Answer:
$15,266
Explanation:
Sales $46,382
Less: Cost of goods sold $16,659
Gross profit $29,723
Less: Selling & administrative expense $11,766
Less: Depreciation $6,415
Earnings before interest and tax (EBIT) $11,542
Less: Interest expenses $3,854
Earnings before tax (EBT) $7,688
Less: Tax expenses (7688*35%) $2,691
Earnings after tax $4,997
Operating cash flow = EBIT + Depreciation expenses - Tax expenses
Operating cash flow = $11,542 + $6,415 - $2,691
Operating cash flow = $15,266
The price of the stock at the beginning of 2018 was $56.81 and you sold the stock at $68.14 at the end of the year. What is the dividend yield (use your answer from 3a above), capital gain(loss), and total percentage return
Question Completion:
The total dividends paid is $1,743,400 and the outstanding shares are 1,300,000.
Answer:
a. The dividend per share = $1.34
b. The dividend yield = 1.97%
c. The capital gain = $11.33
d. The total percentage return = 22.3%.
Explanation:
a) Data and Calculations:
Dividends paid = $1,743,400
Outstanding shares = 1,300,000
Dividends per share = $1.34 ($1,743,400/1,300,000)
Dividend yield = Dividend per share/Stock price
= $1.34/$68.14 = 1.97%
Capital gain = $11.33 ($68.14 - $56.81)
Total return = $12.67 ($11.33 + $1.34)
Total percentage return = Total return/Beginning Stock Price * 100
= $12.67/$56.81 * 100
= 22.3%
Selena Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: The activity rate under the activity-based costing system for Supporting Customers is closest to: Multiple Choice $18.53 $46.33 $21.67 $65.00
Answer:
the activity rate for Supporting Customers is $21.67
Explanation:
The computation of the activity rate under the activity-based costing system for Supporting Customers is shown below;
= Estimated overhead cost ÷ Total expected activity
= $26,000 ÷ 1,200
= $21.67
hence, the activity rate for Supporting Customers is $21.67
Therefore the third option is correct
Mogul Company ships merchandise to Ski Outfit in a consignment arrangement. The arrangement specifies that Ski Outfit will attempt to sell the merchandise, and in return, Mogul will pay to Ski Outfit a 15% sales commission on any merchandise sold. During the year, Mogul ships inventory with a cost of $100,000 to Ski Outfit. By the end of the year, $76,000 of the merchandise has been sold to customers for a total of $105,800. What amount of inventory will Mogul report at year end
Answer:
$24,000
Explanation:
According to the consignment accounting, it States that any inventory sent on consignment by the consignor to the consignee, belongs to the consignor until the inventory is sold by the consignee.
Regarding the above, Mogu company sent inventory costing $100,000 and out of this, only $76,000 has been sold. The remaining inventory still belongs to the consignor and the amount of this inventory is;
$100,000 - $76,000 = $24,000
Therefore, Mogul would report $24,000 worth of inventories at year end.
Steve Pratt, who is single, purchased a home in Spokane, Washington, for $347,500. He moved into the home on February 1 of year 1. He lived in the home as his primary residence until June 30 of year 5, when he sold the home for $705,000. (Leave no answer blank. Enter zero if applicable.) a. What amount of gain will Steve be required to recognize on the sale of the home
Answer: $107,500
Explanation:
There is an "Exclusion of gain on sale of home" provision by the IRS that allows for a single tax payer to exclude up to $250,000 from the sale of their primary home. A home qualifies as primary if the owner has lived in it for 2 years or more so Steve's home here is a primary home.
The gain he received was:
= 705,000 - 347,500
= $357,500
From this gain, $250,000 can be excluded so total gain recognized:
= 357,500 - 250,000
= $107,500
Larkspur, Inc. reports net income of $89,770 in 2017. However, ending inventory was understated by $7,100. Collapse question part (a) What is the correct net income for 2017
Answer:
$96,870
Explanation:
The understatement of ending inventory causes the cost of goods sold to be overstated and the gross and net income to be understated by the same amount.
If the 2017 ending inventory was understated by $7,100 then the correct net income figure for 2017 will be $7,1000 more that what was reported.
Therefore, 2017 corrected net income
= $89,770 + $7,100
= $96,870
Quantum Inc. has warrants outstanding that allow the holder to purchase 1.5 shares of stock per warrant at $30 per share (exercise price). Thus, each individual share can be purchased at $30 with the warrant. The common stock is currently selling for $36. The warrant is selling for $12.
Required:
a. What is the intrinsic (minimum) value of this warrant?
b. What is the speculative premium on this warrant?
c. What should happen to the speculative premium as the expiration date approaches?
Answer:
A. $9.00
B. $3.00
C. Decrease
Explanation:
a. Calculation to determine the intrinsic (minimum) value of this warrant
Using this formula
I = (M – E) × N
Where,
I represent Intrinsic value of a warrant
M represent Market value of common stock
E represent Exercise price of a warrant
N represent Number of shares each warrant entitles theholder to purchase
Let plug in the formula
I=($36 – $30) *1.5
I=$6*1.5
I = $9.00
Therefore the intrinsic (minimum) value of this warrant is $9.00
b. Calculation to determine the speculative premium on this warrant
Using this formula
S = W – I
Where,
S representSpeculative premium
W represent Warrant price
I represent Intrinsic value.
Let plug in the formula
S=$12-[($36 – $30) *1.5]
S=$12 – $9
S = $3.00
Therefore the speculative premium on this warrant is $3.00
c.What should happen to the SPECULATIVE PREMIUM as the expiration date approaches is for it to DECREASE and thereby approach $0.
Given the following cash flows for a capital project for the Witter Corp., calculate its payback period and discounted payback period. The required rate of return is 8 percent. Cashflows: Year 0 = -50,000; Year 1 = 15,000; Year 2 = 15,000; Year 3 = 20,000; Year 4 = 10,000; and Year 5 = 5,000. The discounted payback period is
Answer:
4.01 years
Explanation:
The computation of the discounted payback period is shown below;
Given that
Required rate of return is 8%
Cashflows: Year 0 = -50,000;
Year 1 = 15,000;
Year 2 = 15,000;
Year 3 = 20,000;
Year 4 = 10,000;
and Year 5 = 5,000
As we can see from the attached table that approx in 4 years it could cover $49,975
So
the discounted payback period is
= 4 years + ($50,000 - $49,975.91) ÷ $3,402.92
= 4.01 years
As a marketing term, __________ generally includes not only physical goods, but also services and ideas. Multiple Choice marketing invention merchandise product concept
Answer:
product
Explanation:
The product is an item that the company offer to its customer for buying the product. It is not only the goods that to be kept physically but it also consist of the services and ideas so that it become differentiate with the competitor. The product can be differentiate in terms of cost, quality, quantity, presentable form via having the innovative ideas
So, the 2nd last option is correct
The article discusses actions taken by Mary Conger, a master plumber who teaches mandated continuing education classes so that plumbers can maintain their licenses. If we take an opportunistic view of her action, it is a good example of what? Choose one: A. copyright infringement B. consolidation C. rent-seeking behavior D. quality assurance
Answer:
Option D
Explanation:
In simple words, Quality assurance, described by ISO 9000 as element of quality control focusing on ensuring trust that performance standards will be met," is a method of preventing errors and failures in manufacturing goods and avoiding issues when supplying products or services to consumers.
Thus, from the above we can conclude that the correct answer is D.
As a result if this we can see that opportunistic view of her action, it is a good example of quality assurance.
According to the question, we are to discuss actions taken by Mary Conger, a master plumber who teaches mandated continuing education classes so that plumbers can maintain their licenses.
Therefore, option D is correct because her action, it is a good example of quality assurance.
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Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $305,000, variable expenses of $153,600, and traceable fixed expenses of $70,800. The Alpha Division has sales of $615,000, variable expenses of $337,800, and traceable fixed expenses of $132,700. The total amount of common fixed expenses not traceable to the individual divisions is $134,200. What is the company's net operating income
Answer:
$2,000
Explanation:
net operating income = total contribution - common fixed expenses
can you have a sloth as a pet
Answer:
in most places yes
Explanation:
they are hard to care for tho
Answer:
i mean Ig it depends on if you need a license or have to pay alot for it
have a good day :)
Explanation:
Imagine you have $30 to spend. You are thinking of buying new soccer shoes because yours
are worn out and a new video game. Which of these do you want, and which of these do you
need? Explain your answer.
Plz no links to answer
Answer:
video game
Explanation:
because I don't go outside, I'm a gamer
Joint ventures offer low potential for leveraging a firm's existing competencies because they typically entail a short-term relationship between two or more firms.
A. True
B. False
Answer:
B. False
Explanation:
The main purpose of the joint venture is to help two or more companies so that they are in the position to gain the competitive advantage. So the potential for firm leverage that is existed would be high instead of low due to this reason also
So as per the given situation, the option b is correct
Hence, the option a is not correct
There are different types of business. Joint ventures offer low potential for leveraging a firm's existing competencies is a False statement.
A joint venture is known as when two or more businesses gather their resources and expertise together to achieve a set goal.It is also called a partnership between 2 or more firms where there is significant equity stake by the partners and often resulting in the creation of a new business entity.
Joint ventures uses a good amount of equity investment from each partner and can lead to the establishment of a new separate entity.
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Retro Rides, Incorporated, operates two divisions: (1) a Management Division that owns and manages classic automobile rentals in Miami, Florida and (2) a Repair Division that restores classic automobiles in Clearwater, Florida. The Repair Division works on classic motorcycles, as well as other classic automobiles. The Repair Division has an estimated variable cost of $60.50 per labor-hour and has a backlog of work for automobile restoration. They charge $80.00 per hour for labor, which is standard for this type of work. The Management Division complained that it could hire its own repair workers for $62.00 per hour, including leasing an adequate work area. What is the minimum transfer price per hour that the Repair Division should obtain for its services, assuming it is operating at capacity?
A) $28.50.
B) $30.00.
C) $39.00.
D) $48.00.
Answer:
D) $48
Explanation:
The minimum transfer price for the Repair division will be the variable cost which is standard for the same type of work. In the given scenario the price is $80 which is the maximum transfer price while $48 will be the minimum transfer price for Repair division.
The Town of Drexel has the following financial transactions. Prepare the journal entries necessary for the preparation of fund financial statements.
1. The town council adopts an annual budget for the general fund estimating general revenues of $1.7 million, approved expenditures of $1.5 million, and approved transfers out of $120,000.
2. The town levies property taxes of $1.3 million. It expects to collect all but 3 percent of these taxes during the year. Of the levied amount, $40,000 will be collected next year but after more than 60 days.
3. The town orders two new police cars at an approximate cost of $110,000.
4. A transfer of $50,000 is made from the general fund to the debt service fund.
5. The town pays a bond payable of $40,000 along with $10,000 of interest using the money previously set aside.
6. The Town of Drexel issues a $2 million bond at face value in hopes of acquiring a building to convert into a high school.
7. The two police cars are received with an invoice price of $112,000. The voucher has been approved but not yet paid.
8. The town purchases the building for the high school for $2 million in cash and immediately begins renovating it.
9. Depreciation on the new police cars is computed as $30,000 for the period.
10. The town borrows $100,000 on a 30-day tax anticipation note.
Answer:
1. A. FUND: GENERAL FUND
Dr Estimated Revenues control $1,700,000
Cr Appr. Control $1,500,000
Cr Est. OFU control $120,000
Cr Budgetary Fund Balance 80,000
GOVERNMENT
No journal entry
2. FUND: GENERAL FUND
Dr Property Tax Receivable $1,300,000
Cr Allowance for uncollectible taxes $39,000
Cr Deferred Revenue $40,000
Cr Revenues-Property taxes $1, 221,000
GOVERNMENT: GOVERNMENTAL ACTIVITIES
Dr Property Tax Receivable $1,300,000
Cr Allowance for uncollectible taxes $39,000
Cr Revenues - Property taxes $1,261,000
3. FUND: GENERAL FUND
Dr Encumbrances control $110,000
Cr Fund-balance: reserve for Encumbrances
$110,000
GOVERNMENT
Commitments are not reported
4. FUND: GENERAL FUND
Dr OFU: transfer out $50,000
Cr Cash $50,000
FUND: DEBT SERVICES FUND
Dr Cash $50,000
Cr OFU: Transfer in $50,000
GOVERNEMNT
No journal entry
5. FUND: DEBT SERVICES FUND
Dr Expenditures - Principal $40,000
Dr Expenditures - Interest $10,000
Cr Cash $50,000
GOVERNMENT
Dr Bonds Payable $40,000
Dr Interest Expense $10,000
Cr Cash $50,000
6. FUND:CAPITAL PROJECTS FUND
Dr Cash $2,000,000
Cr Other Financing Sources-Bond Proceeds
$2,000,000
GOVERNMENT
Dr Cash $2,000,000
Cr Bonds Payable $2,000,000
7. FUND: GENERAL FUND
Dr Fund balance- reserve for Encumbrances $110,000
Cr Encumbrances control $110,000
Dr Expenditure: police vehicles $112,000
Cr Vouchers payable $112,000
GOVERNMENT
Dr Police Cars $112,000
Cr Vouchers Payable $112,000
8. FUND: CAPITAL PROJECTS FUND
Dr Expenditures - Building $2,000,000
Cr Cash $2,000,000
GOVERNMENT
Dr Building $2,000,000
Cr Cash $2,000,000
9. FUND
No journal entry
GOVERNMENT
Dr Depreciation Expense $30,000
Cr Accumulated Depreciation $30,000
10. FUND: GENERAL FUND
Dr Cash $100,000
Cr Tax Anticipation Note Payable $100,000
GOVERNMENT
Dr Cash $100,000
Cr Tax Anticipation Note Payable $100,000
Explanation:
Preparation of the journal entries necessary for the preparation of fund financial statements
1. FUND: GENERAL FUND
Dr Estimated Revenues control $1,700,000
Cr Appr. Control $1,500,000
Cr Est. OFU control $120,000
Cr Budgetary Fund Balance $80,000
($1,700,000-$1,500,000-$120,000)
GOVERNMENT
No journal entry
2. FUND: GENERAL FUND
Dr Property Tax Receivable $1,300,000
Cr Allowance for uncollectible taxes $39,000
(3%*1,300,000)
Cr Deferred Revenue $40,000
Cr Revenues-Property taxes $1, 221,000
($1,300,000-$39,000-$40,000)
GOVERNMENT: GOVERNMENTAL ACTIVITIES
Dr Property Tax Receivable $1,300,000
Cr Allowance for uncollectible taxes $39,000
(3%*1,300,000)
Cr Revenues - Property taxes $1,261,000
($1,300,000-$39,000)
3. FUND: GENERAL FUND
Dr Encumbrances control $110,000
Cr Fund-balance: reserve for Encumbrances
$110,000
GOVERNMENT
Commitments are not reported
4. FUND: GENERAL FUND
Dr OFU: transfer out $50,000
Cr Cash $50,000
FUND: DEBT SERVICES FUND
Dr Cash $50,000
Cr OFU: Transfer in $50,000
GOVERNEMNT
No journal entry
5. FUND: DEBT SERVICES FUND
Dr Expenditures - Principal $40,000
Dr Expenditures - Interest $10,000
Cr Cash $50,000
($40,000+$10,000)
GOVERNMENT
Dr Bonds Payable $40,000
Dr Interest Expense $10,000
Cr Cash $50,000
($40,000+$10,000)
6. FUND:CAPITAL PROJECTS FUND
Dr Cash $2,000,000
Cr Other Financing Sources-Bond Proceeds
$2,000,000
GOVERNMENT
Dr Cash $2,000,000
Cr Bonds Payable $2,000,000
7. FUND: GENERAL FUND
Dr Fund balance- reserve for Encumbrances $110,000
Cr Encumbrances control $110,000
Dr Expenditure: police vehicles $112,000
Cr Vouchers payable $112,000
GOVERNMENT
Dr Police Cars $112,000
Cr Vouchers Payable $112,000
8. FUND: CAPITAL PROJECTS FUND
Dr Expenditures - Building $2,000,000
Cr Cash $2,000,000
GOVERNMENT
Dr Building $2,000,000
Cr Cash $2,000,000
9. FUND
No journal entry
GOVERNMENT
Dr Depreciation Expense $30,000
Cr Accumulated Depreciation $30,000
10. FUND: GENERAL FUND
Dr Cash $100,000
Cr Tax Anticipation Note Payable $100,000
GOVERNMENT
Dr Cash $100,000
Cr Tax Anticipation Note Payable $100,000
SegR-7268 Corporation has two divisions, East and West. The following information was taken from last year's income statement segmented by division: East Division West Division Sales $3,700,000 $2,300,000 Contribution margin $1,650,000 $1,000,000 Divisional segment margin $1,100,000 $350,000 Net operating income last year for SegR-7268 Corporation was $600,000. In last year's income statement segmented by division, what were SegR-7268's total common fixed expenses?
a. $2,050,000
b. $850,000
c. $2,300,000
d. $1,200,000
Answer:
b. $850,000
Explanation:
Divisional Segment Margin = $1,100,000 + $350,000
Divisional Segment Margin = $1,450,000
Net Operating Income = $600,000
Common fixed expenses = Divisional Segment Margin - Net Operating Income
Common fixed expenses = $1,450,000 - $600,000
Common fixed expenses = $850,000
So, SegR-7268's total common fixed expenses will be $850,000.
An outside supplier has offered to make the part and sell it to the company for $29.80 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including the direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the part were purchased instead of produced internally. In addition, the space used to make part U16 could be used to make more of one of the company's other products, generating an additional segment margin of $25,000 per year for that product. The annual financial advantage (disadvantage) for the company as a result of buying part U16 from the outside supplier should be:
Answer:
-$79000
Explanation:
The computation of the annual financial advantage (disadvantage) is shown below;
Particulars Per unit Total 13000 units
Make Buy Make Buy
Direct materials 2.90 37700
Direct labor 7.50 97500
Variable manufacturing
overhead 8.00 104000
Supervisor's salary 3.40 44200
Contribution margin 25000
Purchase cost 29.80 387400
Total 308400 387400
Now the finacial disadvantage is
= 308400 - 387400
= -$79000