Answer and Explanation:
The closing journal entries are shown below:
1. Appropriations Dr $305,000
To Estimated revenues $300,000
To BUdgteary fund balance $5,000
(Being budgetary accounts are closed),
2. Revenues Dr $300,000
To Expenditures $285,000
To Fund balance $15,000
(Being the financial accounts are closed)
Senff Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Activity Cost Pools Activity Rate Setting up batches $ 93.00 per batch Processing customer orders $ 82.83 per customer order Assembling products $ 17.26 per assembly hour Data concerning two products appear below: Product V91Z Product V21I Number of batches 69 12 Number of customer orders 20 9 Number of assembly hours 492 697 How much overhead cost would be assigned to Product V91Z using the activity-based costing system? (Round your intermediate calculations to 2 decimal places.)
Answer:
Total allocated overhead= $16,742.64
Explanation:
Giving the following information:
Activity Cost Pools Activity Rate
Setting up batches $ 93.00 per batch
Processing customer orders $ 82.83 per customer order
Assembling products $ 17.26 per assembly hour
Product V91Z
Number of batches 69
Number of customer orders 20
Number of assembly hours 492
To calculate the allocated overhead, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Setting up= 93*69= 6,417
Processing= 82.83*20= 1,656.6
Assembling= 17.26*492= 8,669.04
Total allocated overhead= $16,742.64
This year, Druehl, Inc., will produce 57,600 hot water heaters at its plant in Delaware, in order to meet expected global demand. To accomplish this, each laborer at the plant will work 200 hours per month. If the labor productivity at the plant is 0.15 hot water heaters per labor hour, how many laborers are employed at the plant? Number of laborers employed by the plant = nothing laborers (round your answer to the nearest whole number).
Answer:
The number of labor employed by the plant is 160
Explanation:
The computation of the labor employed at the plant is shown below:
= Yearly production ÷ (labor hours per month × productivity × month per year)
= 57,600 ÷ (200 hours × 0.15 × 12)
= 57,600 ÷ 360
= 160
Hence, the number of labor employed by the plant is 160 and the same is to be considered
We simply applied the above formula
_______ is an example of a capability that is based in the functional area of distribution.
benefits for hiring more workers in shops than others
Answer: Improve employee morale and mental health. Bring new ideas to your company. Increase the skill set of your workforce.
hope this helps
plz mark brainleist
Robin is planning for her retirement. She is currently 37 years old and plans to retire at age 62 and live until age 97. Robin currently earns $100,000 per year and anticipates needing 80% of her income during retirement. She anticipates Social Security will provide her with $15,000 per year at age 62, leaving her with required savings to provide $65,000 ($100,000 x 0.80 - $15,000) annually during retirement. She believes she can earn 11% on her investments and inflation will be 2% per year. Robin would like to preserve her capital so that the capital balance required at age 62 is maintained until age 97. How much must Robin save at the end of each year, if she wants to make her last savings payment at age 62 to meet her retirement goal and maintain her capital balance
Answer:
$10,899.37.
Explanation:
We can calculate the robin's saving at the end of each year if she wants to make her last savings payment at age 62 to meet her retirement goal and maintain her capital balance by calculating The Present Value of an annuity of $ 65000 with 2% inflation per annum for 25 years
The annual amount needed after age of 62 years after 25 years by Robin is $65000.
The Present Value of an annuity of $ 65000 with 2% inflation per annum for 25 years will be = 65000 * PVIFA 2, 25
PV = 65000 * 19.5235
PV = $1,269,028
For $1,269,028 with 11% return on savings for 25 years Robin will have to save amount X in the following equation:
X= 1269028/ FVIFA 11, 25
X= $10,899.37
River Enterprises has $505 million in debt and 22 million shares of equity outstanding. Its excess cash reserves are $14 million. They are expected to generate $190 million in free cash flows next year with a growth rate of 2% per year in perpetuity. River Enterprises' cost of equity capital is 13%. After analyzing the company, you believe that the growth rate should be 3% instead of 2%. How much higher (in dollars) would the price per share be if you are right
Answer:
$7.85
Explanation:
the firm's total value = $190,000,000 / (13% - 2%) = $1,727,272,727
equity = $1,727,272,727 - $505,000,000 (debt) = $1,222,272,727
price per stock = $1,222,272,727 / 22,000,000 = $55.56 per stock
if you are right and the firm's growth rate is 3%, then:
the firm's total value = $190,000,000 / (13% - 3%) = $1,900,000,000
equity = $1,900,000,000 - $505,000,000 (debt) = $1,395,000,000
price per stock = $1,395,000,000 / 22,000,000 = $63.41 per stock
the difference = $63.41 - $55.56 = $7.85 or 14.13%
Pincus Associates uses the allowance method to account for bad debts. During 2021, its first year of operations, Pincus provided a total of $250,000 of services on account. In 2021, the company wrote off uncollectible accounts of $10,000. By the end of 2021, cash collections on accounts receivable totaled $210,000. Pincus estimates that 20% of the accounts receivable balance at 12/31/2021 will prove uncollectible.Required:1. What journal entry did Pincus record to write off uncollectible accounts during 2021?2. What journal entry should Pincus record to recognize bad debt expense for 2021?
