Answer:
The correct answer is letter "B": Estimates stock price appreciation.
Explanation:
Financial Statement Analysis is the process of reviewing a company's statements to gain an understanding of its financial health. The goal of financial statement analysis is to equip business with the knowledge it needs to make effective decisions. It evaluates the past and projects a company's future performance.
Several forces influence a company's stock price but financial statement analysis is not a source that accomplishes that purpose.
Financial statement analysis enables managers to understand how stockholders and creditors interpret their financial results and provides valuable feedback on the company's performance. However, it does not estimate stock price appreciation.
Explanation:Managers use financial statement analysis for various reasons, including understanding how stockholders and creditors will interpret their financial results, estimating stock price appreciation, and providing valuable feedback on the company's performance.
However, the question asks for a reason that is not applicable, and in this case, it would be 'Estimates stock price appreciation' because financial statement analysis primarily focuses on understanding financial results and evaluating the company's performance.
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For a single-server queueing system, which of the following is TRUE? A high utilization factor will result in a system that performs well. A high utilization factor will result in a system that performs poorly. A low utilization factor will result in a system that performs efficiently.
Answer:
II only. A high utilization factor will result in a system that performs poorly is TRUE for a single-server queueing system. As it states that when designing a single-server queueing system, beware that giving a relatively high utilization factor (workload) to the server provides surprisingly poor measures of performance for the system.
True that queueing models enable finding an appropriate balance between the cost of service and the amount of waiting.
Explanation: RATE BRAINLIEST PLEASE
B- A high utilization factor will result in a system that runs and performs poorly in case of a single-server queuing system. This will happen due to less efficiency experienced in as the number of objects in a queue increases.
Single server queuing system will also help identify the fact that if the firm is in severe need of additional servers so as to make the system run well and to the expectancy of the org.
A single server queuing system is designed especially for firms where the server is mandatory but not of high usage and the firm has installed the system just for the sake of it.This system loses its efficiency when there is a great deal of requirements in the firm and the saturation of the firm is much higher than the capacity of the server.A firm will soon have to install additional server to its system to be able to manage the subjects and the objects of the firm's workload with an increase seen throughout and requirement to deploy such system is really required.Hence, the correct option is B that the high utilization factor will lead to the result in a system that performs poorly.
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During a risk assessment, it was discovered the location where the company would like to build a data center in subject to a large number of hurricanes. Management decided to purchase an insurance policy which will pay out in the event the data center is destroyed by a hurricane. This is an example of:
Answer:
risk transfer
Explanation:
Risk transfer is a risk management and control strategy that involves the contractual shifting of a pure risk from one party to another. One example is the purchase of an insurance policy, by which a specified risk of loss is passed from the policyholder to the insurer.
Crane incurs a weekly payroll of $251000 that includes federal taxes withheld of $38200, FICA taxes withheld of $23970, and 401(k) withholdings of $27300. What is the effect on assets and liabilities from recording this transaction? (Ignore company payroll taxes).
Answer:
First let us define the nature of each of the following as per Balance sheet of a company:
Payroll payable- Liability
FICA taxes withheld- Liability
Federal taxes- Liability
410(k)- Liability
Explanation:
Effect of Transaction on assets and liabilities:
Payroll expense Debit will have no impactPayroll payable, Federal taxes, FICA and 401(k) will increase the current liability.And when they are subsequently paid, cash will be credited hence decreasing the current assets and all these current liabilities shall be debited, hence decreasing the current liability portion.What is the primary reason that the owner of the restaurant wants a new accounting system?
Answer:
The answer is stated below:
Explanation:
The primary and the foremost reason that the restaurant owner wants to have a new system of the accounting because the owner wants to keep the track of how the restaurant is doing daily.
So, the owner wants the system which could track all the inventory as well as the expenses in a way which is more efficient. The owner wants to able to see the week by week statements of the how the company is performing.
The owners wants to keep the track of the bills and wants the system which could record the receipt and the cash register tapes.
Design or name any methods of internal controls you think could prevent or detect the unethical behavior in the future.
Answer:
As we know the internal controls are not effective after a passage of time because there are familiarity threats which might result in the unethical behavioral implications. So to prevent or detect the management unethical behavior, we can do the following things:
Segregation of Duties
Checking the effectiveness of the internal control after every year or semi year.
Using only company bank account for all the payments and receipt.
Redesigning policies of the organization to ensure effective working of the internal controls.
