An investment counselor calls with a hot stock tip. He believes that if the economy remains​ strong, the investment will result in a profit of ​$10,000. If the economy grows at a moderate​ pace, the investment will result in a profit of ​$30,000. ​However, if the economy goes into​ recession, the investment will result in a loss of ​$30,000. You contact an economist who believes there is a ​30% probability the economy will remain​ strong, a 60​% probability the economy will grow at a moderate​ pace, and a 10​% probability the economy will slip into recession. What is the expected profit from this​ investment?

Answers

Answer 1

Answer:

6,000

Explanation:

The expected value from this investment can be calculated by possible values for random variables by multiplying them by their probability

DATA

Strong  = 30,000   , probability = 30%

Moderate = 10,000 , probability = 60%

Weak = -30,000 , probability = 10%

Calculation

Expected profit = Values x Probability

Expected profit = (30,000 x 30%) + (10,000 x 60%) + ( 30,000 x 10%)

Expected profit = 6,000 + 6,000 -6,000

Expected profit = 6,000


Related Questions

What is the term for the joining of two or more firms involved in different stages of producing the same good or service?
horizontal merger
conglomerate
closely held corporation
vertical merger

Answers

Answer:

vertical merger

Explanation:


What happens when the price of a good increases

Answers

Answer:

the value of good increases (goes up)

Zach attended Champion University during 2014-2018. He lived at home and was claimed by his parents as a deduction during the entire duration of his education. He incurred education expenses of $21,000 during college of which $3,780 was paid for by scholarships. To finance his education, he borrowed $12,500 through a federal student loan program and borrowed another $8,500 from a local lending institution for educational purposes. After graduation, he married and moved with his spouse to a distant city. In 2019, he incurred $1,250 of interest on the federal loans and $850 on the lending institution loan. He filed a joint return with his spouse showing modified AGI of $122,500. What amount of student loan interest can Zach and his spouse deduct in 2019, if any

Answers

Answer:

$1722

Explanation:

incurred expenses = 21000

scholarship amount = 3780

interest on federal loan = 1250

interest on lending institution = 850

Education expenses:

21000 - 3780

= $17220

= $17220/21000

= $0.82 = 82%

the interest incurred would be:-

intereston federal loan + interest from lending institution

= $1250 + $850

= $2100

$2100 * $850

= $1722

Modern Flooring is considering a new product line. The new line would require $134,000 of fixed assets and net working capital of $24,000. The firm will apply straight-line depreciation to a zero salvage value over three years. The new line is expected to produce an operating cash flow of $35,000 the first year with that amount decreasing by 10 percent annually for two years before the new line will be discontinued. The fixed assets can be sold for $25,000 at the end of the project and all net working capital will be recovered. What is the net present value of the new line at a discount rate of 11.5 percent and a tax rate of 35 percent

Answers

Answer:

-51,784

Explanation:

Net present value can be calculated by first calculating the present values of operating cash flows each year and the sum up all the present values.

Year                                    0                1             2              3

Operating CF                                    35000    31500     28350

Fixed asset                  -134000

Net working capital     -24000                                       24000

Disposal after tax                                                             16250

(25000x0.65)

Net cashflow                -158000       35000    31500    68600

PV Factor                           1               0.896     0.804      0.721

PV                                -158000        31390       25337     49488

NPV =  -158000  + 31390 + 25337  + 49488

NPV = -51,784

Workings

PV Factor

Year 0  =   1/(1.115)^0 = 1

Year 1  =   1/(1.115)^1 = 0.896          

Year 2  =   1/(1.115)^2 = 0.804

Year 3  =   1/(1.115)^3 = 0.721

What is a "Halo effect?" Review Later This bias occurs when decision makers seek out evidence that confirms their previously held beliefs, while discounting or diminishing the impact of evidence in support of differing conclusions. This is the overreliance on an initial single piece of information or experience to make subsequent judgments. Once an anchor is set, other judgments are made by adjusting away from that anchor, which can limit one’s ability to accurately interpret new, potentially relevant information. This is an observer’s overall impression of a person, company, brand, or product, and it influences the observer’s feelings and thoughts about that entity’s overall character or properties. It is the perception, for example, that if someone does well in a certain area, then they will automatically perform well at something else regardless of whether those tasks are related. This bias occurs when a person overestimates the reliability of their judgments. This can include the certainty one feels in her own ability, performance, level of control, or chance of success.

Answers

Answer:

Option C (This is an observer's......related) is the right option.

Explanation:

This would be the individual's evaluation of such an individual, business, brand as well as commodity by an observer, and then it affects the thoughts and emotions including its observer about either the personal appearance including its object. It is a belief that just because someone performs well enough in a certain area, independently of those same activities required, they will naturally do well in another one.

All those other decisions also aren't linked to the circumstance issued. So, the solution is indeed the right one.

