The short-run economic outcome resulting from the increase in production costs is known as . Now suppose that the government immediately pursues an accommodative policy by increasing government purchases in response to the short-run economic impact of the severe weather. In the long run, when the government pursues accommodative policy, the output in the economy will be $ billion and the price level will be .

Answers

Answer 1

Answer:

The short-run economic outcome resulting from the increase in production costs is known as - Stagflation

Stagflation is a situation in which there is high inflation and high unemployment. In Stagflation, aggregate demand is constricted due to the high costs of goods and services because of an increase in firms' production costs.

Now suppose that the government immediately pursues an accommodative policy by increasing government purchases in response to the short-run economic impact of the severe weather. In the long run, when the government pursues accommodative policy, the output in the economy will be $ billion and the price level will be .

If the government pursues an accommodative policy, also known as an expansionary policy, both the output of the economy and the price level will increase in comparison to the previous numbers.

However, hopefully the level of output will increase proportionally more than the price level, because otherwise, the economic growth will be accompanied by high inflation, leading to an overheated and dysfunctional economy.


Related Questions

The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company as of December 31, 2017
a. Unrecorded depreciation on the trucks at the end of the year is $8.231
b. The total amount of accrued interest expense at year-end is $8,000.
c. The cost of unused office supplies still available at year-end is $1,400.
1. Prepare the year-end closing entries for Dylan Delivery Company as of December 31, 2017
2. Determine the capital amount to be reported on the December 31, 2017 balance sheet.

Answers

Answer:

Question 1

Part a

Debit : Depreciation $8.231

Credit : Accumulated Depreciation $8.231

Part b

Debit : Interest Expense $8,000

Credit : Long term notes payable $8,000

Part c

Debit : Office Supplies Expenses $ 500

Credit:  Office Supplies $ 500

Question 2

Capital amount to be reported on the December 31, 2017 balance sheet is $170,551

Explanation:

See below the full question that i have attached

Calculation of Capital amount as at December 31, 2017

Balance before adjustments              $187,282

Adjustments :

Depreciation                                           ($8.231)

Interest Expense                                   ($8,000)

Office Supplies Expenses                      ($ 500)

Balance after adjustments                   $170,551

Which of the following decisions is part of the HR function of compensation?
A. What responsibilities should be part of an office worker's job
B. How to make sure office workers are treated ethically
C. Which employees will do the best work in the fastest time
D. Whether to pay office workers a wage or a salary

Answers

Answer:

D. Whether to pay office workers a wage or a salary

Explanation:

The HR compensation functions entail rewarding employees for work done. Employee compensation includes monetary payments such as salaries, wages, overtime, profit sharing, allowances, or bonuses.

Non -monetary compensation includes benefits such as housings, paid car, insurance coverage, and stock ownership.

In consultation with the other managers, the HR managers determine the level and combination of compensation for every employee. HR has to decide whether to employ office workers on a part-time or full-time basis. Equally, HR determines whether to pay the office workers either a salary or wages.

Answer:

Yes, the one above me is correct, it's:

D. Whether to pay office workers a wage or salary.

Explanation:

John and Paul are brothers and both are United States citizen. Paul works in Mexico and maintains two (2) bank accounts in Mexico. The accounts are held in Paul's name but both John and Paul are allowed to write checks from the account. The combined account balances are $50,000. The accounts generate $100 of interest income. Paul pays taxes in Mexico and claim a foreign tax credit on his US Income Tax Return. Which of the following statements are most accurate?
a. Only John has a financial interest in the Mexican bank accounts and must file a FBAR. Paul is exempt from filing the FBAR as he paid taxes to Mexico on the accounts.
b. Both Paul & John have a financial interest in the Mexican bank accounts and are required to file a FBAR.
c. Neither John or Paul have a requirement to file an FBAR as the income generated from the account does not exceed $100.
d. None of the above.

Answers

Answer:

I think B

Explanation:

Weather, Inc., a domestic corporation, operates in both Fredonia and the United States. This year, the business generated taxable income of $600,000 from foreign sources and $900,000 from U.S. sources. All of Weather’s foreign- source income is in the general limitation basket. Weather’s total taxable income is $1.5 million. Weather pays Fredonia taxes of $228,000. What is Weather’s FTC for the tax year? Assume a 34% U.S. income tax rate.

