Which of the following statements is false? A) Price determination is the key element in any market system. B) Input prices influence a firm's costs of production. C) Output prices influence a firm's revenues. D) While managers must understand how output prices are determined, determination of input prices is irrelevant because it is beyond the manager's control.

Answers

Answer 1

Answer:

option D) While managers must understand how output prices are determined, determination of input prices is irrelevant because it is beyond the manager's control.

Explanation:

A price system is simply defined as a part of any economic system. It uses prices usually expressed in monetary form for goods and services valuation and distribution and also the factors of production.

A Pricing Manager helps to determine pricing schemes for firms products and services. The scope of work entailss co-ordination with production departments on cost of making and working with staff in marketing especially on appropriate campaigns and promotions and also they assist with pricing bargaining of customers intent.

Price Determination is getting or deriving the cost of goods sold and services offered/ rendered in the free market. The forces of demand and supply always determine the prices of goods and services in the market system.


Related Questions

Wanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse and the land for $125,000. The appraised fair market value of the warehouse was $75,000, and the appraised value of the land was $100,000. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

a. What is Bob's basis in the warehouse and in the land?
b. What would be Bob's basis in the warehouse and in the land if the appraised value of the warehouse is $50,000, and the appraised value of the land is $125,000?
c. Which appraisal would Bob likely prefer?

Answers

Answer:

A. Warehouse basis $53,571

Land Basis $71,429

B. Warehouse basis $35,714

Land Basis $89,286

C. Appraisal basis in part (a)

Explanation:

a. Calculation to determine What would be Bob’s basis in the warehouse and in the land

Warehouse basis=$125,000*$75,000/(100,000+75,000)

Warehouse basis=$53,571

Land Basis=$125,000*$100,000/($100,000+$75,000)

Land Basis=$71,429

Therefore What would be Bob’s basis in the warehouse is $53,571 and in the land is $71,429

b. Calculation to determine What would be Bob’s basis in the warehouse and in the land if the appraised value of the warehouse was $50,000, and the appraised value of the land was $125,000

Warehouse basis=$125,000*$50,000/($50,000+$125,000)Warehouse basis=$35,714

Land basis=$125,000*$125,000/($125,000+$50,000)Land basis=$89,286

Therefore What would be Bob’s basis in the warehouse is $89,286 and in the land is $35,714 if the appraised value of the warehouse was $50,000, and the appraised value of the land was $125,000

c. Based on the above calculation for part (a) and part (b) the APPRAISAL that Bob would likely prefer will be the APPRAISAL amount in part (a) reason been that the appraisal enables him to allocate additional basis to the warehouse which was lesser in part (b).

Tim Legler requires an estimate of the cost of goods lost by a fire on March 9. Merchandise on hand on January 1 was $38,490. Purchases since January 1 were $93,260; freight-in, $4,700; purchase returns and allowances, $3,000. Sales are made at 33 1/3% above cost and totaled $143,400 to March 9. Goods costing $12,120 were left undamaged by the fire; remaining goods were destroyed.(a) Compute the cost of goods destroyed.(b) Compute the cost of goods destroyed, assuming that the gross profit is 33 1/3% of sales. (Round ratios for computational purposes to 5 decimal places, e.g. 78.72345% and final answer to 0 decimal places, e.g. 28,987.)

Answers

Answer:

(a) Cost of goods destroyed = $13,780

(b) Cost of goods destroyed = $25,730

Explanation:

(a) Compute the cost of goods destroyed.

Markup = Percentage at which sales are made above cost = 33 1/3% = 33.33333%

Margin = Markup / (1 + Markup) = 33.33333% / (1 + 33.33333%) = 25%

Sales = Cost of goods sold * (100% + Markup) ............ (1)

Substituting relevant value into equation (1) and solve for Cost of goods sold, we have:

$143,400 = Cost of goods sold * (100% + 33.33333%)

Cost of goods sold = $143,400 / (100% + 33.33333%) = $107,550

Cost of goods available for sale = Merchandise on hand on January 1 + Purchases since January 1 + Freight-in + Purchase returns and allowances = $38,490 + $93,260 + $4,700 - $3,000 = $133,450

Closing stock = Cost of goods available for sale - Cost of goods sold = $133,450 - $107,550 = 25,900

Cost of goods destroyed = Closing stock - Cost of goods left undamaged = $25,900 - $12,120 = $13,780

(b) Compute the cost of goods destroyed, assuming that the gross profit is 33 1/3% of sales. (Round ratios for computational purposes to 5 decimal places, e.g. 78.72345% and final answer to 0 decimal places, e.g. 28,987.)

