Answer:
$6,106.39
Explanation:
first we must find out the daughter's total university expenses:
college expenses in 5 years = $12,500 x (1 + 5%)⁵ = $15,953.92
we must find the present value of the college costs:
PV = $15,953.92 + [$15,953.92 x 2.7232 (PV annuity factor, 5%, 3 periods)] = $59,399.63
since the daughter already has $7,500, she will deposit that money and will have $7,500 x (1 + 8%)⁵ = $11,019.96 in 5 years, that means that she is $48,379.67
we now have our future value, the interest rate and the number of periods, we are missing the annuity due contributions:
FV = annual contribution x FV annuity due factor
$48,379.67 = annual contribution x 7.9228 (FV annuity due factor, 8%, 6 periods)
annual contribution = $48,379.67 / 7.9228 = $6,106.39
Jessica from the legal team needs to make a presentation on intellectual property rights. She is making this presentation for content writers who use content from various sources. This is the first time she is making a presentation. She does extensive research by reading up relevant resource materials. She puts together a presentation that she thinks is informative and effective. The presentation is due tomorrow. Before the presentation, she feels that it would be beneficial if someone else takes a look at her presentation slides. So, she shares her deck with Alison, her colleague, for a review. Alison feels that the deck is too detailed and content heavy. What should Jessica do in this situation
Answer:
Jessica should utilize the advice offered by Alison to edit her presentation slides, removing unnecessary details.
Explanation:
Editing the presentation will enable Jessica to get rid of unnecessary and unwanted stuff. It will also ensure that the presentation is error-free and achieves grammatical accuracy. Presentation slides should not be detailed since the required details are usually given during the proper presentation.
The body that has the power to prescribe the accounting practices and standards to be employed by companies that fall under its jurisdiction is the
Answer:
Security and Exchange Commission (SEC).
Explanation:
The Securities and Exchange Commission (SEC) is a governmental agency saddled with the sole responsibility of regulating the securities or capital markets, as well as protecting investors in a country.
In the United States of America, the Securities and Exchange Commission (SEC) as an independent government agency was established under the Securities Act of 1933 and the Securities and Exchange Act of 1934 of the United States of America. It has the power to propose securities rules and regulations, and enforce federal securities law in the securities market.
The body that has the power to prescribe the accounting practices and standards to be employed by companies that fall under its jurisdiction is the SEC.
Suppose that Sean, an economist from an AM talk radio program, and Yvette, an economist from a public television program, are arguing over saving incentives. The following dialogue shows an excerpt from their debate:
Neha; A popular topic for debate among politicians as economists is the idea of providing government assistance for health.
Lorenzo: I think it is oppressive for the government tax people Who take care of themselves in order to pay for health insurance for those Who are obese.
Neha: I disagree. I think government funding of health insurance is useful to ensure basic fairness.
The disagreement between these economists is most likely due to________
Despite their differences, with which proposition are two economists chosen at random most likely to agree?
a. Tariffs and import quotas generally reduce economic welfare.
b. Lawyers make up an excessive percentage of elected officials.
c. Minimum wage laws do more to harm low-skilled workers than help them.
Answer:
The disagreement between these economists is most likely due to________
values judgement.
Despite their differences, the proposition which two economists chosen at random most likely to agree on is:
b. Lawyers make up an excessive percentage of elected officials.
Explanation:
While economists tend to mainly disagree over differences in values and scientific judgment, they also disagree due to differences in perception over reality. They tend to disagree over methods and conclusions reached by different economists but tend to agree on non-economic issues whenever they are presented to them for assessment.
How does the trade benefit the society?
Answer:
Trade is critical to America's prosperity - fueling economic growth, supporting good jobs at home, raising living standards and helping Americans provide for their families with affordable goods and services.
In 2009, Democratic President Barack Obama called on Congress to pass comprehensive health care reform. The goal of the legislation was to expand access to health insurance to the more than 40 million uninsured Americans and lower the overall cost of health care.
