Answer:
Kindly check explanation
Explanation:
In the United States, the Supreme law of the country which takes precedence over all laws be it federal, state, or common laws. Hence, In terms of hierarchical arrangement, the U.S constitution is first, then, federal statutes, then state statutes, then common law.
A) A federal statute conflicts with the U.S. constitution., The U. S constitution will subdue the stance of the federal statute as it is the Supreme law.
b) A federal statute conflicts with a state constitutional provision.
Here, in order of hierarchy, the federal statutes take priority above the state as the state provision are behind the federal laws and will almost always conform to the provision of the United States constitution.
C.) A state statute conflicts with the common law of that state.
A state statute will take priority over the common law as statites are always prioritized ahead of common laws.
d) A state constitutional amendment conflicts with the U.S. constitution.
The U. S Constitution takes precedence and is hence prioritized above the state constitution as it is the Supreme law of the land.
A major cost of the separation of ownership and control of corporations is that the managers of the corporation may sometimes act in their own best interest as opposed to shareholders’ interests. What can shareholders do to discipline self-interested managers? [SELECT ALL THAT APPLY.] Question 2 options: fire them vote to replace the board of directors who can replace the self-interested managers reduce their pay (fine them) sell shares to push down the stock pric
Answer:
a. vote to replace the board of directors who can replace the self-interested managers
b. fire them
Explanation:
In a corporations in which the major aim is to promote the interest of the shareholders, there is bound to be class of interest between the managers and the shareholders.
Most times, the manager will try to pursue his own personal interest at the detriment of the organization. Firing such managers and, in most cases, voting during board meetings to replace them are ways to put the organization back to business.
What gives the tourists the advantage of being able to pay "2nd price" or even "3rd price" for their souvenirs, when the locals can’t do that when they buy things they need at the shops in Angoram?
Answer:
There might be a passage attached but from a general perspective, tourists usually have an advantage in bargaining for souvenirs because they are the only market being sold to. Souvenirs are usually made exclusively for tourists which gives them bargaining power because if the tourists do not buy the goods, no one else will. The number of locals who will buy souvenirs from other locals is statistically insignificant because the locals make the souvenirs themselves.
When they go into the town or city of Angoram, you find that the shops there are selling to many more buyers and so the prices are set and cannot be bargained. This is why the locals cannot ask for 2nd or 3rd prices.
Gadget Twin Inc. recently raised capital through an initial public offering (IPO). Its stock can now be purchased on the NYSE. This company is referred to as:
Answer:
This company is referred to as:
a listed entity.
Explanation:
Gadget Twin Inc. becomes a listed entity when it raises capital through an IPO on the NYSE. This means that its share, stock, and debt securities are quoted or listed on a recognized stock exchange, and marketed under the regulations of the New York Stock Exchange. Therefore, Gadget's stockholders and investors can easily sell and buy the shares of the company at the secondary market of the NYSE without any effect on Gadget Twin Inc.
A 2-column table with 5 rows. Column 1 has entries 25 percent, 25 percent, 25 percent, 25 percent, Total 100 percent. Column 2 has entries 12 dollars, 12 dollars, 12 dollars, 12 dollars, Total 48 dollars. Which of the following scenarios could be accurately modeled using this diagram? Juan Victor gave a gratuity of $25 on a bill that was $48. Juan Victor gave a 25% gratuity of $12 on a bill that was $48. Juan Victor gave a gratuity of $12 on a bill that was $100. Juan Victor gave a 12% gratuity on a bill that was $25.
Answer:
Juan Victor gave a gratuity of 25% of $12 on a bill that was $48
Explanation:
Answer:
b
Explanation:
An isoquant is a curve that represents combinations of:_______.
Answer:
two inputs which are capable of producing the same level of output.
Explanation:
Isoquant is a word made up of two parts. Iso is one and quant is for quantity not output.
It means a combination of inputs that give a certain output.
The factors of production can be substituted for each other to produce the same quantity of a product. These combinations are called isoquant.
