Wildhorse Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16- ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, m

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Answer 1

The CVP Income Statement is contained in the attachment that we have here

Howe to get the CVP Income Statement

The attachemnet contains the calculation of he income statement for the given company

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Wildhorse Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales $1,850,000 Selling expenses-variable $95,000 Direct materials 470,000 Selling expenses-fixed 54,000 Direct labor 340,000 Administrative expenses-variable 30,000 Manufacturing overhead-variable 360,000 Administrative expenses-fixed 109,000 Manufacturing overhead-fixed 170,000 Prepare a CVP income statement for 2020 based on management's estimates. WILDHORSE COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2020

Wildhorse Company Bottles And Distributes B-Lite, A Diet Soft Drink. The Beverage Is Sold For 50 Cents

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if saving exceeds investment demand, and consumption is not a function of the interest rate:

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If saving exceeds investment demand and consumption is not a function of the interest rate, it suggests that there is an excess supply of loanable funds in the economy.

In other words, individuals and businesses are saving more than they are willing to invest. This can happen for various reasons, such as low consumer confidence, a pessimistic business outlook, or limited investment opportunities. In this situation, the interest rate tends to decrease as lenders compete to attract borrowers. Lower interest rates can incentivize borrowing and investment, helping to bring the saving and investment levels back into balance. However, since consumption is not influenced by the interest rate, it is unlikely to have a direct impact on stimulating demand. It is worth noting that in the real world, consumption is often influenced by factors such as income, wealth, and consumer expectations, which can be influenced by the interest rate indirectly. Therefore, the assumption that consumption is not a function of the interest rate is an oversimplification.

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You are an analyst for a large company, the CFO provides details of NZD:USD in March 2020. Specifically he mentions that the New Zealand dollar changed from USD 0.6526 on the 6 March to USD 0.6332 on the 20 March. (1) What are the USD:NZD rates for these dates and did the NZ dollar appreciate or depreciate against USD over this period? (11) By how much (percent) did the NZ dollar change in value against the US dollar? Show your calculations

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The calculated percentage change of approximately 3.08% indicates the magnitude of the appreciation. It represents the percentage increase in the value of the NZD against the USD over the given period.

To calculate the USD:NZD rates for the given dates and determine whether the New Zealand dollar appreciated or depreciated against the US dollar, we can use the formula:

USD per NZD = 1 / NZD per USD

Calculation of USD:NZD rates:

On 6th March:

USD per NZD = 1 / 0.6526 = 1.5321 USD per NZD

On 20th March:

USD per NZD = 1 / 0.6332 = 1.5793 USD per NZD

Calculation of the change in value of the NZD against the USD:

Percentage change = ((New Value - Old Value) / Old Value) * 100

Percentage change = ((1.5793 - 1.5321) / 1.5321) * 100

Percentage change = (0.0472 / 1.5321) * 100

Percentage change ≈ 3.08%

The NZD appreciated against the USD over this period, as the value of the NZD per USD increased.

The exchange rate went from 1.5321 USD per NZD on 6th March to 1.5793 USD per NZD on 20th March.

This means that it took fewer US dollars to buy one New Zealand dollar on 20th March compared to 6th March.

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1 2 3 4 5 Hurdle Rate: 6 7 8 Initial investment 9 Salvage value of new or replaced asset 10 Working Capital 11 Annual savings/revenues 12 Annual costs/cash outflows 13 Overhaul/refurbishment cost A 14 15 Net annual cash flows 16 Present value factor 17 Present value of annual cash flows 18 19 20 Net Undiscounted Cash Flows: Project cash flows: 21 22 Net Present Value of project: 23 24 Payback Period: 25 Cumulative Undiscounted Cash Flows 26 Payback Period (Years) 27 28 Profitability Index: 31 32 29 30 Internal Rate of Return (IRR): 33 34 35 36 37 B Time 0 ? ? ? ? ? ? ? ? C D Cubbies Corporation Capital Budget Projections Project: # Laura Ilcisin - Seat #1 Cleveland Corporation Year 1 ? ? ? Year 2 ? ? ? E Year 3 ? ? ? F Year 4 ? ? ? G Year 5 ? ? ? H Year 6 ? ? ? Year 7 Project Summaries: Net (undiscounted) cash flows Net present value Payback period (in years) Profitability index: Internal rate of return: Recommendation: Laura Ilcisin - Seat #1 Cleveland Corporation Project A Project B

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In capital budgeting, Net Present Value (NPV) is a tool utilized to identify the current value of projected cash flows for a particular investment. It measures the discrepancy between the current value of cash inflows and outflows for the project over a specific period of time.

The main objective of the NPV method is to evaluate the anticipated net cash flow over a specified time and compare it to the initial investment. If the result is positive, then the project should be approved, otherwise, it should be declined or reconsidered. The NPV method is important because it gives an idea of the present value of an investment and helps determine whether to approve or decline a project. If a project's NPV is negative, it means the investment is not worth making. A positive NPV implies that a company would earn more than the initial investment, so it would be worthwhile to proceed with the project. A project’s cash flow is a critical factor in determining its net present value. The cash flow projections for the project should be carefully examined and computed, including all potential costs and revenues. By doing this, one can accurately determine the NPV of the project and take a data-driven decision.

Conclusion:

In conclusion, Net Present Value is a fundamental measure used to decide whether a particular investment is profitable or not. It helps in analyzing the project’s expected cash flows and comparing them with the initial investment. If the result is positive, the project should be given the go-ahead, whereas a negative NPV implies that it is not worth investing in.

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How does web advertising work to target ads for individ- uals? How does social media marketing influence adver- tising? How do BLE beacons use mobile advertising?

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Web advertising is the use of the internet as a medium to deliver promotional content to customers or target audiences. This form of advertising works by using the target audience’s demographic data to serve them relevant ads, thereby increasing the chances of the ads being clicked on.

Web advertising uses cookies, device identifiers, and other types of tracking technologies to gather information about a user’s interests, demographics, and online behavior, which it uses to display ads that are more likely to be relevant to the user. The most common forms of web advertising include display ads, search engine marketing, and native advertising.


BLE (Bluetooth Low Energy) beacons are a type of mobile advertising technology that uses Bluetooth signals to send personalized messages to users’ mobile devices.

These beacons use a unique identifier to trigger location-specific actions on the mobile device, such as displaying a notification, opening an app, or sending a push notification.

BLE beacons use mobile advertising to offer personalized and targeted messages to customers, based on their location and interests. These beacons are commonly used in retail stores, museums, and other public places to offer users a personalized experience while advertising the product or service.

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Prosser Corporation has provided the following budgeted data: $100,000 $12 per unit Fixed Expenses Variable Expenses Budgeted Sales Selling Price 15,000 units $20 per unit Calculate contribution margin per unit. Calculate contribution margin ratio. Calculate the break-even point in units.

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The Contribution Margin per unit is $8, the Contribution Margin Ratio is 40%, and the Break-even point in units is 12,500 units.

Budgeted Sales = 15,000 units Selling Price = $20 per unit Fixed Expenses = $100,000 Variable Expenses = $12 per unit. Contribution Margin per unit = Selling Price per unit - Variable Cost per unit= $20 - $12= $8 per unit. Contribution Margin Ratio = Contribution Margin / Sales= $8 per unit * 15,000 units / $300,000= 0.40 or 40%. Break-even point in units = Fixed Expenses / Contribution Margin per unit= $100,000 / $8 per unit= 12,500 units. Therefore, the Contribution Margin per unit is $8, the Contribution Margin Ratio is 40%, and the Break-even point in units is 12,500 units.

