Answer:
2020 = $0; 2021 = $75,000
Explanation:
Under completed contract method, all revenues and expenses are recognized upon project completion. Since Mobic Inc. recognizes revenue upon project completion, gross profit in 2020 will be $0 as there are no revenues and expenses recognized in 2020.
Since the contact is completed in 2021, the entire revenues and expenses will be recognized in 2021
Contract price = $450,000
Contract costs = $180,000 + $195,000 = $375,000
Gross profit = $450,000 - $375,000
Gross profit = $75,000
So, the entire gross profit of $75,000 will be recognized in 2021.
If the USA can produce 12,000 personal computers or 16,000 TVs, and Japan can produce 10,000 personal computers or 30,000 TVs, then it follows that a. the USA does not have an absolute advantage in TVs. b. the USA does not have an absolute advantage in computers. c. Japan has an absolute advantage in both TVs and computers. d. the USA has an absolute advantage in both TVs and computers.
Answer:
a. the USA does not have an absolute advantage in TVs.
Explanation:
Absolute advantage is an economic term that describes the relative ease with which a country is able to produce a good compared to other producers.
The country that has absolute advantage will produce more numbers a product with the same resources as the other producer.
In the given scenario USA can produce 12,000 personal computers compared to 10,000 personal computers by Japan. So they have absolute advantage in producing personal computers.
Japan can produce 30,000 TVs compared to 16,000 TVs by USA. So Japan has absolute advantage in producing TVs
George purchased a futures contract at 349. The contract is on 2500 units, requires a 10% margin deposit and is priced in cents per unit. George sold the contract at 278. What is George's return on invested capital
Answer:
-203.4%
Explanation:
Initial investment = 2,500*349*10%
Initial investment = 87,250
Return = (278 - 349) * 2,500 unit
Return = -71 * 2,500 unit
Return = -177,500
Return on invested capital = Return / Initial investment
Return on invested capital = -177,500/87,250
Return on invested capital = 2.034383954154728
Return on invested capital = -203.4%
The price of Good B increases by 4%, causing the quantity demanded of Good A to decrease by 6%. The cross-price elasticity of demand is ________, and the goods are ________.
Answer:
The answer is -1.5 and complementary goods
Explanation:
Cross price elasticity is the percentage decrease in quantity demanded divided percentage increase in price.
= -6/4
= - 1.5.
Because the sign is negative, the goods are complements. Complementary goods are directly related. As in they move in the same direction.
For example, car and fuel are complements. The increase in quantity demanded for car will increase the quantity demanded for fuel. Or if the price of car goes up, all things being equal, the quantity demanded of car will reduce and for fuel too.
Sammy, a calendar year cash basis taxpayer who is age 66, has the following source of income and expenses: Salary $90,000 IRA Distribution - Roth IRA $10,000 Medical expenses ($8,000) Sammy also made a charitable contribution of ABC Shares. The FMV at the date of the contribution was $5,000. Sammy inherited the shares 5 years ago. At that time the FMV of the shares was $3,500. Based on this information, Sammy has:
Answer:
Adjusted Gross income of $90,000
Explanation:
The computation of the adjusted gross income is as follows:
Salary income- 90,000
IRA Distribution $0
Adjusted Gross Income $90,000.
We assume the IRA distribution is a tax free
Therefore the sammy has the adjusted gross income of $90,000 and the same is to be considered
When preparing a statement of cash flows, a decrease in accounts receivable during a period would cause which one of the following adjustments in determining cash flow from operating activities? Direct Method Indirect Method Decrease Decrease Increase Increase Increase Decrease
Answer:
Increase Increase
Explanation:
financial accounting, statement of cash flow can be regarded as a financial statement that gives the summary of values of amount cash as well as cash equivalent that enters or leave a firm. It gives the measurement of the well management of cash position of a company. It should be noted that When preparing a statement of cash flows, a decrease in accounts receivable during a period the adjustments in determining cash flow from operating activities is that Direct Method increases, Indirect Method increases.