Bank reconciliation at the month end
The profit that the vendor makes per day by selling x pretzels is given by the function. P(x) = -0.002x2 + 1.4x - 400. Find the number of pretzels that must be sold to maximize profit.
Answer:
350 the number of pretzels that must be sold to maximize profit.
Explanation:
P(x) = -0.002x2 + 1.4x - 400
Differentiating P(x) with respect to dx:
[tex]P(x)'=\frac{d(-0.002x2 + 1.4x - 400)}{dx}[/tex]
[tex]P(x)'=-2\times 0.002x+1.4[/tex]
Putting , P(x)' =0
[tex]0=-0.004x+1.4[/tex]
[tex]x=\frac{1.4}{0.004}=350[/tex]
we get , x = 350
Differentiating P(x)' with respect to dx:
[tex]P(x)''=-0.004[/tex]
P(x)''<0 (maxima)
350 the number of pretzels that must be sold to maximize profit.
To maximize profit, the vendor should sell 350 pretzels, which will yield a maximum profit of $45.
To find the number of pretzels that must be sold to maximize profit, we need to determine the maximum point of the profit function P(x) = -0.002x² + 1.4x - 400.
The maximum point of a quadratic function of this form occurs at the vertex of the parabola, which can be found using the formula for the x-coordinate of the vertex, [tex]x_v = -\frac{b}{2a}.[/tex]
Let's calculate the x-coordinate of the vertex:
[tex]x_v = -\frac{b}{2a} = -\frac{1.4}{2 \cdot (-0.002)} = -\frac{1.4}{-0.004} = \frac{1.4}{0.004} = 350.[/tex]
Therefore, the number of pretzels that must be sold to maximize profit is 350
The maximum profit can be found by substituting [tex]x_v[/tex] back into the profit function:
P(350) = -0.002(350)² + 1.4(350) - 400 = -0.002(122500) + 490 - 400 = -245 + 490 - 400 = 45.
So, the maximum profit is $45 when 350 pretzels are sold.
In conclusion, to maximize profit, the vendor should sell 350 pretzels, which will yield a maximum profit of $45."
1.The Keynesian AEmodel is a basic representation of the economy in a situation where,for whatever reason, prices don’t change.A.Show, in an AEdiagram, the change in equilibrium Yfrom a given increase inautonomous expenditure. (6 points)B.This simple Keynesian result relies on prices not changing when Yincreases. One reason prices wouldn't change is that input costs don't change. Explain why an increase in GDP might not lead to increased costs for producers. Hint: The economy is operating inside the PPF.
The Keynesian AE model or the expenditure-output model illustrates the economic equilibrium where total spending equals output. An increase in autonomous spending shifts the aggregate demand curve upwards, leading to a higher GDP. Producers may not face increased costs when GDP increases if an economy is operating inside its PPF, as spare resources can be utilized without additional cost.
Explanation:The Keynesian AE model, also known as the expenditure-output model, is utilized to represent the economy in a scenario where prices are unchanging. The equilibrium level of real GDP is essentially determined by the point where the total amount of spending equals the amount of output. This is depicted in the Keynesian cross diagram where aggregate expenditure is plotted on the Y-axis and real GDP, a measure of output, is plotted on the X-axis.
To illustrate how an increase in autonomous expenditure impacts equilibrium Y, consider the model. If autonomous expenditure increases, it causes an upward shift in the aggregate demand (spending) curve. This results in a new, higher equilibrium point, which represents a higher level of real GDP (Y).
Now, with regards to why an increase in GDP might not result in increased inputs costs for producers, we need to consider the idea of an economy operating inside its Production Possibilities Frontier (PPF). When an economy is operating inside the PPF, it indicates the presence of unused resources or inefficiency. Therefore, when GDP rises (due to increased autonomous spending, for example), producers can make use of these previously unused resources to ramp up production without incurring additional costs.
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If the nominal interest rate equals 5 percent and expected inflation is 3 percent, then the new nominal and real interest rates are respectively:
a) 3% and 5%.
b) 8% and 5%.
c) 5% and 2%.
d) 5% and 7%.
e) 7% and 5%
Answer:
c) 5% and 2%.
Explanation:
Given that
Nominal interest rate = 5%
Expected inflation = 3%
We know that
Real interest rate = Nominal interest rate - inflation rate
= 5% - 3%
= 2%
And the new nominal rate is equal to given nominal interest rate i.e 5%
Therefore, we consider all information which is mentioned in the question.
____________refers to information being available to users early enough to allow them to use it in the decision process.
Answer:
The correct word for the blank space is: Timeliness.
Explanation:
Timeliness is a characteristic the Financial Statements must meet by which executives in decision-making positions could be able to read and comprehend what the information reflects on the company's well being so they can take proper action to correct the course of the company or find the way to keep it and improve it.
Last year Oliver Inc had a total assets turnover of 1.60 and an equity multiplier of 1.85. Its sales were $200,000 and its net income was $10,000. The CFO believes that the company could have operated more efficiently, lowered its costs, and increased its net income by $5,000 without changing its sales, assets, or capital structure. Had it cut costs and increased its net income in this amount, by how much would the ROE have changed
Answer:
7.4%
Explanation:
As we know that
ROE = Profit margin × Total asset turnover × Equity multiplier
where,
Profit margin = (Net income ÷ Sales) × 100
= ($10,000 ÷ $200,000) × 100
= 5%
So, the ROE would be
= 5% × 1.60 × 1.85
= 14.8%
Now if the net income is increased by $5,000
So, the updated profit margin would be
= (Net income ÷ Sales) × 100
= ($15,000 ÷ $200,000) × 100
= 7.5%
And updated ROE would be
= 7.5% × 1.60 × 1.85
= 22.2%
So, the change in ROE would be
= 22.2% - 14.8%
= 7.4%
Using the Du Pont method evaluate the effects of the following relationships for the company.
A. Butters Corporation has a profit margin of 7 percent and its return on assets ( investments) is 25.2. What is its assets turnover
B. If the Butters corporation has a debt to total assets ratio of 50 percent, what would the firms return on equity be?
C. What would happen to return on equity if the debt to total assets ratio decreased to 35 percent?
Answer:
Explanation:
A. Profit margin*Total asset turnover=Return on assets(investment)
0.07*TAT=25.2
TAT=360
B. Return on equity=Return on assets/(1-debt/assets)=25.2/(1-0.5)=50.40%
C. Return on equity=Return on assets/(1-debt/assets)=25.2/(1-0.35)=38.77%
I have $65,000 that I need to invest but I want to make more than the bank is offering. Where can I get a high return on a short-term investment with limited risk?
Answer:
Several low-risk portfolios With the higher returns:
Municipal Bonds. Credit Card Rewards. Annuities. Savings Bonds. Cash Value Life Insurance.Bank Bonuses.Explanation:
Municipal Bonds: Municipal bonds are loans made to local authorities by the creditors. Cities, territories, districts, or other municipalities.Credit card rewards: Point incentives are given based on each amount you invest-one point per dollar, for example. Usually, points can be exchanged for products in the online shopping store of the incentive scheme.Annuities: Annuities are insurance contracts that pledge either instantly or in the future to pay you a steady income. You may purchase a lump sum annuity or a sequence of installments.Saving bonds: Savings Bonds are US circulated treasury tools. Treasury Department to help pay for the spending requirements of the U.S. government. They are priced at face value.Cash-value life insurance: Cash value protection is long term life insurance since it provides cover for the existence of the policyholder. Cash value insurance historically has lower premiums than term life insurance because of the cash value factor.Bank Bonuses: Bank rewards are monetary incentives anytime you opening a new deposit or checking account. You would have to set up paper checks with the bank to hold the profile up for at least a couple of years to apply for this one-time bonus.Short-term investments with limited risk can include mutual funds, high-yield savings accounts, CDs, or short-term bond funds. The selection depends on the investor's risk tolerance and life stage, with younger individuals able to take on more risk with stock investments for long-term growth.
Explanation:When considering short-term investments with limited risk, it's crucial to understand the tradeoff between risk and return. While the stock market may offer high returns, these are generally associated with a longer investment horizon and come with considerable risk in the short term. For an investor seeking higher returns than bank offers but with limited risk, mutual funds may be a favorable option. Mutual funds provide the benefit of professional management and diversification, potentially reducing risk and transaction costs. However, for short-term investments, individuals may also consider certificates of deposit (CDs), high-yield savings accounts, or short-term bond funds, which offer better returns than traditional savings accounts with relatively low risk.
One must carefully consider their position in life and how much risk they are willing to take on. Young investors, with time to ride out market volatility, may find stocks suitable for long-term growth. Conversely, those nearing retirement might prioritize preserving capital and might lean towards less volatile investments.
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You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $375,000 per year. Thus, in one year, you receive $1.375 million. In two years, you get $1.75 million, and so on. If the appropriate interest rate is 6.5 percent, what is the value of your winnings today?
Answer:
Total Present value (Sum of all PVs $21,624,467.720
Explanation:
The question is asking for the calculation or computation of the total PV of all the payments . This can be derived by summing up the Present Value (PV) of individual cash received.
Step 1: Calculate the Present Value of each cash payment
Formula= PV= C0 + C1/ (1+r) 1 + C2/ (1+r) 2 + …+ C n/ (1+r) n
C0, C1...Cn= Cash payments for each year for the 10 years
r= The rate each period.... in the question this is 6.5%
Step 2: Use the Formula to calculate annual cash payment
Year Cash payment
0 $1,000,000
1 $1,000,000 + $ 375,000 = $1,375,000
2 $1,375,000 + $ 375000 = $1,750,000
3 $1,750,000 + $ 375000 = $2,125,000
4 $2,125,000 + $ 375000 = $2,500,000
5 $2,500,000 + $ 375000 = $2,875,000
6 $2,875,000 + $ 375000 = $3,250,000
7 3,250,000 + $ 375000 = $3,625,000
8 $3,625,000 + $ 375000 = $4,000,000
9 4,000,000 + $ 375000 = $4,375,000
10 $4,375,000 + $ 375000 = $4,750,000
Step 3: Use the calculated annual cash payments and the formula in step 1 to compute the Total Present Value
Computation of PV:
Yr Cash (C) PV Factor PV Factor @ 6.5 % (F) PV( C x F)
0 1,000,000 1/(1+0.065)^0 1 1,000,000
1 1,375,000 1/(1+0.065)^1 0.939 $1,291,079.812
2 1,750,000 1/(1+0.065)^2 0.882 $1,542,903.745
3 2,125,000 1/(1+0.065)^3 0.828 $1,759,179.320
4 2,500,000 1/(1+0.065)^4 0.777 $1,943,307.727
5 2,875,000 1/(1+0.065)^5 0.730 $2,098,407.405
6 3,250,000 1/(1+0.065)^6 0.685 $2,227,335.886
7 3,625,000 1/(1+0.065)^7 0.644 $2,332,710.029
8 4,000,000 1/(1+0.065)^8 0.604 $2,416,924.751
9 4,375,000 1/(1+0.065)^9 0.567 $2,482,170.372
10 4,750,000 1/(1+0.065)^10 0.533 $2,530,448.669
Total Present value (Sum of all PVs) $21,624,467.720
Answer:
21,624,467.720
Explanation:
Which of the following gifts would probable be held to be taxable to the person receiving the gift?
a. One thousand dollars given to a taxpayer by his or her father
b. An acre of land given to a taxpayer by a friend
c. A car given to a loyal employee by her supervisor when she retired to recognize her faithful service.
d. A Mercedes-Benz given to a taxpayer by his cousin
e. An interest in a partnership given to a taxpayer by his or her uncle
Answer:
The correct answer is E
Explanation:
The taxable is the term which is defined as the amount of income or gift which is used in order to compute that how much tax the company or an individual owes to the government in the stated or given tax period or year.
In case of gifts, the person pay the tax on the income which arises from the gift. So, in this situation, the gift which is probable to held taxable is an interest in the partnership which is given to the taxpayer through his or her uncle.
__________ is a technology approach to implementing a business process, but it’s only part of the technology required to implement business processes. Select one: a. MIS b. BPM c. SaaS d. SOA
Answer:
d. SOA
Explanation:
SOA is an acronym for Service-oriented architecture. SOA is utilizes communication protocol to provide independent service to other devices.
SOA is independent because it does not rely on any technology but work via the web, it helps to bring together different components into a single subsystems so as to integrate business processes, data and other systems.
SOA (Service Oriented Architecture) is the correct answer to the question as it is a technology approach to implementing a business process. It helps in the communication between different systems within a network. Other options do not represent the technological approaches in implementing business processes.
Explanation:The answer to your question is d. SOA (Service Oriented Architecture). SOA is a technology approach to implementing a business process, but it is only part of the technology required to implement business processes. It is effective in facilitating the communication between different systems in a network. Meanwhile, MIS (Management Information Systems) deals with the information system used for decision-making, and SaaS (Software as a Service) is a licensing model for software, while BPM (Business Process Management) is the managerial aspect focused on improving corporate performance.