Answers

Answer:

$204,000

Explanation:

FTC for the tax year = US Tax liability*(Foreign taxable income/Worldwide taxable income)

FTC for the tax year = ($1,500,000*34%)*($600,000/$1,500,000)

FTC for the tax year = $510,000*0.4

FTC for the tax year = $204,000

So, Weather Inc's FTC for the tax year is $204,000

Watunga County Bank agrees to lend Vaughn Granite Company $599000 on January 1. Vaughn Granite Company signs a $599000, 8%, 9-month note. The entry made by Vaughn Granite on January 1 to record the proceeds and issuance of the note is
Cash 599000
Interest Expense 35940
Notes Payable 599000
Interest Payable 35940
Interest Expense 35940
Cash 563060
Notes Payable 599000
Cash 599000
Notes Payable 599000
Cash 599000
Interest Expense 35940
Notes Payable 634940
What is the adjusting entry requited if Hoffman Granite Company prepares financial statements on June 30th?

Answers

Answer:

DR Cash                             $599,000

CR Notes Payable                                $599,000

Explanation:

As this is the entry for the issuance of the note, interest will not be recorded as it is incurred as during the loan period.

Entry will be;

Date                  Details                                                 Debit                   Credit

Jan 1                  Cash                                                  599,000

                          Notes Payable                                                               599,000

Mighty Safe Fire Alarm is currently buying 60,000 motherboards from MotherBoard, Inc., at a price of $65 per board. Mighty Safe is considering making its own boards. The costs to make the board are as follows: direct materials, $28 per unit; direct labor, $8 per unit; and variable factory overhead, $17 per unit. Fixed costs for the plant would increase by $76,000. Which option should be selected and why

Answers

Answer:

It is cheaper to make the units in-house.

Explanation:

Giving the following information:

Buy:

Purchase price= $65

Make:

Direct materials= $28 per unit

Direct labor= $8 per unit

Variable factory overhead= $17 per unit.

Fixed costs for the plant would increase by $76,000.

We need to calculate the total cost for each option. The best option is the one with lower total costs:

Buy:

Total cost= 60,000*65= $3,900,000

Make:

Total cost= 60,000*(28 + 8 + 17) + 76,000

Total cost= 3,180,000 + 76,000

Total cost= $3,256,000

It is cheaper to make the units in-house.

. A three-year interest rate swap has a level notional amount of 300,000. Each settlement period is one year and the variable rate is the one-year spot interest rate at the beginning of the settlement period. The swap rate for this interest rate swap is 4.317%. Two years have elapsed and the one-year spot interest rate at the start of year three is 5.25%. Calculate the market value of the swap from the perspective of the payer.

Answers

Answer:

$2,660

Explanation:

The market value is the present value of expected future cash flows.

Expectation is that swap will pay (300,000) (0.04317) and receive (300,000) ( 0.0525), and these payments would be made at end of one year.

Then, market value = ((300,000)(0.0525) - (300,000)( 0.04317)) / (1 + 0.0525)

Market value = 2799 / 1.0525

Market value = 2659.38

market value = $2,660

Therefore, the market value of the swap from the perspective of the payer is $2,660.

Tax rate 35% 2020 2019 Revenues $42,629 $37,911 Cost of goods sold 23,704 24,832 Interest 1,230 1,584 Dividends 1,200 600 Depreciation 2,609 2,814 Administrative expenses 7,040 6,820 Cash 3,671 2,969 Inventory 3,968 4,503 Accounts payable 2,325 3,760 Long-term debt 19,105 25,900 Accounts receivable 4,601 5,318 Common stock 22,600 19,800 Net fixed assets 41,260 42,110 (2) What is the Net Debt to Operating Cash Flow Ratio in 2020

Answers

Answer:

The Net Debt to Operating Cash Flow Ratio in 2020 is:

2.26

Explanation:

a) Data and Calculations:

Tax rate 35%

                                           2020        2019

Revenues                     $42,629    $37,911

Cost of goods sold         23,704     24,832

Interest                               1,230       1,584

Dividends                           1,200         600

Depreciation                     2,609       2,814

Administrative expenses 7,040       6,820

Cash                                  3,671       2,969

Inventory                          3,968       4,503

Accounts payable            2,325       3,760

Long-term debt               19,105    25,900

Accounts receivable        4,601        5,318

Common stock             22,600      19,800

Net fixed assets            41,260       42,110

Cash Flow from operations:

                                          2020        2019

Revenues                     $42,629    $37,911

Cost of goods sold         23,704     24,832

Interest                               1,230       1,584

Administrative expenses 7,040       6,820

Net cash flow                      $10,655

Working capital adjustment:

Inventory                                    535 (-3,968 + 4,503)

Accounts payable                  (1,435) (-2,325 + 3,760)

Accounts receivable                  717  (-4,601 + 5,318)

Net cash from operations $10,472

Total debt:

Long-term debt = $19,105

Current debt =         4,601

Total debt =         $23,706

Cash flow-to-debt ratio = Total debt/Net cash from operations

= $23,706/$10,472

= 2.26

b) The cash flow-to-debt ratio is the ratio of a company's cash flow from operations to its total debt, which shows how long (2.26 years) it takes the company to repay its debt if it devoted all of its cash flow to debt repayment.

Sally opened her own business and resigned from a job paying $25,000 per year. Her savings acccount pays 8% interest, but she withdrew $20,000 to buy some machinery which didn't fall in value. She could have earned 10% on the $20,000 had she invested it in another company with the same risk as hers. In adddition to the $20,000 her only other cost is $15,000 per year she charges her business as a salary for herself. In the first year her business made accounting profit of $12,000. Will other people having $20,000 in savings want to leave a $25,000 job to open a business like Sally's if their only objective is money?
A) They would be indifferent, as Sally's income net of costs equals $25,000.
B) Yes, because Sally's income is $27,000 but her costs are $20,000.
C) No, because Sally's income is $27,000 but her costs are $35,000.
D) Yes, because Sally's economic profit is positive.
E) Both (B) and (D).

Answers

Answer:

A) They would be indifferent, as Sally's income net of costs equals $25,000.

Explanation:

Sally's economic profit = accounting profit - opportunity costs

accounting profit = $12,000opportunity costs = $25,000 - $15,000 in lost salaries + $2,000 (lost investment revenue) = $12,000

economic profit = $12,000 - $12,000 = $0

Since the economic profit is $0, Sally should be indifferent between running her own business or working for someone else.

The government is supposed to look out for the consumer when a new product or service is introduced to the market. This role of government is that of _____.


one that reallocates income

a source of public good

a supervisory body

an entrepreneurship

Answers

Answer:

the correct answer is "a supervisor body" have a great day. also can I get brainliest?

The government is supposed to look out for the consumer when a new product or service is introduced to the market. This role of government is that of a supervisory body. Option (c) is correct.

What is a supervisory body?

Supervisory body a designated or authorized group charged with administering the organization's regular business operations, special projects, or other duties.

Government oversight, or control, takes the form of decisions made by the administration, the legislative, and even the court. Government oversight has an impact on a company through its facilities and oversight of an organization's management, accounting, and entrepreneurial operations.

The four roles of management, development, mediation, and support are all included in supervision.

Therefore, Option (c) is correct.

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Im Doing A resume and they Need A real legit credit Card Number and Cvc ANd when it expires For My resume It's worth 100% of my grade Plz helps

Answers

Answer:

alex do u realize ur question is litterally against the law

Explanation:

quit being a  j erk, and lets talk this out

Sally Clark purchased 500 shares of ABC corporation for $10 per share and oaid a total commission of $200. The current price of the stock is $12 per share. Last year, Sally received dividends of $2 per share​

Answers

Answer:

38.46%

The question

Based on the information given, compute stock returns.

Explanation:

The percentage return will be

The actual returns/ amount invested x 100

Returns represent gains from the share.

1. The gain in share price

= Current value - original value

=($12 x 500 ) - ($10 x 500)

=$6,000 - $5,000

=$1,000

2. gain from dividends

=$2 x 500

=$1,000

Total gain = $1000 + 1000 = $2000

The amount invested = original value + commissions

=($10 x 500) + $200

=$5200

The percentage gain

= $2000/5200 x 100

=0.384615 x 100

=38.46%

The tables show the annual incomes for the citizens in two countries, Melka and Sorare. Use this information to answer the questions. The Nation of Sorare Citizen Income Teddy $2,000 Kermit $50,000 Franklin $63,500 Anna $1,500 Eleanor $2,000 Edith $1,000 The Nation of Melka Citizen Income Etta $20,000 Duke $21,000 Louis $20,000 Billie $20,300 Cole $19,000 Zora $19,700 Based on the information here, which nation would you expect to have the higher Gini coefficient

Answers

Answer: The nation of Sorare

Explanation:

The Gini coefficient is a statistical measure that is used to measure income disparity/ inequality in a country.

