Answer: use linkages with other specialized firms to access resources they do not possess.
Explanation:
When technology progresses, firms can benefit by having access to better processes that they may not have by reaching out to other firms that are able to produce those resources.
They will then use the acquired resources to become even more efficient in their own production and produce resources that other companies will then seek which would have the effect of moving the entire economy forward.
Cherry Corporation, a calendar year C corporation, is formed and begins business on April 1 of the current year. In connection with its formation, Cherry incurs organizational expenditures of $54,000.
Required:
Determine Cherry Corporationâs deduction for organizational expenditures for 2015.
[tex]\huge\bold{Question}[/tex]
Prove that [tex]\sqrt{n} [/tex] is not a rational number, if n is not perfect square.
[tex]\huge{\underline{\underline{\mathrm{\red{AnswEr}}}}}[/tex] [tex]\huge\bold\blue{=}[/tex]
[tex]\sqrt{4} [/tex]= 2 where 2 is a rational number . Here n is perfect square the [tex]\sqrt{n} [/tex] is rational number
[tex]\sqrt{5} [/tex] = 2.236.. is not rational number But it is irrational number.here n is not a perfect square the [tex]\sqrt{n} [/tex] is irrational number
So [tex]\sqrt{n} [/tex] is not irrational number if n is perfect square.
Adjusting and paying accrued wages LO P1
Pablo Management has five part-time employees, each of whom earns $90 per day. They are paid on Fridays for work completed Monday through Friday of the same week. Near year-end, the five employees worked Monday, December 31, and Wednesday through Friday, January 2, 3, and 4. New Year's Day. (January 1) was an unpaid holiday.
1. Prepare the year-end adjusting entry for wages expenses.
2. Prepare the journal entry to record payment of the employees' wages on Friday, January 4, 2018.
Answer:
1. Dr Wages expense $450
Cr Wages payable $450
2.Dr Wages expense $1350
Dr Wages payable $450
Cr Cash $1800
Explanation:
1. Preparation of the year-end adjusting entry for wages expenses.
Dec 31
Dr Wages expense $450
Cr Wages payable $450
( 5 employees * $90 per day)
(To record wages expenses)
2. Preparation of the journal entry to record payment of the employees' wages on Friday, January 4, 2018
Jan 4
Dr Wages expense $1350
(3 days*5 employees*$90=$1350)
Dr Wages payable $450
(5 employees * $90 per day)
Cr Cash $1800
($1350+$450 =$1800)
(To record payment of the employees' wages)
A U.S. corporation has purchased currency call options to hedge a 70,000 British pound payable. The premium is $.035, and the exercise price of the option is $1.30. If the spot rate at the time of maturity is $1.45, what is the total amount paid by the corporation if it acts rationally
Answer: $93450
Explanation:
The total amount paid by the corporation if it acts rationally will be calculated thus:
Dollars required to pay for 7000 pounds will be: = 70000 × $1.30 = $91000
Premium paid for buying option = 70000 × $0.035 = $2450
Amount of dollars paid = $91000 + $2450 = $93450
Therefore, the total amount paid by the corporation if it acts rationally is $93450.
Based on the corporate valuation model, Bernile Inc.’s value of operations is $750 million. Its balance sheet shows $50 million of short-term investments that are unrelated to operations, $100 million of accounts payable, $100 million of notes payable, $200 million of long-term debt, $40 million of common stock (par plus paid-in-capital), and $160 million of retained earnings. What is the best estimate for the firm’s value of equity, in millions?
Answer:
$500 million
Explanation:
Assets - Liabilities
= $750 - ($50+$100+$200+$100)
= $750 million - $450 million
=$300 million
Common stock = $40 million, Retained earnings = $160 miillon
Equity = $160 + $40 + $300 = $500 million
So, best estimate for the firm’s value of equity is $500 million.
