Answer: e)5% and $80,000
Explanation:
$320,000 was generated by the salespeople in this territory.
This territory comprises 10% of a $64 million market.
Territory comprises of = 10% * 64,000,000 = $6,400,000
Their market share is therefore;
= [tex]\frac{320,000}{6,400,000}[/tex] * 100%
= 5%
Four people made sales of $320,000.
Their productivity = [tex]\frac{320,000}{4}[/tex]
= $80,000
2. Why is defining activities a process of project schedule management instead of project scope management
Answer:
Explanation:
Project schedule management is the allocation of timeframe to the task s to be done for a project to be successful while project scope management show the work that needs to be done.
Defining activities is a process of project schedule management, because it simply concentrates on how and when a task will be carried out while in project scope management l, the focus is on the work that will be performed on a project.
CDB stock is currently priced at $80. The company will pay a dividend of $4.57 next year and investors require a return of 10.8 percent on similar stocks. What is the dividend growth rate on this stock
Answer:
The answer is 5.09%
Explanation:
The model used in this question is the Dividend Discount Model and it is one of the methods used in determining the price of stock. Here, the price of stock had already been determined. We are looking for one of the variables (growth rate) used in determining the price.
The formula for determining price of stock is:
Po = D1/r - g
Where Po is the price of stock
D1 is the dividend for next year
r is the rate of return
g is the dividend growth rate
$80 = $4.57/0.108 - g
Cross multiply:
8.64 - 80g = 4.57
80g = 8.64 - 4.57
80g = 4.07
g = 4.07/80
g =0.05088
g = 5.09%
Ken works in a U.S. based pharmaceutical company that sells antibiotics at a low cost to several African countries. He later learns that most of these drugs are expired antibiotics that have been repackaged by the company. Ken immediately informs one of his friends, a federal agent, regarding his company’s illegal activities. Which of the following statements is true of the given scenario?A) There are no implications because the shelf-life of pharmaceuticals is typically much longer than as dated.B) Ken’s constitutional right to freedom of speech would protect him from any form of retaliation by his employer.C) Ken would receive no protection since no comprehensive whistle-blowing law protects the right to free speech.D) Ken would be protected by law from retaliation by his employer.
Answer: D) Ken would be protected by law from retaliation by his employer.
Explanation:
Ken would be protected from any retaliation from his employer by the Sarbanes-Oxley Act under section §1514A of the act that protects Whistleblowers.
The act directly prohibits the discharging, demotion, suspension, harassment, or in any other type discriminate against a a whistleblower.
Ken in his actions acted as a Whistleblower and as such would be afforded due protection by the law.
Weatherwear estimates that every unit sold and returned due to defect costs the company $200 in profits. Approximately what would Weatherwear’s total profits have been in Year 5 if all units sold and returned due to defect had been eliminated?
Answer: С. $9.5 million
Explanation:
The units that were sold and later returned due to defect in Year 5 total;
= 688 + 124 + 536 + 28 + 101 + 8 + 206 + 28 + 120 + 1,050 + 30
= 2,919 units were sold and later returned
Each unit costs the company $200 in profits so;
= 2,919 * 200
= $583,800
Weatherwear made a total profit of $8.9 million in Year 5.
If the defective units had been eliminated then the loss as a result of the units would have been added to the profits as;
= 8,900,000 + 583,800
= $9,483,800
= $9.5 million
Costs that remain constant in total dollar amount as the level of activity changes are called Group of answer choices
Answer: Fixed Costs
Explanation:
Rodgers Company gathered the following reconciling information in preparing its May bank reconciliation. Calculate the adjusted cash balance per books on May 31. Cash balance per books, 5/31 $5,400 Deposits in transit 375 Notes receivable and interest collected by bank 650 Bank charge for check printing 40 Outstanding checks 2,400 NSF check 140
Answer:
$5,870
Explanation:
Preparation for Rodgers Company Bank Reconciliation Statement
Cash balance per books, 5/31 $5,400
Add :Notes receivable and interest collected by bank $650
Total $6,050
Less: Bank charge for check printing ($40)
NSF check ($140)
Adjusted Cash Balance $5,870
Therefore the Adjusted Cash Book for Rodgers Company Bank Reconciliation Statement will be $5,870
In a company that employs continuous budgeting on a quarterly basis and has an accounting period that ends December 31 of each year, what period would the first revision and update to the January through December 2017 budget cover
Answer: April 1, 2017 through March 31, 2018.
Explanation:
The company employs continuous budgeting on a quarterly basis. This means that they make budgets for the year in quarters and move with those quarters.
The first revision therefore for the year 2017 will happen on the first day of the second quarter which is April 1. On this date the first quarter will be removed from the budget because it has been passed. However, since the budget always has to be in total of a year, another quarter is included which will be the next quarter on the calendar, the January 1 2018 to the March 31st 2018 quarter.
The period will thus cover April 1, 2017 through March 31, 2018.
Obama drives up miles-per-gallon requirements Emissions from all new vehicles must be cut from 354 grams to 250 grams. To meet this new standard, the price of a new vehicle will rise by $1,300. Source: USA Today, May 20, 2009 What is the opportunity cost of reducing the emission level by 1 gram?
Answer:
$12.5 per gram
Explanation:
Opportunity cost is the cost which is:
Future related costCash flow in natureIncremental Cost or DifferentialIn simple words, opportunity cost is the benefit lost due to given up another best alternative.
To reduce the pollution level from 354 to 250 gram, the price of new vehicle will increase by $1300.
Hence
The increase in price per gram = $1,300 / (354 - 250) = $12.5 per gram
This is the opportunity cost per gram increase in Carbon dioxide emission which the companies will have to bear if they don't opt to environmental free vehicles.
Which is an example of an electronic storefront?
O A. A hair salon
B. An online bidding service
C. A taco stand
D. A pet store
Answer:
B......................
An online bidding service is an example of an electronic storefront. Hence, option B is correct.
What is meant by electronic storefront?For business owners who want to host a website that promotes their products and services and enables for online sales from clients, an electronic storefront is an eCommerce alternative.
Three of the greatest examples of contemporary companies are Amazon, J. Crew, and Etsy. They all employ a headless CMS, a pricing and promotions engine, and a custom search engine.
With a headless CMS like fabric XM, retailers can instantly update and modify their shop. A platform-based online shopping centre that houses a variety of online shops. With the use of the internet, all transactions—from choosing products to purchasing and selling goods and services—can be completed.
Thus, option B is correct.
For more details about electronic storefront, click here:
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Several years after reengineering its production process, King Corporation hired a new controller, Christine Erickson. She developed an ABC system very similar to the one used by King's chief rival. Part of the reason Erickson developed the ABC system was because King's profits had been declining, even though the company had shifted its product mix toward the product that had appeared most profitable under the old system. Before „ adopting the new ABC system, the company had used a plantwide overhead rate, based on direct labor hours developed years ago. For the upcoming year, King's budgeted ABC manufacturing overhead allocation rates are as follows:
Activity Allocation Base Activity Cost allocation rate
Materials handling Number of parts $4.00 per part
Machine setup Number of setups $375.00 per setup
Insertion of parts Number of parts $28.00 per part
Finishing Finishing direct labor hours $54.00 per hour
The number of parts is now a feasible allocation base because King recently purchased bar-coding technology. King produces two wheel models: Standard and Deluxe Budgeted data for the upcoming year are as follows:
Standard Delux
Parts per wheel 8 10
Setups per 1,000 wheels 20 20
Finishing direct labor hours per wheel 2 3.5
Total direct labor hours per wheel 2.6 3.4
The company's managers expect to produce 1,000 units of each model during the year.
Required:
a. Compute the total budgeted manufacturing overhead cost for the upcoming year.
b. Compute the manufacturing overhead cost per wheel of each model using ABC.
c. Compute the company's traditional plantwide overhead rate. Use this rate to determine the manufacturing overhead cost per wheel under the traditional system.
Answer:
King Corporation
a. Computation of total budgeted manufacturing overhead cost:
Activities Standard Deluxe Total
Materials handling (number of parts):
Standard = 8 x $4 x 1,000 $32,000
Deluxe = 10 x $4 x 1,000 $40,000 $72,000
Machine setup (number of parts):
= 20 x $375 $7,500 $7,500 $15,000
Insertion of parts (number of parts):
Standard = 8 x $28 x 1,000 $224,000
Deluxe = 10 x $28 x 1,000 $280,000 $504,000
Finishing (direct labor hours):
Standard = 2 x $54 x 1,000 $108,000
Deluxe = 3.5 x $54 x 1,000 $189,000 $297,000
Total $371,500 $516,500 $888,000
b. Computation of the manufacturing overhead cost per wheel of each model using ABC:
Standards = $371,500/1,000 = $371.50
Deluxe = $516,500/1,000 = $516.50
c. Computation of the company's traditional plantwide overhead rate to determine manufacturing overhead cost per wheel:
Overhead rate = $888,000/6,000 = $148
Manufacturing overhead cost per wheel:
Standard = $148 x 2.6 = $384.80
Deluxe = $148 x 3.4 = $503.20
Explanation:
a) Calculations:
Total overhead cost = $888,000
Allocation based on total direct labor hours per wheel
Plantwide overhead rate:
Total labor hours:
Standard 2.6 x 1,000 = 2,600 hours
Deluxe 3.4 x 1,000 = 3,400 hours
Total labor hours = 6,000 (2,600 + 3,400)
= $888,000/6,000 = $148 per direct hour
b) According to wikipedia.com, "Activity-based costing is a costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each. This model assigns more indirect costs into direct costs compared to conventional costing."
Keidis Industries will pay a dividend of $5.15, $6.25, and $7.45 per share for each of the next three years, respectively. In four years, you believe that the company will be acquired for $69.00 per share. The return on similar stocks is 11.4 percent. What is the current stock price
Answer:
The answer is $59.85
Explanation:
This question will be solved using the Dividend Discount Model. It is one of the valuation methods used in valuing price of Equity/stock.
Po = D1 + (1 + r)^n + D2 + (1 + r)^n + D2 + (1 + r)^n + CF4 /(1 + r)^n
Po is the current worth of stocks
D1, D2, D3 is the dividend paid in year 1, 2 and 3
CF4 is the price of the company in year 4
r is the discount rate
n is the number of years
$5.15 /1.114^1 + $6.25 /1.114^2 +$7.45/1.114^3 + $69/1.114^4
$4.62 + $5.04 + $5.39 + $44.80
Current price of the stock = $59.85
. Business Source Premier (EBSCO) and Lexis Nexis Academic are examples of research ________. a. periodicals b. indexes c. databases d. reports
Answer:
C.
Explanation:
These are all research databases
The market basket approach is intended to isolate changes in consumption level by holding constant the cost of goods and services purchased in two or more periods of interest.
Answer:
The market basket approach is intended to isolate changes in price level by holding constant the quantity of goods and services purchased in two or more periods of interest.
The Market Basket Approach is a method of measuring price changes in the Economy and is usually used to track changes in an individual market segment. It works by constantly buying a certain amount of goods and services overtime. The changes in price for those exact same goods will give an indication of just how much price is changing by in the Economy.
The Consumer Price Index (CPI) is a type of CPI.
In calculating a predetermined overhead rate, a recent trend in automated manufacturing operations is to choose an activity base related to
Answer: c. machine hours.
Explanation:
In reference to Automated Operations, the Activity base that is usually used to in determining a pre-determined overhead rate are Machine hours.
It is standard practice to relate overhead to the Direct Labor involved in the production of a commodity and since in this case the direct Labor mostly consists of Machines (Automated) then it is best to relate activities to the Machine hours involved instead.
Classical economists contend that official measures of unemployment: Multiple Choice understate the problem due to the existence of discouraged workers. overstate the problem because most unemployment is voluntary. understate the problem due to involuntary part-time employment. overstate the problem because most unemployment is cyclical.
Answer: overstate the problem because most unemployment is voluntary.
Explanation:
Unemployment is a term that is used to refer to individuals who are looking for job but can not find a job.
Classical economists contend that official measures of unemployment
overstate the problem because most unemployment is voluntary.
According to the Classical economists, there is increase in employment because those seeking employment do not want to work for lower wages but will rather wait for high paying jobs and this therefore leads to overstating of the unemployment rate.
E6-23 (similar to) Aunt Betty Bakery reported net sales revenue of $ 59 comma 000 and cost of goods sold of $ 17 comma 000. Compute Aunt Betty's correct gross profit if the company made either of the following independent accounting errors. a. Ending merchandise inventory is overstated by $ 4 comma 000. b. Ending merchandise inventory is understated by $ 4 comma 000.
Answer:
a. Ending merchandise inventory is overstated by $4,000.
net sales revenue of $59,000
cost of goods sold of $17,000 + $4,000 = $21,000
gross profit = $38,000
Since ending inventory was overstated, it means that COGS were understated.
b. Ending merchandise inventory is understated by $4,000.
net sales revenue of $59,000
cost of goods sold of $17,000 - $4,000 = $13,000
gross profit = $46,000
Since ending inventory was understated, it means that COGS were overstated.
You have just won the lottery and will receive a lump sum payment of $22.93 million after taxes. Instead of immediately spending your money, you plan to deposit all of the money into an account that will earn 5.11 percent. If you make equal annual withdrawals for the next 35 years, how much can you withdraw each year starting exactly one year from now
Answer:
The amount you can withdraw each year is $1,419,926
Explanation:
In order to calculate the amount you can withdraw each year starting exactly one year from now we would have to make the following calculation:
amount you can withdraw each year=r*PV/1-(1+r)∧-n
According to the given we have the following:
PV=$22,930,000
r=5.11%
n=35
Therefore, amount you can withdraw each year=5.11%*$22,930,000/1-(1+5.11%)∧-35
amount you can withdraw each year=$1,171,723/0.8252
amount you can withdraw each year=$1,419,926
The amount you can withdraw each year is $1,419,926
Brussels Enterprises issues bonds at par dated January 1, 2019, that have a $2,100,000 par value, mature in four years, and pay 7% interest semiannually on June 30 and December 31. 1. Record the entry for the issuance of bonds for cash on January 1. 2. Record the entry for the first semiannual interest payment and the second semiannual interest payment. 3. Record the entry for the maturity of the bonds on December 31, 2022 (assume semiannual interest is already recorded)
Answer:
1.
1 Jan 2019
Cash 2100000 Dr
Bonds Payable 2100000 Cr
2.
30 June 2019
Interest expense 73500 Dr
Cash 73500 Cr
31 Dec 2019
Interest expense 73500 Dr
Cash 73500 Cr
3.
31 Dec 2022
Bonds Payable 2100000 Dr
Cash 2100000 Cr
Explanation:
1.
The bonds are assumed to be issued at par value as the market interest rate is not given and is assumed to be the same as the interest rate on bonds of 7%. The issuance of bonds on par is recorded as a debit to the cash received against the bonds and a credit to the bonds payable account.
2.
The semi annual interest payment on bond is,
Bond interest-semi annual = 2100000 * 0.07 * 6/12 = 73500
The interest rate given is the annual interest rate of 7%. That is why we multiply it with 6/12 to get the semi annual interest.
3.
