Francine must purchase $1,500 of coffee for her coffee cart business. Kevin agrees to loan Francine $1,500, accepting as collateral Francine’s cart. They put their agreement in writing and sign it. Francine keeps possession of the cart. Does Kevin have an enforceable security interest?

Answers

Answer 1
Answer:

Answer:

Yes, Kevin has an enforceable security interest

Explanation:

Judging from the perception of simple contract, which is a legally binding contract on parties that have entered into it,for the contract to be legally enforceable the following conditions must be met.

There must be an agreement between parties involved,this is demonstrated by Kevin offering to loan Francine $1500, which was met the latter's acceptance.

Consideration is when both parties promises to give something of value in exchange for value received, which is also satisfied in this case,as Francine promises to return $1500 in exchange for same amount borrowed and by extension Kevin has right to repossess the cart.

Lastly, both parties intended to create legally enforceable relations as well the fact that they are both capable (of age) and the transaction entered is legal in law parlance.

In conclusion, the above points show that Kevin has an enforceable security interest.


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The following data were taken from the records of Clarkson Company for the fiscal year ended June 30, 2017.Raw Materials Inventory 7/1/16 $51,100Factory Insurance $4,700Raw Materials Inventory 6/30/17 46,000Factory Machinery Depreciation 19,000Finished Goods Inventory 7/1/16 98,200Factory Utilities 29,100Finished Goods Inventory 6/30/17 26,100Office Utilities Expense 9,350Work in Process Inventory 7/1/16 26,800Sales Revenue 564,000Work in Process Inventory 6/30/17 22,300Sales Discounts 4,700Direct Labor 147,750Plant Manager’s Salary 65,600Indirect Labor 26,560Factory Property Taxes 9,810Accounts Receivable 27,100Factory Repairs 1,600Raw Materials Purchases 97,500Cash 35,600A) Prepare a cost of goods manufactured schedule (Assume all raw materials used were direct materials).B) Prepare an income statement through gross profitC) Prepare the current assets section of the balance sheet at June 30,2017

Answers

Answer:

A) cost of goods manufactured schedule

Factory Insurance                                                  4,700

Factory Utilities                                                    29,100

Factory Machinery Depreciation                        19,000

Direct Labor                                                        147,750

Plant Manager`s Salary                                       65,600

Indirect Labor                                                      26,560

Factory Property Taxes                                         9,810

Factory Repairs                                                      1,600

Add Beginning Work in Process Inventory       26,800

Less Closing Work in Process Inventory          (22,300)

Cost of Goods Manufactured                         $308,620

B) income statement through gross profit

Sales Revenue                                                                   564,000

Less Sales Discounts                                                            (4,700)

Net Sales                                                                            559,300

Less Cost of Goods Sold :

Finished Goods Inventory                                98,200

Add Cost of Goods Manufactured                 308,620

Less Closing Finished Goods Inventory         (26,100)   (380,720)

Gross Profit                                                                         178,580

C) current assets section of the balance sheet at June 30,2017

Current Assets

Raw Materials Inventory      46,000

Work in Process Inventory   22,300

Finished Goods Inventory    26,100

Accounts Receivable            27,100

Cash                                      35,600

Total Current Assets           157,100

Explanation:

Raw Materials Consumed in Production Calculation

Open a Raw Materials T - Account as follows :

Debit :

Opening Balance                                                      $51,100

Purchases                                                                $97,500

Totals                                                                      $148,600

Credit :

Closing  Balance                                                      $46,000

Requisitioned for Production  (Balancing figure) $102,600

Totals                                                                      $148,600

Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing.Current Machine New Machine
Original purchase cost $15,230 $25,080
Accumulated depreciation $ 6,800 _
Estimated annual operating costs $24,950 $19,560
Useful life 5 years 5 years

If sold now, the current machine would have a salvage value of $8,490. If operated for the remainder of its useful life, the current machine would have zero salvage value. The new machine is expected to have zero salvage value after 5 years.

Prepare an incremental analysis. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Answers

Answer:

The incremental cost is ($10,360)

Explanation:

Analysis of total cost over the 5 year period

                                                      Retain Old Machine   Buy New Machine

Variable / Incremental Operating

Costs

Old Machine                                          124,750    

New Machine                                                                              97,800

Old Machine Book Value

Retain: Annual depreciation                    8,430                      

Buy : Lump sum written off                                                         8,430

Old Machine Disposal                                                                (8,490)

Purchase Cost of New Machine                                               25,080

Total Cost                                               133,180                       122,820

The use of new machine will result in lower cost for the next 5 years.The incremental cost is ($10,360)

The average fixed cost curve a. always declines with increased levels of output. b. always rises with increased levels of output. c. declines as long as it is above marginal cost. d. declines as long as it is below marginal cost.

Answers

Answer: a. always declines with increased levels of output.

Explanation: the average fixed cost curve graphically illustrates or shows the relation between average fixed cost a firm incurs in the short-run production of a good or service, and the quantity produced. The average fixed cost curve always declines with increases in the level of output resulting in a negatively sloped curve. This is to say that the average fixed cost is relatively high at smaller quantities of output, which then declines as the level of production increases--the more output increases, the more average fixed cost declines. Why this occurs is that a given fixed cost is spread over an increasingly larger quantity of output and as such, firms can profitably charge a lower price with increased output.

The rate on T-bills is currently 5%. P. Tree Company stock has a beta of 1.69 and a required rate of return of 15.4%. According to CAPM, determine the return on the market portfolio.

Answers

Answer:

11.15%

Explanation:

Given that

Risk free rate of return= 5%

Beta = 1.69

Expected rate of return = 15.4%

As per capital asset pricing model

Expected rate of return = Risk free rate of return + Beta × (Market rate of return - risk free rate of return)

15.4% = 5% + 1.69 × (Market rate of return - 5%)

After solving this

Market rate of return = 11.15%

Which of the following industries are classified as secondary industries (three correct answers): a. power utilities b. transportation c. beverages d. publishing e. fishing f. mining g. financial services

Answers

Answer:

Beverages, publishing, power utilities

Explanation:

The secondary industry is involved in the conversion of raw materials into goods

The primary industry is involved in the extraction of raw materials from the ground. E.g. fishing ,mining

The tertiary industry is involved in the provision of services. E.g. financial services

I hope my answer helps you

Which of the following best explains the purpose of a demand schedule?A. To calculate how much of a good consumers will use.
B. To demonstrate how supply affects demand.
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C. To indicate how supply and demand relate to price.
D. To show the level of demand at various prices.
SUBMIT

Answers

Answer:

a is your answer

Explanation: