Marcos owns 1,500 shares of ABC stock which he purchased at $44 a share. The stock has been steadily decreasing in value and he wants to cut his losses now as he expects the stock price to decline further. Which type of order should Marcos place

Answers

Answer 1
Answer:

Answer:

Market sell order for 1,500 shares

Explanation:

The type of order that Marcos should place is Market sell order for 1,500 shares because he already owns 1,500 shares of the ABC stock in which the ABC stock shares was purchased at $44 per share.

Since the stock has been decreasing in value in which he wants to cut his losses now because the stock price may continue to decrease, the best thing for him to do is to use the Market sell order for the 1,500 shares in order to cut the losses that may arise and to avoid losing all the Total amount of the shares bought which is $66,000 ( 1,500 shares ×$44).


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Stooge Enterprises manufactures ceiling fans that normally sell for $93 each. There are 340 defective fans in inventory, which cost $59 each to manufacture. These defective units can be sold as is for $23 each, or they can be processed further for a cost of $41 each and then sold for the normal selling price. Stooge Enterprises would be better off by aA. $9,860 net increase in operating income if the ceiling fans are repaired.B. $23,800 net increase in operating income if the ceiling fans are sold as is.C. $23,800 net increase in operating income if the ceiling fans are repaired.D. $9,860 net increase in operating income if the ceiling fans are sold as is.
This year, Barney and Betty sold their home (sales price $750,000; cost $200,000). All closing costs were paid by the buyer. Barney and Betty owned and lived in their home for 18 months. Assuming no unusual or hardship circumstances apply, how much of the gain is included in gross income

During January, Luxury Cruise Lines incurs employee salaries of $2.9 million. Withholdings in January are $221,850 for the employee portion of FICA, $435,000 for federal income tax, $181,250 for state income tax, and $29,000 for the employee portion of health insurance (payable to Blue Cross Blue Shield). The company incurs an additional $179,800 for federal and state unemployment tax and $87,000 for the employer portion of health insurance.Required:
A) Record the employee salary expense, withholdings, and salaries payable.
B) Record the employer-provided fringe benefits.
C) Record the employer payroll taxes.

Answers

Explanation:

The journal entries are shown below:

a. Salaries expense $2,900,000

             To Income tax payable $616,250  ($435,000 + $181,250)

             To FICA tax payable  $221,850

             To Account payable $29,000

             To Salaries payable $2,032,900

(Being the employee salary expense, withholdings, and salaries payable is recorded)

b. Salaries expense $87,000

                 To Account payable $87,000

(Being the employer-provided fringe benefits is recorded)

c. Payroll tax expense $179,800

   FICA tax expense $221,850

              To Unemployment tax payable $401,650

(being the employer payroll taxes is recorded)

Name a product or a company that you are familiar with. Discuss how environmental forces (social, economic, technological, competitive, and regulatory) will impact that product/company over the next five years.

Answers

Answer:

The name of the product is Coke and this is a Pestel Analysis.

PESTEL is short for Political, Economic, Social, Technological, Environmental, and Legal. All representing factors that can and will impact the operations of any business.

Explanation:

Coca-Cola is a global company with is in the business of providing refreshments to its customers by the sale of Soda or soft drinks. Because of the nature of the product, the industry in which they play is heavily regulated and they must use the best technology in order to stay relevant, competitive, and dominant in the market.  

 

Political factors

One of the regulators to whom Coca-cola must dance to its tune is the Food and Drugs Administration (FDA) a Federal Agency of the Department of Health and Human Services in the US. All Coca-cola product must meet their requirements as stipulated by law. If the laws enforced by FDA changes it could adversely affect the distribution, taxes, accounting, and all other operations of Coca-Cola.  

 

Economical factors

Some economic factors that may affect a business like Coca-cola are:

Interest rates, exchange rates, recession, Inflation, Taxes, Demand / Supply.

One critical factor in this group which the company must be on the lookout for always is changes in taste and demand. Consumers are making a shift globally towards more healthy alternatives to soda. This is because, as the world becomes more sedentary due to shifts in global economic patterns as induced by the pandemic, risk factors relating to health care on the increase. Hence consumers want to ensure that they cut down on foods and beverages that increase their predisposition to conditions such as obesity, cancer, high blood pressure, etc.

To stay relevant and competitive, the company has to seek out healthy drinks that speak to all the various localities (which are over 200 countries).

Social factors

Examples of social factors that can affect a business are:

e-commerce adaptation, purchasing habits, ease of adoption of technology, changes in customer service expectation, the education level of consumers.

The purchasing habit for Coca-cola is changing in lots of countries. People are becoming more predisposed to buying products online. How will that affect the demand for the company's products? Will it increase as online food orders increase? can the company position itself to take advantage of the trend? If yes, then it is making taking advantage of its changing social environment.

Technological factors

Adoption of best-in-class machinery is one of the strategies that has enabled Coca-Cola to achieve higher quality and quantity of its products. Speed of delivery, processes that are optimized for the lowest costs and highest outputs are now being made possible with advances in technology. Coca-cola is taking advantage of technology especially in regions such as Europe.  

Legal factors

Product liability, third-party liability, employer-employee (labor) relations, compliance, and regulatory factors are all within the scope of Coca-Cola's legal universe.  Constantly managing this space of its operations will keep it from experiencing avoidable erosion of its bottom line and brand equity.

Environmental factors

Companies no longer compete on the basis of profitability alone. Global companies are the target of onslaughts from those who campaign against the degradation of the environment. One way they do so is to discourage the consumption of the goods of a company whose activities are harming the environment.

So companies all over the world are not competing based on the triple bottom line criteria: People, Planet, Profit.

This answers the questions whether

  1. Coca-cola is in compliance with international best practices as far as labor law is concerned;
  2. How does the company handle its effluents and wastes? is it just discharging them into the earth without treatment? or is it creatively converting them into economic products? how responsible is the company socially?
  3. then of course there is the issue of keeping the books in the black

Cheers

In a perfectly competitive market, the process of entry and exit will end when (i) accounting profits are zero. (ii) economic profits are zero. (iii) price equals minimum marginal cost. (iv) price equals minimum average total cost.

Answers

Answer:

 (ii) economic profits are zero

Explanation:

A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.

In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.

I hope my answer helps you

A Swiss watch company advertises its history of superior craftsmanship. The company thinks that this would​ a. ​Make the demand for the product less elastic b. ​Make the customers less sensitive to the price c. ​Assist them with differentiating their product d. ​All of the above

Answers

Answer:

The correct answer is letter "B": ​Make the customers less sensitive to the price.

Explanation:

There are several reasons that could make products become elastic or inelastic. Reputation typically makes goods and services be considered inelastic. These types of products do not see a change in their quantity demanded in front of changes in price.

Thus, if a Swiss watch company promotes their history of superior craftsmanship is attempting to aware consumers about its watch quality and reputation so if they decide to increase prices consumers will be less sensitive to the change.

Oriole Company has collected the following information related to its December 31, 2017, balance sheet.Accounts receivable $16,000
Accumulated depreciation—equipment 46,700
Cash 11,000

Equipment $173500
Inventory 64,500
Supplies 5,000

Requried:
Prepare the assets section of Oriole's balance sheet.

Answers

Answer:

Oriole Company

Assets side of the Balance Sheet:

Assets:

Current Assets:

Cash                               $11,000

Accounts Receivable      16,000

Supplies                           5,000

Inventory                       64,500           $96,500

Non-current assets:

Equipment                 $173,500

less acc. depreciation   47,700          $125,800

Total Assets                                      $222,300

Explanation:

The assets side of the balance sheet is usually prepared in the order of liquidity, starting with the most liquid assets, Cash in the Current Assets subsection, or working capital for running the operations of the business.  It ends with the most illiquid assets called non-current assets, which form the core resources of the entity in generating revenue.  The accumulated depreciation is subtracted from the non-current assets to obtain the net non-current or fixed assets value.

Stonehall Inc. recently borrowed $685,000 from its bank at a simple interest rate of 10 percent. The loan is for eight months and, according to the loan agreement, the interest should be added to the amount borrowed and the total amount will be repaid in monthly installments. The loan's annual percentage rate (APR) is:________a. 20.00%
b.18.25%
c. 15.05%
d. 13.33%

Answers

Answer:

a. 20.00%  

Explanation:

Monthly loan payment

= (685000*10%*8/12 + 685000)/8

= $91,333.33

PV = -685000

Nper = 8

Using RATE function

= RATE(8,91333.33,-685000,0)*12

= 20%

Therefore, The loan's annual percentage rate (APR) is 20%.

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