Answer:
Ending Accounts Receivable = Services on Account - Amount Written Off - Collection of accounts receivables
= $250,000 - $10,000 - $210,000
= $30,000
Required Balance in Allowance for Un-collectible accounts at Year end = Accounts Receivable at 12/31/2021 * 20%
= $30,000 * 20%
= $6,000
Bad debt Expense = Required Balance in Allowance account + Amount written off
= $6,000 + $10,000
= $16,000
Journal Entries
Event General Journal Debit Credit
1 Allowance for doubtful accounts $10,000
To Accounts Receivable $10,000
2 Bad debt Expense $16,000
To Allowance for doubtful accounts $16,000
You are leading your organization's effort to purchase and install new accounting software. The project will cost an estimated $3 million, and over the past few months, you have had meetings with several potential vendors to evaluate their offerings and capabilities. It is early March, and the National Collegiate Athletic Association (NCAA) basketball tournament is underway. You receive a phone call from one of the sales reps you met with recently. He has two tickets to the second-round games next weekend and wants to give them to you. Can you accept this offer without raising any concerns
Answer:
No
Explanation:
This is the case because we are told the individual already had meetings with several potential vendors to evaluate their offerings and capabilities. However, one of the sales reps he met with recently is arranging for what appears to be an informal meeting (to watch a basketball tournament). By accepting this offer it may raise the concern of getting a special favor or even a bribe.
Tyler Apiaries sells bees and beekeeping supplies. Bees (including a queen) are shipped in special packages according to weight. Suppose Tyler changes its processes so that the average package weight is now kg, with a new standard deviation of kg. Tyler markets the packages of bees as weighing kg, and the lower and upper tolerance limits are kg and kg, respectively. Calculate the process capability index for the weight of the bee packages. Is Tyler able to meet the tolerance limits? The process capability index for the weight of the bee packages is nothing. (Enter your response rounded to three decimal places.)
Answer: 0.33
Explanation:
Process capability index (CPK) will be the minimum value between the following;
= [(Mean - Lower specification) / (3 * standard deviation)] and [ (Upper specification - Mean) / (3 * standard deviation)]
Lower specification = 1.1
Upper specification = 1.7
Mean = 1.5
Standard deviation = 0.2
= [(Mean - Lower specification) / 3 * standard deviation]
= [(1.5 - 1.1) / (3 * 0.2)]
= 0.67
= [ (1.7 - 1.5) / (3 *0.2)]
= 0.33
CPK = 0.33
A CPK of less than 1 means that Tyler will not be able to meet the tolerance limits as the process does not meet specifications.
the incremental manuBellucci Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.90 Direct labor $ 3.90 Variable manufacturing overhead $ 1.40 Fixed manufacturing overhead $ 102,850 Sales commissions $ 1.00 Variable administrative expense $ 0.70 Fixed selling and administrative expense $ 37,400 The incremental manufacturing cost that the company will incur if it increases production from 8,500 to 8,501 units is closest to (assume that the increase is within the relevant range):facturing cost that the company will incur
Answer: $12.20
Explanation:
Total Manufacturing cost at 8,500 units;
= Direct materials + Direct labor + Variable Manufacturing Overhead + Fixed manufacturing overhead
= (6.9 * 8,500) + ( 3.9 * 8,500) + ( 1.4 * 8,500) + 102,850
= $206,550
Total Manufacturing cost at 8,501 units;
= (6.9 * 8,501) + ( 3.9 * 8,501) + ( 1.4 * 8,501) + 102,850
= $206,562.20
Incremental cost = 206,562.2 - 206,550
= $12.20
Ronald, who consumes only hamburgers and hot dogs, has a weekly income of $50. He is currently consuming 20 hamburgers, at a price of $2 each, and 10 hot dogs, at a price of $1 each. If the last hamburger and the last hot dog both added 50 units to Ronald's total utility, he a. is making the utilitymaximizing choice. b. should buy more hamburgers and fewer hot dogs. c. should buy more hot dogs and fewer hamburgers. d. obtains more additional utility per dollar from hot dogs than from hamburgers. e. both c and d
Answer:
e. both c and d
c. should buy more hot dogs and fewer hamburgers. d. obtains more additional utility per dollar from hot dogs than from hamburgers.Explanation:
in order to determine if Ronald is maximizing his utility, we must calculate the utility per dollar spent:
hamburgers's utility = utils / price = 50 / $2 = 25 utils per $hot dogs' utility = utils / price = 50 / $1 = 50 utils per $Ronald is not maximizing his utility since he is getting twice as much utils per dollar by consuming hot dogs. This means that he should increase the number of hot dogs eaten and decrease the number of hamburgers.
