By comparing the opportunity cost of producing wine in the two countries, you can tell that Greece has a comparative advantage in the production of wine and Germany has a comparative advantage in the production of oil.
Suppose that Greece and Germany consider trading wine and oil with each other. Greece can gain from specialization and trade as long as it receives more than 5 barrels of oil for each bottle of wine it exports to Germany. Similarly, Germany can gain from trade as long as it receives more than 1/5 barrel of wine for each barrel of oil it exports to Greece.
Based on your answer to the last question, the terms of trade (that is, price of wine in terms of oil) that would allow both Germany and Greece to gain from trade are: A.12 barrels of oil per bottle of wine, B.2 barrels of oil per bottle of wine, and C.6 barrels of oil per bottle of wine.
Learn more about opportunity cost: https://brainly.com/question/481029
#SPJ11
How can the implementation of Supply Chain Risk Management processes be organised within and across companies?
Supply Chain Risk Management (SCRM), it is "the application of strategies to manage both routine and extraordinary risks along the supply chain based on continual risk assessment with the purpose of minimising vulnerability and maintaining continuity."
The implementation of Supply Chain Risk Management activities within and between businesses can be organised like these:
Thus, through aforementioned ways the implementation of Supply Chain Risk Management processes be organised within and across companies.
To know more on 'Supply Chain Risk Management' :
visit- https://brainly.com/question/28199516
#SPJ1
Prompt What are three ways to increase productivity?
Answer:
Administrar bien tu tiempo...
Definir bien lo que vas a hacer durante el día...
Seleccionar tus prioridades del día...
Answer:
Manage your time well...
Define well what you are going to do during the day...
Select your priorities for the day...
Explanation:
your welcome for the English
Which education and qualifications are most helpful for Revenue and Taxation careers? Check all that apply.
leadership skills
customer-service skills
adaptability and flexibility
integrity
math skills
foreign language skills
knowledge of finance laws
CORRECT ANSWERS:
Customer service skills
Integrity
Math skills
Knowlage of finance
Answer:
Customer service skills
Integrity
Math skills
Knowledge of finance
Explanation:
Answer:
1. Customer service skills 2. Integrity 3. Math skills
4. Knowledge of Finance
Explanation:
I got it right on edg
12. Paid Office Station Co. for part of the debt incurred on April 5, $1,200. 12. Provided services on account, $4,200.
1. Paid Office Station Co. for part of the debt incurred on April 5, $1,200.
Debit: Accounts Payable - Office Station Co.$1,200
Credit: Cash $1,200
2. Provided services on account, $4,200.
Debit: Accounts Receivable $4,200
Credit: Service Revenue $4,200
To pay off the remaining balance owing to Office Station Co., a debit is sent to the accounts payable account. To account for the cash outflow, the Cash account is credited. This journal entry records the settlement of a portion of the debt incurred on April 5 with Office Station Co.
The acknowledgment of revenue for services rendered to a client on the account is represented by this journal entry. To reflect the increase in the amount due by the client, the Accounts Receivable account is debited.
Learn more about Journal entry, here:
https://brainly.com/question/20421012
#SPJ1
The complete question is probably
Write journal entries
12. Paid Office Station Co. for part of the debt incurred on April 5, $1,200. 12. Provided services on account, $4,200.
TRUE/FALSE. designating a third party as a beneficiary in a contract does not indicate whether the beneficiary is intended or incidental.
False. Designating a third party as a beneficiary in a contract typically indicates that the beneficiary is intended. If a contract does not explicitly state that the beneficiary is incidental, then it is likely intended.
What is third party?Third party refers to an individual or organization that is not directly involved in a particular transaction or activity, but has some involvement or interest in it. It is commonly used in reference to legal and business activities, such as contracts, settlements, and transactions. It can also be used to describe a person or organization that provides goods or services to two other parties. For example, a third-party logistics provider is a company that provides warehousing and transportation services to two other businesses. In politics, a third party is any party other than the two major parties in a two-party system. Third-party candidates are often included in political elections to provide more choice to voters, although they rarely succeed in winning electoral office.
To learn more about third party
https://brainly.com/question/28834400
#SPJ4
Which of the following is not the reason for writing a business report
Entertainment is not the reason for writing a business report.
