A foreign branch bank operates like a local bank, but legally Group of answer choices a branch bank is subject to only the banking regulations of its home country and not the country in which it operates. it is a part of the parent bank. a branch bank is subject to both the banking regulations of its home country and the country in which it operates. it is a part of the parent bank, and a branch bank is subject to both the banking regulations of its home country and the country in which it operates.

Answers

Answer 1

Answer:

Foreign branch

This is usually refered to as legal and operational section (part)of the parent bank. It is said that creditors of the branch have full legal rights on the bank's assets in all and also creditors of the parent bank have hold/claims on its branches' assets.

A foreign branch bank operates like a local bank, but is legally part of the the parent.

A branch bank is subject to both the banking regulations of home country and the country in which it operates (foreign country)

Explanation:

Foreign Branches

A foreign branch bank is a branch of a bank in other country. It usually operates like a local bank even though they are a section or part of the the parent legally. Thehy abide by the rules and regulations of the banking regulations of home country and also that of foreign country which their operating is based (branched)

They are commonly known to give a wide and broad range of services than a representative office. Branch Banks are used by U.S. banks to expand overseas.


Related Questions

Cameron Industries is purchasing a new chemical vapor depositor in order to make silicon chips. It will cost $7,000,000 to buy the machine and $20,000 to have it delivered and installed. Building a clean room in the plant for the machine will cost an additional $3 million. The machine is expected to raise gross profits by $4,500,000 per year, starting at the end of the first year, with associated costs of $1 million for each of those years. The machine is expected to have a working life of seven years and will be depreciated over those seven years. The marginal tax rate is 40%. What are the incremental free cash flows associated with the new machine in year 0?
A) -$10,020,000
B) -$7,000,000
C) -$9,018,000
D) $1,002,857

Answers

Answer:

A) -$10,020,000

Explanation:

Year 0 cash flow = -(Cost of Machine + Installation Cost + Clean Room Cost)

Year 0 cash flow = -($7,000,000 + $20,000 + $3,000,000)

Year 0 cash flow = -$10,200,000

So, the incremental free cash flows associated with the new machine in year 0 is ($10,200,000).

Monsanto Company, a large chemical and fibers company, invested $37 million in state-of-the-art systems to improve process control, laboratory automation, and local area network (LAN) communications. The investment was not justified merely on cost savings but was also justified on the basis of qualitative considerations. Monsanto management viewed the investment as a critical element toward achieving its version of the future. What qualitative and quantitative considerations do you believe Monsanto would have considered in its strategic evaluation of these investments

Answers

Solution :

The investment which was made by the Monsanto Company had both qualitative as well as quantitative aspects. The quantitative aspect of the investment represents the strategic evaluation which relates to the investment in order to improve the process control and the laboratory automation. While improving the process control helps in controlling the working process of the machines and the human force which reduces the wastage to a large extent, it also increases the efficiency and it reduces the cost per unit.

The laboratory automation increases the efficiency of working and also increases the production. Strengthening the LAN network improves the organizations' communication and also reduces the unnecessary delays in the work saving cost. Improving the local area network provides qualitative improvement and it speeds up the work thus reducing the wastage of time and promotes effective communication.

Roland, Inc. provides residential painting services for three home building companies, Alpha, Beta, and Gamma, and it uses a job costing system for determining the costs for completing each job. The job cost system does not capture any cost incurred by Roland for return touchups and refinishes after the homeowner occupies the home. Roland paints each house on a square footage contract price, which includes painting as well as all refinishes and touchups required after the homes are occupied. Each year, Roland generates about one-third of its total revenues and gross profits from each of the three builders. Roland has observed that the builders, however, require substantially different levels of support following the completion of jobs. The following data have been gathered:Major refinishes Hours on job $70
Touchups Number of visits $180
Communication Number of calls $20
Builder Major Refinishes Touchups Communication
Alpha 80 150 360
Beta 35 110 205
Gamma 42 115 190
(a) Assuming that each of the three customers produces gross profits of $100,000, calculate the profitability from each builder after taking into account the support activity required for each builder.

Alpha

Beta

Gamma

Answers

Answer: See attachment

Explanation:

Based on the information provided, the question has been solved and attached.