The disposal of bonds will be a reversal of the issuance entry. The bonds payable will be debited by the par value amount and the cash will be credited.
A $120 temporary difference existed for the Orland Company, caused by accelerated tax depreciation on 12/31/17. The difference will reverse evenly over the next three years. Tax Rates are 30% in 2017, 25% in 2018, and 20% in 2019 and beyond. Pretax book income in 2017 is $1,000. What is 12/31/17 Income Tax Payable?
Answer: $252
Explanation:
The temporary tax difference exists because the company was depreciating assets at a rate different from that of the Tax authority. As such, the difference will reverse over 3 years but the difference will need to be accounted for in current 2017 income to ascertain how much is to be paid as tax.
Taxable Income = 1,000 - 120
= $840
Income Tax Payable = 840 * 30%
= $252
Chang Industries has 2,000 defective units of product that have already cost $14 each to produce. A salvage company will purchase the defective units as they are for $5 each. Chang's production manager reports that the defects can be corrected for $6 per unit, enabling them to be sold at their regular market price of $21. The incremental income or loss on reworking the units is:
Answer:
$20,000 income
Explanation:
Computation
Particulars Amount
Sale Value of corrected product= $42,000.00
(2,000 * 21)
Less : Costs of Correction = ($12,000.00)
(2000 * 6)
Less : Opportunity costs - Salvage Value Lost = ($10,000.00)
(2,000 * 5)
Incremental Revenue= $20,000.00
Webby Inc. is a web development company. Webby’s monthly production function for developing websites is given in the table below. Webby pays $4,000 a month in rent for office space and equipment. It pays each programmer $3,000 a month. There are no other production costs. Fill in the table of production costs.
Answer and Explanation:
The computation of the filling of the given table for the production cost is shown in the attachment below:
As we know that
Total cost = Fixed cost + variable cost
Average fixed cost = fixed cost ÷ websites
Average Variable cost = Variable cost ÷ websites
Therefore the average total cost is
= Average fixed cost + average variable cost
The marginal cost is
= Change in total cost ÷ change in quantity
These formulas are used to complete the table as given below.
Absorption and Variable Costing Comparisons: Production Equals Sales Assume that Smuckers manufactures and sells 30,000 cases of peanut butter each quarter. The following data are available for the third quarter of 2017. Total fixed manufacturing overhead $120,000 Fixed selling and administrative 20,000 Sales price per case 34 Direct materials per case 16 Direct labor per case 7 Variable manufacturing overhead per case 3 Required a. Compute the cost per case under both absorption costing and variable costing. Absorption $Answer Variable $Answer b. Compute net income under both absorption costing and variable costing. Do not use a negative sign with your answers. SMUCKERS Absorption Costing Income Statement For the Third Quarter of 2017 Sales Answer Answer Answer Answer Answer Answer Answer Net income Answer SMUCKERS Variable Costing Income Statement For the Third Quarter of 2017 Sales Answer Answer Answer Answer Answer Fixed expenses: Answer Answer Selling and administrative Answer Answer Net income Answer
Answer:
a:Total Variable Costs $26
a:Total Manufacturing Costs = $ 30
b:Net Income Variable Costing $100,000
b: Net Income Absorption Costing $ 100,000
Explanation:
Smuckers Manufacturers
Costs per case under Variable Costing
Direct materials per case 16
Direct labor per case 7
Variable manufacturing overhead per case 3
Total Variable Costs $26
Costs per case under Absorption Costing
Direct materials (30,000*16) 480,000
Direct labor (30,000*7) 210,000
Variable manufacturing overhead (30,000*3) 90,000
Total Variable Costs 780,000
Total fixed manufacturing overhead $120,000
Total Manufacturing Costs $ 900,000
Total Manufacturing Costs per Case= $ 900,000/ 30,000= $ 30
The difference between the variable and absorption costing is that the product costs include variable and fixed costs in absorption costing. But in variable costing the product costs include only variable costs.
