The carrying value of the bond liability at december 31, year 3 is $257,500
What is carrying value ?The carrying value of the bond liability on the January 1, 2016
= Face value x 0.95
= $250,000 x 0.95
= $237,500
The worth of assets based on data in the balance sheet is known as the "carrying value," "carrying amount," or "book value." It is the asset's purchase price less any accumulated depreciation, amortisation, or other amounts.Define carrying value. Taking into account the asset's useful life, carrying value is the asset's value in the books of accounts or balance sheet less the amount of depreciation. In other words, since it differs from the market/fair value of the asset, we can argue that it is equal to the book value of the asset.To learn more about carrying value refer to:
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Suppose that an asset with a cost basis of $100,000 and is being depreciated by a straight-line method.The asset is expected to produce net cash inflows (net revenues) of $30,000 per year during the six-year period, and its salvage value is negligible. If the effective income tax rate is 40%, how much can a firm afford to spend for this asset and still earn the MARR? Use MARR = 10% (after-tax).
The firm can afford to spend approximately $752.67 for the asset and still earn the MARR of 10% (after-tax) based on the calculation of present value of net cash inflows.
Given:
Initial cost (I) = $100,000
Net cash inflows per year (N) = $30,000
Useful life (L) = 6 years
Salvage value = negligible
Effective income tax rate (T) = 40%
MARR (R) = 10% (after-tax)
Calculate the annual after-tax net cash inflows.
After-tax net cash inflows = Net cash inflows per year * (1 - Tax rate)
After-tax net cash inflows = $30,000 * (1 - 0.40) = $18,000
Calculate the annual depreciation expense.
Depreciation expense = Initial cost / Useful life
Depreciation expense = $100,000 / 6 = $16,666.67
Calculate the net annual after-tax cash inflows.
Net annual after-tax cash inflows = After-tax net cash inflows - Depreciation expense
Net annual after-tax cash inflows = $18,000 - $16,666.67 = $1,333.33
Calculate the present value of the net cash inflows.
Present value factor for 10% MARR (after-tax) for 6 years = 1 / (1 + R)\(^{(L)}\)
Present value factor = 1 / (1 + 0.10)⁶ ≈ 0.5645
Present value of net cash inflows = Net annual after-tax cash inflows * Present value factor
Present value of net cash inflows = $1,333.33 * 0.5645 ≈ $752.67
Determine the maximum amount the firm can spend on the asset.
Maximum amount = Present value of net cash inflows + Salvage value (negligible)
Maximum amount = $752.67 + $0 = $752.67
Hence, the firm can afford to spend approximately $752.67 for this asset and still earn the MARR of 10% (after-tax).
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pls help me
1. What is the count number of the statement?
2. Was there any check card activity? If so, how many transactions were there, and what was the total amount?
3. Were there any service charges? If so, what was the total amount?
4. What is the total of all withdrawals (checks, ATM transactions, check card transactions, service charges)?
Answer:
lol it is du green one lololol dont tell on me
Which statement best illustrates the relationship between three different
elements of the circular flow of products?
A. Product markets offer labor to businesses, which creates jobs for
households.
B. Resource markets sell goods to product markets, which sell the
goods to businesses
C. Households pay wages to businesses, which can then set up
product markets.
D. Businesses create goods for product markets, which sell them
directly to households.
Answer: is D
Explanation:
The statement, businesses create goods for product markets, which sell them directly to households, is best illustrates the relationship between three different elements of the circular flow of products.
What is a circular flow?
The most popular version of this model displays the circular flow of revenue between the consumer and business sectors. The product market and the resource market are placed between the two.
Consumer spending is the mechanism through which households' money flows to the market for goods and services when they are in need of them. The product market purchases goods and services from companies and sells them to households, making a profit.
As a result, option (d) is correct.
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A small open economy with perfect capital mobility is characterized by all of the following except that: A) its domestic interest rate always exceeds the world interest rate. B) it engages in international trade. C) its net capital outflows always equal the trade balance. D) its government does not impede international borrowing or lending,
A small open economy with perfect capital mobility is characterized by all of the following except that (A) its domestic interest rate always exceeds the world interest rate.
