Answer:Christopher Columbus is credited with discovering the Americas in 1492.
Explanation:
Five hundred years before Columbus, a daring band of Vikings led by Leif Eriksson set foot in North America and established a settlement. And long before that, some scholars say, the Americas seem to have been visited by seafaring travelers from China, and possibly by visitors from Africa and even Ice Age Europ
Answer:
Answer:Christopher Columbus is credited with discovering the Americas in 1492.
Explanation:
. Write short note on any three (3) of the following a. Programme decision b. Non-Programme decision c. Decision matrix
Programme decision: A program decision is a decision that affects or is affected by a program, and may be a decision to implement, modify, or terminate a program.
Non-programme decision: A non-program decision is a decision that is not related to a program, and may include decisions related to policies, procedures, operations, staffing, and resources.
Decision matrix: A decision matrix is a tool that is used to evaluate and prioritize options based on a set of criteria.
Programme decision: A program decision is a decision that affects or is affected by a program, and may be a decision to implement, modify, or terminate a program. These decisions are often made at the strategic level, and have a significant impact on the organization's mission, goals, and objectives. Non-programme decision: A non-program decision is a decision that is not related to a program, and may include decisions related to policies, procedures, operations, staffing, and resources. These decisions are often made at the operational level, and have a direct impact on the day-to-day operations of the organization. Decision matrix: A decision matrix is a tool that is used to evaluate and prioritize options based on a set of criteria. The matrix provides a visual representation of the decision-making process, and can be used to compare options based on their relative strengths and weaknesses. The decision matrix can be used to facilitate group decision-making, and can help to ensure that decisions are based on objective criteria rather than personal biases or preferences.For more such questions on terminate
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Once her teams goals were set Alyssa asked each team member to come up with a(n)____ to reach her goals.
Once her team's goals were set Alyssa asked each team member to come up with a(n) action plan to reach her goals.
What is an Action Plan?This refers to the document that shows the list of steps that should be taken by a person in order to achieve or actualize their goals in a methodical manner.
Hence, we can see that based on the fact that the team goals have been set, Alyssa asked her team to form an action plan which was to help them achieve her goals and shows the list of actions and steps to be taken.
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A joint production process at Berry Lane Farm results in two products, blackberry syrup and blackberry jam. The following cost and activity data relate to these two products: Blackberry syrup Blackberry jam Joint costs allocated $10,000 $12,000 Number of units produced from joint process Selling price at splitoff point $1.75 Selling price after processing further $2.00 Cost of processing further Blackberry syrup can be sold asis (at the splitoff point) for per unit, or it can be processed further into a specialty blackberry juice and then sold for per unit. If blackberry syrup is processed further into the specialty blackberry juice, what would be the overall effect on operating income?
Answer: C. $ 2,750 net increase in operating income
Explanation:
Income if Blackberry syrup is sold as is;
= Sales price * No. of units
= 2.90 * 1,900
= $5,510
Income if Blackberry Syrup is processed further;
= (Sales price * No. of units) - Processing costs
= ( 5.4 * 1,900) - 2,000
= 10,260 - 2,000
= $8,260
Difference;
= 8,260 - 5,510
= $2,750
if the pictures are not the same size when they are selected from a file
Heather sells land adjusted basis, $75,000; fair market value $95,000 partnership pays her only $50,000 for the land. to a partnership in which she contro s an 80% capita interest. The a. Heather's realized loss cannot be recognized. Feedback Check My Work Certain transactions between a partner and the partnership are treated as if the partner were an outsider, dealing with the partnership at arm's length.Loan transactions, rental payments, and sales of property between the partner and the partnership are generally treated in this manner. b. The partnership later sells the land to a third party for $80,000. The partnership has a realized gain of and a recognized gain of on its sale of the land.
Heather gains Loss=\(25000\)
On the sale of the land, the partnership had a realized gain of and a recognized gain of profit =\(30000\)
Loss =C.P. – S.P.
=\($50,000 -$75,000=25000\)
profit =SP-CP
\(=$80,000-$50,000=30000\) One of a company's financial statements, an income statement or profit and loss account also known as a profit and loss statement (P&L), revenue statement, statement of financial performance, earnings statement, statement of earnings, operating statement, or statement of operations, lists the company's revenues and expenses for a specific time period. It describes the process through which revenues are converted into net income or net profit. By examining the income statement, managers and investors can establish whether a company made a profit or suffered a loss during the reporting period. An income statement illustrates a time period . In comparison, the balance sheet shows a single transaction.
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Advise business on the role of intermediaries in the distribution process.
Intermediaries, in business and marketing, are those that act as a middleman between the producer and the consumer. The role of intermediaries in the distribution process of goods and services is to ensure that products and services are moved from the producer to the consumers.
There are several types of intermediaries in the distribution process, including wholesalers, retailers, agents, and brokers. They play a crucial role in the distribution process in the following ways:
Assist in Sorting and Selection: Intermediaries help producers to sort and select their products, which saves time and money for producers.Assist in Breaking Bulk: Intermediaries buy goods in large quantities from producers and then break them into smaller quantities. This makes it possible for producers to sell their products in smaller quantities, making it possible for consumers to afford them.Helps in Transporting Goods: Intermediaries help in transporting products from producers to consumers by offering transportation services at lower costs. They also assist in the warehousing of goods, which helps in the storage and protection of goods.Assist in Financing: Intermediaries play an important role in financing. They buy goods from producers, hold them, and then sell them to consumers. This helps to reduce the risk of loss for producers by providing cash up front for goods sold. They also offer credit facilities to consumers, which makes it possible for them to buy goods without having to pay cash upfront.Help in Providing Information: Intermediaries help to provide information about products and services to consumers, making it easier for them to make informed decisions. They also help to provide feedback to producers about the quality of their products and services.For more such questions on marketing
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Say you own an asset that had a total return last year of 17 percent. Assume the inflation rate last year was 3.6 percent. What was your real return?
The Fisher equation, which shows the exact relationship between nominal interest rates, real interest rates, and inflation, is:
(1 + R) = (1 + r)(1 + h)
r = [(1 + .17) / (1 + .036)] - 1
r = .12934, or 12.93%
An increase in the average price level of an economy over time is referred to as inflation. Money loses value as a result of inflation. Consumer price index (CPI) and producer price index are the two most used inflation indicators (PPI). The consumer price index tracks changes in the price of a typical market basket bought by an urban family each month, provided the same products are bought. When a basket of commodities costs more, inflation has occurred. The cost increase of the basket as a percentage is equal to the rate of inflation. When the products in the basket are cheaper, there has been deflation. It is critical to remember that some of the items may change in value more rapidly than the general rate of inflation.
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what are the negative impact of strikes as a socio economic issue on businesses
Explanation:
1) delayed productivity
2) makes people engage in illegal business in order to meet their needs
3) it gradually brings the Country Economic ranking down
Which step follows the marketing mix step in the process of marketing management?
ОА
market research
ОВ.
market monitoring
OC marketing mix
OD. product development
OE identifying target markets
Answer:
market monitoring
Explanation:
After the marketing mix step, Implementation, monitoring, and control follows. The strategic marketing process is a continuous effort. Management should always be on the look for places to improve and enhance the plan. Market monitoring assists in pointing out specific opportunities for improvement.
Market monitoring requires the management to keep looking at the set goals and objectives to determine if the marketing process is heading in the right direction.
First National Bank Assets Liabilities and Net Worth US Treasury Bonds $450,000 Net Worth $500,000 Reserves (Cash) $175,000 Checkable Deposits $250,000 Loans $125,000 Second National Bank Assets Liabilities and Net Worth US Treasury Bonds $100,000 Net Worth $250,000 Reserves (Cash) $250,000 Checkable Deposits $100,000 Third National Bank Assets Liabilities and Net Worth US Treasury Bonds $900,000 Net Worth $1,000,000 Reserves (Cash) $350,000 Checkable Deposits $500,000 Loans $250,000
The Required Reserve Ratio is 25% for all banks. Assuming that all the customers that have outstanding loans have used all of those additional funds to invest in new machinery for their businesses (therefore, the amount of Checkable Deposits is the true liability the bank has to its customers), then $_____________ is the resulting change to the loan creating potential of the whole system (these three banks) as a result of Second National Bank customers depositing an additional $400,000 in their Checkable Deposit accounts in new loans.
As a result, the system's overall capacity to create loans increases by $750,000.
what are the assets and liabilities of the First National Bank?For all banks, a 25% reserve ratio is necessary. This means that banks can lend out the remaining 75% of their checkable deposits after holding 25% of them as reserves.
Before Second National Bank's clients added another $400,000 to their checkable deposit accounts, the sum of the three banks' checkable deposits was as follows:
$250k First National Bank
$100,000 Second National Bank
$50000 Third National Bank
There were $850,000 worth of checkable deposits in the system.
Each bank needs to have the following reserves:
First National Bank: 25% times $250 000 is $62,500
Second National Bank: 25% times $100,000 equals $25,000.
Third National Bank: $125,000 x 25% of $500,000
$212,500 in total reserves are needed for the system.
The banks had $637,500 ($850,000 - $212,500) available for loans prior to the additional deposit. The system's total checkable deposits rose to $1,250,000 ($850,000 + $400,000) after customers of Second National Bank added an extra $400,000 to their accounts.
The updated necessary reserves for any bank are:
First National Bank: 25% times $250 000 is $62,500
Second National Bank: $125,000 x 25% of $500,000
Third National Bank: $187,500 ($25% x $750,000)
The system now has to have reserves of $375,000 ($62,500 + $125,000 + $187,500).
As a result, Second National Bank clients depositing an additional $400,000 in new loans in their checkable deposit accounts has the following impact on the system as a whole (these three banks):
$750,000 is equal to $1,250,000 (new checkable deposits) minus $375,000 (new needed reserves) and $125,000 (current Second National Bank reserves).
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Cardinal Company is considering a five-year project that would require a $2,915,000 investment in equipment with a useful life of five years and no salvage value. The company’s discount rate is 16%. The project would provide net operating income in each of five years as follows:
Sales $ 2,863,000
Variable expenses 1,014,000
Contribution margin 1,849,000
Fixed expenses:
Advertising, salaries, and other fixed out-of-pocket costs $ 781,000
Depreciation 583,000
Total fixed expenses 1,364,000
Net operating income $ 485,000
15. Assume a postaudit showed that all estimates (including total sales) were exactly correct except for the variable expense ratio, which actually turned out to be 45%. What was the project’s actual simple rate of return? (Round your answer to 2 decimal places.)
Answer:
The initial investment is $2,915,000. The annual net operating income is $485,000. The project's simple rate of return is the annual net operating income divided by the initial investment.
The variable expense ratio is 45%, which means that the variable expenses are $2,863,000 x 45% = $1,288,350.
The contribution margin is $2,863,000 - $1,288,350 = $1,574,650.
The fixed expenses are $781,000 + $583,000 = $1,364,000.
The net operating income is $1,574,650 - $1,364,000 = $210,650.
The simple rate of return is $210,650 / $2,915,000 = 7.22%.
Therefore, the project's actual simple rate of return is 7.22%.
Amber works as an insurance claims agent in charge of assisting policyholders when an accident has occurred. What task might Amber perform as part of her job?
A. buying and selling stocks for her clients
B. running an analysis of a small business's spendings
C. recording items damaged in a house fire
Answer:
the answer would be B
Explanation:
please tell me if im wrong or right
Answer:
B
Explanation:
Paul’s grocery received 1,000 pounds of onion at $0.11 per pound. On the average, 3% of the onions will spoil before selling. Find the selling price per pound to obtain a makeup rate of 180% based on cost.
The selling price per pound for onions to obtain a makeup rate of 180% based on cost is $2.0350.