Bloomfield Bakers accounts for its investment in Clor Confectionary under the equity method. Bloomfield carried the Clor investment at $150,150 and $165,550 at December 31, 2020, and December 31, 2021, respectively. During 2021 Clor recognized $75,650 of net income and paid dividends of $20,500. Assuming that Bloomfield owned the same percentage of Clor throughout 2021, its percentage ownership must have been: (Round your answer to the nearest whole percent): Multiple Choice 26%. 20%. 75%. 28%.
Answer:
28%
Explanation:
let X = the percentage of ownership of Clor Confectionery
the investment account balance = $150,150 - X$20,500 + X75,650 = $165,550
$150,150 + X$55,150 = $165,550
X$55,150 = $15,400
X = $15,400 / $55,150 = 0.2792 = 27.92% ≈ 28%
Multiple Choice Question 38 Vaughn, Inc. has 1000 shares of 5%, $10 par value, cumulative preferred stock and 63000 shares of $1 par value common stock outstanding at December 31, 2020. What is the annual dividend on the preferred stock
Answer:
$0.5 per share
Explanation:
Preference Share Capital = 1000 shares * $10 = 10,000
Annual Dividend in Total = 10000*5% = $500
Annual Dividend Per Share = $500/1000 = $0.5 per share
The Grandview Company issues 1 million shares of common stock with a par value of $0.12 for $16.00 a share. The entry to record this transaction includes a debit to Cash for:
Answer:
$16,000,000
Explanation:
This question requires us to give the amount arising in cash assets after this transaction.
We simply have to focus on the price offered for the share on the date of sale which is $16.00. Thus, cash proceeds (debited) will be :
Cash Proceeds = Share Price × Number of Shares issued
= $16.00 × 1,000,000 shares
= $16,000,000
The rest of the Journal entry for this transaction will be :
Debit : Cash ($16.00 × 1,000,000) $16,000,000
Credit : Common Stock ($0.12 × 1,000,000 shares) $120,000
Credit : Paid In Excess of Par ($15,88 × × 1,000,000 shares) $15,880,000
Suppose you purchased a stock a year ago. Today, you receive a dividend of $16 and you sell the stock for $99. If your return was 11%, at what price did you buy the stock
Answer: 103.60
Explanation:
From the question, we are informed that a stock was purchased a year ago and that today, a dividend of $16 was gotten and the stock was sold for $99 while the return was 11%.
The price that the stock was bought will be:
= (Dividend + Stock sale)/(1 + Return)
= (99 + 16) /(1 + 11%)
= =(99+16)/1.11
= 103.60
Based on his investment advisor's guidance, Christopher sold two stocks during 2020. The capital gain on the sale of Magnificent Inc. was $35,000 and the capital loss on the sale of Rotten Tomatoes Inc. was $7,000. Christopher needs the money for a downpayment on a condo. If Christopher is in the highest marginal tax bracket of 53.31%, what is the net amount that he will receive after taxes are paid on the sale of these shares to use towards the purchase of a condo
Answer:
The question is incomplete since we are not told if the capital gain is a short or long term gain. So I will answer the question in both possible scenarios.
Short term capital gains:
They are taxed as ordinary income, so the net gain = $35,000 - $7,000 = $28,000
Net gain after taxes = $28,000 x (1 - 53.31%) = $13,073.20
Long term capital gains:
They are taxed at a much lower rate that ranges from 0 to 20%. In this case, Christopher is probably taxed at 20%.