Cranium, Inc., purchases term papers from an overseas supplier under a continuous review system. The average demand for a popular mode is 300 units a day with a standard deviation of 30 units a day. It costs $60 to process each order and there is a five-day lead-time. The holding cost for a paper is $0.25 per year and the company policy is to maintain a 98% service level. Cranium operates 200 days per year. Use the information in Scenario 9.7. What is the annual cost of holding the safety stock necessary to maintain the 98% service level
Answer:
B) greater than $30 but less than $40
the actual result is $39Explanation:
the options are missing:
A) less than or equal to $30
B) greater than $30 but less than $40
C) greater than $40 but less than $50
D) greater than $50
we must first calculate safety stock = (Z-score x √lead time x standard deviation of demand) + (Z-score x standard deviation of lead time x average demand)
Z-score for 98% confidence level = 2.326standard deviation of demand = 30√lead time = √5 = 2.23607we are not given any standard deviation of lead time, so we can assume that it is 0safety stock = (2.326 x √2.23607 x 30) + (2.326 x 0 x 300) = 156.03 ≈ 156 units
the annual holding cost of 156 units = 156 x $0.25 = $39
How would you study for a test? I will probably pick Brainlist. Just don't ask "Please pick Brainlist."
Answer:
To study for a test I would reread the notes and go over them with a friend to memorize the material. Or use index cards to memorize the vocabulary words with their definitions. etc.
Explanation:
Bethany is looking for a Mother’s Day gift for her mom and wants to purchase some type of perfume or cologne. She knows that her mom currently wears a perfume made by Christian Dior called J’adore. When she arrives at the perfume counter, she notices that Christian Dior has several new scents available and a variety of gift boxes that also include powder and body lotion. Bethany is trying to decide what to purchase—whether to try a new fragrance or not. Bethany is willing to spend time trying the different scents, but since the gift boxes only cost $75, there’s little risk involved. What type of consumer decision will this purchase most likely be for Bethany?
Answer: A) limited decision making
Explanation:
When a customer is experiencing limited decision making, they are looking to make a choice that requires that they spend a decent amount of time doing some sort of research in order to make a decision.
The research time will not be quite extensive that it would require in-depth research, but it should be more than basic time spent on normal purchase decisions.
Bethany is willing to spend time to try the different scents so this is a limited decision making consumer decision.
Match each definition with its related term by selecting the appropriate letter from the dropdown below.
A liability account used to record the obligation to provide future services or return cash that has been received before services have been provided.
B. Costs that result when a company sacrifices resources to generate revenues in the current period.
C. A type of asset account used to record the benefits obtained, when cash is paid before expenses are incurred.
D. The amount charged to customers for providing goods or services.
Term Definition
Expenses
Unearned Revenue
Prepaid Expenses
Revenues
Answer:
A liability account used to record the obligation to provide future services or return cash that has been received before services have been provided. ⇒ UNEARNED REVENUE represents cash paid in advance by your customers for future services or goods that you must provide.
B. Costs that result when a company sacrifices resources to generate revenues in the current period. ⇒ EXPENSES represent all the money or resources that a business uses in its regular business operations.
C. A type of asset account used to record the benefits obtained, when cash is paid before expenses are incurred. ⇒ PREPAID EXPENSES represent services paid in advance, e.g. you purchase a 2 year insurance policy.
D. The amount charged to customers for providing goods or services. ⇒ REVENUES represent the money that your company collects or should collect in the future in exchange for providing goods or services to its customers.
Lanni Products is a start-up computer software development firm. It currently owns computer equipment worth $30,000 and has cash on hand of $20,000 contributed by Lanni?s owners. For each of the following transactions, identify the real and/or financial assets that trade hands. Are any financial assets created or destroyed in the transaction?a. Lanni takes out a bank loan. It receives $50,000 in cash and signs a note promising to pay back the loan over three years.b. Lanni uses the cash from the bank plus $20,000 of its own funds to finance the development of new financial planning software.c. Lanni sells the software product to Microsoft, which will market it to the public under the Microsoft name. Lanni accepts payment in the form of 2,500 shares of Microsoft stock.d. Lanni sells the shares of stock for $50 per share and uses part of the proceeds to pay off the bank loan.Required:a. Prepare its balance sheet just after it gets the bank loan. What is the ratio of real assets to total assets?b. Prepare the balance sheet after Lanni spends the $70,000 to develop its software product. What is the ratio of real assets to total assets?c. Prepare the balance sheet after Lanni accepts the payment of shares from Microsoft. What is the ratio of real assets to total assets?
Answer:
a. Lanni takes out a bank loan. It receives $50,000 in cash and signs a note promising to pay back the loan over three years.
FINANCIAL ASSET CREATED: when the loan was received, a financial asset was created. Money is exchanged for a promissory note.b. Lanni uses the cash from the bank plus $20,000 of its own funds to finance the development of new financial planning software.
REAL ASSET CREATED: when the software was developed, a real asset was created. Money was invested in developing the software.c. Lanni sells the software product to Microsoft, which will market it to the public under the Microsoft name. Lanni accepts payment in the form of 2,500 shares of Microsoft stock.
FINANCIAL ASSET CREATED: when the software was traded, a financial asset was created. A real asset was traded in exchange for financial assets.d. Lanni sells the shares of stock for $50 per share and uses part of the proceeds to pay off the bank loan.
FINANCIAL ASSET DESTROYED: when the loan is paid back, the financial asset (loan) ceases to exist. When the money is paid back to the bank, the loan and the promissory note cease to exist.a-1. Prepare its balance sheet just after it gets the bank loan.
Lanni Products
Balance Sheet
After it got the bank loan
Assets:
Cash $70,000
Computer equipment $30,000
Total assets $100,000
Liabilities:
Notes payable $50,000
Total liabilities $50,000
Shareholders's equity :
Paid in capital $50,000
Total shareholders's equity $50,000
Total liabilities and shareholders' equity $100,000
a-2. What is the ratio of real assets to total assets?
ratio of real assets to total assets = computer equipment / total assets = $30,000 / $100,000 = 30%
b-1. Prepare the balance sheet after Lanni spends the $70,000 to develop its software product.
Lanni Products
Balance Sheet
After it developed the software product
Assets:
Software $70,000
Computer equipment $30,000
Total assets $100,000
Liabilities:
Notes payable $50,000
Total liabilities $50,000
Shareholders's equity :
Paid in capital $50,000
Total shareholders's equity $50,000
Total liabilities and shareholders' equity $100,000
b-2. What is the ratio of real assets to total assets?
ratio of real assets to total assets = (software + computer equipment) / total assets = $100,000 / $100,000 = 100%
c-1. Prepare the balance sheet after Lanni accepts the payment of shares from Microsoft.
Lanni Products
Balance Sheet
After it sold the software product to Microsoft
Assets:
Shares of Microsoft $125,000
Computer equipment $30,000
Total assets $155,000
Liabilities:
Notes payable $50,000
Total liabilities $50,000
Shareholders's equity
Paid in capital $50,000
Retained earnings $55,000
Total shareholders's equity $105,000
Total liabilities and shareholders' equity $155,000
c-2. What is the ratio of real assets to total assets?
ratio of real assets to total assets = computer equipment / total assets = $30,000 / $155,000 = 19.35%
a. When the Lanni takes out a bank loan. It receives $50,000 in cash and also signs a note promising to pay back the loan over three years.
Then the FINANCIAL ASSET CREATED: when the loan was received, a financial asset was created. that is Money is exchanged for a promissory note.
b. Although when the Lanni uses the cash from the bank plus $20,000 of its funds to finance the development of new financial planning software.
When the REAL ASSET CREATED: so that when the software was developed, a real asset was created. although that is Money was invested in developing the software.
c. Then Lanni sells the software product to Microsoft, which will market it to the public under the Microsoft name. Then Lanni accepts payment in the form of 2,500 shares of Microsoft stock.
Then the FINANCIAL ASSET CREATED: when the software was traded, a financial asset was created. so that A real asset was traded in exchange for financial assets.
d. After that the Lanni sells the shares of stock for $50 per share and also that the uses part of the proceeds to pay off the bank loan.
Thus that FINANCIAL ASSET DESTROYED: when the loan is paid back, the financial asset (loan) ceases to exist. so that When the money is paid back to the bank, the loan and also that the promissory note ceases to exist.
a-1. so that when we Prepare its balance sheet just after it gets the bank loan.
Lanni Products Balance Sheet After it got the bank loan Assets: Cash $70,000 Computer equipment $30,000 Total assets $100,000 The the Liabilities is: Notes payable $50,000 The Total liabilities is $50,000 Then the Shareholders' equity: Paid-in capital $50,000 To the Total share-holders' s equity $50,000 When the Total liabilities and shareholders' equity $100,000 So that is a-2. when the ratio of real assets to total assets that is Then the ratio of real assets to total assets = computer equipment / total assets = $30,000 / $100,000 = 30% After that the b-1. when we Prepare the balance sheet after Lanni spends $70,000 to develop its software product. Lanni Products Balance Sheet After it developed the software product Assets: Software $70,000 Computer equipment $30,000 Total assets $100,000 Liabilities: Notes payable $50,000 Total liabilities $50,000 Share-holders' s equity : Paid in capital $50,000 Then the Total share-holders' s equity $50,000 Total liabilities and shareholders' equity $100,000 b-2. the ratio of real assets to total assets that is ratio of real assets to total assets = (software + computer equipment) / total assets = $100,000 / $100,000 = 100% c-1. when we Prepare the balance sheet after Lanni accepts the payment of shares from Microsoft. Lanni Products Balance Sheet After it sold the software product to Microsoft Assets: Shares of Microsoft $125,000 Computer equipment $30,000 Total assets $155,000 Liabilities: Notes payable $50,000 Total liabilities $50,000 Share-holders' s equity Paid in capital $50,000 Retained earnings $55,000 Total shareholders' s equity $105,000 Total liabilities and shareholders' equity $155,000 c-2. the ratio of real assets to total assets When the ratio of real assets to total assets = computer equipment / total assets = $30,000 / $155,000 = 19.35%Learn more:
https://brainly.com/question/20533783
Company A sells paper coffee cups to all Costa Coffee locations in the UK. Company B sells dinner plates to Nando’s in the UK. Company A charges 1 pound for a pack of 100 cups and Company B charges 3 pounds for 1 dinner plate. Tell us exactly what information you would need to determine whether Company A or Company B has higher annual revenue and explain how you would calculate these two figures.