A country's open economy is a system that combines domestic and foreign trade by allowing the unrestricted flow of goods and services, as well as capital and labor, across borders. International trade, such as imports and exports, is important in an open economy, and it often contributes to the country's economic growth. A small open economy is characterized by all of the following except that its domestic interest rate always exceeds the world interest rate. A small open economy is defined as a country that is open to trade and has a high degree of capital mobility. Open economies can trade with other countries, and there are no trade barriers, such as tariffs or quotas, between them.The perfect capital mobility definition: Capital mobility refers to the ease with which capital can be exchanged between two countries. When a country has unrestricted access to capital, it is said to have perfect capital mobility.
A small open economy with perfect capital mobility implies that the country is free to borrow or lend internationally without any constraints. The country's interest rate would be equivalent to the world interest rate in a perfect capital mobility setting. The interest rate in a small open economy with perfect capital mobility would not exceed the world interest rate.
Therefore, a small open economy with perfect capital mobility is characterized by all of the following except that its domestic interest rate always exceeds the world interest rate (option D).
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When a firm's approach to human resources is designed to drive the company's overall performance, employees are being used to ______.
Employees are used to meet the firm's strategic objectives when a firm's approach to human resources is geared to drive the company's overall success.
Companies frequently set explicit and verifiable progress targets. Strategic objectives are the firm's big-picture aims; they outline what the organization does to strive to fulfil its mission. Strategic objectives are often performance goals, such as launching a new product, increasing profitability, or increasing market share for the company's product.
Business enterprises, in particular, spend substantially on information to fulfil six major business objectives: Excellence in operations. New goods, services, and business models are being developed. Customer and supplier trust.
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The different fabrics preferred by customers
Any recommendations of how to convince my parents to get me a dog?
Answer:
ok so u have to get a pet rock first u name it u take it out to go to the bathroom and everything u would do with a dog and it shows your parents you're ready for one u have to show them that u know how to take care of one first
Explanation:plz mark me branlyiest this worked for me so yea hope it helped
fama's llamas has a weighted average cost of capital of 9.5 percent. the company's cost of equity is 15.5 percent, and its pre-tax cost of debt is 8.5 percent. the tax rate is 21 percent. what is the company's target debt-equity ratio?
To calculate Fama's Llamas target debt-equity ratio, we need to use the formula:
Target Debt-Equity Ratio = Target Debt / Target Equity
To find the target debt and equity, we need to know the current market values of the company's debt and equity. However, this information is not provided in the question. Therefore, we can use the Weighted Average Cost of Capital (WACC) formula to solve for the target debt-equity ratio.
WACC = (Cost of Equity x % Equity) + (Cost of Debt x (1 - Tax Rate) x % Debt)
where % Equity and % Debt are the proportions of equity and debt in the company's capital structure.
We know that Fama's Llamas WACC is 9.5%, and its cost of equity and a pre-tax cost of debt is 15.5% and 8.5%, respectively. The tax rate is 21%.
WACC formula:
WACC = (Cost of Equity x % Equity) + (Cost of Debt x (1 - Tax Rate) x % Debt)
9.5% = (15.5% x % Equity) + (8.5% x (1 - 21%) x % Debt)
9.5% = 0.155 % Equity + 0.06715 % Debt
0.06715 % Debt = 9.5% - 0.155 % Equity
% Debt / % Equity = (9.5% - 0.155 % Equity) / 0.06715
% Debt / % Equity = 139.96 - 2.31 % Equity
To find the target debt-equity ratio, we need to know the percentage of debt and equity in the company's capital structure. We can solve for the target debt-equity ratio by assuming different values for % Equity and using the above equation.
For example, if we assume % Equity = 60%, then:
% Debt / % Equity = 139.96 - 2.31 (60)
% Debt / % Equity = 3.14
Target Debt-Equity Ratio = Target Debt / Target Equity = % Debt / (1 - % Debt) x 100% / % Equity
Substituting % Debt / % Equity = 3.14, we get:
Target Debt-Equity Ratio = 3.14 / (1 - 3.14) x 100% / 60%
Target Debt-Equity Ratio = 4.96
Therefore, Fama's Llamas target debt-equity ratio is 4.96. This means that for every $1 of equity, the company has $4.96 of debt.
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A reduction in price is sometimes referred to as
A discount is one expression frequently used to refer to a price reduction. A percentage or dollar amount is subtracted from the original cost of a good or service to provide a discount.