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Theresa Nunn is planning a 30-day vacation on Pulau Penang, Malaysia, one year from now. The present charge for a luxury suite plus meals in Malaysian ringgit (RM) is RM1.043/day. The Malaysian ringgit presently trades at RM3.1350/$. She determines that the dollar cost today for a 30-day stay would be $9,980.86. The hotel informs her that any increase in its room charges will be limited to any increase in the Malaysian cost of living Malaysian inflation is expected to be 2.7777% annum, while U.S. inflation is expected to be 1.238%.

How many dollars might Theresa expect to need one year hence to pay for her 30-day vacation?

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Theresa can expect to need $10,236.90 to pay for her 30-day vacation after a year.Theresa Nunn is planning a 30-day vacation on Pulau Penang, Malaysia, one year from now. The present charge for a luxury suite plus meals in Malaysian ringgit (RM) is RM1.043/day.

The Malaysian ringgit presently trades at RM3.1350/$. She determines that the dollar cost today for a 30-day stay would be $9,980.86. The hotel informs her that any increase in its room charges will be limited to any increase in the Malaysian cost of living.

Malaysian inflation is expected to be 2.7777% per annum, while U.S. inflation is expected to be 1.238%. Now, we need to find out how many dollars Theresa might expect to need one year hence to pay for her 30-day vacation.

Here, we need to calculate the future cost of a 30-day stay after a year, considering the cost of inflation.

The future cost of the stay after a year = Present cost of the stay * [(1 + rate of inflation in Malaysia) / (1 + rate of inflation in the US)]Or,  = $9,980.86 * [(1 + 0.027777) / (1 + 0.01238)] = $10,236.90.Therefore, Theresa can expect to need $10,236.90 to pay for her 30-day vacation after a year.

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Consider a game involving two software developers: A and B. Firm A has developed a new app that it is certain will sell well. Firm B can clone the app with its own engineers, but it can clone at a lower cost if it can hire away some of A’s software engineers. Recognizing this, firm A can choose to include in its employment contract a preemptive clause that bars its engineers from working for another software firm for a certain period of time if they resign from A. However, inserting such a clause makes firm A a less attractive place to work. As a result, A must pay its engineers an above-market salary if it adds a preemptive clause to its employment contract. If B decides to pursue cloning the app, A must decide how to react. Firm A can choose to fight B by aggressively advertising its app (which is costly but gives A a larger market share), or it can choose to forego the expense of advertising and share the market 50/50 with firm B. The payoffs (A,B) are as follows. If A preempts and B does not clone, the payoffs are (400, 0). If A preempts, B clones, and A fights, the payoffs are (170, -50). If A preempts, B clones, and A shares, payoffs are (150, 50). If A does not preempt and B does not clone, payoffs are (500, 0). If A does not preempt, B clones, and A fights, payoffs are (230, 90). Finally, if A does not preempt, B clones, and A shares, payoffs are (250, 150). (a) Describe all possible strategies for each firm. (b) Present the game in strategic form.(c) Identify all Nash Equilibria. (d) Which of the Nash Equilibria identified in (c) are subgame perfect? (e) What is your prediction regarding the how A and B will play this game?

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(a) Strategies for firms:A has two possible strategies:i) Preemptive Clause: A includes a preemptive clause in its employment contract.ii) No Preemptive Clause: A does not include a preemptive clause in its employment contract. B has two possible strategies:i) Clone: B decides to clone A's app.ii) Not Clone: B decides not to clone A's app.

(b) The game in strategic form: Firm A / Firm B | Clone | Not ClonePreempt | (170,-50) | (150, 50)Not Preempt | (230, 90) | (250,150)

(c) Nash Equilibria:A Nash equilibrium is a solution concept of a non-cooperative game, in which each player is assumed to know the equilibrium strategies of the other players, and no player has anything to gain by changing only their strategy.

The Nash Equilibria are: Firm A / Firm B | Clone | Not Clone Preempt | (170,-50) | (150, 50)Not Preempt | (230, 90) | (250,150)The Nash equilibria in this game are: (Preempt, Clone) and (Not Preempt, Not Clone).

(d) Subgame perfect Nash Equilibrium (SPNE):A subgame perfect Nash equilibrium is a refinement of a Nash equilibrium used in dynamic games.

A strategy profile is a subgame perfect Nash equilibrium if it represents a Nash equilibrium of every subgame of the original game. In this game, the only subgame occurs if A preempts. The subgame perfect Nash equilibrium is (Preempt, Clone). In this Nash equilibrium, if A preempts, B will clone, and then A will fight.

(e) Prediction on how A and B will play the game:When A does not preempt, B has a dominant strategy to clone the app, which leaves A with only one option: to fight. When A preempts, B has a dominant strategy to share the market, which leaves

A with two options: to fight or to share the market. When A fights, B gets a negative payoff, so B's best response is to share the market. Therefore, the only Nash equilibrium of the game is (Preempt, Clone), which means that A will include a preemptive clause in its employment contract, and B will clone the app.

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Langara Woodcraft borrowed money to purchase equipment. The loan is repaid by making payments of ​$1020.21 at the end of every year over seven years. If interest is 5.6​% compounded semi-annually​, what was the original loan​ balance?

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The original loan balance was $4866.62. Let’s suppose the original loan balance is P. Then the repayment of the loan is made in the form of 7 payments at the end of each year, with each payment being $1020.21.Therefore, the value of each payment can be written as: PV of an ordinary annuity = PMT x ((1 - (1 + r)^-n)/r) where, PMT = $1020.21 n = 7 r = 5.6%/2 (Semi-annual interest rate) P = ?

Here, the payment is made once in a year, which means it is not a semi-annual payment. Therefore, we have to find the present value of a single sum. So, the formula for the present value of a single sum is given as: PV of single sum = FV / (1 + r)n. We know the value of PMT, so we can calculate the FV of all the payments after 7 years.

After that, we can calculate the PV of the FV by using the formula of PV of a single sum. So, let's solve it. PMT = $1020.21 n = 7 r = 5.6%/2P = FV / (1 + r)n + PV of an ordinary annuity. Using the formula of PV of an ordinary annuity, we can write: PMT x ((1 - (1 + r)^-n)/r) = $1020.21 x ((1 - (1 + 0.056/2)^-14)/(0.056/2))= $6274.16.

Now, we can calculate the FV of all the payments by using the following formula: FV = PMT x (((1 + r)n - 1)/r)= $1020.21 x (((1 + 0.056/2)^14 - 1)/(0.056/2))= $7912.38. So, the present value of all the payments can be calculated as : PV = FV / (1 + r)n= $7912.38 / (1 + 0.056/2)^14= $7912.38 / 1.6247= $4866.62. Therefore, the original loan balance was $4866.62.

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Kaman Company purchased a building and land with a fair market value of $575,000 (building. $400,000 and land, $175,000) on January 1, 2024. Kaman signed a 25-year, 15% mortgage payable Kaman will make monthly payments of $7.364.78. Round to two decimal places. Explanations are not required for journal entries. Read the requirements m Requirement 1. Journalize the mortgage payable issuance on January 1, 2024. (Record debits first, then credits Exclude explanations from any journal entries) Date Accounts Debit Credit 2024 Jan 1 Graded ag Sun Question 5, EF14-19 (similar to) Part 1 of 4 Requirements ext pages 1. Journalize the mortgage payable issuance on January 1, 2024. 2. Prepare an amortization schedule for the first two payments. 3. Journalize the first payment on January 31, 2024 4. Journalize the second payment on February 28, 2024. Get more help. Print Done کے Pearson HW Score: 37%, O Points: 0 of - X la m Clear a

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Journalize the mortgage payable issuance on January 1, 2024: Mortgage Payable $575,000, Buildings $400,000, Land $175,000.

