Answer: Edit option allows everyone in a group to edit the contents work
Explanation:
Hope it helps
1. Suppose the federal government observes a decrease in net exports. Examine this event in terms of the aggregate demand and aggregate supply model.
A. The increase in gross investment will cause____.
B. This will lead to_____in the price level and____in real GDP.
C. ____fiscal policy will be used to_____.
D. The fiscal policy actions may include_____in taxes and/or____in government purchases.
E. The goal of fiscal policy is to_____.
2. Suppose the federal government observes an increase in gross investment. Examine this event in terms of the aggregate demand and aggregate supply model.
A. The decrease in net exports will cause_____.
B. This will lead to_____in the price level and_____in real GDP.
C. _____fiscal policy will be used to_____.
D. The fiscal policy actions may include_____in taxes and/or_____in government purchases.
3. In which instance would "crowding out" likely become a concern?
A. A balanced budget law prevents the government from taking fiscal action during a recession.
B. Prior-year budget surpluses allow the government to use saved funds to reduce taxes.
C. In order to increase spending on infrastructure, the federal government decides to borrow funds.
4. What becomes more difficult if "crowding out" occurs due to fiscal action?
A. Purchasing stocks and other financial investments.
B. Making economic investments.
C. Saving income for future purchases.
Answer:
1. a. The decrease in net exports will cause a decrease in aggregate demand.
b. This will lead to a decrease in the price level and a decrease in real GDP.
c. Expansionary fiscal policy will be used to reduce unemployment.
d. The fiscal policy actions may include a decrease in taxes and/or an increase in government purchases.
e. The goal of fiscal policy is to smooth out business cycles.
__________________________________________________________
2. a. The increase in gross investment will cause an increase in aggregate demand.
b. This will lead to an increase in the price level an increase in real GDP.
c. Contractionary fiscal policy will be used to reduce inflation..
d. The fiscal policy actions may include an increase in taxes and/or a decrease in government purchases.
e. The goal of fiscal policy is to smooth out business cycles.
__________________________________________________________
3. C. In order to increase spending on infrastructure, the federal government decides to borrow funds.
Crowding out occurs when the government borrows a significant amount of loanable funds such that interest rates rise and private firms are unable to afford the new rates so borrow less.
__________________________________________________________
4. B. Making economic investments.
With private firms unable to borrow much in a crowding out scenario, they will be unable to use those funds to invest in the economy.
Suppose the residents of Vegopia spend all their income on cauliflower, broccoli, and carrots. In 2016, they buy 100 heads of cauliflower for $200, 50 bunches of broccoli for $75, and 500 carrots for $50. In 2017, they buy 75 heads of cauliflower for $225, 80 bunches of broccoli for $120, and 500 carrots for $100. What will be the price of one unit of each vegetable (unit price given in the sequence cauliflower, broccoli and carrots) in 2016
Mullineaux Corporation has a target capital structure of 65 percent common stock and 35 percent debt. Its cost of equity is 12.8 percent, and the cost of debt is 7.5 percent. The relevant tax rate is 23 percent. What is the company’s WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
WACC = 10.35%
Explanation:
The weighted Average cost of Capital is the average cost of capital for the different sources of long-term capital available to a firm weighted according to the proportion that each source of finance bears to the total capital in the pool..
After-tax cost of debt = (1- tax rate) × before tax cost of debt
= (1-0.23)× 7.5% = 5.8%
Type Cost (%) Weight cost × weight
Equity 12.8 65% 8.32
Debt 5.8 35% 2.03
Total 10.3
WACC = 10.35%
The following data were accumulated for use in reconciling the bank account of Wolfpack Bread Inc. for August 20Y9:
Cash balance according to the company's records at August 31, $34,437.
Cash balance according to the bank statement at August 31, $33,580.
Checks outstanding, $13,340.
Deposit in transit, not recorded by bank, $14,260.
A check for $276 issued in payment of an account to a supplier was erroneously recorded by Wolfpack Bread Inc. as $762.
Bank debit memo for service charges, $144.
Record the effects on the accounts and financial statements of the company based upon the information above.
If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank.
Enter account decreases and cash outflows as negative amounts.
Increase in Cash Balance Sheet Assets Liabilities + Stockholders' Equity Aug. 31.
Statement of Cash Flows Income Statement < Decrease in Cash Balance Sheet Assets Liabilities + Stockholders' Equity Aug. 31.
Statement of Cash Flows Income Statement
Answer:
Adjusted bank account balance = Adjusted cash book balance = $34,500
Explanation:
Note: The correct requirement of this question is actually as follows:
Prepare a bank reconciliation.
It is not the ones erroneously stated in the question.
