Budgeting helps management plan and coordinate business activities by providing a structured approach to goal setting, resource allocation, coordination, and performance evaluation.
Budgeting plays a crucial role in helping management plan and coordinate business activities. It involves the process of setting financial goals, creating a detailed plan of action, and monitoring actual performance against the established targets.
Goal Setting and Planning: Budgeting provides a structured framework for setting financial goals and objectives. It helps management determine what they want to achieve within a specific period, such as increasing sales, reducing costs, or improving profitability.
Resource Allocation: Budgeting assists in allocating resources effectively and efficiently. It helps management identify the financial resources required for various activities and allocate them accordingly.
Coordination and Communication: Budgeting facilitates coordination and communication among different departments and individuals within an organization.
Performance Evaluation: Budgeting allows for regular monitoring and evaluation of actual performance against budgeted targets. By comparing actual results to the budget, management can identify variations and take corrective actions if necessary
Rigidity and Inflexibility: Budgeting can sometimes lead to rigidity and inflexibility in decision-making. Once a budget is set, it may be challenging to make changes or adapt to unexpected circumstances.
Gaming and Ethical Concerns: In some cases, budgeting can create a culture that incentivizes individuals or departments to manipulate figures to meet targets or budgets.
Time and Resource Intensive: The process of budgeting can be time-consuming and resource-intensive, especially for complex organizations.
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Fes Company is making adjusting journal entries for the year ended December 31, 2021. In developing information for the adjusting journal entries, you learned the following:
A.) A two-year insurance premium of $7,900 was paid on January 1, 2021, for coverage beginning on that date. As of December 31, 2021, the unadjusted balances were $7,900 for Prepaid Insurance and $0 for Insurance Expense.
B.) At December 31, 2021, you obtained the following data relating to supplies.
Unadjusted balance in Supplies on December 31: $18,500
Unadjusted balance in Supplies Expense on December 31: 79,000
Supplies on hand counted on December 31: 12,800
Required: Prepare adjusting journal entries at December 31, 2021, for (a) insurance and (b) supplies. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Adjusting journal entry for insurance:
Insurance premiums that have been paid in advance but have not yet expired or been used up are referred to as prepaid insurance. To represent the portion of prepaid insurance that has been used up or earned over the course of a given accounting period, adjusting entries are necessary.
Date: December 31, 2021
Debit: Insurance Expense $3,950 (($7,900 / 2 years) × 1 year))
Credit: Prepaid Insurance $3,950 (($7,900 / 2 years) × 1 year))
The $7,900 insurance premium was paid for a two-year period. The premium has been utilized for one year as of December 31, 2021. Therefore, $3,950 ($7,900 / 2 years) × 1 year)) is the amount of the premium that has expired during the year and needs to be adjusted against prepaid insurance.
Adjusting journal entry for supplies:
Adjusting entries for the unadjusted balance in supplies involve updating the accounting records to reflect the actual amount of supplies on hand at the end of an accounting period.
Date: December 31, 2021
Debit: Supplies Expense $66,700 ($79,000 - $12,800)
Credit: Supplies $66,700 ($79,000 - $12,800)
The total amount of supplies utilized for the year is shown by the unadjusted balance in Supplies Expense, which is $79,000. However, as of December 31, 2021, there was an unadjusted amount of $18,500 in the Supplies account, which represents the supplies that had not yet been spent. We can calculate the amount of supplies used during the year, which is $66,700 ($79,000 - $12,800), by adding up the materials on hand as of December 31. This totals $12,800. This amount is recognized as a supply expense in the adjusting entry, which also reduces the supply account.
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To record the COGM in the accounts of a manufacturer on completion, which is the correct journal entry? Select one: O a. CR Finished Goods DR Work in Progress O b. DR Finished Goods CR Work in Progress OC. DR WIP CR Raw Materials O d. DR COGS CR Finished Goods Fin
The correct journal entry to record the COGM in the accounts of a manufacturer on completion is B) DR Finished Goods CR Work in Progress.
The Cost of Goods Manufactured (COGM) can be defined as the total cost of completed units transferred to Finished Goods Inventory during the accounting period. A journal entry is required to record COGM and transfer the cost of the completed units to Finished Goods Inventory.
A manufacturer's journal entry to record the Cost of Goods Manufactured (COGM) in the accounts on completion is DR Finished Goods CR Work in Progress. The completed products' cost is transferred from Work in Progress (WIP) to Finished Goods Inventory when units are completed. That is why Work in Progress is debited, and Finished Goods Inventory is credited.
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How do you define success?
Answer:
if ur happy then ig I could say ur successful
if made it to the top I could say ur successful
if u reached the destination if ur dream I would say ur successful
An investment has an initial capital outlay of $100 million and expects $175 million in 7 years. Which of the following is correct? The investment is not acceptable. Its internal rate of return is 8.32%. The investment is acceptable. Its internal rate of return is 10.53%.
The investment is acceptable. Its internal rate of return is 10.53%. The internal rate of return (IRR) is the discount rate that makes the NPV of an investment equal to zero. It is an estimate of the project's profitability.
An investment is deemed viable if its internal rate of return (IRR) is greater than the cost of capital used to finance it. Internal rate of return is calculated using the following formula:
NPV = -C0 + C1 / (1+r)1 + C2 / (1+r)2 + Cn / (1+r)n Where:
NPV = Net Present Value
C0 = Initial Cash Outflow C1 to
Cn = Cash inflows in periods 1 to
nR = Internal Rate of Return The calculation shows that the investment has a positive net present value at a rate of return of 10.53%. Hence, the investment is acceptable because its internal rate of return is greater than the cost of capital used to finance it, which makes it more profitable to invest in it. Therefore, the answer is option C: The investment is acceptable. Its internal rate of return is 10.53%.
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Save-Always Stores started a customer loyalty program at the beginning of 2020 in which customers making cash purchases of gasoline at Save-Always Gas Bars are issued rewards in the form of grocery coupons. For each litre of gasoline purchased, the customer gets a grocery coupon
for 3.8 cents that can be redeemed in Save Always Food Stores. The coupons have no expiry date. Save-Always Stores began selling gift cards in 2021 that do not have expiry dates.
The following are selected transactions in 2020 and 2021:
1. In 2020, the Gas Bars sold 3.8 million litres of gasoline resulting in gas sales of $4,560,000. Grocery coupons were issued with these sales. The expected redemption rate for the grocery coupons is 80%.
2. In 2020, customers redeemed $46,000 of the grocery coupons in the Food Stores.
3. In 2021, the Gas Bars sold 4.65 million litres of gasoline resulting in gas sales of $6,045,000. Grocery coupons were issued with these sales. The expected redemption rate for the grocery coupons is 80%.
4. In 2021, customers redeemed $53,500 of the grocery coupons in the Food Stores.
5. In 2021, customers purchased $82,000 of gift cards, and $45,000 of the revenue from gift card sales was to be recorded by the end of the year.
Instructions
a. Indicate if the following activities will increase, decrease, or have no effect on each of revenues, expenses, and profit:
1. Issuing grocery coupons when sales are made
2. Redeeming grocery coupons
3. Issuing gift cards
4. Redeeming gift cards
b. Record the above transactions.
c. What balances will be included in current liabilities at December 31, 2020 and 2021, regarding the customer loyalty program and gift cards?
What factors should management consider in determining if current liabilities are correctly valued at December 31, 2021?
Management should consider factors such as redemption rate, changes in customer behavior, economic conditions, gift card redemption patterns, and changes in regulations to determine if current liabilities are correctly valued on December 31, 2021.
A - 1. Issuing grocery coupons when sales are made: This activity will have no effect on revenues, expenses, or profit. It is a non-cash transaction that involves the issuance of grocery coupons, which represent a liability to be redeemed in the future. It does not impact immediate revenues, expenses, or profit.
2. Redeeming grocery coupons: This activity will decrease revenues and profit. When customers redeem grocery coupons, they are entitled to discounts on their purchases, reducing the total amount of revenue generated from those transactions. The expense associated with the discount is recorded, which ultimately decreases the profit.
3. Issuing gift cards: This activity will increase revenues and profit. When customers purchase gift cards, the revenue from the sale is recorded immediately. The liability associated with the gift card is created, but it does not impact expenses. Therefore, it increases both revenues and profit.
4. Redeeming gift cards: This activity will decrease revenues and profit. When customers redeem gift cards, the revenue generated from the sale of the gift cards remains the same, but the value of the gift card is used to purchase goods or services, reducing the total amount of revenue generated from the transaction. This decrease in revenue affects the profit as well.
b. Recording the transactions:
1. In 2020:
Gas Sales: $4,560,000
Grocery coupons issued: 3.8 million liters * $0.038/liter = $144,400 (liability)
Expected redemption of grocery coupons: 80% * $144,400 = $115,520
2. In 2020:
Grocery coupon redemption: $46,000 (expense)
3. In 2021:
Gas Sales: $6,045,000
Grocery coupons issued: 4.65 million liters * $0.038/liter = $176,700 (liability)
Expected redemption of grocery coupons: 80% * $176,700 = $141,360
4. In 2021:
Grocery coupon redemption: $53,500 (expense)
5. In 2021:
Gift card sales: $82,000 (revenue)
Unearned revenue (liability): $45,000
c. Balances in current liabilities on December 31, 2020, and 2021:
December 31, 2020:
Grocery coupon liability: $144,400
Unearned revenue from gift card sales: $0
December 31, 2021:
Grocery coupon liability: $176,700
Unearned revenue from gift card sales: $45,000
Management should consider several factors in determining if current liabilities are correctly valued on December 31, 2021:
Redemption rate: If the actual redemption rate deviates significantly from the expected redemption rate of 80%, it can impact the valuation of the grocery coupon liability.
Changes in customer behavior: Any changes in customer preferences, such as a decrease in gasoline purchases or changes in spending patterns, can affect the redemption rate and the liability associated with grocery coupons.
Economic conditions: Economic factors, such as inflation or changes in the cost of goods, can impact the value of the grocery coupon liability and the ability of customers to redeem coupons.
Gift card redemption patterns: Monitoring the rate at which gift cards are being redeemed can help ensure that the liability for unearned revenue is appropriately recorded and adjusted if necessary.
Changes in regulations: Any changes in accounting or legal regulations regarding the treatment of customer loyalty programs or gift cards need to be considered to ensure compliance and accurate valuation of liabilities.
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international relations
What drove the need for the 1951 convention and the 67
Protocol and what have been it's successes failures since?
The 1951 Refugee Convention and the 1967 Protocol were established to protect the rights of refugees. This was brought about by the increase of refugees in Europe due to the Second World War and the rise of dictatorships.
It provides refugees with legal protections and assistance that they may need to rebuild their lives. Since their establishment, there have been both successes and failures.
The following are some of their successes:
Successes:
1. Increase in the number of countries adopting the convention and protocol.
2. A rise in the number of refugees who have received protection under the convention.
3. Protection of refugees from deportation or refoulement.
4. Provision of asylum seekers with the right to have their cases heard by a fair and competent tribunal.
5. Recognition of the rights of refugees to work, receive education, and live in dignity.
The following are some of the failures:
Failures:
1. Limited funding for refugee assistance programs.
2. Poor living conditions for refugees in refugee camps.
3. The inability of countries to take in more refugees.
4. The tendency of countries to detain and deport refugees. 5. Inadequate policies to address the root causes of the refugee crisis.
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The stock of Big Joe's has a beta of 1.28 and an expected return of 11.50 percent The risk-free rate of return is 4 percent What is the expected return on the market? a. 9. 86 percent b. 6.38 percent c. 7.50 percent d. 8.58 percent e. 12.62 percent
The risk-free rate of return is 4 percent. The expected return on the market is 9.86 percent.
The expected return on the market can be determined using the capital asset pricing model (CAPM), which calculates the expected return based on the risk-free rate of return, the beta of the stock, and the market risk premium.
The risk-free rate of return is given as 4 percent. The beta of the stock is given as 1.28, which represents the stock's sensitivity to market movements. The expected return of the stock is given as 11.50 percent.
The market risk premium is the difference between the expected return on the market and the risk-free rate of return. Using the CAPM formula, we can calculate the market risk premium by multiplying the beta by the market risk premium:
Market Risk Premium = Beta * (Expected Return on the Market - Risk-Free Rate of Return)
Substituting the given values, we have:
1.28 * (Expected Return on the Market - 4%) = 11.50% - 4%
Solving for the expected return on the market, we find:
Expected Return on the Market = (11.50% - 4%) / 1.28 + 4% = 9.86%
Therefore, the expected return on the market is 9.86 percent (option a).
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How do events provide an opportunity for community cohesion and
improvement? (150-200 words)
Community events are social opportunities that provide communities with a way to come together. They can also provide a platform for community improvement by raising funds, building relationships, and improving the community's overall spirit.
They also create a sense of unity among the members of the community.
. 1. Foster Social Connections and Community Building: Events provide an opportunity for people to gather and interact. People from diverse backgrounds come together, which fosters social connections. Events provide a space for residents to interact with one another, break down social barriers, and establish new relationships.
2. Strengthen Community Bonds: Community events provide opportunities for people to connect and bond, which can improve community cohesion. Events allow people to express their sense of community and pride in a public forum, creating a shared sense of identity and purpose.
3. Improve Community Spirit and Morale: Community events provide an opportunity to celebrate local culture and customs. The events can give people a sense of pride and purpose that can translate into greater involvement in their community. Such events increase local spirit and morale.
4. Raise Awareness and Funds for Local Causes: Community events can be used to raise awareness and funds for local causes and projects. The events can help in raising funds for the community development project, and the awareness created around the event can generate further support.
5. Provide Opportunities for Community Engagement: Community events provide a platform for people to engage with local government officials, community leaders, and organizations.
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11. Question # 3 (15 points) Three independent projects are to be evaluated at a MARR of 10% per year. No more than $3.0 million can be invested Life, years Estimated NCE po Year 1 6 10 Gradient after
The Net Present Value is a method for determining if a project's current value is greater than or less than its future worth. This technique assists in identifying the value of cash flows expected over time at a specified discount rate. Three independent ventures are assessed at a MARR of 10% per year in this situation.
No more than $3.0 million should be invested.The calculation of the net cash inflow (NCI) is required before calculating the net present value (NPV). The net cash inflow formula can be found in the following equation:NCI = gradient × (1 − 1/(1 + MARR)n) / MARRHere, the gradient is the difference between the cash inflows and the cash outflows in a given year. 'n' is the number of years of project life. The MARR for this situation is 10%, and no more than $3 million can be invested, as noted above.Let's take each project into consideration.
Project 1 has a life of 6 years, and the estimated NCE po Year 1 is $900,000. So, using the above formula, we can calculate the Net Cash Inflow as follows:NCI Project 1 = 900,000 x (1 − 1/(1 + 0.1)6) / 0.1NCI Project 1 = $3,327,928.63Project 2 has a life of 10 years, and the estimated NCE po Year 1 is $600,000. So, using the above formula, we can calculate the Net Cash Inflow as follows:NCI Project 2 = 600,000 x (1 − 1/(1 + 0.1)10) / 0.1NCI Project 2 = $3,257,338.82Project 3 has a life of years and the estimated NCE po Year 1 is $1,000,000. So, using the above formula,
we can calculate the Net Cash Inflow as follows:when the initial investment is $2,000,000).Project 2 has a net present value of $1,257,338.82 (when the initial investment is $1,000,000).Project 3 has a net present value of $486,784.80 (when the initial investment is $1,500,000).If a project's net present value is zero, it is said to be marginal. This suggests that the venture is worthwhile, but there is no economic gain or loss involved. Any project with a net present value of greater than zero is deemed worthwhile because the project's cash inflows are higher than its outflows. Any project with a net present value of less than zero is regarded as unprofitable.
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This is a term project, TOPIC :Growth Dynamics. kindly type the answer and only any if you know the topic. thumbs up be given, Note less than 1500 words ,INCLUDE background ,importance, Literature of review(books, research article), Objectives, Research question, data source and methodology(highlight data used (primary/secondary), Techniques for analyzing e.g correlation/regression, indicate the variables used, technique used in collection of the data, analysis and finding ,conclusion and Discussion , reference and Abstract.
Writing a comprehensive term project requires extensive research, analysis, and proper citation of sources, which is beyond the scope of a simple text-based conversation. I recommend conducting independent research and consulting relevant academic resources to gather the necessary information and structure your term project effectively.
If you have any specific questions or need assistance with a particular aspect of your term project, feel free to ask, and I'll be happy to help.
About ComprehensiveComprehensive, guarantees the overall risk of loss, both small and large losses, including losses. 2. Meanwhile, TLO only provides a replacement guarantee if your vehicle is damaged with a value of ≥ 75% of the value of the vehicle and losses due to loss of the vehicle.
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On the income statement, income from discontinued operations is shown: Multiple Choice A. without any income tax effect. B. as an accounting principle change. C. as a separate section of income from continuing operations. D. net of taxes after income from continuing operations.
On the income statement, income from discontinued operations is shown as: D. net of taxes after income from continuing operations.
Income from discontinued operations represents the financial results of a component or segment of a company that has been or will be disposed of. It is reported separately on the income statement to provide users with information about the financial performance of the discontinued operations. The income from discontinued operations is typically shown net of taxes, meaning that the tax effect is taken into account and the reported amount reflects the after-tax income. This presentation allows for a clearer understanding of the financial impact of the discontinued operations on the company's overall profitability.
Therefore, option D is the correct choice as it accurately describes how income from discontinued operations is shown on the income statement.
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Which one of the following adjustments decreases net income for the period?
Recognition of rent as earned that had been received in advance from customers
Recognition of depreciation on plant assets
Recognition of interest on a note receivable
Recognition of services that had been provided to customers but the cash has not yet been received
The answer to this question is: Recognition of services that had been provided to customers but the cash has not yet been received.
Recognition of services that had been provided to customers but the cash has not yet been received is the one of the following adjustments that decreases net income for the period. Revenue and expenses are tracked and recorded in an income statement for a business. A business's net income or loss is calculated by subtracting expenses from revenue. Here are four of the adjustments from the four options given: Recognition of rent as earned that had been received in advance from customers does not reduce net income for the period. Recognition of depreciation on plant assets does not decrease net income for the period. Recognition of interest on a note receivable will increase the net income for the period. Recognition of services that had been provided to customers but the cash has not yet been received will decrease net income for the period. This is because revenue is only recorded when the service is rendered, not when cash is received. Even though the business has provided the service, it has not yet been paid for it. As a result, the recognition of services that had been provided to customers but the cash has not yet been received reduces net income for the period. Therefore, the answer to this question is: Recognition of services that had been provided to customers but the cash has not yet been received.
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Following is a list of account balances of Wilson Mowing Services of December 31 of the first year of operation.
Accounts receivable $5,000
Accounts payable 4,000
Salary expense 5,000
Repairs expense 1,000
Truck 10,000
Equipment 8,000
Notes payable 8,200
Cash 7,500
Supplies expense 1,600
Service revenue 32,000
Gasoline expense 3,800
Salary payable 200
At the end of the year, what is the amount of total liabilities?
a. $21,200
b. $12,200
c. $12,400
d. $24,100
The correct option is c. $12,400.To determine the amount of total liabilities at the end of the year, we need to add up the balances of accounts that represent liabilities. Based on the provided list of account balances, the relevant liability accounts are:
Accounts Payable: $4,000,Notes Payable: $8,200,Salary Payable: $200.
To calculate the total liabilities, we add these amounts: $4,000 (Accounts Payable) + $8,200 (Notes Payable) + $200 (Salary Payable) = $12,400. Therefore, the correct option is c. $12,400.
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Had you been public directions director for NBC, what would you have advised relative to airing Ronan Farrow's story on Weinstein?
If I had been the public directions director for NBC, I would have advised airing Ronan Farrow's story on Weinstein.
Ronan Farrow, a journalist, worked for NBC News and had a story about Harvey Weinstein's alleged sexual harassment. However, NBC News didn't broadcast the story. Farrow was able to release the tale on The New Yorker, for which he won the Pulitzer Prize.
However, Farrow was allowed to publish the tale in The New Yorker. NBC did not allow it to be broadcasted on their station. I would have advised NBC to air Ronan Farrow's story on Weinstein because it is a matter of public interest and a crucial story that must be shared with the public.
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A company is planning to produce some goods. In order to start they need $25million 4 years from now.
How much money to be saved every month to have 25 million in 4 years from now. Interest is 10% per year. (use compound interest tables).
The amount required to start production is $25 million in 4 years from now. The interest rate is 10% per year. We need to find the amount of money that needs to be saved every month.
Therefore, the calculation of the amount of money that needs to be saved every month is as follows: Present value = Future value ÷ (1 + i) there, the Future value (FV) is $25 million, i is 10% and the n is 4 years. So, Present value (PV) = $25 million ÷ (1 + 0.10)4PV = $18,143,580.61. This present value should be saved today to achieve the target of $25 million in 4 years.
Thus, if the saving period is 4 years, and the interest rate is 10%, then the monthly payment should be [tex]$373,719.60[/tex]. (Use the following formula for monthly payments:PMT = (PV × i) ÷ 12)PMT = ($[tex]18,143,580.61 * 0.10[/tex]) ÷ 12PMT = $151,196.50. So, $[tex]151,196.50[/tex] is to be saved each month for the next 4 years to have $25 million in 4 years from now.
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Evaluate the following projects using the payback method assuming a rule of 3 years for payback. Year Project A Project B
0 -10,000 -10,000
1 4,000 4,000 2 4,000 3,000 3 4,000 2,000
4 0 1,000,000
A) Project A can be accepted because the payback period is 2.5 years but Project B cannot be accepted because its payback period is longer than 3 years. B) Project B should be accepted because even though the payback period is 2.5 years for Project A and 3.001 for project B, there is a $1,000,000 payoff in the 4th year in Project B. C) Project B should be accepted because you get more money paid back in the long run. D) Both projects can be accepted because the payback is less than 3 years.
The correct option is A) Project A can be accepted because the payback period is 2.5 years but Project B cannot be accepted because its payback period is longer than 3 years.
The payback method assumes that a project should be accepted if it pays back the initial investment within a certain period of time.
In this case, the rule is a payback period of 3 years.
Therefore, let's calculate the payback period for each project:Year Project A Project B
0-10,000-10,000
14,0004,000
24,0003,000
34,0002,000
4---1,000,000
To calculate the payback period, we need to determine the point at which the cumulative cash flow becomes positive. For Project A, this occurs in year 2, so the payback period is 2 years.
For Project B, this occurs in year 3, so the payback period is 3 years.
Since the payback period for Project B is longer than the rule of 3 years, it cannot be accepted.
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QUESTION 6 1 POINT The Federal Reserve System is responsible for tracking the amounts of M1 and M2 and prepares a weekly release of information about the money supply. The table below shows the U.S. m
The overall M1 is about $5.757 trillion.
To calculate the total M1, we want to recall the components of M1 indexed within the table.
M1 represents the narrowest definition of cash supply, which incorporates the maximum liquid forms of cash. The additives of M1 encompass forex (bodily coins), demand deposits and other checking bills, and traveler's assessments.
From the table, we have the following values for the M1 components:
Currency: $5.000 trillion
Demand deposits and other checking debts: $0.754 trillion
Traveler's exams: $0.003 trillion
To calculate the whole M1, we sum up those additives:
Total M1 = Currency + Demand deposits and other checking money owed + Traveler's assessments
Total M1 = $5.000 trillion + $0.754 trillion + $0.003 trillion
Total M1 = $5.757 trillion
Therefore, the overall M1 is about $5.757 trillion. This represents the mixed cost of foreign money in move, demand deposits, and tourist tests, which are all taken into consideration as part of the M1 cash delivery.
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The correct question is:
Required Information
Problem 10-6A Record equity transactions and prepare the stockholders' equity section (LO10-2, 10-3, 10- 4, 10-5, 10-7)
[The following information applies to the questions displayed below]
Major League Apparel has two classes of stock authorized: 5%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2021, its first year of operations:
January 2 Issue 100,000 shares of common stock for $63 per share.
February 14 Issue 53,000 shares of preferred stock for $11 per share.
May 8 Purchase 10, eee shares of its own common stock for $53 per share.
May 31 Resell 5,000 shares of treasury stock for $58 per share.
December 1 Declare a cash dividend on its common stock of $0.65 per share and a $26, see (5% of par value) cash dividend on its preferred stock payable to all stockholders of record on December 15. The dividend is payable on December 30. (Hint: Dividends are not paid on treasury stock.)
December 30 Pay the cash dividends declared on December 1.
Problem 10-6A Part 2
2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021. Net Income for the year was $483,000. (Amounts to be deducted should be Indicated by a minus sign.)..
Answer is complete but not entirely correct. M
AJOR LEAGUE APPAREL
Balance Sheet
(Stockholders' Equity Section)
December 31, 2021
Stockholders' Equity:
Preferred Stock $ 530,000
Common Stock 100,000
Additional Paid-in Capital 6.278,000
Total Paid-in Capital 6.908,000
Retained Earnings 1
Treasury Stock (265,000)
Total Stockholders' Equity $ 6,643,001
Corrections justification: Preferred Stock: By dividing the number of preferred shares issued (53,000) by the issuance price per share ($11), the right value is $583,000. Total Paid-in Capital: The actual total is $6,961,000, which is obtained by combining the Preferred Stock and Common Stock quantities. Retained Earnings: The net income for the year, which is stated as $483,000, should be added to retained earnings. Equity owned by all stockholders: By combining the figures for Total Paid-in Capital, Retained Earnings, and Treasury Stock, the actual number comes out to $7,179,000.
The ownership certificates of any corporation are referred to as "stocks" in general. On the other hand, a share alludes to the stock certificate of a certain business. A shareholder is someone who owns stock in a certain corporation.
Stocks come in two varieties: common and favored. Stocks signify ownership in a publicly traded business. You acquire ownership of a corporation when Preferred you purchase its shares. You own 1% of a corporation, for instance, if you purchase 1,000 of its 100,000 shares.
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Volkan Company has cash of $10,000, Accounts payable of $24,000, inventory of $16,000, and, equipment of $40,000. The company has short-term loan of $10,000, Accounts receivable of $14,000, Salary payable of $6,000 and Long-term loan of $10,000.
The current ratio for Volkan Company is _____.
Do not copy from Chegg and give complete answer with explanation
The current ratio of Volkan Company is 1.30. The current ratio measures the liquidity of the company by comparing its current assets to its current liabilities. It shows the ability of the company to pay off its current obligations using its current assets.
The current ratio of Volkan Company is 1.30. The current ratio is a financial metric used to measure the ability of a company to meet its short-term debt obligations. It is calculated by dividing current assets by current liabilities. A ratio of 1 or higher indicates that the company is able to pay off its current obligations using its current assets. The higher the ratio, the more liquid the company is considered to be, and the better its ability to meet its short-term obligations.
The relationship between a company's assets and liabilities is described by the current ratio. As a result, a company with a higher ratio has more assets than liabilities. For instance, a company with a current ratio of 4 could theoretically pay off its current liabilities four times.
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Mason just won the Utah lottery. He has the choice of $58,500,000 today or a 30- year annuity of $6,710,000, with the first payment coming one year from today. What rate of return is built into the annuity?
a. 10.96%
b. 11.14%
c. 29.06%
d. 12.41%
Let us suppose that the interest rate for the annuity is i. Mason has won $58,500,000 and is given a choice to either get that today or a 30-year annuity of $6,710,000 with the first payment coming after one year from today.
To find out what rate of return is built into the annuity, we can equate the present value of the 30-year annuity to the $58,500,000. Let's use the formula of the Present Value of an Annuity to do so:Present value of an annuity = Payment amount * [1 - (1 + i)⁻ⁿ] / i, where n is the total number of payments.We are given that the payment amount is $6,710,000 and the total number of payments, n = 30. The first payment is after one year from today, so we have to discount all payments by one year (i.e. use 29 in place of n).Now, we need to equate this with the $58,500,000. So, we get:58,500,000 = 6,710,000 * [1 - (1 + i)⁻²⁹] / iNow, we need to solve this equation for i using a financial calculator. We get i ≈ 0.1114, which is approximately 11.14%. Therefore, the answer is (b) 11.14%.
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Evans Technology has the following capital structure.
Debt 40 %
Common equity 60
The aftertax cost of debt is 9.00 percent, and the cost of common equity (in the form of retained earnings) is 16.00 percent.
a. What is the firm’s weighted average cost of capital? (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)
The firm's weighted average cost of capital (WACC) is 11.94%.
To calculate the WACC, we need to take the weighted average of the after-tax cost of debt and the cost of common equity.
1. Calculate the weight of debt and equity:
Debt weight = Debt / (Debt + Equity) = 40% / (40% + 60%) = 0.4
Equity weight = Equity / (Debt + Equity) = 60% / (40% + 60%) = 0.6
2. Calculate the after-tax cost of debt:
After-tax cost of debt = Cost of debt * (1 - Tax rate)
Since the question doesn't provide a tax rate, we'll assume a standard rate of 35%:
After-tax cost of debt = 9.00% * (1 - 0.35) = 9.00% * 0.65 = 5.85%
3. Calculate the weighted average cost of capital:
WACC = (Debt weight * After-tax cost of debt) + (Equity weight * Cost of equity)
Cost of equity is given as 16.00%.
WACC = (0.4 * 5.85%) + (0.6 * 16.00%)
WACC = 2.34% + 9.60%
WACC = 11.94%
Rounding the final answer to 2 decimal places, the firm's weighted average cost of capital (WACC) is 11.94%.
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When a single goods and services tax (GST) or Harmonized Sales Tax (HST) account is used, a debit balance in the account means the government owes money to the business.
True
False
When a single goods and services tax (GST) or Harmonized Sales Tax (HST) account is used, a debit balance in the account means that the business owes money to the government. Therefore, the given statement is False.
When a single goods and services tax (GST) or Harmonized Sales Tax (HST) account is used, a debit balance in the account means that the business owes money to the government. Therefore, the given statement is False. Let's learn more about GST and HST accounts: GST or HST account is a specific account that records all the financial transactions of the GST/HST charged and collected by the businesses. A business needs to register for a GST/HST account if its annual revenue exceeds a certain limit. Businesses that have GST/HST accounts have to charge and collect GST/HST from their clients on taxable goods and services. The GST or HST account is maintained on an accrual basis, which means that it records all GST/HST collected and payable in the period in which the transactions occur. It allows businesses to claim input tax credits (ITCs) to reduce the amount of GST/HST they owe to the government.
The ITCs can be claimed on GST/HST paid or payable on the purchases made to operate the business. A GST/HST account can have either a credit balance or a debit balance, depending on the amount of GST/HST collected and paid. A credit balance occurs when the amount of GST/HST collected and not yet paid is more than the amount of GST/HST paid on business purchases. In contrast, a debit balance occurs when the amount of GST/HST collected and not yet paid is less than the amount of GST/HST paid on business purchases. Thus, the given statement is False because a debit balance in the GST/HST account means the business owes money to the government and not vice versa.
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How much should healthcare executives know about finance and accounting?
Understanding accounting principles, financial regulations, and the healthcare industry's financial landscape is critical to making sound financial decisions that benefit patients and the organization.
Healthcare executives, specifically those who manage finances, must have a comprehensive knowledge of finance and accounting principles. Healthcare executives must know how to manage money and ensure the company's financial stability. They need to have a working knowledge of accounting principles, the healthcare industry's regulatory landscape, and how to make sound financial decisions when running a healthcare facility.
The majority of healthcare executives should have a basic understanding of financial concepts and accounting principles. They must understand accounting concepts such as profit and loss statements, balance sheets, and cash flow statements. They must also have a solid understanding of the healthcare industry's financial landscape, including regulatory guidelines.
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in order to avoid discrimination in the workplace, what should employers do?responsesmake sure company buildings are accessible to employees with disabilitiesmake sure company buildings are accessible to employees with disabilitiesattempt to hire a diverse combination of races, genders, and agesattempt to hire a diverse combination of races, genders, and agesoffer promotions based on job performance, attitude, and other nondiscriminatory criteriaoffer promotions based on job performance, attitude, and other nondiscriminatory criteriaall of the aboveall of the above
The answer is "all of the above." In order to avoid discrimination in the workplace, employers should implement a combination of measures to create an inclusive and equitable environment.
guarantee that company facilities are accessible to staff with disabilities. This includes installing ramps, elevators, accessible restrooms, and other modifications to guarantee that staff with disabilities have equitable access to the facilities.
Hire people from a variety of ethnicities, genders, and ages: Employers should make an effort to build a diverse workforce that represents the larger population. This entails actively looking for applicants with diverse backgrounds in terms of gender, age, race, and ethnicity.
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In parts of Peru, it's still common to wash laundry in rivers and streams, both because of tradition and because millions of people don't have running water at home. Using laundry soap can pollute the same water that people also rely on for drinking, cooking, or bathing. But a new kind of probiotic soap was designed to help clean the water instead. A company spent two years developing a solution-a bar soap that contains microorganisms that can remove pollution. "This microorganism... feeds itself from the pollution of the river, reducing drastically the levels of nitrate and ammoniac, the type responsible for spreading bacteria that affect humans," the founder, Richard Chadwick says. "These microorganisms are freed when the bar of soap is used, and they get attached to the rocks and river weeds, staying there even after the washing ritual." The process can help clean both pollution from other laundry soap, and from sewage that also ends up in rivers. As thousands of people keep returning to a river or other water source to wash with the soap, the microorganisms will continue to feed on the pollution. "With the bar of soap, the Andean tradition becomes a constant cleaning system," he says. In before-and-after samples taken of river water, the soap helped remove pollutants like nitrates with 75-85% " "The potential of this project is huge. Companies like P&G or Unilever could make this a reality all over Latin America, Africa, and Asia-three continents where washing clothes at the riverbanks is still a tradition." Question: If a company like P&G or Unilever, the two biggest soap manufacturers were to sell this type of soap, it would be considered an adaptation strategy based on:
If a company like P&G or Unilever, the two biggest soap manufacturers were to sell this type of soap, it would be considered an adaptation strategy based on sustainable development.
Adaptation strategies refer to the measures individuals, societies, or institutions take to adapt to anticipated or fundamental changes in the natural or human-made environment. These adaptations can include behavioral changes, technological solutions, or modifications to infrastructure to reduce the risks posed by these changes.
The purpose of transformation is to reduce the negative impacts of change and to maximize the opportunities that these changes can provide. Sustainable development refers to meeting the needs of the present without compromising the ability of future generations to meet their own needs. Sustainable development is often approached through environmental, social, and economic perspectives, with the aim of balancing the interests of these different areas to ensure a stable and healthy future.
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At December 31, Hawke Company reports the following results for its calendar year. Problem 7-2A Estimating and reporting bad debts P2 P3 Cash sales. $1,905,000 Credit sales ....... .. .. **** $5,682,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable........... $1.270.100 debit Allowance for doubtful accounts ..... $16,580 debit Check Bad Debts Expense. (10) $85.230. (1c) $80,085 Required 1. Prepare the adjusting entry to record bad debts under each. sep assumption. a. Bad debts are estimated to be 1.5% of credit sales. b. Bad debts are estimated to be 1% of total sales. c. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. 2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet given the facts in part la. 3. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet given the facts in part lc.
The adjusting entries to record bad debts under each assumption are as follows:
a. Bad debts estimated at 1.5% of credit sales:
Bad Debts Expense .............................. $85,230
Allowance for Doubtful Accounts ............ $85,230
b. Bad debts estimated at 1% of total sales:
Bad Debts Expense .............................. $57,820
Allowance for Doubtful Accounts ............ $57,820
c. Aging analysis estimates 5% of year-end accounts receivable are uncollectible:
Bad Debts Expense .............................. $63,505
Allowance for Doubtful Accounts ............ $63,505
On its December 31 balance sheet, given the facts in part 1a:
Accounts Receivable ................... $1,270,100
Allowance for Doubtful Accounts .... $85,230 (contra-asset)
On its December 31 balance sheet, given the facts in part 1c:
Accounts Receivable ................... $1,270,100
Allowance for Doubtful Accounts .... $63,505 (contra-asset)
In both cases, the balance sheet reflects the net value of Accounts Receivable after considering the Allowance for Doubtful Accounts as a deduction to account for potential bad debts.
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The following Information is available on Bruder Inc.'s Product A: Number of units sold each year Selling price per unit Unit product cost Investment in Product A Required return on investment 23,000 $ 70 $ 40 $530,000 11% The company uses the absorption costing approach to cost-plus pricing described in the text. Based on these data, the total selling and administrative expenses each year are: (Round your intermediate calculations to 2 decimal places.) Multiple Choice O $690,000 $631,700 $283,000 $390,000
The company uses the absorption costing approach to cost-plus pricing described in the text. The answer is B.The given data is as follows:Number of units sold each year = 23,000 Selling price per unit = $70 Unit product cost = $40 Investment in Product A = $530,000 Required return on investment = 11%.
Based on these data, the total selling and administrative expenses each year are $631,700.The solution is as follows:We can use the following formula to calculate the total selling and administrative expenses each year:Total Selling and Administrative Expenses = (Selling Price per Unit - Unit Product Cost) x Number of Units Sold Each Year + Fixed Selling and Administrative Expenses.
Fixed Selling and Administrative Expenses = Investment in Product A x Required Return on Investment = $530,000 x 11% = $58,300.Substituting the given values into the above formula, we have:Total Selling and Administrative Expenses = ($70 - $40) x 23,000 + $58,300= $630,000 + $1,700= $631,700.
Therefore, the total selling and administrative expenses each year are $631,700.
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Growth in the retail market is centered firmly in the middle market, leaving luxury retailers and discounting specialists struggling.
a. true
b. false
False
The statement "Growth in the retail market is centered firmly in the middle market, leaving luxury retailers and discounting specialists struggling" is false. The retail market has been expanding, with growth being recorded in various sectors. Luxury retailers have also recorded growth in the market, mainly due to the increasing demand for luxury goods and services. Similarly, discounting specialists have also continued to record growth as they offer consumers lower-priced alternatives to premium goods and services. However, the growth in the middle market has been more pronounced, with more consumers seeking to purchase goods and services within this price range.
we mean the market that incorporates that multitude of exercises that include the offer of labor and products by an organization straightforwardly to the shopper that are generally bought for individual or family use. Retailers can be both retail and institutional.
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What is an amortization schedule used for?
A To show how much of a loan payment goes to the principal and how much goes to pay interest.
B To apply standard accounting rules specifying material vs. immaterial assets.
C To set rules for which asset purchases will be recorded as assets.
D To track the value of a fixed asset over time.
An amortization schedule is used for A, which shows how much of a loan payment goes to the principal and how much goes to pay interest.
What is an amortization schedule? An amortization schedule is a table or spreadsheet that shows every payment on an amortizing loan. It's a calculation that helps borrowers calculate the quantity of each payment, the quantity of interest paid per payment, and the balance remaining after each payment. This table breaks down the payments into principal and interest, showing how much of each payment goes to reduce the loan balance and how much goes to pay interest.
An amortizing loan is one that is paid off in a series of equal payments over a set period. When the borrower makes each payment, they're paying a part of the interest and a part of the principal. The principal component of each payment increases with time, while the interest component decreases with time.
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in this lab, you will use a web api to fetch and display quotes on a selected topic, as shown below.
In this lab, the goal is to utilize a web API to retrieve and showcase quotes related to a specific topic. The lab likely involves making HTTP requests to the API, parsing the response data, and displaying the quotes in a user-friendly format.
The lab will require understanding how to interact with web APIs and retrieve data using methods such as GET requests. The API used should provide access to a collection of quotes on various topics. By specifying the desired topic as a parameter in the API request, the lab participants can retrieve quotes specifically related to that topic. Once the response is received, the lab may involve extracting the relevant information, such as the quote text and author, and displaying it in an organized manner.
This lab is designed to provide hands-on experience with web APIs, data retrieval, and data display. It offers an opportunity to practice using HTTP requests, handling JSON or other data formats, and presenting information in a user-friendly way. By completing this lab, participants can enhance their understanding of web technologies and gain practical skills in working with APIs.
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