Answer:
The correct answer is: Human Resource Management
Explanation:
To begin with, the Human Resource Management Systems are the ones that focus on the managing of the human factor inside the organization with the purpose of making easier the processes of hiring, collecting data and more. So therefore that this systems concentrate on hiring and managing existing employees to get the total potential of the human talent in the organization by having a better and more organized place in where the managers can deal with those issues and other stuff related to that.
Smiley Corporation sold equipment costing with of accumulated depreciation for cash. Which of the following journal entries should be prepared?
a. debit Cash for $10, 000, credit Equipment for $6000 and credit Gain on Sale of Equipment for $4000
b. debit Cash for $10, 000, debit Accumulated Depreciation - Equipment for $66, 000, credit Equipment for $72000 and credit Gain on Sale of Equipment for $4000
c. debit Cash for $10, 000 and credit Gain on Sale of Equipment for $10, 000
d. debit Accumulated Depreciation - Equipment for $66, 000 and credit Equipment for $66, 000
The question is incomplete as the figures are missing. The complete question is,
Smiley Corporation sold equipment costing $72, 000 with $66, 000 of accumulated depreciation for $10, 000 cash. Which of the following journal entries should be prepared?
A. debit Cash for $10, 000, credit Equipment for $6000 and credit Gain on Sale of Equipment for $4000
B. debit Cash for $10, 000, debit Accumulated Depreciation - Equipment for $66, 000, credit Equipment for $72000 and credit Gain on Sale of Equipment for $4000
C. debit Cash for $10, 000 and credit Gain on Sale of Equipment for $10, 000
D. debit Accumulated Depreciation - Equipment for $66, 000 and credit Equipment for $66, 000
Answer:
Option B is the correct answer.
Explanation:
To calculate the gain or loss on disposal of the equipment, we first need to determine the book value of the equipment on the date of sale.
Net Book Value = Cost - Accumulated depreciation
Net Book value = 72000 - 66000 = $6000
The gain/(loss) on disposal = Sales Proceeds - Net Book value
The gain/(loss) on disposal = 10000 - 6000 = $4000 Gain
The entry to record this transaction will be,
Cash $10000 Dr
Accumulated depreciation - Equipment $66000 Dr
Equipment $72000 Cr
Gain on sale-Equipment $4000 Cr
Sauer Milk Inc. wants to determine the minimum cost of capital point for the firm. Assume it is considering the following financial plans: Cost (aftertax) Weights Plan A Debt 3.0 % 15 % Preferred stock 6.0 10 Common equity 10.0 75 Plan B Debt 3.2 % 25 % Preferred stock 6.2 10 Common equity 11.0 65 Plan C Debt 4.0 % 35 % Preferred stock 6.7 10 Common equity 10.6 55 Plan D Debt 7.0 % 45 % Preferred stock 7.6 10 Common equity 12.6 45 a-1. Compute the weighted average cost for four plans.
Answer:
Plan A = 8.55%
Plan A =8.57%
Plan A =7.9%
Plan A =6.58%
Explanation:
The weighted average cost of capital can be computed by multiplying the Cost of capital (after tax) with the weights. The weighted average cost for four plans are as follows
WACC = Cost of capital x Weights
PLAN A
Weights Cost of capital WACC
Debt 3.0 % 15 % 0.45%
Preferred stock 6.0 10% 0.6%
Common equity 10.0 75% 7.5%
WACC 8.55%
PLAN B
Weights Cost of capital WACC
Debt 3.2 % 25% 0.8%
Preferred stock 6.2 10% 0.62%
Common equity 11.0 65% 7.15%
WACC 8.57%
PLAN C
Weights Cost of capital WACC
Debt 4.0 % 35 % 1.4%
Preferred stock 6.7 10% 0.67%
Common equity 10.6 55% 5.83%
WACC 7.90%
PLAN D
Weights Cost of capital WACC
Debt 7.0 % 45 % 3.15%
Preferred stock 7.6 10% 0.76%
Common equity 12.6 45% 5.67%
WACC 6.58%
In this module, you learned about the risks or costs associated with financial goals. What are the risks or costs associated with your goal, and how can you overcome these challenges
Answer with Explanation:
My goal is to start a business totally based on a new idea with great potential to influence the lives of the people of America. For this I had worked on a startup idea for couple of years and continuously reforming it.
