Answer:
$43,872.11
Explanation:
The amount borrowed can he found by finding the present value of the annuity .
Present value is the sum of discounted cash flows.
Present value can be calculated using a financial calculator
Cash flow each year from year 1 to 4 = $10,000
I = 7%
Present value = $43,872.11
Cool Sky reports the following costing data on its product for its first year of operations.
During this first year, the company produced 42,000 units and sold 34,000 units at a price of $120 per unit.
Manufacturing costs
Direct materials per unit $48
Direct labor per unit $18
Variable overhead per unit $6
Fixed overhead for the year $420,000
Selling and administrative cost
Variable selling and administrative cost per unit $12
Fixed selling and administrative cost per year $110,000
1a. Assume the company uses absorption costing. Determine its product cost per unit.
Per unit product cost using: Absorption costing
Cost per unit
1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing.
COOL SKY
Absorption Costing Income Statement
Net income (loss)
2a. Assume the company uses variable costing. Determine its product cost per unit.
Per unit product cost using: Variable costing
Cost per unit
2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.
COOL SKY
Variable Costing Income Statement
Net income (loss)
Answer:
Cook Sky
1a. Per unit product cost using, Absorption costing :
Cost per unit
Manufacturing Costs:
Direct materials $48
Direct labor $18
Variable overhead $6
Fixed overhead $10 ($420,000/42,000)
Product cost per unit $82
1b. COOL SKY
Absorption Costing Income Statement
Sales $4,080,000 (34,000 x $120)
Cost of goods sold $2,788,000 (34,000 x $82)
Gross profit $1,292,000
Other Expenses:
Variable selling & admin.($408,000) (34,000 x $12)
Fixed selling & admin. ($110,000)
Net income (loss) $774,000
2a. Per unit product cost using, Variable costing :
Cost per unit
Manufacturing Costs:
Direct materials $48
Direct labor $18
Variable overhead $6
Product cost per unit $72
2b. COOL SKY
Variable Costing Income Statement
Sales $4,080,000 (34,000 x $120)
Cost of goods sold $2,448,000 (34,000 x $72)
Contribution $1,632,000
Other Expenses:
Manufacturing overhead ($420,000)
Variable selling & admin. ($408,000)
Fixed selling & admin. ($110,000)
Net income (loss) $694,000
Explanation:
a) Absorption costing includes all costs, including fixed costs, related to production. This implies that the cost of a finished product includes the following costs: direct materials, direct labor, variable and fixed manufacturing overhead.
b) Variable costing includes only the variable costs directly incurred in production. The cost of a finished product, therefore, includes the following costs: direct materials, direct labor, and variable manufacturing overhead.
The difference in the two is the inclusion of fixed manufacturing overhead in the absorption costing technique in order to arrive at the product cost. Whereas, in variable costing, the fixed manufacturing overhead is regarded as a period cost and not a product cost.
Another difference is that with absorption costing, you arrive at the gross profit from which period costs are deducted to obtain the net income (loss). With variable costing, you arrive at the contribution from which expenses are deducted to get the net income (loss).
Astro Mile & Co. owns vast amounts of corporate bonds. Suppose Astro Mile buys $ 1,400,000 of BitterCo bonds at face value on January 2, 2018. The BitterCo bonds pay interest at the annual rate of 8% on June 30 and December 31 and mature on December 1. Astro Mile intends to hold the investment until maturity.
Required:
a. Journalize any required 2016 entries for the bond investment.
b. How much cash interest will Astro Mile receive each year from CoteCorp?
c. How much interest revenue will Astro Mile report during 2016 on this bond investment?
Answer:
Dr bond investment $1,400,000
Cr cash $1,400,000
Cash interest is $112,000.00
Interest revenue for the year is also $ 112,000.00
Explanation:
The cash paid for the investment is $1,400,000, this would be debited to bond investment and credited to cash since it is an outflow of cash from the business.
At six-month interval, coupon receivable=$1,400,000*8%*1/2=$ 56,000.00
annual coupon receivable=$ 56,000.00 *2=$ 112,000.00
Bonita and Miller Manufacturing is trying to determine the equivalent units for conversion costs with 11400 units of ending work in process at 70% completion and 31500 physical units. There are no beginning units in the department. Conversion costs occur evenly throughout the entire production period. What are the equivalent units for conversion costs for the current period
Answer:
The equivalent units for conversion cost are 28080.
