Answer:
The correct answer is A.
Explanation:
Giving the following information:
The ending work in process inventory consists of 9,000 units.
The ending work in process inventory is 100% complete for materials and 70% complete for labor and overhead.
The cost per equivalent unit for the period is $3.75 for material and $1.25.
First, we need to calculate the ending inventory in units for equivalent units:
Direct material= 9,000*1= 9,000 units
Conversion costs= 9,000*0.7= 6,300
Now, the cost of ending inventory:
Direct material= 9,000*3.75= 33,750
Conversion costs= 6,300*1.25= 7,875
Total cost= $41,625
Inventory, often known as stock, refers to the items and materials that a company keeps on hand with the intention of reselling, producing, or using them. Inventory management is largely concerned with defining the shape and location of stocked products.
The correct answer is A. $41,625
The ending work in process inventory consists of 9,000 units.
The ending work in process inventory is 100% complete for materials and 70% complete for labor and overhead.
The cost per equivalent unit for the period is $3.75 for material and $1.25.
Calculation of the ending inventory:
Direct material= [tex]9,000\times1[/tex]= 9,000 units
Conversion costs=[tex]9,000\times0.7[/tex]= 6,300
Now, the cost of ending inventory:
Direct material= [tex]9,000\times3.75[/tex]= 33,750
Conversion costs= [tex]6,300\times1.25[/tex]= 7,875
Total cost= $41,625
To know more about the calculation of the ending inventory, refer to the link below:
https://brainly.com/question/25015918
Brightstone Tire and Rubber Company has capacity to produce 221,000 tires. Brightstone presently produces and sells 169,000 tires for the North American market at a price of $114 per tire. Brightstone is evaluating a special order from a European automobile company, Euro Motors. Euro is offering to buy 26,000 tires for $93.6 per tire. Brightstone's accounting system indicates that the total cost per tire is as follows:
Direct materials $54
Direct labor 24
Factory overhead (62% variable) 24
Selling and administrative expenses (44% variable) 25
Total $127.00
Brightstone pays a selling commission equal to 4% of the selling price on North American orders, which is included in the variable portion of the selling and administrative expenses. However, this special order would not have a sales commission. If the order was accepted, the tires would be shipped overseas for an additional shipping cost of $7.65 per tire. In addition, Euro has made the order conditional on receiving European safety certification. Brightstone estimates that this certification would cost $165,424.
Required:
A. Prepare a differential analysis dated January 21 on whether to reject (Alternative 1) or accept (Alternative 2) the special order from Euro Motors. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required.
B. Determine whether the company should reject (Alternative 1) or accept (Alternative 2) the special order from Euro Motors
C. What is the minimum price per unit that would be financially acceptable to Brightstone?
Answer and Explanation:
A. The preparation of the differential analysis dated January 21 on whether to reject (Alternative 1) or accept (Alternative 2) the special order from Euro Motors is presented below:
Differential analysis
Reject (Alternative 1) or accept (Alternative 2)
Jan 21
Particulars Reject order Accept order Differential effect on income
(Alternative 1) (Alternative 2) (Alternative 2)
Revenues
(26,000 tires × $93.6) $2,433,600 $2,433,600
Less: cost
direct material
(26,000 tires × $54) -$1,404,000 -$1,404,000
Direct labor
(26,000 tires × $24) -$624,000 -$624,000
Variable factory overhead
(26,000 tires × $24 × 0.62) -$386,880 -$386,880
Variable selling and admin expenses
(26,000 tires × $25 × 0.44) - ($114 × 4%)
-$167,440 -$167,440
Shipping cost
(26,000 tires × $7.65) -$198,900 -$198,900
Certification cost -$165,424 -$165,424
Income or loss -$513,044 -$513,044
B. As we can see that there is a loss of -$513,044 so the special order should be rejected
C. The minimum price is
= Selling price - differential income per unit
= $93.6 - (-$513,044 ÷ 26,000 tires)
= $93.6 - (-$19.73)
= $113.33
A buyer wants to purchase a home for $60,000. The lender appraises the home for $58,000 and offers to finance it with an 80% loan-to-value loan, charging a loan origination fee of 1.5 points. How much will the buyer's loan origination fee be?
Answer:
Loan origination fee = $696
Explanation:
Given:
Home value = $58,000
Loan-to-value loan = 80%
Loan origination fee = 1.5 points = 1.5%
Find:
Loan origination fee = ?
Computation:
Total loan amount = Home value × Loan-to-value loan
Total loan amount = $58,000 × 80%
Total loan amount = $46,400
Loan origination fee = Total loan amount × 1.5%
Loan origination fee = $46,400 × 1.5%
Loan origination fee = $696
Sheridan Co. leased equipment to Union Co. on July 1, 2021, and properly recorded the sales-type lease at $146000, the present value of the lease payments discounted at 9%. The first of eight annual lease payments of $22000 due at the beginning of each year of the lease term was received and recorded on July 3, 2021. Sheridan had purchased the equipment for $113000. What amount of interest revenue from the lease should Sheridan report in its 2021 income statement
Answer:
The amount of interest revenue from the lease should Sheridan report in its 2021 income statement is $5,580
Explanation:
According to the given data The first payment will reduce the principle because interest has not started to accrue ,
Therefore= $146,000 - $22,000 = $124,000
The Computation of interest that will be owned for 6 months would be as follows:
Interest revenue for full year = $124,000*9% = $11,160
Therefore, the amount of interest revenue from the lease is = Interest revenue for full year*6/12
amount of interest revenue from the lease = $11,160*6/12 = $5,580 (from july to december)
The amount of interest revenue from the lease should Sheridan report in its 2021 income statement is $5,580
Prepare Lipman Auto Parts’ cash budget for January and February. How much cash will Lipman Auto Parts borrow in February if collections from customers that month total $13,800.00 instead of $14,800.00?
Answer:
The answer given is for the data given in the question below.
Explanation:
The complete question is :
Lipman Auto Parts, a family-owned auto parts store,began January with $10,300 in cash. Management forecasts that collection from credit customers will be $11,400.00 in January and $14,800 in February. The store is scheduled to receive $5,000.00 in cash on a business note receivable in January. Projected cash payments include inventory purchases($13,000 in January and $13,600 in February) and operating expenses ($2,700 each month). Lipman Auto Parts' bank requires $10,000 minimum balance in the store's checking account. At the end of any month when the account balance dips below $10,000, the bank automatically extends credit to the store in multiples of $1,000. Lipman Auto Parts borrows as little as possible and pays back loans in quarterly installments of $2,000, plus 4 percent interest on the entire unpaid principal. The first payment occurs three months after the loan.
Prepare Lipman Auto Parts' cash budget for January and February
How much cash will Lipman auto Pars borrow in February if collections form customer that month total $13,800 instated of $14,800?
Answer would be like this :
Lipman Auto Parts
Cash Budget
January - February
January February Beginning cash balance $ 10,300 $ 41,000
Cash collections from customers $ 11,400 $ 14,800
Collection of note receivable $ 5,000 $ -
Total cash available $ 56,700 $ 55,800
Cash payments:
Purchases of inventory $ 13,000 $ 13,600
Operating expenses $ 2,700 $ 2,700
Total cash payments $ 15,700 $ 16,300
Ending Cash Balance Before Financing $ 41,000 39,500
Less Required Cash Balance 10,000 10,000
Cash Excess $ 31,000 29500
Financing of Cash Deficiency ------- -------
Ending Cash Balance $ 41,000 39500
Lipman Auto Parts
Cash Budget
January - February
January February Beginning cash balance $ 10,300 $ 41,000
Cash collections from customers $ 11,400 $ 13,800
Collection of note receivable $ 5,000 $ -
Total cash available $ 56,700 $ 54,800
Cash payments:
Purchases of inventory $ 13,000 $ 13,600
Operating expenses $ 2,700 $ 2,700
Total cash payments $ 15,700 $ 16,300
Ending Cash Balance Before Financing $ 41,000 38,500
Less Required Cash Balance 10,000 10,000
Cash Excess $ 31,000 28500
Financing of Cash Deficiency ------- -------
Ending Cash Balance $ 41,000 38500
Ways to address the occurrence of negative net factor income from abroad
Answer: The net factor income can be positive or negative.
Explanation:
The net factor income becomes negative when income obtained by the foreigners or native of abroad from our country is more than the income earned by us while working in abroad. This can be positive when former is less than the later.
The ways to address the negative net factor income are as follows:
1. Availing compensation from employers.
2. Earning on direct investment.
Cane Company manufactures two products called Alpha and Beta that sell for $135 and $95, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 105,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $ 30 $ 18 Direct labor 23 16 Variable manufacturing overhead 10 8 Traceable fixed manufacturing overhead 19 21 Variable selling expenses 15 11 Common fixed expenses 18 13 Total cost per unit $ 115 $ 87 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 6. Assume that Cane normally produces and sells 93,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line
Answer:
financial disadvantage = ($1,953,000)
Explanation:
Alpha selling price $135 per unit
Beta selling price $95 per unit
raw materials = $6 per pound
production capacity 105,000 of each product
Alpha Beta
Direct materials $30 $18
Direct labor $23 $16
Variable manufacturing overhead $10 $8
Traceable fixed manufacturing overhead $19 $21
Variable selling expenses $15 $11
Common fixed expenses $18 $13
Total cost per unit $115 $87
margin per unit $20 $8
93,000 Betas produced per year:
total revenue $8,835,000
COGS ($5,859,000)
Gross profit $2,976,000
Variable selling expense ($1,023,000)
Fixed common expenses ($1,209,000)
net profit $744,000
if the Beta product line is discontinued:
lost net profits ($744,000)
fixed common expenses ($1,209,000)
financial disadvantage ($1,953,000)
If the company decides to shut down the production of Betas, then it will lose $1,953,000. This includes lost profits generated by the product and unavoidable fixed costs which must be allocated to Alphas.