But, only SOA specifically pertains to a way of designing software or systems to provide services to other software or systems.
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Over the last 50 years in the US, GDP per person has grown at approximately 1% per year, while capital per person has been accumulating at around 0.5% per year. Assume a capital share of 0.3. What is the growth rate of the Solow residual?
Answer:
Explanation:
Growth rate of GDP per worker = growth rate of technology + capital share X growth rate of capital per worker
0.01 = growth rate of solow residual + 0.3*0.005
growth rate of solow residual = 0.0085 =8.5%
A pro football quarterback has to move to a new house. What would be a good economic reason for him to do his own moving rather than hiring someone else?
a. Physically he is in better shape than ever.
b. He is retiring, so he no longer has the trade- off of missing practice or a game.
c. The bids from moving companies are a bit higher than he expected.
d. He makes 20% less money after the latest contract renewal
Answer: it would be B
Explanation:
Feel Good Inc. is a multinational sports goods manufacturer that uses a different strategy in each of its subsidiaries and operations. Moreover, all decision making is decentralized, which leaves the company open for the threat of opportunistic behavior. Since expatriate managers do not rely on headquarters expertise, there is also a great imbalance in transference of information and specialized knowledge. In the context of the four intemational strategies proposed by Bartlett and Goshal, Feel Good Inc. uses the ___.
a. global strategy
b. multidomestic strategy
c. universal strategy
d. international strategy
Answer:
The correct answer is letter "B": Multi domestic strategy.
Explanation:
The Bartlett & Ghoshal Matrix (1989) proposes there are four (4) strategies companies could use to make international businesses: Multi domestic, Global, Transnational and International. The Multi domestic strategy implies having a presence in different countries by adapting the product or service offered to the region. This strategy is characterized by low integration between subsidiaries and decisions are taken by the decentralized subsidiaries on their own.
Consider the circular flow model when answering the following questions
a. A firm decides to buy an existing factory in town. This would occur in the _______
b. Profits (income generated from entrepreneurial ability) are earned by _______
c. The price of coffee is determined in the ________
Answer:
a. Factor market
b. the firm
c. product market
Explanation:
a, Factory is one of the factors of production, if it must be traded, it will be done in the market for factors of production known as the factor market.
b. Profit is a reward for one of the factors of production called entrepreneur, the entrepreneur, in the circular flow model is the firm
d. Consumer goods like coffee are available in the product market, therefore the price for coffee is determined in the product market.
Determine how each of the following would affect the U.S. Production Possibilities Frontier (PPF).
Scenario Shift Outward Shift Inward Movement to a Point Closer to the Frontier Movement to a Point Inside the Frontier
1. An increase in the number of illegal immigrants
2. A war that takes place on U.S. soil
3. A decrease in the unemployment rate
4. The discovery of a new oil field
5. A law that requires individuals to enter lines of work for which they are not suited
Answer:
1. shift outward
2. shift inward
3. movement to a point closer to the frontier
4. shift outward
5. movement to a point inside the frontier
Explanation:
1. An increase in the number of illegal immigrants - shift outward
Causing the increase the number of cheap labor which can produce more goods in the economy.
2. A war that takes place on U.S. soil - shift inward
The war destroys the capital of the country which means that less can be produced.
3. A decrease in the unemployment rate - movement to a point closer to the frontier
The decrease in unemployment rate means more efficient utilization of resources.
4. The discovery of a new oil field - shift outward
The New oil field means that cheaper oil which will increase the production of goods in the economy .
5. A law that requires individuals to enter lines of work for which they are not suited - movement to a point inside the frontier
The Law that requires individuals to jobs for which they are not suites will lead to inefficient use of resources.
What are five groups of people to whom business communication might write letters of appreciation?
Answer:
expressing thanks for a gift, sending thanks for a favor, extending thanks for hospitality, and recognizing employees for their contribution, to answer a congratulatory note.
Final answer:
In the realm of business communication, letters of appreciation are written to customers, employees, suppliers, business partners, and community organizations or volunteers, aimed at acknowledging their support and fostering strong relationships.
