Congress has the power to create special courts. True False

You observe a portfolio for five years and determine that its average return is 12.5% and the standard deviation of its returns

mihalych1998 [28]

Answer:

Yes, you can be confident that the portfolio will not lose more than 30% of its value next year

Explanation:

In this question , the average return of portfolio is 12.5% and the standard deviation is 19.5%. It is estimated that there will be 30% loss next year. The confidence interval is 95%.

Range = Average return ± 2 x Standard deviation Low aid = 12.5% - (2 x19.5%) =12.5% -39% = -26.5%

High end = 12.5% +(2 x19.5%) =12.5%+39% = 51.5%

Thus, the low end is

26.5%

The range of return at 95% confidence interval is -26.5% to 51.5%

8 0

2 years ago

Windsor Windows manufactures and sells custom storm windows for enclosed porches. Windsor also provides installation service for

Alina [70]

Answer:

June 1, 2021

No entry – neither party has performed under the contract.

August 1,2021

Dr. Cash $4,000

Dr. Accounts Receivable $700

Cr. Unearned Service Revenue $1,085

Cr. Sales revenue $3,615

Dr. Cost of goods Sold $2,300

Cr. Inventory $2,300

Explanation:

As no one performed under the contract on June 1, 2021, so there will be no entry on this day.

On August 1, 2021, Windsor has 2 performance obligations

First: Delivery of the windows

&

Second: Installation of the windows

Fair value of Windows = $4,000

Fair value of Installation services = $1,200

Fair Value of Contract = $4,000 + $1,200 = $5,200

Allocation of to revenue is based on the ratio of fair value of each performance to the total fair value of contract, As below

Windows = ($4,000 / $5,200) X $4,700 = $3,615 (round to nearest dollar)

Installation services = ($1,200/$5,200) X $4,700 = $1,085 (round to nearest dollar)

Total Revenue recognized = $4,700

8 0

3 years ago

applied vs. actual manufacturing overhead davis manufacturing corporation applies manufacturing overhead on the basis of 150% of

Mashcka [7]

Answer:

Subapplication of 22,500

journal entry:

WIP 4,500 debit

finished goods 2,250 debit

COGS 15,750 debit

factory overhead 22,500 credit

Explanation:

Direct Labor cost during the year:

60,000 + 30,000 + 210,000 = 300,000 direct labor

<u></u>

<u>Applied overhead:</u>

cost driver x predetermined rate

300,000 x 150% = 450,000

Actual overhead: 472,500

Subapplication of 22,500

as this is a significant amount we must adjust the WIP inventory, cost of goods sold and fnished goods inventory

to know the adjustment on each account we calcualte each account percentage:

300,000 --> 22,500

60,000 --> 60,000/300,000 x 22,500 = 4,500 endingWIP

30,000 --> 30,000/300,000 x 22,500 = 2,250 finished goods

210,000--> 210,000/300,000 x 22,500 = 15,750 COGS

we do the adjuting entry to increase overhead and transfer into each concept

8 0

3 years ago

Assume that on July 1, 2018, Togo's Sandwiches issues a $2.97 million, one-year note. Interest is payable at maturity.

allsm [11]

Answer:

7% interest at Cec-31 for 6 months:

Dr Interest expense(7%*$2,970,000*6/12) $ 103,950

Cr Interest payable $103,950

9% interest at Sept 30 for 3 months:

Dr Interest expense(9%*$2,970,000*3/12) $66,825

Cr Interest payable $66,825

6% interest at Oct 31 for 4 months:

Dr Interest expense(6%*$2,970,000*4/12) $ 59,400

Cr Interest payable $59,400

8% interest at Jan 31 for 7 months:

Dr Interest expense(8%*$2,970,000*7/12) $138,600

Cr Interest payable $ 138,600

Explanation:

The rationale for debiting interest expense is that is an expense account and increase in expense is normally debited to expense account while interest payable account is credited as the interest obligations are yet discharged by a way of paying cash to investors

5 0

3 years ago

Suppose your friend is a music major who sings at weddings. She has no fixed or marginal costs for singing and has two types of

ehidna [41]

Answer: a. $4,000

b. $5,000

Explanation:

a. If she can sing at each wedding but decides to maximise profits, she will only sing at the weddings of those paying her $200 as it is the higher of the two payment options.

Should she sing at the $200 customer weddings, she would make;

= 20 people * $200

= $4,000

b. Price Discrimination is the charging of different types of customers different prices for the same or similar goods.

If your friend knows how to perfectly charge the two different groups the different prices that they value her at then she will be able to attend and sing at both weddings making her revenue;

= (10* $100) + (20 * $200)

= 1,000 + 4,000

= $5,000

3 0

3 years ago