The 2021 income statement of Adrian Express reports sales of $19.310.000. cost of goods sold of $12,250,000, and net income of $1,700,000. Balance sheet information is provided in the following table. ADRIAN EXPRESS Balance Sheets December 31, 2021 and 2020 2021 2e2e Assets Current assets: Cash Accounts receivable Inventory Long-term assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and stockholders' equity $ 700,000 1,600,000 2,000,000 4,900,000 $9, 200,000 $ 860,000 1,100,000 1,500,000 4,340,000 $7,800, eae $1,920,000 2,400,000 1.900.000 2,980,000 $9,200,000 $1,760,000 2,500,000 1.900,800 1.640.ece $7,8ee, eee Industry averages for the following profitability ratios are as follows: Gross profit ratio Return on assets Profit margin Asset turnover Return on equity 25% 15% 2.5tines 35%
Required:
Calculate the five profitability ratios listed above for Adrian Express
(Round your answers to 1 decimal place.) Profitability Ratios Gross profit ratio Return on assets Profit margin Asset turnover Return on equity
Answer:
The Gross profit ratio is 36.6%
The Return on assets is 20%
The Profit margin is 8.8%
The Asset turnover would be 2.3 times
The Return on equity is 40.4%
Explanation:
The calculation of the five profitability ratios listed would be a follows:
Gross profit = Sales - Cost of goods sold
= $19,310,000 - $12,250,000
= $7,060,000
Gross profit ratio = Gross profit / Sales * 100
= $7,060,000 / $19,310,000 * 100
= 36.6%
The Gross profit ratio is 36.6%
Return on assets = Net income / Average total assets * 100
= $1,700,000 / [($9,200,000+$7,800,000)/2] * 100
= 20%
The Return on assets would be 20%
Profit margin = Net profit / Sales * 100
= $1,700,000 / $19,310,000 * 100
= 8.8%
The Profit margin would be 8.8%
Asset turnover = Sales / Average total assets
= $19,310,000 / [($9,200,000+$7,800,000)/2]
= 2.3 times
The Asset turnover would be 2.3 times
Return on equity = Net income / Average total equity
= $1,700,000 / [($1,900,000+$2,980,000+$1,900,000+$1,640,000)/2]
= 40.4%
The Return on equity would be 40.4%
An investor is considering buying a restaurant that has been in operation for a number of years. The restaurant has a highly regarded chef and many long-term kitchen and wait staff who work together smoothly to make innovative new dishes. It has a reputation for dishes of consistently high quality and an appealing dining atmosphere. What should the investor consider when making a decision?
Answer:
The investor will find that the restaurant's financial statements undervalue the true value of its resources.
Explanation:
It is said here that the investor will find the financial statements undervalue the true value of its resources. In as much as the quality of the chefs, staffs and standard of the restaurant, all were put into consideration.
It is also known that financial statements are written records that convey the business activities and the financial performance of a company. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes.
Financial statements are written records that convey the business activities and the financial performance of a company.
The balance sheet provides an overview of assets, liabilities, and stockholders' equity as a snapshot in time.
Answer: The investor will find that the restaurant's financial statements will undervalue the true value of its resources.
Explanation:
A Financial statements is a formal record of all financial activities that shows the position of a business, person, or other entity’s. Important financial information are presented in a structured manner and in a away it can be easily understood. This financial statement helps one value the true worth of a business, individual or entity’s.
Atlas Transportation is considering installing temperature logger in all its refrigerated trucks for monitoring temperatures during transit. If the systems will reduce insurance claims by $40,000 per year for 5 years how much should the company be willing to spend now if it uses an interest rate of 12% compounded quarterly
Answer:
$144191.05
Explanation:
Solution
Recall that:
The insurance claim reduction is =$40,000
The time = 5 years
The interest rate = 5%
Now,
We find how much the company be willing to spend if it uses an interest rate of 12% compounded quarterly.