The bank reconciliation can now be prepared as follows:
Wolfpack Bread Inc.
Bank Reconciliation
August 31, 20Y9
Statement of Adjusted Bank Account Balance
Details Amount ($)
Cash balance according to bank statement 33,580
Add:
Deposit in transit, not recorded by bank 14,260
Less:
Checks outstanding (13,340)
Adjusted bank account balance 34,500
Statement of Adjusted Cash Book Balance
Details Amount ($)
Cash balance according to Wolfpack 34,437
Add:
Check error ($762 - $276) 486
Less:
Bank service charges (144)
Other reconciling items (w.1) (279)
Adjusted cash book balance 34,500
Working:
w.1: Other reconciling items = Cash balance according to Wolfpack + Check error ($762 - $276) - Bank service charges - Adjusted bank account balance = $34,437 + 486 - 144 - $34,500 = $279
how long will it take a nitrogen dioxide molecule to travel 25m at stp?
Answer:
Explanation:Nitrogen dioxide appears as a reddish brown gas or yellowish-brown liquid when cooled or compressed. Shipped as a liquefied gas under own vapor pressure. Vapors are heavier than air. Toxic by inhalation (vapor) and skin absorption. Noncombustible, but accelerates the burning of combustible materials. Cylinders and ton containers may not be equipped with a safety relief device.
Nitrogen oxide (NO2). A highly poisonous gas. Exposure produces inflammation of lungs that may only cause slight pain or pass unnoticed, but resulting edema several days later may cause death. (From Merck, 11th ed) It is a major atmospheric pollutant that is able to absorb UV light that does not reach the earth's surface.
Explain how the following events will affect the demand and supply curves for large SUVs. In each case explain whether the demand and supply curves will (i) move to the left; (ii) move to the right; or (iii) not move. b. The price of gasoline increases i. (3 points) How will this affect the demand curve for the good listed above
Answer:
As a result of the increase in price, it would become more expensive to own and fuel a large SUV. this would lead to a reduction in demand for large SUVs. As a result of this, the demand curve for Large SUVs would shift to the left
Explanation:
what is the difference between need and want?
answer:
wants are desires for goods and services we would like to have but do not need. needs are a special kind of want, and refer to things we must have to survive, such as food, water, and shelterexplanation:
credits: online researchYour regular selling price is $40 per unit. Costs are $28 per unit, which consists of $8 direct materials per unit, $10 direct labor per unit, $4 variable overhead per unit, and $6 fixed overhead per unit. Sales are low because of a recession. A large retail chain offered to buy 1,000 units from you at a discounted price of $28. Assume that you have enough spare capacity to fulfill this order. If you accept the special order in the short term, profit will Group of answer choices increase by $6,000 decrease by $12,000 decrease by $6,000 remain the same increase by $12,000
Answer:
Effect on income= $6,000 increase
Explanation:
Because there is an unused capacity and it is a special order, we will not take into account the fixed costs.
Effect on income= total contribution margin
Unitary variable cost= 8 + 10 + 4= $22
Effect on income= 1,000*(28 - 22)
Effect on income= $6,000 increase
Prepare the journal entries needed based on the following information: Estimated overhead for the month: $6,000 Estimated direct labor hours: 2,000 Purchased $35,000 of materials Requisitioned $10,000 of materials to be placed into production Incurred $4,000 of direct labor during the month (500 hours) Incurred the following actual factory overhead amounts: Utilities: $1,000 Indirect materials: $500 Indirect labor: $1,000 Rent: $1,500 Completed two jobs with a cost of $18,000 Sold both jobs completed at price
Sabin is an artist and maintains an office (his studio) in his home. His office occupies 8% of the total floor space of his residence. Gross income from his business is $24,000. Expenses of the business (other than home office expenses) are $5,000. Sabin incurs the following home office expenses:
Real property taxes on residence: $2,400 Interest expense on residence: $4,000 Operating expenses of residence: $2,200 Depreciation on residence (based on 8% business use): $450.
A) Assuming Sabin uses the "regular method" to compute the office in the home deduction, his deduction is ?
B) Assuming Sabin uses the "simplifed method" to computer the office in the home deduction, his deduction is?
Answer:
Sabin
Home Office Deduction:
A) Assuming Sabin uses the "regular method" to compute the office in the home deduction, his deduction is:
= $962.
B) Assuming Sabin uses the "simplified method" to computer the office in the home deduction, his deduction is:
= $1,500.
Explanation:
a) Data and Calculations:
Gross business income $24,000
Home office space = 8%
Exclusive business expenses = $5,000
Qualified home office expenses:
Real property taxes $2,400
Mortgage interest 4,000
Depreciation 5,625 ($450/8%)
Total home office expenses $12,025
Deductions (8%) 962
b) Depending on whether Sabin chooses the simplified version or the regular method, his business expenses of $5,000 are deductible in addition to the above, from his business gross income of $24,000.
