Basing management decisions on economic profit rather than accounting profit is more important for companies with few fixed assets than capital-intensive companies---- True
Concerning decision-making:
In management, decision-making is the process of choosing between two or more options. This entails weighing the advantages and disadvantages of numerous options and selecting the best one to achieve the desired outcome.
Taking actions that advance the company's goals and objectives is part of management decision-making. Simply put, decision-making is the process of selecting an option after identifying the problem, learning about potential solutions, and selecting the best one (e.g., economic value added) rather than accounting for profit, and it applies to companies that have a lot of capital, like chemical manufacturers and automobile manufacturers.
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Consider the following game in extensive form: The King of Siam has many enemies who would like to poison him. His Highness seeks a Royal Taster to taste his food before He eats. The King generously offers a wage w < 10 to anyone who will take the job. The going wage for labor in Siam is w0. The values his life at 10. His Enemies value his death at 10 also, and poisoning attempts cost 5.
Stage 1: The King chooses to Hire or Not Hire a Taster at wage w.
Stage 2: The Enemies choose to Poison or Not Poison.
The game tree with moves and payoffs is as follows:
a. Write down the strategies for Players 1 (King) and 2 (Enemies). Write down the Normal form of the game
b. Find the Nash equilibria of the game.
c. Use Backward Induction to solve the game.
d. Will the King need to offer a wage greater than the going wage wo to attract a willing taster? Why or why not
Solution :
a). The normal form in the game is given below as :
The King
The Enemies Hire Not hire
To Poison (-5, 10-w) (5, 0)
Not to Poison (0, 10-w) (0, 10)
b). For the enemies there is no such dominant strategy and the king also does not have any dominant strategy. Therefore, there is no pure strategy of Nash equilibrium.
c). The backward induction helps to suggest that there is a spine for the game when the king hires a Royal taster and the enemies do not poisons the king : (Hire, Not poison).
d). Yes the king needs to offer a wage that is greater than going wage, [tex]$w_0$[/tex] in order to attract the willing taster as the value of the life of his more.
The cash account for Brentwood Bike Co. at May 1 indicated a balance of $14,780. During May, the total cash deposited was $74,870 and checks written totaled $69,550. The bank statement indicated a balance of $25,380 on May 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:
Checks outstanding totaled $11,310.
A. A deposit of $9,210, representing receipts of May 31, had been made too late to appear on the bank statement.
B. The bank had collected for Brentwood Bike Co. $4,870 on a note left for collection. The face of the note was $4,490.
C. A check for $360 returned with the statement had been incorrectly charged by the bank as $630.
D. A check for $850 returned with the statement had been recorded by Brentwood Bike Co. as $580.
E. The check was for the payment of an obligation to Adkins Co. on account.
F. Bank service charges for May amounted to $60.
G. A check for $1,120 from Jennings Co. was returned by the bank because of insufficient funds.
Instructions:
1. Prepare a bank reconciliation as of May 31.
2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed.
3. If a balance sheet were prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash?
Answer:
1. Bank Reconciliation Report (May)
Cash Balance according to Bank Statement $14,780
Add: Cash Deposits $74,780
Deduct outstanding checks $69,550
Adjusted Balance
Cash Balance as per company $25,380
Add: Notes and interest collected by bank $4,870
Deduct: Checks return due to insufficient fund $1,120
Bank service charges $60
error in recording checks $580
Adjusted Balance $ 78,360
Explanation:
Cash (Dr.) $5,250
Notes Receivable (Cr.) $5,000
Interest receivable (Cr.) $250
Public corporations:
a. are businesses where stock is not used as evidence of ownership.
b. are businesses whose stock is bought and sold privately.
c. are businesses owned by two or more people, each of whom is personally liable for the debts of the business.
d. None of other choices are correct.
e. are businesses whose stock is bought and sold on New York stock exchange only
Answer:
d. None of other choices are correct.
Explanation:
A public corporation is a corporation and treated as an individual in the laws eyes that is different from the large shareholders as they have invested the money in order to exchange the shares. Also it has duties and rights plus it can hold and accept the shares that are traded in a freely manner in the stock exchange. It would be traded not only new york stock exchange but also other stock exchange also
2. What are the advantages/disadvantages of being right-brain thinker in terms of the
capabilities?
