Answer:
$46.278625
Explanation:
5 blinder = 5 x $4.50 = $22.5
7 pens = 7 x $1.10 = $7.7
3reams =3 x $4.25 = $12.75
Total cost before sales tax= $42.95
Sales tax = $42.95 x 7.75% = $3.328625
Total cost after sales tax = $42.95 + $3.328625
Total cost after sales tax = $46.278625
The major contribution of the Miller model is that it demonstrates that a. financial distress and agency costs reduce the value of using corporate debt. b. personal taxes increase the value of using corporate debt. c. equity costs increase with financial leverage. d. personal taxes decrease the value of using corporate debt. e. debt costs increase with financial leverage.
Answer:
b. personal taxes increase the value of using corporate debt.
Explanation:
Since the interest on debt funding is excluded from corporate tax, the leverage may have a beneficial impact in increasing the valuation of a company. The value of the leveraged firm will also rise due to debt as compared with the value of the unlevered firm, since the unlevered firm does not benefit from the benefits of tax savings. When the debt increases, leverage gains increasing.
Hence, the correct option is b.
Astro Mile & Co. owns vast amounts of corporate bonds. Suppose Astro Mile buys $ 1,400,000 of BitterCo bonds at face value on January 2, 2018. The BitterCo bonds pay interest at the annual rate of 8% on June 30 and December 31 and mature on December 1. Astro Mile intends to hold the investment until maturity.
Required:
a. Journalize any required 2016 entries for the bond investment.
b. How much cash interest will Astro Mile receive each year from CoteCorp?
c. How much interest revenue will Astro Mile report during 2016 on this bond investment?
Answer:
Dr bond investment $1,400,000
Cr cash $1,400,000
Cash interest is $112,000.00
Interest revenue for the year is also $ 112,000.00
Explanation:
The cash paid for the investment is $1,400,000, this would be debited to bond investment and credited to cash since it is an outflow of cash from the business.
At six-month interval, coupon receivable=$1,400,000*8%*1/2=$ 56,000.00
annual coupon receivable=$ 56,000.00 *2=$ 112,000.00
The following information for the past year for the Blaine Corporation has been provided:Fixed costs:Manufacturing$ 125, 000$125,000Marketing24,00024,000Administrative20,00020,000Variable costs: Manufacturing $ 110,000$110,000 Marketing 30,00030,000 Administrative 34,00034,000 During the year, the company produced and sold 60,00060,000 units of product at a selling price of $ 12.40$12.40 per unit. There was no beginning inventory of the product at the beginning of the year.What is the contribution margin ratio for Blaine Corporation (round to 1 decimal)?A. 70.470.4 %B. 53.953.9 %C. 22.722.7 %D. 76.676.6 %
Answer:
D. 76.6 %
Explanation:
Contribution Margin Ratio = Contribution / Sales × 100
First Calculate the Contribution
Contribution = Sales - Variable Costs
= (60,000 units × $ 12.40) - ($110,000+$30,000+$34,000)
= $744,000 - $174,000
= $570,000
Then Calculate Contribution Margin Ratio
Contribution Margin Ratio = $570,000 / $744,000 × 100
= 76.61290
= 76.6 % ( 1 decimal)
An adjusting entry was made on year-end December 31 to accrue salary expense of $1,500. Assuming the company does not prepare reversing entries. What entries would be prepared to record the $3,600 payment of salaries in January of the following year?
Answer and Explanation:
The Journal entries are shown below:-
1. Salary Expense $1,500
To Salary Payable $1,500
(Being salary expense is recorded)
Here we debited the salary expenses as it increased the expenses and we credited the salary payable as it also increased the liabilities
2. Salary Expense Dr, $2,100
Salary Payable Dr, $1,500
To Cash $3,600
(Being cash paid is recorded)
Here we debited the salary expenses and salary payable as it increased the expenses and decreased the liabilities and we credited cash as it reduced the assets
Q-mart failed to include inventory that was kept in a separate warehouse in its 12/31 end-of-the-period inventory count. Consequently, the ending inventory on 12/31 was understated on the balance sheet. Explain how this error will effect the income statement.Asset understatedEquity understated
Answer:
a. The gross profit. net income and retained earnings at the end of year will be overstated.
b. Assets will be understated especially the current assets.
c. Equity will be overstated.