A business is defined as a company or enterprising entity engaged in commercial, industrial, or expert sports. corporations may be for-income entities or non-profit corporations. enterprise types vary from restrained liability groups to sole proprietorships, organizations, and partnerships.
Businesses assist society first thru the distribution of products and services which are vital for survival. furthermore, they create employment possibilities that help individuals within society earn earnings to have the funds for their wishes.
Learn more about business here: https://brainly.com/question/26106218
#SPJ1
TIME REMAINING 56:28 Which of the following is an example of an equity investment? A. A loan B. A company bond C. A government bond D. A company's stock Please select the best answer from the choices provided A B C
An example of an equity investment is D. A company's stock
An equity investment is an investment in the ownership of a company or other entity, where the investor purchases a percentage of the company's shares. By doing so, the investor becomes a part-owner of the company, and as such, they may receive a portion of the company's profits through dividends or by selling their shares at a higher price.
Company stocks are the most common example of an equity investment. When an investor buys stocks, they are buying a portion of the ownership of that company, and therefore they are entitled to a share of the company's profits and assets. The value of a stock can increase or decrease based on the performance of the company and market conditions, making it a potentially high-risk but also high-reward investment. On the other hand, loans, company bonds, and government bonds are examples of debt investments, where the investor lends money to an entity in exchange for a fixed rate of return. Unlike equity investments, debt investments typically have a fixed interest rate and maturity date, and the investor does not own a portion of the company.
In summary, equity investments provide investors with an ownership stake in a company, while debt investments provide a fixed income stream. While equity investments can potentially offer higher returns, they also come with higher risks, and investors should carefully consider their investment objectives and risk tolerance before making any investment decisions.
for more such questions on investment
https://brainly.com/question/29547577
#SPJ11
Which trade scenario is most beneficial for a country?
А.
appreciation of the country's currency, Increase in its imports, and decrease of its exports
B. depreciation of the country's currency, Increase in its imports, and decrease of its exports
C. depreciation of the country's currency, decrease in Its Imports, and increase of its exports
D. appreciation of the country's currency, decrease in Its Imports, and increase of its exports
It should be noted that the trade scenario that is most beneficial for a country is appreciation of the country's currency, decrease in Its Imports, and increase of its exports.
What is a trade?Trade can be regarded as the means of exchange by an organization or country.
When the currency of a a country appreciate, the money will have value, export also boast the currency.
Therefore, option D is correct.
Learn more about currency at;
https://brainly.com/question/9261004
The franchisor generally does NOT provide the franchisee with:
The Franchisor doesn't provide the franchisee with extensive financial help. Hence, the above statement is appropriate.
Who is a Franchisor?Franchisors are one of the most ultra-modern and new ways of marketing strategy which is being done for the business to prosper. Under this system, an owner of a business- that is the Franchisor lets other products by different individuals be sold under the banner of the Franchisor's Company.
The Franchisor in turn give the selling rights of the product under the Franchisor's brand name. This will give the person selling commodities, a potential loyal customer base of the Franchisor's Company.
The Franchisor will in turn earn more goodwill from the sale of those products and will also be earning some shares of the profit. The Franchisor doesn't provide extensive financial helps directly. But the sponsors of that Franchisor arrange for the finances. Hence, the above statement is proven.
Learn more about the Franchisor here:
https://brainly.com/question/14607845
#SPJ1
When will the U.S. armed forces provide financial aid?
A. during and after your service
B. before, during, and after your service
C. After you have served two years
D. Before and after your service
PLS ANSWER QUICKLY
Despite having a promising product, Vesper Systems is having difficulty generating profits. Having raised $85 million in an initial public offering of its stock early in the year, the company is poised to introduce a new product. If Vesper engages in a promotional campaign costing $55 million this year, its annual after-tax cash flow over the next five years will only be $1 million. If it does no undertake the campaign, it expects its after-tax cash flow to be -$15 million annually for the same period. Assuming the company has decided to stay in its chosen business, is this campaign worthwhile when the discount rate is 8%. Why or why not?
Based on the information provided, it does not appear that the promotional campaign would be worthwhile for Vesper Systems when the discount rate is 8%. The campaign would cost $55 million, and would only generate $1 million in annual after-tax cash flow over the next five years, for a total of $5 million in cash flow over the five-year period. When the discount rate is 8%, this amount of cash flow would not be sufficient to justify the cost of the campaign.
In contrast, if Vesper Systems does not undertake the promotional campaign, it expects its after-tax cash flow to be -$15 million annually for the same five-year period. This would result in a total cash flow of -$75 million over the five-year period. While this is still a negative cash flow, it would be less negative than the cash flow generated by the promotional campaign.
Overall, the decision to undertake the promotional campaign would not be worthwhile for Vesper Systems when the discount rate is 8%, as the expected cash flow from the campaign would not be sufficient to justify the cost of the campaign. It would be more beneficial for the company to not undertake the campaign and instead focus on other strategies to improve its profitability.
stock price for vinyl record player?
To give you an idea the stock price, beginner to advanced record player installations can range from $50 to $450, depending on a number of variables.
What is current stock price?It is the latest trading price for a share of stock or any other security. The present price serves as the starting point in an open market. It shows the price that a buyer and seller would be prepared to accept for a later transaction involving that security.The current price is only an indication and not a promise. The future sale price on an exchange is not determined by the present price. The security's price will fluctuate over time as supply and demand factors change.Using the current value accounting method, assets are valued at their replacement cost rather than their initial cost.Cash price is the same as current price because it refers to the most recent quoted price on an exchange.Learn more about current stock price refer to :
https://brainly.com/question/28539863
#SPJ1
The additional components of the marketing mix for marketing a service does not include which of the following?
people
process
popularity
physical environment
The marketing mix comprises four primary elements: product, price, promotion, and place. However, when marketing services, some additional components are added to the mix. These components are known as the 7Ps of marketing and include people, process, and physical evidence (or physical environment).
Popularity, on the other hand, is not a component of the marketing mix for services. Popularity can be considered a byproduct of the marketing efforts and how successful they are in promoting the service to the target audience. Popularity is a measure of how well a service is known or recognized in the market.
People: This component of the marketing mix is concerned with the people involved in the delivery of the service. These people include the employees, staff, and other personnel involved in providing the service to the customers. These people are critical to the success of the service and need to be trained, managed, and motivated to provide excellent service.
Process: This component of the marketing mix is concerned with the procedures and processes involved in the delivery of the service. The process should be designed to ensure that the service is delivered consistently and efficiently, meeting the needs and expectations of the customers. A well-designed process can enhance the customer experience and help in creating a positive perception of the service.
Physical Environment: This component of the marketing mix is concerned with the physical environment in which the service is delivered. This environment can include the ambiance, decor, lighting, and other factors that contribute to the customer experience.
A well-designed physical environment can enhance the customer experience and contribute to the success of the service.
Popularity: Popularity can be considered a byproduct of the marketing efforts and how successful they are in promoting the service to the target audience. Popularity is a measure of how well a service is known or recognized in the market.
For more such questions on primary elements
https://brainly.com/question/1398751
#SPJ8
How do producers decide whether to diversify and production or specialize and trade?
Pls help !! this is my third time asking !! pls i really need this
Goose Corporation, a C corporation, incurs a net capital loss of $12,000 for 2020. It also has ordinary income of $10,000 in 2020. Goose had net capital gains of $2,500 in 2016 and $5,000 in 2019.
a. Determine the amount, if any, of the net capital loss of $12,000 that is deductible in 2020.
b. Determine the amount, if any, of the net capital loss of $12,000 that is carried forward to 2017.
Answer:
a. The amount of the net capital loss of $12,000 that is deductible in 2020 is zero.
b. The amount of the net capital loss of $12,000 that is carried forward to 2021 is $7,000.
Explanation:
Sections 1211 and 1212 of the Internal Revenue Code (IRC) address capital losses of corporations and declare that:
Corporation capital losses are not allowed to be deducted from ordinary income.For that year, corporations can only deduct capital losses up to the amount of capital profits from other assets.Any capital losses that haven't been deducted because there aren't any more capital gains can be carried back three years and forward five years.As a result of the foregoing, we have:
a. Determine the amount, if any, of the net capital loss of $12,000 that is deductible in 2020.
Because there are no capital gains in 2020, no portion of the $12,000 net capital loss is deductible in 2020. It cannot be deducted from ordinary income in 2020.
Therefore, the amount of the net capital loss of $12,000 that is deductible in 2020 is zero.
b. Determine the amount, if any, of the net capital loss of $12,000 that is carried forward to 2017.
