A merger is when a new legal entity is formed by a combination or consolidation of two firms.
Business transactions known as mergers occur when the ownership of one company or business organization is transferred to, or combined with, another firm or business organization.
Through a merger, two distinct companies become one new legal entity. Since it's uncommon for two comparable businesses to benefit equally by pooling their resources and personnel, including their CEOs, true mergers are uncommon. A merger of equals, as the name implies, often comprises businesses of the same size. When two businesses merge, the stock of each is ceded, and fresh equity shares are issued for the new company.
Companies or assets are consolidated through mergers which are done to spur growth, obtain competitive advantages, expand market share, or change supply chains.
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prince company had cash sales of $95,400, credit sales of $84,125, sales returns and allowances of $2,150, and sales discounts of $3,925. prince’s net sales for this period equal:
Prince Company's net sales for this period will be equal to $173,450.
What are the net sales?The net sales of an entity for a period are the gross sales (cash and credit) minus the sales returns, allowances, and discounts.
The net sales are used to compute the gross profit after subtracting the cost of goods sold for the period.
From the gross profit, the net income is determined after deducting all the other expenses and including all the other incomes.
We can compute Prince's net sales for the period as follows:
Cash sales = $95,400
Credit sales = 84,125
Sales returns (2,150)
Sales discounts (3,925)
Net sales = $173,450
Thus, for the period, Prince will record net sales of $173,450.
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the following list includes temporary accounts from the december 31 adjusted trial balance of emiko company. use these normal account balances to journalize closing entries.
Journalizing the closing entries from the December 31 Adjusted Trial Balance for Emiko Company using the temporary accounts is as follows:
Closing Journal Entries:Debit Retained Earnings
Credit Dividends $33,000
Debit Sales $529,000
Credit Income Summary $529,000
Debit Income Summary $17,500
Credit Sales returns and allowances $17,500
Debit Income Summary $5,000
Credit Sales discounts $5,000
Debit Income Summary $213,300
Credit Cost of goods sold $213,300
Debit Income Summary $49,700
Credit Sales salaries expense $49,700
Debit Income Summary $15,000
Credit Utilities expense $15,000
Debit Income Summary $39,000
Credit Selling expenses $39,000
Debit Income Summary $105,000
Credit Administrative expenses $105,000
What are closing entries?Closing entries are the period's end journal entries to close temporary accounts to the income summary and the retained earnings.
Temporary accounts include revenues, expenses, net income or loss, and dividends.
The net result of the income summary is also closed to the retained earnings.
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Question Completion:Dividends $33,000
Sales $529,000
Sales returns and allowances $17,500
Sales discounts $5,000
Cost of goods sold $213,300
Sales salaries expense $49,700
Utilities expense $15,000
Selling expenses $39,000
Administrative expenses $105,000
compute the total cost of owning the car for five years. for simplicity, the cost of owning the car will be comprised of two components 1) the five year cost to own the car which is its depreciation in value after 5 years and 2) the cost of gas to drive the car over the five
According to this study, the average five-year depreciation rate of vehicles in the United States is approximately 50.2% of their initial value.
What is Total cost?Total fixed costs are the sum of all a company's consistent, non-variable expenses. Assume a company pays $10,000 per month for office space, $5,000 per month for machinery, and $1,000 per month for utilities. In this case, the total fixed costs for the company would be $16,000. In its most basic form, total cost (TC) refers to all of the costs associated with producing something or engaging in an activity. Total cost in economics is made up of variable costs plus fixed costs. Variable costs (VC) are costs that vary depending on how many goods you purchase or how much service you use.To learn more about total cost, refer to:
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in melinda company, total materials costs are $40,000, and total conversion costs are $56,040. equivalent units of production are materials 10,000 and conversion costs 12,000.
Materials cost per unit is $3.55
Conversion cost per unit is $4.5
Total manufacturing cost per unit is $8.05
What is Manufacturing cost ?
The total cost of all resources used to produce a product is known as the manufacturing cost. Direct costs for materials, direct labor, and manufacturing overhead are the three subcategories of manufacturing costs. It affects the overall cost of delivery.
The raw materials known as "direct materials" are those that are used to create the final product. In order to maintain a deliverable product, manufacturing uses a chain of processes to add value to raw materials. Raw materials can be subjected to a variety of processes, including welding, cutting, and painting. It's critical to distinguish between direct and indirect materials.