The biggest risks associated with this goal is funding problems, business risks, market research, innovation issues and Software designing issues.
Now these are some risks that I face but I overcome these challenges by:
Risks Solution
Funding Risk: By presenting my startup idea on a international competition by writing business proposal based on well researched market, product innovation and the financial prospect of the business. There are numerous accelerator programs operated by the state and other organizations that encourage startups and helps with numerous facilities. So I will also present my idea here to secure funding from a wider number of investors.
Business Risks: Giving special considerations to business risks and their mitigation strategies.
Innovation: The products will be innovative enough to generate handsome amount of profit and must be capable of giving tough time to its competitors.
Market Research: The best performing businesses know who their customers are and what they are desiring from them. So market research would capable of identifying my potential customers and that it must be representative of the sample taken.
Software Designing: The software design must be user friendly and must effectively resolve users issues. Furthermore, it must be continuously updated with better features and friendly functioning.
Determine which of the following situations describe games and which describe decisions. In each case, indicate what specific features of the situation caused you to classify it as you did. (a) A group of grocery shoppers in the dairy section, with each shopper choosing a flavor of yogurt to purchase (b) A pair of teenage girls choosing dresses for their prom (c) A college student considering what type of postgraduate education to pursue (d) The New York Times and the Wall Street Journal choosing the prices for their online subscriptions this year (e) A presidential candidate picking a running mate
Answer:
Situation which describes:
1. Game:
(a) A group of grocery shoppers in the dairy section, with each shopper choosing a flavor of yogurt to purchase
(Because of the attribute of each shopper choosing a flavor of yogurt.)
2. Decisions:
(b) A pair of teenage girls choosing dresses for their prom. (The prom which date and time has been fixed already)
(c) A college student considering what type of postgraduate education to pursue. (Because of decision to be educated)
(d) The New York Times and the Wall Street Journal choosing the prices for their online subscriptions this year. (Due to the various financial ability of its reader)
(e) A presidential candidate picking a running mate ( Due to the election that is upcoming)
Explanation:
Tom Company reports the following data.
Sales $385,187
Variable costs 200,887
Fixed costs 87,300
Required:
Determine Tom Company's operating leverage. Round your answer to one decimal place.
Answer: 1.9
Explanation:
The Operating Leverage is calculated by;
Operating leverage = Contribution margin / Operating income
Contribution Margin
= Sales - Variable Costs
= 385,187 - 200,887
= $184,300
Operating Income
= Contribution Margin - Fixed Costs
= 184,300 - 87,300
= $97,000
Operating Leverage = 184,300/ 97,000
= 1.9
Firms with high capital intensity ratios have found ways to lower this ratio permitting them to achieve a given level of growth with fewer assets and consequently less external capital. For example, just-in-time inventory systems, multiple shifts for labor, and outsourcing production are all feasible ways for firms to reduce their capital intensity ratios. True or False
Answer: True
Explanation:
The capital intensity ratio of a company
is used to measure the amount of capital that is required per dollar of revenue. The capital intensity ratio is calculated when the total assets that a company has is divided by its sales.
It should be noted that firms that has high capital intensity ratios have found ways to lower this ratio which allows them to achieve a given level of growth with fewer assets and consequently less external capital.
A car dealership union negotiates a contract that dramatically increases the salaries of all salesmen. If one of the salesmen is thinking of changing careers to be a hardware salesman, his opportunity cost:___________.
a. Would not be affected
b. Of becoming a hardware salesman would decrease
c. Of becoming a hardware salesman would increase
d. None of the above
Answer:
c. Of becoming a hardware salesman would increase
Explanation:
Opportunity cost defines that when a person gets to benefit from another than he received. So, that person takes another benefit from where he gets more benefit or we can say that he will choose the best alternative.
According to the given situation, A car dealership association is negotiating a contract that significantly increases all salesmen 's wages. Now, the Opportunity cost when one of the salespersons feels that shifting the path to hardware is of becoming a hardware salesperson that would increase.
Hence, the right answer is C
To determine cash payments for operating expenses for the statement of cash flows using the direct method, a decrease in accrued expenses is added to operating expenses other than depreciation.
a. True
b. False
Answer:
True
Explanation:
To determine cash payments under direct method the decrease in accrued expenses is added to the operating expenses payable . Accrued expense mean expenses incurred but not yet paid. A decrease in accrued expenses would suggest that accrued expenses have been paid therefore there has been an outflow of cash which will be added to cash paid for operating expenses.
What type of Decision Making Model has the goal of maximizing efficiency by picking the best alternative based on specific criteria
Answer:
Rational model.
Explanation:
Rational decision model uses logic and objectivity while trying to solve a problem. It is not subjective neither does it have to depend on intuition. It helps one to identify a problem and get a solution amongst different options. It maximizes efficiency through picking the best option amongst the rest based on a specific criteria. It is assumed that the person making this choice has enough information about the options.
Stellar Corporation has a cumulative temporary difference related to depreciation of $542,000 at December 31, 2017. This difference will reverse as follows: 2018, $37,000; 2019, $225,000; and 2020, $280,000. Enacted tax rates are 35% for 2018 and 2019, and 40% for 2020. Compute the amount Stellar should report as a deferred tax liability at December 31, 2017. Deferred tax liability at December 31, 2017
Answer:
$203,700
Explanation:
2018 2019 2020
Temporary difference $37,000 $225,000 $280,000
Tax rate 35% 35% 40%
Deferred tax liability $12,950 $78,750 $112,000
Deferred tax liability to be reported at December 31, 2017 = $12,950 + $78,750 + $112,000 = $203,700
Carter Company reported the following financial numbers for one of its divisions for the year; average total assets of $4,100,000; sales of $4,525,000; cost of goods sold of $2,550,000; and operating expenses of $1,372,000. Compute the division's return on investment:
Answer:
14.7%
Explanation:
The computation of return on investment is shown below:
Return on Investment = Net Income ÷ Average total assets × 100
where,
Net Income is
= Sales - Cost of goods sold - Operating expense
= $4,525,000 - $2,550,000 - $1,372,000
= $603,000
And,
Average total assets = $4,100,000
So,
Return on Investment is
= $603,000 ÷ $4,100,000 × 100
= 14.7%
Technology helps managers to monitor and control business activities and includes each of the following except:
a. Reduced processing errors
b. Less extensive testing of records
c. New evidence of processing
d. Separation of duties
Answer:
Correct Answer:
b. Less extensive testing of records
Explanation:
Technology which is the use of machines or electronical devices to make work easier is applied in most organizations by organizational managers. Unfortunately, less extensive testing of records is not one of its uses but rather detailed and extensive testing in order to check if there is any error in the records.
Janitor Supply produces an industrial cleaning powder that requires 31 grams of material at $0.30 per gram and 0.40 direct labor hours at $10.00 per hour. Overhead is applied at the rate of $16 per direct labor hour. What is the total standard cost for one unit of product that would appear on a standard cost card
Answer:
Total standard cost per unit will be $19.7
Explanation:
The standard cost card of the product will be,
$
Material (0.3 * 31) 9.3
Direct Labor (0.4 * 10) 4
Overheads (0.4 * 16) 6.4
Total cost per unit 19.7
Thus, the standard cost per unit will be $19.7
During the year, Bramble Corp. made an entry to write off a $31400 uncollectible account. Before this entry was made, the balance in accounts receivable was $413000 and the balance in the allowance account was $34500. The accounts receivable amount expected to be collected after the write-off entry was
Answer:
The accounts receivable amount expected to be collected after the write-off entry is $378,500
Explanation:
Allowance for bad debt = $34,500
Bad debt written off = $31,400
Credit balance in allowance for bad debts = Allowance for bad debt - Bad debt written off
= $34,500 - $31,400
= $3,100
The balance in receivables account = ($413,000 - $31,400) - ($34,500 - $31,400)
= $381,600 - $3,100
= $378,500
True or False: A tax cut is less likely to change the composition of labor demand than a government spending increase.