The present value is computed as follows:
The Present Value of the saving (PV) = 40000/(1+12%) + 40000/(1+12%)2 +40000/(1+12%)3 +40000/(1+12%)4 +40000/(1+12%)5
= $144191.05
Hence, the maximum amount the company should be freely spend is
= $144191.05
A company issues a callable (at par) ten-year, 6% coupon bond with annual coupon payments. The bond can be called at par in one year after release or any time after that on a coupon payment date. On release, it has a price of $104 per $100 of face value. What is the yield to maturity of this bond when it is released? A) 0.60% B) 1.92% C) 4.00% D) 5.47%
Answer:
B) 1.92%
Explanation:
For computing the yield to maturity we need to apply the RATE formula i.e to be shown in the attachment
Given that,
Present value = $104
Future value or Face value = $100
PMT = $100 × 6% = $6
NPER = 1
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
After applying the above formula, the yield to maturity is 1.92%
Which of these statements about cycle inventory is BEST? A. Cycle inventory exists to avoid customer service problems. B. Cycle inventory is used to compensate for cycles in supply or demand. C. A change in lead time does not necessarily entail a change in cycle inventory. D. Longer lead times entail more cycle inventory is needed.
Answer:
A. Cycle inventory exists to avoid customer service problems.
Explanation:
Cycle inventory is the part of inventory kept by a supplier, that shows the amount of inventory available to satisfy demand. Cycle inventory allows the supplier to keep track of his available inventory so as to remove the problem of not meeting customers demand, which can led to loss of customers. And also to reduce the problem of over-storage that can lead to additional holding charge.
Sellall Department Stores reported the following amounts in its adjusted trial balance prepared as of its December 31 year-end: Administrative Expenses, $2,300; Cost of Goods Sold, $22,140; Income Tax Expense, $3,040; Interest Expense, $1,500; Interest Revenue, $180; General Expenses, $2,500; Net Sales Revenue, $37,105; and Delivery (freight-out) Expense, $290.Prepare a multi-step income statement for distribution to external financial statement users.
Answer:
The net income is $5,515
Explanation:
Kindly check the attached picture for the Income statement table
4. Valuing semiannual coupon bonds Bonds often pay a coupon twice a year. For the valuation of bonds that make semiannual payments, the number of periods doubles, whereas the amount of cash flow decreases by half. Using the values of cash flows and number of periods, the valuation model is adjusted accordingly. Assume that a $1,000,000 par value, semiannual coupon US Treasury note with three years to maturity has a coupon rate of 3%. The yield to maturity (YTM) of the bond is 7.70%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note: $876,205.93 $744,775.04 $1,051,447.12 $552,009.74 Based on your calculations and understanding of semiannual coupon bonds, complete the following statement: The T-note described in this problem is selling at a .
Answer:
T-note described in this problem is selling at a price of $876,205.93
Explanation:
The price of the bond can be computed using pv formula in excel as stated thus:
=-pv(rate,nper,pmt,fv)
rate is the semiannual yield which is the annual yield of 7.70% divided by 2
nper is the number of coupons payable by the bond over its three years' tenure given that coupon is paid twice a year i.e 3*2=6
pmt is the semiannual coupon payment=$1,000,000*3%*6/12=$15000
fv is the face value of $1,000,000
=-pv(7.70%/2,6,15000,1000000)=$876,205.93
Rudo asked Harun to detail his brand-new sports car by painting flames on the side of the vehicle. After the parties signed a contract and after Harun had already started to paint, Rudo decided that he also wanted Harun to install a new stereo system in the car at the same cost and modified the contract likewise. Harun painted the flames on the side of the vehicle as originally agreed but did not install a new stereo. Rudo refuses to pay the originally agreed upon price. If Harun sues Rudo for the contract price, he will win because:_______
a. Rudo's act was unenforceable for lack of consideration
b. Rudo's promise was enforceable.
c. The old contract automaticallt got cancelled with the addition of a new condition.
d. Harun's act was not a preexisting duty and hence of no legal value.
Answer:
a. Rudo's act was unenforceable for lack of consideration
Explanation:
In this scenario where Rudo changed the contract after Harun had commenced painting, his new contract is not enforceable because it lacks consideration.
Consideration is defined as the action in a contract where the parties involved agree to carry out their side of the contract.
When the parties do not agree to the terms of the contract then the contract is not legally binding on the parties.
Rudo made the first contract which Harun agreed to. However Harun did not agree to the terms of the modified contract, so this makes it unenforceable
Answer: Rudo's act was unenforceable for lack of consideration
Explanation:
Any contract that must be enforceable by law needs an appropriate consideration. Based on the above scenario on the question, when there was a modification that was made in the contract, we were informed that Rudo told Harun to detail his brand-new car by painting flames on side of the vehicle and after the contract was signed by the parties, he wanted to modify the contract by telling Harun to install new stereo system in the car.
Rudo did not promise for modifications from the beginning of the contract, therefore there should not be any change in the existing contract. If Hrun Sue's Rado based on the scenario, he will win due to the fact that Rudo's act was unenforceable for a lack of consideration.
3) Calculate two individuals total amount of retirement assets after 30 years of investing using the following two examples to display and articulate the effect of compounded fees on two different individuals' retirement accounts with the exact same mutual funds. The two mutual funds have the same before expense rate of return, but one mutual fund charges a higher expense ratio than the other. Describe what effect fees have on the two different individuals' retirement assets: (a) Yearly Savings: $15,000, Inflation Rate: 2%, Rate of Return:(8.15%-.15%=8%), Expense Ratio of Mutual Fund: .15%, Periods: 30 years (b) Yearly Savings: $15,000, Inflation Rate: 2%, Rate of Return:(8.15%-.65%=7.50%) (It is lower than example (a) due to the increased expense ratio), Expense Ratio of Mutual Fund: .65%, Periods: 30 years
Answer: The answer is given below
Explanation:
Based on the explanations and the figures provided on the question, the solution goes thus:
a. Assuming that the inflation rate is also be the rate of growth in savings amount i.e the income of an individual will grow minimum by inflation amount.
r = 8% = 8/100 = 0.08
g = 2% = 2/100 =0.02
Future value = 15000[(.08)^30 - (1.02)^30)]/0.06
Fv= 2062250
b) similarly for b as expense ratio of mutual fund is said to be higher, we will get:
r=7.5% = 7.5/100 = 0.075
g= 2% = 2/100 = 0.02
fv= 15000[(1.075)^30 - (1.02)^30)]/0.055 Future value = 1892454
we can therefore deduce that due to the increase in expense ratio assets in the 2nd scenario, the value are less by:
= 2062250 - 1892454
= 169,796.
The following transactions were completed by the company a. The owner invested $19,000 cash in the company in exchange for its common stock. b. The company purchased supplies for $1,500 cash c. The owner invested $12,000 of equipment in the company in exchange for more common stock. d. The company purchased $400 of additional supplies on credit. e. The company purchased land for $11,000 cash Required Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.) Assets Liabilities+ Accounts Equity CommonD Cash +Supplies + Equipment+ Land Dividends Revenue +Revenue Expenses Payable Stock $19,000+ Bal 19,000 Bal 19,000 + Bal 19,000 + 0 Bal 19,000 + 0
Answer:
ASSETS = LIABILITIES + EQUITY
cash supplies equip. land = acc. payable common stock
19,000 19,000
-1,500 1,500
12,000 12,000
400 400
-11,000 11,000
6,500 1,900 12,000 11,000 = 400 31,000
Explanation:
Dr cash 19,000
Cr common stock 19,000
Dr supplies 1,500
Cr cash 1,500
Dr equipment 12,000
Cr common stock 12,000
Dr supplies 400
Cr accounts payable 400
Dr land 11,000
Cr cash 11,000
In a bilateral monopoly with one buyer and one seller, the monopoly power of the seller and the monopsony power of the buyer tend to: counter-act one another. reinforce one another. favor the buyer. favor the seller.
Answer:
counter-act one another.
Explanation:
As a bilateral monopoly has one buyer and one seller, the buyer wants to pay the lower price possible and the seller wants to charge a high price. So, they have opposite goals and they have to negotiate considering the power each one has and find an agreement in which both win. According to this, the answer is that in a bilateral monopoly with one buyer and one seller, the monopoly power of the seller and the monopsony power of the buyer tend to counter-act one another as their positions are in conflict and they have to find a middle point to get to an agreement.
The other options are not right because their goals are in conflict so they don't support the idea of the other party and both parties have a relative bargaining power and because of that, the monopoly power of the parties does not favor the buyer or the seller.
homeworklib You want to evaluate three mutual funds using the information ratio measure for performance evaluation. The risk-free return during the sample period is 6%, and the average return on the market portfolio is 19%. The average returns, residual standard deviations, and betas for the three funds are given below. Average Return Residual Standard Deviation Beta Fund A 20 % 4.00 % 0.8 Fund B 21 % 1.25 % 1.0 Fund C 23 % 1.20 % 1.2 The fund with the highest information ratio measure is Multiple Choice Funds A and C (tied for highest). Funds A and B (tied for highest). Fund A. Fund C. Fund B.
Answer:
The fund with the highest ratio is Fund B.
Explanation:
Risk-free return = 6%
The average return on the market portfolio = 19%
The ratio equation formula is as follows:
FUND A: Return on fund - Risk free rate - Beta (Return on market portfolio - Risk free rate)/Standard deviation of fund
FUND A : 20 - 6 - 0.8(19 - 6 ) / 4 = 0.9
FUND B : 21 - 6 - 1(13)/1.25 = 1.6
FUND C : 23 -6 - 1.2 (13 ) /1.2 = 1.167
Therefore, the fund with the highest ratio is Fund B.
Marissa gives Larry a check made payable to cash in payment for a
computer that she is buying from him. Larry then gives the check to his
nephew, Gary Graduate, without indorsing it, as a graduation gift. Marissa
then stops payment on the check because she claims that Larry breached the
contract. When the check bounces, Gary makes a claim against Marissa for
the amount of the check. Marissa responds that Gary cannot collect on the
check since he is not a holder because Larry never indorsed the check to
him. Which statement is true?
1.Gary is at least a holder
2.Gary is not a holder or holder in due course because the check was never indorsed
3.Gary is not a holder or holder in due course because of the shelter principal
4.Gary is not a holder or holder in due clause because Larry breached the contract
Answer:
The correct answer is the option 2: Gary is not a holder or holder in due course becuase the check was never indorsed.
Explanation:
To begin with, the field of law and more in particular the commercial law and all its scenarios, any check that has been passing through hands must be indorsed in order to be able to be payable to the person who has it the last, in any other case if the check is not indorsed then that means by law that the check has never changed its owner and therefore that it can not be payable for anybody else. That is why, Gary is not a holder because his uncle did not indorsed him the check correctly.
In business, it is customary to praise individualistic competition and denigrate collective bargaining in all forms. However, in the Hanseatic League, we clearly see an example of merchants working together for mutual success over a period of three hundred years! What lessons are we to learn from this? Are there prospects for more merchant leagues in an increasingly globalized economy? Outline your thoughts on these questions in ten sentences minimum, and post them in the discussion. Then select two fellow students posts for peer review and critique their comments without the use of flattery.
Answer:
What lessons are we to learn from this?
The Hanseatic league, just like the Northern Italian City-States of the Late Middle Ages, are early examples of capitalism: they represent proto-capitalism.
In the cities that belonged to the Hanseatic League, the work of merchants was promoted, and capital accumulation and the profit motive began to develop. However, this does not meant that cooperation was out of place. The merchants cooperated voluntarily because they could get more working in association.
Are there prospects for more merchant leagues in an increasingly globalized economy?
There will always be the prospect for more merchant leagues, because people naturally cooperate if it is in the benefit of all the parties.
In fact, trade unions and economic unions could be seen as a form of merchant league, that are created by states instead of individual merchants.
Lusk Corporation produces and sells 14,900 units of Product X each month. The selling price of Product X is $31 per unit, and variable expenses are $25 per unit. A study has been made concerning whether Product X should be discontinued. The study shows that $73,000 of the $113,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued. If Product X is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be: g
Answer:
Effect on income= $34,500 decrease
Explanation:
Giving the following information:
Sales= 14,900 units
Selling price= $31 per unit
Variable expenses= $25 per unit.
The study shows that $73,000 of the $113,000 in monthly fixed expenses charged to Product X would not be avoidable even if the product was discontinued.
First, we need to calculate the current income of Product X.
Net income= 14,900*(31 - 25) - 113,000= -$38,500
Now, the effect of discontinuing the product.
Effect on income= unavoidable fixed costs - current income
Effect on income= - 73,000 + 38,500
Effect on income= $34,500 decrease
The following data apply to Hill's Hiking Equipment: Value of operations $20,000, Short-term investments $1,000, Debt $6,000, Number of shares 300; The company plans on distributing $50 million by repurchasing stock. What will the intrinsic per share stock price be immediately after the repurchase?
Answer:
$50
Explanation:
Solution
Recall that:
The company plans on giving out $50 million by repurchasing stock hence, number of stock to be purchased = 50/50 = 1 million
The Number of share bought back = 300-1 = 299
Thus
$20,000 + $1,000 - $6000 = $15,000
$15,000 / 300 shares = $50
Before Repurchase After the repurchase
Value of operations 20000 20000
Short-term investments 1000 950
Less : Debt 6000 6000
Intrinsic value of equity 15000 14950
Number of shares 300 299
Intrinsic value per share 50 50
Therefore the intrinsic per share stock price be immediately after the repurchase is $50
The agency problem refers to the possible conflicts of interest between:_______.
a. self-interested managers as principals and shareholders of the firm who are the agents.
b. altruistic managers as agents and shareholders of the firm who are the principals.
c. self-interested managers as agents and shareholders of the firm who are the principals.
d. dutiful managers as principals and shareholders of the firm who are the agents.
Answer: c. self-interested managers as agents and shareholders of the firm who are the principals.
Explanation:
The Agency Problem in Corporate Finance refers to a situation where the Managers who are supposed to be agents to increase the wealth of the Shareholders who are the principles realise and decide to act in their own interest and increase their wealth instead.
It is an age old problem that rears its head up in almost every relationship where a party is to act in the best interest of another. They might simply ask themselves, why not act in our own best interests.
