Answer:
The sales tax rate for South Salt Lake is 7.05%. What is the state sales tax on a $13,600 car in South Salt Lake?
sales tax = $13,600 x 7.05% = $958.80What is the final cost of the car, including tax?
final cost = $13,600 + $958.80 = $14,558.80The sales tax rate for Morgan County is 5.95%. What is the state sales tax on that same car purchase in Morgan County?
sales tax = $13,600 x 5.95% = $809.20What is the final cost of the car in Morgan County, including tax?
final cost = $13,600 + $809.20 = $14,409.20How much money would you save by driving to Morgan County to purchase the vehicle?
money saved = $14,558.80 - $14,409.20 = $149.60Lloyd is a divorce attormey who practices law in Florida. He wants to join the American Divorce Lawyers Associlation (ADLA), a professional organization attorneys must be paid at the beginning of each year. For instance, membership dues for dues for the second year are buy a lifetime membership today for $7,000 and never have to pay annual membership dues tion for divorce attorneys. The membership dues for the ADLA are S75。po year the first year are paid today, and payable one year from today. However, the ADLA also has an option for members to lfetime membership isn't a good deal If you only remain a member for a couple of years, but if you remain a member for 40 years, it's a great deal. Suppose that the appropriate annual interest rate is 8.9%.
What is the minimum number of years that LUoyd must remain a member of the ADLA so that the lifetime membership is cheaper (on a present value basis) than paying $750 in annual membership dues? (Note: Round your answer up to the nearest year.)
a. 17 years
b. 18 years
c. 20 years
d. 15 years
Answer: a. 17 years
Explanation:
The annual fee is $750.
The number of years that it will take for the lifetime subscription to be cheaper than the annual fee is the number of years it will take the the annual fee of $750 paid every year to have a present value of $7,000 given an annual interest rate of 8.9%.
Using the Excel function of NPER this is;
=NPER(rate,pmt,pv,fv,1)
= NPER(8.9%,-750,7000,0,1)
= 16.88 years
= 17 years
The owner of a bicycle repair shop forecasts revenues of $160,000 a year. Variable costs will be $50,000, and rental costs for the shop are $30,000 a year. Depreciation on the repair tools will be $10,000. (LO9-2) a. Prepare an income statement for the shop based on these estimates. The tax rate is 20%. b. Now calculate the operating cash flow for the repair shop using all three methods suggested in the chapter. All three approaches should result in the same value for cash flow. i. Dollars in minus dollars out. ii. Adjusted accounting profits. iii. Add back depreciation tax shield.
Answer:
A. $66,000
B. $66,000
C. $66,000
Explanation:
Dollars in dollars out can be easily understood by just deducting cash expenses from the revenue received from cash sales. we can not deduct depreciation expense as it is a non-cash item.
DATA
Revenue = 160,000
Variable cost = 50,000
Rental cost = 30,000
Depreciation = 10,000
Profit before tax = 70,000
Tax (70,000 x 20%) = 14,000
Net Income = 56,000
a) Dollars in minus dollars out
Dollars in minus dollars out = Revenue - rental costs - variable costs - taxes Dollars in minus dollars out = $160,000 - $30,000 - $50,000 - $14,000
Dollars in minus dollars out = $66,000
b) Adjusted accounting profits
Operating cash flow = Net income + depreciation
Operating cash flow = $56,000 + $10,000
Operating cash flow = $66,000
c) Add back depreciation tax shield
Operating cash flow = [(Revenue - rental costs - variable costs) × (1 - 0.2)] + (depreciation × 0.2)]
Operating cash flow = ($160,000 - $30000 - $50,000)*0.8 + $10,000*0.2 Operating cash flow = $66,000
The Square Box is considering two independent projects, both of which have an initial cost of $18,000. The cash inflows of Project A are $3,000, $7,000, and $10,000 over the next three years, respectively. The cash inflows for Project B are $3,000, $7,000, and $15,000 over the next three years, respectively. The required return is 12 percent and the required discounted payback period is 3 years. Based on discounted payback, which project(s), if either, should be accepted? Multiple Choice Both projects should be accepted. Both projects should be rejected. Project A should be accepted and Project B should be rejected. Project A should be rejected and Project B should be accepted. You should be indifferent to accepting either or both projects.
