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2 years ago

Case 6.1 Demand for Gas Guzzlers

1 answer:

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Question 1.: From the standpoint of an automobile company, what sources of information in this article offer secondary data?

Answer: The

National Automobile Dealers Association surveyed consumers

visiting its Web site for information about car purchases, and it

learned they ranked price as most important, followed by make and

model, then performance. Fuel economy ranked last, with 3 percent

considering it most important and 11 percent considering it least

important.

Question 2: Suggest two or three other sources of data that might be of

interest to auto companies interested in forecasting demand.

Answer: Data from Automotive News,General Motors, and data

from the shoppers who visit Web sites such as www.kbb.com to look

up information.

Question 3: Online or at your library, look for information about recent

trends in SUV purchases. Report what you learned, and forecast whether SUV sales are likely to recover or continue

Answer: I don't know your library.

Explanation: This took me so long to do. Now my back hurts and my eyes are blurry. Hope this helps!

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Accounts and Notes Payable On February 15, Barbour Industries buys $800,000 of inventory on credit. On March 31, Barbour approac

Anettt [7]

Answer and Explanation:

The journal entries are shown below:

On Feb 15

Purchases $800,000

To Accounts payable $800,000

(Being the purchase of inventory on credit is recorded)

On Mar 31

Accounts payable $800000

To Notes payable $800000

(Being the issuance of note is recorded)

On Sept 30

Notes payable $800,000

Interest expense $40,000

To Cash $840,000

(Being the payment of note and interest is recorded)

The interest expense is computed below:

= $800,000 × 10% × 6 months ÷ 12 months

= $40,000

The six months is calculated from Mar 31 to Sep 30

Only these entries are passed

5 0

3 years ago

ABO purchased a truck at the beginning of 2018 for $140,000. They sold the truck at the end of 2019 for $95,000. If the expected

kompoz [17]

Answer:

Therefore, the entry to record the sale of the truck involves B. Debit Loss $5,000.

Explanation:

First determine the Accumulated depreciation on the Truck

Depreciation Expense = Cost - Residual Value / Estimated Useful years

= ($140,000 - $20,000) / 6

= $20,000

Accumulated Depreciation :

2018 : $20,000

2019 : $20,000

Total : $40,000

Then Process the Sales journal to determine the profit or loss on sale of Truck as follows :

Accumulated Depreciation $40,000 (debit)

Cash $95,000 (debit)

Profit and Loss $5,000(debit)

Cost : Truck $140,000 (credit)

Conclusion :

Therefore, the entry to record the sale of the truck involves B. Debit Loss $5,000.

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3 years ago

The following is the stockholders' equity section of Harbor Co.'s balance sheet on December 31:Common stock $10 par, 100,000 sha

AnnyKZ [126]

Answer:

Book value per share: 48.88

Explanation:

The book value per share is the minimun value of the company equity.

Book value per share = (Total Equity - Preferd Equity) / Total shares outstanding

Book value per share = 2,200,000 / 45,000

Book value per share = 48.88

In the numerator, we do not deduct anything from equity because there are no preferred shares. In the dividend, the outstanding shares are 45,000, because 50,000 have been issued and 5,000 are held in treasury, despite being authorized to issue 100,000 shares.

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3 years ago

Check on concentration of economic Power

ZanzabumX [31]

What's your question?

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3 years ago

These financial conglomerates provide a range of services, such as investment banking, commercial banking, and financial advisin

Degger [83]

Answer:

These financial conglomerates provide a range of services, such as investment banking, commercial banking, and financial advising. ⇒ FINANCIAL SERVICES CORPORATIONS.

The institution described is a Financial Services Corporation as they offer many services to customers including all the above services. The firm type depends on the services it offers.

They are owned by members so that members can share funds among themselves. Members who save deposit the funds. These funds are then loaned to members who need the funds. ⇒ CREDIT UNIONS.

This is a Credit Union. Credit Unions were designed to ensure that people had access to low interest loans. They are like banks in that they loan money but they only loan to members. Members own the Union and it is run on a non-profit basis which is why rates are so low.

With the use of advanced investment techniques, these largely unregulated portfolios are invested in securities. The investment objective is to offset potential losses by investing in counterbalancing securities. They are open to only a select class of investors. ⇒ HEDGE FUNDS.

Hedge funds invest in derivatives a lot and are largely unregulated. They use very advanced investment techniques to earn high returns for their exclusive class of investors who pool funds to provide the Hedge fund with capital for investment.

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3 years ago