Answer:
The most recent annual dividend paid per share on the stock is $3.61
Explanation:
The current price of the stock can be calculated using the constant growth model of DDM. The DDM values the stock based on the present value of the expected future dividends from the stock.
The formula for the price of the stock today under the constant growth model is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 is the most recent dividend paidD0 * (1+g) is the dividend expected to be paid next periodr is the required rate of returng is the growth rate in dividendsTo calculate the most recent annual dividend per share paid (D0), we use this formula for constant growth model and plug in the available values of all other variables.
65 = D0 * (1+0.08) / (0.14 - 0.08)
65 * (0.06) = D0 * (1.08)
3.9 / 1.08 = D0
D0 = $3.61
A paint manufacturing company produces three paint bases of differing quality. Due to throughput limitations (measured in gallons) at their facility, they are unable to meet total demand for their products. In determining which of their products they should produce, what should they consider?
a. The gross profit per unit for each product
b. The operating margin per unit for each product
c. The contribution margin per gallon of throughput for each product
d. None of the above
Answer:
c. The contribution margin per gallon of throughput for each product
Explanation:
contribution margin per gallon = Revenue per gallon - variable cost per gallon.
Contribution margin would enable the company to know the amount each product earns in excess after variable cost has been subtracted from revenue.
the product with the highest contribution margin should be considered.
According to ComScore's U.S. total video report, which of the following statements is TRUE? Group of answer choices Younger audiences are more likely to consume news content on smartphones than traditional news platforms. Millennials are less likely to watch TV from an internetconnected TV device (e.g. Roku, Apple TV, Google Chromecast) as well as via a gaming console (e.g. Xbox, PlayStation, etc.) or Blu-Ray Player. Millennials spend one-third of their original TV series consumption time watching on digital platforms, with computers driving the majority of that activity. Generally speaking, the younger the viewer the greater percentage of time spent watching on "traditional" TV sets.
Answer: Millennials spend one-third of their original TV series consumption time watching on digital platforms, with computers driving the majority of that activity.
Explanation:
The report showed that Millennials who are loosely defined as those who were born between the years 1981 and 1996, preferred to watch TV series on digital platforms and when they do watch TV, they do it time-shifted or with a computer connected to the Television and simply projecting what the computer is showing.
This trend by Millennials towards digital platforms was put down to the Millennials' need to watch videos on their own time and these digital platforms offer that by simply putting videos there and leaving you to click on them whenever you want.
Great Southeast Company's Cash account shows an ending balance of $ 660. The bank statement shows a $ 27 service charge and an NSF check for $ 130. A $ 270 deposit is in transit, and outstanding checks total $ 310. What is Great Southeast's adjusted cash balance?
Answer:
$503
Explanation:
The computation of the adjusted cash balance is shown below:
As we know that
Adjusted cash balance is = Cash ending balance - NSF Checks - Service charge
= $660 - $130 - $27
= $503
And we do not considered the other two items as they are not impact the cash balance
Basically we applied the above formula
Rhiannon Corporation has bonds on the market with 12.5 years to maturity, a YTM of 7.3 percent, a par value of $1,000, and a current price of $1,057. The bonds make semiannual payments. What must the coupon rate be on these bonds
Answer:
The coupon rate be on these bonds is 8%
Explanation:
The coupon payment is the periodic payment made using the coupon rate and face value of the bond.
Use follwing formula to calculate the coupon payment
Price of the bond = C x ( 1 - ( 1 + r )^-n / r ) + F / ( 1 + r )^n
r = YTM = 7.3% /2 = 3.65%
n = numbers of periods = 12.5 years x 2 = 25 periods
F = Face value = $1,000
Price of the bond = $1,057
C = ?
$1,057 = C x ( 1 - ( 1 + 3.65% )^-25 / 3.65% ) + $1,000 / ( 1 + 3.65% )^25
$1,057 = C x 16.22 + $408.10
$1,057 - 408.10 = C x 16.22
648.90 / 16.22 = C
C = $40 semiannually
C = $40 x 2 = $80 annually
Coupon rate = $80 / $1,000 = 0.08 = 8%
A labor contract provides for a first-year wage of $15 per hour, and specifies that the real wage will rise by 2 percent in the second year of the contract and by another 2 percent in the third year. The CPI is 1.00 in the first year, 1.09 in the second year, and 1.15 in the third year. What dollar wage must be paid in the third year
Answer:
$17.9469
Explanation:
Calculation for what dollar wage must be paid in the third year
Since the first year is tend to be the base year in which the real wage and nominal wage are both $15 per hour in that year.
The real wage is suppose to increase by 2 percent in the second year which means that the real wage in year two will be $15.30 ($15 * 1.02) per hour.
In a situation where the real wage was supposed to also increase by 2 percent in the third year, this means that the real wage in year three will be $15.606 ($15.3 * 1.02) per hour.
Therefore In order for us to find the nominal wage in third year , we have to index the real wage in order for it to adjust for inflation. Thus the nominal wage in third year will be $17.9469($15.606 * 1.15).
Therefore what dollar wage must be paid in the third year will be $17.9469
The dollar wage to be paid in the third year based on the labor contract is $17.95 per hour.
Data and Calculations:First-year wage per hour = $15
Increase in real wage in the second year = 2%
Increase in real wage in the third year = 2%
First year's CPI = 1.00
Second year's CPI = 1.09
Third year's CPI = 1.15
What is CPI?The Consumer Price Index (CPI) measures the weighted average prices of a basket of consumer goods and services in the United States, considering its general economic inflation. The labor contract raises the real wage by 2% in the second and third years. The CPI of year three is applied in computing the real wage to account for the effect of inflation.
Thus, the dollar wage that must be paid in the third year based on the labor contract is $17.95 per hour ($15 x 1.02 x 1.02 x 1.15).
Learn more about the CPI, inflation, and the real wage at https://brainly.com/question/24802187
The company offered Gwendolyn a(n) _____ for living in an unfamiliar country isolated from her family, dealing with a new culture and language, and adapting to new work habits and practices. She received this as a percentage of her base salary.
Answer:
Hardship allowance.
Explanation:
The company offered Gwendolyn a hardship allowance for living in an unfamiliar country isolated from her family, dealing with a new culture and language, and adapting to new work habits and practices. She received this as a percentage of her base salary.
A hardship allowance can be defined as an extra amount of money being paid by an employer to an employee for working in difficult or tedious conditions. Also, when an employee works in an unfamiliar environment, potentially dangerous territory, and deal with risks in living in isolation from his or family members, they are entitled to a hardship allowance from their employer.
Hardship allowance is usually calculated as a percentage of an employee's monthly salary.
For instance, Gwendolyn works for an oil company and he's given an assignment to go work at a rig in a warzone, he is entitled to a hardship allowance from his employer.
Which of the following represented a business unit that shows rapid growth but poor profit margins?
a. Star.
b. Cash cow.
c. Problem child.
d. Loss leader.
e. Dog.
Answer:
Option B
Explanation:
In simple words, A cash cow refers to one of the 4 dimensions (quadrants) throughout the growth-share vector, BCG matrix describing a business, line of products, or enterprise with significant market share inside a mature field.
A cash cow is described as a reference to a company, commodity, or asset that will generate continuous investment returns throughout its lifetime until it is purchased and paying off.
The term refers to a company that is equally low-maintenance too. Modern days cash cows need minimal capital investment to have consistently sufficient cash flow that can be distributed within a company to other departments. They 're lower - risk projects, potentially high profits.
Suppose that XTel currently is selling at $40 per share. You buy 500 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 8%. a. What is the percentage increase in the net worth of your brokerage account if the price of XTel immediately changes to (a) $44; (b) $40; (c) $36? (Leave no cells blank - be certain to enter "0" wherever required. Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.)
Answer:
Explanation:
a. What is the percentage increase in the net worth of your brokerage account if the price of XTel immediately changes to $44?
Total investment will be:
= 500 shares x $40 = $20,000
The Initial Net Worth =$15,000
Borrowed Amount = $20,000 - $15,000 = $5,000
New Net worth will be:
= $44 x 500 shares - 5000
= $22,000 - $5000
= $17,000
Percentage increase will be:
= [($17,000 - $15,000)/$15,000] × 100
= $2000/$15000 × 100
= 13.33%
b. What is the percentage increase in the net worth of your brokerage account if the price of XTel immediately changes to $40?
Total investment will be:
= 500 shares x $40 = $20,000
The Initial Net Worth =$15,000
Borrowed Amount = $20,000 - $15,000 = $5,000
New Net worth will be:
= $40 x 500 shares - 5000
= $20,000 - $5000
= $15,000
Percentage increase will be:
= [($15,000 - $15,000)/$15,000] × 100
= 0/$15000 × 100
= 0
c. What is the percentage increase in the net worth of your brokerage account if the price of XTel immediately changes to $36?
Total investment will be:
= 500 shares x $40 = $20,000
The Initial Net Worth =$15,000
Borrowed Amount = $20,000 - $15,000 = $5,000
New Net worth will be:
= $36 x 500 shares - 5000
= $18,000 - $5000
= $13,000
Percentage increase will be:
= [($13,000 - $15,000)/$15,000] × 100
= -$2000/$15000 × 100
= -13.33%
_____ occurs when a creditor obtains a court order that directs an employer to set aside a portion of an employee's wages to pay a debt owed to the creditor.
Answer:
Garnishment
Explanation:
Garnishment refers to an order in which a person directs a third party with respect to seize assets i.e salary earned from employment or money in a bank account so that the unpaid debt amount could be settled out
In the given case, the same situation occurs so this is a case of garnishment and the same is to be considered
When you read a case, you should:
Multiple Choice
Find the facts, look for the issue, critically think about the issue, and determine if your reasoning matches the reasoning of the judge.
Identify the legal issues, apply the facts to the legal issues, and evaluate the reasoning of the judge in light of the facts of the case.
Consider the truth of the facts of the case, identify legal questions raised, review the decision of the judge, and determine if the judge's decision was
justified by the rule of law.
Find the facts, look for the issue, identify the judge's reason and conclusion, locate the rules of law that govern the reasoning, and apply critical
thinking to the judge's reasoning.
Identify the facts, apply critical thinking skills to determine the truths of the facts, and identify how the judge interpreted the facts in the case.
Answer: Find the facts, look for the issue, identify the judge's reason and conclusion, locate the rules of law that govern the reasoning, and apply critical thinking to the judge's reasoning.
Explanation:
When reading cases, one must first get acquainted with the facts of the case so look for them first. From this you can be able to look for the issue in question.
After this then read the Judge's conclusion as well as the Judge's reason for concluding the case as such. The Judge will base their ruling on rules of law so you should locate those laws as well as others that you think might be relevant and then finally apply critical thinking to the Judge's decision to see if the Judge interpreted and applied the law as it should have been.
Consider a profit-maximizing firm in a competitive industry. Under which of the following situations would the firm choose to produce where MR= MC?
Yes?/No? Minimum AVC < Price < minimum ATC.
Yes?/No? Price > minimum ATC.
Yes?/No? Price < minimum AVC
Answer:
The answer is given below
Explanation:
A firm maximizes profit to produce where the marginal revenue is equal to the marginal cost provided that the price of the product is greater or equal to the average variable cost (AVC)
i) Minimum AVC < Price < minimum ATC
Id the price is greater than the minimum average variable cost (AVC) and less than the minimum average total cost (ATC), the firm would produce only for the short run making small losses.
ii) Price > minimum ATC.
Yes the firm should produce when Price > minimum ATC.
iii) Price < minimum AVC
When Price < minimum AVC, the firms should stop producing and shut down because it cannot cover its variable cost.
You are given a loan on which interest is charged over a 4-year period, as follows: an effective rate of discount of 6% for first year; a nominal rate of discount of 5% compounded every 2 years for the second year; a nominal rate of interest of 5% compounded semiannually for the third year; and a force of interest of 5% for the fourth year. Calculate the annual effective rate of interest over the 4-year period.
Answer:
The annual effective rate of interest over the 4-year period is 0.0549
Explanation:
In order to calculate the annual effective rate of interest over the 4-year period we would have to make the following calculation:
(1+i)∧4=(1-nominal rate discount)∧-1*(1-nominal rate discount/1/2)∧-1/2*(1+nominal rate discount/2)∧e∧0.05
(1+i)∧4=(1-0.06)∧-1*(1-0.05/1/2)∧-1/2*(1+0.05/2)∧e∧0.05
(1+i)∧4=1.2385
Therefore, if (1+i)∧4=1.2385, i=0.0549
The annual effective rate of interest over the 4-year period is 0.0549
Live It Cruiseline offers nightly dinner cruises departing from several cities on the eastern coast of the United States including Charleston, Baltimore, and Alexandria. Dinner cruise tickets sell for $ 60 per passenger. Live It Cruiseline's variable cost of providing the dinner is $ 30 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $ 270 comma 000 per month. The company's relevant range extends to 20 comma 000 monthly passengers. If Live It Cruiseline sells an additional 700 tickets, by what amount will its operating income increase (or operating loss decrease)? First, identify the formula, then compute the operating income increase (or operating loss decrease). Fixed cost per passenger x ▼ = Operating
Answer:
Live It Cruiseline
The operating income will increase by $11,550 from the sale of additional 700 tickets.
Explanation:
a) Data and Calculations:
Selling price of Dinner Cruise = $60
Variable cost = $30
Fixed costs = $270,000 per month
Relevant range quantity = 20,000
Fixed costs per passenger = $270,000/20,000 = $13.50
b) Income Statements
Relevant Range Additional 700 Tickets
Sales $1,200,000 $1,242,000
Variable cost 600,000 6,21,000
Contribution $600,000 $621,000
Fixed costs 270,000 279,450
Net operating income $330,000 $341,550
c) The preparation of two income statements differentiates the net operating income under the two scenarios: relevant capacity and the additional sale of ticket, clearly identifying the differences. The results show that Live It Cruiseline would add $11,550 to the net operating income by selling additional 700 tickets, even though, these additional tickets will cause an increase in the fixed costs.
Below is a list of activities for Jayhawk Corporation. Required: Select from the activities of Jayhawk Corporation whether the transaction increases, decreases, or has no effect on assets, liabilities, and stockholders' equity. The first item is provided as an example.
Transaction Assets = Liabilities+ Stockholders' Equity
1. Issue common stock in exchange for cash. Increase= No effect+ Increase
2. Purchase business supplies on account. = +
3. Pay for legal services for the current month. = +
4. Provide services to customers on account. = +
5. Pay employee salaries for the current month. = +
6. Provide services to customers for cash. = +
7. Pay for advertising for the current month. = +
8. Repay loan from the bank. = +
9. Pay dividends to stockholders. = +
10. Receive cash from customers in (4) above. = +
11. Pay for supplies purchased in (2) above. = +
Answer:
Jayhawk Corporation
Transaction Assets = Liabilities Stockholders' Equity
1. Issue common stock in exchange for cash. Increase= No effect + Increase
2. Purchase business supplies on account. Increase = Increase + No effect
3. Pay for legal services for the current month. Decrease = No effect + Decrease
4. Provide services to customers on account. Increase = No effect + Increase
5. Pay employee salaries for the current month. Decrease = No effect + Decrease
6. Provide services to customers for cash. Increase = No effect + Increase
7. Pay for advertising for the current month. Decrease = No effect + Decrease
8. Repay loan from the bank. Decrease = Decrease + No effect
9. Pay dividends to stockholders. Decrease = No effect + Decrease
10. Receive cash from customers in (4) above. Increase + Decrease = No effect + No effect
11. Pay for supplies purchased in (2) above. Decrease = Decrease + No effect
Explanation:
The accounting equation states that Assets are equal to Liabilities Plus Equity. This equation remains true for every business transaction, which affects two accounts on either side of the equation. This keeps the equation in equilibrium or balance with each given transaction. It is from this equation that the double entry system of accounting was developed and is based.
The impact whether the transaction increases, decreases, or has no effect on assets, liabilities, and stockholders' equity is explained below:
1. Issue common stock in exchange for cash. Increase= No effect + Increase
2. Purchase business supplies on account. Increase = Increase + No effect
3. Pay for legal services for the current month. Decrease = No effect + Decrease
4. Provide services to customers on account. Increase = No effect + Increase
5. Pay employee salaries for the current month. Decrease = No effect + Decrease
6. Provide services to customers for cash. Increase = No effect + Increase
7. Pay for advertising for the current month. Decrease = No effect + Decrease
8. Repay loan from the bank. Decrease = Decrease + No effect
9. Pay dividends to stockholders. Decrease = No effect + Decrease
10. Receive cash from customers in (4) above. Increase + Decrease = No effect + No effect
11. Pay for supplies purchased in (2) above. Decrease = Decrease + No effect
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If Megan Roberts were given total marketing responsibility over Diet Cherry 7Up, she would hold the position of ____ manager.
Answer: Brand
Explanation:
Brand managers are the ones in charge of how a product is perceived by the public, especially their niche. They do this through Marketing which is publicizing the product.
They are therefore in charge of marketing the product to their niche so that the product can be bought and by being given total marketing responsibility over Diet Cherry 7Up, Ms Roberts is now most definitely, the Brand Manager.
Sparacino Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.90 Direct labor $ 3.90 Variable manufacturing overhead $ 1.70 Fixed manufacturing overhead $ 25,200 Sales commissions $ 1.50 Variable administrative expense $ 0.55 Fixed selling and administrative expense $ 8,100 If 5,000 units are produced, the total amount of manufacturing overhead cost is closest to:
Answer:
Total overhad= $33,700
Explanation:
Giving the following information:
Variable manufacturing overhead $ 1.70
Fixed manufacturing overhead $ 25,200
Number of units= 5,000
The total manufacturing overhead is the sum of the total variable overhead and total fixed overhead.
Total overhead= 1.7*5,000 + 25,200
Total overhad= $33,700
On January 1, 2014, Brenner Company purchased at face value, a $1,000, 6% bond that pays interest on January 1 Brenner Company has a calendar year end. The entry for the receipt of interest on January 1, 2015 is
Answer:
Dr Cash 30
Cr Interest revenue 30
Explanation:
Preparation of te entry for the receipt of interest on January 1, 2015 for Brenner Company
Since we were told that On January 1, 2014, Brenner Company was said to have purchased at a face value, the amount of $1,000 with 6% bond that pays the interest in January 1 this means we have to record the transaction by Debiting Cash with $30 and Crediting Interest revenue with the same amount. The $30 is been calculated as:
1,000 *.06 *1/2 =$30
Therefore the entry for the receipt of interest on January 1, 2015 is:
Dr Cash 30
Cr Interest revenue 30
Find the present worth in year 0 of $60,000 in year 3 and amounts increasing by 15% per year through year 10 at an interest rate of 11% per year. g
Answer:
Present worth is 398,577
Explanation:
First we need to grow the payment by 15% each year after year 4. Then we need to discount the amounts using the interest rate of 11% each year.
All the workings are done in the pdf file attached with this answer, please find it.
Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $14,500 and will produce cash flows as follows: End of Year Investment A B 1 $9,500 $0 2 9,500 0 3 9,500 28,500 The present value factors of $1 each year at 15% are: 1 0.8696 2 0.7561 3 0.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of Investment A is: A. $18,739. B. $(14,500). C. $14,000. D. $(21,691). E. $7,190.
Answer:
E. $7,190
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
For project A,
Cash flow in year 0 = $-14,500
Cash flow in year 1 = $9,500
Cash flow in year 2 = $9,500
Cash flow in year 3 = $9,500
I = 15%
NPV = $7190.64
To find the NPV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
Equipment maintenance costs for manufacturing explosion-proof pressure switches are projected to be $125,000 in year 1 and increase by 4% each year through year 5. What is the equivalent uniform annual worth of the maintenance costs at an interest rate of 10% per year, compounded semiannually
Answer:
The equivalent uniform annual worth of the maintenance costs at an interest rate of 10% per year, compounded semiannually is $127,432
Explanation:
In order to calculate the equivalent uniform annual worth of the maintenance costs at an interest rate of 10% per year, compounded semiannually we would have to calculate the following formula:
equivalent uniform annual worth of the maintenance costs= P(i(1+i)∧n/(1+i)∧n-1
The rate of interest i would be as follows:
rate of interest i=(1+10%/2)-1
rate of interest i=0.1025*100
rate of interest i=10.25%
The present value P would be calculated as follows:
present value P=$125,000(1-(1+1/100)∧5 (1+10.25/100)∧-5/(10.25/100-1/100)
present value P=$125,000*3.84
present value P=$480,000
Therefore,
equivalent uniform annual worth of the maintenance costs=$480,000*(10.25/100 (1+10.25/100)∧5/(1+10.25/100)∧5-1)
equivalent uniform annual worth of the maintenance costs=$480,000*0.2654
equivalent uniform annual worth of the maintenance costs=$127,432
The equivalent uniform annual worth of the maintenance costs at an interest rate of 10% per year, compounded semiannually is $127,432
Brinker accepts all major bank credit cards, including First Savings Bank's, which assesses a 2.5% charge on sales for using its card. On May 26, Brinker had $6,400 in First Savings Bank Card credit sales. What entry should Brinker make on May 26 to record the deposit? Multiple Choice Debit Cash $6,240; debit Credit Card Expense $160; credit Sales $6,400. Debit Cash $6,400; credit Sales $6,400. Debit Cash $6,560; credit Credit Card Expense $160; credit Sales $6,400. Debit Accounts Receivable $6,240; debit Credit Card Expense $160; credit Sales $6,400. Debit Accounts Receivable $6,400; credit Sales $6,400.
Answer:Debit Cash $6,240; debit Credit Card Expense $160
Explanation:
Working
6,400 x 2.5% = $160 as the credit card expense
Credit sales - credit card expense= Cash
6400 - 160 = $6,240 --- cash
Account Debit Credit
Cash $6,240
Credit Card Expense $160
Credit Sales $6,400
Rollins Corporation is estimating its WACC. Its target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common equity. Its bonds have a 12 percent coupon, paid semiannually, a current maturity of 20 years, and sell for $1,000. The firm could sell, at par, $100 preferred stock which pays a 12 percent annual dividend, but flotation costs of 5 percent would be incurred. Rollins' beta is 1.2, the risk-free rate is 10 percent, and the market risk premium is 5 percent. Rollins is a constant-growth firm which just paid a dividend of $2.00, sells for $27.00 per share, and has a growth rate of 8 percent. The firm's policy is to use a risk premium of 4 percentage points when using the bond-yield-plus-risk-premium method to find rs. The firm's marginal tax rate is 40 percent. What is Rollins' cost of preferred stock? Select one: a. 10.0% b. 11.0% c. 12.0% d. 12.6% e. 13.2%
Answer:
d. 12.6%
Explanation:
Rollins Corporation will receive $100 - ($100 x 5% flotation costs) = $100 - $5 = $95 net for each preferred stock issued
Since it will have to pay $12 on preferred dividends, the cost of preferred stocks = preferred dividend per preferred stock / net amount received per preferred stock = $12 / $95 = 0.1263 = 12.6%
Flotation costs are costs that a corporation incurs when issuing new stocks or bonds, and they include legal fees, underwriting fees, etc.
Answer:
d. 12.6
Explanation:
TRUE OR FALSE PLEASE FOR BRAINLIEST ANSWER The doctrine of Respondeat Superior states that a principal must indemnify (reimburse) the agent for out of pocket expenses incurred even when the agent detours to satisfy a personal need.
Answer:
False
Explanation:
You have the following information for Bridgeport Corp. for the month ended October 31, 2017. Bridgeport Corp. uses a periodic method for inventory.
Date Description Units Unit Cost or Selling Price
Oct. 1 Beginning inventory 60 $24
Oct. 9 Purchase 125 26
Oct. 11 Sale 107 37
Oct. 17 Purchase 94 27
Oct. 22 Sale 64 42
Oct. 25 Purchase 71 29
Oct. 29 Sale 104 42
Required:
a. Calculate the weighted-average cost.
b. Calculate ending inventory, cost of goods sold, gross profit under each of the following methods.
1. LIFO
2. FIFO
3. Avergae Cost
Answer:
Bridgeport Corp.
a. Weighted-average cost:
Weighted average cost = Cost of goods available for sale = $9,287
b. Ending inventory, cost of goods sold, gross profit under:
1. LIFO:
a) Ending Inventory = 75 units
Oct. 1 Beginning inventory 60 at $24 = $1,440
Oct. 9 Purchase 15 at $26 = 390
Total 75 = $1,830
b) Cost of goods sold = Cost of goods available for sale minus the ending inventory
= $9,287 - $1,830
= $7,457
c) Gross profit = Sales minus Cost of goods sold
= $11,015 - $7,457
= $3,558
2. FIFO:
a) Ending Inventory = 75 units
Oct. 17 Purchase 4 at $27 = $108
Oct. 25 Purchase 71 at $29 = 2,059
Ending Inventory 75 $2,167
b) Cost of goods sold = Cost of goods available for minus Ending Inventory
= $9,287 - $2,167
= $7,120
c) Gross profit = Sales minus Cost of goods sold
= $11,015 - $7,120
= $3,895
3. Average Cost:
a) Ending Inventory = 75 units
= Ending Inventory units x Weighted-Average cost
= 75 x $26.53 = $1,989.75
b) Cost of goods sold = units sold x weighted-average cost
= 275 x $26.53
= $7,295.75
c) Gross profit = Sales minus Cost of goods sold
= $11,015 - $7,295.75
= $3,719.25
Explanation:
a) Data and calculations:
Date Description Units Unit Cost Selling Price Total
Oct. 1 Beginning inventory 60 $24 $1,440
Oct. 9 Purchase 125 26 3,250
Oct. 11 Sale (107) $37 $3,959
Oct. 17 Purchase 94 27 2,538
Oct. 22 Sale (64) 42 2,688
Oct. 25 Purchase 71 29 2,059
Oct. 29 Sale (104) 42 4,368
Total 350 (275) $9,287 $11,015
Ending inventory in units = 350 - 275 = 75
Weighted average cost = $9,287
Weighted average cost per unit = $9,287/350 = $26.53
b) The LIFO is the Last-in, First-Out method of inventory costing which assumes that units bought last are the units to be sold first.
c) FIFO means the First-in, First-Out method of inventory costing. This takes the assumption that units bought first are the units to be sold first in that chronological order.
d) Weighted average method of inventory costing takes the weighted average cost and uses this to value the ending inventory and the cost of goods sold.
e) The periodic inventory system does not alter the value of inventory until at the end of the accounting period when the inventory count is done, reconciled, and valued.
Exhibit 27-5 Units of Labor Quantity of Output Marginal Revenue 0 0 $6 1 100 6 2 180 6 3 250 6 4 310 6 5 330 6 Refer to Exhibit 27-5. The marginal revenue product of the second unit of labor is
Answer:
$480
Explanation:
marginal revenue is the increase in revenue as a result of selling one extra unit of output.
(180 - 100)x $6 = $480
please find attached a clear image of Exhibit 27-5
A customer opens a margin account by purchasing 100 shares of ABC at $60 per share, depositing the 50% Regulation T requirement. The stock rises to $80 per share on the next day and then falls to $60 per share on the day after. The account will now show:
Answer:
Account Balance in margin account:
Investment = $6,000 (100 x $60)
The customer's account will first increase with an unrealized gain of $2,000 ($80 - 60 x 100) on the next day. It will then decrease with an unrealized loss of $2,000 ($80 - 60 x 100) on the day after. This cancels the earlier unrealized gain.
Explanation:
The customer's investment will now show a balance of $6,000 with a contra account showing a debt of $3,000 for the balance of the Regulation T margin account. According to investopedia, "A margin account is a brokerage account in which the broker lends the customer cash to purchase stocks or other financial products. The loan in the account is collateralized by the securities purchased and cash, and comes with a periodic interest rate."
The following is the adjusted trial balance of Wilson Trucking Company.
Account Title Debit Credit
Cash $8,000
Accounts receivable 17,500
Office supplies 3,000
Trucks 172,000
Accumulated
depreciation—Trucks $36,000
Land 85,000
Accounts payable 12,000
Interest payable 4,000
Long-term notes payable 53,000
Common stock 20,000
Retained earnings 155,000
Dividends 20,000
Trucking fees earned 130,000
Depreciation
expense—Trucks 23,500
Salaries expense 61,000
Office supplies expense 8,000
Repairs expense—Trucks12,000
Totals $410,000 $410,000
The Retained Earnings account balance is $155,000 at December 31, 2016.
(1) Prepare the income statement for the year ended December 31, 2017.
(2) Prepare the statement of retained earnings for the year ended December 31, 2017.
Answer:
1. Wilson Trucking Company
Income Statement
Revenues:
Trucking fees earned $130,000
Expenses:
Depreciation expense - Trucks $23,500
Salaries expense $61,000
Office Supplies expense $8,000
Repairs Expense - Trucks $12,000
Total Expenses $104,500
Net Income $25,500
2. Statement of Retained earnings
Beginning balance 1 Jan 17 $155,000
Add: Net Income $25,500
Less: Dividends $20,000
Ending Balance 31 Dec 2017 $160,500
Suppose you purchased 100 shares of stock in 2010 for $20 a share, and the price now is $30 a share. If you sell the stock, then your capital gain is:__________.A. $3,000.B. $1,500.C. $1,000.D. indeterminate without knowing the inflation rate.
Answer:
Option D is correct
Explanation:
The cost of purchasing the 100 shares was $20 per share, in other words, the total amount paid for the stock acquisition is $2,000($20*100).
However, the later shares were sold for $3,000($30*100), which means that capital gain is the difference between the sales value and the acquisition value.
Capital gain=$3,000-$2,000=$1000
The correct option is D
Accounts Receivable has a balance of $6,000, and the Allowance for Bad Debts has a credit balance of $400. The allowance method is used. What is the net realizable value of Accounts Receivable after a $150 account receivable is written off
Answer:
Net realizable value of accounts receivable is $5,600
Explanation:
Balance in allowance for uncollectible account = Balance before write off - Account written off
= $400 - $150
= $250
Net realizable value of accounts receivable is therefore;
Accounts receivable balance
$6,000
Less: Account written off
$150
Balance after write off
$5,850
Less : Allowance for uncollectible account
$250
Net realizable value
$5,600
Block transactions are transactions for more than _______ shares, and they account for about _____ percent of all trading on the NYSE. Group of answer choices 500; 10 5,000; 23 100,000; 50 10,000; 30 1,000; 5
Answer:
10,000; 30.
Explanation:
Block transactions is also known as block trade and can be defined as transactions that deals with the sales or purchases of high-volume or large amounts of securities (bond or equity).
Under block transactions, securities are usually negotiated privately and traded at an agreed price rate between the buyer and the trader. Also, block trade of a security is mostly executed by the parties outside of the open market so as to mitigate the impact on its rate.
Basically, block transactions are transactions for more than 10,000 shares, and they account for about 30 percent of all trading on the New York Stock Exchange (NYSE). Generally, a block trade as defined by the New York Stock Exchange (NYSE) is one having a total market value of $200,000 or more.
The New York Stock Exchange (NYSE) is an American stock exchange founded on the 17th of May, 1792. NYSE by virtue of its market capitalization, is the world's largest stock exchange.