Answer:
Gillie: $40,000
Norma $40,000
Nancy: $40,000
Explanation:
Calculation for How will the profits be divided among the partners
Based on the information given the profit will be divided equally among the three of them.
Gillie profit=$120,000/3
Gillie profit=$40,000
Norma profit =$120,000/3
Norma profit =$40,000
Nancy profit=$120,000/3
Nancy profit=$40,000
Therefore How will the profits be divided among the partners is :Gillie: $40,000
Norma $40,000
Nancy: $40,000
Suppose at December 31 of a recent year, the following information (in thousands) was available for sunglasses manufacturer Oakley Inc.: ending inventory $170,000; beginning inventory $125,000; cost of goods sold $351,050 and sales revenue $761,000.
a. Calculate the inventory turnover for Oakley, Inc.
b. Calculate the days in inventory for Oakley, Inc.
Answer and Explanation:
The computation is shown below:
a. The inventory turnover is
= Cost of Goods Sold ÷ Average Inventory
= $351,050 ÷ ($170,000 + $125,000) ÷ 2
= $351,050 ÷ $147,500
= 2.38 times
b. Now days in inventory is
= 365 ÷ inventory turnover ratio
= 365 ÷ 2.38 times
= 153.36 days
In 2019 a 90% owned subsidiary had $60,000 of unrealized gains on intercompany sales to its parent. In 2020 the subsidiary sold $200,000 of goods to its parent and had $30,000 of unrealized gains. In 2020 parent reports Cost of Goods Sold of $4,000,000 and sub reports Cost of Goods Sold of $1,000,000. How much is Consolidated Cost of Goods Sold
Answer:
Consolidated Cost of Goods Sold is $4,970,000.
Explanation:
A 90% owned subsidiary presents a controlling interest and consolidated financial statements must be prepared by the Parent company.
In preparing consolidated financial statements, any transactions between the parent and subsidiary (Intragroup transactions) must be eliminated.
At Beginning of the year
Recognize the unrealized gains on intercompany sales as follows ;
Debit : Retained Earnings $60,000
Credit : Cost of Sales $60,000
During the year 2020
Eliminate unrealized gains on intercompany sales as follows
Debit : Cost of Sales $30,000
Credit : Inventory $30,000
Consolidated Cost of Goods Sold
To determine the Cost of Goods Sold add 100 % of Parent and 100% of Subsidiary and also remember to effect the journals above as follows :
Cost of Goods Sold = $4,000,000 + $1,000,000 - $60,000 + $30,000
= $4,970,000
Conclusion
Therefore, Consolidated Cost of Goods Sold is $4,970,000.
Kansas Enterprises purchased equipment for $74,500 on January 1, 2021. The equipment is expected to have a ten-year service life, with a residual value of $6,450 at the end of ten years. Using the straight-line method, depreciation expense for 2022 and the book value at December 31, 2022, would be: Multiple Choice $6,805 and $54,440. $7,450 and $59,600. $7,450 and $53,150. $6,805 and $60,890.
Answer:
$6,805 and $60,890.
Explanation:
The computation of the depreciation expense for 2022 and the book value at December 31, 2022 is shown below;
Depreciation expense is
= (Cost - salvage value) ÷ useful life
= ($74,500 - $6,450) ÷ 10 years
= $6,805
And, the book value is
= $74,500 - ($6,805 × 2)
= $60,890
Probably the most important reason to have a partnership agreement is that ________. Group of answer choices it resolves potential sources of conflict that, if not addressed in advance, could later result in partnership battles and dissolution of an otherwise successful business it determines how the partnership and the partners will pay taxes it states the location and the purpose of the business
Answer:
It resolves potential sources of conflicts that, if not addressed in advance, could later result in partnership battles and dissolution of an otherwise successful business
Explanation:
A partnership agreement is a formal document or a contract endorsed by all the parties to the partnership business, which contains right, responsibilities and obligations of each partners.
It is important for partners to have an agreement, because it is legal, hence each partner must act according to the terms contained in the agreement. The basic reason or one of the most important reason to have this partnership agreement is to avoid legal tussles in the future, which could lead to the dissolution of the partnership business.
