Answer:
Character
Explanation: If you have borrowed money, you have most likely heard your lender discuss the Five C’s of Credit. Recently, many lenders have indicated that character of the borrower is the most important of the Five C’s, particularly in tough economic times. -https://www.farmprogress.com/most-important-c-credit
The "Five C's of Credit" that is most important in determining someone's creditworthiness is Character. This is further explained below.
What is Character?Generally, Character is simply defined as the mental and moral characteristics that distinguish a person
In conclusion, lenders of money, look to character history to determine the potency Five C's of Credit.
Read more about Character
https://brainly.com/question/3756907
#SPJ6
What is true about the relationship between household consumption and disposable income?
Answer:
Both have positive relationship with each other
Explanation:
In simple words, Consumption rises in lockstep with current revenue and that the higher the marginal inclination to purchase, the much more present expenditure is influenced by current disposable revenue . The consumption-smoothing impact is higher when the marginal willingness to consume is low.
Thus, from the above we can conclude that both have non linear positive relation.
Please research employment opportunities in the accounting field and provide insight into the relevance and usefulness of Excel in relation to the job title/description. Please explain how a potential candidate could leverage the functionality of Excel to make their every-day tasks efficient, effective and accurate.
Answer:
Following are the responses to the given question:
Explanation:
The progress throughout the financial sector does not take a confined path. One can move to more responsible roles when you're on the broad route to changing industries, receiving certificates, or switching disciplines — without even being derailed. Select from the range of staff inside the broad fields of public accountancy. You could be a lead financial official or a partner in a company of qualified checksum. A height of your career.
Although the accounting foundation is founded upon consistent accounting practices, the accountants can apply this theory in many various ways.
Employment accounts governmental and non-profit:
Accounting FundJobs of IRSPublic Accounting Jobs:
Estimated CostForensic Accountable Enrolled AgentImmobilien AssessorAccountant TaxationFiscal ProsecutorsPreparing taxJobs in private accounting:
Clerk of AccountingPayable/Deputy Clerk AccountsSystem Accounting SpecialistActuarial accountant/accountant insuranceBookkeepingAnalyst for the budgetAccountant of capitalFinancial Controller/Control OfficeAccountant costsMeasurement of environmental accountant/sustainabilityAccountant payrollFiscal Services:
Specialist in Business ValuationCertificated Financial PlannerFiscal AnalystAdvisor on taxesAccounts only include the cash that can be represented financially. Some individuals call accountancy "the language of business," as well as its objective is to allow accountancy users to make better choices
This included many tasks performed by the CPAs for its clients:
Asset records collection and maintenanceAssess banking transactions and make key management for optimum financial practicesReviewing accounting system and financial accounting to verify that they are effective and conform with approved accounting standards and proceduresTax documents and related tasksAt the beginning of June, Circuit Country has a balance in inventory of $2,050. The following transactions occur during the month of June.
June 2 Purchase radios on account from Radio World for $1,750, terms 2/15, n/45.
June 4 Pay cash for freight charges related to the June 2 purchase from Radio World, $210. June 8 Return defective radios to Radio World and receive credit, $200.
June 10 Pay Radio World in full. June 11 Sell radios to customers on account, $3,100, that had a cost of $2,250.
June 18 Receive payment on account from customers, $2,100.
June 20 Purchase radios on account from Sound Unlimited for $2,850, terms 2/10, n/30.
June 23 Sell radios to customers for cash, $4,350, that had a cost of $2,650.
June 26 Return damaged radios to Sound Unlimited and receive credit of $500.
June 28 Pay Sound Unlimited in full.
Required:
a. Assuming that Circuit Country uses a perpetual inventory system, record transactions using the following account titles: Cash, Accounts Receivable, Inventory, Accounts Payable, Sales, and Cost of Goods Sold.
b. Prepare the top section of the multiple-step income statement through gross profit for the month of June.
