Answer and Explanation:
The computation of the unit price is shown below:
The First one is 20 ounce i.e. for 1.50 dollars.
Therefore for one ounce is
= 1.50 ÷ 20
= 0.075 dollars
The Second one is 24 ounce i.e. for 1.75 dollars.
Therefore for one ounce is
= 1.75 ÷ 24
= 0.0729 dollars
Thus, the second one is cheaper i.e. best buy
A Market share is usually stated as a
Answer:
stock
Explanation:
a stock is a a share of a company
All infrastructure is underground.
A. True
B. False
All infrastructure is underground. This is a false statement because infrastructure can not be underground.
What is Infrastructure?Roads, communications, transportation hubs, businesses, bridges, dams, power, medical facilities, and educational institutions make up the infrastructure.
Infrastructure is referred to as the fundamental physical framework of an organization, region, or country. It frequently pertains to the creation of public goods or industrial activities. Transportation, communication, sewage, water, and educational infrastructure are a few examples.
The two primary categories of infrastructure investments are as follows: Social infrastructure consists of institutions including hospitals, affordable housing, and schools. Infrastructure for the economy, including power, sewage, water, airports, and highways.
Therefore, The statement is false.
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Uri would like to change the font color in a group of cells. In which part of the Excel window should he look for font color
controls?
the Quick Access toolbar
the ribbon
the worksheet
the formula bar
Answer:
B the Ribbon
Explanation:
The Ribbon is where you can change the font color
Evaluate the impact that the Total quality management elements have on woolworths, as a large company and provide practical examples to support your findings
The elements of total quality management in a large company like Woolworths is the creation of value in the micro and macro environment.
How does total quality management impact the business?Total quality management is a method that assists in the continuous improvement of processes, through a strategy of monitoring, controlling and reviewing processes to reduce bottlenecks and maximize quality.
Therefore, in a supermarket chain like Woolworths, total quality management can increase employee and consumer satisfaction, increasing the company's positioning and competitive advantage.
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Cincinnati t-shirts prints custom t-shirts. The cost to produce one shirt is: direct materials, $10; direct labor, $1.20; and manufacturing overhead $4.50. Cincinnati Children’s Hospital asked Cincinnati t-shirt to sell them custom t-shirts for $12 each for a local charity event. Direct material and direct labor are required for each t-shirt. Of the manufacturing overhead, $1.50 is variable and would be incurred on each additional unit. The remaining $3 in overhead is allocated fixed overhead that would not be increased or decreased by this order. What would be the effect on net income if they accept this special order and sell 200 shirts to Cincinnati Children’s Hospital for $12 each?
Answer:
Effect on income= $140 decrease
Explanation:
Giving the following formula:
Production costs:
Direct material= 10
Direct labor= 1.2
Variable overhead= $1.5
Selling price= $12
Number of units= 200
Because it is a special offer and there is unused capacity, we will not take into account the fixed costs.
Effect on income= Units sold*unitary contribution margin
Effect on income= 200*(12 - 10 - 1.2 - 1.5)
Effect on income= $140 decrease
The Montgomerys borrowed $107,000 at 7.50% for 30 years to purchase a house. Find the total interest the Montomerys will pay if they pay the loan on schedule. Click the icon to view the monthly payment of principal and interest table. OA. $162,254.80 OB. $149, 158.00 OC. $177,662.80 OD. $168,803.20
The total interest the Montgomerys will pay if they pay the loan on schedule is approximately $163,072.
To find the total interest the Montgomerys will pay over the course of the loan, we can calculate the monthly payment and then subtract the principal borrowed.
First, we need to calculate the monthly payment using the loan amount, interest rate, and loan term. We can use the formula for calculating the monthly payment on an amortizing loan:
Monthly payment =\(P * r * (1 + r)^n / ((1 + r)^n - 1)\)
Where:
P = Principal amount borrowed = $107,000
r = Monthly interest rate = Annual interest rate / 12 = 7.50% / 12 = 0.625%
n = Total number of payments = 30 years * 12 months/year = 360 months
Plugging in the values, we have:
Monthly payment = $107,000 * 0.00625 * (1 + 0.00625)^360 / ((1 + 0.00625)^360 - 1)
≈ $750.20
The monthly payment of principal and interest is approximately $750.20.