Answer:
True
Explanation:
This is the case because tax cuts and government spending are instruments that could be used in expansionary fiscal policy.
Note that reduced taxes usually have a direct impact on the disposable income of a economy not the composition of labor demand. Tax cuts leads directly to consumption and savings increase, resulting from increase in disposable income in the economy.
The Fama-French 3 factor model contains... Group of answer choices market, momentum, and liquidity risk factors none of the answers market, size, and momentum risk factors market, size, and volatility risk factors
Complete Question:
The Fama-French 3 factor model contains
Group of answer choices
A. Market, Momentum and Liquidity Risk Factors
B. None of the answers
C. Market, Size and Momentum risk factors
D. Market, Size and Volatility Risk Factors
Answer:
Hence option is none of these.
Explanation:
The Fama French 3 Model contains following three factors:
Size of FirmsBook-to-Market Values which is Value RiskExcess Return on the Market which is Market RiskIt doesn't include Liquidity risk and Momentum risk factors.
Hence none of the option is correct so we will choose "None of the answers".
Central Systems desires a weighted average cost of capital of 12.7 percent. The firm has an aftertax cost of debt of 4.8 percent and a cost of equity of 15.4 percent. What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital?
a. 0.37
b. 0.44
c. 0.42
d. 0.56
e. 0.34
Answer:
e. 0.34
Explanation:
Let debt be $D
Equity be $E
Total=(D+E)
WACC = Respective cost * Respective weight
12.7 = {(D*4.8)/(D+E)} + {(15.4*E)/(D+E)}
12.7*(D+E)=4.8D+15.4E
12.7D+12.7E=4.8D+15.4E
D=(15.4-12.7)E /(12.7-4.8)
D = 2.7E / 7.9
D = 0.0341772
D = 0.34 E
Hence, debt-equity ratio=debt/equity
=0.34
One of the necessary conditions for a contestable market is that new firms entering the market have a cost advantage over the existing firms.
A. True
B. False
Answer: False
Explanation:
A contestable market is a market whereby there is entry and exit for the companies and such companies usually have low sunk costs. Such companies have access to same technology and skills.
Therefore, the conditions for a contestable market that new firms entering the market have a cost advantage over the existing firms is not true.
A retired customer has an existing stock portfolio held in a cash account. He has heard that "leveraging" his portfolio can increase his return. The portfolio holds blue chip stocks that pay current dividends. He wants to transfer the positions to a margin account and use them as collateral to buy more stocks of the same blue chip companies. Which statement is TRUE
Answer: C. This is not an appropriate strategy because the customer's income will decline
Explanation:
A. The options for the question are:
This is an appropriate strategy that will increase the customer's income
B. This is not an appropriate strategy because the customer's tax liability will increase if the securities appreciate and are sold
C. This is not an appropriate strategy because the customer's income will decline
D. This is an appropriate strategy because the customer has the potential for larger capital gains
From the information that have been provided in the question, we can see that the customer needs income but based on the information that have been provided in the question, the interest that will be charged will eat up the dividend paid by the the stock.
Therefore, this is not an appropriate strategy because the customer's income will decline.
Jacob Corcoran bought 10,000 shares of Grebe Corporation stock two years ago for $24,000. Last year, Jacob received a nontaxable stock dividend of 2,000 shares in Grebe Corporation. In the current tax year, Jacob sold all of the stock received as a dividend for $18,000.
Required:
a. Complete the letter to Jacob describing the tax consequences of the stock sale.
b. Prepare a memo for the tax research file describing the tax consequences of the stock sale.
c.
