The theory of the term structure of interest rates, which suggests that long-term rates are determined by the average of short-term rates expected over the time that a long-term bond is outstanding, is the

Answers

Answer 1

Answer:

Expectations Theory

Explanation:

Victor Vroom's Expectancy Theory deals with motivation and management. Vroom's theory assumes that behaviour is a result of conscious choices among alternatives. The goal of options is to maximize pleasure and minimize suffering. Along with Edouard Lawler and Lyman Porter, Vroom suggested that the relationship between people's behaviour at work and their goals was not as straightforward as other scientists had first imagined it. Vroom realized that employee performance is based on different factors such as personality, skills, knowledge, experience and abilities.

Expectation theory states that people have different sets of goals and can be motivated if they have certain expectations.

EXPECTATIONS OF THE THEORY OF EXPECTATIONS include the following:

There is a positive correlation between effort and performance.The favourable performance will result in a desirable reward.The reward will satisfy a critical need.The desire to satisfy the need is strong enough to make an effort meaningful.

Related Questions

Nash Company reported 2020 net income of $152,900. During 2020, accounts receivable increased by $17,160 and accounts payable increased by $9,582. Depreciation expense was $48,000. Prepare the cash flows from operating activities section of the statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) NASH COMPANY Cash Flow Statement choose the accounting period select an opening section name select an item $enter a dollar amount Adjustments to reconcile net income to select a subsection name select an item $enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount enter a subtotal of the adjustments select a closing section name $enter a total amount for the section

Answers

Answer:

$112,478

Explanation:

Cash flows from operating activities  

Net income                                                      $152,900

Adjustments to reconcile net income

Depreciation expense                 $48,000

Increase in accounts payable     $9,582

Increase in accounts receivable $ (17,160)      $40,422  

Net cash provided by operating activities  $112,478

The Josey Company uses the weighted average method. The beginning work in process consists of 6,000 units (100% completed as to materials and 50% complete as to conversion costs). The number of units completed was 130,000. The ending work in process consists of 10,000 units (100% complete as to materials and 20% complete as to conversion costs). What are the equivalent units of production for conversion costs

Answers

Answer:

Total equivalent units= 135,000 units

Explanation:

The weighted average method blends the costs and units of the previous period with the costs and units of the current period.

Conversion costs:

Units completed and transferred out= 133,000 units

Ending WIP= 10,000*0.2= 2,000 units

Total equivalent units= 135,000 units

Which of the following statements are true? (Check all that apply.) A. Accounting systems generally consist of several subsystems, each designed to process a particular type of transaction. B. Most mobile devices do not need to be tracked and monitored as their loss represents minimal exposure. C. Supervision is especially important in organizations without responsibility reporting or an adequate segregation of duties. D. All system transactions and activities should be recorded in a log that indicates who accessed what data and when. E. Customer relationship management (CRM) software includes budgets, schedules, and standard costs; reports comparing actual and planned performance; and procedures for investigating and correcting significant variances.

Answers

Answer:

A. Accounting systems generally consist of several subsystems, each designed to process a particular type of transaction.

C. Supervision is especially important in organizations without responsibility reporting or adequate segregation of duties

Explanation:

A. Indeed, because the accounting system consists of several subsystems, such as data systems, the workforce, the procedures and instructions, and software with each designed to process a particular type of transaction.

B. When an organization doesn't assign its staff their specific responsibilities it then becomes especially important to supervise the employees, because failing to do so may result in low worker productivity.

If a firm averages $2,000 in daily credit sales and offers 60-day terms, the average accounts receivable balance will be $120,000.
a. True
b. False

Answers

Answer:

a. True

Explanation:

The computation of the average accounts receivable balance is shown below:

= Daily credit sales × day terms

= $2,000 × 60 days terms

= $120,000

We simply multiplied the average amount with the day term so that the average account receivable balance could come

Hence, the given statement is true

Therefore the correct option is a.

The average price for regular gasoline at U.S. pumps fell almost 4 cents in March to​ $2.50 a gallon. The price of crude oil dropped to​ $43.46 per barrel on March​ 17, the lowest since March 2009.

Answers

Answer: C. lower the cost of producing gasoline and increase the supply of gasoline

Explanation:

Gasoline is derived from the distillation of crude oil which means that Crude oil is the main raw material in the production of gasoline. This means that if crude oil sees a reduction in price, input costs for gasoline will decrease as well.

Producers of gasoline will take advantage of this to buy more crude oil and therefore process and make more gasoline which will increase the supply of gasoline in the market and reduce its price.

Amortization Expense For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record the expense: A patent with a 10-year remaining legal life was purchased for $350,000. The patent will be commercially exploitable for another eight years. A patent was acquired on a device designed by a production worker. Although the cost of the patent to date consisted of $52,300 in legal fees for handling the patent application, the patent should be commercially valuable during its entire remaining legal life of 10 years and is currently worth $400,000. A franchise granting exclusive distribution rights for a new solar water heater within a three-state area for five years was obtained at a cost of $70,000. Satisfactory sales performance over the five years permits renewal of the franchise for another three years (at an additional cost determined at renewal). General Journal Ref. Description Debit Credit a. Answer Amortization Expense - Patents Answer 43,750 Answer Answer Patents Answer Answer 43,750 To record patent amortization. b. Answer Amortization Expense - Patents Answer 5,230 Answer Answer Patents Answer Answer 5,230 To record patent amortization. c. Answer Amortization Expense - Patents Answer 14,000 Answer Answer Patents Answer Answer 14,000 To record franchise amortization.

Answers

Answer:

A. Dr Amortization expense $43,750

Cr Patents $43,750

B. Dr Amortization expense $5,230

Cr Patents $5,230

C. Dr Amortization expense $14,000

Cr Franchises $14,000

Explanation:

Preparation of Journal entries

A. Dr Amortization expense $43,750

($350,000÷8 years = $43,750)

Cr Patents $43,750

(To record paten Amortization expense)

B. Dr Amortization expense $5,230

($52,300÷10 years = $5,230)

Cr Patents $5,230

(To record patent Amortization expense)

C. Dr Amortization expense $14,000

($70,000÷5 years = $14,000)

Cr Franchises $14,000

(To record Franchises Amortization expense)

The journal entries for each transaction is given below.

Journal entries;

A)

Amortization expense $43750 ( $350000/8 )

            Patent  $43750

Here expense is debited as it increased the expense and credited the patent as it decreased the assets.

B)

Amortization expense $5230 ( $52300/10 )

              Patents  $5230

Here only the original cost of patent should  be amortized

Here expense is debited as it increased the expense and credited the patent as it decreased the assets.

C)

Amortization expense $14000  ( $70000/5)

                 Franchise  $14000

Here expense is debited as it increased the expense and credited the franchise as it decreased the assets.

Learn more about journal entry here: https://brainly.com/question/24519299

Jake owns a company called Boat Builders, LLC and one evening he took several of his employees out after work to a bar. After eating and drinking for several hours Jake invited them back to the Boat Builders premises so he and some of the employees could show off a boat they’d been working on. After arriving at Boat Builders they all continued to drink and two of the employees, Tyler and Mark, got into an argument. When Tyler went to use the bathroom Mark attacked him from behind causing him to lose consciousness and break a tooth. Mark made light of it but gave Jake a menacing look so Jake dropped it and went to check on Tyler. Tyler sat up and asked what happened and Jake told him that Mark had attacked him from behind. About an hour passed by during which time Jake went out to his car and got his phone so he could play music for everyone. After an hour, Tyler and Mark began to argue again and they walked outside into the Boat Builders parking lot where Mark attacked Tyler again. Mark left and was later arrested for aggravated battery. Tyler regained consciousness after 10 minutes and drove home even though he was badly injured.
Does Tyler have a negligence claim against Boat Builders? Why or why not? A complete answer will be at least 5 sentences and mention critical facts.

Answers

Answer:

Yes, because Boat Builders, LLC failed to exercise a reasonable standard of care at their premises.

Explanation:

Remember, we are told, "Jake... invited them back to the Boat Builders premises," meaning they (Boat Bilders, LLC) had a duty of care responsibility toward all of his employees present.

