Assume that Cram Sales Company completed the following note payable transactions:_______.2016July 1 Purchased delivery truck costing $57,000 by issuing a one-year, 6% note payable. Dec 31 Accrued interest on the note payable. 2017 Jul 1 Paid the note payable at maturity. Read the requirements. Requirement 1. How much interest expense must be accrued at December 31, 2016? Round your answer to the nearest whole dollar. The interest expense accrued at December 31, 2016 is $ Requirement 2. Determine the amount of Cram Sales' final payment on October 1, 2017. The amount of Cram Sales final payment on October 1, 2017 is $ Requirement 3. How much interest expense will Cram Sales report for 2016 and for 2017? (Round your answers to the nearest whole dollar) The company will report interest expense of $ in 2016 and $ in 2017.
Answer:
1. How much interest expense must be accrued at December 31, 2016? $1,710
2. Determine the amount of Cram Sales' final payment on July 1, 2017.
$60,420
3. How much interest expense will Cram Sales report for 2016 and for 2017?
interest expense 2016 = $1,710
interest expense 2017 = $1,710
Explanation:
July 1 Purchased delivery truck costing $57,000 by issuing a one-year, 6% note payable.
Dr Vehicles 57,000
Cr Notes payable 57,000
Dec 31 Accrued interest on the note payable. 2017
Dr Interest expense 1,710
Cr Interest payable 1,710
Jul 1 Paid the note payable at maturity.
Dr Notes payable 57,000
Dr Interest payable 1,710
Dr Interest expense 1,710
Cr Cash 60,420
Employees view budgeting more positively when goals are established for them by senior management.
a. True
b. False
Answer:
true
Explanation:
i think true
Rebotar Inc, makes basketballs. Their fixed costs are $3450 Variable costs are $12 per basketball, If the basketball is priced at $25 and 300 basketballs are sold, did Rebotar break even? How do you know Show all work.
Answer:
Break-even points = 265.38
Explanation:
Given:
Fixed cost = $3,450
Variable costs = $12
Selling price = $25
Number of balls sold = 300
Find:
Break even costs
Computation:
Contribution per unit = Sales - Variable costs
Contribution per unit = $25- $12
Contribution per unit = $13
Break-even points = Fixed cost / Contribution per unit
Break-even points = $3,450 /$13
Break-even points = 265.38
An engineering graduate plans to buy a home. She has been advised that her monthly house and property tax payment should not exceed 35% of her disposable monthly income. After researching the market, she determines she can obtain a 30 year home loan for 6.95% annual interest per year, compounded monthly. Her monthly property tax payment will be approximately $150.What is the max amount she can par for a house if her disposable monthly income is $2000?
Answer:
$83,107.20
Explanation:
Amount available for monthly house payment = [$ 2000 * 35% ] - $ 150
= $700 - $150
= $550
Effective rate per month = 6.95% / 12 months = 0.00579 = 0.579%
No of periods = 30 years * 12 months = 360 months
Present Value = Amount available for monthly house payments * [P/A,0.579%,360]
[P/A,0.579%,360] =[(1 + i)^n - 1] / [( 1 + i)^n * I]= [(1 + 0.00579)^360 - 1] / [( 1 + 0.00579)^360 * 0.00579]
P/A,0.579%,360 = [7.99158 - 1] / [ 7.99158 * 0.00579]
P/A,0.579%,360 = 6.99158 / 0.04627
P/A,0.579%,360 = 151.104
Present Value = Amount available for monthly house payments * [P/A,0.579%,360]
Present Value = $550 * 151.104
Present Value = $83,107.20
Thus, the max amount she can par for the house is $83,107.20
Whatever, Inc., has a bond outstanding with a coupon rate of 5.87 percent and semiannual payments. The yield to maturity is 6.9 percent and the bond matures in 13 years. What is the market price if the bond has a par value of $1,000?
Answer:
Market price of the bond = $912.53
Explanation:
YTM = 6.90%
Coupon rate = 5.87%
Number of compounding per year = 2
YTM Per perid = 0.0345
Years = 13
Number of period = 26 (Nper)
Par value = 1,000
Semi annual coupon rate = 0.02935
The semi annual coupon payment = Par value * Semi annual coupon rate = 1,000 * 0.02935 = $29.35
Market price of the bond = PV(YTM, Nper, Semi annual coupon payment,Par value)
Market price of the bond = $912.53
Refer to JetBlue. JetBlue Airlines founder and CEO David Neeleman and its President Dave Barger speak with every new class of employees as they come through JetBlue’s structured orientation process. The orientation course is an example of ____ communication.
Answer:
Downward communication
Explanation:
In an organisation communication is key to making work process effective and meeting set goals and objectives.
Expectations need to be communicated to employees and management also need to get feedback from employees.
Communications can be from management to employees which is downward communication, between colleagues which is horizontal, and from employees to management which is upward.
In the given instance JetBlue Airlines founder and CEO David Neeleman and its President Dave Barger speak with every new class of employees as they come through JetBlue’s structured orientation process.
This is a form of downward communication where the the CEO and President speak to every new class of employees
You would like to start a cellular telephone equipment service business. you are considering organizing the business as a sole proprietorship. Identify the advantages and disadvantages of owning a sole proprietorship
Answer:
A business with two or more owners and not organized as a corporation.
Explanation:
Clementine and Leeexpect to deposit the following cash flows at the end of years 1 through 5, $1,000; $4,000; $9,000; $5,000; and $2,000 respectively. Alternatively, theycould deposit a single amount todayand have the same amount in your account at the endof year 5. How large does the single deposit need to be today if Clementine and Leecan earn 10% compounded annuallyon their account?
Answer:
The single deposit value will be "$15,633.62".
Explanation:
According to the question, the future values will be:
= [tex](1000\times ((1+10 \ percent)^4)+(4000\times ((1+10 \ percent)^3)+(9000\times ((1+10 \ percent)^2)+(5000\times ((1+10 \ percent))+2000[/tex]
= [tex]1464.1+5324+10890+5500+2000[/tex]
= [tex]25178.1[/tex]
By using the Present value formula, the single deposit will be:
⇒ [tex]Present \ value=\frac{Future \ value}{(1+Interest \ rate)^n}[/tex]
[tex]=\frac{25178.1}{(1+10 \ percent)^5}[/tex]
[tex]= \frac{25178.1}{1.61051}[/tex]
[tex]=15,633.62[/tex] ($)
Splish Brothers Inc. issues $257,000, 10-year, 8% bonds at 99. Prepare the journal entry to record the sale of these bonds on March 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer:
Dr Cash 254,430
Dr Discount on bonds payable 2,570
Cr Bonds payable 257,000
Explanation:
Preparation of the journal entry to record the sale of these bonds on March 1, 2022
Based on the information given we were told that Brothers Inc. issues the amount of $257,000 that includes 10-year and 8% bonds at 99 which means that the journal entry to record the sale of these bonds on March 1, 2022 will be :
March 1, 2022
Dr Cash 254,430
(257,000*99%)
Dr Discount on bonds payable 2,570
([$257,000*(100%-99%)]
Cr Bonds payable 257,000
(Being to record the sale of bonds)
A negative supply shock such as a natural disaster, which greatly decreases the economy's resources, will tend to
Explanation:
Question 36 1 A negative supply shock such as a natural disaster, which greatly decreases the economy's resources, will tend to reduce equilibrium GDP and the price level.
atmosphere in retailing refer to
Answer:
Simply put, store atmosphere includes the physical characteristics of a retail store used to create an image to attract customers. It's also known as atmospherics for short. It is a direct contributor to the customer experience and the public's opinion of your brand, which are important elements of retail today.
LCMS Industries has $70 million in debt outstanding. The firm will pay only interest on this debt (the debt is perpetual). LCMS' marginal tax rate is 35% and the firm pays a rate of 8% interest on its debt. The present value of LCMS' interest tax shield is closest to:_________
Answer:
$24.5 million
Explanation:
Calculation for The present value of LCMS' interest tax shield
Using this formula
Present Value of Tax shield = Debt outstanding× Marginal tax rate
Let plug in the formula
Present Value of Tax shield=$70 million× .35
Present Value of Tax shield=$24.5 million
Therefore The present value of LCMS' interest tax shield is closest to: $24.5 million
Consider a portfolio that offers an expected rate of return of 11% and a standard deviation of 21%. T-bills offer a risk-free 6% rate of return. What is the maximum level of risk aversion for which the risky portfolio is still preferred to T-bills?
Answer:
The level of risk aversion must be less than 2.27 for the risky portfolio to be preferred to bills.
Explanation:
Let U presents utility level. Therefore, we can specify U as follows:
U = E(r) - (0.5 * A * SD^2) ........................... (1)
Where, risky portfolio, we have:
E(r) = expected rate of return = 11%, or 0.11
SD = Standard deviation = 21%, or 0.21
A = Level of risk aversion = ?
Substituting the values into equation (1), we have:
U of risky portfolio = 0.11 - (0.5 * A * 0.21^2)
U of risky portfolio = 0.11 - (A * 0.02205)
Since the T-bills offer a risk-free 6% rate of return, it therefore implies that:
U of T-bill = 6%, 0.06
Therefore, the following must hold for the risky portfolio to be preferred to bills:
U of risky portfolio > U of T-bill ............................. (2)
Substituting the values for the expression above and solve for A, we have:
0.11 - (A * 0.02205) > 0.06
-(A * 0.02205) > 0.06 - 0.11
-(A * 0.02205) > - 0.05
Divide through by -1 and change the inequality sign, we have:
A * 0.02205 < 0.05
A < 0.05 / 0.02205
A < 2.27
Therefore, the level of risk aversion must be less than 2.27 for the risky portfolio to be preferred to bills.
A stock with a beta of 0.6 just paid a dividend of $5.60 and is priced at $324.00. If the risk-free rate is 2% and the market risk premium is 6%, what is the expected growth rate for the stock
Answer:Expected growth rate = 3.81%
Explanation:
Following the CAPM model formulae. we have that
Expected Return = Risk free rate + Beta x Market premium
Expected Return= 2% + 0.6 X 6%
Expected Return= 0.02 + 0.6 X 0.06
Expected Return=0.02 + 0.036
= 0.056
where
Ke = Expected Return = 0.056
g = Growth rate =?
D0= dividend = 5.60
We have Market price of stock = D₀ (1+g)/ Ke -g
$324= 5.60 ( 1+g)/ 0.056 - g
324( 0.056-g) = 5.60 (1+ g)
18.144 -324g= 5.60 +5.60g
18.144 -5.60 = 5.60 g + 324g
12.544=329.6
g= 12.544/329.6 = 0.0381
Therefore Expected growth rate = 3.81%
How would higher U.S. tariffs on Chinese imports affect its private saving, domestic investment, and government deficit?
Answer:
Private Saving
With higher tariffs on Chinese imports, the prices of commodities would increase as the tariffs would be added to the prices of goods. This means that consumers would have to spend more to buy goods and services and should this happen they would have to save less if their income levels stay constant.
This would therefore reduce private saving.
Domestic Investment
With tariffs making Chinese goods more expensive, domestic companies will see the demand for their goods and services increase. This will spur new investment into domestic companies in order to capitalize on this increased demand.
Government Deficit
In the short run, the Government deficit will decrease because the revenue collected from tariffs will offset some Government spending.
In the long run however, companies would see their profits dwindle as they face higher input costs which would mean that the taxes which are the main source of Government revenue will decrease which would increase the Government deficit.
Barb Muller wins the lottery. She wins $20,000 per year to be paid for 10 years. The state offers her the choice of a cash settlement now instead of the annual payments for 10 years. If the interest rate is 6%, what is the amount the state will offer for a settlement today?
Answer:
The government should offer $147,201.74.
