Determine the estimate of the mean when the process is in control.Assuming the process standard deviation is .50 and the mean of the process is the estimate calculated in Question 1, determine the Upper Control Limit (UCL) and the Lower Control Limit (LCL) for the manufacturing process.Explain the results to the vice-president of the mattress manufacturer focusing on whether, based on the results, the process is in or out of control.
Answers
The question is incomplete! Complete question along with answer and step by step explanation is provided below.
Question:
A local mattress manufacturer wants to know if its manufacturing process is in or out of control and has hired you, a statistics expert in the field, to analyze its process. Specifically, the business has run 20 random samples of size 5 over the past month and has determined the mean of each sample.
95.72 95.44 95.4 95.5 95.56 95.72 95.6 95.24 95.46 95.44 95.8 95.2 94.82 95.78 95.18 95.32 95.08 95.22 95.04 95.48
a. Determine the estimate of the mean when the process is in control.
b. Assuming the process standard deviation is .50 and the mean of the process is the estimate calculated in Question 1, determine the Upper Control Limit (UCL) and the Lower Control Limit (LCL) for the manufacturing process.
c. Explain the results to the vice-president of the mattress manufacturer focusing on whether, based on the results, the process is in or out of control.
Answer:
[tex]Mean = \bar{x} = 95.4[/tex]
[tex](LCL, \: UCL) = (94.73, \: 96.07)[/tex]
The mean of the 20 random samples of size 5 over the past month lies between the obtained control limit of (94.73, 96.07) therefore, the process is in control.
Explanation:
a. Determine the estimate of the mean when the process is in control.
The mean is given by
[tex]Mean = \bar{x} = \frac{\sum x}{n}[/tex]
Where n = 20 samples
Using Excel,
=AVERAGE(number1, number2,....)
The mean is found to be
[tex]Mean = \bar{x} = 95.4[/tex]
b. Assuming the process standard deviation is .50 and the mean of the process is the estimate calculated in Question 1, determine the Upper Control Limit (UCL) and the Lower Control Limit (LCL) for the manufacturing process.
The Upper Control Limit (UCL) is given by
[tex]$ UCL = \bar{x} + \frac{3 \cdot s}{\sqrt{n} } $[/tex]
Where [tex]\bar{x}[/tex] is the mean, s is the standard deviation and n is the size of random samples that is 5 (not 20)
[tex]UCL = 95.4 + \frac{3 \times 0.50}{\sqrt{5} } \\\\UCL = 95.4 + 0.671 \\\\UCL = 96.07[/tex]
The Lower Control Limit (UCL) is given by
[tex]$ LCL = \bar{x} - \frac{3 \cdot s}{\sqrt{n} } $[/tex]
[tex]LCL = 95.4 - \frac{3 \times 0.50}{\sqrt{5} } \\\\LCL = 95.4 - 0.671 \\\\LCL = 94.73[/tex]
So the control limits are
[tex](LCL, \: UCL) = (94.73, \: 96.07)[/tex]
c. Explain the results to the vice-president of the mattress manufacturer focusing on whether, based on the results, the process is in or out of control.
The process is in control based on the obtained results.
The mean of the 20 random samples of size 5 over the past month lies between the obtained control limit of (94.73, 96.07) therefore, the process is in control.
Related Questions
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A truck costing $80,000 has an expected life of 8 years
Required:
c) Prepare a depreciation schedule using the reducing balance method? (assuming the rate is 1.5 times the straight-line rate)
Answers
Answer:
Rate is 1.5 times the straight line depreciation rate which is;
= [tex]\frac{80,000}{8}[/tex]
= $10,000 per year
Rate = [tex]\frac{10,000}{80,000}[/tex] * 100%
=12.5%
Reducing balance rate = 12.5% * 1.5
= 18.75%
The Depreciation Schedule would be;
Year Beginning Book Value Depreciation Expense Accumulated Depreciation Book Value
1 $80,000 80,000*18.75% = $15,000 $15,000 $65,000
2 $65,000 65,000 * 18.75% = $12,1875.50 $27,187.50 $52,812.50
3 $52,812.50 52,812.5 *18.75% = $9,902.34 $37,187.84 $42,910.16
4 $42,910.16 42,910.16 * 18.75% = $8,045.66 $45,233.50 $34,766.50
5 $34,766.50 34,766.50 * 0.1875 = 6,518.72 $51,752.22 $28,247.78
6 $28,247.78 28,247.78 * 0.1875= $5,296.45 $57,048.67 $22,951.33
7 $22,951.33 22,951.33 * 0.1875= 4,403.37 $61,452.04 $18,547.96
8 $18,547.96 18,547.96 * 0.1875 = $3,477.74 $80,000 $0
$3,477.74 + 15,070.22= $18,574.96
Depreciation for the last year was not sufficient to take the truck to $0 so the remainder will be depreciated in that year so that it may be completely depreciated.
