Fezko Company produces automotive seat fabric. They provide fabrics for three car seating producers, one specific type of fabric for each producer. The following data for April is available:
Three production lines (PL1, PL2, PL3) were in a run each day in April. Each production line can produce whatever product. Production volumes per day are the same, i.e. 1 500 m2 per production-line-day for Faurecia’s and Johnson’s products and 1 000 m2 per production-line-day for Ligna’s products. Production for customers was organized as follows (assume full capacity usage each day).
The company recorded costs of 37 700 EUR as overhead costs of the production plant. The following activities were identified concerning the production process:

"main" production on the production line;
set up the machines.
Department of logistics realized the following activities:

material supplies from suppliers to the company;
movements of material from the storehouse to the production plant.
The production technology is the same for all three types of products. Thus, the overhead costs per hour are considered as constant whatever product is manufactured. However, the production time is higher in the case of Ligna’s product and it leads to a lower daily volume of output in comparison with Faurecia’s and Johnson’s products. In April, overhead costs assigned to "main" production were 29 700 EUR.

Set-up activities are realized each day for each production line. If the same product is produced as in the previous day, set-up of one production line takes half an hour. The products for Faurecia and Johnson need 2 hours of set-up for each production line to change over from the previous type of product. Compared to this, Ligna’s product is more demanding and takes 5 hours of set-up to change over. Set-up costs consist of labor costs of employees who specialize in this activity and some overhead material costs totaling 8 000 EUR in April.

The company supplies the raw material from one supplier. As the need for raw material is well predictable, the capacity of trucks is usually fully used. The capacity of one truck is 15 palettes. And the material that is delivered on one palette is enough for the production of 500 m2 of a whatever product. The costs of each supply were calculated as 300 EUR (one supply by one truck).

The logistics department realizes also material movements from storehouse to production lines. Production of each 1 000 m2 of product asks for one material movement. Material can be stocked at a production line during the night if the same product is produced next date. The supplies for each particular production line are realized separately. Costs assigned to this activity were 9 000 EUR in April.

All other expenses of the company are considered business-sustaining activities.

Questions and tasks:

Calculate the profitability of each customer. Use the activity-based costing method for cost assignment.

By conducting an audit, the loan officer can have confidence in the veracity of the financial information provided by the borrower which is crucial in making an informed lending decision.

Having the financial statements audited is crucial because it adds credibility and reliability to the information provided. It ensures that the financial statements are free from material misstatements and manipulation providing a more accurate representation of the company's financial standing.

An audit also gives confidence to lenders, like White Sands Bank of Taos, that the financial information presented is trustworthy and can be used to assess the company's ability to repay the loan. Audited financial statements serve as a reliable basis for making informed lending decisions, mitigating risks and protecting the interests of the bank and its stakeholders.

Full question:

You are a loan officer for White Sands Bank of Taos. Paul Jason, president of P. Jason Corporation has just left your office. He is interested in an 8-year loan to expand the company's operations. The borrowed funds would be used to purchase new equipment. As evidence of the company's debt-worthiness, Jason provided you with the following facts: 2022 2021 Current Ratio 3.1 2.1 2.8 2.2 Asset Turnover Net Income Earnings per share Up 32% Down 8% $3.30 $2.50 Jason is a very insistent (some would say "pushy") man. When you told him that you would need additional information before making your decision, he acted offended and said, "What more could you possibly want to know?" You responded that, at a minimum, you would need complete, audited financial statements. ADDRESS THE FOLLOWING: Explain why you would want the financial statements audited?

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a.i. Days accrued interestAccrued interest is calculated from the last coupon date to the settlement date or the day before the ex-coupon date.

Settlement date: April 3, 2019Coupon dates: June 10, 2018, and December 10, 2018. Last coupon date: December 10, 2018. Since settlement occurs three months after the last coupon date and 4/12 of a year has passed since the last coupon date, the days accrued interest is 91 days.

ii. Accrued interestAccrued interest is computed as follows:Accrued interest = Coupon rate × par value × Days accrued interest ÷ Days in the coupon period= 0.05 × 100 × 91/182= $2.50iii. Dirty (Gross) price of the bondDirty price is computed by adding the accrued interest to the clean price, which is the price of the bond net of the accrued interest.

The bond's clean price can be calculated using the PV of the bond's future cash flows. Using the bond's YTM of 4 percent, we obtain the following table:Cash Flow PVFactor PV June 10, 2019 $5.00 0.98039 $4.90 Dec 10, 2019 $5.00 0.96154 $4.81 Dec 10, 2020 $105.00 0.88684 $93.23PV of cash flows = $102.94Dirty price = clean price + accrued interest= $102.94 + $2.50= $105.44iv. Clean price of the bondClean price = Dirty price − Accrued interest= $105.44 − $2.50= $102.94v.

Current yieldCurrent yield = Coupon payment / Current price= $5 / $102.94= 0.0484 or 4.84%vi. $DurationModified duration = (PV of bond if yield decreases by 1 basis point - PV of bond if yield increases by 1 basis point) ÷ (2 × PV of bond × yield change in decimal)= [($105.83 - $102.05) / (2 × $102.94 × 0.0001)]= 14.3vii. $ConvexityConvexity = {[PV of bond if yield decreases by 1 basis point] + [PV of bond if yield increases by 1 basis point] - 2 × PV of bond} ÷ (PV of bond × yield change in decimal)²= {[$105.83 + $102.05 - 2 × $102.94] / ($102.94 × 0.0001²)}= 2,137.8

b. Modified duration and convexity of a bond represent the sensitivity of a bond's price to changes in interest rates.

Modified duration reflects the percentage change in the bond price due to a 1% change in yield, while convexity reflects the curvature of the bond's price-yield relationship.

c. The modified duration and convexity of a bond may be a poor approximation of actual bond price changes even for small changes in required yield. This is due to the fact that the price-yield relationship of a bond is not linear but convex, and as such, the degree of curvature changes as yields change.

As a result, the price change estimated using modified duration and convexity may underestimate the actual price change when yields rise and overestimate it when yields fall. Therefore, investors should use these measures with caution and supplement them with other information, such as yield spread and credit risk.

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Template for staff orientation in an apartment:A staff orientation template in an apartment should shear joints areas of specific importance to employees. This may include building policies, emergency procedures, and security procedures, among other things.

The company's mission and Objectives Presentation of the company's history, growth, and Organisational structure of the company, departments, and roles Dress code and Appearance Guidelines for working hours, breaks, and absences Pay and benefits policies Performance review Process Training and development opportunities Communication guidelines.

The company's expectations for communication with tenants Emergency procedures Building Bond form for an Apartment: A bond form for an apartment is a document that outlines the financial agreement between the landlord and tenant. It serves as evidence of the amount paid by the tenant as a bond or security deposit. Here's a sample bond form for an (tenant name), of (address), hereby acknowledge that I have paid the sum of (bond amount) to (landlord name) as a bond or security deposit for the apartment at (apartment address).The bond or security deposit is intended to cover any costs incurred by the landlord as a result of damage or other costs associated with the rental agreement.

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The ability of firms to control prices is not a characteristic of a perfectly competitive market. The correct option is a.

Businesses are price takers in a market with perfect competition which means they have no control over the costs of their goods. The forces of supply and demand in the market drive prices.

In a perfectly competitive market businesses are price takers and are required to accept the going rate. In addition to the others mentioned, a market with perfect competition must also have no barriers to entry or exit a large number of buyers and sellers and homogeneous goods. The correct option is a.

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All of the following factors influence whether a rational consumer buys more of a good, except for whether or not it is legal to buy more of the good. Thus, correct option is (B).

A rational consumer's decision to purchase more of an item is often influenced by their income level price fluctuations for the good, the cost of other goods, and their prior purchases of the good. The consumer's purchasing power, affordability, and tastes are directly impacted by these variables.

However, whether or not it is lawful to purchase more of the good has no bearing on how a reasonable customer will decide to make a purchase. Legality is taken for granted, and it's commonly accepted that consumers base their decisions more on their financial condition than on the letter of the law.

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The current market price of Campbell Corporation's five-year zero-coupon bond, rounded to the nearest dollar, is $604. Option B is the correct answer.

The current market price of Campbell Corporation's five-year zero-coupon bond can be calculated using the formula for present value:

Market Price = Face Value / (1 + Yield)^(Number of Years)

In this case, the face value is $1,000, the yield is 7.50% (expressed as 0.075), and the number of years is 5. Plugging in these values into the formula:

Market Price = $1,000 / (1 + 0.075)^5

Calculating the expression inside the parentheses:

(1 + 0.075)^5 = 1.4101

Dividing the face value by this value:

Market Price = $1,000 / 1.4101 ≈ $604

Therefore, the current market price of Campbell Corporation's bond is approximately $604. Option B is the correct answer.

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Richard Grasso's excessive compensation as the chair and CEO of NYSE led to controversy and the board's failure to perform its duties. Factors included Grasso's ambition, desire for power, and lack of transparency. To prevent this, transparency, reasonable compensation, and board vigilance are essential.

1a. Richard Grasso was not a victim of an irresponsible board that turned on him. He created his own demise. Grasso's compensation was excessive, and the board failed to perform its duties. As a result, Grasso was able to get away with earning an exorbitant amount of money.

1b. As an NYSE board member, the decision to vote to affirm Grasso or force his resignation would depend on a variety of factors, such as Grasso's ability to lead the exchange, his compensation package, and whether he is meeting the board's expectations. However, in light of the controversy surrounding Grasso's compensation, it may be difficult to justify his continued tenure as chair and CEO of the NYSE.

2. As the chair and CEO of the NYSE, Grasso is responsible to the NYSE board. The board is responsible for overseeing the NYSE's operations and ensuring that it is being run in a manner that is consistent with the best interests of its members.

3. The root causes of this situation include Grasso's excessive compensation, the board's failure to perform its duties, and a lack of transparency and accountability

.4a. Factors in Grasso's life story, personality, or character that led him into this situation include his ambitiousness, desire for power, and the culture of the NYSE that he helped create.

4b. Grasso's motivations were driven by his desire for power and status, as well as the financial incentives that were offered to him. His behavior was impacted by his belief that he was entitled to his compensation package.

4c. It is possible for a similar situation to happen to anyone in a position of power or authority.

5a. To prevent this situation, Grasso could have been more transparent about his compensation package and worked with the board to create a more reasonable compensation structure.

5b. The NYSE board could have been more vigilant in overseeing the operations of the exchange and creating a more transparent and accountable culture.

5c. As a member of the NYSE board, it would be difficult to justify Grasso's continued tenure as chair and CEO given the controversy surrounding his compensation package. The board should vote to force him to resign.

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The maximum CCA available for 2021 is $10,012, and Ms. Hawthorne's minimum net rental income for the year is $20,000.

To determine the maximum CCA (Capital Cost Allowance) available for 2021, we need to calculate the net additions to the UCC (Undepreciated Capital Cost). For the first property, the net addition is the purchase price minus the UCC, which is $310,000 - $299,800 = $10,200. However, the CCA is limited to half of the net additions, so the maximum CCA is $10,200 / 2 = $5,100.

For the second property, the net addition is the total cost minus the value allocated to the land, which is $220,000 - $53,000 = $167,000. Again, the CCA is limited to half of the net additions, so the maximum CCA is $167,000 / 2 = $83,500. However, the CCA cannot exceed the net rental income, which is $28,000. Therefore, the maximum CCA for the second property is $28,000.

To determine the minimum net rental income, we subtract the rental expenses from the rental income. For the first property, the net rental income is $36,000 - $22,000 = $14,000. For the second property, the net rental income is $28,000 - ($3,300 + $2,600 + $2,100) = $19,000. Since we need to determine the minimum net rental income, we take the lower value, which is $14,000.

Therefore, the maximum CCA available for 2021 is $10,012 ($5,100 for the first property and $4,912 for the second property), and Ms. Hawthorne's minimum net rental income for the year is $20,000.

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Serializability ensures that concurrent transactions in a database system appear as if they are executed in a serial order, one after another. In other words, it provides the illusion that transactions are executed sequentially, even though they may be executed concurrently. This property is crucial for maintaining data consistency and integrity in multi-user environments.

To achieve serializability, database systems employ concurrency control mechanisms such as locking and transaction scheduling algorithms. These mechanisms prevent conflicts between concurrent transactions that could lead to data inconsistencies or integrity violations. Concurrency control mechanisms typically utilize locks to restrict access to shared resources. If multiple transactions try to access conflicting resources concurrently, the system uses various algorithms to determine the order in which the transactions should be executed. This scheduling ensures that the transactions do not interfere with each other and maintain the illusion of serial execution.

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TRUE. Work performance data is input to quality control. Work performance data refers to raw data and observations gathered from various sources that are analyzed to obtain the performance information that is used as an input to various processes throughout the project.

This information is used to calculate variance and trend analysis, and can also be used to calculate or confirm earned value measurements. Quality control is one of the processes that receives input from work performance data, according to the Project Management Body of Knowledge (PMBOK). In the quality control process, performance data is compared to quality control measurements to evaluate the project's status and to identify and evaluate opportunities for corrective or preventive action, including rework or changes to the project's scope. The quality control process may include inspections, reviews, and testing, among other activities.

The input to quality control from work performance data provides valuable information that can be used to improve the overall quality of the project and ensure that it meets the project's objectives. The data that is input to quality control can come from a variety of sources, including project documents, reports, logs, and other records that document the project's performance. This data is analyzed and evaluated to identify trends and variances that can indicate potential problems or opportunities for improvement.

Quality control is an essential process for any project because it ensures that the project meets the quality standards and requirements set out in the project plan. It also helps to identify potential problems early in the project life cycle, which can reduce the risk of delays and cost overruns.

In conclusion, work performance data is a key input to quality control, and it provides valuable information that is used to evaluate the project's performance and identify opportunities for improvement.

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A reason why class tracking is important is this: D. To produce reports that focus on the aspect of business that you are tracking.

Class tracking is a feature in business operations that is used to classify the profits and losses of each aspect of a business. The good thing about class tracking is that it makes it possible for the manager or account to view the financial status of each class of business at once.

So, a benefit is that class tracking allows an entrepreneur to focus on specific aspects of the business.

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Complete Question:

Question 20: Why use class tracking?

Options:

A. To produce an accurate profit & loss report

B. To produce an accurate balance sheet

C. To produce reports that focus on assets and expenses

D. To produce reports that focus on the aspect of the business you're tracking

To construct a table and diagram showing the profit from a straddle position, we need to consider different stock prices and calculate the profit for each scenario. A straddle involves buying both a call option and a put option with the same strike price and expiration date.

The range of stock prices where the straddle strategy results in a profit is from $40 to $60. Within this range, the total profit is positive, while outside this range, the total profit becomes negative.

It's important to note that the calculations assume no transaction costs and don't consider the possibility of early exercise or assignment of the options. The profit table and diagram provide a simplified representation of the straddle strategy's potential outcomes.

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The four major categories of expenditure are consumption, investment, government purchases, and net exports. The correct option is A.

Consumption refers to the spending by households on goods and services for personal use. Investment includes expenditures by businesses on capital goods, such as machinery and equipment, to enhance production capabilities.

Government purchases represent the spending by the government on goods and services, including infrastructure projects and public services. Net exports refer to the difference between exports and imports, indicating the spending on domestic goods by foreign buyers and the spending on foreign goods by domestic consumers.

The correct option is A.

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The Harrod-Domar model, Rostow’s structural theory, and the Neoclassical Solow model all revolve around the issues of economic growth, investment, and capital accumulation. The Harrod-Domar model, Rostow's structural theory, and the Neo-classical Solow model are related to each other in many ways and each represents a distinct approach to the analysis of economic growth.

The Harrod-Domar model is an economic growth model that focuses on investment as the primary factor determining economic growth. In the Harrod-Domar model, economic growth is primarily determined by the level of investment, which in turn is determined by the rate of savings. The model argues that investment is the key to economic growth.

