Answer:
Please find the detailed answer in the explanation section
Explanation:
1. A company's financial health improves -
In this situation, The yield will decrease.
Cost of borrowing will be less expensive.
2. There is an increase in the perceived market ability of a company's bonds, so the liquidity premium decreases -
The yield decreases
The cost of borrowing money from bond markets is less expensive
3. XYZ Co.’s credit rating was downgraded from AA to BBB -
The yield will increase.
Cost of borrowing will be more expensive
4. A company uses debt to buy another company such an event is called a leveraged buyout -
The yield will increase.
Cost of borrowing will be more expensive
Winkle Corporation uses the FIFO method in its process costing system. Beginning inventory in the mixing processing center consisted of 5,000 unites, 90% complete with respect to conversion costs. Ending work in process inventory consisted of 2,000 units, 60% complete with respect to conversion costs. If 10,000 units were transferred to the next processing center during the period, how many would the equivalent units for conversion costs be?
a. 10,000 units
b. 12,200 units
c. 12,000 units
d. 6,700 units
Answer:
d. 6,700 units
Explanation:
The computation of the equivalent units for conversion cost by using the FIFO method is shown below:
= Beginning inventory units × remaining percentage + units started and completed + ending inventory units × completion percentage
= 5,000 × 10% + (10,000 - 5,000) + 2,000 × 60%
= 500 + 5,000 + 1,200
= 6,700 units
We simply applied the above formula
Adama Company incurred the following costs. Indicate to which account Adama would debit each of the costs.
Sales tax on factory
1. machinery purchased $5,000 Select the account to be debited
Equipment Prepaid
Insurance Building Land
Land Improvements
2. Painting of and lettering on
truck immediately upon purchase 700 Select the account to be debited
Land Prepaid
Insurance Equipment Building Land
Improvements
3. Installation and testing of
factory machinery 2,000 Select the account to be debited
Prepaid
Insurance Building Land Equipment Land
Improvements
4. Real estate broker’s
commission on land purchased 3,500 Select the account to be debited
Land Land Improvements Prepaid
Insurance Building Equipment
5. Insurance premium paid for
first year’s insurance on new truck 880 Select the account to be debited
Land Equipment Prepaid Insurance Land
Improvements Building
6. Cost of landscaping on
property purchased 7,200 Select the account to be debited
Equipment Land
Improvements Land Building Prepaid
Insurance
7. Cost of paving parking lot for
new building constructed 17,900 Select the account to be debited
Land
Improvements Land Building Prepaid
Insurance Equipment
8. Cost of clearing, draining,
and filling land 13,300 Select the account to be debited
Prepaid Insurance Land Land
Improvements Building Equipment
9. Architect’s fees on self-
constructed building 10,000
Answer:
1. Insurance Equipment Building Land
2.Improvements
3.Insurance Building Land Equipment
4.Land
5.Prepaid Insurance
6.Improvements
7.Improvements
8.Land
9.Insurance Building Land Equipment
Explanation:
1. Machinery purchased is a capital expenditure and is included in cost of Equipment.
2. Painting on truck is an improvement, not included in cost of truck
3. These are costs directly related in placing asset in condition of use intended by management. Include in asset cost.
4.These are costs directly related in placing asset in condition of use intended by management. Include in asset cost.
5.This is an asset and economic benefits will flow in the entity in future.
6. Landscaping costs not included in cost of property. Stand on their own as improvements
7. Paving costs not included in cost of property. Stand on their own as improvements
8.These are costs directly related in placing asset in condition of use intended by management. Include in asset cost.
9.These are costs directly related in placing asset in condition of use intended by management. Include in asset cost.
If any of the customers in the market purchase any item from the shop, it experiences an amount to be deducted, and the shopkeeper experiences an amount to get added and this is known as the debiting and crediting of the amount. The shopkeeper when purchasing any of the raw material or anything experiences the amount to be debited situation.
The classification of various materials to be debited in the respective incurred cost is attached below.
