Answers
Answer:
Time and money
Answer:
Time and money
Explanation:
Related Questions
The list includes all balance sheet accounts related to cash from operating activities.
Case X Case Y Case Z
Net income $4,000 $100,000 $72,000
Depreciation expense 30,000 8,000 24,000
Accounts receivable increase (decrease) 40,000 20,000 (4,000)
Inventory increase (decrease) (20,000) (10,000) 10,000
Accounts payable increase (decrease) 24,000 (22,000) 14,000
Accrued liabilities increase (decrease) (44,000) 12,000 (8,000)
For each separate company, compute cash flows from operations using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)
Answers
Answer: Please see answers in explanation column
Explanation:
Using the indirect method.
Balance Sheet Accounts Case X Case Y Case Z
Net Income $4,000 $100,000 $72,000
Adjustments to reconcile net income to net cash provided by operations:
Depreciation $30,000 $8,000 $24,000
Account Receivables $-40,000 $-20,000 $4,000
Inventory $20,000 $10,000 -$10,000
Account Payable $24,000 -$22,000 $14,000
Accrued Liability -$44,000 $12,000 -$8000
Cash Flows from operating
activities -$6,000 $88,000 $96,000
Warren and Liza were drafting the partnership agreement for their new home design and construction company.
Select the item below that
A) Warren and Liza should include in their partnership agreement.
B) Short- and long-term sales forecasts
C) Rights of the stockholders of the business
D) The amount of money each partner invests
E) Formal code of conduct for employees
Answers
Answer:
Since Warren and Liza were drafting their patnership agreement for their new home design and construction company, they should include the following:
B) Short- and long-term sales forecasts
C) Rights of the stockholders of the business
D) The amount of money each partner invests
Explanation:
Inclusion of the following above will help in the clarification of the information of what their individual stakes were in the company and what rights and privileges each of them has as a partner in the company that was to be established.
The items mentioned below were the requisites of the new partnership agreement that was drafted by Warren and Liza.
B) Short- and long-term sales forecasts
C) Rights of the stockholders of the business
D) The amount of money each partner invests.
The partnership agreement is termed as the document that is outlined and framed by the legal members of the company. The members of the company agree upon the terms and the conditions mentioned in the agreement.
It is structured as a legal document that contains all the obligations in regard to the duties, responsibilities, and authorities of the partnerships and their accountability towards the growth and the survival of the company in the market.
Therefore the correct options are B, C, D.
To know more about the partnership agreement, refer to the link below:
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a company that has been in business for 10 years is a
Answers
Answer:
is still considered a startup after 10 year of existance
Explanation:
A company producing apps for a social networking site is deciding which path to pursue. The first is to create an app that has universal appeal but faces a crowded market. This app, A, would have sales of 100,000 copies at $1 each under ideal conditions, but under tough conditions would have sales of only 60,000 copies at $.80 each. The other app, B, would have sales of 500,000 units at $.50 each under ideal conditions but sales would be reduced to 10,000 units at $.50 each under tough conditions. If ideal and rough conditions occur with the same frequency, which app should the company produce? Note: both apps cost the same amount to develop.
Answers
Answer:
The company should produce App B.
Explanation:
a) Data and Calculations:
App A
Ideal condition Sales = 100,000 at $1 = $100,000
Tough condition Sales = 60,000 at $0.80 = $48,000
Expected Sales Revenue under ideal = $100,000 * 50% = $50,000
Expected Sales Revenue under tough = $48,000 * 50% = $24,000
Total sales = $74,000
App B:
Ideal condition Sales = 500,000 at $0.50 = $250,000
Tough condition Sales = 10,000 at $0.50 = $5,000
Expected Sales Revenue under ideal = $250,000 * 50% = $125,000
Expected Sales Revenue under tough = $5,000 * 50% = $2,500
Total sales = $127,500
b) App B will yield a total expected sales revenue of $127,500. This is far better than App A's $74,000.
A social networking service is referred to as an online platform that allows people to develop social networks or relationships with others who have identical academic or work goals, hobbies, experiences, or real-life contacts. The format and number of options provided by social networking services differ.