Strange Manufacturing Company is purchasing a production facility at a cost of $21 million. The firm expects the project to generate annual cash flows of $7 million over the next five years. Its cost of capital is 18 percent. What is the net present value of this project
Answers
Answer:
NPV = $0.89 million
Explanation:
The net present value is an important concept in evaluation a project. It calculates the return a project provides when discounted at the required rate. The initial cost involved in the project is deducted from the discounted cash flows provided by the project and if the NPV is positive, the project should be proceeded with.
The formula for NPV is,
NPV = CF1 / (1+r) + CF2 / (1+r)^2 + ... + CFn / (1+r)^n - Initial outlay
NPV = 7 / (1+0.18) + 7 / (1+0.18)^2 + 7 / (1+0.18)^3 + 7 / (1+0.18)^4 + 7 / (1+0.18)^5 - 21
NPV = $0.89 million
Suppose a salesperson in a hardware store has a 10-year-old son with behavior problems. The supervisor gets to know about this. During one of their conversations, the supervisor says, "I've noticed that we haven't received any more customer complaints about your service and, in fact, one customer told me you went out of your way." This should be said by the supervisor during which stage of the counseling interview?
a. Selection of solution(s)
b. Consideration of possible solutions
c. Schedule a follow-up meeting
d. Discussion of what the problem is
Answers
Answer:
c. Schedule a follow-up meeting
Explanation:
In the given scenario the supervisor when talking to his son made the following statement: "I've noticed that we haven't received any more customer complaints about your service and, in fact, one customer told me you went out of your way."
This statement is one that should be asked during follow up meeting to review implemented solution.
Counseling interview will involve identifying the problem, consideration of solutions, choosing the appropriate solution, and finally the follow up meeting where review is done and feedback given.
The salesperson's son recieved positive feedback after solution implementation
Guthrie Enterprises needs someone to supply it with 210,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. It will cost $2,650,000 to install the equipment necessary to start production; you’ll depreciate this cost straight-line to zero over the project’s life. You estimate that in five years this equipment can be salvaged for $220,000. Your fixed production costs will be $705,000 per year, and your variable production costs should be $9.51 per carton. You also need an initial investment in net working capital of $375,000. If your tax rate is 22 percent and you require a 10 percent return on your investment, what bid price per carton should you submit?
Answers
Answer:
$6.9807 per carton
Explanation:
210,000 cartons of machine screws
equipment cost $2,650,000
depreciation per year = ($2,650,000 - $220,000) / 5 = $486,000
fixed manufacturing costs $705,000 per year
variable costs per carton = $9.51 x 210,000 = $1,997,100
initial investment in net working capital $375,000
tax rate 22%
discount rate 10%
price per carton?
initial investment = -$3,025,000
CF₁ = [(R - $705,000 - $486,000) x 0.78] + $486,000 = 0.78R - $442,980
CF₂ = [(R - $705,000 - $486,000) x 0.78] + $486,000 = 0.78R - $442,980
CF₃ = [(R - $705,000 - $486,000) x 0.78] + $486,000 = 0.78R - $442,980
CF₄ = [(R - $705,000 - $486,000) x 0.78] + $486,000 = 0.78R - $442,980
CF₅ = [(R - $705,000 - $486,000) x 0.78] + $486,000 + $220,000 + $375,000 = 0.78R + $152,020
$3,025,000 = (0.78R - $442,980) / 1.1 + (0.78R - $442,980) / 1.1² + (0.78R - $442,980) / 1.1³ + (0.78R - $442,980) / 1.1⁴ + (0.78R + $152,020) / 1.1⁵ = 0.709R - $402,709 + 0.645R - $366,099 + 0.586R - $332,817 + 0.533R - $302,561 + 0.484R + $94,392
$3,025,000 = 2.957R - $1,309,794
$4,334,794 = 2.957R
R = $4,334,794 / 2.957 = $1,465,943.19
total revenue = $1,465,943.19
revenue per carton = $1,465,943.19 / 210,000 = $6.98
The Meat Market has $747,000 in sales. The profit margin is 4.1 percent and the firm has 7,500 shares of stock outstanding. The market price per share is $22. What is the price-earnings ratio
Answers
Answer:
The price-earnings ratio= 5.4 times
Explanation:
The price earning ratio is used to compare the price of company's share to its earnings.
EPS = Total earnings available to ordinary shareholders/Number of shares
Total earnings available = Profit margin × Sales = $30,627
Earnings per shares = $30,627 /7.500 = $4.0836
The price-earnings ratio = Price/EPS= 22/4.0836 =5.38
The price-earnings ratio= 5.4 times
On January 1, 2013, the balance in Tabor Co.'s Allowance for Bad Debts account was $13,501. During the first 11 months of the year, bad debts expense of $21,413 was recognized. The balance in the Allowance for Bad Debts account at November 30, 2013, was $9,896. Required: (a) What was the total of accounts written off during the first 11 months? (Hint: Make a T-account for the Allowance for Bad Debts account.) (b) As the result of a comprehensive analysis, it is determined that the December 31, 2013, balance of the Allowance for Bad Debts account should be $9,276. Show the adjustment required in the journal entry format.
Answers
Answer:Total of accounts written off=$25, 018, part b is in the explanation column
Explanation:
Total of accounts (Bad debt) written off=Opening Balance in bad debt allowance account+
bad debt expense recognized during the period −
Closing balance in bad debt allowance account
=$13,501+$21,413−$9,896
=$25, 018
T---account
Allowance for bad debts
$13,501 Balance from Jan 1st
$21,413 Bad debts expense
Bad debts written off $25, 018
$9,896 Balance on November 30
b)Adjusted journal entry for change in amount of allowance for bad debt account
December 31st 2013 Account Debit Credit
Allowance for bad debts $620
Bad debts expense $620
calculation
The balance in allowance for bad debt account as on November 30 is $9 896 , when it was supposed to be $9,276. Therefore the bad debt expense is overstated by
$9,896- $9, 276 = $620
Portions of the financial statements for C. Ruiz Inc. are provided below.
C. Ruiz Inc.
Income Statement
For the Year Ended December 31, 2018
Revenues $613,000
Expenses:
Cost of goods sold $360,000
Operating expenses 116,000
Depreciation expense 33,000
Income tax expense 52,000
Total expenses 561,000
Net Income $52,000
Requirement:
Prepare the cash flows from operations section of C. Ruiz Inc.'s 2018 statement of cash flows using the indirect method.
Answers
Answer:
Some information is missing, so I looked it up.
Explanation:
C. Ruiz, Inc.
Statement of Cash Flows
For the Year Ended December 31, 2018
Cash flow from operating activities:
Net income $52,000
Depreciation expense $33,000Decrease in prepaid rent $10,200Increase in operating expense payable $6,200Increase in income tax payable ($21,000)Increase in accounts receivables ($5,800)Increase in inventory ($12,100)Decrease in accounts payable ($7,100) $3,400Cash flow from operating activities $55,400
Cash flow from investing activities: $0
Cash flow from financing activities $0
Net increase in cash $55,400
You will be paying $10,200 a year in tuition expenses at the end of the next two years. Bonds currently yield 9%. a. What is the present value and duration of your obligation
Answers
Answer:
Present value of obligation is $17,942.94
Duration 1.4785 years
Explanation:
Present value of obligation can be calculate by using following formula
PV = Tuition payment x ( 1 + yield rate )^-n
PV of First year payment = $10,200 x ( 1 + 9% )^-1 = 9,357.80
PV of Second year payment = $10,200 x ( 1 + 9% )^-2 = 8,585.14
PV of Obligation = PV of First year payment + PV of Second year payment
PV of Obligation = 9,357.80 + $8,585.14 = $17,942.94
Duration
Time in years PV of Payments Weight Duration (Time x Weight)
1 $9,357.80 0.5215 0.5215 x 1 = 0.5215
2 $8,585.14 0.4785 0.4785 x 2 = 0.9569
Total $17,942.94 1.0000 1.4785
the differences between career and non career
Answers
When or how does a contract become a legal document and is binding on all parties involved?