Chemco Enterprises is the manufacturer of Ultra-Dry, a hydrophobic coating that will waterproof anything. Over a 5-year period, the costs associ-ated with the pilot test product line were as fol-lows: first cost of $30,000 and annual costs of $18,000. Annual revenue was $27,000 and used equipment was salvaged for $4000. What rate of return did the company make on this product
Answer:
Chemco Enterprises
The rate of return that the company made on this product is:
= 15.83%
Explanation:
a) Data and Calculations:
Project duration = 5 years
Initial Cost = $30,000
Total Annual costs = 90,000 ($18,000 * 5)
Total costs $120,000
Total Annual revenue = $135,000 ($27,000 * 5)
Salvage value = 4,000
Total revenue = $139,000
Return = $19,000 ($139,000 - $120,000)
Rate of return = $19,000/$120,000 * 100) = 15.83%
b) The rate of return compares the gain from an investment or a product with the costs of the investment. The resulting figure is then expressed as a percentage.
Scenario: Not-So-Free Freeland Freeland is a semi-closed economy whose government believes in protecting national identity and building a self-sustained economy. The government's priority is to protect local jobs and provide opportunities to Freeland's emerging industries to flourish without the threat of external competition. Freeland's efforts to provide opportunities to its emerging industries is an example of its ________.
Answer:
Economic motive.
Explanation:
An economic motive can be defined as the tendency of an investor or government to advocate and choose economic models, resources and factors of production that would positively and significantly impacts its economy.
In this scenario, Not-So-Free Freeland Freeland is a semi-closed economy whose government believes in protecting national identity and building a self-sustained economy. The government's priority is to protect local jobs and provide opportunities to Freeland's emerging industries to flourish without the threat of external competition. Freeland's efforts to provide opportunities to its emerging industries is an example of its economic motive because it would ensure that the jobs within the country is protected while creating opportunities for the company.
Yankee Express is offering qualified customers a new credit card that offers an introductory rate of .5 percent per year, compounded monthly for the first 6 months, then increasing to 17.3 percent compounded monthly. Assume you transfer a balance of $6,300 from your existing credit card to Yankee Express, and make no subsequent payments. How much credit card interest will you owe at the end of the first year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer: $582.15
Explanation:
Total amount owed in 6 months = 6,300 * ( 1 + 0.5%/12)⁶
= $6,315.77
Interest increases to 17.3%.
Amount owed at the end of the year:
= 6,315.77 * (1 + 17.3%/12)⁶
= $6,882.16
Interest owed = Amount owed end of year - Beginning balance
= 6,882.16 - 6,300
= $582.15
Which of the following is the type of notice provided by recording?
Select one:
a reasonable
b. constructive
c. protective d. actual
Answer:
b
Explanation:
Selected Financial Data
Fiscal Year 2017 2016 2015 2014 2013
(Millions, except per share amounts)
Summary of Operations
Net sales ........ $7,890 $7,961 $8,082 $8,268 $8,052
Earnings before interest and taxes ... 1,400 960 1,054 1,267 1,474
Earnings before taxes. 1,293 849 949 1,148 1,349
Earnings from continuing operations ....887 563 666 774 934
Earnings (loss) from discontinued operations 81 (231)
Net earnings . 887 563 666 855 703
Net earnings attributable to Campbell Soup Company
887 563 666 866 712
Financial Position Plant assets - net.$2,454 $2,407 $2,347 $2,318 $2,260
Total assets 7,726 7,837 8,077 8,100 8,290
Total debt 3,536 3,533 4,082 4,003 4,438
Total equity. 1,645 1,533 1,377 2,602 2,192
Per Share Data
Earnings from continuing operations attributable to Campbell Soup Company - basic
$ 2.91 $ 1.82 $ 2.13 $ 2.50 $ 3.00
Earnings from continuing operations attributable to Campbell Soup Company - assuming dilution.
2.89 1.81 2.13 2.48 2.97
Net earnings attributable to Campbell Soup Company - basic
2.91 1.82 2.13 2.76 2.27
Net earnings attributable to Campbell Soup Company - assuming dilution
2.89 1.81 2.13 2.74 2.25
Dividends declared 1.40 1.248 1.248 1.248 1.16
Other Statistics Capital expenditures .$ 338 $ 341 $ 380 $ 347 $ 336
Weighted average shares outstanding - basic.
305 309 312 314 314
Weighted average shares outstanding - assuming dilution.
307 311 313 316 317 dilution .
This problem is based on the 2017 annual report of Campbell Soup Company.
Required: Find in the Selected Financial Data or calculate, the following data:
a. Dividends per share declared in 2017.
b. Capital expenditures in 2016.
c. Year total equity grew by the greatest amount over the previous year.
d. Change in total debt from 2013 to 2017.
Find the following data for 2017 in the Notes to the Consolidated Financial Statements:
e. Amount of finished products inventory for 2017 in the Notes to the Consolidated Financial Statements.
f. The company's effective income tax rate for 2017 in the Notes to the Consolidated Financial Statements.
g. Net sales of the Global Biscuits and Snacks segment for 2017 in the Notes to the Consolidated Financial Statements. h. Market price range of common stock for the fourth quarter of 2017 in the Notes to the Consolidated Financial Statements.
Answer:
Campbell Soup Company
a. Dividends per share declared in 2017 is:
= $1.40.
b. Capital expenditure in 2016 is:
= $ 341 million.
c. Year total equity grew by the greatest amount over the previous year is 2014. It grew by 18.7%.
d. The total debt reduced by $902 million (about 20.3%) from 2013 to 2017.
Notes to the 2017 Consolidated Financial Statements:
e. Finished products inventory for 2017 is:
= $525 million
f. Effective income tax rate for 2017:
= 31.4%
g. Net Sales for the Global Biscuits and Snacks segment for 2017 is:
= $2,598 million.
h. Market price range of common stock for the fourth quarter of 2017 is:
$59.51 to $67.89
Explanation:
a) Data and Calculations:
Fiscal Year 2017 2016 2015 2014 2013
(Millions, except per share amounts)
Summary of Operations
Net sales $7,890 $7,961 $8,082 $8,268 $8,052
Earnings before interest and taxes 1,400 960 1,054 1,267 1,474
Earnings before taxes 1,293 849 949 1,148 1,349
Earnings: continuing operations 887 563 666 774 934
Earnings (loss) from discontinued operations 81 (231)
Net earnings 887 563 666 855 703
Net earnings attributable to
Campbell Soup Company 887 563 666 866 712
Financial Position:
Plant assets - net $2,454 $2,407 $2,347 $2,318 $2,260
Total assets 7,726 7,837 8,077 8,100 8,290
Total debt 3,536 3,533 4,082 4,003 4,438
Total equity 1,645 1,533 1,377 2,602 2,192
Highest Growth in equity 18.7% (2014)
Per Share Data
Earnings from continuing operations attributable to
Campbell Soup Company - basic $2.91 $1.82 $2.13 $2.50 $3.00
Earnings from continuing operations attributable to Campbell Soup
Company - assuming dilution 2.89 1.81 2.13 2.48 2.97
Net earnings attributable to Campbell
Soup Company - basic 2.91 1.82 2.13 2.76 2.27
Net earnings attributable to Campbell Soup
Company- assuming dilution 2.89 1.81 2.13 2.74 2.25
Dividends declared 1.40 1.248 1.248 1.248 1.16
Other Statistics:
Capital expenditures $ 338 $ 341 $ 380 $ 347 $ 336
Weighted average shares
outstanding - basic 305 309 312 314 314
Weighted average shares outstanding
- assuming dilution 307 311 313 316 317
Total debt in 2013 = 4,438
Total debt in 2017 = 3,536
Change = 902
Percentage change = -20.3%
Calculate the cash dividends required to be paid for each of the following preferred stock issues: Required: The semiannual dividend on 10% cumulative preferred, $44 par value, 12,900 shares authorized, issued, and outstanding. The annual dividend on $1.75 cumulative preferred, 120,000 shares authorized, 72,000 shares issued, 63,600 shares outstanding. Last year's dividend has not been paid. The quarterly dividend on 12.0% cumulative preferred, $80 stated value, $109 liquidating value, 78,000 shares authorized, 67,600 shares issued and outstanding. No dividends are in arrears.
Answer:
a. The semiannual dividend on 10% cumulative preferred, $44 par value, 12,900 shares authorized, issued, and outstanding.
Figures are annualized:
= 10% * 44 * 12,900
= $56,760
Semi-annual dividends = 56,760 / 2
= $28,380
b. The annual dividend on $1.75 cumulative preferred, 120,000 shares authorized, 72,000 shares issued, 63,600 shares outstanding. Last year's dividend has not been paid.
= Dividend per share * Shares outstanding
= 1.75 * 63,000
= $110,250
Cumulative dividends have to be paid eventually and so accumulate. If dividend was not paid last year, total dividend is:
= 110,250 * 2
= $220,500
c. The quarterly dividend on 12.0% cumulative preferred, $80 stated value, $109 liquidating value, 78,000 shares authorized, 67,600 shares issued and outstanding. No dividends are in arrears.