Businesses frequently provide discounts to entice customers to buy their goods or services, especially when there is a fiercer competition or a pressing need to move inventory. There are numerous ways to publicize discounts, including sales, promotions, and coupons.
Another term used to describe a reduction in price is a markdown. A markdown is a reduction in the price of a product that occurs when the item is not selling as quickly as anticipated.
Markdowns are often used by retailers to clear out excess inventory or to make room for new products. Markdowns can be temporary or permanent and can be applied to a single item or to an entire category of products.
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A reduction in price is sometimes referred to as a discount.
What is a reduction?A reduction in price refers to a decrease in the original price of a product or service. It is a common marketing strategy used by businesses to attract customers, increase sales, or move inventory. A reduction in price can take many forms, such as a discount, a sale, a markdown, or a price cut.
The discount or markdown can be expressed as a percentage or a dollar amount. For example, a store may offer a 20% discount on all items or reduce the price of a specific product by $10. The goal of a reduction in price is to make the product or service more appealing to consumers by making it more affordable or offering a better value. This can help businesses increase their market share, build customer loyalty, and ultimately increase revenue.
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For an investor seeking a tax sheltered investment, the primary advantage of a real estate direct participation program is the: A high level of liquidity provided by the investment B ability of the program to generate losses for tax purposes but provide positive cash flow C ability to offset passive losses generated by the program against the investor's earned income D ability of the program to generate increasing losses until liquidation Review
Users of managerial accounting information include ______. (select all that apply) multiple select question. department managers potential investors internal revenue service the chief financial officer
The user of managerial accounting information includes:
department managersthe chief financial officerWhat is managerial accounting information?Managerial accounting information can be defined as the gathered information which managers use during decision making process.
The users of this information are department manager and the chief financial officer.
Therefore the correct option is A, D.
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Which of the following is not addressed by a government assistance program? (1 point)
O food insecurity
O health care issues
O housing
O travel
The travel is not addressed by a government assistance program. Thus option (D) is correct.
What is government?A government is the system of politics for running the nation. There are different forms of government like democracy, aristocracy, monarchy, and oligarchy.
A government makes rules and order for running the nation, state, or any political unit. A government makes defense laws, foreign policy, budget and sources of revenue and expenditure for a nation.
The travel is not addressed by a government assistance program. Therefore, option (D) is correct.
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When making decisions, managers often must decide between doing what is beneficial for the firm in the short term, and what is beneficial for both the firm and society in the long term. To address this conflict, a firm must
When making decisions, managers are often faced with a conflict between what is beneficial for the firm in the short-term and what is beneficial for both the firm and society in the long-term.
This conflict arises because the actions that benefit the firm in the short-term may not necessarily align with the interests of society as a whole, which can lead to negative consequences for both the company and society in the long-term.
To address this conflict, a firm must adopt a long-term orientation and consider the broader social and environmental impacts of its decisions. This means looking beyond immediate financial gains and recognizing that actions taken today can have far-reaching implications for the company's reputation, customer loyalty, employee morale, and overall sustainability.
Firms that prioritize social responsibility and sustainable business practices are more likely to build strong relationships with stakeholders, including customers, employees, investors, and regulators. They are also better equipped to weather economic downturns and other disruptions, as they have diversified their risk and invested in building resilient supply chains and communities.
Ultimately, the key to addressing the conflict between short-term gains and long-term benefits is a commitment to corporate social responsibility (CSR) and sustainable business practices. By prioritizing the needs of society and the environment alongside those of shareholders, firms can create value for all stakeholders over the long-term, ensuring their continued success and impact.
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Which is a better domain name, thebbqshop. Me or thegrillsshop. Com?
For global reach to the customers, the domain name which is better is thegrillsshop. Com
It is possible that "thegrillsshop.com" may be a better domain name for global reach compared to "thebbqshop.me", as ".com" is a more widely recognized and accepted top-level domain (TLD) globally.
Additionally, the word "grills" in "thegrillsshop.com" may have broader appeal and be more recognizable across different cultures and languages compared to "BBQ" in "thebbqshop.me".
However, it is important to note that factors such as branding, marketing, and website content are also critical for global reach and success, and a domain name alone may not determine the success of a business.
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PLZ HELP
A ______ grade point average gives the student credit for taking more rigorous courses
A. service-learning
B. unweighted
C. weighted
D. dual enrollment
What are 4 reasons why you should print, save, or make a copy of your job application???
Answer:
Be Prepared. Make sure you know the correct names, dates, places and other information you will need
Recall an incident you have experienced with respect to the quality you wish to improve. Clearly visualize what happened (what,when,where,who etc. )you must write your incident as an essay under the steps discussed with 500 words
Quality improvement is an essential aspect of any business or organization. It ensures that products and services meet the customers' expectations and comply with the relevant standards and regulations. In my previous job, I worked as a customer service representative for a retail store. One incident that comes to mind when I think about quality improvement was when a customer returned a defective product and faced a series of issues with the replacement process.
It was a busy day in the store, and I was attending to several customers simultaneously. A middle-aged woman approached me with a product she had purchased the previous day. She explained that she had used it once and noticed a defect in the product. I apologized for the inconvenience and offered to replace the product. However, when I scanned the product, it showed that it was not in the system. I checked the computer system, and to my surprise, there was no record of the product.
I asked the customer for the receipt, and she provided me with it. I checked the receipt and found out that the product was not scanned correctly during the purchase. I tried to scan it again, but the system did not recognize it. I was perplexed and did not know what to do. The customer became agitated and demanded a replacement immediately. I tried to calm her down and assured her that I would resolve the issue as soon as possible.
I called my supervisor, who came to the customer service desk and tried to scan the product himself. However, he encountered the same issue. He apologized to the customer and offered to replace the product with a similar one. The customer reluctantly agreed, and my supervisor instructed me to process the exchange manually. We completed the exchange, and the customer left the store, still visibly upset.
After the incident, my supervisor and I had a meeting to discuss what went wrong and how we could prevent similar incidents in the future. We realized that the issue was not with the product, but with the scanning system. We contacted the IT department, and they discovered that there was a glitch in the system that prevented the scanning of specific products. They fixed the issue immediately, and we tested the system to ensure that it was working correctly.
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List qualities a good manager should have. What are the advantages and drawbacks of being in a position of authority?The qualities of a good manager are:The advantages of being a manager are:The drawbacks of being a manager are:
Answer the following questions, a) Explain different types of professions related to financial sector. b) What qualification is required to become Assistant Accountant? c) Write the role of assistant accountant in organization. d) What are the duties of an Accountant?
Explanation:
the different types of professions related to financial sector are auditor accountant CA bank manager
Keys printing plans to issue a $1,000 par value, 20-year noncallable bond with a 7. 00% annual coupon, paid semiannually. the company's marginal tax rate is 40. 00%, but congress is considering a change in the corporate tax rate to 30. 0%. assuming key's new bonds are issued at par, how much would the component cost of debt used to calculate the wacc change if the new tax rate was adopted
If the corporate tax rate changes to 30.00%, the component cost of debt used to calculate the weighted average cost of capital (WACC) would decrease.
The component cost of debt is the after-tax cost of debt. It is calculated by multiplying the before-tax cost of debt with (1 - tax rate). Therefore, a decrease in the corporate tax rate would result in a lower after-tax cost of debt and hence a lower component cost of debt. Currently, Keys Printing plans to issue a $1,000 par value, 20-year noncallable bond with a 7.00% annual coupon, paid semiannually. The company's marginal tax rate is 40.00%. The before-tax cost of debt can be calculated as follows: Coupon rate = 7.00% Par value = $1,000
Semiannual coupon payment = $1,000 x 7.00% / 2 = $35 Semiannual yield to maturity = ? Using the bond pricing formula, the semiannual yield to maturity can be calculated as 3.50%: $35 / (1 + 3.50%)^1 + $35 / (1 + 3.50%)^2 + ... + $35 / (1 + 3.50%)^40 + $1,000 / (1 + 3.50%)^40 = $1,000 The before-tax cost of debt is equal to the semiannual yield to maturity multiplied by 2, which is 7.00%. The after-tax cost of debt can be calculated as follows: Before-tax cost of debt = 7.00% Marginal tax rate = 40.00% After-tax cost of debt = 7.00% x (1 - 40.00%) = 4.20% Therefore, the current component cost of debt is 4.20%. If the corporate tax rate changes to 30.00%, the after-tax cost of debt would decrease to 4.90%: Before-tax cost of debt = 7.00% Marginal tax rate = 30.00% After-tax cost of debt = 7.00% x (1 - 30.00%) = 4.90% Therefore, the new component cost of debt would be 4.90%. In summary, if the new tax rate of 30.00% is adopted, the component cost of debt used to calculate the WACC would decrease from 4.20% to 4.90%.
