Answer: c. selling bonds. This selling would reduce reserves.
Explanation:
If the Fed sold bonds, they would be taking money out of the system as people would buy the bonds and pay the Fed. When this happens, the reserves of money in banks reduces.
This leads to a situation where there will be less cash to loan out. This reduction in the supply of loanable funds will result in interest rates rising to reflect that loanable funds are now more scarce thereby pushing the federal funds rate back up to the level targeted.
The 2019 Form 10-K of Oracle Corporation, for the May 31, 2019 year-end, included the following information relating to their allowance for doubtful accounts: Balance in allowance at the beginning of the year $370 million, accounts written off during the year of $188 million, balance in allowance at the end of the year $371 million. What did Oracle Corporation report as bad debt expense for the year
Answer: $189
Explanation:
The amount that Oracle Corporation report as bad debt expense for the year will be calculated as:
Balance in allowance at the end of the year = $371
Add: Accounts written off during the year = $188
Less: Balance in allowance at the beginning of the year = ($370)
Bad debt = $189
Consider a city of 200 people (100 rich and 100 poor) and two neighborhoods (100 people in each). Both groups generally prefer to live with rich people and are willing to pay a premium for living with a fraction of rich people that is larger than 50%. Poor people’s premium curve is given as �!""# = 2�$, where x is the percentage of rich above 50% (e.g., if there are 52% rich, x will be 2). Rich people’s premium curve is given by �%&'( = 60� − 0.4�$. a) What is the equilibrium outcome (i.e., what is the share of rich and poor people, respectively). Explain.
Answer:give me Brainliest
Explanation:
is global economic resistance good or bad? why?
Answer:
The global economy can be a little frustrating because globalization and the global economy are terms that mean different things to different people. I have found that some people talk about the global economy and what they mean is the opening of markets and trade among nations—so that today you can buy products in a store that have been made everywhere around the world, and people everywhere around the world are buying products that we make.
That didn’t used to be the case, partly because transportation and communication technologies were inadequate and partly because there were a lot more political barriers and even wars going on that prevented people from trading with each other. But in the twentieth century—especially in the late twentieth century—there’s been a large-scale dismantling of political barriers to trade combined with a dramatic increase in communication and transportation technology that has opened up a new global market.
GSX stock is selling for $32.40 a share. A 4-month call on GSX stock with a strike price of $35 is priced at $.55. Risk-free assets are currently returning .3 percent per month. What is the price of a 4-month put on GSX stock with a strike price of $35
Answer:
$3.03
Explanation:
Calculation for What is the price of a 4-month put on GSX stock with a strike price of $35
Based on the information given we would be using put-call parity formula
S + P = C + PV(E) P
Let plug in the formula
Price=$0.55 + ($35 / 1.0034) - $32.40
Price=$0.55 + $34.88 - $32.40
Price = $3.03
Therefore the price of a 4-month put on GSX stock with a strike price of $35 will be $3.03
Bob is angry at his company XYZ Corp. since his annual bonus was too small. Bob who has authority to sign checks on behalf of XYZ decides to get even by creating an employee, Steven Even. Bob writes a check to Steven on XYZ's checking account, signs it and then he indorses it with Steven's name and deposits it an account he has opened in Steven Even's name and the check clears. XYZ finds out and wants to hold the bank liable for paying the check since there was a forged indorsement. Which of the following is true? a) The bank needs to pay because when there is a forged indorsement, the first person to take the instrument with the forged indorsement is liable. b) The bank needs to pay because of the imposter rule. c) The bank only needs to pay if the check was for more than $500. d) The bank does not need to pay because of the fictitious payee rule.
Answer:
d) The bank does not need to pay because of the fictitious payee rule.
Explanation:
Here, the instrument is issued to a payee who has no interest in instrument and thus it is referred as fictitious payee. According to UCC's fictitious payee rule, the indorsement to fictitious payee is not considered forgery. In this case, the maker or drawer of instrument is liable for it. The drawer bank and collecting bank both are not liable for it.