Explanation:
a. Explain how this error will effect the income statement income statement
When the income statement is being prepared, cost of goods sold must be computed and then deducted from the net sales revenue to arrive at the gross profit. The formula for calculating the cost of goods sold and gross profit is as follows:
Cost of goods sold = Beginning inventory + Net purchases - Ending inventory
Gross profit = Net sales revenue - Cost of goods sold
From the cost of goods sold, it can be seen that ending inventory is a deduction. Also, cost of goods sold is a deduction from the gross profit equation.
As a result these, the failure of Q-mart to include inventory that was kept in a separate warehouse in its 12/31 end-of-the-period inventory count will make the cost of goods sold to be understated, while the gross profit and the net income for the year as well as retained earnings at the end of the year will be be overstated by the amount of the omitted ending inventory.
b. Explain how this error will effect the Asset
Ending inventory is a component of the current assets in the balance sheet. As a result of this, the failure of Q-mart to include inventory that was kept in a separate warehouse in its 12/31 end-of-the-period inventory count will make the asset to be understated by the amount of the omitted ending inventory.
c. Explain how this error will effect the Equity
From part a. above, it can be seen that retained earnings at the end of the year will be be overstated by the amount of the omitted ending inventory.
Since the retained earnings for the year is a component of the stockholders equity in the balance sheet, equity will therefore be overstated by the amount of the omitted ending inventory as the gross profit and the net income for the year as well as retained earnings for the year were already overstated in the income statetement.
Suppose that we want to estimate the effect of several variables on annual saving and that we have a panel data set on individuals collected on January 31, 1990, and January 31, 1992. If we include a year dummy for 1992 and use first differencing, can we also include age in the original model? Explain.
Answer:
No, we cannot include age in the original model as an explanatory variable in the original model
Explanation:
No, we cannot include age in the original model because Each of the person in the panel data set is exactly two years older on January 31, 1992 than that of January 31, 1990 which means that 2=∆i age for all i.
Although the equation we would estimate will be in this form .
∆savingi β⁰+δ¹∆age i +...,
where δ will be the coefficient of the year dummy for 1992 in the original model. In a situation where we have an intercept in the model this means that we cannot include an explanatory variable which is constant across i, and since age tend to change by the same amount for everyone, it means we cannot differentiate the effect of age from that of the aggregate time effects.
Your friend, Jonathon Fain, is an engineering major with an entrepreneurial spirit. He wants to start his own corporation and needs your accounting expertise. He has no idea what the following definitions mean:
1. Authorized stock.
2. Issued stock.
3. Outstanding stock.
4. Preferred stock.
5. Treasury stock.
Required:
Write a note to Jonathon carefully explaining what each term means and how they are different from each other.
Answer:
Please find the detailed explanation below.
Explanation:
1. Authorized stock:
This is the total(maximum) number of shares a corporation can issue. This can be found in its articles of incorporation or memorandum of association.
2. Issued stock:. This is the summation of all company's shares that have been sold and are held by shareholders.
3. Outstanding stock:
Outstanding stock or shares are all shares of a corporation that have been authorized, issued and purchased by shareholders and are held by them.
4. Preferred stock:
This share is an hybrid stock i.e it has a feature of both the equity and debt in it. Holders of this shares are entitled to fixed dividend payment and are usually paid before common shareholders if the company liquidates.
5. Treasury stock.:
Treasury shares are the shares that are repurchased by the corporation issuing them and thereby, reducing the total number of outstanding shares.
Sunset Corp. currently has an EPS of $2.09, and the benchmark PE for the company is 18. Earnings are expected to grow at 6.5 percent per year.
Required:
a. What is your estimate of the current stock price?
b. What is the target stock price in one year?
c. Assuming the company pays no dividends, what is the implied return on the company's stock over the next year?
