Cemex, the largest cement producer in Mexico: a) is an insignificant competitor outside its home market. b) has only expanded into Spanish-speaking markets. c) generates about half of its income from outside Mexico. d) was eventually acquired by Holder Bank of Switzerland after Holder Bank entered the Mexican market.
Answers
Answer:
The correct answer is C. Cemex, the largest cement producer in Mexico, generates about half of its income from outside Mexico.
Explanation:
CEMEX is an international company for the construction industry, which offers products and services to clients and communities in more than 50 countries around the world. The Mexican company holds the third place in world sales of cement and is the main producer of ready-mix concrete, with a production capacity of approximately 77 million tons per year, serving the markets of America, Europe, Asia, Africa and the Middle East. 50% of the company's sales come from its operations in Mexico, 25% of its plants in the United States, 15% from Spain, and the rest from its plants in other parts of the world.
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An asset is said to be illiquid when: Group of answer choices it cannot be used to settle debts. it cannot act as a store of value. it is an illegal tender. it cannot be readily exchanged for goods. it lacks purchasing power.
Dave Ryan is the CEO of Ryan's Arcade. At the end of its accounting period, December 31, Ryan's Arcade has assets of $632,000 and liabilities of $220,310. Using the accounting equation, determine the following amounts: a) Stockholders' equity as of December 31 of the current year. $ b) Stockholders' equity as of December 31 at the end of the next year, assuming that assets increased by $84,040 and liabilities increased by $17,800 during the year. $
With current technology, suppose a firm is producing 800 loaves of banana bread daily. Also assume that the least-cost combination of resources in producing those loaves is 6 units of labor, 5 units of land, 4 units of capital, and 2 units of entrepreneurial ability, selling at prices of $40, $60, $60, and $20, respectively. Required:1. Assume the firm can sell these 800 loaves at $1 per unit, will it continue to produce banana bread?2. What is the firm's total revenue?3. What is the firm's total cost?4. What is the firm's profit or loss?
Presented below is the trial balance of Novak Corporation at December 31, 2020. Debit Credit Cash $ 198,550 Sales $ 8,101,220 Debt Investments (trading) (at cost, $145,000) 154,220 Cost of Goods Sold 4,800,000 Debt Investments (long-term) 300,550 Equity Investments (long-term) 278,550 Notes Payable (short-term) 91,220 Accounts Payable 456,220 Selling Expenses 2,001,220 Investment Revenue 64,400 Land 261,220 Buildings 1,041,550 Dividends Payable 137,550 Accrued Liabilities 97,220 Accounts Receivable 436,220 Accumulated Depreciation-Buildings 152,000 Allowance for Doubtful Accounts 26,220 Administrative Expenses 901,400 Interest Expense 212,400 Inventory 598,550 Gain 81,400 Notes Payable (long-term) 901,550 Equipment 601,220 Bonds Payable 1,001,550 Accumulated Depreciation-Equipment 60,000 Franchises 160,000 Common Stock ($5 par) 1,001,220 Treasury Stock 192,220 Patents 195,000 Retained Earnings 79,550 Paid-in Capital in Excess of Par 81,550 Totals $12,332,870 $12,332,870 Prepare a balance sheet at December 31, 2020, for Novak Corporation. (Ignore income taxes)
Answers
Answer:
Option (a) is correct.
Explanation:
Contribution margin per marketing plan = Sales - Variable cost
= $3,000 - $2,000
= $1,000
A.
(1)
Break even in marketing plan = 400
(2) Break-even in dollars:
= Break-even in marketing plan × Average rate per plan
= 400 × 3,000
= 1,200,000
(3) Margin of safety = Actual sales - Break-even sales in dollars
= 1,500,000 - 1,200,000
= 300,000
= 20%
B.
(1) Contribution margin per marketing plan = Sales - Variable cost
= $4,000 - $2,000
= $2,000
Break even in marketing plan = 200
(2) Break-even in dollars:
= Break-even in marketing plan × Average rate per plan
= 200 × 4,000
= 800,000
(3) Margin of safety = Actual sales - Break-even sales in dollars
= 1,500,000 - 800,000
= 700,000
= 47%
Therefore, option (a) would achieve the margin of safety ratio more than 45%.
b. The cash account balance is $4,050.
c. Outstanding checks totaled $1,240.
d. Deposits in transit are $1,690.
e. The bank service charge is $81.
f. A check for $76 for supplies was recorded as $67 in the ledger.
Answers
Answer and Explanation:
The preparation of the bank reconciliation statement is shown below:
Cash balance as per bank $3,510
Add: Deposits in transit $1,690
Less: Outstanding checks -$1240
Adjusted bank balance $3,960
Cash balance as per books $4,050
Less: Bank service charge -$81
Less: Check for supplies error -$9 ($76 - $67)
Adjusted cash balance $3,960
Therefore both the balances are matched
Final answer:
A bank reconciliation ensures agreement between a company's financial records and the bank's records. For Blossom Company, the reconciled balance for July 31, 2022, is $3,960, after taking into account outstanding checks, deposits in transit, bank fees, and a check discrepancy.
Explanation:
A bank reconciliation is a process that ensures a company's financial records are accurate and in agreement with the bank's records. For Blossom Company, let's start with both the bank statement balance and the cash account balance.