Profitability for Alpha:

Revenue = $100,000

Cost = $39800

Profit = $60200

Profitability for Beta:

Revenue = $100,000

Cost = $26350

Profit = $73650

Profitability for Gamma:

Revenue = $100,000

Cost = $27440

Profit = $72560

Use the following stockholders' equity section of Marcy Company on December 31, 2004 to answer questions 45 through 50. Treat each question independent of the other questions - so your answer to question 46 should not be influenced by the answer to question 45, and so on:

Preferred Stock - 6% cumulative, $20 par value, 10,000 shares authorized, 5,000 shares issued and outstanding . .$100,000
Contributed Capital in excess of par value, Preferred Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000
Common Stock, $5 par value, 20,000 shares authorized, 10,000 shares issued and outstanding. . . . . . . . . . . . . . . . 50,000
Contributed Capital in excess of par value, Common Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450,000
Total Contributed Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $850,000
Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000
Total Stockholders' Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000,000

The average issue price per share of preferred stock must have been: _________

Answers

Answer:

$70.00

Explanation:

Average issue price per share of preferred stock = (Preferred stock capital + Contributed capital in excess of par value, Preferred Stock) / Number of shares issues & outstanding

Average issue price per share of preferred stock = ($100,000 + $250,000) / 5,000 shares

Average issue price per share of preferred stock = $350,000 / 5,000 shares

Average issue price per share of preferred stock = $70.00

Consider the following information.
First Quarter Second Quarter
Unit Selling Price $15.00 $17.00
Total Units Sold 12,000 11,500
Labor Hours 10,000 9,500
Labor Cost/Hour $9.00 $10.00
Material Usage (lbs.) 5,000 7,500
Material Cost/lb. $12.00 $10.50
Other Costs $25,000 $30,000
a. Which quarter, first or second, had the higher labor productivity (output quantity per labor dollar input)?
b. Which quarter, first or second, had the higher material productivity (output quantity per material dollar input)?
c. Which quarter, first or second, had the higher total productivity (dollar output per total dollar input)?

Answers

Answer:

okay im going to try my best to help you  with this question

one with hire labor production i think its the first quarter

the second quarter had the higher material

the second quarter had the higer productivity  

i hope i didnt give you the wrong answers

Explanation:

Always accept a job offer before discussing its salary and benefits.

Answers

Answer:

Acepting he job before getting inforamtion about it is not a good way to geta job. That is how you get a bad job that doesnt have a good salary or many beefits.

Sorry for the spelling erros my computer is not working correctly

Thanks for the information! :)

Charles lives in Houston and runs a business that sells boats. In an average year, he receives $851,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $476,000; he also pays wages and utility bills totaling $281,000. He owns his showroom; if he chooses to rent it out, he will receive $71,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Charles does not operate this boat business, he can work as an accountant, receive an annual salary of $34,000 with no additional monetary costs, and rent out his showroom at the $71,000 per year rate. No other costs are incurred in running this boat business.
Implicit Cost
Explicit Cost
The salary Bob could earn if he worked as an accountant
The wholesale cost for the boats that Bob pays the manufacturer
The rental income Bob could receive if he chose to rent out his showroom
The wages and utility bills that Bob pays
Complete the following table by determining Bob's accounting and economic profit of his boat business.
Profit
(Dollars)
Accounting Profit
Economic Profit

Answers

Answer and Explanation:

The classification is as follows;

When bob worked as an accountant so he could earn the salary so this represent the implicit cost

The cost for the boats that bob paid to the manufactured represent the explicit cost

The rental income that received by bob represent the implicit cost

The wages and utility bills paid by bob represent the explicit cost

The Accounting profit is

= Revenue - explicit cost

= $851,000 - $476,000 - $281,000

= $94000

And, the Economic profit  is

= Accounting profit - implicit cost

= $94,000 - $71,000 - $34,000

= -$11,000

Using the following information, prepare a bank reconciliation for Oriole Company for July 31, 2022. a. The bank statement balance is $3,760. b. The cash account balance is $4,000. c. Outstanding checks totaled $1,450. d. Deposits in transit are $1,600. e. The bank service charge is $63. f. A check for $85 for supplies was recorded as $58 in the ledger.

