The following are the benefits that the law provides to business corporations:
Personal property protection- because the proprietors will have limited accountability for the debts of the company and commitments, lenders will not go for their property funds if the firm cannot give them the money.It is simple to obtain funds by selling stock, allowing the firm to develop by acquiring additional investors.The following are extra responsibilities that a business entity has to the public:
The business company is required to practise Corporate Responsibility, often referred as CSR, which is defined as the public's legal, moral, or political demand of a corporate enterprise. This indicates that the organisation will engage in certain ethical, moral, and charitable actions to assist better the lives of the people in the communities where they operate.This can take the shape of building roads, clinics, schools, bridges, planting trees, or any other operation that benefits society but does not generate a return for the business.
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The following balance sheet accounts (in millions of dol- lars) have been taken from the annual report for a U.S. bank. Arrange the accounts in balance sheet order and determine the value of total assets. Based on the balance sheet structure, would you classify this bank as a community bank, regional bank, or a money center bank?
Premises $1,078
Savings deposits 3,292
Cash 2,660
NOW accounts 12,816
Long-term debt 1,191
Other assets 1,633
Other time deposits 2,333
Net loans $29,981
Short-term borrowing 2,080
Other liabilities 778
Equity 3,272
Investment securities 6,092
Demand deposits 5,939
Certificates of deposit
(under $100,000) 9,853
Federal funds sold 110
The bank should be treated as a community bank.
The computation is as follows:
Total Assets = Premises+ Cash + Other assets + Net Loans + Investment securities + Federal funds sold
= $1,078 + $2,660 + $1,633 + $29,981 + $6,092 + $110
= $41,554 in Millions
Since the bank is a small regional bank that contains total assets of $41.5 billion so if this is the $41.5 million so it should be treated as the community bank.
Therefore we can conclude that the bank should be treated as a community bank.
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Suppose that in the rice market demand shifts due to a new rice diet that is being marketed in the U.S. as a cure for cancer. Simultaneously the supply curve shifts due to a flood that affects the rice crop in California. What is the most likely outcome in this situation
Answer:
The equilibrium price will increase
Explanation:
Equilibrium price is defined as the price at which the quantity demanded and quantity supplied are equal.
At this point there is no excess demand or supply, they are both equal.
I'm the given scenario the new rice diet that is being marketed in the U.S. as a cure for cancer will lead to increase in demand for rice.
While a flood that affects the rice crop in California will reduce the ability of suppliers to supply. Leading to reduced quantities supplied to the market.
This results in increased prices for the now scarce rice in the economy
It is illustrated in the attached diagram where price increases from P1 to P2.
The new equilibrium quantity is Q1
Kinder Enterprises relies heavily on a copier machine to process its paperwork. Recently the copy clerk has not been able to process all the necessary copies within the regular work week. Management is considering updating the copier machine with a faster model.
Current Copier New Model
Original purchase cost $10,000 $20,000
Accumulated depreciation 8,000
Answer and Explanation:
The computation is shown below:
a.
Particulars Retain Machine Replace Machine Net Income
Operating costs $35,000 $13,000 $22,000
(7,000 × 5 years) (2,600 × 5)
New machine cost 0 20,000 (20,000)
Salvage value 0 (1,000) 1,000
Totals $35,000 $32,000 $3,000
b.
The current copier should be replaced. As the incremental analysis represent the net income should be more than $3,000 as compared with replacing one
A foreign company has offered to buy 85 units for a reduced sales price of $350 per unit. The marketing manager says the sale will not affect the company's regular sales. The sales manager says that this sale will require variable selling and administrative costs. The production manager reports that it would require an additional $30,000 of fixed manufacturing costs to accommodate the specifications of the buyer. If Belfry accepts the deal, how will this impact operating income? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.)
