Answer:
Paris Manufacturing
1. Based on cost considerations, the new inspection system should not be leased.
2. Based on cost considerations, the manufacturer should accept the NEW-SPEC offer.
Explanation:
a) Data and Calculations:
Annual demand for computer hard drives = 8,000 units
Current manual inspection system:
annual fixed cost = $35,000
Inspection variable cost per unit = $15 per unit.
Total cost for manual inspection system:
Variable costs $120,000 (8,000 * $15)
Fixed costs 35,000
Total costs $155,000
New automated inspection system:
Annual fixed cost = $165,000
Inspection variable cost per unit = $0.55 per unit
Total cost for automated inspection system:
Variable costs $4,400 (8,000 * $0.55)
Fixed costs 165,000
Total costs $169,400
Total cost with NEW-SPEC:
Variable costs $152,000 (8,000 * $19)
b) The improved efficiency will surely outrun the cost of the new automated inspection system. Therefore, I recommend that Paris should go ahead with the new system, despite the costs. Accepting the offer from NEW-SPEC provides the best financial efficiency. However, in the long-run, purchasing the automated inspection system might prove to be the best decision.
Suppose you win a small lottery and have the choice of two ways to be paid: You can accept the money in a lump sum or in a series of payments over time. If you pick the lump sum payout, you get $2,950 today. If you pick the payments over time payout, you get three payments: $1,000 today, $1,000 one year from today, and $1,000 two years from today. At an interest rate of 8% per year, you would be better off accepting the payout since it has the greater present value. At an interest rate of 10% per year, you would be better off accepting the payout since it has the greater present value. Years after you win the lottery, a friend in another country calls to ask your advice. By wild coincidence, she has just won another lottery with the same payout schemes. She must make a quick decision about whether to collect her money under the lump sum payout or the payments over time payout. What is the best advice to give your friend
Answer:
take the payments over time payout
Explanation:
My personal opinion/advice would be to take the payments over time payout. There are many reasons for this, the first one being that most individuals are not used to receiving large sums of cash and usually end up wasting all the money as soon as they receive it, which usually does not occur if the payments are made over time. The second and more important reason is that if the payments are made over different years your would pay a much lesser amount on taxes every year that passes. This means that the even with the interest rate you would most likely have more overall money if you take the payments over time.
In 2014, Parker Company purchased land for $115,000 at a time when the land was appraised at $120,000. In 2017, Parker Company had the land appraised, and its value was estimated to be $210.000. Also during 2017, another company offered Parker $175,000 for the parcel of land. When the balance sheet is prepared at the end of 2017, at what dollar amount should the land be reported?
A. $115.000
B. $120,000
C. $175,000
D. $210,000
Answer:
A. $115.000
Explanation:
The assets and liabilities in compliance with the GAAP (historical cost concept) are reported on the balance sheet at their initial cost, (cost at purchasing the asset) not according to market value as time-to-time shifts in market market value, if on the balance sheet you report market value, the arithmetic precision is compromised.
The assets are therefore always reported according to the initial costs or historical costs on the balance sheet. No market valuation must be reported
Applying the midpoint formula, what is the price elasticity of demand if a drop in the price of energy drinks from $2 to $1 per can leads to an increase in the quantity demanded from 100 million to 150 million cans
Answer:
-0.6
Explanation:
Price elasticity of demand = Δ Change in quantity / Δ Change in price
Price elasticity of demand = [150-100/((150+100)/2)] / [1-2/((1+2)/2)]
Price elasticity of demand = [50/125]/ [-1/1.5]
Price elasticity of demand = 0.4/-0.66666
Price elasticity of demand = -0.6
On June 25, Obermayer Repair Service extended an offer of $127,000 for land that had been priced for sale at $145,000. On July 9, Obermayer Repair Service accepted the seller's counteroffer of $138,000. On October 1, the land was assessed at a value of $207,000 for property tax purposes. On December 22, Obermayer Repair Service was offered $221,000 for the land by a national retail chain.
At what value should the land be recorded in Obermayer Repair Service's records?
$fill in the blank 1
Answer:
$138,000
Explanation:
Based on the information given the value at which the land should be recorded is 138,000 reason been that we were told that the repairer which is Obermayer Repair Service accepted the seller's counteroffer of the amount of $138,000 and based on accounting principle of COST CONCEPT the land should be recorded at the value or amount of $138,000 which is the seller's counteroffer amount that was accepted by Gallatin Repair Service.
An acquiring company issues 500,000 shares of $6 par value common stock to acquire 100% of the voting common stock of an investee company in a transaction that qualifies as a business combination. The market value of the acquiring company's common stock is $30 per share. Direct legal and consulting fees incurred pursuant to the combination are $200,000. Direct registration and issuance costs for the acquiring company's common stock are $50,000. The transaction did not result in goodwill recognition or bargain gain recognition. What is the total amount of net assets recognized as a result of this business combination
Answer:
the total amount of net asset recognized is $15,000,000
Explanation:
The computation of the total amount of net asset recognized is shown below:
= Number of shares issued × per share
= 500,000 shares × $30
= $15,000,000
Hence, the total amount of net asset recognized is $15,000,000
We simply multiplied the above two items
Discuss the various levels of management in the organization
Answer:
The three levels of management typically found in an organization are low-level management, middle-level management, and top-level management. Low-level managers focus on controlling and directing. They serve as role models for the employees they supervise.
Suppose you purchase one share of the stock of Red Devil Corporation at the beginning of year 1 for $44.75. At the end of year 1, you receive a dividend of $2 and buy one more share for $48.75. At the end of year 2, you receive total dividends of $4 (i.e., $2 for each share), and sell the shares for $56.75 each. What is the time-weighted return on your investment? (Round your answer to 2 decimal places. Do not round intermediate calculations.)
Solution :
Year : 0
Price : $ 44.75
Year : 1
Price : $48.75
Dividend : 2
Return : [tex]$\frac{48.75+2-44.75}{44.75}$[/tex]
= 13.41 %
Year :2
Price : $ 56.75
Dividend : 2
Return : [tex]$\frac{56.75+2-48.75}{48.75}$[/tex]
= 20.51%
The time weighted return = [tex]$\left((1+r_1)\times (1+r_2)\right)^{1/2}-1$[/tex]
= [tex]$\left((1+0.1341)\times (1+0.2051)\right)^{1/2}-1 $[/tex]
= 16.91%
It is also called the geometric return.
Suppose we observe the following two simultaneous events in the market for beef. First, there is a decrease in the demand for beef due to changes in consumer tastes. And second, there is a reduction in supply due to cattle farmers selling their land to real estate developers. We know with certainty that these two simultaneous events will cause which of the following?
A. No change in the equilibrium quantity and a reduction in the equilibrium price
B. An increase in the equilibrium quantity and in the equilibrium price
C. A decrease in the equilibrium quantity and an indeterminate change in the equilibrium price
D. A decrease in the equilibrium quantity and an increase in the equilibrium price
Answer:
The correct answer is OPTION C (A decrease in the equilibrium quantity and an indeterminate change in the equilibrium price)
Explanation:
The equilibrium price in the question is the price at which the quantity of beef demanded equals the quantity supplied by the cattle farmers. When demand decreases the equilibrium price falls and the quantity of beef purchased also decreases.
The equilibrium quantity for the beef is the quantity of beef demanded and the quantity of beef supplied by the cattle farmers at the equilibrium price.
The two simultaneous events from the question will cause the equilibrium price or quantity to be affected and move in the same direction as demand and supply for the beef.