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If casey bought 16 cotton t-shirts last year when her income was $40,000 and she buys 14 cotton t-shirts this year when her income is $45,000, then for casey cotton t-shirts are?.
Cotton t-shirts are inferior goods for Casey.
In economics, goods can be classified based on their consumption and demand. Inferior goods refer to goods whose consumption decreases with an increase in income. When the income increases, the consumer reduces the consumption of inferior goods and shifts to superior goods.
With an increase in income, there should have been an increase in the number of cotton t-shirts bought by Casey. But as we can see, the consumption of cotton t-shirts decreases with an increase in Casey's income. This means that Casey is no longer using cotton t-shirts and shifting her preference to other high-quality t-shirts. Thus, cotton t-shirts are inferior goods.
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company z is just starting to make a brand new product it has never made before. it has completed two units so far. the first unit took 18 hours to complete and the next unit took 14 hours. based only on this information, what would be the estimate of the learning percentage in this process?
The estimated percentage of learning is 77.7% in this process for company Z according to the learning curve theory
According to the learning curve theory, as output doubles, the time required to complete a task decreases by a fixed amount. In this problem, the output from the first unit as we produced the second unit, so we can estimate the learning percentage as (Unit 2 time)/(Unit 1 time) = 14/18. The Learning Curve Theory is based on the idea that the more a person repeats a process or activity, the better they become at it. This results in lower input costs and increased overall output.
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based on the dupont model an equity multiplier greater than 1 will produce a return on equity that is higher than the return on assets. what is the trade-off to this effect? multiple choice question. higher equity results in reduced financial flexibility. higher leverage results in higher probability of default. higher leverage results in lower probability of default.
How much of a company's assets are financed by equity as opposed to debt is determined by the equity multiplier. It is a sign of risk for investors.
What is equity multiplier?
The proportion of a company's assets that are financed by equity as opposed to debt is determined by a risk indicator called the equity multiplier. The formula for calculating it is to divide a company's total asset value by the sum of its shareholders' equity.
A successful business must make asset investments. Companies finance the purchase of assets by issuing debt, equity, or a mix of the two. The equity multiplier displays the percentage of total assets financed by shareholder equity. Investors use this ratio essentially as a risk indicator to gauge how indebted a company is.
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thom owes $7,800 on his credit card. the credit card carries an apr of 18.7 percent compounded monthly. if thom makes payments of $240 per month, how long will it take for him to pay off the credit card assuming that he makes no additional charges?
It would take around 44 months or 3 years and 8 months for him to pay off the credit card assuming that he makes no additional charges.
What is a credit card?A credit card is a small, rectangular piece of plastic or metal that is issued by a bank or other financial institution and enables its holder to borrow money to pay for goods and services at businesses that accept credit cards. Credit cards impose the requirement that cardholders repay the borrowed funds, plus any applicable interest and any additional agreed-upon charges, in full or over time, either by the billing date or at a later date.
Compared to other consumer loan types, credit cards typically have a higher annual percentage rate (APR).
Let the time taken be t for him to pay off the credit card then we have
$7,000 = $220{[1 − 1/(1 + .183/12)^t]/.183/12}
t = 43.87 months
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[6]
2 Mohammed owns a bakery. He makes bread and cakes. He
employs three workers who help him mix the dough for the bread
serve customers. Mohammed has calculated that the 'added value'
and cakes, put the dough into tins, bake the bread and cakes, and
of his business is low. His customers complain when he tries to
increase his prices. We can buy the same bread and cakes at
lower prices,' they tell him.
Define 'added value'.
Added value can be defined as a set of characteristics related to the product or service that are perceived by the consumer and go beyond its core benefit.
Is the added value advantageous for companies?Yes, because by adding features to its products and services that increase their added value, the company is able to increase the value of products, create value for consumers, increase competitiveness and market positioning.
Some features that help increase the added value of a product are:
PackingAttendanceQualityBenefitsDesignDistributionCompanies must invest in characteristics that increase the value of the brand, to find out what they are, marketing studies and data analysis can be carried out to identify which are the psychosocial characteristics that consumers seek when consuming a particular product.
Therefore, added value can also be understood as value perceived by consumers who positively change their perception of a brand.