Answer:
a. The estimate of the current stock price is $37.62
b. The target stock price in one year is $40.065
c. The implied return on the company's stock over the next year, Assuming the company pays no dividends is 6.51%
Explanation:
a. In order to calculate estimate of the current stock price would have to mak the following calculation:
current stock price=EPS*PE
current stock price=$2.09*18
current stock price=$37.62
The estimate of the current stock price is $37.62
b. To calculate the target stock price in one year we would have to make the following calculation:
target stock price in one year=EPS in one year* PE
EPS in one year=EPS*(1+percentage of Earnings expected to grow)
EPS in one year=$2.09*(1+0.065)
EPS in one year=$2.226
Therefore, target stock price in one year=$2.226*18
target stock price in one year=$40.065
The target stock price in one year is $40.065
c. To calculate the implied return on the company's stock over the next year Assuming the company pays no dividends we would have to use the following formula:
implied return on the company's stock over the next year=P1-P0/P0
implied return on the company's stock over the next year=$40.065-$37.62/$37.62
implied return on the company's stock over the next year=6.51%
The implied return on the company's stock over the next year, Assuming the company pays no dividends is 6.51%
Company C set up a Reserve for Bad Debts in 2013. Although there were no account balances written off, it was considered prudent to acknowledge that some of the Accounts Receivable would not be collectable. The IRS does not allow a deduction until the accounts are written off. As a result, the Taxable Income was greater than the Income Before Taxes.
This is a timing difference and will reverse in future years so it means that Taxable Income will be less than Income Before Taxes in some future years when the accounts written off will be greater than the increase in the Reserve for Bad Debts. What will be the entry required in 2013 to record this difference?
Answer:
Company C
Journal Entry to record the Difference in Taxable Income and Income before Taxes in 2013:
Debit Deferred Tax Asset $
Credit Income Tax Payable $
To record the deferred tax asset.
Explanation:
Since the taxable income is higher than the Income before Taxes, there is a deferred tax asset.
The amount is the tax rate multiplied by the difference in the two incomes.
A deferred tax asset results from overpayment or advance payment of taxes due to timing differences. It is the opposite of a deferred tax liability, which represents income taxes owed or underpayment of taxes as a result of the timing of transactions.
Timing differences arise from the treatment of Taxable Income by the tax authorities and the different treatment of Income before Taxes recognized in GAAP accounting.
Brian Company recorded the following cash transactions for the year ended December 31, 2013:Received cash receipts from their customers totaling $600,000Paid $225,000 in salariesPaid $80,000 in rent and utilitiesPaid $6,000 in insuranceWhat is the net cash provided by operating activities on Brian Company's Statement of Cash Flows as of December 31, 2013?A. $600,000B. $577,500C. $295,000D. $289,000
Answer:
D. $289,000
Explanation:
The computation of the net cash provided by operating activities is shown below:
Cash flow from operating activities
Received cash receipts from their customers $600,000
Less:
Salaries Paid In Cash -$225,000
Rent and Utilities Paid in Cash -$80,000
Insurance Paid in Cash -$6,000
Net Cash Provided by Operating Activities $289,000
The cash inflow indicates in a positive sign while the cash outflow indicates in a negative sign
Jolene hired Lacy to find a buyer for her house. Adam was interested in buying the house. If both Jolene and Adam agree, Lacy, a real estate agent, may represent both parties.
A. True
B. False
Answer:
True
Explanation:
Lacy can represent both parties. If Lacy represents both parties this is known as dual agency.
As the “dual” agent Lacy handles all of the communications, paperwork, and negotiations between both parties, that is the buyer and seller who happens to be Jolene and Adam. She is supposed to remain neutral as the facilitator of the deal with no fiduciary duty to either side. Fiduciary duty is to uphold a client's interest in good faith an trust.
The following information relates to the Matthew Young Company.
Date Ending Inventory (End-of-Year Prices) Price Index
December 31, 2016 $68,400 100
December 31, 2017 122,744 134
December 31, 2018 132,904 148
December 31, 2019 150,920 154
December 31, 2020 141,920 160
Use the dollar-value LIFO method to compute the ending inventory for Young Company for 2016 through 2020.