A manufacturing company produces products 1, 2, and 3. The three products have the following resource requirements and produce the following profit:

Profit Labor (hr/unit) Material (lb/unit) Profit ($/unit)
1 5 4 $3
2 2 6 5
3 4 3 2

At present, the firm has a daily labor capacity of 240 available hours and a daily supply of 400 pounds of material. Management has developed the following set of goals, arranged in order of their importance to the firm:

1. Because of recent labor relations difficulties, management wants to avoid underutilization of normal production capacity.
2. Management has established a satisfactory profit level of exist500 per day.
3. Overtime is to be minimized as much as possible.
4. Management wants to minimize the purchase of additional materials to avoid handling and storage problems.

Required:
Formulate a goal programming model (multi-criteria model) to determine the number of each product to produce to best satisfy the goals.

Answers

di+, di- are the deviation variables for i-th objectives.  

Product_1, product_2, product_3 are respectively the products 1,2 and 3 to be produced in a day. Those are the Standard variables

goal: (1/400)*d4+ (2/240)*d3+ (3/500)*d2-+ Min (4/240)*d1-

variables are equal or bigger than zero

400 = 5*product_1 + 6*product_2 + 3*product_3 - d4- + d4+  

240 = 5*product_1 + 2*product_2 + 4*product_3 - d3- + d3+  

240 = 5*product_1 + 2*product_2 + 4*product_3 + d1- - d1+  

500 = 3*product_1 + 5*product_2 + 2*product_3 + d2- - d2+  

Danielle has to send a message to her manager. It is taking her extra time to draft the message because of the number of edits she has to make. What type of communication is Danielle carrying out?

Answers

Answer:

Written communication

Explanation:

Written communication involves writing the message that you want to communicate. A written message can be edited and rectified before sending it to the receiver.

Project:
Develop a presentation to be used as an advertising brochure for both an "Imaginary
hotel/resort/lodging" and your selected state. This can be best done on either google docs or sides.
Pictures and Colors are required. Be sure to include different attractive features to include, but not
limited to:
Hotel
-Amenities
-Dining Options
-Tours Provided
State
- Tourism
-Attractions
-Food
You can earn up to 50 extra credit points if you prepare a food item popularized in your state and include
pictures and a critique from someone you cooked for.
TO DO:

Answers

Answer:

So should i create a power point for you and then include a link or just type it up with images and you can copy and paste into slide i will do the latter.

Explanation:

After graduating, you might decide to start a small business. As discussed in this chapter, owners of any business need to know how to calculate the cost of their products. In fact, many small businesses fail because they don't accurately calculate their product costs, so they don't know if they are making a profit or losing money—until it's too late.Suppose that you decide to start a landscape business. You use an old pickup truck that you've fully paid for. You store the truck and other equipment in your parents' barn, and you store trees and shrubs on their land. Your parents will not charge you for the use of these facilities for the first two years, but beginning in the third year they will charge a reasonable rent. Your mother helps you by answering phone calls and providing customers with information. She doesn't charge you for this service, but she plans on doing it for only your first two years in business.In pricing your services, should you include charges for the truck, the barn, the land, and your mother's services when calculating your product cost?InstructionsWrite a response indicating your position regarding this situation. Provide support for your view.

Answers

Answer:

When the value of the service ends, it will be necessary to include the charges for the truck, the granary and the land. It is not necessary to include your mother's service charges, as she is not charging for the service.

Explanation:

Setting up your own business can be quite a big challenge and you need a lot of control and planning so you don't have to lose money. One of the biggest challenges of becoming an entrepreneur is to price the service performed. As was said in the question above, many people do not know how to place a value on the service produced, mainly because they are unable to identify the expense for service production.

In summary, the expense to produce the service must take into account all charges related to any element necessary to perform the service. Thus, we can consider that in the case shown in the question above, it will be necessary for you to include expenses with the truck (gasoline, repairs, exchange of parts, etc.), with the rent of the granary, with the rent of the land and with the gratification of any employee. Since your mother is not charging for her services, this charge should not be included, however, your mother will only be in this service for two years. If the person replacing your mother charges for the service, this should be added to the cost.

A small nation of 10 people idolizes the TV show The Voice. All they produce and consume are karaoke machines and CDs, in the following amounts: Karaoke Machines CDs Quantity Price Quantity Price (Dollars) (Dollars) 2020 20 50 60 5 2021 21 70 80 6 Using a method similar to that used to calculate the consumer price index, the percentage change in the overall price level is . (Note: Use 2020 as the base year, and fix the basket at 2 karaoke machines and 6 CDs.) Using a method similar to that used to calculate the GDP deflator, the percentage change of the overall price level is . (Note: Again, use 2020 as the base year.) Which of the following statements is correct

Answers

Answer:

1. Using a method similar to that used to calculate the consumer price index, the percentage change in the overall price level is;

Value of market basket of the good in 2020

= (50 * 2) + (5 * 6)

= $130

Value of market basket of the good in 2021

= (70 * 2) + (6 * 6)

= $176

CPI in 2020

= 130/ 130 * 100

= 100

CPI in 2021

= 176 / 130 * 100

= 135.38

Percentage change

= (135.38 - 100)/100

= 35.38%.