Note: This question b is not correct because the 2017 is used instead of 2021 as the year. It therefore correctly stated before answering the question as follows:
Determine the amount, if any, of the net capital loss of $12,000 that is carried forward to 2021.
The explanation of the answer is now given as follows:
Because businesses can carry back three years and forward five years, the amount to carry forward to 2021 will be the difference of $12,000 in capital losses for 2020 and $5,000 in capital gains for 2019, which is $7,000 (i.e. $12,000 - $5,000 = $7,000).
Therefore, the amount of the net capital loss of $12,000 that is carried forward to 2021 is $7,000.
When is the adjusted trial balance prepared?
An adjusted trial balance is prepared after the necessary adjusting entries has been made.
Stam Company shows the following costs for three jobs worked on in April. Job 306 Job 307 Job 308 Balances on March 31 Direct materials (in March) $ 33,600 $ 41,900 Direct labor (in March) 24,600 20,300 Applied overhead (March) 12,300 10,150 Costs during April Direct materials 139,600 226,900 $ 102,300 Direct labor 94,200 161,500 107,300 Applied overhead ? ? ? Status on April 30 Finished (sold) Finished (unsold) In process Additional Information Raw Materials Inventory has a March 31 balance of $91,500. Raw materials purchases in April are $504,600, and total factory payroll cost in April is $388,300. Actual overhead costs incurred in April are indirect materials, $52,300; indirect labor, $25,300; factory rent, $34,300; factory utilities, $21,300; and factory equipment depreciation, $55,600. Predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $650,000 cash in April.
Based on the cost of production by Stam Company, the overhead rate which is applied to the jobs are:
Data and Calculations:
Job 306 Job 307 Job 308
Balances on March 31
Direct materials used (in March) $33,600 $41,900
Direct labor used (in March) $24,600 $20,300
Overhead applied (March) $12,300 $10,150
Costs during April
Direct materials used $139,000 $226,900 $102,000
Direct labor used $94,200 $161,500 $107,300
Overhead applied $55,600 $77,500 $52,500
($94,200 × 50%) ($161,500 × 50%) ($107,300 × 50%)
Job 306 - $47,100
Job 307 - $80,750
Job 308 - $53,650
The overhead rate applied for Job 306 in April is:
= Direct labor cost x 50%
= 94,200 x 50%
= $47,100
The overhead applied for Job 307 in April is:
= 161,500 x 50%
= $80,750
The overhead for Job 308 in April is:
= 107,300 x 50%
= $53,650
Hence, based on the cost of production by Stam Company, the overhead rate applied to the jobs are calculated above.
The given question is incomplete, the complete question is-
Stam Company shows the following costs for three jobs worked on in April. Job 306 Job 307 Job 308 Balances on March 31 Direct materials (in March) $ 33,600 $ 41,900 Direct labor (in March) 24,600 20,300 Applied overhead (March) 12,300 10,150 Costs during April Direct materials 139,600 226,900 $ 102,300 Direct labor 94,200 161,500 107,300 Applied overhead ? ? ? Status on April 30 Finished (sold) Finished (unsold) In process Additional Information Raw Materials Inventory has a March 31 balance of $91,500. Raw materials purchases in April are $504,600, and total factory payroll cost in April is $388,300. Actual overhead costs incurred in April are indirect materials, $52,300; indirect labor, $25,300; factory rent, $34,300; factory utilities, $21,300; and factory equipment depreciation, $55,600. Predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $650,000 cash in April.
Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal 4. Prepare a schedule of cost of goods manufactured for the month end April 30. Stam Company Schedule of Cost of Goods Manufactured For Month Ended April 30 Total manufacturing costs Total cost of work in process Cost of goods manufactured.
To learn more about the overhead rate here:
https://brainly.com/question/15187056
#SPJ1
The Durbin Amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 dramatically lowered the fees we can charge merchants when consumers pay with debit cards. One way around this will be to reinstate fees on all of our checking accounts, including those with automatic deposits. Interest rates have fallen every year for the past 5 years. Depending on who gets elected, our high-net-worth depositors will see dramatic differences in the way they are taxed. The Democratic candidate will impose larger taxes on high-income citizens.
The Durbin Amendment is a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. It limits the amount that banks can charge merchants for processing debit card transactions.
Specifically, it caps these fees at 21 cents per transaction, plus an additional 0.05% of the transaction amount. Prior to the enactment of the Durbin Amendment, banks could charge merchants much higher fees, which they would often pass on to consumers in the form of higher prices.
To make up for the lost revenue resulting from the lower debit card transaction fees, some banks have considered reinstating fees on checking accounts, including those with automatic deposits. However, this would be a business decision made by individual banks, and not a requirement of the Durbin Amendment or any other law.
Regarding interest rates, it is true that they have been falling in recent years. This is largely due to actions taken by the Federal Reserve to stimulate the economy in the wake of the 2008 financial crisis. Lower interest rates can make it more difficult for banks to earn profits, which can in turn lead to higher fees or other changes to their business practices.
As for taxes on high-income citizens, it is up to the government to set tax policy, and this can vary depending on who is in power. It is important to note that taxes are a complex issue and can have many different implications for the economy and society as a whole.
To learn more about Durbin Amendment, click here:
https://brainly.com/question/996252
#SPJ4
Explain in detail the risky behavior of Alcahol amongst teenagers
Answer:
Underage drinking leads to academic problems in school,legal problems,vehicle crashes,and lifelong impacts on brain development.
what is the difference between hire purchase and differed payment?
Explanation:
In deferred payment, the borrower will agreed to pay certain amount of money on the promised date. ... In hire purchase, the purchaser will be getting the belongings without paying the full price of the item. The purchasers would make down payment and the balance is paid in installments.
Explanation:
Hire purchase is a system by which one pays for a thing in regular installments while having the use of it but deferred payments are payments that are completely or partially postponed for financial reasons
The demeanor of a person can spell a make or break during the conduct of a job interview. Agree or Disagree? Justify.
Agree. The demeanor of a person can indeed make or break their chances during a job interview.
The way an individual presents themselves and interacts with the interviewer can have a significant impact on the interviewer's perception of their suitability for the role. Here's why:
Firstly, demeanor reflects a candidate's level of professionalism and confidence.
An individual who exudes confidence, maintains eye contact, and displays good posture conveys a sense of self-assurance and competence.
This can instill trust in the interviewer and create a positive impression.
Conversely, a candidate who appears nervous, fidgety, or lacks confidence may be perceived as unprepared or uncertain, raising doubts about their ability to handle the responsibilities of the job.
Secondly, demeanor influences communication and interpersonal skills.
Effective communication is crucial in an interview, and a candidate's demeanor plays a key role in conveying their thoughts and ideas clearly.
An individual who speaks articulately, listens attentively, and engages in a respectful and professional manner is more likely to be viewed as a strong candidate.
On the other hand, poor communication skills, such as speaking too softly, interrupting, or being overly aggressive, can hinder effective interaction and diminish the interviewer's perception of the candidate's fit for the position.
Lastly, demeanor reflects an individual's attitude and cultural fit. Job interviews often assess a candidate's compatibility with the company's values and work environment.
A positive demeanor that demonstrates enthusiasm, adaptability, and a willingness to learn can greatly enhance a candidate's chances.
Employers are not only looking for someone with the right skills but also for someone who can work well within the team and contribute positively to the company's culture.
Conversely, a negative or indifferent demeanor may signal a lack of enthusiasm or compatibility, leading the interviewer to question the candidate's potential contribution to the organization.
For more questions on job interview
https://brainly.com/question/30977511
#SPJ8
What is something I can create or invent that hasn't been invented yet, that could make me a millionaire?
Explanation:
The products and services offered today through economic systems exist to satisfy human needs. The higher the level of satisfaction of needs met, the greater the positioning of a product or service that can make an individual millionaire.
To create or invent something that does not yet exist and be extremely profitable, it is necessary to think about human priorities, such as health and technology. An invention that could be successful would be the development of a cure for diseases such as drugs that destroy cancer cells and create other healthy cells without side effects to humans, or in the current world context, an inexpensive and easily developed anti-coronavirus drug.
What is the equilibrium price
The equilibrium price refers to the cost of goods and services for the consumer where the forces of market supply are equal to the forces of market demand.
What do you mean by Price?A price refers to the money that needs to be paid for acquiring a particular good, product, or service.
When the supply of goods and services is equal to the demand of goods and services, it is known as an equilibrium price.
The market is in a state of equilibrium when the forces of supply and demand are equal.
Learn more about price here:
https://brainly.com/question/12908368
#SPJ1
According to the creditor hierarchy, list the following from high risk to low risk
1 Ordinary share capital 2 Preference share capital 3 Trade payables 4 Bank loan with fixed and floating charges A 1,2,3,4 B 2,1,4,3 C 1,2,4,3 D 4,1,2,3 2.
The correct order from high risk to low risk is: D) 4, 1, 2, 3 where trade payables are the lowest-risk creditors, followed by ordinary share capital, preference share capital, and bank loans with fixed and floating charges being the highest-risk creditors.
Bank loans are a common form of debt financing provided by financial institutions such as banks to individuals and businesses.
The terms and conditions of bank loans can vary depending on the lender and the borrower's creditworthiness, but typically include an interest rate, repayment schedule, and collateral or security requirements.
Learn more about bank loans, here
https://brainly.com/question/31672961
#SPJ1
12.21 Cesar Rego Computers, a Mississippi chain of com- puter hardware and software retail outlets, supplies both edu- cational and commercial customers with memory and storage devices. It currently faces the following ordering decision relating to purchases of very high-density disks: D = 36,000 disks S = +25 H = +0.45 Purchase price = +.85 Discount price = +0.82 Quantity needed to qualify for the discount = 6,000 disks Should the discount be taken
The discount should be taken and the ordering quantity should be 6000 disks.
How to illustrate the discount?EOQ = (2*annual demand*ordering cost/carrying cost per unit per year)^.5
If purchase price = $.85
Then,
EOQ = (2*36000*25/(20%*.85))^.5
EOQ = 3253.96 or 3254 disks
Now,
Total annual cost = product cost + annual ordering cost + annual holding cost
Total annual cost cost = 36000*.85 + (36000/3254)*25 + (3254/2)*(20%*.85)
Total annual cost = $31153.17
If a discount price is used and 6000 units are ordered, then:
EOQ = (2*36000*25/(20%*.82))^.5
EOQ = 3313 units approx. it is still less than 6000.
If 6000 units are ordered to get a discount price of $.82, then:
Total annual cost cost = 36000*.82 + (36000/6000)*25 + (6000/2)*(20%*.82)
Total annual cost cost = $30162
Now, it can be observed that the total annual cost is less with 6000 quantity on order than that of total annual cost at EOQ quantity, due to discounted price.
So, a discount should be taken and the ordering quantity should be 6000 disks.
Learn more about discount on:
https://brainly.com/question/1548141
#SPJ1
A banking institution offers different investment programs for young couples, families, and retired individuals. What type of consumer segmentation is
this?
A. psychographic segmentation
B. demographic segmentation
C. behavioral segmentation
D. geographic segmentation
Answer:
demographic!!!
Juanita Domingo's parents want to establish a college trust for her. They want to make 16 quarterly withdrawals of $2000, with the first withdrawal 3 months from now. If money is worth 7.5%, compounded quarterly, how much must be deposited now to provide for this trust
Answer:
Initial investment= 26,921.47
Explanation:
Giving the following information:
Withdrawls= 16 of $2,000
Interest rate= 0.075/4= 0.01875
To calculate the initial investment, first, we need to calculate the future value of the investment:
FV= {A*[(1+i)^n-1]}/i
A= quarterly payment
FV= {2,000*[(1.01875^16) - 1]} / 0.01875
FV= $36,918.86
Now, the present value:
PV= FV/(1+i)^n
PV= 36,918.86/1.01875^17
PV= $26,921.47
Initial investment= 26,921.47
The difference between a firms current assets and current liabilities is known as the
Answer:
Working capital
Explanation:
Working capital, also called net working capital, represents the difference between a company's current assets and current liabilities.
The difference between a firm's current assets and current liabilities is known as its "working capital." Working capital is a measure of a company's short-term financial health and represents the funds that are available to finance the day-to-day operations of the business.
Current assets include cash, accounts receivable, inventory, and other assets that are expected to be converted into cash within one year or within the normal operating cycle of the business, whichever is longer. Current liabilities, on the other hand, include accounts payable, short-term loans, and other obligations that are due within one year or within the normal operating cycle of the business. Therefore, working capital is calculated by subtracting current liabilities from current assets: Working Capital = Current Assets - Current Liabilities
For more information on obligations see:
https://brainly.com/question/29437673
#SPJ1
Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $5.4 million. The machinery can be sold to the Romulans today for $7.6 million. Klingon's current balance sheet shows net fixed assets of $4.2 million, current liabilities of $850,000, and net working capital of $144,000. If all the current accounts were liquidated today, the company would receive $965,000 cash.
a. What is the book value of Klingon's total assets today? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.)
b. What is the sum of the market value of NWC and the market value of fixed assets? (Do not round Intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.)
a. Book value of total assets
b. Sum of market value of NWC and fixed assets
Answer:
a. $5,194,000
b. $7,715,000
Explanation:
a. Book Value of assets = Book value of fixed assets + book value of current assets
Book Value of assets = Book value of fixed assets + (Current Liabilities + Net working capital)
Book Value of assets = $4,200,000 + ($850,000 + $144,000)
Book Value of assets = $5,194,000
b. Sum of market value = $7,600,000 + ($965,000 - $850,000)
Sum of market value = $$7,600,000 + $115,000
Sum of market value = $7,715,000
The following balance sheet for the Los Gatos Corporation was prepared by a recently hired accountant. In reviewing the statement you notice several errors.
LOS GATOS CORPORATION
Balance Sheet
At December 31, 2018
Assets
Cash $ 74,000
Accounts receivable 131,000
Inventories 72,000
Machinery (net) 137,000
Franchise (net) 47,000
Total assets $ 461,000
Liabilities and Shareholders’ Equity
Accounts payable $ 84,000
Allowance for uncollectible accounts22,000
Note payable 89,000
Bonds payable 127,000
Shareholders’ equity 139,000
Total liabilities and shareholders’ equity $
461,000
Additional information:
Cash includes a $37,000 restricted amount to be used for repayment of the bonds payable in 2022.
The cost of the machinery is $224,000.
Accounts receivable includes a $37,000 note receivable from a customer due in 2021.
The note payable includes accrued interest of $22,000. Principal and interest are both due on February 1, 2019.
The company began operations in 2013. Income less dividends since inception of the company totals $52,000.
67,000 shares of no par common stock were issued in 2013. 100,000 shares are authorized.
Required:
Prepare a corrected, classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.)
Answer:
Los Gatos Corporation
Corrected, Classified Balance Sheet
LOS GATOS CORPORATION
Balance Sheet
At December 31, 2018
Assets
Current Assets:
Cash $ 37,000
Restricted Cash 37,000
Accounts receivable 94,000
Allowance for
uncollectibles 22,000 72,000
Inventories 72,000
Total current assets $218,000
Long-term Assets:
Note receivable 37,000
Machinery 224,000
Acc. Depreciation 87,000 137,000
Franchise (net) 47,000
Total long-term assets $221,000
Total assets $ 439,000
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable $ 84,000
Accrued interest 22,000
Note payable 67,000
Total current liabilities $173,000
Long-term liabilities
Bonds payable 127,000
Shareholders’ equity
Common Stock, 100,000 authorized
67,000 shares of no par issued 87,000
Retained earnings 52,000 139,000
Total liabilities and shareholders’ equity $ 439,000
Explanation:
a) Data and Calculations:
LOS GATOS CORPORATION
Balance Sheet
At December 31, 2018
Assets
Cash $ 74,000
Accounts receivable 131,000
Inventories 72,000
Machinery (net) 137,000
Franchise (net) 47,000
Total assets $ 461,000
Liabilities and Shareholders’ Equity
Accounts payable $ 84,000
Allowance for
uncollectibles 22,000
Note payable 89,000
Bonds payable 127,000
Shareholders’ equity 139,000
Total liabilities and shareholders’ equity $ 461,000
Adjustment based on additional information:
Cash $ 74,000
Bonds Payable restricted 37,000
Cash balance $37,000
Machinery (net) 137,000
Cost of machinery 224,000
Acc. Depreciation 87,000
Accounts receivable 131,000
Long-term Note receivable 37,000
Balance 94,000
Short-term liabilities:
Note payable 89,000
Accrued interest 22,000
Note payable 67,000
Retained earnings = $52,000
Shareholders’ equity 139,000
Retained earnings 52,000
Balance in equity 87,000