On August 2, ABC Co. receives a $7,900, 90-day, 10.5% note from its customer who is past due on what he owes. This note is replaces the customer's $7,900 account receivable. Prepare ABC's journal entry assuming the note is honored by the customer on October 31 of that same year. (Do not round intermediate calculations. Round your answers to nearest whole dollar value. Use 360 days a year.)

Answers

Answer 1

Answer:

Oct 31

Dr Cash $8,107

Cr Notes receivable$7,900

Cr Interest revenue $207

Explanation:

Prepare ABC's journal entry assuming the note is honored by the customer on October 31 of that same year

Oct 31

Dr Cash $8,107

[$7,900+($7,900*10.5%*90/360)]

Cr Notes receivable$7,900

Cr Interest revenue $207

($7,900*10.5%*90/360)]


Related Questions

Deindustrialization affects the economic landscape of countries. Describe the change in the dominant economic sector during industrialization and during deindustrialization. Explain ONE spatial change in manufacturing employment patterns as a result of deindustrialization. Explain ONE likely outcome of deindustrialization in a region of manufacturing communities. Comparing the development of steel and the invention of the computer chip, explain how technological development drove economic change in both the Industrial Revolution and the transition to a service-based economy. Describe the significance of a growth pole in an urban or regional economy. Explain how post-Fordist methods of production have transformed operations at individual factories. Explain the degree to which least-cost theory predicts the local site-selection factors for the location of multinational service industry corporate offices.

Answers

Answer:

a. One spatial change in manufacturing employment patterns as a result of deindustrialization is production shift.

b. Companies may move their industrial activities and manufacturing jobs to areas with a lower cost of labor.

c. Some natural places could be deemed unfit for humans.

d. Facilitating the construction of railroads, bridges, tall buildings, larger ships, and other infrastructure, Powering service-sector industries such as information technology, financial services, retail, and education, all of which depend on the processing power and connectivity brought about by the computer chip.

e. A growth pole is significant to an urban economy as it will attract supporting businesses such as retail establishments, restaurants, and other service industries to the city or urban area on a local scale.  

f. Post-fordism methods of production have transformed operation at individual factories by instead of workers working only one task all day and not being able to perform other tasks in the factory the workerscould now work multiple tasks and were not concealed to one specific area of work, this also made the workers more appealing to other factories and made it to where they could work other positions for more money and could not be so easily concealed for one spot.

Explanation:

A+

The aspects of deindustrialization lead to the economic effects that made changes in the dominant economic sectors.

What is de-industrialization ?

The de-industrialization is social and the economic changes that were created due to the removal of the industrial capacity of activity.

The spatial changes in manufacturing employment patterns were a result of the process. The companies may move their industrial activities and manufacturing jobs towards a lower cost of labor. There are some natural places that would be unfit for humans. The construction of the railroads, bridges, the tall buildings, larger ships, etc.,

The growth pole of urban economy as it will attract supporting the businesses such as the retail establishments, restaurants, and other service industries to the city or urban area on a local scale.  The post-Fordism methods gave made changes in the  operation of individual factories.

Find out more information about deindustrialization.

brainly.com/question/22831866.

how can gdp per capita and poverty rates indicate standards of living in each system?​​

Answers

~!+~!+~!+!+~!+~!+~!+~+!+~+!+~+!~+!~+!~+!~+!~+!~+!~+!~+!~+!~+~!+~+!+~+!~+!+~+!~+!~+!~+!~+!~+!~+!~+!~+!~+~!~+!~+!~+!~+!~+!~+!~+!~+!~+!~+!~+!~+!~+!~+!~+!~+!~+!~+!~+!~Hello! If this answer doesn’t fulfill all of your questions, or it doesn’t have the exact information you are looking for, I apologize. But, I will try to help you to my best ability! <3Answer:Gross Domestic Product (GDP) per capita and poverty rates are both measures that can be used to measure standards of living because they are both measures of how much money people have. The two measures can be used to supplement one another. This gives a measure of how much money the average person makes in a year.Again, hope this helps! Good luck! :D~!+~!+~!+!+~!+~!+~!+~+!+~+!+~+!~+!~+!~+!~+!~+!~+!~+!~+!~+!~+~!+~+!+~+!~+!+~+!~+!~+!~+!~+!~+!~+!~+!~+!~+~!~+!~+!~+!~+!~+!~+!~+!~+!~+!~+!~+!~+!~+!~+!~+!~+!~+!~+!~+!~

what does CPI stand for and what is it used to measure?​

Answers

Answer:

please give me brainlist and follow

Explanation:

Consumer Price Index

The Consumer Price Index (CPI) is a measure of the average change overtime in the prices paid by urban consumers for a market basket of consumer goods and services.