What is the selling price per pound for onions?Total Cost = Quantity * Cost per pound
Total Cost = 1,000 pounds * $0.11/pound
Total Cost = $110
Spoilage Quantity = 3% of Quantity
Spoilage Quantity = 3% of 1,000 pounds
Spoilage Quantity = 0.03 * 1,000 pounds
Spoilage Quantity = 30 pounds
Effective Quantity = Quantity - Spoilage Quantity
Effective Quantity = 1,000 pounds - 30 pounds
Effective Quantity = 970 pounds
Makeup Rate = 180%
Selling Price per pound:
= (Total Cost * Makeup Rate) / Effective Quantity
= ($110 * 1.80) / 970 pounds
= $2.03505/pound.
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Bonnie’s Doll Company produces handmade dolls. The standard amount of time spent on each doll is 2.0 hours. The standard cost of labor is $20 per hour. The company planned to make 8,000 dolls during the year but actually used 17,500 hours of labor to make 9,000 dolls. The payroll amounted to $344,750. Prepare a table that shows the standard labor price, the actual labor price, the standard labor hours, and the actual labor hours.
The actual labor price will be $19.70 and the actual labor hours per doll will be 1.94 hours per doll.
Determine the working hours.Standard Actual Labor Cost $20 per hour $19.70 per hour Dolls Planned 8,000 Dolls 9,000 Dolls Labor Hours 2 Hours 1.94 Hours Labor 16,000 hours of use 17,500 hours Payroll $320,000 $344,750 The table shows that the actual labour cost is slightly less than the standard labor cost, which is $20 per hour, at $19.70 per hour. The actual labour hours per doll are slightly less than the standard 2 hours per doll, at 1.94 hours. The company originally intended to produce 8,000 dolls, but ultimately produced 9,000 dolls. Compared to the 16,000 hours that were planned, they actually worked 17,500 hours.
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1
(60 marks)
Question 1
The Advtech Group is a JSE listed company in South Africa. Advtech operates within the
education and recruitment industries in South Africa and the rest of Africa.
JSE 100 is an index on the Johannesburg Stock Exchange, Advtech is a constituent of
JSE 100 its weight in the index is given in table 1 above.
.1 Consider an investor with a portfolio consisting only of Advtech shares. The Treasury bill
rate in 2014 was 3.06% in South Africa. Using dividend yield as (returns). Calculate the
Sharpe ratio for Advtech.
(20 marks)
cabine for an investor whohout Adutech shares on 2 lanuary
Answer:
80 (mark)only answer this
10 principles of economics
The 10 principles of economics were given by Gregory Mankiw.
These principles are:
People face tradeoffs: it means that to get one thing, one has to give up on another thing.The cost of Something is What You Give Up to Get It: it refers to the opportunity cost you incur on doing something else. Rational people think at the margin: considering the marginal cost of the product.People Respond to Incentives Trade Can Make Everyone Better Off: trading helps a country in being self-sufficient and enjoying more goods and services. Markets Are Usually a Good Way to Organize Economic Activity. Governments Can Sometimes Improve Economic Outcomes: Government can intervene to allocate resources efficiently.The Standard of Living Depends on a Country's Production: the standard of living increases as the consumption of goods and services, increases.Prices Rise When the Government Prints Too Much Money: when there's a lot of money flowing the market, it will increase the demand for goods which will increase the cost of goods, ultimately leading to inflation.Society Faces a Short-Run Tradeoff Between Inflation and Unemployment.Learn more about "Principles of economics":
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I need help please .
Answer:
Yes I think it does. News channels can be saying different opinions.
No I do not. People would like to hear the whole story.
Explanation:
Unbanked Partner #1
1. I've had terrible customer service at the banks I've been into, so I don't like them and I
don't trust them. I'm certainly not leaving my money with them,
Being unbanked has become an increasingly common situation for many individuals in recent years. An unbanked person is someone who has no financial account with any institution. Individuals may choose to be unbanked for a variety of reasons, including a lack of trust in banks due to poor customer service or a negative experience.