The Democratic-controlled House of Representatives considered many different reforms, including a government-sponsored health plan with a public option and a requirement that all individuals purchase health care known as an individual mandate. Republicans opposed both ideas and put forth their own plans which included tax incentives and methods to lower costs when seeing a doctor. In the end, a bill called the Affordable Care Act (ACA) was passed, which included an individual mandate but not a public option. The final vote in the House was 220-215. Only one Republican supported the bill, while 39 Democrats voted against it.
Republicans immediately began campaigning on a platform of repealing the ACA. After regaining control of the House of Representatives in the 2010 elections, the Republicans passed over 60 bills repealing the ACA. Each time, the legislation stalled in the Democratic-controlled Senate. When Republicans became the majority in both chambers following the 2014 elections, they finally passed a repeal of the Affordable Care Act. That legislation was vetoed by President Obama.
After reading the scenario, please respond to A, B, and C below.
a. Referencing the scenario, describe the party control of government when Congress passed legislation in 2014 to repeal the ACA, and explain how that party control could have affected the attempt to repeal the ACA in 2014.
b. Referencing the scenario, explain why a Republican representative following the delegate model of representation might have cast a vote in favor of the ACA bill in 2009 when it was originally passed.
c. Describe how the judicial branch could be used to implement the Republican’s legislative goals despite President Obama’s veto. Explain how this use of the judicial branch might ultimately affect the success of the Affordable Care Act.
Answer:
a. The party control of government when Congress passed legislation in 2014 to repeal the ACA was when Republicans gained majority seats in both chambers of Congress. This Republican control of Congress was the catalyst for the repeal of the ACA in 2014.
b. The Republican representative who cast a vote in favor of the ACA bill in 2009 followed strictly his constituency mandate.
c. When President Obama vetoed the ACA repeal, the Republicans could proceed to court to try to use the judicial branch of government to implement their legislative goals by requesting for constitutional interpretation of the repealed bill.
If this had happened, it would have seriously hampered the implementation and success of the Affordable Care Act for partisan reasons.
Explanation:
a) Congress is the legislative arm of government that makes the law. The executive implements the law. The judiciary is in charge of the interpretation and application the law to real situations. But when the President vetoes a bill, Congress can override the veto by ensuring that 2/3 of both chambers pass the law. Alternatively, Congress can ask for a judicial interpretation.
Congress is termed as the legislative party that focuses on the implementation of the law and framing of the laws for the benefit of the general public and the citizens. The judiciary in congress is held as in charge of the interpretation and the formation of laws.
The answers to the above questions are:
a. The party of the government was the republicans when congress passed the legislation in the year 2014 for the laying of the appeal of ACA. This Republican control of Congress was the catalyst for the repeal of the ACA in 2014.
b. The Republican representative who cast a vote in favor of the ACA bill in 2009 followed strictly his constituency mandate.
c. When President Obama voted for the ACA repeal, the Republicans proceeded to court to use the judicial branch of government for the implementation of the legislative goals in the request of constitutional interpretation of the appealed bill.
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Jody and Buster both produce nuts and coffee. They each prefer to consume a diet that is half nuts and half coffee. Both have access to the same resources. If Jody focuses on producing only coffee, she can produce 20 pounds of coffee in a week. If she only produces nuts, she can produce 40 pounds of nuts in a week. Buster can produce a maximum of 15 pounds of coffee in a week. He could also choose to produce only nuts, in which case he can produce 20 pounds of nuts a week.
Who has an absolute advantage in nut production? Choose one:
a. Brad has an absolute advantage in coffee, and Jody has an absolute advantage in nuts.
b. Jody has an absolute advantage in coffee, and Brad has an absolute advantage in nuts.
c. Jody has an absolute advantage in both coffee and nuts.
d. Brad has an absolute advantage in both coffee and nuts.
Answer:
c
Explanation:
A person has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other people.