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ge competes in industries ranging from medical devices, to financial services, to turbine engines. ge's mixed strategy is an example of strategy.
GE competes in industries ranging from medical devices to financial services, to turbine engines. GE'smixed strategy is an example of corporate-level strategy. Thus, option A is correct.
What is a financial goal?A financial goal is an objective or plan for handling money. It is a function of how much money you make, spend, save, or invest. Pension planning is a type of financial goal that a person or individual might set for themselves based on their requirements.
A multi-tiered growth strategy used by management to establish, describe and accomplish particular goals of the business is known as a corporate-level strategy.
Therefore, option A is the correct option.
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The question is incomplete, the complete question is:
GE competes in industries ranging from medical devices, to financial services, to turbine engines. GE'smixed strategy is an example of ____ strategy.
A.corporate-level
B.long-term
C.business-level
D.functional
E.short-term
A good way for a company to determine what it does well and what it needs to improve is to conduct a.
A good way for a company to determine what it does well and what it needs to improve is to conduct is SWOT analysis. Thus the correct option is B.
What is the SWOT analysis?The acronym SWOT analysis stands for strength, weakness, opportunity, and threat which helps to determine or identify the internal and external environment of a Business.
SWOT analysis helps to highlight the strengths which are considered as an achievement of any business and to target weakness that helps in making improvements in the process of a company.
Therefore, option B is appropriate.
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Fixed manufacturing overhead costs are expensed as units sold as part of cost of goods sold under costing, and expensed in full with period costs under costing. True or false?.
It is true that fixed manufacturing overhead costs are expensed as units sold as part of cost of goods sold under absorption costing, and expensed in full with period costs under variable costing.
What is absorption costing?Total absorption costing is a way of accounting that includes all costs associated with producing a good or rendering a service. TAC takes into account all manufacturing overheads in addition to the expenses of labor and materials. Each cost center has a direct cost and an indirect cost.
What is variable costing?A cost concept in managerial accounting is variable costing. The cost of manufacturing overhead is incurred using this method as a product is being produced. The problem of absorption costing, which enables income to increase as production increases, is addressed by this. Managers are given the data they need to create a contribution margin income statement by variable costing, which paves the way for more efficient cost-volume-profit (CVP) analysis.
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The lower the market price,
A) the higher the rate of return
B) the riskier the investment
C) the safer the investment
D)the lower the taxes
in general, job satisfaction has more to do with nontask perceptions of work, such as feelings about co-workers, while organizational climate relates to perceptions of workload and the nature of the tasks performed.
The statement is false.
The required details about organizational climate is mentioned in below paragraph.
An employee's long-term perception of the workplace and company culture is referred to as the organizational climate. Climate can be compared to personality in that each organization has a distinct climate, just as each person has a distinct personality. An assortment of traits and qualities that employees perceive as being present represent this. These have an impact on how individuals behave at work in a variety of ways, including relationships, autonomy, and organizational structure.
The link that employees have with their company is strengthened when there is a favorable work environment.
Climate is not produced overnight; rather, it develops and is influenced through time as a result of a variety of interactions and experiences.
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jack is considering adding toys to his general store. he estimates the cost of toy inventory will be $4,200. the remodeling and shelving costs are estimated at $1,500. toy sales are expected to produce net annual cash inflows of $1,200, $1,500, $1,600, and $1,750 over the next four years, respectively. should jack add toys to his merchandise if he requires a three-year payback period? why or why not? multiple choice yes; because the payback period is 2.94 years yes; because the payback period is 2.02 years yes; because the payback period is 3.80 years no; because the payback period is 2.02 years no; because the payback period is 3.80 years
No, Jack should not add toys to his merchandise if he requires a three-year payback period because the payback period is 3.8 years.
Given,
Cost of inventory = $4,200
Shelving costs = $1,500
The calculations are done below-
Total outflows = Cost of the inventory + the shelving costs
Total outflows = $4,200 + 1,500
= $5,700
Amount recovered in the first 3 years = 1,200 + 1,500 + 1,600
Amount recovered in the first 3 years = 4,300
Payback period = [tex]3 + \frac{(5,700 - 4300)}{1750}[/tex]
Payback period = 3.8 years
No, Jack should not add toys to his merchandise if he requires a three-year payback period because the payback period is 3.8 years.
Hence, option E is correct.