Journalize the mortgage payable issuance on January 1, 2024?

Here is the explanation for journalizing the mortgage payable issuance on January 1, 2024:

When a company issues a mortgage payable, it records the transaction in its accounting records to reflect the liability and the corresponding increase in the asset value. In this case, Kaman Company purchased a building and land with a fair market value of $575,000 on January 1, 2024, and obtained a 25-year, 15% mortgage payable.

To journalize this transaction, the following entry is recorded:

Date: January 1, 2024

Accounts Debit Credit

Building $400,000

Land $175,000

Mortgage Payable $575,000

The debit to the Building account represents the increase in the asset value of the building acquired.

The debit to the Land account represents the increase in the asset value of the land acquired.

The credit to the Mortgage Payable account represents the liability incurred by Kaman Company for the mortgage.

By recording this journal entry, the company recognizes the acquisition of the building and land and the corresponding mortgage payable obligation on its balance sheet.

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EPS in 2018 of Mobile Ltd is 2.4, and the forecasted EPS in 2019 is 2.1. It is known that Mobile Ltd has zero interest-bearing net debt. Below is the information for comparable companies of Mobile Ltd:
Company P/E-ratio based on EPS (2018) P/E-ratio based on EPS (2019)
Yup Ltd. 18,3 17,3
Okay Corp. 21,2 13,6
Nice Ltd. 22,1 17,6
Required: Calculate price for Mobile Ltd. when using the median forward P/E-ratio.

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The price for Mobile Ltd. using the median forward P/E ratio is $36.33.

What is the price for Mobile Ltd. using the median forward P/E ratio?

The median forward P/E ratio is calculated by taking the median value of the P/E ratios based on EPS for the comparable companies in both 2018 and 2019. In this case, the median forward P/E ratio is determined by taking the median of the P/E ratios for Yup Ltd., Okay Corp., and Nice Ltd. in 2019.

To calculate the price for Mobile Ltd., we use the formula: Price = EPS * P/E ratio. Given that the forecasted EPS for Mobile Ltd. in 2019 is 2.1, we can substitute this value into the formula along with the median forward P/E ratio of 17.3.

Price = 2.1 * 17.3 = $36.33

Therefore, the estimated price for Mobile Ltd. using the median forward P/E ratio is $36.33. This indicates the expected valuation of the company based on its forecasted earnings and the market's valuation of similar companies.

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Assume that the labor supply curve is upward sloping. Should the labor supply curve shift to the left or to the right if any of the following changes happen? Show each case in a graph.
(a) the dividends paid by the firms decrease (increase)?
(b) the government raises the lump sum taxes?
(c) the government introduces a proportionate labor income tax?

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A shift in how people view work and leisure can affect the labour supply curve. People will work fewer hours at each wage if they decide they value leisure more, which will cause the labour supply curve to move to the left.

The supply curve will move to the right when there are more workers. A rise in employment can be attributed to a variety of factors, including immigration, population growth, ageing populations, and shifting demographics.

The equilibrium price rises when the supply curve moves to the left and the demand curve to the right, but the equilibrium quantity may change depending on how far the two curves have moved.

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Find the internal rates of return on a cash flow with deposit amounts of A = 40, A₁ = 120, A₂ = 290, and withdrawal amounts of B₁ = 240, B₁ = 20, B₂ = 10, at times t = 0, t = 1, t = 2, respectively.

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The internal rates of return on a cash flow with deposit amounts of A = 40, A₁ = 120, A₂ = 290, and withdrawal amounts of B₁ = 240, B₁ = 20, B₂ = 10, at times t = 0, t = 1, t = 2, respectively is 20.65%.

To find the internal rates of return on a cash flow with deposit amounts of A = 40, A₁ = 120, A₂ = 290, and withdrawal amounts of B₁ = 240, B₁ = 20, B₂ = 10, at times t = 0, t = 1, t = 2, respectively, we need to find the present value of cash inflow and outflow at each time period t and then solve for the internal rate of return using the formula. Internal Rate of Return (IRR) is the discount rate that makes the net present value (NPV) of a series of cash flows from a project equal to zero.Present Value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return.

The cash flow is as follows:Time period t = 0A = 40B = 0Net cash flow = 40Time period t = 1A = 120B = 240Net cash flow = -120Time period t = 2A = 290B = 20 + 10 = 30Net cash flow = 260

To find the present value of cash flows, we need to discount them at a given rate of interest using the formula:PV = CF / (1 + r)twhere, CF = cash flow at time t, r = discount rate or interest rate, and t = time period

For time period t = 0:PV = 40 / (1 + r)0 = 40For time period t = 1:PV = -120 / (1 + r)1 = -120 / (1 + r)

For time period t = 2:PV = 260 / (1 + r)2Let us assume r as x and solve for IRR.IRR = x

Therefore, the equation becomes:40 - 120 / (1 + x) - 30 / (1 + x)2 = 0Solving for x using the trial and error method, we get:x = 0.2065 or x = 1.4276 or x = 3.0508Only one positive IRR can exist. Hence, the IRR is 20.65%.

Therefore, the internal rates of return on a cash flow with deposit amounts of A = 40, A₁ = 120, A₂ = 290, and withdrawal amounts of B₁ = 240, B₁ = 20, B₂ = 10, at times t = 0, t = 1, t = 2, respectively is 20.65%.

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two contribution format income statements, one showing present operations and one snowing now operations would appear in the new equipment is purchased. 2. Refer to the income statements in (1). For the present operations and the proposed new operations, compute (a) the degree of operating leverage, (b) the break-even point in dollar sales, and (c) the margin of safety in dollars and the margin of safety percentage. 3. Refer again to the data in (1). As a manager, what factor would be paramount in your mind in deciding whether to purchase the new equipment? (Assume that enough funds are available to make the purchase.) 4. Refer to the original data. Rather than purchase new equipment, the marketing manager argues that the company's marketing strategy should be changed. Rather than pay sales commissions, which are currently included in variable expenses, the company would pay salespersons fixed salaries and would invest heavily in advertising. The marketing manager claims this new approach would increase unit sales by 30% without any change in selling price; the company's new monthly fixed expenses would be $623,616; and its net operating income would increase by 20%. Compute the company's break-even point in dollar sales under the new marketing strategy. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Refer to the original data. Rather than purchase new equipment, the marketing manager argues that the company's marketing strategy should be changed. Rather than pay sales commissions, which are currently included in variable expenses, the company would pay salespersons fixed salaries and would invest heavily in advertising. The marketing manager claims this new approach would increase unit sales by 30% without any change in selling price; the company's new monthly fixed expenses would be $623,616; and its net operating income would increase by 20%. Compute the company's break-even point in dollar sales under the new marketing strategy. (Hint: figure out the new variable cost per unit by preparing the new contribution format income statement.) (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) New break even point in dollar sales Required 3 Required 4 $ 211,584 Show less A Problem 5-29 Changes in Cost Structure; Break-Even Analysis; Operating Leverage; Margin of Safety [LO5-4, LO5-5, LO5-7, LO5-8] Morton Company's contribution format income statement for last month is given below. Sales (48,000 units $29 per unit) Variable expenses Contribution margin Fixed expenses Net operating income. $ 1,392,000 974,400 417,600 334,080 83,520 $ The industry in which Morton Company operates is quite sensitive to cyclical movements in the economy. Thus, profits vary considerably from year to year according to general economic conditions. The company has a large amount of unused capacity and is studying ways of improving profits. Required: 1. New equipment has come onto the market that would allow Morton Company to automate a portion of its operations. Variable expenses would be reduced by $8.70 per unit. However, fixed expenses would increase to a total of $751,680 each month. Prepare two contribution format income statements, one showing present operations and one showing how operations would appear if the new equipment is purchased. 2. Refer to the income statements in (1). For the present operations and the proposed new operations, compute (a) the degree of operating leverage, (b) the break-even point in dollar sales, and (c) the margin of safety in dollars and the margin of safety percentage. 3. Refer again to the data in (1). As a manager, what factor would be paramount in your mind in deciding whether to purchase the new equipment? (Assume that enough funds are available to make the purchase.) 4. Refer to the original data. Rather than purchase new equipment, the marketing manager argues that the company's marketing strategy should be changed. Rather than pay sales commissions, which are currently included in variable expenses, the company would pay salespersons fixed salaries and would invest heavily in advertising. The marketing manager claims this new approach would increase unit sales by 30% without any change in selling price; the company's new monthly fixed expenses would be $623,616; and its net operating income would increase by 20%. Compute the company's break-even point in dollar sales under the new marketing strategy.