Jody can produce either 20 pounds of coffee or 40 pounds of nuts
Buster can produce either 15 pounds of coffee or 20 pounds of nuts
It can be seen that Jody produces more pounds of both goods. Thus Jody has an absolute advantage in the production of both goods
Ramona Company has the following labor-related data. Standard labor hours for output: 15,000 hours Standard labor rate: $10 per hour Actual labor rate: $8 per hour Actual labor hours: 17,500 hours Given this information, the labor EFFICIENCY variance is
Answer:
$25,000 UnfavourableExplanation:
The labor Efficiency variance = ( Actual labor Hrs × Standard rate) - ( Standard labor Hr × Standard rate)
= ( 17500 × 10) (15000 × 10)
= 175000 - 150000
= $25,000 UnfavourableProvided that the standard cost of actual labor hour is greater than the standard labor cost. Then, the variable is unfavorable.
Q.2Tullahoma Company purchased equipment for $27,500. It depreciated the equipment over a fiveyear life by the double-declining-balance method until the end of the second year, at which time the asset was sold for $8,500. Calculate the gain or loss on the sale at the end of the second year.
Answer:
A loss of $1400
Explanation:
The double-declining method uses twice the straight-line depreciation method rate in calculating the depreciation amount.
The asset has a useful life of 5 years. The straight-line depreciation rate = 1/5 x 100
=20%.
The double-declining rate will be 40%
The depreciation schedule for two years will be as follows.
Open. Bal Dep. rate Dep. Amount Book value
$27,500 40% $11,000 $16,500.00
$16,500 40% $6,600 $9,900.00
The equipment was sold for $8,500
net gain or loss will be the selling price - book value
=$8,500 - $9,900
=- $1,400
A loss of $1400
For each of the three situations, state if the accounting method used is correct or incorrect. If correct, identify which principle or assumption supports the method used. If incorrect, identify which principle or assumption has been violated.
a. Tina Company owns buildings that are worth substantially more than they originally cost. In an effort to provide more relevant information, Tina reports the buildings at fair value in its acconting reports.
b. Kingston Company includes in its accounting records only transaction data that can be expressed in terms of money.
c. Roger Holloway, owner of Roger's Photography, records his personal living costs as expenses of the business.
Answer:
a. INCORRECT.
Principle violated : HISTORICAL COST PRINCIPLE
Under GAAP, fixed assets should be recorded at their original cost in the balance sheet. In recording at fair value, Tina Company is in violation of this.
b. CORRECT.
Principle used: MONETARY UNIT ASSUMPTION
Under this principle, transactions should have a monetary value that it can be expressed in in the books so as to ensure that it is measurable.
c. INCORRECT.
Principle violated : SEPERATE ENTITY ASSUPTION
This principle states that the personal transactions of the owner and that of the business should be recorded separately so that the business's financial records can be as accurate as possible.
The stage which relates to
development of decision making
abilities, interpersonal and technical
competencies is known as:
Select one:
a. Facilitating the improvement
of quality and employee
productivity
b. Norming
c. Storming
d. Forming
= Storming
Explanation:
The stage which relates to
development of decision making
abilities, interpersonal and technical
competencies is known as storming
'Team development' consists of five distinct stages with each having its own significance in ensuring smooth and effective performance by every member for attaining the desired goals.
The stage of team development that is associated with making a decision by ruling out internal conflicts or competencies would be:
c). Storming
'Storming' is described as the stage at which the various members of the team come up with a variety of ideas. Each member attempts to make sure that his/her idea stands out and this leads to arguments, competition, and conflicts among the team members. As a result, the original goal of the team is often sidelined. Therefore, the leader plays a key role in managing these conflicts and strike focus back to the goal. The leader of the team communicates with the team and makes a decision that helps in gathering the team as a unit for setting out the norms in the next stage.
Thus, option C is the correct answer.
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Use the indirect pattern when you need to soften or delay bad news until after an explanation is given. Understanding the four components of the indirect pattern will help you craft messages that convey empathy, present reasons, cushion bad news, and close pleasantly. What buffering technique are you using if you provide objective information in your opening
Answer:
Facts.
Explanation:
You can use the indirect pattern when you need to soften or delay bad news until after an explanation is given. Basically, understanding the four components of the indirect pattern will help you craft messages that convey empathy, present reasons, cushion bad news, and close pleasantly.