Answer: Number of Units Sold
Explanation:
To calculate Revenue there are two details needed at the most basic level. These are the price per unit of the good being sold and the number of units sold.
Revenue = Price * Number of units sold
The question provides us with the price per good to be sold which is £1 per pack of 100 cups for Company A and £3 for 1 dinner plate for Company B.
To know who has the higher revenue, we would need the number of units sold of each.
For instance, assuming Company A sold 10 packs of 100 cups and Company B sold 10 dinner plates, the company revenues would be;
Company A = 10 packs * £1
= £10
Company B = 10 dinner plates * £3
= £30.
Company B would have a higher revenue which are able to know due to the number of units sold being known.
Lionel is an unmarried law student at State University Law School, a qualified educational institution. This year Lionel borrowed $27,500 from County Bank and paid interest of $1,650. Lionel used the loan proceeds to pay his law school tuition. Calculate the amounts Lionel can deduct for higher education expenses and interest on higher-education loans under the following circumstances: (Leave no answer blank. Enter zero if applicable.) a. Lionel's AGI before deducting interest on higher-education loans is $50,000..
Answer:
Since 2019, the deduction limit for interest expense deductions on qualified higher education loans is $2,500. In order to qualify for this deduction, the taxpayer's adjusted AGI must be less than $85,000 for single filers (Lionel's income is below the threshold).
So Lionel will be able to deduct $1,650 as interest expense (above the line deduction).
Lionel can also deduct $2,500 form the American Opportunity Tax Credit for higher education expenses.
On January 1, 2019, Company A acquired 100% of the voting common stock of Company B from Company B’s shareholders. Prior to the transaction, Company A had 11,440 shares of voting common stock outstanding and Company B had 5,000 shares of voting common stock outstanding. Which of the following terms or conditions of the transaction is an indicator that Company B is the acquiring entity for accounting purposes? a. The full slate of the Board of Directors is elected every two years. Company A Directors (from before the transaction) occupy 8 of the 12 seats on Company A’s Board after the acquisition. Company B Directors (from before the transaction) occupy 4 of the 12 seats on Company A’s Board after the acquisition.b. Company A issued 14,560 new shares of Company A common stock to execute the transaction.c. Company A changed its name to "Company B."d. Immediately after the transaction, Company B’s Chief Operating Officer became Company A’s Chief Operating Officer. All other executive positions were held by Company A executives
Answer: b. Company A issued 14,560 new shares of Company A common stock to execute the transaction.
Explanation:
The terms or conditions of the transaction which is an indicator that Company B is the acquiring entity for accounting purposes is that Company A issued 14,560 new shares of Company A common stock to execute the transaction.
The above scenario was chosen because when 14,560 shares are being held, the former shareholders that were in company B will own:
= 14,560/(11,440 + 14,560)
= 14560/26000
= 56% of common stock.
Because 56% of common stock is being own by them means that the company is being controlled by them as they own majority and therefore the board will be elected by them for the next two years.
If GDP is $25 trillion, in how many years will GDP increase to $100 trillion if annual growth is 5 percent?
Answer:
The number of years is 28 years
Explanation:
The computation is shown below:
Gross domestic product × (1 + growth rate)^time = Increased Gross domestic product
$25 trillion × (1 + 0.05)^time = $100 trillion
(1 + 0.05)^time = 4 trillion
t = ln 4 ÷ ln 1.05
= 28 years
Hence, the number of years is 28 years
We simply applied the above formula so that the correct number of years could come
The (annual) expected return and standard deviation of returns for 2 assets are as follows: Asset A Asset B E[r] 10% 20% SD[r] 30% 50% The correlation between the returns is 0.15. a. Calculate the expected returns and standard deviations of the following portfolios: (i) 80% in A, 20% in B (ii) 50% in A, 50% in B (iii) 20% in A, 80% in B b. Find the weights for a portfolio with an expected return of 25%
Answer:
Part A
(i) Weight(A) = 0.80 , Weight(B) = 0.20
ER(portfolio) = { ER(A) * Weight(A) } + { ER(B) * Weight(B) }
= { 10 * 0.80 } + { 20 * 0.20 }
= 12%