For example, Managers might award contracts to companies that promise to give them some form of compensation for the contract instead of companies that would have done the job in question at cheaper rates and with more efficiency and thus brought more Profitability to the firm.
The agency problem is the conflict that can arise between self-interested managers as agents and shareholders of the firm who are the principals.
Agency conflict occur when the shareholders of a firm do not manage the company. Instead, managers are hired to manage the firm. Sometimes, the interest of shareholders and managers are not aligned.
For example, if the remuneration managers receive is tied to the net income of the firm. The manager can undertake projects that would boost net income but not be in the best interest of shareholders.
A similar question was answered here: https://brainly.com/question/10075588
Abbott Landscaping purchased a tractor at a cost of $42,000 and sold it three years later for $21,600. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $3,000 residual value. Tractors are included in the Equipment account.Required:1. Record the sale.2. Assume the tractor was sold for $13,600 instead of $21,600. Record the sale of equipment.
Answer:
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Explanation:
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Answer:
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Explanation:
An asset's book value is $21,600, on January 1, Year 6. The assets is being depreciated $300 per month using the straight-line method. Assuming the asset is sold on July 1, year 7 for $14,200, the company should record:
On January 1, 2013, Grant Corporation issued $600,000, 8%, 10-year bonds dated January 1, 2013, at 104. The bonds pay semi-annual interest on January 1 and July1. The company uses the straight-line method of amortization and has a calendar year end. Instructions Prepare all the journal entries that Grant Corporation would make related to this bond issue through January 1, 2014. Be sure to indicate the date on which the entries would be made.
Answer:
January 1, 2013 Bonds are issued
Dr Cash 624,000
Cr Bonds payable 600,000
Cr Premium on bonds payable 24,000
July 1, 2013 first coupon is paid
Dr Interest expense 22,800
Dr Premium on bonds payable 1,200
Cr Cash 24,000
December 31, 2013 accrued interest
Dr Interest expense 22,800
Cr Interest payable 22,800
January 1, 2014 second coupon is paid
Dr Interest payable 22,800
Dr Premium on bonds payable 1,200
Cr Cash 24,000
Explanation:
issued $600,000 in 8%, 10 year bonds that pay semi annual coupons.
Sales price 104 = $624,000
premium on bonds payable $24,000
amortization using the straight line method = $24,000 / 20 = $1,200 per coupon paid
accrued interests on bonds payable must be recorded on December 31, 2013.
Identify the top five recipient countries of FDI from the US. Then Identify top 10 MNEs headquartered in the US that have made outbound FDI elsewhere. Why do theses countries attract FDI from the US? Explain using the resource and the institution based views.
Answer:
The top five recipient countries of FDI from the US are:
The Netherlands - 866.33 billion dollarsUnited Kingdom - 757.78 billion dollarsLuxembourg - 713.83 billion dollarsIreland - 442.17 billion dollarsCanada - 401.87 billion dollarsThose countries attract FDI from the US either because of low taxes, including low corporate taxes (The Netherlands, Luxembourg, Ireland), or for very close relationships at all levels: cultural, commercial, geographical, and so on (Canada, and the United Kingdom).
From a resource perspective, only Canada is particularly resource-rich, it has large quantities of natural gas, oil, and metals.
The other four countries are not resource-rich, instead, they have institutions that protect property rights, that promote investment, and that do not charge very high taxes.
Using the table below, select "X" in the column that corresponds to the type of activity level referred to in each scenario.Unit Batch Product Customer Organizationala. Setting up a machine for a production run of 500 units b. Conducting a seminar for local doctors on the benefits of a new drug c. Embossing a company logo on every product made d. Seating a party of 11 at a restaurant e. Providing technical support for two years following a sale f. Managing a corporation's accounting department g. Attaching a price tag to each product h. Issuing an invoice i. Developing a corporate advertising campaign j. Recalling a defective product
Answer: Please refer to Explanation
Explanation:
There are different activities involved in making a final product by a company to get a good ready.
These Activities are divided into the levels, Unit, Batch, Product, Customer and Organizational.
Unit Level Activities are activities that are performed on the individual units. If you see an activity that focuses on a singular unit at a time, it is a Unit Level Activity.
Batch Level Activity. When units are put together in a set, they form a batch. Batch Level Activity therefore refers to those activities on a set of units at a particular time.
Product Level Activity. When taling about activities related to the entire product this is where they fall under. The entire product refers to what is being produced exactly. For instance, out of 300 units of Ford Mustangs produced, the product is the Ford Mustang. Recalling all Ford Mustangs is a Product Level Activity.
Customer Level Activities are those related to what the company does regarding those who buy it's products. As long as the activity has to do with a customer, it is a Customer Level Activity.