Answer:
Circuit Country
a. Journal Entries:
June 2: Debit Inventory $1,750
Credit Accounts payable (Radio World) $1,750
To record the purchase of goods, terms 2/15, n/45.
June 4: Debit Freight-in $210
Credit Cash $210
To record the payment for freight.
June 8: Debit Accounts payable (Radio World) $200
Credit Inventory $200
To record the return of goods.
June 10: Debit Accounts payable (Radio World) $1,550
Credit Cash $1,519
Credit Cash Discounts $31
To record payment on account, including discounts.
June 11: Debit Accounts receivable $3,100
Credit Sales Revenue $3,100
To record the sale of goods on account.
June 11: Debit Cost of goods sold $2,250
Credit Inventory $2,250
To record the cost of goods sold.
June 18: Debit Cash $2,100
Credit Accounts receivable $2,100
To record cash received on account.
June 20: Debit Inventory $2,850
Credit Accounts payable (Sound Unlimited) $2,850
To record the purchase of goods on credit, terms 2/10, n/30.
June 23: Debit Cash $4,350
Credit Sales Revenue $4,350
To record the sale of goods for cash.
June 23: Debit Cost of goods sold $2,650
Credit Inventory $2,650
To record the cost of goods sold.
June 26: Debit Accounts payable(Sound Unlimited) $500
Credit Inventory $500
To record the return of goods.
June 28: Debit Accounts payable(Sound Unlimited) $2,350
Credit Cash $2,303
Credit Cash Discounts $47
To record payment on account, including discounts.
b. Income Statement for the month ended June 30:
Sales Revenue $7,450
Cost of goods sold 5,032
Gross profit $2,418
Explanation:
a) Data and Analysis:
June 1: Beginning inventory $2,050
June 2: Inventory $1,750 Accounts payable (Radio World) $1,750, terms 2/15, n/45.
June 4: Freight-in $210 Cash $210
June 8: Accounts payable (Radio World) $200 Inventory $200
June 10: Accounts payable (Radio World) $1,550 Cash $1,519 Cash Discounts $31
June 11: Accounts receivable $3,100 Sales Revenue $3,100
June 11: Cost of goods sold $2,250 Inventory $2,250
June 18: Cash $2,100 Accounts receivable $2,100
June 20: Inventory $2,850 Accounts payable (Sound Unlimited) $2,850 terms 2/10, n/30.
June 23: Cash $4,350 Sales Revenue $4,350
June 23: Cost of goods sold $2,650 Inventory $2,650
June 26: Accounts payable(Sound Unlimited) $500 Inventory $500
June 28: Accounts payable(Sound Unlimited) $2,350 Cash $2,303 Cash Discounts $47
Cash
Date Account Titles Debit Credit
June 4: Freight-in $210
June 10: Accounts payable (Radio World) 1,519
June 18: Accounts receivable $2,100
June 23: Sales Revenue 4,350
June 28: Accounts payable(Sound Unlimited) 2,303
Accounts Receivable
Date Account Titles Debit Credit
June 11: Sales Revenue $3,100
June 18: Cash $2,100
Inventory
Date Account Titles Debit Credit
June 1 Beginning balance $2,050
June 2 Accounts payable
(Radio World) 1,750
June 8: Accounts payable (Radio World) $200
June 11: Cost of goods sold 2,250
June 20: Accounts payable
(Sound Unlimited) 2,850
June 23: Cost of goods sold 2,650
June 26: Accounts payable
(Sound Unlimited) 500
Accounts Payable
Date Account Titles Debit Credit
June 2: Inventory $1,750
June 8: Inventory $200
June 10: Cash 1,519
Cash Discounts 31
June 20: Inventory 2,850
June 26: Inventory 500
June 28: Cash 2,303
Cash Discounts 47
Sales
Date Account Titles Debit Credit
June 11: Accounts receivable $3,100
June 23: Cash 4,350
June 30: Income Summary $7,450
Cost of Goods Sold
Date Account Titles Debit Credit
June 4: Freight-in $210
June 10: Cash discounts $31
June 11: Inventory 2,250
June 23: Inventory 2,650
June 28: Cash discounts 47
June 30: Income Summary $5,032
Explain why a finance manager need to understand accounting information even if the firm has a trained accountant on its staff.