The cost slope of an activity $ 250/day. The normal duration of this activity is 15 days, the crash cost is $1,500 and the maximum crashing possible for the activity is 10 days beyond the normal duration. What is the normal cost of this activity
Answer: $1000
Explanation:
To calculate the normal cost of this activity, we will use the formula:
Cash slope = (Crash cost - Normal cost) / (Normal duration - Crash duration)
250 = (1500 - Normal cost) / (15 - 5)
250 = (1500 - Normal cost) / 10
Cross multiply
(250 × 10) = 1500 - Normal cost
2500 = 1500 - Normal cost
Normal cost = 2500 - 1500
Normal cost = $1000
The date on which a cash dividend becomes a binding legal obligation is on the declaration date. last day of the fiscal year-end. date of record. payment date.
Answer:
A. the declaration date.
Explanation:
The date on which a cash dividend becomes a binding legal obligation is on the declaration date.
assume the following the standard price per pound is 2.00 the standard quantity of pounds allowed per unit of finished goods is 4 pounds the actual quantity of materials purchased and used in production is 50000 pounds the company produced 13000 units of finished goods during the period the actual price per pound of direct materials is closest to
Answer: $2.28
Explanation:
Based on the information given, the actual price per pound of direct materials will be calculated as:
Material Price Variance = (14000)
Since material price valriance is the actual price deducted from the standard price for actual quantity that was used during production process. This will be:
(14000) = [(2 × 50000)] - [Actual Price × 50000]
(14000) = (100000) - (actual price × 50000)
(Actual Price × 50000) = 100000 + 14000
Actual Price × 50000) = 114000
Actual Price = 114000 / 50000
Actual price = 2.28
On January 1, a company issues bonds dated January 1 with a par value of $200,000. The bonds mature in 3 years. The contract rate is 4%, and interest is paid semiannually on June 30 and December 31. The market rate is 5%. Using the present value factors below, the issue (selling) price of the bonds is:
Answer:
b. $194,492
Explanation:
Note: The present value factors is attached as picture below
Multiple Choice $205,607. $194,492. $200,000. $22,032. $172,460.
00,000
Calculation of Bond issue price
PV factor at 2.50%
Pv value of bond 200,000 0.8623 172,460
Pv of interest at 2%, 6 4,000 5.5081 22,032
semi annual installment
Present value of the Bond $194,492
Lucy's Music Emporium opened its doors on January 1, 2015, and it was granted permission to use the same depreciation calculations for shareholder reporting and income tax purposes. The company planned to depreciate its fixed assets over 20 years, but in December 2015 management realized that the assets would last for only 15 years. The firm's accountants plan to report the 2015 financial statements based on this new information. How would the new depreciation assumption affect the company's financial statements? a. The firm's reported 2015 earnings per share would increase. b. The firm's EBIT would increase. c. The firm's net liabilities would increase. d. The firm's reported net fixed assets would increase.
Answer:
The firm's cash position in 2015 and 2016 would increase.
Explanation:
In the case when the life of an asset would decrease that represents the depreciation would rise and if the depreciation rise so the EBIT and EPS would reduced and in the case when the EBIT reduced, so automatically the tax expense is also reduce
So, the cash position of the firm woud increase
Hence, the above represents the answer
The financial records for the Harrison Manufacturing Company have been destroyed in a fire. The following information has been obtained from a separate set of books maintained by the cost accountant. The cost accountant now asks for your assistance in computing the missing amounts. Direct Materials Inventory Beg. Bal. 8,000 ? Transferred Out Purchases ? End. Bal. 6,400 Cost of Goods Sold 57,000 Work-in-Process Inventory Beg. Bal. 7,500 ? Transferred Out Materials 18,000 Labor 13,500 Overhead 8,000 End. Bal. ? Finished Goods Inventory Beg. Bal. ? ? Transferred Out Transferred in 39,500 End. Bal. 4,200 What is the amount of the materials purchased?