Answer:
Option b is correct
Explanation:
The computation of the impact in the operating income is given below:
Sale price per unit 350
Less: variable cost per unit -94.49
Contribution margin per unit 255.51
multiplied by units 85
Total contribution margin 21718
Less fixed cost -$30,000
Increase or decrease in operating income $8,282
The variable cost should be
Manufacturing 900,000
Add: selling & admin 300,000
Total 1,200,000
Divided by no of units 127
Variable cost per unit 94.49
If you are interested in working for a specific company, what type of job site should you look at for opening?
a. Geographic specific site
b. Industry specific site
C. Company site
d. General job site
Please select the best answer from the choices provided
A
B
0 0 0 0
C
D
Save and Exit
Next
Submit
retum
Answer:
c
Explanation:
if you got to the company site and go under careers, it will show you the jobs with descriptions they have available
When there are batch-level or product-level costs, in comparison to a traditional cost system, an activity-based costing system ordinarily will shift costs from: a. high-volume to low-volume products. b. low-volume to high-volume products. c. specialized to standardized products. d. standardized to specialized products.
Answer: A. high-volume to low-volume products
Explanation:
Batch-level costs refers to the expenses that are related to the group of products which cannot be traced back to an individual item. The cost of production are incurred for the production of a batch.
Activity-based costing refers to the method whereby overhead and indirect costs are assigned to the products and services.
When there are batch-level or product-level costs, in comparison to a traditional cost system, an activity-based costing system ordinarily will shift costs from a high-volume to low-volume products.
Sarah inherited a large amount of cash after her grandparents passed away. She would rather overdraw her bank account and max out her credit cards, then deposit the cash into her bank account. This is an example of a consumer ________.
Answer:
a) failing to treat money as fungible
Explanation:
In the given situation, since sarah has been use the money in the form of credit cards rather using the larger cash amount which is in her hand. So this represents that she should be failed for using the 2 forms of money also the fungibility of money means the various forms of money could be used interchangable.
Therefore the option a is correct
Aspen Integrated Marketing used to have a strict hierarchical structure, with information given only to those who required it. The new chief executive officer, however, set up a flat organizational structure that eliminates barriers to information flow. Information that was previously available to managers alone is now given to employees as well. He also assigned mentors to new employees to help them in their jobs and enable them to perform better. At Aspen Integrated Marketing, information that was previously available to managers alone is now given to workers as well. This is an example of
Answer:
open-book management or it can also be called a boundaryless organization.
Explanation:
Open-book management
This is simply the act of sharing with employees at all levels of an organization some vital information that is somehow or previously meant for too management staff only. It also involves opening a company's financial statements to all employees and giving them the education that will enable them to understand how the company makes money and how their actions affect its success and bottom line.
Boundaryless organization
This is simply known as a form of organization structure in which there are no barriers to information flow. Boundaryless designs include barrier-free, modular and virtual organizations. An organization without barriers has permeable internal and external boundaries and requires higher level of trust and shared interests, a shift in philosophy from executive development to organizational development, greater use of teams etc.
Construct an amortization schedule for the first three months and the final three months of payments for a 30-year, 7 percent mortgage in the amount of $90,000. What percentage of the third payment is principal
Answer:
a. First three months and final three months of payments:
Monthly Amortization Schedule
Beginning Balance Interest Principal Ending Balance
1 $90,000.00 $525.00 $73.77 $89,926.23
2 $89,926.23 $524.57 $74.20 $89,852.03
3 $89,852.03 $524.14 $74.63 $89,777.39
358 $1,775.56 $10.36 $588.41 $1,187.15
359 $1,187.15 $6.93 $591.84 $595.30
360 $595.30 $3.47 $595.30 $0.00
b. The percentage of the third payment that is principal is 12.46% ($74.63/$598.77 * 100)
Explanation:
a) Data and Calculations:
Mortgage loan = $90,000
Interest rate = 7%
Period of mortgage = 30 years
Repayment = monthly
Monthly Pay: $598.77
Total number of payments = 360
Loan Payments = $215,558.01
Total Interest = $125,558.01
The Auto Division of Big Department Store had a net operating income of $560,000, a net asset base of $4,000,000, and a required rate of return of 12%. Sales for the period totaled $3,000,000. The residual income for the period is: a.$360,000. b.$80,000. c.$120,000. d.$480,000.
Answer:
b.$80,000
Explanation:
The computation of the residual income is given below;
= net operating income - (required rate of return of net asset base)
= 560,000 - (4,000,000×12%)
= $80,000
hence, the residual income is $80,000
Therefore the option b is correct
The same is relevant and considered too
Why is the Dutch disease also called "a wolf in sheep's clothing"?