SMUCKERS
Variable Costing Income Statement
For the Third Quarter of 2017
Sales (30,000*34) 1020,000
Direct materials (30,000*16) 480,000
Direct labor (30,000*7) 210,000
Variable manufacturing overhead (30,000*3) 90,000
Total Variable Costs 780,000
Contribution Margin 240,000
Fixed Expenses 140,000
Total fixed manufacturing overhead $120,000
Fixed selling and administrative 20,000
Net Income 100,000
In this case the net income under both variable and absorption costing does not change because the units produced are units sold. No cost is charged to ending inventory under absorption costing.
SMUCKERS
Absorption Costing Income Statement
For the Third Quarter of 2017
Sales (30,000*34) 1020,000
Direct materials (30,000*16) 480,000
Direct labor (30,000*7) 210,000
Variable manufacturing overhead (30,000*3) 90,000
Total fixed manufacturing overhead $120,000
Total Manufacturing Costs 900,000
Gross Profit 120,000
Fixed Expenses 20,000
Fixed selling and administrative 20,000
Net Income 100,000
How much would you need to deposit in an account now in order to have $4000 in the account in 5 years? Assume the account earns 3% interest compounded monthly.
Answer:
PV= $3,443.48
Explanation:
Giving the following information:
Future value= $4,000
Interest rate= 0.03/12= 0.0025
Number of months= 5*12= 60
To calculate the initial investment required, we need to use the following formula:
PV= FV/(1+i)^n
PV= 4,000/(1.0025^60)
PV= $3,443.48
Tom and Suri decide to take a worldwide cruise. To do so, they need to save $15,000. They plan to invest $2,500 at the end of each year for the next six years to earn 9% compounded annually. Calculate the future value of the investment. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answer to 2 decimal places.)
Answer: $18,808.25
Explanation:
There is a constant cashflow of $2,500 making this an annuity.
The future value of the $2,500 paid every year for 6 years at 9% will be;
Future value of Annuity = 2,500 * Future Value of Annuity factor, 6 periods, 9%) (refer to attached table)
= 2,500 * 7.5233
= $18,808.25
The future value of the amount is more than the amount they would require.
McHale Company does business in two customer segments, Retail and Wholesale. The following annual revenue information was determined from the accounting system's invoice information:
20Y5
Retail $249,570
Wholesale $366,685
Total Revenue $616,255
20Y4
Retail $265,500
Wholesale $324,500
Total Revenue $590,000
Prepare a horizontal analysis of the segments. Round percentages to one decimal place. Enter negative values as negative numbers
Answer:
McHale Company
Horizontal Analysis of the segments
For the years 20Y4 and 20Y5
20Y5 20Y4 Difference amount Difference Percent
Retail $249,570 $265,500 $15,930 6.0%
Wholesale $366,685 $324,500 $42,185 13.0%
Total revenue $616,255 $590,000 $58,115 3.85%
Difference Percent Working
Retail= $15,930 / $265,500 * 100 = 6%
Wholesales = $42,185 / $324,500 * 100 = 13%
Total revenue = $58,115 / $590,000 * 100 = 3.85%
A customer buys 100 shares of ABC stock at $44 and sells 1 ABC Jan 45 Call at $5. Subsequently, the market price of ABC goes to $59 and the call contract is exercised. The customer has a:
Answer:
loss = $1,000
Explanation:
the customer will receive $5 (call price) + $44 (call price) = $49 for every share that he/she owns.
since the market price was $59, then the customer lost $59 - $49 = $10 for every share that he/she owned, resulting in a total loss = $10 per share x 100 shares = $1,000
A call option gives the buyer the option to purchase a stock at a set price during a specific time frame.
Raven Corporation owns three machines that it uses in its business. It no longer needs two of these machines and is considering distributing them to its two shareholders as a property dividend. All three machines have a fair market value of $20,000 each. Their basis is as follows: Machine A, $27,000; Machine B, $20,000; and Machine C, $12,000. The corporation has asked you for advice.