On November 15, 2018, X Corp., an accrual basis taxpayer, enters into a contract which will provide the corporation with the use of manufacturing equipment for the 5 year period beginning on December 1, 2018. X Corp. paid $100,000 for the 5-year period on December 1, 2018. How much, if any of the payment can X Corp. deduct in 2018

Answers

Answer: $20000

Explanation:

Since $100,000 is paid for the contract which will provide the use of manufacturing equipment for 5 years, the payment that can be deducted for each of the 5 years will be an equal payment.

Therefore, the payment that X Corp. can deduct in 2018 will be:

= $100,000 / 5

= $20000

Financial information is presented below: Operating expenses $ 45000 Sales returns and allowances 3000 Sales discounts 7000 Sales revenue 160000 Cost of goods sold 96000 Gross Profit would be $64000. $54000. $61000. $67000.

Answers

Explanation:

160,000−3,000−96,000=61000

expenses are not taken into account because their not required to find the gross profit.

Financial information is presented below: Operating expenses $ 45000 Sales returns and allowances 3000 Sales discounts 7000 Sales revenue 160000 Cost of goods sold 96000 Gross Profit would be "$64000". The correct option is A.

To calculate the Gross Profit, we use the formula:

Gross Profit = Sales Revenue - Cost of Goods Sold

Given the financial information,

Sales Revenue = $160,000

Cost of Goods Sold = $96,000

Gross Profit = $160,000 - $96,000

Gross Profit = $64,000

Therefore, the correct option is A that is $64,000.

To know more about Gross Profit here,

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Caldwell Corporation is considering an investment proposal that will require an initial outlay of​ $816,000 and would yield yearly cash inflows of​ $212,000 for nine years. The company uses a discount rate of​ 10%. What is the NPV of the​ investment?
Present value of an ordinary annuity of​ $1:

​8%

​9%

​10%
1

0.926

0.917

0.909
2

1.783

1.759

1.736
3

2.577

2.531

2.487
4

3.312

3.24

3.17
5

3.993

3.89

3.791
6

4.623

4.486

4.355
7

5.206

5.033

4.868
8

5.747

5.535

5.335
9

6.247

5.995

5.759
A.
​$251,667
B.
​$371,000
C.
​$408,000
D.
​$404,908

Answers

Answer:

623

Explanation:

because I guessed and 816,000-212,000= 604,000

Miscellaneous costs associated with the purchase of new equipment? include:
Insurance costs before the equipment is ready for use $3,000
Maintenance costs before the equipment is ready for use 700
Insurance costs after the equipment is placed into service 1,400
Cost of trial run 800
Training costs for employees to learn how to use equipment 400
What is the amount assigned to the new? equipment?
A. $4,200.
B. $4,500.
C. $4,900.
D. $6,300.

Answers

Answer:

C. $4,900.

Explanation:

Determining the amount assigned to the new equipment

Details                                                                                                    Amount

Insurance costs before the equipment is ready for use                     $3,000

Add: Maintenance costs before the equipment is ready for use       $700

Add: Cost of trial run                                                                              $800

Add: Training costs for employees to learn how to use equipment  $400

Total costs assigned to the new equipment                                      $4,900

So, the correct options is option c.

3
Hame and explain
of skills that should be possess by an entrepreneur

Answers

Answer:

1. Curiosity. Great entrepreneurs are tasked with identifying new problems, identifying potential niche opportunities, refactoring their existing business processes, and innovating. This necessitates a passion for various fields of study and business cases that are outside of one's comfort zone.

2. Time management. Prioritization, milestone definition, execution, and iteration are all critical. None of this would be possible without the proper project management and time allocation methodologies in place to complete the work.

3. Strategic thinking. Learning to break down a problem to its simplest components and identify growth opportunities. Inventive problem-solving and spotting the low-hanging fruit. Defining an MVP's scope and testing concepts in a short amount of time and on a tight budget.