PLS HELP :(
Answer:
"A wolf in sheep's clothing" refers to a situation where something that in first glance seems to be good or helpful, ends being bad.
Dutch disease refers to the pernicious effects caused by a significant increase in a country's foreign exchange earnings.
For example, suppose that there is good news like the finding of a lot of a given resource (like gold). Now, if the country's economy depends largely on the trade of gold, the news that a large reserve of gold has been found will likely decrease the price of gold, affecting in this way the economics of that country.
Then, something that at first glance looked nice (finding large quantities of the resource) ended being harmful to the country's economics.
This why there is a parallelism between the Dutch disease and the phrase "a wolf in sheep's clothing"
Blue Manufacturing produces lathes at an inventory cost of $25,000 each that sell for $32,000 each. For credit-approved customers, Blue leases the lathes for $8,500 per year for five years. The lathes are guaranteed to last four years and generally have a six-year life. Collection is predictable and reasonably assured. Additionally, the lessor is aware of all costs to be incurred under the lease that will not be reimbursed by the lessor. What is the financing profit of Blue Manufacturing on a leased lathe
Answer:
The right solution is "$10,500".
Explanation:
Given values are:
Inventory cost,
= $25,000
Selling cost,
= $32,000
The financing profit will be:
= [tex]Lease\ payment - Selling\ price[/tex]
= [tex](8500\times 5) - 32000[/tex]
= [tex]42500 - 32000[/tex]
= [tex]10,500[/tex] ($)
The double-declining-balance rate for calculating depreciation expense is determined by doubling the straight-line rate. Assuming that an asset has a useful life of 25 years, determine the rate to be used if using the double-declining-balance method
Answer:
the depreciation rate in cash when the double-declining method should be used is 8%
Explanation:
The computation of the depreciation rate in cash when the double-declining method should be used is given below:
= 1 ÷ useful life × 2
= 1 ÷ 25 × 2
= 0.08
= 8%
Hence, the depreciation rate in cash when the double-declining method should be used is 8%
The same should be relevant and considered too
Sunland Company reports the following operating results for the month of August: sales $382,500 (units 5,100), variable costs $259,000, and fixed costs $99,000. Management is considering the following independent courses of action to increase net income.
1. Increase selling price by 12% with no change in total variable costs or units sold.
2. Reduce variable costs to 65% of sales.
a. Compute the net income to be earned under each alternative.
b. Which course of action will produce the higher net income?
Answer:
Sunland Company
Alternative 1 Alternative 2
a. Net income $70,400 $34,875
b. Alternative 1 (increasing selling price by 12% with no change in total variable costs or units sold) produces the higher net income.
Explanation:
a) Data and Calculations:
August sales = $382,500
Sales units = 5,100
Unit selling price = $75 ($382,500/5,100)
Variable costs = $259,000
Unit variable cost = $50.78 ($259,000/5,100)
Fixed costs = $99,000
Increase in selling price = 12% = $84 ($75 * 1.12)
Reduction in variable costs = 65% of sales
Alternative 1 Alternative 2
Sales revenue $428,400 $382,500
Variable costs 259,000 248,625
Contribution margin $169,400 $133,875
Fixed costs 99,000 99,000
Net operating income $70,400 $34,875
The required volume of output to produce the motors will not require any incremental fixed overhead. Incremental variable overhead cost is $21 per motor. What is the effect on income if Derby decides to make the motors
Answer: Income will increase by $16 per unit
Explanation:
Your question isn't complete but the completed question was gotten online and would be used in answering the question accordingly.
The effect on income if Derby decides to make the motors will be calculated thus:
In-house:
Direct material = 38
Direct labor = 50
Overhead (Incremental) = 21
Total variable cost = 109
Outside:
Cost of supply = 125
Therefore, the income per unit will increase by (125 - 109) = 16.
XYZ Confectionary has a number of store locations throughout North America. In income statements segmented by store, which of the following would be considered a common fixed cost with respect to the stores?
a. store manager salaries
b. store building depreciation expense
c. the cost of corporate advertising aired during the Super Bowl
d. cost of goods sold at each store
e. none of the above
Answer: c. the cost of corporate advertising aired during the Super Bowl
Explanation:
Commmon fixed cost simply means the cost that cannot be traced to a single department.