Hence, if you provide objective information in your opening the buffering technique you are using is facts.
This ultimately implies that, the opening of a message can be buffered through the inclusion of facts and as such introducing a bad news objectively. Also, the facts used as a buffer technique should be concise, relevant and straightforward.
An organization that is global within two years of its inception with a major focus on foreign markets rather than its domestic market can best be described as a
Answer: born global
Explanation:
An organization that is global within two years of its inception with a major focus on foreign markets rather than its domestic market can be said to be born global.
Since the day such organization is established, they seek to gain competitive advantage over their rivals by using latest technologies and selling their products in different countries.
The two common stock ratios are the price–earning (PE) ratio and the
ratio. The latter ratio is used to calculate the PE ratio by dividing the
of equity shares by it.
Answer:
The two common stock ratios are the price–earning (PE) ratio and the earnings per share (EPS) ratio. The latter ratio is used to calculate the PE ratio by dividing the price of equity shares by it.
Explanation:
The Price-earnings ratio measures investors' assessments of an entity's future earnings. It is determined by obtaining the share price of the company's stock and dividing it by the EPS. It is expressed in number of times of the EPS that investors are willing to pay for a share in the company's equity. The earnings per share (EPS) indicates the profit or income which a company generates for each share. It is determined by dividing a company's net profit by the number of outstanding common shares. It is widely used to estimate corporate value.
Answer:market price
Explanation:
The liabilities of Oriole Company are $117,000 and the owner’s equity is $227,000. What is the amount of Oriole Company’s total assets?
Answer:
$344,000
Explanation:
Assets, liabilities, and equity combine to form the accounting equation. their relationship in the accounting equation is as follows,
Assets = Equity + Liabilities
In this case,
Asset =??
Liabilities=$117,000
Equity =$227,000
Therefore,
Assets = $117,000 + $227,000
Assets = $344,000
Careers cannot be built from any number of jobs, only a select few. True or false
Answer:
False
Explanation:
I took a quiz and looked at results.
Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation system product A has been assigned overhead of $2.82 per unit while product B has been assigned $13.58 per unit. Management feels that an ABC system will provide a more accurate allocation of the overhead costs and has collected the following cost pool and cost driver information:
Cost Pools Activity Costs Cost Driver Driver Consumption
Machine setup $ 158,000 Setup hours 2,000
Materials handling 112,000 Pounds of materials 16,000
Electric power 25,000 Kilowatt-hours 25,000
The following cost information pertains to the production of A and B, just two of its many products:
A B
Number of units produced 5,000 10,000
Direct materials cost $32,000 $41,000
Direct labor cost $41,000 $38,000
Number of setup hours 100 200
Pounds of materials used 1,000 1,000
Kilowatt-hours 2,000 4,000
Use activity-based costing to determine a unit cost for each product. (Round your final answers to 2 decimal places.)
Answer:
Unitary cost A : $17.98
Unitary cost B : $10.58
Explanation:
First, we need to calculate the predetermined overhead rate for each activity.
The predetermined manufacturing overhead rate = Total estimated overhead costs for the period / Total amount of allocation base
Machine setup
= 158,000/2,000
= $79 per setup hour
Materials handling
= 112,000/16,00
= $7 per pound
Electric power
= 25,000/25,000
= $1 per kilowatt.
Now, we can allocate overhead to each product
Allocated MOH = Estimated manufacturing overhead rate × Actual amount of allocation base
Product A
Machine setup
= $79 × 100
= $7,900
Materials handling
= $7 × 1,000
= $7,000
Electric power
= $1 × 2,000
= $2,000
Total = $16,900
Product B
Machine setup
= $79 × 200
= $15,800
Materials handling
= $7 × 1,000
= $7,000
Electric power
= $1 × 4,000
= $4,000
Total = $26,800
Finally, the total cost and the unitary cost
Product A.