Answer:
$16,400
Explanation:
Calculation for What is the amount of the materials purchased
Materials purchased=(Direct Materials Inventory Beg. Bal. 8,000 + purchases – $18,000) -End. Bal. 6,400
Materials purchased=-10,000-6,400
Materials purchased = $16,400
Therefore the amount of the materials purchased will be $16,400
The stock price of Bravo Corp. is currently $100. The stock price a year from now will be either $160 or $60 with equal probabilities. The interest rate at which investors invest in riskless assets is 6%. Using the binomial OPM, the value of a put option with an exercise price of $135 and an expiration date 1 year from now should be worth __________ today.
Answer:
$38.21
Explanation:
The computation of the value of put option is shown below;
Hedge ratio is
= (Pay off in case price appreciates - Pay off in case of price depreciates) ÷ (Appreciated price - Depreciated price)
= (Max[$135 - $160, $0] - Max[$135 - $60, $0]) ÷ ($160 - $60)
= ($0 - $75) / $100
= -0.75
Now, Price of Put option is
= -Hedge ratio × {Appreciated price ÷ (1 + risk free rate) - Present stock price}
= -(-0.75) × {$160 ÷ (1 + 6%) - $100}
= $38.21
**ECONOMICS**A high level of productivity means that a worker:
A. creates a lot of something quickly.
B. has skills that are worth a lot of money.
C. is a member of a worker organization.
D. works in a career with a lot of competition.
Answer:A
Explanation:creates a lot of something quickly/just took the test
Answer: A. Creates a lot of something quickly
Explanation: I just took the test on Ap ex
meaning of hazard in risk management and examples
Answer: Identifying Hazards Means Identifying Sources of Risks
Explanation:
A hazard is basiclly something that could harm something else or someone.
So it’s basically now adverse affect
example; to people as health effects, to organizations as property or equipment losses, or to the environment).
I really hope this will help I’m sorry if I didn’t say what you wanted but there you go. (:
Cooper Construction Company had a contract starting April 2015, to construct a $18,000,000 building that is expected to be completed in September 2017, at a total estimated cost of $16,500,000. At the end of 2015, the costs to date were $7,590,000 and the estimated total costs to complete had not changed. The progress billings during 2015 were $3,600,000 and the cash collected during 2015 was 2,400,000. For the year ended December 31, 2015, Cooper would recognize gross profit on the building of:_____________
Answer:
$690,000
Explanation:
Total gross profit on the contract = Total contract value - Total estimated cost = 18,000,000 -16,500,000 = $1,500,000
Total cost in 2015 = 7,590,000
Total % of completion in 2015 = Total cost in 2015 / Total cost of contract
Total % of completion in 2015 = 7,590,000/16,500,000
Total % of completion in 2015 = 0.46
Total % of completion in 2015 = 46%
Gross profit in 2015 = Total gross profit on contract * Total % of completion in 2015
Gross profit in 2015 = 1,500,000 * 46%
Gross profit in 2015 = $690,000
A company issues $50,000 of 4% bonds, due in 5 years, with interest payable semiannually. Assuming a market rate of 3%, the bonds issue for $52,306. Calculate interest expense as of the first semiannual interest payment.
Answer:
interest payment would be $1,046.12
Explanation:
We calculate the Interest expense for the first semiannual interest payment by constructing the Bond amortization schedule.
To construct this amortization schedule we will collect the data as follows :
PV = - $52,306
PMT = ($52,306 × 4%) ÷ 2 = $1,046.12
P/yr = 2
N = 5 × 2 = 10
YTM = 3%
FV = $52,306
Using a Financial Calculator to input the values as above, the schedule can be constructed as
BOND AMORTIZATION SCHEDULE
Period Principle Interest Payment Balance
Start $52,306
1st $261.53 $784.59 $1,046.12 $52,044
Conclusion
Thus, interest payment would be $1,046.12
When preparing the bank reconciliation for Mac's
Flower Shoppe, the following items were noted by
the accountant on the bank statement for June:
Deposits in transit $1,430; Outstanding checks $580;
Bank service charges $76; and a NSF check returned
by the bank $200. What is the adjusted cash balance
per the books if the accounting records initially
showed a balance of $2,100 on June 30?
