Answer:
4, 1, 2,
Explanation:
Here are the projects and their returns
Project Return (%)
1 14
2 12
3 10
4 15
5 12
the firm should choose the project with the highest returns
Projects are mutually exclusive if the projects cannot occur at the same time. If one project is chosen, the others cannot be chosen.
Project 3,4,5 are mutually exclusive. If one of the projects are chosen, other projects cannot be chosen.
Project 4 has the highest return, so it would be chosen first.
the next project with the next highest return is project 1 and then project 2
Flax Co. acquired 80% percent of the voting common stock of Levinson Corp. on January 1, 2021. During the year, Flax made sales of inventory to Levinson. The inventory cost Flax $275,000 and was sold to Levinson for $420,000. Levinson held $84,000 of the goods in its inventory at the end of the year. The amount of intra-entity gross profit for which recognition is deferred, and should therefore be eliminated in the consolidation process at the end of 2021, is: Multiple Choice $23,200. $67,200. $145,000. $116,000. $29,000.
Answer:
$29,000
Explanation:
Calculation to determine what The amount of intra-entity gross profit for which recognition is deferred, and should therefore be eliminated in the consolidation process at the end of 2021, is:
Intra-Entity Gross Profit= ($84,000 ÷ $420,000) *20%
Intra-Entity Gross Profit= ($84,000 ÷ $420,000) *20%
Intra-Entity Gross Profit = $29,000
Advanced Company reports the following information for the current year. All beginning inventory amounts equaled $0 this year.
Units produced this year 35,000 units
Units sold this year 21,000 units
Direct materials $19 per unit
Direct labor $21 per unit
Variable overhead $3 per unit
Fixed overhead $175,000 in total
Given Advanced Company's data, and the knowledge that the product is sold for $71 per unit and operating expenses are $300,000. Compute the net income under absorption costing.
Answer:
$183,000
Explanation:
Advanced Company
Income Statement for the year - absorption costing
Sales ($71 x 21,000 units) $1,491,000
Less Cost of Sales ($1,008,000)
Gross Profit $483,000
Less Expenses
Operating expenses ($300,000)
Net Income $183,000
where,
Cost of Sales = Units Sold x Product Cost
= 21,000 x $48
= $1,008,000
Product Cost = all manufacturing costs (absorption costing)
= $19 + $21 + $3 + ($175,000 ÷ 35,000)
= $48
Based on the above financial statements, calculate the following ratios for 2021: income statement Sales 480,000 cost of goods sold 243,200 salaries expense 55,200 depreciation expense 24,000 interest expense 4,500 rent expense 36,000 gain on equipment 0 loss on equipment disposal 1,400 364,300 net income 115,700 Statement of Retained Earnings Beginning Balance - Retained Earnings $ 36,300 Plus - Net Income 115,700 Less - Dividends (18,000) Ending Balance - Retained Earnings $ 134,000 Balance sheets 2020 2021 change Assets: Cash 27,500 72,600 45,100 Accounts Receivable 32,600 47,600 15,000 Inventory 48,000 54,800 6,800 prepaid expenses 7,200 5,200 (2,000) Equipment 56,000 77,000 21,000 Accum. Depr - Equipment (26,500) (32,500) (6,000) total assets 144,800 224,700 Liabilities: Accounts Payable 12,700 25,700 13,000 accrued Liabilities 3,800 5,000 1,200 Bonds Payable 72,000 40,000 (32,000) total liabilities 88,500 70,700 shareholders Equity: Common Stock 20,000 20,000 0 Retained Earnings 36,300 134,000 97,700 total equity 56,300 154,000 total liabilities and shareholder equity 144,800 224,700 A. Current Ratio B. Gross Profit Percentage C. Debt Ratio D. Debt to Equity Ratio
Answer:
A. Current Ratio = 5.87
B. Gross Profit Percentage = 49.33%
C. Debt Ratio = 0.31
D. Debt to Equity Ratio = 0.46
Explanation:
The ratios can be calculated for 2021 as follows:
A. Current Ratio
Current ratio = Current assets / Current liabilities ………………… (1)
Where:
Current assets = Current assets in 2021 = Cash in 2021 + Accounts Receivable in 2021 + Inventory in 2021 + Prepaid expenses in 2021 = $72,600 + $47,600 + 54,800 + $5,200 = $180,200
Current liabilities = Current liabilities in 2021 = Accounts Payable in 2021 + accrued Liabilities in 2021 = $25,700 + $5,000 = $30,700
Substituting the values into equation (1), we have:
Current ratio = 180,200 / 30,700 = 5.87
B. Gross Profit Percentage
Gross Profit Percentage = (Gross profit / Sales) * 100 ………………….. (2)
Where:
Gross profit = Sales – Cost of goods sold = $480,000 - $243,200 = $236,800
Sales = $480,000
Substituting the values into equation (2), we have:
Gross Profit Percentage = ($236,800 / $480,000) * 100 = 49.33%
C. Debt Ratio
Debt ratio = Total debts / Total assets …………………………….. (3)
Where:
Total debts = Total liabilities in 2021 = $70,700
Total assets = total assets in 2021 = $224,700
Substituting the values into equation (3), we have:
Debt ratio = $70,700 / $224,700 = 0.31
D. Debt to Equity Ratio
Debt to Equity Ratio = Total debts / Total equity …………………………….. (4)
Total debts = Total liabilities in 2021 = $70,700
Total equity = total equity in 2021 = $154,000
Substituting the values into equation (4), we have:
Debt to Equity Ratio = $70,700 / $154,000 = 0.46
You would like to combine a risky stock with a beta of 1.68 with a treasury bill in a way that the risk level of the portfolio is equivalent to the risk level of the market. What weight of the portfolio should be invested in the Treasury Bill?
Answer:
0.60 or 60%
Explanation:
Calculation of weight of the portfolio
Assume that the weight is x
x*[Beta of stock) + (1+x)*(Beta of Tbills) = 1
x * (1.68) + (1-x)*(0) = 1
1.68x + (1-x)*0 = 1
1.68x + 0 = 1
x = [1/1.68]
x = 0.5952
x = 0.60 or 60%
So, the weight of the portfolio that should be invested in the Treasury Bill is 0.60 or 60%.
An early frost destroys 20% of the coffee bean crop. If the supply and demand for coffee beans are both relatively inelastic, and the frost does not impact the quality of the coffee beans that make it to market.
Required:
What will most likely occur to the equilibrium price and quantity of coffee beans?
Answer:
Option C, Price will increase, quantity will decrease
Explanation:
The options for the given question are
(A) Price and quantity will both increase
(B) Price and quantity will both decrease
(C) Price will increase, quantity will decrease
(D) Price will decrease, quantity will increase
(E) Price will not change, quantity will decrease
Solution
Inelastic demand of a product means that the price (high or low) of the product does not affect the demand.
Since the frost destroys the crop, then there are probabilities of variation in the price of coffee (price will rise). Price will be increased to fetch the loss because of frost.
Price will increase and quantity will decrease.
Hence, option C is correct
Jones Company developed the following static budget at the beginning of the company's accounting period: Revenue (8,000 units) $ 16,000 Variable costs 4,000 Contribution margin $ 12,000 Fixed costs 4,000 Net income $ 8,000 If actual production totals 8,200 units, the flexible budget would show total costs of:
Answer:
the total cost in the flexible budget is $8,100
Explanation:
The computation of the total cost in the flexible budget is shown below;
Variable cost per unit is
= $4000 ÷ 8,000 units
= 0.50 per unit
The total cost for the flexible budget is
= Variable costs+ fixed costs
= 0.5 × 8,200 units + $4,000
= $4,100 + $4,000
= $8,100
Hence, the total cost in the flexible budget is $8,100
PRODUCT MIX DECISION, SINGLE CONSTRAINT
Sealing Company manufactures three types of DVD storage units. Each of the three types requires the use of a special machine that has a total operating capacity of 15,000 hours per year. Information on the three types of storage units is as follows:
Basic Standard Deluxe
Selling price $9.00 $30.00 $35.00
Variable cost $6.00 $20.00 $10.00
Machine hours required 0.10 0.50 0.75
Sealing Company's marketing director has assessed demand for the three types of storage units and believes that the firm can sell as many units as it can produce.
