What is the relationship of
Stores function and other
departments​

Answers

Answer 1

Answer:

Explanation:

The store function has the responsibility for the receipt custody and distribution of stocks and for the determination of appropriate quantities and qualities of material to be held since order that operational needs, may be in an economic possible therefore, store management can become an important tool. Therefore,every department in a store is supposed to work together to get sales. Managers of each department should work together to ensure each department is staffed and there is enough products.

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Related Questions

what do Librarians need to do after they have jobs?
a. attend conferences where they train other librarians
b. volunteer in schools to advise students about how to use libraries
c. slowly share their knowledge with librarians in other locations
d. continually train to stay up to date on information technology developments

Answers

The action that a Librarians need to do after they have jobs is to  continually train to stay up to date on information technology developments.

Who is a librarian?

In a education sector, the "librarian" is an officer who is responsible for overseeing the daily operations of their library, either at the public or private level. They also work within a schools, religious institutions, in government libraries and research facilities.

Some of the typical roles and responsibilities of a librarian includes:

They provide a customer service for library usersThey provide suggestions to library users about new booksThey help the library users to check out booksThey oversee the team of assistant librarians and library aidsThey also help to develop fun and education programs for youths and adults

In conclusion, the action that a Librarians need to do after they have jobs is to  continually train to stay up to date on information technology developments. Therefore, the Option D is correct.

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Answer:

D.

Explanation:

Edge 2023

13.) An investor is in a 30% combined federal plus state tax bracket. If corporate bonds offer 6% yields, what yield must municipals offer for the investor to prefer them to corporate bonds

Answers

Answer:

the yield that must offer for the investor in order to prefer them is 4.2%

Explanation:

The computation is shown below:

The after tax yield is

= Corporate bond yield × (1 - tax rate)

= 6% × (1 - 0.30)

= 6% × 0.70

= 4.2%

hence, the yield that must offer for the investor in order to prefer them is 4.2%

The same is relevant

Assess each of the "Post Marketing Concept Approaches" from the eText with regard to their suitability to individual competitive strategies. As an example, determine the marketing concept appropriate for cost leadership strategy and make the arguments in support of your perspectives.

Answers

Answer:

The marketing concept that is most suitable to Cost Leadership Strategy is the Production Concept.

The production concept of marketing places a strong emphasis on operations and how it can be constantly fine-tuned to deliver the required products as and when required at the quantity required and at the lowest cost possible. Minimal costs is crucial here because the market being played by the entrepreneur or the business is a growing one, most concerned about product availability and low prices than on quality.

So in order to come out on top as the leader with the lowest production cost, the business must invest in processes that help them do just that.

In this market, the quality is approximately standard across board. This means people worry less about quality and are focused on getting the same quality at the lowest price possible. In a perfect market, people who do large purchases will gravitate to the business with the lowest price even if the difference in the price of that of other producers are only a small margin.

Explanation:

The product concept marketing approach focuses on delivering the most exquisite product in the market. This an example of a company/companies in the mobile telecommunications market that do this are: Apple and Samsung.

In business, the trade-offs are usually between quality, cost and time.

It speaks to the fact that the higher the quality, the higher the cost. This Product concept as a marketing strategy rests on the premise that there are  enough potential customer for the product and that existing ones are too loyal to shift their focus because of the added cost required for their products;

The selling concept: the premise for this concept derives from the assumption that the degree to which people purchase a product is directly proportional to the intensity of selling efforts. A company that adopts this concept will most likely have a very huge advertising budget and a large sales team/outlets.

The Marketing Concept: This concept takes root in the notion that for a business to succeed, it must outdo its rivals with regard to value delivery. Companies that adopt this approach seem to combine all the other concepts into one holistic marketing strategy because the focus is on gaining the most competitive advantage.