Ending Inventory
2016 $
2017 $
2018 $
2019 $
2020 $
Answer:
year 2016 $ 68,400
year 2017 $ 99,488
year 2018 $ 97,076
year 2019 $ 109,704
year 2020 $ 95,602
Explanation:
2016: year-base the nominal is the same as the ending
2017:
122,744 x 100/134 = 91,600
second layer:
91,600 - 68,400 = 23,200
ending inventory
base layer 68,400
23,200 x 134/100 = 31,088
total 99,488
2018:
132,904 /1.48 = 89,800
89,800 - 68,400 = 21.400
21,400 x 1.34 = 28,676
68,400 + 28,676 = 97,076
2019:
150,920 / 1.54 = 98,000
98,000 - 68,400 = 29,600
29,600 - 21,400 = 8,200
Layers
68,400 x 100/100 = 68,400
21,400 x 134/100 = 28,676
8,200 x 154/100 = 12,628
Ending Inv 109,704
2020:
141,920 / 1.60 = 88,700
88,700 - 68,400 = 20,300
Layers:
68,400 x 100/100 = 68,400
20,300 x 134/100 = 27,202
Ending Inventory 95,602
HURRY On Monday, Monahan accepts a job at Acme for $50,000 per year. He is to begin work on Friday. On Tuesday, Acme informs him they cannot hire him. Which of the following is true? Select one: a. Acme will breach the contract on Friday if they refuse to hire Monahan. b. Monahan will breach the contract if he fails to come to work on Friday. c. Neither breached the contract because there is no contract until Friday. d. Acme breached the contract on Tuesday
Answer:
The correct answer is : C. Neither breached the contract because there is no contract until Friday.
Explanation:
As the contract will only become valid when both the parties Mohan and ACME sign up and this will only happen on Friday. But as Mohan is informed by the Acme on Tuesday that they can not hire him before signing up the contract that is scheduled on Friday. Since there is no valid agreement between parties, no breach of contract occurred.
Thus, the correct answer is option C. Neither breached the contract because there is no contract until Friday.
The Chairman of a bank municipal broker-dealer is on the town council involved in a negotiated municipal bond underwriting being performed by that municipal broker-dealer. Under MSRB rules, which statement is TRUE regarding disclosure of the relationship?
A. The relationship need not be disclosed to any purchaser of the bonds
B. The relationship must be disclosed to customers in writing no later than at confirmation of sale
C. The relationship must be disclosed only if the municipality agrees in writing to such disclosure
D. The relationship must be disclosed only if the broker-dealer is the sole underwriter on the issue
Answer:
B.
Explanation:
The Municipal Securities Rulemaking Board, (MSRB) is responsible for creating all the rules and policies for investment firms and banks. Under these rules, they state that the relationship must be disclosed to customers in writing no later than at confirmation of that sale. This is so that both the buyer and seller are in agreement with all the fine details before finalizing the deal and transferring the security or cash and are not met with undisclosed terms.
If the maker of a note does not pay at maturity, ________. Group of answer choices the debtor no longer owes the payee interest revenue cannot be accrued on the note the note is no longer in force because it has expired the principal is recorded as a debit to the Accounts Receivable account
Answer:
recorded as a debit to the Accounts Receivable account
Explanation:
A large Japanese multinational that has penetrated the US market and a medium-size Indian firm that is mainly selling its products in Asia are considering cross-listing their shares in the USviaADRs that would trade on the NASDAQ. What are the possible motivations why such a move would make sense for theJapanese and the Indian firm
Answer:
Basically foreign firms trade ADR's in Nasdaq, NYSE or other OTCs because they want to access more investors.
To be honest, trading an ADR makes more sense for the Indian Company since the Indian capital market is not that large and investors are scarce. Maybe the Indian company cannot get any more money from its capital market. For the Indian company it is clearly a very advantageous opportunity.
Understanding the motivations of the Japanese company is more complex since Japan has a large capital market and its savings rate (= investment rate) is extremely high, so there is a lot of money available for investing in corporations. Listing ADRs is generally more expensive than listing normal stocks since you must have a depository institution that charges a fee in addition to other normal expenses. The only reason I can think of why the Japanese company wants to list ADRs is that they are trying to invest in the US and they would prefer to obtain "local" funding for these specific investments.
Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40.3 million cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 8% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each firm has a December 31 year-end. Required: 1. Prepare the journal entries on October 1, 2021, to record the issuance of the note
Answer:
The journal entry to record the issuance of the promissory note:
October 1, 2021, loan obtained from Midwest Bank
Dr Cash 40,300,000
Cr Notes payable 40,300,000
By December 31, 2021, interests will have accrued. Assuming a 365 day year, accrued interest for 3 months = $40,300,000 x 8% x 82/365 = $724,295.89
December 31, 2021, accrued interest on bank loan
Dr Interest expense 724,295.89
Cr Interest payable 724,295.89
A trucking company sold its fleet of trucks for $55,400. The trucks originally cost $1,426,000 and had Accumulated Depreciation of $1,273,000 recorded through the date of disposal. What gain or loss did the trucking company record when it sold the fleet of trucks
Answer:
Loss of $97,600
Explanation:
From the question above a trucking company sold its fleet for $55,400
The truck original cost is $1,426,000
The depreciation is $1,273,000
The first step is to calculate the book value
Book value= cost-accumulated depreciation
= $1,426,000-$1,273,000
= $153,000
The next step is to subtract the book value from the cost to determine if it a gain or loss
= $55,400-$153,000
= -97,600
Since the value is negative then, the trucking company is at a loss of $97,600
Which of the following is a major difference between Internet banks and traditional banks? The government does not regulate Internet banks. Traditional banks are prohibited from having ATMs. Internet banks have lower overhead costs. Traditional banks offer less personal care and attention to customers.
Answer:
Internet Banks have lower overhead costs.
Explanation:
Online Banks and traditional banks are basically the same with the main difference being that Internet Banks have lower overhead costs. These are costs on the income statement usually including accounting fees, advertising, insurance, interest, legal fees, labor burden, rent, repairs, supplies, taxes, telephone bills, travel expenditures, and utilities. Since Internet Banks do not need many physical locations they save on many of these overhead fees.
TB MC Qu. 05-100 A company had the following... A company had the following purchases and sales during its first year of operations: Purchases Sales January: 10 units at $120 6 units February: 20 units at $125 5 units May: 15 units at $130 9 units September: 12 units at $135 8 units November: 10 units at $140 13 units On December 31, there were 26 units remaining in ending inventory. Using the perpetual LIFO inventory costing method, what is the cost of the ending inventory
Answer:
$3,270
Explanation:
The perpetual LIFO inventory costing method is one in which adjustments are made to the balance of inventory for every item issued or received in a sequence of last in first out.
Given that 10 units at $120 6 units February: 20 units at $125 5 units May: 15 units at $130 9 units September: 12 units at $135 8 units November: 10 units at $140 13 units On December 31, there were 26 units remaining in ending inventory.
The net inventory units = 10 - 6 + 20 - 5 + 15 - 9 + 12 - 8 + 10 - 13
= 26 units
Since
January reminder (in value) = 10 - 6 ) $120 = $480
February remainder (in value) = (20 - 5) $125 = $1,875
May remainder = (15 - 9) $130 = $780
September = 12 - 8) $135 = $540
In November 10 items were purchased but 13 were sold.The makeup of the items sold are the 10 purchased in the month and 3 out of the remaining 4 items left off from September. Hence the balance for September will be
=$135
Cost of ending inventory
= $480 + $1,875 + $780 + $135
= $3,270
1. Prepare a journal entry showing the transfer of Job 102 into Finished Goods Inventory upon its completion. 2. Prepare the journal entries to recognize the sales revenue and cost of goods sold for Job 101. 3. Prepare the journal entry to transfer the balance of the Manufacturing Overhead account to Cost of Goods Sold.
