Answer:
A.On Ex-dividend date: November 20, 2006
B.1%
C.$0.19
D. $1.82
Explanation:
1.On Ex-dividend date: November 20, 2006
will the stock price change to reflect the value of the dividend
b. Calculation for Formaggio’s dividend yield
Using this formula
Dividend yield = dividend/share price
Let plug in the formula
= .20/20 = 1%
c. Calculation of how much the stock price is likely to fall
0.20*(1 – 15%) = P*(1 – 10%)
Solve for P = $0.19
d. Calculation of How much is the stock price likely to fall Suppose that the company decides to issue a 10% stock dividend instead of a cash dividend.
$1,000,000 + (1,000,000 * 10%)
$1,000,00+$100,000
= 1,100,000 total shares
Hence,
$20,000,000 / 1,100,000 = $18.18 per share
$20 – 18.18 = $1.82 fall
Cash received from customers includes all $139,000 of the accounts receivable that were outstanding at November 30, 2017. Accounts receivable at December 31, 2017 totaled $141,000. Accounts payable (to suppliers of inventory) decreased by $19,000 from November 30, 2017 to December 31, 2017. The balance in the inventory account decreased by $39,000 over the same period. Required: What is gross profit for the month of December under accrual accounting
Answer:
Gross profit from the month of December is $238000
Explanation:
Question is incomplete but the missing part is:
Cash received from customer during december 2017 - 387,000
Cash paid to supplier for inventory during december 2017 - 131,000
Accrual basis revenues
Particulars Amount $
Cash received from customer 387000
during December 2017
Cash received in December for -139000
November accounts receivable
December sales made on account 141000
collected in January
Accrual basis revenues 389000
Accrual basis expenses
Particulars Amount $
Cash paid to suppliers for inventory 131000
during December 2017
Payments for inventory purchased -19000
and used in November
Inventory purchased in November 39000
but not used in December
Accrual basis expenses 151000
Gross profit from the month of December= Accrual basis revenues - Accrual basis expenses
Gross profit = 389000 - 151000
Gross profit = $238000
What are the 3 levels of access that can be granted to Team users of QuickBooks Online Accountant
Answer:
In QuickBooks Online Accountant, users with admin access and Firm Owners and have the authority to access of other users in the firm. The 3 levels of access that can be granted to Team users of QuickBooks Online Accountant are:
Full : these users have access to accounting features, and books such as edit, remove and add users.Basic : These users have access to create and read accounting.Custom: These users can access administrative functions for the firm , access to manage clients and access to client QuickBooks .The three levels of access that can be granted to the team users of QuickBooks Online includes the Basic access, Full access and Custom access.
QuickBooks Online Accountant is an accounting based software which allows companies to controls all the financial side of their business
Only the users with administrator access and Firm Owners have the authority to access information on the accounting software.
The 3 levels of access granted to team users on the QuickBooks Online Accountant includes:
Basic access users: These are users who have access have access to create and read accounting information.Full access users: These are users who have access to accounting features such as edit, remove and add users as well as privilege enjoyed by basic access users. Custom access users: These are users who can access administrative functions for the firm.Read more about this here
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The vice-president of marketing of G Street Fabrics has been told to invest the company's advertising dollars wisely. Which of the following measures could be used to compare the cost of its advertising expenditures for different media?a. Reachb. Ratingc. GRPsd. CPMe. frequency
Answer: d. CPM
Explanation:
CPM is a acronym for cost per thousand impressions. This is a term that is utilized in advertising either by online advertising, traditional advertising media, and marketing that are related to web traffic and it
refers to cost of traditional advertising, email advertising or internet marketing campaigns whereby the advertisers will have to pay every time an advertisement is displayed.
It is a measurement of the amount of money a company will have to pay in order to get across to its listeners, viewers, readers, or visitors. Since the vice-president of marketing of G Street Fabrics has been told to invest the company's advertising dollars wisely, he can use the CPM.
Expenditures on a nation's domestic production Group of answer choices are less than its domestic production. are equal to its domestic production. are greater than its domestic production. could be less than, equal to, or greater than its domestic production.
Answer:
are equal to it's domestic production
Explanation:
A country's Gross Domestic Product (GDP) is defined as value of all goods and services produced in a country during a given time. Domestic production refers to those goods and services produced at home for local consumption.
Expenditure refers to the monies expended by all entities namely; household, firms and government on goods and services with a country.
When all the entities involved in generating a country's GDP spend their money towards purchasing goods and services produced in a country, then local producers would have more money to buy materials that will be used for further production. The higher the money spent, the higher the production and vice versa.
The above is a cycle that is repeated each time household, firms and government buys locally produced goods hence expenditure on a nation's domestic production equal to it's domestic production.
For each timing difference listed, identify whether the difference would be reported on the book side of the reconciliation or the bank side of the reconciliation. In addition, identify whether the difference would be an addition or subtraction.
a. Deposit in transit
b. Bank collection
c. Debit memorandum
d. EFT cash receipt
e. Outstanding checks
f. $1,000 deposit erroneously recorded by the bank as $100
g. Service charges
h. Interest revenue
i. $2,500 cash payment for rent expense erroneously recorded by the business as Bank $250
j. Credit memorandum from bank
Answer:
a.bank reconciliation, addition
b.book side, addition, subtraction
c.book side, subtraction
d.book side, addition
e.bank reconciliation, subtraction
f.bank reconciliation, subtraction
g.book side, subtraction
h.book side, addition
i.book side, subtraction
j.book side, addition
Explanation:
In book side, we enter transactions that were recorded by the company`s bank but not included in the cash book. These include service charges and interest revenue on bank account.Also errors made in cash book are recorded here.
In the bank reconciliation side, we record deposits and receipts entered in the cash book not yet reflecting in the bank statement and other errors related to construction of the bank statement.
Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $181,090. Estimated direct labor cost was $481,580 for 19,900 hours.Actual costs for the most recent month are summarized here:Item Description Total CostDirect labor (1,800 hours) $46,361Indirect costs Indirect labor 2,540Indirect materials 3,420Factory rent 3,300Factory supervision 4,730Factory depreciation 5,760Factory janitorial work 1,270Factory insurance 1,890General and administrative salaries 4,240Selling expenses 5,350Required1. Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.)Predetermined Overhead Rate _____ Per DL Hour2. Calculate the amount of applied manufacturing overhead.Applied Overhead Rate _____3. Calculate actual manufacturing overhead costs.Actual Manufacturing Overhead Costs _____4. Compute over- or underapplied overhead.Overhead _____
Answer:
Instructions are below.
Explanation:
Giving the following information:
Estimated overhead= $181,090
Estimated direct labor houra= 19,900
Actual costs:
Indirect labor= $2,540
Factory rent= $3,300
Factory supervision= $4,730
Factory depreciation= $5,760
Factory janitorial work= $1,270
Factory insurance= $1,890
Actual overhead= $19,490
Actual direct labor hours= 1,800
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 181,090/19,900= $9.1 per direct labor hour
Now, we can allocate overhead based on actual direct labor hours:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 9.1*1,800= $16,380
Actual manufacturing overhead costs= $19,490
Finally, we can determine the over/under allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 19,490 - 16,380
Under/over applied overhead= $3,110 underapplied
You often find that employees choose a health care plan without carefully considering their options. In fact, sometimes employees realize they are spending too much for health care or that they lack health care options, and they end up blaming you for not informing them sufficiently of their options ahead of time. You want employees to attend the fair and take the time to carefully weigh their options. Which of the following statements is most likely to attract employees to the fair to do so?
A. This presentation helps you choose which of the five health insurance options works best for your family.
B. This presentation discusses the relative benefits and costs of each health care option.
C. In this presentation, we provide you with the answers you need about the five health insurance options.
Answer: This presentation helps you choose which of the five health insurance options works best for your family.
Explanation:
From the question, we are informed that employees usually choose a health care plan without carefully considering their options and they end up blaming someone else for not informing them sufficiently of their options ahead of time.
Due to this reason, the person want the employees to attend a fair and take the time to carefully weigh their options. Of the options given, the correct answer is that "this presentation helps you choose which of the five health insurance options works best for your family".
Emphasis is been placed on choice as the employees can choose what works best for them. A simple language is also used to pass the message across.
Suppose the most you would be willing to pay to have a freshly washed car before going out on a date is $8.00. The smallest amount for which you would be willing to wash someone else's car is $5.50. You are going out this evening and your car is dirty. How much economic surplus would you receive from washing it
Answer:
1. The most you would be willing to pay for having a freshly washed car before going out on a
date is $6. The smallest amount for which you would be willing to wash someone else's car is
$3.50. You are going out this evening, and your car is dirty. How much economic surplus
would you receive from washing it?
The economic surplus from washing your dirty car is the benefit you receive from doing so ($6)
minus your cost of doing the job ($3.50), or $2.50.
2. To earn extra money in the summer, you grow tomatoes and sell them at the farmers' market
for 30 cents per pound. By adding compost to your garden, you can increase your yield as
shown in the table below. If compost costs 50 cents per pound and your goal is to make as much
money as possible, how many pounds of compost should you add?
Pounds
of
compost
Pounds
of
tomatoes
Marginal
Cost
($)
Marginal
Benefit
(pounds)
Marginal
Benefit
($)
Net
Benefits
Marginal
Net
Benefits
0 100 ---- 0 --- 0 ---
1 120 0.50 20 6.00 5.50 5.50
2 125 0.50 5 1.50 6.50 1.00
3 128 0.50 3 0.90 6.90 0.40
4 130 0.50 2 0.60 7.00 0.10
5 131 0.50 1 0.30 6.80 - 0.20
6 131.5 0.50 0.5 0.15 6.45 - 0.35
The benefit of adding a pound of compost is the extra revenue you’ll get from the extra tomatoes
that result. The cost of adding a pound of compost is 50 cents. By adding the fourth pound of
compost you’ll get 2 extra pounds of tomatoes, or 60 cents in extra revenue, which more than
covers the 50-cent cost of the extra pound of compost. But adding the fifth pound of compost
gives only 1 extra pound of tomatoes, so the corresponding revenue increase (30 cents) is less than
the cost of the compost. You should add 4 pounds of compost and no more.
3. Residents of your city are charged a fixed weekly fee of $6 for garbage collection. They are
allowed to put out as many cans as they wish. The average household disposes of three cans of
garbage per week under this plan. Now suppose that your city changes to a "tag" system. Each
can of refuse to be collected must have a tag affixed to it. The tags cost $2 each and are not
reusable. What effect do you think the introduction of the tag system will have on the total
quantity of garbage collected in your city? Explain briefly.
In the first case, the cost is $6/week no matter how many cans you put out, so the cost of
disposing of an extra can of garbage is $0. Under the tag system, the cost of putting out an extra
can is $2, regardless of the number of the cans. Since the relevant costs are higher under the tag
system, we would expect this system to reduce the number of cans collected.
Explanation:
Analysis of income statements,balance sheet and,aditional information from the accounting records of Gatdgets.Inc., reveals the following items1. Purchase of a patent. 2. Depreciation expense. 3. Decrease in accounts receivable. 4. Issuance of a note payable. 5. Increase in inventory. 6. Collection of notes receivable. 7. Purchase of equipment. 8. Exchange of long-term assets. 9. Decrease in accounts payable. 10. Payment of dividends.Required:Indicate in which section of the statement of the cash flows each of these items would be reported:operating activities,or a separate non cash activities note.
Answer:
1. Purchase of a patent - Investing activities
2. Depreciation expense - Operating activities
3. Decrease in accounts receivable - Operating activities
4. Issuance of a note payable - Financing activities
5. Increase in inventory - Operating activities
6. Collection of notes receivable - Investing activities
7. Purchase of equipment - Investing activities
8. Exchange of long-term assets - Non-cash activities
9. Decrease in accounts payable - Operating activities
10. Payment of dividends - Financing activities
The combination of the degree of complexity and the degree of change existing in an organization's external environment is/are called:________
a. strategic fit.
b. strategic issues.
c. scenarios.
d. environmental uncertainty.
e. strategic factors.
Answer:
D. environmental uncertainty.
Explanation:
This could be explained to be a condition or situation when an organisation in form of a firm is said to have little or no information about its external environment and in this condition, making it unpredictable; especially when not expected. In other words, the term environmental uncertainty can be easily explained to be unpredicted, unexpected uncertainties that are said to happen in an external environment.
Global warming can be capitalized to be one of the physical and major environmental uncertainties that occurs in such a place.
Sandpiper Inc. has a division that manufactures a component that sells for $ 160$160 and has a variable cost of $ 30$30. Another division of the company wants to purchase the component. Fixed cost per unit of the component is $ 20$20. What is the minimum transfer price if the division is operating at capacity?
Answer:
If the division is operating at full capacity and selling all the units that it produces, then it must treat the other division as a normal customer, so the selling price should be the same ($160 per unit). The company is currently making $110 in profits per unit sold (= $160 - $30 - $20 = $110).
If the division sold their products at a lower price, they would be losing money, and no division wants to lose money in order to benefit another division and make them earn higher profits.
If the division was operating below full capacity, then it could sell their products at a lower value.
On November 1, Orpheum Company accepted a $10,000, 90-day, 8% note from a customer settle an account. What entry should be made on the November 1 to record the acceptance of the note
Answer:
Debit note receivable with $10,000
Credit accounts receivable with $10,000
Explanation:
The journal entry below should be used to record the acceptance of the note on November 1.
Note receivable account Dr $10,000
Accounts receivable Cr 10,000
The Supplies account had a balance at the beginning of year 3 of $8,000 (before the reversing entry). Payments for purchases of supplies during year 3 amounted to $50,000 and were recorded as expense. A physical count at the end of year 3 revealed supplies costing $14,500 were on hand. Reversing entries are used by this company. The required adjusting entry at the end of year 3 will include a debit to:
Answer:
The required adjusting entry at the end of year 3 will include a debit to:
Supplies Expenses Account of $43,500 ($8,000 + 50,000 - 14,500), and a credit to Supplies Account in the sum of $43,500.
Explanation:
Adjusting entries are made at the end of an accounting period to bring the accounts in line with the accrual concept, which requires that expenses and revenue should be recognized in the period they are incurred or earned.
This implies that transactions should not be based solely on when cash is received or payment made. Expenses incurred but not yet paid should be recognized in the accounts of the period. Revenue earned but not yet received in cash should be accounted for in the period when the revenue is earned. Expenses paid in advance should not be recognized in determining net income. Revenue collected but not yet earned should not be included in the period's accounts for determining net income. Finally, non-cash expenses (depreciation) should be recognized in the period they are incurred.
Big Byte Inc. sold 15,000 computers to the government of India. Instead of receiving cash, the company received refined petroleum as payment. This is an example of
Answer:
This is an example of barter
Explanation:
Barter in trade, is a term used to describe a system of exchange where goods and services are exchanged for other goods or services directly. It is used most often in international trading, when there is a financial crisis, or when currency is unstable.
Barter is advantageous when money is in short supply, and when traders cannot afford to store a short supply of money, especially during hyperinflation.
However, there are some challenges with barter, which includes:
that both parties might not have what each other need in goods (double coincidence of wants), there is no common measure of value and indivisibility of certain goods when only half the worth is to be exchanged.
A company incurs $2,700,000 of overhead each year in three departments: Ordering and Receiving, Mixing,?
and Testing. The company prepares 2,000 purchase orders, works 50,000 mixing hours, and performs 1,500 tests per year in producing 200,000 drums of Goo and 600,000 drums of Slime. The following data are available:
Department Expected use of Driver Cost
Ordering and Receiving 2,000 $800,000
Mixing 50,000 1,000,000
Testing 1,500 900,000
Production information for Slime is as follows:
Expected use of Driver
Ordering and Receiving 1,600
Mixing 30,000
Testing 1,000
Compute the amount of overhead assigned to Slime.
a) $1,350,000
b) $2,025,000
c) $1,645,234d) $1,840,000
Answer:
Total allocated overhead= $1,840,000
Explanation:
Giving the following information:
Department Expected use of Driver Cost
Ordering and Receiving 2,000 $800,000
Mixing 50,000 1,000,000
Testing 1,500 900,000
Production information for Slime is as follows:
Expected use of Driver
Ordering and Receiving 1,600
Mixing 30,000
Testing 1,000
First, we need to calculate the predetermined overhead rate for each activity:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Ordering and Receiving= 800,000/2,000= $400 per order
Mixing= 1,000,000/50,000= $20 per mixing hour
Testing= 900,000/1,500 = $600 per test
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Ordering and Receiving= 400*1,600= 640,000
Mixing=20*30,000= 600,000
Testing= 600*1,000= 600,000
Total allocated overhead= $1,840,000
Which of the following is a substantive culture-changing action that a company's managers can undertake to alter a problem culture?
A. Identify aspects of the present culture that pose problems.
B. Revise policies and procedures in ways that will help drive cultural change and replace senior executives who are resisting and obstructing needed organizational and cultural changes.
C. Shift from decentralized to centralized decision-making so as to give senior executives more authority and control in driving cultural change.
D. Make a concerted effort to turn the company's core competencies into distinctive competencies.
E. Empower employees to adopt whatever new work practices they believe will be an improvement.
Answer:
B. Revise policies and procedures in ways that will help drive cultural change and replace senior executives who are resisting and obstructing needed organizational and cultural changes.
Explanation:
Culture of a company are the accepted ways of doing things on a daily basis with a view of achieving organisational goals. It includes the way employees interact with one another and their customers, procedures carrying out tasks, and so on.
The management of the company are the drivers of company culture, so a substantiative culture-changing action that can be taken to solve a problem culture will include replacing senior executives who are resisting and obstructing needed organizational and cultural changes, and revising policies and procedures in a way that will drive culture change
What are some of the issues to consider in determining whether the Internet would provide your business with a competitive advantage
Answer:
relevancy, cost, and information
Explanation:
When determining whether the Internet would provide your business with a competitive advantage you need to consider relevancy, cost, and information. First would be how much extra cost will you incur in order to place your business on the internet. Secondly, you need to consider the importance of the internet to you business, such as what percentage of your customer population will be on the internet. And lastly, you need to consider how much information you actually need to acquire in order to successfully implement this course of action.
If increasing the number of goods produced is one way to increase productivity what is the other way to increase productivity?
A. Raise the price of the goods
B. Decrease the resources invested
C. Increase market share
D. Lower the quality of the materials used
Answer:
Explanation:
Start with D. You might be able to make a cheaper product and increase your profit margin, but eventually the word would would get around and it may lower your productivity because the sales would decrease.
The market determines whether or not you would be able increase the market share. I suppose this answer is possible, but it would mean that you would need to have capital to do it. The market need not cooperate. I wouldn't pick C unless I had to.
How can you reduce the resources invested? That should decrease the number of objects originally need for manufacturing the poduct in the first place. Not B.
Raise the price of the goods? How can that help? That increases the profit margin, not the number of goods produced.
I don't know what the best answer is out of these 4. None of them seem appropriate.
If I had to choose, I guess the best one is D
Answer:
im pretty its C
Explanation:
Aloha Inc. has 8 percent coupon bonds on the market that have 11 years left to maturity. If the YTM on these bonds is 10.22 percent, what is the current bond price
Answer:
The answer is $85.73
Explanation:
N(Number of periods) = 11years
I/Y(Yield to maturity) = 10.22 percent
PV(present value or market price) = ?
PMT( coupon payment) = $8
FV( Future value or par value) = $10
We are using a Financial calculator for this.
N= 11; I/Y = 10.22 ; PMT = 8; FV= $100; CPT PV= -85.73
Therefore, the market price of the bond is $85.73
Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:
Inventory on units; cost $5.70 each.
Purchased 12,000 units for $5.90 each.
Sold 9,600 units for $12 each.
Purchased 7,200 units for $6.00 each.
Sold units for $11.40 each.
Purchased 4,400 units for $5. 80 each.
Inventory on units.
Required:
Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using the Average cost method.
Aug. 1 Inventory On Hand—2,000 Units; Cost $5.70 Each.
Second sales assumed to be 7,000 units at a price of $11.40 each.
Answer:
Altira Corporation
August 2021 Ending Inventory & Cost of Goods Sold:
1. Ending Inventory = 9,000 units at $5.88 per unit = $52,920
2. Cost of goods sold =
9,600 x $5.87 = $56,352
7,000 x $5.95 = $41,650
16,600 units = $98,002
Explanation:
a) Calculations:
Units Unit Cost Total Cost
Beginning Inventory 2,000 $5.70 $11,400
Purchases 12,000 $5.90 $70,800
Weighted average cost = ($11,400 + $70,800) / 14,000 = $5.87
Sales (9,600) $12.00 $115,200
Units remaining 4,400 $5.87 $25,828
Purchases 7,200 $6.00 $43,200
Weighted average cost = ($25,828 + $43,200) / 11,600 = $5.95
Sales (7,000) $11.40 $79,800
Units remaining 4,600 $5.95 $27,370
Purchases 4,400 $5.80 $25,520
Weighted average cost = ($27,370 + $25,520) / 9,000 = $5.88
Ending Inventory 9,000 $5.88 $52,920
b) The 'Average Cost Method' or the Weighted Average Cost Method assumes that the cost of inventory is based on the average cost of the goods available for sale during the period. To compute the average cost, divide the total cost of goods available for sale by the total units available for sale.
In theory, Texas has a dual-budget system, meaning the budget authority is shared by the governor and the legislature; however, in practice, the primary player(s) in the budget is/are
Answer:
The legislature.
Explanation:
A budget can be defined as a financial plan of estimated revenues, resources and expenses over a specific period of time in a particular country. It is usually reevaluated based on future plans and objectives periodically, typically on an annual basis.
In theory, Texas has a dual-budget system, meaning the budget authority is shared by the governor and the legislature; however, in practice, the primary player in the budget is the legislature.
In accordance with the guidelines set by the Legislative Budget Board (LBB) in Texas, all agencies in the state prepares and send a Legislative Appropriations Request (LAR) to the Legislative Budget Board (LBB) and the Governor’s Office of Budget, Planning and Policy (GOBPP).
The legislature is the primary player in the budget process because it is responsible for reviewing the budget proposals through the House Finance Committees and the Senate.
The legislature being the primary player in the budget comprises of ten (10) members from the Texas House of Representatives and Texas Senate, it is chaired by the Lieutenant Governor. A single bill is then passed after the appropriation bill has been voted on by the respective chambers.
Additionally, the single bill is then sent to the Comptroller's office for verification and certification, and lastly it's signed by the Governor into law.
Prescott Football Manufacturing had the following operating results for 2019: sales = $30,174; cost of goods sold = $21,740; depreciation expense = $3,512; interest expense = $544; dividends paid = $849. At the beginning of the year, net fixed assets were $20,046, current assets were $3,029, and current liabilities were $3,776. At the end of the year, net fixed assets were $23,077, current assets were $4,447, and current liabilities were $3,077. The tax rate for 2019 was 21 percent.
a. What is net income for 2016? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Net income $b. What is the operating cash flow for 2016? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Operating cash flow $c. What is the cash flow from assets for 2016? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Cash flow from assets $Assume no new debt was issued during the year.d. What is the cash flow to creditors for 2016? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Cash flow to creditors $e. What is the cash flow to stockholders for 2016? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Cash flow to stockholders $
Answer:
Prescott Football Manufacturing
a. Net Income for 2019:
2019: sales = $30,174
cost of goods sold = $21,740
depreciation expense = $3,512
interest expense = $544
Pre-tax Income = $4,378
21% Tax = 919-38
Net Income = $3,459
b) Operating cash flow
Net Income = $3,459
Non-cash:
Depreciation Expense 3512
Increase in current assets -1,418
Decrease in current liabilities -699
Net operating cash flow $4,854
c) Cash flow from assets:
Increase in Assets -$3,031`
d) Cash flow to creditors:
Decrease in liabilities -$699
e) Cash flows to stockholders:
Dividends paid = -$849
Explanation:
a) 2019: sales = $30,174
cost of goods sold = $21,740
depreciation expense = $3,512
interest expense = $544
Pre-tax Income = $4,378
21% Tax = 919
Net Income = $3,459
dividends paid = $849.
b) Balance Sheet:
At the beginning of the year,
net fixed assets were $20,046,
current assets were $3,029, and
current liabilities were $3,776.
c) Balance at the end of the year,
At the end of the year,
net fixed assets were $23,077,
current assets were $4,447, and
current liabilities were $3,077.
Prescott Football Manufacturing
Part A:
Net Income for 2016:
Sales = $30,174 Cost of goods sold = $21,740 Depreciation expense = $3,512 Interest expense = $544 Pre-tax Income = $4,378 21% Tax = 919-38Net Income = $3,459
Working Notes:
sales = $30,174 cost of goods sold = $21,740 depreciation expense = $3,512 interest expense = $544 Pre-tax Income = $4,378 21% Tax = 919 Net Income = $3,459 dividends paid = $849.Part B:
Operating cash flow
Net Income = $3,459Non-cash:
Depreciation Expense 3512 Increase in current assets -1,418 Decrease in current liabilities -699 Net operating cash flow $4,854
Working Notes :
At the beginning of the year, Net fixed assets were $20,046, Current assets were $3,029, Current liabilities were $3,776.Part C:
Cash flow from assets:
Increase in Assets -$3,031`
Working Notes :
Balance at the end of the year, At the end of the year, net fixed assets were $23,077, current assets were $4,447, current liabilities were $3,077.
Part D :
Cash flow to creditors:
Decrease in liabilities = -$699
Part E :
Cash flows to stockholders:
Dividends paid =-$849
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Suppose that a baseball player eligible for free agent status signs a contract with a new team that promises to pay him $100,000 more than his current team for each of the next three years. Assuming the discount rate is 6 percent, what is the maximum the current costs of moving could be and still have this investment be worthwhile?
Answer:
Maximum current cost = $267,301.19
Explanation:
The maximum current costs of his moving would be worth of the $100,000 annuity in today's dollars, that is the present value.
The present value of the annuity would be determined as follows:
PV = A × (1- (1+r)^(-n) )/ r
Annual cash flow, n- number of years, r-rate of interest
A- 100,000, r- 6%, n- 3
PV - 100,000 × (1- 1.06^(-3))/0.06
PV = $ 267,301.19
Maximum current cost = $267,301.19
Jay Seago is suing the manufacturer of his car for $3.5 million because of a defect that he believes caused him to have an accident. The accident kept him out of work for a year. The company has offered him a settlement of $700,000, of which Jay would receive $600,000 after attorneys’ fees. His attorney has advised him that he has a 50% chance of winning his case. If he loses, he will incur attorneys’ fees and court costs of $75,000. If he wins, he is not guaranteed his full requested settlement. His attorney believes that there is a 50% chance he could receive the full settlement, in which case Jay would realize $2 million after his attorney takes her cut, and a 50% chance that the jury will award him a lesser amount of $1 million, of which Jay would get $500,000. Using decision tree analysis, decide whether Jay should proceed with his lawsuit against the manufacturer.
Answer:
Since the expected value is higher for not suing ($600,000), then Jay should not sue. The expected value of the best case scenario in case of suing is only $500,000 and in the expected value of the worst case scenario is -$37,500.
Explanation:
he decides to not sue = expected value $600,000
he decides to sue:
50% chance of winning
expected value
$2,000,000 x 50% x 50% = $500,000$500,000 x 50% x 50% = $125,00050% chance of losing
expected value = -$75,000 x 50% = -$37,500Based on the information provided, what rental rates would you include in your forecast/proforma model from the tenants?
Select the answer and briefly explain your rationale
Contract rental rates
Market rental rates
A blend of contract and market rental rates
Insufficient information to determine
Answer:
Insufficient information to determine
Explanation:
The question makes reference to information provided as a basis for making a decision. But, there is no information provided. This makes it impossible to select any rental rates, whether Contract rental rates, Market rental rates, or a blend of contract and market rental rates, to include in the forecast or proforma model from the tenants. So, the conclusion is that there is insufficient information to determine.
There are several bridges along highway 280 which are free to ride on. This bridge was built and is being maintained by the government... not the "free" market. Let's think about why that is the case... The economic logic of government ownership and having a marginal price of 0 (that is, it is free to cross the bridge) is:
Answer:
The bridge 's owner has a natural monopoly, and the marginal production cost (letting another car drive through it) is close to nil.
Explanation:
Since building several bridges to compete is inefficient, but building one bridge at a lower average cost to customers would be effective. If the private monopolist builds the bridge it can charge customers exceptionally high prices.
There is a high fixed cost involved with constructing a bridge. Hence constructing a bridge is a mere privilege. Furthermore, there is no extra cost to allow another car to cross the bridge. It means that the marginal cost is zero or closer.
Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. Queno Company had FUTA taxable wages of $510,900 during the year. Determine its: (Round your answers to two decimal places.) a. gross FUTA tax $ . b. FUTA tax credits (assuming no penalties) $ . c. net FUTA tax
Answer:
a. $30,654
b. $27,588.60
c. $3,065.40
Explanation:
The Gross/ Standard Federal Unemployment Tax (FUTA) is 6.0% but employers tend to receive a 5.4% reduction/ credit upon filing form 940 leaving them with a net of 0.6%.
a. The Gross tax is;
= 510,900 * 6%
= $30,654
b. FUTA Tax Credits
= 510,900 * 5.4%
= $27,588.60
c. Net FUTA Tax
= 510,900 * 0.6%
= $3,065.40
DSO and accounts receivable Ingraham Inc. currently has $205,000 in accounts receivable, and its days sales outstanding is 71 days. It wants to reduce its DSO to 20 days by pressuring more of its customers to pay their bills on time. If this policy is adopted, the company's average sales will fall by 15%. What will be the level of accounts receivable following the change? Assume a 365- day year.
Answer:
$49,084.51
Explanation:
days of sales outstanding (DSO) = accounts receivable / average daily sales
71 days = $205,000 / (total sales / 365 days)
total sales / 365 days = $205,000 / 71 days
total sales = ($205,000 / 71 days) x 365 days = $1,053,873.24
after the change, annual sales will decrease by 15%:
$1,053,873.24 x (1 - 15%) = $895,792.25
average sales per day = $895,792.25 / 365 = $2,454.23 per day
new DSO = accounts receivable / average sales per day
20 days = accounts receivable / $2,454.23 per day
accounts receivable = $2,454.23 per day x 20 days = $49,084.51
The overall economic performance of developing countries is expected to outpace that of the United States over the coming years. A customer that wishes to profit from this should receive which recommendation and accompanying risk disclosures?
A.
The customer should be recommended a special situations fund, as long as the customer is willing to assume regulatory risk and market risk
B.
The customer should be recommended a specialty fund, as long as the customer is willing to assume credit risk and extension risk
C.
The customer should be recommended an emerging markets fund, as long as the customer is willing to assume political risk and exchange rate risk
D.
The customer should be recommended a sector fund, as long as the customer is willing to assume unsystematic risk and market risk
Answer: C. The customer should be recommended an emerging markets fund, as long as the customer is willing to assume political risk and exchange rate risk
Explanation:
In order to take advantage of the opportunity that presents itself from developing countries outpacing that of the US in years to come, the customer should invest in an Emerging Markets fund. This fund invests in securities from the more rapidly developing countries like China and Brazil so the customer will be poised to take advantage of the opportunities offered by this.
However, they should be wary of Exchange rate risks as their currencies are not as strong as the US dollar and can be unstable.
They also need to worry about political instability as quite a lot of developing countries do not have strong democracies and Economic decisions are influenced by political decisions a bit too much.
Given these observed times (in minutes) for four elements of a job, determine the observed time (OT) for each element. Note: the second element only occurs every other cycle.
Element Cycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5 Cycle 6
1 4.1 4.0 4.6 4.1 4.1 4.1
2 - 1.5 - 2.4 - 1.4
3 3.2 3.2 3.8 3.2 3.3 3.3
4 2.7 3.0 2.7 2.8 2.8 2.8
Answer:
Element 1 = 4.17 Observed time
Element 2 = 1.77 Observed time
Element 3 = 3.33 Observed time
Element 4 = 2.8 Observed time
Explanation:
Calculation to determine the observed time (OT) for each element
Based on the information given we have 4 Element and 6 Cycle for Element 1,3 and 4 while Element 2 has 3 cycle
First step is sum up each element cycle i.e addition of cycle 1 to cycle 6
Element Cycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5 Cycle 6
1. 4.1 +4.0 +4.6 + 4.1 +4.1 + 4.1 = 25
2. - 1.5 - 2.4 - 1.4 =(1.5+2.4+1.4)=5.3
3. 3.2 +3.2 +3.8 +3.2+ 3.3 +3.3= 20
4. 2.7 +3.0 +2.7 +2.8 +2.8+ 2.8 = 16.8
Now let find the Observed time by dividing the figure that was sum up for each of the element by the numbers of cycle that each element has.
OBSERVED TIME
Element Cycle 1 Cycle 2 Cycle 3 Cycle 4 Cycle 5 Cycle 6
1. 4.1 +4.0 +4.6 + 4.1 +4.1 + 4.1 = 25/6= 4.17 Observed time
2. - 1.5 - 2.4 - 1.4 =(1.5+2.4+1.4)=5.3/3=1.77 Observed time
3. 3.2 +3.2 +3.8 +3.2+ 3.3 +3.3= 20/6= 3.33 Observed time
4. 2.7 +3.0 +2.7 +2.8 +2.8+ 2.8 = 16.8/6=2.8 Observed time
The question is about the observed time cycles of 4 given elements.
OT of each cycles will be added together for each element. and divided by total number of cycles for each element.
1 4.1+4.0+4.6+4.1+4.1+4.1 = 25 / 6 = 4.17
2 -1.5 -2.4 -1.4 = 5.3 / 3 = 1.77
3 3.2+3.2+3.8+3.2+3.3+3.3 = 20 / 6 = 3.33
4 2.7+3.0+2.7+2.8+2.8+2.8 = 16.8 / 6 = 2.8
Each elements total cycle OT is added and then it is divided with each elements relevant number of cycles and this as a result provides the answer to the question
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