Explanation:
Firstly, we need to find our how much units are being sold
Units Sold= physical units - ending units
Units sold= 31500 - 11400 = 20100
Then we need to add units sold with percentage completion of ending units in order to find out equivalent units for conversion cost
Formula:
Equivalent units for conv. cost= units sold + (%completion of ending units)
Equivalent units for conv. cost= 20100 + ( 70% ×11400)
Equivalent units for conv. cost= 20100 + 7980
Equivalent units for conv. cost= 28080
The trial balance for a business at a given point in time typically has much more detailed information than what is depicted on the financial statements. What is the accounting concept that allows for the information from the trial balance to be condensed to what is displayed on the financial statements
Answer:
Going Concern Concept
Explanation:
The Information from a trial balance is usually shown at historic values and not market values. The financial statements also show the amounts in historic not Liquidation / market values.
Thus we say the entity is foreseen to be in operation in future thus it is a going concern. The concept applied therefore is the Going Concern Concept.
A company manufactures specialty pollution-sensing devices for the offshore oil industry. One particular device has reached maturity, and the company is considering whether to replace it with a newer model. Technologies have not changed dramatically, so the new device would have similar functionality to the existing one, but would be smaller and lighter in weight. The firm's three choices are: (1) keep the old model, (2) design a replacement device with internal resources, (3) and purchase a new design from a firm that is one of its suppliers. The market for these devices will be either "receptive" or "neutral" of the replacement model. The financial estimates are as follows: Keeping the old design will yield a profit of $6 million dollars. Designing the replacement internally will yield $10 million if the market is "receptive," but a $3 million loss if the market is "neutral." Acquiring the new design from the supplier will profit $4 million under "receptive," $1 million under "neutral." The company feels that the market has a 70 percent chance of being "receptive" and a 30 percent chance of being "neutral." Draw the appropriate decision tree. Calculate expected value for all courses of action. What action yields the highest expected value?
Answer:
designing a replacement with internal resources yields the highest expected value = $6,100,000
Explanation:
expected values:
keep the old model
expected profits = $6,000,000
design a replacement with internal resources
receptive market = $10,000,000 x 0.7 = $7,000,000
neutral market = -$3,000,000 x 0.3 = -$900,000
total expected value = $6,100,000
purchase new design
receptive market = $4,000,000 x 0.7 = $2,800,000
neutral market = $1,000,000 x 0.3 = $300,000
total expected value = $3,100,000
there is no room here to draw a proper decision tree, but it would be something like this:
⇒ keep old model ⇒ $6,000,000 in profits
sensing device ⇒ design a replacement ⇒ receptive market
$7,000,000
⇒ neutral market
-$900,000
continuing from above ⇒ expected value
$6,100,000
⇒ outside supplier ⇒ receptive market
$2,800,000
⇒ neutral market
$300,000
continuing from above ⇒ expected value
$3,100,000
Purple Hedgehog Forestry Group has generated earnings of $140,000,000. Its target capital structure consists of 60% equity and 40% debt. It plans to spend $85,000,000 on capital projects over the next year and expects to finance this investment in the same proportion as its capital structure. The company makes distributions in the form of dividends.
What will Purple Hedgehog Forestry's dividend ratio be if it follows a residual distribution policy?
a. 63.40%
b. 47.55%
c. 79.25%
d. 71.33%
Purple Hedgehog Forestry is considering using more equity and less debt in its capital Structure. Which Of these statements best describes how this will affect the firm's annual dividend, assuming that all other factors are held
constant?
a. Purple Hedgehog Forestry will pay a smaller annual dividend if it goes forward with this decision.
b. Purple Hedgehog Forestry's annual dividend will be greater if it goes forward with this decision.
Answer:
1.63.57%
2.a. Purple Hedgehog Forestry will pay a smaller annual dividend if it goes forward with this decision.
Explanation:
1. Calculation of what will Purple Hedgehog Forestry's dividend ratio be if it follows a residual distribution policy
Total the amount of Dividend paid using the residual dividend policy will be:
Total Dividend = Net Income – [Total Capital Budget x Equity Ratio]
Let plug in the formula
= $140,000,000 – [$85,000,000 x 60%]
= $140,000,000 - $51,000,000
= $89,000,000
The Expected Dividend pay-out Ratio for this year will be:
Expected Dividend Pay-out Ratio = [Total Dividend Paid / Net Income] x 100
Let plug in the formula
= [$89,000,000 / $140,000,000] x 100
= 63.57%
Therefore Purple Hedgehog Forestry Group’s dividend payout ratio will be 63.57%”
2.The statements that best describes how this will affect the firm’s annual dividend, assuming that all other factors are held constant will be
Statement-A which state that "Purple Hedgehog Forestry Group will pay a smaller annual dividend if it goes forward with this decision."
ABC Services reported the following transactions for September, 2013. A) The owner opened the business with a capital contribution of $23,500 cash. It was credited to Capital. B) The business purchased office equipment for $11,500. The business paid $2,500 down and put the balance on a note payable. C) The business paid a utility bill for $980 cash. D) The business paid $2,000 cash for September rent. E) The business had sales of $15,000 in September. Of these sales, 60% were cash sales, and the balance was credit sales. F) The business paid $9,700 cash for office furniture. What is the net income for September, 2013
Answer:
The net income for September, 2013 is $12,020
Explanation:
Net Income is calculated as Sales less Expenses.
The First Step is to record the transactions given.
Then determine the Relevant Account Balances (Affecting Income Statement).
Finally, Prepare Income Statement to get the Net Income.
Record.
A.
Cash $23,500 (debit)
Capital $23,500 (credit)
B.
Office Equipment $11,500 (debit)
Cash $2,500 (credit)
Note Payable $9,000 (credit)
C.
Utility Expenses $980 (debit)
Cash $980 (credit)
D.
Rent Expense $2,000 (debit)
Cash $2,000 (credit)
E.
Cash $9,000 (debit)
Accounts Receivable $6,000 (debit)
Sales Revenue $15,000 (credit)
F.
Office Furniture $9,700 (debit)
Cash $9,700 (credit)
Account Balances.
Sales Revenue $15,000 (credit)
Utility Expenses $980 (debit)
Rent Expense $2,000 (debit)
Income Statement for September
Sales Revenue $15,000
Less Expenses :
Utility Expenses ($980)
Rent Expense ($2,000)
Net Income / (loss) $12,020
Conclusion :
The net income for September, 2013 is $12,020
"On January 1, MM Co. borrows $360,000 cash from a bank and in return signs an 8% installment note for five annual payments of $90,164 each. 1. Prepare the journal entry to record issuance of the note. 2. For the first $90,164 annual payment at December 31, what amount goes toward interest expense
Answer:
1.Jan 01 Dr Cash 360,000
Cr Notes payable 340,000
2.Interest expense 28,800
Principal Reduction 61,364
Explanation:
MM Co.
1 . Journal entry
Since MM Co. borrows $360,000 cash on January 1 from a bank this means we have to
Debit Cash with the amounts of money he borrowed which is $360,000 and Credit Notes Payable with the same amount.
Jan 01 Dr Cash 360,000
Cr Notes payable 340,000
2. Calculation of the amount goes toward interest expense and Principal reduction
Interest expense 28,800
(360,000*8%)
Principal Reduction 61,364
(90,164-28,800)
It is likely that airplane tickets will be increased by 5% each year for the next four years. The cost of the plane ticket to Destination A at the end of the first year is $200. How much money should be placed in a savings account now to have enough money to pay for one travel per year for the next four years
Answer:
The amount to save now is = $862.03 (to 2 decimal places)
Explanation:
In order to solve this, we will compute the end-of-year amounts using the 5% increase each year. This is done as follows:
Year 1 ending = $200
Year 2:
Year 2 beginning price = $200
Note that 5% increase = 5/100 = 0.05
increase in year 2 = 5% of 200 = 0.05 × 200 = 10
Year 2 new price = 200 + 10 = $210
Year 3:
beginning price = $210
increase in year 3 = 0.05 × 210 = $10.5
Year 3 new price = 210 + 10.5 = $220.5
Year 4
beginning price = $220.5
interest in year 4 = 0.05 × 220.5 = 11.025
new price in year 4 = 220.5 + 11.025 = $231.525
Next to calculate the amount needed to pay for one travel ticket per year for the next four years, we will add the prices of the tickets each year as follows:
Total amounts needed = 200 +210 + 220.50 + 231.53 = $862.03
When reading a research report on an automobile company, a registered representative's use of fundamental analysis determines that the stock is a good investment. When attempting to determine the best time to execute orders to buy the stock, the registered representative could refer to:
Answer:
Explanation:
In this situation, the registered representative could refer to a chart showing a recent history of the market price of the stock. The chart provides all the price movements of the stock during a certain period of time as well as different time intervals. This allows the individual to point out key levels of support and resistance as well as any trend that may be occurring. These indications allow the individual to make a more educated decision on the best time to execute orders to buy the stock.
Massage Envy offers massage services on a subscription basis, so it targets consumers that desire to get multiple treatments per month. Massage Envy likely segments its market by
Answer:
C. usage rate.
Explanation:
As in the question, it is mentioned that Massage Envy offers massage services based on a subscription basis with a view to targeting the consumers that they get more or multiple treatments per month
So Massage Envy target the market segment via usage rate as it depicts the average sales per day so that they get to know how much they earned the revenue by offering multiple treatments to clients
hence, the correct option is C. usage rate
Blossom Company purchased machinery with a list price of $80000. They were given a 5% discount by the manufacturer. They paid $400 for shipping and sales tax of $4000. Blossom estimates that the machinery will have a useful life of 10 years and a residual value of $25000. If Blossom uses straight-line depreciation, annual depreciation will be
Answer:
$5,540
Explanation:
Calculation of Blossom annual depreciation using the straight-line depreciation
Annual depreciation=[List price-discount] + shipping + sales tax - residual value) ÷ 10 years
Let plug in the above formula
Annual depreciation =[($80000-$4,000)+($400+$4,000-$25,000)÷10 years ]
Annual depreciation =$76,000+$400+$4,000-$25,000÷10 years
=$55,400÷10 years
Annual depreciation =$5,540
Calculation for list price discount
5%×80,000
=$4,000
Therefore Blossom annual depreciation using the straight-line depreciation would be $5,540
Felix, Inc., which has excess capacity, received a special order for 5,000 units at a price of $15 per unit. Currently, production and sales are anticipated to be 10,000 units without considering the special order. Budget information for the current year follows. Sales $210,000 - Cost of goods sold 155,000 Gross margin 55,000 Cost of goods sold includes $30,000 of fixed manufacturing cost. If the special order is accepted, will the company's income be increased or decreased
Answer:
$12,500 increase
Explanation:
The computation of the company income increased or decreased in the case of the special order accepted is shown below:
But before that we need to determine the variable cost of goods sold which is
The Variable cost of goods sold for 10,000 units is
= Total cost of goods sold - Fixed manufacturing cost
= $155,000 - $30,000
= $125,000
Now
Variable cost of goods sold for 5,000 units is
= $125,000 × 1 ÷ 2
= $62,500
And,
Special order size = 5,000 units
Selling price per unit in the special order = $15
So, the company income increased or decreased is
Sales (5,000 units × $15) $75,000
Less Variable cost of goods sold -$62,500
Net income $12,500
Therefore the net income is increased by $12,500 and in this, the fixed cost is not relevant so we do not considered it
Cost accounting systems used by manufacturing companies are based on the: Multiple Choice Periodic inventory system. Perpetual inventory system. Finished goods inventories. Weighted average inventories. LIFO inventory system.
Answer:
Perpetual inventory system.
Explanation:
The cost accounting refers to managing the cost of the company so that the company could able to produced their goods at the lowest cost
Now in the case of a manufacturing company, various things can be calculated like - the cost of goods sold, ending work in process, etc
The perpetual inventory system refers to the system in which the inventory is updated on a regular basis while on the other hand periodic inventory system refers to the system in which the company updated their inventory counts in periodic or particular period only
So here the manufacturing company based on perpetual inventory system so that it can trace the cost in an effective manner
Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $64,700. Meg works part-time at the same university. She earns $34,000 a year. The couple does not itemize deductions. Other than salary, the Comers’ only other source of income is from the disposition of various capital assets (mostly stocks).
a.
a. What is the Comers’ tax liability for 2019 if they report the following capital gains and losses for the year?
Short-term capital gains $ 9,200
Short-term capital losses (2,200) )
Long-term capital gains 15,390
Long-term capital losses (6,390) )
b.
What is the Comers’ tax liability for 2019 if they report the following capital gains and losses for the year?
Short-term capital gains $ 1,500
Short-term capital losses 0
Long-term capital gains 10,500
Long-term capital losses (10,200) )
Answer:
Explanation:
Given that:
Matt and Meg Comer are married, file a joint tax return and do not have any children.
The total salary of Matt and Meg = $64,700 + $34,000 = $98,700
The net short capital gain = Short-term capital gains - Short-term capital losses
The net short capital gain = $9,200 - $2,200 = $7,000
The net Long term capital gains = Long-term capital gains - Long-term capital losses
The net Long term capital gains = $15,390 - $6,390 = $9000
The Adjusted gross income AGI = Total Salary + net short capital gain + net Long term capital gains
The Adjusted gross income AGI = $98,700 + $7,000 + $9000
The Adjusted gross income AGI = $114700
The Taxable income = Adjusted gross income AGI - Standard deduction
The Taxable income = $114700 - $24,400
The Taxable income = $90,300
The net taxable income = Taxable income - less preferentially taxed income
The net taxable income = $90,300 - $9000
The net taxable income = $81,300
For 2019:
Tax Liability = $9086 + ($81,300 - $78,950) × 22%
Tax Liability = $9086 + ($2,350) × 0.22
Tax Liability = $9086 + $517
Tax Liability = $9,603
The long-term capital gain for 2019 = $9,000 × 15% (since it is between 15% - 37% ordinary income tax range, it may be taxed as 15%)
The long-term capital gain for 2019 = $9,000 × 0.15
The long-term capital gain for 2019 = $1350
Therefore; the Comers’ tax liability for 2019 if they report the following capital gains and losses for the year is:
Tax Liability + The long-term capital gain for 2019
= $9,603 + $1350
= $10953
b.
The total salary of Matt and Meg = $64,700 + $34,000 = $98,700
The net short capital gain = Short-term capital gains - Short-term capital losses
The net short capital gain = $1,500 - $0 = $1,500
The net Long term capital gains = Long-term capital gains - Long-term capital losses
The net Long term capital gains = $10,500 - $10,200 = $300
The Adjusted gross income AGI = Total Salary + net short capital gain + net Long term capital gains
The Adjusted gross income AGI = $98,700 + $1,500 + $300
The Adjusted gross income AGI = $100,500
The Taxable income = Adjusted gross income AGI - Standard deduction
The Taxable income = $100500 - $24,400
The Taxable income = $76,100
The net taxable income = Taxable income - less preferentially taxed income
The net taxable income = $76,100 - $300
The net taxable income = $75,800
For 2019:
Tax Liability = $1940 + ($75,800 - $19,400) × 12%
Tax Liability = $1940 + ($56400) × 0.12
Tax Liability = $1940 + $6768
Tax Liability = $8,708
The long-term capital gain for 2019 = $3,190 × 0% (since it is in 10% - 15% ordinary income tax range)
The long-term capital gain for 2019 = $0
Therefore; the Comers’ tax liability for 2019 if they report the following capital gains and losses for the year is:
Tax Liability + The long-term capital gain for 2019
= $8,708 + $0
= $8708
A disgruntled employee of your major competitor mails top-secret information or new product samples to you. Do you begin to do a dance on your desktop or do you immediately mail the information back to your competitor
Question:
A disgruntled employee of your major competitor mails top?secret information or new product samples to you. Do you begin to do a dance on your desktop or do you immediately mail the information back to your competitor? What would you do?
a. Throw the plans or secrets away.
b. Send them to your research department for analysis.
c. Notify your competitor about what is going on.
d. Call the FBI.
Answer:
You are to Call the FBI
Explanation:
In this case, where a disgruntled employee of your major competitor mails top-secret information or new product samples to you, the right decision to make acclrding to your company's code and ethics is to contact the security agencies, which in this case is the Federal Bureau of Investigation (FBI). The Federal Bureau of Investigation would make proper investigations and take proper steps to protect your company so they(your company) won't be accused of stealing information from a competitor in time to come.
This is the best way, both ethically and legally to handle this situation.
You own a stock portfolio invested 28 percent in Stock Q, 16 percent in Stock R, 42 percent in Stock S, and 14 percent in Stock T. The betas for these four stocks are .97, 1.03, 1.43, and 1.88, respectively. What is the portfolio beta
Answer:
Beta= 1.3002
Explanation:
Giving the following information:
You own a stock portfolio invested 28 percent in Stock Q, 16 percent in Stock R, 42 percent in Stock S, and 14 percent in Stock T. The betas for these four stocks are .97, 1.03, 1.43, and 1.88, respectively.
To calculate the beta of the portfolio, we need to use the following formula:
Beta= (proportion of investment A*beta A) + (proportion of investment B*beta B) + ... + (proportion of X*bet X)
Beta= (0.28*0.97) + (0.16*1.03) + (0.42*1.43) + (0.14*1.88)
Beta= 1.3002
Wilson has a 40 percent interest in the assets and income of the CC&W Partnership, and the basis in his partnership interest is $45,000 at the beginning of 2014. During 2014, the partnership's net loss is $60,000 and Wilson's share of the loss is $24,000. Also, Wilson receives a cash distribution from the partnership of $12,000 on June 30, 2014.
a. Indicate the amount of income or loss from the partnership that should be reported by Wilson on his 2014 individual income tax return.
b. Calculate Wilson's basis in his partnership interest at the end of 2014.
Answer and Explanation:
a. A partner can report his share of the loss of partnership on his personal income tax return to the base limit during his or her partnership interest.
Its partnership interest is based on $45,000 and its share of loss of the partnership is $24,000
So W can report all of the $24,000 partnership loss on his personal income tax return.
b. W's partnership loss reported on his income tax return, and the cash distributed by the partnership to him will reduce his partnership interest base.
Now,
W's basis in his partnership interest at the end of 2014 is
= W's basis in his partnership interest - Partnership loss reported by W on his income tax return - Cash distributed to W by the partnership
= $45,000 - $24,000 - $12,000
= $9,000
A 1000 is deposited into Fund X, which earns an annual effective rate of 6%. At the end of each year, the interest earned plus an additional 100 is withdrawn from the fund. At the end of 10th year, the fund is depleted. The annual withdrawals of interest and principal are deposited in Fund Y, which earns an annual effective rate of 9%. Determine the accumulated value of Fund Y at the end of Year 10.
Answer:
The accumulated value of Fund Y at the end of Year 10 is $2,084.67.
Explanation:
Note: Find attached the excel file for the calculation of the accumulated value of Fund Y at the end of Year 10.
The accumulated value of Fund Y at the end of Year 10 is ending balance in year 10 which is in red color.
Also note the following from the attached excel file:
a) The ending balance of Fund X is 0.00 because Fund Y is depleted after Year 10.
b) The beginning balance of Fund Y and its earned interest are equal to 0.00, because no amount of money is deposite in Fund Y until after Year 1 which is the withdrawal from Fund X.
Drum buffers are:_________
A. Extra safety that is applied to a project immediately before the use of the constrained resource.
B. A constraint separating different projects that requires a common buffer.
C. A safety margin separating different projects scheduled to use the same resource.
D. Extra safety that is applied to a project immediately after the use of the constrained resource.
Answer:
A.
Explanation:
In the context of business, Drum buffers are Extra safety that is applied to a project immediately before the use of the constrained resource. This term is a planning and scheduling solution that is taken from the Theory of Constraints, which revolved around the idea that there is a limited number of scarce resources that control the overall output that can be obtained and planning accordingly is needed for safety.
Heidi Luking has discovered that several of the sites she has visited recently downloaded small filesto her computer's hard drive even though she did not request them. The files Heidi discovered areknown as crackers. True or False
Answer:
The correct answer is: False.
Explanation:
On the one hand, the "Crackers" is the name that the people with a huge knowledge in cyber security and therefore that they are the ones that mainly focus on explore methods to breach defenses from computers in order to explote the weakness of the computer system so they will be able to have control of the system.
On the other hand, what Heidi discovered is most likely to be a cybervirus that those web pages implanted in their sites in order to breach the system of the person automatically without her knowledge or autorization with the main purpose of just destroying the computer system.
When The files Heidi discovered are known as crackers the correct answer is: False. "Crackers" is the name for the people.
What is Cyber Security?
On the one hand, the "Crackers" is the name for the people with a piece of huge knowledge of cyber security, and thus that they are the ones that primarily focus on exploring methods to breach defenses from computers to explore the weakness of the computer system so they will be able to have control of the system.
In the different writing, what Heidi discovered is considered likely to be a cyber virus that those web pages entrenched in their sites to breach the system of the person automatically without her understanding or authorization with the main objective of exclusively destroying the computer system.
Find more information about Cyber Security here:
https://brainly.com/question/26520949
Lucy has just finished washing her car and is now checking its oil level. The oil dipstick shows her car’s oil is below the "Low" line. Lucy’s car must have more oil to operate well. What phase of the consumer decision-making process did Lucy just experience?
Answer:
recognition phase
Explanation:
There are 5 phases in the consumer decision-making process:
recognition: the customer realizes that he/she has an unsatisfied need or problem that must be satisfied or solved. In this case, Lucy realized that her car needs more oil and she has to purchase some. information search evaluations of alternatives purchase evaluation of decisionPaul Inc. forecasts a capital budget of $725,000. The CFO wants to maintain a target capital structure of 45% debt and 55% equity, and it also wants to pay dividends of $500,000. If the company follows the residual dividend policy, how much income must it earn, and what will its dividend payout ratio be?
Answer:
If the company follows the residual dividend policy, the income he must earn is $898,750
The dividend payout ratio will be 55.63%
Explanation:
In order to calculate the income must it earn we would have to make the following calculation:
income must it earn=55% equity+dividends
55% equity=$725,000*0.55
55% equity=$398,750
Therefore, income must it earn=$398,750+$500,000
income must it earn=$898,750
If the company follows the residual dividend policy, the income he must earn is $898,750.