Answer:
Following are the solution to the given question:
Explanation:
A financial manager should understand adequate information on accountancy. This is irrespective of whether the business does have a trained counterpart.
Accountancy is a necessary input into the function of financial management. Throughout the extent, as accounts were important input in financial decision-making is closely connected with both the interaction between finance and financial.
Accrual analysis provides information mostly on the company's operations. The result of the accountancy is accounts like the income statement, the income statement, and the position financial adjustments report. The information in such statements helps money advisors assess a company's previous growth and career projections.
The purpose of accountancy in the choice process is to gather and provide financial data on the institution's past, present, and future activities.
During the economic transaction, the finance department uses these data. This is not possible for money advisors to collect data or to make choices from accounts. And an investor's primary focus is to collect data and display it, whereas budgeting, control, and judgment are the main job of a financial manager. In a sense, financial management starts at the end of accountancy.
Sheridan Corporation had 2020 net income of $798,000. During 2020, Sheridan paid a dividend of $2 per share on 33,200 shares of preferred stock. During 2020, Sheridan had outstanding 236,000 shares of common stock.
Required:
Compute Sheridan's 2020 earnings per share.
Answer:
$3.10 per share
Explanation:
Total preferred dividend = 33,200 shares * $2
Total preferred dividend = $66,400
Earning per share = (Net income - Preferred dividend) / Number of common stock outstanding
Earning per share = ($798,000 - $66,400) / 236,000 shares
Earning per share = $731,600 / 236,000 shares
Earning per share = $3.10 per share
You are the owner of a smoothie shop in California. Afterhearing a podcast about customer relationship management (CRM), youdecide to gather more information regarding customer behavior inyour store to better understand the relationships that existbetween your business and your customers. CRM is a comprehensivebusiness model for increasing revenues and profits by focusing oncustomers.Customer Lifetime Value (CLV) is particularly importantwhen it comes to CRM and is often considered one of the mostcrucial metrics associated with a CRM system. Collecting data oncustomers and their relationships with a company (and commonlystoring it within a CRM system) helps make it possible to calculateCLV, or the total amount a customer will spend throughout theirrelationship with a company.
After a review and analysis of your customer data you are ableto determine the following information:
Average Value of Sales per Year per Customer: $120
Average Customer Retention Cost: $75
Customer Acquisition-oriented Marketing Expenses per Month:$1,000
Average Customer Retention Rate: 80%
You acquire an average of 25 new customers a month.
Use the following equations to help determine the CLV:
Average Customer Acquisition Cost = CustomerAcquisition-oriented Marketing Expenses per Month/Number of NewCustomers Acquired per Month
Customer Lifetime Value = [1/(1-Average Customer Retention Rate)] x(Average Value of Sales per Year per Customer)- (Average customerAcquisition Cost + Average Customer Retention Cost)
This activity is important because marketing managers need tounderstand and know how to calculate customer lifetime value as apart of customer relationship management. Knowledge of CLV caninform a number of critical marketing decisions related to suchfactors as the development of strategies designed to aid in theacquisition, nurturing, and retention of customers.
The goal of this exercise is to test your understanding of CLVby considering this example.
You must (1) complete the spreadsheet and (2) answer thequestions that follow to receive full credit for this exercise.