Finally, an Organizational Activity refers to an activity that encapsulates or affects the organization as a whole.
Classifying the above therefore,
a. production run of 500 units. BATCH LEVEL ACTIVITY as it involves multiple units.
b. Conducting a seminar for local doctors on the benefits of a new drug. PRODUCT LEVEL ACTIVITY as it speaks to the entire product.
c. Embossing a company logo on every product made. UNIT LEVEL ACTIVITY as it speaks of putting a logo on EACH UNIT.
d. Seating a party of 11 at a restaurant. BATCH LEVEL because in this case each person is a unit and putting them together creates a batch.
e. Providing technical support for two years following a sale. CUSTOMER LEVEL ACTIVITY as it involves services related to the customer.
f. Managing a corporation's accounting department. ORGANIZATIONAL LEVEL ACTIVITY as it speaks to the management of an organization wide system.
g. Attaching a price tag to each product. UNIT LEVEL ACTIVITY as it speaks to an activity related to a single unit.
h. Issuing an invoice. CUSTOMER LEVEL ACTIVITY as it deals with issuing invoices which is done to customers who have bought a good.
i. Developing a corporate advertising campaign. ORGANIZATIONAL LEVEL ACTIVITY because it is at a Corporate Level thereby affecting the entire organization. Had it been a specific product advertisement it would be a Product Level Activity.
j. Recalling a defective product. PRODUCT LEVEL ACTIVITY as it concerns the entire product in question.
Ayayai Corp. has 320,000 shares of $10 par value common stock outstanding. It declares a 14% stock dividend on December 1 when the market price per share is $17. The dividend shares are issued on December 31. Prepare the entries for the declaration and distribution of the stock dividend.
Answer:
320,000 stocks with $10 par value
14% stock dividend (small stock dividend ≤ 20%)
so we will use the market price of the stocks = $17 x 320,000 x 14% = $761,600 total distribution
320,00 x 14% = 44,800 stocks x $10 par value = $448,000
the additional paid in capital = $761,600 - $448,000 = $313,600
December 1, declaration of stock dividend
Dr Retained earnings 761,600
Cr Common stock dividends distributable 448,000
Cr Additional paid in capital in excess of par value 313,600
December 31, distribution of stock dividends
Dr Common stock dividends distributable 448,000
Cr Common stock 448,000
Judith Thompson, the manager of the student center cafeteria, has added pizza to the menu. The pizza is ordered frozen from a local pizza establishment and baked at the cafeteria. Judith anticipates a weekly demand of 10 pizzas. The cafeteria is open 45 weeks a year, 5 days a week. The ordering cost is $15 and the holding cost is $0.40 per pizza per year. The pizza vendor has a 4-day lead-time and Judith wants to maintain 1 pizza for safety stock. What is the optimal reorder point
Answer:
9 pizzas
Explanation:
Given that:
A pizza is ordered frozen from a local pizza establishment and baked at the cafeteria.
Judith anticipates a weekly demand of 10 pizzas.
Opening weeks in a year = 45 weeks
Opening days in a week = 5 days
Daily demand = 10/5 = 2
Ordering cost = $15
Holding cost = $0.40 /pizza/year
Lead time = 4 days
Safety stock = 1 pizza
The objective is to determine the optimal reorder point.
The optimal reorder point = (daily demand × lead time) + safety stock
The optimal reorder point =( 2 × 4 ) + 1
The optimal reorder point = 8 + 1
The optimal reorder point = 9 pizzas
Which of the following assertions is true?
A) Agency costs do not involve costs that are incurred from managers pursuing their own interests at the expense of shareholder value and do not involve costs that are incurred by shareholders to make sure that managers pursue shareholder value.
B) Agency costs do not involve costs that are incurred from managers pursuing their own interests at the expense of shareholder value, but do involve costs that are incurred by shareholders to make sure that managers pursue shareholder value.
C) Agency costs involve costs that are incurred from managers pursuing their own interests at the expense of shareholder value, but not costs that are incurred by shareholders to make sure that managers pursue shareholder value.
D) Agency costs involve costs that are incurred from managers pursuing their own interests at the expense of shareholder value and costs that are incurred by shareholders to make sure that managers pursue shareholder value.
Answer:
D) Agency costs involve costs that are incurred from managers pursuing their own interests at the expense of shareholder value and costs that are incurred by shareholders to make sure that managers pursue shareholder value.
Explanation:
Due to the fact that most public companies are not managed by owners but by managers, agency cost arises.
Agency cost arises when the manager pursues her own interest to the detriment of the owners.
In order to mitigate against agency costs , owners put certain mechanisms in place to limit these costs. Some of these mechanisms include increased monitoring and employment contracts
I hope my answer helps you