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true or false: privately held firms tend to rely almost exclusively on the use of market value weights in the calculation of their weighted average cost of capital. true false
False, privately held firms do not tend to rely almost exclusively on the use of market value weights in the calculation of their weighted average cost of capital.
Market value weights for each lending element (equity, debt, etc.) must be used when determining the weighted-average of the returns expected by various capital providers, because market prices reflect the true economic assertion of each type of financing outstanding, whereas book values may not. Book value is the net value of a company's assets as shown on its balance sheet, and it is approximately equivalent to the total amount all shareholders would receive if the company were liquidated. Market value is a company's worth based on the total market value of its outstanding shares, also known as market capitalization.
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A bank loaned out $, part of it at the rate of per year and the rest at per year. If the interest received in one year totaled $, how much was loaned at.
A bank loaned out $17000, part of it at the rate of 7 % per year and the rest at 15 % per year. If the interest received in one year totaled $2000, Hence, $6875 was loaned at 7 %.
Let x be the amount loaned at 7%, in dollars
Then the amount loaned at 15% is the rest (17000 - x) dollars.
The interest yielded at 7% is 0.07x dollars.
The interest yielded at 15% is 0.15 × (17000 - x) dollars.
Your equation is
⇒ interest + interest = total interest, or
⇒ 0.07x + 0.15 (17000 - x) = 2000 dollars.
Simplify and solve for x
⇒ 0.07x + 0.15 × 17000 - 0.15 x = 2000
⇒ x = [tex]\frac{200-0.15(17000)}{0.07-0.15}[/tex] = 6875 dollars.
The amount loaned at 7% is $6875.
A loan is a financial instrument that enables a user to access a predetermined amount of money at the commencement of the transaction with the requirement that this amount, plus the negotiated interest, be returned within a given time frame. Regular payments are made to repay the debt.Interest is the cost of borrowing money or the fee you charge to lend it. Most frequently, interest is shown as an annual percentage of the loan amount. The interest rate for the loan is denoted by this proportion.Learn more about Interest, here
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randy has prepared a résumé that breaks down all his useful skills into categories that will let employers know what he can do for them. randy has created which of these résumés?
Since randy is preparing a résumé that breaks down all his useful skills into categories that will let employers know what he can do for them, then, the type of résumés that randy has created is known as a functional resume.
What is a functional resume?Basically, a functional resume is also known as a skills-based resume that highlights an applicant's skills and training and can be a good fit if you’re applying for specific jobs. This functional resume focuses on highlighting skills and qualifications instead of work experience.
The applicant;s abilities are grouped under various skill sections such as the Summary of Qualifications and Professional Skills where they explains what it is he/she can do. The main goal of a functional resume is to show the employer that you have the skills to get the job done even if such applicant lack a work experience.
Missing options" a. chronological resume b. functional resume c. combination resume d. skill/asset resume
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keith was put on probation for a string of customer complaints about his poor service and professionalism. keith’s supervisor was using power.
Keith was put on probation for a string of customer complaints about his poor service and professionalism. Keith's supervisor was using coercive power.
What is coercive power?This is the term that is sued to refer to the type of leadership trait that a person would have which would cause them to make use of threats as a way of getting people to comply with the orders that they are given.
The use of coercive power can be seen here by the fact that Keith would have to do as he is told because the period of probation may cause him to lose his job if he does not make changes to his attitude and the ways that he works.
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griffin service company, incorporated, was organized by bennett griffin and five other investors (that is, six in total). the following activities occurred during the year: received $90,000 cash from the six investors; each investor was issued 10,400 shares of common stock with a par value of $0.20 per share. signed a five-year lease for $180,000 for the right to use a building each year. purchased equipment for use in the business at a cost of $38,000; one-fourth was paid in cash and the company signed a note for the balance (due in six months). signed an agreement with a cleaning service to pay $320 per week for cleaning the corporate offices next year. received an additional contribution from investors who provided $5,000 in cash and land valued at $35,000 in exchange for 3,000 shares of stock in the company. lent $4,500 to one of the investors, who signed a note due in six months. bennett griffin borrowed $9,000 for personal use from a local bank, signing
The recording of the transactions in T-accounts for Griffin Service Company Incorporated is as follows.