Answer:
Average Customer Retention rate = 80%
Average Value of Sales per year per customer = $120
Average customer acquisition cost = Customer acquisition oriented market expenses per month/
number of new customers acquired per month
[tex]=\frac{1000}{25} = 40[/tex]
Average customer retention cost = $75
CLV =[1/(1- Average customer retention rate)] x (average value of sales per year per customer)-(average customer acquisition cost + average customer retention cost)
[tex]= [1/(1-0.8)] x 120-(40+75)[/tex]
=$485
A) Average customer retention rate =90%
B) Average value of sales per year per customer = $125
C) Average customer acquisition cost =$60
D) Average customer retention cost =$100
CLV = [1/(1- Average customer retention rate)] x (average value of sales per year per customer)-(average customer acquisition cost + average customer retention cost)
[tex]= [1/(1-0.9)] x 125 - (60+100)[/tex]
E) Customer Lifetime Value = 1090
Explanation:
Here are the spreadsheets.
A firm that purchases electricity from the local utility for $350,000 per year is considering installing a steam generator at a cost of $270,000. The cost of operating this generator would be $270,000 per year, and the generator will last for five years. If the firm buys the generator, it does not need to purchase any electricity from the local utility. The cost of capital is 13%. For the local utility option, consider five years of electricity purchases. For the generator option, assume immediate installation, with purchase and operating costs in the current year and operating costs continuing for the next four years. Assume payments under both options at the start of each year (i.e., immediate, one year from now,..., four years from now). What is the net present value of the more attractive choice
Answer:
Option 1:
Purchasing Electricity from the utility:
NPV = -$1391065.
Option 2:
NPV of more attractive alternative = NPV of purchasing generator = -$1343107.
Explanation:
Option 1:
Purchasing Electricity from the utility:
Purchase cost per year = $350000
[tex]NPV = -350000 * [PVAF (5-1, 0.13) + 1]\\= -350000 * [2.974471 + 1]\\\\= -1391064.85[/tex]
NPV = -$1391065.
Option 2:
Purchasing generator:
Initial Cash Flow:
Purchase Cost of generator -$270000
Operating Cash Flow -$270000
= -$540000
Recurring Cash Flows:
Operating Cost -$270000
NPV:
Year Cash Flow PVF (13%) PV of Cash Flow
0 -$540000 1 -$540000
1-4 -$270000 2.974471 -$803107
-$1343107
NPV = -$1343107
Since NPV in the case of purchasing a generator is more than that of purchasing electricity,
NPV of more attractive alternative = NPV of purchasing generator = -$1343107.
Complete each statement with the term that correctly defines each platform strategy advantage.
Platform businesses tend to frequently ____________ pipeline businesses.
Platforms scale more efficiently than pipelines by eliminating __________
Platform businesses _________ digital technology can grow much faster
Answer:
Note See full and organized question in the attached picture below
1. Platform businesses tend to frequently outperform pipeline businesses.
2. Platforms scale more efficiently than pipelines by eliminating gatekeepers.
3. Platform businesses leveraging digital technology can grow much faster.
4. Platforms unlock new sources of value creation and supply.
5. Feedback loops from consumers to the producers allow platforms to fine-tune their offerings and to benefit from big data analytics.
While on a trip to South Africa, Madison was impressed with the colorful woven outdoor placemats, floor mats, chair cushions, and umbrellas that local artisans were weaving. Upon returning to the United States, she was confident that U.S. consumers would be as intrigued by these accessories as she was. Madison decided to explore the possibility of starting an import business to bring these products to the United States. Which statement seems to be good advice for Madison?
Answer: A) Learn from others who import goods from abroad, and particular from Africa.
Explanation:
Nothing beats experience when it comes to acquiring knowledge so if Madison wants to acquire the knowledge necessary to bring the goods she saw in South Africa to the U.S., she should go to people who have experience in the matter and find out what they know.
This will giver her insight on the amount of money she needs to startup with as well as what business status she should have. They will also give her insight into cost cutting measures to enable her import with more efficiency and make more profit.
The diameter of a brand of tennis balls is approximately normally distributed, with a mean of 2.56
inches and a standard deviation of 0.04
inch. A random sample of 11
tennis balls is selected. Complete parts (a) through (d) below.