Answers

Answer:

See photo. I am a professional so my format may be different than what school tells you. Hopefully you can use this information.

Explanation:

Use the following information to prepare the July cash budget for Pinkie Pie Company for July 31, 2021.
a.) Beginning cash balance on July 1: $55,000.
b.) Cash receipts from sales: 10% is collected in the month of sale, 50% in the next month, and 40% in the second month after sale. Sales amounts are: May (actual), $1,700,000; June (actual), $1,000,000; and July (budgeted), $1,500,000.
c.) Payments to suppliers for merchandise purchases: 85% in the month of purchase and 15% in the month following purchase. Purchases amounts are: June (actual), $590,000; and July (budgeted), $770,000.
d.) Budgeted cash disbursements for salaries in July: $297,000.
e.) Budgeted depreciation expense for July: $10,000.
f.) Other cash expenses budgeted for July: $190,000.
g.) Cash dividends to be paid in July: $70,000.

Answers

Answer:

Pinkie Pie Company

Cash Budget for the month of July:

Beginning balance                  $55,000

Expected cash receipts        1,330,000

Cash in hand                      $1,385,000

Payments:

Purchases                             $743,000

Salaries                                   297,000

Other cash expenses             190,000

 Cash Dividends                        70,000

Expected cash payments $1,300,000

Expected cash balance        $85,000

Explanation:

a) Data and Calculations:

a. Beginning cash balance on July 1: $55,000.

b. Cash receipts from sales:  May (acetual)   June (actual)  July (budgeted)

Sales                                        $1,700,000      $1,000,000    $1,500,000

10% month of sale                                                                        150,000

50% in the next month                                                               500,000

40% in the second month                                                          680,000

Total expected cash collections in July                                $1,330,000

c. Payments on merchandise purchases:

                                               June (actual)    July (budgeted)

Purchases                                 $590,000        $770,000

85% in the month                                               654,500

15% in the following month                                  88,500

Total payment for purchases                          $743,000

d. Salaries in July: $297,000

f. Other cash expenses $190,000

 g. Cash Dividends $70,000

Bonita Industries financed the purchase of a machine by making payments of $29000 at the end of each of five years. The appropriate rate of interest was 8%. The future value of one for five periods at 8% is 1.46933. The future value of an ordinary annuity for five periods at 8% is 5.86660. The present value of an ordinary annuity for five periods at 8% is 3.99271. What was the cost of the machine to Bonita?

Answers

Answer:

Cost of Machine today = $115788.59

Explanation:

To calculate the cost of machine to Bonita in today's term, we need to calculate the present value of annuity. We know that the payments made are in form of an ordinary annuity because the amount of payment is fixed (29000) , the payments are made after equal interval of time (at the end of each year) and are made in finite number (5 years).

We will multiply the annuity payment per period by the PV of ordinary annuity factor as provided in the question to calculate the value or price of machine today.

Cost of Machine today = 29000 * 3.99271

Cost of Machine today = $115788.59

The charter of Vista West Corporation specifies that it is authorized to issue 209,000 shares of common stock. Since the company was incorporated, it has sold a total of 146,000 shares (at $16 per share) to the public. It has bought back a total of 12,000. The par value of the stock is $5. When the stock was bought back from the public, the market price was $22. Determine the authorized shares.

Answers

Answer:

209,000 shares

Explanation:

The company is authorized to issue 209,000 shares which represent maximum shares that can be issued. Authorized shares is the maximum number of shares a company can issue and this is stated in the corporate charter.

Charise is considering how much to charge for her small business’s products. Charise is involved in

Group of answer choices

Answers

Answer:

charity

Explanation:

Which actions can you take to bring back your computer from sleep mode?
(you can choose more than one answer)

Check the power supply.
Press any key on the keyboard.
Reboot the computer.
Move the mouse around.
Click any button on the mouse.