Explanation:
In business communications, letters of appreciation are often sent to various groups of people to acknowledge their contributions or express gratitude for a positive action or relationship. Here are five groups that might receive such letters:
Customers: To thank them for their loyalty or feedback that helps the company to improve its services or products.Employees: To recognize their hard work, dedication, or to celebrate work anniversaries and other achievements.Suppliers and vendors: To appreciate their reliable service, quality products, or to acknowledge a successful collaboration.Business partners: To show gratitude for their part in joint ventures or continued support throughout business endeavors.Community organizations or volunteers: To thank them for their contribution to community events or corporate social responsibility activities that the business has been involved in.These letters not only convey thanks but also help to strengthen relationships, which can be vital for continued business success.
On January 1, Martinez Inc. issued $3,000,000, 11% bonds for $3,195,000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Martinez uses the effective-interest method of amortizing bond premium. At the end of the first year, Martinez should report unamortized bond premium of______________.a. $185,130b. $184,500c. $173,550d. $165,000
Answer:
correct option is b. $184,500
Explanation:
given data
issued amount = $3,000,000
rate = 11%
bonds for = $3,195,000
market rate of interest = 10 %
solution
firs we get here Cash paid that is
Cash paid = $3,000,000 × 11%
Cash paid = $330,000
and
Interest expense will be
Interest expense = $3,195,000 × 10%
Interest expense = $319,500
so premium amortization is
premium amortization = $330,000 - $319,500
premium amortization = $11,500
and premium over the 3 million = 195,000
so
New premium will be as
New premium = $195,000 - $11,500
New premium = $184,500
so correct option is b. $184,500
The unamortized bond premium at the end of the first year for Martinez Inc. should be reported as $184,500. This is calculated by subtracting the amortized bond premium from the initial bond premium.
Explanation:The unamortized bond premium at the end of the first year can be calculated as follows: The premium on the bonds is initially $195,000 (issued price of $3,195,000 minus face value of $3,000,000). The interest expense for the first year is the carrying amount of the bond times the market interest rate, which is $3,195,000 × 0.10 = $319,500. However, the bond actually pays interest based on its face value times the coupon rate, $3,000,000 × 0.11 = $330,000. The difference between these two figures, $330,000 - $319,500 = $10,500, is the amount of premium amortized in the first year. So, the unamortized bond premium at the end of the first year is the initial premium of $195,000 minus the amortized amount of $10,500, giving us $184,500.
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Simons Company purchased land to build a new factory. The following expenditures were made in conjunction with the land purchase:
O Purchase price of the land, $150,000
O Real estate commissions of 7% of the purchase price
O Land survey, $5,000
O Back taxes, $5,000
1. What is the initial value of the land?
Multiple Choice:
a. $160,000 b. $160,500 c. $165,500 d. $170,500
Answer: attached
Explanation:
Final answer:
The initial value of the land purchased by Simons Company is calculated by adding the purchase price with real estate commissions, land survey fees, and back taxes, totaling to $170,500.
Explanation:
The initial value of the land bought by Simons Company for building a new factory would include the purchase price, any fees, and other necessary expenditures directly related to the acquisition of the land. To calculate this value, we sum up the following:
Purchase price of the land: $150,000
Real estate commissions (7% of the purchase price): $150,000 * 0.07 = $10,500
Land survey: $5,000
Back taxes: $5,000
Therefore, the initial value of the land is calculated as follows:
$150,000 + $10,500 + $5,000 + $5,000 = $170,500
So, the correct answer is d. $170,500.
A special form of licensing in which one company grants another company the right to market its product in accordance with its standards in exchange for a financial commitment is called a. direct licensing. b. a strategic alliance. c. franchising. d. contract manufacturing. e. a joint venture.
Final answer:
The business model where one company grants another the right to operate under its brand for a financial commitment is called franchising.
Explanation:
The special form of licensing where one company allows another to market its product under specific standards in exchange for a financial commitment is known as c. franchising. In this arrangement, the franchisor provides the franchisee with support such as training, supply chain assistance, and help in setting up operations.
In return, the franchisee is required to pay a franchise fee and ongoing royalty fees. This system can provide benefits, such as brand recognition and an established business model, but it also requires adherence to the franchisor's standards and rules.
Network cooperative strategies among Silicon Valley firms have been successful, in part, because they are geographically close together.
O True O False
Could I Industries just paid a dividend of $1.35 per share. The dividends are expected to grow at a rate of 19 percent for the next five years and then level off to a growth rate of 7 percent indefinitely. If the required return is 13 percent, what is the value of the stock today?