Required:
1. How many of each type of unit should be produced and sold to maximize the company's contribution margin? What is the total contribution margin for your selection?
2. Now suppose that Sealing Company believes that it can sell no more than 12,000 of the deluxe model but up to 50,000 each of the basic and standard models at the selling prices estimated. What product mix would you recommend, and what would be the total contribution margin?
Answer:
1.. Unit produce 20,000 deluxe units per year
Units sold $33.33
Total contribution margin $500,000
2. Basic 50,000 units
Standard 2,000 units
Deluxe 12,000 units
$470,000
Explanation:
1. Calculation to determine How many of each type of unit should be produced and sold to maximize the company's contribution margin? What is the total contribution margin for your selection?
BASIC STANDARD DELUXE
Price $9 $30 $35
Less Variable cost 6 20 10
=Contribution margin (A) 3 10 25
Machine hours (B) 0.1 0.5 0.75
Contribution margin per
machine hours (A/B) $30 $20 $33.33
Unit produce=(15,000/0.75)
Unit produce=20,000 deluxe units per year.
In order to maximize the company's contribution margin the company should sell deluxe unit with contribution margin of the amount of $ 33.33 per machine hour
Total contribution margin= 20,000 units,*$25
Total contribution margin= $500,000.
Therefore The amount of unit that should be produced is 20,000 units and $33.33 will be sold to maximize the company's contribution margin while the the total contribution margin for your selection is $500,000
2. Calculation to determine product mix would you recommend, and what would be the total contribution margin
The product mix to recommend will be:
Basic 50,000 units
Standard 2,000 units
Deluxe 12,000 units
Calculation to determine Total contribution margin
Total contribution margin= ($3 × 50,000) + ($25 × 12,000) + ($10 × 2,000)
Total contribution margin=$150,000+$300,000+$20,000
Total contribution margin = $470,000
Therefore Total contribution margin is$470,000
Several years ago, Nipher paid $70,000 to purchase equipment to use in its business. This year, it sold the equipment for $76,500. Accumulated MACRS depreciation through date of sale was $18,000. Determine the amount and character of Nipher's gain recognized. Group of answer choices $18,000 ordinary gain and $6,500 Section 1231 gain $24,500 Section 1231 gain $18,000 ordinary gain and $6,500 capital gain $24,500 ordinary gain
Answer:
$18,000 ordinary gain and $6,500 Section 1231 gain
Explanation:
Calculation to Determine the amount and character of Nipher's gain recognized.
Based on the information given we were told that the Accumulated MACRS depreciation was the amount of $18,000 which means that the ORDINARY INCOME will be $18,000 as well as $6,500 SECTION 1231 GAIN Calculated as:
Gain= Fair Value of Equipment -Book value of Equipment
Gain=$76,500-$70,000
Gain=$6,500
Therefore the amount and character of Nipher's gain recognized will be $18,000 ordinary gain and $6,500 Section 1231 gain
Holbrook, a calendar year S corporation, distributes $89,500 cash to its only shareholder, Cody, on December 31. Cody's basis in his stock is $107,400, Holbrook's AAA balance is $40,275, and Holbrook has $13,425 AEP before the distribution. According to the distribution ordering rules, complete the chart below to indicate how much of the $89,500 is from AAA and AEP as well as how Cody's stock basis is affected. If an amount is zero, enter "0".
Distribution from Account Affect on Stock Basis Balance after Distribution
From AAA Account $8000 $8000 $0
From AEP Account $2500 $0 $0
From Cody's stock basis $ $ $
Answer:
Explanation:
........................
All of the following are weaknesses of the payback period: _________
a. it uses cash flows, not income,
b. it is easy to use.
c. it ignores all cash flows after the payback period.
d. it ignores the time value of money.
Answer:
c. it ignores all cash flows after the payback period.
d. it ignores the time value of money.