SD(portfolio) = { SD(A)^2 * W(A)^2 + SD(B)^2 * W(B)^2 + 2*SD(A) * SD(B) * W(A) * W(B) * CORR }^1/2
= { 900*0.64 + 2500*0.04 + 2*30*50*0.8*0.2*0.15}^1/2
= {748}^1/2
= 27.35%
(ii) Weight(A) = 0.50 , Weight(B) = 0.50
ER(portfolio) = { ER(A) * Weight(A) } + { ER(B) * Weight(B) }
= { 10 * 0.50 } + { 20 * 0.50 }
= 15%
SD(portfolio) = { SD(A)^2 * W(A)^2 + SD(B)^2 * W(B)^2 + 2*SD(A) * SD(B) * W(A) * W(B) * CORR }^1/2
= { 900*0.25 + 2500*0.25 + 2*30*50*0.5*0.5*0.15}^1/2
= {917.5}^1/2
= 30.29 %
(iii) Weight(A) = 0.20 , Weight(B) = 0.80
ER(portfolio) = { ER(A) * Weight(A) } + { ER(B) * Weight(B) }
= { 10 * 0.20 } + { 20 * 0.80 }
= 18 %
SD(portfolio) = { SD(A)^2 * W(A)^2 + SD(B)^2 * W(B)^2 + 2*SD(A) * SD(B) * W(A) * W(B) * CORR }^1/2
= { 900*0.04 + 2500*0.64 + 2*30*50*0.2*0.8*0.15}^1/2
= {1708}^1/2
= 41.33 %
Part B
Let Weight(A) be x, and Weight(B) be (1-x)
Solving the ER(portfolio) Equation :
ER(portfolio) = { ER(A) * Weight(A) } + { ER(B) * Weight(B) }
25 = {10 * x } + {20 * (1 - x) }
25 = 10x + 20 - 20x
25 - 20 = -10x
x = - 0.5
Weight (A) = - 0.5 {its Negative which means Short Selling of Stock A}
Weight (B) = 1 - (-0.5) = 1.5
Cross-Proof
ER (portfolio) = { ER(A) * Weight(A) } + { ER(B) * Weight(B) }
= { 10 * -0.5 } + { 20 * 1.5 }
= { - 5 } + { 30 }
= 25% . Therefore, our Weights are Correct
Calculation of SD (portfolio)
SD(portfolio) = { SD(A)^2 * W(A)^2 + SD(B)^2 * W(B)^2 + 2*SD(A) * SD(B) * W(A) * W(B) * CORR }^1/2
= { 900*0.25 + 2500*2.25 + 2*30*50*-0.5*1.5*0.15}^1/2
= { 225 + 5625 - 337.5 }^1/2
= {5512.5}1/2
= 74.2 %
The formula below tells us how to obtain the maturity value on a simple discount loan if we are given the proceeds, the discount rate, and the term. LaTeX: M = \frac{P}{1-d_RT}M = P 1 − d R T If a loan's annual simple discount rate is 2.14%, how many years would it take for the debt to double? (This is called the doubling time of a loan). Round your answer to the nearest tenth of a year. Hint: divide both sides of the equation by P. If M is twice as much as P, what should the fraction on the left-hand side equal?
Answer: it will take 23.4 YEARS for the debt to double.
Explanation:
Given that;
formula for maturity value on simple discount loan M = P / ( 1 - dRT )
loan's annual simple discount rate = 2.14%
our dR given as 2.14% = 2.14/100 = 0.0214
from the question, if the debt double i means M = 2P
so
2P = P / ( 1 - dRT )
we substitute
2P = P / 1 - (0.0214)T
T = 1 / 2*0.0214
T = 1 / 0.0428
T = 23.3644 = 23.4 YEARS
therefore it will take 23.4 YEARS for the debt to double.
Interest rate. In 1972, Bob purchased a new Datsun 240Z for $3,000. Datsun later changed its name to Nissan, and the 1972 Datsun 240Z became a classic. Bob kept his car in excellent condition and in 2002 could sell the car for seven times what he originally paid. What was Bob's annualized rate of return for the 30 years he owned this car? If he keeps the car for another thirty years and earns the same rate, what could he sell the car for in 2032? What was Bob's annualized rate of return for the 30 years he owned this car?
Answer:
The answer is "75,000"
Explanation:
Initial Price = 3000
Sales price=15000
Time= 30 years
[tex]\to 15000= 3000 \times (1+r)^{30} \\\\\to \frac{15000}{3000 }= (1+r)^{30}\\\\\to 5= (1+r)^{30}\\\\\to 5^{\frac{1}{30}}= (1+r)^{30 \times \frac{1}{30}}\\\\\to 5^{\frac{1}{30}}= (1+r)^{1}\\\\\to 5^{0.0333333333}= (1+r)^{1}\\\\\to 1.05511306= (1+r)\\\\\to 1.05511306-1=r\\\\\to r= .05511306\\\\\to r \% = 05511306 \times 100\\\\\to r \% = 5.511306\\\\\to \text{The next 30 years' estimated price :}\\\\[/tex]
[tex]\to 15000 \times (1+ 5.511306 \%)^{30}\\\\\to 15000 \times (1+ \frac{5.511306}{100})^{30}\\\\ \to 15000 \times (1+ 0.05511306)^{30}\\\\ \to 15000 \times (1.05511306)^{30}\\\\ \to 15000 \times 4.9999995\\\\ \to 74,999.9925\\\\\to \bold{75,000}[/tex]
The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $12,000 Current assets $25,876 Debt $25,502 Costs 7,200 Fixed assets 18,106 Equity 18,480 Taxable income $4,800 Total $43,982 Total $43,982 Taxes (34%) 1,632 Net income $3,168 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 40 percent dividend payout ratio. No external equity financing is possible. Required: What is the sustainable growth rate
Answer:
11.46%
Explanation:
The computation of the sustainable growth rate is shown below:-
Return on equity = $3,168 ÷ $18,480
= 17.14%
Retention ratio = 60%
Sustanble growth rate = Return on equity × Retention ratio ÷ (1 - Return on equity × Retention ratio)
= 17.14 × 0.60 ÷ (1 - 17.14% × 0.60)
= 11.46283829 %
or
= 11.46%
So, for computing the sustainable growth rate we simply applied the above formula.
Three years ago, Adrian purchased 100 shares of stock in X Corp. for $10,000. On December 30 of year 4, Adrian sells the 100 shares for $6,000. 1. Assume Adrian has no other capital gains or losses, how much of the loss is Adrian able to deduct on her year 4 tax return? 2. Assume Adrian has no other capital gains or losses, except that on January 20 of year 5, Adrian purchases 100 shares of X Corp. stock for $6,000. How much loss from the sale on December 30 of year 4 is deductible on Adrian’s year 4 tax return? What basis does Adrian take in the stock purchased on January 20 of year 5?
Answer:
1. Assume Adrian has no other capital gains or losses, how much of the loss is Adrian able to deduct on her year 4 tax return?
Adrian's loss is $4,000, and depending on whether Adrian is married or not, she will be able to deduct up to $3,000 (if married) during the current tax year and carry forward the remaining $1,000 loss. If she is single, then she can only deduct $1,500 per year and must carry forward $2,500.2. Assume Adrian has no other capital gains or losses, except that on January 20 of year 5, Adrian purchases 100 shares of X Corp. stock for $6,000. How much loss from the sale on December 30 of year 4 is deductible on Adrian’s year 4 tax return? What basis does Adrian take in the stock purchased on January 20 of year 5?
She cannot deduct any losses due to the wash sale rule, that states that her loss will be added to the basis of the new stocks that she purchased. The wash sale rule states that if you purchase the same stocks within a 60 day period, you cannot recognize any loss on any previous sale. Instead, her basis on the stocks will be $6,000 + $4,000 = $10,000.Explanation:
To illustrate Mill's concern with the uncultivated making poor decisions, consider the following example. Your state government determines that it has a budget surplus of $5 billion that it must spend before the end of the fiscal year. So, the legislature puts the following to a popular vote: ALL citizens currently residing in the state are entitled to either (1) a free college education; or (2) a free lifetime supply of beer. Because the "uncultivated" among you may not be able to distinguish between the "lower" good of free beer and the "higher" good of free education, do you believe that the majority of citizens would choose the beer? In what, if any, ways might decisions such as this led to the eventual decline of the cultural and intellectual life of your state? Mill argued that we should implement a requirement that people be "competent" judges, familiar with differences, before they could vote. Do you agree? IF so, how should we determine who is competent or who is not?
Answer:
Because the "uncultivated" among you may not be able to distinguish between the "lower" good of free beer and the "higher" good of free education, do you believe that the majority of citizens would choose the beer?
Mill believed that a proper utilitarian behavior would favor nobler and higher pleasures, e.g. education, arts, while it will rejects voluptuary or low level pleasures, e.g. free beer for life. That is why he separates people between those who only seek low level pursuits and those that actually seek higher ones.
I would really feel disappointed if the majority of the state's residents voted for free beer, but actually I really believe that it would be the winning option. Sadly, it is like watching Titanic and still hope that Leo will not die. You know its inevitable, but until the last moment you will not accept it.
In what, if any, ways might decisions such as this led to the eventual decline of the cultural and intellectual life of your state?
When I was little (on kindergarten), my teacher taught us 3 things:
my ABCto sing the Star-Spangled Banner (although no one really remembered the words)the idea that if you study and work hard enough, you will succeed in lifeI hope that other teachers still do the same and keep teaching these things, but I'm not so sure about the third one. Sadfully, as a society becomes less educated and less intellectual, they start to decline. That decline not only represents being dumber, but it also means that every time it will be harder for someone to do the right thing and to be able to succeed.
Mill argued that we should implement a requirement that people be "competent" judges, familiar with differences, before they could vote. Do you agree? IF so, how should we determine who is competent or who is not?
I do not agree with him since the basic premise of democracy is that everyone should be allowed to vote. No one has the right to determine who is competent enough to vote.
E.g. I do not like President Trump, and if I could determine who could vote or not, I would dictate that only people living in large urban areas should be allowed to vote. Why? Because according to me, urban life is better than rural life. This way I would make sure that the Republican party never wins an election again, but is that fair? Of course not. People living in rural areas or small towns have the same right to vote than people living on cities.
The same logic would apply to only allowing people living on wealthy states to vote, or only allowing people of certain race to vote. Whenever someone tries to limit other people's rights, bad things will happen.
Adam Jones, the purchasing manager for ACME Corporation, is under suspicion for committing fraud. His superiors believe he is accepting kickbacks and bribes from various vendors. As the company’s fraud expert, you are investigating this possible fraud and are preparing to interview Adam. You suspect that Adam will be defensive and possibly hostile when interviewed. 1. What investigation procedures should be completed before your admission-seeking interview with Adam? 2. If you find evidence that proves Adam is commit-ting fraud at ACME, what might his initial reaction be when he is confronted? What other emotions and/or reactions might you expect from Adam? How do you know this?