Note we are told, "Mark made light of it but gave Jake a menacing look so Jake dropped it," this was a moment that shows Jake's negligence because as the owner of Boat Builders he had a duty of care to ensure no one is hurt without their own fault within their premises (which included their "parking lot").  

We sell to a customer paying with Visa and the fee is 2%. Part of the transaction would include a debit to:

Answers

Answer:

there are no available options, but the complete journal entry to record a credit card sale is:

Dr Cash account 98% of sale

Dr Credit card fees 2% of sale

    Cr Sales revenue 100% of sale

Explanation:

Since VISA payments are automatic, you can debit cash directly. There is no need to debit accounts receivable and then once the payment is confirmed, debit cash. Some credit cards do not pay automatically, and in those cases you should debit accounts receivable.

Instead of credit card fees, some people use credit card discount, or credit card expense, but all these accounts are basically the same. They are all expense accounts.

The Lexington Partnership has a depreciable business asset (personal property) that it originally purchased for $81,800. The asset now has an adjusted basis of $49,080 and a market value of $98,160. The partnership has no other potential hot assets. Ambroz sells his 25% interest in the partnership. a. How much is Lexington's depreciation recapture potential

Answers

Answer:

Question b: How much ordinary income does Ambroz recognize when he sells this partnership interest?

a. Since the market value is more than its original cost, therefore, the completed depreciation can be potentially recaptured

Lexington's depreciation recapture potential = $81,800 - $49,080

Lexington's depreciation recapture potential = $32,720

b. Ambroz recognizes Ordinary income of: $32,720*25% = $8180

Cycle Time and Velocity In the first quarter of operations, a manufacturing cell produced 85,000 stereo speakers, using 20,000 production hours. In the second quarter, the cycle time was 10 minutes per unit with the same number of production hours as were used in the first quarter. Required: 1. Compute the velocity (per hour) for the first quarter. If required, round your answer to two decimal places. fill in the blank 1 units per hour 2. Compute the cycle time for the first quarter (minutes per unit produced). If required, round your answer to two decimal places. fill in the blank 2 minutes per unit 3. How many units were produced in the second quarter

Answers

Answer:

1. Velocity per hour= 4.35 units per hour

2. Cycle time=0.24

3. Units produced= 120,000 units

Explanation:

1.Computation for the velocity (per hour) for the first quarter.

Velocity per hour=85,000 units / 20,000 hour

Velocity per hour= 4.35 units per hour

2.Compution for the cycle time for the Frst quarter

Cycle time =20,000 hour/85,000 units

Cycle time=0.24

3. Calculation for How many units were produced in the second quarter

Units produced =60 minutes / 10 minutes per units * 20,000 Hours

Units produced= 120,000 units

At the beginning of the year, Bryers Incorporated reports inventory of $6,100. During the year, the company purchases additional inventory for $21,100. At the end of the year, the cost of inventory remaining is $8,100. Calculate cost of goods sold for the year.

Answers

Answer:

$19,100

Explanation:

The cost of goods sold refers to the actual cost, expended in the manufacturing of goods or products that is produced and then sold in a given period. It comprises all direct costs expended in the manufacturing of goods.

With regards to the above, the cost of goods sold for the year is computed as;

= $6,100 beginning inventory + $21,100 purchases for the period - $8,100 closing inventory

= $19,100

Therefore, the cost of goods sold for the year is $19,100

Delphi Company uses job-order costing. It applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, Delphi estimated that it would work 37,000 machine-hours and incur $222,000 in manufacturing overhead cost. The following transactions were recorded for the year: a. Raw materials were issued for use in production, $367,000 ($345,000 direct and $22,000 indirect). b. Employee costs were incurred: direct labor, $309,000; indirect labor, $44,000; and administrative salaries, $155,000. c. Factory depreciation, $175,000. d. Selling costs, $140,000. e. Manufacture overhead was applied to jobs. The actual machine hours for the year were 35,000 hours. a. Compute the total manufacturing overhead cost applied to jobs during the year.