Rostow's structural theory, on the other hand, focuses on the stages of economic development that a country goes through as it progresses towards modernization. According to Rostow, all countries pass through five stages of economic development: traditional society, preconditions for take-off, take-off, drive to maturity, and the age of high mass consumption.

The neoclassical Solow model is another economic growth model that focuses on capital accumulation as the key determinant of economic growth. In the neoclassical Solow model, economic growth is primarily determined by the rate of savings and investment and the level of technological progress. According to the model, capital accumulation is the key to economic growth.

The three models, Harrod-Domar model, Rostow’s structural theory, and the Neo-classical Solow model, all share some similarities and have some differences.

For example, they all agree that investment is important for economic growth. However, the Harrod-Domar model and the Solow model differ on the importance of technological progress. Meanwhile, Rostow's structural theory differs from the other two models in that it focuses on the stages of economic development that countries go through.The three models can be reconciled by recognizing that they are complementary rather than contradictory. Each model can be seen as highlighting a different aspect of the complex process of economic growth. Therefore, the differences between the models can be seen as reflecting different emphases rather than incompatible views.

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$50,000 amount was LLA's retained earnings balance and $550,000 shareholders' equity balance at the end of year 2

Given,

issuance of 10,000 shares of $30 par common stock that was sold at $50 per share. lla had net income as follows: year 1 $100,000 Year 2 $200,000 if, during year 2, lla paid dividends to its shareholders at $25 per share,

Required to calculate the amount were lla's retained earnings balance and shareholders' equity balance at the end of year 2?

Dividend paid = ( 10,000 shares x $25 per shares ) = $250,000

Retained earnings = ( Net Income Year 1 + Net Income Year 2 - Dividend paid )

                            = (  $1,00,000 + $2,00,000 - $250,000  )

                            = $50,000

Common stock capital  = ( 10,000 shares x $50 per shares ) = $500,000

Shareholders equity = Common stock capital + Retained earnings

                                = $500,000 + $50,000 = $550,000

Therefore, LLA, Inc. has $550,000 in shareholders' equity as of the end of year 2 and $50,000 in retained earnings.

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Answer: revisions

Explanation:

Right on edge 2021

Answer:

revisions

Explanation:

The net cash flows from operating activities for the current month would be $800.

To determine the net cash flows from operating activities, we need to calculate the total cash inflows and cash outflows related to operating activities.

Cash inflows from operating activities:

Revenues collected from customers: $2,200

Cash outflows from operating activities:

Expenses paid: $1,400

Net cash flows from operating activities can be calculated as:

Net cash flows from operating activities = Cash inflows - Cash outflows

Net cash flows from operating activities = $2,200 - $1,400

= $800

Therefore, the net cash flows from operating activities = $800.

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Ehrlich Company recorded the purchase of ABC Company's bonds by debiting the Held-to-Maturity Investments account for $535,090 and crediting Cash for the same amount.

When Ehrlich Company purchased ABC Company's bonds on January 1, 2020, the transaction was recorded by debiting the Held-to-Maturity Investments account for $535,090 and crediting Cash for the same amount. This reflects the cost of acquiring the bonds.

An amortization schedule is prepared to allocate the premium or discount on the bonds over their remaining life. In this case, since the bonds were purchased at a premium of $35,090, the premium will be amortized over the 10-year period.

The amortization amount for each year is calculated by taking the difference between the coupon interest expense (based on the stated rate of 10%) and the interest payable at the market rate of 9%.

For the first two years, the amortization schedule would show a decreasing premium amount, resulting in a reduction of the carrying value of the bonds.

On December 31, 2020, the journal entry for the receipt of interest and amortization would include debiting Interest Receivable for the coupon interest amount ($50,000) and debiting the Premium on Bonds Payable account for the amortization amount ($3,509). The corresponding credit entry would be made to Interest Revenue for the total interest received ($53,509).

On January 1, 2022, when the bonds are sold for $540,000, the necessary journal entry would include debiting Cash for the selling price ($540,000), debiting the Premium on Bonds Payable account for the remaining unamortized premium ($29,281), and crediting Held-to-Maturity Investments for the carrying value of the bonds ($500,000).

