Answer:
e. It effectively separates the back office and the front office so each can focus on their own tasks in order to optimize their departmental performance.
Explanation:
A service system is one that is focused on the growth of technology and information system. It's designed to give services that meet the expectations, needs, and wants of clients. It is apart of service management, sued in service operations, and found in service marketing. It's designed for client contact, capital flows, and the level of customer involvement.Which of the following is NOT a benefit provided by a stakeholder analysis document?
Select an answer:
You will know who the project stakeholders are.
You can prioritize stakeholders so you make sure to keep the most important ones happy.
You will know the best way to communicate project information to the stakeholders.
You will understand the best way to work with different stakeholders to get results.
Answer:
This is not a benefit provided by a stakeholder analysis document:
You can prioritize stakeholders so you make sure to keep the most important ones happy.
Explanation:
A stakeholder analysis document identifies a project's stakeholders, their participation levels, interests, and influences in the project. It determines the best approach to involve, and therefore, communicate with each stakeholder group. The purpose of the document is not to prioritize stakeholders but to identify the groups.
Brief Exercise 162 a-b On January 1, 2020, Borse Company issued bonds with a face value of $800,000. The bonds carry a stated interest of 7% payable each January 1. Prepare the journal entry for the issuance assuming the bonds are issued at 95. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Prepare the journal entry for the issuance assuming the bonds are issued at 105. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
Answer:
1.
January 1, 2020
Cash $760000 Dr
Discount on Bonds Payable $40000 Dr
Bonds Payable $800000 Cr
2.
January 1, 2020
Cash $840000 Dr
Bonds Payable $800000 Cr
Premium on Bonds Payable $40000 Cr
Explanation:
1.
When the bonds are issued at 95, this means that they are being issued at 95% of their face value and the cash received will be 95% of the face value which will be = 800000 * 0.95 = 760000
This means that the bonds are issued at a discount to face value and the entry will be to record the cash received as debit for 760000 and the bonds payable which is a liability as credit of 800000. The difference is the discount on issuance of bonds and will be debited by,
Discount = 800000 - 760000 => $40000.
2.
When the bonds are issued at 105, this means that they are being issued at 105% of their face value and the cash received will be 105% of the face value which will be = 800000 * 1.05 = 840000
This means that the bonds are issued at a premium to the face value and the entry will be to record the cash received as debit for 840000 and the bonds payable which is a liability as credit of 800000. The difference is the premium on issuance of bonds and will be credited by,
Premium = 840000 - 800000 => $40000.
At Beleza Natural, one of the steps of the process is drying and styling, which include having cut and/or colored. 35% of the clients had their hair cut, which took an average of 20 min. Hairdresser spent 10 minutes with the customer while coloring the hair and only 15% of the customers chose to have their hair colored. Drying and styling the hair took 10 min on average and all the customers requested drying and styling. What is the expected activity time for this step of the process in Beleza Natural
Answer:
18.50 minutes
Explanation:
cutting and drying/styling
= 20 + 10 = 30 minutes
percentage = 35%
= 30 * 0.35 = 10.50
coloring and styling/drying
= 10 + 10 = 20 minutes
percentage = 15 percent
0.15 * 20 = 3.00
only dryind and styling
time = 10 minutes
probability = 1 - 0.15+0.35 = 0.50
0.50 * 10 = 5.00
the expected activity time for this process = 10.50 + 5.00 + 3.00
= 18.50
somebody help pls you own a business in your community and you want to convince your community to support the local businesses. Explain five of your roles as an entrepreneur in the social development of the society to convince members of the community to support your business
Answer and Explanation:
Helping local businesses is very important and should be encouraged in all communities, across the country. As a local merchant, you can take steps to help yourself and other local merchants.
Among these attitudes, we can consider:
Design a business that offers differentiated products and services: one of the main threats to local commerce is large corporations. These corporations present products and services with little personality and consideration to the customer. Changing this type of attitude in your trade can help you to be valued.
Provide services and products with high demand in the region: By providing products and services in high demand, you will be able to attract a loyal clientele to your establishment, as you are able to offer exactly what customers want.
Provide competitive prices: Local businesses need to compete with large corporations that generally promote lower prices for their products and services. Providing lower prices can be a challenge for the local merchant, but it is important that he look for strategies to make the price of his products and services competitive, making his establishment a good option for the customer.
Create a support network between local merchants: This allows merchants to unite and refer to each other, as well as allowing them to think together about ways to optimize local trade.
