Smith Company had the following on the dates indicated:
12/31/16 12/31/16
Total Assests $60,000 $330,000
Total Liabilities 35,000 25,000
Smith had no stock transactions in 2016; thus, the change in stockholders' equity for 2016 was due to net income and dividends. If dividends were $70,000, how much was Smith's net income for 2016? Use the accounting equation and the statement of retained earnings.
a. $220,000
b. $290,000
c. $150,000
d. $360,000
Answer: b. $290,000
Explanation:
Assets = Liabilities + Equity
Change in Assets = Change in liabilities + Change in Equity
560,000 - 330,000 = 35,000 - 25,000 + Change in equity
230,000 = 10,000 + Change in equity
Change in Equity = 230,000 - 10,000
= $220,000
Retained earnings = Change in equity + dividends
= 220,000 + 70,000
= $290,000
There are four resources and four jobs to be done. Assume there must be one-to-one matching between jobs and resources. The time required for each resource to do each job is as follows:
Job (Hours)
Resource A B C D
1 5 8 7 7
2 4 9 5 9
3 6 9 8 7
4 7 6 6 9
What is the optimal assignment of resources to jobs?
Multiple Choice
1 to A; 2 to C; 3 to B; 4 to D
1 to B; 2 to D; 3 to C; 4 to A
1 to C; 2 to B; 3 to A; 4 to D
1 to D; 2 to B; 3 to C; 4 to A
1 to A; 2 to C; 3 to D; 4 to B
Answer:
1 → A ; 2 → C ; 3 → D ; 4 → B
Explanation:
From the given information, the table can be better structured as follows:
Job (Hours)
Resource A B C D
1 5 8 7 7
2 4 9 5 9
3 6 9 8 7
4 7 6 6 9
From the table, the allocation of resources is based on the minimum number of jobs i.e. time(hours) required to do all four tasks appropriately.
These are 1 → A ; 2 → C ; 3 → D ; 4 → B
Then, the time taken by this process is = (5 + 5 + 7 + 6)
= 23 hours
Balance sheet and income statement data indicate the following:
Bonds payable, 6% (due in 15 years) $1,106,989
Preferred 8% stock, $100 par (no change during the year) $200,000
Common stock, $50 par (no change during the year) $1,000,000
Income before income tax for year $323,108
Income tax for year $96,932
Common dividends paid $60,000
Preferred dividends paid $16,000
Based on the data presented above, what is the times interest earned ratio (round to two decimal places)?
Answer:
the times interest earned ratio is 5.87 times
Explanation:
The computation of the times interest earned ratio is shown below:
Interest expense is
= Bonds payable × Interest rate
= $1,106,989 × 6%
= $66,419
Now
Times interest earned ratio is
= (Income before income tax for year + Interest expense) ÷ Interest expense
= ($323,108 + $66,419) ÷ ($66,419)
= 5.87 times
Hence, the times interest earned ratio is 5.87 times
If workers demand and receive higher real wages as a result of successful wage push, the cost of production __and the aggregate supply curve shifts
Select one:
a. falls; left
b. rises; left
c. falls, right
d. rises; right
= rises; left
Answer:
b. rises; left
Explanation:
Wage is the amount incurred in compensating workers for their services. It is a major expense for producers. Wage is one of the inputs in the manufacturing process; producers need labor services to continue operating. An increase in wages raises the production cost of the finished goods.
An increase in the cost of production may limit the quantity of output from the producers. As production cost increase, producers will require additional funds to finance the high production costs. Since resources are scarce in every industry, producers may opt to lower their output to avoid incurring high costs. A decrease in the production volume shifts the aggregate supply curve to the left.
Stocks A and B have the following data. Assuming the stock market is efficient and the stocks are in equilibrium, which of the following statements is correct?