The answer is the company should produce App B.
a) Data and Calculations:
App A
Ideal condition Sales = 100,000 at $1 = $100,000
Tough condition Sales = 60,000 at $0.80 = $48,000
Expected Sales Revenue under ideal = $100,000 * 50% = $50,000
Expected Sales Revenue under tough = $48,000 * 50% = $24,000
Total sales = $74,000
App B:
Ideal condition Sales = 500,000 at $0.50 = $250,000
Tough condition Sales = 10,000 at $0.50 = $5,000
Expected Sales Revenue under ideal = $250,000 * 50% = $125,000
Expected Sales Revenue under tough = $5,000 * 50% = $2,500
Total sales = $127,500
b) App B yields a total expected sales revenue of $127,500 as compared to App A's $74,000.
To know more about the calculation of both the apps, refer to the link below:
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Mr. A, a cash-basis taxpayer, sold his business in the current year for $120,000. The contract allocated $40,000 to inventory and $80,000 to real property. The book value of the inventory was $38,000. The real property had a cost of $40,000 and depreciation claimed on a straight-line basis was $20,000. In the current year, Mr. A received a down payment of $60,000 of which $40,000 was payment for the inventory. Mr. A had no other Sec. 1231 transactions. What is the amount and nature of the gain that Mr. A should report in the current year using the installment method?
Answers
Answer:
$2,000 ordinary gain and $15,000 long term capital gains
Explanation:
Under the installment method, the taxpayer will recognize gains based on the installments that they actually receive, not the whole contract. This method is generally used for real estate transactions that involve installments payments during several years.
In this case, Mr A received $60,000:
$40,000 for inventory, so gain = $40,000 - $38,000 = $2,000 ordinary gain
$20,000 for real property (25% of transaction price) = $20,000 x [($40,000 - $20,000) x 25%] = $20,000 - $5,000 = $15,000 long term capital gains
Carla Vista Energy Company owns several gas stations. Management is looking to open a new station in the western suburbs of Baltimore. One possibility that managers at the company are evaluating is to take over a station located at a site that has been leased from the county. The lease, originally for 99 years, currently has 73 years before expiration. The gas station generated a net cash flow of $87,460 last year, and the current owners expect an annual growth rate of 6.3 percent. If Carla Vista Energy uses a discount rate of 13.8 percent to evaluate such businesses, what is the present value of this growing annuity
Answers
Answer:
The present Value of the growing annuity= $1,158,092.68
Explanation:
The present value of the growing annuity is going to be computed as follows:
PV = A/(r-g) × (1- (1+g/1+r)^n)
A- annual cash flow- $87,460
g- growth rate - 6.3%
n- number of years =73
r- discount rate - 13.8%
I will break out the formula into two parts to make the workings very clear to follow. So applying this formula, we can work out the present value of the growing annuity as follows.
A/(r-g) = 87,460/(0.138-0.063) =1,166,133.33
(1- (1+g/1+r)^n) = 1- (1.063/1.138)^73 =0.9931
PV = A/(r-g) × (1- (1+g/1+r)^n)
166,133.33× 0.9931 = 1,158,092.68
The present Value of the growing annuity= $1,158,092.68
. You have room for up to two fruit-bearing trees in your garden. The fruit trees that can grow in your garden are either apple, orange, or pear. The cost of maintenance is $100 for an apple tree, $70 for an orange tree, and $120 for a pear tree. Your food bill will be reduced by $130 for each apple tree you plant, by $145 for each pear tree you plant, and by $90 for each orange tree you plant. You care only about your total expenditure in making any decisions. (a) List the set of possible actions, related outcomes, and the payoff of each action/outcome. What is your optimal action
Answers
Answer:
you should have 2 apple trees
Explanation:
you can have savings costs net payoff
no tree at all 0 0 0
1 apple tree $130 $100 $30
1 orange tree $90 $70 $20
1 pear tree $145 $120 $25
2 apple trees $260 $200 $60
2 orange trees $180 $140 $40
2 pear trees $290 $240 $50
1 apple + 1 pear tree $275 $220 $55
1 apple + 1 orange tree $220 $170 $50
1 orange + 1 pear tree $235 $190 $45
True or False: A price ceiling below $25 per box is not a binding price ceiling in this market. True False Because it takes many years before newly planted orange trees bear fruit, the supply curve in the short run is almost vertical. In the long run, farmers can decide whether to plant oranges on their land, to plant something else, or to sell their land altogether. Therefore, the long-run supply of oranges is much more price sensitive than the short-run supply of oranges. Assuming that the long-run demand for oranges is the same as the short-run demand, you would expect a binding price ceiling to result in a that is in the long run than in the short run.
Answers
Answer:
1. False
2. Shortage; Larger
Explanation:
1. A binding price ceiling is one that prevents the market from reaching its equilibrium. In this market, the equilibrium price is $25 therefore anything below $25 will be binding. A price ceiling below $25 per box is a binding ceiling.
2. Assuming that the long-run demand for oranges is the same as the short-run demand, you would expect a binding price ceiling to result in a shortage that is larger in the long run than in the short run.
In the long run, supply is more sensitive because farmers can decide to plant oranges on their land, to plant something else, or to sell their land altogether.
This means that a price ceiling in the long run will be less attractive to farmers so they might leave the market. If they do this then the shortage will be more as there are now less supplies in the market.
Bledsoe Corporation has provided the following data for the month of November: Inventories: Beginning Ending Raw materials $ 25,800 $ 21,800 Work in process $ 17,800 $ 10,800 Finished Goods $ 48,800 $ 56,800 Additional information: Raw materials purchases $ 72,800 Direct labor cost $ 92,800 Manufacturing overhead cost incurred $ 42,880 Indirect materials included in manufacturing overhead cost incurred $ 4,080 Manufacturing overhead cost applied to Work in Process $ 41,800 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. Required: Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold.
Answers
Answer:
cost of goods manufactured= $218,400
COGS= $210,400
Explanation:
To calculate the cost of goods manufactured, we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 17,800 + (25,800 + 72,800 - 21,800) + 92,800 + 41,800 - 10,800
cost of goods manufactured= $218,400
Now, we can determine the cost of goods sold:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 48,800 + 218,400 - 56,800
COGS= $210,400
Which of the following statements about the Arbitrage Pricing Theory (APT) are correct? Check all that apply. The APT maintains that the realized return on any stock depends on changes unique to the firm. The APT identifies all relevant factors that affect the realized returns on stocks. The APT model maintains that the realized returns on stocks depend on unexpected changes in fundamental economic factors. The APT is more general than the Capital Asset Pricing Model (CAPM).
Answers
Answer: The APT identifies all relevant factors that affect the realized returns on stocks.
Explanation:
Arbitrage pricing theory (APT) is an idea that has to do with the fact when the linear relationship between the macroeconomic variables and the expected return of an asset are analysed, such assets return can be forecasted.
In arbitrage pricing theory, several risk factors are used in determining prices. It also identifies all relevant factors that affect the realized returns on stocks.
The following December 31, 2021, fiscal year-end account balance information is available for the Stonebridge Corporation:
Cash and cash equivalents Accounts receivable (net) Inventory Property, plant, and equipment (net) Accounts payable Salaries payable Paid-in capital $ 5,400 24,000 64,000 140,000 43,000 15,000 120,000
The only asset not listed is short-term investments. The only liabilities not listed are $34,000 notes payable due in two years and related accrued interest of $1,000 due in four months. The current ratio at year-end is 1.7.1.