Provide a variety of products and services: This makes your trade richer and more attractive to customers who may have your establishment as a place that will meet their needs.
Lopes Increase the size of store and parking lot Do not increase the size of store and parking lot
Increase the size of store and parking lot Lopes = $1.0 million HomeMax = $1.5 million Lopes = $0.4 million HomeMax = $3.4 million
HomeMax Do not increase the size of store and parking lot Lopes = $3.2 million HomeMax = $0.6 million Lopes = $2.0 million HomeMax = $2.5 million
Suppose the owners of Lopes and HomeMax meet for a friendly game of golf one afternoon and happen to discuss a strategy to optimize growth-related profit. If they both agree to cooperate on a strategy that maximizes their joint profits, annual profit will grow by:______
a. $0.4 million for Lopes and by $3.4 million for HomeMax.
b. $2.0 million for Lopes and by $2.5 million for HomeMax.
c. $1.0 million for Lopes and by $1.5 million for HomeMax.
d. $3.2 million for Lopes and by $0.6 million for HomeMax.
Answer:
c. $1.0 million for Lopes and by $1.5 million for HomeMax.
Explanation:
If Lopes and HomeMax both wants to maximize their profits they should choose a strategy which is beneficial for both of them. If both choose to increase the size of store and parking lot this will bring them maximum returns according to the matrix. They will be Nash equilibrium state which is a stable state.
If the market for quilts is perfectly competitive and other quilt producers face the same cost as Alex then what would you expect to happen to both the number of firms making quilts and the equilibrium price of quilts in the long run
Answer:
Since the firms are currently losing money, some of them will eventually exit the market in the long run. Once the total number of firms decreases, the equilibrium price will shift upwards until it reaches a point where the firms are able to break even. in other words, the firms will make 0 economic profit, but they will not lose money either.
Vernon Boat Company makes inexpensive aluminum fishing boats. Production is seasonal, with considerable activity occurring in the spring and summer. Sales and production tend to decline in the fall and winter months. During year 2, the high point in activity occurred in June when it produced 209 boats at a total cost of $154,800. The low point in production occurred in January when it produced 31 boats at a total cost of $48,000. Required Use the high-low method to estimate the amount of fixed cost incurred each month by Vernon Boat Company. Determine the total estimated cost if 110 boats are made.
Answer:
Total cost= $95,400
Explanation:
First, we need to calculate the unitary and fixed costs using the high-low method:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (154,800 - 48,000) / (209 - 31)
Variable cost per unit= $600
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 154,800 - (600*209)
Fixed costs= $29,400
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 48,000 - (600*31)
Fixed costs= $29,400
Now, the total cost for 110 boats:
Total cost= 29,400 + 110*600
Total cost= $95,400
Early in 2018, Robbinsville Press was organized with authorization to issue 100,000 shares of $100 par value preferred stock and 500,000 shares of $1 par value common stock. Ten thousand shares of the preferred stock were issued at par, and 170,000 shares of common stock were sold for $15 per share. The preferred stock pays an 8 percent cumulative dividend. During the first four years of operations (2018 through 2021), the corporation earned a total of $1,385,000 and paid dividends of 75 cents per share in each year on its outstanding common stock. Required: a. Prepare the stockholders' equity section of the balance sheet at December 31, 2021. b. Are there any dividends in arrears on the company's preferred stock at December 31, 2021
Answer:
Part a
The stockholders' equity section of the balance sheet at December 31, 2021.
Preferred Stock 10,0000 at $100
Common Stock 170,000 at $1
Paid in excess 170,000 at $14
Part b
Dividends in arrears on the company's preferred stock at December 31, 2021
Explanation:
Only issued Share Capital is presented in the stockholders' equity section of the balance sheet.
Bramble Corp. reported the following year-end information: Beginning work in process inventory $1080000 Beginning raw materials inventory 300000 Ending work in process inventory 900000 Ending raw materials inventory 480000 Raw materials purchased 960000 Direct labor 910000 Manufacturing overhead 730000 Bramble Corp.'s cost of goods manufactured for the year is
Answer:
$2,600,000
Explanation:
Cost of goods manufactured
Consider all the manufacturing costs in the calculation to determine the cost of goods manufactured.
Cost of goods manufactured = $1,080,000 + $780,000 + $910,000 + $730,000 - $900,000
= $2,600,000
Notes :
Raw Materials used in Production = $300,000 + $960,000 - $480,000
= $780,000
therefore,
Bramble Corp.'s cost of goods manufactured for the year is $2,600,000.
Mary owns her own business and has just attended a cash flow management seminar where it was suggested the businesses should delay paying their suppliers as long as absolutely possible even if doing so violates the stated payment terms. Mary decides to continue paying her suppliers on time in accordance with their payment terms because Mary would like her customers to pay her on time. Mary has reached her decision in accordance with:_________.
Answer:
Kantian ethics.
Explanation:
Kantian ethics is a deontological moral theory founded on Kant's theory. According to this theory, the right or wrong actions doing does not rely upon the consequences but whether or not they carry out their duty.
In the given case, Mary's decision is in accordance with Kantian ethics as she decides to pay her suppliers on time.
Therefore, Kantian ethics is the correct answer.
The manufacturing division of an electronics company uses activity-based costing. The company has identified three activities and the related cost drivers for indirect production costs:
Activity Cost Driver
Activity 1 Direct materials CostActivity 2 Direct Labor Cost
Activity 3 Kilowatt Hours
Three types of products are produced. Direct costs and cost-driver activity for each product for a month are as follows:
Product A Product B Product C
Direct material cost $75,000 $50,000 $125,000
Direct Labor Cost $6,600 $1,000 $3,000
Direct Labor hours $2,000 $1,000 $2,000
Kilowatt hours $150,000 $200,000 $150,000
Indirect productioncosts for the month are as follows:
Activity 1 $30,000
Activity 2 $20,000
Activity 3 $16,000
Total $66,000
A.) Compute the indirect production costs allocated to each product using the ABC system?
B.) Compute the indirect production costs allocated to each product using a traditional costing system. Assume indirect production costs are allocated to each product using the cost driver: direct labor hours?
A bank offers a corporate client a choice between borrowing cash at 11% per annum and borrowing gold at 2% per annum. (If gold is borrowed, interest must be repaid in gold. Thus, 100 ounces borrowed today would require 102 ounces to be repaid in 1 year.) The risk-free interest rate is 9.25% per annum, and storage costs are 0.5% per annum. Discuss whether the rate of interest on the gold loan is too high or too low in relation to the rate of interest on the cash loan. The interest rates on the two loans are expressed with annual compounding. The risk-free interest rate and storage costs are expressed with continuous compounding.
Answer:
The rate of interest on the gold loan is too high in relation to the rate of interest on the cash loan.
Explanation:
Let first assume that the price of gold is $550 and the amount that the corporate client wants to borrow is $550,000.
This implies there is an option for the client to choose between borrowing $550,000 in cash and borrowing 1,000 ounces of gold.
If $550,000 borrowed in cash, the amount that must be repaid can be calculated as follows:
Amount to repaid if borrowed in cash = Amount of cash borrowed * (100% + Interest rate on cash borrowing)^Number of years = $550,000 * (100% + 11%)^1 = $610,500
If the client borrows 1,000 ounces of gold it must repay 1,020 ounces.
The forward price of gold is calculated as follows:
Forward price of gold = Price of gold * e^(Risk-free interest rate - storage costs) = $550 * e^(9.25% + 0.5%) = $606.33
Cost of repayment of gold loan = Forward price of gold * Ounces of gold to repay = $606.33 * 1,020 = $618,457
Since Amount to repaid if borrowed in cash is less than Cost of repayment of gold loan (i.e. $610,500 < $618,457), this implies that the rate of interest on the gold loan is too high in relation to the rate of interest on the cash loan.
On April 2, Kelvin sold $35500 of inventory items on credit with the terms 1/10, net 30. Payment on $21300 sales was received on April 8 and the remaining payment on $14200 sales was received on April 27. Assuming Kelvin uses the net method of accounting for sales discounts, the entry recorded on April 27 would include:________.
a: debit to Cash and credit to Accounts Receivable for $14058.
b. debit to Cash and credit to Sales Discounts Forfeited for $355.
c. debit to Accounts Receivable and credit to Sales Revenue for $35500.
d. debit to Cash for $14200 and credit to Sales Discounts Forfeited for $142.
Answer:
d. debit to Cash for $14200 and credit to Sales Discounts Forfeited for $142
Explanation:
Based on the information given Assuming Kelvin uses the net method of accounting for sales discounts, the journal entry recorded on April 27 would include:debit to Cash for $14200 and credit to Sales Discounts Forfeited for $142
A..Dr Accounts receivable 142
Cr Sales Discount forfeited 142
(1%*$14200)
B. Dr Cash $14,200
Cr Accounts receivable$14,200
Sound Software estimates that it will sell LaTeX: NN units of a program after spending LaTeX: aa thousands of dollars on advertising, where LaTeX: N\left(a\right)=-a^2+300a+6N ( a ) = − a 2 + 300 a + 6 when LaTeX: 0\le a\le3000 ≤ a ≤ 300. What is the maximum number of units that can be sold and how much need to be spent on advertising in order to achieve this sales goal?
Answer:
Explanation:
From the given information:
N(a) = -a² +300a + 6
Taking the differential of the above equation with respect to "a"
Then;
N'(a) = - 2a + 300
where;
the Critical points N'(a) = 0
-2a + 300 = 0
-2a = -300
a = -300/-2
a = 150
Now;
N(0) = -(0)² +300(0) + 6
N(150) = (-150)² +300(150) + 6 =22506
N(300) = (-300)² +300(300) + 6 = 6
∴
The max. number of the possible unit that can be sold = 22506
The amount spent on advertising to get to this goal = 150 thousand dollars
In March 2010, Hertz Pain Relievers bought a massage machine that provided a return of 8 percent. It was financed by debt costing 7 percent. In August, Mr. Hertz came up with a heating compound that would have a return of 14 percent. The chief financial officer, Mr. Smith, told him it was impractical because it would require the issuance of common stock at a cost of 16 percent to finance the pur-chase. Is the company following a logical approach to using its cost of capital?
Answer: No they are not
Explanation:
When using the Cost of Capital approach, it is best that the company use the Weighted Average Cost of Capital(WACC). This would require considering the various capital sources available to the company and their cost instead of the cost of one capital source.
This is because, the availability of various sources of capital are sometimes contingent on others and this is the underlying principle of WACC. When the cost of this equity to be issued and other sources of capital are weighted, the heating compound might then give a better return than the cost.
Dividends cause a(n) increase/decrease)_________ in equity and are recorded directly in
Answer:
Decrease (debit) in equity, Cash Dividends Payable (credit, liability account)
Explanation:
The journal entry to record the declaration of the cash dividends involves a decrease (debit) to Retained Earnings (a stockholders' equity account) and an increase (credit) to Cash Dividends Payable (a liability account).
(opentextbc.ca)
what is the definition of bond?
Under an installment contract, a buyer can:
a. Reject an installment if the nonconformity substantially impairs the value of the installment without giving the seller an opportunity to cure
b. Hold the seller in breach of the entire installment contract when a nonconforming installment substantially impairs the value of that installment alone.
c. Reject an installment no matter how minor the nonconformance is.
d. None of these answers.
Answer:
b. Hold the seller in breach of the entire installment contract when a nonconforming installment substantially impairs the value of that installment alone.
Explanation:
In installment contract, the seller and the buyer agrees on the ways through which the buyer will pay for the goods which he or she purchases installmentally rather than a one off payment. In a situation where the agreement has been reached, it expected that the buyer and the seller to conform to the said agreement. However,the seller is hold in breach of the entire installment contract if there is impairment of the value of the goods substanstially.
Talamoto Co. manufactures a single product that goes through two processes — mixing and cooking. The following data pertains to the Mixing Department for September.
Work-in-process Inventory Sept. 1 28,000 units
Conversion complete 70%
Work-in-process inventory Sept. 30 16,000 units
Conversion complete 50%
Units started into production in Sept. 72,000
Units completed and transferred out ? units
Costs
Work-in-process inventory Sept.1 $120,000
Material P 110,000
Material Q 165,000
Conversion
Costs added in September
Material P $180,000
Material Q 165,000
Conversion 354,800
Material P is added at the beginning of work in the Mixing Department. Material Q is also added in the Mixing Department, but not until units of product are forty percent completed with regard to conversion. Conversion costs are incurred uniformly during the process.