To find the total interest paid, we can multiply the monthly payment by the total number of payments and subtract the principal borrowed:
Total interest paid = (Monthly payment * Total number of payments) - Principal borrowed
= ($750.20 * 360) - $107,000
≈ $270,072 - $107,000
≈ $163,072
Therefore, the total interest the Montgomerys will pay if they pay the loan on schedule is approximately $163,072.
None of the provided answer options match the calculated value. However, based on the calculation, the closest option is OA. $162,254.80.
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Can someone help me with this
Answer:
Is it account? or business?
Explanation:
Is it account or business??
what are the three economic questions everyone must answer
Answer:
the three important economic questions are
1 - What are goods and services?
2-How should these goods and services be produced?
3-Who consumes these goods and services?
What is the purpose of every item in the SHARKS mnemonic?
The purpose of every item in the SHARKS mnemonic is:
S – state the agenda before you start your meeting;
H – hijackers will be at your meeting, so watch out;
A - adding relevant information is the key to a good meeting;
R – repeat the agenda at the end of the meeting;
K - keep the meeting small and short;
S - scheduling should be outside the meeting.
What is the significance of a mnemonic?A mnemonic can be referred to or considered as a tool of the English language wherein the initial letters of a concept are used to easily memorize the concept effectively.
In the given condition above, the mnemonic of SHARK is used as an effective memory tool for memorizing the purpose behind each initial in a meeting of intelligence department.
Therefore, the significance regarding mnemonic is aforementioned.
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Distinguish non-payment of debt versus non-payment of tax in terms of consequences.
The key difference between refusal to pay taxes and the refusal to pay debts is that taxes are monies owed to the government while debts are monies owed to an individual or a business.
What are the Differences between Tax and Debt Payment?When a person refuses to pay tax, they are penalized and in some cases can have their physical assets and even monies seized. In extreme cases, the person may be sent to jail.
The consequences of non-payment of debts how usually do not to to the extent of being sent to jail.
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John feels that he owns an insignificant percentage of shares and he wants to sell his shares what otherwise would you offer him provide three points
If John purchased a minor share, he must replace it with other potentially profitable options.
What options does he have?There are several ways to invest in the financial market. The first is to buy a bond, also known as a fixed income security, in which he will receive interest along with the principal at maturity.
Second, he can analyse the market and find the best or most profitable share at the time, and then invest in that share to profit in the future.
He can also go to the option market, where he can pay a small amount of money as a premium or give the person the right to buy or sell the share in the future.
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A firm has an average total cost of $50. If it sells 20 units of its product at $80 each, what is its profit?
A company started the year with the following: Assets $107,000; Liabilities $37,000;
Common Stock $67,000; Retained Earnings $3,000.
During the year, the company earned revenue of $5,700, all of which was received in cash, and incurred expenses of $3,350, all of which were unpaid as of the end of the year. In addition, the company paid dividends of $1,700 to owners. Assume no other activities occurred during the year.
The assumption of no other activities occurring during the year means that no new equity was raised, no new liabilities were incurred, and no assets were sold or disposed of, among other things.
To calculate the ending balance of Assets, Liabilities, Common Stock, and Retained Earnings, we can start by using the equation for stockholders' equity:
Stockholders' Equity = Assets - Liabilities
At the beginning of the year, the company's Stockholders' Equity was:
Stockholders' Equity = $107,000 - $37,000 = $70,000
Next, we need to calculate the change in Retained Earnings for the year. Retained Earnings can be calculated as follows:
Retained Earnings = Beginning Retained Earnings + Net Income - Dividends
Where Net Income is calculated as:
Net Income = Revenue - Expenses
Plugging in the numbers, we have:
Retained Earnings = $3,000 + ($5,700 - $3,350) - $1,700 = $2,650
So the ending balance of Retained Earnings is $2,650.
Finally, we can calculate the ending balance of Assets, Liabilities, and Common Stock using the following equation:
Assets = Liabilities + Stockholders' Equity
Plugging in the numbers, we have:
Assets = $37,000 + ($67,000 + $2,650) = $107,650
So the ending balance of Assets is $107,650.
Liabilities remain unchanged at $37,000.
Common Stock remains unchanged at $67,000.
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Fewer and fewer customers have been coming into the restaurants. The building manager decides to change the entire menu after he does those he finds out that people love the food, but the service has been driving people away. This represents what kind of problem in the decision making process.
This illustrates the issue of inadequate option development in the decision-making process.
What is the process for making decisions?Selecting, gathering data, and appraising feasible possibilities are all phases in the decision-making process. If you gather essential information and present your options in a step-by-step manner, you may be able to make more thoughtful decisions.
What prevents people from making decisions?Anxiety may also contribute to indecision. Some people lose motivation because they worry about making the incorrect decision, suffering the consequences, or feeling regret. It's common to be concerned about making a mistake and to feel guilty, irresponsible, exposed, or ignorant. A person can occasionally become paralyzed by the fear of hurting or alienating another person.
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The person that most often interact with a customer before and after a purchase has been made in a called a
Answer:
The person that most often interact with a customer before and after a purchase has been made in a called a Salesman
Answer:
Im pretty sure its a salesman
Explanation:
Which of the following situations involves
professional literature?
An employee borrows an industry magazine
to read a story about a new machine in his
department.
An employee is coached by a supervisor on
a new machine in his department.
An employee takes an online course about a
new machine in his department.
Answer:
An employee borrows an industry magazine
to read a story about a new machine in his
department.
Explanation:
Solvency refers to: A. long-term ability to generate sufficient cash to satisfy plant capacity needs, fuel growth, and to repay debt when due. B. short-term ability to fund the company's operating needs. C. long-term ability to generate cash to for plant capacity needs and to fuel growth. D. the company's ability to generate sufficient cash to repay debt when due.
Answer:
A. long-term ability to generate sufficient cash to satisfy plant capacity needs, fuel growth, and to repay debt when due.
Explanation:
Solvency is defined as the long-term ability of a business the generate enough cash flow that will allow it to continue its operations and also to pay of its debt when due.
It is used as a measure of the financial health of the business.
A business with good solvency has a high probability of remaining in operation for the foreseeable future.
1. What amount of revenue would be included in Adger’s flexible budget for May?
2. What amount of employee salaries and wages would be included in Adger’s flexible budget for May?
3. What amount of travel expenses would be included in Adger’s flexible budget for May?
4. What amount of other expenses would be included in Adger’s flexible budget for May?
5. What net operating income would appear in Adger’s flexible budget for May?
6. What is Adger’s revenue variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
7. What is Adger’s employee salaries and wages spending variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
8. What is Adger’s travel expenses spending variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
9. What is Adger’s other expenses spending variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
10. What amount of revenue would be included in Adger’s planning budget for May?
11. What amount of employee salaries and wages would be included in Adger’s planning budget for May?
12. What amount of travel expenses would be included in Adger’s planning budget for May?
13. What amount of other expenses would be included in Adger’s planning budget for May?
14. What activity variance would Adger report in May with respect to its revenue? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
15. What activity variances would Adger report with respect to each of its expenses for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