A B
Price $25 $40
Expected growth 7% 9%
Expected return 10% 12%
A) The two stocks should have the same expected dividend
B) The two stocks could not be in equilibrium with the numbers given in the question
C) A's expected dividend is $0.50
D) B's expected dividend is $0.75
E) A's expected dividend is $0.75 and B's expected dividend is $1.20
Answer: E) A's expected dividend is $0.75 and B's expected dividend is $1.20
Explanation:
Using the Gordon growth model, you can calculate the expected dividend. The formula is:
Price = Expected dividend/ (expected return - expected growth)
Stock A expected dividend
25 = D/ (10% - 7%)
D = 25 * 3%
= $0.75
Stock B expected divided
40 = D / (12% - 9%)
D = 40 * 3%
= $1.20
Option A, C and B are therefore wrong.
Option E is correct.
Which of the following is/are inconsistent with the semi-strong form of the efficient market hypothesis? [I] Significant non-random price movements [II] Price overreaction to the public release of new information [III] Superior performance of professional traders [IV] Abnormal profits from illegal insider trading
A. I and III
B. II and IV
C. I and II
D. All are inconsistent with the semi-strong form of the EMH
Answer:
C. I and II
Explanation:
Semi strong form of efficient market hypothesis is a situation where stock prices adjust quickly to any new public information that circulates in the market. It assumes that stock prices incorporates the effect of all information which is publicly available in the market.
Which of the following is the basis for research surveys?
O problem-solving strategy
O scientific method
O trial and error
O pattern recognition
Answer:
c. pattern recognition
The answer is:
scientific methodAlex is a member of a corporate sales team who frequently speaks in front of groups as part of sales presentations. He has now been asked to give a toast at his brother's upcoming wedding. Alex is used to speaking on formal occasions, but is unsure of the best way to deliver a lighter speech. He decides to do a little research before the wedding. Select the statement that describes a strategy Alex could use to deliver a lighter speech.
a. Alex tells a story about his brother that causes his friends and family in the audience to laugh.
b. Alex periodically interrupts his remarks in order to deliver extremely embarrassing jokes about his brother.
c. Alex comprehensively prepares a long statement that he plans to deliver verbatim when it is time for his toast.
d. Alex delivers a detailed outline of the points he would like to address at the start of his toast.
Answer: Alex tells a story about his brother that causes his friends and family in the audience to laugh.
Explanation:
The statement that describes a strategy that Alex could use to deliver a lighter speech will be for Alex to tell a story about his brother that causes his friends and family in the audience to laugh.
It's but proper for Alex to tell an embarrassing joke about his brother. Also, preparing a long statement to be delivered when it's time to toast can make the event boring.
Therefore, the correct option is A.
Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1, Smiley Corporation issued $20,000,000 of five-year, 9% bonds at a market (effective) interest rate of 8%, receiving cash of $20,811,010. Interest is payable semiannually on April 1 and October 1.
a. Journalize the entry to record the issuance of bonds on April 1, Year 1. For a compound transaction, if an amount box does not require an entry, leave it blank.
b. Journalize the entry to record the first interest payment on October 1, Year 1, and amortization of bond premium for six months, using the straight-line method. (Round to the nearest dollar.) For a compound transaction, if an amount box does not require an entry, leave it blank.
c. Why was the company able to issue the bonds for $20,811,010 rather than for the face amount of $20,000,000?
The market rate of interest is the contract rate of interest.
Answer:
a. Journal Entry Debit Credit
Cash $20,811,010
Bonds Payable $20,000,000
Premium on Bonds Payable $811,010
(To record the issuance of bonds on April 1)
b. Journal Entry Debit Credit
Interest expense $818,899
Premium on Bonds payable $81,101
(811,010/5 * 6/12)
Cash $900,000
(To record the first interest payment on October 1,
Year 1, and amortization of bond premium)
c. Company can issue at price 20,811,010 instead of 20,000,000 because coupon rate of company is higher than the effective rate of interest so company is able to issue the bonds have been issued at a premium.
You are the general manager of a high end, full service restaurant. You just placed a $10,000 wine order for two upcoming events. As a thank you, the supplier just stopped by to give you a voucher for a two-night stay at an inn which included dinner and a tasting at the winery. Using the guidelines listed below, analyze the situation. What are your conclusions?
Ethical Guidelines from Textbook (Dopson)
Is it legal?
Any course of action that violates written law or company policies and procedures is wrong.
Does it hurt anyone?
Are benefits accruing to the manager that rightfully belong to the owner of the business? Discounts, rebates, and free products are the property of the business, not the manager.
Am I being honest?
Is the activity one that you can comfortably say reflects well on your integrity as a professional, or will the activity actually diminish your reputation?
Would I care if it happened to me?
If you owned the business, would you be in favor of your manager behaving in the manner you are considering? If you owned multiple units, would it be good for the business if all of your managers followed the considered course of action?
Would I publicize my action?
If you have trouble remembering the other questions, try to remember this one. A quick way to review the ethical merit of a situation is to consider whom you would tell about it. If you are comfortable telling your boss about the considered course of action, it is likely ethical. If you would prefer that your actions go undetected, you are probably on shaky ethical ground. If you wouldn’t want your action to be read aloud in a court of law (even if your action is legal), you probably shouldn’t do it.
Answer:
Follows are the solution to the given question:
Explanation:
When they look at the issue in which they start taking the voucher for just a two-night stop at such an accommodation which involves dinner or alcohol degustation, it could be seen as a move to give gratitude to both the supplier but also in breach of the policy and ethics standards established out from the issue. Any other kind of coupon, bribe, and another way of responding to just the supplier's request can be regarded as unethical as it may hinder or affect only judgment, and it also generates a conflict of interest in potential.
If we look at the second law, though, it states that every voucher and voucher earned in support of the role held by the individual belongs to a company, so that the vouchers earned by the manager become owned by the company. Concurrently, the approval of vouchers also questions the honesty or professional integrity of a director.
On consideration of all of the above reasons, the coupon must be rejected by the director or sent to the client because any voucher or coupon was its owner of the employer.
He's a cat in boots and he don't wear socks but he does his little business in a litter box yes his little business in a litterrrr boxxxxx his business that I will not dicuss (might not know where this is from )
Answer:
what the heck is this?? lol
Explanation:
A manager of a large retail firm is interested in knowing what the company's product costs are. Which of the following would be considered a product cost for the manager's company?
A) Direct materials.
B) Product design cost.
C) Office expenses.
D) Selling expenses.
E) Advertising expense.
Answer: Direct materials.
Explanation:
Product cost us referred to as a cost that used to incur production and used to make a particular product. The product cost. The product costs are made up of the direct labor, the direct materials, factory overhead and the production supplies.
Of the options given, the one that'll be considered a product cost for the manager's company will be Direct materials.
You purchase a $1,000 asset for $800. It pays $60 a year for seven years at which time you receive the $1,000 principal. Prove that the annual return on this investment is not 9 percent.
Answer:
Please check explanations for answer
Explanation:
Here, we want to prove that the ROI is not 9 percent per annum
The amount spent buying the item is $800
Now, there is $60 payment per year for 7 years
The total amount received as the total of payment per year after the 7 years will be;
7 * 60 = $420
Now, instead of the $800 paid initially, $1000 was returned as the principal
What this mean is that there is an extra $200 gain including the $420 that was paid earlier
So the total amount of gain on the investment is $200 + $420 = $620
Now, we proceed to calculate the percentage this was, relative to the amount invested
That would be;
620/800 * 100%
= 77.5%
So there was a 77.5% ROI
so the yearly return on this will be;
77.5%/7 = 11.07 which is approximately 11%
So the ROI is 11% and not 9%
HEY BESTIES ANSWER QUICKLY AND ILL MARK BRAINLIEST
Which statements describe letterheads?