To calculate the dividend payout ratio we would have to calculate the following formula:
dividend payout ratio=dividends paid/income must it earn
dividend payout ratio=$500,000/ $898,750
dividend payout ratio=55.63%
The dividend payout ratio will be 55.63%
Basic bond valuation Complex Systems has an outstanding issue of $1 comma 000-par-value bonds with a 16% coupon interest rate. The issue pays interest annually and has 11 years remaining to its maturity date. a. If bonds of similar risk are currently earning a rate of return of 9%, how much should the Complex Systems bond sell for today? b. Describe the two possible reasons why the rate on similar-risk bonds is below the coupon interest rate on the Complex Systems bond. c. If the required return were at 16% instead of 9%, what would the current value of Complex Systems' bond be? Contrast this finding with your findings in part a and discuss.
Answer:
a. Complex Systems' bond price today = $1,476.36
Explanation:
a. If bonds of similar risk are currently earning a rate of return of 9%, how much should the Complex Systems bond sell for today?
This can be calculated by adding the Present Value of Coupons and the Present Value of Par Value as follows:
Calculation of Present Value of Coupons
The present of coupons is calculated using the formula for calculating the present value of an ordinary annuity as follows:
Present value of coupons = C × [{1 - [1 ÷ (1 + r)]^n} ÷ r] …………………………………. (1)
Where;
C = Annual coupon amount = Par value * Coupon rate = $1,000 * 16% = $160
r = required rate of return or return of similar risk = 9%, or 0.09
n = number of years = 11
Substitute the values into equation (1) to have:
Present value of coupons = $160 × [{1 - [1 ÷ (1 + 0.09)]^11} ÷ 0.09] = $1,088.83
Calculation of Present Par of Value
To calculate this, we use the present value formula as follows:
Present Value of Par Value = Par value / (1 + r)^n
Since Par Value is $1000 and r and n are as already given above, we have:
Present value of Par Value = $1,000 / (1 + 0.09)^11 = $387.53
Therefore, we have:
Complex Systems' bond price today = Present value of coupons + Present value of Par Value = $1,088.83 + $387.53 = $1,476.36
b. Describe the two possible reasons why the rate on similar-risk bonds is below the coupon interest rate on the Complex Systems bond.
The following are the possible two reasons:
1. Interest may vary bust the coupon is fixed. What can cause the interest rate to vary is the bond rating by rating agency. But his will not affect the coupon rate which is fixed. When the rating is high, the interest will be low. But when the rating is low, the interest will be high. This indicates a negative relationship between the rating and the interest rate.
2. The level of demand may also influence the interest rate to change. When the demand is high, the interest will be low. But when the demand is low, the interest will be high. This also indicates a negative relationship between the demand and the interest rate.
c. If the required return were at 16% instead of 9%, what would the current value of Complex Systems' bond be? Contrast this finding with your findings in part a and discuss.
To do this, we simply change he required return to 16% (or 0.16) in part a and proceed as follows:
Present value of coupons at 16% = $160 × [{1 - [1 ÷ (1 + 0.16)]^11} ÷ 0.016] = $804.58
Present value of Par Value at 16% = $1,000 / (1 + 0.16)^11 = $195.42
Complex Systems' bond price today at 16% = $804.58 + $195.42 = $1,000.00
Comparing part c result with part a result shows that if the coupon rate is greater than the required rate of return, the bond is sold at a premium. That is, price of bond will be more than par. As it can be seen in part a, the price of bond is $1,476.36 when the coupon rate of 16% is greater than the required return of 9%.
Also, the bond will be sold at par when the coupon rate and require return are equal. This is shown in part c where the bond is sold at $1,000 when both coupon rate and required return rate are equal to 16%.
By implication, we can also infer without doing any calculation that the bond will be sold at a discount if the coupon rate is less than the required rate of return.
The purpose of the statement of cost of goods manufactured is to: A. Calculate the cost of goods transferred to finished goods inventory during the period. B. Calculate cost of goods sold. C. Calculate net income. D. Both A and B
Answer:
The correct answer is:
Calculate the cost of goods transferred to finished goods inventory during the period.(A)
Explanation:
Cost of Goods Manufactured (COGM) is the total cost of production for a company, during a period, and it is the total cost incurred in manufacturing goods and transferring goods to finished inventory.
Knowing the cost of goods manufactured is used to make managerial decisions because it tells whether the manufacturing costs is too high or too low relative to the selling price of a good, hence it can be used to adjust some components such as direct labor, direct materials, overhead etc.