Explanation:
First, we need to calculate the future value (FV) of the payments using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual payment
FV= {20,000*[(1.06^10) - 1]} / 0.06
FV= $263,615.90
Now, the present value, meaning the amount of money that the government should offer:
PV= FV/(1+i)^n
PV= 263,615.9 / (1.06^10)
PV= $147,201.74
The government should offer $147,201.74.
On January 1, 2004, Oak Co. issued 400 of its 8%, $1,000 bonds at 97 plus accrued interest. The bonds are dated October 1, 2003 and mature on October 1, 2013. Interest is payable semiannually on April 1 and October 1. Accrued interest for the period October 1, 2003 to January 1, 2004, amounted to $8,000. On January 1, 2004, what amount should Oak report as bonds payable, net of discount?
Answer:
Oak Co.
The amount that Oak should report as bonds payable, net of discount is:
$400,000.
Explanation:
a) Data and Calculations:
Cash from the issue of 400 bonds = 400 * $1,000 * 97/100 = $388,000
Interest rate = 8% semiannually on April 1 and October 1
Bonds payable = $400,000 ($1,000 * 400)
Date of bonds = October 1, 2003
Accrued interest from October 1, 2003 to January 1, 2004 = $8,000
b) The bonds payable is the face value of the bonds. It is the amount that will be due for repayment to bondholders on the maturity of the bonds in 10 years' time, precisely on October 1, 2013.
economic sustainability for sanitation
Answer:
Economic sustainability is an integrated part of sustainability and means that we must use, safeguard and sustain resources (human and material) to create long-term sustainable values by optimal use, recovery and recycling.
Several key ideas make up the economic angle of sustainability:
Smart growth.
Long-range planning.
Cost savings.
Research and development spending.
Cost of living.
Is this ok?
Wild Swings Inc.’s stock has a beta of 2.5. If the risk-free rate is 6% and the market risk premium is 7%, what is an estimate of Wild Swings’ cost of equity?
Answer:
r = 0.235 or 23.5%
Explanation:
Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * rpM
Where,
rRF is the risk free rate rpM is the market return
r = 0.06 + 2.5 * 0.07
r = 0.235 or 23.5%
Jim earns $100,000 a year at his job. He owes $20,000 a year for his home mortgage payment, and $30,000 a year for his combined cabin, boat, and car payments. What is Jim's yearly accumulated wealth before he spends anything on himself or his family?
Answer: $50,000
Explanation:
From the question, we are informed that Jim earns $100,000 a year at his job and that he owes $20,000 a year for his home mortgage payment, and $30,000 a year for his combined cabin, boat, and car payments.
Jim's yearly accumulated wealth before he spends anything on himself or his family will be his earnings less the amount owed. This will be:
= $100,000 - ($20,000 + $30,000)
= $100,000 - $50,000
= $50,000
1. Correct the following business messages keeping the 7C's of effective communication in consideration.
i. Revise the following message for conciseness:
In this time of the day, we are sending this announcement to let everyone know that new medicines ordered by the hospital which are mentioned on the list will be available from next month.
Answer:
Revise the following message for conciseness is explained below in detail.
Explanation:
ConciseClearCorrectConcreteCompleteCourteousCoherentThese above mentioned 7 points are the 7 C's of communication.
At this contemporary time, this statement is to let everyone understand that the new medications and medicine required by the hospital and introduced on the list will be appearing next month.
Write an assessment of the logistical, financial, and any other considerations of implementing eMobile/eHealth information technology in your organization. If mobile technology is in use in your organization, give a brief description of the technology in use, and assess the impact this has had on operations.
Explanation:
The use of mobile information technologies in organizations is increasingly essential, due to the speed with which business is currently carried out and the great competition. Intelligent systems are implemented in organizations so that there is speed in communication processes, as is the case with eMobile / eHealth that manages the quality of messages sent to an organizational mobile device, facilitating organizational communication to occur effectively, safely and quickly. , through the technology of requesting information contained in a corporate database. To maintain the security of the system, there must be an adequate and sophisticated implementation, to eliminate fraud and intrusions.
The advantages of mobile information technologies in organizations are reflected in all organizational sectors, as from an effective and fluid communication, the speed of processes increases, unnecessary costs decrease, and contributes to continuous organizational improvement.
Country of origin can strongly influence a firm’s approach to organization structure. As MNEs from China and India internationalize, to what extent are they likely to differ from that observed for Japanese, European and US MNEs?
Answer:
Chinese and Indian firms are likely to apply their own principles when they internationalize as MNEs.
Explanation:
For example, the Chinese have in many aspects similar values to the Japanese. They believe in hierarchies, in strict organization and methods, and in efficiency above everything else.
However, the Chinese tend to be less protocol-focused than the Japanese, because the Chinese are more extraverted. So when the Chinese companies become MNEs, they are likely to be similar to Japanese MNEs, but with a bit less organization and protocol.
An increase in the firms receivable turnover ratio means that:
Answer:
interest generated in a business
The MRP input storing information on the status of each item by time period (e.g., scheduled receipts, lead time, lot size) is the:
Answer:
inventory records
Explanation:
The development and application of MRP was based upon on the recognition of the difference between independent and dependent demand, and computers.
The output of MRP is a schedule of requirements for all parts and end items.
Inventory records is simply known to be a form used during a periodic inventory to record information about each item of merchandise on hand or in store.
Why do we practice making associations with simple and mundane problems and resources
Question Completion with options:
Select all that apply.
A. To bring some light-hearted humor to practicing a rather difficult behavior.
B. Things like losing your keys and empty ink cartridges are actually more important of a problem than expected.
C. Due to their simplicity, there is a “right” or “perfect” solution to be identified.
D. Removes the risk associated with trying to find the “right” or “perfect” solution.
E. They are problems and resources that most people have experience with or can relate to.
Answer:
We practice making associations with simple and mundane problems and resources because:
E. They are problems and resources that most people have experience with or can relate to.
Explanation:
Such problems and resources are malleable to daily practice and association because they are simple and commonplace. Most people can also relate to the given problems and resources, having acquired the experience before or they have been associated with the resources for solving the particular problems. So making them a subject of practice, it becomes easier to use them as anecdotes for teaching and enlightenment. Experience, some claim, is a good teacher.
identify each CSTO from its description
Sedita Incorporated is working on its cash budget for July. The budgeted beginning cash balance is $46,000. Budgeted cash receipts total $175,000 and budgeted cash disbursements total $174,000. The desired ending cash balance is $50,000. The excess (deficiency) of cash available over disbursements for July will be:
a. $47,000
b. $221,000
c. $45,000
d. $1,000
Which method of communication is likely to be most effective for the following situation: You want your client to go over the detailed itinerary that you have prepared for this four-week journey to China.
A. Face-to-Face
B. Written Letter
C. Phone Call
D. Email
E. Fax
Answer:
B
Explanation:
then you could know their schedule and where they will be and when.
Largo Company has unit costs of $10 for materials and $30 for conversion costs. If there are 2,500 units in ending work in process, 40% complete as to conversion costs, and fully complete as to materials cost, the total cost assignable to the ending work in process inventory is:_________
Answer:
$55,000
Explanation:
Calculation for the total cost assignable to the ending work in process inventory
First step is to calculate the ending Materials Cost:
Ending Materials Cost = [(2,500 units × $10]
Ending Materials Cost = $25,000
Second Step is to calculate the ending Conversion Cost:
Ending Conversion Cost = [(2,500 units × 40%) × $30]
Ending Conversion Cost = [(1,000) × $30]
Ending Conversion Cost = $30,000
Last step is to calculate the total cost assignable to the Ending work in process inventory cost using this formula
Ending work in process inventory cost = Ending Materials Cost + Ending Conversion Cost
Let plug in the formula
Ending work in process inventory cost = $25,000 + $30,000
Ending work in process inventory cost = $55,000
Therefore the total cost assignable to the ending work in process inventory is $55,000