Answer:
sample mean = 2.63 inches
sample standard deviation = \frac{standard \hspace{0.15cm} deviation}{\sqrt{n} } = \frac{0.03}{\sqrt{9} } = \frac{0.03}{3} = 0.01
n
standarddeviation
=
9
0.03
=
3
0.03
=0.01
b) P(X < 2.61) = 0.0228
c.) P(2.62 < X < 2.64) = 0.6827
d.) Therefore 0.06 = P(2.6292 < X < 2.6307)
Step-by-step explanation:
i) the diameter of a brand of tennis balls is approximately normally distributed.
ii) mean = 2.63 inches
iii) standard deviation = 0.03 inches
iv) random sample of 9 tennis balls
v) sample mean = 2.63 inches
vi) sample standard deviation = \frac{standard \hspace{0.15cm} deviation}{\sqrt{n} } = \frac{0.03}{\sqrt{9} } = \frac{0.03}{3} = 0.01
n
standarddeviation
=
9
0.03
=
3
0.03
=0.01
vii) the sample mean is less than 2.61 inches = P(X < 2.61) = 0.0228
viii)the probability that the sample mean is between 2.62 and 2.64 inches
P(2.62 < X < 2.64) = 0.6827
ix) The probability is 6-% that the sample mean will be between what two values symmetrically distributed around the population measure
Therefore 0.06 = P(2.6292 < X < 2.6307)
Turner Enterprises is analyzing a project that is expected to have annual cash flows of $77,400, $21,300 and -$6,200 for Years 1 to 3, respectively. The initial cash outlay is $84,900 and the discount rate is 11 percent. What is the modified IRR
Answer:
8.26%
Explanation:
Calculation to determine the modified IRR
First step is to calculate the Modified Year 2 cash flow
Modified Year 2 cash flow = $21,300 + (-$6,200)/1.11
Modified Year 2 cash flow= $15,714.41
Now let determine the Modified IRR
Modified IRR:$0 = -$84,900 + $77,400/(1 + IRR) + $15,714.41/(1+ IRR)^2
Modified IRR= 8.26%
Therefore the modified IRR is 8.26%
An increase in the demand for lobster due to changes in consumer tastes, accompanied by a decrease in the supply of lobster as a result bad weather reducing the number of fishermen trapping lobster, will result in:
Answer:
an increase in price and an indeterminate increase in equilibrium quantity
Explanation:
Increase in demand leads to an outward shift of the demand curve. As a result equilibrium price and quantity increases
A decrease in supply leads to an inward shift of the supply curve
Why are Americans dependent of what is produced in other countries
Answer:
Climate, resources, cheap labor and outsourcing of manufacturing jobs.
Explanation:
As a developed country, labor cost are higher in the US in comparison to most of world. US consumers expect best price for their money. So many manufacturers have moved overseas to keep labor cost low and make a better profit while satisfying their consumers. Then mass ship items to keep cost low. Also some produced can only be grown in climates that the US doesn't have. There are some resources the US have that others countries. The mineral gold is much more plentiful in Africa but is widely used in electronics. The US is a prime buyer of electronics.
Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C splits two-for-one in the last period.
P0 Q0 P1 Q1 P2 Q2
A 99 100 104 100 104 100
B 59 200 54 200 54 200
C 118 20 128 200 64 400
Calculate the first-period rates of return on the following indexes of the three stocks:
a. A market value–weighted index
b. An equally weighted index.