Cash AccountAccount Titles Debit Credit
Common stock $12,480
Equipment $9,500
Additional Paid-in Capital $77,520
Common Stock $600
Additional Paid-in Capital $4,400
Note Receivable $4,500
Common StockAccount Titles Debit Credit
Cash $12,480
Cash $600
Additional Paid-in CapitalAccount Titles Debit Credit
Cash $77,520
Cash $4,400
Lease AssetsAccount Titles Debit Credit
Lease Liability $180,000
Lease LiabilityAccount Titles Debit Credit
Lease Assets $180,000
EquipmentAccount Titles Debit Credit
Cash $9,500
Note Payable $28,500
Note PayableAccount Titles Debit Credit
Equipment $28,500
LandAccount Titles Debit Credit
Additional Paid-in Capital $35,00
Note ReceivableAccount Titles Debit Credit
Cash $4,500
What are T-accounts?T-accounts is an accounting term to describe ledger accounts.
Ledger accounts summarize business transactions posted from the journal according to account classifications.
Transaction Analysis:Cash $90,000 Common stock $12,480 Additional Paid-in Capital $77,520
Lease Assets $180,000 Lease Liability $180,000
Equipment $38,000 Cash $9,500 Note Payable $28,500
Cash $5,000 Land $35,000 Common Stock $600 Additional Paid-in Capital $39,400
Note Receivable $4,500 Cash $4,500
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Question Completion:Record the effects of the transactions in the appropriate T-accounts.
clonex labs, incorporated, uses the weighted-average method in its process costing system. the following data are available for one department for october:
Equivalent units of production for Materials in October is 202,000 units. While the equivalent units of production for Conversion in October is 196,00 units.
Weighted-Average Method:
Equivalent Units of Convertible Materials Production Units transferred out amounted to 190,000
While Equivalent units in work-in-process inventory for conversion: 15,000 units × 80% = 12,000
While Equivalent units in work-in-process inventory for conversion: 15,000 units × 40% = 6,000
Equivalent units of production for Materials in October = 190,000+12,000 = 202,000 Equivalent units of production for conversion in October = 190,000+6,000 = 196,000.The equivalent unit of production can be described as the number of goods that have been successfully created through the activity of converting raw materials into goods according to product planning. The characteristic of process costing is that the company will only calculate the cost of production each time a product plan is made, namely based on the batch number.
What is the number of equivalent units is the result of production created by the company during its activities. The process costing system is used for companies that carry out continuous production activities based on homogeneous or standardized products.
Clonex Labs, Inc., uses the weighted-average method in its process costing system. The following data are available for one department for October: Percent Completed Units Materials Conversion Work in process, October 1 30,000 65 % 30 % Work in process, October 31 15,000 80 % 40 % The department started 175,000 units into production during the month and transferred 190,000 completed units to the next department. Required: Compute the equivalent units of production for October.
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Dominique is determined to sell her first million-dollar home for her real estate brokerage firm. She is certain that if she sells the home within sixty days, the broker will ask her to be the lead realtor for a new large condominium complex. Dominique’s belief demonstrates?.
Since she wants to sells the home within sixty days, the broker will ask her to be the lead realtor for a new large condominium complex, Dominique’s belief demonstrates that she is positive and knows about real estate business.
What is a real estate brokerage firm?A licensed real estate broker is known to be a firm who stands for both buyers and sellers of real estate owns and runs a real estate brokerage firm.
A principle broker, who frequently owns and runs it, typically employs other real estate brokers and agents to work under him.
Note that a lead realtor in the real estate sector is details on a potential buyer or seller. Targeting people who are already considering buying or selling a home is more effective than advertising to the broader public.
Based on the way Dominique’s is so positive that her plan will go, it goes a long way to show that she believes as well as knows the way the real estate business goes.
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factory work is hot, hard work. recently there have been verbal and almost physical fights on the floor. the company is considering using a personality test as part of the hiring process. should it?
Factory work is hot, hard work. Recently there have been verbal and nearly physical fights on the floor.
According to the resource dilution idea, one child's ability to accumulate resources starts to erode when parents have more children since their ability to offer resources is limited factory work . According to this belief, having fewer children is beneficial since siblings always vie for their parents' attention, money, and resources. physical fights Therefore, given the choice between the middle child, the youngest sibling, and the parents, it is likely that the middle sibling will experience resource dilution as the parents will give the youngest child more attention.
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the governor wants to impose a $1 excise tax on some good—he doesn't care which—but he does want to minimize the deadweight loss. the deadweight loss will be least when:
The deadweight loss will be the least when both demand and supply are inelastic.
The deadweight loss depends on both the inelasticity of supply and demand. The more the demand or supply is inelastic, the less will be the deadweight loss. The relation is inversely proportional.
The reason is that the quantity bought or sold varies less with the price. There would be no deadweight loss if demand and supply are perfectly inelastic.
As deadweight loss is directly proportional to the elasticity of supply and demand so it will increase if supply and demand become elastic.
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bpj stock is expected to earn 14.8 percent in a recession, 6.3 percent in a normal economy, and lose 4.7 percent in a booming economy. the probability of a boom is 20 percent while the probability of a normal economy is 55 percent. what is the expected rate of return on this stock? multiple choice 6.23 percent 6.72 percent 6.81 percent 7.60 percent 8.11 percent
The expected rate of return on the bpj stock is calculated to be 6.23 percent.
The expected rate of return can be said to be the weighted average of the expected returns according to the different economic conditions.
First, we determine the probability of the recession economy as follows;
Recession economy probability = 1 - 0.55 - 0.20 = 0.25
Now the expected rate of return can be calculated as follows;
E(R) = 0.20(-0.047) + 0.55(0.063) + 0.25(0.148)
E(R) = (-0.0094) + 0.03465 + 0.037
E(R) = 0.0623
Converting it into percentage as follows;
E(R) = 0.0623 × 100 = 6.23%
Therefore, the expected rate of return on the bpj stock is calculated to be 6.23%.
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Investor a intends to invest $850,000 in a new business. the financial projections show that during the first year of operations the business will generate $70,000 in profit for the year. in order to finance the investment, investor a has applied for a business loan with an interest rate of 7%. required: 1.) calculate the expected return on assets. (state as a percentage) 2.) state the cost of financing. (state as a percentage) 3.) should investor a invest in the new business? why or why not?
the expected return on assets will be = 1.24%
State the cost of financing = 98.86%
Investor a should invest in the existing business because it has a profitablity index greater than 1
Capital = $850000
Profit = $70000
Loan with 7% interest
Amount to be paid back = capital + interest
7% of $850000
= (7/100)×$850000
= 0.07× $8500
= $59500
Amount to be paid back = $850000 + $59500
= $909500
Expected return on the investment = (capital + profit) - Amount to be paid back
= (850000 + 70000) - 909500
= 920000 - 909500
= $10500
As percentage
(Expected return on the investment/ Amount invested) × 100%
= (10500/85000)×100%
= 0.01235 × 100%
= 1.24%
2) The cost of financing the project
Cost of financing the project = capital + interest
7% of $850000
= (7/100)×$850000
= 0.07× $8500
= $59500
Cost of financing the project = $850000 + $59500
= $909500
As percentage
(Cost of financing the project/(capita + profit)) × 100%
= (909500/(850000 + 70000))×100%
=(909500/920000)×100%
= (0.9886) ×100%
= 98.86%
3) profitability index = (initial investment + net present value)/ initial investment
= (850000 + 70000)/850000
= 920000 / 850000
= 1.08
Since the profitability index is greater than 1, it means the investment creates value therefore the investor can continue with the investment
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Paulette, quentin, and rosie each donated money to a charity. Paulette gave as much money as quentin and rosie gave together. If quentin had given three times more than he gave, he would have given $40 more than paulette. And if rosie had given $20 less, she would have given half as much as paulette. How much did paulette give?.
Paulette donated $200. The concept of natural numbers is used here.
What are natural numbers?The numbers used for counting and sorting are known as natural numbers in mathematics. Counting and ordering are done with the help of ordinal and cardinal numbers, respectively.In contrast, whole numbers are all natural numbers, including zero, as in 0, 1, 2, 3, 4, and so forth. All whole numbers and their negative equivalent are considered integers.Let p,q, and r are the amount donated by Paulette, Quentin, and Rosie respectively.
P = q+r ...(1)
3q = p+40
q=p+40/3 ....(2)
r-20 = p/2
r=p/2 + 20 .....(3)
Replacing (2) and (3) in (1). we get
p=p+40/3 + p/2 + 20
p = 2p + 80 +3p +120/6
6p = 5p +200
p= 200
Hence, Paulette donated $200.