Explanation:
As the name suggest, the payback period is the period that shows the time period in which the investment money could be paid back
Like we can take an example
Year 0 -$50,000
Year 1 $10,000
Year 2 $10,000
Year 3 $10,000
Year 4 $10,000
Year 5 $10,000
In this, the $50,000 would be paid back in 5 years
Now the weakness is this that it would ignored the cash flows and the times value of money
Juno Markets is offering 900 shares in a Dutch auction IPO. The following bids have been received: How much will Bidder B have to spend to purchase all of the shares that have been allocated to him
Answer:
$4,320.00
Explanation:
Calculation to determine How much will Bidder B have to spend to purchase all of the shares that have been allocated to him
Bidder B Cost = 300 *[900/(100 + 300 + 400+200)] *$16
Bidder B Cost = 300*[900/1,000)*$16
Bidder B Cost = 300*0.9*$16
Bidder B Cost = $4,320.00
Therefore The amount that Bidder B will have to spend to purchase all of the shares that have been allocated to him is $4,320.00
TB MC Qu. 10-144 (Algo) Doogan Corporation makes a product ... Doogan Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 2.0 grams $ 7.00 per gram Direct labor 0.8 hours $ 16.00 per hour Variable overhead 0.8 hours $ 4.00 per hour The company produced 4,400 units in January using 10,140 grams of direct material and 2,120 direct labor-hours. During the month, the company purchased 10,710 grams of the direct material at $7.40 per gram. The actual direct labor rate was $16.95 per hour and the actual variable overhead rate was $3.70 per hour. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for January is:
Answer:
Material quantity variance = $9,380 adverse
Explanation:
A material usage variance occurs when the standard quantity required to active a particular level of production is higher or lower than than the actual actual quantity used. A favorable variance would mean than less quantity of materials were used than the standard to achieve a given output level. And an adverse variance would mean the opposite
We can calculate it as follows:
grams
4,400 units should have used (4,400× 2 grams) 8,800
but did use 10,140
1,340 adverse
standard price per g × $7______
Material quantity variance $ 9,380 adverse
Material quantity variance = $9,380 Adverse
Harrods PLC has a market value of £136 million and 4 million shares outstanding. Selfridge Department Store has a market value of £38 million and 2 million shares outstanding. Harrods is contemplating acquiring Selfridge. Harrods’s CFO concludes that the combined firm with synergy will be worth £194 million, and Selfridge can be acquired at a premium of £10 million. a. If Harrods offers 1.2 million shares of its stock in exchange for the 2 million shares of Selfridge, what will the stock price of Harrods be after the acquisition?
Answer:
the stock price after the acquisition is $37.30
Explanation:
The computation of the stock price after the acquisition is given below:
= Worth of combined synergy ÷ (outstanding shares = harrods shares)
= £194 million ÷ (4 million + 1.2 million)
= £194 million ÷ 5.2 million shares
= $37.30 per share
hence, the stock price after the acquisition is $37.30
We simply applied the above formula so that the correct answer could come
Seidman Company manufactures and sells 20,000 units of product X per month. Each unit of product X sells for $17 and has a contribution margin of $8. If product X is discontinued, $45,000 in fixed monthly overhead costs would be eliminated and there would be no effect on the sales volume of Seidman Company's other products. If product X is discontinued, Seidman Company's monthly income before taxes should:
Answer:
Effect on income= $115,000 decrease
Explanation:
Giving the following information:
Fixed costs= $45,000
Number of units= 20,000
Unitary contribution margin= $8
To calculate the effect on income, we need to use the following formula:
Effect on income= decrease in fixed costs - decrease in contribution margin
Effect on income= 45,000 - 20,000*8
Effect on income= $115,000 decrease
The marketing concept emphasizes satisfying customer needs and wants. How does marketing satisfy your needs as a college student? Are certain aspects of your life influenced more heavily by marketing than others? Provide examples
Answer:
JAGAJABAAJAKABAGAHAJABSBS
Consider the following information for Watson Power Co.: Debt: 3,500 7 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 102 percent of par; the bonds make semiannual payments. Common stock: 84,000 shares outstanding, selling for $59 per share; the beta is 1.06. Preferred stock: 10,000 shares of 6 percent preferred stock outstanding, currently selling for $104 per share. Market: 8.5 percent market risk premium and 5.5 percent risk-free rate. Assume the company's tax rate is 35 percent. Find the WACC.