Answer:
Project A should be rejected and Project B should be accepted.
Explanation:
Discounted payback period calculates the amount of time it takes to recover the amount invested in a project from its discounted cash flows
Project A
Cash flow in year 0 = $-18,000
Cash flow in year 1 = $3,000
Cash flow in year 2 = $7,000
Cash flow in year 3 = $10,000
I = 12%
The present value of the cash flows are less than $18,000. This means that the cash flows would not be recovered within the 3 years so project A should not be accepted
Project B
Cash flow in year 0 = $-18,000
Cash flow in year 1 = $3,000
Cash flow in year 2 = $7,000
Cash flow in year 3 = $15,000
I = 12%
Discounted cash flow in year 1 = 3000 / 1.12 = 2678.57
Discounted cash flow in year 2 = 7000 / 1.12^2 = 5580.36
Discounted cash flow in year 3 = 15000 / 1.12^3 = 10676.70
The amount recovered in year 1 = $18,000 - 2678.57 = $15,321.43
The amount recovered in year 2 = $15,321.43 - 5580.36 = $9,741.07
The amount recovered in year 3 = $9,741.07 / 10676.70 = 0.912
The amount is recovered in 2.91 years which is less than 3 years and so it is accepted
Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 30 billion bottles of wine were sold every year at a price of $6 per bottle. After the tax, 23 billion bottles of wine are sold every year; consumers pay $9 per bottle (including the tax), and producers receive $4 per bottle. The amount of the tax on a bottle of wine is $ per bottle. Of this amount, the burden that falls on consumers is $ per bottle, and the burden that falls on producers is $ per bottle. True or False: The effect of the tax on the quantity sold would have been larger if the tax had been levied on producers.
Answer:
The amount of the tax on a bottle of wine is $5 per bottle. Of this amount, the burden that falls on consumers is $3 per bottle, and the burden that falls on producers is $2 per bottle. True or False: The effect of the tax on the quantity sold would have been larger if the tax had been levied on producers.
Explanation:
The amount of the tax on a bottle of wine is $5 ($3 + $2).
The burden on consumers is $3 ($9 - $6), which is the difference between the after-tax purchase price and the before-tax purchase price for consumers. This implies that the burden passed to consumers is $3 out of the total tax burden of $5.
The burden on producers is $2 ($6 - $4) which represents the difference between before-tax selling price and the after-tax selling price for the producers. This means that the burden passed to producers is $2 out of the total tax burden of $5.
If the tax burden were passed to the producers alone, the selling price would have been more than $11 ($6 + 5). This would have reduced demand for wine as consumers would have been forced to bear the total burden. This would have made the tax unequitable. This would have been the case unless demand is inelastic. That means that the total demanded is not sensitive to price increases.
You are considering two equally risky annuities, each of which pays $5,000 per year for 10 years. Investment ORD is an ordinary (or deferred) annuity, while Investment DUE is an annuity due. Which of the following statements is CORRECT? Group of answer choices The present value of ORD exceeds the present value of DUE, and the future value of ORD also exceeds the future value of DUE. If the going rate of interest decreases from 10% to 0%, the difference between the present value of ORD and the present value of DUE would remain constant. A rational investor would be willing to pay more for DUE than for ORD, so their market prices should differ. The present value of DUE exceeds the present value of ORD, while the future value of DUE is less than the future value of ORD. The present value of ORD exceeds the present value of DUE, while the future value of DUE exceeds the future value of ORD.
Answer:
A rational investor would be willing to pay more for DUE than for ORD, so their market prices should differ.
Explanation:
If both annuities pay the same amount ($5,000 per year), then the present value of the annuity due will always be higher than the present value of the ordinary annuity. Therefore, an investor will always be willing to pay more (at equal risk) for the annuity due than the ordinary annuity.
E.g. let say that both annuities carry a 10% interest rate.
The present value of the annuity due is:
PV = $5,000 + [$5,000 x 5.7590 (PV annuity factor, 10%, 9 periods)] = $33,795
The present value of the ordinary annuity is:
PV = $5,000 x 6.1446 (PV annuity factor, 10%, 10 periods) = $30,723
The logic behind this is that $1 today is worth more than $1 tomorrow, and the annuity due's first payment is today, while the ordinary annuity's first payment is in 1 year.
g The Nite Lite Factory produces two products - small lamps and desk lamps. It has two separate departments - finishing and production. The overhead budget for the finishing department is $550,000, using 500,000 direct labor hours. The overhead budget for the production department is $400,000 using 80,000 direct labor hours. If the budget estimates that a desk lamp will require 2 hours of finishing and 1 hour of production, how much factory overhead will be allocated to each unit of desk lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours
Answer:
$7.20
Explanation:
Given the following :
FINISHING department :
overhead budget = $550,000
direct labor HOURS = 500,000
PRODUCTION department :
overhead budget = $400,000
direct labor hours = 80,000
Predetermined allocation rate for finishing department :
Overhead / allocation base = ($550,000 / 500,000) = $1.10 per direct labor hour
Predetermined allocation rate for production department :
Overhead / allocation base = ($400,000 / 80,000) = $5 per direct labor hour
If the budget estimates that a desk lamp will require 2 hours of finishing and 1 hour of production:
Finishing department :
(2 × Predetermined allocation rate for finishing department)
= (2 × $1.10) = $2.20
Production :
(1 × Predetermined allocation rate for production department)
= (1 × $5). = $5
Total = ($2.20 + $5) = $7.20
You are an upper-level manager in a firm. You believe that corporate objectives are not effectively disseminated throughout the organization and that line-level managers do not take them into account in their decision making. Which of the following would best help you to try to correct this problem? Multiple Choice Hold a series of supervisory manager meetings. Establish metric-based performance measures. Evaluate personality indicators to ensure inter-departmental worker compatibility. Evaluate and increase manager salaries and benefits.
Answer:
Establish metric-based performance measures.
Explanation:
In the given scenario the line managers are not taking corporate objectives into consideration in their decision making.
As a upper-level manager can resolve this by introducing metric based performance measures that will show clearly productivity of the line managers.
The Key Performance Indicators should be tailored to the organisation's objectives.
The line managers that are not performing well according to the KPIs will need to align and perform better in the specific areas.
This is an effective way of disseminating the corporate objectives in the organisation.
Ashton Woods has begun building new townhome communities in order to appeal to smaller families who would like a beautiful upscale home, without the cost of maintaining a large yard. These households typically earn over $80,000 annually through professional employment, live in suburban areas, and have little extra time due to the demands of their careers. Whether single or married adults occupy the home, there is usually a presence of children in the home, so homeowners are seeking locations convenient to good, local schools. What type of segmentation does Ashton Woods practice
Answer:
d) All of the above
Explanation:
Here are the options to this question :
a) Geographic
b) Demographic
c) Psychographic
d) All of the above
e) None of the above
Geographic segmentation is the segmentation of people based on their locations
When Ashton Woods determines that homeowners are seeking locations convenient to good, local schools, he is segmenting by geography.
Demographic segmentation is the segmentation of people based on demographics such as age, income, gender, ethnicity.
When Ashton Woods profiles households based on the income they earn, he is doing demographic segmentation
Psychographic segmentation is the segmentation of a group of people into groups based on certain psychological characteristics
When Ashton Woods determines that homeowners would want like a beautiful upscale home, without the cost of maintaining a large yard. He is segmenting based on Psychography
Which of the following is NOT an example of a business risk?
Multiple Choice
O
Products harming customers.
ces
A website malfunctioning.
O
A customer value proposition.
An employee accessing unauthorized information.
Answer:
a customer value proposition is not a business risk
Business has several risks, but the customer value proposition is not an example of a business risk.
What is a customer value proposition?A customer value proposition, or CVP, is a marketing term for a statement of the total value that a company provides a customer in exchange for payment. It's used to convince customers that this company's product provides more value than competitors' products.
A powerful value proposition helps your customers truly understand the value of your company's products and services. It also helps your ideal customers to see how your services benefit them and are their best available option.
Thus, option C is true, as the customer value proposition is not an example of a business risk.
Learn more about customer value proposition here,
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You are 30 years old today and are considering studying for an MBA. You just received your annual salary of $50,000 and expect it to grow by 3% per year. MBA typically earns $80,000 upon graduation, with salaries growing by 4% per year. The MBA program you are considering is a full-time, 2-year day program that costs $30,000 per year, payable at the end of each study year. You want to retire on your 65th birthday. The relevant discount rate is 8%\.\* Is it worthwhile for you to quit your job in order to do an MBA (ignore income taxes)? * Meaning: Your MBA is an investment like any other investment. On other investments, you can earn 8% per year, the MBA has to be judged against this standard.
Answer:
Yes, you should take the MBA because the NPV of taking the MBA is positive.
Explanation:
the total economic costs of taking the MBA program include the lost wages + the costs of taking the MBA and any interest you could have earned by investing it on something else = ($50,000 x 1.03) + ($50,000 x 1.03²) + (2 x $30,000 x 1.08) = $51,500 + $53,045 + $64,800 = $169,345
the present value of your total economic costs:
$51,500/1.08 + $53,045/1.08² + $32,400/1.08 + $32,400/1.08² = $47,685.19 + $45,477.54 + $30,000 + $27,777.78 = $150,940.51
if you continued to work, your salary at year 3 would be $54,636.35 and it would continue to increase by 3% every year. The salary that you can earn with an MBA is $80,000 and it will grow by 4% per year. I used an excel spreadsheet to calculate future salaries and the differential amount between them. Then I calculated the PV at the beginning of year 3 of the differential income.
The PV of the differential income today = $560,281.31 /1.08³ = $444,769.38
the NPV of taking an MBA = $444,769.38 - $150,940.51 = $293,828.87
A stationery company plans to launch a new type of indelible ink pen. Advertising for the new product will be heavy and will cost the company $8 million, although the company expects general revenues of $280 million next year from sources other than sales of the new pen. If the company has a corporate tax-rate of 35% on its pretax income, what effect will the advertising for the new pen have on its taxes? It will increase taxes by $8 million. It will increase taxes by $2.8 million. It will have no effect on taxes. It will reduce taxes by $2.8 million.
Answer: It will reduce taxes by $2.8 million.
Explanation:
Expenses are tax deductible which means that the advertising expense will reduce tax by 35% of it's value.
= 8,000,000 * 35%
= $2,800,000
Expenses of $8,000,000 will reduce pre-tax profit by the same amount which would lead to taxes being $2,800,000 lower.
Suppose that Tyler wants to buy a house and is thinking of using $20,000 that sits in a retirement account for a down payment on this new home. Using the $20,000 as a down payment will reduce Tyler's income when he retires in 30 years. If Tyler can earn an 8% annual return on his money if he leaves it in the retirement account, how much will his consumption in retirement be reduced if he uses this money for a down payment now
Answer:
If he uses the money today, his retirement consumption will decrease by $201,253.14.
Explanation:
Giving the following information:
Present Value= $20,000
Number of periods= 30 years
Interest rate= 8% compounded annually
We need to determine the future value (capital + interest) of the $20,000 in 30 years, using the following formula:
FV= PV*(1+i)^n
FV= 20,000*(1.08^30)
FV= $201,253.14
If he uses the money today, his retirement consumption will decrease by $201,253.14.
Yoshihiko Kikuchi, a communication specialist from Japan, was recently hired by a U.S. company to accompany negotiating teams throughout the world. Her specialty is non-verbal communication and her job on these negotiating teams is to carefully observe the behavior of the individuals on the opposing negotiating teams. After the negotiating is completed during the day, she then meets with the team and reports her observations. This situation illustrates the fact that Japan is clearly a __________ culture, while the United States is a __________ culture. Group of answer choices low-context, high-context low-context, polychronic high-context, low-context monochronic, polychronic not enough information to determine
Answer:
high-context low-context,
Explanation:
A high-context culture is a type of cultures that relies on non verbal clues such as body language, posture and tone.
Cultures considered to be high context cultures are : Asians, Africans, Arabs and Latin Americans
A low-context culture relies on explicit communication and not on non verbal cues. Culture considered to be low context cultures is United States.
Monochronic cultures carry out one activity at a time.
Polychronic cultures carry out multiple activities at the same time
When cell phones were first entering the market, they were relatively large and reception was undependable. All cell phones were essentially the same. But as the technology developed, many competitors entered, introducing features unique to their phones. Today, cell phones are only a small fraction of the size and weight of their predecessors. Consumers can buy cell phones with color screens, cameras, Internet access, daily planners, or voice activation (and any combination of these features). The history of the cell phone demonstrates what marketing trend? Group of answer choices Markets evolve toward greater heterogeneity over time. Product diversity declines as more market segments develop. Technology advances are almost always introduced by market leaders. Market segmentation usually forces existing companies out of business. New competitors seldom bring innovation into an existing market.