Margin = gross profit percentage of sales = 33 1/3% = 33.33333%

Markup = Margin / (1 - Margin) = 33.33333% / (1 - 33.33333%) = 50%

Sales = Cost of goods sold * (100% + Markup) ............ (1)

Substituting relevant value into equation (1) and solve for Cost of goods sold, we have:

$143,400 = Cost of goods sold * (100% + 50%%)

Cost of goods sold = $143,400 / (100% + 50%) = $95,600

Cost of goods available for sale = $133,450

Closing stock = Cost of goods available for sale - Cost of goods sold = $133,450 - $95,600 = 37,850

Cost of goods destroyed = Closing stock - Cost of goods left undamaged = $37,850 - $12,120 = $25,730

Alliance Manufacturing Company has two support departments, Maintenance Department and Personnel Department, and two producing departments, X and Y. The Maintenance Department costs of $90,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $13,500 are allocated on the basis of number of employees. The direct costs of Departments X and Y are $27,000 and $45,000, respectively.

Data on standard service hours and number of employees are as follows:

Maint. Person. Dept. Dept.
Dept. Dept. X Y
Standard service hours used 200 150 1,200 600
Number of employees 25 50    75 75
Direct labor hours 250 250 1,000 500

Predetermined overhead rates for Departments X and Y, respectively, are based on direct labor hours. What is the overhead rate for Department X assuming the direct method is used?

a. $27.00
b. $81.00
c. $46.88
d. $93.75

Answers

Answer: d. $93.75

Explanation:

First find the total cost of Department X:

= Direct cost + Maintenance cost + Personnel costs

Maintenance cost for Dep. X:

= Standard hours for Maintenance / Total hours * Maintenance costs

= 1,200 / (1,200 + 600) * 90,000

= $60,000

Personnel costs:

= Number of employees in X / Total employees * Personnel costs

= 75 / (75 + 75) * 13,500

= $6,750

Total cost:

= 27,000 + 60,000 + 6,750

= $93,750

Predetermined overhead rates:

= Cost / Direct labor hours

= 93,750 / 1,000 hours

= $93.75

Which item shows a credit balance in the Trial Balance?
O
A/P
A/R
Expesnes
O Land

Answers

Answer:

Asset and expense accounts appear on the debit side of the trial balance whereas liabilities, capital and income accounts appear on the credit side.

Answer:

A/P

Explanation:

A/R is assets, A/P is liability.

Sommer, Inc., is considering a project that will result in initial aftertax cash savings of $2.3 million at the end of the first year, and these savings will grow at a rate of 2 percent per year indefinitely. The firm has a target debt-equity ratio of .60, a cost of equity of 10 percent, and an aftertax cost of debt of 4.6 percent. The cost-saving proposal is somewhat riskier than the usual project the firm undertakes; management uses the subjective approach and applies an adjustment factor of 3 percent to the cost of capital for such risky projects.

Required:
What is the maximum inital cost the company would be willing to pay for the project?

Answers

Answer:

the maximum initial cost is 25.62674095 million

Explanation:

The computation of the maximum initial cost of the company is shown below:

But before that the discount rate is

= 0.6 ÷ 1.6 × 4.6% + 1 ÷ 1.6 × 10% + 3%

= 10.9750%

Now Maximum initial cost is

=2.3 ÷ (10.975% - 2%)

= 25.62674095 million

Hence, the maximum initial cost is 25.62674095 million

The fairness ratio is a monetary metric that measures the amount of leverage used by using a company. It uses investments in property and the amount of equity to decide how well a corporation manages its money owed

and money its asset requirements

How is equity ratio calculated?