Total cost
= Direct materials + Direct labor + Allocated MOH
= $32,000 + $41,000 + $16,900
= $89,900
Unitary cost
= Total cost/Number of units produced.
= $89,900/5,000
= $17.98
Product B
Total cost
= Direct materials + Direct labor + Total allocated MOH
= $41,000 + $38,000 + $26,800
= $105,800
Unitary cost
= Total cost/Number of units produced
= $105,800/10,000
= $10.58
Prices below the free market equilibrium are inefficient because the willingness to pay by someone to consume an additional unit ________ the marginal cost to someone for producing that unit. Group of answer choices exceeds equals None of the above; efficiency is defined in terms of natural resources, not market equilibrium. is less than
Answer: is less than
Explanation:
The equilibrium price in a free market economy represents the point where marginal revenue and marginal costs are being maximised.
If the price falls below this level therefore, a situation arises where the marginal cost of producing this good is more than the marginal price that people can pay for this good which would lead to losses.
Employees in the defense industry have greater job security and higher pay when the country is engaged in major military conflicts, therefore it is good for the country to be involved in military conflicts is an example of:
Answer: C the fallacy of composition.
Explanation:
The Fallacy of Composition is meant to explain the false logic that people apply when they believe that because something is true of a subsection of something, then that thing must be true for the whole thing.
For instance, my phone's batter is made of lithium so my entire phone must be made of lithium.
In this scenario, the logic is that it is good to be involved in military conflict because it favors the nation if it favors a subset (employees in defense) which is flawed because other industries might suffer. This however, represents the fallacy of composition.
Which of the following is the Federal Reserve unable to directly do
Lend emergency funds to banks.
Increase and decrease the interest rate in the economy by a certain percentage.
Adjust reserve requirements.
Buy and sell U.S. securities.
Answer:
Increase and decrease the interest rate in the economy by a certain percentage
Explanation:
The Federal Reserve can influence the prevailing interest rates. However, it cannot increase or decrease the interest rate in the economy by a certain percentage. The Federal Reserve influences interests rate by adjusting the fed funds rate. The feds fund rate is the interest rate that banks charge each other when they borrow from each other.
The Federal Reserve can lend to commercial banks, Adjust reserve requirements, and buy and sell U.S. securities.
Select the correct answer.
Workers like authoritarian leaders best.
A. True
B. False
Answer:
A
Explanation:
A debt-free firm has total sales of $22,980, costs of $14,715, and depreciation of $6,045. What is the operating cash flow at a tax rate of 23 percent?
Answer:
$7,754.4
Explanation:
Given the above information, first we need to calculate profit before tax
Profit before tax = Total sales - Cost of goods sold - depreciation
= $22,980 - $14,715 - $6,045
= $2,220
Profit before tax = $2,220
Tax rate = 23%
Then, we will calculate
Net profit before tax
= Profit before tax × ( 1 - tax rate)
= $2,220 × ( 1 - 23%)
= $1,709.4
Then,
Operating cash flow
= Net profit + depreciation
= $1,709.4 + $6,045
= $7,754.4
Pedregon Corporation has provided the following information: Cost per UnitCost per Period Direct materials$ 6.35 Direct labor$ 3.75 Variable manufacturing overhead$ 1.50 Fixed manufacturing overhead $ 15,000 Sales commissions$ 0.50 Variable administrative expense$ 0.55 Fixed selling and administrative expense $ 4,500 If the selling price is $20.60 per unit, the contribution margin per unit sold is closest to:
Answer:
$ 7.95
Explanation:
Calculation for what the contribution margin per unit sold is closest to:
Sales price$ 20.60
Less: VARIABLE COSTS
Direct material$ 6.35
Direct labor$ 3.75
Variable manufacturing overheads$ 1.50
Sales commission$ 0.50
Variable admin expenses$ 0.55
Total Variable costs$ 12.65
Contribution margin$ 7.95
($20.60-$12.65)
Therefore the the contribution margin per unit sold is closest to:$ 7.95
Please sort the following into factors most applicable for comparable company analysis and factors most applicable for precedent transaction analysis:
a. Comparable Company Analysis
b. Precedent Transaction Analysis
Answer:
Difficult to adjust for Intangibles - Precedent Transaction Analysis
Valuation Multiples reflect real M&A transactions - Precedent Transaction Analysis
Valuation Multiples reflects trading multiples on public markets - Comparable Company Analysis
Potentially reveals information about market demand for certain types of assets and industry trends - Comparable Company Analysis
May include special purchaser considerations such as Synergies. - Precedent Transaction Analysis.