Answer:
The correct answer is: Markets evolve toward greater heterogeneity over time.
Explanation:
The history of cell phones shows a marketing trend that markets evolve towards greater heterogeneity over time.
This occurs in relation to market segmentation, that is, organizations identify groups of consumers with similar tastes and develop all their marketing actions to reach a certain demand according to their needs, tastes and preferences. Market segmentation creates a heterogeneous market, with differentiated products in terms of functionality, design, price, benefits, etc., so that existing demands are met.
Which of the following statements is correct? Select one: a. Financial institutions in other countries generally are less regulated than in the United States. b. One reason domestic firms "go global" is to sell products in saturated markets. c. One of the advantages associated with doing business in international markets is that all countries report their financial statements in the U.S. dollar. d. Often firms can avoid labor laws that apply to foreign manufacturers by establishing manufacturing units in the country where the hurdles apply. e. A multinational firm takes advantage of the cultural differences among countries and uses the same marketing strategy in every country in which it operates.
Answer:
A
Explanation:
Domestic firms go global in order to enter unsaturated markets
Not all countries report their financial statements in US dollars
Firms can avoid labour laws that apply to foreign manufacturers by establishing manufacturing units in the country where the hurdles don't apply
Due to cultural differences, different marketing strategies have to be applied
or 2019, Gourmet Kitchen Products reported $21 million of sales and $17 million of operating costs (including depreciation). The company has $15 million of total invested capital. Its after-tax cost of capital is 10% and its federal-plus-state income tax rate was 25%. What was the firm's economic value added (EVA), that is, how much value did management add to stockholders' wealth during 2019? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary.
Answer:
$1,500,000
Explanation:
The computation of the firm's economic value added is given below:-
Economic value added (EVA) = Net operating profit after taxes - Invested capital × Cost of capital
= (($21,000,000 - $17,000,000) × (1 - 0.25)) - ($15,000,000 × 10%)
= ($4,000,000 × 0.75) - $1,500,000
= $3,000,000 - $1,500,000
= $1,500,000
So, we have applied the above formula.
5. Dan was suspected by customs and immigration officers of having
information concerning the smuggling of drugs into the United States.
Acting undercover, a customs and immigration official went to Dan
and suggested that he bring illegal drugs into this country. Dan
refused, but at the official's insistence he later agreed. After the drugs
entered this country, Dan was arrested. Does Dan have a valid defense
to the charge of smuggling? Explain.
Answer:
No one can have a valid defense when there is no proof, the undercover officers could not blame someone without proof (evidence he was smuggling drugs) but dan may have a valid defense if they dont find any evidence
Hope this helps <3
When an accelerated depreciation method is used to calculate depreciation expense: Multiple Choice the net book value of the asset halfway through its useful life will be less than if straight-line depreciation is used. the net book value of the asset at the end of its useful life will be less than if straight-line depreciation is used. depreciation expense will be less in the early years of the asset's life than if straight-line depreciation is used. the accumulated depreciation account balance will increase by a larger amount in the last half of an asset's life than if straight-line depreciation is used.
Answer:
the net book value of the asset halfway through its useful life will be less than if straight-line depreciation is used.
Explanation:
The accelerated depreciation is a depreciation method in which the asset lossed the book value at instant rate as compared with the traditional method also it permits the higher deduction in the starting years so that to minimize the taxable income
Therefore in the given case, the net book value of the asset would be halfway associated with the useful life also it would be lower as compared with the straight line method
Therefore the option A is correct
Carmen’s Beauty Salon has estimated monthly financing requirements for the next six months as follows: January $ 8,600 April $ 8,600 February 2,600 May 9,600 March 3,600 June 4,600 Short-term financing will be utilized for the next six months. Projected annual interest rates are: January 5 % April 12 % February 6 May 12 March 9 June 12 What long-term interest rate would represent a break-even point between using short-term financing and long-term financing? (Round your monthly interest rate to 2 decimal places when expressed as a percent. Round your interest payments to the nearest whole cent. Input your answer as a percent rounded to 2 decimal places.)
Answer:
9.70% annual or 0.808% per month
Explanation:
month financing requirements interest rate interest charged
January 8,600 5% 35.83
February 2,600 6% 13
March 3,600 9% 27
April 8,600 12% 86
May 9,600 12% 96
June 4,600 12% 46
total 37,600 303.83
break even annual rate = 12 months x (total interest charged / total financial requirements) = 12 x (303.83 / 37,600) = 0.096967 = 9.70% or 0.808% per month
we can check our answer:
month financing requirements interest rate interest charged
January 8,600 9.7% 69.49
February 2,600 9.7% 21.01
March 3,600 9.7% 29.09
April 8,600 9.7% 69.49
May 9,600 9.7% 77.57
June 4,600 9.7% 37.17
total 37,600 303.82
Kingston Corporation leases equipment from Falls Company on January 1, 2020. The lease agreement does not transfer ownership, contain a bargain purchase option, and is not a specialized asset. It covers 3 years of the equipment’s 8-year useful life, and the present value of the lease payments is less than 90% of the fair value of the asset leased. The annual lease payment is $35,000 at the beginning of each year, and Kingston’s incremental borrowing rate is 6%, which is the same as the lessor’s implicit rate. Prepare all the necessary journal entries for Falls Company (the lessor) for 2020, assuming the equipment is carried at a cost of $200,000
Answer:
The following are the answer to this question:
Explanation:
There really is no Naming Convention accessible, that may differentiate noticeably:
It lease doesn't really follow any one of the criteria of a leased asset and is therefore classified as a lease:
Date Account title and explaination Debit Credit
1-1-17 Asset right of use $99,169 $99,169
[tex](35000 \times 2.83339)[/tex]
1-1-17 Liability lease cash $35,000 $35,000
12-31-17 Leasing Expenses $35,000 $3,850
Liability for leasing
[tex](99169-35000) \times 6%[/tex] $ 31, 150
Activity Right to Use (plug)
Selected transactions for Cheyenne’s Dog Care are as follows during the month of March.
March 1 Paid monthly rent of $980.
3 Performed services for $110 on account.
5 Performed services for cash of $60.
8 Purchased equipment for $490. The company paid cash of $65 and the
balance was on account.
12 Received cash from customers billed on March 3.
14 Paid wages to employees of $430.
22 Paid utilities of $60.
24 Borrowed $1,230 from Grafton State Bank by signing a note.
27 Paid $180 to repair service for plumbing repairs.
28 Paid balance amount owed from equipment purchase on March 8.
30 Paid $1,480 for six months of insurance.
Journalize the transactions.
Answer:
Cheyenne’s Dog Care
Journal Entries:
March 1:
Debit Rent Expense $980
Credit Cash Account $980
To record the payment of monthly rent.
March 3:
Debit Accounts Receivable $110
Credit Service Revenue $110
To record the performance of services on account.
March 5:
Debit Cash Account $60
Credit Service Revenue $60
To record the performance of services for cash.
March 8:
Debit Equipment $490
Credit Cash Account $65
Credit Accounts Payable $425
March 12:
Debit Cash Account $110
Credit Accounts Receivable $110
To record the receipt of cash from customers.
March 14:
Debit Wages Expense $430
Credit Cash Account $430
To record the payment of wages.
March 22:
Debit Utilities Expense $60
Credit Cash Account $60
To record the payment of utilities.
March 24:
Debit Cash Account $1,230
Credit Notes Payable (Grafton State Bank) $1,230
To record the signing of a note payable.
March 27:
Debit Plumbing Repairs $180
Credit Cash Account $180
To record the payment for plumbing repairs.
March 28:
Debit Accounts Payable $425
Credit Cash Account $425
To record the payment for equipment purchase.
March 30:
Debit Prepaid Insurance $1,480
Credit Cash Account $1,480
To record the payment for six months insurance.
Explanation:
Cheyenne's Dog Care can use the general journal to record its daily business transactions as they occur. The journal identifies the accounts involved in each transaction and shows the accounts to be debited or credited as the case may be.
Perteet Corporation's relevant range of activity is 4,800 units to 10,000 units. When it produces and sells 7,400 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.70 Direct labor $ 3.40 Variable manufacturing overhead $ 1.80 Fixed manufacturing overhead $ 3.60 Fixed selling expense $ 0.50 Fixed administrative expense $ 0.20 Sales commissions $ 0.30 Variable administrative expense $ 0.35 If 5,200 units are produced, the total amount of manufacturing overhead cost is closest to:
Answer:
$36,000
Explanation:
The computation of the total amount of manufacturing overhead is shown below:
But before that determine the following amounts
Fixed manufacturing overhead is
= 7,400 × $3.6
= $26,640
ANd, the Variable manufacturing overhead is
= 5,200 × $1.80
= $9,360
So,
Total manufacturing overhead is
= $26,640 + $9,360
= $36,000
The following transactions occurred during Year 2: Issued common stock for $19,000 cash. ABC borrowed an additional $11,000 from Chris Bank. ABC earned $9,000 of revenue on account. ABC incurred $4,000 of operating expenses on account. Cash collections of accounts receivables were $6,000. ABC provided additional services to customers for $1,000 cash. ABC purchased land for $14,000. ABC used $3,000 in cash to make a partial payment on its accounts payable. ABC declared and paid a $200 dividend to the stockholders On December 31 ABC had accrued salaries of $4,000. What is the net cash flow from operating activities shown on the statement of cash flows for the year ending December 31, Year 2
Answer: $2000
Explanation:
The net cash flow from operating activities shown on the statement of cash flows for the year ending December 31, Year 2 can be calculated below:
Revenue: = $9000 + $1000 = $10,000
Less: Expenses
Operating expenses: $4000
Accrued salary expenses: $4000
Total expense: $8000
Net income = Revenue - Expense
= $10000 - $8000
= $2000
Which is an effect of stagflation?
a. Trade with other economies increases.
b. The value of a country’s currency drops.
c. Prices for goods fall sharply and suddenly.
d. The GDP rises along with production levels.
Answer: Its b. The value of a country’s currency drops.
Explanation: I did the test and got 100%
The biggest U.S. stock exchange is located in which city?
O A. New York
B. Los Angeles
C. Washington, D.C.
D. Chicago
Why is it important to focus on others' needs when communicating online?
Answer:
Why is it important to focus on others' needs when communicating online? It is important to consider others needs so that your online communication is not harmful to others and to your relationships. ... The rules and guidelines for effective Internet communication.
Explanation:
The today's all are connected to the online and the communicating to the online. There are the involved to the groups and the gossips.
What is communicating?
The term communicating refers to communicate to the one person to the another person. The term communicating is to communicate to the mass level as well as to share the ideas and the thoughts. The communicating are to share the preferences to the one person to the another.
Nowadays, the youth are the involved to the social media in the groups. They are the communicating to the one person to the another person is the safe. The internet are the all are the used to the one social media, it was the connected to the each. The communicating the connected to the online and the gossips.
As a result, the today's all are connected to the online and the communicating to the online.
Learn more about on communicating, here:
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Exercise 1-15A Calculate amounts related to the balance of retained earnings (LO1-3) Below are approximate amounts related to retained earnings reported by five companies in previous years. Coca-Cola reports an increase in retained earnings of $3.2 billion and net income of $6.9 billion. PepsiCo reports an increase in retained earnings of $3.4 billion and dividends of $2.6 billion. Alphabet reports an increase in retained earnings of $1.6 billion and net income of $1.6 billion. Sirius XM Satellite Radio reports beginning retained earnings of −$1.6 billion, net loss of $1.0 billion, and $0 dividends. Abercrombie & Fitch reports ending retained earnings of $1.56 billion, net income of $0.43 billion, and dividends of $0.06 billion. (Enter your answers in billions rounded to 2 decimal places. Negative amounts should be indicated by a minus sign.) Required: What is the amount of dividends of Coca-Cola? What is the amount of net income of PepsiCo? What is the amount of dividends of Alphabet? What is the amount of ending retained earnings of Sirius XM Satellite Radio? What is the amount of beginning retained earnings of Abercrombie & Fitch?