Answer:
Jacob purchased 10000 shares form Grebe corporation two years ago for $24000
last year Jacob received a non taxable stock dividend of 2000 shares from Grebe corporation
In the current year tax year Jacob sold all stock received as dividend that's 2000 shares for $18000
The gain of the sale of 2000 shares can be calculated by subtracting the basis in the shares from the cost price. the cost of shares = ( $24000 / 12000 ) = $2 per share
profit made from the sales of 2000 shares is calculated as follows ; selling price ( $18000 ) - cost price of 2000 shares ( $2 * 2000) , the profit is $14000 and it is in the long term because the original shares bought has been held for at least 1 year
Explanation:
Jacob purchased 10000 shares form Grebe corporation two years ago for $24000
last year Jacob received a non taxable stock dividend of 2000 shares from Grebe corporation
In the current year tax year Jacob sold all stock received as dividend that's 2000 shares for $18000
The gain of the sale of 2000 shares can be calculated by subtracting the basis in the shares from the cost price. the cost of shares = ( $24000 / 12000 ) = $2 per share
profit made from the sales of 2000 shares is calculated as follows ; selling price ( $18000 ) - cost price of 2000 shares ( $2 * 2000) , the profit is $14000 and it is in the long term because the original shares bought has been held for at least 1 year
12.The competitive strategy of a firm pursuing a "think global, act local" approach to strategy-making A. entails little or no strategy coordination across countries. B. usually involves cross-subsidizing the prices in those markets where there are significant country-to-country differences in the product attributes that customers are most interested in. C. involves selling a mostly standardized product worldwide, but varying a company's use of distribution channels and marketing approaches to accommodate local market conditions. D. is essentially the same in all country markets where it competes but it may nonetheless give local managers room to make minor variations where necessary to better satisfy local buyers and to better match local market conditions. E. involves having strongly differentiated product versionsfor different countries and selling them under distinctly different brand names (one for each country or group of neighboring countries) so that there will be no doubt in customers' minds that the product is more local than global.
Answer:
D. is essentially the same in all country markets where it competes but it may nonetheless give local managers room to make minor variations where necessary to better satisfy local buyers and to better match local market conditions.
Explanation:
A think global act local is a strategic business approach or concept which is aimed at achieving a low cost, effective cost, efficiency and focused strategy theme in all the locations where the firm has its operations but nonetheless avails local managers the opportunity and ability to adjust product
specifications, distribution and marketing channels to better satisfy local consumers, as well as effectively and efficiently match local market conditions.
Hence, the competitive strategy of a firm pursuing a "think global, act local" approach to strategy-making is essentially the same in all country markets where it competes but it may nonetheless give local managers room to make minor variations where necessary to better satisfy local buyers and to better match local market conditions.
The following data were reported by a corporation: Authorized shares 38,000 Issued shares 33,000 Treasury shares 12,500 The number of outstanding shares is:
Answer:
20,500 shares
Explanation:
Authorized shares= 38,000
Issued shares= 33,000
Treasury shares= 12,500
Therefore, the number of outstanding shares can be calculated as follows
Outstanding shares= Issued shares-Treasury shares
= 33,000-12,500
=20,500
Hence the number of outstanding shares is 20,500
Morgan Company issues 10%, 20-year bonds with a par value of $720,000 that pay interest semiannually. The current market rate is 9%. The amount paid to the bondholders for each semiannual interest payment is:
Answer:
$36,000
Explanation:
Calculation for the amount to be paid to the bondholders for each semiannual interest payment
Using this formula
Semiannual interest payment = Face value Amount*Interest Rate*Time
Let plug in the formula
Semiannual interest payment = $720,000*0.10*0.50
Semiannual interest payment = $36,000
The amount paid to the bondholders for each semiannual interest payment is $36,000
General Electric (GE) has earnings per share of $2.98 and dividends per share of $0.35. Its return on assets (ROA) is 14.6% and its return on equity (ROE) is 18.2%. What is its sustainable rate of growth?
Answer:
g = 0.1606 or 16.06%
Explanation:
The sustainable growth rate is the growth rate in earning or dividends of a stock that will remain constant in the long run. Such a rate is calculate for an indefinite period of time. The formula to calculate the sustainable growth rate is,
g = RR * ROE
Where,
RR is the retention ratio or (1 - dividend payout ratio)ROE is the return on equityThe dividend per share as a percentage of earnings per share will give us the dividend payout ratio.