- Employee Salaries and Wages: ___________
- Travel Expenses: __________
- Other Expenses: __________
1. The amount of revenue included in Adger's flexible budget for May is $236,000.
2. The amount of employee salaries and wages included in Adger's flexible budget for May is $118,000.
3. The amount of travel expenses included in Adger's flexible budget for May is $23,200.
4. The amount of other expenses included in Adger's flexible budget for May is $45,000.
5. The net operating income that would appear in Adger's flexible budget for May is $49,800.
6. Adger's revenue variance for May is $11,000 F.
7. Adger's employee salaries and wages spending variance for May is $4,700 U.
8. Adger's travel expenses spending variance for May is $600 F.
9. Adger's other expenses spending variance for May is $2,500 F.
10. The amount of revenue included in Adger's planning budget for May is $205,500.
11. The amount of employee salaries and wages included in Adger's planning budget for May is $111,500.
12. The amount of travel expenses included in Adger's planning budget for May is $20,300.
13. The amount of other expenses included in Adger's planning budget for May is $45,000.
14. The activity variance Adger would report in May with respect to revenue is $30,500 U.
15. The activity variances Adger would report in May with respect to each expense are:
Employee Salaries and Wages: $6,500 U
Travel Expenses: $2,900 U
Other Expenses: $0 None.
What are the Planning and Flexible Budgets?The planning budget is static and budgeted costs and revenues do not change with the level of production or activity.
The flexible budget is not static and the budget flexes with the activity level.
Fixed Per Variable Planning Flexible Actual Activity
Month Customer Budget Budget Results Variances
Number of customers 35 40
Revenue $5,900 $205,500 $236,000 $216,500 $30,500 U
Salaries
& Wages $66,000 $1,300 $111,500 $118,000 $116,200 $6,500 U
Travel Expenses $580 $20,300 $23,200 $19,700 $2,900 U
Other
Expenses $45,000 $45,000 $45,000 $42,500 $0 None
Net operating income $28,700 $49,800 $38,100 $21,100
Fixed Per Variable Planning Flexible Actual Spending
Month Customer Budget Budget Results Variances
Number of customers 35 40
Revenue $5,900 $205,500 $236,000 $216,500 $11,000 F
Salaries
& Wages $66,000 $1,300 $111,500 $118,000 $116,200 $4,700 U
Travel Expenses $580 $20,300 $23,200 $19,700 $600 F
Other
Expenses $45,000 $45,000 $45,000 $42,500 $2,500 F
Net operating income $28,700 $49,800 $38,100 $9,400 F
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Review the following choices, then choose the only response that does NOT describe a due diligence requirement for an individual who is paid to prepare returns for taxpayers claiming the head of household filing status and/or one or more of the following credits: the Earned Income Tax Credit, the American Opportunity Tax Credit, the Child Tax Credit/Additional Child Tax Credit, and the Other Dependent Credit.
A. Brynn (16) a full-time high school student. The taxpayer is her 22 year old sister
B. Maeve (23) a full-time student. The taxpayer is her 68 year old grandmother
C. Noah (24) a full-time student. The taxpayer is his 22 year old brother
D. Yasmine (33) who is totally and permanently disabled. The taxpayer is her 30 year old brother
The response that does not describe a due diligence requirement for an individual who is paid to prepare returns for taxpayers claiming the head of household filing status and/or one or more of the following credits is D. Yasmine (33) who is totally and permanently disabled. The taxpayer is her 30 year old brother.
What is returns for taxpayers ?A tax return can be described as the documentation that is been filed along with the tax authority . It should be noted that this help to give the reports of the income as well as the expenses that regards the financial information.
As regards to the case above, where there is no due diligence requirement for an individual as described we can see tin the case of Yasmine with the total disability.
In conclusion, on the tax returns, the tax liability ca be estimated by the payers with the schedule tax payments. Therefore, option D is correct.
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100 pts
The table identifies how many thousands of units of corn and diamonds the United States and Congo can produce in one week. Use this data to answer the question that follows.
Corn
Diamonds
United States
60
10
Congo
20
5
Which statement is true based on the data table?
The United States should specialize in diamonds and trade for corn.
The United States should specialize in corn and trade for diamonds.
Congo should specialize in corn and trade for diamonds.
Congo should specialize in both corn and in diamonds.
Answer:
In view of the units of corn and precious stones delivered by the US, the open-door cost of creating corn is B. 10⁄60.