To know more about the debiting of the costs in the firm to the respective account, refer to the link below:
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An individual who is not party to the contract between a CPA and the client, but who is known by both and is intended to receive certain benefits from the contract is known as:
Answer:
Third party beneficiary.
Explanation:
This is easily seen in contracts as it is said that a third party beneficiary is a person that benefits from an agreement between two persons or a contract between two persons. This is despite the fact that this said person has no effect or was not in any way a part of the said contract.
A third party beneficiary can be denied the rights to compensation of the contract, especially when contract is not fulfilled.
Rights which makes the third party beneficiary valid and concretely a part of the contact are been attached and solidified if the said contract comes through.
The following information describes a product expected to be produced and sold by Hadley Company:selling price.......................$80 per unit
variable costs....................$32 per unit
Toatal fixed costs...............$ 630,000
Required:
(a) calculate the contribution margin in units.
(b) calculate the break-even point in units and in dollar sales.
(c) What dollar amount of sales would be necessary to achieve an income of $120,000?
Answer:
a. Contribution margin per unit is $48 per unit
b. Break-even point in units is 13,125 units; and Break-even point in dollar sales is $1,050,000
c. Dollar amount of sales to achieve $120,000 income is $1,250,000.
Explanation:
These can be determined as follows:
(a) calculate the contribution margin in units.
Contribution margin in units is the selling price per unit minus the variable cost per unit that produces incremental earning for each unit sold. This can be calculated as follows:
Contribution margin per unit = Selling price per unit - Variable cost per unit = $80 - $32 = $48 per unit
b) Calculate the break-even point in units and in dollar sales.
Break even point is the point at which there is no net loss or gain, i.e. where total revenue is equal to to cost. This can be calculated both in units and dollar sales as follows:
Break-even point in units = Total fixed costs / Contribution margin in units = $630,000 / $48 = 13,125 units
Break-even point in dollar sales = Selling price * Break-even point in units = $80 * 13,125 = $1,050,000
(c) What dollar amount of sales would be necessary to achieve an income of $120,000?
To calculate this, we first calculate the contribution margin ratio as follows:
Contribution margin ratio = Contribution margin in units / Selling price = $48 / $80 = 0.60
Therefore, we have:
Dollar amount of sales to achieve $120,000 income = (Targeted income + Total Fixed costs) / Contribution margin ratio = ($120,000 + $630,000) / 0.60 = $1,250,000.
a. The contribution margin in units is $48 per unit.
b. The break-even point in units and in dollar sales is $1,050,000.
c. The dollar amount of sales would be necessary to achieve an income of $120,000 is $1,250,000.
a. Contribution margin per unit
Contribution margin per unit = Selling price per unit - Variable cost per unit Contribution margin per unit= $80 - $32
Contribution margin per unit= $48 per unit
b. Break-even point in units and in dollar sales:
Break-even point in units = Total fixed costs / Contribution margin in units
Break-even point in units= $630,000 / $48
Break-even point in units = 13,125 units
Break-even point in dollar = Selling price × Break-even point in units
Break-even point in dollar= $80×13,125
Break-even point in dollar= $1,050,000
c. Dollar amount of sales:
Contribution margin ratio = Contribution margin in units / Selling price
Contribution margin ratio = $48 / $80
Contribution margin ratio = 0.60
Dollar amount of sales = (Targeted income + Total Fixed costs) / Contribution margin ratio
Dollar amount of sales = ($120,000 + $630,000) / 0.60
Dollar amount of sales=$750,000/0.60
Dollar amount of sales = $1,250,000
Inconclusion the contribution margin in units is $48 per unit, the break-even point in units and in dollar sales is $1,050,000 and the dollar amount of sales would be necessary to achieve an income of $120,000 is $1,250,000.
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Wildhorse Company established a petty cash fund on May 1, cashing a check for $125. The company reimbursed the fund on June 1 and July 1 with the following results. June 1: Cash in fund $3.55. Receipts: delivery expense $27.45, postage expense $36.25, and miscellaneous expense $55.60. July 1: Cash in fund $4.15. Receipts: delivery expense $18.90, entertainment expense $52.25, and miscellaneous expense $49.70. On July 10, Wildhorse increased the fund from $125 to $155. Prepare journal entries for Wildhorse Company.
Answer:
journal entries for Wildhorse Company are given below
Explanation:
Wildhorse Company established a petty cash fund on May 1,
DEBIT CREDIT
Petty cash $125
Cash $125
The company reimbursed the fund on June 1
DEBIT CREDIT
delivery expense $27.45
postage expense $36.25
miscellaneous expense $55.60
Cash under/over $2.15
Cash ($125-$3.55) $121.45
The company reimbursed the fund on July 1
DEBIT CREDIT
delivery expense $18.90
entertainment expense $52.25
miscellaneous expense $49.70
Cash ($125 - 4.15) $120.85
Wildhorse increased the fund from $125 to $155
DEBIT CREDIT
Petty cash $30
Cash $30
When unemployment is high, government policymakers might decide to do which of the following?
a. Decrease the amount of funds in the economy available for loans
b. Decrease government spending on goods and services
c. Increase government spending on goods and services
d. Raise taxes
Answer:
Option C is correct.
Explanation:
The option is C, “Increase government spending on goods and services” is correct because the spending by the government will create new employment opportunities. Therefore, this will decrease unemployment. However, if the government decreases the loan funds in the economy, decreases the spending on goods and services, and rises the taxes then it will raise unemployment in the economy.
In the case when the unemoloyment is high, the government policymakers should increase the government spending on the goods and services.
The following information should be considered:
The spending by the government developed the new employment opportunities.Due to this, the unemployment should decreased.In the case when the government reduced the loan funds so it reduced the spending on goods & services.Learn more: brainly.com/question/17429689
An investor who was not as astute as he believed invested $264,500 into an account 12 years ago. Today, that account is worth $204,000. What was the annual rate of return on this account
Answer:
-19.061%
Explanation:
interest earned= principal x time x interest rate
Interest earned = $264,500 - $204,000 = $-60,500
$-60,500 = $264,500 x 12 x interest rate
interest rate = -0.19061 = -19.061%
Morgan Company issues 10%, 20-year bonds with a par value of $760,000 that pay interest semiannually. The current market rate is 9%. The amount paid to the bondholders for each semiannual interest payment is: Multiple Choice $34,200. $380,000. $38,000. $68,400. $76,000.
Answer:
c. $38,000
Explanation:
Bond is issued at i= 10% = 0.10, n=20, m= 2, p= $760,000
The amount of interest owed to the bondholders for each semiannual interest payment is:
= $760,000 × 0.10 × 6/12
= $760,000 x 0.05
= $38,000
An action for breach of warranty generally must be brought within four years of the breach.
a. True
b. False
Answer:
i The answer is going to be a. true
20.Assume that you just graduate and get a job. You will work for 40 years and save each year before you retire. During retirement you plan to receive a pension annuity of $100,000 each year for another 40 years. How much money will you need to have at the moment you retire? How much money do you need to save every year before retirement? Assume the interest rate is always 8%. Before retirement, you deposit your saving at the end of each year. During retirement, you receive the annuity at the beginning of each year
Answer:
How much money will you need to have at the moment you retire?
$1,287,858How much money do you need to save every year before retirement?
$4,971.33Explanation:
we have to first determine the amount of money you need to finance your retirement distributions:
using the annuity due present value formula, PV = annuity payment x annuity due factor (PV, 8%, n = 40)
PV = $100,000 x 12.87858 = $1,287,858
now we must use the ordinary annuity future value formula, FV = annuity payment x annuity factor (FV, 8%, n = 40)
annuity payment = FV / annuity factor = $1,287,858 / 259.057 = $4,971.33
Boxwood Company sells blankets for $30 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1. Date Blankets Units Cost May 03 Purchase 6 $14 10 Sale 4 17 Purchase 12 $16 20 Sale 4 23 Sale 3 30 Purchase 12 $18 Assuming that the company uses the perpetual inventory system, determine the ending inventory for the month of May using the LIFO inventory cost method.
Answer:
The ending inventory for the month of May using the LIFO inventory cost method is $324.
Explanation:
LIFO
LIFO method assumes that the last goods purchased are the first ones to be issued to the final customer.
This means valuation of inventory will use the value of the earliest goods purchased.
Ending Inventory : 2 units × $14 = $28
5 units × $16 = $80
12 units × $18 = $216
Total = $324
Conclusion :
The ending inventory for the month of May using the LIFO inventory cost method is $324.
The annual interest rate on a credit card is 14.99%. If the minimum payment of $30 is made each month, how many months will it take to pay off an unpaid balance of $807.91?
Answer:
30.967 months
Explanation:
We can assume the number of months in which the credit card will be paid off to be x.
Since we are given that the unpaid balance on the credit card is $807.91 with annual interest of 14.99%
We can therefore calculate the amount of interest to be = 14.99/100 × $807.91
= $121.11
Then the total amount to be paid is
= $807.91 + $121.1
= $929.01
Also, since the minimum payment is $30 per month, x would therefore be;
= 929.01/30
= 30.967
It therefore means that the balance in the credit card will be paid off in 30.967 months.
On January 1, 2019, Brooks Inc. borrows $90,000 from a bank and signs a 5% installment note requiring four annual payments of $25,381 at the end of each year. Complete the necessary journal entry on 12/31 by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
No Date General Journal Debit Credit
1 12/31 Interest expense 4,500
Notes payable 90,000
Answer:
Brooks Inc.
Journal entries
DATE General Journal DEBIT ($) CREDIT ($)
12/31 Interest Expense 4,500.00
(90,000 x 5%)
Notes Payable (Balancing Figure) 20,881.00
Cash 25,381.00
A company with a decreasing interest expense would see what change to its times interest earned?
a) An increase
b) A decrease
c) No change
d) Cannot be determined
Answer:
a) An increase
Explanation:
The times interest earned ratio is a ratio that measures the portion of the income or earning that can be used to pay for future interest expenses. Times interest earned ratio is also known as the coverage ratio and it can be computed using the following formula:
Times interest earned ratio = EBIT / Interest expense .............. (1)
Where EBIT denotes earning before interest and tax.
From equation, it can be seen that there is a negative relationship between times interest earned and interest expense. That is, as interest expense increases, times interest earned falls. On the other hand, as interest expense falls, times interest earned increases.
Therefore, the correct option is a) An increase, that is a company with a decreasing interest expense would see an increase to its times interest earned.
g "Seidman Company manufactures and sells 30,000 units of product X per month. Each unit of product X sells for $16 and has a contribution margin of $7. If product X is discontinued, $85,000 in fixed monthly overhead costs would be eliminated and there would be no effect on the sales volume of Seidman Company's other products. If product X is discontinued, Seidman Company's monthly income before taxes should:"
Answer:
Decreased by $125,000
Explanation:
Calculation for Seidman Company's monthly income before taxes should:"
First step is to find the loss in contribution margin using this formula
Loss in contribution margin = Sales unit× contribution margin
Let plug in the formula
Loss on contribution margin=30,000 × $ 7
= ($210,000)
Second step
Fixed monthly overhead = $85,000
Monthly income before taxes =Loss in contribution margin - Fixed monthly overhead
Monthly income before taxes= ($210,000) - $85,000
Monthly income before taxes= $125,000
Thereforre in a situation where product X is discontinued, this means that Seidman Company's monthly income before taxes would get decreased by $125,000
Beginning and ending Cash account balances of Rainbow, Inc. were $14,000 and $32,000 respectively. If total cash paid out during the period was $30,000, what amount of cash was received during the period
Answer:
Cash receipts = $48,000
Explanation:
A cash budget is statement that shows the estimated cash receipts and the estimated cash payments for a forth coming accounting period. In addition, it provides information about the expected cash balance for the period to which it relates.