Answer:
9. 82 %
Explanation:
WACC = Cost of equity x Weight of equity + Cost of Preferred Stock x Weight of Preferred Stock + Cost of Debt x Weight of Debt.
Remember to always use the After tax cost of debt :
Cost of Debt :
PV = - $1,020
FV = $1,000
N = 20 x 2 = 40
P/YR = 2
PMT = ($1,000 x 7 %) ÷ 2 = $35
I/YR = ???
The Cost (I/YR) is calculated as 6.82 %. The After tax cost of debt is 4.433 %.
Cost of Equity :
Cost of Equity = Return from risk free security + beta x market premium'
= 5.5 % + 1.06 x 8.5 %
= 14.51 %
Cost of Preferred Stock :
Cost of Preferred Stock = 6 %
therefore,
WACC = 14.51 % x 51.8 % + 6 % x 10.87 %+ 4.433 % x 37.3 %
= 9. 82 %
Which statements describe options for exporting query data? Select all that apply.
Copy a database object and paste it into a new program.
Save the entire database as a spreadsheet.
Save a single database object in a new file type, such as .csv.
Copy the entire database and paste it into a new program.
DONE
Answer:
1)Copy a database object and paste it into a new program
3) Save a single database object in a new file type, such as .csv
Explanation:
Would you rather be able to scream as loud as you want in your house without getting in trouble or would you rather be able to break stuff in anger without getting punished?
I would pick scream as loud as I want in my house without getting punished because I never get to scream.
On January 1, 2020, UML Inc. began construction of an automated cattle feeder system. The system was finished and ready for use on December 31, 2021. Expenditures on the project were as follows: January 1, 2020 $ 500,000 July 1, 2020 $ 300,000 December 1, 2020 $ 600,000 March 31, 2021 $ 300,000 September 30, 2021 $ 200,000 UML borrowed $600,000 on a construction loan at 8% interest on January 1, 2020. This loan was outstanding throughout the construction period. The company had $2,000,000 in 5% bonds payable outstanding in 2020 and 2021. UML used the specific interest method. Interest capitalized for 2020 was: Multiple Choice $53,000. $56,000. $70,000. $112,000.
Answer:
UML Inc.
The interest capitalized for 2020 was:
= $70,000
Explanation:
a) Data and Calculations:
Date Amount Weight Weighted Average
January 1, 2020 $ 500,000 24/24 $500,000
July 1, 2020 $ 300,000 18/24 225,000
December 1, 2020 $ 600,000 13/24 325,000 $1,050,000
March 31, 2021 $ 300,000 9/24 112,500
September 30, 2021 $ 200,000 3/24 25,000
Total accumulated weighted-average expenditure for 2020 = $1,050,000
Interest capitalized
Construction loan = $600,000 * 8% = $48,000
Part from the bond= $450,000 * 5% = 22,500
= $70,500
Chamberlain Enterprises, Inc. reported the following receivables in its December 31, 2020, year-end balance sheet:
Current assets:
Accounts receivable, net of $24,000 in allowance for
uncollectible accounts $218,000
Interest receivable 6,800
Notes receivable 260,000
Additional information:
1. The notes receivable account consists of two notes, a $120,000 note and a $200,000 note. The $120,000 note is dated October 31, 2020, with principal and interest payable on October 31, 2021. The $200,000 note is dated March 31, 2020, with principal and 8% interest payable on March 31, 2021.
2. During 2021, sales revenue totaled $2,020,000, $1,880,000 cash was collected from customers, and $31,000 in accounts receivable were written off. All sales are made on a credit basis. Bad debt expense is recorded at year-end by adjusting the allowance account to an amount equal to 10% of year-end gross accounts receivable.
3. On March 31, 2021, the $200,000 note receivable was discounted at the Bank of Commerce. The bank’s discount rate is 8%. Chamberlain accounts for the discounting as a sale.
Required:
1. In addition to sales revenue, what revenue and expense amounts related to receivables will appear in Chamberlain’s 2021 income statement?
2. What amounts will appear in the 2021 year-end balance sheet for accounts receivable?
3. Calculate the receivables turnover ratio for 2021.
Answer:
Chamberlain Enterprises, Inc.