The closer to zero the Gini coefficient is, the more equitable the income in a country is. Simply put, if more people in a nation have similar levels of income, the Gini coefficient will be smaller.

In the question, the nation of Sorare has two people earning a high amount of money while others make considerably less. This shows a high income disparity which means that the Gini coefficient here will be higher than in Melka where citizens mostly have similar incomes.

Greta starts using a new baking technique and she can now do twice as much of everything—in a single day Greta can now make 10 cakes or 8 pies, rather than the 5 cakes and 4 pies she could previously bake. We now know that Greta's production possibility frontier:
a. has shifted right, but her opportunity costs of making pies are unchanged.
b. has shifted right, but her opportunity costs of making pies have decreased.
c. has not changed, but her opportunity costs of making pies have increased.
d. has not changed, but her opportunity costs of making pies have decreased.

Answers

Answer:

a. has shifted right, but her opportunity costs of making pies are unchanged.

Explanation:

As we know that Greta curve should be shifted to righward as she can generated more and more units for both the goods so here the c and d option would be remooved. The option A and optoin B are considering the opportunity cost so here we can see that

10 ÷8 = 5 ÷ 4

5 ÷ 4 = 5 ÷ 4

As it can been seen that the opportunity cost remains the same

Therefore the option A is selected

Which of the following decisions is part of the HR function of compensation?
A. What responsibilities should be part of an office worker's job
B. How to make sure office workers are treated ethically
C. Which employees will do the best work in the fastest time
D. Whether to pay office workers a wage or a salary

Answers

Answer:

D. Whether to pay office workers a wage or a salary

Explanation:

Compensation is paying employees for the services rendered. It is a function of the human resources department. Compensation may be in monetary or non-monetary form.

Ensuring fair and timely compensation to workers is a critical function of the human resources managers. The HR evaluates roles and responsibilities periodically to ensure it has a fair compensation scheme.  HR has to determine whether employees will work part-time or full-time, whether to employ permanently or by contract or pay salaries or wages.

Clover Corporation uses a standard costing system in which variable manufacturing overhead is assigned to production on the basis of the number of machine hours. The following data pertain to one month's operations:
Standard machine hours allowed for actual production: 3,550 MH
Actual machine hours for the month: 4,000 MH
Actual variable manufacturing overhead costs incurred: $ 80,000
Variable overhead spending variance: $ 5,450 Unfavorable
What is variable overhead rate variance?
A. S 9,450.00 unfavorable
B. S9,450.00 favorable
C. 4,000.00 unfavorable
D. 4,000.00 favorable
E. Not determinable

Answers

Answer:

D. 4,000.00 favorable

Explanation:

The formula for variable overhead spending variance provided below gives a clue on deriving the correct option.

variable overhead spending variance=actual variable spending  overhead-budgeted variable spending overhead.

$5450=$ 80,000-budgeted variable spending overhead

budgeted variable spending overhead=$80,000-$5450=$74550

standard overhead rate=budgeted variable spending overhead/Standard machine hours allowed for actual production

standard overhead rate=$74550 /3550=$21

variable overhead rate variance=( standard rate* Actual machine hrs)-(actual rate*Actual machine hrs)

actual rate=Actual variable manufacturing overhead costs incurred/Actual machine hours for the month=$80,000/4000=$20

variable overhead rate variance=($21*4000)-($20*4000)=$4000(favorable since actual is lower than standard,hence, cost savings)

Barbara's employer offers health coverage to its employees. However, Barbara feels it is unaffordable and wants to apply for a health insurance premium tax credit. In order for the coverage to be deemed unaffordable in 2020, Barbara's self-only premium must exceed __ of her household income.

Answers

Answer:

9.83%

Explanation:

If the health insurance premium represents 9.83% of Barbara's income or less, it is considered affordable coverage. Only if it exceeds the 9.83% threshold, will Barbara be able to request a health insurance premium tax credit. Theoretically, if Barbara's health insurance was purchased in the Health Insurance Marketplace, the tax credit should be automatic and her premium should be lowered so that it can become affordable.

Executive Chalk is financed solely by common stock and has 25 million shares outstanding with a market price of $10 a share. It announces that it intends to issue $160 million of debt and use the proceeds to buy back common stock. Assume that the MM assumptions hold (i.e., no taxes, no costs of financial distress). a) What is the value of the firm before and after the proposed capital structure change

Answers

Answer: See explanation

Explanation:

First we will have to calculate the value of the firm before the debt issue. This will be:

= 25,000,000 × $10

= $250,000,000

We also calculate the value of the firm after after the proposed capital structure change. The value of equity will be:

= $250,000,000 - $160,000,000

= $90,000,000

Therefore, the value of debt will also be $160,000,000.

Which factor would credit card companies most likely use to determine an
applicant's creditworthiness?

A. Hourly wages

B. Languages spoken

C. Political party

D. Size of family

Answers

A factor that credit card companies would most likely use to determine an applicant's creditworthiness is Hourly wages.

Credit card issue

When you apply for a credit card, you’re required to share an array of personal information on your application. This will include details like your name, address, Social Security number and current employment status. You’ll also be asked to list your income on your application, although the type of income card issuers ask for can vary depending on the card issuer.

Determination of hourly wages

Not all credit card issuers will ask for your annual net income. Some may explicitly ask for your gross income. If you are paid an hourly wage, on the other hand, you may need to figure out your gross income using last year’s tax return or by multiplying your gross weekly income by the number of weeks you work within a year.

Thus, A factor that credit card companies would most likely use to determine an applicant's creditworthiness is Hourly wages.

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If on November 26,2017, The Dow Jones industrial average closed at 12,743.40, which was down 237.44 that day. what was the return (in percent) of stock market that day?

Answers

Answer:

-1.83%

Explanation:

The closing price was 12,743.40, which was down by .

it means that the opening price was

$12,743.40 +  $237.44 = $12,980.44.

The percentage return will be the

return/ original price x 100

=- - 237.44/12,980.44 x 100

=  - 0.018291574 x 100

=  - 1.83%

For the competitive firm in the labor market, the value of the marginal product is equal to the marginal revenue product because marginal

Answers

Answer:

physical product of labor equals the wage rate

Explanation:

The marginal product of an input refers to the extra output produced as a result of addition of one unit of the input to the given productive factors.

Marginal revenue is the revenue earned by producing one more unit of a product.

For the competitive firm in the labor market, the value of the marginal product is equal to the marginal revenue product because marginal physical product of labor equals the wage rate.

Turnbull Co. has a target capital structure of 58% debt, 6% preferred stock, and 36% common equity. It has a before-tax cost of debt of 8.2%, and its cost of preferred stock is 9.3%. If Turnbull can raise all of its equity capital from retained earnings, its cost of common equity will be 12.4%. However, if it is necessary to raise new common equity, it will carry a cost of 14.2%. If its current tax rate is 25%, how much higher wi

Answers

Answer:

Turnbull’s weighted average cost of capital (WACC) will be higher by 0.64% if it has to raise additional common equity capital by issuing new common stock instead of raising the funds through retained earnings.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

Turnbull Co. has a target capital structure of 58% debt, 6% preferred stock, and 36% common equity. It has a before-tax cost of debt of 8.2%, and its cost of preferred stock is 9.3%. If Turnbull can raise all of its equity capital from retained earnings, its cost of common equity will be 12.4%. However, if it is necessary to raise new common equity, it will carry a cost of 14.2%. If its current tax rate is 40%, how much higher will Turnbull’s weighted average cost of capital (WACC) be if it has to raise additional common equity capital by issuing new common stock instead of raising the funds through retained earnings? (Note: Round your intermediate calculations to two decimal places.)

The explanation to the answer is now given as follows:

Step 1: Calculation of WACC when all of its equity capital is raised from retained earnings

This can be calculated using WACC formula as follows:

WACCR = (WS * CE) + (WP * CP) + (WD * CD * (1 - T)) ………………… (1)

Where;

WACCR = Weighted average cost of capital when all of its equity capital is raised from retained earnings = ?

WS = Weight of common equity = 36%, or 0.36

WP = Weight of preferred stock = 6%, or 0.06

WD = Weight of debt = 58%, or 0.58

CE = Cost of equity = 12.4%, or 0.124

CP = Cost of preferred stock = 9.3%, 0.093

CD = Before-tax cost of debt = 8.2%, or 0.082

T = Tax rate = 40%, or 0.40

Substituting the values into equation (1), we have:

WACCR = (0.36 * 0.124) + (0.06 * 0.093) + (0.58 * 0.082 * (1 - 0.40))

WACCR = 0.078756, or 7.8756%

Rounding to 2 decimal places, we have:

WACCR = 7.88%

Step 2: Calculation of WACC if it raises new common equity

This can also be calculated using WACC formula as follows:

WACCE = (WS * CE) + (WP * CP) + (WD * CD * (1 - T)) ………………… (2)

Where;

WACCE = Weighted average cost of capital if it raises new common equity = ?

WS = Weight of common equity = 36%, or 0.36

WP = Weight of preferred stock = 6%, or 0.06

WD = Weight of debt = 58%, or 0.58

CE = Cost of equity = 14.2%, or 0.142 (Note: This is the only thing that has changed compared to what we have in Step 1 above.)

CP = Cost of preferred stock = 9.3%, 0.093

CD = Before-tax cost of debt = 8.2%, or 0.082

T = Tax rate = 40%, or 0.40

Substituting the values into equation (2), we have:

WACCE = (0.36 * 0.142) + (0.06 * 0.093) + (0.58 * 0.082 * (1 - 0.40))

WACCE = 0.085236, or 8.5236%

Rounding to 2 decimal places, we have:

WACCE = 8.52%

Step 3: Caculation of how much higher will Turnbull’s weighted average cost of capital (WACC) be if it has to raise additional common equity capital by issuing new common stock instead of raising the funds through retained earnings.

This can be calculated as follows:

Percentage by which WACC is higher = WACCE - WACCR

Percentage by which WACC is higher = 8.52% - 7.88%

Percentage by which WACC is higher = 0.64%

Therefore, Turnbull’s weighted average cost of capital (WACC) will be higher by 0.64% if it has to raise additional common equity capital by issuing new common stock instead of raising the funds through retained earnings.

Nesrin purchased a $325,000 house and paid 25 percent down. She got a 30-year fixed-rate mortgage with an annual interest rate of 5.75 percent. After five years she refinanced the mortgage for 25 years at a 5.35 percent annual interest rate. After she refinanced, what is the new monthly payment (to the nearest dollar)

Answers

Answer:

$1,335.01

Explanation:

First step

PV = -325000 * (1-25%)  = -243750

N = 30*12  = 360

I/Y = 5.75%/12

FV = 0

Using the  Financial calculator

CPT PMT = PMT (-PV, N, I/Y, FV)

CPT PMT = $1,422.46  

Second Step

PMT = 1422.46

PV = -325000*(1-25%)  = -243,750

I/Y=5.75%/12

N = 12*5  = 60

Using the  Financial calculator

CPT FV = FV(PMT, -PV, I/Y, N)

CPT FV = $226,107.75

The Loan outstanding is $226,107.75 after 5 years

Third Step

PV = -226107.75

I/Y = 5.1%/12

N = 12*25 =  300

FV = 0

Using the  Financial calculator

CPT PMT = PMT(-PV, N, I/Y, FV)

CPT PMT = $1,335.01

Hence, the new monthly payment is $1,335.01

Hsung Company accumulates the following data concerning a proposed capital investment: cash cost $193,872, net annual cash flows $44,200, and present value factor of cash inflows for 10 years 4.66 (rounded). (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).) Determine the net present value, and indicate whether the investment should be made.

Answers

Answer:

NPV = $12,100

the project should be carried out

Explanation:

initial outlay = -$193,872

net cash flows years 1 - 10 = $44,200

present value of net cash flows = $44,200 x 4.66 = $205,972

net present value (NPV) = initial outlay + present value of cash flows = -$193,872 + $205,972 = $12,100

this investment should be carried out since its NPV is positive, therefore, it increases the company's wealth.

You are trying to estimate the value of the XYZ Inc. company, as of the end of 2019. The after-tax cashflow from assets (FCFF) for the year ending 2019 is $126 million. The estimated WACC is 11%. What comes closest to the current value of the firm XYZ if the expected after-tax cashflows to assets for the next two years are expected to grow at 15% and then grow at a lower rate of 2% thereafter forever?