What is the open-door cost of delivering corn?
The open-door cost of delivering corn to the US would be the number of precious stones that are surrendered to make one unit of corn.
This can be found as:
= Units of jewels/Units of corn
= 10/60 jewels
All in all, choice B is right.
Answer:
B) The United States should specialize in corn and trade for diamonds.
Explanation:
I got it right on the test
Search the library and the Internet for information pertaining to the ethical violation made by an organization, past or present, and be sure not to identify the organization. See if this incident has occurred in other organizations; give 2 examples and their outcomes. (OWN WORDS)
Legitimizations that are Substantial for the Association's Activities Business ethics issues length a great many subjects inside an association's ethical rules. Straightforward moral issues in business include empowering conduct that depends on genuineness and trust, however more complicated issues include obliging variety, humane navigation, consistence, and administration that is reliable with the association's fundamental standards.
Business ethics, typically alluded to as corporate morals, is a subset of applied morals or expert morals that resolves moral or moral issues that might come up in the work environment.
It is critical to the activities of the two individuals and whole organizations and is relevant to all features of business behavior.
People, authoritative declarations, or the overall set of laws all add genuineness to these morals.
These guidelines, goals, moral convictions, and untrustworthy conduct act as an organization' core values.
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6. The company paid $900 cash toward accounts payable.
do you have any clue some story do that question has a story sorry for the disturb but this is compusing
selected transactions for sandhill corporation during its first month in business are presented below
Answer:
I'm sorry, but I cannot provide an answer to your question as there is no further context or information on what you are looking for regarding the "selected transactions for Sandhill Corporation." Can you please provide more details or clarify your question?
On December 18, 2017, Stephanie Corporation acquired 100 percent of a Swiss company for 4.0 million Swiss francs (CHF), which is indicative of book and fair value. At the acquisition date, the exchange rate was $1.00 = CHF 1. On December 18, 2017, the book and fair values of the subsidiary’s assets and liabilities were:
Cash CHF 814,000
Inventory 1,314,000
Property, plant & equipment 4,014,000
Notes payable 2,128,000
Stephanie prepares consolidated financial statements on December 31, 2017. By that date, the Swiss franc has appreciated to $1.10 = CHF 1. Because of the year-end holidays, no transactions took place prior to consolidation.
Required:
a. Determine the translation adjustment to be reported on Stephanie’s December 31, 2017, consolidated balance sheet, assuming that the Swiss franc is the Swiss subsidiary’s functional currency. What is the economic relevance of this translation adjustment?
b. Determine the remeasurement gain or loss to be reported in Stephanie’s 2017 consolidated net income, assuming that the U.S. dollar is the functional currency. What is the economic relevance of this remeasurement gain or loss?
Answer:
a. Translation adjustment = $401,400
b. Remeasurement loss = –$131,400
Explanation:
a. Determine the translation adjustment to be reported on Stephanie’s December 31, 2017, consolidated balance sheet, assuming that the Swiss franc is the Swiss subsidiary’s functional currency. What is the economic relevance of this translation adjustment?
This can determined as follows:
Step 1: Calculation of beginning net asset in
Particular Amount (CHF)
Cash CHF 814,000
Inventory 1,314,000
Property, plant & equipment 4,014,000
Notes payable (2,128,000)
Beginning net asset 4,014,000
Beginning net asset in USD = Beginning net asset in Swiss francs (CHF) * Beginning exchange rate = CHF4.014,000 * $1 = $4,014,000
Step 2: Calculation of ending net asset
Ending net asset in USD = Beginning net asset in Swiss francs (CHF) * Ending exchange rate = CHF4.014,000 * $1.10 = $4,415,400
Step 3: Calculation translation adjustment
Translation adjustment = Ending net asset in USD - Beginning net asset in USD = $4,415,400 - $4,014,000 = $401,400
Economic relevance of this translation adjustment
The positive translation adjustment implies that the equity of stockholders has increased by $401,000.