Answer:
The answer is below
Explanation:
Advantages of being a right thinker in terms of the capabilities are:
Such person possesses these abilities:
1. creativity
2. free-thinking ability
3. ability to see the big picture
4. spontaneous ability
5. inclined to visualize the situation.
Disadvantages may include the following
1. Not strong in the area of analytical thinking;
2. Les logical evaluation;
3. less detail- and fact-oriented
numerical
Which of the following is true of import tariffs and quotas? a. Because they increase the output levels of domestic firms, they tend to lower domestic prices. b. They benefit domestic producers. c. Specialization and comparative advantage are advanced by tariffs and quotas. d. Domestic consumers gain because they purchase the output of domestic firms. e. They tend to expand the volume of world trade.
Answer:
b. They benefit domestic producers.
Explanation:
The tariff and quotas would rise the goods value in the market price that permits the domestic consumer who was fire out also the production would be increased but at a higher cost so at the time it would harm the local consumer but it benefit the producer
Therefore the option b is correct
Splish Brothers, Inc. On December 31, 2017, Splish Brothers, Inc. has $1,760,000 of short-term debt in the form of notes payable to Michaels State Bank due February 5, 2018. On January 28, 2018, Splish Brothers issued 17,600 shares of common stock at $75 per share. Splish Brothers used the proceeds of $1,320,000 from the stock issuance, along with $572,000 in cash to retire the short-term debt and associated accrued interest on February 5, 2018. Splish Brothers will issue its December 31, 2017 financial statements on February 25, 2018.
Marigold Corp. On December 31, 2017, Marigold Corp. has $2.640,000 of short-term notes payable to Indiana Bank & Trust. The notes are due on January 31, 2018. Marigold retired the notes, along with $176,000 in accrued interest, in full on January 31, 2018. On February 11, 2018, Marigold obtained $3,960,000 in long-term financing from Terre Haute Bank & Trust. The new debt bears interest at 5 percent, with interest payments due annually. Marigold will issue its December 31, 2017 financial statements on February 28, 2018.
Prepare partial balance sheets for Splish Brothers, Inc. and Marigold Corp. at December 31, 2017, showing how both companies' short-term debt should be presented. (Enter account name only and do not provide descriptive information.)
Answer:
Splish Brothers, Inc
Note payable $1,760,000
Marigold Corp
Note payable $2,640,000
Explanation:
Prepare partial balance sheets for Splish Brothers, Inc. and Marigold Corp. at December 31, 2017,
Preparation of partial balance sheets for Splish Brothers, Inc at December 31, 2017,
Equity and Liabilities
Short term debt
Note payable $1,760,000
Preparation of partial balance sheets for Marigold Corp. at December 31, 2017,
Equity and Liabilities
Short term debt
Note payable $2,640,000
Quantitative Problem: Jenna is a single taxpayer. During 2018, she earned wages of $113,000. She doesn't itemize deductions, so she will take the standard deduction to calculate 2018 taxable income. In addition, during the year she sold common stock that she had owned for five years for a net profit of $5,200. How much does Jenna owe to the IRS for taxes
Solution :
Item Amount
Income $113,000
Personal exemption for one $ 4,050
Standard deduction $ 6,350
Taxable income $102,600
Therefore the taxable income is $102,600.
Now the tax payable on the taxable income is given by :
Marginal tax rate Amount brackets
10% $0 - $ 9,325
15% $ 9,326 - $ 37,950
25% $ 37,951 -$ 91,900
28% $ 91,901 - $ 191,650
Now according to the above taxable slab, the amount of tax on the wages earned by Jenna is :
Tax payable = [tex]$= (0.1 \times 9325)+(0.15 \times (37950 - 9325))+(0.25 \times (91900 - 37950))+(0.28 \times (102600-91900))$[/tex][tex]$= (0.1 \times 9325)+(0.15 \times 28625)+(0.25 \times 53950)+(0.28 \times 10700)$[/tex]
= 932.5 + 4293.75 + 13487.50 + 2996
= $ 21,709.75
There is also a long term capital gain of $ 5,200 that is earned by selling the common stock.
Now as per IRS, the capital gain of a long term tax percentage for an individual single filer is in 28% tax slab category is 15%.
Therefore the tax on the capital gain of $ 5,200 is = 0.15 x 5200
= $780
Thus the total tax payable by Jenna is = $ 21,709.75 + $ 780
= $ 22,489.75
Karen, Inc. manufactures a product that uses $15 in direct materials and $5 in direct labor per unit. Under the traditional costing system Karen uses, manufacturing overhead applied to each unit is $12. However, Karen is considering switching to an ABC system. Under the ABC system, the total activity cost would be $25. What is the total manufacturing cost per unit for Karen under the ABC system
Answer:
oie no sepo ingles:"(
Explanation:
perdonwnmeeeeeeeeeeeeeeeeeee
Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as follows.
Sales Mix
Unit Contribution
Margin
Lawnmowers 20 % $30
Weed-trimmers 50 % $20
Chainsaws 30 % $40
Yard Tools has fixed costs of $4,200,000.
Compute the number of units of each product that Yard Tools must sell in order to break even under this product mix. (Use Weighted-Average Contribution Margin Ratio rounded to 2 decimal places e.g. 0.25 and round final answers to 0 decimal places, e.g. 2,510.)
Lawnmowers
units
Weed-trimmers
units
Chainsaws
units
Answer:
Lawnmowers= 30,000
Weed-trimmers= 75,000
Chainsaws= 45,000
Explanation:
First, we need to calculate the weighted average contribution margin:
Weighted average contribution margin= sales proportion*unitary contribution margin
Weighted average contribution margin= (0.2*30) + (0.5*20) + (0.3*40)
Weighted average contribution margin= $28
Now, the break-even point in units for the whole company:
Break-even point (units)= Total fixed costs / Weighted average contribution margin
Break-even point (units)= 4,200,000 / 28
Break-even point (units)= 150,000
Finally, the number of units to be sold for each product:
Lawnmowers= 0.20*150,000= 30,000
Weed-trimmers= 0.5*150,000= 75,000
Chainsaws= 0.3*150,000= 45,000
For each of the following scenarios, please decide whether there will be an increase, decrease, or no change in aggregate demand.
a. The United States government decides to increase the federal tax rate by 4% for all earners.
b. The Federal Reserve, the agency charged with regulating banking and monetary policy in the United States, decides to increase the amount of money available in the economy.
c. The newest release of the Consumer Confidence Index shows a steady increase in consumer confidence about the economy.
d. A manufacturing boom during the late 1990s has created an oversupply of tractors, a necessary implement in agricultural production.
Answer:
a. Decrease
If the Federal government increases taxes on people, they will have less money to spend and save after paying their taxes. This will reduce their consumption and investment (savings) thereby leading to a lower aggregate demand.
b. Increase
An increase in the money supply means that people will have more money to spend on goods and services. They will therefore consume more. More money in the economy reduces interest rates so people will borrow to invest more as well. These two things will combine for an increase in aggregate demand.
c. Increase
If consumers are more confident about their economy, it means they find it safe to invest in it. As they invest, the investment component of aggregate demand would rise which would increase aggregate demand.
d. Decrease
The oversupply from recent years will mean that investment required in recent years will be less. This will lead to a lower aggregate demand.
The legal system affects corporate America in which of the following ways?
A. It operates on the periphery and does not affect the core activities of doing business.
B. Its involvement is generally limited to forming corporations or partnerships, providing for investment capital, and drafting contracts with CEOs.
C. The legal system does not necessarily facilitate or stabilize commercial practice.
D. The legal system has moved closer to the core activities of conducting business and succeeding in a competitive environment.
Answer:
C. The legal system does not necessarily facilitate or stabilize commercial practice.
Explanation:
The government of the United States is a federal system in nature. It has a written system and a common law legal system. The "legal system" of American is based on the system of federalism or the decentralization system.
The legal system for America on the other hand is for interpreting and enforcing the law. Advance development in the political and legal system may increase the risk of the country. Thus the legal system of America does not facilitate or the stabilize any commercial practice in america.
2. How is CrudeOil violating its core value of treating oth-
ers with respect? What are some ways it could reincor-m
porate this core value into its organizational culture??
Answer:
1. Describe the organizational culture at CrudeOil. How does it contribute to the current situation?
Jim treated all of the employees with intimidating behavior based on productivity levels and not moral or ethical concepts. His leadership style is coercive and demands immediate compliance. If this style were summed up in one phrase, it would be "Do what I tell you." In my opinion, it should be avoided because it can alienate employees and create a hostile work environment.
2. How is CrudeOil violating its core value of treating others with respect?
What are some ways it could reincorporate this core value into its organizational culture? “The company’s core value is to treat everyone with respect”. Employees and supervisors, in my experiences, often treat colleagues in harsh and unethical manners only as far as the victim allows it to happen. Financial and reputational harm are questionable and unethical behaviors and organizational policies must be clearly established to reincorporate this value into its culture.
3. If Madison cannot report her problems to her immediate supervisor, what are some other ways she can handle the situation?
I would suggest for Madison to seek advice from a trusted professional, such as the HR compliance officer to verify the actions are inappropriate, if so, Madison needs to learn what process is available for voicing her concern to a higher level. Jim’s behavior is clearly unethical, but many of these behaviors are less clear and occur in complex situations. The most complicated situations often involve employees who witness what is, or appears to be, unethical behavior and are unsure how to respond, especially if job security is on the line...
This is some of it
Jim's leadership abilities breached CrudeOil's fundamental value of treating others with respect because he frequently treats coworkers harshly and unethically.
What are the three main uses of crude oil?Petroleum-based products are used to power vehicles, heat buildings, and generate energy. Plastics, polyurethane, solvents, and countless more intermediate and finished commodities are produced by the petrochemical industry, which is a part of the industrial sector.
Jim's activities should therefore be addressed by top management in order to reintegrate this key principle into the organizational culture. Additionally, they could offer a variety of training to their staff, particularly those in higher positions, to inform them on correct management and leadership skills as well as the significance of adhering to the company's code of ethics.
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Children are likely to carry on the economic tildes of there parents in a __?
A:mixed economy
B:command economy
C:traditional economy
D: market economy
Consider two neighboring island countries called Euphoria and Contente. They each have 4 million labor hours available per week that they can use to produce corn, jeans, or a combination of both. The following table shows the amount of corn or jeans that can be produced using 1 hour of labor.
Country Corn (Bushels per hour of labor) Jeans (Pairs per hour of labor)
Euphoria 4 16
Contente 6 12
Initially, suppose Contente uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce corn, while Euphoria uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce corn. Consequently, Euphoria produces 12 million pairs of jeans and 16 million bushels of corn, and Contente produces 6 million pairs of jeans and 36 million bushels of corn. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and corn it produces.
Euphoria's opportunity cost of producing 1 bushel of corn is___________ pair of jeans, and Contente's opportunity cost of producing 1 bushel of corn is__________ pair of jeans. Therefore,___________ has a comparative advantage in the production of corn, and__________ has a comparative advantage in the production of jeans.
Answer:
4
2
Contente
Euphoria
Explanation:
Euphoria's opportunity cost of producing 1 bushel of corn is [tex]\frac{16}{4}[/tex] = 4 pair of jeans, and Contente's opportunity cost of producing 1 bushel of corn is [tex]\frac{12}{6}[/tex] = 2 pair of jeans. Therefore, Contente has a comparative advantage in the production of corn, and Euphoria has a comparative advantage in the production of jeans.
it is a type of business that keeps the dealings,assets,and bank accounts seperate from his/her personal assets?
Answer:
A sole proprietorship
Explanation:
A sole proprietorship is a business owned, organized, and run by a sole proprietor. It is legally advisable that all business and private activities of any form of business are conducted separately. Commingling business dealings, assets, and especially bank accounts with private affairs do cause problems for the business person.
One of the key decisions employers must make is the level of compensation provided to employees. Compensation is a significant cost, and employees are one of the most important assets of the organization. It is important that the organization makes and executes good strategic choices. To facilitate this process, many organizations think systematically about its job structures for compensation and pay levels for different jobs.
An organization's job structure consists of relative pay for different functions and different levels of responsibility. It defines, for example, the difference in pay between entry-level and management jobs, as well as different entry-level jobs in different departments, such as in production or accounting. Pay level is the average amount that an organization pays for a particular job and includes wages, salaries, and bonuses. Job structure and pay levels together form the pay structure, a policy that helps the organization achieve goals related to employee motivation, cost control, and the ability to attract and retain talented employees.
This activity is important because it will help you distinguish between the various factors that impact an organization’s pay structure. The goal of this activity is to classify decisions based on the factors used to establish a pay structure.
HR professionals develop pay structures for their organations based on such factors as legal requirements, company goals, and market forces. Drag each item into the appropriate column on the chart.
1. Equal pay for equal work
2. National compensation survey
3. Product markets
4. Benchmarking
5. Equitable pay rates
6. Child labor laws
7. Federal minum- wage laws
8. Overtime pay
9. Retention of talented staff
10. Trends in labor markets
11. Company cost centers
A. Legal Requirements
B. Organizational Goals
C. Market Forces
Answer:
1. Company goals
2.Market forces
3. market forces
4. company goals
5. market forces
6. legal requirement
7. legal requirement
8. company goals
9. company goals
10. market survey
11. company goals
Explanation:
Company goals is to maintain its business profitable. It is important for a business to retain its talented employees for maintaining quality of products. Legal requirements are the laws which are required to be followed by the businesses.
The most recent financial statements for Live Co. are shown here:
Income Statement Balance Sheet
Sales $4,800 Current assets $5,102 Debt $10,201
Costs
3,168
Fixed assets 12,491 Equity 7,392
Taxable income $1,632 Total
$17,593
Total
$17,593
Taxes (34%) 555
Net income
$1,077
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. No external equity financing is possible.
Required:
What is the internal growth rate?
A. 4.48%
B. 4.58%
C. 4.38%
D. 11.36%
E. 1.87%
Answer:
The answer is "Option A".
Explanation:
Using formula:
[tex]\text{Equity Return} = \frac{ \text{Net Income}}{ \text{Total Assets}} \times 100[/tex]
[tex]= \frac{1,077}{17,593} \times 100 \\\\= 0.0612175297 \times 100\\\\= 6.12175297\\\\=6.12 \%[/tex]
[tex]\text{Calculating the Plowback Ratio} \ (b) = 1- \text{Dividend Payout Ratio}[/tex]
[tex]= 1-0.30 \\\\ = 0.70[/tex]
[tex]\text{Internal Growth Rate} = \frac{ROA \times b }{(1-ROA \times b)} \\\\[/tex]
[tex]= \frac{0.0612 \times 0.70}{(1-0.0612\times 0.70)} \\\\= \frac{0.04284}{0.95716} \\\\ =0.044754073 \\\\ =4.47\%[/tex]
Inattentive Driving. While cutting class and driving off campus to check on her new dress for the upcoming formal, Molly, a busy college student, is busy talking on her cell phone with her friend Sharon. Molly is trying to talk Sharon into going to the dance with her brother, who has a big crush on Sharon. Unfortunately for Molly, there is a statute in her state outlawing talking on a cell phone while operating a motor vehicle. Molly crashes into the side of Sam's new convertible when she looks down to pick up a can of soda she just dropped onto her new jeans. A police officer just down the street comes over to investigate. Molly explains to him that it was difficult to hold the cell phone in one hand, the soda in the other, and also drive. The officer was not impressed. Around that time Sam comes along. He is furious regarding the significant dent in his new car. Molly says she has insurance and that she will cover the whole incident. Sam says that is insufficient. The officer is annoyed because it is his lunch break. He tells Molly that she must obey the law and proceeds to write several citations to her. Which of the following is true regarding Molly's predicament?
A. Public law only.
B. Private law only.
C. Public law, private law, civil law, and criminal law.
D. Criminal law and public law only.
E. Civil law and private law only.
Answer:
C.
Explanation:
Under civil law, Molly has caused damages to sam's car and she has to be held liable for this.
She has also violated criminal law as her action is against the public as a unit. She violated this by driving and endangering the lives of people by talking on phone while driving.
She has also violated public alw as criminal law is one of the types of public law.
She is in violation of private law by causing damages to sam's car. Private law has to do with the relationship existing between people, one of such example is the law of property.
A man with $20,000 to invest decides to diversify his investments by placing $10,000 in an account that earns 5.2% compounded continuously and $10,000 in an account that earns 6.4% compounded annually. Use graphical approximation methods to determine how long it will take for his total investment in the two accounts to grow to $35,000. It will take approximately nothing years for his
Answer:
9.749 years
Explanation:
Given that :
Principal, P = 20,000
Total investment A = 35000
Investment 1:
P = $10,000
Compounded continuously at r = 5.2% = 0.052
A = Pe^rt
Investment B:
P = $10,000
Compounded annually at r = 6.4% = 0.064
A = P(1 + r)^t
Hence, final amount, A on both investment = 35000
A = Pe^rt + P(1 + r)^t
35000 = 10000e^0.052t + 10000(1 + 0.064)^t
Divide through by 10000
3.5 = e^0.052t + 1.064^t
t = 9.749123
t = 9.749 years
You are looking at a one-year loan of $26,000. The interest rate is quoted as 11 percent plus two points. A point on a loan is 1 percent (one percentage point) of the loan amount. Quotes similar to this one are common with home mortgages. The interest rate quotation in this example requires the borrower to pay two points to the lender up front and repay the loan later with 11 percent interest.
