Answer:
$160
Explanation:
Calculation to determine How much does the investor gain or lose
Investor gain =[($20-$18.2)*100 Shares]- ($0.2*100 shares)
Investor gain=($1.8*100 shares)-($0.2*100 shares)
Investor gain=$180-$20
Investor gain=$160
Therefore The amount that the investor gain is $160
Larance Detailing's cost formula for its materials and supplies is $1,910 per month plus $10 per vehicle. For the month of November, the company planned for activity of 86 vehicles, but the actual level of activity was 51 vehicles. The actual materials and supplies for the month was $2,430. The materials and supplies in the flexible budget for November would be closest to:
Answer:
$2,420
Explanation:
Calculation to determine what The materials and supplies in the flexible budget for November would be closest to:
Using this formula
Cost = Fixed cost + (Variable cost per unit × q)
Let plug in the formula
Cost= $1,910 + $10 × 51
Cost= $2,420
Therefore The materials and supplies in the flexible budget for November would be closest to:$2,420
Investment X offers to pay you $5,500 per year for nine years, whereas Investment Y offers to pay you $8,000 per year for five years. a. Calculate the present value for Investments X and Y if the discount rate is 5 percent. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate the present value for Investments X and Y if the discount rate is 15 percent.
Answer:
Investment X = $39,093.02
Investment Y = $34,635.81
b
Investment X =$26,243.71
Investment y =$26,817.24
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Investment X
Cash flow each year from year 1 to 9 = $5,500
PV when I is 5% = $39,093.02
PV when I is 15% =$26,243.71
Investment Y
Cash flow each year from year 1 to 5 = $8,000
PV when I is 5% = $34,635.81
PV when I is 15$26,243.71% = $26,817.24
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Inventory records for Marvin Company revealed the following: Date Transaction Number of Units Unit Cost Mar. 1 Beginning inventory 900 $ 7.26 Mar. 10 Purchase 520 7.76 Mar. 16 Purchase 452 8.36 Mar. 23 Purchase 510 9.06 Marvin sold 1,760 units of inventory during the month. Ending inventory assuming FIFO would be: (Do not round your intermediate calculations. Round your answer to the nearest dollar amount.)
Answer:
Ending inventory cost= $5,556.92
Explanation:
Giving the following information:
Mar. 1 Beginning inventory 900 $ 7.26
Mar. 10 Purchase 520 7.76
Mar. 16 Purchase 452 8.36
Mar. 23 Purchase 510 9.06
Units sold= 1,760
Under the FIFO (first-in, first-out) method, the ending inventory is calculated using the costs of the last units incorporated into inventory:
Units in ending invnetory= 2,382 - 1760= 622
Ending inventory cost= 510*9.06 + 112*8.36
Ending inventory cost= $5,556.92
Lake Incorporated purchased all of the outstanding stock of Huron Company paying $961,000 cash. Lake assumed all of the liabilities of Huron. Book values and fair values of acquired assets and liabilities were: Book Value Fair Value Current assets (net) $ 130,300 $ 124,700 Property, plant, equip. (net) 614,000 769,000 Liabilities 151,800 175,000 Lake would record goodwill of:
Answer:
$242,300
Explanation:
Goodwill = Purchase Price - Net Assets taken over at Fair Value
where,
Purchase Price = $961,000
Net Assets taken over at Fair Value = $ 124,700 + $769,000 - $175,000 = $718,700
therefore,
Goodwill = $961,000 - $718,700 = $242,300
conclusion :
Lake would record goodwill of $242,300
Top Line Electronics has a piece of machinery that costs $600,000 and is expected to have a useful life of 4 years. Residual value is expected to be $100,000. Using the double-declining-balance method, what is depreciation expense for the first year
Answer:
Annual depreciation= $250,000
Explanation:
Giving the following information:
Purchase price= $600,000
Salvage value= $100,000
Useful life= 4 years
To calculate the annual depreciation, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
Annual depreciation= 2*[(600,000 - 100,000) / 4]
Annual depreciation= $250,000
Quantum Inc. has warrants outstanding that allow the holder to purchase 1.5 shares of stock per warrant at $30 per share (exercise price). Thus, each individual share can be purchased at $30 with the warrant. The common stock is currently selling for $36. The warrant is selling for $12.
Required:
a. What is the intrinsic (minimum) value of this warrant?
b. What is the speculative premium on this warrant?
c. What should happen to the speculative premium as the expiration date approaches?
Answer:
A. $9.00
B. $3.00
C. Decrease
Explanation:
a. Calculation to determine the intrinsic (minimum) value of this warrant
Using this formula
I = (M – E) × N
Where,
I represent Intrinsic value of a warrant
M represent Market value of common stock
E represent Exercise price of a warrant
N represent Number of shares each warrant entitles theholder to purchase
Let plug in the formula
I=($36 – $30) *1.5
I=$6*1.5
I = $9.00
Therefore the intrinsic (minimum) value of this warrant is $9.00
b. Calculation to determine the speculative premium on this warrant
Using this formula
S = W – I
Where,
S representSpeculative premium
W represent Warrant price
I represent Intrinsic value.
Let plug in the formula
S=$12-[($36 – $30) *1.5]
S=$12 – $9
S = $3.00
Therefore the speculative premium on this warrant is $3.00
c.What should happen to the SPECULATIVE PREMIUM as the expiration date approaches is for it to DECREASE and thereby approach $0.
Oriole Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $280000 and credit sales are $2810000. Management estimates that 5% of accounts receivable will be uncollectible. What adjusting entry will Oriole Company make if the Allowance for Doubtful Accounts has a credit balance of $2800 before adjustment
Answer:
Dr. Bad debt expense. $11,200
---------To Allowance for doubtful accounts $11,200
Explanation:
Given that:
Accounts receivable balance = $280,000
Total credit sales = $2,810,000
5% of accounts receivables will be bad debt = $280,00 × 5% = $14,000
Credit balance allowance for doubtful account = $2,800 and it must increase to $14,000 I.e $14,000 - $2,800 = $11,200
Adjusting journal entry
Dr Bad debt expense $11,200
-------- Cr Allowance for doubtful accounts $11,200
As a marketing term, __________ generally includes not only physical goods, but also services and ideas. Multiple Choice marketing invention merchandise product concept
Answer:
product
Explanation:
The product is an item that the company offer to its customer for buying the product. It is not only the goods that to be kept physically but it also consist of the services and ideas so that it become differentiate with the competitor. The product can be differentiate in terms of cost, quality, quantity, presentable form via having the innovative ideas
So, the 2nd last option is correct
Gain contingencies usually are recognized in a company's income statement when: Multiple Choice The gain is reasonably possible and the amount is reasonably estimable. The gain is certain The amount is reasonably estimable. The gain is probable and the amount is reasonably estimable.]
Answer: The gain is certain
Explanation:
A Gain contingency means that the company stands to make a gain in future if a certain event happens such as the company winning a lawsuit that would result in a good settlement figure for them.
According to U.S. GAAP, gain contingencies are not to be recognized unless it is certain that the gain is coming. If the gain is not certain and is recorded, the income is considered overstated.
Jiffy Co. expects to pay a dividend of $3.00 per share in one year. The current price of Jiffy common stock is $60 per share. What is the cost of internal common equity (retained earnings) if the long-term growth in dividends is projected to be 9 percent indefinitely
Answer:
the cost of the internal common equity is 14%
Explanation:
The computation of the cost of internal common equity is shown below;
Stock Price = Dividend per share ÷ (required rate of return - growth rate)
$60 = $3 ÷ (required rate of return - 0.09)
60 required return - $5.4 = $3
60 required return = $8.4
So, the required return is
= 8.4 ÷ 60
= 14%
Hence, the cost of the internal common equity is 14%
If 10,000 pounds of direct materials are purchased for $9,300 on account and the standard cost is $.90 per pound, the journal entry to record the purchase is Raw Materials Inventory 9,300 Accounts Payable 9,000 Materials Price Variance 300 Raw Materials Inventory 9,000 Materials Price Variance 300 Accounts Payable 9,300 Work In Process Inventory 9,300 Accounts Payable 9,000 Materials Quantity Variance 300 Raw Materials Inventory 9,300 Accounts Payable 9,300
Answer:
Raw Materials Inventory 9,000 Materials Price Variance 300 Accounts Payable 9,300
Explanation:
Based on the information given journal entry to record the purchase is
Dr Raw Materials Inventory $9,000
(10,000 pounds*$.90 per pound)
Dr Materials Price Variance $300
($9,300-$9,000)
Cr Accounts Payable $9,300
(To record purchase)
In a responsibility accounting system: Question 6 options: A. Each accounting report contains only (or clearly segregates) those items that are controllable by the responsible manager. B. Each accounting report contains all items allocated to a responsibility center. C. Organized and clear lines of authority and responsibility are only incidental. D. All managers at a given level have equal authority and responsibility. E. All of the above.
Answer:
A. Each accounting report contains only (or clearly segregates) those items that are controllable by the responsible manager.
Explanation:
A responsibility center is a business entity given a specific goals and objectives, procedures and policies, as well as dedicated personnel for generating financial reports in a company.
Consumers buy goods or services they want or need.
True
False
Answer:
True
Explanation:
A very large company would be most likely to have a(n) ___ at the ahead of its accounting department.
A. Executive vice president
B. Controller
C. Chief financial officer
D. Accounting manager
A very large company would be most likely to have a Chief financial officer as the head of its accounting department.
The Chief Financial Officer (CFO) would most likely be in charge of the accounting division of a very large corporation. A company's Chief Financial Officer (CFO) is in charge of all financial operations, including accounting, budgeting, financial reporting, and forecasting. The day-to-day accounting activities of a corporation are managed by the controller, who holds a mid-level role. The basic duties of the accounting manager include leading a group of accountants and supervising the creation of financial statements and reports. Even though the executive vice president may be in charge of the entire organization, they could not have specific knowledge of accounting and finance.
A Chief Financial Officer (CFO) is a senior executive accountable for directing the financial actions of a firm. Monitoring cash flow, assessing the firm's financial advantages and disadvantages, and creating strategies for financial expansion are all tasks assigned to the CFO. Also, they are in charge of supervising the creation of predictions and current financial reports. In conclusion, the CFO is essential to the efficient management of a company's finances.
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The price of the stock at the beginning of 2018 was $56.81 and you sold the stock at $68.14 at the end of the year. What is the dividend yield (use your answer from 3a above), capital gain(loss), and total percentage return
Question Completion:
The total dividends paid is $1,743,400 and the outstanding shares are 1,300,000.
Answer:
a. The dividend per share = $1.34
b. The dividend yield = 1.97%
c. The capital gain = $11.33
d. The total percentage return = 22.3%.
Explanation:
a) Data and Calculations:
Dividends paid = $1,743,400
Outstanding shares = 1,300,000
Dividends per share = $1.34 ($1,743,400/1,300,000)
Dividend yield = Dividend per share/Stock price
= $1.34/$68.14 = 1.97%
Capital gain = $11.33 ($68.14 - $56.81)
Total return = $12.67 ($11.33 + $1.34)
Total percentage return = Total return/Beginning Stock Price * 100
= $12.67/$56.81 * 100
= 22.3%
Consider a stock with current year dividend equal to $2.00 per share. You believe the dividend will grow 15% per year for 10 years and 4% per year thereafter.The required equity rate of return (and your hurdle rate) is 10%. What is the fair price of the stock? Assuming the market price of the stock is $70, what is the expected return?
Answer:
a. Fair price of the stock = $79.82
b. The expected return is 7.29%
Explanation:
a. What is the fair price of the stock?
Note: See the attached file for the calculation of present values (PV) of dividends for year 1 to 10.
From the attached excel file, we have:
Previous year dividend in year 1 = Current year dividend = $2
Total of dividends from year 1 to year 10 = $25.74793130208810
Year 10 dividend = $8.09111547141582
Therefore, we have:
Year 11 dividend = Year 10 dividend * (100% + Dividend growth rate in year 11) = $8.09111547141582 * (100% + 4%) = $8.41476009027245
Share price at year 10 = Year 11 dividend / (Required equity rate of return - Perpetual dividend growth rate) = $8.41476009027245 / (10% - 4%) = $140.246001504541
PV of share price at year 10 = Price at year 10 / (100% + required equity rate of return)^Number of years = $140.246001504541 / (100% + 10%)^10 = $54.0709047493998
Therefore, we have:
Fair price of the stock = Total of dividends from year 1 to year 10 + PV of share price at year 10 = $25.74793130208810 + $54.0709047493998 = $79.82
b. Assuming the market price of the stock is $70, what is the expected return?
This can be calculated using the dividend discount model formula as follows:
P = D1 / (r - g) ............................ (1)
Where,
P = Market price of the stock = $70
D1 = Next dividend = Current dividend * (100% + Dividend growth rate in perpetuity) = $2 * (100% + 4%) = $2.30
r = Expected return = ?
g = Dividend growth rate in perpetuity = 4%, or 0.04
Substituting the values into equation (1) and solve for r, we have:
70 = 2.30 / (r - 0.04)
70(r - 0.04) = 2.30
70r - 2.80 = 2.30
70r = 2.30 + 2.80
70r = 5.10
r = 5.10 / 70
r = 0.0729, or 7.29%
Therefore, the expected return is 7.29%.
what is the difference between quantity demand and quantity supply.
Answer:
The distinction between supply and quantity supplied is similar to the difference between demand and quantity demanded. If the market price of a product increases, then the quantity supplied increases, and vice versa.
Explanation:
.....
In response to dwindling sales of organic meats, Hain Celestial executives decided to promote the sale of organically grown nuts as an alternative source of protein, which is an excellent example of a firm's:
Answer:
Product substitute
Explanation:
Product substitute is defined as one that meets similar needs of the consumer. As demand for one of such goods rises the demand of the other tends to fall as the meet similar needs.
In the given scenario organic meats are seen as being substituted by organically grown nuts as a source of protein.
So when Hain Celestial has dwindling sales of organic meats they were considering organically grown nuts as a different product to give to customers
Practice Do It! Review 02 The following information is available for Sunland Company. April 1 April 30 Raw materials inventory $10,000 $13,500 Work in process inventory 5,400 3,710 Materials purchased in April $98,000 Direct labor in April 80,300 Manufacturing overhead in April 156,000 Prepare the cost of goods manufactured schedule for the month of April.
Answer:
Cost of goods manufactured=$332,490
Explanation:
Giving the following information:
April 1 April 30
Raw materials inventory $10,000 $13,500
Work in process inventory 5,400 3,710
Materials purchased in April $98,000
Direct labor in April 80,300
Manufacturing overhead in April 156,000
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= 5,400 + (10,000 + 98,000 - 13,500) + 80,300 + 156,000 - 3,710
cost of goods manufactured=$332,490
Bernie is a former executive who is retired. This year Bernie received $190,000 in pension payments and $15,200 of Social Security payments. What amount must Bernie include in his gross income
Answer:
$202,920
Explanation:
Calculation to determine determine What amount must Bernie include in his gross income
Using this formula
Gross income=Pension payments Received+85% of social security benefits
Let plug in the formula
Gross income=$190,000 + ($15,200 * 85%)
Gross income=$190,000+$12,920
Gross income=$202,920
Therefore The amount that Bernie must include in his gross income is $202,920
The subject of the auditing procedure observing is least likely to be: a. procedures. b. inventory taking. c. personnel d. processes. e. physical assets.
Answer:
e. physical assets.
Explanation:
Audit procedures can be regarded as processes or techniques, or methods that is been followed by auditors in obtaining audit evidence that will give them enablement to make a conclusion as regards to set audit objective so they can express their opinion. audit procedures can as well be called audit programs. It should be noted that The subject of the auditing procedure observing is least likely to be physical assets. physical asset can be regarded as item of economic, even exchange value which has a material existence. They are regarded asPhysical assets tangible assets. Example is
properties, equipment,
Mogul Company ships merchandise to Ski Outfit in a consignment arrangement. The arrangement specifies that Ski Outfit will attempt to sell the merchandise, and in return, Mogul will pay to Ski Outfit a 15% sales commission on any merchandise sold. During the year, Mogul ships inventory with a cost of $100,000 to Ski Outfit. By the end of the year, $76,000 of the merchandise has been sold to customers for a total of $105,800. What amount of inventory will Mogul report at year end
Answer:
$24,000
Explanation:
According to the consignment accounting, it States that any inventory sent on consignment by the consignor to the consignee, belongs to the consignor until the inventory is sold by the consignee.
Regarding the above, Mogu company sent inventory costing $100,000 and out of this, only $76,000 has been sold. The remaining inventory still belongs to the consignor and the amount of this inventory is;
$100,000 - $76,000 = $24,000
Therefore, Mogul would report $24,000 worth of inventories at year end.
spectrum corp desires a 25% target gross profit after covering all product costs: considering the total product costs assigned to the products c and d, what would spectrum have to charge the customer to achieve that gross profit
Answer:
Note: "The full question is attached as picture below"
Required selling price for product = Total product cost / Product cost as a percentage of selling price
Note: When the gross profit rate is 25%, this means that Product cost as a percentage of selling price is 75%
Total cost assigned for product C = $1,396
Total cost assigned for product D = $3,158
What would Oak have to charge the customer to achieve that gross profit?
Charge to the customer for Product C:
= $1,396 / 0.75
= $1861.333333333333
= $1,861.33
Charge to the customer for Product D:
= $3,158 / 0.75
= $4210.666666666667
= $4,210.67
Terps Corp.'s comparative balance sheet at December 31, 2021 and 2020 reported accumulated depreciation balances of $1,245,000 and $900,000, respectively. Property with a cost of $75,000 and a carrying amount of $57,000 was the only property sold in 2021. Depreciation charged to operations in 2021 was
Answer:
See below
Explanation:
Depreciation charged to operations in 2021 is computed as;
=
What would be the maximum an investor should pay for the common stock of a firm that has no growth opportunities but pays a dividend of $1.36 per year? The required rate of return is 12.5 percent.
a. $11.24
b. $9.52
c. $10.88
d. $10.64
e. $11.47
Answer:
$10.88
Explanation:
Calculation to determine What would be the maximum an investor should pay for the common stock of a firm that has no growth opportunities
Using this formula
Maximum payment for common stock=Dividend/Required rate of return
Let plug in the formula
Maximum payment for common stock=$1.36/.125 Maximum payment for common stock= $10.88
Therefore What would be the maximum an investor should pay for the common stock of a firm that has no growth opportunities is $10.88
Japan has been one of China's largest sources of imports, along with South Korea and the United States. Because there is still political enmity between China and Japan due to the Japanese occupation of parts of China during World War II, the best explanation for the present Japanese trade relationship with China is
Answer: c. geographical proximity
Explanation:
The Japanese and the Chinese have not been on the best of terms for centuries and this became worse in the 20th century with Japanese attacks on the Chinese and then after those ended with the second world war, Japan was and still is firmly in the U.S. camp which China does not appreciate.
This hasn't stopped Japan and China from trading however because they are so close to each other and so logistical benefits ensure that they are some of each others' biggest trading partners.
When the general level of prices rises, the economy is experiencing ____.
indirect materials are those used that enter into and become a major part of the finished product true or false
Joint ventures offer low potential for leveraging a firm's existing competencies because they typically entail a short-term relationship between two or more firms.
A. True
B. False
Answer:
B. False
Explanation:
The main purpose of the joint venture is to help two or more companies so that they are in the position to gain the competitive advantage. So the potential for firm leverage that is existed would be high instead of low due to this reason also
So as per the given situation, the option b is correct
Hence, the option a is not correct
There are different types of business. Joint ventures offer low potential for leveraging a firm's existing competencies is a False statement.
A joint venture is known as when two or more businesses gather their resources and expertise together to achieve a set goal.It is also called a partnership between 2 or more firms where there is significant equity stake by the partners and often resulting in the creation of a new business entity.
Joint ventures uses a good amount of equity investment from each partner and can lead to the establishment of a new separate entity.
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Silver Corporation incurred costs of $600,000 for managing the wholesale division during the year. The customer details of the company were as follows: X Y Z Sales $600,000 $400,000 $200,000 COGS $40,000 $20,000 $15,000 How much cost will be allocated to customer Y, if a cause-effect relationship cannot be established with any cost driver
Answer: $200,000
Explanation:
The cost will be allocated to customer Y, if a cause-effect relationship cannot be established with any cost driver will be calculated thus:
Total sales = $600,000 + $400,000 + $200,000 = $1,200,000
The percentage of Y on total sales will be:
= $400,000/$1,200,000 × 100
= 1/3 × 100
= 33.33%
Therefore, the cost that's allocated to Y will then be:
= $600,000 × 33.33%
= $600,000 × 0.3333
= $200,000
Therefore, the correct answer is $200,000