Total equivalent units for Material P under the weighted-average method are calculated to be:
______________.
A. 100,000 equivalent units.
B. 92,000 equivalent units.
C. 84,000 equivalent units.
D. 72,000 equivalent units.
E. 68,000 equivalent units.
Answer:
A. 100,000 equivalent units
Explanation:
Calculation for what the Total equivalent units for Material P under the weighted-average method are calculated to
First step is to calculate the Unit transferred out
Unit transferred out = 28,000+72,000-16,000
Unit transferred out =84,000
Now let calculate the Total equivalent units for Material P
Total Equivalent unit of material P = 84,000+16,000
Total Equivalent unit of material P = 100,000
Therefore the Total equivalent units for Material P under the weighted-average method are calculated to 100,000 equivalent units
The following data are for Guava Company's retiree health care plan for the current calendar year. Number of employees covered 5 Years employed as of January 1 4 (each) Attribution period 20 years EPBO, January 1 $ 60,000 EPBO, December 31 $ 63,600 Interest rate 6 % Funding and plan assets None What is the correct entry to record postretirement benefit expense for the current year
Answer:
Date Account Title Debit Credit
December 31 Postretirement benefit expense $3,900
APBO $3,900
Explanation:
Service cost = Ending EPBO / Attribution period
= 63,600 / 20
= $3,180
Interest cost = Beginning EPBO * Years employed / Attribution period * Interest rate
= 60,000 * 4/20 * 6%
= $720
Postretirement benefit expense = 3,180 + 720
= $3,900
Credit to Accumulated Postretirement Benefit Obligation (APBO).
You are in charge of purchases at the student-run used-book supply program at your college, and you must decide how many introductory calculus, history, and marketing texts should be purchased from students for resale. Due to budget limitations, you cannot purchase more than 1050 of these textbooks each semester. There are also shelf-space limitations: Calculus texts occupy 2 units of shelf space each, history books 1 unit each, and marketing texts 5 units each, and you can spare at most 1,800 units of shelf space for the texts. If the used book program makes a profit of $10 on each calculus text, $4 on each history text, and $8 on each marketing text, how many of each type of text should you purchase to maximize profit
Answer:
Calculus books 263
History Books 131
Marketing Books 656
Total Profit will be $8,402
Explanation:
There are 3 different types of books which can be purchased from the student run used book program. History book occupies 1 unit, Calculus book occupies 2 units and Marketing text occupies 5 units. There is budget constraint on purchase of books and maximum 1040 can be purchased. Lets formulate an equation for the books to identify the profit.
Constraint equation is :
h + 2c + 5m [tex]\leq[/tex] 1050
Profit equation is :
P = 4h + 10c + 8m
The total ratio is 2 + 5 + 1 = 8
Calculus books : 2 / 8 * 1050 = 263
History Books : 1 / 8 *1050 = 131
Marketing books : 5 / 8 * 1050 = 656
The maximum number of books purchase is inserted into the profit equation to identify maximum profit.
P = 4 * 131 + 10 * 263 + 8 * 656
P = $8,402
Determine whether each of the following goods is a private good, a public good, a common resource, or a club good. Private Good Public Good Common Resource Club Good A stationary bike in a fitness room that is open to the public A large, beautiful statue in a town square A new Ferrari that you use to drive your friends around town
Answer:
COMMON RESOURCE
PUBLIC GOOD
PRIVATE GOOD
Explanation:
Patricia Ness is a lawyer specializing in employment law. Her clients showed her that the right-to-work laws create many problems for unionized workers. Therefore, she has started a petition to change the situation. In addition, she publishes a blog on the topic, and she takes every opportunity to talk publicly about the issue. Her tendency to identify opportunities, show initiative, take action, and persevere is typical of this personality trait.
a. Conscientious Personality
b. Introverted Personality
c. Narcissistic Personality
d. Sell Monitoring Personality
e. Proactive Personality
Answer:
a. Conscientious Personality
Explanation:
Conscientiousness can be regarded as personality trait that involves one to be
careful as well as diligent in performing tasks,/ obligations. This trait make one to be efficient and organized
If you want to give a vendor an incentive to complete work early which type of contract would you use?
Answer:
A fixed price incentive is a type of price that is set based on a reward that will be given only in the case the good or service traded results to be better than expected.Explanation:
ILYScenario: You are a CEO of well-established and profitable software technology firm that has a choice to invest in one of two new software technologies; one that promises modest profit with very little risk and another that may yield a very high profit but at considerable risk. Keeping in mind cultural factors (social values/priorities, politics, economy, technology, regulation, etc.) Answer the following: 1. What would your choice be? 2. Who in your company might support the first technology and who might support the second? 3. Think about individuals from all levels of the company, from the CEO and board members down to R&D personnel. What considerations of your decision need to be made from a societal perspective? 4. Consider individuals outside of the company itself. How might the type of industry affect this type of decision?