Jake Entertainment Corporation has three segments with revenue, operating income, and depreciation and amortization information (in millions) as follows: Segment Revenue Operating Income Depreciation and Amortization Film $5,000 $1,500 $525 Theme Park 1,000 320 112 Video Game 500 175 53 Totals $6,500 $1,995 $690 The EBITDA for the Theme Park segment is

Answers

Answer:

EBITDA = $2,685

Explanation:

EBITDA is the acronym for Earnings before interest taxes depreciation and amortization .

EBITDA is a common financial metric which is used to measure the a company's profitability unlike other profitability it is very useful to gauge how much cashflow a company's has. It is the profit earned by a firm before deducting non-cash items and other obligations. It quantifies how much cash is available to settle interest on debt obligations and taxes.

It is computed ad follows:

EBITDA = operating income + depreciation an amortization

               = $1,995 + $690= $2,685

EBITDA = $2,685

Presented below is information related to Splish Company at December 31, 2020, the end of its first year of operations.
Sales revenue $334,910
Cost of goods sold 149,030
Selling and administrative expenses 54,000
Gain on sale of plant assets 32,710
Unrealized gain on available-for-sale debt investments 9,080
Interest expense 6,360
Loss on discontinued operations 11,260
Dividends declared and paid 4,660
Compute the following:
(a) Income from operations -
(b) Net income -
(c) Comprehensive income
(d) Retained earnings balance at December 31, 2020 -

Answers

Answer:

a. $131,880

b. $167,310

c. $156,050

d. $151,390

Explanation:

(a) Income from operations

Income from Operations is Income resulting from Primary Trading Activities of the Company.

Income from Operations = Gross Profit + Operating Income - Operating Expenses

where,

Gross Profit = Sales - Cost of Goods Sold

                    = $334,910 - $149,030

                    = $185,880

thus,

Income from Operations = $185,880 - $54,000 = $131,880

(b) Net income

Income resulting from Primary and Secondary Trading Activities of the the Company.

Net income = Income from Operations + Non Operating Income - Non Operating Expenses

                   = $131,880 + $32,710 + $9,080 - $6,360

                   = $167,310

(c) Comprehensive income

Income from both Continuing and Non - Continuing Activities.

Comprehensive income = Net income + Non - Continuing Activities

                                         = $167,310 - $11,260

                                         = $156,050

(d) Retained earnings balance at December 31, 2020

The Income remaining after distributions to shareholders have been made.

Retained earnings = Comprehensive income  - Dividends

                               = $156,050 - $4,660

                               = $151,390

A progressive tax is a tax that:

A. Requires you to pay less money in taxes when you have more income.
B. Requires everyone to pay the same tax rate.
c. Only applies to people who make more than $150,000 per year.
D. Requires people who make more money to pay a larger percentage of their income in taxes.

Answers

Answer:

I’m pretty sure it’s B.

Explanation:

^ I said pretty sure

Help! I dont have much lime left ;-;

Answers

Answer:

Anthropologist - researches and analyzes historical human characteristics

Agricultural Technician - gathers and test materials from plants and animals

Archivist - organizes, maintains and protects documents and records

Statistician - analyzes and explains numerical information

Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics.
Microeconomics Macroeconomics
The effect of federal government spending on
the national unemployment rate.
The effect of government regulation on a
monopolist's production decisions.
The optimal interest rate for the Federal
Reserve to target.

Answers

Answer:

The effect of federal government spending on

the national unemployment rate. macro

The effect of government regulation on a

monopolist's production decisions. micro

The optimal interest rate for the Federal

Reserve to targets -microeconomics

Why is it a good idea to turn off Wi-Fi while using a mobile banking app?​

Answers

Answer:

The fact that Wi-Fi broadcasts data to anybody in range means that your information could be at risk.

Explanation: 1  That's especially risky if you use Wi-Fi for online banking. Avoiding Wi-Fi altogether is not realistic. It's probably not even practical to save banking sessions for when you're at home or on a wired connection.

Crypton Electronics has a capital structure consisting of percent common stock and percent debt. A debt issue of ​$ par​ value, percent bonds that mature in years and pay annual interest will sell for ​$. Common stock of the firm is currently selling for ​$ per share and the firm expects to pay a ​$ dividend next year. Dividends have grown at the rate of percent per year and are expected to continue to do so for the foreseeable future. What is​ Crypton's cost of capital where the​ firm's tax rate is ​percent?

Answers

Answer:

A. After-cost of debt 4.20%

B. Cost of common equity 12.15%

C. Cost of capital 7.02%

Explanation:.

