The calculated value of the Z statistic to test the potential buyer's belief at the 1% significant level is -2.57512627.
The calculated Z score is slightly greater than the critical value of -2.575, the potential buyer's view that weekly store revenues are less than $7,000 stands vindicated.
Since store revenues are assumed to be normally distributed and population standard deviation is given, we can use the Z-test. The relevant test statistic is the Z-score.
We use the following formula for calculating the Z score:
Z = (X - μ) / (σ /√n)
Substituting the relevant values we get,
Z = (6400 -7000) / (1042/√20)
Z = -600 / 232.9982833
Z = -2.57512627
Answer:
cash 96,535 debit
discount on BP 3,465 debit
Bonds Payable 100,000 credit
Explanation:
We need to determinate the price at which the bonds were issued:
Which is the present value of the coupon payment and maturity
Coupon payment: 100,000 x 10% / 2 = 5,000
time 4 (2 years x 2 payment per year)
rate 0.06 (12% annual / 2 = 6% semiannual)
PV $17,325.5281
Maturity (face value) $100,000.00
time 4.00
rate 0.06
PV 79,209.37
PV c $17,325.5281
PV m $79,209.3663
Total $96,534.8944
As the bonds are issued below face value there is a discount:
100,000 - 96,535 = 3,465
the entry will recognize the cash procceds and the creation of a liaiblity
we will also use an auxiliar account for the discount on the bonds
Answer:
Who is the franchisor? McDonald's
Who is the franchisee? C.B. Management Inc.
In a franchise relationship, the <u>franchisee</u> is economically dependent on the <u>franchisor's</u> business system.
The franchise relationship is defined by the <u>contract</u>.
Did C.B. Management, Inc.’s failure to make a payment due more than thirty days earlier constitute a breach of the franchise contract? YES
Why? A) the contract provided McDonald's could terminate the contract when a payment was more than 30 days late.
Did the contract provide that the acceptance of a late payment waived McDonald's right to terminate for late payments? NO
What does an implied covenant of good faith and fair dealing require? That the parties act <u>reasonably</u>.
Did McDonald's act of accepting late payments in the past transform McDonald's right to terminate into a discretionary decision governed by the standard of good faith and fair dealing in the future? NO
Why? Which one of these reasons is not correct? B) the actions of the parties control this issue.
A court would likely find for <u>McDonald’s</u>
Answer: Decrease, Increase, Price flexibility.
Explanation: According to classical economics, a decrease in aggregate demand causes the price level to DECREASE in the long run. On the other hand, an increase in aggregate demand causes the price level to INCREASE in the long run. These changes occur because of PRICE FLEXIBILITY.
In a flexible market the forces of demand and supply determines the prices of commodities in the market.
As the demand Falls the prices also fall as the demand rises the prices of commodities also rises.
Answer:
c. $1,740 F
Explanation:
The
is the measure of the
between the amount of materials that is used in actual for the production process and the amount of the material that was expected or estimated to be used in the production process.
It is given that the Snuggs Corporation applies the variable overhead on direct labor hour basis.
Therefore, the SQ = 2.8 ounces per unit x 1100 units = 3080 ounces
The materials quantity variance = (AQ - SQ) x SP
= (2790 ounces - 3080 ounces) x $ 6 per ounce
= (-290 ounces) x $ 6
= $ 1740 F