They should have a different design than the business card.
They provide the contact information for a business.
They are seldom needed in small organizations.
Business cards and letterheads should be of similar design.
They have the same information as a business card.
Answer:
B- They provide the contact information for a business.
E- Business cards and letterheads should be of similar design
Explanation:
A letterhead is the heading found at the top of a paper and it usually includes the name of the organization, the logo and the contact information. The letterheads help to provide a professional image and consistency should be maintain in all the business stationery. According to that, the answer is that the two statements that describe letterheads are: they provide the contact information for a business and business cards and letterheads should be of similar design.
hope this helps pls let me know
In Year 1, in a project to develop Product X, Lincoln Company incurred research and development costs totaling $10 million. Lincoln is able to clearly distinguish the research phase from the development phase of the project. Research-phase costs are $6 million, and development-phase costs are $4 million. All of the IAS 38 criteria have been met for recognition of the development costs as an asset. Product X was brought to market in Year 2 and is expected to be marketable for 5 years. Total sales of Product X are estimated at more than $100 million.
Required:
a. Determine the impact research and development costs have on Lincoln Company's Year 1 and Year 2 income under (1) IFRS and (2) U.S. GAAP.
b. Summarize the difference in income, total assets, and total stockholders' equity related to Product X over its five-year life under the two different sets of accounting rules.
Answer:
Answer is explained in the explanation section below.
Explanation:
Data Given:
Research and Development Cost = $10 million
Research Phase Cost = $6 million
Development Cost = $4 million
Total Sales of Product X are estimated at more than = $100 million
Solution:
a.
1. IFRS:
Research cost of $6 million have been expensed in year 1 in case of IFRS.
Whereas, for year 2 developmental cost is reported as assets and amortization is recorded on the asset which is the 5th part of the developmental cost of $4 million.
$4,000,000/5 = $800,000
2. U.S. GAAP:
Under U.S. GAAP in year 1, total of $10 million have been expensed including both research and development cost.
Under U.S. GAAP in year 2, however, there is no asset reported and all the costs are expensed in year 1 hence, no impact on the income statement.
b.
Income: In year 1 under IFRS, income will be higher by $4 million ($10-$6)million before the implication of tax.
But for year 2 to year 5:
In case of IFRS, income will be lowered due to the amortization on the deferred development cost. It will decrease by $800,000.
The total assets and stock holder's equity under IFRS will be higher by the following amounts each of the years.
Year 1 $4,000,000
Year 2 $3,200,000
Year 3 $2,400,000
Year 4 $1,600,000
Year 5 $800,000
The above amount is decreased by $800,000 each year because of the amortization of asset.
Starting a new business as a sole proprietorship
O requires retaining the services of an attorney.
O is very similar to starting a business as a corporation.
O is usually simpler and less expensive than starting other forms of ownership.
O is simple, but the proprietorship fee is very expensive in some provinces.
Abshir is a visiting professor at the local university. Abshir was a graduate student from August 2011 to July 2013 in F-1 immigration status. He re-entered the United States on December 20, 2016 in J-1 immigration status. For federal income tax purposes, Abshir is a resident alien for 2017.
a) true
b) false
Answer:
True
Explanation:
J-1 is an immigration type of which allows the holder to reside the United states for study, work, teach, conduct research and other similar purposes. The person is also known as Green Card Holder who can temporarily lawfully reside in United States. It gives holder right to temporarily reside in the country. It is a valid permit of non immigrant Alien. Abshir is also in the same status as J-1 immigration in United States as a professor.
The Gorman Group issued $880,000 of 13% bonds on June 30, 2018, for $946,202. The bonds were dated on June 30 and mature on June 30, 2038 (20 years). The market yield for bonds of similar risk and maturity is 12%. Interest is paid semiannually on December 31 and June 30.
Required:
Record the company's journal entry.