- The bank statement balance is $3,510
- The company's cash account balance is $4,050
Next, we consider the outstanding checks and the deposits in transit. These are transactions that the company recognizes, but the bank has not yet processed. The outstanding checks total $1,240 and the deposits in transit add up to $1,690. We need to subtract the checks from the bank's balance and add the deposits to the bank's balance:
New bank balance = $3,510 - $1,240 (outstanding checks) + $1,690 (deposits in transit) = $3,960
Next, we take into consideration the bank's service charges and any errors in the check record. The bank's service charge is $81, and a check recorded as $67 in the ledger should have been recorded as $76.
New cash account balance = $4,050 - $81 (bank service charge) - $9 (check discrepancy) = $3,960.
From our calculation, both the bank and cash balances match, so the bank reconciliation for July 31, 2022, for Blossom Company is complete, and the reconciled balance is $3,960.
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Answers
Answer:
$2536.232
Explanation:
The spread in this case is 30*8% = 2.4
A spread is simply gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity and the net proceeds are the amount of money the seller receives following the sale of an asset after all costs and expenses are deducted from the gross proceeds.
The net proceeds in this case is 30-2.4 =27.6
To get the number of share we can simply divide the funds need by the net proceeds per share = 70000000/27.6 = $2536.232. Therefore the correct answer is $2536.232
Answers
Answer:
The amount that could be justified now for the purchase of this piece of equipment is $73,747.41.
Explanation:
Note: This question is not complete as all the data in it are omitted. A complete question is therefore provided before answering the question as follows:
It is estimated that a certain piece of equipment can save $22,000 per year in labor and materials cost. The equipment has an expected life of five years and no market value. If the company must earn a 15% annual return on such investments, how much could be justified now for the purchase of this piece of equipment?
The explanation to the answer is now given as follows:
To calculate this, the formula for calculating the present value of an ordinary annuity is used as follows:
PV = P * [{1 - [1 / (1 + r)]^n} / r] …………………………………. (1)
Where;
PV = Present value of the amount to justify the equipment purchase = ?
P = yearly savings in labor and materials costs = $22,000
r = annual return rate = 15% = 0.15
n = Equipment has an expected life = 5
Substitute the values into equation (1) to have:
PV = $22,000 * [{1 - [1 / (1 + 0.15)]^5} / 0.15]
PV = $22,000 * [{1 - [1 / 1.15]^5} / 0.15]
PV = $22,000 * [{1 - 0.869565217391304^5} / 0.15]
PV = $22,000 * [{1 - 0.497176735298289} / 0.15]
PV = $22,000 * [0.502823264701711 / 0.15]
PV = $22,000 * 3.35215509801141
PV = $73,747.41
Therefore, the amount that could be justified now for the purchase of this piece of equipment is $73,747.41.
Final answer:
The question asks about the amount a company can justify spending on equipment, based on expected savings and a required rate of return. This requires understanding the concept of Present Value in financial calculations, using the formula PV = CF / (1 + r.
Explanation:
The problem is related to the concept of Present Value in finance. Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return. In this scenario, the stream of cash flows is the annual savings in labor and materials costs due to the equipment. The return rate is the annual return the company requires on such investments.
To calculate the present value, use the formula:
PV = CF / (1 + r
Where:
PV is the Present Value
CF is the annual savings (Cash flow)
r is the annual return rate
n is the expected life of the equipment.
Plug in the given values into this formula to get the amount the company could justify for the purchase of this equipment. Do remember, the rate (r) is expressed in decimal, so if the annual return is say, 5%, use 0.05 in the formula.
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b. The current tax system acts as an automatic stabilizer.
c. Businesses make investment plans many month in advance.
d. The Fed can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates.
Answers
b. With the help of a friend (who majored in accounting), you determine that all of the goods sold during January cost $48,000 to purchase.
c. During the month, according to the checkbook, you paid $42,000 for salaries, rent, supplies, advertising, and other expenses; however, you have not yet paid the $1,000 monthly utilities for January on the store and fixtures.
Required:
On the basis of the data given (disregard income taxes), what was the amount of net income for January?. (Hint: A convenient form to use has the following major side captions: Revenue from Sales, Expenses, and the difference—Net Income.)
Answers
Answer:
The amount of net income for January was $24,100
Explanation:
Revenues from sales $115,100 (for this analysis is not important if the sales were in cash or on credit)
-
Cost of goods sold $48,000
------------------------------------
Gross profit $67,100
-
Salaries, rent, supplies, advertising, other expenses and monthly utilities (it is not important for this analysis if all the exenses were paid) -$43,000
-----------------------------------
Net income $24,100
Final answer:
The net income for Campus Connection for the month of January is calculated by subtracting the total expenses ($91,000) from the total sales ($115,100), which equals $24,100.
Explanation:
To calculate the net income for January for Campus Connection, we need to consider the revenues and expenses for the month.
First, let's calculate the total revenues. Cash sales amount to $112,000 and the credit sales to $3,100. Therefore, the total revenues for the month of January equal $115,100.
Next, we calculate the total expenses. We know from the data given that the cost of goods sold equals $48,000. Also, the other expenses such as salaries, rents, supplies, and advertising total to $42,000. However, the utilities for January have not yet been paid. This adds an additional $1,000 to the expenses. So the total expenses for January are $48,000 (cost of goods sold) + $42,000 (other expenses) + $1,000 (unpaid utilities) = $91,000.
The net income is calculated by subtracting the total expenses from total revenues; thus $115,100 (sales) - $91,000 (expenses) = $24,100. Therefore, the net income for Campus Connection for January is $24,100.
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