A comparative balance sheet for Sarasota Corporation is presented as follows.
December 31
Assets 2020 2019
Cash $ 72,680 $ 22,000
Accounts receivable 84,360 68,680
Inventory 182,360 191,680
Land 73,360 112,680
Equipment 262,360 202,680
Accumulated Depreciation-Equipment
(71,360 ) (44,680 )
Total $603,760 $553,040
Liabilities and Stockholders' Equity
Accounts payable $ 36,360 $ 49,680
Bonds payable 150,000 200,000
Common stock ($1 par) 214,000 164,000
Retained earnings 203,400 139,360
Total $603,760 $553,040
Additional information:
1. Net income for 2020 was $129,720. No gains or losses were recorded in 2020.
2. Cash dividends of $65,680 were declared and paid.
3. Bonds payable amounting to $50,000 were retired through issuance of common stock.
Prepare a statement of cash flows for 2020 for Sarasota Corporation. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Determine Sarasota Corporation’s current cash debt coverage, cash debt coverage, and free cash flow.
Answers
Answer:
Sarasota Corporation
1. Statement of Cash Flows for the year ended December 31, 2020:
Operating Activities:
Net Income $129,720
Non-cash adjustment:
Depreciation 26,680
Cash from operating $ 156,400
Changes in working capital:
Accounts Receivable (15,680)
Inventory 9,320
Accounts Payable (13,320)
Net cash from operating activities $136,720
Investing Activities:
Land 39,320
Equipment (59,680)
Net cash from investing activities $(20,360)
Financing Activities:
Cash dividends $(65,680)
Net cash inflows $50,680
2. Sarasota Corporation's:
a) Current Cash Debt Coverage = Cash from operating activities/Current liabilities
= $136,720/$36,360
= 3.76
b) Cash Debt Coverage = Cash from operating activities/Total liabilities
= $136,720/$186,360
= 0.73
c) Free Cash Flow = Cash from operating activities minus Capital expenditure
= $136,720 - 59,680
= $77,040
Explanation:
a) Data and Calculations:
Sarasota Corporation
Comparative Balance Sheets
As of December 31 2020 and 2019:
Assets 2020 2019 Increase Decrease
Cash $ 72,680 $ 22,000 $50,680
Accounts receivable 84,360 68,680 15,680
Inventory 182,360 191,680 $9,320
Land 73,360 112,680 39,320
Equipment 262,360 202,680 59,680
Accumulated Depreciation-Equipment
(71,360) (44,680) 26,680
Total $603,760 $553,040
Liabilities and Stockholders' Equity
Accounts payable $ 36,360 $ 49,680 13,320
Bonds payable 150,000 200,000 50,000
Common stock ($1 par) 214,000 164,000 50,000
Retained earnings 203,400 139,360
Total $603,760 $553,040
b) The decrease in bonds is not a cash flow. The increase in Common Stock is not a cash flow. The two are exchanges. In calculating the free cash flow, the cash proceeds from sale of land were not taken into consideration because the sale was a one-off transaction and not part of the operating activities of Sarasota Corporation.
Related Questions
Study groups: do they work or not?
Answers
Answer:
When working on a group project, studying and working within a group will be a necessity, so you need to make it work for you! Studying in groups has its advantages and disadvantages, but the trick is to know when to resort to solo studying and when to go for group studying. Studying with a partner is a valuable way to learn as students help one another at overcoming weak points.
Advantages of Studying in Groups
1. Brainstorming
Studying in groups allows students to share their different thoughts with one another. This notion usually leads to a better learning process, since brainstorming generates new ideas and thus, students learn the same thing but with different perspectives. Open discussion enhances thinking skills and will give you access to others information and as a result, broadens your mind.
2. Clarification Discussions
Students are different and they perceive the same information differently. You can always ask your study mate to clarify a vague point for you and vice versa. Also, this action increases retention and reinforces the ideas, because the more the information is repeated the stronger the memory will be.
3. Motivation Booster
Group studying is the best procrastination solution as it breaks the monotonous learning process and it makes you attentive to what the others are saying. Mock tests and trial quizzes assist those struggling with course materials and those extracting tests and quizzes from them as well.