Explanation:
Comparable company analysis is process of examining businesses that operates in same sector using valuation multiples. It helps business to find the analysis based on comparable features of business. Precedent transaction analysis is the process in which previous transactions are referred as sample for the new transactions analysis.
The factors that most applicable for comparable company analysis as well as factors most applicable for precedent transaction analysis can be sorted as;
Difficult to adjust for Intangibles (Precedent Transaction Analysis)Valuation Multiples reflect real M&A transactions (Precedent Transaction Analysis)Valuation Multiples reflects trading multiples on public markets ( Comparable Company Analysis)Potentially reveals information about market demand for certain types of assets and industry trends ( Comparable Company Analysis)May include special purchaser considerations such as Synergies. (Precedent Transaction Analysis)
A comparable company analysis can be regarded as process involving evaluation of the the value of a company by the utilization of metrics of other businesses.
Precedent transaction analysis on the other hand can be regarded as the valuation method which involves a process whereby price is been paid as regards similar companies in the past is been used as value indicator.
Therefore, Difficult to adjust for Intangibles requires a precedent Transaction Analysis.
CHECK THE COMPLETE QUESTION BELOW;
Please sort the following into factors most applicable for comparable company analysis and factors most applicable for precedent transaction analysis:
a. Comparable Company Analysis
b. Precedent Transaction Analysis
Difficult to adjust for Intangibles -
Valuation Multiples reflect real M&A transactions
Valuation Multiples reflects trading multiples on public market
Potentially reveals information about market demand for certain types of assets and industry trends
May include special purchaser considerations such as Synergies. -
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Echo Corporation had the following balances immediately prior to writing off a $100 uncollectible account:
Current assets $30,000
Accounts receivable 3,300
Allowance for doubtful accounts 300
Current liabilities 10,000
Required:
Calculate the following amounts or ratios and determine the relationship between the amount or ratio before the write-off (x) with the amount or ratio after the write-off (y);
Amount or Ratio Possibilities
1. Current ratio a. x more than y
2. Net accounts receivable balance b. x equals y
3. Gross accounts receivable balance c. x less than y
d. cannot be determined
Answer:
1. Current Ratio
= Current assets/ Current liabilities
= 30,000/10,000
= 3
b. x equals y
The $100 uncollectible will be written off from the Allowance for doubtful debt account and so will not affect the Accounts Receivable (current asset) so the ratio before and after write-off will be equal.
2. Net accounts receivable balance
= Accounts receivable - Allowance for doubtful accounts
= 3,300 - 300
= $3,000
b. x equals y
The $100 uncollectible will be taken from the Allowance account and so will not affect the reduction from the Accounts receivable.
3. Gross accounts receivable balance
Before write off = $3,300
After write off = 3,300 - 100 = $3,200
a. x more than y
Using the gross method means that there is no Allowance account and the write-off will completely be from the Accounts receivable so the amount before write-off will be more than the amount after.
We can conclude from the above information that any rational, risk-averse investor would be better off adding Security AA to a well-diversified portfolio over Security BB. a. True b. False
Answer: False
Explanation:
First calculate the expected value for both securities:
Security AA:
= (0.2 * 30%) + (0.6 * 10%) + (0.2 * -5%)
= 6% + 6% + (-1%)
= 11%
Security BB
= (0.2 * -10%) + (0.6 * 5%) + (0.2 * 50%)
= -2% + 3% + 10%
= 11%
They both have the same expected return so the investor will be indifferent. Statement is therefore false.
The first step in the decision-making process requires you to do what?