From the options given, it can be noted that the store manager salaries, store building depreciation expense and the cost of goods sold at each store can be identified separately for the stores.
On the other hand, the cost of corporate advertising aired during the Super Bowl is used for the promotion of the entire company, therefore, it's the common fixed cost.
Consider the following opportunities. Opportunity 1 requires a $4,000 cash payment now (Year 0) but will result in $14,000 cash received in Year 5. Opportunity 2 requires no cash outlay and results in $3,500 cash received in Year 3 and Year 5.
Required:
Use a 6 percent discount rate and determine whether Opportunity 1 or Opportunity 2 results in a greater NPV.
Answer:
Opportunity 1 results in a greater NPV.
Explanation:
NPV of Opportunity 1 = (Cash received in Year 5 / (100% + Discount rate)^Number of years) - Cash payment now = ($14,000 / (100% + 6%)^5) - $4,000 = $10,461.61 - $4,000 = $6,461.61
NPV of Opportunity 2 = (Cash received in Year 3 / (100% + Discount rate)^Number of years) + (Cash received in Year 5 / (100% + Discount rate)^Number of years) = ($3,500 / (100% + 6%)^3) + ($3,500 / (100% + 6%)^5) = $2,938.67 + $2,615.40 = $5,554.07
Since NPV of Opportunity 1 which is $6,461.61 is greater than NPV of Opportunity 2 which is $5,554.07, this implies that Opportunity 1 results in a greater NPV.
Mavs Inc. wishes to determine its cost of common stock equity, rs. The market price, P0, of its common stock is $40.07 per share. The firm expects to pay a dividend, D1, of $4.20 at the end of the coming year, 2021. The dividends paid on the outstanding stock over the past 6 years (2015â2020) were as follows:
2015 $3.60
2016 3.65
2017 3.70
2018 3.85
2019 4.00
2020 4.10
What is the cost of common stock equity financing?
Answer:
13.12%
Explanation:
Using the Gordon growth rate model, the cost of common stock equity can be determined using the formula below:
cost of common equity=expected dividend/current market price+growth rate
expected dividend=dividend in a year's time=D1= $4.20
current market price=P0=$40.07
The growth rate of the dividend can be ascertained by using the future value below:
FV=PV*(1+g)^n
FV=2020 dividend=$4.10
PV=2015 dividend=$3.60
g=growth rate=unknown
n=numbr of years between 2015 and 2020=5(dividend has grown for only 5 years not 6 years)
$4.10=$3.60*(1+g)^5
$4.10/$3.60=(1+g)^5
$4.10/$3.60 can be rewritten thus($4.10/$3.60)^1
($4.10/$3.60)^1=(1+g)^5
divide indexes on both sides by 5
($4.10/$3.60)^(1/5)=1+g
g=($4.10/$3.60)^(1/5)-1
g=2.64%
cost of common equity=($4.20/$40.07)+2.64%
cost of common equity=13.12%
The fixed costs of the division were $193,000. If the mountain bike division is dropped, 30% of the fixed costs allocated to that division could be eliminated. The impact on operating income for eliminating this business segment would be:
Answer:
decrease in the operating income of $132,100
Explanation:
The computation of the impact on the operating income should be given below:
Sales $1,050,000
less: variable cost -$860,000
contribution margin $190,000
Less fixed cost (30% of $193,000) -$57,900
Impact on operating income $132,100
So there is a decrease in the operating income of $132,100
Assume that there are four consumers A, B, C, and D, and the prices that each of them is willing to pay for a glass of lemonade is, respectively, $1.50, $1.20, $1.00, and $0.90. If the actual price of lemonade is $1.00 per glass, then consumer surplus in this market will be:
a. $0.80
b. $0.70
c. $0.50
e. $0.60
If the reserve ratio is 8 percent, then an additional $1,000 of reserves can increase the money supply by as much as
a. $6,400.
b. $8,000.
c. $20,000.
d. $12,500.