Answers

Move the Mouse around and Press any key on the keyboard. Well I’m just referring to that because that’s how my computer works
Move the mouse around

Given a reserve requirement of 12.5%, a bank currently meets their reserve requirements with $15,000,000 in excess reserves. If the reserve requirement increases and the bank must hold an additional $1,800,000, by how many percentage points did the reserve requirement increase

Answers

Answer:

1.5%

Explanation:

Reserves is the total amount of a bank's deposit that is not given out as loans  

Required reserves is the percentage of deposits required of banks to keep as reserves by the central bank  

Excess reserves is the difference between reserves and required reserves

Total increase in reserve = $15,000,000 + $1,800,000=  $16,800,000

New excess reserve = total increase in reserve x initial reserve requirement) / initial excess reserve

($16,800,000 x 12.5%) / $15,000,000 = 14%

Increase in reserve requirement = 14% - 12.5% = 1.5%

your team is working on a project due at the end of the quarter. you propose a timeline that some of your teammates disagree with because many milestones conflict with their other work. what would you do? A propose revising the timeline as a group to account for scheduling conflict. B offer time management techniques so they can stay on schedule. C suggest pushing back the projects deadline one week to help avoid some scheduling conflicts. D politely explain that this schedule is necessary to get the project completed on time. E suggest that your teammates send their schedule to you so you can revise the timeline​

Answers

i would do either D or E

Your team is working on a project due at the end of the quarter. You propose a timeline that some of your teammates disagree with because many milestones conflict with their other work. Propose revising the timeline as a group to account for scheduling conflict is suggested in this situation. Option A is the correct answer.

When faced with disagreement from teammates regarding the proposed timeline, a productive approach is to propose revising the timeline as a group to address scheduling conflicts. Option A is the correct answer.

Here's a step-by-step explanation:

1. Gather feedback: First, listen to your teammates' concerns and understand the specific conflicts they are facing. This will help you grasp the extent of the issue and identify areas where adjustments can be made.

2. Collaborate: Initiate a discussion with your team to collectively revise the timeline. Encourage open communication and active participation from all members. By involving everyone, you can ensure that the revised timeline considers the availability and commitments of each team member.

3. Identify and prioritize milestones: Review the project's milestones and evaluate their dependencies and deadlines. Identify any milestones that can be shifted or rearranged to minimize conflicts. It may be necessary to reprioritize tasks to accommodate the availability of team members.

4. Adjust the timeline: Based on the inputs and discussions, modify the timeline accordingly. Make sure to balance the requirements of the project and the availability of your team members. Consider incorporating buffer time between milestones to allow for unexpected delays or conflicts that may arise in the future.

5. Communicate the revised timeline: Once the timeline is revised, ensure that all team members are aware of the changes. Clearly communicate the rationale behind the revisions and the impact on the overall project. This will help foster understanding and buy-in from all members.

6. Regularly review and adapt: As the project progresses, regularly review the timeline to ensure it remains feasible and adaptable to any new conflicts or challenges that may arise. Continuously communicate and collaborate with your team to address any further scheduling issues that may arise.

Learn more about Conflict here:

https://brainly.com/question/26083560

#SPJ2

Lenci Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 5,120 units, but its actual level of activity was 5,070 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May:
Data used in budgeting:
Fixed element per month Variable element per unit
Revenue - $ 40.30
Direct labor $ 0 $ 6.20
Direct materials 0 16.40
Manufacturing overhead 42,200 2.00
Selling and administrative expenses 23,400 .90
Total expenses $ 65,600 $ 25.50
Actual results for May:
Revenue $ 198,510
Direct labor $ 29,265
Direct materials $ 80,965
Manufacturing overhead $ 51,905
Selling and administrative expenses $ 23,380
The spending variance for manufacturing overhead in May would be closest to:_________

Answers

Answer:

$435

Explanation:

Spending variance for manufacturing overhead = Manufacturing overheads as per Flexible budget - Actual Manufacturing overheads incurred

Spending variance for manufacturing overhead = [$42,200+$2.00*5,070] -  $51,905

Spending variance for manufacturing overhead = $52,340 - $51,905

Spending variance for manufacturing overhead = $435

So, the spending variance for manufacturing overhead in May is closest to $435.

