In March 2020, a bank saw a 6% drop in assets, a 30% drop in capital, but no change in liabilities.
(a) How much was the bank's leverage ratio
(defined as the equity multiplier) at the beginning of March
2020?
(b) How much was the bank's leverage ratio
(defined as the equity multiplier) at the end of March 2020?
(c) In April 2020, the bank's assets decreased
by 2%, while the bank's liabilities remained unchanged. What was
the percentage change in the bank's capital in April 2020?
In: Economics
Kingbird Company, a manufacturer of small tools, provided the
following information from its accounting records for the year
ended December 31, 2020.
| Inventory at December 31, 2020 (based on physical count of goods in Kingbird’s plant, at cost, on December 31, 2020) | $1,419,220 | |
| Accounts payable at December 31, 2020 | 1,295,400 | |
| Net sales (sales less sales returns) | 8,926,300 |
Additional information is as follows.
| 1. | Included in the physical count were tools billed to a customer f.o.b. shipping point on December 31, 2020. These tools had a cost of $32,100 and were billed at $41,100. The shipment was on Kingbird’s loading dock waiting to be picked up by the common carrier. | |
| 2. | Goods were in transit from a vendor to Kingbird on December 31, 2020. The invoice cost was $77,100, and the goods were shipped f.o.b. shipping point on December 29, 2020. | |
| 3. | Work in process inventory costing $31,100 was sent to an outside processor for plating on December 30, 2020. | |
| 4. | Tools returned by customers and held pending inspection in the returned goods area on December 31, 2020, were not included in the physical count. On January 8, 2021, the tools costing $33,100 were inspected and returned to inventory. Credit memos totaling $48,100 were issued to the customers on the same date. | |
| 5. | Tools shipped to a customer f.o.b. destination on December 26, 2020, were in transit at December 31, 2020, and had a cost of $27,100. Upon notification of receipt by the customer on January 2, 2021, Kingbird issued a sales invoice for $43,100. | |
| 6. | Goods, with an invoice cost of $28,100, received from a vendor at 5:00 p.m. on December 31, 2020, were recorded on a receiving report dated January 2, 2021. The goods were not included in the physical count, but the invoice was included in accounts payable at December 31, 2020. | |
| 7. | Goods received from a vendor on December 26, 2020, were included in the physical count. However, the related $57,100 vendor invoice was not included in accounts payable at December 31, 2020, because the accounts payable copy of the receiving report was lost. | |
| 8. | On January 3, 2021, a monthly freight bill in the amount of $9,100 was received. The bill specifically related to merchandise purchased in December 2020, one-half of which was still in the inventory at December 31, 2020. The freight charges were not included in either the inventory or in accounts payable at December 31, 2020. |
Prepare a schedule of adjustments as of December 31, 2020, to the
initial amounts per Kingbird’s accounting records. (If
an amount reduces the account balance then enter either with a
negative sign preceding the number, e.g. -15,000 or in parenthesis,
e.g. (15,000).)
|
KINGBIRD COMPANY |
||||||
|
Inventory |
Accounts Payable |
Net Sales |
||||
| Initial amounts | $1,419,220 | $1,295,400 | $8,926,300 | |||
| Adjustments: | ||||||
| 1. | ||||||
| 2. | ||||||
| 3. | ||||||
| 4. | ||||||
| 5. | ||||||
| 6. | ||||||
| 7. | ||||||
| 8. | ||||||
| Total adjustments | ||||||
| Adjusted amounts | $ | $ | $ | |||
In: Accounting
Sunland Company, a manufacturer of small tools, provided the
following information from its accounting records for the year
ended December 31, 2020.
| Inventory at December 31, 2020 (based on physical count of goods in Sunland’s plant, at cost, on December 31, 2020) | $1,467,950 | |
| Accounts payable at December 31, 2020 | 1,182,000 | |
| Net sales (sales less sales returns) | 7,990,400 |
Additional information is as follows.
| 1. | Included in the physical count were tools billed to a customer f.o.b. shipping point on December 31, 2020. These tools had a cost of $31,700 and were billed at $40,700. The shipment was on Sunland’s loading dock waiting to be picked up by the common carrier. | |
| 2. | Goods were in transit from a vendor to Sunland on December 31, 2020. The invoice cost was $76,700, and the goods were shipped f.o.b. shipping point on December 29, 2020. | |
| 3. | Work in process inventory costing $30,700 was sent to an outside processor for plating on December 30, 2020. | |
| 4. | Tools returned by customers and held pending inspection in the returned goods area on December 31, 2020, were not included in the physical count. On January 8, 2021, the tools costing $32,700 were inspected and returned to inventory. Credit memos totaling $47,700 were issued to the customers on the same date. | |
| 5. | Tools shipped to a customer f.o.b. destination on December 26, 2020, were in transit at December 31, 2020, and had a cost of $26,700. Upon notification of receipt by the customer on January 2, 2021, Sunland issued a sales invoice for $42,700. | |
| 6. | Goods, with an invoice cost of $27,700, received from a vendor at 5:00 p.m. on December 31, 2020, were recorded on a receiving report dated January 2, 2021. The goods were not included in the physical count, but the invoice was included in accounts payable at December 31, 2020. | |
| 7. | Goods received from a vendor on December 26, 2020, were included in the physical count. However, the related $56,700 vendor invoice was not included in accounts payable at December 31, 2020, because the accounts payable copy of the receiving report was lost. | |
| 8. | On January 3, 2021, a monthly freight bill in the amount of $8,700 was received. The bill specifically related to merchandise purchased in December 2020, one-half of which was still in the inventory at December 31, 2020. The freight charges were not included in either the inventory or in accounts payable at December 31, 2020. |
Prepare a schedule of adjustments as of December 31, 2020, to the
initial amounts per Sunland’s accounting records. (If
an amount reduces the account balance then enter either with a
negative sign preceding the number, e.g. -15,000 or in parenthesis,
e.g. (15,000).)
|
SUNLAND COMPANY |
||||||
|
Inventory |
Accounts Payable |
Net Sales |
||||
| Initial amounts | $1,467,950 | $1,182,000 | $7,990,400 | |||
| Adjustments: | ||||||
| 1. | ||||||
| 2. | ||||||
| 3. | ||||||
| 4. | ||||||
| 5. | ||||||
| 6. | ||||||
| 7. | ||||||
| 8. | ||||||
| Total adjustments | ||||||
| Adjusted amounts | $ | $ | $ | |||
In: Accounting
Calculate the present worth of all costs for a newly acquired machine with an initial cost of $28,000, no trade-in value, a life of 14 years, and an annual operating cost of $17,000 for the first 5 years, increasing by 10% per year thereafter. Use an interest rate of 10% per year.
The present worth of all costs for a newly acquired machine is determined to be
In: Economics
The Wall Street Journal presented data suggesting that United Airlines was not covering its costs on flights from San Francisco to Washington D.C,. The article quoted analysts saying that United should discontinue this service. The costs per flight included the costs of fuel, pilots, attendants, food, etc. used on the flights. They also included shared costs associated with running the hubs at the two airports, such as ticket agents, building charges, baggage handlers, gate charges, etc. Suppose that the revenue collected on the typical United flight from San Francisco to Washington does not cover the costs. Does this fact imply that United should discontinue these flights? What could we learn from this case of study?
PLEASE ANSWER BELOW QUESTIONS...…………………………………. THANKS
Hints: 1) discuss the differences between fixed costs and variable costs and how they could affect our decision-making.
2) How would consumers react if United airlines discontinued the service?
In: Economics
Stock Dividends
On August 1, 2020, Perkins declares a 15% Common Stock dividend. The market (fair) value of the stock on August 1, 2020, is $30 per share. August 15, 2020, is the date of record. The stock dividend will be distributed on August 31, 2020. Instructions: (a) Prepare all required journal entries for August 1, 15, and 31, 2020. If no journal entry is required, state NA. (b) Assume that Perkins declares a 30% Common Stock dividend instead of a 15% stock dividend. Prepare all required journal entries for August 1, 15, and 31, 2020. If no journal entry is required, state NA
In: Accounting
On January 2, 2020, Crane Company began construction of a new
citrus processing plant. The automated plant was finished and ready
for use on September 30, 2021. Expenditures for the construction
were as follows:
| January 2, 2020 | $ 604000 |
| September 1, 2020 | 1809600 |
| December 31, 2020 | 1809600 |
| March 31, 2021 | 1809600 |
| September 30, 2021 | 1196000 |
Crane Company borrowed $3240000 on a construction loan at 12%
interest on January 2, 2020. This loan was outstanding during the
construction period. The company also had $12480000 in 9% bonds
outstanding in 2020 and 2021.
The interest capitalized for 2021 was:
$355107
$84676
$291600
$376276
In: Accounting
Prepare a research paper of 3-4 pages in length
From the data set and the research question that has been presented, prepare a research paper in the following format.