he shareholder fairness ratio is expressed as a percentage and calculated by means of dividing complete shareholders' equity via the whole assets of the company. The end result represents the amount of the property on which shareholders have a residual claim

Equity interest, described as the quantity of equity a single individual holds in a business, is a frequent thought to the small commercial

enterprise world. For example, if an angel investor receives 25% possession of a company, the investor has a 25% equity hobby in that business

learn more about equity ratio here;

https://brainly.com/question/27993089 #SPJ4

On January 1, 2019, Tonika Company issued a six-year, $10,000, 6% bond. The interest is payable annually each December 31. The issue price was $9,523 based on an 7% effective interest rate. Tonika uses the effective-interest amortization method. The December 31, 2020 book value after the December 31, 2020 interest payment was made is closest to:

Answers

Answer:

$9,590

Explanation:

Calculation to determine what The December 31, 2020 book value after the December 31, 2020 interest payment was made is closest to:

First step is to calculate the Interest paid

Interest paid = 10000*6%

Interest paid= 600

Second step is to calculate the Interest expense

Interest expense = 9,523*7%

Interest expense= 667

Third step is to calculate the Discount amortization

Discount amortization =667-600

Discount amortization = 67

Now let calculate Book value at the end of December 31,2020

Book value at the end of December 31,2020 = 9,523 +67

Book value at the end of December 31,2020 = $9,590

Therefore The December 31, 2020 book value after the December 31, 2020 interest payment was made is closest to:$9,590

Kalamazoo Corporation's cost formula for its manufacturing overhead is $45,700 per month plus $53 per machine-hour. For the month of March, the company planned for activity of 6,200 machine-hours, but the actual level of activity was 6,150 machine-hours. The actual manufacturing overhead for the month was $373,630. The manufacturing overhead in the flexible budget for March would be closest

Answers

Answer:

$371,650

Explanation:

Use the costs formula provided to find the flexed manufacturing overhead cost for March.

A flexed budget amount is a budgeted amount adjusted to actual level of activities as follows.

Actual Activity is given as 6,150 machine-hours

Manufacturing overhead cost = $45,700 + $53 x 6,150 machine-hours

                                                  = $371,650

Therefore,

The manufacturing overhead in the flexible budget for March would be closest $371,650

The total sales of a product, by all competitors in the industry, is:____.a. highest in the introduction stage.b. lowest in the market maturity stage.c. highest in the sales decline stage.d. lowest in the market growth stage.e. lowest in the market introduction stage.

Answers

Answer:

The total sales of a product, by all competitors in the industry, is:____

e. lowest in the market introduction stage.

Explanation:

The product life cycle refers to the time period when a product is first introduced to a market until it exits the market.  There are four main stages in a product life cycle.  They include introduction, growth, maturity, and decline.  It is during the introduction phase that the total sales are lowest.  The low sales are witnessed again during the latter stage of decline.   The highest sales are achieved during the maturity stage.

During the year, Belyk Paving Co. had sales of $2,425,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,335,000, $635,000, and $450,000, respectively. In addition, the company had an interest expense of $275,000 and a tax rate of 25%. (Ignore any tax loss or carryforward provision and assume interest expense is fully deductible). Calculate the firm's net new long-term debt added during the year.

Answers

Answer:

See below

Explanation:

Sales

$2,425,000

Less:

Cost of goods sold

($1,335,000)

Administration and selling expense

($635,000)

Depreciation

($450,000)

EBIT

$5,000

Less:

Interest

($275,000)

No tax

Net income/loss

-$270,000

Operating cash flow = $5,000 + $450,000 - $0 = $500,000

Cash flow from assets = Operating cash flow - Change in networking capital - Net capital spending

= $500,000 - $0 - $0

= $500,000

Cash flow to shareholders = Dividends - New equity

= $0 - $0

= $0

Cash flow to creditors = Cash flow from assets - Cash flow to shareholders

= $500,000 - $0

= $500,000

Therefore, new long term debt added during the year is;

= Interest - Cash flow to creditors

= $275,000 - $500,000

= $225,000

In the production of a wooden chair within the circular flow model, what would the resource market include?
A
furtniture company
B
office supply company
forest
D
wooden chairs

Answers

Answer:

forest/trees

Explanation:

20. The shipment of goods or rendering of services to a foreign buyer, located in a
foreign country is:
Importing
Exporting
Foreign Exchange
Importing and Exporting

Answers

That is Importing. Option A.