Answer:
a. Rate of return = 94.51%
b. Rate of return = 1.68%
Explanation:
a. A market value–weighted index
Total market value at time 0 = Market value of Stock A at time 0 + Market value of Stock B at time 0 + Market value of Stock C at time 0 = ($99 * 100) + ($59 * 200) + ($118 * 20) = $24,060
Total market value at time 1 = Market value of Stock A at time 1 + Market value of Stock B at time 1 + Market value of Stock C at time 1 = ($104 * 100) + ($54 * 200) + ($128 * 200) = $46,800
Rate of return = (Total market value at time 1 / Total market value at time 0) – 1 = ($46,800 / $24,060) - 1 = 0.9451, or 94.51%
b. An equally weighted index
Return on a Stock for the first period = (P1 / P0) - 1 …………. (1)
Therefore, we have:
Return on Stock A for the first period = ($104 / $99) - 1 = 0.0505, or 5.05%
Return on Stock B for the first period = ($54 / $59) - 1 = - 0.0847, or - 8.47%
Return on Stock C for the first period = ($128 / $118) - 1 = 0.0847, or 8.47%
Therefore, we have:
Return of return = (Return on Stock A for the first period + Return on Stock B for the first period + Return on Stock C for the first period) / 3 = (5.05% - 8.47% + 8.47%) / 3 = 1.68%
JRE2 Inc. entered into a contract to install a pipeline for a fixed price of $2,245,000. JRE2 recognizes revenue upon contract completion.
Cost incurred Estimated Cost to Complete
2020 $ 256,000 $ 1,580,000
2021 1,630,000 533,000
2022 480,000 0
In 2022, JRE2 would report gross profit (loss) of:
Answer:
Explanation:
In 2022,
Contract Price 2,245,000
Less: Cost incurred
2020 (256,000)
2021 (1,580,000)
2022 (630,000)
Gross Margin (145,000)
Reasons why South African post office taking private courier companies to court(10)
Answer:
Not sure how but could be for antitrust and breaching anti-competition laws. Unlikely cause could be for defamation
Suppose the annual inflation rate in the US is expected to be 2.5 %, while it is expected to be 18.00 % in Mexico. The current spot rate (on 1/1/X0) for the Mexican Peso (MXN) is $0.1000. If the spot rate of MXN turns out to be $0.085 on 1/1/X1, the net cash flow of a US importer from Mexico will: Group of answer choices Increase Decrease
Answer:
Increase
Explanation:
In putting the question into a better perspective let us assume that the US importer buys goods from Mexico every year to the Tune of 1,000,000 Mexican Pesos.
The expected exchange rate on 1/1/X1=$0.1000*(1+2.5%)/(1+18%)
The expected exchange rate on 1/1/X1=$0.086864407
Amount paid based on expected exchange rate=1,000,000*$0.086864407
Amount paid based on expected exchange rate=$86,864.41
Amount paid based on actual exchange=1,000,000*$0.085
Amount paid based on actual exchange=$85,000
The above means that the US importer paid a lesser amount($85000) than it should have paid, hence, its net cash flow would increase due to a reduction in payment
Under absorption costing , a company had the following per unit costs when 10,000 units were produced Direct labor Direct materials Variable overhead Total variable cost Fixed overhead ( / Total product cost per unit $ 2.80 3.80 4.80 11.40 6.00 $ 17.40 Required : 1. Compute the company's total product cost per unit under absorption costing if 12,500 units had been produced 2. Fill in the blank with increase or decrease
Answer:
Total unitary cost= $16.2
Explanation:
First, we need to compute the total fixed overhead:
Total fixed overhead= 10,000*6= 60,000
Now, the unitary absorption cost for 12,500 units:
Direct labor= 2.8
Direct materials= 3.8
Variable overhead= 4.8
Total variable cost= $11.4
Fixed overhead= (60,000/12,500)= 4.8
Total unitary cost= $16.2
The unitary cost is lower.
Please be prepared to give your presentation on the monthly sales figures at our upcoming staff meeting. In addition to the accurate accounting of expenditures for the monthly sales, be ready to discuss possible reasons for fluctuations as well as possible trends in future customer spending. Thank you. The main focus of the presentation will be _
Answer:
The main focus of presentation will be Sales forecast and expected revenue.
Explanation:
In the presentation the main focus will be the sales forecast. The monthly budgeted sales will be presented to the team and target should be made realistic so that they are achievable. There can be fluctuations in the sales because of seasonal effect or due to some other reasons. The trend should be analyzed before determining the sales targets.