The Societal Marketing Concept:

As consumers grew more aware of the impacts of business activities on the environment and society, buying decisions started to be influenced by whether or not the company was being ethical. Ethical issues under consideration were:

a) does the production process of the company impact the environment negatively?

b) is the company involved in any social development project?

c) are there any illegal and or unethical issues on their supply chain? such as child labor, illegal acquisition of raw material, human trafficking etc.

Several global brands in the clothing business for instance, have recently been put in the spotlight for tolerating child slavery in one of the countries of origin for their raw material. This modern-day concept has become very important for most if not all multinational companies.

Cheers

Hamby Inc. has sales of $2,076,000 for the first quarter of 2020. In making the sales, the company incurred the following costs and expenses.

Variable Fixed
Cost of goods sold $779,000 $614,000
Selling expenses 96,700 63,500
Administrative expenses 81,600 70,800

Required:
Prepare a CVP income statement for the quarter ended March 31, 2017.

Answers

Answer:

Net income= $370,301

Explanation:

First, we need to calculate the total variable costs and the total fixed costs:

Total variable cost= 779,000 + 96,700 + 81,600

Total variable cost= $957,399

Total fixed cost= 614,000 + 63,500 + 70,800

Total fixed cost= $748,300

Now, we make the CVP income statement:

Sales= 2,076,000

Total variable cost= (957,399)

Total contribution margin= 1,118,601

Total fixed cost= (748,300)

Net income= $370,301

Which one is not a benefit to
employee which results through
positive attitude of an employee
Select one:
a. Job security
b. Promotion
c. Less stress
d. Enjoying life

= Promotion​

Answers

Answer:

I think its B

Explanation:

A is the probability of not losing your job

C Needs a Postive Attitude

D also Needs a Positive Attitude

The one which does not benefit the employee as a result of positive attitude of an employee is Promotion. Thus, option (B) is correct.

What is Promotion?

Promotion in the context of a career means raising a worker's position or rank within a hierarchical structure of the organization. The promotion given to those employees who excel in their performance.

Promotion is the one that does not benefit the employee as a result of the employee's positive attitude. Therefore, it can be concluded that option (B) is correct.

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The Gorman Group issued $880,000 of 13% bonds on June 30, 2018, for $946,202. The bonds were dated on June 30 and mature on June 30, 2038 (20 years). The market yield for bonds of similar risk and maturity is 12%. Interest is paid semiannually on December 31 and June 30.

Required:
Record the company's journal entry.

Answers

Answer:

Missing word: "a. to record their issuance by The Gorman Group on June 30, 2018, b. interest on December 31, 2018 and c. interest on June 30, 2019 (at the effective rate)."

Par value of bonds = $880,000

Semi annual interest payment = 880,000 x 13% x 6/12  = $57,200

Effective interest rate = 12%, Semi annual Effective interest rate = 6%

Issue price of bonds =  $946,202

Premium on bonds payable = Issue price of bonds - Par value of bonds = $946,202 - $880,000 = $66,202

a. Journal Entry on June 30, 2018

Date              Account                          Debit        Credit

6/30/2016      Cash                           946,202  

                           Bonds payable                         880,000  

                            Premium on Bonds payable     66,202

b. Journal Entry on on December 31, 2018

Date              Account                                 Debit        Credit

12/31/2016     Interest expense                   56,772

                    (946,202 x 6%)

                    Premium on bonds payable   428

                    (57,200 - 56,772)

                               Cash                                               57,200

c. Journal Entry on on June 30, 2019

Date              Account                                 Debit        Credit

6/30/2019    Interest expense                   56,746

                    (945,774 x 6%)

                    Premium on bonds payable   428

                    (57,200 - 56,746)

                               Cash                                               57,200

At the beginning of the year, Vendors, Inc., had owners' equity of $49,850. During the year, net income was $6,150 and the company paid dividends of $4,250. The company also repurchased $8,350 in equity. What was the cash flow to stockholders for the year

Answers

Answer: $12,600

Explanation:

Based on the information that have been given in the question, the cash flow to stockholders for the year would be calculated as:

= Dividends Paid - (Ending Common Stock - Beginning Common Stock)

= $4250 - {[$49850 - $8350] - $49850}

= $4250 - [$41500 - $49850]

= $4250 - (-$8350)

= $4250 + $8350

= $12,600

Some students and scholars may owe money with their tax return. Nonresidents have which of the following payment options?

a. Ask for an extension of time to pay or an installment agreement.
b. Pay the entire balance by the due date for the return.
c. Put the balance on a credit card.
d. All of the above.