We obtained a positive value because the net position of the subsidiary in Switzerland is CHF4,014,000 and there was a Swiss franc appreciation of $0.10 (i.e. $1.10 - $1.00 = $0.10).
The translation adjustment of $401,000 does not however implies that it was made as a dollar cash flow. The only condition that can make to turn to a profit is if this operation is sold at CHF4,014,000 on December 31 and the amount realized as a proceed is changed to dollars at ruling exchange rate of $1.10 to a Swiss franc on December 31, 2017.
b. Determine the remeasurement gain or loss to be reported in Stephanie’s 2017 consolidated net income, assuming that the U.S. dollar is the functional currency. What is the economic relevance of this remeasurement gain or loss?
This can be determined as follows:
Beginning net liabilities in Swiss franc = Cash - Note payable = CHF814,000 - CHF2,128,000 = –CHF1,314,000
Beginning net liabilities in USD = Beginning net liabilities in Swiss franc * Beginning exchange rate = –CHF1,314,000 * $1.00 = –$1,314,000
Ending net liabilities in USD = Beginning net liabilities in Swiss franc * Ending exchange rate = –CHF1,314,000 * $1.10 = –$1,445,400
Remeasurement loss = Ending net liabilities in USD – Beginning net liabilities in USD = [–$1,445,400] – [–$1,314,000] = –$131,400
Economic relevance of this remeasurement gain or loss
There is a negative remeasurement or remeasurement lost because the net monetary liability position of the Swiss subsidiary is CHF 1,314,000. The appreciation of the Swiss franc by $0.10 results in a loss of $131,400] that not is unrealized.
The readjustment loss of $131,400 does not however implies that it was a dollar cash outflow. The only condition that can make it to turn to a loss is if this operation is sold on December 31. This will lead to the realization of a transaction gain of $81,400 [i.e. CHF814,000 x ($1.10 - $1.00)].
Also, the Swiss franc note payable will be paid off by using the US dollar. This will bring about the realization of a truncation loss of $212,800 [i.e. CHF2,128,000 x ($1.10 - $1.00)].
How important are structure and culture compared to the other primary internal considerations for a strategic plan?
Structure and culture are among the primary internal considerations for a strategic plan. The importance of structure and culture cannot be undermined, as they both play an important role in the success of a company's strategic plan. Although there are other factors that may contribute to the success of a strategic plan, structure and culture are vital. They can be used to leverage the strengths of an organization to achieve its goals.
Structure refers to how an organization is organized and the interrelationships between different departments. A company's structure determines how information flows within the organization, and how employees interact with one another.
An effective structure enables employees to work together efficiently, leading to a higher level of productivity.
Culture refers to the set of values, beliefs, and attitudes that guide the behavior of an organization's members. A positive culture promotes employee engagement, which is essential for achieving an organization's goals.
A company's culture can influence how it deals with problems, how employees communicate with each other, and how they make decisions, among other things.
In conclusion, structure and culture are essential components of an organization's strategic plan.
By investing in a positive culture and a well-defined structure, companies can increase employee engagement, productivity, and ultimately, achieve their goals.
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tax returns filed manually have a 20; which of these can be listed as benefits of filing your tax return online?; what is the difference between a tax credit and a tax deduction?; natasha has a gross income of $66 429; you have a gross income of $117 151; what is the standard deduction used for?; who should fill out the w-2 form?; brian is calculating his tax deductions
The entire question mentions Tax and its conceptions.
1) The benefits of filling tax include: allowing for greater accuracy when filing and allows for faster receipt of any refunds due
2)A duty deduction can only lower your taxable income and the duty rate that's used to calculate your duty. A duty credit reduces your duty giving you a larger refund of your withholding, but certain duty credits can give you a refund verily if you have no withholding.
3) The standard deduction is a specific dollar amount that reduces the amount of income on which you're taxed.
4) An employer.