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Required 1 Present operations New operations Sales (48,000 units $29 per unit)$ 1,392,000$ 1,392,000Variable expenses 974,400 (48,000 units × $20.30)$ 415,200 (48,000 units × $11.60) Contribution margin$ 417,600$ 976,800 Fixed expenses 334,080751,680 .Net operating income$ 83,520$ 225,120

Required 2a) Degree of operating leverage:Degree of operating leverage = Contribution margin ÷ Net operating income Particulars Present operations New operations Contribution margin$ 417,600$ 976,800 Net operating income$ 83,520$ 225,120

Degree of operating leverage 5.00 times 4.34 times b) Break-even point in dollar sales:Break-even point in dollar sales = Fixed expenses ÷ Contribution margin ratio Particulars Present operations New operations Contribution margin ratio 0.30 times 0.70 times Fixed expenses

334,080751,680

Break-even point in dollar sales$ 1,113,600$ 1,073,829

c) Margin of safety:Margin of safety in dollars = Actual sales - Break-even sales Margin of safety percentage = Margin of safety in dollars ÷ Actual sales Particulars Present operations New operations

Beak-even sales$ 1,113,600$ 1,073,829 Actual sales 1,392,0001,392,000 Margin of safety in dollars$ 278,400$ 318,171 Margin of safety percentage 20%23%

Required 3 The factor which would be paramount in the manager's mind in deciding whether to purchase the new equipment is the increased net operating income and hence the profitability after the purchase. The manager would like to make sure that the new purchase would increase the profits.

Required 4 Particulars Present operations New operations Sales (48,000 units $29 per unit)$ 1,392,000$ 1,392,000 Variable expenses974,400 (48,000 units × $20.30)$ 303,600 (52,800 units × $5.75)Contribution margin$ 417,600$ 1,088,400 Fixed expenses 334,080957,296.

Net operating income$ 83,520$ 131,104 Break-even point in dollar sales = Fixed expenses ÷ Contribution margin ratio= $957,296 ÷ 0.30= $3,190,987 (rounded off to nearest dollar)Therefore, the new break-even point in dollar sales under the new marketing strategy would be $3,190,987.

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Computing and Recording Cost and Depreciation of Assets (Straight-Line Depreciation) LOB- 2,8-3 [The following information applies to the questions displayed below) Shahia Company bought a building for $84,000 cash and the land on which it was located for $109,000 cash. The company paid transfer costs of $11,000 ($5,000 for the building and $6,000 for the land) Renovation costs on the building before it could be used were $24,000

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The company paid $84,000 cash to purchase the building. The land on which it was located was bought for $109,000 cash.

The company also paid transfer costs of $11,000, which are divided into two: $5,000 for the building and $6,000 for the land. Before the building was used, the company paid $24,000 for renovation costs. In total, the company paid $228,000.The purchase cost of the land on which the building was located is $109,000. The company also spent $11,000 on transfer costs ($5,000 for the building and $6,000 for the land), which brings the total cost to $120,000. After the renovation costs of $24,000, the total cost of the building and land is now $144,000. The straight-line depreciation method is a common method of depreciation used in accounting that is used to depreciate the value of an asset over its useful life. This method assumes that an asset will lose an equal amount of value each year. To calculate straight-line depreciation, you need to subtract the salvage value from the cost of the asset, and then divide that amount by the useful life of the asset. The salvage value is the amount that the asset is expected to be worth at the end of its useful life.

For example, if the cost of the asset is $144,000 and its salvage value is $24,000, and its useful life is 10 years, then the annual straight-line depreciation expense would be ($144,000 - $24,000) / 10 = $12,000 per year.
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Which of the following is "not" true about the U.S. money supply? 1) it is managed by the Federal Reserve System O2) includes credit card balances 3) includes M1 and M2 4) is a form of debt or IOU's

Answers

The statement that is not true about the US money supply is "includes credit card balances".Credit card balances are not included in the U.S. money supply.

This is the statement that is not true about the U.S. money supply. Credit card balances are a form of consumer debt that is not considered a part of the U.S. money supply. They are included as a component of consumer credit or loans. M1 and M2 are components of the U.S. money supply. M1 includes currency, demand deposits, and traveler's checks. M2 includes everything in M1 plus savings deposits, small time deposits, and money market mutual funds with balances of less than $100,000.

The U.S. money supply is managed by the Federal Reserve System which regulates the monetary policy and provides the nation with a stable and flexible monetary system.

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Sanders LLC purchased new packaging equipment with an estimated useful life of five years. The cost of the equipment was $30,000, and the salvage value was estimated to be $3,000 at the end of five years. Compute the annual depreciation expenses through the five-year life of the equipment under each of the following methods of book depreciation: (a) The straight-line method. (b) The double-declining-balance method. (c) If switching to the straight-line method is allowed, when is the optimal time to switch

Answers

If the switching method is allowed, the optimal time to switch is at the end of year 4.Given:Cost of equipment = $30,000 Salvage value = $3,000 Useful life = 5 years Depreciation methods:

a) Straight-line method.b) Double-declining-balance method.c) Switching method

a) Straight-line method

Straight-line depreciation method is a method of depreciation where an equal amount of depreciation is charged in each year. The depreciation expense under the straight-line method is calculated using the following formula:Depreciation expense

= (Cost of the asset – Salvage value)/Useful life

= (30,000 - 3,000)/5

= $5,400 per year

.b) Double-declining-balance method

The double-declining-balance method of depreciation is a method of depreciation where the depreciation expense is calculated as a percentage of the book value of the asset. The percentage rate is double the rate used in the straight-line method. The formula for calculating depreciation expense under the double-declining-balance method is:

Depreciation expense = (Book value of the asset) x (2/Useful life)

For year 1:

Depreciation expense = (30,000 x 2/5) = $12,000

For year 2:Depreciation expense = (30,000 - 12,000) x 2/5

= $7,200

For year 3:Depreciation expense = (30,000 - 12,000 - 7,200) x 2/5

= $4,320

For year 4:Depreciation expense = (30,000 - 12,000 - 7,200 - 4,320) x 2/5 = $2,592