Answers
The sensitivity parameter in the consumption function that measures how sensitive consumption is to changes in consumer confidence is referred to as the marginal propensity to consume.
a. True
b. False
Answers
Answer: False
Explanation:
The Sensitivity Parameter that measures the sensitivity of changes in consumption to changes in consumer confidence is not the Marginal Propensity to Consume.
The Marginal Propensity to Consume rather measures what proportion of additional income is spent on consumption. For example, if you earn an extra $50 this month and you spend $40, the Marginal Propensity to Consume is 40/50 = 0.8.
If nearly 28% of Cashland's citizens under the age of 65 are without healthcare and an advocacy group convinces its current administration to vote for basic healthcare for everyone, which of the following is likely to occur?A. Increasing reliance on markets to determine economic outcomesB. More rapid economic growthC. Higher taxes than in past yearsD. An increase in the number of insurance companies
Answers
Answer: Higher taxes than in past years
Explanation:
From the question, we are told that about 28% of Cashland's citizens under the age of 65 are without healthcare and an advocacy group convinces its current administration to vote for basic healthcare for everyone.
Based on the above statement, the most likely thing that will occur will be an increase in taxes than previous years. Since the advocacy group convinces its current administration to vote for basic healthcare for everyone, the government will look for a way to generate money that will be used in tp build hospitals and also settle the hospital workers wages or salaries and hence the government will raise the tax in order to meet its need and construct the hospital.
Jake recently invested in a Hottie Potatee franchised business that serves potatoes with all the trimmings. The business needs lots of employees in order to operate effectively. He told you that if he calls the business once each day and tells the employees that he is on his way there, they will be on their best behavior. As he tells it, "It's okay if I really don't make it there, after all, I'm the owner and the business should be able to run without micromanagement." As a recent student of business ethics, you remind Jake that:
Answers
Explanation:
It is important that Jake change his stance in relation to his leadership style, as an effective leader is one who can communicate with his employees in a direct and ethical way, providing essential information for carrying out activities and through his example of conduct and behaviors build a work environment focused on collaboration, employee engagement, motivation, performance, learning, etc.
To achieve satisfactory results, the leader has to base his management and his conduct on integrity, respect and values that serve as an example of the employees' conduct, so that he feels integrated and essential for the organization, increases his job satisfaction and creating so there is a positive environment and focused on development and generating results.
Bruin, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -37,500 -37,500 1 17,300 5,700 2 16,200 12,900 3 13,800 16,300 4 7,600 27,500 a) What is the IRR for each of these projects
Answers
Answer:
IRR for project A = 19.71%
IRR for project B= 18.76%
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
IRR can be calcuated using a finanical calcuator
for project A :
Cash flow in year 0 = -37,500
Cash flow in year 1 = 17,300
Cash flow in year 2 = 16,200
Cash flow in year 3 = 13,800
Cash flow in year 4 = 7,600
IRR = 19.71%
for project B :
Cash flow in year 0 = -37,500
Cash flow in year 1 = 5,700
Cash flow in year 2 = 12,900
Cash flow in year 3 = 16,300
Cash flow in year 4 = 27,500
IRR = 18.76%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Waterway Industries required production for June is 172000 units. To make one unit of finished product, three pounds of direct material Z are required. Actual beginning and desired ending inventories of direct material Z are 350000 and 380000 pounds, respectively. How many pounds of direct material Z must be purchased
Answers
Answer:
Direct material purchase budget = 546,000 pounds
Explanation:
Raw material purchase budget is determined by adjusting the raw material usage budget for opening and closing inventory of materials.
