Answer:
e) not determinable.
Explanation:
Calculation for the fixed costs traceable to Department no. 2 but controllable by others
Profit margin controllable by the segment manager 226,000
Less Segment profit margin (108,000)
Fixed costs traceable to Department no. 2 but controllable by others $118,000
(226,000-108,000)
Therefore the Fixed costs traceable to Department no. 2 but controllable by others are: $118,000
Claude received notice that his disability benefits had ended and that he must resume working. What constitutional guarantee is involved?
the due process clause of the Fifth and Fourteenth Amendments
the Preamble of the US Constitution securing "the blessings of liberty"
Answer:
The due process clause of the Fifth and Fourteenth Amendments .
Explanation:
The Due Process Clause establishes that, for a person to be private or limited in relation to their rights, a procedure established by law for this purpose must be followed in advance. Thus, no limitation to the rights of the citizen can be carried out by the simple will or decision of the public administration, but must follow the guidelines established by the Legislative Power and judged as valid by the Judicial Power.
Suppose that the marginal cost of an additional ton of steel produced by Japanese firm is the same whether the steel is set aside for domestic use or exported abroad. Suppose that this firm is a pure monopolist both in Japan as well as in abroad. If the price elasticity of demand for steel is smaller abroad than it is in Japan, which of the following will be correct?
a. the Japanese firm will sell more steel abroad than they will sell in Japan.
b. the Japanese firm will sell more steel in Japan than they will sell abroad.
c. the Japanese firm will sell steel at a lower price abroad than at home.
d. the Japanese firm will sell steel at a higher price abroad than at home.
e. None of the above,
Answer: d. the Japanese firm will sell steel at a higher price abroad than at home.
Explanation:
Price elasticity measures the change in quantity demanded resulting from a change in price. The higher the price elasticity, the more the change.
In this scenario, the price elasticity is lower abroad than it is in Japan. The company will therefore charge a higher price abroad because they know that the quantity demanded will not change as much even if they raise prices. This is as opposed to Japan where the quantity demanded will change more if they increase prices.
Corporation has a time contraint on one of its special machines. The company makes three products that use this machine. Data concerning those products appear below:
Magnifico Bellissimo Lovely
Selling price per unit $335.07 $228.35 $199.10
Variable cost per unit $259.48 $173.30 $159.83
Minutes on the constraint 6.40 3.20 4.40
Required:
Assume that sufficient time is available on the constrained machine to satisfy demand for all but the least profitable product (Q) Up to how much should od be willing to pay to acquire more of the constrained resource?
Answer: $8.925 per minute.
Explanation:
Based on the information given, the amount that the company should be willing to pay to acquire more of the constrained resource will be:
= (Selling price – variable cost)/Constrained Minute
= ($199.10 - $159.83) / 4.40
= $8.925 per minute
= $8.93 per minute
The answer is $8.93 per minute.
If a company uses the periodic inventory system, what is the impact on net income of including goods in transit f.o.b. shipping point in purchases, but not ending inventory
Answer:
Net Income will be undervalued.
Explanation:
In a Free on Board shipping (FOB) the Buyer assumes all risks and rewards of ownership of the goods purchased when the goods have been loaded or passed the shipping rail.
The costs incurred at Free on Board shipping (FOB) must be included in both the Purchases and Ending Inventory. If the cost is not included in ending inventory, this means Cost of Sales will be overvalued and consequently Gross Profit and Net Income will be undervalued.
Brad Banks is confused about the lack of agreement between the cash balance per books and the balance per bank. Please explain to Brad the causes for the lack of agreement and provide an example of each cause.
Answer:
Most of the other issues is the lack of memorandum of understanding seen between financial statement according to the novels as well as the balance and according to the financial institution are almost as following.
Explanation:
Checks issued but not submitted for compensation:In those kinds of case scenarios, the checks are authorized to either the creditors besides compensation, but they've never been submitted to either the finance company. Besides obvious reasons, Brad banks would have authorized a $5,000 check with Tom.
Direct debits are not documented throughout publications by the bank:In such case scenarios, the bank has automatic payments throughout the consideration, and therefore this would not be recognized at the time including its account holders.