1. In addition to sales revenue, the revenue and expense amounts related to the receivables that will appear in Chamberlain’s 2021 income statement
Bad debts expense $39,700
Interest revenue on the $200,000 notes $4,000
Bank Finance Fee $16,000
2. The amounts that will appear in the 2021 year-end Balance Sheet for accounts receivable (net) is:
Accounts receivable $327,000
Allowance for uncollectible -32,700
Net accounts receivable $294,300
3. The receivables turnover ratio for 2021:
= 5.2 times
Explanation:
a) Data and Calculations:
December 31, 2020
Current assets:
Accounts receivable, net of $24,000 in allowance for
uncollectible accounts $218,000
Interest receivable 6,800
Notes receivable 260,000
Total receivables $484,800
Notes receivable:
October 31, Note = $60,000 payable on October 31, 2021
March 31, 2020 Note = $200,000 payable on March 31, 2021
T-accounts:
Accounts receivable
Date Account Titles Debit Credit
12/31/20 Beginning balance $218,000
12/31/21 Sales revenue 2,020,000
12/31/21 Cash $1,880,000
12/31/21 Allowance for uncollectibles 31,000
12/31/21 Ending balance 327,000
Interest receivable
Date Account Titles Debit Credit
12/31/20 Beginning balance $6,800
Notes receivable
Date Account Titles Debit Credit
12/31/20 Beginning balance $260,000
Allowance for uncollectible accounts
Date Account Titles Debit Credit
12/31/20 Beginning balance $24,000
12/31/21 Accounts receivable $31,000
12/31/21 Bad debts expense 39,700
12/31/21 Ending balance 32,700
Interest on $200,000 notes receivable at 8%:
= $16,000 per year
= $1,333 monthly
Interest due on the $200,000 note, for January 1, 2021 to March 31, 2021 = $4,000
Transactions Analysis:
Accounts receivable $2,020,000 Sales Revenue $2,020,000
Cash $1,880,000 Accounts receivable $1,880,000
Allowance for Uncollectible Accounts $31,000 Accounts receivable $31,000
Bad debts expense $39,700 Allowance for Uncollectible Accounts $39,700
Bank Finance Fee $16,000 ($200,000 * 8%)
Receivables in 2020 = $484,800
Receivables in 2021 = 294,300
Total receivables = $779,100
Average receivables = $389,550 ($779,100/2)
Credit Sales/Average receivable
= $2,020,000/$389,550
= 5.2 times.
Janice is the sole owner of Catbird Company. In the current year, Catbird had operating income of $100,000, a long-term capital gain of $15,000, and a charitable contribution of $5,000. Janice withdrew $70,000 of profit from Catbird. How should Janice report this information on her individual tax return if Catbird Company is: An LLC? An S corporation? A C corporation?
Answer:
A. LLC
Operating income $100,000
Long-term Capital Gain $15,000
Charitable contribution $5,000
No Effect $70,000
b. S corporation
Operating income $100,000
Long-term Capital Gain $15,000
Charitable contribution $5,000
No Effect $70,000
C. C corporation
Taxable income $110,000
Dividend income $70,000
Explanation:
a. An LLC
Based on the information given She will report the OPERATING INCOME of the amount of $100,000 Schedule C.
LONG-TERM CAPITAL GAIN Schedule D of the amount of $15,000.
Thirdly in a situation where she itemizes, the amount of $5,000 which represent charitable contribution (Schedule A) will be on her tax return
Lastly the amount of $70,000 which represent the amount withdrew from profit would have no effect on her individual tax return.
b. S corporation
Based on the information given she will report the OPERATING INCOME of the amount of $100,000 Schedule E.
LONG-TERM CAPITAL GAIN Schedule D of the amount of $15,000.
Thirdly in a situation where she itemizes, the amount of $5,000 which represent CHARITABLE CONTRIBUTION (Schedule A) will be on her tax return
Lastly the amount of $70,000 which represent the amount withdrew from profit would have no effect on her individual tax return.
c. C corporation
Based on the information given the TAXABLE INCOME of the amount of $110,000 calculated as ($100,000+$15,000-$5,000) will be reported by Catbird Company on FORM 1120 while Janice on the other hand will have to report DIVIDEND INCOME Schedule B of the amount of $70,000 on her tax return.