A person may have experienced a bad encounter with a bank employee and choose to leave the bank and seek other banking options. They may also be unable to maintain a minimum balance in their bank account, and banks may impose fees for accounts that fall below a certain amount. It can be inconvenient to have to travel to a bank to withdraw money, especially if the nearest bank is far away. Additionally, the time spent waiting in line at a bank can be tedious, and it can be difficult to fit into a busy schedule.
There are alternatives to traditional banks that may be more convenient and better suit the needs of unbanked individuals. Credit unions, for example, offer similar services as banks but are often smaller and more focused on serving the community. Mobile banking apps have also become increasingly popular, offering services such as depositing checks and transferring money.
The use of prepaid debit cards is another option that allows for the convenience of a card without the need for a traditional bank account. The unbanked may also benefit from budgeting tools and financial literacy resources, which can help them make informed financial decisions and take control of their finances. Overall, being unbanked does not mean that an individual cannot access financial services or manage their money effectively.
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During the past year, Stacy McGill planted a new vineyard on 150 acres of land that she leases for $30,000 a year. She has asked you as her accountant to assist her in determining the value of her vineyard operation. The vineyard will bear no grapes for the first 5 years (1–5). In the next 5 years (6–10), Stacy estimates that the vines will bear grapes that can be sold for $60,000 each year. For the next 20 years (11–30) she expects the harvest will provide annual revenues of $110,000. But during the last 10 years (31–40) of the vineyard’s life, she estimates that revenues will decline to $80,000 per year. During the first 5 years the annual cost of pruning, fertilizing, and caring for the vineyard is estimated at $9,000; during the years of production, 6–40, these costs will rise to $12,000 per year. The relevant market rate of interest for the entire period is 12%. Assume that all receipts and payments are made at the end of each year.
Based on the various costs that Stacy McGill will incur, and the present value of her revenue, the minimum price that Stacy should accept from Ric Button is $376,595.
What amount should Stacy accept?This should be the net present value of her vineyard over 40 years.
Present value of revenue from 1 - 5 years is $0 because no grapes will be grown in the vineyard.
Present value of revenue from 6 - 10 years;
= 60,000 x 3.14772
= $188,863.20
Present value of revenue from 11 - 30 years
= 110,000 x 6.40475
= $704,522.50
Present value of revenue from 31 to 40 years:
= 80,000 x 1,28146
= $102,516.80
Then find the present value of the expenses:
Present value of expenses from 1 - 5 years:
= 9,000 x 4.21236
= $37,911.28
Present value of expenses from 6 - 40 years:
= 12,000 x 10.83393
= $130,007.16
Present value of lease:
= 30,000 x 15.04629
= $451,388.70
The minimum amount Stacy should sell for is therefore:
= 188,863.20 + 704,522.50 + 102,516.80 - 37,911.28 - 130,007.16 - 451,388.70
= $376,595.
Question is:
Eric Button has offered to buy Stacy’s vineyard business by assuming the 40-year lease. On the basis of the current value of the business, what is the minimum price Stacy should accept?
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Why is it important to learn about finances?
☁️ Answer ☁️
Money Management Is A Learned Skill. Knowledge is power.
"Learning about personal finance gives you the knowledge and understanding to make smart money choices. Thus, you become more in control of your own life and are empowered to do the things that matter most to you. Learning how to manage your money means learning how to become free"
Hope it helps.
Have a nice day noona/hyung.
Pat Jones is a college student who is planning some networking opportunities for the current l semester. Pat wanted to look
professional for these events and felt a new suit would be a real benefit; however, the cost for the first event ended up being $75 which was a strain on the budget. Pat did not want to attend the remaining three events in the same outfit, so a new strategy was developed. Instead of paying for new suits in cash, Pat decided to charge the suits on a credit card, wear them to the events, and then return them the next day for full credit.