Plotting all possible combinations that give a level of output gives the isoquant curve
Match each of the following scenarios with the accounting principle or accounting assumption that it best illustrates.a. Several years after Thomas Company purchased new office equipment, the company’s accounting records still show the original purchase price. b. The home of Rob Elliot, the owner of GGE Enterprises Inc., is not listed among the company’s assets. c. Despite several years of falling sales, Thomas Company continues to forecast sales and make strategic plans to raise revenues and cut expenses. d. Thomas records expenses incurred to produce the sales for the month. e. GGE Enterprises records a deposit received from a customer for work to be performed later in the month. The customer is billed for the remaining amount after the work is complete, and the customer’s payment is recorded. f. Thomas Company provides earnings information to investors at the end of every quarter. g. The accounting records of Thomas Company are in dollars, not euros, although the Ohio-based company is owned by a German firm.
Answer:
Key S - Scenario
A - Accounting Principle or Assumption
S
Several years after Thomas Company purchased new office equipment, the company’s accounting records still show the original purchase price.
A
Historical cost principle
S
The home of Rob Elliot, the owner of GGE Enterprises Inc., is not listed among the company’s assets.
A
Business entity assumption
S
Despite several years of falling sales, Thomas Company continues to forecast sales and make strategic plans to raise revenues and cut expenses.
A
Going concern assumption
S
Thomas records expenses incurred to produce the sales for the month.
A
Expense recognition principle
S
GGE Enterprises records a deposit received from a customer for work to be performed later in the month. The customer is billed for the remaining amount after the work is complete, and the customer’s payment is recorded.
A
Revenue recognition principle
S
Thomas Company provides earnings information to investors at the end of every quarter.
A
Time period assumption
S
The accounting records of Thomas Company are in dollars, not euros, although the Ohio-based company is owned by a German firm.
A
Monetary unit assumption
Explanation:
Federal, state, and local government organizations fulfill several roles within the economy. Which of the following are roles provided by government organizations?a) Acting as a consumer of goods and services b) Restricting access to economic information c) Employing consumers "
Answer:
c) Employing consumers
Explanation:
Some of the roles of the government are :
1. providing public goods e.g. roads, security
2. increasing inefficiency
3. To foster economic growth and development
In order to perform these roles, the government needs to employ labour, so they employ consumers.
for example, in order to provide a public good such as road, government needs to employ contractors, engineers and other people who have the skills needed to construct a road
The standard long-run model assumes that:_____.
a. technology improves at an increasing rate over time.b. technological advance is impossible.c. technology is fixed.d. costs of production are fixed.
Answer: a. technology improves at an increasing rate over time.
Explanation:
In the long run, companies will aim to be more efficient so that they may be able to produce goods and services at a lower cost and so they will actively seek out new technology to help them with this.
This will result in technology improving at an increasing rate overtime as more and more technology is discovered and then made obsolete. Improvements in tech brings down cost and the company with the least cost will be the most profitable.
Jurisdiction M imposes an individual income tax based on the following schedule.
Rate Income bracket
5% $-0- to $50,000
+ 8% $50,001 to $200,000
+ 12% $200,001 and aboveWhich of the following statements is true?
A) The schedule provides no information as to whether Jurisdiction M's tax is horizontally equitable.
B) Jurisdiction M's tax is vertically equitable.
C) Jurisdiction M's tax is vertically equitable only for individuals with $50,000 or less taxable income.
D) Both A. and B. are true.
Answer:
D) Both A. and B. are true.
A) The schedule provides no information as to whether Jurisdiction M's tax is horizontally equitable. B) Jurisdiction M's tax is vertically equitable.Explanation:
When we are talking about horizontal equity of a tax, we are talking about how the tax base is measured and the ability that taxpayers have to pay the tax. There is nothing here about tax base or taxpayers' ability to pay.
On the other hand, vertical equity deals with the tax rate structure. In this case, the tax rate is progressive, meaning that it increases as the taxpayers' income increases. Progressive taxes are vertically equitable.