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In your own words, define Personal Finance??
A person who is involved in personal finance engages in the process by which they manage their money and save for the future. They also invest for the future by managing their money. The firm offers a wide range of services related to financial planning, banking, insurance, indemnification, contracts, assets, retirement planning, and monetary and estate planning.
Importance of Personal FinanceIt is important to keep track of your personal finances so that you can manage your day-to-day financial needs, as well as plan for your monetary future as you grow into adulthood. You will be better off if you have a grasp on personal finance, regardless of whether you decide to invest in the future or plan for retirement, the sooner you do so.
Hope this helps :)
4. if a firm takes actions that reduce its days sales outstanding (dso), then, other things held constant, this will lengthen its cash conversion cycle (ccc). a. true b. false
If a firm takes actions that reduce its days sales outstanding (dso), then, other things will not hold constant, and will not lengthen its cash conversion cycle (ccc). Hence, the given statement is false, Option B is correct.
The time it takes for a business to convert its investments in inventory and other resources into cash flows from sales is expressed by the cash conversion cycle (CCC), a metric that is expressed in days.
A measure of how long it takes a business to turn its inventory investments into cash is called the Cash Conversion Cycle (CCC). The conversion cycle formula calculates the number of days it takes a business to convert its inputs of resources into cash.
The benchmark for this statistic is often between 30 and 45 days, according to benchmark data from APCQ, even though one should aim for a faster cash-to-cash cycle time.
Therefore, the given statement is false, Option B is correct.
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Jane is trying to decide which courses to take next semester. She has narrowed down her choice to two courses, Econ 1 and Econ 2. Now she is having trouble and cannot decide which of the two courses to take. It's not that she is indifferent between the two courses, she just cannot decide. An economist would say that this is an example of preferences that: Group of answer choices all the other three answers are correct violate the assumption that more is preferred to less. are not transitive. are incomplete.
Answer:
The correct answer is the last option: Are incomplete.
Explanation:
To begin with, in the microeconomics theory the concept of preferences are refered to the situation in where the person has to decide between alternatives in order to obtain one of them that will, in theory, maximine his satisfaction. Moreover, with the purpose of being completely rational these preferences have to fullfil another mathematics characteristics such as being transitive and complete. So in the case presented when Jane is trying to decide which courses to take and she just can not decide, then that would be because the preferences are incomplete.
Consider portfolios with positions in AMZN (Amazon) and XOM (Exxon-Mobil). The (annual) total expected return and standard deviation of the return for the 2 stocks are as follows: AMZN XOM 10% 6% Expected (total) return Std. dev. of return 35% 30% The correlation between the returns is 0.20, and the (annual) risk-free (T-bill) rate is 2%. Find the weights (risk-free, AMZN, XOM) for a portfolio with the same expected (total) return as XOM (6%), using only a combination of the risk-free rate and the risky portfolio that itself is 60% AMZN, 40% XOM? What is the standard deviation of this portfolio?
The weights for the portfolio with the same expected return as XOM (6%) are 37.3% risk-free, 22.5% AMZN, and 40.2% XOM, with a standard deviation of approximately 28.68%.
To find the weights for a portfolio with the same expected return as XOM (6%), we can use the concept of the capital market line (CML). The CML represents a combination of the risk-free rate and a risky portfolio.
Let's denote the weights as follows:
Risk-free weight: w_rf
AMZN weight: w_AMZN
XOM weight: w_XOM
Since we want the portfolio to have the same expected return as XOM, we have:
w_rf * r_rf + w_AMZN * r_AMZN + w_XOM * r_XOM = r_XOM
Given that the risk-free rate (r_rf) is 2% and the expected returns are:
r_AMZN = 10%
r_XOM = 6%
Substituting the values, we have:
w_rf * 0.02 + w_AMZN * 0.10 + w_XOM * 0.06 = 0.06
We also know that the weights for the risky portfolio are:
w_AMZN = 0.60
w_XOM = 0.40
Now, we need to solve these equations to find the values of w_rf, w_AMZN, and w_XOM.
Using the correlation coefficient (ρ) and the standard deviations (σ) of AMZN and XOM, we can calculate the standard deviation of the portfolio using the formula:
σ_portfolio = √[(w_AMZN^2 * σ_AMZN^2) + (w_XOM^2 * σ_XOM^2) + 2 * w_AMZN * w_XOM * ρ * σ_AMZN * σ_XOM]
Substituting the given values:
ρ = 0.20
σ_AMZN = 35%
σ_XOM = 30%
Calculating the standard deviation, we get:
σ_portfolio = √[(0.60^2 * 0.35^2) + (0.40^2 * 0.30^2) + 2 * 0.60 * 0.40 * 0.20 * 0.35 * 0.30]
After solving the equation, we find that the standard deviation of the portfolio is approximately 28.68%.
In summary, the weights for the portfolio with the same expected return as XOM (6%) are:
Risk-free weight (w_rf) = 0.373
AMZN weight (w_AMZN) = 0.225
XOM weight (w_XOM) = 0.402
The standard deviation of this portfolio is approximately 28.68%.
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help pleaseeeeeeeeeeeee
Answer:
Income
Explanation:
A budget shows a plan of how one will spend their income. It is, therefore, a plan of expenditure. A budget shows total expected income on one side and projected expenditure on the other side. The budget is balanced when income and expenses are equal.
T/F: role and status structures tend to be highly defined and relatively unchanged in a fully developed mature group.
True. In a fully developed and mature group, role and status structures tend to be highly defined and relatively unchanged.
a group progress and matures, members become more familiar with their roles and positions within the group, leading to stability in the role and status hierarchies. This stability allows for smoother functioning and coordination within the group. However, it is important to note that changes in group dynamics or external factors can still influence the role and status structures over time.
Influence refers to the ability to have an effect on the thoughts, behaviors, or actions of others. It involves the power to shape or sway someone's opinions, decisions, or attitudes. Influence can be exerted through various means, such as persuasion, leadership, expertise, social status, or the use of authority.
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What are preferred stocks?
Answer:
See below
Explanation:
Preferred stocks are a special group of shares issued by a company to raise capital. They combine features of ownership and debts, which make them hybrid securities. Like bonds, preferred shares are issued at par value.
Preferred stocks pay fixed dividends following a set schedule. Holders of preferred shares do enjoy voting rights. However, they get preference in dividends sharing. They also enjoy priority claims to the company assets in case of a dissolution.
Answer:
The term "stock" refers to ownership or equity in a firm. There are two types of equity—common stock and preferred stock. Preferred stockholders have a higher claim to dividends or asset distribution than common stockholders.1 The details of each preferred stock depend on the issue.
Under the LIFO retail method, we determine that:__________.
a) a new layer of inventory has been added during the period if the ending inventory at retail is greater than the beginning inventory at cost.
b) the ending inventory at retail is greater than the beginning inventory at retail.
c) the ending inventory at retail is less than the beginning inventory at retail.
Answer: the ending inventory at retail is greater than the beginning inventory at retail
Explanation:
In the Last-In-First-Out(LIFO) method, it is assumed that the units that are sold are the ones that were recently bought.
Under the LIFO retail method, to determine a new layer at retail, the beginning inventory at the retail will have to be deducted from the ending inventory at retail.
This means that a new layer of inventory will be added when the ending inventory at retail is greater than the beginning inventory at retail.
to avoid developing conditions of worth, a person should ideally experience to avoid developing conditions of worth, a person should ideally experience existential optimism conditions of debt unconditional positive regard defensive pessimism
To avoid developing conditions of worth, a person should ideally experience unconditional positive regard.
Humanist psychologist Carl Rogers coined the phrase "unconditional positive regard" to characterize a strategy he employed in his non-directive, client-centered treatment.
Unconditional positive regard, in Rogers' view, entails extending a person's full support and approval regardless of what they say or do. No matter what the client says or does, the therapist accepts them and is there to assist them. This means that whether the client is exhibiting "good" behaviors or "bad" feelings, the therapist will still support them.
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Which expense category will most likely be changed to allow money for the purchase of a car?
A. savings
B. grocieries
C. utlities.
D. entertainment
Answer:
savings
Explanation: