Answer:
a. Prepare the journal entries to record the restricted stock on January 1, 2014 (the date of grant), and December 31, 2015
January 1, 2014, restricted shares are issued (market price $50 per stock)
Dr Unearned compensation 565,000
Cr Common stock 113,000
Cr Additional paid in capital (stock options) 452,000
December 31, 2015, two years of vesting period have passed
Dr Stock based compensation expense 113,000
Cr Unearned compensation 113,000
b. On July 25, 2018, Tokar leaves the company. Prepare the journal entry to account for this forfeiture.
July 25, stock options are forfeited
Dr Unearned compensation 452,000
Cr Stock based compensation expense 452,000
Explanation:
total stock compensation 11,300
vesting period 5 years = 11,300 / 5 = 2,260 stocks
stock based compensation is recorded using the market price on the date of the grant (January 1, 2014) which = $565,000 / 11,300 = $50 per stock
nothing really happens to the company when the stock options are granted, because unearned compensation is a contra equity account that reduces any increase in equity resulting from the stock options.
January 1, 2014, restricted shares are issued (market price $50 per stock)
Dr Unearned compensation 565,000
Cr Common stock 113,000
Cr Additional paid in capital (stock options) 452,000
The company starts recording expenses as the vesting period is accrued.
December 31, 2014, one year of vesting period has passed
Dr Stock based compensation expense 113,000
Cr Unearned compensation 113,000
December 31, 2015, two years of vesting period have passed
Dr Stock based compensation expense 113,000
Cr Unearned compensation 113,000
December 31, 2016, three years of vesting period have passed
Dr Stock based compensation expense 113,000
Cr Unearned compensation 113,000
December 31, 2017, four years of vesting period have passed
Dr Stock based compensation expense 113,000
Cr Unearned compensation 113,000
if known, in California which of the following must be disclosed on the real estate transfer disclosure statement
If known, only (option 1) Environmental hazards must be disclosed on the real estate Transfer Disclosure Statement.
The seller is required to disclose any known environmental hazards, including lead-based paint, asbestos, radon, formaldehyde, underground storage tanks, and contaminated soil or water. The seller must disclose any known environmental hazards, including lead-based paint, asbestos, radon, formaldehyde, underground storage tanks, and contaminated soil or water. This disclosure is required to protect buyers from potential health hazards and to ensure they are aware of any risks associated with the property. Environmental hazards must be disclosed on the real estate Transfer Disclosure Statement if known, because they can pose a serious risk to the health and safety of the property's occupants.
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The complete question is:
If known, which of the following must be disclosed on the real estate Transfer Disclosure Statement? 1. Health Problems 2. Environmental hazards 3. Phone issues 4. Network issues.
what shapes would you generally expect each of the following cost curves to have: fixed costs, variable costs, marginal costs, average total costs, and average variable costs?
Shapes would i generally expect each of the following cost curves to have
fixed cost: straight horizontal line (it's the y-intercept)variable costs: U-shaped (?)marginal costs: J-shapedaverage total costs: U-shapedaverage variable costs: U-shaped (below ATC)A cost curves is a graph of the charges of manufacturing as a feature of total quantity produced. In a loose market economy, productively efficient companies optimize their manufacturing manner by minimizing fee consistent with each possible stage of manufacturing, and the end result is a value curve.
The total fee curves (TC and ATC curves) are tormented by a fee change for any component of manufacturing. We make no distinction among constant and variable expenses in the long run as long as the longer term average general value curve (LRAC) is declining, then inner economies of scale are being exploited.
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difference between Kenyan and china culture
Chinese culture is one of the world's oldest cultures, tracing back to thousands of years ago. Important components of Chinese culture includes ceramics, architecture, music, literature, martial arts, cuisine, visual arts, philosophy and religion
1. Some businesspeople believe that elimination agents and wholesalers reduce their operating expenses. Discuss the opportunity costs associated with eliminating intermediaries.
1. While eliminating intermediaries may result in reduced operating expenses, businesses need to weigh these savings against the associated opportunity costs. These costs may include the loss of expertise and value-added services, additional responsibilities and expenses, and reduced customer access to products.
Eliminating intermediaries such as elimination agents and wholesalers reduce operating expenses, but it also has associated opportunity costs that businesses need to consider. One of the primary costs is the loss of the expertise and value-added services that intermediaries offer to businesses and customers. Eliminating intermediaries may result in businesses taking on additional responsibilities and expenses such as marketing, distribution, and logistics.
This may result in the need for additional staff and resources to ensure that products reach customers on time. Furthermore, eliminating intermediaries may also result in reduced customer access to products, as intermediaries are often responsible for finding new markets and customer segments. In this case, businesses may need to invest additional resources to market and promote their products to reach new customers.
In conclusion, while eliminating intermediaries may result in reduced operating expenses, businesses need to weigh these savings against the associated opportunity costs. These costs may include the loss of expertise and value-added services, additional responsibilities and expenses, and reduced customer access to products.
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a. Suppose we have a three year fixed-payment loan with $300 payments made at the end of each year. Given a market interest rate of 6 percent, how much was initially borrowed?
The amount that has been initially borrowed is $802, having an annuity payment of $300 at the end of each year and a market interest rate of 6%.
What is annuity?An annuity is a series of payments made at regular intervals in the financial world. Regular savings account deposits, monthly home mortgage payments, monthly insurance payments, and pension payments are all examples of annuities. The frequency of payment dates distinguishes annuities.
The formula for calculating the present value of an annuity which is actually the sum borrowed is :
V= A/i {1-(1+i)^-n} , where,
A= fixed payment of annuity,
i= market rate of interest, and
n = number of years
V= 300/0.06{1-(1+0.06)^-3}
= 300/0.06{1-0.8396}
= 300/0.06 × 0.1604
= $802
Therefore, $802 was initially borrowed.
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operations management course concept
The operations management course concept refers to the systematic design, direction, and control of the processes that transform inputs such as raw materials, energy, and labor into outputs such as goods and services that satisfy customer needs.
This management process includes inventory management, scheduling, supply chain management, quality control, and more. The goal of operations management is to create efficient processes that maximize productivity while minimizing costs.
Students taking an operations management course learn about these concepts and how to apply them to real-world situations in various industries. They also study topics like process design, project management, lean principles, and decision-making models.
The course is usually offered as a part of business administration, engineering, or industrial technology programs. Graduates of the course may go on to careers as operations managers, logistics managers, supply chain analysts, process improvement specialists, or manufacturing engineers, depending on their areas of focus and interests.
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Western Electric has 35,000 ordinary shares outstanding at a price per share of $47 and a rate of return of 13.5%. The firm has 5,000 preference shares paying 7% dividend outstanding at a price of $58 a share. The preferred share has a par value of $100. The outstanding bond has a total face value of $450,000 and currently sells for 102% of face. The pre-tax yield-to-maturity on the bond is 8.49%. Required: a) Calculate the total market value of the firm. b) Calculate the capital structure of the firm. c) Calculate the firm's weighted average cost of capital if the tax rate is 30%, assuming a classical tax system.
Answer:
a) Total market value of the firm = $2,394,000
b) The capital structure of the firm:
Weight of ordinary shares = 69%
Weight of preference shares = 12%
Weight of bond = 19%
c) The firm's weighted average cost of capital (WACC) = 11.28%
Explanation:
a) Calculate the total market value of the firm.
Total market value of the firm is the addition market values of ordinary shares, preference shares and bond. This can be calculated as follows:
Market value of ordinary shares = $47 * 35,000 = $1,645,000
Market value of preference shares = $58 * 5,000 = $290,000
Market value of bond = $450,000 * 102% = $459,000
Therefore, we have:
Total market value of the firm = $1,645,000 + $290,000 + $459,000 = $2,394,000
b) Calculate the capital structure of the firm
Capital structure of the firm is the weight of the market value of each of capital or finance sources in the total market value. This can be calculated as follows:
Wo = Weight of ordinary shares = $1,645,000 / $2,394,000 = 0.69, or 69%
Wp = Weight of preference shares = $290,000 / $2,394,000 = 0.12, or 12%
Wb = Weight of bond = $459,000 / $2,394,000 = 0.19, or 19%
c) Calculate the firm's weighted average cost of capital if the tax rate is 30%, assuming a classical tax system.
The weighted average cost of capital (WACC) which is also referred to as firm's cost of capital refers to the rate the firm is expected to pay on average to all holders of its security used in financing its assets. The WACC can be estimated as follows:
WACC = (Ro * Wo) + (Rp * Wp) + (Yb * Wb * (1 - T)) .................... (1)
Whrere,
Ro = Rate of return of ordinary shares = 13.5%
Rp = Rate of return on preference shares = 7%
Yb = Pre-tax yield-to-maturity on the bond = 8.49%
T = Tax rate = 30%
Substituting the values above and the relevant values from part (b) above into equation (1), we have:
WAAC = (13.5% * 69%) + (7% * 12%) + (8.49% * 19% * (1 - 30%)) = 11.28%
Search the library and the Internet for information pertaining to the ethical violation made by an organization, past or present, and be sure not to identify the organization. See if this incident has occurred in other organizations; give 2 examples and their outcomes. (OWN WORDS)
Legitimizations that are Substantial for the Association's Activities Business ethics issues length a great many subjects inside an association's ethical rules. Straightforward moral issues in business include empowering conduct that depends on genuineness and trust, however more complicated issues include obliging variety, humane navigation, consistence, and administration that is reliable with the association's fundamental standards.
Business ethics, typically alluded to as corporate morals, is a subset of applied morals or expert morals that resolves moral or moral issues that might come up in the work environment.
It is critical to the activities of the two individuals and whole organizations and is relevant to all features of business behavior.
People, authoritative declarations, or the overall set of laws all add genuineness to these morals.
These guidelines, goals, moral convictions, and untrustworthy conduct act as an organization' core values.
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compare and contract between Sear's STORE and Aldi's STORE
Flexible Budget for Assembly Department Steelcase Inc. (SCS) is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it assembles filing cabinets in an Assembly Department. Assume the following information for the Assembly Department: Direct labor per filing cabinet 18 minutes Supervisor salaries $250,000 per month Depreciation $18,500 per month Direct labor rate $28 per hour Prepare a flexible budget for 70,000, 80,000, and 90,000 filing cabinets for the month ending February 28 in the Assembly Department, similar to Exhibit 5.
Answer:
Results are below.
Explanation:
Giving the following formula:
Direct labor per filing cabinet= 18/60= 0.3
Direct labor rate $28 per hour
The supervisor salary and depreciation will remain constant, we will not take them into account.
70,000 units:
Direct labor hours= (0.3*70,000)= 21,000
Direct labor cost= 21,000*28= $588,000
80,000 units:
Direct labor hours= (0.3*80,000)= 24,000
Direct labor cost= 24,000*28= $672,000
90,000 units:
Direct labor hours= (0.3*90,000)= 27,000
Direct labor cost= 27,000*28= $756,000
If on November 26,2017, The Dow Jones industrial average closed at 12,743.40, which was down 237.44 that day. what was the return (in percent) of stock market that day?
Answer:
-1.83%
Explanation:
The closing price was 12,743.40, which was down by .
it means that the opening price was
$12,743.40 + $237.44 = $12,980.44.
The percentage return will be the
return/ original price x 100
=- - 237.44/12,980.44 x 100
= - 0.018291574 x 100
= - 1.83%
To find the future value annuity factor from a time value of money table, read down the rows to find T = 10 and across the columns to find 10 percent. The factor where that column and row intersect is _____.
Read further down all rows to find T = 10 and traverse the columns to find 10% to get the future value annuity component from a time value table. That column and row's intersection point has a factor of 15.937.
Which four sorts of money are there?According to economists, there are four basic sorts of money: commercial money, trustee money, fiat money, and commodity money. Commodity money is money that derives its worth from the commodities from which it is created.
What does money serve as a tool for?In conclusion, despite the fact that money has existed in a variety of forms throughout history, it has always served the same three purposes: as a store of value, an account unit and a medium of exchange.
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How does a business identify how much profit was made on a job?
Answer:
Making a profit is one of the most important objectives of a business. You can calculate your business profit by subtracting your total expenses from your total revenue. To identify what the revenues and expenses are, start by choosing the time period you want to study.
Explanation:
Hope this helps u
Crown me as brainliest:)
The letters in acronymic abbreviations must be
Answer:
In a correct order.
Explanation:
Which of the following things can help you get a lower interest rate when you receive a loan? A. A low credit score B. A history of defaulting C. Using all of your available credit D. Collateral
Answer:
Collateral
Explanation:
The thing that can help to get a lower interest rate when you receive a loan is Collateral. Thus, option D is correct.
What is Collateral?A collateral is a valuable asset that is committed to obtaining a loan. Lenders' risk is reduced by collateral. If a borrower fails on a loan, the lender can seize and sell the collateral to recuperate its losses. Mortgages and automobile loans are two examples of collateralized lending.
A customer that provides collateral is considered a low-risk customer. The lender keeps the asset until the debt is fully repaid. If the borrower fails to repay, the lender may sell the collateral to recoup his funds. Collateral decreases the lender's risk of losing money.
The loan value is always more than the collateral value. Because the transaction is low-risk, the lender may afford to provide low-interest rates. Collateral is anything that can assist you to acquire a cheaper interest rate on a loan. As a result, option D is correct.
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Which of the following types of contracts does not fall within the statute of frauds? Select one: A. Contracts not performed within six months B. Contracts for the sale of goods totaling more than $500 C. Contracts for one party to pay the debt of another party if the initial party fails to pay D. Promises made in consideration of marriage E. Agreements related to an interest in land
Answer:
Correct Answer:
C. Contracts for one party to pay the debt of another party if the initial party fails to pay
Explanation:
In a business setting which exist between two parties, when there is a renegation of agreement between the parties involved by one person, then there is consequences. In a situation where the renegation of agreement was deliberate, then, fraud is said to have occurred.
Option C does not fall within the statue of fraud.
The type of contract that does not fall within the statute of fraud is when the one part agrees to pay the debt of another party.
The following are the situations where the fraud could have existed:
Contract not performed for six months. The sale of goods is more than $500.The promise is made for marriage. Agreements are to be done for land.Therefore we can conclude that the type of contract that does not fall within the statute of fraud is when the one part agrees to pay the debt of another party.
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Alfred E. Old and Beulah A. Crane, each age 42, married on September 7,2017. Alfred and Beulah will file a joint return for 2019. Alfred's Social Security number is 111-11-1109. Beulah's Social Security number is 123-45-6780, and she adopted "Old" as her married name. They live at 211 Brickstone Drive, Atlanta, GA 30304. Alfred was divorce from Sarah Old in March 2016. Under the divorce agreement, Alfred is to pay Sarah $1,250 per month for the next 10 years or until Sarah's death, whichever occurs first. Alfred pays Sarah $15,000 in 2019. In addition, in January 2019, Alfred pays Sarah $50,000, which is designated as being for her share of the marital property. Also, Alfred is responsible for all prior years' income taxes. Sarah's Social Security number is 123-45-6788. Alfred's salary for 2019 is $150,000. He is an executive working for Cherry.Inc. (Federal I.D. No. 98-7654321). As part of his compensation package, Cherry provides him with group term life insurance equal to twice his annual salary. His employer withheld $24,900 for Federal income taxes and $8,000 for state income taxes. The proper amounts were withheld for FICA taxes. Beulah recently graduated from law school and is employed by Legal Aid Society.Inc. (Federal I.D. No. 11-1111111), as a public defender. She receives salary of $42,000 in 2019. Her employer withheld $7,500 for Federal income taxes and $2,400 for state income taxes. The proper amounts were withheld for FICA taxes. Alfred and Beulah had interest income of $500. They received $1,900 refund on their 2018 state income taxes. They claimed the standard deduction on their 2018 Federal income tax return. Alfred and Beulah pay $4,500 interest and $1,450 property taxes on their personal residence in 2019. Their charitable contributions total $2,400 (all to their church). They paid sales taxes of $1,400, for which they maintain the receipts. Alfred and Beulah have never owned or used any virtual currency, and they do not want to contribute to the Presidential Election Campaign. Compute the Old's net tax payable (or refund due) for 2019. Suggested software: ProConnect Tax Online
To compute the Olds' net tax payable (or refund due) for 2019, we need to gather all the relevant information and calculate their taxable income, apply the appropriate tax rates, deductions, and credits. Since the tax calculation involves various factors and tax laws, it would be best to use tax software such as ProConnect Tax Online or consult with a tax professional. The software will streamline the process and ensure accurate calculations based on the specific tax laws and regulations applicable to the Olds' situation.