A. Calculation to determine the After-cost of debt

After-cost of debt =RATE(15,5.8%*1000,-980,1000)*(1-30%)

After-cost of debt =4.20%

Therefore After-cost of debt is 4.20%

b) Calculation to determine cost of common equity

Cost of common equity=2.17/29.12+4.7%

Cost of common equity=12.15%

Therefore Cost of common equity is 12.15%

c) Calculation to determine cost of capital

Cost of capital=(4.20%*63%)+(12.15%*36%)

Cost of capital=7.02%

Therefore Cost of capital is 7.02%

Mann Co. is preparing an Excel spreadsheet for its 5-year, 6%, $400,000 installment notes. The notes were issued on January 1 for $421,236. Installment payments are payable each December 31. A portion of the spreadsheet appears as follows: A B C D E 1 Effective rate: 0.06 2 Cash payments: 100,000 3 Term to maturity in years: 5 4 5 Period Cash Payment Interest Expense Change in Balance Outstanding Balance 6 0 7 1 8 2 What formula should Mann use in cell E8 to calculate the outstanding balance (book value) of the notes after the second interest

Answers

Answer:

The correct formula that Mann should use in cell E8 is =E7-D8.

Explanation:

Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached excel file for the complete question with the sorted data.

The explanation of the answer is now given as follows:

The correct formula that Mann should use in cell E8 is =E7-D8. If this formula is used, it will calculate the outstanding balance (book value) of the notes after the second interest for period 2.

Additional Note:

Although this is not part of the requirement of the question, but it is provided for you to assist your further in your learning.

Note: See the below the attached excel file for the full answer and calculations of all the cells required for the amortization schedule.

For example, using the correct formula  =E7-D8 in cell E8 gives $267,301 (in red color).

All of the following are examples of current account transactions EXCEPT: Elimination Tool Select one answer A The United States purchases 200 tons of Canadian bacon. B Argentina purchases 10,000 French berets. C Mexico purchases 500 Spanish matador outfits. D Germany pays 1 million euro for the services of Swiss accountants. E China purchases $10 billion of United States government securities.

Answers

Answer:

E

Explanation:

the current account of a country measures the value of the trade balance, transfers and the net income

the component of the current account includes

trade balance - it measures the value of the  import and export of goods and services of a country.

net income - measures the value of the income received by a country's residents less the income paid to foreigners

transfers - it includes income sent home by a country's citizens working outside the country

Asset income - measures changes in the asset income

this transaction - China purchases $10 billion of United States government securities - would be included in the capital account

Presented below are partial October, November, and December cash budgets for Holidays Events. Loans are obtained in increments of $1,000 at the start of each month to maintain a minimum end-of-month balance of $12,000. Interest is one percent simple interest (no compounding) per month, payable when the loan is repaid. Repayments are made as soon as possible, subject to the minimum end-of-month balance.

Required:
Complete the short-term financing section of the cash budget and all missing figures

October November December Total
Cash balance, beginning $24,0005
Collection on sales 36,000 41,000 81,000
Cash available for operations
Disbursements for operations (51,000) (61,000) (40,000)
Ending cash before borrowings or replacements
Short-term finance:
New loans
Repayments
Interest
Cash balance, ending

Answers

Answer:

Holidays Events

Cash Budget

                                                     October  November  December  Total

Cash balance, beginning            $24,000   $12,000     $12,000   $24,000

Collection on sales                        36,000     41,000        81,000    158,000

Cash available for operations    $60,000  $53,000    $93,000  $182,000

Disbursements for operations     (51,000)   (61,000)    (40,000)  (152,000)

Ending cash before borrowings

or repayments                             $9,000   ($8,000)   $53,000   $30,000

Short-term finance:

New loans                                      3,000     20,000                        23,000

Repayments                                                                   (23,260)   (23,260)

Interest                                               30           230           0            

Cash balance, ending              $12,000    $12,000    $29,740   $29,740

Explanation:

a) Data and Calculations;

Loans obtained in increments of $1,000

Minimum end-of-month balance = $12,000

Simple Interest rate = 1% per month

Cash Budget

                                                     October  November  December  Total

Cash balance, beginning            $24,000   $12,000     $12,000   $24,000

Collection on sales                        36,000     41,000        81,000    158,000

Cash available for operations    $60,000  $53,000    $93,000  $182,000

Disbursements for operations     (51,000)   (61,000)    (40,000)  (152,000)

Ending cash before borrowings

or repayments                              

Short-term finance:

New loans                                      

Repayments                                    

Interest                                                    

Cash balance, ending  

b) Holidays' Cash Budget is a Schedule that estimates the cash inflows and outflows  during a period of its financial cycle.  The purpose of preparing one is to determine availability of cash for continuing operational activities.  In addition, the Cash Budget shows when Holidays needs to borrow cash to continue operations.  Excess cash is also determined from the Cash Budget for investment purposes.          

Select the examples that best demonstrate likely tasks for Transportation Systems/Infrastructure Planning, Management, and Regulation workers. Check all that apply.

Tanya sells airplane tickets to customers.
Stefan repairs bus engines that aren’t working properly.
Fletcher gathers and analyzes information about traffic accidents at an intersection.
Heidi sells vehicle parts to repair shops.
Jay inspects the cargo being loaded onto a ship.
Edie explains the goals of a transportation project to members of the community.

Answers

Answer:

C,E,F

Explanation:

Edge 2021

Answer:

C, E, F

Explanation:

Its correct i did it

Bald Industries disclosed the following minimum rental commitments under non-cancelable operating leases in its 2017 annual report: Minimum operating Amount lease payments (in millions) 2018 $71 2019 46 2020 34 2021 26 2022 20 Total $197 What is the present value of these operating lease payments, assuming a 6% discount rate

Answers

Answer:

The present value of these operating lease payments is $172.01 million.

Explanation:

Note: See the attached excel file for the calculation of the net present value (NPV) (in bold red color) of these operating lease payments.

In the attached excel file, the discounting factor for each year is calculated as follows:

Discounting factor = 1 / (100% + Discount rate)^Number of the year

From the attached excel file, we have:

NPV = Net present value = $172.01 million.

Cordner Corporation has two production departments, P1 and P2, and two service departments, S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used by: DepartmentDirect costsS1 S2 P1 P2 S1$66,000 0.70 0.10 0.20 S2$161,000 0.20 0.30 0.50 P1$166,000 P2$233,000 Under the step method of cost allocation, the amount of S2 costs allocated to S1 would be:

Answers

Answer:

$46,200

Explanation:

Calculation to determine the amount of S2 costs allocated to S1

S2 costs allocated to S1 =$66,000*0.70/(0.70 +0.10+ 0.20)

S2 costs allocated to S1 =$46,200/1.00

S2 costs allocated to S1 =$46,200

Therefore Under the step method of cost allocation, the amount of S2 costs allocated to S1 would be:$45,200

Renaissance Creations restores antique stained glass windows. All jobs generate some breakage or improper cuts. This scrap can be sold to stained glass hobbyists. Renaissance Creations expects to incur approximately 45,000 direct labor hours during 2013. The following estimates are made in setting the predetermined overhead rate for 2013:
One job that Renaissance Creations completed during 2013 was a stained glass window of the Pierce family crest that took 125 hours, and direct labor is invoiced at $20 per hour. Total direct material cost for the job was $890. Scrap that was generated from this job was sold for $93.
a. What was the predetermined overhead rate (set on the basis of direct labor hours) for 2013?
b. What was the cost of the Pierce stained glass window?
c. Prepare the journal entry to record the sales value of the scrap from the Pierce stained glass window.
d. Assume instead that only certain jobs generate scrap. What was the cost of the Pierce stained glass window?

Answers

Answer:

hello your question has some missing information attached below is the missing information

answer :

a)  $7

b)  $4265

c) attached below

d) $4192

Explanation:

a) determine the predetermined overhead rate

= Total estimated overhead / estimated direct labor hour

Total estimated overhead = $315,000

estimated direct labor hour = 45,000

hence predetermined overhead rate = 315,000 / 45,000 = $7

b) calculate the cost of the Pierce stained glass window

Direct material cost = $890

number of labor hours = 125

direct labor cost = $20 per hour

predetermined overhead rate = $7

∴cost of glass window = [ ( 890 + ( 125 * 20 ) + ( 125 * 7 ) ] = $4265

c) Journal entry used to record sell of scrap

Account name                        

cash                                    $93

manufacture overhead                     $93

d) assuming only some jobs generate scrap

first we will calculate the overhead rate per hour

= ( $297000 + $25200) / 45,000 = $7.16

∴ Total cost of pierce stained glass window

= [ (direct material cost + number of labor hours ) + number of labor hours ( predetermined overhead rate ) ] - $93

= $4285 - $93  = $4192

Gilberto Company currently manufactures 75,000 units per year of one of its crucial parts. Variable costs are $2.45 per unit, fixed costs related to making this part are $85,000 per year, and allocated fixed costs are $72,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $3.65 per unit guaranteed for a three-year period.

Required:
Calculate the total incremental cost of making 75,000 and buying 75,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier?

Answers

Answer:

$2,000

Explanation:

The total incremental cost of making 75,000 and buying 75,000 units.

You own shares of Somner​ Resources' preferred​ stock, which currently sells for per share and pays annual dividends of ​$ per share. If the​ market's required yield on similar shares is ​percent, should you sell your shares or buy​ more?

Answers

Answer:

You should buy more shares

Explanation:

The above-mentioned question is missing few components. I have added them to explain on how the question would be solved if all the variables were provided. Please note the additions in bold text below. The answer of which is given afterwards.

You own 300 shares of Somner​ Resources' preferred​ stock, which currently sells for $39 per share and pays annual dividends of ​$5.50 per share. If the​ market's required yield on similar shares 12% is ​percent, should you sell your shares or buy​ more?

Solution as mentioned below:

First of all we need to calculate value of the preferred stock by dividing the annual dividend per share from the market required rate.

Value of preferred stock = 5.50 / 12%

Value of preferred stock = $45.83

Now given the fact that the current price at which the stocks are sold is $39 which is less than the price at which they are actually valued which is $45.83. You should buy more of the shares as they are currently undervalued.

During the month of March, Munster Company's employees earned wages of $64,000. Withholdings related to these wages were $4,896 for FICA, $7,500 for federal income tax, $3,100 for state income tax, and $400 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $700 for state unemployment tax. Journalize payroll entries.

Answers

Answer:

A. Dr salaries and wages expense for 64,000

Cr to FICA taxes payable for 4,896

Cr Federal Income Tax Payable for 7,500

Cr State Income Tax Payable for 3,100

Cr Union Dues Payable for 400

Cr Salaries and Wages Payable for 48,104

B. Dr payroll tax expense for 5,596

Cr FICA tax payable for 4,896

Cr State Unemployment for 700

Explanation:

Preparation to Journalize the payroll entries

A. Dr salaries and wages expense for 64,000

Cr to FICA taxes payable for 4,896

Cr Federal Income Tax Payable for 7,500

Cr State Income Tax Payable for 3,100

Cr Union Dues Payable for 400

Cr Salaries and Wages Payable for 48,104

(64,000-4,896-7,500-3,100-400)

B. Dr payroll tax expense for 5,596

(4,896+700)

Cr FICA tax payable for 4,896

Cr State Unemployment for 700

Which of the following is not true concerning account titles:multiple choiceThere is a wide range of account titles among different types of companies.All companies use exactly the same account titles.There is a small range in account titles regardless of type of company.All companies use different account titles.

Answers

Answer:

There is a wide range of account titles among different types of companies

Explanation:

An account title can be regarded as a

unique name that is been assigned or associated to particular account in an accounting system. It is very crucial to use An account title when there is a need for identification of accounts by

accounting staff , this is because the title usually conveys the purpose of that particular account. Some of the account titles that can be used are;

Cash on Hand, Petty Cash Fund, and

Cash in Bank,. In account titles;

✓All companies use exactly the same account titles.

✓There is a small range in account titles regardless of type of company.

✓All companies use different account titles.

Pension funds pay lifetime annuities to recipients. If a firm will remain in business indefinitely, the pension obligation will resemble a perpetuity. Suppose, therefore, that you are managing a pension fund with obligations to make perpetual payments of $2 million per year to beneficiaries. The yield to maturity on all bonds is 16%. a. If the duration of 5-year maturity bonds with coupon rates of 12% (paid annually) is four years and the duration of 20-year maturity bonds with coupon rates of 6% (paid annually) is 11 years, how much of each of these coupon bonds (in market value) will you want to hold to both fully fund and immunize your obligation

Answers

Solution :

The PV  "perpetual" obligation of the firm  = [tex]$\frac{\$ 2 \text{ million}}{0.16}$[/tex]