Required: Determine the following at December 31, 2021:
1. Total current assets
2. Short-term investments
3. Retained earnings
Answers
Answer:
1. Given Current Ratio = 1.7:1
Current assets / Current Liability = 1.7/1
Current assets = 1.7 * Current liability
Current liabilities = Account payable + Salaries payable + Accured interest
Current liabilities = $43,000 + $15,000 + $1,000
Total Current liabilities = $59,000
Therefore, Current assets = 1.7 * $59,000
Total Current assets = $100,300
2. Current assets = Cash and Cash equivalent + Account receivables + Inventory + Short term investment
$100,300 = $5,400 + $24,000 + $64,000 + Short term investment
Short term investment = $100,300 - $5,400 - $24,000 - $64,000
Short term investment = $6,900
3. Assets = Liabilities + Capital
Current assets + Non-Current assets = Current liabilities + Long term liabilities + Paid in capital + Retained earnings
$100,300 + $140,000 = $59,000 + $120,000 + Retained earnings
$240,300 = $213,000 + Retained earnings
Retained earnings = $27,300
The following cost data pertain to the operations of Star Wars Department Stores, Inc., for the month of September. Corporate headquarters building lease $ 86,000 Cosmetics Department sales commissions--Stardust Store $ 5,300 Corporate legal office salaries $ 57,300 Store manager's salary - Stardust Store $ 11,700 Heating- Stardust Store $ 14,400 Cosmetics Department cost of sales--Stardust Store $ 32,400 Central warehouse lease cost $ 13,900 Store security -- Stardust Store $ 16,300 Cosmetics Department manager's salary--Stardust Store $ 4,260 The Stardust Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Stardust Store. The central warehouse serves all of the company's stores. What is the total amount of the costs listed above that are direct costs of the Cosmetics Department
Answers
Answer: $41,960
Explanation:
The direct costs for the Cosmetics department will be those ones that are directly related to the sales of cosmetics and the running of the department and the cost of selling the units.
Direct Costs = Cosmetics Department sales commissions--Stardust Store + Cosmetics Department cost of sales--Stardust Store + Cosmetics Department manager's salary--Stardust Store
= 5,300 + 32,400 + 4,260
= $41,960
What effect do consumer expectations have on the demand for a good?
Answers
Answer:
A. They reduce the demand for products expected to become cheaper in the future.
Explanation:
Consumer expectations of what the price of a good would be in the future, can significantly determine the extent to which the demand of such good would be demanded.
Hypothetically, if consumers expect the price of electronics products to be cheaper by the end of this year, the current demand for electronics products would decrease for now, as consumers would rather hold on purchasing such products till end of the year, when the prices would be cheaper.
Therefore, the effect that consumer expectations have on the demand for a good is:
A. "They reduce the demand for products expected to become cheaper in the future."
they reduce demand for products expected to become cheaper in the future
Explanation:
Which one of the following actions by a financial manager is most apt to create an agency problem? Increasing current profits when doing so lowers the value of the company's equity Refusing to expand the company if doing so will lower the value of the equity Refusing to lower selling prices if doing so will reduce the net profits Agreeing to pay bonuses based on the market value of the company's stock rather than on its level of sales Refusing to borrow money when doing so will create losses for the firm
Answers
Answer: Increasing current profits when doing so lowers the value of the company's equity.
Explanation:
The main purpose of a company is to increase the wealth of shareholders. In their capacity as stewards for the company, managers should be working therefore to achieve this goal.
When management neglects this goal and begins to seek an improvement in their welfare and wealth instead of the shareholder', this is an Agency problem.
If a Financial manager is increasing current profits even though doing so will lower the value of the company's equity, this can create an agency problem because the shareholders are suffering but the finance manager might get rewarded for increasing profits.
. Gibson Company sales for the year 2019 were $4.5 million. The firm’s variable operating cost ratio was 0.45 and fixed costs (that is, overhead and depreciation) were $1 million. Its average (and marginal) income tax rate is 25 percent. Currently, the firm has $2.4 million of long-term bank loans outstanding at an average interest rate of 12 percent. The remainder of the firm’s capital structure consists of common stock (110,000 shares outstanding at the present time). a. Calculate Gibson’s degree of combined leverage for 2019. b. Gibson is forecasting a 15 percent increase in sales for this year (2020). Furthermore, the firm is planning to purchase additional labor-saving equipment which will increase fixed costs by $200,000 and will reduce the variable cost ratio to 0.42. Financing this equipment with debt will require additional bank loans of $900,000. Calculate Gibson’s expected degree of combined leverage for 2020. c. Determine how much Gibson must reduce its interest expenses in 2020 (for example, through the sale of common stock) to maintain its DCL at the 2019 level. d. Assuming that the debt is permanent (or perpetual) what is the reduction in debt associated with the interest expense reduction in part c?
Answers
Answer:
See solutions below
Explanation:
1. The degree of combined leverage
= (Sales - Variable costs) / EBIT - Interest
Sales = $4.5 million
Variable costs = 0.45 × $4.5 million
= $2,025,000
EBIT = $4,500,000 - $2,025,000 - $1,000,000
= $1,475,000
Interest = 12% × $2,400,000
= $288,000
Therefore,
DCL = [$4,500,000 - $2,025,000] / $1,475,000 - $288,000
= $2,475,000 / $1,187,000
= 2.09
2. Gibson expected degree of leverage
Sales = 15% × $4.5 million
= $5,175,000
Fixed cost = $200,000 + $1,000,000
= $1,200,000
Variable cost = $0.42 × $2,025,000 - $2,025,000
= $2,025,000 - $850,500
= $1,174,500
EBIT = $5,175,000 - $1,174,500 - $1,200,000
= $2,800,500
Interest = $2,400,000 + $900,000
= 12% × $3,300,000
= $396,000
DCL = $5,175,000 - $1,174,500 / $2,800,500 - $396,000
= $4,000,500 / $2,404,500
= 1.66
Suppose that, in a competitive market without government regulations, the equilibrium price of donuts is $1.50 each. Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.
Statement Price Control Binding or Not
1. Due to new regulations, donut shops that would like to pay better wages in order to hire more workers are prohibited from doing so.
2. Price ceiling Binding The government has instituted a legal minimum price of $1.10 each for donuts.
3. Price floor Non-binding The government prohibits donut shops from selling donuts for more than $1.10 each.
Answers
just saying hi hint use google like i do
Explanation:
Are leadership and management the same thing?
Can you be one without the other?
What are the similarities and differences?
Can someone please help me right a 3 sentence paragraph for each question pleaseeeee
Answers
Which of the following is true of the management function of directing? Group of answer choices Directing involves determining and administering appropriate rewards and recognition. Telling employees what to do and when to do it is against the principles of directing. Directing designs the map that lays the groundwork for the other managerial functions. All managers are involved in directing, but it is most important for top-level managers. Good directing does not require the implementation setting deadlines.
Answers
Answer:
Directing involves determining and administering appropriate rewards and recognition.
Explanation:
The true statement about the management function of directing is that, directing involves determining and administering appropriate rewards and recognition.
Directing can be defined as a management function which typically involves the process of instructing, motivating, guiding, supervising, controlling, counseling and overseeing the performances of the various employees working in an organization in order to successfully achieve the organization's aim, set goals and objectives.
Generally, managers or the senior executive members are the individuals who are saddled with the responsibility of directing the affairs of business and employees working in an organization through the process of developing, establishing and administering appropriate rewards such as allowance, salaries, vacations etc and recognition such as awards, promotions, training etc.
Hence, these rewards and recognition go a long way to motivate the employees to give their best at their place of work.
Consider that you are a member of a work team but feel that you are carrying a much heavier workload than another team member. You also feel that other team members are not invested in the team initiative, as they show up late to meetings, if they show up at all. Last week, a different team member also criticized you in a disrespectful manner in front of the rest of the team. Your team leader is completely unaware of all of these issues. In what manner and in what order would you resolve all of the above conflicts and why
Answers
Explanation:
Analyzing the conflicts exposed in the scenario above, it is possible to identify a communication failure between the team. Therefore, the first way to solve these problems would be to make room for dialogue, using an assertive approach, exposing the facts and seeking the best solution for team integration and the pursuit of common goals.
The ideal would also be to communicate to the team leader about conflicts, so that he could assist in the best strategy for solving problems and delegating tasks to members, so as not to overload any collaborator and each one contribute in the best way to success team's.
According to an article in the Wall Street Journal, in 2016, Moody's Investors Service has agreed to pay $130 million to end a prominent lawsuit alleging crisis-era misconduct ... The article also noted that, The industry's business model ... remains in place. Source: Timothy W. Martin, Moody's to Pay Calpers $130 Million to Settle Lawsuit, Wall Street Journal, March 9, 2016. All of the following factors contributed to the misconduct cited in the article, except: A. Rating agencies provided high ratings primarily to ensure firms would continue to hire them. B. Analysts anticipated how severe the housing crisis would be. C. Many of the mortgage-backed securities had complicated structures. D. Analysts at the rating agencies were reluctant to require issuers to provide sufficient information to rate the securities. Which of the following does NOT explain why the industry's business model remains in place? A. Governments include bond ratings in their regulation of banks. B. New restrictions on conflicts of interest have been placed on the agencies. C. Ratings agencies are shielded from investor lawsuits. D. Investors still rely heavily on the agencies.
Answers
Answer:
All of the following factors contributed to the misconduct cited in the article, except:
D. Analysts at the rating agencies were reluctant to require issuers to provide sufficient information to rate the securities.
Which of the following does NOT explain why the industry's business model remains in place?
C. Ratings agencies are shielded from investor lawsuits.
Explanation:
"The Federal Reserve raises the reserve requirement from 7 percent to 8 percent. Consequently banks must set aside more money and consequently have less money to lend. The result is that the banks will raise the interest rate they charge to their customers. These conditions make it harder and more expensive for people and businesses to borrow money. Because they can’t borrow as much, they can’t spend as much. If people aren’t spending as much, prices don’t go up. With this action, the Fed has lessened the likelihood of ________."
Answers
Answer: a. Inflation
Explanation:
Inflation refers to the general rise in prices of items in an economy in a certain period of time. Inflation essentially erodes the value of the domestic currency of the economy in question.
Central Banks like the Fed can use Monetary policy to influence inflation. In this case they reduced the amount of money in the economy by reducing bank loans. This will ensure that people cannot spend too much which would increase demand and therefore increase prices.
By doing this, they have limited the likelihood of inflation.
6. The Center for Child Care reports on 539 children and the marital status of
their parents. There are 333 married, 182 divorced, and 24 widowed parents.
What is the probability a particular child chosen at random will have a parent
who is divorced? Which approach did you use?
Answers
Answer:
0.338
Explanation:
The probability of an event happening is between o and 1. A 1 guarantees the event will happen while 0 means it won't happen.
In this case, The total number of students is 539. One hundred eighty-two have divorced parents. The probability of getting a child with divorced parents is 182 in a population of 539.
It is represented as a decimal as below
=182/539
=0.33766
=0.338
Acton Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead $361,260 Estimated machine-hours 2,700 Actual manufacturing overhead $354,700 Actual machine-hours 2,660 The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. The overhead for the year was: Noreen 4e Recheck 2017-16-03a) $5,352 underappliedb) $5,352 overappliedc) $1,208 underappliedd) $1,208 overapplied
Answers
Answer:
Acton Corporation
The overhead for the year was:
$1,208 overapplied
Explanation:
a) Data and Calculations:
Estimated manufacturing overhead $361,260
Estimated machine-hours 2,700
Predetermined overhead rate = $361,260/2,700 = $13.38
Actual manufacturing overhead $354,700
Actual machine-hours 2,660
Overhead applied = Actual machine hours * Predetermined overhead rate
= 2,660 * $13.38
= $355,908
Overapplied overhead = Overhead applied minus Actual overhead
= $355,908 - $354,700
= $1,208
On July 1, 2017, Lopez Company paid $1,200 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31, 2017. Zim Company has a Supplies account balance of $5,000 on January 1, 2017. During 2017, its purchase $2,000 of supplies. As of December 31, 2017, a supplies inventory shows $800 of supplies available. Prepare the journal entries to reflect expiration of the insurance and correctly report the balance of the Supplies account and the Supplies Expense account as of December 31, 2017.
Answers
Answer and Explanation:
The journal entries are shown below:
1. Insurance expense Dr $1,200
To Prepaid insurance $1,200
(Being the insurance expense is recorded)
2. Supplies expense Dr ($5,000 + $2,000 - $800) $6,200
To Supplies $6,200
(Being the supplies expense is recorded)
These two above entries should be recorded and the same is to be considered
Today is date 0. In 10 years, you plan to retire and buy a house in Norman, OK. In terms of a time line, you will retire at the end of year 10. The house you are looking at currently costs $200,000 and is expected to increase in value each year at a rate of 5% compounded annually. Assuming you can earn 10% annually on any investment you might make, how much must you invest at the end of each of the next 10 years to be able to buy your dream home when you retire?
Answers
Answer:
$20,441.67
Explanation:
the present value of your house is $200,000, its future value = $200,000 x (1 + 5%)¹⁰ = $325,778.93
you can earn a 10% annual interest rate for 10 years, that means that we can use a future value of an annuity factor = 15.937
your annual investment = future value of the house / annuity factor = $325,778.93 / 15.937 = $20,441.67
Eaton Electronic Company’s treasurer uses both the capital asset pricing model and the dividend valuation model to compute the cost of common equity (also referred to as the required rate of return for common equity). Assume: Rf = 3 % Km = 6 % β = 1.1 D1 = $ 0.50 P0 = $ 15 g = 5 % a. Compute Ki (required rate of return on common equity based on the capital asset pricing model). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
Answers
Answer:
Ki = 0.063 or 6.30%
Explanation:
The CAPM or Capital asset pricing model is an approach to calculate the required rate of return of a stock. The required rate of return or cost of equity is the minimum return required by the investors o invest in a stock based on the systematic risk of the stock. The formula to calculate the required rate of return of a stock using the CAPM is,
Ki = Rf + β * (Km - Rf)
Where,
Rf is the risk free rateβ is the beta of the stockKm is the expected return on the marketKi = 0.03 + 1.1 * (0.06 - 0.03)
Ki = 0.063 or 6.3%
Lock Company purchased $100,000, 10%, 5-year bonds on January 1, 20x1, with interest payable on July 1 and January 1. The effective interest rate for these bonds was 8.5%. The market value on December 31, 20x1 was $104,400 and all bonds were sold for 103 on January 2, 20x2. Lock is a calendar-year corporation and use the effective interest method for amortization of premium or discount.
Required:
Prepare journal entries on January 1, 20x1, July 1, 20x1, December 31, 20x1 and January 1, 20x2 assuming the bond investment is classified as available-for-sale security.Assuming the bond investment is classified as available for sale security.
Answers
Answer:
Explanation:
see attached file.
Lewisburg Corporation had 12,000 units of beginning inventory in its Forming Department on July 1. The units were 100 percent complete with respect to direct materials requirements but only 40 percent complete with respect to conversion requirements. On July 31, the company had 9,000 units of inventory remaining in its Forming Department. These units were 100 percent complete with respect to their direct materials requirements but only 70 percent complete with respect to conversion. The Forming Department’s direct materials cost for July totaled $500,000, or $25 per equivalent unit consumed. Its conversion costs for July totaled $352,000, or $16 per equivalent unit. Determine how many units were started and completed in the Forming Department during July.
Answers
Answer:
the total number of units started and completed = 11,000 units
Explanation:
total materials costs incurred during the month = $500,000
if materials are added at the beginning of the process, beginning WIP already had 100% of materials costs added, therefore, materials costs were applied only to the total number of units started
total number of units started = $500,000 / $25 cost per EUP = 20,000 units
the total number of units started and completed = units started - ending WIP = 20,000 - 9,000 = 11,000 units
total number of units completed = beginning WIP + units started - ending WIP = 12,000 + 20,000 - 9,000 = 23,000 units
Tierney Company begins operations on April 1. Information from job cost sheets shows the following. Manufacturing Costs Assigned Job Number April May June Month Completed 10 $7,200 $5,600 May 11 5,800 4,300 $3,700 June 12 1,800 April 13 6,000 5,100 June 14 6,700 4,600 Not complete Job 12 was completed in April. Job 10 was completed in May. Jobs 11 and 13 were completed in June. Each job was sold for 25% above its cost in the month following completion. (a) What is the balance in Work in Process Inventory at the end of each month
Answers
Answer:
April
Job 12 was completed in April which leaves only Job 10 and 11 in April.
Balance in Work in process account is;
= 7,200 + 5,800
= $13,000
May
Job 10 was completed in May leaving Jobs 11, 13 and 14.
The costs for Job 11 will include the costs from April.
= 5,800 + 4,300 + 6,000 + 6,700
= $22,800
June
Jobs 11 and 13 were completed in June leaving only Job 14.
Job 14 costs will include costs from May as well.
= 6,700 + 4,600
= $11,300
The expenses incurred during the creation of a product are known as manufacturing costs. The materials employed in a product's construction are referred to as direct materials.
The work-in-progress inventory has been provided below:
April
Job 12 was completed in April which leaves only Job 10 and 11 in April.
Balance in Work in process account is;
= 7,200 + 5,800
= $13,000
May
Job 10 was completed in May leaving Jobs 11, 13, and 14.
The costs for Job 11 will include the costs from April.
= 5,800 + 4,300 + 6,000 + 6,700
= $22,800
June
Jobs 11 and 13 were completed in June leaving only Job 14.
Job 14 costs will include costs from May as well.
= 6,700 + 4,600
= $11,300
Direct material, direct labor, and manufacturing overhead costs are included in these expenses. Normally, the costs are shown as distinct line items in the revenue statement. These expenses are incurred by an entity throughout the production process.
The amount of the manufacturing process's labor costs that are specifically attributed to a unit of production is known as direct labor. The application of manufacturing overhead costs to units of production depends on many alternative allocation schemes, such as the number of direct labor hours or machine hours used.
Learn more about manufacturing costs here:
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Kluth Corporation has two manufacturing departments--Molding and Customizing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:
Molding Customizing Total
Estimated total machine-
hours (MHs) 9,000 3,600 12,600
Estimated total fixed
manufacturing overhead
cost $36,000 $13,320 $49,320
Estimated variable
manufacturing overhead
cost per MH $2.50 $3.00
During the most recent month, the company started and completed two jobs--Job C and Job M. There were no beginning inventories. Data concerning those two jobs follow:
Job C Job M
Direct materials $16,700 $9,900
Direct labor cost $23,400 $10,300
Molding machine-hours 2,700 6,300
Customizing machine-hours 3,000 600
Required:
Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. Further assume that the company uses a markup of 20% on manufacturing cost to establish selling prices. Calculate the selling prices for Job C and for Job M.
Answers
Answer:
Kluth Corporation
Calculation of the Selling price of:
Job C Job M
Direct materials $16,700 $9,900
Direct labor cost $23,400 $10,300
Total overhead costs $37,650 $44,970
Total job cost $77,750 $65,170
20% Markup 15,550 13,034
Selling prices $93,300 $78,204
Explanation:
a) Data and Calculations:
Molding Customizing Total
Estimated total machine- hours (MHs) 9,000 3,600 12,600
Estimated total fixed manufacturing
overhead cost $36,000 $13,320 $49,320
Estimated variable manufacturing
overhead cost per MH $2.50 $3.00
Variable manufacturing overhead $22,500 $10,800 $33,300
Total manufacturing overhead $58,500 $24,120 $82,620
Predetermined overhead rate $6.50 $6.70
Jobs started and completed: Job C Job M
Direct materials $16,700 $9,900
Direct labor cost $23,400 $10,300
Molding machine-hours 2,700 6,300
Customizing machine-hours 3,000 600
Overhead costs:
Molding (2,700 * $6.50) $17,550 $40,950 (6,300 * $6.50)
Customizing (3,000 * $6.70) $20,100 $4,020 (600 * $6.70)
Total overhead costs $37,650 $44,970
Total job cost $77,750 $65,170
20% Markup 15,550 13,034
Selling price $93,300 $78,204