High Sky Inn is a bed and breakfast establishment in a converted 100-year-old mansion. The Inn's guests appreciate its gourmet breakfasts and individually decorated rooms. The Inn's overhead budget for the most recent month appears below:
Activity level 90 guests
Variable overhead costs:
Supplies $234
Laundry 315
Fixed overhead costs:
Utilities 220
Salaries and wages 4,290
Depreciation 2,680
Total overhead cost $7,739
The Inn's variable overhead costs are driven by the number of guests. What would be the total budgeted overhead cost for a month if the activity level is 99 guests?
a. $61,541.00
b. $7,793.90
c. $8,512.90
d. $7,739.00
Answer:
Correct option is b. $7,793.90
Explanation:
Calculation for What would be the total budgeted overhead cost for a month if the activity level is 99 guests
TOTAL BUDGETED OVERHEAD COST
Variable overhead costs:
Supplies $ 257.40
[ ($234 ÷ 90 guests)*99 guests].
Laundry $346.50
[($315 ÷ 90 guests)*99 guests]
Total variable overhead cost 603.90
($ 257.40+$346.50)
Fixed overhead costs:
Utilities 220.00
Salaries and wages 4,290.00
Depreciation 2,680.00
Total fixed overhead cost 7,190.00
(220.00+4,290.00+2,680.00)
Total budgeted overhead cost$7,793.90
($7,190.00+$603.90)
Therefore What would be the total budgeted overhead cost for a month if the activity level is 99 guests will be $7,793.90
A project with an initial cost of $77,600 is expected to generate annual cash flows of $17,680 for the next 8 years. What is the project's internal rate of return
Answer:
Internal rate of return = 15.68% (Approx)
Explanation:
Given:
Initial cost = $77,600
Annual cash flows = $17,680
Number of year = 8 year
Find:
Internal rate of return
Computation:
77,600 = 17,680/(1+x)¹+17,680/(1+x)²+17,680/(1+x)³+17,680/(1+x)⁴+17,680/(1+x)⁵+17,680/(1+x)⁶+17,680/(1+x)⁷+17,680/(1+x)⁸
Internal rate of return = 15.68% (Approx)
Betty and Ann live on a desert island. With a day's labor, Ann can produce 8 fish or 4 coconuts; Betty can produce 6 fish or 2 coconuts. Ann's opportunity cost of producing 1 coconut is ________ and she should specialize in the production of ________.A) 8 fish per coconut; fishB) 2 fish per coconut; coconutsC) 6 fish per coconut; coconutsD) 0 fish per coconut; coconuts
Answer:
The answer is "option b".
Explanation:
In this question, choice b is correct because, On a deserted beach, Betty and Ann live. Anna could section 80. or 4 nests of one day's job, and Betty can produce 6 or 2 coconuts. That cost of manufacturing 1 coconut is 2 fish per coconut, which Ann must be skilled for coconuts production.
19. If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid?
alex pays 1 percent of her gross pay as her insurance premium for the month of January. The insurance premium is part of which deduction from her pay?
A.
disability tax
B.
Social Security tax
C.
voluntary deduction
D.
Medicare tax
E.
federal income tax
Answer:
voluntary deduction
Explanation:
Payroll deductions are either voluntary or involuntary. Involuntary deductions are the mandatory deduction imposed by the government. They include federal and state income tax, social security, and Medicare taxes.
Voluntary deductions comprise requests from employee to employer to withhold some amount for specific functions. Such deductions include loan repayments, insurance contributions, savings schemes, and many others.
Corporation has 400 obsolete TV monitors that they carry in their inventory at a total cost of $576,000. If these monitors are upgraded at a total cost of $150,000, they can be sold for a total of $210,000. As an alternative, the calculators can be sold in their present condition for $11,200. Assume that Tolar decides to upgrade the calculators. At what selling price per unit would the company be as well off as if it just sold the calculators in their present condition?
a. $8 per calculator
b. $30 per calculator
c. $53 per calculator
d. $67 dollar per calculator
Answer: $403 per calculator
Explanation:
Assume the selling price is x.
400 calculators.
Upgrading them would cost $150,000 but if sold in present condition would fetch $11,200.
Expression would be;
400x - 150,000 = 11,200
400x = 161,200
x = 161,200/400
x = $403 per calculator
One advantage to buying a CD is that it can be purchased for different amounts. is high risk but comes with great rewards. can be used for long-term retirement. is high risk but backed by the government.
Answer: it can be purchased for different amounts.
Explanation:
A Certificate of Deposit is a financial services product normally offered by banks where a person agrees to leave a certain amount of money with the bank for a stated period of time.
These products give the bank a chance to invest in projects knowing that the cash will not be withdrawn haphazardly and so they offer higher amounts of interest than most other products.
One advantage is that there is no set amount for a CD and it can be purchased for different amounts.
Answer:
A or can be purchased for different amounts.
Explanation:
Your firm has preferred stock outstanding that pays a current dividend of $3.00 per year and has a current price of $39.50. You anticipate that the economy will grow steadily at a rate of 3.00% per year for the foreseeable future. What is the market required rate of return on your firm's preferred stock?
Answer:
7.59%
Explanation:
the dividend is a perpetuality, so the formula for determining the price is :
Price = dividend / required rate of return
$39.50 = $3 / required rate of return
required rate of return = $3 / $39.50 = 0.0759 = 7.59%
In each of the following independent cases, the company closes its books on December 31.
a. Shamrock Co. sells $534,000 of 8% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2023. The bonds yield 12%. Give entries through December 31, 2021.
b. Titania Co. sells $400,000 of 12% bonds on June 1, 2017. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2021. The bonds yield 10%. On October 1, 2018, Titania buys back $120,000 worth of bonds for $126,000 (includes accrued interest).
Required:
Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end.
Answer:
Part a
Payments are done at the beginning of the month therefore, set the financial calculator to the BEG mode.
PV = $534,000
PMT = ($534,000 × 8%) ÷ 2 = $21,360
P/YR = 2
N = 5
YTM = 12 %
FV= $534,000
Journal Entries through December 31, 2021
2020
March 1
Debit : Investment in Bonds $534,000
Credit : Cash $534,000
Recognition of Investment in Bonds
March 1
Debit : Cash $21,360
Debit : Investment in Bonds $21,360
Subsequent measurement of bonds at amortized cost
September 1
Debit : Cash $21,360
Debit : Investment in Bonds $9,398
Credit : Effective Interest Income $30,758
Subsequent measurement of bonds at amortized cost
2021
March 1
Debit : Cash $21,360
Debit : Investment in Bonds $9,962
Credit : Effective Interest Income $31,322
Subsequent measurement of bonds at amortized cost
September 1
Debit : Cash $21,360
Debit : Investment in Bonds $10,560
Credit : Effective Interest Income $31,920
Subsequent measurement of bonds at amortized cost
Part b
Payments are done at the beginning of the month therefore, set the financial calculator to the BEG mode.
PV = $400,000
PMT = ($400,000 × 12%) ÷ 2 = $24,000
P/YR = 2
N = 8
YTM = 10%
FV = $400,000
Bond amortization schedule using the effective-interest method
Date Cashflow Effective Int Capital Repmts Diff Gross CAmt
2017
1 June -$400,000 $400,000
1 June $24,000 $0 $0 -$24,000 $376,000
1 Dec $24,000 $18,800 $0 -$5,200 $370,800
2018
1 June $24,000 $18,540 $0 -$5,460 $365,340
1 Oct $126,000 $18,267 $0 - 107,733 $257,607
If a deposit correctly recorded by the bank for $800 is incorrectly recorded in the company's books for $600, how should this error be treated on the bank reconciliation?
Tripple-Crown Inc. will start selling 10-year bonds today. The bonds have semiannual coupon payments, an annual coupon rate of 10%, and a par value of $1,000. The yield to maturity (YTM) for this bond is expected to be 8%. What is the price of the bond today?
Answer:
$1,135.90
Explanation:
The Price of the Bond today is its Present Value (PV) alternatively known as the current price.
This can be calculated using a Financial Calculator by imputing values for the following parameters :
N = 10 × 2 = 20
P/YR = 2
PMT = ($1,000 × 10%) ÷ 2 = $50
FV = $1,000
I = 8 %
PV = ?