                                                                     = $ 12.5 million

Also based on duration of the perpetuity, duration of this obligation = [tex]$\frac{1.16}{0.16}$[/tex]

                                                                                                                  = 7.25 years

Let [tex]$w$[/tex] be the [tex]$\text{weight}$[/tex] on the [tex]$5$[/tex] year maturity bond, which has a duration of [tex]$4$[/tex]years. Then :

[tex]$w \times 4 +(1-w) \times 11 = 7.25$[/tex]

[tex]$w=0.5357$[/tex]

Therefore,

[tex]$0.5357 \times \$ 12.5 = \$ 6.7$[/tex] million in the [tex]$5$[/tex] year bond

[tex]$0.4643 \times \$12.5=\$5.8$[/tex] million in the [tex]$2$[/tex] year bond.

Therefore, the total invested amounts to $ [tex]$(6.7+5.8)$[/tex] million = [tex]$\$12.5$[/tex] million, which fully matches the funding needs.

James, Inc., has purchased a brand new machine to produce its High Flight line of shoes. The machine has an economic life of 6 years. The depreciation schedule for the machine is straight-line with no salvage value. The machine costs $594,000. The sales price per pair of shoes is $87, while the variable cost is $37. Fixed costs of $295,000 per year are attributed to the machine. The corporate tax rate is 22 percent and the appropriate discount rate is 10 percent.
What is the financial break-even point?

Answers

Answer:

James, Inc.

The financial break-even point in:

Sales unit = 8,322

Sales dollars = $724,014

Explanation:

a) Data and Calculations:

Cost of machine purchased = $594,000

Estimated economic life = 6 years

Salvage value = $0

Sales price per pair of shoes =   $87

Variable cost per pair of shoes = 37

Contribution margin per pair =  $50

Discounted contribution = $50 * 0.909 = $45.45

After-tax contribution = $35.45 ($45.45 * 0.78)

After-tax contribution margin ratio = $35.45/$87 * 100 = 41%

Fixed cost per year = $295,000

Corporate tax rate = 22%

Discount rate = 10%

Break-even point = Fixed cost/After-tax contribution

= $295,000/$35.45

= 8,322 units

= $724,014 ($87 * 8,322)

Comparative advantage in production is achieved by: Group of answer choices Subsidizing, specializing, and lowering the price of an exported good. Being able to produce a good with fewer inputs than in other countries. Having terms of trade that are better than the terms of trade faced in other countries. Having a lower opportunity cost of producing a good relative to that of other countries.

Answers

Answer:

Having a lower opportunity cost of producing a good relative to that of other countries.

Explanation:

Comparative advantage in economics is the ability of an individual or country to produce a specific good or service at a lower opportunity cost better than another individual or country.

The comparative advantage gives a country a stronger sales margin than their competitors as they are able to sell their specific products or render their peculiar services at a lower opportunity cost.

Also, the principle of comparative advantage asserts that countries can become better off by specializing in what they do best.

This simply means that, any country applying the principle of comparative advantage, would enjoy an increase in output and consequently, a boost in their Gross Domestic Products (GDP).

Hence, comparative advantage in production is achieved by having a lower opportunity cost of producing a good relative to that of other countries.

In determining Blue Corporation's current earnings and profits (E & P) for 2019, how should taxable income be adjusted as a result of the following transactions?
Select either "Increase", "Decrease" or "Not be affected", whichever is applicable.
a. A capital loss carryover from 2018, fully used in 2019.
b. Nondeductible meal expenses in 2019.
c. Interest on municipal bonds received in 2019.
d. Nondeductible lobbying expenses in 2019.
e. Loss on a sale between related parties in 2019.
f. Federal income tax refund received in 2019.

Answers

Answer: See explanation

Explanation:

Taxable income simply refers to the income that the government imposes a tax on. Taxable income should be adjusted on the following transactions as follows:

a. A capital loss carryover from 2018, fully used in 2019.

Based on the above transaction, taxable income should be increased.

b. Nondeductible meal expenses in 2019.

Based on the above transaction, taxable income should be decreased.

c. Interest on municipal bonds received in 2019.

Based on the above transaction, taxable income should be increased.

d. Nondeductible lobbying expenses in 2019.

Based on the above transaction, taxable income should be decreased.

e. Loss on a sale between related parties in 2019.

Based on the above transaction, taxable income should be decreased.

f. Federal income tax refund received in 2019.

Based on the above transaction, taxable income should be increased.

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