For year 5:Depreciation expense = (30,000 - 12,000 - 7,200 - 4,320 - 2,592) x 2/5 = $1,557.6

c) Switching method

Under the switching method, the company switches from the double-declining-balance method to the straight-line method of depreciation. The optimal time to switch is when the straight-line method gives a higher depreciation expense than the double-declining-balance method. The following table shows the depreciation expenses under both the methods:

Year  Depreciation expense (double-declining-balance)  Depreciation expense (straight-line)

1$12,000 $5,400

2$7,200 $5,400

3$4,320 $5,400

4$2,592  $5,400

5$1,557.6 $5,400

From the table, we can see that the optimal time to switch is at the end of year 4. At the end of year 4, the book value of the asset is $7,200, and the remaining useful life is 1 year. If the company switches to the straight-line method, the depreciation expense for year 5 would be:

$5,400 + [($7,200 - $3,000)/1] =$9,600

Therefore, the depreciation expenses for the 5-year life of the equipment under each of the methods of book depreciation are:

Straight-line method: $5,400 per yearDouble-declining-balance method: Year 1 - $12,000, Year 2 - $7,200, Year 3 - $4,320, Year 4 - $2,592, Year 5 - $1,557.

6If the switching method is allowed, the optimal time to switch is at the end of year 4.

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a) On 1st November 2021, Katherine received a birthday gift of a limited-edition white T-shirt from her father. On the same day, Katherine took this white T-shirt to Honest Cleaning Limited for cleaning. Honest Cleaning Limited is an old laundry company, it starts to operate on 1st March 2015 but Katherine never been there for cleaning clothes before. Katherine asked the owner if there was any exclusion clause or notice relating to the service of the company. The owner said he did not know. The owner of Honest Cleaning Limited gave a receipt to Katherine after receiving the payment of the cleaning fee of HK$650. At the back of the receipt there was a clause:
"Honest Cleaning Limited accepts no responsibility for any loss of or any damage to any customers’ clothes given to us for cleaning, caused by whatever reasons including the negligence of our staff".
On 9th November 2021, after returning back to Hong Kong from Singapore, Katherine went to Honest Cleaning Limited to get back his white T-shirt. In a surprise, she discovered that there were many red dots on her white T-shirt. Advise Katherine her legal rights in relation to Contract law. (15 marks)

Answers

Yes, Katherine has legal rights under contract law to seek compensation for the damage caused to her white T-shirt.

When Katherine requested the cleaning of her white T-shirt from Honest Cleaning Limited, she had entered into a contract with the company. However, the contract has to be examined to determine if Honest Cleaning Limited has any liability for the damage caused to Katherine's white T-shirt, which occurred after she had paid for and entrusted it to Honest Cleaning Limited for cleaning. Katherine has some legal rights under contract law, which are as follows: Contract Terms- Katherine had requested Honest Cleaning Limited to clean her white T-shirt; thus, the company agreed to provide cleaning services, and Katherine paid the service fee.

Therefore, there is a contract between Katherine and Honest Cleaning Limited. The back of the receipt issued by the owner of Honest Cleaning Limited contains a clause limiting the company's responsibility for any loss or damage, including that caused by its employees' negligence. However, such a clause cannot be incorporated into a contract unless it is brought to the attention of the other party and accepted by them (Parker v South Eastern Railway Co (1877)). Hence, if Katherine was not made aware of this clause and did not agree to it, it cannot be included in the contract.

Liability of the Defendant- Honest Cleaning Limited had a duty of care to prevent damage or loss of Katherine's white T-shirt while providing cleaning services. The company, however, failed to fulfill this obligation and caused red dots on Katherine's white T-shirt, which had to be compensated. Even if there was a clause at the back of the receipt, Honest Cleaning Limited could not rely on it to exempt itself from its liability for the damage caused. According to the Unfair Contract Terms Ordinance (Cap. 623), such a clause may be considered unfair, and the court may rule it void. As a result, Katherine can seek compensation from Honest Cleaning Limited, as it has breached its contractual obligations.Limitation of Liability- A clause limiting liability in a contract is acceptable as long as it meets the requirement of reasonableness under Section 3 of the Unfair Contract Terms Ordinance (UCTO). Since this clause is not reasonable, it cannot be relied upon by Honest Cleaning Limited. According to Section 6(2) of the UCTO, an unreasonable clause cannot be incorporated into a contract, and if it is, it is deemed void. Therefore, Honest Cleaning Limited cannot rely on the clause to exempt itself from liability.

Conclusion- Katherine can claim compensation from Honest Cleaning Limited for the red dots on her white T-shirt since the company has breached its contractual obligations. Honest Cleaning Limited cannot rely on the clause at the back of the receipt to avoid liability since it is not reasonable and was not accepted by Katherine. Thus, Katherine has legal rights under contract law to seek compensation for the damage caused to her white T-shirt.

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For the entries below, identify the account to be debited and the account to be credited. Indicate which of the accounts is the income statement account and which is the balance sheet account. Assume the company records prepayments of expenses in asset accounts, and cash receipts of unearned revenues in liability accounts.
a. Entry to record services revenue earned that was previously received as cash in advance.
b. Entry to record services revenue earned but not yet billed or recorded.
c. Entry to record annual depreciation expense.
d. Entry to record interest revenue earned but not yet collected (nor recorded)
e. Entry to record janitorial expense incurred but not yet paid

Answers

Liability accounts are a category of accounts in the financial statements that represent obligations or debts owed by a company to external parties. These accounts reflect the company's obligations to repay borrowed funds, make future payments, or provide goods or services in the future

a. Debit: Unearned Revenue (Liability Account)

Credit: Services Revenue (Income Statement Account)

b. Debit: Accounts Receivable (Asset Account)

Credit: Services Revenue (Income Statement Account)

c. Debit: Depreciation Expense (Income Statement Account)

Credit: Accumulated Depreciation (Balance Sheet Account)

d. Debit: Accounts Receivable (Asset Account)

Credit: Interest Revenue (Income Statement Account)

e. Debit: Janitorial Expense (Income Statement Account)

Credit: Accounts Payable (Liability Account)

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Broussard Skateboard's sales are expected to increase by 25% from $8.2 million in 2019 to $10.25 million in 2020. Its assets totaled $4 million at the end of 2019.

Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 5%, and the forecasted payout ratio is 70%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Do not round intermediate calculations. Round your answer to the nearest dollar.

Answers

The Additional Funds Needed (AFN) equation is used to determine the amount of money required to finance an increase in assets that exceeds an increase in spontaneous liabilities and retained earnings. According to the question, Broussard Skateboard's sales are expected to increase by 25% from $8.2 million in 2019 to $10.25 million in 2020.

Its assets totaled $4 million at the end of 2019, and Broussard is already at full capacity, so its assets must grow at the same rate as projected sales.Below is the given information,Current assets = $4,000,000Sales forecasted for the year 2020 = $10,250,000After-tax profit margin = 5%Payout ratio = 70%Current liabilities = $1,400,000This implies that the Total Assets for the year 2020 will be:

Total assets = (1 + increase in sales) x Current assets Total assets = (1 + 0.25) × $4,000,000Total assets = $5,000,000The spontaneous liabilities, in this case, will be: Spontaneous liabilities = Accounts payable + Notes payable + AccrualsSpontaneous liabilities = $450,000 + $500,000 + $450,000Spontaneous liabilities = $1,400,000

So, the amount of Additional Funds Needed (AFN) required to finance this growth is given by the AFN equation:AFN = (A*/S0)ΔS - (L*/S0)ΔS - MS1 (RR)AFN = ($5,000,000/$8,200,000)($10,250,000 - $8,200,000) - ($1,400,000/$8,200,000)($10,250,000 - $8,200,000) - (0.05)($10,250,000)(0.7)AFN = $2,087,805.4 - $340,243.9 - $358,750AFN = $1,388,811.5

Thus, the Additional Funds Needed (AFN) required to finance this growth is $1,388,811.5, which is to be rounded to the nearest dollar, giving us a final answer of $1,388,812.