Answer:
$38.956
Explanation:
According to dividend valuation model, the value of stock today is the present value of all the dividends that it will receive in future.
Based on the above discussion, the value of stock shall be calculated as follows:
Present value of Year 1 dividend= $1.42
1.6065(1+13%)^-1
Present value of Year 2 dividend= $1.496
1.91(1+13%)^-2
Present value of Year 3 dividend= $1.57
2.27(1+13%)^-3
Present value of Year 4 dividend= $1.66
2.7013(1+13%)^-4
Present value of Year 5 dividend= $1.74
3.21(1+13%)^-5
Present value of dividend after Year 5=$31.07
(3.21(1+7%)/(13%-7%))*(1+13%)^-5
Price of share= $38.956
During the year, EcoWash Corporation has $ 310 comma 000 in revenues, $ 95 comma 000 in expenses, and $ 6 comma 000 in dividend declarations and payments. Net income for the year was:
Answer:
$215,000
Explanation:
Given that,
EcoWash Corporation has:
Revenues = $310,000
Expenses = $95,000
dividend declarations and payments = $6,000
Hence, the net income is determined by subtracting expenses from the revenues.
Net income:
= Revenues - Expenses
= $310,000 - $95,000
= $215,000
Therefore, the EcoWash Corporation has a net income of $215,000 for the year.
The holder of a life estate has the right to use property for whatever purpose he or she sees fit without regard to the rights of its fee simple owner. True False
Answer:
The statement is: False.
Explanation:
A life estate comprehends the property that someone owns during a lifetime. The benefit of a life estate is that property will transfer without the need of the beneficiary appearing in the will after the holder is deceased. They cannot put the property on sale until the holder's decease, though. As well, holders cannot do anything at will without consulting their simple-fee owners.
The statement is false. The holder of a life estate can use and benefit from the property but must do so in a way that preserves its value for future owners.
The statement that the holder of a life estate has the right to use property for whatever purpose he or she sees fit without regard to the rights of its fee simple owner is false. A life estate grants the holder the right to use, occupy, and benefit from a property for the duration of their life. However, this right is not absolute and must be exercised with regard to the rights of the remainderman or reversioner, who holds fee simple interest. The life tenant is obligated to avoid actions that would damage the property or significantly alter its value. Therefore, while they can make use of the property, their use is constrained by the need to preserve the property's value for future owners.
Bose Company issued $600,000, 14 % bond on January 1
What is the journal entry if they issued it at 100?
What is the journal entry if they issued it at 95?
What is the journal entry if they issued it at 105?
What is the journal entry for interest payment at July 1?
Answer:
1) If bonds are issued as 100 entry will be
Debit Credit
Cash 600,000
Bonds payable 600,000
2) If bonds are issued at 95
Debit Credit
Cash 570,000
Discount 30,000
Bonds payable 600,000
3) If bonds are issued at 105
Cash 630,000
Bonds payable 600,000
Premium 30,000
4)
Debit Credit
Interest payable 42,000
Cash 42,000
Explanation:
1) If the bonds are issued at 100 then the company will receive the same amount of cash as the face value so they will receive 600,000 cash and will owe the bond buyers 600,000 so they will debit 600,000 cash and credit 600,000 bonds payable.
2) If bonds are issued at 95 then the company will receive cash 95% of 600,000 which is 570,000 so they will debit 570,000 cash, 30,000 will debited as discount and 600,000 bonds payable.
3) If bonds are issued at 105 then the company will receive cash 105% of 600,000 which is 630,000 so they will debit 630,000 cash and will credit 600,000 bonds payable and 30,000 as premium.
4) The bonds are issued on January 1 and there is a journal entry of interest payment at July 1 so we assume that the bond has semi annual payments.
14% of 600,000 is 84,000 and we will divide it by 2 to find the semi annual payment which will be 42,000, so we will debit interest payable by 42,000 and credit cash by 42,000.