What are some tasks commonly performed in Facility and Mobile Equipment Maintenance jobs? Check all that apply.

testing vehicles to identify problems
cleaning vehicles and equipment
analyzing the flow of traffic
communicating with customers
steering and navigating vehicles
documenting information

Answers

Answer:

A,B,D,F

is correct

Explanation:

XYZ is considering two proposed machinery investments. Proposals A and B each cost $600,000, have 6-year lives, and have expected total cash flows of $750,000. Proposal A is expected to provide equal annual net cash flows of $125,000 while the net cash flows for Proposal B are as follows: Year 1 $250,000 Year 2 $200,000 Year 3 $150,000 Year 4 $ 75,000 Year 5 $ 50,000 Year 6 $ 25,000 Determine the cash payback period for Proposal A and B. Show all calculations. Rounds answers to 1 decimal place.

Answers

Answer:

Payback period for Proposal A =  4.8 years

Payback period for Proposal B =  3 years

Explanation:

Calculation of Payback period for Proposal A:

Year Investment Net Annual Cash Flow  

0              $600,000                $125,000  

1                                                 $125,000

2                                                $125,000

3                                                $125,000

4                                                $125,000

5                                                $125,000

6                                                $125,000

Cash Payback period = Cost of Capital investment/Net Annual cash flow

Cash Payback period = $600,000/$125,000

Cash Payback period =  4.8 years

Calculation of Payback period for Proposal B:

Year  Investment   Net Annual Cash Flow   Cumulative Net Cash Flows

0       $600,000              $250,000                      $250,000

1                                       $200,000                       $450,000

2                                      $150,000                        $600,000

3                                      $75,000                          $675,000

4                                      $50,000                          $725,000

5                                      $25,000                          $750,000

6

The Cumulative net cash flow of $600,000 is equal to investment cost of $600,000 for 3 years. So, payback period for proposal B is 3 years.

The following facts relate to Coronado Corporation.
1. Deferred tax liability, January 1, 2020, $20,200.
2. Deferred tax asset, January 1, 2020, $0.
3. Taxable income for 2020, $95,950.
4. Pretax financial income for 2020, $202,000.
5. Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $242,400.
6. Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $35,350.
7. Tax rate for all years, 20%.
8. The company is expected to operate profitably in the future.
Compute income taxes payable for 2020:
Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Prepare the income tax expense section of the income statement for 2020, beginning with the line "Income before income taxes." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Answers

Answer: See explanation

Explanation:

a. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020.

Debit Income Tax Expense $40400

Debit Defered Tax Asset $7070

Credit Income Tax Payable $19190

Credit Defered tax liability $28280

(To record income tax expense and defered tax/liability).

Note that:

Income Tax Expense was gotten as:

= $202,000 × 20%

= $202000 × 0.2

= $40,4000

Income Tax Payable was gotten as:

= $95,950 × 20%

= $95950 × 0.2

= $19,190

2. Prepare the income tax expense section of the income statement for 2020.

Income statement for year ended 31 December 2020

Income before tax = $202000

Less: Income Tax expense - Current = $19190

Less: Income Tax expense - Defered = $21210

Net income = $161600

In 2001, HP acquired Compaq. The merger had an impact on two different markets: desktop PCs and servers. Pre-merger market shares in the desktop PC market were as follows: Dell, 13; Compaq, 12; HP, 8; IBM, 6; Gateway, 4. Pre-merger market shares in the servers market were as follows: IBM, 26; Compaq, 16; HP, 14; Dell, 7. Source: Bank of America report, October 2001. Data for 2001Q2.
(a) Determine the value of HHI in each market before the merger.
(b) Assuming market shares of each firm remain constant, determine the value of HHI after the merger.
(c) Considering the values determined above and the DoJ merger guidelines, was the Department of Justice right in allowing the merger to take place?

Answers

Answer:

HP and Compaq

Value of HHI          Desktop PC         Servers

a) Before the merger   429                   1,177

b) After the merger      621                   1,616

c) Considering the HHI values determined in the various markets above (before and after the merger) and the DoJ merger guidelines, the DoJ seems to be right in allowing the merger to take place with respect to the desktop PC market as the 200 basis point mark was not reached.  This is not the same with respect to the servers market, where the combined value of HP Compaq exceeds the 200 basis point mark.