The PV will be $1,135.90
Therefore, the price of the bond today is $1,135.90
If the Federal Reserve printed too little money, money's relative price would _____________________ and the money price of goods would _________________________.
a. all; fall
b. rise; fall
c. fall; rise
d. rise; rise
Answer:
b. rise; fall
Explanation:
If the Federal Reserve printed too little money, there would be a leftward shift of the supply curve. This would lead to a rise in money's relative price. This would lead to a rise in the value of money as less money would be needed to buy goods and services. So, the money price of goods would fall
2. How do fund raising for corporate organization differ from non- corporate organization
Answer:
see below
Explanation:
A corporation is considered a legal person. It is a form of business ownership that is separate from its owners. A Non-corporation business has not gone through the incorporation process. As such, the business and the owner as considered as one entity. A partnership and sole proprietorship are examples of non-corporations.
Raising funds for a corporation is much easier than for a non-corporation. A corporation raises funds through borrowing or by issuing shares to the public or existing shareholders in a private corporation. The money generated from issuing shares can be used to expand the business or meet outstanding debts.
A non-corporation relies on the owner's to fund business activities. If the owners don't have a good credit history, the business may face challenges obtaining loans.
Last year you paid $24 for a round of golf and $12 to rent a golf cart. This year it cost you $33 to golf and $15 to rent a cart. Based on this simple basket of goods, calculate a price index for this year using last year as the base year. Round up to the nearest whole number.
Answer:
$133.33
Explanation:
In the above , the base price which is meant to the the last year price would be;
T = $24 + $12
T = $36
This year, the total cost, which is C
C = $33 + $15
C = $48
The consumer price index per the above question is calculated as;
Price index = (Current price / Base price period) × 100
Price index = (48 / 36) × 100
Price index = $133.33
Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates:
Activity Cost Pool Activity Rates
Supporting direct labor $6 per direct labor
Machine processing $2 per machine - hour
Machine setups $45 per setup
Production orders $160 per order
Shipments $115 per shipment
Product sustaining $775 per product
Activity data have been supplied for the following two products:
Total Expected Activity
J78 W52
Direct labor hours 1,000 30
Machine hours 2,600 20
Machine setups 19 3
Production orders 19 3
Shipments 38 3
Product sustaining 3 3
Required:
Determine the total overhead cost that would be assigned to each of the products.
Answer:
Larner Corporation
J78 W52
Total overhead cost $21,790 $3,505
Explanation:
a) Data and Calculations:
Activity Cost Pool Activity Rates
Supporting direct labor $6 per direct labor
Machine processing $2 per machine - hour
Machine setups $45 per setup
Production orders $160 per order
Shipments $115 per shipment
Product sustaining $775 per product
Total Expected Activity
J78 W52
Direct labor hours 1,000 30
Machine hours 2,600 20
Machine setups 19 3
Production orders 19 3
Shipments 38 3
Product sustaining 3 3
Overhead cost Activity rates J78 W52
Supporting direct labor $6 per direct labor $6,000 $180
Machine processing $2 per machine - hour 5,200 40
Machine setups $45 per setup 855 135
Production orders $160 per order 3,040 480
Shipments $115 per shipment 4,370 345
Product sustaining $775 per product 2,325 2,325
Total overhead cost $21,790 $3,505
A resort hotel is planning to install a computerized inventory system to manage complementary guest items such as soap and shampoo. The daily demand for bars of soap appears to be distributed normally, with mean = 16 and standard deviation = 3. Assume there are 365 days considered for this inventory system. Once an order is placed, it takes seven days before delivery is made. The effort for the staff person to place an order is $10. The annual holding cost of a bar of soap is $0.05. The hotel is concerned about stock-outs of such a basic item and, thus, desires a 99.9% service level.
a. Recommend an order quantity and reorder point for this inventory system.
b. What is the total annual cost for this inventory system?
Answer:
Mean daily demand = 16
SD of daily demand = 3
No of days = 365
LT = 7 days
Cost = 0.1 dollar
Order cost = $10
Holding cost = $0.05
Service level = 99.9%
Optimal order quantity:
Order quantity = √(2*D*S)/H
Order quantity = √(2*16*365*10) / 0.05
Order quantity = √(116800)/0.05
Order quantity = √2336000
Order quantity = 1528.40 units
Reorder level:
Reorder level = dL + zб
Reorder level = 16*7 + 1.55*3
Reorder level = 112 + 4.65
Reorder level = 116.65 units
Total annual cost:
TC = ((16*365)*0.1) + ((16*365)*10 / 1528.40) + (1528.40/2 * 0.05)
TC = 584 + 38.21 + 38.21
TC = $660.42
The interest charged on a $252000 note payable, at the rate of 6%, on a 90-day note would be (Use 360 days for calculation.)