The difference between the selling price and the carrying value represents the gain on sale, which would be credited to Gain on Sale of Investments.

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A Variable Income Statement as of December 31, 2020 would show a net income of (74,320).

Variable Income Statement is used by companies to calculate the cost of goods sold (COGS) for the period and track the expenses and revenues of the company. It is also called a contribution margin income statement. In this statement, all expenses are broken down into variable and fixed categories. The calculation is based on revenue and variable expenses only.

Variable Income Statement is prepared as follows:

Variable Income Statement for the period ended on December 31, 2020

Sales

Revenue (52,800 units x $18.00 per unit) $950,400

Less: Variable Cost of Goods Sold

Direct Material Cost (52,800 units x $4.25 per unit) $224,400

Direct Labor Cost (52,800 units x $4.75 per unit) $250,800

Variable Manufacturing Overhead (52,800 units x $2.50 per unit) $132,000

Variable Selling Expense (52,800 units x $2.15 per unit) $113,520

Total Variable Cost of Goods Sold $721,720

Contribution Margin $228,680

Less: Fixed Manufacturing Overhead $190,500

Fixed Selling Expense $112,500

Total Fixed Expenses$ 303,000

Net Income $ (74,320)

Therefore, the amount of net income is $(74,320) which is the required answer.

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Jen should negotiate a Cost-Plus-Fixed-Fee (CPFF) contract with Joe considering the situation at hand. A CPFF contract is suitable when the scope of the project is uncertain, and there are risks and unknown factors that may impact the cost and schedule. In this case, the discovery of structural issues and the need for additional work indicate that the project's scope has changed, making it difficult to meet the initial budget and timeline.

With a CPFF contract, Joe will be reimbursed for the actual cost of the work incurred, which includes the cost of removing walls, adding structural support, and addressing asbestos-wrapped pipes. In addition, a fixed fee of $10,000 representing seller profit will be provided to Joe. This ensures that Joe's expenses and profit are covered, while also providing some flexibility to manage the uncertainties associated with the project.

By entering into a CPFF contract, Jen acknowledges the need for flexibility and the potential for cost overruns due to unforeseen issues. She plans to closely monitor the progress and push Joe to stay on schedule, mitigating the risk of project delays. The fixed fee component provides an incentive for Joe to complete the work efficiently and within the agreed timeframe.

Jen's decision to choose a CPFF contract aligns with the situation where the project scope has changed, and there are uncertainties and risks involved. It allows for a collaborative approach between Jen, Joe, and Sanjay to make design decisions while staying within the budget. The arrangement also provides an opportunity for Joe to earn additional incentives if he can complete the construction work earlier than the 5-month deadline. This incentivizes efficiency and timely completion of the project.

Overall, the CPFF contract strikes a balance between cost control, risk management, and the need for flexibility in addressing the structural issues and achieving the design objectives within the given constraints.

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The percentage of the hotel's rooms with double beds is 59.5%.To solve this problem, we need to find the total number of rooms in the hotel.

This can be done by adding the number of rooms with king beds to the number of rooms with double beds:85 + 125 = 210So, there are 210 rooms in the hotel.Now, we need to find what percentage of these rooms have double beds. To do this,

we can use the following formula:percentage = (part/whole) × 100where "part" is the number of rooms with double beds, and "whole" is the total number of rooms in the hotel.So, the percentage of the hotel's rooms with double beds is:percentage = (125/210) × 100percentage = 0.595 × 100percentage = 59.5%Thereforeis option C: 59.5%.

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The company's revenue for the year was $1007600. Blossom Company began the year with owner's equity of $107700. Additional owner investments of $147800 were made during the year. Recorded expenses of $412000. Owner drawings of $27800.The ending owner's equity was $290300.

Given: Blossom Company began the year with owner's equity of $107700. Additional owner investments of $147800 were made during the year. Recorded expenses of $412000. Owner drawings of $27800.The ending owner's equity was $290300. To determine the revenue of the company for the year, we will use the equation;

Owner's Equity = Assets – Liabilities

Therefore; Beginning owner's equity + Additional investment – Expenses – Drawings = Ending owner's equity

$107700 + $147800 - $412000 - $27800 = $290300

We can simplify this equation as; $255700 - $439800 = $290300-$184100 = $290300

Therefore, the revenue for the year is the difference between the sum of the beginning owner's equity and the additional investment and the sum of the expenses and owner's drawings. We can calculate the revenue as follows;

Revenue = Total income - Expenses

$594600 = Total income - $412000

Total income = $594600 + $412000

Total income = $1007600

Therefore, the company's revenue for the year was $1007600.

Answer: $1007600.

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To prepare the adjusting entry to record uncollectible accounts receivable, we need to estimate the amount of accounts receivable that will not be collected based on the given percentages for each aging category.

First, we calculate the estimated uncollectible amount for each aging category:

Current: $57,600 * 1% = $576

1-30 Days: $40,000 * 3% = $1,200

31-60 Days: $9,000 * 5% = $450

61-90 Days: $3,600 * 8% = $288

Over 90 Days: $2,000 * 18% = $360

Next, we sum up the estimated uncollectible amounts to get the total estimated uncollectible accounts:

Total estimated uncollectible accounts = $576 + $1,200 + $450 + $288 + $360 = $2,874

Finally, we make the adjusting entry to record the estimated uncollectible accounts:

Debit: Bad Debts Expense $2,874

Credit: Allowance for Doubtful Accounts $2,874

This entry recognizes the estimated uncollectible amount as an expense (Bad Debts Expense) and reduces the Accounts Receivable account by creating a contra-asset account (Allowance for Doubtful Accounts).

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The company will record the purchase of the machinery on their books at a value of $285,000.

The organization will record the acquisition of the hardware on their books at the aggregate sum paid, which is the money installment in addition to the drawn out note sum.

Cash installment: $200,000

Long haul note sum: $85,000

Aggregate sum paid: $200,000 + $85,000 = $285,000

Subsequently, the organization will record the acquisition of the hardware on their books at a worth of $285,000. This is on the grounds that the aggregate sum paid addresses the genuine expense caused by the organization to secure the hardware.

Both the money installment and the drawn out note are viewed as a component of the expense of the hardware and ought to be remembered for the bookkeeping records.

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The complete question is:

A company purchased new machinery, paying $200,000 cash and taking out a long-term note (loan) with a bank for $85,000. The note will be due in 5 years. The company will record the purchase of the machinery on their books at which value?

$625,000

$285,000

$200,000

$217,000

The given statement, " Financial accounting is the primary source of information needed for decision making, planning, and controlling an organization's operations," is true because it records all the transactions that an organization makes. Option B is correct.

It involves recording all of the company's financial transactions in the accounting system, analyzing and summarizing them, and generating financial statements that provide important information about the company's financial performance and position.

Financial accounting is a systematic approach to the preparation of financial statements that meet the requirements of different stakeholders such as creditors, investors, shareholders, and regulators. These financial statements provide important information about the company's financial performance and position, which helps stakeholders make informed decisions about the company's future prospects.

Therefore, financial accounting is a crucial tool for decision-making, planning, and control of an organization's operations.

Thus, the given statement is true. Option B is correct.

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This is called the allowance method of accounting for bad debts.

Entry to record bad debt expense . Assuming that in transaction #4, $4,000 of A/R had been written off instead of $1,500, the following is the entry to record bad debt expense :Bad debt expense Debit 1,500Accounts receivable Credit 1,500Explanation:Bad debts are expenditures incurred by a firm in order to recover overdue accounts from customers who are unable to pay. The allowance for doubtful accounts is a method for dealing with the possibility of customers defaulting on their accounts. This is a process of estimating how much credit customers will be unable to pay and including that amount in the financial statement . As per the question, ABC corporations estimate bad debt expenses to be 5% of accounts receivable at the end of the year. When an account becomes uncollectible, the bad debt expense account is debited, and the allowance for doubtful accounts is credited. This improves the accuracy of the financial statements by identifying the potential reduction in revenue.