With help of a cash budget, a business can plan ahead for the usage of its surplus funds and how to finance its deficit cash position
Cash balance at the end = Opening cash balance + cash receipts - cash payment
Let represent the cash receipts by " y "
32,000 = 14,000 + y - 30,000
32,000 = y - 16 ,000
32,000 + 16,000 = y
48000 = y
Cash receipts = $48,000
For financial accounting purposes, what is the total amount of product costs incurred to make 24,500 units
Answer:
The product cost for 24,500 units is $497,350.
Explanation:
The reason is that the the product cost always includes all the variable production cost and specific fixed production cost. In this scenario, direct material cost, direct labor cost, variable manufacturing overhead cost are variable production cost whereas the fixed manufacturing cost is specific fixed production cost which will form part of product cost. The remainder of the cost left is period cost.
Direct materials (24,500 * $7.7 per unit) $188,650
Direct labor (24,500 * $4.7 per unit) $115,150
Variable manufacturing overhead (24,500 * $2.2 per unit) $53,900
Fixed manufacturing overhead (24,500 * $5.7 per unit) $139,650
Total product costs $497,350
Fasheh Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.50 Direct labor $ 3.90 Variable manufacturing overhead $ 1.30 Fixed manufacturing overhead $ 13.50 Fixed selling expense $ 2.25 Fixed administrative expense $ 1.80 Sales commissions $ 0.50 Variable administrative expense $ 0.45 If 10,000 units are produced, the total amount of manufacturing overhead cost is closest to:
Answer:
$134,500
Explanation:
Total manufacturing overhead = Variable overhead + Fixed overhead
Variable overhead= $1.3 * 10,000 units= $13000
Fixed overhead = $13.50 * 9000 units = $121,500
Total manufacturing overhead= $13,000+$121,500
= $134,500
As the income of bus riders increased, the wages of bus drivers increased simultaneously. How does this affect the market for bus rides (inferior good)?
Answer:
The demand curve and supply curve will shift leftwards.
Explanation:
The increase in the income of riders will decrease the number of bus rides because there is an inverse relationship between income and inferior goods. Therefore, the demand curve for bus rides will shift leftwards. Moreover, the increase in wages is an input cost, therefore, the rise in input cost will shift the supply curve leftwards.
In cell K2 enter a formula using the IF and OR functions, as well as structured references to determine if Alison Simoneau can be a supervisor
A. Tbe IF function should first determine if the staff member's Service Years is greater than 5 OR if the staff member's college graduate status is "Yes". Remember to use a structured reference to the Service Years and the College Graduate columns.
B. The function should return the text Yes if a staff member meets one or both of those criteria.
C. The function should return the text No if a staff member meets neither of those criteria. tsor and have conlelea Academic Technology training.
Answer:
Enter the following formula in a cell K2:
=IF(OR([at[College Graduate]]="Yes",[at[Service Years]]>5),"Yes","No")
Please replace "at" in the formula with its symbol.
Explanation:
The formula has an IF function which checks a condition.
There are two conditions here to be checked:
A) if the staff member's Service Years is greater than 5.
B) if the staff member's college graduate status is "Yes".
According to the given criteria this IF function should return Yes if a staff member meets one OR both of the above mentioned criteria. Otherwise the function should return No.
This means if any one of the criteria evaluates to true then the text Yes is returned. For example if staff member's Service Years is greater than 5, then function returns Yes. For instance if staff member is a college graduate which means that his college graduate status is "Yes", then the function returns Yes.
The function still returns if either of the two criteria is true. For instance if staff member's Service Years is less than 5 but staff member's college graduate status is "Yes" then the function returns Yes.
However if neither the staff member's Service Years is greater than 5 nor the staff member's college graduate status is "Yes" then the function returns No.