2. Using a method similar to that used to calculate the GDP deflator, the percentage change of the overall price level is ;

Nominal GDP in 2020 = (50 * 20) + (5 * 60) = $1,300

Nominal GDP in 2021 = (70 * 21) + (6 * 80) = $1,950

Real GDP using 2020 prices

Real GDP in 2020 = (50 * 20) + (5 * 60) = $1,300

Real GDP in 2021 = (50 * 21) + (5 * 80) = $1,450

GDP deflator in 2020 = (Nominal GDP in 2020 / Real GDP in 2020) * 100 = (1,300 / 1,300) * 100 = 100

GDP deflator in 2021 = (Nominal GDP in 2021 / Real GDP in 2021) * 100 = (1,950 / 1,450) * 100 = 134.48

Percentage Change = [(134.48 - 100) / 100] * 100

= 34.48%

Andy works at AZ Corporation. He has been working very hard and feels he deserves a pay hike. He wants to seek a meeting with Anna, the manager of AZ Corp., and ask for a raise. Since Anna is busy preparing for the annual board meeting, Andy decides to delay the meeting with Anna for a while. Which of the following dimensions to context influenced Andy's interaction with Anna? Group of answer choices The physical context The social context The chronological context The cultural context

Answers

The correct answer is C. The chronological context

Explanation:

The chronological context is related to the time during which a situation or communication occurs; this includes the age, year, season, month, day, etc. In the case presented, the chronological context is some days before the annual board meeting. Moreover, this condition of time is the one that makes Andy delay her meeting with Anna because she knows how busy is Anna during this time of the year, and based on this, she considers it is better to wait before asking her for a rise. According to this, the dimension that influences Andy is the chronological context.

Beginning work in process inventory: Units in beginning work in process inventory500 Materials costs$ 7,800 Conversion costs$ 9,100 Percent complete with respect to materials85% Percent complete with respect to conversion55% Units started into production during the month7,000 Units transferred to the next department during the month6,100 Materials costs added during the month$ 102,700 Conversion costs added during the month$ 184,400 Ending work in process inventory: Units in ending work in process inventory1,400 Percent complete with respect to materials60% Percent complete with respect to conversion50% The cost per equivalent unit for materials for the month in the first processing department is closest to:

Answers

Answer:

$15.76

Explanation:

beginning WIP 500 units

materials 85% complete, so 15% added during the period (EUP during current month = 75 units)

conversion costs 55% complete, so 45% added during the period (EUP during current month = 225 units)

units started 7,000

units transferred out 6,100

units started and transferred out = 6,100 - 500 = 5,600 (EUP = 5,600 units)

ending WIP 1,400 units

materials 60% complete (EUP = 840 units)

conversion costs 50% complete (EUP = 700 units)

materials cost for the month = $102,700

total EUP for the month = 6,515 units

total cost per EUP for materials = $102,700 / 6,515 = $15.7636 ≈ $15.76

Lutz Company produces a product in two departments: (1) Mixing and (2) Finishing. The company uses a process cost accounting system. (a) Purchased raw materials for $50,000 on account. (b) Raw materials requisitioned for production were: Direct materials Mixing department $20,000 Finishing department 14,000 (c) Incurred labor costs of $74,000. (d) Factory labor used: Mixing department $44,000 Finishing department 30,000 (e) Manufacturing overhead is applied to the product based on machine hours used in each department: Mixing department-400 machine hours at $30 per machine hour. Finishing department-500 machine hours at $20 per machine hour. (f) Units costing $56,000 were completed in the Mixing Department and were transferred to the Finishing Department. (g) Units costing $70,000 were completed in the Finishing Department and were transferred to finished goods. (h) Finished goods costing $40,000 were sold on account for $55,000.

Answers

Answer and Explanation:

The Journal entries are shown below:-

a. Raw materials inventory Dr, $50,000

       To Accounts Payable $50,000

(Being purchase of raw material is recorded)

b. Work in process - mixing Dr, $20,000

Work in process - finishing Dr, $14,000

        To Raw materials inventory $34,000

(Being work in process is recorded)

c. Factory labor Dr, $74,000

      To Wages payable $74,000

(Being labor cost incurred is recorded)

d. Work in process - mixing Dr, $44,000

Work in process - finishing Dr, $30,000

            To Factory labor $74,000

(Being factor labor used is recorded)

e. Work in process - mixing Dr, $12,000 (400 × $30)

Work in process - finishing $10,000 (500 × $20)

          To Manufacturing overhead $22,000

(Being manufacturing overhead applied is recorded)

f. Work in process - finishing Dr, $56,000

          To Work in process - mixing $56,000

(Being completed is recorded)

g. Finished goods Dr, $70,000

         To Work in process - finishing $70,000

(Being is recorded)

h. Accounts receivable Dr, $55,000

          To Sales revenue $55,000

(Being sales is recorded)

Cost of goods sold Dr, $40,000

         To Finished goods $40,000

(Being cost of goods sold is recorded)

Determine the amount of tax liability in the following situations. In all cases, the taxpayer is using the filing status of married filing jointly. Use the appropriate Tax Tables or Tax Rate Schedules.
1. Taxable income of $62,449 that includes a qualified dividend of $560.
2. Taxable income of $12,932 that includes a qualified dividend of $322.
3. Taxable income of $144,290 that includes a qualified dividend of $4,384. (Round your intermediate computations to 2 decimal places and final answer to the nearest whole dollar amount.)
4. Taxable income of $43,297 that includes a qualified dividend of $971.
5. Taxable income of $262,403 that includes a qualified dividend of $12,396. (Round your intermediate computations to 2 decimal places and final answer to the nearest whole dollar amount.)

Answers

Answer:

1. Taxable income of $62,449 that includes a qualified dividend of $560.

tax liability = $1,975 + [12% x ($62,449 - $19,750)] = $7,098.88

2. Taxable income of $12,932 that includes a qualified dividend of $322.

tax liability = $12,932 x 10% = $1,293.20

3. Taxable income of $144,290 that includes a qualified dividend of $4,384.

tax liability = $9,235 + [22% x ($144,290 - $80,250)] + ($4,384 x 15%) = $23,981.40 ≈ $23,981

4. Taxable income of $43,297 that includes a qualified dividend of $971.

tax liability = $1,975 + [12% x ($43,297 - $19,750)] = $4,800.64 ≈ $4,801

5. Taxable income of $262,403 that includes a qualified dividend of $12,396.

tax liability = $29,211 + [24% x ($262,403 - $171,050)] + ($12,396 x 15%) = $52,995.12 ≈ $52,995

Explanation:

I used the 2020 tax bracket. Everyone earning over $78,750 but less than $488,850 must pay a 15% tax rate for their qualified dividends.

Deepa Dalal opened a free-standing radiology clinic. She had anticipated that the costs for the radiological tests would be primarily fixed, but she found that costs increased with the number of tests performed. Costs for this service over the past nine months are as follows:
Month Radiology Test Total Cost
January 2,800 $135,500
February 2,600 $135,060
March 3,100 $175,000
April 3,500 $170,600
May 3,400 $176,900
June 3,700 $186,600
July 3,840 $174,450
August 4,100 $195,510
September 3,450 $85,300
1) Compute the cost formula for radiology services using the high-low method.
2) Calculate the predicted cost of radiology services for October for 3,500 tests using the formula found in Requirement 1.

Answers

Answer:

Results are below.

Explanation:

To calculate the fixed and variable cost under the high-low method, we need to use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (195,510 - 135,060) / (4,100 - 2,600)

Variable cost per unit=  $40.3

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 195,510 - (40.3*4,100)

Fixed costs= $30,280

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 135,060 - (40.3*2,600)

Fixed costs= $30,280

Now, the total cost for 3,500 tests:

Total cost= 30,280 + 40.3*3,500

Total cost= $171,330

g Phoenix industries has pulled off a miraculous recovery. Four years ago it was near bankruptcy. Today, it was announced a $1 per share dividend to be paid a year from now, the first dividend since the crisis. Analysts expect dividends to increase by $1 a year for another 2 years. After the third year dividends growth is expected to settle down to a more moderate longterm growth rate of 8%. If the firm's investors expect to earn a return of 16% on this stock, what must the price be

Answers

Answer:

Market Share price $ 31,12

Explanation:

The price of the stock will be the same as the present value of their dividends:

Year        Dividend   Presnet Value

First year $1,00 $ 0,8621

Second   $2,00 $  1,7241

Third       $3,00 $  2,5862

Total Value         $  5,1724

Now, we solve for the horizon value

3 x (1.08) / (0.16 - 0.08) = 40,50

And, as this is three year ahead we also discounted like the other dividends:

[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]  

Maturity  40,50

time   3,00  

rate  0,16

[tex]\frac{40,5}{(1 + 0,16)^{3} } = PV[/tex]  

PV   25,95  

And last, we add up the horizon with the other dividends:

5.17 + 25,95 = 31,12

Sanchez Corporation Selected Financial Information 12/31/X2 12/31/X1 Cash $ 20,000 $ 25,000 Accounts receivable (net) 100,000 110,000 Inventories 190,000 155,000 Total current assets 310,000 290,000 Long-term assets 230,000 210,000 Current liabilities 200,000 190,000 Long-term liabilities 40,000 50,000 Shareholders' equity 300,000 260,000 Net income $ 40,000 Interest expense 10,000 Income tax expense 20,000 The debt to equity ratio for 20X2 is: Multiple Choice 0.80 0.44 0.67 0.13

Answers

Answer:

0.80

Explanation:

The computation of the debt to equity ratio is shown below:-

Total debt = Current Liabilities + Long - term liabilities

= $200,000 + $40,000

= $240,000

Total Equity = Shareholders’ equity = $300,000

Now,

Debt to equity ratio = Total Debt ÷ Total Equity

= $240,000 ÷ $300,000

= 0.80

The following transactions occurred during July: Received $940 cash for services provided to a customer during July. Received $2,800 cash investment from Bob Johnson, the owner of the business. Received $790 from a customer in partial payment of his account receivable which arose from sales in June. Provided services to a customer on credit, $415. Borrowed $6,400 from the bank by signing a promissory note. Received $1,290 cash from a customer for services to be performed next year. What was the amount of revenue for July

Answers

Answer:

July's revenue = $940 + $415 = $1,355

Explanation:

Received $940 cash for services provided to a customer during July. ⇒ INCLUDED IN JULY'S REVENUE

Received $2,800 cash investment from Bob Johnson, the owner of the business. ⇒ NOT CONSIDERED REVENUE

Received $790 from a customer in partial payment of his account receivable which arose from sales in June. ⇒ INCLUDED IN JUNE'S REVENUE

Provided services to a customer on credit, $415. ⇒ INCLUDED IN JULY'S REVENUE

Borrowed $6,400 from the bank by signing a promissory note. ⇒ NOT CONSIDERED REVENUE

Received $1,290 cash from a customer for services to be performed next year. ⇒ DEFERRED REVENUE

Assume that you inherited some money. A friend of yours is working as an unpaid intern at a local brokerage firm, and her boss is selling securities that call for 4 payments of $80 (1 payment at the end of each of the next 4 years) plus an extra payment of $1,000 at the end of Year 4. Your friend says she can get you some of these securities at a cost of $900 each. Your money is now invested in a bank that pays a 10% nominal (quoted) interest rate but with quarterly compounding. You regard the securities as being just as safe, and as liquid, as your bank deposit, so your required effective annual rate of return on the securities is the same as that on your bank deposit. You must calculate the value of the securities to decide whether they are a good investment. What is their present value to you?

Answers

Answer: The securities are a good investment as their Present Value of $925.17 is greater than their cost of $900.

Explanation:

First calculate the Effective annual rate of return;

= (( 1 + r/n)^n) - 1

= ((1 + 10%/4 ) ^ 4 ) - 1

= 10.38%

The present value of the security is;

=  (80 / 1.1038 ) + (80 / 1.1038 ^ 2) + (80 / 1.1038 ^ 3) + (80 / 1.1038 ^ 4 ) + (1000 / 1.1038 ^ 4 )

= $925.17

Kale, a California CPA, is a sole practitioner who prepared 500 tax returns in 20X6. At the end of 20X6 she took over a tax practice from a close friend who died suddenly and will now prepare nearly 900 returns during 20X7. Due to the increased work load and her inability to hire qualified help, Kale because so busy that she forgot to complete all of her required continuing professional education. When it became time to renew her license in May 20X7 she realized that she was 30 hours short of the total hours required, she had not taken enough accounting and auditing hours, and it was the renewal period in which she was required to take her California Regulatory Review course which she had not completed within the previous six years. Given the situation, what must Kale do

Answers

Answer:

Kale should apply to have her license put on inactive status while she completes her CPE requirements. During thatperiod of time she may not engage in the practice of public accounting

Explanation:

2) If a country, like the US, can produce all of the goods and services needed by
their citizens, why would they want to specialize in producing only some products
and trade with other countries for other products wanted by their citizens?

Answers

Answer:

See below

Explanation:

Specialization means a company or country concentrating on producing few commodities. In practice, a state or company will focus on the products it can produce more efficiently. It means focusing on goods they can manufacture at a lower cost compared to other countries.  

The USA can specialize in the goods and services it can produce at a lower cost than other nations. It can then export these products to other countries at competitive prices. For products that are costly to manufacture in the USA, it is prudent to import them from countries that can produce them at lower costs.  

Some products manufactured in other countries at a lower cost may be sold in the USA at fair prices than when produced in the USA.

Compute the discounted payback statistic for Project C if the appropriate cost of capital is 7 percent and the maximum allowable discounted payback period is three years. (Do not round intermediate calculations and round your final answer to 2 decimal places.)



Project C
Time: 0 1 2 3 4 5
Cash flow: –$1,400 $640 $600 $640 $380 $180






Should the project be accepted or rejected?



accepted
rejected

Answers

The answer i think is rejected because the cash flow is not stable

Brief Exercise 3-36 (Algorithmic) Preparing and Analyzing Closing Entries At December 31, 2019, the ledger of Aulani Company includes the following accounts, all having normal balances: Sales Revenue, $83,200; Cost of Goods Sold, $43,700; Retained Earnings, $20,000; Interest Expense, $3,200; Dividends, $5,000; Wages Expense, $8,000, and Interest Payable, $2,100. Required: 1. Prepare the closing entries for Aulani at December 31, 2019. If an amount box does not require an entry, leave it blank. Dec. 31 (Close revenues) Dec. 31 (Close expenses) Dec. 31 (Close Income Summary) Dec. 31 (Close Dividends) 2. How does the closing process affect Aulani's retained earnings? of $

Answers

Answer and Explanation:

1. The Closing entries are shown below:-

a. Sales revenue Dr, $83,200

       To Income summary $83,200

(Being Close revenue is recorded)

b. Income summary Dr, $54,900

       To Cost of goods sold $43,700

        To Interest expense $3,200

        To Wages expense $8,000

(Being Close expense is recorded)

c. Income summary Dr, $28,300 (83,200 - $54,900)

       To Retained earnings $28,300

(Being close income summary is recorded)  

d. Retained earnings Dr, $5,000  

         To Dividend $5,000

(Being Close dividend is recorded)

2. The amount affect after retained earning by  

Net income = $28,300 - $5,000

= $23,300

Which of the following budgeting options increases the marketing budget by the rate of the company's inflation?


rule of thumb budgeting

objective and task budgeting

competitive budgeting

arbitrary budgeting

Answers

Answer:

D. objective and task budgeting I believe

Explanation:

Really difficult, but not impossible, to determine the tasks necessary to reach goals and estimating the costs associated with tasks

3. Continuous review inventory control is being applied to purchase motors for an electric fan manufacturer. Demand is uniformly distributed between 500 and 600 motors per week. Each order costs $250 to prepare, place and receive. Motors cost $2.75/unit and the holding cost rate is 1% per week. Management proposes using the EOQ order quantity and setting reorder points to ensure a 97% fill rate. Find the imputed(implied) cost of a shortage and the expected number of shortages per year.

Answers

Answer:

The expected no. of shortage will be "0.27".

Explanation:

The given values are:

Ordering cost,

O = $250

Holding cost (i),

= 1% (per week)

= 52% (a year)

Cost of goods (C),

= $2.75

The average annual demand is:

[tex]=\frac{600+500}{2}\times 52 \ weeks[/tex]

[tex]=28600 \ units[/tex]

Now,

⇒  [tex]EOQ=\sqrt{(2\times D\times \frac{O}{C}\times i)}[/tex]

              [tex]=\sqrt{2\times 18600\times \frac{250}{2.75}\times 52 \ percent}[/tex]

              [tex]=\sqrt{10000000}[/tex]

              [tex]=3162.27[/tex]

In a year, the number of orders will be:

⇒  [tex]\frac{D}{EOQ}=\frac{28600}{3162.27}[/tex]

            [tex]=9.04 \ i.e., \ 9 \ orders[/tex]

Demand mean will be:

=  [tex]\frac{500+600}{2}[/tex]

=  [tex]550 \ units \ Demand \ SD[/tex]

=  [tex]max[\frac{(Upper \ limit - Mean)}{3} , \frac{(mean-lower \ limit)}{3} ][/tex]

=  [tex]max [\frac{50}{3} ,\frac{50}{3} ][/tex]

=  [tex]16.66 \ units[/tex]

So, in a year, the expected number of the shortages will be:

⇒  [tex]Number \ of \ orders \ in \ a \ year\times fill \ rate[/tex]

⇒  [tex]9\times (1-97 \ percent)[/tex]

⇒  [tex]0.27[/tex]

Acceptance. Amy Kemper was seriously injured when her motorcycle was struck by a vehicle driven by Christopher Brown. Kemper’s attorney wrote to Statewide Claims Services, the administrator for Brown’s insurer, asking for "all the insurance money that Mr. Brown had under his insurance policy." In exchange, the letter indicated that Kemper would sign a "limited release" on Brown’s liability, provided that it did not include any language requiring her to reimburse Brown or his insurance company for any of their incurred costs. Statewide then sent a check and release form to Kemper, but the release demanded that Kemper "place money in an escrow account in regards to any and all liens pending." Kemper refused the demand, claiming that Statewide’s response was a counteroffer rather than an unequivocal acceptance of the settlement offer. Did Statewide and Kemper have an enforceable agreement? Discuss.

Answers

Answer:

In the clarification section down, the definition including its concern is mentioned.

Explanation:

In terms of strategy, two important components necessarily entail an "Agreement."

Offer Acceptance

Step 1: Approval + Bid = Agreement

Step 2: Agreement + Enforceability = Contract.

Throughout water to establish a legal Arrangement or Contract, those would be the two underlying equations to be met. Going to come to something like the case's reality, The counsel for Kemper addressed to Statewide Claims Management, Brown's insurance company agent, calling for "all the premium money something which Mr. Brown seems to be under his insurance contract." Statewide decided to send the document and perhaps freedom of the individual to Kemper throughout reaction to the aforementioned request, however, they pointed to Kemper's current requirement that she should put money during an emergency fund concerning anything and everything outstanding liens.Kemper disagreed with all of the above assumptions as well as denied the proposal, arguing that perhaps the response from Nationwide was a counteroffer. If we correctly examine the aforementioned situation, without even any discussion, we will realize that it is indeed a pure "Counter Bid." Why whenever the offender becomes encouraged with just 2 choices, YES/NO, whenever an Offeror makes an object to something like the Offeree. and then when the promise offers a conditional response, it destroys the initial offer so it corresponds to Counter Offer.In quite a similar manner, the Nationwide reaction to Kemper's letter here alone leads to "Counter Bid" and becomes an Absolute acceptance, but not. i.e., there is no approval of an invitation, and no deal remains.

There is, however, no "Acceptance" to either the original Bid, and therefore no binding mediation agreements between Nationwide and Kemper have been established.

Which of the following is the best example of an ethical statement?

Answers

Answer:

Ethical dilemmas are situations in which there is a difficult choice to be made between two or more options, neither of which resolves the situation in a manner that is consistent with accepted ethical guidelines. When faced with an ethical dilemma, a person is faced with having to select an option that doesn’t align with an established code of ethics or societal norms, such as codes of law and religious teachings, or with their internal moral perceptions of right and wrong. Explore ethical dilemma examples to see how you might handle these difficult situations.

Explanation:

Ethical Dilemma Situations

Ethical dilemmas occur all too frequently in everyday life. There is rarely a clear answer regarding right and wrong. Instead of being able to rely on external standards, people have to rely on their morals and values to navigate such situations. A storytelling approach, as introduced by Lawrence Kohlberg in the 1930s, is often used to encourage people to think through possible outcomes and consequences of ethical dilemmas. 

This is one of the most extreme moral dilemma examples, as well as an ethical dilemma. The choice is between actively causing one person’s death or allowing people (including oneself) to die. Someone following a utilitarian approach to ethics would likely choose to eliminate the person who is stuck, as this philosophy is based on choosing actions that result in the greatest good for the greatest number of people. Someone who focuses primarily on the sanctity of each individual life, however, would not consider harming the person who is stuck to be a viable option. 

Following the Rules

One of the most important characteristics of an effective leader is treating people equitably. This involves fairness and consistency, including regards to applying the rules to everyone equally. What should a coach do when a few superstar players get caught breaking rules that should lead to their suspension from the team immediately before a big game that is very important to the team? 

If the star players don’t play, there is a good chance the team will lose. If the team has to win this game to advance to the championship game, should that affect the coach’s decision?

If the coach doesn’t apply appropriate consequences to the actions of the players who broke the rules, what lesson are those players learning? Will they continue to break rules?

What about the other players who do follow the rules. Will they learn that the rules are just suggestions and feel like they don’t need to comply in the future? 

What if one of the players who broke the rules will miss a chance to be seen by professional scouts if he doesn’t play in the game? 

What if the team’s school will earn a large amount of money from television coverage of the big game if the team goes to the championship?

What if the coach is set to earn a big bonus or significant pay increase if the team advances to the championship game? 

Coaches are responsible for winning, but they’re also responsible for setting an appropriate example of leadership for players and treating all team members fairly. What may seem to be an obvious choice between right and wrong at first glance is really much more complicated. 

A tough decision must be made between two or more solutions in an ethical dilemma when neither of them answers the issue in a way that complies with generally recognized ethical standards.

What is ethical dilemma?

In philosophy, ethical dilemmas—also known as ethical paradoxes or moral dilemmas—arise when an agent must choose between two competing moral obligations, none of which takes precedence.

A definition that is similarly comparable describes ethical situations as ones where there is no right decision to be made.

Taking credit for other people's efforts is one example of an ethical conundrum. Giving a customer a subpar product so you can profit. using insider information for personal gain.

A moral (ethical) dilemma is a circumstance in which there is a choice to be made, a decision to be made, an act or action to be taken, a solution to be found, and there may be an unpleasant problem involved.

There are many different kinds of moral quandaries, but the following categories best describe the most prevalent ones:

Epistemic and ontological dilemmas are listed first, followed by self-inflicted and externally imposed dilemmas, obligation dilemmas, prohibition dilemmas, and dilemmas involving a single agent and multiple agents.

Learn more about ethical dilemma, here

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Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transaction. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
1. Stockholders invest $40,000 in cash in starting a real estate office operating as a corporation.
2. Purchased $500 of supplies on credit.
3. Purchased equipment for $25,000, paying $3,500 in cash and signed a 30-day, $21,500, note payable.
4. Real estate commissions billed to clients amount to $4,000.
5. Paid $700 in cash for the current month's rent.
6. Paid $250 cash on account for office supplies purchased in transaction 2.
7. Received a bill for $800 for advertising for the current month.
8. Paid $2,500 cash for office salaries.
9. Paid $1,200 cash dividends to stockholders.
10.Received a check for $2,000 from a client in payment on account for commissions billed in transaction 4.

Answers

Answer: Please find answers in the explanation column

Explanation:

Account titles                               Debit                  Credit

To Record Investment by stockholders

1 Cash                              $40,000

Common Stock                                            $40,000

To record purchase of supplies on credit

2 Supplies                                   $500

Accounts Payable                                                    $500

To record payment in part for cash and signing a note

3 Equipment                            $25,000  

Cash                                                                $ 3,500

Note Payable                                                        $21,500

To record commission billed to clients

4 Accounts Receivable                   $4,000  

Service Revenue                                                        $4,000

To record rent paid for the month

5 Rent Expense                                   $700  

Cash                                                                            $700

To record cash paid to supplies purchased on account

6 Accounts Payable                        $250

               Cash                                                                        $250

To record receipt on advertising

7 Advertising Expense                 $800  

Accounts Payable                                                          $800

To record cash for salaries

8 Salaries Expense                    $2,500  

Cash                                                                        $2,500

To record cash paid as dividends

9 Dividends                            $1,200  

Cash                                                                       $1,200

To record receipts of cash from accounts receivable

10 Cash                                  $2,000  

Accounts Receivable                                                 $2,000

Racket Corporation and Laocoon Corporation create Raccoon Corporation. Racket transfers $600,000 in assets for all of Raccoon's common stock. Racket distributes its remaining assets ($300,000) and the Raccoon common stock to its shareholder, Mia, for all her stock in Racket (basis $950,000) and then liquidates. Laocoon receives all the Raccoon preferred stock for its $400,000 of assets. Laocoon distributes its remaining assets ($300,000) and the Raccoon preferred stock to its shareholder, Carlos, for all his stock in Laocoon (basis $200,000) and then liquidates. What type of acquisition (if any) is this an example of?

Answers

Answer:

Type A reorganization

Explanation:

Type A reorganizations are known as statutory mergers or consolidations. This transaction involves 2 corporations, but one of them (Racket) will absorb the other one (Laocoon).

In this case, Mia doesn't have to recognize any loss or gain resulting from this merger, but Carlos has to recognize a gain equal to the remaining assets that were distributed ($300,000).

The cost of equipment purchased by Bonita, Inc., on June 1, 2020, is $119,700. It is estimated that the machine will have a $10,500 salvage value at the end of its service life. Its service life is estimated at 7 years, its total working hours are estimated at 54,600, and its total production is estimated at 728,000 units. During 2020, the machine was operated 6,600 hours and produced 60,500 units. During 2021, the machine was operated 6,050 hours and produced 52,800 units. Compute depreciation expense on the machine for the year ending December 31, 2020, and the year ending December 31, 2021, using the following methods. (Round depreciation per unit to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 45,892.) 2020 2021 (a) Straight-line $ $ (b) Units-of-output $ $ (c) Working hours $ $ (d) Sum-of-the-years'-digits $ $ (e) Double-declining-balance (twice the straight-line rate)

Answers

Answer:

(a) Straight-line $ $

straight line depreciation expense = $109,200 / 7 = $15,600

depreciation expense 2020 = $15,600 x 7/12 = $9,100

depreciation expense 2020 = $15,600

(b) Units-of-output $ $

depreciation expense per unit of output = $109,200 / 728,000 = $0.15 per unit

depreciation expense 2020 = $0.15 x 60,500 = $9,075

depreciation expense 2020 = $0.15 x 52,800 = $7,920

(c) Working hours $ $

depreciation expense per working hour = $109,200 / 54,600 = $2 per working hour

depreciation expense 2020 = $2 x 6,600 = $13,200

depreciation expense 2020 = $2 x 6,050 = $12,100

(d) Sum-of-the-years'-digits

total years = 7 + 6 + 5 + 4 + 3 + 2 + 1 = 28

depreciation expense 2020 = $109,200 x 7/28 x 7/12 = $15,925

depreciation expense 2021 = ($27,300 - $15,925) + (109,200 x 6/28 x 7/12) = $25,025

(e) Double-declining-balance (twice the straight-line rate)

depreciation expense 2020 = $119,700 x 2/7 x 7/12 = $19,950

depreciation expense 2021 = ($34,200 - $19,950) + ($85,500 x 2/7 x 7/12) = $28,500

Explanation:

depreciable value = $119,700 - $10,500 = $109,200

useful life = 7 years

working hours = 54,600

production = 728,000 units

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