A. If Raven distributes Machine A, the result will be a_______loss of $_______.
B. If Raven distributes Machine B, the result will be_______of $______.
C. If Raven distributes Machine C, the result will be a______of $______.
D. Therefore, to________on Machine A, Raven should consider______Machine A. Raven should consider distributing Machine B because there will be______on the distribution. To______on Machine C, Raven should consider_______Machine C.
Answer:
A.If Raven distributes Machine A, the result will be a NONDEDUCTIBLE LOSS of $7,000
B. If Raven distributes Machine B, the result will be NO GAIN OR LOSS OF $0
C. If Raven distributes Machine C, the result will be a TAXABLE GAIN of $8,000
D.Therefore to PRESERVE THE LOSS on Machine A, Raven should consider SELLING Machine A. Raven should consider distributing Machine B because there will be NO RECOGNIZED GAIN OR LOSS on the distribution. To AVOID RECOGNIZING THE GAIN on Machine C, Raven should consider NEITHER SELLING NOR DISTRIBUTING Machine C
Explanation:
A. If Raven distributes Machine A, the result will be a NONDEDUCTIBLE LOSS of $7,000
Calculation as
(20,000 – 27,000) =-$7,000
B. If Raven distributes Machine B, the result will be NO GAIN OR LOSS OF $0
Calculated as :
(20,000-20,000)=$0
C. If Raven distributes Machine C, the result will be a TAXABLE GAIN of $8,000
Calculated as:
(20,000-12,000)=$8,000
D.Therefore to PRESERVE THE LOSS on Machine A, Raven should consider SELLING Machine A. Raven should consider distributing Machine B because there will be NO RECOGNIZED GAIN OR LOSS on the distribution. To AVOID RECOGNIZING THE GAIN on Machine C, Raven should consider NEITHER SELLING NOR DISTRIBUTING Machine C
Question 3
When a court hears a breach of contract dispute, its job is to:
On June 1, 2021, Duncan Inc. purchased equipment for $74,000. The equipment
had an estimated life of 10 years, an estimated residual value of $8,000,
and was expected to be used to produce 120,000 units over its life. During
2021, the equipment was used to produce 11,000 units and during 2022 it was
used to produce 19,000 units.
Assume the company employs the units of production method of depreciation.
Calculate the amount of accumulated depreciation on the equipment shown in
the company's December 31, 2022 balance sheet.
Answer:
The amount of accumulated depreciation on the equipment shown in
the company's December 31, 2022 balance sheet is $16,500.
Explanation:
Depreciation Expense (Units of Production) = (Cost - Residual Value) × (Period`s Production / Total Estimated Production)
2021.
Depreciation Expense = ($74,000 - $8,000) × ( 11,000 units / 120,000 units )
= $6,050
2022
Depreciation Expense = ($74,000 - $8,000) × ( 19,000 units / 120,000 units )
= $10,450
Accumulated Depreciation - December 31, 2022
2021 = $6,050
2022 = $10,450
Total = $16,500
Super Carpeting Inc. (SCI) just paid a dividend (D₀) of $3.12 per share, and its annual dividend is expected to grow at a constant rate (g) of 6.50% per year. If the required return (r s ) on SCI’s stock is 16.25%, then the intrinsic value of SCI’s shares is
Answer:
Intrinsic Value = $33.23
Explanation:
The intrinsic value of a stock using the dividend valuation model is the present value of the the future dividend expected from the stock discounted at the required rate of return.
This model is represented as follows
D(1+g)/(r-g) = P
Price, D- dividend payable in now, ke- required rate of return, g- growth rate
D- 3.12 , g-6.50% r-6.25%
Intrinsic value = (3.12× 1.065)/(0.1625-0.065)= $33.228
Intrinsic Value = $33.23