Disadvantages of Studying in Groups
1. Distraction
The benefits of group studies are a lot but there are also some cons to group studying. You may find it tiresome to stay focused when studying in a group. Sometimes the conversation shifts from studying to trendy events maximizing distraction. Studying alone might be helpful if you need undivided attention to the materials at hand.
2. Lack of Efficiency
Group studying hampers creativity and efficiency and when there are exams on the horizon, efficiency should be the priority. Studying alone will give you time and space to do your personalized studying. Also, when alone, you can focus freely on a certain part because you know you need to and skip other parts that you have already mastered. This allows you to manage your time wisely and prioritise your tasks.
3. Impersonalized Learning
Our brains conceive information differently, and in order to digest information correctly, you have to do it your own way, not another’s. When studying in a group, you might be studying at someone else’s pace, whether it is too fast or too slow, it will not help you with learning. Also, you might lose track of your own questions and the difficulties you might be facing with the subject at hand because students mostly do not want to diverge from the group. Creating personalized study plans for suture references will also save much time if the student loves to follow a plan and a schedule while studying.
Preferring one way over another does not necessarily mean that it is better; however, it simply means that people choose what suits their characters best. For example, a social person might find it difficult to study alone and find it more appealing to talk to people to learn and on the other hand, another social person will choose to study alone because he gets distracted easily with people and he can focus better when alone. In a nutshell, there is no way advantageous than the other; everyone has his own studying methods and each has its advantages and disadvantages.
15. A retail co. plans to work on a margin of 44% of retail price & to incur other Variable Cost of 4%. If is expected fixed cost of Br. 20,000. A. Find the equation relating Total Cost to sales B. Find the profit if sales are Br. 60,000 C. Find the breakeven revenue D. If profit is Br. 15,000 what should be the revenue level? E. If you have any one item at a price of Br. 15/unit how do you convert the cost equation in terms of revenue in to a cost equation in terms of quantity?
Answers
Financial mathematics refers to the application of mathematical methods to the resolution of financial problems. It applies methods from probability, statistics, stochastic processes, and economic theory.
margin on which retail company works = 44%
variable cost = 4%
fixed cost = Br. 20,000
we need to find:
the equation relating total cost to sales.
the profit if sales are Br . 60,000
the break-even revenue
if profit is Br. 15,000 then what will be its revenue level
how to convert the cost of equation in terms of revenue
(i) given fixed cost = Br. 20,000
VC = 0.4 ₊ 0.56
Y = 0.6x ₊ 20,000
the above formed is the equation relating total cost to sales.
(ii) Π = TR ₋ TC
= 60,000 ₋ (0.6×60000₊20000)
= 60,000 ₋ (36000₊20000)
= 60,000 ₋ 56000
= 4000 birr
(iii) breakeven revenue:
BER or Xe = FC/1₋m = 20000/1₋0.6
= 20000/0.4
=50,000
(iv) Qin sale = FC ₊ π/1₋M
= 20000₊15000/1₋0.6
= 35000/0.4
= 87,500
(V) The cost equation is:
y = bx
87500 = 15x
x = 87500/15
x = 5833.33
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For a monopolistically competitive firm,A. marginal revenue and price are the same.B. average revenue and price are the same.C. at the profit-maximizing quantity of output, price equals marginal cost.D. at the profit-maximizing quantity of output, price equals the minimum of average total cost.
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Answer:
The firm has the features of both a monopolist and a firm in perfect competition.
This comes from the fact that in monopolistic competition, each firm's product is a little varies from the products of other firms. Since the products are not exactly the same, each firm has some power in acknowledging the price for its own product. In more economics-sounding terms, each firm is not a price-taker.
At the same time, a monopolistically competitive firm varies from a monopolist in two crucial ways. One, there are several sellers in a monopolistically competitive market.
At the same time, there are no hindrance to entry and exit in monopolistic competition, and firms can enter and exit the market as they prefer. These two aspects make it same to a firm in perfect competition.
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A recipe for macaroni and cheese calls for 18 ounces of cheddar cheese to make 32 four-ounce portions. How much would cheddar would be needed to produce 40 eight-ounce portions?
Answers
Answer: 45 ounces of cheddar
Explanation:
18 ounces of cheddar is used to make 32 four-ounce portions.
To make 1 four-ounce portion requires;
= 18/32
= 0.5625 ounces of cheddar
Making 1 eight-ounce portion should therefore be double that;
= 0.5625 * 2
= 1.125 ounces of cheddar
To make 40 ounces;
= 1.125 * 40
= 45 ounces of cheddar
I am better at my job than most of the other people who have the same job title agree or disagree
Answers
Disagreed. You cannot say that you are better at your job than others who have the same job title.
How to answer questionnaire questions?While providing the answer to a questionnaire, it is very important that a person would try to be as truthful as possible.
The reason they have to be truthful is so that they would be able to give the best answer that would be useful for the research.
In a question like this, I used disagreed because it is not possible that you have met all of the persons that have the same job description as you do.
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Marie is expected to receive $25,000 at the end of 7 years. If the interest rate is 10% per year, how much is it worth at the end of 10 years?
Answers
1) The UCC adopted the Perfect Tender Rule in order to obligate the seller or lessor to ship or tender conforming goods. Explain the Perfect Tender Rule and identify some important exceptions to the rule.
2). LO Ventures, LLC, doing business as Reefpoint Brewhouse in Racine, Wisconsin, contracted with Forman Awnings and Construction, LLC, for the fabrication and installation of an awning system over an outdoor seating area. After the system was complete, Reefpoint expressed concerns about the workmanship but did not give Forman a chance to make repairs. The brewhouse used the awning for two months and then had it removed so that siding on the building could be replaced. The parties disagreed about whether cracked and broken welds observed after the removal of the system were due to shoddy workmanship. Reefpoint paid only $400 on the contract price of $8,161. Can Reefpoint rescind the contract and obtain a return of its $400? Is Forman entitled to recover the difference between Reefpoint’s payment and the contract price? Explain in detail.
3). Charity Bell bought a used Toyota Avalon from Awny Gobran Auto Sales Inc. The odometer showed that the car had been driven 147,000 miles. Bell asked weather it had been in any accidents. Gobran replied that it was in good condition. The parties signed a warranty disclaimer that the vehicle was sold 'as is.' Problems with the car arose the same day as purchased. Gobran made a few ineffectual attempts to repair it before refusing to do more. Meanwhile, Bell obtained a vehicle history report from Carfax, which showed that the Alalon had been damaged in an accident and that it's last reported odometer reading was 237,271. Was the 'as is' disclaimer sufficient to put Bell on notice that the odometer reading could be false and that the car might have been in an accident? Can Gobran avoid any liability that might otherwise be imposed because Bell did not obtain the Carfax until after she bought the car? Explain in detail.
Answers
Perfect Tender Rule obligates seller to ship conforming goods. Reefpoint and Forman dispute payment over workmanship. 'As is' disclaimer may not prevent liability.
What is workmanship ?
Workmanship refers to the quality of the work done by a person or a company in creating or repairing a product or structure.
1) The Perfect Tender Rule obligates the seller/lessor to ship or tender conforming goods. Exceptions include installment contracts, commercial impracticability, and agreement of the parties.
2) Reefpoint may not rescind the contract and obtain a return of its $400, as they did not give Forman a chance to make repairs. Forman may be entitled to recover the difference between Reefpoint’s payment and the contract price, depending on the extent of the shoddy workmanship.
3) The 'as is' disclaimer may not be sufficient to put Bell on notice that the odometer reading could be false and that the car might have been in an accident. Gobran may not be able to avoid liability because Bell did not obtain the Carfax until after she bought the car, as Gobran had already made a few ineffectual attempts to repair it.
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What are the elements that makes management development distinct
Answers
What's the difference between a Monopoly and Oligopoly market?
Answers
Explanation:
The main difference between monopoly and oligopoly is in the number of firms under consideration.
In Monopoly, the market witness a situation in which one company alone dominates; in other words, this company produces goods or services without having any close competitors.
While in Oligopoly, not just one but a small group of companies act as the dominant players in the market even though they may produce slightly different products; they thus influence the market a lot reducing the chances of new competitors.
Wheat and oats are used to make different types of breakfast cereal and both are grown on the prairies What would happen to the supply and demand of oats if the price of wheat were to fall? What happens to the equilibrium price and quantity of oats?
Answers
If the price of wheat falls, the demand for oats would decrease and the supply of oats would increase.
The equilibrium price of oats would decline and the equlibrium quantity would be indeterminate.
What are subsistute goods?
Substitute goods are goods that can be used in place of another good.
if the price of a good decline, the demand for the substitute decreases and if the price of the good increases, the demand for the substitute decreases.
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Fill out the tax forms for:Ivy Perry, age 40, is single and has no dependents. She is employed as a legal secretary by Legal Eagle Beagle, Inc. She owns and operates Type It located near the campus of Florida Community College at 200 College Road. Ivy is a material participant in the business. She is a cash basis taxpayer. Ivy lives at 6020 College Road, Pensacola, Fla. 33210. Ivy's Social Security number is 123-44-5678. Ivy indicates that she wishes to designate $3 to the Presidential Election Campaign Fund. During 2021, Ivy had the following income and expense items: a. $50,000 salary from Legal Eagle Beagle, Inc. b. $20,000 gross receipts from her typing business c. $700 interest income from Florida Community Bank. d. $1,000 Christmas bonus from Legal Eagle Beagle, Inc. e. $60,000 life insurance proceeds on the death of her brother. f. $5,000 check given by her wealthy uncle g. $100 won in a bingo game. h. Expenses connected with the typing business: Office Rent Supplies Utilities and telephone Wages paid to part-time typists Payroll Taxes Equipment Rentals $7,000 4,400 4,680 5,000 500 3,000 i. $8,346 interest expense on a home mortgage (paid to Florida Community Savings& Loan) j. $5,000 fair market value of silverware stolen from her home by a burglar on October 12 2021; Ivy had paid $4,000 for the silverware on July 1, 2008. She was reimbursed $1,500 by her insurance company k. Ivy had loaned $2,100 to a friend, Deb Dobson, on June 3, 2018. Deb declared bankruptcy on August 14, 2021 , and was unable to repay the loan. Legal Eagle Beagle, Inc. withheld Federal income tax of $7,500 and FICA tax of $3,551 (which was adequate for 2021). Assume the loan is a bona fide debt. 1. m. Alimony of $10,000 received from her former husband, Tony Springfield. n. Interest income of $800 on City of Pensacola bonds. o. Ivy made estimated Federal tax payments of $1,000. p. Sales tax from the sales tax table of $654. q. Charitable Contributions of $2,500. What is the Total income, Adjusted gross income, Taxable income, Tax liability, and amount of federal tax due or refunded.
Answers
Based on the provided information, Ivy Perry's tax situation for 2021 is as follows:
Total Income: $71,800
Adjusted Gross Income (AGI): $47,220
Taxable Income: $34,670
Tax Liability: $3,961.40
Federal Tax Refund: $4,538.60
What is taxation?Taxation is the imposition of compulsory levies on individuals or entities by governments.
It should be noted that Taxes are levied in almost every country of the world, primarily to raise revenue for government expenditures, although they serve other purposes.
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In a many-worker economy the consumption possibilities line touches the production possibility curve
Answers
At one point, the PPC curve crosses the consuming possibility curve.
That is where the two curves meet at that moment.
What does the phrase "consume" mean?Institutional units consume up products or services through the activity of consuming, which can be either final or intermediary. It is the utilization of products and services to fulfill personal or social needs and desires.
What kinds of consumption are there?Consumption may be grouped into two types: depersonalized consumption and personalized consumption. Depersonalized ingestion occurs when commodities are produced by a world organization that is only dimly comprehended. The distinction between business and non-market-based consumption is another.
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Insurance companies create a pool of funds to handle
Orisk
O gain
Oloss
O safety
10
Answers
Answer:
A) risk
Explanation:
An insurance company creates a pool of funds to handle risk. This helps to protect the company financially if there are more claims than expected.
Which financial tool is most important when planning for your future financial goals?
A.Enrolling in a checking account
B.Creating a budget
C.Mortgaging a house
D.Taking on extra debt
Answers
One reason why firms might want to pursue a strategic alliance strategy is to exploit
economies of scale. Exploiting economies of scale should reduce firm’s costs. Does this
mean that a firm pursuing an alliance strategy to exploit economies of scale is actually
pursuing a cost leadership strategy? Why or why not? Support your answer
Answers
So, a strategic alliance may benefit the combined group in two ways: one, it will enable them to target larger clients without facing significant rivalry
Economies of scale, which are commonly assessed by the quantity of product provided per unit of time, seem to be the cost savings that businesses gain as a result of the significant scale of the economy.
In order to lower manufacturing costs, economies of scale is the method of producing any good at a very high volume. Strategic alliances allow two businesses to more effectively merge their operations.
It will enable them to lower costs through economies of scale. Additional benefits of economies of scale include lower prices for goods or cost focus in the marketplace.
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Determine where each piece of information is located on a check.
signature line
date
routing number
account number
personal information
check number
memo line
Answers
Example of a check. Look at the image I attached.
Which of the following are examples of possible fixed costs?
A. Rent
B. Property taxes
C. Both of the above
D. None of the above
Answers
The correct option is A.
What are 5 fixed costs?
Common examples of fixed costs include rental lease or mortgage payments, salaries, insurance payments, property taxes, interest expenses, depreciation, and some utilities.
What does an example of a fixed product cost?Fixed costs are costs that do not change when output changes. Examples include insurance, rent, normal profit, setup costs, and depreciation.
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Exercise 4-7 (Algo) Effects of sales transactions on income statement LO P2
Use the above informations, analyze each transaction by indicating its effects on the income statement-specifically, identify the
accounts and amounts (including + or -) for each transaction.
Answers
The Effects of Sales Transactions on the Income Statement are as follows:
Revenue Side:
May 5 Sales Revenue $21,000
May 7 Sales Returns -$1,750
May 8 Sales Allowance -$300
Net Sales Revenue = $18,950
Costs:
May 5 Cost of goods sold $15,000
May 7 Inventory -$1,250
Cost of goods sold = $13,750
Operating Income:
Net Sales Revenue $18,950
Cost of goods sold -13,750
Gross profit $5,200
May 15 Cash Discounts -$379
Operating profit $4,821
Data Analysis:
May 3 Inventory $20,000 Cash $20,000
May 5 Accounts Receivable (Macy Co.) $21,000) Sales Revenue $21,000 credit terms 2/10, n/60.
Cost of goods sold $15,000 Inventory $15,000
May 7 Sales Returns $1,750 Accounts Receivable (Macy Co.) $1,750
Inventory $1,250 Cost of goods sold $1,250
May 8 Sales Allowance $300 Accounts Receivable (Macy Co.) $300
May 15 Cash $18,571 Cash Discounts $379 Accounts Receivable (Macy Co.) $18,950
Thus, the transactions' effects will produce an operating income of $4,821 for the period.
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Candy or cookies? i want to know
Answers
Answer:
Candy
Explanation:
FOLLOW MY ACCOUNT PLS PLS
What misconceptions should Juanita correct during her meeting with Bill?
Answers
Misconceptions should Juanita correct during her meeting with Bill are - The misconception that a low stock price indicates a bad investment, The misconception that diversification is unnecessary, The misconception that investing in individual stocks is the only way to invest.
1. The misconception that a low stock price indicates a bad investment: Bill seems to believe that because the company's stock price is low, it must be a bad investment. However, stock price alone does not indicate the quality of an investment. There could be many factors affecting the stock price, such as market conditions or industry trends. Juanita should explain to Bill that it is important to look beyond the stock price and evaluate the company's financials and fundamentals before making an investment decision.
2. The misconception that diversification is unnecessary: Bill seems to believe that investing in only a few companies is sufficient and diversification is unnecessary. However, investing in only a few companies can expose an investor to significant unsystematic risk, which can be mitigated by diversification. Juanita should explain to Bill the benefits of diversification, including reducing risk and potentially increasing returns.
3. The misconception that investing in individual stocks is the only way to invest: Bill seems to believe that investing in individual stocks is the only way to invest. However, there are many other investment options available, such as mutual funds, exchange-traded funds (ETFs), and index funds. Juanita should explain to Bill the different investment options available and help him identify which option is best suited to his investment goals and risk tolerance.
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Shared negative feelings in a group can positively influence task performance when they stem from ________. However, shared negative feelings can hinder performance in a group when they stem from ________.
Answers
Shared negative feelings in a group can positively influence task performance when they stem from social category diversity. However, shared negative feelings can hinder performance in a group when they stem from informational diversity. Thus the correct option is B.
What is a group?A group is referred to as a collection of poele come together to form a relationship or connection with each other. These groups mainly form to perform collaborative activities to achieve something.
Shared feelings can both affect the performance of the team positively and negatively. It helps in information exchange as well as gives rise to conflict as well due to disagreement.
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The complete question is probably
Shared negative feelings in a group can positively influence task performance when they stem from ________.However,shared negative feelings can hinder performance in a group when they stem from ________.
A)perceptual distance; job involvement
B)social category diversity; informational diversity
C)team structure; process shifts
D)a source outside of the team; a source inside the team
In September of 1998, your father purchased a Michael Jordan basketball card for $0.70. At present, the card is a collector’s item that would fetch $1,900 if sold. If your father were to sell this card now, in September of 2020, what would be the annualized percentage return on his investment?
Answers
Answer:
43.24%
Explanation:
The computation of annualized percentage return on his investment is shown below:-
Future value = Present value × (1 + rate of interest ÷ 100)^time period
$1,900 = $0.70 × (1 + r ÷ 100)^22
(1900 ÷ 0.7)^(1 ÷ 22) = (1 + r ÷ 100)
(1 + r ÷ 100) = 1.4324
r = 1.4324 - 1
= 43.24%
we simply applied the above formula.
All yearly government spending is broken up into two categories; Mandatory spending which is required by law and Discretionary spending which is spending that must be approved each year by Congress.
Mandatory spending is spending that is required by current law. Most federal mandatory spending is in the form of safety net and entitlement programs, including the Food Stamp program, Social Security, Medicaid, and Medicare. Safety net programs represent “transfer payments” by which the government redistributes the income of the taxpayers by collecting taxes and providing services for those less fortunate and who do not provide any type of good or service in return. Entitlement expenditures include Medicaid and Social Security in which money that has been collected from taxpayers is then given back to those that contributed once they reach a certain age or meet other requirements. Other forms of mandatory spending include veterans benefits. For example, being a veteran means that you have already provided a service for which you were guaranteed, by law, certain benefits and payments (salary once you served your term/retirement, college benefits once you served your term, health insurance after you served your term, etc.). Because the law requires that these benefits be paid once the military personnel has served their term, these expenditures are mandatory and are automatically included in the US budget each year. The amount included for these expenditures is based on the number of citizens who “qualify” for these payments whether safety net, entitlement, or veteran benefits. Many other mandatory expenditures fall under the US budget. Over half of the entire US budget is mandatory which means that it cannot be changed without a change to the law.
About one-third of federal spending is Discretionary. This means that while this spending is for programs that are considered necessary to the operation of the US, they must be re-approved each year by Congress through a vote. The largest category of Discretionary spending is National Defense which must be approved each year. Other categories of Discretionary spending include education assistance, Interstate transportation programs, national parks, the Justice / Court system, and science, space, and technology research programs.
An appropriation is an Act which congress passes to approve discretionary spending. For example, one category of spending on education may be mandatory but congress may want to increase spending through an appropriation (or a special vote) which places the extra spending under the discretionary piece of the budget. One example of an appropriation that increased mandatory spending in the US annual budget is that of the Veteran’s Choice program. Veteran’s health benefits are required by law (they have served and part of their payment for serving is free health care after they retire). However, to receive their health benefits veterans have historically been required to utilize specific Doctors and hospitals. This is the law and therefore part of the mandatory budget. However, an appropriation was passed in 2019 which added extra funding to allow veterans to visit any Doctor they chose and be treated at any hospital of their choosing. The funding for this change is part of the discretionary budget and had to be approved by congress.