Identify the decision that needs to be made and determine the desired goal.
Set aside some time to reflect on your career path.
Chart the decisions your competitors have made in the past three years.
Create a survey and send it to everyone in your company.
Answer:
think.....all you have to do is think XD
but in all honesty the answer is a determine your descision
Metroplex Corporation will pay a $2.50 per share dividend next year. The company pledges to increase its dividend by 4.70 percent per year indefinitely. Required: If you require an 13.80 percent return on your investment, how much will you pay for the company's stock today
Answer: $27.47
Explanation:
Given: Growth rate = 4.70% per year = 0.0470 per year
Dividend of next year = $2.50
Expected rate of return on Stock = 13.80% =0.1380
Current price = (Dividend of next year ) ÷ (Expected rate - Growth rate)
= (2.50)÷ (0.1380-0.0470)
= (2.50) ÷ (0.091)
≈ $27.47
Hence, you will pay $27.47 for the company's stock today.
Consider the following transactions. Receive cash from customers, $16,000. Pay cash for employee salaries, $10,000. Pay cash for rent, $4,000. Receive cash from sale of equipment, $9,000. Pay cash for utilities, $2,000. Receive cash from a bank loan, $5,000. Pay cash for advertising, $8,000. Purchase supplies on account, $4,000.
Answer:
The ending balance is $22,000.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Consider the following transactions. Receive cash from customers, $16,000. Pay cash for employee salaries, $10,000. Pay cash for rent, $4,000. Receive cash from sale of equipment, $9,000. Pay cash for utilities, $2,000. Receive cash from a bank loan, $5,000. Pay cash for advertising, $8,000. Purchase supplies on account, $4,000.
Required: Post transactions to the Cash T-account and calculate the ending balance. The beginning balance in the Cash T-accow1t is $16,000.
The answer to the question is now given as follows:
In the Cash T-account, only transactions involving cash receipts and payments are recorded. While cash receipts are posted on the debit side, cash payments are posted on the credit side of the Cash T-account. The difference between the total of the debit side and the credit side of the Cash T-account gives the ending balance.
Note: See the attached excel file for Preparation of Cash T-Account and Calculation of the ending balance.
In the attached excel file, the ending balance is $22,000.
Note that "Purchase supplies on account, $4,000" is not included in the Cash T-account because it is not a cash transaction.
g Red Sun Rising just paid a dividend of $2.80 per share. The company said that it will increase the dividend by 40% and 10% over the next two years, respectively. After that, the company is expected to increase its annual dividend at 5%. If the required return is 12%, what is the stock price today
Answer:
The stock price today is $58.50
Explanation:
First, we need to determine the dividends for each year
Year _____Working _________ Dividend
0________________________ $2.80 per share
1________$2.80 x ( 1 + 40% )___$3.92 per share
2________$3.92 x ( 1 + 10% )___$4.312 per share
3________$4.312 x ( 1 + 5% )___$4.5276 per share
Now we need to calculate the present value of each years dividend to calculate the value of stock
Year _____Working ___________________ PV of Dividend
1________$3.92/( 1 + 12% )^1_____________ $3.50
2________$4.312/( 1 + 12% )^2____________$3.4375
3________[$4.5276/(12%-5%)]/( 1 + 12% )^2__ $51.5625
Now sum all of the present vlue of dividend to calculate the stock price
Stock Price today = $3.50 + $3.4375 + $51.5625 = $58.50
Some companies do not act responsibly in the marketplace, especially when it comes to fair competition. Fair competition between businesses is necessary for the marketplace to operate effectively. The market economy relies chiefly on market forces to allocate goods, services, and other resources, and to determine prices. some companies they use unethical tactics to eliminate competition.
1.Explain three main unethical practices of businesses that can affect consumers.
2. Highlight the main two Responsibilities towards customers.
Answer:
A market economy is an economic system in which economic decisions and the pricing of goods and services are guided by the interactions of a country's individual citizens and businesses. There may be some government intervention or central planning, but usually this term refers to an economy that is more market oriented in general.