Explanation:

a) Data and Calculations:

Pre-merger market shares in the desktop PC and servers markets:

           Desktop PC   Servers

               Market       Market

Dell,            13                 7

Compaq,    12               16

HP,              8                14

IBM,            6               26

Gateway,   4                  0

HHI in the desktop PC market = 13² + 12² + 8² + 6² + 4²

= 169 + 144 + 64 + 36 + 16

= 429

HHI in the servers market = 7² + 16² + 14² + 26² + 0² =

= 49 + 256 + 196 + 676

= 1,177

After the merger:

                Desktop PC   Servers

                    Market       Market

Dell,                   13                 7

HP Compaq    20               30

IBM,                   6               26

Gateway,          4                  0

HHI in the desktop PC market = 13² + 20² + 6² + 4²

= 169 + 400 + 36 + 16

= 621

HHI in the servers market = 7² + 30² + 26² + 0²

= 40 + 900 + 676

= 1,616

                         

Value of HHI          Desktop PC         Servers

a) Before the merger   429                   1,177

b) After the merger      621                   1,616

Market power of Compaq and HP in the desktop PC market before the merger = 208/429 = 48.5% (144 + 64)/429

Market power of HP Compaq in the desktop PC market after the merger = 400/621 = 64.4%

Increase in basis point (HHI) = 192 (621 = 429)

Market power of Compaq and HP in the servers market before the merger = 452/1,177 = 38.4% (256 + 196)/1,177

Market power of HP Compaq in the servers market after the merger = 900/1,616 = 55.7%

Increase in basis point (HHI) = 439 (1,616 - 1,1177)

explain the topic 'market structure' in economics​

Answers

Answer:

Market structure, in economics, refers to how different industries are classified and differentiated based on their degree and nature of competition for goods and services. It is based on the characteristics that influence the behavior and outcomes of companies working in a specific market.

Explanation:

I hope this helps, correct me if I am wrong :) DO NOT CLICK ON RANDOM LINKS AS THEY CONTAIN VIRUSES!

Answer:

Market structure refers to characteristics or properties of marketing economy.

They are mainly represented by curves such as monopolistic characteristics which comprises of perfect and imperfect Monopoly.

And oligopolistic factor.

You have just been elected to public office and you have been informed that the government does not have money to pay all of its bills.
You have been told that if you were to cut the marginal tax rate, tax revenue would actually increase. Is this true and if so, what would
be the reason for this?
Choose one

Answers

Answer:

Yes. But I actually don't know the reason

please if you get the answer, please

text me. sorry for bothering you

The partnership of Hendrick, Mitchum, and Redding has the following account balances: Cash $ 53,000 Liabilities $ 38,000 Noncash assets 138,000 Hendrick, capital 98,000 Mitchum, capital 73,000 Redding, capital (18,000 ) This partnership is being liquidated. Hendrick and Mitchum are each entitled to 40 percent of all profits and losses with the remaining 20 percent going to Redding. What is the maximum amount that Redding might have to contribute to this partnership because of the deficit capital balance

Answers

Answer:

$45,600

Explanation:

Particulars                                                                         Amount

Redding capital                                                                $18,000

Potential loss of non-cash Assets (138,000*20%)         $27,600

Maximum amount contributed by Redding, Capital  $45,600

So, the maximum amount that Redding might have to contribute to this partnership because of the deficit capital balance is $45,600.

The Wiz Co. owes $60 to its bondholders for the payment of principal and interest. The company expects to have a cash flow of $136 if the economy continues as it is but that cash flow will decrease to $54 if the economy enters a recession. Should the company ever face the real possibility of bankruptcy, it will incur legal and other fees of $30. What amount will the bondholders be paid in the case of a recession

Answers

Answer:

$24

Explanation:

Cashflow If economy as it is = $136

Cashflow if economy in recession = $54

In the event that the company goes bankrupt due to the recession, it will have to pay $30 in legal and other costs, so the company will set aside $30.

So, Bondholders payment = Cashflow in recession - legal & other cost

= $54 - $30

= $24

Hence, the bondholders will be paid $24 in the case of a recession.