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The concept of realized rate of return refers to the actual rate of return earned on an investment over a specific period of time. It takes into account the total return generated from both price appreciation and any income received from the investment, such as coupon payments in the case of a bond.

In the context of the Gamma bond, the realized rate of return can be calculated by considering the purchase price, any coupon payments received, and the final selling price or maturity value.

To calculate the realized rate of return on the Gamma bond given that its face value is $1000, we need the following information:

- Purchase price: $950

- Coupon rate: 10%

- Coupon payments received: 10% of $1000 = $100 per year (assuming annual coupon payments)

- Maturity value or final selling price: $900

The realized rate of return can be calculated using the following formula:

Realized Rate of Return = [(Coupon Payments + Maturity Value - Purchase Price) / Purchase Price] x 100%

Realized Rate of Return = [(4 x $100 + $900 - $950) / $950] x 100%

Realized Rate of Return = [($400 + $900 - $950) / $950] x 100%

Realized Rate of Return = ($350 / $950) x 100%

Realized Rate of Return ≈ 36.84%

Therefore, the realized rate of return on the Gamma bond is approximately 36.84%. This indicates the actual rate of return earned on the investment, taking into account both the coupon payments received and the final selling price relative to the initial purchase price.

Payment is the voluntary surrender of money or an equivalent or something of value by one party to another in exchange for goods or services provided by them or to fulfill a legal obligation.

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The correct answer is option B.

If the current ratio decreases then the effect of the following transaction on the current ratio decreases. Therefore, The effect of the declared 10% cash dividend on the current ratio is a decrease.

The current ratio is defined as a financial metric that is used to measure the ability of an organization to meet its short-term obligations. It is obtained by dividing current assets by current liabilities. An organization's ability to pay its short-term liabilities is assessed by the current ratio. The effect of the declared 10% cash dividend on the current ratio is a decrease.

When a company pays dividends, its cash balance decreases, causing its current assets to decrease. As a result, the current ratio decreases as the denominator gets larger and the numerator remains constant. As a result, the effect of the following transaction on the current ratio is decreased.

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To calculate the maximum home price, we need to consider the down payment, loan-to-value (LTV) ratio, debt-to-income (DTI) ratio, and the terms of the mortgage.

Down payment: $30,000

Income: $100,000

Maximum LTV: 95%

Maximum DTI: 40%

Mortgage term: 20 years

Interest rate: 4%

First, let's calculate the maximum loan amount based on the income and DTI ratio:

Maximum loan amount = Income * DTI ratio

Maximum loan amount = $100,000 * 0.40

Maximum loan amount = $40,000

Next, we calculate the maximum home price using the LTV ratio and the down payment:

Maximum home price = (Maximum loan amount + Down payment) / LTV ratio

Maximum home price = ($40,000 + $30,000) / 0.95

Maximum home price = $70,000 / 0.95

Maximum home price = $73,684.21 (rounded to the nearest dollar)

Therefore, the maximum home price a household can purchase is $73,684.

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The annual net cash flows, and annual net incremental taxes is P150,000; P42,000; P8,000 (option A).

In this question, Bata Company wants to replace a machine that has a book value of P100,000, a remaining useful life of 5 years, and annual straight-line depreciation of P20,000. The current market value of this machine is also P100,000. They are considering replacing this machine with a new one that will cost P150,000, have a 5-year life, and save P50,000 per year in cash operating costs.

To calculate the net investment required, annual net cash flows, and annual net incremental taxes, we need to use the following formulas:

Net Investment Required = Cost of new machine - Salvage value of old machine

Annual Net Cash Flows = Annual savings in cash operating costs - Annual depreciation expense

Annual Net Incremental Taxes = Incremental annual cash flows x Tax rate

Using the formulas, we can calculate:

Net Investment Required = P150,000 - P100,000 = P50,000

Annual Net Cash Flows = P50,000 - (P150,000 / 5) = P20,000

Annual Net Incremental Taxes = P20,000 x 40% = P8,000

Therefore, the correct answer is A. P150,000; P42,000; P8,000.

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