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A buyer agrees to purchase a house for $234,500. The buyer pays $2,000 as earnest money and obtains a new mortgage loan for $167,500. The purchase contract provides for a March 15 settlement. The buyer and the sellers prorate the previous year's real estate taxes of $4,880.96, which have been prepaid. The buyer has additional closing costs of $2,250, and the sellers have other closing costs of $1,850. How much cash must the buyer bring to the settlement?
The cash that the buyer must bring to the settlement after paying the earnest money is $72,130.96.
What is earnest money?Earnest money is a good faith deposit that the buyer makes to assure the seller about a buyer's good faith to buy a property. The earnest money enables the buyer to arrange for the purchase financing.
Data and Calculations:House price = $234,500
Earnest money paid = (2,000)
Mortgage loan = (167,500)
Real estate taxes = 4,880.96
Additional closing costs 2,250
Total cash on settlement = $72,130.96
Thus, the cash that the buyer must bring to the settlement is $72,130.96.
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Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.31 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $1,785,000 in annual sales, with costs of $695,000. The tax rate is 25 percent and the required return on the project is 12 percent. What is the project’s NPV? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, and round your answer to 2 decimal places, e.g., 1,234,567.89.)
Answer:
$115,849.581
Explanation:
For computing the net present value first we have to do following calculations
Annual depreciation expense is
= (Cost - Salvage value) ÷ Useful life
= ($2.31 million ÷ 3)
= $770,000
Now
Annual Operating cash flow = (Sales - Costs) × (1 - tax rate) + Tax savings on Annual depreciation
= ($1,785,000 - $695,000) × (1 - 0.25) + (0.25 × $770,000)
= $817,500 + $192,500
= $1,010,000
Now Present value of annuity is
= Annuity × [1 - (1 + interest rate)^ -time period] ÷ rate
= $1,010,000 × {1 - (1.12)^-3] ÷ 0.12
= $1,010,000 × 2.401831268
= $2,425,849.581
So, Net present value is
= Present value of inflows - Present value of outflows
= $2,425,849.581 - $2,310,000
= $115,849.581
Ticket prices to a Kanye West concert increase from $40 to $60. As a result, ticket sales decrease from 50,000 to 40,000. The elasticity of demand for Kanye West tickets equals ________ and demand is ________.
Answer:
.4
Inelastic
Explanation:
Elasticity of Demand = |%Change in Demand / %Change in Price|
%Change in Demand= |(40,000 - 50,000)/50,000| = 20%
%Change in Price = |(60 - 40)/40| = 50%
Elasticity of Demand = .2/.5 = .4 or 40%
.4 < 1 so Demand is Inelastic
Ticket prices to a Kanye West concert increase from $40 to $60. As a result, ticket sales decrease from 50,000 to 40,000. The elasticity of demand for Kanye West tickets equals .40 and demand is inelastic.
What makes a product inelastic?The term "inelastic" refers to the static quantity of an item or service while its price fluctuates. Inelastic demand suggests that as prices rise, customers' purchasing habits remain relatively unchanged, and when prices fall, consumers' purchasing habits likewise remain relatively unchanged.
Given
Old Price =$40
New Price = $60
Old Quantity =50,000
New Quantity = 40,000
Required to calculate the elasticity of demand =?
the elasticity of demand = % change in Quantity divide % change in price
% change in Quantity = 50000 - 40000 / 50,0000 = 20%
% change in price = 40 - 60 / 40 = 50%
the elasticity of demand = 20 / 50 = 0.40
The percentage change in quantity demanded divided by the percentage change in price yields the price elasticity of demand. The demand is deemed elastic if the quotient is larger than or equal to one. Demand is termed inelastic if the value is less than one. The elasticity of demand for Kanye West tickets equals .40 and demand is inelastic.
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Tony and Suzie are ready to expand Great Adventures even further in 2022. Tony believes that many groups in the community (for example, Boy Scouts, church groups, civic groups, and local businesses) would like to hold one-day outings for their members. Groups would engage in outdoor activities such as rock climbing, fishing, capture the flag, paintball, treasure hunts, scavenger hunts, nature hikes, and so on. The purpose of these one-day events would be for each member of the group to learn the importance of TEAM (Together Everyone Achieves More).