Answer: Interest charged=$3,780
Explanation:
Interest is the amount of money a borrower pays to its lender for money loaned to him or her at a particular time and rate It can also be money accrued from investments or deposits in financial institutions. It is calculated as
Interest charged = Principal x Rate x Time
= $252,000 x 6% X 90/ 360
=$3,780
The interest charged on the note payable =$3,780
A trial balance before adjustment included the following: Debit Credit Accounts receivable $120,000 Allowance for doubtful accounts 730 Sales $510,000 Sales returns and allowances 8,000 Give journal entries assuming that the estimate of uncollectibles is determined by taking (1) 5% of gross accounts receivable and (2) 1% of net sales.
Answer and Explanation:
The journal entries are as follows:
a. Allowance for doubtful debts Dr. $5,270 ($120,000 × 5% - $730)
To Accounts Receivables $5,270
(Being allowance for doubtful debts is recorded)
Here the allowance for doubtful debt is debited as it increased the assets and credited the account receivable as it decreased the assets
2. Allowance for doubtful debts Dr. $4,290 ($510,000 × 1% - $730)
To Accounts Receivables $4,290
(Being allowance for doubtful debts is recorded)
Here the allowance for doubtful debt is debited as it increased the assets and credited the account receivable as it decreased the assets
How much is GDP increased if MPC is .8 and new spending is $90,000?
a. 640,000
b. 520,000
c. 450,000
Answer:
B
Explanation:
250,000
A narcissistic leader would like to influence an employee to take on the job duties that make the leader look best, regardless of whether they reflect badly on the employee, using a process called
Answer:
The appropriate response is "Role making".
Explanation:
Role making explains whether anticipated performance in communication has been generated and altered, a preliminary mechanism where certain responsibilities are defined and content is provided to change as activity continues. That's because an individual's program with the intent would be changed as well as generated by involvement.Explain, using examples, the different market entry strategies, including the advantages and disadvantages of each.
Should a company first establish an export base or license its products to gain experience in a newly targeted country or region? Or does the potential associated with first-mover status justify a bolder move such as entering an alliance, making an acquisition, or even starting a new subsidiary? Many companies move from exporting to licensing to a higher investment strategy, in effect treating these choices as a learning curve. Each has distinct advantages and disadvantages.
Exporting is the marketing and direct sale of domestically produced goods in another country. Exporting is a traditional and well-established method of reaching foreign markets. Since it does not require that the goods be produced in the target country, no investment in foreign production facilities is required. Most of the costs associated with exporting take the form of marketing expenses.
While relatively low risk, exporting entails substantial costs and limited control. Exporters typically have little control over the marketing and distribution of their products, face high transportation charges and possible tariffs, and must pay distributors for a variety of services. What is more, exporting does not give a company firsthand experience in staking out a competitive position abroad, and it makes it difficult to customize products and services to local tastes and preferences.
Licensing essentially permits a company in the target country to use the property of the licensor. Such property is usually intangible, such as trademarks, patents, and production techniques. The licensee pays a fee in exchange for the rights to use the intangible property and possibly for technical assistance as well.
Because little investment on the part of the licensor is required, licensing has the potential to provide a very large return on investment. However, because the licensee produces and markets the product, potential returns from manufacturing and marketing activities may be lost. Thus, licensing reduces cost and involves limited risk. However, it does not mitigate the substantial disadvantages associated with operating from a distance. As a rule, licensing strategies inhibit control and produce only moderate returns.
Strategic alliances and joint ventures have become increasingly popular in recent years. They allow companies to share the risks and resources required to enter international markets. And although returns also may have to be shared, they give a company a degree of flexibility not afforded by going it alone through direct investment.
There are several motivations for companies to consider a partnership as they expand globally, including (a) facilitating market entry, (b) risk and reward sharing, (c) technology sharing, (d) joint product development, and (e) conforming to government regulations. Other benefits include political connections and distribution channel access that may depend on relationships.