Answers

Answer:

$ 1,798.56  

Explanation:

The current value of the firm is the discounted after-tax cashflow from assets  as well as the terminal after-tax cashflows as shown below:

2020 FCFF=$126 million*(1+15%)=$144.90  million

2021 FCFF=$126 million*(1+15%)^2=$166.64  million

Terminal value=2021 FCFF*(1+g)/(WACC-g)

g=terminal growth rate of FCFF=2%

WACC=11%

Terminal value=$166.64  million*(1+2%)/(11%-2%)=$ 1,888.53  million

current value of firm=$144.90  million/(1+11%)^1+$166.64  million/(1+11%)^2+$ 1,888.53  million/(1+11%)^2

current value of firm=$ 1,798.56  

Your client has called for help with their bank feeds in QuickBooks Online. You begin by asking them to open the Banking tab in the Left Navigation bar and your client tells you that she doesn't see this option listed. What could be the reason?a. Your client doesn't have bank feeds enabledb. Your client has Business view selected in their settingsc. Your client has turned off the Banking option in their settingsd. Your client has the Simple Start subscription for QuickBooks Online

Answers

Answer: b. Your client has Business view selected in their settings

Explanation:

There are two views when it comes to Quickbooks Online: Business view and Accountant view. Accounting view is for more seasoned users who have some form of accounting training so it has more features.

Business view on the other hand is simplified for those who don't know much about accounting. It is easy to follow and some features are reordered for simplicity.

The Banking tab is one of those features and it is not openly shown in the business view so the most probably the reason your client can't see it is that she is using the Business view.

Different classes of stocks are usually issued in order to Group of answer choices maintain ownership control, by holding the class of stock with greater voting rights. pay less dividends to different classes of stock extract perquisites without the other class of stockholders knowing maintain ownership control by holding the class of stock with greater voting rights and pay less dividends to different classes of stock.

Answers

Answer:

maintain ownership control, by holding the class of stock with greater voting rights.

Explanation:

Stocks can be divided into two main categories, common stocks and preferred stocks. Preferred stocks grant no voting rights. But common stocks can also be classified in different classes, e.g. class A or class B common stocks. Generally class A stocks have higher voting rights than class B stocks, e.g. class A might have 10 voting rights per stock while class B only has 1.

A real world example is Google that has 3 different classes of common stock:

class A: 1 voting right per stockclass B: held by Google's founders and top management, not traded publicly, and they hold most of the voting rightsclass C: no voting rights

Youngstown Rubber reports the following data for its first year of operation. Direct materials used $710,200 Direct Labor 350,000 Cost of goods manufactured 1,030,300 Finished goods inventory, ending 190,900 Finished goods inventory, beginning 0 Manufacturing overhead 100,100 Work in process inventory, beginning 0 Work in process inventory, ending 130,000 What are the total manufacturing costs to account for

Answers

Answer:

$1,160,300

Explanation:

Total Manufacturing Costs are all costs related to the production of goods to be sold. This consists of direct costs such as labor and material and other indirect costs such as electricity and rentals.

Calculation  of total manufacturing costs :

Cost of goods manufactured         1,030,300

Add Closing Work In Process           130,000

Less Beginning Work In Process                 0

Total manufacturing costs            $1,160,300

Assets Liabilities
Total Reserves $60,000
Demand Deposits $200,000
Loans $140,000
The balance sheet above shows the financial situation for the Car central bank has set a reserve requirement of 10 percent. What is additional money Carland National Bank can create?
a. $600,000.
b. $40,000.
c. $200,000.
d. $60,000.
e. $400,000.

Answers

Answer:

b. $40,000

Explanation:

Calculation for What additional money Carland National Bank can create

Using this formula

Additional money=Total Reserves-(Demand Deposits*Reserve requirement percentage)

Let plug in the formula

Additional money = $60,000 -( $200,000*10%)

Additional money = $60,000-$20,000

Additional money = $40,000

Therefore the additional money Carland National Bank can create will be $40,000

The Intramural Sports Club reports sales revenue of $578,000. Inventory at both the beginning and end of the year totals $110,000. The inventory turnover ratio for the year is 3.9.

What amount of gross profit does the company report in its income statement?

Answers

Answer:

$363,500

Explanation:

Gross profit = Revenue - Cost of Goods Sold.

In the case

Revenue = $578,000.

The Cost of Goods Sold: COGS

Inventory turn over = COGS/ Average turnover

Average turnover = Opening stock + closing stock/2

In this case Opening stock + Closing stock = $110,000

Average turnover = $110,000 /2 =$55,000

Therefore:

3.9 = COGS/$55,000

COGS = $55,000 x 3.9

COGS =$214,500

Gross profit =  $578,000 - $214,500

Gross profit = $363,500

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