At an interest rate of 10% per year, $100,000 today is equivalent to how much in a year from now?
Answer:
FV= $110,000
Explanation:
Giving the following information:
Present value= $100,000
Number of periods= 1 year
Interest rate= 10% compounded annually
To calculate the equivalent amount of money, we need to use the following formula:
FV= PV*(1+i)^n
FV= 100,000*(1.1^1)
FV= $110,000
Use the following selected information from Whitman Corp. to determine the Year 1 and Year 2 common size percentages for cost of goods sold using Net sales as the base.
Year 2 Year 1
Net sales $ 276,200 $ 231,400
Cost of goods sold 151,900 129,590
Operating expenses 55,240 53,240
Net earnings 27,820 19,820
a. 36.4% for year 2 and 4 for year 1
b. 550% for year 2 and 56.% for year 1
c. 119.45% for year 2 and 100.0% for year 1
d. 125% for your 2 and 100% for year 1
e. 657% for year 2 and 56.0% for year 1
Answer:
D,F,A,I
Explanation:
Suppose the following items were taken from the balance sheet of Nike, Inc. (All dollars are in millions.)
1. Cash $2,100.0 7. Inventory $2,300.0
2. Accounts receivable 2,600.0 8. Income taxes payable 70.0
3. Common stock 2,830. 0 9. Equipment 2,000.0
4. Notes payable 310.0 10. Retained earnings 4,850.0
5. Buildings 3,800.0 11. Accounts payable 3,400.0
6. Mortgage payable 1,340.0
Classify each of these items as an asset, liability, or stockholders' equity, and determine the total dollar amount for each classification. (Enter amounts in millions to 1 decimal place, e.g. 45.5 million.)
Stockholders' Equity - Cash
Stockholders' Equity Accounts receivable
Liability Common stock
Stockholders' Equity Mortgage payable
Liability Inventory
Liability Income taxes payable
Assets $ 2000
Liability $
Stockholders' Equity $
Answer:
Assets
1. Cash 2,100
2. Accounts receivable 2,600
7. Inventory $2,300
5. Buildings 3,800
9. Equipment 2,000
Total: 12,800
Liabilities
11. Accounts payable 3,400
8. Income taxes payable 70
4. Notes payable 310
6. Mortgage payable 1,340
Total: 5,120
Equity
3. Common stock 2,830
10. Retained earnings 4,850
Total 7,680
Liabilities + Equity = 12,800
Explanation:
Assets= represent all the property and rights owned by the company that will be used to produce a positive cashflow in the business activity.
Liabilites= this represents the obligation against third parties wheter they are to do or to pay something
Equity = represents the stockholders rights. They are composed by their contribution and the retained earnigns which represent the accumulated income and losses of the business.
Consider the life-cycle of an industry. Which stage would you consider brewing to be in:________.a. Embryonicb. Growthc. Matured. Declining
Answer: c. Mature
Explanation:
In the Mature stage of an industry, the product is already well known, the market saturated and competition is fierce amongst the number of participants who remain. Competition comes in form of trying to reduce costs as well as strong advertising to push sales.
The Brewing industry produces a well known product in alcoholic beverages and the market is quite saturated. Competition is fierce amongst participants as they try to get more market share and there is a strong focus on advertising to drive sales. Brewing is therefore at the Mature stage in the life-cycle of an industry.
In the life cycle of industries we would consider brewing to be in the mature stage of the industry.
What is the life-cycle of an industry?This is used to refer to the cycle that industries take from the stage where they are being planned to when they begin to function.
The brewing process is at maturity due to the fact that the product is already being developed by the brewing industry.
Read more on life-cycle of an industry here
https://brainly.com/question/7510515
By 2025, annual consumption in emerging markets will total $30 trillion and contribute more than ________ percent of global GDP growth.a. 81b. 85c. 70d. 78e. 65
Answer:
c. 70
Explanation:
There is the highest growth opportunity in the history of capitalism. As per the top hundred in 2010 in the biggest organization of the headquarter of the world in the nation of developed as it gets 17% of its income which is appear from the markets.
Therefore, their donation was 36% of the global gross domestic product. After this, the economies are expected to give a 70% contribution till 2025. Hence, the cost will rise to $30 trillion from $12 trillion till 2025.
So, the correct answer is c.
Do you disagree that “leaders are born, not made”?
Answer: I disagree
Explanation: everyone was born but not everyone is a leader. anyone can be born to do something but it is up to the person who they will become
Use the supply schedule below to answer the questions that follow.Supply of Flower Bouquets
Price (dollars per bouquet) Quantity of Bouquets Supplied40 125
35 100
30 75
25 50
20 25
15 0A. What is the quantity of bouquets supplied if the market price is $30?
B. Suppose the market price falls from $30 per bouquet to $20 per bouquet. The quantity of bouquets supplied will (decrease or increase) by____bouquets.
a. quantity of bouquets supplied if the market price is $30 is 75
b. It should be decreased by 50.
The calculation is as follows:a. The corresponding matching for $30 price is 75 units.
b. The difference would say the decreasing quantity;
(75 – 25 =) 50 units.
I.e. decrease; 50
Learn more: https://brainly.com/question/994316?referrer=searchResults
How is owner’s equity affected when is paid for expenses?
Answer:
Profit and loss are directly linked to the amount of money the company is spending to run its business -- its operating expenses. So changes in operating expenses naturally affect owner's equity.
Like other manufacturers and sellers, Peoples ProductsCorporation labels its goods. Federal labeling andpackaging rules are enforced by the Federal TradeCommission and:________a. the U.S. Department of Commerce.b. the U.S. Department of Health and Human Services.c. the U.S. Department of Justice.d. the U.S. Department of the Treasury.
Answer:
b. the U.S. Department of Health and Human Services
Explanation:
The goal of the department deals in health and human services in United states is to motivate the health and the well being for providing health and human services, social services, etc
Here the labeling and packaging rules are imposed by the commission earned by trade for federal and the department deals in health and human services in the United States
Hence, the correct option is b as the same is equally important
importance of price elasticity of demand in business
You are a manager of a soft drinks company that is planning to go head to head with Coca-Cola to increase market share. Your strategy is to increase your product ranges that you plan to offer to Mass Market. Along with the extension of the products and product lines, you want to be responsive to the different geographic regions you plan to serve. So, your main focus is to balance the extended product categories along with the responsiveness to the geographic regions to serve. Currently you have a functional structure which may not be suitable for maintaining Products along with Geographic Responsiveness. So, you are required to IDENTIFY which Organizational Structure (For Example: PRODUCT BASED DIVISION, REGION BASED DEVISIONS, MATRIX STRUCTURE, etc.) would be best suitable if your strategy intends to: a. Lowering cost b. Increasing responsiveness c. or both Provide Rationale for each of the Structural Choices for the aforementioned three strategic intentions.
Answer:
The Orgnisational Structure that is best suited for the strategy highlighte above is the Martrix Organisational Structure.
Explanation:
The Matrix Organisational Structure is a cross between the Functional Organisational Structure and the Divisional organisational structure. In this type of environment, it is not uncommon to have an employee reporting to two line managers. For example, it is possible under this structure for the Sales Manage to report to the Regional Sales Manager and the Human Resources Manager.
The benefits of this type of structure is that is lowers human capital cost as key people in the organisation are shared, it optimizes the balance between the cost and time taken to complete projects.
Cheers!
The sales and profits of an individual product may not follow the life cycle pattern.A. TrueB. False
Answer:
A. True
Explanation:
The product life cycle is a term that describes a form of structure or arrangement of sales and profits of a product in a given time.
However, due to volatile marketing conditions, it is TRUE, that the sales and profits of an individual product may or may not follow the life cycle of the general pattern.
Hence, the correct answer in this situations is absolutely TRUE
What are the transactions requirements for chase?
Answer:
Complete at least 10 qualifying transactions (including debit card purchases, online bill payments and direct deposits) within 60 days of opening your account. The account must remain open for six months, or Chase may deduct the bonus at closing. When you'll get it: Within 10 business days of completing requirements.
Due to impending labor strife over planned layoffs in its Silicon Valley headquarters, a social networking company has decided to outsource its programming operations to an emerging market, India, to obtain cheaper labor. Since then, this social networking company has encountered criticism that has diminished its current market position and staff productivity. You have been retained by this company to develop an appropriate reactive (emergent) strategy that would begin by
Answer:
putting a halt on the layoffs
Explanation:
This strategy should begin by putting a halt on the layoffs. This should be top priority since the layoffs themselves are the main cause for the criticism that the company is receiving and this criticism is the sole reason as to why its market position and staff productivity has fallen drastically. People think the company is failing and the staff is scared that they will eventually be fired. By stopping layoffs and waiting for a market recovery you give other better options a chance to arise and more efficient strategies to take effect.
Weber Company purchases $50,000 of raw materials on account, and it incurs $60,000 of factory labor costs. Supporting records show that (a) the Assembly Department used $24,000 of raw materials and $35,000 of the factory labor, and (b) the Finishing Department used the remainder. Manufacturing overhead is assigned to departments on the basis of 160% of labor costs. Journalize the assignment of overhead to the Assembly and Finishing Departments.
Answer:
Assembly: 56,000 *Debit, Finishing: 40,000 *Debit, and Factory Overhead: 96,000 *Credit
Explanation:
Assembly
DM: 24,000
DL:35,000
FO: 35,000 x 160% =56,000
Finishing 26,000 and 25,000
FO 25,000 x 160% =40,000
Pastina Company sells various types of pasta to grocery chains as private label brands. The company’s reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below. Account Title Debits Credits Cash 30,000 Accounts receivable 40,000 Supplies 1,500 Inventory 60,000 Notes receivable 20,000 Interest receivable 0 Prepaid rent 2,000 Prepaid insurance 6,000 Office equipment 80,000 Accumulated depreciation 30,000 Accounts payable 31,000 Salaries payable 0 Notes payable 50,000 Interest payable 0 Deferred sales revenue 2,000 Common stock 60,000 Retained earnings 28,500 Dividends 4,000 Sales revenue 146,000 Interest revenue 0 Cost of goods sold 70,000 Salaries expense 18,900 Rent expense 11,000 Depreciation expense 0 Interest expense 0 Supplies expense 1,100 Insurance expense 0 Advertising expense 3,000 Totals 347,500 347,500 Information necessary to prepare the year-end adjusting entries appears below. Depreciation on the office equipment for the year is $10,000. Employee salaries are paid twice a month, on the 22nd for salaries earned from the 1st through the 15th, and on the 7th of the following month for salaries earned from the 16th through the end of the month. Salaries earned from December 16 through December 31, 2021, were $1,500. On October 1, 2021, Pastina borrowed $50,000 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 10 years. On March 1, 2021, the company lent a supplier $20,000, and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022. On April 1, 2021, the company paid an insurance company $6,000 for a one-year fire insurance policy. The entire $6,000 was debited to prepaid insurance. $800 of supplies remained on hand at December 31, 2021. A customer paid Pastina $2,000 in December for 1,500 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue. On December 1, 2021, $2,000 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $1,000 per month. The entire amount was debited to prepaid rent. I want the answers from question 1-8
Answer:
1.Dr Depreciation expense 10,000
Cr Accumulated depreciation-equipment 10,000
2.Dr Salaries expense 1,500
Cr Salaries payable 1,500
3.Dr Interest expense 1,500
Cr Interest payable 1,500
4.Dr Interest receivable 1,333
Cr Interest revenue 1,333
5.Dr Insurance expense 1,500
Cr Prepaid insurance 1,500
6.Dr Supplies expense 700
Cr Supplies 700
7.Dr Sales revenue 2,000
Cr Unearned revenue 2,000
8.Dr Rent expense 1,000
Cr Prepaid rent 1,000
Explanation:
Preparation of Journal entries
1. Based on the information given we were told that Depreciation on office equipment for the year is the amount of $10,000 which means that the Journal entry will be recorded as:
Dr Depreciation expense 10,000
Cr Accumulated depreciation-equipment 10,000
2. Based on the information given we were told that Salaries earned from 16 December to December 31, 2021, were the amount of $1,500 which means that the Journal entry will be:
Dr Salaries expense 1,500
Cr Salaries payable 1,500
3. Based on the information given we were told that On October 1, 2021, they borrowed the amount of $50,000 with an interest note that have to be paid yearly on September 30 at 12% which means that the transaction will be recorded as:
Dr Interest expense 1,500
(50,000*12%*3/12)
Cr Interest payable 1,500
4. Based on the information given we were told that on March 1, 2021, the company borrowed a supplier the amount of $20,000 with an interest of 8% to be paid on February 28, 2022 which means that the transaction will be recorded as:
Dr Interest receivable 1,333
(20,000*8%*10/12)
Cr Interest revenue 1,333
5. Based on the information given we were told that on April 1, 2021, the company paid an the amount of $6,000 to an insurance company for a one-year fire insurance policy which means that the Journal entry will be:
Dr Insurance expense 1,500
(6,000*3/12)
Cr Prepaid insurance 1,500
Since it is a one year fire insurance we subtracted the different between the month of April 1st and December 31st .
Hence,
12 months- 9 months= 3 months
=6,000 x 3/12
= 1,500
6. Based on the information given we were told that the amount of $800 of supplies remained on hand at December 31, 2021 which means that the transaction will be recorded as:
Dr Supplies expense 700
(1,500-800)
Cr Supplies 700
7. Based on the information given we were told that a customer paid the amount of $2,000 in December which means that the transaction will be recorded as;
Dr Sales revenue 2,000
Cr Unearned revenue 2,000
8. Based on the information given we were told that the payment that was made represented rent for December 2021 and January 2022 at the amount of $1,000 per month which means that the Journal entry will be recorded as:
Dr Rent expense 1,000
Cr Prepaid rent 1,000
Company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used 6 workers, who together produced an average of 90 carts per hour. Workers receive $10 per hour, and machine cost was $50 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $10 per hour, while output increased by 6 carts per hour.
A. Compute the multifactor productivity(MFP) (labor plus equipment) under the Prior to buying the new equipment. (Round to 4 decimal places)
B. Compute the % growth in productivity between the Prior and after buying the new equipment. (Round to 2 decimal places)
C. Comment on the changes in productivity according to two measures,and which you believe in the more pertinent for this situation?
Answer:
A. Compute the multifactor productivity(MFP) (labor plus equipment) under the Prior to buying the new equipment.
multi-factor productivity = 90 carts / ($60 + $50) = 0.8182 carts/$
B. Compute the % growth in productivity between the Prior and after buying the new equipment.
new multi-factor productivity = 96 carts / ($50 + $60) = 0.8727 carts/$
% growth = (0.8727 - 0.8182) / 0.8182 = 6.66% increase
C. Comment on the changes in productivity according to two measures,and which you believe in the more pertinent for this situation?
the multi-factor productivity increased by 6.66% because even though the total cost of the factors of production remained the same, total output increased by 6 units
On January 1, 2018, Wellburn Corporation leased an asset from Tabitha Company. The asset originally cost Tabitha $360,000. The lease agreement is an operating lease that calls for four annual payments beginning on January 1, 2018, in the amount of $31,000. The other three remaining payments will be made on January 1 of each subsequent year. Which of the following journal entries should Tabitha record on January 1, 2018?a. Cash 31,000 Rent expense 31,000 b. Cash 31,000 Lease receivable 31,000 c. Cash 31,000 Rent revenue 31,000 d.Rent revenue 31,000 Cash 31,000
Answer:
C.Dr Cash 31,000
Cr Rent revenue 31,000
Explanation:
Based on the information given we told that the lease agreement which is an operating lease calls for four annual payments which begins on January 1, 2018, in the amount of $31,000 which means that what Tabitha should record on January 1, 2018 will be to:
Dr Cash 31,000
Cr Rent revenue 31,000
Fair Oaks Farms’ manure management, specifically the use of cow manure to power their facilities and fuel their milk tankers, is most closely related to which managerial challenge?
Answer:
These are the options for the question:
Managing for globalizationManaging for sustainabilityManaging for animal welfareManaging for diversityManaging for information technologyAnd this is the correct answer:
Managing for sustainabilityExplanation:
The use of cow manure to power facilities and fuel milk tankers is a managerial challenge directly related with the sustaniable aspecto of the Farm.
This is because a natural resource: cow manure, is being used in an efficient manner to provide much needed power to the firm's facilities. The amounts of manure, times, and processes that are used, are all part of the sustainability policy of the farm, which has to be overseen by the manager.
Your landscaping company can lease a truck for $7,800 a year (paid at year-end) for 6 years. It can instead buy the truck for $38,000. The truck will be valueless after 6 years. The interest rate your company can earn on its funds is 7%.
Question:
Graded assignment(towards 15% Hw grade) Saved Help Save& Exit Submit Check my work Your landscaping company can lease a truck for $7,800 a year (paid at year-end) for 6 years. It can instead buy the truck for $38,000. The truck will be valueless after 6 years. The interest rate your company can earn on its funds is 7%. 10 points
What is the present value of the cost of leasing?
Answer:
Cost of lease = $37,179.01
Explanation:
Leasing is a finance arrangement where one party (the lessor) transfers the right to use an asset to another party (the leasse) in exchange for a rent.
The cost of a lease to the leasee is the present value of the future lease payment discounted at the cost of capital.
So using the present value of annuity formula, we can work out the cost of the lease arrangement as follow:
PV =A× (1- 1+r)^(-n)/r
PV- Present Value
r- interest rate
n- number of years
A- annual lease payment
PV -
A-7,800
r-7%
n-6
PV = 7,800× (1- (1.07)^(-6)/0.07 = 37,179.01
Present Value = $37,179.01
Cost of lease = $37,179.01
On November 1 of the current year, Rob Elliot invested $29,750.00 of his cash to form a corporation, GGE Enterprises Inc., in exchange for shares of common stock. No other common stock was issued during November or December. After a very successful first month of operations, the retained earnings as of November 30 were reported at $5,000.00. After all transactions have been entered into the accounting equation for the month of December, the ending balances for selected items on December 31 follow. On that date, the financial statements were prepared. The balance sheet reported total assets of $56,150.00 and total stockholders' equity of $38,300.00.
1. What is the amount of profit or loss during December?
2. What were the total expenses for December?
3. How much was paid for rent?
Answer:
1. What is the amount of profit or loss during December?
$9,3002. What were the total expenses for December?
$12,9503. How much was paid for rent?
$1,220Explanation:
we are missing some numbers, so I looked for a similar question. I found one that was almost identical, but the amount of initial paid in capital varied by a little bit. I still used it with the only difference that I used the given common stock, not the common stock that appears in the picture.
Common stock $29,750
retained earnings for November = $5,000
total assets = $56,150
total stockholders' equity = $38,300
retained earnings = $38,300 - $29,750 = $8,550
$5,000 from November$3,550 from DecemberDecember's profit = $3,550 (retained earnings) + $5,750 (dividends) = $9,300
income statement = $27,250 - total expenses = $9,300 + $5,000 = $14,300
total expenses = $27,250 - $14,300 = $12,950
utilities expense = $12,950 - $6,450 - $4,625 - $1,220 = $655