Answer:
$1,824
Explanation:
Adjusted cash balance per the books
Previous balance $2,100
Less: Bank charges $76
Cancelled NF Check $200
Adjusted cash balance $1,824
Thus, the adjusted cash balance per the books if the accounting records initially showed a balance of $2,100 on June 30 is $1,824
A client has created a budget based on their customer, Lou's Luggage. They want a report that shows actuals versus budget for this customer by quarter for the whole year.
Answer:
2. Select Lou's Luggage budget
3. Show grid Accounts vs. Quarters
4. Filter for Lou's Luggage customer
From online research, the question and multiple choices
Which 3 customization are necessary?(Select all that apply)
1. Filter by Paid status
2. Select Lou's Luggage budget
3. Show grid Accounts vs. Quarters
4. Filter for Lou's Luggage customer
5. Filter by Product/Service = Specified
Explanation:
Getting to Lou's luggage customer reports requires drilling down to the specifics. the system will give the reports by following the steps below.
2. Select Lou's Luggage budget
3. Show grid Accounts vs. Quarters
4. Filter for Lou's Luggage customer
Both friends agree that the demand and supply for hybrid cars will increase. For each of the following situations, determine whether the demand curve or the supply curve increases by dragging the item to the appropriate category.
Answer:
see below
From online search the situations as a below:
a. The government gives consumers a subsidy to buy hybrid cars.
b. More automobile producers start producing hybrids.
c. The price of non-hybrid cars falls.
d. The price of batteries for hybrid cars rises.
e. Gasoline prices rise.
Explanation:
A) A subsidy would result in consumers paying less than they would ordinarily pay. A government subsidy is equivalent to a reduction in price for consumers. A decline in prices increases demand. The demand curve increase.
b). should more producers start manufacturing hybrid vehicles, it will increase the number of vehicles available for customers to buy. More producers result in more output, which is an increase in supply. The supply curve increases.
c). Non-hybrid cars are substitutes goods for hybrid vehicles. If the price of non-hybrid cars falls, their demand will increases. Consequently, the demand for hybrid cars reduces. Both The demand curve and supply curve will not increase.
d). An increase in battery price will increase the overall cost of producing hybrid cars. An increase in production cost results in a price rise. Consequently, it reduces the demand for hybrid cars.
Both the demand and curve curves will not increase.
e). Hybrid cars consume less gasoline compared to non-hybrid cars. An increase in gasoline price will make non-hybrid cars less desirable but will increase the demand for hybrid cars. The demand curve for hybrid cars increases.
A hypothetical futures contract on a nondividend-paying stock with a current spot price of $60 has a maturity of 1 year. If the T-bill rate is 5%, what should the futures price be
Answer:
$63
Explanation:
Calculation for what should the futures price be
Using this formula
Future price=Current spot price (1 + r)
Let plug in the formula
Future price= $60*(1+0.05)
Future price= $60* (1.05)
Future price= $63
Therefore what should the futures price be is $63
An asset used in a three-year project falls in the three-year MACRS class for tax purposes. The MACRS percentage rates starting with Year 1 are: 33.33, 44.45, 14.81, and 7.41.The asset has an acquisition cost of $2.6 million and will be sold for $1.1 million at the end of the project. If the tax rate is 34 percent, what is the aftertax salvage value of the asset
Answer:
$791,504.40
Explanation:.