Tony knows that most people are not familiar with these types of activities, so to encourage business he allows groups to participate in the event before paying. He offers a 4% quick-payment discount to those that pay within 10 days after the event. He also guarantees that at least eight hours of outdoor activities will be provided or the customer will receive a 20% discount. For the first six months of the year, the following activities occur for TEAM operations.
Jan. 24 Great Adventures purchases outdoor gear such as ropes, helmets, harnesses, compasses, and other miscellaneous equipment for $6,000 cash.
Feb. 25 Mr. Kendall’s Boy Scout troop participates in a one-day TEAM adventure. Normally, Tony would charge a group of this size $4,500, but he wants to encourage kids to exercise more and enjoy the outdoors so he charges the group only $4,000. Great Adventures provides these services on account.
Feb. 28 The Boy Scout troop pays the full amount owed, less the 4% quick-payment discount.
Mar. 19 Reynold’s Management has its employees participate in a one-day TEAM adventure. Great Adventures provides services on account for $5,000, and Reynold’s agrees to pay within 30 days.
Mar. 27 Reynold’s pays the full amount owed, less the 4% quick-payment discount.
Apr. 7 Several men from the Elks Lodge decide to participate in a TEAM adventure. They pay $8,500, and the event is scheduled for the following week.
Apr. 14 The TEAM adventure is held for members of the Elks Lodge.
Apr. 30 Myers Manufacturing participates in a TEAM adventure. Great Adventures provides services on account for $7,000, and Myers agrees to pay within 30 days.
May 31 Myers Manufacturing fails to pay the amount owed within the specified period and agrees to sign a three-month, 7% note receivable to replace the existing account receivable.
Jun. 15 Several MBA groups participate in TEAM adventures. Great Adventures provides services on account for $29,000 to these groups, with payment due in July.
Required:
a. Record adjusting entry for uncollectible accounts.
b. Record the accrued interest revenue.
If on Jan. 24 Great Adventures purchases outdoor gear such as ropes, helmets, harnesses, compasses, and other miscellaneous equipment for $6,000 cash. The adjusting entry for uncollectible accounts and the accrued interest revenue are:
a. The adjusting entry for uncollectible accounts are:
Jan. 24, 2022
Debit Equipment $6,000
Credit Cash $ 6,000
(To record purchase of equipment and other materials)
Feb. 25
Debit Account Receivable $4,000
Credit Service Revenue $4,000
(To record service revenue on account)
Feb. 28
Debit Cash $3,840
($4,000-$160)
Debit Cash Discount $160
(4%×$4,000)
Credit Account Receivable $4,000
(To record cash receipt and discount)
Mar. 19
Debit Account Receivable $5,000
Credit Service Revenue $5,000
(To record service provided on account)
Mar. 27
Debit Cash $4,800
($5,000-$200)
Debit Cash Discount $200
(4%×$5,000)
Credit Account Receivable $5,000
(To record cash receipt and discount allowed)
April 7
Debit Cash $8,500
Credit Unearned Service Revenue $8,500
(To record cash receipt for providing service in future)
April 14
Debit Unearned Service Revenue $8,500
Credit Service Revenue $8,500
(To record unearned revenue being earned)
April 30
Debit Account Receivable $7,000
Credit Service Revenue $7,000
(To record service provided on account)
May 31
Debit Note Receivable $7,000
Credit Account Receivable $7,000
(To record a 3 months, 7% Note Receivable)
Jun. 15
Debit Account Receivable $29,000
Credit Service Revenue $29,000
(To record service provided on account)
b. The journal entries to record the accrued interest revenue are:
Jun. 30
Debit Interest Receivable $40.83
Interest Revenue $40.83
($7,000×7%× 1/12)
(To record accrued interest for 1 month)
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