Vest Industries manufactures 40,000 components per year. The manufacturing cost of the components was determined as follows: Direct materials $ 75,000 Direct labor 120,000 Variable overhead 45,000 Fixed overhead 60,000 Total $300,000 An outside supplier has offered to sell the component for $12.75. Fixed cost will remain the same if the component is purchased from an outside supplier. Vest Industries can rent its unused manufacturing facilities for $45,000 if it purchases the component from the outside supplier. What is the effect on income if Vest purchases the component from the outside supplier
Answer:
If the company buys the component, income will decrease by $225,000.
Explanation:
Giving the following information:
Units= 40,000
The manufacturing cost:
Direct materials $ 75,000
Direct labor 120,000
Variable overhead 45,000
An outside supplier has offered to sell the component for $12.75.
Vest Industries can rent its unused manufacturing facilities for $45,000.
We will take into account only the differential costs.
Make in -house:
Total cost= 75,000 + 120,000 + 45,000= $240,000
Buy:
Total cost= 40,000*12.75 - 45,000= $465,000
If the company buys the component, income will decrease by $225,000.
If the government removes a binding price floor from a market, then the price received by sellers will Group of answer choices decrease, and the quantity sold in the market will decrease decrease, and the quantity sold in the market will increase increase, and the quantity sold in the market will decrease. increase, and the quantity sold in the market will increase.
Answer:
decrease, and the quantity sold in the market will decrease decrease,
Explanation:
Price floor is set by the government or an agency of the government and it is the minimum price that a good or service must be sold.
A price floor is binding if it is set above equilibrium price.
If a binding price floor is removed, price would fall back towards equilibrium and the quantity sold would decrease.
The fall in quantity supplied is in line with the law of supply which says the higher the price, the higher the quantity supplied and the lower the price , the lower the quantity supplied.
I hope my answer helps you
Crisp Cookware's common stock is expected t opay a dividend of $1.50 a share at the end of this year; its beta is 0.6. The risk free rate is 5.6% and the market risk premium is 4%. The dividend is expected to grow at some constant rate and the stock currently sells for $50 a share. Asuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years
Answer: $57
Explanation:
The following can be deduced from the question:
The risk free rate = 5.6%
The market risk premium = 4%
The stick beta = 0.6
The required return will be:
= Risk free rate + (Beta × Market risk premium)
= 5.6% + (0.6 × 4%)
= 5.6% + 2.4%
= 8% = 0.08
Crisp Cookware's common stock is expected to pay a dividend of $1.50 a share at the end of this year, Therefore,
D1 = $1.50
The current stock price will now be:
= D1/(Required return - Growth rate)
50= 1.5/(0.08 - growth rate)
(0.08 - growth rate) = 1.5/50
(0.08 - growth rate) = 0.03
Growth rate = 0.08 - 0.03
Growth rate = 0.05 = 5%
D4 = D1 × (1+Growth rate)³
D4 = 1.5 × (1 + 0.05)³
D4 = 1.5 × (1.05)³
D4 = 1.5 × 1.1576
D4 = $1.7364
The stock price at the end of the year 3
will be:
= D4/(Required return - Growth rate)
= 1.7364/(0.08 - 0.05)
= 1.7364/0.03
= $57
The market believe that the stock price at the end of 3 years will be $57
a tractor at a cost of "$540,000". The tractor has an estimated salvage value of $60,000 and an estimated life of 8 years, or 12,000 hours of operation. The tractor was purchased on January 1, 2019 and was used 2,400 hours in 2019 and 2,200 hours in 2020. What amount will Spencer Company report as depreciation expense over the 8-year life of the equipment using straight-line depreciation
Answer:
$60,000
Explanation:
The computation of the depreciation expense using the straight line method is shown below:
= (Original cost - residual value) ÷ (useful life)
= ($540,000 - $60,000) ÷ (8 years)
= ($480,000) ÷ (8 years)
= $60,000
In this method, the depreciation is the same for all the remaining useful life
We simply used the above formula
An investor wishes to buy a new issue of U.S. Government agency bonds. You recommend that the customer purchase Federal Home Loan Bank bonds with a 20 year maturity. The new issue of Federal Home Loan Bank Bonds will be sold:
Answer: a par
Explanation:
From the question, we are informed that an investor wishes to buy a new issue of U.S. Government agency bonds and was recommend that the customer purchase Federal Home Loan Bank bonds with a 20 year maturity.
It should be noted that new issues that relate to agency securities are typically sold by a selling group which will be appointed by the agency and such groups are usually made up of broker dealers and large banks.
The group will then sell the issue to the public at par and out of the revenue that is made, a selling concession will be paid by the agency to the selling group.