What rate would you actually be paying here? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Interest rate %
Answer:
the rate of interest is 13.27%
Explanation:
The computation of the actual rate paid is shown below;
Present value is
= $26,000 - 2% of $26,000
= $26,000 - $520
= $25,480
The future value is
= $26,000 × (1 + 0.11)
= $28,860
Now as we know that
Future value = Present value × (1 + rate of interest)^number of years
$28,860 = $25,480 × (1 + rate of interest)
So, the rate of interest is 13.27%
Rose Riley's parents have booked and paid for a family trip to Aspen, Colorado, during her spring break. Rose's friends recently decided to drive to Destin, Florida, for spring break. Rose needs to decide whether to join her parents in Aspen or drive to the beach with her friends. The opportunity costs of joining her friends on the trip to Destin include each of the following except:____.
a. her parents' anger if she skips the family trip to Aspen.
b. her contribution to gas money for the drive to Destin.
c. the hotel costs she will split with her friends in Destin.
d. the ski lift ticket her parents have already purchased for her.
Answer:
D.
Explanation:
The opportunity cost is the cost or the costs that she would be incurring for foregoing the trip to aspen colorado with her family members. Options A, b and c are all opportunity costs of not going on this trip.
Therefore the answer is option d.
The common stock of Eddie's Engines, Inc. sells for $18 a share. The stock is expected to pay $1.58 per share next month when the annual dividend is distributed. Eddie's has established a pattern of increasing their dividends by 2.8% annually and expects to continue doing so. What is the market rate of return on this stock
Answer:
11.6%
Explanation:
Calculation for What is the market rate of return on this stock
Using this formula
Rate of return=D/P + g
Where,
D=1.58 per share
P=$18
g=.028
Let plug in the formula
Rate of return=1.58/$18+.028
Rate of return =0.088+.028
Rate of return=0.116*100
Rate of return=11.6%
Therefore the market rate of return on this stock will be 11.6%
Why might Robert choose to attend a technical school rather than a four-year university?
Select one:
a. There are more options and greater earning potential at technical schools.
b. There are more opportunities for advancement in technical schools.
c. Some trades are in higher demand than certain university degrees.
d. The social aspect of technical schools is more appealing.
Answer:
b. There are more opportunities for advancement in technical schools.
Explanation:
Technical schools teach more specific courses and generally last one or two years. If a student needs to get some type of specific education that allows to work fast, e.g. becoming an electrician, a technical school is a better option. While college careers yield higher benefits in the long run, in the short run some people might need to get technical degrees.
Answer:
The answer is C. Some trades are higher in demand then certain university degrees.
Explanation:
I took the test :)
Amazon Inc. is one of the world's leading e-commerce companies, with almost $120 billion in revenues for the fiscal year ended December 31, 2017. For the year ended December 31, 2017, Amazon's cost of goods sold was $111,934 million. Assume that all purchases were made on account. The following T-accounts reflect information contained in the company's 2017 and 2016 balance sheets (in millions).
Inventories Account payable
12/31/2016 Bal. $11,461 $25,309 12/31/2016 Bal.
12/31/2017 Bal. $16,047 $34,616 12/31/2017 Bal.
Required:
a. Prepare the entry, using the financial statement effects template and in journal entry form, to record cost of goods sold for the year ended December 3 1 , 2017.
b. Prepare the entry, using the financial statement effects template and in journal entry form, to record Amazon's inventory purchases for the year ended December 31, 2017. (Assume all purchases are made on account.)
c. What amount did Amazon pay in cash to its suppliers for the year ended December 3 1 , 2017?
Answer:
a. Date Accounts Title & Explanation Debit $'m Credit $'m
Dec 31, 2017 Cost of Goods Sold $111,934
Inventories $111,934
(COGS recorded for 2017 sale)
b. Date Accounts Title & Explanation Debit $'m Credit $'m
Dec 31, 2017 Inventories $116,520
Accounts Payable $116,520
(Inventories purchased in 2017)
Inventory Purchases = COGS + Closing Inventory - Opening Inventory = $111,934 + $16,047 - $11,461 = $116,520
c. Date Accounts Title & Explanation Debit $'m Credit $'m
Dec 31 2017 Accounts Payable $107,213
Cash $107,213
(Payment to suppliers for 2017 purchases)
Payment to suppliers = Purchases + Opening AP balance - Closing AP Balance = $116,520 + $25,309 - $34,616 = $107,213.