Answer:
d. $12,500
Explanation:
Calculation to determine what an additional reserves can increase the money supply by
Using this formula
Increase in Money supply=1/Reserve ratio*Additional Reserves
Let plug in the formula
Increase in Money supply=1/.08* 1,000
Increase in Money supply=$12,500
Therefore an additional reserves can increase the money supply by $12,500
Vihaan Chemicals Company processes a number of chemical compounds used in disinfecting health club fitness equipment. One compound is decomposed into two chemicals: flexalene and soreaphine. The cost of processing one batch of compound is $75,000, and the result is 6,400 gallons of flexalene and 8,000 gallons of soreaphine. Vihaan Chemicals can sell the flexalene at split-off for $12.00 per gallon and the soreaphine for $6.15 per gallon. Alternatively, the flexalene can be processed further at a cost of $8.40 per gallon (of flexalene) into lactine. It takes 2 gallons of flexalene for every gallon of lactine. A gallon of lactine sells for $63.
Required: 1. Which alternative is more cost effective and by how much? NOTE: DO NOT round interim calculations and, if required, round your answer to the nearest dollar. by $ 2. What if the production of flexalene into lactine required additional purchasing and quality inspection activity? Every 550 gallons of flexalene that undergo further processing require 22 more purchase orders at $10 each and 18 more quality inspection hours at $26 each. Which alternative would be better and by how much? NOTE: Round interim calculations and your final answer to the nearest cent. by $_______.
Answer:
Vihaan Chemicals Company
1. The more cost-effective alternative is to process Flexalene further into Lactine. The gain for further processing is $71,040.
2. The better alternative is to process Flexalene further into Lactine. The gain for further processing is now $63,034.
Explanation:
a) Data and Calculations:
Cost of processing one batch of compound = $75,000
Result of processing the compound:
Flexalene Soreaphine
Gallons processed 6,400 8,000
Split-off selling price per unit $12.00 $6.15
Further processing cost per gal. $8.40
Selling price of Lactine = $63 per gallon
Sales revenue from Sale of Flexalene at split-off = $76,800
Net Sales revenue from Sale of Lactine after further processing of Flexalene = $147,840 ($63 * 6,400/2) - ($8.40 * 6,400)
Gain from further processing of Flexalene into Lactine = $71,040 ($147,840 - $76,800)
2. Additional costs for further processing:
Purchasing order cost = $2,560 (6,400/550 * 22 * $10)
Quality inspection cost = $5,446 (6,400/550 * 18 * $26)
Total additional costs = $8,006
Gain from further processing of Flexalene into Lactine = $63,034 ($147,840 - $76,800 - $8,006)
Broker Pat received an offer for a listing along with a $5,000 check from the buyer as an earnest money deposit. When the owner accepts the offer, Pat should handle the check in any of the following ways, except to:____.
a. deposit the check into Pat's brokerage account.
b. give the check to the owner of the property.
c. give the check to the escrow agent.
d. deposit the check in Pat's trust fund account.
Answer:
b. Give the check to the owner of the property.
Explanation:
Pat is a broker who has received an offer for a listing along with check. He can give the check to an escrow agent or deposit the check into pat's brokerage account. he cannot give check directly to the owner of the property.
The following is an account for a production department, showing its costs for one month: Work in Process Inventory Beginning Balance5,400Completed and transferred out49,410 Direct materials21,600 Direct labor16,200 Overhead10,800 Ending Balance4,590 Assume that materials are added at the beginning of the production process and that direct labor and overhead are applied uniformly. If the started and completed units cost $41,850, what was the cost of completing the units in the beginning Work in Process inventory
Answer:
$2,160
Explanation:
Total costs = Beginning Balance + Direct materials + Direct labor+ Overhead
Total costs = $5,400 + $21,600 + 16,200 + $10,800
Total costs = $54,000
Total transferred out = Total costs - Ending Balance
Total transferred out = $54,000 - $4,590
Total transferred out = $49,410
BGIP transferred out = Total transferred out - Assumed started and completed units cost
BGIP transferred out = $49,410 - $41,850
BGIP transferred out = $7,560
Cost to complete BGIP = BGIP transferred out - Beginning Balance
Cost to complete BGIP = $7,560 - $5,400
Cost to complete BGIP = $2,160
The master budget is: a.used for misinformation and coordination. b.broken down into daily budgets. c.typically for a 1-year period corresponding to the fiscal year of the company. d.based on the sales budget. e.All of these choices are correct.
You are considering an investment project with an internal rate of return of 8.7 percent, a net present value of $393, and a payback period of 2.44 years. Which one of the following is correct given this information?
