "The NITIL charged Wilhe VAT charged
Given: The VAT and NHIL inclusive marked price of 1 standing fan is GH₵10.00, and the VAT and the NHIL are charged at rates of 12.1% and 2.5% respectively.
The cost of the fan VAT and NHIL exclusive:For the fan, the VAT and NHIL exclusive marked price (MP) = cost price (CP)VAT and NHIL exclusive marked price (MP) of the fan = GH₵10.00/(1 + 0.121 + 0.025) = GH₵7.59Thus, the cost of the fan VAT and NHIL exclusive is GH₵7.59.
The Nuttil charged:VAT charged:Given, the VAT rate = 12.5/2% = 12.5/2/100 = 0.0625 and the NHIL rate = 22%.The NHIL charged will be 22/100 x 50 = GH₵11.The VAT charged will be 0.0625 x 50 = GH₵3.13.
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The distribution of house prices is skewed to the right because most houses cost a modest amount but a few cost a very large amount. If you take a random sample of 1000 houses, can you reasonably expect the distribution of the house prices to be approximately normal? Explain your answer.
No, it would not be reasonable to expect the distribution of house prices in a random sample of 1000 houses to be approximately normal if the overall distribution of house prices is skewed to the right.
The normal distribution, also known as the bell curve, assumes symmetry and equal probabilities of observations occurring on both sides of the mean. In a skewed distribution where most houses have modest prices but a few have very large prices, the data is likely to have a long tail on the right side. This indicates the presence of outliers or extreme values that can significantly impact the distribution. The normal distribution does not account for such extreme values or long tails.
Instead, a skewed distribution is better represented by a different probability distribution, such as the skewed right distribution, which acknowledges and accommodates the asymmetry and the presence of outliers. Therefore, it would be more appropriate to expect the distribution of house prices in a random sample of 1000 houses to be skewed to the right, similar to the overall distribution of house prices in the population.
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If consumer purchases of a good are highly sensitive to the price of the good, economists say the demand for the good is relatively: inelastic. elastic. robust. inverse.
If consumer purchases of a good are highly sensitive to the price of the good, economists say the demand for the good is relatively elastic.
The demand for a product is considered elastic if the percentage change in quantity demanded is greater than the percentage change in price. This indicates that when the price of the product goes down, consumers are more willing to purchase the product. If the price of the product increases, consumers are less willing to purchase the product.
Elastic demand is typically seen with non-essential items or luxury items. For example, the demand for designer handbags or luxury cars may be elastic because consumers can easily substitute them with less expensive items. In contrast, the demand for necessities like food and medical care is typically inelastic because people are willing to pay whatever price is necessary to obtain them.
In summary, if consumer purchases of a good are highly sensitive to the price of the good, economists say the demand for the good is relatively elastic.
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Ehsan contributed a building at $22,500 and a land valued at $60,000. The journal entry to record this transaction for the partnership is OA Ehsan, Capital. 80,100 Building 22,500 Land. 66,000 OB. Ehs
The given journal entry to record Ehsan's contribution of a building valued at $522,500 and land valued at $560,000 to the partnership seems to contain some errors.
Here's the correct journal entry based on the provided information:
Debit Building for $522,500Debit Land for $560,000Credit Ehsan, Capital for $1,082,500In this entry, we debit the Building and Land accounts to reflect the increase in the partnership's assets due to Ehsan's contribution. The total value of the assets contributed is $1,082,500. To balance the entry, we credit Ehsan's Capital account by the same amount, indicating his increased ownership stake in the partnership. The given options do not accurately record the transaction, as they contain incorrect values and additional accounts that are not necessary for this specific transaction.For such more question on journal entry
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A 4-step binomial tree is used to price options. On that tree, the value of the underlying asset can go down by 4.65% and time steps have 17 months. What is the value of the annualized volatility, assuming the standard Cox, Ross, and Rubinstein (1979) approach was used to calibrate this tree? Express your final result in percentages [%] per annum, rounded to the first decimal digit. Enter one number only without unit or percentage [%] sign, using the dott.) to separate the decimals. Answer:
The value of the annualized volatility, assuming the standard Cox, Ross, and Rubinstein (1979) approach, is 48.5%.
What is the annualized volatility value using the Cox, Ross, and Rubinstein approach?The Cox, Ross, and Rubinstein (CRR) approach is a commonly used method to calculate the annualized volatility of an underlying asset in option pricing using a binomial tree. In this case, a 4-step binomial tree is used, and the underlying asset's value can go down by 4.65% per time step. Since the time steps in this scenario are 17 months, we need to calculate the annualized volatility.
To calculate the annualized volatility using the CRR approach, we can use the formula:
Volatility = (1 - Downward Movement / Upward Movement) / √Time Steps
In this case, the downward movement is 4.65% (0.0465) and the time steps are 17 months. We can assume equal upward and downward movements, so the upward movement is -1 / (1 - Downward Movement). Plugging in the values into the formula, we can calculate the volatility.
Volatility = (1 - (0.0465 / - 0.0465)) / √17 = 0.485 or 48.5%
Therefore, the value of the annualized volatility, assuming the standard CRR approach, is 16.7% per annum, rounded to the first decimal digit.
The Cox, Ross, and Rubinstein (CRR) approach is a popular method for option pricing using a binomial tree. It provides a discrete approximation of the continuous Black-Scholes-Merton model and allows for the estimation of option prices and related parameters such as volatility. The CRR approach involves constructing a binomial tree, where each node represents the possible price of the underlying asset at a specific time. By calibrating the tree to match the option's known market price, the implied volatility can be derived. This approach assumes that the underlying asset's price can move up or down by a fixed factor at each time step. The annualized volatility, calculated using the CRR approach, provides a measure of the asset's price variability over time and is crucial for option pricing and risk management.
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The incentive to offshore from a developed to a developing country the activities of a good's production that require low skills is (a) Lower wages for unskilled workers in the developing country (b) Lower relative wages for unskilled workers in the developing country (c) Lower transportation costs in the developing country (d) All answers are correct
The incentive to offshore from a developed to a developing country the activities of a good's production that require low skills is the lower relative wages for unskilled workers in the developing country.
As a result, offshoring is often used to move jobs from developed to developing countries.The incentive to offshore from a developed to a developing country the activities of a good's production that require low skills is Lower relative wages for unskilled workers in the developing country.
When a company is seeking to outsource to reduce production costs, one of the most important factors is labor costs. The low-wage rates in developing countries attract companies that require low-skill labor to the region. The lower relative wages in developing countries may also serve as an incentive for companies to relocate.
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What is the negative impact of mass tourism in Venice?
Answer:
Explanation:
The negative impacts of mass tourism in Venice include overcrowding, environmental degradation, cultural erosion, and economic imbalances. The large influx of tourists strains the city's infrastructure and public services, leading to overcrowding in popular areas and a decrease in the quality of life for local residents. The constant flow of visitors also contributes to environmental problems such as water pollution and erosion of the city's foundations.
Additionally, the focus on catering to tourists can result in a loss of authentic local culture and traditions, as well as a rise in prices that may exclude locals from certain areas or businesses. Furthermore, the economic benefits of tourism often disproportionately benefit large corporations and international businesses, leading to economic imbalances within the local community.
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