Answer:
ACME Corporation
Fraud Suspicion of Adam Jones:
1. Pre-admission-seeking Investigation Procedures:
Review the company's policies and proceduresInterview those who raised the suspicion to establish reasonable basisInterview suppliers and vendors to determine factsDecide if investigation was necessary in the light of company policies and preliminary findingsPlan the interview2. Adam's initial reaction when confronted:
Adam would be defensive and try to deny the existence of such acts, especially when he is not sure that you have got some evidence against him.
3. Adam might try to cover his track when suspicion alert has been raised to his knowledge. He might contact the vendors and suppliers involved to ensure that they did not disclose any unfavorable information to the investigator. He might also engage in bluffing, that is trying to prove his innocence before the investigation proper.
4. I know this because I have dwelt with such reactions before.
Explanation:
In law, fraud is the deliberate misrepresentation of facts for the purpose of depriving someone of a valuable possession or enriching oneself.
Charleston Corporation (CC) now operates as a "regular" corporation, but it is considering a switch to S Corporation status. CC is owned by 100 stockholders who each hold 1% of the stock, and each faces a personal tax rate of 35%. The firm earns $3,700,000 per year before taxes, and since it has no need for retained earnings, it pays out all of its earnings as dividends. Assume that the corporate tax rate is 34% and the personal tax rate is 35%. How much more (or less) spendable income would each stockholder have if the firm elected S Corporation status? Group of answer choices $7,605 $6,787 $10,139 $8,749 $8,177
Answer:
-2923
Explanation:
To calculate how much more (or less) spendable income would each stockholder has if the firm elected S Corporation status we need to calculate Profit attributable to each stockholder according to their holding percentage and will deduct the corporation tax on that.
DATA
No of stockholders = 100
Holding % = 1% each stock holder
Tax rate = 35%
Profit before tax = $3,700,000
Corporate tax = 34%
Profit before tax = 1% of 3,700,000 = 37,000
Tax (34%) = 34% of 37,000 = 12580
Profit after tax = 37,000 - 12,580 = 24,420
Now personal tax of 35% = 8547
Therefore tax = 24,420 - 8547 = 15,873
If only personal tax is levied tax would be = 35% * 37,000 = 12,950
therefore each stockholder will have 12,950 - 15,873 = -2923
On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $300 million. The bonds mature on September 30, 2041 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30.Required:Determine the price of the bonds on September 30, 2021.
Answer:
Bond Price = $248.5227409 million rounded off to $248.523 million
Explanation:
To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,
Coupon Payment (C) = 300 * 0.08 * 6/12 = 12 million
Total periods (n) = 20 * 2 = 40
r or YTM = 0.10 * 6/12 = 0.05 or 5%
The formula to calculate the price of the bonds today is attached.
Bond Price = 12 * [( 1 - (1+0.05)^-40) / 0.05] + 300 / (1+0.05)^40
Bond Price = $248.5227409 million rounded off to $248.523 million
Imagine the market for leather made basketballs. Please illustrate and specify the change in equilibrium price and quantity. (make sure you graph properly)
a .A popular playercomes to town that encourages kids to play more basketball
b. The price of footballs increases
c.Technological change occurs in the production of basketballs
d. The price of leather increases
e. Income decreases and at the same time the price of leather increases
f. The price of footballs increases and at the same time the number of basketball sellers increases
g. Basketball becomes more popular and at the same time a technological change in the production of basketballs occurs
Answer:
Please check the attached images for the graphs
Explanation:
a. If a popular player encourages kids to play more basketball, the demand for leather basketballs would increase. This would shift the demand curve for leather basketballs to the right. Equilibrium price and quantity would increase
b. It can be assumed that footballs are a substitute for basketballs. If the price of footballs increases, the demand for basketballs would increases. this would shift the demand curve for leather made basketballs to the right. Equilibrium price and quantity would increase
A technological change would increase the supply of basketballs. The supply curve would shift to the right. Equilibrium price would fall and equilibrium quantity would rise
d. an increase in the price of leather would increase the cost of production. This would make make producing leather basketballs more expensive. As a result, the supply of basketballs would fall. This would increase equilibrium price and equilibrium quantity would fall.
e. decrease in income would reduce the demand for basketballs. This would shift the demand curve to the left. Equilibrium price and quantity would fall. an increase in the price of leather would increase the cost of production. This would increase equilibrium price and equilibrium quantity would fall. Taking these two effects together, there would be an indeterminate effect on equilibrium price and equilibrium quantity would fall.
f. If the price of footballs increases, the demand for basketballs would increases, this would shift the demand curve for leather made basketballs to the right. Equilibrium price and quantity would increase. If the number of sellers increases, the supply of basketballs increases. This would lead to an increase in equilibrium quantity and a fall in equilibrium price. Taking this two effects together, there would be an indeterminate effect on equilibrium quantity and equilibrium price would fall
g, If basketball becomes more popular, the demand for basketball would increase. Equilibrium price and quantity would increase. A technological change would increase the supply of basketballs. This would increase its supply. The supply curve would shift to the right. Equilibrium price would fall and equilibrium quantity would rise. Taking these two effects together there would be an indeterminate effect on equilibrium price and equilibrium quantity would increase