Pacific Packaging's ROE last year was only 6%, but its management has developed a new operating plan that calls for a debt-to-capital ratio of 60%, which will result in annual interest charges of $627,000. The firm has no plans to use preferred stock and total assets equal total invested capital. Management projects an EBIT of $2,261,000 on sales of $19,000,000, and it expects to have a total assets turnover ratio of 1.4. Under these conditions, the tax rate will be 25%. If the changes are made, what will be the company's return on equity
Answer:
Pacific Packaging
The company's return on equity will be:
= 11.63%
Explanation:
a) Data and Calculations:
Debt-to-capital ratio = 60%
Annual Interest charges on debt = $627,000
Projected EBIT = $2,261,000
Sales = $19,000,000
Total assets turnover ratio = 1.4
Tax rate = 25%
Assets = $19,000,000 * 1.4 = $26,500,000
Debt = $26,500,000 * 60% = $15,960,000
Equity = $26,500,000 * 40% = $10,540,000
Net Income:
Projected EBIT = $2,261,000
Interest expense (627,000)
EBT $1,634,000
Taxes (25%) (408,500)
EAT $1,225,500
Return on Equity = $1,225,500/$10,540,000 * 100
= 11.63%
Forecasting provides very useful projections for established products and services, but newly introduced products and services have very different success results. Name and discuss at least one product and one service that exploded with exponential increase in demand shortly after their introduction. What about products and services (discuss at minimum two) that have largely been ignored?
Answer:
Explanation:
Every couple of years there are product launches that surpass already high expectations and end up exploding in popularity while others aren't even able to find an audience at all. One product that completely exploded in demand were the headphones Beats by Dre. Backed by one of the most influential music icons, this product exploded in popularity and made Billions in revenue. The same goes for Cloud Computing services which was an innovative service that managed to solve many problems for companies around the world.
There are also some products or services that have failed and/or were not able to survive their launch. One of these services is Windows Vista. The operating system designed to be the successor to the popular Windows XP became one of the most hated services/software to exist due to its buggy launch which created more problems than solutions. A product that had a similar disastrous launch was G-oo-gle Glass, the innovative pair of consumer glasses was designed to bring Augmented reality to the lives of everyday users. This instead failed horribly due to its unappealing design and minimal features.
For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income $ 360,000 Permanent difference (15,400 ) 344,600 Temporary difference-depreciation (19,100 ) Taxable income $ 325,500 Tringali's tax rate is 25%. Assume that no estimated taxes have been paid. What should Tringali report as its income tax expense for its first year of operations
Answer:
$81,375
Explanation:
Calculation for What should Tringali report as its income tax expense for its first year of operations
Using this formula
Income tax expense=Taxable income*Tax rate
Let plug in the formula
Income tax expense=$325,500 x 25%
Income tax expense=$81,375
Therefore What should Tringali report as its income tax expense for its first year of operations will be $81,375
I need to create a ERD on diagram
Answer:
nice
Explanation:
why convert a range of data into an excel table
Answer:
When you convert your range of data into an Excel table, by default, the Excel shades every other row in the table, making them easy to read. You can turn on/off the banded-row option from Table Style Options under the Design tab. You can also have banded columns.
Explanation:
Purpose: Organization design refers to the overall set of elements used to configure an organization. The purpose of this exercise is to give you insights into how managers must make decisions within the context of creating an organization design. Introduction: Whenever a new enterprise is started, the owner must make decisions about how to structure the organization. For example, he or she must decide what functions are required, how those functions will be broken down into individual jobs, how those jobs will be grouped back together into logical departments, and how authority and responsibility will be allocated across positions. Instructions: Assume that you have decided to open a handmade chocolate business in your local community. Your products will be traditional bars and novelty-shaped chocolates, truffles, other chocolate products such as ice cream, and gift baskets and boxes featuring chocolates. You have hired a talented chef and believe that her expertise, coupled with your unique designs and high-quality ingredients, will make your products very popular. You have also inherited enough money to get your business up and running and to cover about one year of living expenses in other words, you do not need to pay yourself a salary). You intend to buy food items including chocolate, cocoa, white chocolate, nuts, and fruit from suppliers who deliver to your area. Your chef will then turn those ingredients into luscious
Answer:
hmm I know with that is the silver kind to you and
The Retained earnings account has a credit balance of $51,000 before closing entries are made. Total revenues for the period are $69,200, total expenses are $46,800, and dividends are $14,600. What is the correct closing entry for the revenue accounts?
Answer:
Debit the Service revenue account $69,200; Credit the income summary account $69,200.
Explanation:
Temporary accounts includes:
1) Revenue, income and gain accounts
2) Expense and loss accounts
3) Income summary account
4) Dividend, drawing or withdrawal account
In the given question, the closing entry only for revenue account is required. The correct entry will be Debit the Service revenue account $69,200; Credit the income summary account $69,200.
Please check if my answers to first part is correct.
Discussion Question 4-6 (LO. 1)
1. Complete the statements below regarding "what is the control requirement of § 351".
The control requirement specifies that the person or persons transferring property to the corporation must own, immediately after the transfer, stock possessing at least 80% of the total combined voting power of all classes of stock entitled to vote, and at least 75% of the total number of shares of all other classes of the corporation's stock.
2. Classify the following as either "True" or "False" regarding the control requirement of § 351.
a. If a shareholder renders only services to the corporation for stock, the transfer cannot qualify under § 351 because services rendered are not "property."
b. If a shareholder renders services and transfers property to the corporation for stock, the shareholder will never be treated as a member of the transferring group.
c. Stock under momentary control counts in determining control if the plan for the sale or other disposition of the stock existed before the exchange.
d. If a long period of time elapses between the transfers of property by different shareholders to the corporation, the control requirement may be lost regarding the later transfers because no documentation exists making multiple transfers part of an integrated plan.
Answer:
1. Correct
after, 80%, 75%
2. a. True
b. False
c. False
d. False
Explanation:
When shareholder renders services and transfers property to the corporation the shareholder is treated as member of transferring group. Stocks under momentary control does not count in determining control. The long period elapses between transfer of property, the control requirement may be lost because there is no transferring group.
Rodriguez Paints Inc., a manufacturer of paints and emulsions, owns a user-friendly website. The website allows customers to upload pictures of their house to help in selecting their color choices. New Designs Inc., an interior decoration firm, enters into a partnership with Rodriguez Paints Inc. As a result, customers can now get a complete design solution for their houses. This is an example of _____.
Answer:
Strategic alliance
Explanation:
A strategic alliance corresponds to a union of companies with common objectives, however these companies, despite being united for a period of time to conquer advantages together, are not a single company, that is, their independence remains preserved.
Companies seek to ally themselves in strategic alliances to achieve several joint objectives, such as reaching a greater potential audience, pooling resources, increasing technology, increasing marketing, greater capacity to face competition, economies of scale, etc.
Journalize the following merchandise transactions. The company uses the perpetual inventory system. a. Sold merchandise on account, $12,500 with terms 2/10, net 30. The cost of the goods sold was $8,125. Sale fill in the blank 8fc02f064037faf_2 fill in the blank 8fc02f064037faf_4 Cost fill in the blank 8fc02f064037faf_6 fill in the blank 8fc02f064037faf_8 b. Received payment within the discount period. fill in the blank 05f0ea00607a008_2 fill in the blank 05f0ea00607a008_4
Answer:
A.Dr Accounts Receivable 12,500
Cr Sales 12,500
Dr Cost of of sales 8,125
Cr Inventory 8,125
B. Dr Cash 12,250
Dr Sales Discounts 250
Cr Accounts receivable 12,500
Explanation:
Preparation of journal entries
A.Dr Accounts Receivable 12,500
Cr Sales 12,500
(Being to record cost of merchandise sold on account)
Dr Cost of of sales 8,125
Cr Inventory 8,125
(Being to record cost of the goods sold)
B. Dr Cash 12,250
(12,500-250)
Dr Sales Discounts 250
(2%*12,500)
Cr Accounts receivable 12,500
(Being to record payment within the discount period)
Stuart Corporation produces products that it sells for $17 each. Variable costs per unit are $9, and annual fixed costs are $163,200. Stuart desires to earn a profit of $25,600. Required Use the equation method to determine the break-even point in units and dollars. Determine the sales volume in units and dollars required to earn the desired profit.