Net gain after taxes = $28,000 x (1 - 20%) = $22,400
Explanation:
At December 31, 2020 Bramble Corp. had 298000 shares of common stock and 9800 shares of 6%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2020 or 2021. On January 30, 2022, prior to the issuance of its financial statements for the year ended December 31, 2021, Bramble declared a 100% stock dividend on its common stock. Net income for 2021 was $1143000. In its 2021 financial statements, Bramble's 2021 earnings per common share should be
Answer:
the earning per common share is $3.83 per share
Explanation:
The computation of the earning per common share is shown below
= Net income ÷ weighted number of outstanding shares
= $1,143,000 ÷ (298,000 shares)
= $3.83 per share
We simply divided the net income from the weighted number of outstanding shares so that the earning per share could be determined
hence, the earning per common share is $3.83 per share
Roccos Incorporated reports the following amounts at the end of the year. Cash$6,200Service revenue$72,200 Equipment 19,500 Cost of goods sold (food expense) 54,300 Accounts payable2,500Buildings29,000 Delivery expense 3,500 Supplies 1,500 Salaries expense6,400Salaries payable800 Deferred Revenue5,000Accumulated Depreciation8000 In addition, the company had common stock of $21,000 at the beginning of the year and issued an additional $2,100 during the year. The company also had retained earnings of $12,600 at the beginning of the year and paid dividends of $3,800 during the year. Prepare the income statement, statement of stockholders' equity, and balance sheet.
Answer:
Roccos Incorporated
a) Roccos Incorporated Income Statement for the year ended Dec. 31:
Service revenue $72,200
Cost of goods sold (food expense) 54,300
Delivery expense 3,500
Salaries expense 6,400 64,200
Net income $8,000
b) Roccos Incorporated Statement of Stockholders' Equity for the year ended December 31:
Common stock $23,100
Retained earnings 16,800
Equity balance $39,900
c) Roccos Incorporated Balance Sheet as of December 31:
Assets:
Cash $6,200
Supplies 1,500 $7,700
Equipment 19,500
Acc. Depreciation 8,000 11,500
Building 29,000 40,500
Total assets $48,200
Accounts payable $2,500
Salaries payable 800
Deferred revenue 5,000 $8,300
Common stock $23,100
Retained earnings 16,800 39,900
Total liabilities + equity $48,200
Explanation:
a) Data and Calculations:
Cash $6,200
Service revenue $72,200
Equipment 19,500
Cost of goods sold (food expense) 54,300
Accounts payable 2,500
Buildings 29,000
Delivery expense 3,500
Supplies 1,500
Salaries expense 6,400
Salaries payable 800
Deferred Revenue 5,000
Accumulated Depreciation 8,000
Common Stock 23,100
Retained Earnings 12,600
Common stock of $21,000
Additional issue 2,100
Total common stock $23,100
Retained earnings $12,600
Net income 8,000
Dividends paid (3,800)
Retained earnings $16,800
. Underwater Experimental is considering a project which requires the purchase of $498,000 of fixed assets. The net present value of the project is $22,500. Equity shares will be issued as the sole means of financing the project. What will the new book value per share be after the project is implemented given the following current information on the firm
Answer:
$13.25
Explanation:
The computation of the new book value per share is as follows
current market price per share is
= market value ÷ number of shares outstanding
= $936,000 ÷ 60,000
= 15.6
Now
number of shares to be issued is
= cost of the machine ÷current market price per share
= $498,000 ÷ $15.60
= 31923.07692
Now
The new book value per share is
= (current book value + amount raised from the issuance of shares ) ÷ ( current number of shares + number of shares issued for machinery purchase
= ($720,000 + $498,000 ) ÷ ( 60,000 + 31923.08 )
= $13.25
ABC company has two classes of stock: A preferred that has a market value of $125 per share and a par value of $100, with a 6% cumulative dividend, 10000 shares issued and outstanding. A common stock that was issued at $20 per share, no par value, 50000 shares issued and outstanding. ABC paid cash dividends of $75000 in 2007, $50,000 in 2008, and $80,000 in 2009. For 2007 indicate how much of the dividend the Preferred shareholders and common shareholders received. In 2007
Answer:
Dividends paid to preferred shareholders in 2007 = $60,000
Dividends paid to common shareholders in 2007 = $15,000
Explanation:
The Dividends paid to preferred shareholders in 2007 = 6% * $100 * 10,000 shares
The Dividends paid to preferred shareholders in 2007 = 0.06*100*10,000
The Dividends paid to preferred shareholders in 2007 = $60,000
Dividends paid to common shareholders in 2007 = Cash dividend paid in 2007 - Dividends paid to preferred shareholders
Dividends paid to common shareholders in 2007 = $75,000 - $60,000
Dividends paid to common shareholders in 2007 = $15,000
Joe is self-employed in a store that has a rental value of $500 a month which he pays, but he can vacate the building without giving notice. His other expenses are $100 a month for maintenance. He makes $25,000 a year on net sales (total revenue minus the wholesale cost of the product). If he quit his job and worked the same number of hours elsewhere at a job he liked equally well, he estimates that he could make $20,000 a year. No one else can be hired to work in the store. Joe should It is impossible to say with the information given in the problem. quit his job. work part-time. keep the job.
Answer:
work part time
Explanation:
Vandezande Inc. is considering the acquisition of a new machine that costs $438,000 and has a useful life of 5 years with no salvage value The incremental net operating income and incremental net cash flows that would be produced by the machine are (ignore income taxes) Incremental Incremental Net Operating Net Cash Income s 79, 000 $ 85,000 Year 3 96,000 Year 4 59,000 Year S $101,000 Flows Year 1 Year 2 $154, 000 $164,000 $175, 000 $161,000 $163,000 Assume cash flows occur uniformly throughout a year except for the initial investment The payback period of this investment is closest to:___________ a) 22 years b) 5.0 years c) 4.3 years d) 2.7 years
Answer:
Vandezande Inc.
The payback period of this investment is closest to:___________
d) 2.7 years
Explanation:
a) Data and Calculations:
Incremental Net Operating Incomes Net Cash Flows Incremental cash
Year 1 $79, 000 $154, 000
Year 2 $ 85,000 $164,000 $318,000
Year 3 96,000 $175, 000 493,000
Year 4 59,000 $161,000 654,000
Year 5 $101,000 $163,000 817,000
Total $420,000 $817,000
Payback period = Cash outflow/ (Total cash inflows/5)
= $438,000/($817,000/5)
= $438,000/$163,400
= 2.68
= 2.7 years
b) Payback period is the time an investment takes to recover its initial cost, at which the break-even point is reached. Shorter payback period increases the attractiveness and desirability of an investment. Another method to calculate the payback period is the subtraction method. This involves subtracting the cash inflows from the cash outflow until the cash outflow becomes zero.
Suppose that we observe two comparable properties that have each sold twice within the past four years. Property A sold 24 months ago for $500,000 and Property B sold 48 months ago for $575,000. If the two properties were sold today at $425,000 and $465,000, respectively, estimate the change in market conditions (percentage change in price) per month, assuming we equally weight the two properties in our analysis.
Answer:
0.475% per month
Explanation:
value of property A 24 months ago = $500,000
current value of property A = $425,000
total decrease in value = $500,000 - $425,000 = $75,000 or 15%
monthly % decrease:
1.15 = (1 + r)²⁴
²⁴√1.15 = (1 + r)
1.0058 = 1 + r
r = 0.00584 = 0.58% decrease per month
value of property B 48 months ago = $575,000
current value of property A = $465,000
total decrease in value = $575,000 - $465,000 = $110,000 or 19.13%
monthly % decrease:
1.1913= (1 + r)⁴⁸
⁴⁸√1.1913 = (1 + r)
1.0037 = 1 + r
r = 0.0037 = 0.37% decrease per month
if both properties are weighted equally, then the market decrease per month = (0.58% x 1/2) + (0.37% x 1/2) = 0.475% per month
ABC Company on Jan 1, 2021 purchased a delivery van for $24,000. To complete the purchase, the company also incurred a $800 shipping cost and $1,200 sales tax. The company estimates that at the end of its four-year service life, the van will be worth $4,000. During the four-year period, the company expects to drive the van 100,000 miles. Actual miles driven each year were 20,000 miles in year 1; 25,000 miles in year 2; 44,000 miles in year 3; and 55,000 miles in year 4. Required: Using Straight-line depreciation method, what is the annual depreciation expense
Answer:
the yearly depreciation expense is $5,500
Explanation:
The computation of the yearly depreciation expense using the straight line method is as follows;
= (Purchase cost - salvage value) ÷ (estimated useful life)
= ($24,000 + $800 + $1,200 - $4,000) ÷ (4 years)
= ($26,000 - $4,000) ÷ (4 years)
= $22,000 ÷ 4 years
= $5,500
hence, the yearly depreciation expense is $5,500
A leader who tries to connect with their workers by understanding their wants and needs is practicing ______.
a.