Calculation for the after tax salvage value of the asset
Asset Aftertax salvage value = $1,100,000- [$1,100,000-($2,600,000 x .0741)] x .34
Asset Aftertax salvage value = $1,100,000- [$1,100,000-$1,926,600] x .34
Asset Aftertax salvage value = $791,504.40
Therefore the after tax salvage value of the asset will be $791,504.40
On December 30, 2018, Varsity Corporation sold available for sale marketable securities costing $800,000 for $860,000 cash. The securities were purchased on January 2, 2016 and the market value of the securities on December 31, 2016 and December 31, 2017 was $820,000 and $780,000, respectively. How much gain or loss will Varsity report in its income statement for the year ending December 31, 2018
Answer:
The gain reported is $60,000
Explanation:
The computation of the gain or loss reported is as follows;
Book value as on December 31 2017 $780,000
Add: balance of unrealized loss ($40,000 loss - $20,000 gain) $20,000
Total $800,000
Gain (sale value - total) ($860,000 - $800,000) $60,000
hence, the gain reported is $60,000
Prepare the December 31 entry for Riverbed Corporation to record amortization of intangibles. The trademark has an estimated useful life of 4 years with a residual value of $3,320.
Answer:
Debit : Amortization expense
Credit : Accumulated Amortization
Explanation:
Hi the Cost of the trademark is missing on this question. However below i explain in steps how to solve this question.
Step 1
Amortization happens on a straight line basis as :
Amortization Expense = Cost - Residual Value ÷ Number of years of useful life
Step 2
Record the expense with a debit in amortization and a credit in accumulated amortization as :
Debit : Amortization expense
Credit : Accumulated Amortization
Coronado Inc. has completed the purchase of new Dell computers. The fair value of the equipment is $708,769. The purchase agreement specifies an immediate down payment of $172,000 and semiannual payments of $66,179 beginning at the end of 6 months for 5 years. What is the interest rate, to the nearest percent, used in discounting this purchase transaction
Answer: 8%
Explanation:
Fair value = $708,769
Down payment will be made so only the amount net of the down payment will be paid periodically.
= 708,769 - 172,000
= $536,769
Present value of Annuity interest factor for payment = 536,769/66,179
= 8.11087
No. of periods = 2 * 5years = 10 semi annums
Look at the Present value of interest factor of Annuity (PVIFA) table and find the interest rate that corresponds to 10 periods and gives an interest factor of 8.11087.
That interest rate is ⇒ 4%
As this is a semi-annual rate, the annual rate is;
= 4% * 2
= 8%
With its current levels of input use, a firm's MRTS is 3 (when capital is on the vertical axis and labor is on the horizontal axis). This implies: Group of answer choices if it used one more unit of both capital and labor, the firm could produce 3 more units of output. the firm could produce 3 more units of output if it increased its use of labor by one unit (holding capital constant). if the firm reduced its capital stock by one unit, it would have to hire 3 more workers to maintain its current level of output. the firm could produce 3 more units of output if it increased its use of capital by one unit (holding labor constant). the marginal product of labor is 3 times the marginal product of capital.
Answer:
if the firm reduced its capital stock by one unit, it would have to hire 3 more workers to maintain its current level of output
Explanation:
In the case when the MRTS is 3 so this implies that the value mentioned is one by 3 so this represents the capital amount that are required to subsitute for one unit of labor to remian on the similar isoquant
Therefore as per the given situation, the above represent the answer
Hence, the same is to be considered
Lily Products Company is considering an investment in one of two new product lines. The investment required for either product line is $540,000. The net cash flows associated with each product are as follows: Year Liquid Soap Body Lotion 1 $170,000 $ 90,000 2 150,000 90,000 3 120,000 90,000 4 100,000 90,000 5 70,000 90,000 6 40,000 90,000 7 40,000 90,000 8 30,000 90,000 Total $720,000 $720,000 a. Recommend a product offering to Lily Products Company, based on the cash payback period for each product line.