Answer:
See below
Explanation:
The formula for break even point in unit and dollar is as sewn below;
Break even point in units = Fixed expenses / Contribution margin per unit
Where
Contribution margin per unit = Selling price per unit - Variable expense per unit
Contribution margin per unit = $17 - $9 = $8
But
Fixed expenses = $163,200
Break even point in unit = $163,200 / $8 = 20,400 units
Break even point in dollars = Fixed expense / Profit volume ratio
Where
Profit volume ratio = (Contribution margin per unit / Selling price per unit) × 100
Profit volume ratio = ($8/$17) × 100 = 47.06%
But
Fixed expense = $163,200
Break even point in dollars = $163,200 / 47.06% = $3,468
For desired profit
Sales volume in units = Fixed expense + Desired profit / Contribution margin per unit
= $163,200 + $25,200 / $8
= $188,400/$8
= 23,550 units
Sales volume in dollars = Fixed expenses + Desired profit / Profit volume ratio
= $163,200 + $25,200 / 47.06%
= $4,003
You have been accepted into college. The college guarantees that your tuition will not increase for the four years you attend. The first $10,000 tuition payment is due in six months. After that, the same payment is due every six months until you have made a total of eight payments. The college offers a bank account that allows you to withdraw money every six months and has a fixed APR of 4% (semiannual) guaranteed to remain the same over the next four years. How much money must you deposit today if you intend to make no further deposits and would like to make all the tuition payments from this account, leaving the account empty when the last payment is made
Answer:
$73,254.81
Explanation:
We assume fees paid as annuity (PMT). Now, we have to find Present Value (PV) of annuity
PV = PMT*(1- 1/(1+r)^n) / r
Where PMT = 10000, n = 8 payments, r r = 4.0%/2 = 2% = 0.02
PV = $10,000 * (1 - 1/(1+0.02)^8) / 0.02
PV = $10,000 * (1 - 1/1.171659381) / 0.02
PV = $10,000 * 0.146509629 / 0.02
PV = $73254.8145
PV = $73,254.81
$73,254.81 is the money i must deposit today if i intend to make no further deposits and would like to make all the tuition payments from this account.
Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several financing alternatives have been offered by Danning: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. Pay $1,000,000 in cash immediately. 2. Pay $420,000 immediately and the remainder in 10 annual installments of $80,000, with the first installment due in one year. 3. Make 10 annual installments of $135,000 with the first payment due immediately. 4. Make one lump-sum payment of $1,500,000 five years from date of purchase. Required: Determine the best alternative for Harding, assuming that Harding can borrow funds at an 8% interest rate. (Round your final answers to nearest whole dollar amount.)
Answer:
the best option is 4 as it have the highest present value
Explanation:
The computation is shown below:
For option 1
PV = $1,000,000
For option 2
PV = $420,000 + $80,000 × PVIFA (8% , 10)
= $420,000 + $80,000 × 6.710
= $956,800
For option 3
PV = $135,000 + $135,000 × PVIFA (8% , 9)
= $135,000 + $135,000 × 6.247
= $978,345
For option 4
PV = $1,500,000 × PVIF (8% , 5)
= $1,500,000 × 0.681
= $1,021,500
So the best option is 4 as it have the highest present value
HELP, 50 POINTS!
Which example needs a transition word or phrase between sentences to connect the ideas?
a.)
Engaging your employees in a day of service is a good way to make a difference in your community. The costs associated with shutting down your business for a full day may be significant.
b.)
Several significant hurricanes have hit the region in recent years. The damage done by them has caused insurance rates to rise.
c.)
Many students don't clearly understand what constitutes plagiarism. Therefore, plagiarism is often unintentional.
d.)
Real estate sales have moved in tandem with the stock market for the last 15 years. When the stock market has expanded, real estate sales have increased.
Answer:
b is the answer it should be
Option D needs a transition word or phrase between sentences to connect the ideas. Real estate sales have moved in tandem with the stock market for the last 15 years. When the stock market has expanded, real estate sales have increased.
What are transition words?Sentences, thoughts, or paragraphs are connected with some words. Those words are known as transition words. Conjunctions are the most basic transitive words.
Examples of transition words are: and, but, after, then, and many more.
Therefore, Opinion D: Real estate sales have moved in tandem with the stock market for the last 15 years. When the stock market has expanded, real estate sales have increased. This is correct.
Learn more about transition words from here:
https://brainly.com/question/2372495
#SPJ2
Variable Costs + Fixed Costs = ?
Total output
Total costs
Marginal costs
Can anyone please write a summery or a paragraph of life of a homless teen memoir in the Great depression please?
eso
depen de si el adolecente ses amensado
If you have a credit card with 12.99% APR that compounds daily, what is the effective
interest rate?