Purchase budget = usage budgeted + closing inventory - opening inventory
Usage budget = Production budget × standard materials per unit
= 172,000 × 3 pounds= 516,000
Purchase budget =516,000 + 380,000 - 350,000=546,000
Direct material purchase budget = 546,000 pounds
A higher price point should create value for the customer. The buyers need to know that they are paying for __________, or an unforgettable experience. The product itself must live up to these expectations.
Answers
Answer:
Differentiation.
Explanation:
The concept of value for the customer corresponds to the expectation that the product will meet the needs, desires and features that he expects.
The customer's perception of the concept of value is affected in rational and irrational ways, such as brand image, product performance, high price, etc.
Therefore, when a company offers a product at a higher price, it is passing on to the consumer the higher production cost of an item, which has features that add greater value and functionality, such as differentiation, personalization or an unforgettable customer experience.
Differentiated products are those produced in a more heterogeneous way compared to standard products, therefore differentiated products have distinct characteristics that add greater value, such as new features, technology, design, durability, style, etc.
Mountain Lake Corporation's accounting records show the following at year-end December 31, 2014:
Purchase Discounts $7,230 Beginning Inventory $32,660
Freight-In 8,730 Ending Inventory 29,170
Freight-Out 12,260 Purchase Returns and Allowances 4,190
Purchases 164,250
Assuming that Mountain Lake Corporation uses the periodic system, compute the cost of goods purchased and cost of goods sold.
1. Cost of goods purchased$=?
2. Cost of goods sold$=?
Answers
Answer:
Cost of goods purchased= $161,560
Cost of goods sold= $165,050
Explanation:
1. Cost of goods purchased (net) = Purchases - Purchase discount - purchase returns and allowances + Freight in
= $164,250 - $7,230 - $4,190 + $8,730
=$161,560
2. Cost of goods sold = Beginning inventory + Net purchase - Ending inventory
= $32,660 + $161,560 - $29,170
= $165,050
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2019 and the bond has a par value of $1,000.
Rate Maturity Mo/Yr Bid Asked Chg Ask Yld
?? May 21 103.5540 103.5418 +.3093 6.119
5.524 May 26 104.5030 104.6487 +.4365 ??
6.193 May 36 ?? ?? +.5483 4.151
Required:
In the above table, find the Treasury bond that matures in May 2036. What is the asked price of this bond in dollars?
Answers
Answer:
$1,247.12
Explanation:
For computing the asked price we need to apply the present value formula i.e to be shown in the attachment below
Given that,
Future value = $1,000
Rate of interest = 4.151% ÷ 2 = 2.076%
NPER = 17 years × 2 = 34 years
The 20 years come from May 2019 to May 2036
PMT = $1,000 × 6.193% ÷ 2 = $30.965
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the present value or the ask price is $1,247.12
Consider each situation and determine whether the person is structurally unemployed, frictionally unemployed, or cyclically unemployed.
a. Julie had to leave her old job when she moved to a new city. She works in customer service and is looking for a new job.
b. Julie graduates from college and is looking for a job as an accountant.
c. Bob loses his job as the economy slips into a recession.
d. Jim got laid off from his job at an auto manufacturer as the company became more automated.
Answers
Answer:
The correct answers are:
a - Frictionally unemployed
b - Frictionally unemployed
c - Cyclically unemployed
d - Structurally unemployed
Explanation:
To begin with, the term of "Frictional unemployment" refers to the situation that is caused when a person does not have a job because of the fact that she has recently quit one and is looking for a new one. The name of frictional unemployement refers to the time that the person quits a job and gets a new one.
Secondly, the term of "Cyclical unemployment" refers to the situation that is caused due to the economics situations of the country. Therefore that this type of unemployment is caused because of the bad sales, the bad production and the bad moment that the economy is having. It is refered to the economic cycles.
Finally, the term of "Structural unemployment" refers to the situation that is caused when a person in without a job due to the specialties and necessities that the companies are requiring or looking for. Therefore that this type of unemployment is caused by the lack of education in the workforce.
The correct answers are:
Frictionally unemployedFrictionally unemployed Cyclically unemployed Structurally unemployed.Explain the types of employment mentioned above ?The clinical unemployment refers to the component of the overall unemployment that is an output of the cycles of direct economic upturn and downturns.
Structural unemployment is the involuntary unemployment that is due to the mismatch between the skills that the workers in the economy can offer. Frictional unemployment is a voluntary transmission within the economy.
Find out more information about the unemployed.
brainly.com/question/10546218.
Combs Co. is planning to sell 400 hair dryers and produce 380 hair dryers during March. Combs uses 500 grams of plastic and one-half hour of direct labor to produce one hair dryer. Plastic costs $10 per 100 grams and employees of the company are paid $15 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Combs Co. has 300 kilos of plastic in beginning inventory and wants to have 200 kilos in ending inventory. How much is the total amount of budgeted direct labor for March?
a. $2,800
b. $5,600
c. $2,660
d. $5,320
Answers
Answer:
Budgeted labour cost =$8,550
Explanation:
Labour budgeted is prepared using the production budget data. This is simply because the budgeted labour hour is a function of the budgeted production units.
Budgeted labour hours = Production budget × standard hours per unit
= 380 × 1.5 hours=570
Budgeted labour cost= Budgeted labour hours × Standard labour rate
= 570 hours × $15 =$8550
Budgeted labour cost =$8,550
A stock just paid a dividend of $5.37 and is expected to maintain a constant dividend growth rate of 4.6 percent indefinitely. If the current stock price is $77, what is the required return on the stock
Answers
Answer:
The required return on the stock is 11.89%.
Explanation:
To calculate this, the Gordon growth model (GGM) formula is used as follows:
P = d1 / (r – g) ……………………………………… (1)
Where;
P = current share price = $77
d1 = next dividend = Recent dividend * (1 + g) = $5.37 * (1 + 0.046) = $5.61702
r = required return = ?
g = dividend constant growth forever = 4.6%, or 0.046
Substituting the values into equation 1) and solve for r, we have:
77 = 5.61702 / (r - 0.046)
77(r - 0.046) = 5.61702
77r - 3.542 = 5.61702
77r = 5.61702 + 3.542
r = 9.15902 / 77
r = 0.1189, or 11.89%
Therefore, the required return on the stock is 11.89%.
Accel, Greylock Partners, Sequoia Capital, Benchmark, and Andreessen Horowitz are all in the business of providing funds to new businesses in exchange for an ownership share in the company. These companies are all seeking a high return on their investment, and they tend to be drawn to technology and biotechnology companies. Accel, Greylock, Sequoia, Benchmark, and Andreessen are all pints
A. venture capital firms.
B. business incubators.
C. C corporations.
D. for-profit arms of the SBA.
E. commercial banking organizations.
Answers
Answer:
The correct answer is the option A: venture capital firms.
Explanation:
To begin with, the ''venture capital firms'' are the ones that tend to finance start ups with high risks in tha investment due to the fact that those low start ups tend to show high improvements that could lead to a particular high income in the future for the owners and therefore for the investors too. Moreover, this type of funding is particulary design to make the investors become part of the organizations in which they invest in by giving them shares of the company or equity as well.
Problem 20: In the year 2001, product A was sold. for $300 per
unit making a gross profit of 20% on sales. The total
production cost was made up of 25% of direct material, 40%
of direct labor, and 35% of factory overhead. Due to general
rise in prices in 2002, the selling price of the product
increased by 15%. The cost of production has also increased
resulting in increase of Material, Labor, and factory overhead
costs by 10%, 15%, and 12% respectively. What will be the
gross profit per unit in 2002?
Answers
Answer:
74.52
Explanation:
price= 300
lets assume there were 100 units
old new
sales 30000 34500
Gross profit 6000 7452
Prod cost 24000 27048
DM 6000 6600
DL 9600 11040
OH 8400 9408
Total 24000 27048
new price= 300x115% = 345
so gross profit per unit will be = 7452/100 = 74.52
Bermuda Cruises issues only common stock and coupon bonds. The firm has a debt–equity ratio of .75. The cost of equity is 11.6 percent and the pretax cost of debt is 6.7 percent. What is the capital structure weight of the firm's equity if the firm's tax rate is 40 percent?
Answers
Answer:
the capital structure weight of the firm's equity will be 57.14 %.