Questions:
1) Name and define the two types of spending that are included in the US budget each year.
2) What does it mean that mandatory spending is spending required by law? Give an example.
3) How much of the US yearly budget is required by law?
4) Who must vote to approve additional (Discretionary) spending each year?
5) What is the largest category of spending that must be voted on each year?
6) What is appropriation? Give an example.
Answers
Answer:
In the decade leading up to the Great Recession, the government kept federal spending below 20% of GDP. It grew no faster than the economy, around 2% to 3% per year. During the recession, spending grew to a record 24.4% of GDP in FY 2009. This increase was due to economic stimulus and two overseas wars.3
Explanation:
At the same time, growth slowed, which reduced tax receipts. Congress worried about the ballooning U.S. debt. No one could agree on how to reduce it. As a result, Congress enacted across-the-board budget cuts, called "sequestration."4 That finally reduced spending to 20.4% of GDP in FY 2015.5
Since then, spending has crept up again despite the sequester. Congress and the president rely on deficit spending to boost economic growth.6 But deficit spending is out of control. It rises each year, even when the economy is doing well.
if a life insurance policy develops cash value faster than a seven pay whole life contract it becomes
Answers
Answer:
modified endowment contract (MEC)
Explanation:
In such a scenario the life insurance policy becomes a modified endowment contract (MEC). This is a tax qualification of all life insurance policies that is activated once that policy's cumulative premiums exceed federal tax law limits, which causes the taxation structure and IRS policy classification of that contract to completely change.
If a life insurance policy develops cash value faster than a seven-pay whole-life contract it becomes more attractive to policyholders as it accumulates funds quicker, providing additional financial benefits.
How can the cash be accessed?Policyholders can access the cash value through loans or withdrawals, offering flexibility and potential for investment opportunities. Faster cash value growth also means earlier potential for policyholders to benefit from dividends or other investment returns.
However, it's crucial to consider the trade-offs, such as higher premiums or reduced death benefits. Policyholders should review their specific needs, risk tolerance, and long-term objectives when choosing a life insurance policy. Consulting a financial advisor is recommended to make informed decisions about life insurance options.
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The accounting treatment of owner-occupied properties and that of investment properties is prescribed by IAS 16: Property, Plant and Equipment and IAS 40: Investment Property respectively.
Required:
Define property, plant and equipment under IAS 16 and explain why its accounting treatment is different from that of investment property.
Explain how the treatment of owner-occupied property carried under the revaluation model differs from an investment property carried under the fair value model.
Answers
A property, plant, or piece of equipment must be depreciated separately for each component that has a cost that is significant relative to the total cost of the item.
How is property, plant, and equipment measured?Property, plant, and equipment are initially valued at their cost, then revalued or measured using a cost model. Finally, they are depreciated so that the depreciable amount is distributed systematically over the course of their useful lives.
Property, plant, and equipment are tangible items that are held for use in the manufacture or provision of goods or services, for rental to third parties, or for administrative needs, and that is anticipated to be used over a prolonged period of time.
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what is the financial definition for bond? write in your own words.
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Answer:
Bond
Explanation:
It would be like a loan given to a place, government, company, etc. that pays the people (investors) pay a rate of return over a specific timeframe.
If Old-Fashioned Toys' revenues are less than its expenses during the accounting
period, then the
A. business will incur a loss.
B. owner's withdrawals increase owner's equity.
C. net income causes liabilities to decrease.
D. owner's withdrawals decrease net income.
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Answer:
A
Explanation:
Business will incur a loss because in order to make a profit, revenue must be greater than expenses.
Universal Claims Processors processes insurance claims for large national
insurance companies. Most claim processing is done by a large pool of
computer operators, some of whom are permanent and some of whom are
temporary. A permanent operator can process 16 claims per day, whereas a
temporary operator can process 12 per day, and on average the company
processes at least 450 claims each day. The company has 40 computer
workstations. A permanent operator generates about 0.5 claim with errors each
day, whereas a temporary operator average about 1.4 defective claims per day.
The company wants to limit claims with errors to 25 per day. A permanent
operator is paid $64 per day, and a temporary operator is paid $42 per day.
The company wants to determine the number of permanent and temporary
operators to hire to minimise costs.
a) Formulate a linear programming model for this problem.
b) Solve this model by using graphical analysis.
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The optimal solution is to hire 22 permanent operators and 19 temporary operators, with a total cost of $2272.50.
a) Formulating the linear programming model:
Let x represent the number of full-time employees and y represent the number of temporary employees to be hired.
The objective function is to minimize the cost of hiring operators, which is given by:
Cost = 64x + 42y
The constraints are:
The total number of claims processed per day cannot be less than 450:
16x + 12y ≥ 450
The total number of defective claims per day cannot be more than 25:
0.5x + 1.4y ≤ 25
The number of workstations available is limited to 40:
x + y ≤ 40
The number of operators cannot be negative:
x ≥ 0, y ≥ 0
Following are some ways to express the linear programming model:
Minimize Cost = 64x + 42y
Subject to:
16x + 12y ≥ 450
0.5x + 1.4y ≤ 25
x + y ≤ 40
x ≥ 0, y ≥ 0
b) Solving the model using graphical analysis:
We can graph the constraints to find the feasible region and then use the corner-point method to find the optimal solution.
First, we graph the constraint 16x + 12y ≥ 450:
12y ≥ -16x + 450
y ≥ (-4/3)x + 37.5
Next, we graph the constraint 0.5x + 1.4y ≤ 25:
1.4y ≤ -0.5x + 25
y ≤ (-5/14)x + 25/1.4
y ≤ (-5/14)x + 17.86
Finally, we graph the constraint x + y ≤ 40:
y ≤ -x + 40
Combining these three constraints, we get the following feasible region:
16x + 12y = 450
y ≤ (-4/3)x + 37.5
y ≤ (-5/14)x + 17.86
y ≤ -x + 40
We now evaluate the objective function at the corner points of the feasible region to find the optimal solution.
The corner points are:
(0, 25/1.4) = (0, 17.86)
(0, 37.5)
(21.875, 18.75)
(27.27, 12.73)
(28.125, 11.25)
When we assess the objective function at these intervals, we obtain:
(0, 17.86): Cost = 42y = 42(17.86) = 750.12
(0, 37.5): Cost = 42y = 42(37.5) = 1575
(21.875, 18.75): Cost = 64x + 42y = 64(21.875) + 42(18.75) = 2272.5
(27.27, 12.73): Cost = 64x + 42y = 64(27.27) + 42(12.73) = 2536.08
(28.125, 11.25): Cost = 64x + 42y = 64(28.125) + 42(11.25) = 2587.5
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What's a good way to define customer service from the customers' perspective
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Answer: Good customer service typically means providing timely, attentive, upbeat service to a customer, and making sure their needs are met in a manner that reflects positively on the company or business. So the company can keep that customer coming back and back again for more of that product.
Meteor Co. purchased merchandise on March 4, 2021, at a price of $31,000, subject to credit terms of 3/10, n/30. Meteor uses the net method for recording purchases and uses a periodic inventory system. Required: 1. Prepare the journal entry to record the purchase. 2. & 3. Prepare the journal entries to record the appropriate payment if the entire invoice is paid on March 11, 2021 and April 2, 2021.
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Answer:
1.
Dr Purchases 30,070
Cr Accounts payable 30,070
2.
Dr Accounts payable 30,070
Cr Cash 30,070
3.
Dr Accounts payable 30,070
Dr Interest expense 930
Cr Cash 30,000
Explanation:
Meteor Co. Journal entry
1.
Dr Purchases 30,070
($31,000 x .97)
Cr Accounts payable 30,070
2.
Dr Accounts payable 30,070
Cr Cash 30,070
3.
Dr Accounts payable 30,070
Dr Interest expense 930
(31,000-30,070)
Cr Cash 30,000
Since the company purchased merchandise at a price of $31,000 in which it was been subject to credit terms of 3/10 that means 100%-3% credit term will give us 97% credit term ×$31,000 which enabled us to arrived at 30,070.