Which of the following is a simple sentence?
a. Because we will be reducing employee health insurance benefits, some employees may be unhappy; however, we must make sure that they understand the reason for the change.
b. HMO and PPO insurance plans offer additional cost savings.
c. Having healthy employees decreases the cost of monthly premiums; therefore, we will be implementing a wellness program.
d. If health insurance costs continue to rise, employee copays may increase.
The simple sentence is:b. HMO and PPO insurance plans offer additional cost savings.
A simple sentence is a sentence with one independent clause (also called a main clause). It can have a compound subject or predicate. There is only one independent clause in a simple sentence and it expresses a single thought. Among the given sentences, the simple sentence is:b. HMO and PPO insurance plans offer additional cost savings.
Explanation:The sentence "HMO and PPO insurance plans offer additional cost savings" is a simple sentence because it contains only one subject-verb pair, “HMO and PPO insurance plans” (subject), “offer” (verb).
The sentence is clear and straightforward. It contains no dependent clauses or conjunctions that join two independent clauses. Hence, this sentence is a simple sentence.
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You have decided to undertake a project and have defined the main research question as "what are the opinions of consumers to a 20% reduction in weight, with the price remaining the same, of a pack of lucky me pancit canton?" Write a hypothesis that you could test in your project.
What Characteristics of the Confederate States of American made it a confederal government when compared to the government of the United States?
Answer:
Explanation:
The Confederate States of America can also be regarded as Confederate States was regarded as unrecognized breakaway state which exist between
year 1861 and 1865 which rose against
United States of America when she was experiencing American Civil War.
Characteristics of the Confederate States of American made it a confederal government when compared to the government of the United States are;
✓The central government of
The Confederate States of America is weaker compare to United States.
✓The sovereignty and power of individual states is more than US States
✓Issues such as national economic as well as foreign issues only are been handled by central government of the Confederate States
3. Curve Number and SCS Travel Time Assignment (2 pts) You need to calculate the curve number for a site which is composed of: 25 acres industrial buildings, 125 acres 1 acre lots, 60 acres parks/open space with good cover, 40 acres of commercial development, and 225 acres of meadows. The soil was determined to be 50% Sand, 25 % Silt and 25% Clay. a. Determine the Soils Type b. Determine Curve Number for AMC III.
Solution :
It is given that the soil consists of :
Sand -- 50 %
Silt -- 25 %
Clay -- 25 %
Clay is present in the soil and so it has a very slow infiltration rates when the soil is thoroughly wetted.
a). Therefore the type of soil bis HSG Group D.
b). It is give that :
Industrial building is 25 acres, i.e.
CN = 93
adjusted CN = 93 x 1 = 93
I acre lots is 125 acres, i.e.
CN = 84
Adjusted CN = 84 x 1.07 = 89.88
= 90 (approx.)
60 acres of open or park space, i.e.
CN = 80
Adjusted CN = 80 x 1.14 = 91.2
= 91 (approx.)
225 acres of the meadows
CN = 78
Adjusted CN = 78 x 1.14 = 88.92
= 89 (approx.)
Commercial development of 40 acres, i.e.
CN = 95
Adjusted CN = 95 x 1 = 95
Therefore the curve number is given by :
[tex]$=\frac{(25 \times 93)+(125 \times 90)+(60 \times 91)+(40 \times 95)+(225 \times 78)}{25+125+60+40+225}$[/tex]
[tex]$= 85.02$[/tex]
[tex]$\sim 85$[/tex]
Thus, the curve number for the site for AMC III = 85
Answer:
It is given that the soil consists of :
Sand -- 50 %
Silt -- 25 %
Clay -- 25 %
Clay is present in the soil and so it has a very slow infiltration rates when the soil is thoroughly wetted.
a). Therefore the type of soil bis HSG Group D.
b). It is give that :
Industrial building is 25 acres, i.e.
CN = 93
adjusted CN = 93 x 1 = 93
I acre lots is 125 acres, i.e.
CN = 84
Adjusted CN = 84 x 1.07 = 89.88
= 90 (approx.)
60 acres of open or park space, i.e.