Dividend = Dividend rate * Stated value * Number of shares outstanding
= 12% * 80 * 67,600
= $648,960
Quarterly dividend = 648,960/4
= $162,240
Lauer Corporation uses the periodic inventory system and has provided the following information about one of its laptop computers: Date Transaction Number of Units Cost per Unit 1/1 100 $ 800 5/5 Purchase 200 $ 900 8/10 Purchase 300 $ 1,000 10/15 Purchase 200 $ 1,100 During the year, Lauer sold 750 laptop computers. What was cost of goods sold using the LIFO cost flow assumption
Answer:
$740,000
Explanation:
LIFO assumes that the recent goods bought will be sold first. The Cost of Goods Sold is then calculated on the cost of the recent goods bought.
Cost of Goods Sold = 200 x $1,100 + 300 x $1,000 + 200 x $900 + 50 x $800
= $740,000
Therefore,
Cost of goods sold using the LIFO is $740,000.
A _____ is an organization that provides online- and telephone-based services to book reservations for independent hotels.
consumer reservation system
global distribution system
hotel-representative firm
limited reservation system
Answer:
consumer reservation system
Explanation:
Dr. Yuan opens a lab. The lab has an initial cost of $100,000. Expected net cash flow is $24,000 in the first year, growing by 15% per year. Net cash flow is revenue less expenses. Assume the lab has a 6 yr life and there is no scrap value for the lab.
Later that same year, Dr. Bhat opens a similar lab in the strip mall less than two miles away from Dr. Yuan. Dr. Yuan estimates her net cash flow in the first year will be considerably less than her initial estimate. She estimates it will be $16,000. All else equal, what happens to the NPV of Dr. Yuan’s lab?
a) The NPV decreases, but is still positive. Dr. Yuan can still expect a positive return on her investment.
b) The IRR decreases, but is still positive. Dr. Yuan can still expect a positive return on her investment.
c) The IRR decreases, and becomes negative. Dr. Yuan should expect a loss on this investment.
d) The IRR and the NPV decrease. Dr. Yuan can still expect a positive return on her investment.
Assume instead that Dr. Yuan forms a partnership with Dr. Bhat. They agree to share the $100,000 cost equally and to share the cash flow equally. Because of efficiency gains from longer operating hours, they expect the net cash flow to be $32,000 per year. Assume they expect net cash flow to grow at 15% per year. What is the consequence of the partnership to Dr. Yuan? Please compare the results to the original scenario described in question 13 (Dr. Yan opening the only lab in the area).
a) The NPV decreases, but is still positive. Dr. Yuan can still expect a positive return on her investment.
b) The NPV decreases, and becomes negative. Dr. Yuan should expect a loss on this investment.
c) The IRR decreases, but is still positive. Dr. Yuan can still expect a positive return on her investment.
d) The IRR and the NPV increase. Dr. Yuan can still expect a positive return on her investment
Answer:
d
d
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
NPV and IRR can be calculated with a financial calculator
Dr Yaun's inital strip mall
Cash flow in year 0 = $-100,000
Cash flow in year 1 = $24,000
Cash flow in year 2 = $24,000 x 1.15
Cash flow in year 3 = $24,000 x 1.15^2
Cash flow in year 4 = $24,000 x 1.15^3
Cash flow in year 5 = $24,000 x 1.15^4
Cash flow in year 6 = $24,000 x 1.15^5
I = 10 %
NPV = $46,718,00
IRR = 22.85%
Similar Strip Mall
Cash flow in year 0 = $-100,000
Cash flow in year 1 = $16,000
Cash flow in year 2 = $16,000 x 1.15
Cash flow in year 3 = $16,000 x 1.15^2
Cash flow in year 4 = $16,000 x 1.15^3
Cash flow in year 5 = $16,000 x 1.15^4
Cash flow in year 6 = $16,000 x 1.15^5
I = 10 %
NPV = $2188
IRR = 9.33%
It can be seen that both the IRR and NPV decreases but still remain positive. So, Dr. Yuan can still expect a positive return on her investment.
The partnership
Cash flow in year 0 = $100,000/ 2 =$-50,000
Cash flow in year 1 = $32,000 / 2
Cash flow in year 2 = ($32,000 x 1.15)/2
Cash flow in year 3 = ($32,000 x 1.15^2)/2
Cash flow in year 4 = ($32,000 x 1.15^3)/2
Cash flow in year 5 = ($32,000 x 1.15^4)/2
Cash flow in year 6 = ($32,000 x 1.15^5)/2
I = 10 %
NPV = $47,812
IRR = 34.49%
It can be seen that the NPV and IRR are both higher when compared with the first scenario
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button
Arrabellia Cunningham is 24 years old and single, lives in an apartment with no dependents. Last year she earned $55,000 as a sales representative for Planning Associates. $3,910 of her wages was withheld for federal income taxes. In addition, she had interest income of $142. She takes the standard deduction. Calculate her taxable income, tax liability and tax refund or tax owed for 2018.
Answer:
The Taxable income is $43,142
The Tax liability is $5,430.74
The Tax tax owed for 2018 is $1,520.74
Explanation:
To calculate the taxable income use the following formula
Taxable income = Earnings + Interest income - Standard Deduction
Earnings = $55,000
Interest income = $142
Standard Deduction = $12,000
Placing values in the formula
Taxable income = $55,000 + $142 - $12,000
Taxable income = $43,142
The Tax Liability can be calculated as follow
Tax Liability = 22% of Income above $38,700
Tax Liability = $4,453.50 + ( Taxable income - $38,700 ) x 22%
Tax Liability = $4,453.50 + ( ( $43,142 - $38,700 ) x 22%)
Tax Liability = $4,453.50 + $977.24
Tax Liability = $5,430.74
Tax owed for 2018 = Tax Liability - Tax withheld
Tax owed for 2018 = $5,430.74 - $3,910
Tax owed for 2018 = $1,520.74
Suppose you are planning to invest your saving in a fixed income fund. you feel you can mange to deposit 700 at the end of the first year, 500 at the end of the second year ,300 at the end of the third year, and 600 at the end of the fourth year. If the fund earns 6 percent interest each year. The terminal value of this uneven cash flow stream at the end of Year 4 is _____.
Answer:
$2,314
Explanation:
Calculation for what The terminal value of this uneven cash flow stream at the end of Year 4 is
First step is to calculate the terminal Value at the end of the first year
Terminal Value at the end of the first year=$700(1+0.06)^3
Terminal Value at the end of the first year=$833.7
Second step is to calculate the terminal Value at the end of the second year
Terminal Value at the end of the second year=$500(1+0.06)^2
Terminal Value at the end of the second year=$561.8
Third step is to calculate the terminal Value at the end of the third year
Terminal Value at the end of the third year=$300(1+0.06)^1
Terminal Value at the end of the third year=$318
Now let calculate the terminal value of this uneven cash flow stream at the end of Year 4
Terminal Value at the end of year 4=$833.7+$561.8+$318+$600
Terminal Value at the end of year 4=$2,313.5
Terminal Value at the end of year 4=$2,314 (Approximately)
Therefore The terminal value of this uneven cash flow stream at the end of Year 4 is $2,314
Behavioral economists have discovered that people view a 2% decrease in their income without inflation as unfair but a 3% increase in their income in the presence of 5% inflation as fair. a. What are the nominal and real rates of change in their incomes? Nominal change in income = % Real change in income = % b. What tendency is leading people to feel like the pay decrease is unfair? The cost-benefit principle The opportunity cost principle Shoe-leather costs Money illusion
Answer: See Explanation
Explanation:
Based on the information given in the question, we should note that the real interest rate is calculated as:
= Nominal interest rate - inflation rate
In this case, the real interest rate will then be:
= 3% - 5%
= -2%
Real change in income = -2%
Nominal change in income = 3%
The tendency that is leading people to feel like the pay decrease is unfair is the money illusion. This simply means that rather than thinking of money based on its purchasing power, that is in real terms, one thinks of it in nominal term which is in its far value form.
On September 1, 2020, Coronado Industries issued a note payable to Fidelity Bank in the amount of $2730000, bearing interest at 12%, and payable in three equal annual principal payments of $910000. On this date, the bank's prime rate was 13%. The first payment for interest and principal was made on September 1, 2021. At December 31, 2021, Coronado should record accrued interest payable of
Answer:
$327,600
Explanation:
Time value of Money techniques
We use the borrowing rate instead of the Prime rate to find the accrued interest payable.
PV = $2,730,000
i = 12 %
N = 3
PMT = - $910,000
P/yr = 1
FV = $0
Using the Financial calculator amortization function, interest will be $327,600
therefore,
At December 31, 2021, Coronado should record accrued interest payable of $327,600.
in the case three ways how social pressure could be regarded as a stressor for young people and their family relationships
Interwest receives government funding and that funding is tied to the accuracy of the reports put out by its information system. The CFO, Singh, is concerned about whether the employees are properly incentivized to input the data accurately. So she enlists the help of the CEO, Manzoni, to plan a retreat in which she highlighted the importance of proper data entry to the 10 hospital administrators that are in charge of running the hospitals. Six months later the data accuracy problems are as bad as they ever were. Manzoni needs help, what do you recommend? 1. What are the potential sources of the problems? 2. What information would you want to analyze? 3. What actions might you recommend to increase the accuracy of data entry? 4. How does your view of behavior affect how you might address this consulting assignment? Economic concepts from Chapter 1 that you could integrate into your response: Organizational Architecture and Incentives. Economic concepts from Chapter 2 that you could integrate into your response: (a) Marginal Analysis, (b) Opportunity Cost, (c) Alternative Models of Behavior, (d) The Economic Model, and (e) Utility.