Courage
b.
Dependability
c.
Empathy
d.
Vision
Answer:
C
Explanation:
Multiple Choice Question 119Sarah Jones's regular rate of pay is $26 per hour with one and one-half times her regular rate for any hours which exceed 40 hours per week. She worked 49 hours last week. Therefore, her gross wages were
Answer: $1391
Explanation:
given data:
pay per hour = $26
hours worked last week = 49
pay for hours exceeding 40 = [tex]1\frac{1}{2}[/tex]
solution:
her gross wage
[tex]= 26 * 40 + 1\frac{1}{2}*26*9\\[/tex]
[tex]= 1040 + 1.5(26)*9\\[/tex]
[tex]= 1040 + 39*9[/tex]
[tex]= 1040 + 351\\[/tex]
[tex]= 1391[/tex]
her gross wage for the week is $1391
Left ventricular mass (LVM), determined from echocardiograms, is an important risk factor for subsequent cardiovascular disease. The researchers are interested in assessing whether LVM changes in children over a 4-year period. To help plan the main study, a pilot study is conducted where echocardiograms are obtained from 10 random children from the Bogalusa Heart Study at baseline and after 4 years of follow-up. The sample mean of LVM change over the 4-year study period is 18.9 g and the sample standard deviation is 26.4 g. For answering the questions (a) and (b) below, assume that the sample variance of LVM change in this pilot study is the true variance of LVM change in the population.(a). If the expected increase in LVM is 10 g, what is the power of such a study if a two-sided test is to be used with α = 0.05? (b). Since this is a pilot study, the main question of interest is how many subjects would be needed to detect an increase of 10 g in mean LVM over 4 years using a two-sided test with α = 0.05 and power = 80%? Suppose the researchers also want to get an idea of the true population variance σ 2 of LVM change in children over a 4-year period based on the pilot data. (c). Perform a hypothesis test to assess whether σ 2 is significantly different from 300. Use both critical-value and p-value methods. (d). Find a 95% confidence interval (CI) of σ 2 . Is the result consistent with that of (c)? Justify your answer.
Answer:
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Assume that in a traditional costing system that all the indirect costs are allocated based on direct materials. Calculate the dollar amount of packaging costs that is allocated under the traditional costing system to the following cost objects 1) fresh bakery goods, 2) snack cakes, and 3) frozen bakery goods.
Answer:
The question is missing the direct and indirect costs, however I will let you know how to calculate.
The costs will be given total for material, labor and overheads, along with this data a ratio in the form of a percentage will also be given for example material used in preparation of fresh bakery goods.
The amount of material will be multiplied by the percentage of material used in preparation of fresh bakery goods, the result amount will be the cost incurred for material used for the preparation of fresh bakery goods.
Explanation:
The question is missing the direct and indirect costs, however I will let you know how to calculate.
The costs will be given total for material, labor and overheads, along with this data a ratio in the form of a percentage will also be given for example material used in preparation of fresh bakery goods.
The amount of material will be multiplied by the percentage of material used in preparation of fresh bakery goods, the result amount will be the cost incurred for material used for the preparation of fresh bakery goods.
Follow this for all the cost heads provided.
The Monster Truck operates several specialty vehicles that provide hot food and beverages for firms that have workers employed in outlying regions. The company has annual sales of $626,600. Cost of goods sold average 36 percent of sales and the profit margin is 4.9 percent. The average accounts receivable balance is $35,100. On average, how long does it take the company to collect payment for its services
Answer:
20.45 days
Explanation:
Calculation for how long does it take the company to collect payment for its services
Days in receivables = 365 days/($626,600/$35,100)
Days in receivables = 365 days/17.85
Days in receivables=20.45 days
Therefore how long does it take the company to collect payment for its services is 20.45 days
While ________ are things a firm has to work with, such as equipment, facilities, raw materials, employees, and cash, _____ are things a firm can do, such as deliver good customer service or develop innovative products to create value.
Answer:
resources; capabilities.
Explanation:
While resources are things a firm has to work with, such as equipment, facilities, raw materials, employees, and cash, capabilities are things a firm can do, such as deliver good customer service or develop innovative products to create value.
Generally, in order to be able to manufacture goods or provide services that meet the needs of various customers (end users), all companies or industries have to make use of resources. These resources are either sourced for on a regular basis or gotten at the inception of the business.
Also, the capabilities of a business firm or company is its ability to provide finished goods and services that meet the requirements or needs of the end users (consumers), as well as effectively solve unique problems in the world.
What is the modified duration of a four-year bond with annual 10% coupons and a 10% yield to maturity?
Answer:
the formula to calculate modified duration of bonds:
modified duration = [1 - (1 + y)⁻ⁿ] / y
modified duration = [1 - (1 + 10%)⁻⁴] / 10% = 0.317 / 10% = 3.17 years
if you want to determine the Macaulay duration = modified duration x (1 + yield) = 3.17 years x 1.1 = 3.49 years
The modified duration shows how a bond's value can change as a result of a change in the interest rate.
Piedmont Company's gross salaries and wages are $32,000, and it withholds $4,800 for income taxes and $2,448 for FICA taxes, the journal entry to record the employees' pay should include a:
Answer: d. credit to Salaries and Wages Payable for $24,752.
Explanation:
Salaries and Wages payable are calculated by deducting taxes from the gross salaries and wages.
= 32,000 - 4,800 - 2,448
= $24,752
Salaries and Wages Payable will be credited $24,752 to reflect that this amount is owed to employees.
The twelve Federal Reserve banks are involved in monetary policy in several ways including the following except​:_________
a. issuing currency.
b. voting on the purchase and sale of government securities that affect both interest rates and the amount of reserves in the banking system.
c. being the final authority for the discount rate.
d. deciding which banks can obtain discount loans.
Answer:
B
Explanation:
The twelve Federal Reserve banks are involved in monetary policy in several ways including the following except voting on the purchase and sale of government securities that affect both interest rates and the amount of reserves in the banking system.
why profit is maximized when MR=MC?
Answer:
Explanation written attached.
Explanation:
please give thanks, hope this helps
On January 1, 20X6, Pepper Corporation issued 10-year bonds at par to unrelated parties. The bonds have a 10% stated rate, face value of $300,000, and pay interest every June 30 and December 31. On December 31, 20X9, Salt Corporation purchased all of Pepper's bonds in the open market at a $6,000 discount. Salt is Pepper's 80 percent owned subsidiary. Salt uses the effective interest method of amortization. The consolidated income statement for the year 20X9 should report with respect to the bonds: I. interest expense of $30,000. II. a gain of $6,000.
Answer:
I. interest expense of $30,000
Explanation:
Since in the question it is mentioned that the face value is $300,000 and the rate of interest is 10%
So, the interest expense is
= $300,000 × 10%
= $30,000
Now the same would be presented in the consolidated income statement
Hence, the correct option is I
Also the gain would not be considered
According to the Taylor rule, if inflation is 9% and the GDP gap is 4%, what is the recommendation for the federal funds rate target?
Answer: 16.5%
Explanation:
The Taylor Rule suggests that the Federal reserve should raise the fed funds rate if inflation rates are above the targeted rates and/ or if GDP is growing at a higher rate than it potentially should.
The rate is calculated as;
Federal funds rate target = (1.5 * Inflation rate) + (0.5 * GDP gap) + 1
= (1.5 * 9%) + (0.5 * 4%) + 1%
= 13.5% + 2% + 1
= 16.5%