With regard to social welfare, oligopolists forming a cooperative alliance is Group of answer choices good because it leads to less disagreement and lower prices and more variety. good because forming a cooperative alliance closely resembles a perfectly competitive outcome. bad because prices will then be too high and output will be too low. bad because output will then be too high and prices will be too high. Flag question: Question 11
"Bennett Co. has a potential new project that is expected to generate annual revenues of $247,700, with variable costs of $137,600, and fixed costs of $56,500. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $16,500. The annual depreciation is $22,000 and the tax rate is 40 percent. What is the annual operating cash flow?"
Answer:
$40,960
Explanation:
The computation of the operating cash flow is shown below;
As we know that
Annual Operating Cash Flow is
= EBIT × (1 - Tax Rate) + Depreciation Expenses
Here,
Earnings Before Interest & Tax [EBIT] = Revenues - Variable Cost - Fixed Costs - Depreciation Expenses
= $247,700 - $137,600 - $56,500 - $22,000
= $31,600
Now
Annual Operating Cash Flow = EBIT × (1 - Tax Rate) + Depreciation Expenses
= $31,600 × (1 - 0.40) + $22,000
= [$31,600 × 0.60] + $22,000
= $18,960 + 22,000
= $40,960
What is one of the best known functions of The Consumer Product Safety Commission?
O product recalls
O identity theft damage repair
O food safety
Ofree credit reports
Answer:
product recalls
Explanation:
Note, the Consumer Product Safety Commission is an agency that is concerned with consumer product safety in general regardless of whether they are food-related products or not.
Hence, this agency among its stated primary objectives on its official website includes carrying out product recalls where necessary.
When a partnership is formed, assets contributed by the partners should be recorded on the partnership books at their: Group of answer choices fair market value at the time of the contribution. assessed values for property tax purposes. original costs to the partner contributing them. book values on the partners' books prior to their being contributed to the partnership.
Answer:
When a partnership is formed, assets contributed by the partners should be recorded on the partnership books at their:
fair market value at the time of the contribution.
Explanation:
This fair market value of the assets contributed by each partner provides the best measurement value at which assets contributed in a partnership should be recorded. The asset class is debited while the partner's capital account is credited with this fair market value and not the book or cost value.
On January 1, 2021, Nana Company paid $100,000 for 8,000 shares of Papa Company common stock, which represents 10% ownership. Papa reported net income of $52,000 for the year ended December 31, 2021. The fair value of the Papa stock on that date was $45 per share. What amount will be reported in the balance sheet of Nana Company for the investment in Papa at December 31, 2021
Answer:
$360,000
Explanation:
According to the scenario, computation of given data are as follows,
Nana company bought shares = 8,000
Fair value of share = $45 per share
So, we can calculate the amount to be reported in balance sheet by using following formula,
Amount to be reported in balance sheet = Number of shares bought × Fair value per share
= 8,000 × $45
= $360,000
Roxy Inc. issues a $1,500,000, 10%, 10-year mortgage note on December 31, 2018, to obtain financing for a new building. The terms provide for annual installment payments of $244,118. Prepare the entry to record the mortgage loan on December 31, 2018, and the first installment payment on December 31, 2019.
Answer:
See the journal entries below.
Explanation:
The journal entries will look as follows:
Date Particulars Debit ($) Credit ($)
31 Dec 2018 Cash 1,500,000
Mortgage payable 1,500,000
(To record $1,500,000, 10%, 10-year mortgage note issued.)
31 Dec 2018 Mortgage payable (w.2) 94,118
Interest exp. on Mortgage (w.1) 150,000
Cash 244,118
(To record first installment payment on mortgage note.)
Workings:
w.1. Interest expense on Mortgage = Mortgage payable * Interest rate = $1,500,000 * 10% = $150,000
w.2. Mortgage note principal repaid = Annual installment payment - w.1 = $244,118 - $150,000 = $94,118
Which of these is an example of self employment
Answer:
Which of what?
Explanation:
Batteries, Offshore Wind Lead Clean Energy Cost Cuts As Renewables by Mike Scott Batteries, Offshore Wind Lead Clean Energy Cost Cuts As Renewables Continue To Undercut Coal And Gas Batteries can store energy from solar or wind farms for use when the wind is not blowing or the sun is not shining. The transition to a low-carbon energy system is a few steps closer after two technologies that were immature and hugely expensive only a few years ago saw spectacular gains in cost-competitiveness in the last year. New research from Bloomberg NEF (BNEF) shows that the cost of lithium-ion batteries has fallen by 35% over the past year to $187/MWh, while the cost of offshore wind is almost a quarter (24%) lower than this time 12 months ago.
Meanwhile, the costs of installing the more established technologies of onshore wind and photovoltaic (PV) solar also continued to fall. The levelized cost of energy for onshore wind projects starting construction at the start of this year was $50/MWh, 10% lower than a year ago, while solar projects are 18% cheaper at 57/MWh.
Elena Giannakopoulou, head of energy economics at BNEF, commented: "Looking back over this decade, there have been staggering improvements in the cost-competitiveness of these low-carbon options, thanks to technology innovation, economies of scale, stiff price competition and manufacturing experience.
"Our analysis shows that the LCOE per megawatt-hour for onshore wind, solar PV and offshore wind have fallen by 49%, 84% and 56% respectively since jobs that coal-and gas-fired power stations and nuclear, currently do.
Battery energy storage co-located with solar and wind farms are starting to be competitive with coal and gas power, even without subsidies, in providing "dispatchable power" that can be delivered when it is needed, rather than only at the time it is being generated when the wind is blowing or the sun is shining. Battery storage can provide back-up power for renewable projects for anything from one to four hours at a time, BNEF says. Tifenn Brandily, energy economics analyst at BNEF, said: "Solar PV and onshore wind have won the race to be the cheapest sources of new 'bulk generation' in most countries, but the encroachment of clean technologies is now going well beyond that, threatening the balancing role that gas-fired plant operators, in particular, have been hoping to play." The advance of offshore wind is also hugely significant, because the technology has long been seen as an expensive generation option in the near term compared to onshore wind or solar PV, although it was hoped that in time the possibility of using bigger turbines and floating platforms, coupled with the stronger and steadier winds at sea would lead to sharp cost reductions. But those costs have come down much more quickly than forecast thanks to technological advances, larger turbines and auction programs for new capacity - offshore wind is now below $100/MWh globally, with some European projects coming in well below that, compared to more than $220 just five years ago. Siemens Gamesa has just announced its 10MW turbines will be used in the world's first subsidy-free offshore wind project, Vattenfall's Hollandse Kust Zuid 1 & 2 scheme. "The low prices promised by offshore wind tenders throughout Europe are now materializing, with several high-profile projects reaching financial close in recent months. Its cost decline in the last six months is the sharpest we have seen for any technology,"Giannakopoulou said.
What type of cost are batteries for the renewable-energy industry?
A. explicit cost.
B. variable cost.
C. implicit cost.
D. fixed cost.
E. marginal cost.
Answer: A. Explicit cost.
D. Fixed cost
Explanation:
The type of cost which batteries are for the renewable-energy industry is explicit cost and fixed cost. Explicit costs refers to the business costs which appear in the general ledger. It should be noted that they've direct impact on the company's profit. Examples include utilities, raw materials, salaries, lease payments, etc.
When running a business, explicit cost is the direct payment that's made to others, such as rent, wage and materials. Batteries are an explicit cost as they're incurrIn the industry of renewable energy, batteries are used to save the energy produced and thus the cost of batteries are incurred in the daily production. Hence, it is an explicit cost since it's incurred for daily production.
Fixed costs are those costs that doesn't vary with the production level. Since the energy produced has to be stored in batteries, then it is a fixed cost as it doesn't vary with the production level.
The charter of a corporation provides for the issuance of 99,983 shares of common stock. Assume that 38,266 shares were originally issued and 4,896 were subsequently reacquired. What is the amount of cash dividends to be paid if a $4 per share dividend is declared
Answer:
$1,337,480
Explanation:
Dividend is paid on outstanding shares. So, the amount of cash dividends to be paid = [38,266 - 4,896] * $4 = $33,4370 * $4 = $1,337,480