Answer:
1. What would your choice be?
My choice would be the little risk, modest profit option, because the company is well-established, and at that point, it is not necessary to take on huge risks.
2. Who in your company might support the first technology and who might support the second?
Younger employees would probably support the second technology, while older, more established and secure employees like senior managers would be more likely to support the first technology.
3. Think about individuals from all levels of the company, from the CEO and board members down to R&D personnel. What considerations of your decision need to be made from a societal perspective?
How the investment decision will affect the different departments of the company, both at the department level, and at the individual level.
4. Consider individuals outside of the company itself. How might the type of industry affect this type of decision?
The type of industry affects the decision greatly because different industries have varying degrees of market risk. This market risk is often measured by a "beta", which is a measure or the deviation of an industry from the average market risk.
Calculate the cash dividends required to be paid for each of the following preferred stock issues: Required: The semiannual dividend on 10% cumulative preferred, $44 par value, 12,900 shares authorized, issued, and outstanding. The annual dividend on $1.75 cumulative preferred, 120,000 shares authorized, 72,000 shares issued, 63,600 shares outstanding. Last year's dividend has not been paid. The quarterly dividend on 12.0% cumulative preferred, $80 stated value, $109 liquidating value, 78,000 shares authorized, 67,600 shares issued and outstanding. No dividends are in arrears.
Answer:
a. The semiannual dividend on 10% cumulative preferred, $44 par value, 12,900 shares authorized, issued, and outstanding.
Figures are annualized:
= 10% * 44 * 12,900
= $56,760
Semi-annual dividends = 56,760 / 2
= $28,380
b. The annual dividend on $1.75 cumulative preferred, 120,000 shares authorized, 72,000 shares issued, 63,600 shares outstanding. Last year's dividend has not been paid.
= Dividend per share * Shares outstanding
= 1.75 * 63,000
= $110,250
Cumulative dividends have to be paid eventually and so accumulate. If dividend was not paid last year, total dividend is:
= 110,250 * 2
= $220,500
c. The quarterly dividend on 12.0% cumulative preferred, $80 stated value, $109 liquidating value, 78,000 shares authorized, 67,600 shares issued and outstanding. No dividends are in arrears.
Dividend = Dividend rate * Stated value * Number of shares outstanding
= 12% * 80 * 67,600
= $648,960
Quarterly dividend = 648,960/4
= $162,240
can I have free account please
Answer:
what kind of account?
i will give you don't worry
Aggregating potential car buyers into groups that have common needs and will respond in the same way to a marketing campaign is a process known as Multiple Choice market positioning. market segmentation. market cataloging. market differentiation. product differentiation.
Answer:
Aggregating potential car buyers into groups that have common needs and will respond in the same way to a marketing campaign is a process known as:
Market segmentation.
Explanation:
Market segmentation is a marketing effort by a business entity to classify its customers into groups according to similar characteristics and based on Demographic, Psychographic, Geographic, and Behavioral segments. Market segmentation helps the entity to identify market opportunities, design products, time marketing efforts, select appropriate media, and efficiently allocate resources to achieve its marketing goals.
se the information below for Harding Company to answer the question that follow. Harding Company Accounts payable $36,681 Accounts receivable 60,524 Accrued liabilities 6,727 Cash 24,556 Intangible assets 40,334 Inventory 71,626 Long-term investments 90,463 Long-term liabilities 79,713 Marketable securities 32,237 Notes payable (short-term) 25,302 Property, plant, and equipment 627,557 Prepaid expenses 2,404 Based on the data for Harding Company, what is the amount of quick assets
Answer:
See below
Explanation:
With regards to the above,
Computation of quick assets is shown below
Quick assets = Account receivable + cash + marketable securities
= $60,524 + $24,556 + $32,237
= $117,317
An unlevered firm has a cost of capital of 16.7 percent and earnings before interest and taxes of $489,602. A levered firm with the same operations and assets has face value of debt of $650,000 with a coupon rate of 7.5 percent that sells at par. The applicable tax rate is 35 percent. What is the value of the levered firm
Answer:
$2,133,136.53
Explanation:
Calculation for value of the levered firm
First step is to calculate the VU
VU= [$489,602 × (1 - .35)] / .167
VU= $1,905,636.53
Now let calculate the value of the levered firm
VL= $1,905,636.53 + .35($650,000)
VL= $2,133,136.53
Therefore the value of the levered firm is $2,133,136.53