Answer:
Answer is explained in the explanation section below.
Explanation:
Solution:
1.
a) Ambiguity in data entry.
b) Inaccurate reporting and planning are lacking.
c) Teamwork inefficiency.
d) A lack of a well-organized data entry system.
e) The lack of access to better patient care.
2.
Whether or not resources are being adequately used, as well as the cause of worker inefficiency, which may include their working conditions and wage package. The problem may have been exacerbated by poor management and a lack of flexibility and organization.
3.
a) Appointing more competent and effective employees and dismissing inefficient ones after adequate training.
b) Introducing incentive programs for overtime and high-performing employees.
c) Oversight of data entry on a regular basis, including proper auditing.
d) A separate department and personnel should be formed for data entry.
e) Development of cutting-edge technologies to help in real-time data entry.
f) Recruiting workers on a trial basis and choosing the most efficient.
g) More funds should be dedicated to infrastructure and treatment facilities development.
h) Informal Organization is introduced.
When people communicate with one another, they form a network of interpersonal relationships that determines how they function together in practice. This will improve teamwork as well as the relationship between management and administrators, lowering tensions and promoting harmony.
4.
Rather than firing incompetent employees, we should provide them with adequate training in data entry into the company's management information system.
The state of a non-profit organization can be improved by proper preparation, organizing, managing, and distributing work load.
Suppose you are an aide to a U.S. Senator who is concerned about the impact of a recently proposed excise tax on the welfare of her constituents. You explained to the Senator that one way of measuring the impact on her constituents is to determine how the tax change affects the level of consumer surplus enjoyed by the constituents. Based on your arguments, you are given the go-ahead to conduct a formal analysis, and obtain the following estimates of demand and supply:
Qd=500-5P
Qs-2P-60
(a) What are the equilibrium quantity and equilibrium price? Graph your solution.
(b) If a $2 excise tax is levied on this good, what will happen to the equilibrium price and quantity? Show the changes in your graph from part (a).
(c) How much tax revenue does the government earn with the $2 tax?
Answer:
(a) P = 80 and Q= 100
(b) P = 80.57 and Q= 97.15
(c) Tax revenue = 194.3
Explanation:
Qd= 500 - 5P
Qs = 2P - 60
(a)
In equilibrium
[tex]Qd = Qs \\500 - 5P = 2P - 60 \\7P = 560 \\P = 80 \\[/tex]
Putting this value of P back into the Qd or Qs equation
[tex]Qd = 500 - 5p\\Q = 500 - 5 (80) \\Q = 500 - 400 \\Q = 100[/tex]
Thus, equilibrium price is 80 and equilibrium quantity is 100
(b)
When a tax is imposed the supply curve shifts up to the left by the amount of the tax. The new supply curve is given by
[tex]Qs = 2(P-2) - 60 \\Qs = 2p - 4 - 60 \\Qs = 2P - 64[/tex]
The new equilibrium is
[tex]Qd = Qs \\500 - 5P = 2P - 64 \\7P = 564\\P = 80.57 \\[/tex]
Substitute it into Qs or Qd we get
[tex]Q = 500 - 5 (80.57 ) \\Q = 97.15[/tex]
(c)
[tex]Tax revenue = Tax rate * Quantity \\ = 2 * 97.15\\ = 194.3[/tex]
a. At equilibrium the quantity demanded is equal to the quantity that was supplied.
Qd = Qs
500 - 5p = 2p - 60
We collect like terms from here
500+60 = 2p+5p
560 = 7p
p = 560/7
p = 80 dollars.
Therefore the equilibrium price is 80 dollars.
The equilibrium quantity
Qd = 500 - 5p
= 500-5*80
= 500-400
= 100
The equilibrium quantity is 100
b. Qs = 2p+60
2p = Qs + 60
divide through by 2
p = 0.5Qs + 30
P = 0.5Qs + 30 + t
where we have tax = t = 2
= 0.5Qs + 30 + 2
= 0.5Qs + 32
p - 32 = 0.5Qs
divide through by 0.5
Qs = 2p - 64
The demand function is still the same at Qd = 500 - 5P.