At December 31, 2021, MedX Corporation had outstanding 200,000 shares of common stock. Also outstanding were 120,000 shares of preferred stock convertible into 64,000 common shares and $1,800,000 of 10% bonds convertible into 27,000 common shares. MedX's net income for the year ended December 31, 2021, is $1,040,000. The income tax rate is 25%. MedX paid dividends of $2 per share on its preferred stock during 2021. Required: Compute basic and diluted earnings per share for the year ended December 31, 2021, considering possible antidilutive effects

Answers

Answer: basic earning per share = $4.00

Diluted Earning per share = $4.04 per share

Explanation:

Based on the information given in the question, the basic and diluted earnings per share for the year ended December 31, 2021, considering possible antidilutive effects will be calculated as:

The Basic earnings per share will be calculated as:

M= (Net income - preferred dividend) / Outstanding common stock

= ($1040000 - ($120000 × 2)) / 200000

= ($1,040,000 × $240,000) / 200,000

= $800000 ) 200000

= $4.00 per share

The weighted average outstanding share for the diluted will be:

= 200,000 + 64000 + 27000

= 291,000 shares

Then, the diluted earnings per share will be:

= (1040000 + 1800000 × 10% × 75%)/291000

= $4.04 per share

A proposed nuclear power plant will cost $2.2 billion to build and then will produce cash flows of $300 million a year for 15 years. After that period (in year 15), it must be decommissioned at a cost of $900 million. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers in billions rounded to 3 decimal places.)
a. What is the NPV of the project if the discount rate is 5%?
b. What is the NPV of the project if the discount rate is 18%?

Answers

Answer:

$0.481 billion

$-0.748 billion

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Cash flow in year 0 = $-2.2 billion

Cash flow each year from year 1 to 14 = 0.3 billion

Cash flow in year 15 = 0.3 - 0.9 = -0.6 billion

NPV of the project if the discount rate is 5%? = $0.481 billion  

b. What is the NPV of the project if the discount rate is 18% = $-0.748 billion

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.  

The cash flow data for GM is below Cash dividend..............................................$ 94,000 New PPE........................................................$ 61,000 Interest paid on debt.................................$ 39,000 Sales of old equipment.............................$ 86,000 Repurchase of stock..................................$ 83,000 Cash payments to suppliers...................$ 109,000 Cash collections from customers.........$ 440,000 A) Find the net cash provided by or used in investing activities.

Answers

Answer:

the net cash provided by investing activities is $25,000

Explanation:

The computation of the net cash provided by or used in investing activities is shown below

= Sale of old equipment - New PPE

= $86,000 - $61,000

= $25,000

Hence, the net cash provided by investing activities is $25,000

6. Which of the following statements is NOT an element of a well-designed Service System?a. It is consistent with the operating focus of the firm.b. It is user-friendly so customers can easily interact with the service process.c. It is robust and therefore capable of coping with variations in demand and resource availability.d. It is structured so that consistent performance by its people and systems is easily maintained.e. It effectively separates the back office and the front office so each can focus on their own tasks in order to optimize their departmental performance.

Answers

Answer:

e. It effectively separates the back office and the front office so each can focus on their own tasks in order to optimize their departmental performance.

Explanation:

A service system is one that is focused on the growth of technology and information system. It's designed to give services that meet the expectations, needs, and wants of clients.  It is apart of service management, sued in service operations, and found in service marketing. It's designed for client contact, capital flows, and the level of customer involvement.

Exercise 177 Kirk Company issued a $3,500,000, 10%, 10-year mortgage note payable to finance the construction of a building at December 31, 2020. The terms provide for annual installment payments of $569,609. Prepare the entry to record: (a) the mortgage loan on December 31, 2020. (b) the first installment payment. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (a) (b) Click if you would like to Show Work for this question: Open Show Work

Answers

Answer:

The annual installment payment consists of both interest payments and principal repayment.