A. The discount rate used to compute the net present value is equal to the Internal rate of return.
B. The discounted payback period will be less than 2.44 years.
C. The required payback period must be greater than 2.44 years.
D. The discount rate used in computing the net present value was less than 8.7 percent.
E. This project should be rejected based on the net present value.
Answer:
Hence the correct option is d) The discount rate used in computing the net present value was less than 8.7 percent.
Explanation:
As the discount rate increases, the present value decreases, and also at IRR the present value is zero, thus the answer is:-
d) The discount rate used in computing the net present value was less than 8.7 percent
Answer:
D). The discount rate used in computing the net present value was less than 8.7 percent.
Explanation:
'Net Present Value' is described as the 'difference that exists between existing values of cash inflows, as well as, cash outflows for a particular time period.' This assists in evaluating the profitability of an investment and make worthy decisions regarding investment.
As per the details provided, the discount rate considered for estimating the Net Present Value of the investment had been lesser than 8.7% which shows that the Net Present Value in positive i.e. $ 393. However, the investment project is not beneficial at all rather it may cause losses because the required return rate is 9.5% which is actually lesser and therefore, the project would prove incompetent and it must be rejected at once. Thus, option D is the correct answer.
The opportunity cost of holding money Group of answer choices varies inversely with the interest rate. varies directly with the interest rate. varies inversely with the level of economic activity. s zero because money is not an economic resource.
Answer:
Varies directly with the interest rate.
Explanation:
Varies directly with the interest rate.
The opportunity cost of holding the money will be the earning that can be made by investing the money. Basically, it is the interest rate that an investment provides when money is invested. If the money is not invested and it just held then the interest rate that could be earned is the opportunity cost.
Cameron is single and has taxable income of $58,046.
Required:
Determine his tax liability using the Tax Tables and using the Tax Rate Schedules.
Answer:
Cameron
Cameron's tax liability for the year as a single taxpayer is
= $12,770.12.
Explanation:
a) Data and Calculations:
Taxable income = $58,046
Tax rate = 22%
Tax liability = $12,770.12 ($58,046 * 22%)
b) The amount of tax that Cameron, who is within the 22% tax rate bracket, will pay to the IRS is $12,770.12. The tax liability represents the amount of tax that is due to be paid for his taxable income of $58,046 at the tax rate of 22%.
Franklin is a research scientist at Insight Research Corporation (IRC). IRC has five research scientists, four assistants, one secretary, and one CEO. Franklin has developed ALS, a disease which binds him to a wheelchair. He is one of the greatest scientists in the world, and can still do his job. Franklin has requested that IRC accommodate his disability, making changes to the company restroom and widening the doors to the building. The changes would be relatively inexpensive, costing only $2,000. If Franklin sues under the Americans with Disabilities Act (ADA), what result
If Franklin sues under the Americans with Disabilities Act (ADA), Franklin will win and this will force IRC to accommodate his disability under this civil rights legislation.
The ADA law was passed to protect persons experiencing physical or mental impairment or disability against workplace discriminations.
While ALS is recognized as a progressive nervous system disease that surely affects Franklin's nerve cells in his brain and spinal cord, which has caused him to lose muscle control, he can still perform his duties as a research scientist at IRC.
Thus, Insight Research Corporation should accommodate Franklin and make the necessary changes, which have been determined to be relatively inexpensive to the company.
Thus, if IRC fails to accommodate Franklin and he sues the company in the court under ADA, he will prevail.
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Baden Company manufactures a product with a unit variable cost of $100 and a unit sales price of $176. Fixed manufacturing costs were $480000 when 10000 units were produced and sold. The company has a one-time opportunity to sell an additional 1000 units at $140 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows:
a. Income would decrease by $8,000.
b. Income would increase by $8,000.
c. Income would increase by $140,000.
d. Income would increase by $40,000.
Answer:
d. Income would increase by $40,000
Explanation:
Calculation to determine what the acceptance of the special order would affect net the income
Net income=(Additional unit price*Additional units)-(Variable cost *Additional units
Let plug in the formula
Net income = ($140× 1,000)-($100×1,000)
Net income= $140,000-$100,000
Net income=$40,000 Increase
Therefore If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows Income would increase by $40,000