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As of the end of June, the job cost sheets at Racing Wheels, Inc., show the following total costs accumulated on three custom jobs. Job 102 Job 103 Job 104 Direct materiale Direet labor Overhead applied $17,000 $49,000 $59,000 12,000 28,300 43,000 5,160 12,169 18,490 49 Job 102 was started in production in May, and the following costs were assigned to it in May: direct materials, $12,000, direct labor, $3,500; and overhead, $1,505. Jobs 103 and 104 were started in June. Overhead cost is applied with a predetermined rate based on direct labor cost. Jobs 102 and 103 were finished in June, and Job 104 is expected to be finished in July. No raw materials were used indirectly in June. Using this information, answer the following questions. (Assume this company's predetermined overhead rate did not change across these months) 182. Complete the table below to calculate the cost of the raw materials requisitioned and direct labor cost incurred during June for each of the three jobs? 3. Using the accumulated costs of the jobs, what predetermined overhead rate is used? 4. How much total cost is transferred to finished goods during June? Complete this question by entering your answers in the tabs below. Rea and 2 Reg 3 Heq 4 Heg 1 and 2 Complete the table below to calculate the cost of the raw materials requisitioned and direct labor cost incurred during June for each of the three jobs. Direct Materials Job May June Total 102 103 104 Total Direct Labor. Job Total 102 103 104 Total May June the cost the raw materials requisitioned and direct labor cost incurred during each of the three jobs? 3. Using the accumulated costs of the jobs, what predetermined overhead rate is used? 4. How much total cost is transferred to finished goods during June? Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req 4 Using the accumulated costs of the jobs, what predetermined overhead rate is used? Overhead Rate 1 Choose Denominator: Overhead Rate Choose Numerator: Job 102 1 Overhead rate 1 Job 103 1 Overhead rate Job 104 Overhead rate 1 1 1 < Req 1 and 2 = = = = Req 4 > www. 4. How much total cost is transferred to finished goods during June? Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Req How much total cost is transferred to finished goods during June? Direct Job Direct Materials Applied Overhead Total Cost Cost Transferred to Finished Goods Labor 102 $ 17,000 $ 12,000 103 49,000 28,300 104 59,000 43,000 Total 83,300

Answers

The total cost transferred to finished goods during June is calculated as follows:

Total Cost Transferred = Direct Materials + Direct Labor + Overhead Applied

Job 102 = $17,000 + $5,000 + $1,308 = $23,308Job 103 = $49,000 + $28,300 + $24,707 = $102,007

Job 104 = $59,000 + $59,000 + $10,613 = $128,613.

Total = $253,928

Therefore, the total cost transferred to finished goods during June is $253,928.

Direct Materials: Direct materials are the raw materials that are utilized in creating a product. They include materials that are consumed during the manufacturing process. Direct labor costs are the wages and benefits paid to employees who are directly involved in the production of goods or services. Overhead Applied: Manufacturing overhead, also known as factory overhead or production overhead, is the indirect cost of producing goods in a manufacturing environment. Predetermined Overhead Rate :A predetermined overhead rate is a measure used to allocate overhead costs to products or services. Total Costs Accumulated: The job cost sheets at Racing Wheels, Inc., as of the end of June, show the following total costs accumulated on three custom jobs. Direct materials Direct labor Overhead applied Job 102 $17,000 $12,000 $5,160 Job 103 $49,000 $28,300 $12,169 Job 104 $59,000 $43,000 $18,490 182. The table below is completed to calculate the cost of raw materials requisitioned and direct labor cost incurred during June for each of the three jobs. Direct Materials Job May June Total 102 $12,000 $5,000 $17,000 103 $0 $49,000 $49,000 104 $0 $59,000 $59,000 Total $12,000 $113,000 $125,000 . Direct Labor Job May June Total 102 $3,500 $1,500 $5,000 103 $0 $28,300 $28,300 104 $0 $12,169 $12,169 Total $3,500 $41,969 $45,469 The accumulated costs of the jobs determine the predetermined overhead rate. Therefore, for Racing Wheels, Inc., the predetermined overhead rate is used to allocate overhead to jobs based on direct labor costs. Overhead rate = Overhead costs / Direct labor costs, Overhead rate = $36,619 / $41,969Overhead rate = 0.872 (rounded to three decimal places)Using this overhead rate, Racing Wheels, Inc. can allocate overhead costs to each job as follows:Overhead Applied = Overhead Rate x Direct Labor Costs; Overhead Applied Job 102 = 0.872 x $1,500 = $1,308; Overhead Applied Job 103 = 0.872 x $28,300 = $24,707; Overhead Applied Job 104 = 0.872 x $12,169 = $10,613 The total cost transferred to finished goods during June is calculated as follows: Total Cost Transferred = Direct Materials + Direct Labor + Overhead Applied; Job 102 = $17,000 + $5,000 + $1,308 = $23,308 ; Job 103 = $49,000 + $28,300 + $24,707 = $102,007; Job 104 = $59,000 + $59,000 + $10,613 = $128,613. Total = $253,928Therefore, the total cost transferred to finished goods during June is $253,928.

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Dymac Appliances uses the periodic inventory system. Details regarding the inventory of appliances at January 1, purchases invoices during the next 12 months, and the inventory count at December 31 are summarized as follows:

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Dymac Appliances is a company that employs a periodic inventory system. The company's inventory of appliances at the start of the year, the invoices for purchases made over the next twelve months, and the inventory count at the end of the year are all important details that have been presented.

These data are critical for calculating the cost of goods sold (COGS) and determining the company's gross profit, which are the two main objectives of accounting for inventory costs.The periodic inventory system is one of two inventory systems utilized by organizations.

This inventory system works by calculating the cost of goods sold (COGS) at the end of the accounting period based on the difference between the company's beginning inventory and ending inventory plus purchases made during the accounting period.

The COGS formula is: COGS = Beginning Inventory + Purchases - Ending Inventory.To determine the cost of goods sold (COGS) using the periodic inventory system for Dymac Appliances, we need the following data:Beginning inventory at January 1 Purchases invoices during the next 12 months. Inventory count at December 31.

Firstly, we need to determine the cost of goods available for sale, which is the sum of the beginning inventory and the purchases made throughout the year.

Cost of goods available for sale = Beginning Inventory + PurchasesSecondly, the inventory count at the end of the year is subtracted from the cost of goods available for sale to calculate the cost of goods sold (COGS). COGS = Beginning Inventory + Purchases - Ending InventoryBy following the above formula, Dymac Appliances can calculate their cost of goods sold (COGS) and their gross profit, which is the difference between net sales and COGS.

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Following Russia’s invasion of Ukraine, the European Union adopted a number of sanctions in an attempt to immobilize the war effort. These sanctions will have an impact on own economies of the EU.

What are these sanctions?
How will they affect inflation in the EU? Real GDP? Unemployment? Graphical and descriptive analyses are required.

Answers

The European Union implemented several sanctions following Russia's invasion of Ukraine. These sanctions will have implications for the EU's economy, affecting inflation, real GDP, and unemployment.

The European Union enacted sanctions in reaction to Russia's invasion of Ukraine that affect a number of industries, including commerce, energy, finance, and the military. Energy sanctions place limits on investments in the Russian oil and gas industries, while financial penalties prevent Russian businesses from accessing EU capital markets. Embargoes on the export of weapons and items used in the military are also in place. These measures are intended to pressure Russia and halt the war effort.

These penalties may have two different effects on inflation in the EU. On the one hand, trade and energy limitations can result in supply chain disruptions and higher input costs, which might raise prices. On the other hand, the sanctions-related global economic slump may stifle consumer demand, reducing inflationary pressures.

The sanctions will probably have a detrimental impact on real GDP. Reduced investment and trade with Russia, as well as supply chain disruptions, may result in lower levels of economic activity and output. Industries that depend substantially on Russian markets or resources would see considerable losses, which would have an effect on the EU's overall GDP.

The sanctions may also have an impact on unemployment. Defense and other sectors with direct ties to Russia, such energy, may experience job losses as a result of falling demand and investment. Additionally, if the overall economic slowdown continues, businesses in a variety of industries may need to reduce their workforces or stop hiring altogether, which would raise unemployment rates.

It is necessary to conduct graphical and descriptive analysis to offer a more thorough evaluation of the effects of these sanctions. Plotting inflation rates over time, contrasting GDP growth before and after the sanctions, and monitoring changes in unemployment rates are some examples of these investigations.

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Green Forest Corp.'s 2020 income statement showed the following: profit, $290,600; depreciation expense, building, $33,000; depreciation expense, equipment, $6,530; and gain on sale of equipment, $5,000. An examination of the company's current assets and current liabilities showed that the following changes occurred because of operating activities: accounts receivable decreased $14,450; merchandise inventory decreased $41,000; prepaid expenses increased $2,930; accounts payable decreased $7,330; and other current payables increased $1,090. Use the indirect method to calculate the cash flow from operating activities.

Answers

Cash flow from operating activities by indirect method is:

Net income: $290,600

Add back non-cash expenses:

Depreciation expense, building: $33,000

Depreciation expense, equipment: $6,530

Subtract gain on sale of equipment: ($5,000)

Adjust for changes in current assets and liabilities:

Accounts receivable: +$14,450

Merchandise inventory: +$41,000

Prepaid expenses: ($2,930)

Accounts payable: ($7,330)

Other current payables: +$1,090

Cash flow from operating activities: $371,410

Therefore, the cash flow from operating activities is $371,410.

To calculate the cash flow from operating activities using the indirect method, the net income is adjusted for non-cash expenses such as depreciation and amortization, and gains or losses on the sale of assets. Then, changes in current assets and liabilities are adjusted for to reflect the actual cash flows from operating activities. Increase in Current liabilities is added and Decrease in Current Assets is added back while Decrease in Current liabilities  is subtracted and Increase in Current Assets is subtracted back from net income.

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Jaden (single) has a traditional IRA to which he has made only deductible contributions. At the end of 2022, Jaden is 74 years old. Jaden's required minimum distribution (RMD) from his IRA for 2022 is $5,200. Before considering the RMD, Jaden's AGI is $102,000. Jaden does not itemize deductions. a. What is Jaden's AGI if Jaden receives the RMD and donates the $5,200 distribution proceeds to a qualifying charity? b. What is Jaden's AGI if Jaden directs the IRA trustee to transfer the $5,200 distribution directly to a qualifying charity as a qualified charitable donation (QCD)?

Answers

a) The value of Jaden's AGI would be $96,800.

b) Jaden's AGI will be $102,000 Jaden directs the IRA trustee to transfer the $5,200 distribution directly to a qualifying charity as a qualified charitable donation (QCD).

a. Jaden's AGI if he donates the $5,200 distribution proceeds to a qualifying charity

After considering the $5,200 distribution proceeds for a qualifying charity, Jaden's AGI would be $96,800.

b. Jaden's AGI if he transfers $5,200 to a qualified charitable donation (QCD)

If Jaden transfers $5,200 to a qualified charitable donation (QCD), Jaden's AGI will be $102,000, the same as it was before the qualified charitable distribution.

So, if he directly transfers his RMD to a qualified charity as a qualified charitable donation (QCD), it would not be taxable.

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Identify all of the methods used to mitigate agency problems (select all correct answers).

1). Replace a board of directors with proxy voting

2). Give management resources to spend on personal items

3). Pay managers with stock options

4). Takeover threat by another firm

5). Make the CEO the chairman of the board of directors

Answers

Pay managers with stock options and takeover threat by another firm are the methods used to mitigate agency problem

The methods used to mitigate agency problem,

Limiting the likelihood of financial incentives that create conflicts of interest is a straightforward technique to reducing agency difficulties. When the agent's financial benefit is related to the product or service they provide, there is a greater chance that they will not behave in your best interests in order to make more money.

Stock options are used to compensate managers. This is because it relates managerial compensation to the company's success and stock price, it aligns their interests with those of shareholders. Managers may be encouraged to operate in the best interests of the shareholders as a result of this.

Similarly, the fear of being taken over by another company might serve as a disciplinary mechanism to alleviate agency difficulties. It puts management under pressure to enhance performance and shareholder value in order to avoid a takeover.

Hence the correct answers are  pay managers with stock options and takeover threat by another firm.

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The Federal Deposit Insurance Corporation insures deposits up to $250,000 per person per financial institution. Suzanne has $502,000 in a joint account with her husband, Ted. How much is not covered by FDIC insurance?

rev: 09_17_2020_QC_CS-228901

Multiple Choice

a. $250,000
b. $3,050
c. $0
d. $1,000
e. $566,500

Answers

The Federal Deposit Insurance Corporation insures deposits up to $250,000 per person per financial institution. Suzanne has $502,000 in a joint account with her husband, Ted. $566,500  is not covered by FDIC insurance.

The correct answer is option e.

The Federal Deposit Insurance Corporation (FDIC) provides deposit insurance coverage up to $250,000 per person per financial institution. In the case of Suzanne and her joint account with her husband, Ted, the FDIC coverage limit applies to each individual's share of the joint account.

In a joint account, the FDIC considers each co-owner's share of the account as equal unless stated otherwise. Therefore, for Suzanne and Ted's joint account, each of them would be considered to own 50% of the account balance.

Suzanne's share of the joint account would be $502,000 / 2 = $251,000. This amount exceeds the FDIC insurance coverage limit of $250,000 per person per financial institution.

Since Suzanne's share of the joint account exceeds the coverage limit, the portion exceeding the coverage would not be insured by the FDIC. Therefore, the amount not covered by FDIC insurance would be the difference between Suzanne's share and the coverage limit:

Amount not covered = Suzanne's share - FDIC coverage limit

Amount not covered = $251,000 - $250,000

Amount not covered = $1,000

Hence, $1,000 is not covered by FDIC insurance. The remaining $251,000 in Suzanne's share (equal to Ted's share) would be covered by FDIC insurance, resulting in a total coverage of $250,000 per person per financial institution.

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Small cap stocks have a market capitalization of less than $2
billion
Group of answer choices
True OR False

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True Small cap stocks have a market capitalization of less than $2 billion. Small-cap companies are often called "micro-cap" stocks, and they are businesses with a total market capitalization of less than $2 billion.