Answer: 13.87%
Explanation:
Effective interest rate is calculated by the formula:
= (1 + APR / Number of compounding periods)) ^ Number of compounding periods - 1
Number of compounding periods = 365 days in a year
= (1 + 0.1299/365) ³⁶⁵ - 1
= 0.138688
= 13.87%
Bettendorf Corporation uses a job order costing system. The plantwide predetermined overhead rate is $21.00 per direct labor-hour and its direct labor wage rate is $12.00 per hour. Job B-600 has the following cost information: Direct materials $ 210 Direct labor $ 180 Required: 1. What is the total manufacturing cost assigned to Job B-600
Answer:
Missing word " 2. If Job B-600 consists of BO units, what is the unit product cost for this job?"
1. Particulars Amount
Direct Materials $210
Direct Labor $180
Plantwide overheads $315
Total manufacturing cost $705
Labor hour rate is $12 per hour
Hence, total labor hours = $180/$12 = 15 hours
Total plantwide overheads = $21 * 15 =$315
2. Particulars Amount
Direct Materials $210
Direct Labor $180
Plantwide overheads $315
Total manufacturing cost $705
Total unit 80
Cost per unit $8.813
. If you still donate the $100,000 from Problem 16 today, but ask the college to delay the scholarship payment so that the first scholarship payment is made 10 years from today, then how large will the annual payment be
Answer:
The annual scholarship payment = $5,693.25
Explanation:
Data Given:
In this question, we are required to calculate the future value up till 9th year and then
Donating Amount = $100,000
Time period = 9 years
Note: Here in this question, interest rate is not given without which this question is incomplete. However, I have found similar question on the internet and will be using its interest rate to solve this question for the sake of understanding and concept.
So, the interest we use will be = 4%
Formula for the future value:
FV = Present Value [tex](1 + r)^{n}[/tex]
Present value = $100,000
n = 9 years
r = 4% = 0.04
FV = 100,000 [tex](1 + 0.04)^{9}[/tex]
FV = 100,000 x 1.4233118
FV = Future Value = $142,331.18
The annual scholarship payment = FV * r
The annual scholarship payment = 142,331.18 * 0.04
The annual scholarship payment = 5,693.247
The annual scholarship payment = $5,693.25
7. Farmer sells flour to a baker for RM2. The baker uses the flour to make bread, which is sold for RM3. What is the total contribution of these transactions to GDP?
Answer: RM3
Explanation:
Gross domestic product has to do with the monetary value of the goods that are produced in a particular economy. In this case, the total contribution will be RM3 since it's the final amount that the bread is sold.
It should be noted that RM2 in this case is the intermediate good and should therefore bit be included so that there won't be an overstatement of the GDP and to prevent double counting.
Simon and his managers are discussing the unemployment, inflation, and interest-rate trends that might affect their chain of sandwich shops over the next 12 months and the projected growth in the areas where the stores are located. The managers are studying the ______ forces in their organization's general environment.
-self motivation
- personal adapitlity
-openness to change
-resilience
Answer:
Option D
Explanation:
Simon and his managers are discussing about the factors that might affect the economic performance of their shops. They are concerned about the negative impacts of unemployment, inflation, and interest-rate trends on their shops and simultaneously are discussing about the future growth, Hence, they are focused on catering the odds to achieve a certain growth during the tough times. Their discussion is aimed at both the risks and consequences
Hence, option D is correct
On January 1, 2021, Legion Company sold $235,000 of 9% ten-year bonds. Interest is payable semiannually on June 30 and December 31. The bonds were sold for $206,917, priced to yield 11%. Legion records interest at the effective rate. Legion should pay cash interest for the six months ended June 30, 2021, in the amount of:
Answer:
$18,622.53
Explanation:
Calculation for how much should Legion pay for cash interest for the six months ended June 30, 2021
Using this formula
Cash interest= Bonds percentage* Bonds amount
Let plug in the formula
Cash interest=9%*$206,917
Cash interest=$18,622.53
Therefore how much should Legion pay for cash interest for the six months ended June 30, 2021 is $18,622.53