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javier’s tune-up shop follows the revenue recognition principle. javier services a car on august 31. the customer picks up the vehicle on september 1 and mails the payment to javier on september 5. javier receives the check in the mail on september 6. when should javier show that the revenue was earned?
If javier services a car on august 31. the customer picks up the vehicle on september 1 . When javier should show that the revenue that was earned is Aug 31.
What is revenue earned?Revenue earned can be defined as the money a company or an organization makes or earn from the sales of goods or and services at a particular point in time.
According to GAAP which is general accepted accounting principles revenue can tend to be recognized only when a goods are delivered to a customers or when the revenue has been earned and not when a money or cash is received.
The revenue that was earned should be shown on Aug 31 based on the fact that Aug 231 was the day the service was performed.
Therefore when javier should show that the revenue that was earned is Aug 31.
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a company enters into a short futures contract to sell 5,000 bushels of wheat for 250 cents per bushel. the initial margin is $3,000 and the maintenance margin is $2,000. what price change would lead to a margin call? under what circumstances could $1,500 be withdrawn from the margin account?
For margin call, the price should rise by 20 cents to 270 cents OR $ 2.70.
The price should drop by 30 cents to $2.20 (220 cents).
What is margin?
Margin is the collateral how an investor must deposit with one‘s broker or transfer to encompass the credit risk that the holder poses to the broker or exchange. An investor may incur credit risk if they borrow money from a broker to buy financial instruments, borrow money to sell them short, or enter into a derivative contract. Whenever an investor buys an asset on margin, he or she borrows the balance from a broker. The initial payment is made to the real estate agent for the asset is referred to as buying on margin; the investor uses this same marginable bonds in their trading account as collateral.
A futures contract was purchased. Each contract contains 5000 bushels.
3000 is the initial margin.
2000 for the maintenance margin
Q.1, If the contract loses by 3000 - 2000 = 1000, a margin call will be issued.
Because the contract is for 5000 bushels, the price should rise by = 1000/5000 = $ 0.20 = 20 cents.
Because the agreement was sold at 250 cents per bushel, the margin call price should be = 250 + 20 = 270 cents.
Answer 1: For margin call, the price should be raised by 20 cents to 270 cents OR $ 2.70.
Q.2, To withdraw 1500, the contract value must increase by 1500.
Because the contract is for 5000 bushels, the price should decrease by = 1500/5000 = $0.30 or 30 cents.
The cost should be = 250 cents - 30 cents = 220 cents.
Answer 2: The price should be reduced by 30 cents to $2.20.
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jolly industries issued a $1.8 million note payable to beckman construction in exchange for construction services. similar notes have an interest rate of 12 percent. beckman construction plans to construct the building with equal costs over the life of the note, thus equaling three annual payments of $600,000. what should beckman record as their discount on notes payable when the note is issued?
When the note is issued, the Beckman company records a discount on notes payable of $358,902.
What exactly is equal cost?Equal-cost multi-path routing (ECMP) is a routing strategy in which packets to a single destination are forwarded over multiple best paths with equal routing priority.Because it is a per-hop local decision made independently at each router, multi-path routing can be used in conjunction with most routing protocols. When equal-cost multi-path (ECMP) is enabled on two or more routes leading to the same destination, traffic is routed using a hash-based balancing method. Through the use of multiple links, this approach has the potential to increase traffic throughput. You can set up to 16 routes.Therefore,
When the note is issued, the Beckman company records a discount on notes payable of $358,902.
The present value of three annual payments of $600,000 at 12% interest is $600,000 * 2.40183 (PVF-OA3, 12%)= $1,441,098.
Therefore, the discount is $1,800,000 - $1,441,098 = $358,902.
The complete question is:
Jolly Industries issued a $1.8 million note payable to Beckman Construction in exchange for construction services. Similar notes have an interest rate of 12 percent. Beckman Construction plans to construct the building with equal costs over the life of the note, thus equaling three annual payments of $600,000. What should Beckman record as their Discount on Notes Payable when the note is issued?
Assume that the PVF-OA3, 10% = 2.48685, PVF-OA3, 12% = 2.40183, PVF3, 10% = 0.75131, and PVF3, 12% = 0.71178.
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