Explanation:
Weighted Average Cost of Capital is the return that is required by the providers of long term sources of finance.
A debt–equity ratio of 0.75 means:
Debt : Equity = 0.75 : 1
The Total Ratio will be = 0.75 + 1.00
= 1.75
Therefore, the capital structure weight of the firm's equity will be :
Equity Weight = Equity Ratio ÷ Total Ratio
= 1.00 ÷ 1.75
= 0.5714 or 57.14 %
A sharp increase in interest rates will decrease the price of bonds and increase the interest income available to new bondholders. This will increase the demand for bonds compared to the demand for stocks, all other considerations remaining constant.
A. True
B. False
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In choosing between the range of alternative investments typically available to U.S. households, which of the following will play a role in influencing their selection of a particular investment type?
a. the expected rate of return, risk and liquidity of each kind of investment.
b. the interest rate and the expected rate of return.
c. the form of dividends, angel investor, future expectations.
Answers
Answer:
b. the interest rate and the expected rate of return.
Explanation:
For choosing the type of particular investment it is necessary to check the interest rate and the expected rate of return as every investor wants that there is a less interest rate, less or moderate risk but high rate of return and according to this they made the selection
Therefore the option b is correct
The part of an industry's value chain that is most important to a company and the point where its greatest expertise and capabilities lie is called the company's R&D intensity. center of gravity. economy of scope. functional crossroads. dynamic equilibrium.
Answers
Answer:
center of gravity.
Explanation:
The part of an industry's value chain that is most important to a company and the point where its greatest expertise and capabilities lie is called the company's center of gravity.
Generally, the center of gravity of a company is usually the point at which it started business. The center of gravity of a company defines its strengths, success, achievement and dominant operations.
For any successful business, there is always a center of gravity. This is the point or stage where all of the strategic decisions, greatest expertise, risks management and capabilities lie.
Hence, should there be an error, disagreement or disarray at the center of gravity, then the company is headed for losses and bankruptcy.
Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan's June bank statement shows $23,361 on deposit in the bank. Ryan's comparison of the bank statement to its cash account revealed the following: Deposit in transit 2,450 Outstanding checks 1,107 Additionally, a $48 check written and recorded by the company correctly was recorded by the bank as a $84 deduction. The adjusted cash balance per the bank records should be:
Answers
Answer:
The adjusted cash balance per the bank records should be: $24,740.
Explanation:
The correct Cash balance can only be verified using a Bank Reconciliation Statement.
Thus prepare a Bank Reconciliation Statement to extract the updated Cash Book Balance.
Bank Reconciliation Statement
Note : The Bank Statement amount has to be adjusted for an overstatement of $36.
Balance as per updated Cash Book (Balancing figure) $24,740
Add Unpresented Cheques $1,107
Less Lodgements not yet credited ($2,450)
Balance as per Bank Statement ($23,361 + $36) $23,397
Conclusion :
The adjusted cash balance per the bank records should be: $24,740.
Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $33600. If the balance of the Allowance for Doubtful Accounts is $7640 debit before adjustment, what is the amount of bad debt expense for that period
Answers
Answer:
The amount of bad debt expense for that period is $41240.
Explanation:
As the Allowance for Doubtful Accounts has credit balance because it is a contra account receivable account. This account should have credit balance. As already account has debit balance so this balance needs to be added in the estimated uncollectible accounts for the period to calculate the bad debt expense for the period.
Estimated uncollectible accounts = $33600
Allowance for Doubtful Accounts Balance = $7640 debit
Bad debt expense = $33600 + $7640 = $41240
Carl is a self-employed real estate agent. For the current year, his self-employment net earnings (revenues minus expenses) are $80,000. He is also employed as an accountant with a gross salary of $70,000 for the year. Assume that the appropriate social security income ceiling for the year is $130,000 and that the self-employed FICA rates are 12.4% for social security and 2.9% for Medicare. What is Carl s self-employment tax liability for the year
Answers
Answer:
$12,240
Explanation:
Social security Tax = $80,000 x 12.4%
Social security Tax = $9,920
Medicare Tax = $80,0000 x 2.9%
Medicare Tax = $2,320
Total tax = $9,920 + $2,320
Total tax = $12,240