Answer:
Missing word: "a. to record their issuance by The Gorman Group on June 30, 2018, b. interest on December 31, 2018 and c. interest on June 30, 2019 (at the effective rate)."
Par value of bonds = $880,000
Semi annual interest payment = 880,000 x 13% x 6/12 = $57,200
Effective interest rate = 12%, Semi annual Effective interest rate = 6%
Issue price of bonds = $946,202
Premium on bonds payable = Issue price of bonds - Par value of bonds = $946,202 - $880,000 = $66,202
a. Journal Entry on June 30, 2018
Date Account Debit Credit
6/30/2016 Cash 946,202
Bonds payable 880,000
Premium on Bonds payable 66,202
b. Journal Entry on on December 31, 2018
Date Account Debit Credit
12/31/2016 Interest expense 56,772
(946,202 x 6%)
Premium on bonds payable 428
(57,200 - 56,772)
Cash 57,200
c. Journal Entry on on June 30, 2019
Date Account Debit Credit
6/30/2019 Interest expense 56,746
(945,774 x 6%)
Premium on bonds payable 428
(57,200 - 56,746)
Cash 57,200
Value added per employee is a financial measure of how much product was sold vs. how many employees worked during the
period. Is this statement true or false?
You want to purchase your first house. A conventional mortgage will require a credit score of approximately 630. Your credit score is 560. You need to increase it by 70 points to get to 630. If you increase your score by 12% per year, how many years will it take to lift your score to 630?
Answer:
1.1 years
Explanation:
The currents credit score is 560
the credit score is increasing by 12% per year is
=12% of 560
=12/100 x 560
=0.12 x 560
=67.2
The required increase is 70 points
the years it will take = 70 points /67.2 points
=1.041 years
= 1 year and one month
Determine the number of cycles per day and the production quantity per cycle for this set of vehicles:
Product /Daily Quantity
A, 20
B ,12
C, 4
D, 16
Determin the number of cycles.
Answer:
the number of cycles is 4
Explanation:
The computation of the number of cycles are presented below;
Product Daily Quantity Daily unit per cycle
A 20 20 ÷ 4= 5
B 12 12 ÷ 4= 3
C 4 4 ÷ 4= 1
D 16 16 ÷ 4= 4
hence, the number of cycles is 4
The gross domestic product (GDP) of the United States is defined as the all in a given period of time.
Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2017.
a. Roadway Motors, a U.S. automobile company, produces a convertible at a plant in Germany on March 10, 2017. Roadway Motors imports the convertible into the United States on May 20, 2017.
b. Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 21, 2017. It sells the car at a dealership in Houston on February 10, 2017.
c. Sofaland, a Swedish furniture company, produces a table at a plant in Virginia on December 5, 2017. It sells the table to a college student on December 24.
d. You chop down a cherry tree on your property in California and make a dining room table in 2017. A similar table sells for $800 in a local furniture store.
e. Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 13, 2017. It sells the set of tires to Speedmaster for use in the production of a two-door coupe that will be made in the United States in 2017.
Answer:
Explanation:
1. Excluded.
Reason: The production has taken place outside the boundary of the country, so it is not included in the GDP of US
2. Included.
Reason: The production has taken place within the boundary of the country, so it is included in the GDP of US
3. Included.
Reason: The production has taken place within the boundary of the country, so it is included in the GDP of US
4. Excluded.
Reason: The table was not created for selling purpose in the market. It was done as hobby and hobbies are not included in national income
5. Excluded.
Reason: The product was sold as a raw material to other firm, therefore, it is not included in the GDP of the US
Numbers-based evidence relies on data, but intuition is based on __________?
reasoning
luck
statistics
serendipity
5) Clark Imports sold a depreciable plant asset for cash of $35,000. The accumulated
depreciation amounted to $70,000, and a loss of $5,000 was recognized on the sale. Under
these circumstances, the original cost of the asset must have been:
Answer:
$110,000
Explanation:
For depreciation, a loss or gain is realized by subtracting the selling price from the book value. Accumulated depreciation is the total amount that has been deducted as depreciation amount.
