A nation's economy fluctuates instead of growing at a steady pace every year. These fluctuations are generally referred to as the business cycle. Describe the four different phases of the business cycle.
In: Economics
A first-year accounting student is confused by a statement made in a recent class. The instructor stated that assets listened in the balance sheet of IBM Corporation include computers that are classified as current assets as well as computers that classified as long-term (noncurrent) assets. In addition, the instructor stated that investments in equity securities of other corporations could be classified in the balance sheet as either current or long-term assets. Explain to the student the distinction between current and long-term assets pertaining to IBM computers and the investments in equity securities.
In: Accounting
Find the lifeExp in Europe across the years. Which year is the highest lifeExp in Europe?, in R command codes
In: Statistics and Probability
In 1996, 6% of people used cocaine. This year, a company wishes to use their employment drug screening to test a claim. They take a simple random sample of 2045 job applicants and find that 118 individuals fail the drug test for cocaine. They want to test the claim that the proportion of the population failing the test is lower than 6%. Use .005 for the significance level. Round to three decimal places where appropriate. Hypotheses: H o : p = 6 % H 1 : p < 6 % Test Statistic: z = Critical Value: z = p-value: Conclusion About the Null: Reject the null hypothesis Fail to reject the null hypothesis Conclusion About the Claim: There is sufficient evidence to support the claim that the proportion of the population failing the test is lower than 6% There is NOT sufficient evidence to support the claim that the proportion of the population failing the test is lower than 6% There is sufficient evidence to warrant rejection of the claim that the proportion of the population failing the test is lower than 6% There is NOT sufficient evidence to warrant rejection of the claim that the proportion of the population failing the test is lower than 6% Do the results of this hypothesis test suggest that fewer people use cocaine? Why or why not?
In: Statistics and Probability
Suppose a ten-year, $ 1,000 bond with an 8.1 % coupon rate and semiannual coupons is trading for $ 1, 035.42.
a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? (round to two decimal places)
b. If the bond's yield to maturity changes to 9.6 % APR, what will be the bond's price? (round to the nearest cent)
In: Finance
You are looking at a one-year loan of $16,000. The interest rate
is quoted as 11 percent plus two points. A point on a loan
is simply 1 percent (one percentage point) of the loan amount.
Quotes similar to this one are common with home mortgages. The
interest rate quotation in this example requires the borrower to
pay two points to the lender up front and repay the loan later with
11 percent interest.
What rate would you actually be paying here?
In: Finance
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You are looking at a one-year loan of $16,500. The interest rate is quoted as 8.7 percent plus two points. A point on a loan is 1 percent (one percentage point) of the loan amount. Quotes similar to this one are common with home mortgages. The interest rate quotation in this example requires the borrower to pay two points to the lender up front and repay the loan later with 8.7 percent interest. |
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What rate would you actually be paying here? show how to calculate using financial calculator |
In: Finance
Determine the FW of the following engineering project when the MARRis 15% per year. Is the Project acceptable? Draw a cash flow diagram.
Investment = $10,000
Expected life = 5 years
Salvage value =-$1,000
Annual receipts = $8,000
Annual expenses = $4,000
In: Economics
The following selected transactions apply to Topeca Supply for November and December Year 1. November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month.
Cash sales for November Year 1 were $65,000 plus sales tax of 7 percent.
Topeca Supply paid the November sales tax to the state agency on December 10, Year 1.
Cash sales for December Year 1 were $78,500 plus sales tax of 7 percent.
Required
a. Show the effect of the above transactions on a
statements model like the one shown as follows. In the Statement of
Cash Flows column, indicate whether the item is an operating
activity (OA), an investing activity (IA), or a financing activity
(FA). The letters NA indicate that an element is not affected by
the event. (Enter any decreases to account balances and
cash outflows with a minus sign.)
| TOPECA SUPPLY | ||||||||||||||
| Horizontal Statements Model | ||||||||||||||
| Event | Assets | = | Liabilities | + | Stockholder's Equity | Income Statement | Statement of Cash Flows | |||||||
| Cash | = | Sales Tax Payable | + | Common Stock | + | Retained Earnings | Revenue | – | Expense | = | Net Income | |||
| 1. | = | + | + | – | = | |||||||||
| 2. | = | + | + | – | = | |||||||||
| 3. | = | + | + | – | = | |||||||||
b. What was the total amount of sales tax paid in Year 1?
| Sales tax paid |
c. What was the total amount of sales tax collected in Year 1?
| Sales tax collected |
d. What is the amount of the sales tax liability as of December 31, Year 1?
| Sales tax liability |
e. On which financial statement will the sales tax liability appear?
| The liability is shown on the. |
In: Accounting
Since the SUTA rates changes are made at the end of each year, the available 2019 rates were used for FUTA and SUTA.
Note: For this textbook edition the rate 0.6% was used for the FUTA tax rate for employers.
Example 5-5
Sutcliffe Company had taxable wages totaling $87,500. During the year, the company paid some of its state contributions after the January 31 cutoff of the following year. The penalty for tardiness is shown in the following calculation of the firm's net FUTA tax:
| Amount of gross FUTA tax ($87,500 × 6.0%) | $5,250.00 | ||||||
| State taxable wages | $87,500 | ||||||
| Sutcliffe's SUTA tax rate | × 5.4% | ||||||
| Sutcliffe's SUTA tax | $ 4,725 | ||||||
| Breakdown of Sutcliffe's SUTA tax payments: | |||||||
| Before 1/31 cutoff—$3,000 × 100% credit | (3,000.00) | ||||||
| After 1/31 cutoff—$1,725 × 90% credit | (1,552.50) | ||||||
| Amount of net FUTA tax | $ 697.50 | ||||||
| If the company had made timely payments of its state contributions, the amount of its net FUTA tax would have been reduced to $525, for a savings of $172.50, as follows: | |||||||
| Amount of gross FUTA tax ($87,500 × 6.0%) | $5,250.00 | ||||||
| Total taxable wages | $87,500 | ||||||
| Credit against tax | × 5.4% | ||||||
| Total credit | 4,725.00 | ||||||
| Amount of net FUTA tax ($87,500 × 0.6%) | $ 525.00 | ||||||
| $697.50 − $525.00 = $172.50 savings | |||||||
Example 5-6
Yeldon Company has a $70,000 federal and state taxable payroll and has earned a reduced state tax rate of 4 percent. If none of its state tax payments are timely, the FUTA tax calculation is as follows:
| Gross FUTA tax ($70,000 × 0.060) | $4,200 | ||
| Less 90% credit for state taxes paid late ($70,000 × 0.04 × 90%) | $2,520 | ||
| Less additional credit for state tax if rate were 5.4% [$70,000 × (0.054 − 0.04)] | 980 | ||
| Total credit | 3,500 | ||
| Net FUTA tax | $ 700 |
If Yeldon Company had made its SUTA payments before the due date of Form 940, the credit for the payments (4%) and the additional credit (1.4%) would have provided a total credit of $3,780 and a FUTA tax savings of $280.
Peroni Company paid wages of $170,500 this year. Of this amount, $124,000 was taxable for net FUTA and SUTA purposes. The state's contribution tax rate is 3.1% for Peroni Company. Due to cash flow problems, the company did not make any SUTA payments until after the Form 940 filing date. Compute the following; round your answers to the nearest cent.
a. Amount of credit the company would receive
against the FUTA tax for its SUTA contributions
$__________
b. Amount that Peroni Company would pay to the
federal government for its FUTA tax
$________
c. Amount that the company lost because of its
late payments
$_______
In: Accounting