Answers

Answer:

d. All of the above.

Explanation:

In the case where certain students and academics owes their tax return money, the non-resident has the below payment options.

a. Either apply for a pay time extension or an agreement to pay on the basis of payments

b. Pay at the due date of the return the total sum

c. On the credit card, put the balance

Therefore by all of the above options they can be eligible

hence, the correct option is d.

Categorizing U.S. taxes
Which of the following taxes are regressive?
a) A sales tax that adds 5% to the sale of all items
b) The U.S. payroll tax (a constant tax on wages up to a certain amount, after which the marginal tax rate is 0%) is a tax.
c) The U.S. income tax

Answers

Answer:

A

Explanation:

A regressive tax is a tax system where the same tax rate is applied uniformly. As a result, those earning less income are taxed higher than those earning more income.  

Sales tax is an example of a regressive tax.

If sales tax is 5%. Worker A earns $100 and worker B earns $1000. Both buy a good worth $50 before tax.  the sales tax is worth $2.5.

The tax comprises $2,5 / 100 = 2.5% of worker A's income and $2,5 / $1000 = 0.025% of Worker B's income.

It can be seen that worker A who earns less income is taxed higher

Fill in the blanks with the category of the expanded accounting equation (assets; liabilities; owner, capital; owner, withdrawals; revenues; expenses).
Inventory
Retained Earnings
Dividends
Cost of Goods Sold
Utilities Payable
Service Revenue
Accounts Payable
Rent Expense

Answers

Answer and Explanation:

The classification is as follows;

Inventory  = current assets

Retained Earnings  = stockholder equity

Dividends = dividend  

Cost of Goods Sold  = expense

Utilities Payable  = current liabilities

Service Revenue  = revenue

Accounts Payable  = current liabilities

Rent Expense = expense

In this way it could be classified and the same is relevant

On January 1, 2018, Legion Company sold $200,000 of 10% ten-year bonds. Interest is payable semiannually on June 30 and December 31. The bonds were sold for $177,000, priced to yield 12%. Legion records interest at the effective rate. Legion should report bond interest expense for the six months ended June 30, 2018, in the amount of:

Answers

Answer:

$10,620

Explanation:

Calculation for what Legion should report bond interest expense for the six months ended June 30, 2018,

Bond interest expense=(12%/2 semiannually*$177,000)

Bond interest expense=6% × $177,000

Bond interest expense=$10,620

Therefore Legion should report bond interest expense for the six months ended June 30, 2018, in the amount of:$10,620

Scientist of OB recognize that
organisations are not static but
dynamic and_________
Select one
a. Processing
b. Systematic
c. Researching
d. Ever changing

= Ever changing​

Answers

Explanation:

the answer is = Ever changing

The subsidiary of a U.S. corporation located in Country Y generated income of $1,000,000 on which it paid $400,000 (40%) in taxes to Country Y. The subsidiary paid a dividend to the U.S. parent of $54,000. How much tax is currently owed to the U.S. government if the federal tax rate is 35%

Answers

Answer:

The tax currently owed to the U.S. government is:

$18,900

Explanation:

a) Data and Calculations:

Income generated by the foreign subsidiary = $1,000,000

Tax paid by the subsidiary in its country of residence = $400,000

Dividend paid to the U.S. parent = $54,000

Federal tax rate = 35%

Tax on the dividend = $18,900 ($54,000 * 35%)

b) The dividend of $54,000 is a foreign-source income earned by a U.S. parent corporation.  This is this amount that will be subject to tax in the U.S. and not the net income of the subsidiary.

Warner Clothing is considering the introduction of a new baseball cap for sales by local vendors. The company has collected the following price and cost characteristics.

Sales price $15 per unit
Variable costs 5 per unit
Fixed costs 50,000 per month

Required:
a. What number must Warner sell per month to break even?
b. What number must Warner sell per month to make an operating profit of $34,000 and $8,400. Assume that the company plans to sell 9,000 units per month. Consider requirements (b), (c), and (d) independently of each other.
c. What will be the operating profit?
d. What is the impact on operating profit if the sales price decreases by 10 percent? Increases by 20 percent?

Answers

Answer:

a. 5,000 units

b. 8,400 units and 5,840 units

c. $40,000

d. decrease of operating profit by 22.50 % and increase of operating profit by 45.00%

Explanation:

Breakeven point is level at which a firm makes neither profit nor loss

Break even units = Fixed Costs ÷ Contribution per unit

Break even units = 5,000 units

Units to achieve target profit = Target Profit + Fixed Costs ÷ Contribution per unit

Units to achieve profit of $34,000 = 8,400 units

Units to achieve profit of $8,400 = 5,840 units

Operating Profit = Contribution - Fixed Costs

                           = $40,000

The effect on change of operating profit  can be best shown by calculation of the Degree of Operating Leverage (DOL)

DOL = Contribution ÷ Profit

        = 2.25

Sales decreases of 10 percent = decrease of operating profit by 22.50 % (10 % × 2.25)

Sales Increases of 20 percent = increase of operating profit by 45.00%  (20%× 2.25)

QUESTION 10 of 10: Your business owns an old truck. Liability insurance is required; collision is optional. Collision insurance costs $500 per year. The old truck has a value of $750. You think the likelihood of having a serious collision in a year is about 10%. Should you get the collision insurance? O a) Yes Ob) No​

Answers

the answer for this question is No

hope this helps

Answer:

no

Explanation:

I had this one.

The situation in which expansionary fiscal policy does not lead to a rise in aggregate output is referred to as

Select one:
a. Fiscal neutrality.
b. Inflation.
c. Complete crowding out
d. A recession.

= Complete crowding out​

Answers

Answer: The situation in which expansionary fiscal policy does not lead to a rise in aggregate output is referred to as

Select one:

a. Fiscal neutrality.

b. Inflation.

c. Complete crowding out

d. A recession.

Explanation:

The situation in which expansionary fiscal policy does not lead to a rise in aggregate output is referred to as complete crowding out.

What is fiscal policy?

A fiscal policy refers to the use of government spending and policies for influencing economic conditions.

The situation in which expansionary fiscal policies do not lead to a rise in aggregate output is referred to as complete crowding out.

Therefore, C is the correct option.

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Silver Springs Company has an unfunded retiree health care plan. Each of the company's four employees has been with the organization since its inception at the beginning of 2020. As of the end of 2021, the actuary estimates the total net cost of providing benefits to employees during their retirement years to have a present value of $196,000. Each of the employees will become fully eligible for benefits after 28 more years of service, but aren't expected to retire for 30 more years. The interest rate is 8%. Required: 1. What is the expected postretirement benefit obligation at the end of 2021? 2. What is the accumulated postretirement benefit obligation at the end of 2021?

Answers

Answer:

1. The expected post-retirement benefit obligation at the end of 2021 is $196,000, the present value of total net costs of providing health care benefits.

2. Calculation of the accumulated post-retirement benefit obligation at the end of 2021 is as below:

APBO = EPBO * Full eligibility period / Attribution period

APBO = $196,000 * 2 / (2+28)

APBO = $196,000 * 2/30

APBO = $13066.66666666667

APBO = $13,066.67

Thus, accumulated post-retirement benefit obligation at the end of 2021 is $13,066.67.

What is the mental and physical effort made by humans for the production of goods and services?

Labor

Capital

Land

Entrepreneurship

Answers

Answer:-
I think it’s LABOUR if I guessed it ryt

If the velocity of money is 3 and the amount of narrow money is $1.56 billion, what would be the nominal GDP?

Select one:
a. $8.5 trillion
b. $4.68 billion
c. $4.68 trillion
d. $5.68 billion

= 4.68 billion​

Answers

Answer:

c. $4.68 trillion

Explanation:

Narrow money refers to the physical money coins and notes within an economy. It is a way of measuring the money that is available for immediate spending in the economy.

The velocity of money is the rate at which money circulates in the economy. Therefore, the velocity of money is a measure of the number of times narrow money circulates in the economy per period.

If the velocity of money is 3, narrow money circulates three times,  meaning the value of GDP will be the velocity of money multiplied by narrow money

=3 x 1.56 billion

=4.68 billion

Which of the following occupations would least likely to be
subjected to seasonal employment?

Select one:
a.
Easter Bunny.
b.
McDonald clown.
C.
Department store Santa Claus.
d.
Lifeguard.

= McDonald clown.​

Answers

Answer:

McDonald Clown

Explanation:

B.

=MCDONALD

B Mcdonald’s clown because all of the others are for certain points in time

Overheating of the economy means
output is occurring at an unsustainably high level, at which the unemployment rate is lower than the natural rate of unemployment.

Select one:
a. The business cycle curve is below the growth trend, the economy is experiencing a negative output gap.
b. The business cycle will reach a peak and enter a recession.
c. None of the above
d. The business cycle will reach a troughand enter a recovery

= The business cycle will reach a peak and enter a recession.​

Answers

Answer:

A is correct.

Explanation:

thank you.

Case studies can _________ be cross-representational from company to company.

rarely

always

never

usually

Answers

Usually That’s what I put last time, but I didn’t see the answer
I think usually best goes there

For each of the following transactions, identify it as a financial capital inflow or financial capital outflow in the United States Balance of Payments. Also, determine if the transaction is in the Current or Financial Account.

a. The U.S. exports cars to be sold in Canada.
b. Pepsi buys a factory in Mexico.
c. A Brazilian company buys an apartment building in Boston.
d. The central bank of China purchases a U.S. Treasury Bond.
f. A businessman is paid dividends on the stock from a foreign corporation that he owns.

Answers

Answer: See explanation

Explanation:

The balance of payment show tge transactions that occur between a country and another country.

a. The U.S. exports cars to be sold in Canada.

This is a financial capital inflow and the transaction is in the current account.

b. Pepsi buys a factory in Mexico.

This is a financial capital outflow and the transaction is in the financial account.

c. A Brazilian company buys an apartment building in Boston.

This is a financial capital inflow and the transaction is in the current account.

d. The central bank of China purchases a U.S. Treasury Bond.

This is a financial capital inflow and the transaction is in the financial account.

e. A businessman is paid dividends on the stock from a foreign corporation that he owns.

This is a financial capital inflow and the transaction is in the financial account.

Diskind Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 6,700 units, but its actual level of activity was 6,650 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:
Data used in budgeting:

Fixed element
per month Variable element per unit
Revenue — $34.20
Direct labor $0 $6.20
Direct materials 0 13.80
Manufacturing overhead 37,000 1.70
Selling and administrative expenses 25,500 0.20
Total expenses
$62,500

$21.90
Actual results for October:

Revenue $228,900
Direct labor $41,130
Direct materials $93,235
Manufacturing overhead $43,500
Selling and administrative expenses $30,470
The direct materials in the flexible budget for October would be closest to:
A. $91,770
B. $93,965
C. $92,460
D. $93,055

Answers

Answer:

A. $91,770

Explanation:

The direct materials in the flexible budget for October:

Cost = Variable Cost + Fixed Cost

Variable Cost = Actual level of activity*Direct material Variable element per unit = 6,650 units * $13.80 = $91,770

Fixed Cost = $0

So, the direct materials in the flexible budget for October = $91,770 + 0 = $91,770.

Give an example of one good or service produced in the United States using the command model. Justify your example using research (where did you find this).

Answers

Answer:

An example of production under the command system in the United States is that of the production of roads and passable roads throughout the nation. In this case, it is the production of a public service, and as such it is controlled by the government in all stages of its production: from the identification of the need, through the tender, the construction authorization and the supervision of the results, everything is controlled by the government. This implies that individuals or private companies cannot by their own initiative create this type of road, but rather depend exclusively on the will of the government.

Self-Study Problem 10-1 Master Budget
Hansell Company’s management wants to prepare budgets for one of its products, Duraflex, for July 2019. The firm sells the product for $91 per unit and has the following expected sales (in units) for these months in 2019:
April May June July August September
3,900 6,500 6,600 8,200 9,200 5,800
The production process requires 4 pounds of Dura-1000 and 2 pounds of Flexplas. The firm’s policy is to maintain an ending inventory each month equal to 10% of the following month’s budgeted sales, but in no case less than 500 units. All materials inventories are to be maintained at 5% of the production needs for the next month, but not to exceed 1,000 pounds. The firm expects all inventories at the end of June to be within the guidelines. The purchases department expects the materials to cost $1.25 per pound and $5.00 per pound for Dura-1000 and Flexplas, respectively.
The production process requires direct labor at two skill levels. The rate for labor at the K102 level is $50 per hour and $20 per hour for the K175 level. The K102 level can process one batch of duraflex per hour; each batch consists of 100 units. The manufacturing of Duraflex also requires one-tenth of an hour of K175 workers’ time for each unit manufactured.
Required:
On the basis of the preceding data and projections, prepare the following budgets:
a. Sales budget for July (in dollars).
b. Production budget for July (in units).
c. Production budget for August (in units).
d. Direct materials purchases budget for July (in pounds).
e. Direct materials purchases budget for July (in dollars).
f. Direct manufacturing labor budget for July (in dollars).

Answers

Answer:

a.-Sales Budget (in dollars).      

     

Budgeted sales in units     6,000

Budgeted selling price per unit            $40  

Budgeted sales              $240,000  

     

     

b.  Production Budget (in units)  

 

     

Desired ending inventory (July 31)      

(The higher of 100 and 7,000 x 0,1)     700

Budgeted sales for July 2002    + 6,000

Total units needed for July 2002     6700

Beginning inventory (July 1)    -  

(The higher of 100 and 6,000 x 0,1)     600

Units to manufacture in July     6100

C.-Production Budget (in units)  

for August 2002  

Desired ending inventory (8,000 x 0,1)     800

Budgeted sales    + 7,000

Total units needed     7800

Beginning inventory    - 700

Units to manufacture in August     7100

d.-Direct Materials Purchases Budget (in pounds)      

For July 2002      

      Direct Materials  

     Dura-tOOO  Flexplas

     (4Ib. each)  (2Ib. each)

       

d Materials required for budgeted        

production (6,100 units of duraflex)     24,400    12,200  

Add: Target inventories (lower of 1,000 or 5 percent of        

August production needs)   1,420   710   1000   710  

Total materials requirements      25,400    12,910  

Less: Expected beginning inventories (lower of 1,000 orr 5 percent)                                                                                     .                                                      1,220   610   1000   610  

Direct materials to be purchased    24,400    12,300  

e.Direct Materials Purchases Budget (in dollars)        For July 2002        

     Budgeted  Expected  

     Purchases  Purchase  

     (Pounds)  Price per Unit  Total

Dura-lOOO      24,400    $1.25    $30,500  

Flexplas       12,300    $5.00    $61,500  

Budgeted purchases         $92,000  

Explanation:

The firm's policy is to maintain a minimum of 100 units of duraflex on hand at alltimes with no fewer than 10 percent of units on hand at the end of a period to meet              

the expected sales for the following month. 100     10%  

             

All materials inventories are to be maintained at 5 ercent of the production needs for the next month, 5%  but not to exceed 1000 pounds 1000                      

The firm expects all inventories at the end of June to be within the Guidelines.

The purchase department expects the materials to cost $1.25 per pound          $1.25 and $5.00 per pound of dura-lOOO and flexplas, respectively.          $5.00      

             

The production process requires direct labor at two skill levels.          rate per unit  The rate for labor at the K102 level is $50 per hour and           $50.00   $0.50 for the K175 level is $20 per hour.   $20.00      

The K102 level can process one batch of duraflex per hour;          1  each batch consists of 100 units. 100  No. of units in one hour rate per unit              

The manufacturing of duraflex also requires one-tenth of an hour of K175 workers' time 0.10  10.0   $2.00  for each unit manufactured.                          

Manufactured overhead is allocated at the rate of $200 per batch and $30 per $200.00  per batch DIirect labor-hour. $30.00  per direct labor-hour.    

       

Which of the following is punctuated correctly?
1) I need to know whether you are able to perform the following functions of the job, revising existing marketing materials, promoting the company at trade shows, and reaching potential customers through direct mail campaigns.
2) I need to know whether you are able to perform the following functions of the job; revising existing marketing materials, promoting the company at trade shows, and reaching potential customers through direct mail campaigns.
3) I need to know whether you are able to perform the following functions of the job: revising existing marketing materials, promoting the company at trade shows, and reaching potential customers through direct mail campaigns.

Answers

Answer:

The correctly punctuated is:

3) I need to know whether you are able to perform the following functions of the job: revising existing marketing materials, promoting the company at trade shows, and reaching potential customers through direct mail campaigns.

Explanation:

It has the colon at the right place, and the commas observe the standard Oxford Comma convention for making a list.  Both colon and comma are punctuation marks that can be used in making a list.  Usually, the colon is put after stating "the following," while commas separate one item from the other and are used when the items are three or more, with the last item started with a comma.

ICOT Industries issued 15 million of its $1 par common shares for $424 million on April 11, 2012. Legal, promotional, and accounting services necessary to effect the sale cost $2 million.
Required: Show the journal entry to record the issuance. How does this treatment compare to debt issue costs we talked about in chapter 14?

Answers

Answer:

Date     Account title and Explanation             Debit               Credit

Apr 11   Cash ($424 million - $2 million)     $422,000,000

                    Common stock                                                     $15,000,000

                     Paid in capital in excess of par value                $407,000,000

                      ($422,000,000 - $15,000,000)

              (To record the issue of common Stock)

Stocks A and B have the following data. Assuming the stock market is efficient and the stocks are in equilibrium, which of the following statements is correct?
A B
Price $25 $40
Expected growth 7% 9%
Expected return 10% 12%
A) The two stocks should have the same expected dividend
B) The two stocks could not be in equilibrium with the numbers given in the question
C) A's expected dividend is $0.50
D) B's expected dividend is $0.75
E) A's expected dividend is $0.75 and B's expected dividend is $1.20

Answers

Answer: E) A's expected dividend is $0.75 and B's expected dividend is $1.20

Explanation:

Using the Gordon growth model, you can calculate the expected dividend. The formula is:

Price = Expected dividend/ (expected return - expected growth)

Stock A expected dividend

25 = D/ (10% - 7%)

D = 25 * 3%

= $0.75

Stock B expected divided

40 = D / (12% - 9%)

D = 40 * 3%

= $1.20

Option A, C and B are therefore wrong.

Option E is correct.

A manager of a large retail firm is interested in knowing what the company's product costs are. Which of the following would be considered a product cost for the manager's company?
A) Direct materials.
B) Product design cost.
C) Office expenses.
D) Selling expenses.
E) Advertising expense.

Answers

Answer: Direct materials.

Explanation:

Product cost us referred to as a cost that used to incur production and used to make a particular product. The product cost. The product costs are made up of the direct labor, the direct materials, factory overhead and the production supplies.

Of the options given, the one that'll be considered a product cost for the manager's company will be Direct materials.

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