1. Your introduction
3. Test Methodology Used
4. Analysis (meaning) of the data
5. Outcomes
6. Summary.
Research question:
Why has the number of Covid- 19 (Corona Virus) cases continued to be on the increase in India despite massive sensitization by the government?
|
Date |
location |
new_cases |
new_deaths |
total_cases |
total_deaths |
weekly_cases |
weekly_deaths |
biweekly_cases |
biweekly_deaths |
|
2020-09-01 |
India |
69921 |
759 |
3691166 |
65228 |
523843 |
6838 |
988424 |
13431 |
|
2020-09-02 |
India |
78357 |
1105 |
3769523 |
66333 |
535049 |
6884 |
1002250 |
13444 |
|
2020-09-03 |
India |
83883 |
1043 |
3853406 |
67376 |
543172 |
6904 |
1016481 |
13510 |
|
2020-09-04 |
India |
83341 |
1096 |
3936747 |
68472 |
549247 |
6943 |
1030924 |
13623 |
|
2020-09-05 |
India |
86432 |
1089 |
4023179 |
69561 |
559207 |
7011 |
1047478 |
13767 |
|
2020-09-06 |
India |
90632 |
1065 |
4113811 |
70626 |
571078 |
7128 |
1068871 |
13920 |
|
2020-09-07 |
India |
90802 |
1016 |
4204613 |
71642 |
583368 |
7173 |
1098265 |
14100 |
|
2020-09-08 |
India |
75809 |
1133 |
4280422 |
72775 |
589256 |
7547 |
1113099 |
14385 |
|
2020-09-09 |
India |
89706 |
1115 |
4370128 |
73890 |
600605 |
7557 |
1135654 |
14441 |
|
2020-09-10 |
India |
95735 |
1172 |
4465863 |
75062 |
612457 |
7686 |
1155629 |
14590 |
|
2020-09-11 |
India |
96551 |
1209 |
4562414 |
76271 |
625667 |
7799 |
1174914 |
14742 |
|
2020-09-12 |
India |
97570 |
1201 |
4659984 |
77472 |
636805 |
7911 |
1196012 |
14922 |
|
2020-09-13 |
India |
94372 |
1114 |
4754356 |
78586 |
640545 |
7960 |
1211623 |
15088 |
|
2020-09-14 |
India |
92071 |
1136 |
4846427 |
79722 |
641814 |
8080 |
1225182 |
15253 |
|
2020-09-15 |
India |
83809 |
1054 |
4930236 |
80776 |
649814 |
8001 |
1239070 |
15548 |
|
2020-09-16 |
India |
90123 |
1290 |
5020359 |
82066 |
650231 |
8176 |
1250836 |
15733 |
|
2020-09-17 |
India |
97894 |
1132 |
5118253 |
83198 |
652390 |
8136 |
1264847 |
15822 |
In: Accounting
Trade Barriers and Exchange Rates. This question is meant to illustrate how taris and trade costs can inuence exchange rates. Suppose there is a single good that's traded in both the United States and Europe. Let pDt denote the price, in dollars, of the good in the United States; let pFt denote the price, in euros, of the good in Europe. Let Et denote the exchange rate, in euros per dollar. American consumers can purchase goods from either a foreign supplier or a domestic supplier. There are two wrinkles, one related to policy, and one related to technology.
The U.S. government levies a tax on goods imported from Europe. To be precise, if an American brings X units of goods into the country from Europe, then the person needs to pay the U.S. government the market value of τ × X units of goods. American consumers do not have to pay taxes on goods purchased from American suppliers.
We consider the cost of moving goods across borders. Assume that an American importer loses a fraction ι of goods in transit. That is, if you load X units of goods onto your boat in Rotterdam, then i × X units fall on the boat, leaving you with (1 − i) × X units of goods by the time the boat arrives in New York. (That's a stylized story about transit costs, but it's equivalent to assuming that the cost of shipping is proportional to the market value of goods being shipped.) (a) How much does it cost, in euros, for an American to buy one unit of goods from a European supplier? This is the total cost, including taxes and transport costs, so your answer should include τ and i. (b) How much does it cost, in dollars, for an American to acquire the euros necessary to purchase one unit of goods from a European supplier? (c) What does the principle of no arbitrage imply about the relationship between the cost of goods from European suppliers and the cost of goods from American suppliers? Provide a brief (one sentence) answer in words, and provide an equation. (d) Does the dollar appreciate or depreciate if the U.S. government increases the tariff τ? Provide a brief (one or two sentence) explanation. (e) Does the dollar appreciate or depreciate if an improvement in shipping technology causes ι to fall? Provide a brief (one or two sentence) explanation.
In: Economics
Wine Price Study Data
|
You area an statistician tasked with the challenge of proving that the nation of Remulak is selling its wine in the United States at a price below that which is charged domestically in Remulak. The issue is that the Remulak government is coordinating predatory pricing by subsidizing a lower price charged in the US in order to stimulate export demand for their most prolific product. The data available has been collected from random samples of single bottles of Remulak wine sold in both the United States and in Remulak. Currency exchange experts have adjusted the price charged in Remulak to US Dollars reflecting both the exchange rate differences and differences in real prices between the two nations. You should prepare confidence intervals of the difference of the two pricing levels at both the 95% and 99 % confidence levels. Further, you should conduct an appropriate hypothesis test for a difference in price of $1.70 per bottle lower in the US, which agricultural economists have determined is the minimum difference required to significantly induce increases in US demand for Remulak wine. Please include your math calculations.
In: Statistics and Probability