The interest is based on the remaining balance which is $3,500,000 in this instance:

= 10% * 3,500,000

= $350,000

Principal repayment = 569,509 - 350,000

= $219,509

a.

Date                  Account Titles and Explanation        Debit                 Credit

Dec, 31 2020   Cash                                                   $569,609

                         Mortgage Payment                                                    $569,609

Date                  Account Titles and Explanation           Debit             Credit

Dec, 31 2021     Interest Expense                                $350,000

                           Mortgage Payable                              $219,509

                           Cash                                                                             $569,609

Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 60,000 shares of cumulative preferred 2% stock, $60 par and 300,000 shares of $20 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $51,000; second year, $105,000; third year, $81,000; fourth year, $120,000.

Required:
Determine the dividends per share on each class of stock for each of the four years.

Answers

Answer:

The Preferred shares are cumulative which means that they will have to be paid eventually even if they weren't completed in one period.

Preferred dividend:

= 60,000 * 60 * 2%

= $72,000 per year

                                         First year:                                                            

Preferred dividend                                              Common Dividend

= $51,000                                                             = $0

They will collect it all and be owed:

= 72,000 - 51,000

= $21,000

                                              Second year:                                                            

Preferred dividend                                              Common Dividend

= 21,000 + 72,000                                               = 105,000 - 93,000

= $93,000                                                            = $12,000

Preferred accrued has been

paid off.

                                          Third year:                                                            

Preferred dividend                                              Common Dividend

= $72,000                                                            = 81,000 - 72,000

                                                                            = $9,000

                                          Fourth year:                                                            

Preferred dividend                                              Common Dividend

= $72,000                                                            = 120,000 - 72,000

                                                                             = $48,000

Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $131 Units in beginning inventory 50 Units produced 2,110 Units sold 1,110 Units in ending inventory 1,050 Variable costs per unit: Direct materials $ 45 Direct labor $ 33 Variable manufacturing overhead $ 9 Variable selling and administrative expense $ 7 Fixed costs: Fixed manufacturing overhead $18,990 Fixed selling and administrative expense $22,200 What is the total period cost for the month under variable costing

Answers

Answer:

Period costs= $48,960

Explanation:

Giving the following information:

Units sold 1,110

Variable selling and administrative expense $ 7

Fixed manufacturing overhead $18,990

Fixed selling and administrative expense $22,200

Under the variable costing method, the period costs include the fixed manufacturing overhead, selling, and administrative costs both fixed and variable.

Period costs= (7*1,110) + 18,990 + 22,200

Period costs= $48,960

Vaughn Company issues 11,300 shares of restricted stock to its CFO, Mary Tokar, on January 1, 2020. The stock has a fair value of $565,000 on this date. The service period related to this restricted stock is 5 years. Vesting occurs if Tokar stays with the company until December 31, 2024. The par value of the stock is $10. At December 31, 2020, the fair value of the stock is $396,000.
1. Prepare the journal entries to record the restricted stock on January 1, 2017 (the date of grant), and December 31, 2018.
2. On July 25, 2021, Tokar leaves the company. Prepare the journal entry to account for this forfeiture.

Answers

I think you made mistakes in the dates which i have corrected in the explanations----Prepare the journal entries to record the restricted stock on "January 1, 2017" (the date of grant), and "December 31, 2018"

Answer: Please see answer in explanation column

Explanation:

To record unearned compensation

Date      Account titles and explanation      Debit          Credit

Jan 1, 2020 Unearned compensation       $565,000  

   To Common stock ( 11,300 shares × $10)                     $113,000  

To Paid in capital in excess of par - common stock      $452,000

To record the compensation expense

Date      Account titles and explanation        Debit              Credit

Dec 31, 2020  Compensation    expenses      $113,000  

   To    Unearned compensation                                             $113,000

Calculation:

Compensation expenses =$565,000 ÷ 5 years=   $113,000

To record the forfeiture

Date             Account titles and explanation          Debit                Credit

July 25, 2021   Common stock                               $113,000

Paid in capital in excess of par - common stock    $452,000

To Compensation expenses                                                             $113,000  

To Unearned compensation                                                            $452,000

Calculation:

Common stock ( 11,300 shares × $10)= $113,000

To Compensation expenses  $113,000  ($113,000 × 1 year) January 1, 2020-July 25, 2021,

Unearned compensation =fair value of $565,000 --Compensation expenses  of $113,000   =  $452,000

On December 31, 2020, Ainsworth, Inc., had 560 million shares of common stock outstanding. Fifteen million shares of 7%, $100 par value cumulative, nonconvertible preferred stock were sold on January 2, 2021. On April 30, 2021, Ainsworth purchased 30 million shares of its common stock as treasury stock. Twelve million treasury shares were sold on August 31. Ainsworth issued a 5% common stock dividend on June 12, 2021. No cash dividends were declared in 2021. For the year ended December 31, 2021, Ainsworth reported a net loss of $120 million, including an after-tax loss from discontinued operations of $360 million. Required: 1. Compute Ainsworth's net loss per share for the year ended December 31, 2021. 2. Compute the per share amount of income or loss from continuing operations for the year ended December 31, 2021. 3. Prepare an EPS presentation that would be appropriate to appear on Ainsworth's 2021 and 2020 comparative income statements. Assume EPS was reported in 2020 as $0.75, based on net income (no discontinued operations) of $420 million and a weighted-average number of common shares of 560 million.

Answers

Answer:

Ainsworth, Inc.

1. Net loss per share for the year ended December 31, 2021:

= $0.211

2. Per share amount of income from continuing operations

= $0.422

3. Comparative Income Statements:

                                                                     2021              2020

Net income (continuing operations)         $240 million    $420 million

Net income (including

 discontinued operations)                        ($120 million)   $0

Weighted-average common stock shares 558 million      560 million

EPS (continuing operations)                      $0.43              $0.75

EPS (including discontinued operations) ($0.21)              $0

Explanation:

a) Data and Calculations:

December 31, 2020:

Outstanding common stock = 560 million shares

Outstanding 7%, Cumulative non-convertible preferred stock = 15 million shares at $100 par value

April 30, 2021:

Treasury stock purchased = 30 million

June 12, 2021:

5% Common Stock dividend = 26.5 million shares(530 million * 5%)

August 31, 2021:

Treasury stock sold = 12 million

December 31, 2021: Outstanding common stock = 568.5 million

Therefore, net income from continuing operations = $240 million

After-tax loss from discontinued operations =            $360 million

December 31, 2021 reported net loss =                      ($120 million)

1. Net loss per share for the year ended December 31, 2021:

= $120 million/568.5 million = $0.211

2. Per share amount of income from continuing operations = $240 million/568.5 million = $0.422

3. Comparative Income Statements:

                                                                     2021              2020

Net income (continuing operations)         $240 million    $420 million

Net income (including

 discontinuing operations)                       ($120 million)  $0

Weighted-average common stock shares 558 million      560 million

EPS (continuing operations)                      $0.43              $0.75

EPS (including discontinued operations) ($0.21)              $0

Weighted-average of Common Stock shares:

January 1, 2021: Outstanding 560 million * 12/12 = 560 million

April 30, 2021: Treasury stock 30 million * 8/12 =    -20 million

June 12, 2021: Stock dividend 26.5 million *6.5/12   14 million

August 31, 2021: Treasury stock sold 12 million *4/12 4 million

December 31, 2021: Weighted-average outstanding = 558 million

Assuming that everything else is equal, select the bond that most likely pays a higher Interest rate:

a. A bond issued by a government that is engaged in a civil war.
b. A bond issued by the government of Japan.

Which of the following statements about stocks are correct?

1. The Standard & Poor's 500 is an example of a stock index.
2. A corporation can increase the price of its stock by issuing additional shares of stock.
3. The corporation that issues stock raises revenue every time its stock changes hands on organized stock exchanges.

Answers

Answer:

1. a. A bond issued by a government that is engaged in a civil war.

2. 1. The Standard & Poor's 500 is an example of a stock index.