Answers

Answer:

Allocated MOH= $210,000

Explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 222,000/37,000

Predetermined manufacturing overhead rate= $6 per machine hour

Now, we cal allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 6*35,000

Allocated MOH= $210,000

briefly explain goals of business

Answers

The goals of business ‍ are listening to your team and doing what’s right to suit both you and your team
The primary purpose of a business is to maximize profits for its owners or stakeholders while maintaining corporate social responsibility. Also to increase the total income of your company by 10% over the next two years, reduce production expenses by 5% over the next three years, increase overall brand awareness, and increase your company's share in its market.

In 2020, Elbert Corporation had net cash provided by operating activities of $531,000, net cash used by investing activities of $963,000, and net cash provided by financing activities of $585,000. At January 1, 2020, the cash balance was $333,000. Compute December 31, 2020, cash.

Answers

Answer:

$486,000

Explanation:

Elbert Corporation

Cashflow Statement for the year ended December 31, 2020.

Cash flow from Operating Activities

Net cash provided by operating activities                $531,000

Cash flow from Investing Activities

Net cash used by investing activities                      ($963,000)

Cash flow from Financing Activities

Net cash provided by financing activities               $585,000

Movement during the year                                        $153,000

Beginning Cash and Cash Equivalent                      $333,000

Ending Cash and Cash Equivalent                           $486,000

Therefore, December 31, 2020, cash balance is $486,000

Creswell Corporation's fixed monthly expenses are $30,000 and its contribution margin ratio is 63%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are $92,000?
a. $27,960.b. $62,000.c. $57,960.d. $4,040.

Answers

Answer:

Net income= $27,960

Explanation:

Giving the following information:

Fixed costs= $30,000

contribution margin ratio= 0.63

Sales= $92,000

First, we need to calculate the total contribution margin:

Total contribution margin= 92,000*0.63= 57,960

Now, the net income:

Net income= 57,960 - 30,000

Net income= $27,960

Last year Janet purchased a $1,000 face value corporate bond with an 10% annual coupon rate and a 20-year maturity. At the time of the purchase, it had an expected yield to maturity of 13.84%. If Janet sold the bond today for $994.79, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places.

Answers

Answer:

33.8%

Explanation:

Purchase price of the bond will be computed using the formula below.

[tex]p=\frac{A(1-(1+r)^{-n} }{r} + \frac{F}{(1+r)^{n} }[/tex]

where A = annual coupon = 10% * 1000 = 100

r = yield to maturity = 0.1384

n = time to maturity = 20 years

F = face value = $1,000

p = price of the bond.

[tex]p=\frac{100(1-1.1384^{-20} }{0.1384} + \frac{1,000}{(1.1384)^{20} }\\p = 668.4721 + 74.8346\\p = 743.31[/tex]

Therefore, if Janet sold the bond a year later for $994.79,

the profit on sale = [tex]\frac{994.79}{743.31} -1=0.3383[/tex]

= 33.8% profit (rate of return).

Direct Labor Cost Budget Pasadena Candle Inc. budgeted production of 33,000 candles for January. Each candle requires molding. Assume that two minutes are required to mold each candle. If molding labor costs $9.75 per hour, determine the direct labor cost budget for January. Round total direct labor cost to the nearest dollar, if required. Pasadena Candle Inc. Direct Labor Cost Budget For the Month Ending January 31 Hours required for assembly: Candles min. Convert minutes to hours ÷ min. Molding hours hrs. Hourly rate × $ Total direct labor cost $

Answers

Answer:

Total direct labor cost = $16,087.50

Explanation:

Production = 33,000 candles

Minute per candle = 3 minutes

Total minute to produce 33,000 Candle = 33,000 candles * 3 minutes = 99,000 Minutes

Total hours for production = 99,000 / 60 minutes = 1,650 hours

Hence, molding hours = 1,650 hours

Total direct labor cost = Molding hours * Molding labor costs per hour

Total direct labor cost = 1,650 hours * $9.75

Total direct labor cost = $16,087.50

Prompt

What is matrix organization?