Answer and Explanation:
Before recording the journal entries first we need to do the computations which are shown below:
The predetermined overhead rate is
= $420,000 ÷ 60,000 machine hours
= $7 per machine hour
Now
Particulars Job 101 Job 102 Job 103 Total
Direct materials used 19,200 14,400 9,600 43,200
Direct labor 28,800 11,200 9,600 49,600
overhead applied 7000 28000 14000 49000
total 55,000 53,600 33,200 141,800
COGS Finished WIP
Now the journal entries are as follows
1 Finished goods inventory $53,600
To Work in process inventory $53,600
(Being the transfer of job 102 is recorded)
2a) Cost of goods sold $55,000
To Finished goods inventory $55,000
(being the cost of goods sold is recorded)
2b) Cash $60,000
To sales revenue $60,000
(being the sales revenue is recorded)
3) Manufacturing overhead $4,000 ($49,000 - $45,000)
To Cost of goods sold $4,000
(Being the balance of the manufacturing overhead is recorded)
Susan needs to communicate a denial of warranty work to a customer. Based on her conservations with the customer, Susan feels that the information will evoke a negative response. In this context, which of the following formats should Susan use to organize the information in his message?
a. Chronological order
b. Direct order
c. Critical order
d. Indirect order
e. Complex order
Answer:
d. Indirect order
Explanation:
Based on the information provided it can be said that Susan should organize the information as an indirect order. This refers to avoiding direct orders and phrasing everything in such a way that we make a request in a more polite way, using words such as want, would like and would love. This will lighten the tone of the conversation and prevent the client from evoking a negative response while still being able to convey the correct information.
Clark’s Landscaping bills customers subject to terms 3/20, n/60.
Required:
Compute the annual interest rate implicit in the sales discount. (Use 365 days in a year. Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).)
Answer: 28.20%
Explanation:
To compute the annual interest rate implicit in the sales discount for thus:
Firstly, we have to calculate the difference that exist between the payment date and the due date and then divide by 365 days which has been given in the question. This will be:
= 60 days - 20 days = 40 days
= 365days/40days
= 9.125%
Secondly, we will then subtract the percentage discount from 100% and then divide the result. Since discount percentage is 3%, this will be:
= 3%/(100% - 3%)
= 3%/97%
= 0.03/0.97
= 0.0309278351
= 3.09%
Lastly, we then multiply the result of the calculations above together in order to get the annualized interest rate. This will be:
= 9.125% × 3.09%
= 28.19625%
= 28.20%
Annualized interest rate. =28.20%
Crane Company reports: Cash provided by operating activities $ 310000 Cash used by investing activities 120000 Cash provided by financing activities 149000 Beginning cash balance 98000 What is Crane’s ending cash balance?
Answer:
$437,000
Explanation:
We first, find the net cash flow for the current period, and then, add the cash balance for the period immediately before.
Net cash flow for current period:
Cash provided by operating activities $310,000
Cash used by investing activities ($120,000) - we substract this because the cash was "used", that is to say, it was spent.
Cash provided by financing activities $149,000
Net cash flow: $339,000
Ending cash balance = Net cash flow + beginning cash balance
= $339,000 + 98,000
= $437,000
Billy isn't sure he'll be able to rise to the challenge of pitching to a very important client at work, but his supervisor selected Billy to give the pitch because he knows Billy will seal the deal. This information falls into the quadrant of his Johari window labeled __________.
a. open
b. secret
c. unknown
d. blind
Answer:
d. blind
Explanation:
The Johari window label is used to provide an explanation of the relationship between employers and employees. It gives an explanation of some psychological issues that inform the behavior of these two groups. The quadrant of the Johari window labeled blind reveals what the employer knows about the employee, but the employee does not know that about himself due mostly to a lack of self-awareness. This is the case between Billy and his employer who knows about his ability to pitch a deal, but which Billy is not so confident about.
The employer could help Billy overcome the problem of lack of self-awareness by encouraging him to reveal information about himself.
Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the patent on a straight-line basis since 2017, when it was acquired at a cost of $10.8 million at the beginning of that year. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost. The decision was made at the beginning of 2021.Required:
Prepare the appropriate adjusting entry for patent amortization in 2021 to reflect the revised estimate.