I.e., profit or loss = selling price - book value
In this case, a loss of $5000 was realized, the selling price was $35,000. The book value must have been $40,000.
$35,000 - $40,000 = - $5,000
The original cost will be the book value + depreciation amount
=$40,000 +$70,000
=$110,000
Categorizing U.S. taxes
Which of the following taxes are regressive?
a) A sales tax that adds 5% to the sale of all items
b) The U.S. payroll tax (a constant tax on wages up to a certain amount, after which the marginal tax rate is 0%) is a tax.
c) The U.S. income tax
Answer:
A
Explanation:
A regressive tax is a tax system where the same tax rate is applied uniformly. As a result, those earning less income are taxed higher than those earning more income.
Sales tax is an example of a regressive tax.
If sales tax is 5%. Worker A earns $100 and worker B earns $1000. Both buy a good worth $50 before tax. the sales tax is worth $2.5.
The tax comprises $2,5 / 100 = 2.5% of worker A's income and $2,5 / $1000 = 0.025% of Worker B's income.
It can be seen that worker A who earns less income is taxed higher
Congratulations! You won a prize in a contest! There are two choices: take the $500 prize today or wait one year and take the $500 prize a year from now. If the interest rate is 3%, compounded annually, how much interest would you be giving up if you took the prize a year from now?
Answer:
$15
Explanation:
The formula for calumniating compound interest is as below
A= P x ( 1 + r) ^1
For this case
A= Amount after one year
P = principal: $500
r= Interest rate 3% or 0.03
n = time in years: 1
A= $500 x ( 1 + 0.03) ^ 1
A = $500 x(1.03)
A= $500 x 1.03
A =$515
The interest missed is the future value - amount collected after one year.
=$515- $500
=$15
Mutually exclusive projects are those whose cash flows are unrelated to one another the acceptance of one does not eliminate the others from further consideration.
a. True
b. False
Answer: False
Explanation:
Mutually exclusive projects are the projects that compete directly with themselves in such a way that an individual can only choose one out of two projects and both cannot occur at thesame time.
The cash flows for a mutually exclusive projects compete with one another and when one accepts a project, it means that the other project can't be accepted.
At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 2,135,390 Credit sales $ 2,890,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 875,670 debit Allowance for doubtful accounts $ 13,680 debit Problem 9-2A Part 1 Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. Bad debts are estimated to be 4% of credit sales. Bad debts are estimated to be 3% of total sales. An aging analysis estimates that 7% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31). (Do not round intermediate calculations.)
Answer:
Adjusting entries (all dated December 31)
D Loss for uncollectible accounts 74,977
C Allowance for doubt accounts 13,680
C Account receivable 61,297
D Expense Allowance for doubt accounts (credit sales) 115,600
D Expense Allowance for doubt accounts (total sales) 150,762
C Allowance for doubt accounts 266,362
Explanation:
Cash sales 2135390
Credit sales 2890000 61,297 2,828,703
Sales 5025390
Account receivable 875,670
Allowance for doubt accounts 13,680
Bad debts ( Credit Sales) 4% 115,600
Bad debts ( Total Sales) 3% 150,762
Uncollectible 7% 61,297
Loss for uncollectible accounts 74,977
Allowance for doubt accounts 13,680
Account receivable 61,297
Expense Allowance doubt accounts (credit sales) 115,600
Expense Allowance doubt accounts (total sales) 150,762
Allowance for doubt accounts 266,362
What is a positive and what is a normative statement?
Answer:
normative statement: conclusions based on value judgments that cannot be tested
positive statement: conclusions based on logic and evidence that can be tested.
Hope that helps
Have a good day
At December 31, 2021, Hull-Meyers Corp had the following onvestments that were purchased during 2021, its first year of operations