Lowden Company has a predetermined overhead rate of and allocates overhead based on direct material cost During the current period direct labor cost is 58,000 and direct materials cost is $ 88,000 . How much overhead cost should Lowden Company should apply in the current period
Answer:
$138,160
Explanation:
Calculation to determine How much overhead cost should Lowden Company should apply in the current period
Using this formula
Overhead =157%*Direct material cost
Let plug in the formula
Overhead=157%*88,000
Overhead=$138,160
Therefore the amount of overhead cost that Lowden Company should apply in the current period is $138,160
____________- allows more than one variable at a time to be changed, and it takes into account the probabilities of changes in the key variables.
Answer:
scenario analysis
Explanation:
scenario analysis estimates changes that would result from a hypothetical change in the market or a reoccurrence of an historical event.
types of scenario analysis
1. historical scenarios : scenarios measure an hypothetical change that would result from a repeat of a particular period of financial history.
2. Hypothetical scenarios : scenarios have never occurred and are just conjured for the sake of analysis.
Sensitivity measures the impact of the change of one variable.
Machine 1 has a monthly lease cost of $647, and there is a cost of $0.033 per page copied. Machine 2 has a monthly lease cost of $785, and there is a cost of $0.048 per page copied. Customers are charged $.08 per page copied. If Benny expects to make 97,000 copies per month, what would be the monthly cost for each machine
Answer:
Results are below.
Explanation:
Giving the following information:
Machine 1:
Fixed cost= $647
Unitary variable cost= $0.033
Machine 2:
Fixed cost= $785
Unitary variable cost= $0.048
The total cost for 97,000 copies:
Machine 1:
Total cost= 647 + 0.033*97,000
Total cost= $3,848
Machine 2:
Total cost= 785 + 0.048*97,000
Total cost= $5,441
Dermody Snow Removal's cost formula for its vehicle operating cost is $3,080 per month plus $338 per snow-day. For the month of December, the company planned for activity of 20 snow-days, but the actual level of activity was 22 snow-days. The actual vehicle operating cost for the month was $10,130. The spending variance for vehicle operating cost in December would be closest to:
Answer:
$386 U
Explanation:
Calculation to determine what The spending variance for vehicle operating cost in December would be closest to:
Actual results $10,130
Less Flexible budget $10,516
($3,080+($338 per*22 snow-days)
Spending variance $386 Unfavorable
Therefore The spending variance for vehicle operating cost in December would be closest to:
$386 Unfavorable
The following information pertains to Cullumber Company. 1. Cash balance per bank, July 31, $11,310. 2. July bank service charge not recorded by the depositor $65. 3. Cash balance per books, July 31, $11,440. 4. Deposits in transit, July 31, $4,615. 5. $2,600 collected for Cullumber Company in July by the bank through electronic funds transfer. The accounts receivable collection has not been recorded by Cullumber Company. 6. Outstanding checks, July 31, $1,950. (a) Prepare a bank reconciliation at July 31, 2022.
Answer:
See below
Explanation:
Cullumber Company
Bank Reconciliation
July 31, 2022
Cash balance as per bank
$11,310
Add:
Deposits in transit
$4,615
Less:
Outstanding checks
($1,950)
Adjusted bank balance
$13,975
Cash balance per books
$11,440
Add:
Electronic fund transfer received
$2,600
Less:
Bank service charges
($65)
Adjusted cash balance
$13,975
Answer each of the following independent questions.
1. Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $64,000 cash immediately, (2) $20,000 cash immediately and a six-period annuity of $8,000 beginning one year from today, or (3) a six-period annuity of $13,000 beginning one year from today. Assuming an interest rate of 6%, which option should Alex choose?
2. The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December 31, 2025. Weimer will make annual deposits of $100,000 into a special bank account at the end of each of 10 years beginning December 31, 2016. Assuming that the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made on December 31, 2025?
Answer:
option 1
$1,381,644.80
Explanation:
Alex would choose the option that has the highest present value
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
pv of option 2
Cash flow in year 0 = 20,000
Cash flow in year 1 - 6 = $8,000
i = 6%
PV = 59,338.60
OPTION 3
Cash flow in year 1 - 6 = 13,000
i - 6%
pv = 63,925.22
option 1 has the highest present value and should be chosen
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
2.
future value of an annuity = Annual payment x annuity factor
Annuity factor = {[(1+r)^n] - 1} / r
(1.07^10 - 1 ) / 0.07 = 13.816448
13.816448 x 100,000 = $1,381,644.80
Suppose independent truckers operate in a perfectly competitive constant cost industry. If these firms are earning positive economic profits, what happens in the long run to the following: The price of trucking services
Answer:
The price of trucking services would fall until equilibrium prices are reached. Only normal profit would be earned in the long run
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
On January 1, 2012, Fei Corp. issued a 3-year, 5% coupon, $100,000 face value bond. The bond was priced at an effective interest rate of 8%, yielding proceeds of $92,137. This is the first and only bond that Fei has ever issued.
Fei’s Statement of Cash Flows for fiscal year 2012 had the following line items:
2012 2011
Net Income $11,500 $10,350
Depreciation $25,478 $23,675
Amortization of Bond Discount $2,418 $0
What was Fei’s Interest Expense on the bond during fiscal year 2012?
a. $2,418
b. $7,371
c. $7,418
d. $8,000
e. $5,000
Answer:
c. $7,418
Explanation:
Calculation to determine What was Fei’s Interest Expense on the bond during fiscal year 2012
Using this formula
Interest Expense =Interest payable+Amortization of bonds discount interest expense
Let plug in the morning
Interest Expense=(5%*100,000)+$2,418
Interest Expense=$5,000+$2,418
Interest Expense=$7,418
Therefore Fei’s Interest Expense on the bond during fiscal year 2012 is $7,418
Kawamura, a careful utility maximizer, consumes peanut butter and ice cream. Assume that both peanut butter and ice cream are normal goods and that diminishing marginal utility applies to both goods. Right after he achieves the utility-maximizing level of consumption of the two goods, the price of peanut butter falls. After he adjusts to this event, the marginal utility of peanut butter goes _____ and that of ice cream goes _____.
Answer:
The marginal utility of peanut butter goes down and that of ice cream goes up.
Explanation:
The substitution effect states that when the price of a product falls, it will lead to a rise in the quantity demanded of the product as buyers will buy more of the product that is now relatively cheaper.
And as more of a good is bought, its marginal utility falls. And as less of a product is bought, its marginal utility increases.
Based on the above explanation therefore, the marginal utility of peanut butter goes down and that of ice cream goes up after Kawamura adjusts to the event.
This is because as more of peanut butter is bought due to the fall in its price, its marginal utility falls. And as less of ice cream is bought as it is now relatively more expensive, its marginal utility increases.
us suppose that you open a savings account at the campus credit union. Into this savings account, you place $100 in savings. The interest rate is 5 percent. The future value of this account in two years is
Answer:
the future value in two years is $110.25
Explanation:
The computation of the future value in two years is shown below:
As we know that
Future value = Present value × (1 + rate of interest)^number of years
= $100 × (1 + .05)^2
= $100 × (1.1025)
= $110.25
Hence, the future value in two years is $110.25
The same should be considered and relevant
On July 15, 2021, M.W. Morgan Distribution sold land for $41.0 million that it had purchased in 2016 for $26.0 million.
Required:
What would be the amount(s) related to the sale that Morgan would report in its statement of cash flows for the year ended December 31, 2021, using the direct method?
Answer:
$41.0 million
Explanation:
Calculation to determine the amount(s) related to the sale that Morgan would report in its statement of cash flows for the year ended December 31, 2021, using the direct method
DIRECT METHOD:
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash proceeds received from sale of land $41.0 million
Therefore the amount(s) related to the sale that Morgan would report in its statement of cash flows for the year ended December 31, 2021, using the direct method is $41.0 million