At equilibrium: Qd = Qs
2P- 64 = 500-5P
collect like terms
7P = 500+64
7P = 564
divide through by 7
P = 564/7
P = $80.57
When we put this in the demand function
Q = 500-5P
Q = 500-5*80.57
Q = 97.14
This is the equilibrium quantity
500-5*80.57
= 400-402.85
= 97.15 dollars
c. the tax revenue = 2x97.15
= 194.3 dollars
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Assume that a parent company owns a 100% controlling interest in its long-held subsidiary. On January 1, 2018, a parent company sold land to the subsidiary for $650,000. The land originally cost the parent $520,000 when it was purchased on January 1, 2009. The parent company uses the equity method to account for its pre-consolidation investment in the subsidiary. Related to the transferred land, which of the following items is true regarding the preparation of the consolidated financial statements for the year ending December 31, 2019?
A. The consolidation entries will include a $26,000 debit to "Equipment (gross)".
B. The consolidation entries will include a $26,000 credit to "Loss on Sale of Equipment".
C. The consolidation entries will include a $26,000 debit to "Gain on Sale of Equipment".
D. The consolidation entries will include a $26,000 credit to "Accumulated depreciatio".
Answer:
A. The consolidation entries will include a $130,000 debit to "Equity Investment (gross)".
Explanation:
Parent Company owns 100% of the shares of its subsidiary which means there is no non controlling interest. The equipment has a value of $520,000 to the parent when it acquired the interest. The land has sold to its subsidiary at a price of $650,000. The differential is $130,000 which is accounted for using the equity method. The parent will report $130,000 debit to the equity investment account.
Ivanhoe Company reports the following operating results for the month of August: sales $392,000 (units 4,900), variable costs $247,000, and fixed costs $96,000. Management is considering the following independent courses of action to increase net income.
1. Increase selling price by 10% with no change in total variable costs or units sold.
2. Reduce variable costs to 57% of sales.
3. Reduce fixed costs by $22,000.
Which course of action wiIl produce the highest net?
Answer:
The best course of action is to increase the selling price by 10%.
Explanation:
Giving the following information:
sales $392,000 (units 4,900)
variable costs (247,000)
fixed costs (96,000)
Current net income= 49,000
First, we need to calculate the unitary selling price and variable cost:
Selling price= 392,000 / 4,900= $80
Unitary variable cost= 247,000 / 4,900= $50.41
Now, we will calculate the impact on net income of each variation:
Increasing selling price by 10%:
Selling price= 80*1.1= $88
Effect on income= 8*4,900= $39,200 increase
Reduce variable costs to 57% of sales.
Unitary variable cost= 80*0.57= $45.6
Effect on income= (50.41 - 45.6)*4,900= $23,569 increase
Reduce fixed costs by $22,000.
Effect on income= $22,000 increase
Clarisa, an engineering manager, wants to purchase a resort accommodation to rent to skiers. She is considering the purchase of a three-bedroom lodge in upper Montana that will cost $250,000. The property in the area is rapidly appreciating in value because people anxious to get away from urban developments are bidding up the prices. If Clarisa spends an average of $500 per month for utilities and the investment increases at a rate of 2% per month, how long would it be before she could sell the property for $100,000 more than she has in
Answer:
18.5 months approximately
Explanation:
initial investment x (1 + appreciation rate)ⁿ = initial investment + $100,000 + ($500 x n)
$250,000 x (1 + 2%)ⁿ = $350,000 + $500n
1.02ⁿ = $350,000/$250,000 + $500n/$250,000
1.02ⁿ = 1.4 + 0.002n
I tried to solve it by trial and error:
50 months:
2.69 ≠ 1.5
40 months:
2.21 ≠ 1.48
30 months:
1.81 ≠ 1.46
20 months:
1.49 ≈ 1.44 ⇒ getting closer
18 months:
1.43 ≈ 1.44 ⇒ almost
18.5 months:
1.44 = 1.44 ✓
Janson Corporation Co.'s trial balance included the following account balances at December 31, 2021: Accounts receivable $12,400 Inventory 41,000 Patent 12,300 Investments 31,200 Prepaid insurance 7,100 Notes receivable, due 2024 50,500 Investments consist of treasury bills that were purchased in November 2021 and mature in January 2022. Prepaid insurance is for two years. What amount should be included in the current assets section of Janson's December 31, 2021, balance sheet?
Answer:
Current assets $88,150
Explanation:
The computation of the amount that should be included in the current assets section is shown below;
Accounts receivable $12,400
Inventory $41,000
Treasury bills $31,200
Prepaid insurance (50% of $7,100) $3,550
Current assets $88,150