Ozark Sports sells hunting and fishing equipment and provides guided hunting and fishing trips. Ozark Sports is owned and operated by Eric Griffith, a well-known sports enthusiast and hunter. Eric’s wife, Linda, owns and operates Lake Boutique, a women’s clothing store. Eric and Linda have established a trust fund to finance their children’s college education. The trust fund is maintained by Missouri State Bank in the name of the children, Mark and Steffy. a. For each of the following transactions, identify which of the entities listed should record the transaction in its records. EntitiesL Lake BoutiqueM Missouri State BankO Ozark SportsX None of the above 1. Linda authorized the trust fund to purchase mutual fund shares.2. Linda purchased two dozen spring dresses from a St. Louis designer for a special spring sale.3. Eric paid a breeder’s fee for an English springer spaniel to be used as a hunting guide dog.4. Linda deposited a $2,000 personal check in the trust fund at Missouri State Bank.5. Eric paid a local doctor for his annual physical, which was required by the workmen’s compensation insurance policy carried by Ozark Sports.6. Eric received a cash advance from customers for a guided hunting trip.7. Linda paid her dues to the YWCA.8. Linda donated several dresses from inventory for a local charity auction for the benefit of a women’s abuse shelter.9. Eric paid for dinner and a movie to celebrate their twelfth wedding anniversary.10. Eric paid for an advertisement in a hunters’ magazine. b. What is a business transaction?
Answer:
(a)
1. Linda authorized the trust fund to purchase mutual fund shares.
Missouri State Bank
2. Linda purchased two dozen spring dresses from a St. Louis designer for a special spring sale.
Lake Boutique
3. Eric paid a breeder’s fee for an English springer spaniel to be used as a hunting guide dog.
Ozark Sports
4. Linda deposited a $2,000 personal check in the trust fund at Missouri State Bank.
Missouri State Bank
5. Eric paid a local doctor for his annual physical, which was required by the workmen’s compensation insurance policy carried by Ozark Sports.
Ozark Sports
6. Eric received a cash advance from customers for a guided hunting trip.
Ozark Sports
7. Linda paid her dues to the YWCA.
None of the above
8. Linda donated several dresses from inventory for a local charity auction for the benefit of a women’s abuse shelter.
Lake Boutique
9. Eric paid for dinner and a movie to celebrate their twelfth wedding anniversary.
None of the above
10. Eric paid for an advertisement in a hunters’ magazine
Ozark Sports
(b) Business Transaction:
A business transaction is an activity or event that can be measured in terms of money and which affects the financial position or operations of the business entity. For instance, an asset is acquired or a loan is paid off
Explanation:
(a)
1. The transaction pertains to Trust fund, hence it should be recorded by Missouri State Bank
2. The transaction pertains to the clothing boutique, hence it should be recorded by Lake Boutique
3. The transaction pertains to the business expenditure of Ozark Sports, hence it should be recorded by Ozark Sports
4. The transaction pertains to the bank, hence it should be recorded by Missouri State Bank
5. The transaction pertains to the business expenditure of Ozark Sports, hence it should be recorded by Ozark Sports
6. The transaction pertains to the business expenditure of Ozark Sports, hence it should be recorded by Ozark Sports
7. The transaction is not a business transaction.
8. The transaction pertains to the donations made via lake boutique, hence it should be recorded by Lake Boutique
9. The transaction is not a business transaction.
10. The transaction pertains to the business expenditure of Ozark Sports, hence it should be recorded by Ozark Sports
Transactions involving business operations or financial activities related to Lake Boutique, Ozark Sports or Missouri State Bank should be recorded by their respective entities. Transactions of personal nature do not involve the entities mentioned.
Explanation:1. Missouri State Bank should record the transaction of Linda authorizing the trust fund to purchase mutual fund shares.
2. The purchase of two dozen spring dresses from a St. Louis designer for a special spring sale should be recorded by Lake Boutique.
3. Eric's payment of a breeder’s fee for an English springer spaniel to be used as a hunting guide dog should be recorded by Ozark Sports.
4. The deposit of a $2,000 personal check in the trust fund at Missouri State Bank should be recorded by Missouri State Bank.
5. Eric's payment for his annual physical required by the workmen’s compensation insurance policy should be recorded by Ozark Sports.
6. The cash advance received from customers for a guided hunting trip should be recorded by Ozark Sports.
7. Linda's payment of her dues to the YWCA should be recorded by none of the entities, thus X.
8. The donation of several dresses from inventory for a local charity auction should be recorded by Lake Boutique.
9. Eric's payment for dinner and a movie to celebrate their wedding anniversary should be recorded by none of the entities, thus X.
10. Eric's payment for an advertisement in a hunters’ magazine should be recorded by Ozark Sports.
A business transaction is an economic event that is initiated by an entity and results in changes in its financial position.
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