For Team Andrews calculate both Market Capitalization and Earnings per Share (EPS) in the last round. Show calculations. In the next round, what would EPS be for Team Andrews be if Profits increased by 10% relative to this year and Andrews bought back 679,391 shares
Answer:
$14.32
Explanation:
Note: See below for attached picture for the question
Market Capitalization = Total outstanding shares * Last closing price of share
Market Capitalization = 2,679,391*$86.73
Market Capitalization = $232,383,581.43
Earning Per share = Profit after tax and Dividend / Total outstanding shares
Earning Per share = $26,054,226 / 2,679,391
Earning Per share = $9.72
The EPS when profits are increased by 10% ans shares are bought back is calculated as follows:
New profits = $26,054,226 + (10%*$26,054,226)
New profits = $26,054,226 + $2,605,422.60
New profits = $28,659,648.60
Total outstanding shares = 2,679,391 - 679,391
Total outstanding shares = 2,000,000
EPS = New profits / Total outstanding shares
EPS = $28,659,648.60/2,000,000
EPS = $14.32
The president of the United States receives an annual salary of $400,000, while some top baseball players such as Clayton Kershaw and Mike Trout earn more than $34 million annually. Based on marginal productivity theory, what does this say about their contributions to society
Answer:
Based on marginal productivity theory, this says that their contributions to society are not equal because society is willing to pay more for Clayton Kershaw and Mike Trout as baseball players than it is willing to pay for the president of the United States.
Explanation:
a) Data and Calculations:
Annual salary of the U.S. president = $400,000
Annual salary of baseball players = $34 million
For each dollar paid to the U.S. president, society is willing to pay a baseball player $85 ($34 million/$400,000)
b) The marginal productivity theory, which considers the contribution made by each factor of production, is based on the following assumptions that:
1) all units of the production factor, for example, labor, are homogeneous.
2) the baseball player can be substituted for the U.S. president.
3) there is perfect mobility of factors, from being a baseball player to being a U.S. president, and vice versa.
Brodrick Company expects to produce 21,000 units for the year ending December 31. A flexible budget for 21,000 units of production reflects sales of $504,000; variable costs of $63,000; and fixed costs of $141,000. Assume that actual sales for the year are $595,600 (26,900 units), actual variable costs for the year are $114,000, and actual fixed costs for the year are $133,000. Prepare a flexible budget performance report for the year.
Answer:
Brodrick Company
Flexible Budget Performance Report for the year ended December 31
Flexible Actual Variance
Budget Budget
Sales unit 21,000 26,900 5,900 units F
Sales revenue $645,600 $595,600 $50,000 U
Variable costs 80,700 114,000 33,300 U
Fixed costs 141,000 133,000 8,000 F
Total costs $221,700 $247,000 $25,300 U
Profit $423,900 $348,600 $75,300 U
Explanation:
a) Data and Calculations:
Flexible Budget for 21,000 units
Sales revenue = $504,000
Variable cost = $63,000
Fixed costs = $141,000
Flexing the budget with 26,900 units:
Sales revenue = $645,600 ($504,000/21,000 * 26,900)
Variable costs = $80,700 ($63,000/21,000 * 26,900)
An election is being held to fill three seats on the board of directors of a firm in which you hold stock. The company has 8,200 shares outstanding. If the election is conducted under cumulative voting and you own 430 shares, how many more shares must you buy to be assured of earning a seat on the board?
Answer:
1621 Shares
Explanation:
Calculation to determine how many more shares must you buy to be assured of earning a seat on the board
First step is to determine the shares needed
Shares needed = [1/4 (8,200) + 1]
Shares needed= 2050 + 1
Shares needed= 2051
Now let determine how many more shares must you buy
Buy =2051 -430
Buy= 1621 shares
Therefore how many more shares must you buy to be assured of earning a seat on the board will be 1621 Shares
The idea of rational expectations suggests that :_________
a) It is unrealistic for Congress to balance the federal budget during a recession.
b) Discretionary policies and fine-tuning can move the economy to full employment.
c) Economic policies are ineffective if the policies are anticipated.
Answer:C
Explanation:The theory believes that because people make decisions based on the available information at hand combined with their past experiences, most of the time their decisions will be correct.
Here are incomplete financial statements for Cullumber Company. Calculate the missing amounts.
CULLUMBER COMPANY
Balance Sheet
Assets
Cash $ 14,000 Inventory 17,000 Buildings 38,000 Total assets $69,000 Liabilities and Stockholders' Equity Liabilities Accounts payable $ 5,600 Stockholders' Equity Common stock enter a dollar amount
(a) Retained earnings enter a dollar amount
(b) Total liabilities and stockholders' equity $69,000 CULLUMBER COMPANY Income Statement Revenues $85,400 Cost of goods sold enter a dollar amount
(c) Salaries and wages expense 10,270 Net income $enter a dollar amount
(d) CULLUMBER COMPANY Retained Earnings Statement Beginning retained earnings $19,000 Add: Net income enter a dollar amount
(e) Less: Dividends 4,770 Ending retained earnings $34,000
Answer:
(a) Common Stock = $29,400. (b) Retained earnings = $34,000, (c) Cost of goods sold = $55,360, (d) Net Income = $19,770, (e) Net Income =$19,770
Explanation:
Note: See organized question as attached below to aid understanding
Net income = Ending retained earnings + Dividends - Beginning retained earnings
Net income = $34,000 + $4,770 - $19,000
Net income = $19,770
Net income = Revenue - Cost of goods sold - Salaries and wages expense
$19,770 = $85,400 - Cost of goods sold - $10,270
Cost of goods sold = $85,400 - $19,770 - $10,270
Cost of goods sold = $55,360
Total liabilities and stockholders equity = Accounts payable + Common stock + Retained earnings
$69,000 = $5,600 + Common stock + $34,000
Common stock = $69,000 - $5,600 - $34,000
Common stock = $29,400
Missing amounts :
Common Stock = $29,400
Retained earnings = $34,000,
Cost of goods sold = $55,360
Net Income = $19,770
Net Income = $19,770
Net income
= Ending retained earnings + Dividends - Beginning retained earnings
= $34,000 + $4,770 - $19,000
= $19,770
Net income
= Revenue - Cost of goods sold - Salaries and wages expense
$19,770 = $85,400 - Cost of goods sold - $10,270
Cost of goods sold
= $85,400 - $19,770 - $10,270
= $55,360
Total liabilities and stockholders equity
= Accounts payable + Common stock + Retained earnings
$69,000 = $5,600 + Common stock + $34,000
= $69,000 - $5,600 - $34,000
= $29,400
Learn more about calculation of retained earnings here: https://brainly.com/question/5709809
eone Corporation sells a product for $21 per unit, and the standard cost card for the product shows the following costs Direct material $2 Direct labor 3 Overhead (70% fixed) 10 Total $15 Refer to Leone Corporation. Leone received a special order for 1,200 units of the product. The only additional cost to Leone would be foreign import taxes of $2 per unit. If Leone is able to sell all of the current production domestically, what would be the minimum sales price that Leone would consider for this special order
Answer:
Leone Corporation
The minimum sales price that Leone should consider for this special order is:
= $16.20 per unit.
Explanation:
a) Data and Calculations:
Normal selling price = $21
Standard costs:
Direct materials $2
Direct labor 3
Overhead (70% fixed) 10
Total $15
Variable costs:
Direct materials $2
Direct labor 3
Overhead (30% fixed) 3
Total $8
Contribution per unit $13 ($21 - $8)
Contribution margin ratio = $62%
Costs of special order:
Variable costs $8 * 1,200 = $9,600
Import taxes $2 * 1,200 = 2,400
Total variable costs = $10
Selling price = $16.20 ($10 * 1.62)
Seymour Corporation manufactures batons. Seymour can manufacture 300,000 batons a year at a variable cost of $750,000 and a fixed cost of $450,000. Based on Seymour's predictions, 240,000 batons will be sold at the regular price of $5.00 each. In addition, a special order was placed for 60,000 batons to be sold at a 40 percent discount off the regular price. The unit relevant cost per unit for Seymour's decision is Select one: a. $3.00 b. $1.50 c. $2.50 d. $4.00
Answer:
c. $2.50
Explanation:
Calculation to determine The unit relevant cost per unit for Seymour's decision is
Unit relevant cost per unit=Variable cost/Number of banton units manufacture
Let plug in the formula
Unit relevant cost per unit=$750,000/350,000 units
Unit relevant cost per unit=$2.50
Therefore The unit relevant cost per unit for Seymour's decision is $2.50
The table shows Robinson Crusoe's production possibilities.
If Crusoe increases production of berries from 84.0 pounds to 104.0 pounds and production is efficient, his opportunity cost of producing 1 pound of berries is 1.3 pound of fish.
Crusoe's opportunity cost of producing an extra pound of berries____as he produces more berries
A. increases.
B. decreases.
C. sometimes increases and sometimes decreases.
D. does not change.
Possibility Berries (pounds) Fish (pounds)
A 0 144.0
B 16.0 140.0
C 30.0 132.0
D 42.0 120.0
E 52.0 104.0
F 84.0 84.0
G 60.0 60.0
H 66.0 32.0
I 70.0 0
Answer:
increases
Explanation:
Demand increases in an increasing-cost industry that is initially in long-run competitive equilibrium. After full adjustment, price will be
Answer: above its original value
Explanation:
An increasing-cost industry simply means the industries whereby there's a rise in the average costs when the output increases.
Demand increases in an increasing-cost industry which is in long-run competitive equilibrium. After full adjustment, price will be above its original value.
A put option that expires in six months with an exercise price of $45 sells for $2.34. The stock is currently priced at $48, and the risk-free rate is 3.5 percent per year, compounded continuously. What is the price of a call option with the same exercise price
Answer: $6.12
Explanation:
The price of a call option with the same exercise price will be calculated thus:
According to Put-Call Parity, it should be noted that the Call Price will be:
= Put Price + Stock Price - [Exercise Price × e ^-(r × t)]
= $2.34 + $48 - [$45 × e ^ -[0.035 * (6/12)]]
= $50.34 - [$45 × 0.9827]
= $50.34 - $44.22
= $6.12
Therefore, the price is $6.12
Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 5.01 percent. Selected operating data for the three divisions follow: Peak View Grand Sales revenue$332,000$233,000$311,000 Cost of goods sold 204,000 116,000 183,000 Miscellaneous operating expenses 36,000 30,000 33,000 Average invested assets 1,310,000 920,000 1,105,000 Required: 1. Compute the return on investment for each division. 2. Compute the residual income for each division.
Answer and Explanation:
The computation is shown below:
1. The return on investment is
As we know that
Return on Investment = Net operating profit ÷ average invested assets × 100
But before that the Net Operating Profit should be determined
Particulars Peak View Grand
Sales revenue $332,000 $233,000 $311,000
Less: Cost of
goods sold ($204,000) ($116,000) ($183,000)
Miscellaneous
operating Expenses ($36,000) ($30,000) ($33,000)
Net Profit $92,000 $87,000 $95,000
Now
Return on Investment is
For peak, it is
= $92,000 ÷ $1,310,000
= 7.02%
for view, it is
= $87,000 ÷ $920,000
= 9.46%
for grand, it is
= $95,000 ÷ $1,105,000
= 8.60%
2. The residual income is
We know that
Residual Income = Net operating income - (Minimum required rate of return × average invested assets)
For Peak, it is
= ($92,000 - (5.01% of $1,310,000)
= $26,369
For view, it is
= ($87,000 - (5.01% of $920,000)
= $40,908
And, for grand, it is
= ($95,000 - (5.01% of $1,105,000)
= $39,640
A bank has an 8 percent reserve requirement, $10,000 in deposits, and has loaned out all it can, given the reserve requirement. a. It has $1,250 in reserves and $8,750 in loans. b. It has $8,000 in reserves and $2,000 in loans. c. It has $800 in reserves and $9,200 in loans. d. It has $80 in reserves and $9,920 in loans.
Answer:
c. It has $800 in reserves and $9,200 in loans.
Explanation:
Calculation to determine the given reserve requirement
Reserves=8%*$10,000
Reserves=$800
Loans=$10,000-$800
Loans=$9,200
Therefore given the reserve requirement It has $800 in reserves and $9,200 in loans.
1. Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $25,000 based on the belief that it would increase that division's sales by 16%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented
Answer: Hello your question is incomplete below is the complete question
answer :
1) attached below
2a) Increases by $25,176
Explanation:
1) Attached below is the contribution format income statement
2a) Determine by how much the net operating income will change
monthly advertising increment = $25,000
Assumed increase in division's sales = 16%
first step : determine increment in contribution margin of west division
= 313,600 * 0.16 = 50,176
change in net operating income = 50176 - monthly advert increment
= 50176 - 25,000 = $25,176 ( increases )
The following persons own Schlecht Corporation, a non-U.S.entity.
Jim, U.S. individual 35%
Gina, U.S. individual 15%
Marina, U.S. individual 8%
Pedro, U.S. individual 12%
Chee, non-U.S. individual 30%
None of the shareholders are related. Subpart F income for the tax year is $300,000. No distributions are made. Which of the following statements is correct?
a. Schlecht is not a CFC.
b. Chee includes $90,000 in gross income.
c. Marina is not a U.S. shareholder for purposes of determining whether Schlecht is a CFC.
d. Marina includes $24,000 in gross income.
Answer: Marina is not a U.S. shareholder for purposes of determining whether Schlecht is a CFC.
Explanation:
From the options given, the correct statement is that "Marina is not a U.S. shareholder for purposes of determining whether Schlecht is a CFC".
A controlled foreign corporation (CFC) refers to a corporate entity which is duly registered and then conducts business in a different country than where it was registered and where the controlling owners lives.
A controlled foreign corporation (CFC) is a foreign corporation whereby more than 50% of the total voting power is owned by the person.
By tying the salaries of top corporate managers to the price of the corporation's stock, corporations hope to avoid:
Answer:
the principal-agent problem
Explanation:
In the case when there is a tied of the top corporate managers salary with the price of the corporation stock so here the corporation should avoid the principal agent problem as it deals with the conflict with respect to the priorities that lies between the person and the representative.
So the above should be the answer
Compute the income tax liability for each of the following unrelated C corpo- rations.
a. Darter Corporation has taxable income of $68,000.
b. Owl Corporation has taxable income of $10,800,000.
c. Toucan Corporation, a personal service corporation, has taxable income of $170,000.
Answer and Explanation:
The computation of the income tax liability for each situation is given below:
a. Tax Liability on Darter Corporation is
= 21% of $68,000
= $14,280
b. Taxable liability On Owl Corporation is
= 21% of $10,800,000
= $2,268,000
c. Tax liability on On Toucan Corporation, a personal service corporation is
= 21% of $170,000
= $35,700
In this way it should be calculated
Roy Micky wants to open a new nakamal (kava bar) in port villa. He knows he is entering a highly competitive market but is determined to give it a ago as it is something his family have always wanted.
There are 96 other Nakamals in port vila that Roy will have to compete with. In addition to this, he does not have an established presence in the market. There are just 2 of his concerns. The others are required to come from you.
1) List and justify (from an operations perspective) 5 key things that he should consider in setting up his business. In answering this question, this of the different chapters that have ccomprised this course - you should get a point from each chapter. 20 marks
NB : This question is asking for 5 points of concern - each carries 4 marks.
Answer:
a) The financial return on investment
b) Demand curve, Is the demand of nakamal is rising or is constant
c) Develop a strategy to create a customer base
d) Devise marketing strategy
e) Value addition in his product and service in order to stand out of others.
Explanation:
a) The financial return on investment
b) Demand curve, Is the demand of nakamal is rising or is constant
c) Develop a strategy to create a customer base
d) Devise marketing strategy
e) Value addition in his product and service in order to stand out of others.
roles of competition policy authorities in south Africa
Answer:
I hope you understand please follow me
Salt Foods purchases forty $1,000, 7%, 10-year bonds issued by Pretzelmania, Inc., for $37,282 on January 1. The market interest rate for bonds of similar risk and maturity is 8%. Salt Foods receives interest semiannually on June 30 and December 31.
1. Record the investment in bonds.2. Record receipt of the first interest payment on June 30.
Answer and Explanation:
The journal entries are shown below;
a. Investment Dr $37,282
To Cash $37,282
(being the investment in bonds is recorded)
b.
Cash (($1,000 × $40) × 0.07 × 6 ÷ 12) $1,400
Investment $91
To interest revenue ($37,282 ×8% × 6 ÷ 12) $1,491
(Being the first interest payment is recorded)
On January 2013, Pennington Bancorp acquired $100,000 of marketable securities and classified them as Available for Sale. On March 31, 2013, Pennington prepared its 10-Q and marked the securities down to their market value of $85,000. On April 4, 2013, Pennington sold the securities for $93,000 cash. Which of the following items would be increased by the sale of the marketable securities?
a. Cash from Financing Activities
b. Net Income
c. Marketable Securities
d. Accumulated Other Comprehensive Income
e. Cash from Investing Activities
Answer:
b. Net Income
e. Cash from Investing Activities
Explanation:
Calculation to determine Which of the following items would be increased by the sale of the marketable securities
Using this formula
Gain from investment = Selling price of the security - Value of the security
Let plug in the formula
Gain from investment= $93,000 - $85,000
Gain from investment= $8,000
Based on the above calculation The sell of marketable security will INCREASE CASH which means that CASH FROM INVESTING ACTIVITIES will increase and NET INCOME will increase.
Therefore the items that would be increased by the sale of the marketable securities are :
b. Net Income
e. Cash from Investing Activities
. Sam Rothstein wants to borrow $15,500 to be repaid in quarterly installments over five years at 16% compounded quarterly. How much will his payment be
Answer:
$1,140.52 per Quarter
Explanation:
Loan Amount (P) = $15,500
Quarterly Interest Rate (n) = 4.00% [16.00% / 4]
Number of period (n) = 20 Periods [5 * 4]
Quarterly Loan Payment = [P * {r*(1+r)^n} ] / [(1+r)^n - 1]
= [$15,500 * {0.04 * (1+0.04)^20}] / [(1+0.04)^20 - 1]
= [$15,500 * {0.04 * 2.1911231}] / [2.1911231 - 1]
= [$15,500*0.0876449] / 1.1911231
= $1,358.50 / 1.1911231
= $1,140.52 per Quarter
Vaughn Manufacturing recorded operating data for its auto accessories division for the year. Sales $810000 Contribution margin 280000 Total direct fixed costs 90000 Average total operating assets 250000 How much is ROI for the year if management is able to identify a way to improve the contribution margin by $40000, assuming fixed costs are held constant?a. 12%.b. 25%.c. 45%.d. 18%.
Answer:
sfffffffffffffdsfdsdfbgdb
Explanation:
1. A manufacturer has 750 meters of cotton and 1000 meters of polyester. Production of a sweatshirt requires 1 meter of cotton and 2 meters of polyester, while production of a shirt requires 1.5 meters of cotton and 1 meter of polyester. The sale prices of a sweatshirt and a shirt are $30 and $24, respectively. How many of each type need to be sold to maximize sales
Answer:
500 units of sweatshirt and zero unit of shirt need to be sold to maximize sales.
Explanation:
Note: See the attached excel file for the calculation of the total revenue of each type.
From the attached excel file, we have:
Highest units of sweatshirt that can be sold = 500Highest units of shirt that can be sold = 500The highest total revenue is $15,000 (in bod red color) and this occurred when 500 units of sweatshirt is sold and zero units of shirt is sold.Therefore, 500 units of sweatshirt and zero units of shirt need to be sold to maximize sales.
When workers move from one job to another it is
described as
A Job Rotation
B Job Enrichment
C Job Enlargement
D Job Simplification
Michel Company owns 75% of the outstanding common stock of Aber Corp. On its current consolidated income statement, Michel Company should report:
Answer:
Michel Company
On its current consolidated income statement, Michel Company should report:
the consolidated revenue and expenses of Michel Company and Aber Corp.
Explanation:
There is a 25% (100% - 75%) share for non-controlling or minority interest in the net income or loss of the Aber Corp. With this, readers of the financial statements of the parent company, Michel Company, are well-informed that only 75% of the net income or loss from the Aber Corp. actually belongs to the stockholders of Michel Company.