Explanation:

A key part of the interest rate on a bond is the risk attached to the issuer of the bond. A government engaged in civil war is definitely riskier than the stable government of Japan because there is a chance that they might not even pay if they are defeated and a new government comes in. Such a government will therefore issue at a higher rate to cater for this risk.

The Standard and Poor's 500 is indeed an example of a stock index and it is used to gauge the performance of 500 large companies on various exchanges in the U.S. A corporation can either increase, decrease or maintain stock price by issuing stock so option 2 is wrong. Option 3 is wrong as well because trading stock on an organized exchange does not bring in any revenue for the issuing firm.

Jim Busby calls his broker to inquire about purchasing a bond of Disk Storage Systems. His broker quotes a price of $1,160. Jim is concerned that the bond might be overpriced based on the facts involved. The $1,000 par value bond pays 10 percent interest, and it has 20 years remaining until maturity. The current yield to maturity on similar bonds is 8 percent. a. Calculate the present value of the bond. (Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual.)

Answers

Answer:

Bond Price or Present value = $1196.362948 rounded off to $1196.36

Explanation:

To calculate the quote/price of the bond today, which is the present value of the bond, we will use the formula for the price of the bond. As the bond is an annual bond, the annual coupon payment, number of periods and annual YTM will be,

Coupon Payment (C) = 1000 * 0.1  = $100

Total periods (n) = 20

r or YTM = 0.08 or 8%

The formula to calculate the price of the bonds today is attached.

Bond Price = 100 * [( 1 - (1+0.08)^-20) / 0.08]  + 1000 / (1+0.08)^20

Bond Price or Present value = $1196.362948 rounded off to $1196.36

On January 1, 2017 Preibus acquired 100 % of Spicer. This acquisition was not a bargain purchase. On the date of acquisition, Spicer's Equipment had a net book value of 1,600,000 and a fair value of 1,723,000. Preibus determined that Spicer's equipment had a remaining life of 5 years at the date of acquisition. What is the consolidation adjustment (in addition to adding the two trial balance amounts together) that must be made to the Equipment account when preparing consolidated statements for Preibus as of 12/31/2017

Answers

Answer:

Dr Investment in Spicer $123,000

Cr Equipment $123,000

Dr Equipment $24,600

Cr Depreciation expense $24,600

Explanation:

Preparation of the consolidation adjustment that must be made to the Equipment account when preparing consolidated statements for Preibus as of 12/31/2017

Dr Investment in Spicer $123,000

Cr Equipment $123,000

(1,600,000-1,723,000)

(To record the equipment at their fair value)

Dr Equipment $24,600

Cr Depreciation expense $24,600

($123,000/5 years)

(To record excess Depreciation charged on overvalued Equipment)

Item 12 A production department's output for the most recent month consisted of 10,500 units completed and transferred to the next stage of production and 10,500 units in ending Work in Process inventory. The units in ending Work in Process inventory were 60% complete with respect to both direct materials and conversion costs. There were 1,100 units in beginning Work in Process inventory, and they were 80% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method.

Answers

Answer:

Total equivalent units= 16,800

Explanation:

Giving the following information:

Beginning inventory= 1,100 units 80% complete

Units produced= 10,500 units

Ending WIP= 10,500 60% complete

The weighted average method blends the costs and units of the previous period with the costs and units of the current period.

Beginning inventory= 0

Units completed in the period= 100%

Ending inventory WIP= units*completion

In this exercise:

Beginning inventory= 0

Units completed in the period= 10,500

Ending inventory WIP= 10,500*0.6

Total equivalent units= 16,800

ABC Company sells several products. Information of average revenue and costs is as follows: Selling price per unit $34 Variable costs per unit: Direct material $6 Direct manufacturing labor $2.40 Manufacturing overhead $0.80 Selling costs $3.20 Annual fixed costs $78,000 The company sells 12,000 units at the end of the year. The contribution margin per unit is ________.