These companies are frequently in their early phases and are considered riskier than larger businesses. The majority of these companies are often young and in the development phase, with much less revenue and higher volatility. They may often have less analyst coverage, making them more difficult to evaluate.

But in certain situations, they may provide the chance for a greater return on investment because they have the potential to grow rapidly as they grow in size.Small-cap businesses frequently operate in niche markets and may be focused on a specific sector or market. Although small-cap stocks have a greater risk of failure than large-cap companies, they also have the potential for larger gains. The greater the risk, the greater the potential rewards. These firms have the potential to grow into larger, more profitable companies with larger market caps with continued success and growth.

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Which is the most likely cause of the spike in cotton production in Mississippi in the mid-1800s

Answers

The most likely cause of the spike in cotton production in Mississippi in the mid-1800s was the widespread adoption of slave labor and the expansion of plantation agriculture.

During that time, Mississippi became one of the leading cotton-producing states in the United States. The availability of fertile land and a favorable climate for cotton cultivation further contributed to this growth.

Cotton was a highly profitable cash crop, and plantation owners in Mississippi sought to maximize their profits by expanding their cotton plantations. To meet the increasing demand, they relied heavily on slave labor, which was prevalent in the southern states during this period. Slavery provided a cheap and abundant workforce that allowed for large-scale cotton production.

The invention of the cotton gin by Eli Whitney in the late 18th century also played a significant role in the expansion of cotton production. The cotton gin made the process of separating cotton fibers from the seeds much more efficient, increasing the profitability and feasibility of cultivating cotton on a large scale.

Overall, the combination of favorable geographical conditions, the profitability of cotton, and the widespread use of slave labor were the primary factors behind the spike in cotton production in Mississippi during the mid-1800s.

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52F%252Fnewconnect %252F#/activity/q... Help Save & Exit - Chapters 1 to 4 i Saved Natalie Gold is the owner of the marketing agency Vivid Voice. The company focuses on online consultin

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1. Effects of activities listed in (a) through (h):

(a) Collected $940 from a credit customer.

Increase in Cash: $940

Increase in Accounts Receivable: $940

Explanation of equity transaction: No Affect on Equity

(b) Paid $3,200 for equipment purchased on account in June.

Decrease in Equipment: $3,200

Decrease in Accounts Payable: $3,200

Explanation of equity transaction: No Affect on Equity

(c) Did work for a client and collected cash; $2,500.

Increase in Cash: $2,500

Increase in Revenue: $2,500

Explanation of equity transaction: Revenue

(d) Paid a part-time consultant’s wages; $1,090.

Decrease in Cash: $1,090

Decrease in Expenses: $1,090

Explanation of equity transaction: Expenses

(e) Paid the July rent; $2,600.

Decrease in Cash: $2,600

Decrease in Expenses: $2,600

Explanation of equity transaction: Expenses

(f) Paid the July utilities; $1,300.

Decrease in Cash: $1,300

Decrease in Expenses: $1,300

Explanation of equity transaction: Expenses

(g) Performed services for a customer on credit; $2,300.

Increase in Accounts Receivable: $2,300

Increase in Revenue: $2,300

Explanation of equity transaction: Revenue

(h) Called an information technology consultant to fix the agency’s photo editing software in August; it will cost $490.

Increase in Expenses: $490

Decrease in Cash: $490

Explanation of equity transaction: Expenses

Liabilities refer to the financial obligations or debts that a company or individual owes to external parties. They represent the claims against the company's assets and can include accounts payable, loans, accrued expenses, and other outstanding obligations. Liabilities are recorded on the balance sheet and reflect the financial responsibilities that need to be fulfilled in the future.

2. Income statement for July 2020:

Revenue:

Service Revenue: $2,500 + $2,300 = $4,800

Expenses:

Wages Expense: $1,090

Rent Expense: $2,600

Utilities Expense: $1,300

IT Consultant Expense: $490

Net Income:

Net Income = Revenue - Expenses

Net Income = $4,800 - ($1,090 + $2,600 + $1,300 + $490)

3. Statement of changes in equity for July 2020:

Natalie Gold, Capital:

Beginning Capital: $15,800

Add: Net Income

Deduct: Owner Withdrawal (if any)

4. Balance sheet for July 2020:

Assets:

Cash: $7,400 (Beginning balance) + $940 (Collection from credit customer) + $2,500 (Cash collected from client) - $3,200 (Payment for equipment) - $1,090 (Consultant's wages) - $2,600 (Rent payment) - $1,300 (Utilities payment) - $490 (IT consultant cost)

Accounts Receivable: $2,600 (Beginning balance) + $2,300 (Services performed on credit) - $940 (Collection from credit customer)

Supplies: $3,300 (Beginning balance)

Equipment: $7,900 (Beginning balance) - $3,200 (Payment for equipment)

Liabilities:

Accounts Payable: $5,400 (Beginning balance) - $3,200 (Payment for equipment)

Equity:

Natalie Gold, Capital: Beginning balance + Net Income - Owner Withdrawal

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Your question is incomplete; most probably, your complete question is this:

Natalie Gold is the owner of the marketing agency Vivid Voice. The company focuses on online consulting services, such as online marketing campaigns and blog services. The June transactions for Vivid Voice resulted in totals at June 30, 2020, as shown in the following accounting equation format: Assets = Liabilities + Equity Cash + Accounts Receivable + Supplies + Equipment = Accounts Payable + Natalie Gold,Capital Explanation of Equity Transaction $7,400 + $2,600 + $3,300 + $7,900 = $5,400 + $15,800 During July, the following occurred: Collected $940 from a credit customer. Paid $3,200 for equipment purchased on account in June. Did work for a client and collected cash; $2,500. Paid a part-time consultant’s wages; $1,090. Paid the July rent; $2,600. Paid the July utilities; $1,300. Performed services for a customer on credit; $2,300. Called an information technology consultant to fix the agency’s photo editing software in August; it will cost $490. 1. Show the effects of the activities listed in (a) through (h). For each transaction that affects equity, select the appropriate description beside it (owner investment, owner withdrawal, revenue, expenses provided in the dropdown). (Enter all amounts as positive values. If the transaction/event does not affect equity or does not require a journal entry, select "No Affect on Equity" in the 'Explanation of equity transaction' field.) 2. Prepare an income statement for July 2020. 3. Prepare a statement of changes in equity for July 2020. 4. Prepare an balance sheet for July 2020. Analysis Component: Review Gold’s balance sheet. How much of the assets are financed by Gold? How much of the assets are financed by debt? (Do not round intermediate calculations.)

10. The figure below represents different possible values of the future price per share (P) of a company's stock. P P* p*, represents the current (today's) price per share. Assuming the vertical dista

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The company is a monopolist, it will charge the highest price that the demand curve allows and still sell the highest quantity.

A horizontal line that intersects the vertical axis at $P^*$ is added to the graph of the possible future prices per share of a company's stock. Let's learn more about it. The horizontal line intersects the vertical axis at P*.If the horizontal line that is a part of the possible future prices per share of a company's stock graph intersects the vertical axis at P*, then it represents the constant marginal cost of producing the company's product. If the company's marginal cost is constant, then its price is solely determined by the intersection of demand and supply. The addition of a horizontal line that intersects the vertical axis at P* to the graph of the possible future prices per share of a company's stock implies that the marginal cost of producing the company's product is constant at a price per unit of P*. Therefore, if the company is a monopolist, it will charge the highest price that the demand curve allows and still sell the highest quantity. Since the company is a monopolist, it will charge the highest price that the demand curve allows and still sell the highest quantity.

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