CN = 80
Adjusted CN = 80 x 1.14 = 91.2
= 91 (approx.)
225 acres of the meadows
CN = 78
Adjusted CN = 78 x 1.14 = 88.92
= 89 (approx.)
Commercial development of 40 acres, i.e.
CN = 95
Adjusted CN = 95 x 1 = 95
Therefore the curve number is given by :
Thus, the curve number for the site for AMC III = 85
Explanation:
An article in The Globe and Mail, February 16, 2002, reported that IBM used the $300 million proceeds of a sale of one of its business units to reduce operating expenses in its fourth quarter 2001 income statement. This added about 8 cents per share to its fourth quarter earnings. As a result, IBM beat analysts' forecasts by 1 cent per share.
IBM defended its treatment by claiming that buying and selling businesses is a normal business practice, and that most of the sale proceeds related to intellectual property that it had developed. The article quotes a Merrill Lynch analyst as saying, "Our only concern is that the company could have done more to call out the magnitude of the transaction." According to the article, IBM's share price fell by 4% as a result of this news.
While not mentioned in this article, the SEC opened a preliminary inquiry into IBM's accounting practice, expressing concerns that IBM had let it be known that the reason for its higher operating earnings was tight cost controls, rather than the sale proceeds. This inquiry was subsequently dropped, but the SEC issued a bulletin reminding firms to report gains or losses on asset sales separately from operating costs.
Required
Explain why IBM's share price dropped following the Merrill Lynch analyst's comment and the news of the SEC's preliminary inquiry.
Answer:
The sale of business units are one time events that should not be common. If the only way that IBM can show profit is by selling business divisions, in a very short time it will run out of divisions to sell. A company's intrinsic value is given by its cash flows, especially the operating cash flow.
Shauna and Danielle decided to liquidate their jointly owned corporation, Woodward Fashions Inc. (WFI). After liquidating its remaining inventory and paying off its remaining liabilities, WFI had the following tax accounting balance sheet:
FMV Adjusted Basis Appreciation
Cash $ 200,000 $ 200,000
Building 50,000 10,000 40,000
Land 150,000 90,000 60,000
Total $ 400,000 $ 300,000 $ 100,000
Under the terms of the agreement, Shauna will receive the $200,000 cash in exchange for her 50 percent interest in WFI. Shauna's tax basis in her WFI stock is $50,000. Danielle will receive the building and land in exchange for her 50 percent interest in WFI. Danielle's tax basis in her WFI stock is $100,000. Assume for purposes of this problem that the cash available to distribute to the shareholders has been reduced by any tax paid by the corporation on gain recognized as a result of the liquidation. (Leave no answer blank. Enter zero if applicable. Negative amounts should be indicated by a minus sign.)
10.
value:
1.00 points
Required information
a. What amount of gain or loss does WFI recognize in the complete liquidation?
References
eBook & Resources
ProblemDifficulty: 2 MediumLearning Objective: 19-05 Calculate the tax consequences that apply to the parties to a complete liquidation of a corporation.
Check my work
11.
value:
1.00 points
Required information
b. What amount of gain or loss does Shauna recognize in the complete liquidation?
References
eBook & Resources
ProblemDifficulty: 2 MediumLearning Objective: 19-05 Calculate the tax consequences that apply to the parties to a complete liquidation of a corporation.
Check my work
12.
value:
1.00 points
Required information
c. What amount of gain or loss does Danielle recognize in the complete liquidation?
References
eBook & Resources
ProblemDifficulty: 2 MediumLearning Objective: 19-05 Calculate the tax consequences that apply to the parties to a complete liquidation of a corporation.
Check my work
13.
value:
1.00 points
Required information
d. What is Danielle’s tax basis in the building and land after the complete liquidation?
Answer:
1. Based on the information given WFI transaction is a taxable transaction which include a recognizes gain of the amount of $40,000 on the transfer of the building as.well as gain of the amount of $60,000 on the transfer of the land.
2. Shauna will recognizes gain of the amountc of $150,000 on the transfer of her stock made to WFI calculated as ($200,000 - $50,000) .
Explanation:
1. Based on the information given WFI transaction is a taxable transaction which include a recognizes gain of the amount of $40,000 on the transfer of the building as.well as gain of the amount of $60,000 on the transfer of the land.
2. Shauna will recognizes gain of the amount of $150,000 on the transfer of her stock made to WFI calculated as ($200,000 - $50,000) .