Answers

Answer:

Contribution margin per unit= $21.6

Explanation:

Giving the following information:

Selling price per unit $34

Variable costs per unit:

Direct material $6

Direct manufacturing labor $2.40

Manufacturing overhead $0.80

Selling costs $3.20

The contribution margin is calculated by deducting from the selling price all the variable components:

Contribution margin per unit= selling price - total unitary variable cost

Contribution margin per unit= 34 - 6 - 2.4 - 0.8 - 3.2

Contribution margin per unit= $21.6

Solomon has a balance of $4,000 on his credit card account, which has a minimum payment requirement of 4 percent. What is the minimum payment on his account?

Answers

Answer:

$1,000

Explanation:

Answer:

160$

Explanation:

Nick manages a grocery store in a country experiencing a high rate of inflation. He is paid in cash twice per month. On payday, he immediately goes out and buys all the goods he will need over the next two weeks in order to prevent the money in his wallet from losing value. What he can't spend, he converts into a more stable foreign currency for a steep fee. This is an example of the of _________inflation.

a. menu costs
b. shoe-leather costs
c. unit-of-account costs

Answers

Answer:

I believe the answer is B, so Shoe leather Cost

why is marketing research important to a business enterprise { essay }

Answers

Answer:

Market research can identify how customers and potential customers might view your business and identify gaps in customer expectations. This is powerful information to have when completing your marketing strategy. Having good market intelligence helps to minimise risks when making key business decisions.

Explanation:

hope it helps and can I have brainless.

The following is a list of accounts and adjusted amounts for Rollcom, Inc., for the fiscal year ended September 30, 2018. The accounts have normal debit or credit balances.
Accounts Payable $39,100
Accounts Receivable 66,500
Accumulated Depreciation 21,500
Cash 80,300
Common Stock 94,800
Equipment 90,700
Income Tax Expense 10,500
Notes Payable (long-term) 1,500
Office Expenses 6,300
Rent Expense 164,200
Retained Earnings 99,900
Salaries and Wages Expense 128,700
Sales Revenue 325,600
Supplies 35,200
Prepare the closing entry required at September 30, 2018.

Answers

Answer:

30-Sep-18

Dr Sales revenue 325,600

Cr Income tax expense 10,500

Cr Office expenses 6,300

Cr Rent expense 164,200

Cr Salaries and wages expense 128,700

Retained earnings $15,900

Explanation:

Preparation of the closing entry required at September 30, 2018

30-Sep-18

Dr Sales revenue 325,600

Cr Income tax expense 10,500

Cr Office expenses 6,300

Cr Rent expense 164,200

Cr Salaries and wages expense 128,700

Retained earnings $15,900

(325,600-10,500-6,300-164,200-128,700)

(To record closing entries)

Described below are certain transactions of Pharoah Company for 2021:

1. On May 10, the company purchased goods from Fox Company for $77,800, terms 2/10, n/30. Purchases and accounts payable are recorded at net amounts. The invoice was paid on May 18.
2. On June 1, the company purchased equipment for $87,600 from Rao Company, paying $24,000 in cash and giving a one-year, 9% note for the balance.
3. On September 30, the company discounted at 11% its $180,000, one-year zero-interest-bearing note at Virginia State Bank, receiving $162,000.

Required:
Prepare the journal entries necessary to record the transactions above using appropriate dates.

Answers

Answer:

May 10, 2021

Dr Purchases/Inventory $76,244

Cr Accounts Payable $76,244

May 18, 2021

Dr Accounts Payable $76,244

Cr Cash $76,244

June 1, 2021

Dr Equipment $87,600

Cr Cash $24,000

Cr Notes Payable $63,600

September 30, 2021

Dr Cash $162,000

Dr Discount on Notes Payable $18,000

Cr Notes Payable $180,000

Explanation:

Preparation of the journal entries necessary to record the transactions above using appropriate dates

May 10, 2021

Dr Purchases/Inventory $76,244

Cr Accounts Payable $76,244

[$77,800-(2%*$77,800)]

May 18, 2021

Dr Accounts Payable $76,244

Cr Cash $76,244

[$77,800-(2%*$77,800)]

June 1, 2021

Dr Equipment $87,600

Cr Cash $24,000

Cr Notes Payable $63,600

($87,600-$24,000)

September 30, 2021

Dr Cash $162,000

Dr Discount on Notes Payable $18,000

($180,000-$162,000)

Cr Notes Payable $180,000

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