Business College
Answers
Answer 1
Answer:
attached below is remaining part of the detailed solution
A) SPNE = ( M,Y )
B) PSNE = ( U,Y )
Explanation:
A) write down every subgame-perfect Nash equilibrium of the game
attached below
The second player can observe the first player's choice before making his own choice and the first player will always play M knowing that the second player will observe him, also the second player will play Y
Therefor the SPNE of the game will be : ( M,Y )
B) If the game were played simultaneously the results will be different and this is because the second player doesn't have the information of what the first player played
Therefore the PSNE of the game will be : ( U,Y )
Related Questions
What is financial risk?
Answers
Answer:
what are the options? then ill reply with an answer.
What is it?
Financial risk refers to your business' ability to manage your debt and fulfil your financial obligations. This type of risk typically arises due to instabilities, losses in the financial market or movements in stock prices, currencies, interest rates, etc.
Example-
Risks include external events and activities, such as natural disasters or disease breakouts leading to employee health issues.
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(Answered by Benjemin)
2. Which aspect of professionalism do you feel that you are strongest at? Explain why you think so. (1-3 sentences. 2.0 points)
Answers
Answer:
I feel like my strongest aspect of professionalism would be communication. My career interests require lots of communication with customers. I would need to be able to communicate with the customer’s feelings and needs for whichever situation they are in and what they want to accomplish.
Explanation:
g 447,000 397,000 397,000 317,000 79,250 $2,333,000 $1,510,000 $1,361,500 $1,395,500 $715,750 3. Each contract is with a different customer. 4. Any work remaining to be done on the contracts is expected to be completed in 2022. Compute the amount of income (or loss) before selling, general, and administrative expenses for the year ended December 31, 2021, which would be reported under:
Answers
Answer:
$225,000 income
Explanation:
The company is using percentage of completion technique for the valuation of construction contracts. It expects the revenue of $1,725,000 for a three year contract whose services are to be delivered every year. The company should record its revenue every year whose services are delivered at the end of the year. The company will only record its revenue as unearned revenue at the start of the year.
In Draco Corporation’s first year of business, the following transactions affected its equity accounts. Issued 6,400 shares of $2 par value common stock for $42. It authorized 20,000 shares. Issued 1,600 shares of 12%, $10 par value preferred stock for $47. It authorized 3,000 shares. Reacquired 320 shares of common stock for $54 each. Retained earnings is impacted by reported net income of $74,000 and cash dividends of $27,000. Prepare the stockholders’ equity section of Draco’s balance sheet as of December 31. (Amounts to be deducted should be indicated by a minus sign.)
Answers
Answer:
$373,720
Explanation:
Preparation of stockholders’ equity section of Draco’s balance sheet as of December 31
DRACO CORPORATION
Stockholders' Equity Section of the Balance Sheet
December 31
Preferred stock- $10 par value$16,000
(1,600*10)
Paid in capital in excess of par- Preferred stock59,200
[(47-10)*1,600]
Common stock- $2 par value12,800
(6,400*2)
Paid in capital in excess of par- Common stock256,000
[(42-2)*6,400]
Retained earnings47,000
(74,000-27,000)
Less: Treasury stock(17,280)
(320*54)
Total stockholders' equity$373,720
Therefore stockholders’ equity section of Draco’s balance sheet as of December 31 will be $373,720
Lyle Company maintains a petty cash fund for small expenditures. These transactions occurred during the month of August.
Aug. 1 Established the petty cash fund by writing a check on Westown Bank for $226. 15 Replenished the petty cash fund by writing a check for $188. On this date, the fund consisted of $38 in cash and these petty cash receipts: freight-out $61.40, entertainment expense $23.00, postage expense $20.70 and miscellaneous expense $80.11. 16 Increased the amount of the petty cash fund to $426 by writing a check for $200. 31 Replenished the petty cash fund by writing a check for $296. On this date, the fund consisted of $130 in cash and these petty cash receipts: postage expense $132.00, entertainment expense $129.40, and freight-out $33.40.
1.) Journalize the petty cash transactions.
2.) Post to the Petty Cash account
Answers
Answer:
Aug. 1 Established the petty cash fund by writing a check on Westown Bank for $226.
Dr Petty cash fund 226
Cr Cash 226
15 Replenished the petty cash fund by writing a check for $188. On this date, the fund consisted of $38 in cash and these petty cash receipts: freight-out $61.40, entertainment expense $23.00, postage expense $20.70 and miscellaneous expense $80.11.
Dr Freight out expense 61.40
Dr Entertainment expense 23
Dr Postage expenses 20.70
Dr Miscellaneous expenses 80.11
Dr Cash short and over 2.79
Cr Petty cash fund 188
Dr Petty cash fund 188
Cr Cash 188
16 Increased the amount of the petty cash fund to $426 by writing a check for $200.
Dr Petty cash fund 200
Cr Cash 200
31 Replenished the petty cash fund by writing a check for $296. On this date, the fund consisted of $130 in cash and these petty cash receipts: postage expense $132.00, entertainment expense $129.40, and freight-out $33.40.
Dr Freight out expense 33.40
Dr Entertainment expense 129.40
Dr Postage expenses 132
Dr Cash short and over 1.20
Cr Petty cash fund 296
Dr Petty cash fund 296
Cr Cash 296
Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are cash transactions.) Acquired $3,200 cash from issuing common stock. Borrowed $2,300 from a bank. Earned $3,200 of revenues. Incurred $2,420 in expenses. Paid dividends of $420. Lexington Company engaged in the following transactions during Year 2: (Assume all transactions are cash transactions.) Acquired an additional $600 cash from the issue of common stock. Repaid $1,370 of its debt to the bank. Earned revenues, $4,600. Incurred expenses of $2,790. Paid dividends of $760. What was the amount of retained earnings that will be reported on Lexington's balance sheet at the end of Year 1?
Answers
Answer:
Retained Earnings Balance at end of Year 1 = $360
Explanation:
First we need to determine the profit/loss for the year as part of the retained earnings calculation.
Lexington Company
Income Statement for the year ended - Year 1
Revenue Earned $3,200
Less Expenses ($2,420)
Net Income / (Loss) $780
Then we calculate the Retained Earnings Balance
Retained Earnings Statement
Beginning Retained Earnings Balance $ 0
Add Profit earned during the year $780
Less Dividends ($420)
Ending Retained Earnings Balance $360
Your boss indicates that the store’s stock/sales ratio is 5:1. This means that _____ should be invested in inventory for every $1 of forecasted sales.
Answers
Answer:
5 stocks
Explanation:
This means that 5 stocks should be invested in inventory for every $1 of forecasted sales. That is because an x:y ratio means that for every y amount of something there needs to be an x amount as well. The same applies for the opposite, if there is an x amount of something then a y amount should exist. Therefore, in this scenario for every $1 of sales 5 stocks need to exist.
Which one of the following taxes are NOT a mandatory, or
required deduction from your paycheck?
Federal Income Tax
O Retirement Savings
O State Income Tax
O FICA
Answers
State Income Tax can be deducted from paycheck.
State Income Tax are NOT a mandatory, or required deduction from your paycheck. Thus, its C.
What is State Income Tax?
The majority of U.S. states also levy a state income tax in addition to the federal income tax that the nation as a whole collects. Several municipal governments also charge an income tax, frequently based on calculations made for the state income tax.
Individuals are subject to income taxes in 42 states and several localities in the US. A ninth state, New Hampshire, levies an income tax on individuals on dividend and investment income but not on other types of income.
Eight states have no state income tax. The income of companies is taxed by 47 states and numerous cities.
A fixed or graduated rate of state income tax is levied on the taxable income of individuals, businesses, and certain charities and trusts. Both the state and entity type tax rates are different.
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To increase tax revenue, the U.S. government imposed a 2-cent tax on checks written on bank account deposits in 1932 (in today's dollars, about 34 cents per check). Complete the following statements on the impact of this tax on the money multiplier and the money supply. a. The tax on checks written would make people less likely to write checks. Thus, people might start holding more money as demand deposits . This would increase the currency-deposit ratio. b. Under this check tax, the money supply would have increased, because the currency-deposit ratio increased, which in turn increases the money multiplier. increased, because the currency-deposit ratio increased, which in turn decreases the money multiplier. decreased, because the currency-deposit ratio increased, which in turn increases the money multiplier. decreased, because the currency-deposit ratio increased, which in turn decreases the money multiplier. not changed, because the check tax would not impact the money supply or the money multiplier. c. Some economists argue the sharp decline in the money supply is at least partially at fault for the severity of the Great Depression. The check tax was intended to increase government revenue. However, the unintended consequence was to decrease deposits in banks, which reduced the money supply further. From this perspective, the check tax policy was a bad idea .
Answers
Answer:
b. Under this check tax, the money supply would have increased, because the currency-deposit ratio increased, which in turn increases the money multiplier.
Explanation:
Cede & Co. expects its EBIT to be $115,000 every year forever. The company can borrow at 7 percent. The company currently has no debt and its cost of equity is 13 percent. a. If the tax rate is 24 percent, what is the value of the company? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b.What will the value be if the company borrows $255,000 and uses the proceeds to repurchase shares? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answers
Answer: See explanation
Explanation:
a. . If the tax rate is 24 percent, what is the value of the company?
= [($115,000 × (1-24%)]/13%
= ($115,000 × 76%)/13%
= ($115000 × 0.76)/0.13
= $87400/0.13
= $672307.69
b. What will the value be if the company borrows $255,000 and uses the proceeds to repurchase shares?
= $672307.69 + ($255000×24%)
= $672307.69 + ($255000 × 0.24)
= $672307.69 + $61200
= $733507.69
Describe personal selling. Personal selling is direct communication between a sales representative and one or more prospective buyers in an attempt to influence each other in a purchase situation. Broadly speaking, all businesspeople use personal selling to promote themselves and their ideas. Personal selling offers several advantages over other forms of promotion. Personal selling allows salespeople to thoroughly explain and demonstrate a product. Salespeople have the flexibility to tailor a sales proposal to the needs and preferences of individual customers. Personal selling is more efficient than other forms of promotion because salespeople target qualified prospects and avoid wasting efforts on unlikely buyers. Personal selling affords greater managerial control over promotion costs. Finally, personal selling is the most effective method of closing a sale and producing satisfied customers.
5.1 Discuss the role of personal selling in promoting products. What advantages does personal selling offer over other forms of promotion?
5.2 What are the major advantages of personal selling to the company selling a product? What are the advantages to the person or company buying the product?
Answers
Explanation:
5.1 Discuss the role of personal selling in promoting products. What advantages does personal selling offer over other forms of promotion?
Personal selling is a traditional sales method that consists of a more personalized service and a more efficient product promotion compared to other forms of promotion. This is due to the fact that, in a personal sale, there is the direct influence of the seller to explain the functionalities and characteristics of a product, which is usually done using sales and negotiation techniques that directly influence the buyer to feel the need for the product that is being promoted. The advantages of personal selling as opposed to other types of promotion, is the possibility of reducing the time and effort of purchase, since in this type of sale, the seller goes to the customer to offer the product.
5.2 What are the major advantages of personal selling to the company selling a product? What are the advantages to the person or company buying the product?
The biggest advantages of personal selling for the company that sells a product is the greater possibility of having a closed purchase, since the potential sales are made with your potential customers. There is also a decrease with other types of product promotion, which can be costly, such as advertising an advertisem*nt on television, and which may not generate the expected goal of increasing product sales.
The advantages for the person or company that buys the product is the possibility of knowing and seeing the functionality of the product before purchasing and the possibility of negotiating and providing meaningful feedback, which can influence the seller to make the sales proposal more flexible by making it more attractive to the customer. Personal selling also creates value for the customer, as the service is personalized, based on their profile, characteristics, desires and needs.
Select the correct answer from each drop-down menu.
As a sales executive at a large corporation, Sonya earns____
the company's finance department as an accountant, earns
for every big sale she makes. Jessica, who works full time in the company’s finance department as an accountant, earns ____
1. a) a bonus
b) a commission
c) hourly pay
2. a)a bonus
b)a commission
c) a fixed salary
Answers
1) Is most likely b) a commission. Commissions and bonuses can both be based off sales performance, but the the fact that she gets it for every sales makes it sound more like commissions which tends to be a structural aspect of someone’s pay that happens repeatedly, versus a bonus which is typically a one time thing.
2) is fixed salary. Hourly pay usually applies to lower levels and fixed salaries are for higher level, executive, employees
The Answer of First question is option B "a Commission", and answer for second question is option C "A Fixed Salary".
Types of Earning
In a Corporate and private sector, there are many different kinds of earning, such as a fixed salary, a commission or a bonus depends upon the job a person has.
In the First question Sonya is a sales executive, and we know sales is a commission based job, hence the correct option would be A Commission. A bonus is given for completing overall job target.
In the second question, Jessica who works full time as an Accountant which means her job is based on a fixed salary rather than a commission because she is providing professional service to the company. Hence the correct option would be Option C Fixed Salary.
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Illinois Furniture, Inc., produces all types of office furniture. The "Executive Secretary" is a chair that has been designed using ergonomics to provide comfort during long work hours. The chair sells for $130. There are minutes available during the day, and the average daily demand has been chairs. There are eight tasks: Task Performance Time (mins) Task Must Follow Task Listed Below A B C A, B D C E D F E G E H F, G This exercise only contains parts b, c, d, e, f, and g. b) The cycle time for the production of a chair = 9.23 minutes (round your response to two decimal places). c) The theoretical minimum number of workstations 6 (round your response up to the next whole number). d) The assignment of tasks to workstations should be: (Hint: Number workstations sequentially in terms of precedence relationships and combine any applicable tasks.) Task Workstation Number A Station 1 B Station 2 C Station 3 D Station 4 E Station 5 F Station 6 G Station 7 H Station 8 Were you able to assign all the tasks to the theoretical minimum number of workstations? No e) For this process, the total idle time per cycle = nothing minutes (enter your response as a whole number).
Answers
Answer:
hello your question is incomplete attached below is the missing table to your question
Illinois Furniture, Inc., produces all types of office furniture. The "Executive Secretary" is a chair that has been designed using ergonomics to provide comfort during long work hours. The chair sells for $130. There are 480 minutes available during the day, and the average daily demand has been 50 chairs. There are eight tasks
answer : a) 9.6 minutes
b) 5 work stations
c) choose initial task and task with maximum task time
d) 21 minutes
Explanation:
A) cycle time for the production of a chair
cycle time = (production time available per day ) / ( unit demand per day )
= 480 minutes / 50 chairs
= 9.6 minutes ≈ 10 minutes
B) theoretical minimum number of workstations
= Total task / cycle time
where total task = (4 + 7 + 6 + 5 + 6 + 7 + 8 + 6 ) = 49 minutes
cycle time = 9.6 minutes
hence theoretical minimum number of workstations = 49 / 9.6 = 5.1
≈ 5 workstations
C ) Assignment of tasks to workstations
attached below
you will choose the initial/first task and also the task with maximum tax time
D) For the process the total idle time per cycle
total idle time = summation of all idle times for the 8 tasks = 21 minutes
Task A, C = 0 minutes
Task B = 3 minutes
Task E = 4 MINUTES
Task F = 3
Task G = 2
Task H = 4
Task D = 5
The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month. The campaign would cost $4,800. Marketing studies indicate that such a campaign would increase sales in the Medical market by $42,000 or increase sales in the Dental market by $36,000. Required: 1. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? 2. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market? 3. In which of the markets would you recommend that the company focus its advertising campaign?
Answers
Answer:
1. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market?
We are missing the cost structure, so I looked for similar question. The company's current segment margin for the medical market is 30%. So this campaign would increase segment profit by $42,000 x 30% = $12,600. Since its cost is $4,800, net profit will increase by $12,600 - $4,800 = $7,800
2. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market?
The dental market's segment profit is 24%, so this campaign would increase revenue by $36,000 x 24% = $8,640. To calculate net profit we must again subtract the campaign's cost. Net profit = $8,640 - $4,800 = $3,840
3. In which of the markets would you recommend that the company focus its advertising campaign?
They should focus on the medical market since their profit will be higher.
Explanation:
Start with the beginning balances for these T-accounts: Accounts Receivable, $100,000, Allowance for Uncollectible Accounts, $14,000. Post the following 2018 transactions to the T-accounts: a. Service revenue of $697,000, all on account b. Collections on account, $714,000 c. Write-offs of uncollectible accounts, $8,000 d. Uncollectible-account expense (allowance method), $11,000. What are the ending balances of Accounts Receivable and Allowance for Uncollectible Accounts?
Answers
Answer:
T-accounts:
The ending balances of Accounts Receivable and Allowance for Uncollectible Accounts are:
Accounts Receivable = $75,000
and
Allowance for Uncollectible Accounts = $17,000
Explanation:
Accounts Receivable
Accounts Title Debit Credit
Balance $100,000
Service Revenue 697,000
Cash $714,000
Uncollectible written off $8,000
Balance $75,000
Allowance for Uncollectible Accounts
Accounts Title Debit Credit
Balance $14,000
Uncollectible written off $8,000
Uncollectible Expense 11,000
Balance 17,000
BitcoinLotto:
Suppose the nation of Bitcoinia has decided to convert its national lottery to use Bitcoin. A trusted scratch-off ticket printing factory exists and will not keep records of any values printed. Bitcoinia proposes a simple design: a weekly run of tickets is printed with an address holding the jackpot on each ticket. This allows everybody to verify the jackpot exists.
The winning ticket contains the correct private key under the scratch material.
7.1. What might happen if the winner finds the ticket on Monday and immediately claims the jackpot? Can you modify your design to ensure this won’t be an issue?
7.2. Some tickets inevitably get lost or destroyed. So you’d like to modify the design to roll forward any unclaimed jackpot from Week n to the winner in Week n+1 .
Can you propose a design that works, without letting the lottery administrators embezzle funds? Also make sure that the Week n winner can’t simply wait until the beginning of Week n+1 to attempt to double their winnings.
Answers
Answer and Explanation:
1.Since we only want the winnings claimed by the end if the week, we would have to make sure the keys on the tickets are not activated until the end of the week, also verification of winnings occur by end of the week. This way someone cannot immediately unlock their bitcoin on a Monday but may just scratch the ticket.
2. Bitcoin wallets cannot be unlocked without the private key and so there is no other option when ticket is lost as bitcoin cannot be retrieved. Therefore it is important that tickets are secured properly during production and after when issued to contestants
The tickets are available to anybody. However, scratching should be permitted on the last day of the week, which is Saturday.
If any tickets are lost or destroyed, there is no method to recover the bitcoin due to the current bitcoin nature.
Bitcoin and ticket:
The key to release the bitcoin should be date-protected and triggered on the week's last working day. So, even if someone buys a ticket on Monday and attempts to unlock it right away, he won't be able to till the end of the week. Fairness can be achieved in this manner.
The only method to avoid this is to protect the printing so that it cannot be stolen or destroyed during the ticket making process.
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A firm is considering purchasing two assets. Asset A will have a useful life of 15 years and cost $3 million; it will have installation costs of $400,000 but no salvage or residual value. Asset B will have a useful life of 6 years and cost $1.3 million; it will have installation costs of $180,000 and a salvage or residual value of $300,000. Which asset will have a greater annual straight-line depreciation
Answers
Answer:
Asset A provides a greater annual depreciation.
Explanation:
Giving the following information:
Asset A:
Useful life= 15 years
Purchase price= 3,000,000 + 400,000= 3,400,000
Salvage value= 0
Asset B:
Useful life= 6 years
Purchase price= 1,300,000 + 180,000= 1,480,000
Salvage value= 300,000
To calculate the depreciation expense, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Asset A:
Annual depreciation= 3,400,000/15= $226,666.67
Asset B:
Annual depreciation= (1,480,000 - 300,000) / 6
Annual depreciation= $196,666.67
Asset A provides a greater annual depreciation.
The better-off test for evaluating whether a particular diversification move is likely to generate added value for shareholders involves assessing whether the diversification move A. will make the company better off because it will produce a greater number of core competencies. B. will make the company better off by improving its balance sheet strength and credit rating. C. will make the company better off by spreading shareholder risks across a greater number of businesses and industries. D. offers potential for the company's existing businesses and new businesses to perform better together under a single corporate umbrella. E. will benefit shareholders due to gains in earnings per share and faster stock price appreciation.
Answers
Answer:
A. will make the company better off because it will produce a greater number of core competencies.
Explanation:
The better-off test means that a business must benefit from the proposed diversification. This benefit van be a one time benefit or a continuous benefit
Reasons for diversification that don't pass the better of test
Diversification to diversify shareholders investments Increasing the size of the company.
In any industry, ethical behavior is the responsibility of ______.
Answers
Answer:
In any industry, ethical behavior is the responsibility of each employee
Answer:
each employee
Hope this helps
tina is the sole owner of tina's lawn mowing, incorporated (TLM). In one year TLM collects $1,000,000 from customers to mow their lawns. TLM equipment depreciates in value by $125,000. TLM pays $600,000 to its workers who pay $140,000 in taxes on this income. TLM pays $50,000 in corporate income taxes and pays Tina a dividend of $150,000. Tina pays taxes of $60,000 on this dividend income. TLM retains $75,000 of earnings in the business to finance future expansion. How much does this economic activity contribute to each of the following
Answers
Answer: See explanation
Explanation:
This is the remainder of the question:
How much does this economic activity contribute to GDP, NNP, National income, compensation of employees, Proprietors' Income, corporate profits, personal income, disposable personal income?
a. GDP – $1,000,000
The GDP is the value for the goods and services that a country sells. To loan customers lawns, Tina collects $1,000,000.
b. NNP – $875,000
NNP = GDP - Depreciation
= $1000000 - $125000
= $875000
c. National income – $875,000
d. Compensation of employees- $600,000
This is the amount paid by the company to its workers for work done as wages and salaries.
e. Proprietors’ income – $0
Because it is a Corporation, this will be $0.
f. Corporate profits – $275,000
This will be:
= $50,000 + $150,000 + $75000
= $275000
g. Personal income – $750,000
= NNP + Dividend - Profit
= $875000 + $150000 - $275000
= $750000
h. Disposable personal income – $550000
= $750000 - $60000 - $140000
= $550000
Video Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and on-site installation by VP staff. The installation includes programming the remote to have the TV interface with other parts of the customer’s home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations. VP sells the 60-inch TV separately for $2,090 and sells the remote separately for $270, and offers the entire package for $2,580. VP does not sell the installation service separately. VP is aware that other similar vendors charge $320 for the installation service. VP also estimates that it incurs approximately $270 of compensation and other costs for VP staff to provide the installation service. VP typically charges 50% above cost on similar sales. Required: 1. to 3. Calculate the stand-alone selling price of the installation service using each of the following approaches.
Answers
Answer:
1. Adjusted Market Assessment
= $320
Here the selling price will be based on what the competitors are charging for the same or a similar service.
As VP competitors are charging $320 for the service, the stand-alone selling price of the installation service will be $320 under this approach.
2. Expected Cost plus Margin
Here the company will add a margin on the expenses and costs it incurs to provide the service.
VP incurs $270 of compensation and other costs for VP staff and typically charges a 50% margin above cost on similar sales.
Selling price = 270 * ( 1 + 50%)
= $405
3. Residual
Under this approach, all other components of the package sale are subtracted from the package price and the amount remaining will be the price of the component in question.
= Package - 60-inch TV - remote
= 2,580 - 2,090 - 270
= $220
A share of stock with a beta of 0.82 now sells for $58. Investors expect the stock to pay a year-end dividend of $2. The T-bill rate is 5%, and the market risk premium is 8%. a. Suppose investors believe the stock will sell for $60 at year-end. Calculate the opportunity cost of capital. Is the stock a good or bad buy? What will investors do? (Do not round intermediate calculations. Round your opportunity cost of capital calculation as a percentage rounded to 2 decimal places.) b. At what price will the stock reach an "equilibrium" at which it is perceived as fairly priced today? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answers
The opportunity cost of the capital here is given as 11. 56%
The expected return is 6.90%
The stock is a bad buy
The stock price is 55.58
How to solve for the opportunity cost of the stock
The formula for the opportunity cost of stock is given as:
risk free rate + beta x the risk premium
The risk free rate = 0.05
beta = 0.82
The risk premum = 0.08
Hence the opportunity cost is given as: 0.05 + 0.82 x 0.08
= 0.1156
=11.56%
The expected return is given as
60 + 2 - 58 / 58
= 0.069
= 6.9%
The expected return can be seen to be less than this opportunity cost therefore what is to happen would be for the investors not to invest because this is a bad buy.
b. The stock price = 60 * 2 / 1.1156
= 55.58
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Robin’s capital statement reveals that he made an additional capital investment of 25,000.
His drawings during the year were 50,000. His share of the net loss for the year was 10,000.
His ending capital balance was 200,000.
What was Robin’s beginning capital balance?
Answers
Answer:
135,000
Explanation:
For Swifty Corporation, sales is $1000000, fixed expenses are $225000, and the contribution margin per unit is $60. What is the break-even point?
Answers
Answer:
3,750 units
Explanation:
With regards to the above,
Break even point = Fixed expenses / Contribution margin per unit
Fixed expenses = $225,000
Contribution margin per unit = $60
Break even point = $225,000 / $60
Break even point = 3,750 units
Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on May 31, its Cash account shows a debit balance of $25,525. Clayborn's May bank statement shows $22,600 on deposit in the bank. Determine the adjusted cash balance using the following information: Deposit in transit $ 7,750 Outstanding checks $ 6,300 Bank service fees, not yet recorded by company $ 110 A NSF check from a customer, not yet recorded by the company $ 1,365 The adjusted cash balance should be:
Answers
Answer:
$24,050
Explanation:
Calculation for the adjusted cash balance
Using this formula
Adjusted cash balance= Bank balance + Deposits in transit - Outstanding check
Let plug in the formula
Adjusted cash balance= $22,600 + $7,750 - $6,300
Adjusted cash balance= $24,050
Therefore the adjusted cash balance should be $24,050
Stellar, Inc. had net sales in 2020 of $1,508,000. At December 31, 2020, before adjusting entries, the balances in selected accounts were Accounts Receivable $393,100 debit, and Allowance for Doubtful Accounts $3,490 credit. If Stellar estimates that 8% of its receivables will prove to be uncollectible.
Required:
Prepare the December 31, 2020, journal entry to record bad debt expense.
Answers
Answer: See attachment
Explanation:
The following can be gotten from the question:
Account receivable = $393,100
Allowance for Doubtful Accounts = $3,490
Since Stellar estimates that 8% of its receivables will prove to be uncollectible. This will be:
= ($393,100 × 8%) - $3490
= $31448 - $3490
= $27958
The journal entry to record bad debt expense has been attached
You want to invest an amount of money today and receive back twice that amount in the future. You expect to earn 8 percent interest. Approximately how long must you wait for your investment to double in value
Answers
Answer:
It will take 8.75 years to double the investment.
Explanation:
Giving the following information:
Interest rate= 8%
To calculate the time required to double any amount of money, we can use the rule of 70. The rule of 70 is a means of estimating the number of years it takes for an investment or your money to double.
Number of Years to Double= 70/Annual Rate of Return
Number of Years to Double= 70/8
Number of Years to Double= 8.75
It will take 8.75 years to double the investment.
Southern Rim Parts estimates its manufacturing overhead to be $416,000 and its direct labor costs to be $1,040,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $63,000 for Job 301, $88,000 for Job 302, and $165,000 for Job 303. For the year, actual manufacturing overhead was $409,000 and total direct labor cost was $836,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates. Overhead applied in each of the inventory accounts is as follows:Work-in-process inventory $ 33,440Finished goods inventory 83,600Cost of goods sold 217,360Required:Prepare an entry to prorate the under- or overapplied overhead. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answers
Answer:
Work-in-process $700 (debit)
Finished goods $1,750 (debit)
Cost of goods sold $4,550 (debit)
Overheads $7,000 (credit)
Explanation:
Southern Rim Parts estimated/ applied overheads are $416,000 and the actual overheads are $409,000.
Conditions :
If Applied Overheads > Actual Overheads, we have an over-applied situation
and
If Applied Overheads < Actual Overheads, we have an under-applied situation
Therefore,
Using the information of Southern Rim Parts, we have an over- applied situation of $7,000 ($416,000 - $409,000).
Allocation of the over- applied overheads of $7,000
Inventory/Category Total Percentage Allocation
Work-in-process inventory $ 33,440 10% $700
Finished goods inventory $83,600 25% $1,750
Cost of goods sold $217,360 65% $4,550
Total $334,400 $7,000
Journal entry to record the the over-applied overheads
Work-in-process $700 (debit)
Finished goods $1,750 (debit)
Cost of goods sold $4,550 (debit)
Overheads $7,000 (credit)
Tangible resources include:
A. human assets and intellectual capital, which can include the talent of the work force and the creativity and innovativeness of certain personnel.
B. reputational assets, which can include the company's reputation for quality, service, and reliability as well as their reputation for fair dealings with suppliers.
C. relationships with alliances that provide access to technologies, specialized know-how, or geographic markets.
D. technological assets such as patents, copyrights, and trade secrets.
E. None of these.
Answers
Answer:
D.technological assets such as patents, copyrights, and innovation technologies.
Explanation:
Tangible resources are regarded as a physical asset with a set of value that are been owned by organization, companies. Tangible resources could be equipment, machinery, buildings, cash and so on.
It should be noted that Tangible resources can be in form of technological assets such as patents, copyrights, and innovation technologies.
They are important in finance because their utilization could be for very long time in the business.
:
A major purpose of a cost accounting system is to _____
Answers
Answer:
Explanation:
The main objective of cost accounting are ascertainment of cost, fixation of selling price, proper recording and presentation of cost data to management for measuring efficiency and for cost control and cost reduction, ascertaining the profit of each activity, assisting management in decision making process.
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