What is the primary characteristic that differentials a zero based budget from a conventional budget. A. A zero based budget does not take inflation into account. B. The zero based budget requires managers to re-justify every planned expenditure every year. C. A zero based budget rolls historical data forward. D. A zero based budget uses a fixed volume growth rate.

Answers

Answer:

B. The zero based budget requires managers to re-justify every planned expenditure every year.

Explanation:

A zero based budget is one that does not take into account historical data when it is considering the present year budget. Each departmental requirement is re-evaluated and a new amount is assigned as budget for the year.

However conventional budgets carryover the previous year's expenses as a base data point. This results in similar budgeting across years.

So the main difference between the two is that zero based budget requires managers to re-justify every planned expenditure every year.

rr Co. adopted the dollar-value LIFO inventory method on December 31, Year 12.Farr's entire inventory constitutes a single pool. On December 31, Year 12, the inventorywas $480,000 under the dollar-value LIFO method. Inventory data for Year 13 are asfollows:12/31/13 inventory at year-end prices$660,000Relevant price index at year end (base year Year 12)110Using dollar value LIFO, Farr's inventory at December 31, Year 13 isa.$528,000.b.$612,000.c.$600,000.d.$660,000

Answers

Answer:

b. $612,000

Explanation:

Dec 31, 2013 inventory = $660,000

Value of Dec 31, 2013 inventory at base year (2012) prices = $660,000/110*100 = $600,000

The real-dollar quantity increase in inventory = ($600,000 - $480,000) = $120,000

Value of this real dollar quantity increase in inventory at Dec 31, 2013 prices=   $120,000 * 110/100 = $132,000 (LIFO layer to the Dec 31, 2012 inventory)

Value of Dec 31, 2013 inventory = Dec 31, 2012 inventory + The value of LIFO layer formed

Value of Dec 31, 2013 inventory = $480,000 + $132,000

Value of Dec 31, 2013 inventory = $612,000

Whistle Works sells each whistle for $12. It takes 3 ounces of metal to produce each whistle at a cost of $0.50 per ounce. They prefer to have 10% of materials required for the following month's production in ending inventory as well. How many ounces of direct materials does Whistle Works need to purchase in October to meet production needs

Answers

The question is incomplete. The complete Question is as follows,

Whistle Works manufacturers safety whistle keychains. They have the following information available to prepare their master budget:

Units to be produced

October 4,500

November 4,750

December 5,200

Whistle Works sells each whistle for $12. It takes 3 ounces of metal to produce each whistle at a cost of $0.50 per ounce. They prefer to have 10% of materials required for the following month's production in ending inventory as well. How many ounces of direct materials does Whistle Works need to purchase in October to meet production needs?

A) 4,500 ounces

B) 13,575 ounces

C) 13,425 ounces

D) 4,525 ounces

Answer:

Purchases = 13575 ounces

Option B is the correct answer

Explanation:

To calculate the purchases of material for October, we first need to calculate the inventory needed to produce the desired number of units in October along with the desired ending inventory and adjust it for the available opening inventory at start of October.

Material available at Start - October = 10% * 4500 units * 3 ounces per unit  Material available at Start - October = 1350 ounces

Material required at end - October = 10% * 4750 units * 3 ounces per unit

Material required at end - October = 1425 ounces

Material required to produce required units in October = 4500 * 3 = 13500

Production  =  Opening Inventory  +  Purchases  -  Closing Inventory

13500  =  1350  +  Purchases  -  1425

13500 + 1425 - 1350  =  Purchases

Purchases = 13575 ounces

Swifty Company manufactures and sells three products. Relevant per unit data concerning each product are given below. Product A B C Selling price $9 $14 $18 Variable costs and expenses $6 $12 $15 Machine hours to produce 2 1 2 Compute the contribution margin per unit of limited resource (machine hours) for each product. (Round contribution margin per unit to 2 decimal places, e.g. 1.50.) Product A Product B Product C Contribution margin per unit of limited resource $ $ $ Assuming 3,000 additional machine hours are available, which product should be manufactured

Answers

Answer:

Product A = 1.50

Product B =  2

Product C =  1.50

Explanation:

Contribution margin = (price - variable cost) /  total number of hours

Product A = ($9 - $6) / 2 = 1.50

Product B = ($14 - $12) / 1 = 2

Product C = ($18 - $15) / 2 = 1.50

Product B would be produced because its contribution margin is the highest

Terry Wade, the new controller of Hellickson Company, has reviewed the expected useful lives and salvage values of selected depreciable assets at the beginning of 2015. His findings are as follows.
Date Accumulated Depreciation Useful life in Years Salvage Value
Type of Asset Acquired Cost 1/1/15 Old Proposed Old Proposed
Building 1/1/09 $806,700 $115,410 40 50 $37,300 $50,210
Warehouse 1/1/10 114,000 21,940 25 20 4,300 19,610
All assets are depreciated by the straight-line method. Hellickson Company uses a calendar year in preparing annual financial statements. After discussion, management has agreed to accept Terry’s proposed changes.
1) Compute the revised annual depreciation on each asset in 2015. ( Building and Warehouse)
2) Prepare the entry to record depreciation on the building in 2015. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Answers

Answer: See explanation

Explanation:

1) Compute the revised annual depreciation on each asset in 2015.

The revised annual depreciation for building will be:

= ($806700 - $115410 - $50210)/44

= $64180 / 44

= $14570

The revised annual depreciation for warehouse will be:

= ($114000 - $21940 - $19610) / 15

= $72450 / 15

= $4830

2) Prepare the entry to record depreciation on the building in 2015.

Debit Depreciation expense $14570

Credit Accumulated Depreciation- Building $14570

(To record Depreciation expense)

For each of the three independent situations below determine the amount of the annual lease payments. Each describes a finance lease in which annual lease payments are payable at the beginning of each year. Each lease agreement contains an option that permits the lessee to acquire the leased asset at an option price that is sufficiently lower than the expected fair value that the exercise of the option appears reasonably certain.

Situation 1 Situation 2 Situation 3
Lease term (years) 5 10 4
Lessor?s rate of return 10% 11% 9%
Fair value of leased asset $62,000 $421,000 $186,000
Lessor?s cost of leased asset $51,000 $421,000 $146,000
Bargain purchase option:
Option price $11,000 $51,000 $23,000
Exercisable at end of the year: 5 5 3

Required:
Determine the annual lease payments for each situation:

Answers

Answer:

a. The annual lease payment for Situation 1 is $12,774.47.

b. The annual lease payment for Situation 2 is $71,486.40.

c. The annual lease payment for Situation 3 is $57,412.37.

Explanation:

The annual lease payments can be calculated using the formula for calculating loan amortization as follows:

P = (A * (r * (1 + r)^n)) / (((1+r)^n) - 1) .................................... (1)

Where,

For Situation 1

P = Annual lease payments = ?

A = Fair value of leased asset = $62,000

r = interest rate = Lessor’s rate of return = 10%, or 0.01

n = Number of years of lease term = 5

Substituting all the figures into equation (1), we have:

P = ($62,000 * (0.01 * (1 + 0.01)^5)) / (((1+0.01)^5) - 1)

P = $12,774.47

Therefore, the annual lease payment for Situation 1 is $12,774.47.

For Situation 2

P = Annual lease payments = ?

A = Fair value of leased asset = $421,000

r = interest rate = Lessor’s rate of return = 11%, or 0.11

n = Number of years of lease term = 10

Substituting all the figures into equation (1), we have:

P = ($421,000 * (0.11 * (1 + 0.11)^10)) / (((1 + 0.11)^10) - 1)

P = $71,486.40

Therefore, the annual lease payment for Situation 2 is $71,486.40.

For Situation 3

P = Annual lease payments = ?

A = Fair value of leased asset = $186,000

r = interest rate = Lessor’s rate of return = 9%, or 0.09

n = Number of years of lease term = 4

Substituting all the figures into equation (1), we have:

P = ($186,000 * (0.09 * (1 + 0.09)^4)) / (((1 + 0.09)^4) - 1)

P = $57,412.37

Therefore, the annual lease payment for Situation 3 is $57,412.37.

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