Answer and Explanation:
The computation of the payback period for each product line is as follows
(in dollars)
Year Liquid Soap Cumulative Body lotion Cumulative
1 170,000 170,000 90,000 90,000
2 150,000 320,000 90,000 180,000
3 120,000 440,000 90,000 270,000
4 100,000 540,000 90,000 360,000
5 70,000 610,000 90,000 450,000
6 40,000 650,000 90,000 540,000
7 40,000 690,000 90,000 630,000
8 30,000 720,000 90,000 720,000
So, the Payback period for Liquid soap is 4 years and Payback Period for Body Lotion is 6 Years respectively
Therefore we suggest liquid soap as it contains better paypack period as compared with the body lotion
Suppose a company spends $200,000 in the current year to research and develop a navigation device for hikers. By the end of the year, the company estimates that the new navigation device has a 70% chance of generating $500,000 in revenues from sales to customers over the next four years. For what amount would the company report research and development expense in the current year
Answer: $200,000
Explanation:
The company spent $200,000 on the research that led to the development of the navigation device and according to Accounting guidelines, Research and Development costs are to be expensed in the period that they occurred.
The entire $200,000 that was spent should therefore be expensed as Research and Development.
Nathan Herrmann has completed the basic format to be used in preparing the statement of cash flows (indirect method) for CEO Consultants.Listed below in random order are line items to be included in the statement of cash flows.Purchase of equipment $ 229,000Increase in inventory 35,000Increase in prepaid rent 7,500Payment of dividends 31,000Depreciation expense 13,000Increase in accounts receivable 47,000Increase in accounts payable 15,000Loss on sale of land 12,000Net income 69,000Repayment of notes payable 49,000Cash received from the sale of land 7,500Issuance of common stock 241,000Prepare the statement of cash flows for CEO Consultants using the indirect method.
Answer:
Ending cash balance is -$41,000.
Explanation:
This can be prepared as follows:
Nathan Herrmann
Cash Flow Statement
for the year ended ...
Details $ $
Net income 69,000
Adjustment to reconcile net income
Depreciation expense 13,000
Loss on sale of land 12,000
(Increase) decrease in current assets
Increase in inventory (35,000)
Increase in prepaid rent (7,500)
Increase in accounts receivable (47,000)
Increase (decrease) in current liabilities:
Increase in accounts payable 15,000
Net cash from operating activities 19,500
Cash flows from investing activities:
Cash received from the sale of land 7,500
Purchase of equipment (229,000)
Net cash flows from Investing activities (221,500)
Cash flows from financing activities:
Payment of dividends (31,000)
Repayment of notes payable (49,000)
Issuance of common stock 241,000
Net cash from financing activities 161,000
Increase / (Decrease) in cash (41,000)
Beginning cash balance -
Ending cash balance (41,000)
Explain why it is difficult to validate the relationships between internal product attributes, such as cyclomatic complexity and external attributes, such as maintainability.
Answer and Explanation:
The difficulty occurs as of the external attributes like the maintainability is some how related to the developers and users who experiences the software it could be impacted by various things like their experiences, education, etc also they are not dependent upon the cyclomatic complexity. In addition to this, for validating these kind of attributes, here are some internal attributed like size, complexity, documentation that could be determined
In meeting the gross income test for claiming his father as a dependent, James must consider the income received by his father. This income included gross rents of $3,000 (expenses were $2,000), municipal bond interest of $1,000, dividends of $1,500, and Social Security of $4,000. What is James' father's gross income for the qualifying relative test purposes in 2019
Answer:
Explanation:
In 2019, the gross income test is an official order that all dependents have no right to earn more than a given amount of income each year which is ($4200).
To compute the gross income for James Father, we have:
Description Amount
Gross income for rents $3000
Municipal Bond Interest 0
Dividend Income $1500
Social Security: 0
(since social security is exempted from the gross-income dependency test;
The total gross income = $4500
Thus, the gross income for James Father is $4500 as such he is not qualified to be dependent.