Financial management deals with the maintenance and creation of economic value or wealth. Group of answer choices True False
Answer:
The answer for the above question is== (TRUE)..✔️✔️
The comparative balance sheets for Riverbed Company show these changes in noncash current asset accounts: accounts receivable decreased $81,100, prepaid expenses increased $24,700, and inventories increased $43,400.
Decreases in accounts receivables are added back because these represent collections from customers. Increases, however, are deducted because no actual cash was received when sales were recorded.
A balance sheet contains what?An organization's assets, liabilities, and owner equity are listed on a balance sheet as of any given date. A balance sheet is usually created at the conclusion of predetermined periods (e.g., every quarter; annually). Two columns make up a balance sheet. The company's assets are listed in the left-hand column.
What is a balance sheet's primary function?A balance sheet provides you with a momentary glimpse of your company's financial situation. A balance sheet can assist business owners in assessing the financial health of their organization along with an income statement and a cash flow statement.
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Economics question please help :))
Answer:
c 8 bushes of wheat
Explanation:
can someone please do this i already did it but i feel like it’s wrong
The comparison of the following items according to their impact on the value of US dollars is as follows:
Weak dollarWeak dollarWeak dollarStrong dollarStrong dollarStrong dollarStrong dollarStrong dollarStrong dollar.What strengthens a country's currency?Principally, the factors that strengthen a country's currency include:
Interest ratesBalance of tradeForex demand and supplyForeign direct investmentsInflation and growth in the domestic economy.When the exports are more than the imports, the country's currency is strengthened.
Foreign direct investments (FDIs) also strengthen a country's currency.
An import-dependent economy experiences a weak currency while an export-prone economy's currency is relatively stronger than the counterparts.
Thus, internal trade and service activities does not weaken a country's currency, for example, trips and graduation parties, within the United States.
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while there are several conventional approaches used to estimate the market value of real estate, which of the following is typically considered the most reliable approach?
As, sales comparison approach is typically considered the most reliable approach. As in the sales comparison approach, were uses the sales price.
What is Sales?A sale is an agreement between a purchaser and a seller in which the seller interchanges money for the sale of tangible or impalpable products, assets, or services. There are two or more parties involved in a sale.
As, the term sales comparison approaches referred as, the price at which a particular property sells is the price determined by the fundamental interaction of supply and postulation at the time of sale. If supply or demand components shift, prices generally rise or fall.
Therefore, As a result, sales comparison approach were considered as most reliable approach.
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Which of Congress's powers is implied through the necessary and proper
clause?
OA. The power to restrict child labor
O B. The power to negotiate treaties
O C. The power to print money
OD. The power to declare war
Answer:
b the power to negotiate treaties
explain the components of National income
National income is the total value of all goods and services produced within a country's borders, including both goods produced by domestic firms and foreign firms operating within the country. The components of national income include:
1. Wages and salaries: This includes the income earned by employees for their work, including both hourly wages and salaries.
2. Profits: Profits are the income earned by businesses after they have paid all their expenses, including salaries, rent, and other costs.
3. Rent: Rent is the income earned by landlords for the use of their property, such as land or buildings.
4. Interest: Interest is the income earned by lenders for lending money to borrowers, such as banks or other financial institutions.
5. Dividends: Dividends are the income earned by shareholders for their ownership of a company's stock.
6. Indirect taxes: Indirect taxes are taxes that are levied on goods and services, such as sales taxes or value-added taxes.
7. Subsidies: Subsidies are payments made by the government to businesses or individuals to encourage certain activities, such as the production of certain goods or services.
8. Depreciation: Depreciation is the decrease in value of an asset over time, such as a piece of machinery or a building.
Together, these components make up the total national income of a country, and they provide a measure of the overall health and productivity of the economy.
Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of May:
1 Rainier Company Yakima Company
2 Materials inventory, May 1 $100,000.00 $48,200.00
3 Materials inventory, May 31 (a) 50,000.00
4 Materials purchased 950,000.00 710,000.00
5 Cost of direct materials used in production 938,500.00 (a)
6 Direct labor 2,860,000.00 (b)
7 Factory overhead 1,800,000.00 446,000.00
8 Total manufacturing costs incurred May (b) 2,484,200.00
9 Total manufacturing costs 5,998,500.00 2,660,600.00
10 Work in process inventory, May 1 400,000.00 176,400.00
11 Work in process inventory, May 31 382,000.00 (c)
12 Cost of goods manufactured (c) 2,491,500.00
13 Finished goods inventory, May 1 615,000.00 190,000.00
14 Finished goods inventory, May 31 596,500.00 (d)
15 Sales 9,220,000.00 4,550,000.00
16 Cost of goods sold (d) 2,470,000.00
17 Gross profit (e) (e)
18 Operating expenses 1,000,000.00 (f)
19 Net income (f) 1,500,000.00
Required:
a. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.
b. Prepare Yakima Company’s statement of cost of goods manufactured for May. For those boxes in which you must enter subtracted or negative numbers use a minus sign.*
c. Prepare Yakima Company’s income statement for May. Enter all amounts as positive numbers.*
* Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.
Starting Question
a. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.
Letter Rainier Company Yakima Company
a.
b.
c.
d.
e.
f.
Statement of Cost of Goods Manufactured
b. Prepare Yakima Company’s statement of cost of goods manufactured for May. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Yakima Company
Statement of Cost of Goods Manufactured
For the Month Ended May 31
1
2
Direct materials:
3
4
5
6
7
8
9
10
11
Total manufacturing costs
12
13
c. Prepare Yakima Company’s income statement for May. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter all amounts as positive numbers.
Yakima Company
Income Statement
For the Month Ended May 31
1
2
Cost of goods sold:
3
4
5
6
7
8
9
10
Answer:
(a) $190,000
(b) $2,185,000
(c) $3,125,900
(d) $841,090
(e) $561,260
(f) $1,200,000
Explanation:
Rainier and Yakima Company several balances are omitted. These are calculated with reverse calculation. The material inventory at beginning of may is added with the purchases made and then ending inventory is subtracted to identify cost of goods manufactured.
What is the main advantage of being a productive worker?
OA. You can create a lot of products or services quickly.
OB. You are able to work in a field with a high market value.
O C. You are given access to the benefits of worker organizations.
OD. You do not have to follow restrictive regulations.
SUBM
Answer:
There are many advantages of being a productive worker. The first advantage is that you can earn more money. You will be able to earn more money if you are a productive worker because you will have the opportunity to work with companies that pay higher salaries. The second advantage is that it gives you the opportunity to have a better lifestyle, for example, having an apartment or house and buying things for yourself and your family. The third advantage is that it gives you the opportunity to do things on your own time without being punished by your boss or company for not showing up at work on time.
Explanation:
What will most likely cause a lender to deny credit?
OA short credit history with high balances
O Possession of two credit cards
OA small amount of debt owed
OA historic credit score of 300
Answer:
A historic credit score of 300
Explanation:
A credit score is a numeric record that expresses the reliability of a borrower to repay loans. The credit score or credit rating is determined by, among other things, credit history, income level, and the individual's income to debt ratio.
Credit scores range between 300 and 850. 300 is the lowest and the poorest score. A score of 300 indicates that the borrower has a bad history of debt repayment. They are always late on repayments, miss on installments, or have defaulted on loans. Lenders consider such persons as high-risk borrowers and are likely to deny them credit facilities.
2. Who are teachers? Write any two works of teachers.
Answer:
Teacher are those person who teach us and Help us for a future Work
Their two work are:-
1).They teach us
2):- They teach us moral value and norms
When your store manager comes in, you want to relay the information above so
that she can properly take care of your requests. In a clear and concise manner
how would you relay only the important information to her. (Below, write what
you would say to her./
What would be said to the store manager would be:
A delivery of 20 baseball hats has been delivered to my office. I would like you to inform the rest of the workers to put on these hats while they are on duty. While I want you to stack the hats on display for customers to purchase at a price of 20 dollars.What is meant by communication in the work place?This tells us of the ways that messages are relayed in the work environment. It is the clear dissemination of information in the different hierarchies that exist in the organization.
The person that is giving the information in the workplace has to be very clear as they say give out instructions to the people that they are talking to.
Complete question
You are an owner of clothing store and need two boxes of merchandise opened and placed on the shelves. The boxes were delivered yesterday and are in your office, not in the storeroom. One box has 20 baseball hats with the store logos printed on the front. You are excited about the hats and want your employees to wear a hat while they are working; the extra hats you want placed by the cashier on top of the counter. The other box has new t-shirts with the store’s logo. You are also very excited about this item. The logo looks great. These are for sale, and you want them to be stacked on a display table towards the entrance of the store. You want a sale price of $20 marked on these items.
1) When your store manager comes in, you want to relay the information above so that she can properly take care of your requests. In a clear and concise manner how would you relay only the important information to her. (Below, write what you would say to her.)
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Smith, Inc., has the following stockholders’ equity accounts as of January 1, 2021: Preferred stock—$100 par, nonvoting and nonparticipating, 6% cumulative dividend $ 2,250,000 Common stock—$20 par value 4,250,000 Retained earnings 10,250,000 Haried Company purchases all of Smith's common stock on January 1, 2021, for $14,550,000. The preferred stock remains in the hands of outside parties. Any excess acquisition-date fair value will be assigned to franchise contracts with a 40-year remaining life. During 2021, Smith reports earning $700,000 in net income and declares $610,000 in cash dividends. Haried applies the equity method to this investment. What is the noncontrolling interest's share of consolidated net income for this period? What is the balance in the Investment in Smith account as of December 31, 2021? What consolidation entries are needed for 2021?
The specific consolidation entries would depend on the specific details of the transactions and the accounting policies adopted by the companies involved.
To determine the noncontrolling interest's share of consolidated net income for the period and the balance in the Investment in Smith account as of December 31, 2021, we need to calculate the noncontrolling interest's share of net income and the equity method adjustment.
1. Noncontrolling interest's share of consolidated net income for the period:
Net income for Smith, Inc. in 2021 is $700,000. Since Haried Company applies the equity method to its investment, it recognizes its share of Smith's net income as an increase in its Investment in Smith account.
Noncontrolling interest's share of consolidated net income = Net income for Smith, Inc. - Haried Company's share of net income
Net income for Smith, Inc. - Haried Company's share of net income = $700,000 - Haried Company's share of net income
2. Balance in the Investment in Smith account as of December 31, 2021:
The Investment in Smith account represents Haried Company's initial investment in Smith, Inc. and any subsequent adjustments based on the equity method. To calculate the balance in the Investment in Smith account as of December 31, 2021, we need to consider the initial investment, share of net income, dividends, and any equity method adjustments.
Balance in the Investment in Smith account as of December 31, 2021 = Initial investment + Haried Company's share of net income - Dividends +/- Equity method adjustments
3. Consolidation entries for 2021:
Since Haried Company applies the equity method, the consolidation entries for 2021 would involve recording the initial investment, recognizing Haried's share of Smith's net income, and adjusting for any dividends declared by Smith.
The specific consolidation entries would depend on the specific details of the transactions and the accounting policies adopted by the companies involved. Generally, the entries would involve debiting the Investment in Smith account for the initial investment, crediting the equity or investment income account for Haried's share of net income, and debiting the Investment in Smith account for any dividends received.
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