Answer:
The appropriate adjusting entry for patent amortization in 2021 to reflect the revised estimate would be as follows:
Amortization Expense Dr. 3 million
Patent Cr. 3 million
Explanation:
In order to Prepare the appropriate adjusting entry for patent amortization in 2021 to reflect the revised estimate we would have to make the following calculations:
Calculation after the Change:
Original Cost =$10.8 million
Annual Amortization (Old) =$10.8 million/9 = $1.2 million
Amortization till Date (2017 - 2021) = 1.2*4 = 4.8 million
Unamortized Value = 10.8 - 4.8 = 6 million
Remaining Life = 6 - 4 = 2 Years
New Amortization = Unamortized Value/Remaining Life = 6/2 = 3 million
Therefore, the appropriate adjusting entry for patent amortization in 2021 to reflect the revised estimate would be as follows:
Amortization Expense Dr. 3 million
Patent Cr. 3 million
The main reason strategic management is important is ________.it allows an organization to anticipate economic recessions it reduces uncertainty it can make a difference in how well an organization performs it simplifies the environment
Answer:
it can make a difference in how well an organization performs.
Explanation:
The main reason strategic management is important is it can make a difference in how well an organization performs. This is because strategic management involves setting objectives, analyzing both the competitive and internal environment, evaluating strategies, and choosing the right strategies, by doing so the entire organization stays focused and united towards the same goal. This makes everything much more efficient and decreases confusion.
The local baseball stadium's concession stands previously sold hot dogs for 80 cents apiece. At that price, when a baseball fan went to watch a baseball game, he bought 2 hotdogs. But now that the stadium has a "dime-a-dog night," he has purchased 6 hot dogs. What is the approximate value of this individual's absolute price elasticity of demand for hot dogs?
Answer:
0.64
Explanation:
The computation of the absolute price elasticity of demand is shown below:
As we know that
[tex]=\frac{\Delta Q}{\Delta P}\times\frac{P_1+P_2}{Q_1+Q_2}[/tex]
Where,
Change in Quantity demanded = 6 - 2 = 4
Change in price = $80 - $10 = 70
[tex]P_1[/tex] = 10
[tex]P_2[/tex] = 80
[tex]Q_1[/tex] = 2
[tex]Q_2[/tex] = 6
Now placing these values to the above formula
so, the price elasticity of demand is
= ((6 - 2) ÷ (80 - 10)) × (10 + 80) ÷ (2 + 6)
= 0.64
In Waddell v. Rustin, Waddell was not declared an implied partner despite her testimony that she and her romantic partner ran their business as partners, including her involvement in management and oversight of business projects, access to company checkbook, payment of company bills, and assistance in choosing construction projects.
a. True
b. False
Answer: a. True
Explanation:
In the case of Waddell v. Rustin, Waddell met and got into a romantic relationship with Rustin in 1999 and Waddell claimed to have helped Rustin out in the business alot by having oversight of business projects, having access to the company checkbook, paying company bills, and assisting in choosing construction projects.
She claimed that for this reason she was entitled to a share of the profits as the relationship had been dissolved.
In a judgement by the Trial Court which was affirmed by the Court of Appeals of Tennessee, the court held in favor of Rustin and said that no Implied Partnership was formed because Rustin was already an experienced builder for years before they met and Waddell had none so the business being viable was more because of Rustin than her. The Court maintained that she would have to give more convincing evidence in order to convince them otherwise.
A disgruntled employee of your major competitor mails top-secret information or new product samples to you. Do you begin to do a dance on your desktop or do you immediately mail the information back to your competitor
Question:
A disgruntled employee of your major competitor mails top?secret information or new product samples to you. Do you begin to do a dance on your desktop or do you immediately mail the information back to your competitor? What would you do?
a. Throw the plans or secrets away.
b. Send them to your research department for analysis.
c. Notify your competitor about what is going on.
d. Call the FBI.
Answer:
You are to Call the FBI
Explanation:
In this case, where a disgruntled employee of your major competitor mails top-secret information or new product samples to you, the right decision to make acclrding to your company's code and ethics is to contact the security agencies, which in this case is the Federal Bureau of Investigation (FBI). The Federal Bureau of Investigation would make proper investigations and take proper steps to protect your company so they(your company) won't be accused of stealing information from a competitor in time to come.
This is the best way, both ethically and legally to handle this situation.