1. Do you feel Pat's new strategy is ethical? Why or why not? Could there be any consequences with this strategy?
2. How will this new strategy impact the company/companies where the suits are purchased?
3. What journal entry/entries would the company have to record related to the return of the suit?
Answer:
1. I feel like Pat's new strategy isn't ethical. Pat doesn't pay for the suits; he just buys them and then returns them. Pat benefits, but the store he gets the suits from doesn't. In fact, they are harmed from this transaction because they are unable to have the suit for others to buy while Pat has it. There could be consequences with this strategy. For example, the suit might be damaged, and Pat won't be able to return it. Another problem is that others might find out about Pat's strategy, and they might view them as unprofessional. This is a problem for Pat since the reason Pat wore those suits was to look professional.
2. The stores are harmed from this transaction. They are unable to sell the suits to other buyers. The stores lose potential customers, so the stores lose potential money.
3. The companies should record that Pat had bought the suit only to return it the next day, so that they can act accordingly when Pat or someone else comes back to "buy" a suit.
Explanation:
Wally's Walleyes wants to introduce a new product that has a start-up cost of $7,800. The product has a 2-year life and will provide cash flows of $4,500 in Year 1 and $4,300 in Year 2. The required rate of return is 15 percent. Should the product be introduced? Why or why not?
The calculated NPV is negative, indicating that the present value of expected cash flows does not exceed the start-up cost of the project. In other words, the project is expected to generate a net loss.
To determine whether Wally's Walleyes should introduce the new product, we can calculate the net present value (NPV) of the project. The NPV measures the present value of expected cash flows, taking into account the required rate of return.
To calculate the NPV, we need to discount the cash flows using the required rate of return (15 percent). The formula for calculating NPV is:
NPV = Cash Flow Year 1 / (1 + Required Rate of Return)^1 + Cash Flow Year 2 / (1 + Required Rate of Return)^2 - Start-up Cost
\(NPV = $4,500 / (1 + 0.15)^1 + $4,300 / (1 + 0.15)^2 - $7,800\)
\(NPV = $4,500 / 1.15 + $4,300 / (1.15)^2 - $7,800\)
NPV = $3,913.04 + $3,537.41 - $7,800
NPV = -$350.55
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The common stock of RMW Inc. is selling at $88 a share. It just paid a dividend of $4. Investors expect a return of 15 percent on their investment in RMW Inc. From this information, what is the expected growth rate of future dividends?
Select one:
a. 9%
b. 10%
c. 11.5%
d. 12%
Answer:
12%
Explanation:
R=D1/P0+g
15 =4/88+g
15 =0.0454+g
15/15=0.0454/15 +g
g=0.3026
.15-0.03=.12
On march 1 mike joined christmas Club His bank automatically deduct a $210 from his cheaser account of the end of each month, and deposit it into his christmas Club account is when will earn 0.0525 animit interst The account comes to term on December 1. Total interest earned in account
Mike will have a total of $2100 in his Christmas Club as his bank deduct $210 a month from March till December. Hence he may get $110.25 in interest if the interest rate is 5.25% on December 1.
Describe the Christmas Club.An account specifically intended for holiday spending is a Christmas club account. It typically only lasts for a year or less. A savings account of this type, often known as a Christmas club or holiday club account, is one in which regular deposits are made by customers all year long. In order to pay for holiday shopping and other expenses, such as travel, the accrued savings are then withdrawn just before the holiday season.
Regular direct transfers from your paycheck may be permitted by the account in Christmas club, and those funds would be preserved and transferred to them in time for the holiday buying season. Based on the balance in the account, the yearly percentage yield will fluctuate between 0.05% and 5.00%.
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The complete question is:
On March 1 Mike joined Christmas Club His bank automatically deduct a $210 from his Chaser account of the end of each month, and deposit it into his Christmas Club account. What will he earn at 5.25% APR simple interest for the year, as the account comes to term on December 1.
The highest point of construction where rafters meet to form the roof is known as
the ridge board
the gable
the truss
the hip
I started my career at 30. I want to be able to retire at 58. I do not have any money to put away today, but I can put away $1,000 a month at 5% How much
will I have at retirement?