<< Read Less

Answers

Answer:

An organization with more than 1 leader is a matrix organization

Explanation:

A matrix organization can be defined as an organization that has more than one form of management. In this organization structure, there is more than 1 leader or supervisor. The individuals here work across various projects. Organizations that have different product lines and also services use this kind of structure. It gives the organization more flexibility.

Some organizations take collaboration so seriously that they are changing the traditional office layout and replacing cubicles with low walls or no walls between desks. Many are creating small, informal areas designed to encourage spontaneous discussion and problem-solving. This is an example of which concept

Answers

Question options:

a. Cooperative phalanxes

b. Collaborative groups

c. Cooperative posses

d. Collaborative teams

Answer:

d. Collaborative teams

Explanation:

The above is examplary of Collaborative teams. Collaborative teams are groups of individuals in the workplace that share a common goal and then work together and share ideas, knowledge and skills to accomplish these goals. Companies are increasingly encouraging collaborative teams by creating an atmosphere whereby their employees are able to communicate easily to share ideas and work fast and spontaneously towards working out solutions. Apart from physical barriers that might inhibit smooth communication for collaborative teams in the office, companies have also started increasingly investing into virtual teams whereby an employee is able to communicate, share ideas and work together in a collaborative fashion with a colleague in another location.

Hatch Corporation's target capital structure is 40% debt, 50% common stock, and 10% preferred stock. Information regarding the company's cost of capital can be summarized as follows: The company's bonds have a nominal yield to maturity of 7%. The company's preferred stock sells for $40 a share and pays an annual dividend of $4 a share. The company's common stock sells for $25 a share and is expected to pay a dividend of $2 a share at the end of the year (i.e., D1 = $2.00). The dividend is expected to grow at a constant rate of 7% a year. The company has no retained earnings. The company's tax rate is 40%. What is the company's weighted average cost of capital (WACC)?

Answers

Answer:

WACC = 0.1018 or 10.18%

Explanation:

The WACC or Weighted average cost of capital is the cost of a firm's capital structure that can be made of one or all of the following components namely debt, preferred stock and common equity.

The formula to calculate is as follows,

WACC = wD * tD * (1- tax rate)  +  wP * rP  +  wE * rE

Where,

w represents the weight of each component in capital structurer represents the cost of each componentD, P and E represents debt, preferred stock and Common Equity respectively.

Cost of bond = 7%

Cost of preferred stock = 4/40  =  10%

Cost of Common Equity :

25 = 2  / (r - 0.07)

25 * (r - 0.07) = 2

25r - 1.75 = 2

25r = 2 + 1.75

r = 3.75 / 25

r = 0.15 or 15%

WACC = 0.4 * 0.07 * (1 - 0.4)  +  0.1 * 0.1  +  0.5 * 0.15

WACC = 0.1018 or 10.18%

you can acquire an existing business for $2 million. You are uncertain about future demand. There is a 40% chance of high demand, in which case the present value of the business will be $3 million. There is a 25% chance of moderate demand, and the associated present value is $1.5 million. Finally, there is a 35% chance of low demand, in which case the present value is $1 million. Draw a decision tree for this problem. What is the expected net present value of the business

Answers

Answer:

Expected net present value of the project = $1,925,000

Explanation:

The cost of acquiring business = $2,000,000

Expected net present value of the project =  High demand NPV*High demand percent + Moderate demand NPV*Moderate demand percent + Low demand NPV*Low demand percent

Expected net present value of the project = $3,000,000 *40% + $1,500,000*25% + $1,000,000*35%

Expected net present value of the project = $1,200,000 + $375,000 + $350,000

Expected net present value of the project = $1,925,000

Conclusion: The cost of acquiring business is more than expected net present value, it is advisable not to invest in the project.

Yoshi Co.'s 12/31/2020 inventory on a FIFO basis was $980,000. The following information is available: Estimated selling price is $1,020,000; Estimated cost of disposal is $40,000; Normal profit margin is $120,000; and Current replacement cost is $900,000. At 12/31/2020, assuming Yoshi uses the loss method, what amount of loss should Yoshi record from applying LCM

Answers

Answer:

Yoshi Co.

The amount of loss that Yoshi Co. should record from applying LCM (the lower of Cost or Market price) is:

$40,000

Explanation:

a) Data and Calculations:

FIFO inventory on 12/31/2020 = $980,000

Current replacement cost = $900,000

Net realizable value = $980,000 ($1,020,000 - $40,000)

Normal profit margin = $120,000

Loss to be recognized based on current replacement cost = FIFO purchase cost minus Current replacement cost

= $80,000 ($980,000 - $900,000)

b) Under the US GAAP (generally accepted accounting principles) of prudence and conservatism, the loss of $80,000 must be recognized in the current period, since the inventory will be booked at $900,000, its current replacement cost, which is lower than the FIFO purchase cost of $980,000.

Tyrone wants to spend $15,000 on a new car three years from now. He opens a savings account and deposits $3,250 today. One year from now, he plans to deposit $3,000 in the account, and one year after that, he plans to deposit another $3,000. If the account earns 6% interest per year, how much additional money will Tyrone need to meet his $15,000 goal?

Answers

Answer:

Tyrone will need $4578.4 to meet his $15,000 goal

Explanation:

Tyrone wants to spend amount on a new car three years from now=$15,000

Formula : [tex]A=P(1+\frac{r}{100})^n[/tex]

Where A=future value

P=present value  

r=rate of interest

n=time period.

Future value of deposits=[tex]3250 \times(1.06)^3+3000 \times(1.06)^2+3000 \times (1.06)[/tex]

Future value of deposits= 10421.60

So, additional money needed=15000-10421.60=4578.4

Hence  Tyrone will need $4578.4 to meet his $15,000 goal

When determining the value of a firm, which of the following statements is true? Investors are risk averse. Other things being equal, they prefer to pay more for stocks that are less risky and that have relatively more certain cash flows than other stocks. Investors love risk. Other things being equal, they prefer to pay more for stocks that are riskier and have uncertain cash flows. Investors are risk neutral. Other things being equal, they prefer to pay more for stocks that are less risky and have uncertain cash flows.

Answers

Answer:

Investors are risk averse. Other things being equal, they prefer to pay more for stocks that are less risky and that have relatively more certain cash flows than other stocks

Explanation:

A risk averse investor is an investor that would want lower returns from investments would lower risks

A risk neutral investor in neutral towards risks. They can invest in projects with high or low risks

A risk loving investor in an investor who prefers a person prefers risky return over guaranteed return

Waterway Company sold 10,100 Super-Spreaders on December 31, 2020, at a total price of $1,050,400, with a warranty guarantee that the product was free of any defects. The cost of the spreaders sold is $535,300. The assurance warranties extend for a 2-year period and are estimated to cost $37,000. Waterway also sold extended warranties (service-type warranties) related to 1,800 spreaders for 2 years beyond the 2-year period for $10,800. Given this information, determine the amounts to report for the following at December 31, 2020: sales revenue, warranty expense, unearned warranty revenue, warranty liability, and cash. Amounts Reported in Income Sales revenue $ Warranty Expense Amounts Reported on the Balance Sheet Unearned Service Revenue $ Cash Warranty Liability

Answers

Answer:

Amounts Reported in Income

Particulars                     Amount

- Sales revenue            $1,050,400

- Warranty expenses    $37,000

Amounts Reported on the Balance Sheet

Particulars                                  Amount

- Unearned service revenue      $10,800

- Cash ($1,050,400 + $10,800)  $1,061,200

- Warranty Liability                      $37,000

Raatz Corporation's total current assets are $370,000, its noncurrent assets are $660,000, its total current liabilities are $220,000, its long-term liabilities are $410,000, and its stockholders' equity is $400,000. Working capital is: Select one: a. $370,000 b. $150,000 c. $250,000 d. $400,000

Answers

Answer:

b. $150,000

Explanation:

The computation of the working capital is shown below:

= Total current assets - total current liabilities

= $370,000 - $220,000

= $150,000

We simply applied the above formula

And, the same is to be considered

Hence, the working capital is $150,000

Therefore the correct option is b. $150,000

All the other options are wrong.