So we use OR function here which with IF function so that the IF function returns true if either of the two criteria is met, otherwise returns false. This takes the form:
IF(OR(Argument 1 is True, Argument 2 is True), YES if True, NO if False)
Also there is at symbol used in the formula. Square brackets are used for structured references. They make clear and easier to reference. Structure reference is used if we want to use a table name in a formula such that we used in this IF OR formula, instead of a normal cell reference. "at" is used to refer only the mentioned/current rows or cells in the table. If you do not use this at then all the columns will be selected. For example [at[Service Years]]>5 is a reference to the cell in the Service Years at the current row. But [[Service Year]] is a reference to the entire column. So only those cells are checked where the Service Year is greater than 5.
Please replace the at word in the formula with its symbol.
Corporate finance (Financial management) deals with main three types of managerial decision making problems in the context of business except:
Answer:
staffing decision making problems
Explanation:
In simple words, corporate finance relates to the branch of finance that studies how and when an organisation and individuals should incest their money in the market.
In this subject matter. the analyst takes into consideration various market factors such as interest rates, GDP etc. and by applying various tools and methods make a decision.
It particularly deals with investment decisions and asset management problems and not staffing decisions.
g Ryngard Corp's sales last year were $24,000, and its total assets were $16,000. What was its total assets turnover ratio (TATO).
Answer:
1.50
Explanation:
TATO = (net sales)/(total assets)
= (24000/16000) = 1.50
The total asset turnover ratio (TATO) for Ryngard Corp was 1.50 last year.
Pace corporation acquired 100 percent of spin company's common stock on January 1, 20X9. Balance sheet data for the two companies immediately following the acquisition follow:
Item Pace Corporation Spin Company
Cash $30,000 $25,000
Accounts Receivable 80,000 40,000
Inventory 150,000 55,000
Land 65,000 40,000
Buildings and Equipment 260,000 160,000
Less: Accumulated Depreciation (120,000) (50,000)
Investment in Spin Company Stock 150,000
Total Assets $615,000 $270,000
Accounts Payable $45,000 $33,000
Taxes Payable 20,000 8,000
Bonds Payable 200,000 100,000
Common Stock 50,000 20,000
Retained Earnings 300,000 109,000
Total Liabilities and Stockholders’ Equity $615,000 $270,000
At the date of the business combination, the book values of Spin's net assets and liabilities approximated fair value except for inventory, which had a fair value of $60,000, and land, which had a fair value of $50,000. The fair value of land for Pace Corporation was estimated at $80,000 immediately prior to the acquisition.
1. Based on the preceding information, at what amount should total land be reported in the consolidated balance sheet prepared immediately after the business combination?
a. $130,000
b. $105,000
c. $115,000
d. $120,000
2. Based on the preceding information, what amount of total assets will appear in the consolidated balance sheet prepared immediately after the business combination?
a. $756,000
b. $735,000
c. $750,000
d. $642,000
3. Based on the preceding information, what is the differential associated with the acquisition?
a. $15,000
b. $21,000
c. $6,000
d. $10,000
4. Based on the preceding information, what amount of goodwill will be reported in the consolidated balance sheet prepared immediately after the business combination?
a. $0
b. $21,000
c. $6,000
d. $15,000
5. Based on the preceding information, what amount of liabilities will be reported in the consolidated balance sheet prepared immediately after the business combination?
a. $615,000
b. $406,000
c. $300,000
d. $265,000
Answer:
Pace Corporation and Spin Company
1. Land should be reported in the consolidated balance sheet as
a. $130,000
2. Total assets:
b. $735,000
3. The differential associated with the acquisition:
b. $21,000
4. Goodwill
b. $21,000
5. Amount of liabilities in the consolidated balance sheet:
b. $406,000
Explanation:
a) Data:
Item Pace Spin
Corporation Company
Cash $30,000 $25,000
Accounts Receivable 80,000 40,000
Inventory 150,000 55,000
Land 65,000 40,000
Buildings and Equipment 260,000 160,000
Less: Accumulated Depreciation (120,000) (50,000)
Investment: Spin Company Stock 150,000
Total Assets $615,000 $270,000
Accounts Payable $45,000 $33,000
Taxes Payable 20,000 8,000
Bonds Payable 200,000 100,000
Common Stock 50,000 20,000
Retained Earnings 300,000 109,000
Total Liabilities and Stockholders’
Equity $615,000 $270,000
b) Consolidated Balance Sheets
Item Pace Spin Total
Corporation Company Group
Cash $30,000 $25,000 $55,000
Accounts Receivable 80,000 40,000 120,000
Inventory 150,000 60,000 210,000
Land 80,000 50,000 130,000
Buildings and Equipment 260,000 160,000 420,000
Less: Accumulated
Depreciation (120,000) (50,000) (170,000)
Investment:
Spin Company Stock 150,000 0
Goodwill 21,000
Total Assets $630,000 $285,000 $786,000
Accounts Payable $45,000 $33,000 $78,000
Taxes Payable 20,000 8,000 28,000
Bonds Payable 200,000 100,000 300,000
Common Stock 50,000 20,000 50,000
Retained Earnings 300,000 109,000 300,000
Assets Revaluation 15,000 15,000 30,000
Total Liabilities and Stockholders’
Equity $630,000 $285,000 $786,000
c) Differential on acquisition = investment (of subsidiary) - net assets
= $150,000 - ($270,000 - 141,000) = $21,000
The annual payment on a house is $18,000. If payments are made for 40years, how much is the house worth assuming
Answer:
The answer is $2,785,715.38
Explanation:
Annual payment(PMT) is $18,000. This periodic payment is called an annuity.
Number of years(N) for the payment is 40 years
Interest rate is 6%
So how much does the house worth after 40 years?
Using a Financial calculator:
N = 40; I/Y = 6; PMT = 18,000 CPT FV =2,785,715.38
After 40 years, the house will worth $2,785,715.38
Direct-mail questionnaires should be kept to a maximum of how many pages? A.One B.Two C.Three D.Four
Answer:
One page
Explanation:
Direct mail questionnaires should be kept to a maximum of a single page.
This is because the target audience of these mails which are the respondents will treat this like they treat regular mails and my not be disposed to answering or giving responses.
So an increased number of pages would surely further decrease the attention the questionnaire would receive from these respondents.
Thus, it is best that the questionnaire is restricted to a single page.
Complements are products or services that have a potential impact on the _________ of the products or services of that company.
Answer:
Value
Explanation:
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Miller Company has the following account balances, extracted from its multiple-step income statement for the current year.
Required:
Compute the missing amounts.
Sales $107,800
Sales Returns and Allowances?
Sales Discounts 3,200 Net Sales ?
Cost of Goods Sold 48,200 Gross Profit 51,900 Selling Expenses?
General and Administrative Expenses 10,400 Total Operating Expenses 18,200 Net Income ?
Answer:
Net Sales = $100,100
Sales Return and allowances = $4,500
Net income = $33,700
Explanation:
Cost of goods sold 48,200
Gross Profit 51,900
Net Sales 100100
Sales Return and allowances = Sales - Net sales- Sales discounts = 107800-100100-3200 = 4500
Selling Expenses = Total operating expenses - General and Administrative Expenses = 18200 - 10400 = 7800
Net income = Gross profit - Total operating expenses
=51900-18200
= 33700
Exhibit 15.1 Zorn Corporation is deciding whether to pursue a restricted or relaxed working capital investment policy. The firm's annual sales are expected to total $4,400,000, its fixed assets turnover ratio equals 4.0, and its debt and common equity are each 50% of total assets. EBIT is $150,000, the interest rate on the firm's debt is 10%, and the tax rate is 40%. If the company follows a restricted policy, its total assets turnover will be 2.5. Under a relaxed policy its total assets turnover will be 2.2. Refer to Exhibit 15.1. Assume now that the company believes that if it adopts a restricted policy, its sales will fall by 15% and EBIT will fall by 10%, but its total assets turnover, debt ratio, interest rate, and tax rate will all remain the same. In this situation, what's the difference between the projected ROEs under the restricted and relaxed policies
Answer:
difference between ROEs = 10.83% (restricted) - 9% (relaxed) = 1.83%
Explanation:
total annual sales = $4,400,000
EBIT = $150,000
net income = $150,000 x (1 - 40%) = $90,000
restricted policy:
asset turnover = 2.5
sales = $3,740,000
EBIT = $135,000
net income = $81,000
assets = $3,740,000 / 2.5 = $1,496,000
equity = $1,496,000 x 50% = $748,000
ROE = $81,000 / $748,000 = 10.83%
relaxed policy:
asset turnover = 2.2
sales = $4,400,000
EBIT = $150,000
net income = $90,000
assets = $4,400,000 / 2.2 = $2,000,000
equity = $2,000,000 x 50% = $1,000,000
ROE = $90,000 / $1,000,000 = 9%
difference between ROEs = 10.83% - 9% = 1.83%
On February 1, a customer's account balance of $2,700 was deemed to be uncollectible. What entry should be recorded on February 1 to record the write-off assuming the company uses the allowance method? Multiple Choice Debit Bad Debts Expense $2,700; credit Accounts Receivable $2,700. Debit Bad Debts Expense $2,700; credit Allowance for Doubtful Accounts $2,700. Debit Accounts Receivable $2,700; credit Allowance for Doubtful Accounts $2,700. Debit Allowance for Doubtful Accounts $2,700; credit Accounts Receivable $2,700. Debit Allowance for Doubtful Accounts $2,700; credit Bad Debts Expense $2,700.
Answer:
On February 1, a customer's account balance of $2,700 was deemed to be uncollectible.
The entry to be recorded on February 1 to record the write-off assuming the company uses the allowance method is:
Debit Allowance for Doubtful Accounts $2,700; credit Accounts Receivable $2,700.
Explanation:
Using the allowance method, every bad debt entry is first reflected in the Allowance for Doubtful Accounts before it is taken to the bad debt expense account.
The entries above reduce the Accounts Receivable account by the amount of the write-off and reduces the Allowance for Doubtful Accounts by the same amount. Any recovery of written off debt is also treated in the Allowance for Doubtful Accounts and the Accounts Receivable account in revised order. This method is unlike the direct write-off method. With the direct write-off method, the Accounts Receivable is credited with the amount of the write-off and the write-off is expensed in the Bad Debts Expense account directly.
Brian Lee is 30 years and wants to retire when he is 65. So far he has saved (1) $5,850 in an IRA account in which his money is earning 8.3 percent annually and (2) $4,320 in a money market account in which he is earning 5.25 percent annually. Brian wants to have $1 million when he retires. Starting next year, he plans to invest the same amount of money every year until he retires in a mutual fund in which he expects to earn 8.22 percent annually. How much will Brian have to invest every year to achieve his savings goal?
Answer:
he must invest $4,855.64 during each of the following 35 years
Explanation:
years until retiring = 65 - 30 = 35 periods
desired future value $1,000,000
first we must find the future value of his current investments:
$5,850 x (1 + 0.083)³⁵ = $95,312.94
$4,320 x (1 + 0.0525)³⁵ = $25,897.47
total future value = $121,210.41
this means that he needs to save $1,000,000 - $121,210.41 = $878,789.59 more by the time he reaches 65 years of age
we need to use the formula to calculate future value of an annuity:
FV = payment x annuity factor (FV annuity, 8.22%, 35 periods)
FV = $878,789.59 annuity factor (FV annuity, 8.22%, 35 periods) = 180.98322$878,789.59 = payment x 180.98322
payment = $878,789.59 / 180.98322 = $4,855.64
he must invest $4,855.64 during each of the following 35 years