Such alliances often are favorable when (a) the partners’ strategic goals converge while their competitive goals diverge; (b) the partners’ size, market power, and resources are small compared to the industry leaders; and (c) partners are able to learn from one another while limiting access to their own proprietary skills.
The key issues to consider in a joint venture are ownership, control, length of agreement, pricing, technology transfer, local firm capabilities and resources, and government intentions. Potential problems include (a) conflict over asymmetric new investments, (b) mistrust over proprietary knowledge, (c) performance ambiguity, that is, how to “split the pie,” (d) lack of parent firm support, (e) cultural clashes, and (f) if, how, and when to terminate the relationship.
Ultimately, most companies will aim at building their own presence through company-owned facilities in important international markets. Acquisitions or greenfield start-ups represent this ultimate commitment. Acquisition is faster, but starting a new, wholly owned subsidiary might be the preferred option if no suitable acquisition candidates can be found.
Also known as foreign direct investment (FDI), acquisitions and greenfield start-ups involve the direct ownership of facilities in the target country and, therefore, the transfer of resources including capital, technology, and personnel. Direct ownership provides a high degree of control in the operations and the ability to better know the consumers and competitive environment. However, it requires a high level of resources and a high degree of commitment.
The postponement of a project until conditions are more favorable: I. is a valuable option. II. is referred to as the option to extend. III. could cause a negative net present value project to become a positive net present value project. IV. will generally cause the internal rate of return for a project to decline.
Answer:
The postponement of a project until conditions are more favorable:
III. could cause a negative net present value project to become a positive net present value project.
Explanation:
With the favorable project conditions, the negative NPV will be revised to a positive NPV because the positive conditions will ensure the generation of positive cash inflows. The result is that the project will be assessed as acceptable since the net present value will become positive. Generally, favorable project conditions create outcomes that are positive for the cash flows, thereby generating more positive cash inflows and reducing the impact of cash outflows.
For the following statement/questions match the assertion that best matches: When auditing the following accounts identify what auditors are primarily concerned with:
a. Revune
b. Assests
c. Liabilities
d. Expenses
1. Overstatments
2. Understatments
Answer:
When auditing the following accounts, auditors are primarily concerned with:
Accounts Assertions
a. Revenue Overstatements
b. Assets Overstatements
c. Liabilities Understatements
d. Expenses Understatements
Explanation:
Auditors are generally concerned about these assertions when auditing financial statements and their related disclosures: accurate recording, completeness, cut-off, existence, rights and obligations, and valuation. For revenue and assets, they want to ensure that these are not overstated. Their overstatement will increase the reported profits of the entity, which is a kind of cooking the books to please analysts. They are also interested in ensuring that liabilities and expenses are not understated for the same purpose.
Nelson Software Inc has bonds on the market with a YTM of 7.79%, a coupon rate of 7.5%, and a current yield of 7.73%. The bonds have 22 years to maturity, pay semmiannual coupons, and are priced at 97. What is the effective annual yield on these bonds?a) 7.55%b) 8.55%c) 7.94%d) 7.5%
Answer: 7.94%
Explanation:
The effective annual yield on these bonds would be calculated as:
= [1 + (YTM/2)]² - 1
= [1 + (0.0779/2)]² - 1
= [1 + 0.03895]² - 1
= 1.079417103 - 1
= 0.079417103
= 7.94%
Therefore, the effective annual yield on these bonds would be 7.94%.
McCann Publishing has a target capital structure of 35% debt and 65% equity.This year's capital budget is $850,000 and it wants to pay a dividend of $400,000.If the company follows a residual dividend policy,how much net income must it earn to meet its capital budgeting requirements and pay the dividend,all while keeping its capital structure in balance?A) $904,875B) $952,500C) $1,000,125D) $1,050,131E) $1,102,638
Answer:
B) $952,500
Explanation:
Calculation for how much net income must it earn to meet its capital budgeting requirements and pay the dividend
Using this formula
Net income = Dividends + (Capital budget ×Equity)
Let plug in the formula
Net Income=$400,000+($850,000×65%)
Net Income=$400,000+$552,500
Net Income=$952,500
Therefore how much net income must it earn to meet its capital budgeting requirements and pay the dividend dividend,all while keeping its capital structure in balance is $952,500