Monitor Muffler sells franchise arrangements throughout the United States and Canada. Under a franchise agreement, Monitor receives $760,000 in exchange for satisfying the following separate performance obligations: (1) franchisees have a five-year right to operate as a Monitor Muffler retail establishment in an exclusive sales territory, (2) franchisees receive initial training and certification as a Monitor Mechanic, and (3) franchisees receive a Monitor Muffler building and necessary equipment. The stand-alone selling price of the initial training and certification is $18,200, and $578,000 for the building and equipment. Monitor estimates the stand-alone selling price of the five-year right to operate as a Monitor Muffler establishment using the residual approach.
Monitor received $89,000 on July 1, 2016, from Perkins and accepted a note receivable for the rest of the franchise price. Monitor will construct and equip Perkin's building and train and certify Perkins by September 1, and Perkin's five-year right to operate as a Monitor Muffler establishment will commence on September 1 as well.
Required:
1. What amount would Monitor calculate as the stand-alone selling price of the five-year right to operate as a Monitor Muffler retail establishment?
2. What journal entry would Monitor record on July 1, 2016, to reflect the sale of a franchise to Dan Perkins?
3. How much revenue would Monitor recognize in the year ended December 31, 2016, with respect to its franchise arrangement with Perkins? (Ignore any interest on the note receivable.)
Total revenue

Answers

Answer:

1. $163,800

2. Dr Cash $ 89,000

Dr Notes receivable $ 671,000

Cr Deferred revenue $ 760,000

3. $ 607,120

Explanation:

1. Computation of the amount that Monitor would calculate as the stand-alone selling price

Total amount of franchise agreement $760,000

Less: stand-alone selling price of training $ (18,200)

Less: stand-alone selling price of building and equip $ (578,000)

Stand-alone selling price of five-year right $163,800

2. Preparation of journal entry that Monitor would record on July 1, 2016,

Dr Cash $ 89,000

Dr Notes receivable $ 671,000

(760,000-89,000)

Cr Deferred revenue $ 760,000

3. Calculation for the amount of revenue that Monitor would recognize in the year ended December 31, 2016,

Revenue to be recognised on:

1st Sep 2021:

Training $ 18,200

Building and Equipment sale $ 578,000

31st Dec 2021:

$163,800/60 Months*4 Months $ 10,920

Total Revenue to be recognized $ 607,120

Note that five-year will give us 60 months (5*12months and September to December will give us 4 months

Were you surprised to learn how much companies focus on the teen market? Explain.

Answers

Answer:

Yes, a large percentage of consumers are influenced by people who are present on the internet, who are mostly younger people. In order to generate income, advertisements for young people are becoming less and less advertising look like.

For this reason, advertising pieces should always aim to entertain and inform, only to later sell. The experience with advertising content should be positive.

The teen audience may have many different tastes, but there is a high probability that everyone will use a cell phone. The device is part of the daily lives of young people and it is through it that teenagers communicate, consume content, and even shop.

II. In order to establish a p-chart with 3-sigma control limits, you have collected the following 10 samples of size 300.

Sample Defects Sample Defects
1 25 6 15
2 22 7 14
3 17 8 15
4 42 9 16
5 16 10 16

Required:
a. Determine CL, UCL, and LCL for the p-chart.
b. Is the process in statistical control? Explain.

Answers

Answer and Explanation:

Please find answer and explanation attached

What benefits do customers receive in return for the sacrifice they make when buying a membership at Planet Fitness?

Answers

Answer:

Customers receive the following benefits in return for the price they pay when they buy membership at Planet Fitness:

a) Fitness training

b) Physical exercise

c) Relaxation and comfort

d) Clean and safe environment and conducive atmosphere

e) the friendly and courteous staff is a bonus

Explanation:

Planet Fitness operates fitness centers and clubs around the world under franchises.  Planet Fitness has adequate and clean cardio machines, free weights of up to 80 lbs., curl bars, and other strength training equipment and accessories.  The average gym user is offered abundant, 5-star, and world-class Cardio equipment and services.

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