Answer:
1) $3.7 billion
2) $6 billion
3) 0
4) -$2.6 billion
5) $1.19 billion
Explanation:
(1) The amount of dividend of Coca-cola can be calculated as follows
Net income - increase in retained earnings
= $6.9 billion - $3.2 billion
= $3.7 billion
(2) The net income of PepsiCo can be calculated as follows
= increase in retained earnings + dividend
= $3.4 billion + $2.6 billion
= $6 billion
(3) The dividend of Alphabet can be calculated as follows
= increase in retained earnings -net income
= $1.6 billion - $1.6 billion
= 0
(4) The ending retained earnings of Sirius XM satellite radio can be calculated as follows
= beginning retained earnings - net loss-dividends
= -$1.6 billion -$1.0 billion - 0
= -$2.6 billion
(5) The amount of beginning retained earnings of Abercrombie and Fitch can be calculated as follows
Ending retained earnings - net income + Dividend
= $1.56 billion - $0.43 billion + $0.06 billion
= $1.19 billion
Dividend discount model.
Consider 3 stocks:
a. Stock A is expected to provide a dividend of $10/share forever.
b. Stock B is expected to pay a $5 dividend next year. Thereafter, dividend growth is expected to be 4% a year forever.
c. Stock C is expected to pay a $5 dividend next year. Thereafter, growth is expected to be 20% a year for 5 years (years 2 through 6) and 0 thereafter.
If the market capitalization rate for each stock is 10%, which stock is the most valuable?
Answer:
stock A is the most valuable since it is worth $100
Explanation:
Price of stock A = $10 / 10% = $100
Price of stock B = $5 / (10% - 4%) = $83.33
Price of stock C:
P₁ = $5 / 1.1 = $4.5454
P₂ = $6 / 1.1² = $4.9587
P₃ = $7.20 / 1.1³ = $5.4095
P₄ = $8.64 / 1.1⁴ = $5.9012
P₅ = $10.368 / 1.1⁵ = $6.4377
P₆ = terminal value = $12.4416 / 0.1 = $124.416, now we discount it at 10% per year = $124.416 / 1.1⁶ = $70.2296
P₀ = P₁ + P₂ + P₃ + P₄ + P₅ + P₆ = $97.48
Medusa Products uses a job-order costing system. Overhead costs are applied to jobs on the basis of machine-hours. At the beginning of the year, management estimated that the company would work 86,000 machine-hours and incur $215,000 in manufacturing overhead costs for the year. Required: 1. Compute the company's predetermined overhead rate. (Round your answer to 2 decimal places.) 2. Assume that during the year the company actually worked only 80,500 machine-hours and incurred $210,000 of manufacturing overhead costs. Compute the amount of underapplied or overapplied overhead for the year. (Round your intermediate calculation to 2 decimal places.)
Answer:
1. $2.50
2. $8,855.00
Explanation:
1. The computation of the company's predetermined overhead rate is shown below:-
1. Predetermined Application rate = Manufacturing overhead costs ÷ Machine hours
= $215,000 ÷ 86,000
= $2.50
2. The computation of the amount of underapplied or overapplied overhead for the year is shown below:-
Actual application = Manufacturing overhead costs ÷ Machine hours
= $210,000 ÷ 80,500
= 2.61
Now the under absrobed is
= 2.61 - 2.50
= 0.11
Now the under overhead is
= 80,500 × 0.11
= $8,855.00
module 3 BlockWood Inc. has been providing raw materials to Couches Corp., a furniture company. The management at Couches recently decided to cut the prices it pays for the raw materials. BlockWood Inc. tried to negotiate a price that would be feasible for both companies, but Couches did not agree to pay more than what they had quoted. As BlockWood Inc. was facing similar difficulties with other buyers too, it eventually stopped supplying raw materials and took to manufacturing furniture instead. This scenario best illustrates ________.
The correct answer to this open question is the following.
You forgot to include the options for this question. However, we can answer the following.
This scenario best illustrates forward integration.
This is a case of forward integration because BlockWood Inc., which was facing similar difficulties with other buyers too, eventually stopped supplying raw materials and took to manufacturing furniture instead. SO they decided to fabricate their own furniture.
Companies make this decision as a process of vertical integration to expand and grow their business. In this case to produce and control their own products, eliminating the retailer that had decided to pay less money for the raw materials.
So now, Blockwood Inc. has the challenge to design and sell the products it is fabricating.