Dividend payout ratio = 0.35 / 2.98 = 0.1174 or 11.74%
g = (1 - 11.74%) * 18.2%
g = 0.1606 or 16.06%
The accounts receivable turnover is computed as __________ divided by __________. sales; accounts receivable sales; average accounts receivable sales; net income accounts receivable; net income
Answer:
sales ; average accounts receivables
Explanation:
Accounts receivable turnover refers to how a business firm manage its assets. Businesses, companies uses accounts receivables to know and quantify how perfectly goods bought on credit by their customers are being paid back. It also measures how business gives credit and collects back it's debt .It is calculated as net sales divided by average accounts receivables.
Suppose Income Summary received a debit of $75,000 and a credit of $100,000. The net income or net loss for the period must have been:
Answer: Net income of $25000
Explanation:
Suppose Income Summary received a debit of $75,000 and a credit of $100,000, there will be a net income of $25000.
This is because we've a credit of $100,000 and a debit of $75,000 and since the credit is higher than the debit, it shows that there will be a net income.
A company purchased 400 units at $75 per unit. The company sold 385 units. what is the cost of goods sold and ending inventory
Answer:
Cost of goods sold $28,875
Ending inventory $1,125
Explanation:
Calculation for cost of goods sold and ending inventory
Cost of goods sold is calculated using this formula
Cost of goods sold=Sales units *Purchased per units
Let plug in the formula
Cost of goods sold=385 units *$75 per unit
Cost of goods sold=$28,875
Calculation for the ending inventory using this formula
Ending inventory=(Purchased units * purchased per unit) -Cost of goods sold
Let plug in the formula
Ending inventory=(400 units× 75 per unit) -$28,875
Ending inventory=$30,000-$28,875
Ending inventory=$1,125
Therefore the Cost of goods sold will be $28,875 while the Ending inventory will be $1,125
A project has an initial cost of $60,000, expected net cash inflows of $14,000 per year for 7 years, and a cost of capital of 13%. What is the project's discounted payback period
Answer:
Discounted payback period = 6.68 years
Explanation:
Year Cash inflow$ Discounted cash Cumulative discounted
inflow$ cash inflow$
1 14,000 12,389 12,389
2 14,000 10,964 23,353
3 14,000 9,703 33,056
4 14,000 8,586 41,643
5 14,000 7,599 49,241
6 14,000 6,724 55,966
7 14,000 5,951 61,917
Discounted cash inflow is calculated by discounting cash inflow at 13%. For example, discounted cash-flow in year 1 = 14,000 / (1+13%)^1 = 12,389.
Similarly, discounted cash-flow in year 2 = 14,000 / (1+13%)^2 = 10,964. And so on.
Cumulative cash-flows are sum of all cashflows till that year. For example, year 2 cumulative cashflow = 12,389 + 10,964 = 23,353.
Similarly, year 3 cumulative cash-flow = 23,353 + 9,703 = 33,056.
This cumulative cash-flow crosses 60,000 in year 7, so discounted payback period = 6 + (60,000-55,966) / 5,951
Discounted payback period = 6.68 years
Which of the following is an example of an oligopolistic market with a standardized product?
A) The market for breakfast cereal.
B) The market for aluminum.
C) The market for jewelry.
D) The market for automobiles.
Answer:
B) The market for aluminum.
Explanation:
An oligopoly is a market form in which the market or industry is dominated by a small group of large sellers. Oligopolies can result from various forms of collusion that reduce market competition which then majorly leads to higher prices for consumers. They have their own market structure.
Oligopolistic market with standardised product is an homogeneous oligopoly that is an oligopoly in which firm produce a standardised product. And a good example of that is the Aluminum market.
A profit-maximizing firm in a competitive market that is producing on a production curve where the marginal product of labor is diminishing also has:
Answer: A. a downward-sloping labor demand curve.
Explanation:
If the marginal product of labor is diminishing then that means that for every extra worker hired, less products are made than the last worker. As a result of this, companies will not want to pay high wages to workers because they would be bringing in less revenue when hired.
This will cause a downward-sloping labor demand curve that shows that as more workers are hired, the company would like to pay less wages because each new worker is only producing less than the last worker.