After 28 years of consistent monthly contributions at a 5% annual rate of return, your retirement account would have grown to approximately $817,000.
How to solve
Assuming you have 28 years until retirement and can consistently save $1,000 per month at a 5% annual rate of return, you would have approximately $817,000 at retirement.
Here's the breakdown of the calculation:
Monthly contribution: $1,000
Annual rate of return: 5%
Time until retirement: 28 years
Using a compound interest calculator, the future value of your retirement account can be calculated as follows:
Enter $1,000 as the initial amount and $1,000 as the monthly contribution.
Enter 5% as the annual interest rate.
Enter 28 years as the time until retirement.
After 28 years of consistent monthly contributions at a 5% annual rate of return, your retirement account would have grown to approximately $817,000.
It's important to note that this calculation assumes a consistent monthly contribution and a constant rate of return
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If you have many competing financial goals, what should you do to help yourself focus on the most important ones?
A.
Get more unearned income.
B.
Prioritize and make a budget.
C.
Open a checking account.
D.
Diversify your investments.
Answer:
B.
Prioritize and make a budget.
Mo’yur lawn landscaping worksheet
Answer:
Company Chart of AccountsAssets100 Cash110 Accounts Receivable120 Inventory125 Supplies128 Prepaid Insurance129 Prepaid Rent130 Computers & Software132 Accumulated Depreciation -Computers & Software136 Company Vehicles137 Accumulated Depreciation - Vehicles138 Office Building139 Accumulated Depreciation - Office Building140 Land150 Intangible Assets (Patents, Copyrights, etc.)Liabilities200 Accounts Payable210 Wages Payable220 Taxes Payable230 Short-term Loan240 Unearned Revenue220 Long-term LoanOwner's Equity300 Owner's Capital Contribution310 Owner's Draws320 Retained EarningsRevenue400 Merchandise Sales410 Fees Earned420 Other RevenueExpenses500 Wages Expense510 Rent Expense520 Utilities Expense530 Office Supplies Expense540 Depreciation Expense550 Meals & Entertainment Expense560 Maintenance & Repair Expense570 Postage Expense580 Printing Expense590 Miscellaneous Expense
According to Modigliani and Miller capital structure theory: Group of answer choices the cost of equity capital increases as a firm take on more debt financing. the value of a levered firm decreases relative to the value of an unlevered firm as corporate tax rates increase. the value of the firm is independent of capital structure in a world with perfect capital markets and corporate taxes. firms should employ as close to 100% debt financing as possible in a world with perfect capital markets and corporate taxes only. firms should employ 100% equity financing in a world with perfect capital markets and no taxes
Answer:
the value of the firm is independent of capital structure in a world with perfect capital markets and corporate taxes.
Explanation:
The Modigliani-Miller theorem refers to a theory where the capital structure does not have any impact on it. It is totally independent
So as per the given options, third option is correct as the capital structure i.e. combination of the equity and the debt should have no impact under this theory
Therefore the third option is correct
Pronghorn Company has decided to expand its operations. The bookkeeper recently completed the following balance sheet in order to obtain additional funds for expansion. PRONGHORN COMPANY BALANCE SHEET FOR THE YEAR ENDED 2020 Current assets Cash $241,500 Accounts receivable (net) 351,500 Inventory (lower-of-average-cost-or-market) 412,500 Equity investments (marketable)-at cost (fair value $131,500) 151,500 Property, plant, and equipment Buildings (net) 581,500 Equipment (net) 171,500 Land held for future use 186,500 Intangible assets Goodwill 91,500 Cash surrender value of life insurance 101,500 Prepaid expenses 23,500 Current liabilities Accounts payable 146,500 Notes payable (due next year) 136,500 Pension obligation 93,500 Rent payable 60,500 Premium on bonds payable 64,500 Long-term liabilities Bonds payable 511,500 Stockholders’ equity Common stock, $1.00 par, authorized 400,000 shares, issued 301,500 301,500 Additional paid-in capital 171,500 Retained earnings ?