HELLPPPPPPPPPPP PLEAEE!!!!!!!!!
Answer:
C. They ensure job candidates have been recruited from a wide variety of minority channels.
Explanation:
Equal employment opportunity (EEO) refers basically to recruiting job applicants that come from all the different possible backgrounds. The whole idea is that a potential job applicant will not be discriminated because he/she is part of a protected minority group.
In other words, every candidate should be evaluated based on their skills and not on who they are.
Lucky Company's direct labor information for the month of February is as follows: Actual direct labor hours worked (AQ) 60,000 Standard direct labor hours allowed (SQ) 62,500 Total payroll for direct labor $ 900,000 Direct labor efficiency variance $ 35,000 The standard direct labor rate per hour (SP) for February (rounded to two decimal places) was:
Answer:
$14.4 per hour
Explanation:
Given the above information, the standard direct labor rate per hour
is computed as
Standard direct labor rate per hour
= Total standard direct labor cost / Total standard direct labor hours worked
= (SP × SQ) / SQ
= $900,000 / 62,500
= $14.4 per hour
Therefore, the standard direct labor rate per hour is $14.4
QUESTION 11
A(n) is a union that consists of many local unions in a particular industry, skilled trade, or geographic area and thus represents workers throughout an
entire
country.
O national union
union conglomerate
O federated union
unionized association
Answer: National Union
Explanation:
The City of San Antonio is considering various options for providing water in its 50-year plan, including desalting. One brackish aquifer is expected to yield desalted water that will generate revenue of $4.1 million per year for the first 5 years, after which less production will decrease revenue by 10% per year each year. If the aquifer will be totally depleted in 21 years, what is the present worth of the desalting option revenue at an interest rate of 8% per year
Answer:
The present worth of the desalting option revenue is 29,567,434.81 or $29.6 million.
Explanation:
Note: Calculation of the present worth of the desalting option revenue.
In the attached excel file, the revenue from year 6 to 21 is calculated using the following formula:
Revenue in the current year = Revenue in the previous year * (100% - Decreasing rate) ................... (1)
Where;
Decreasing rate = 10%
From the attached excel file, the present worth (in bold red color) of the desalting option revenue is 29,567,434.81 or $29.6 million.
Assume that you manage a risky portfolio with an expected rate of return of 12% and a standard deviation of 39%. The T-bill rate is 6%A client prefers to invest in your portfolio a proportion (y) that maximizes the expected return on the overall portfolio subject to the constraint that the overall portfolio's standard deviation will not exceed 30%. a. What is the investment proportion, y
Answer:
y = 0.76923076923 or 76.923076923% rounded off to 76.92%
So, 76.92% of the portfolio should be invested in risky portfolio.
Explanation:
The portfolio standard deviation for a portfolio consisting of two securities with one of them being the risk free security is calculated by multiplying the standard deviation of the risky security by the weightage of investment in the risky security as a proportion of the overall investment in portfolio. The formula can be written as follows,
Portfolio STDEV = Weight of Risky Asset * STDEV of risky asset
30% = y * 39%
30% / 39% = y
y = 0.76923076923 or 76.923076923% rounded off to 76.92%
Jenna began the year with a tax basis of $45,000 in her partnership interest. Her share of partnership debt consists of $6,000 of recourse debt, and $10,000 of nonrecourse debt at the beginning of the year, and $6,000 of recourse debt, and $13,000 of nonrecourse debt, at the end of the year. During the year, she was allocated $65,000 of partnership ordinary business loss. Jenna does not materially participate in this partnership, and she has $4,000 of passive income from other sources.A) How much of Jenna's loss is limited by her tax basis?B) How much of Jenna's loss is further limited by her at-risk amount?C) How much of Jenna's loss is further limited by the passive activity loss rules?
Answer:
a) Jenna's tax basis = $45,000 + ($13,000 - $10,000) = $48,000
loss allocation = $65,000
loss limited by her tax basis = $65,000 - $48,000 = $17,000
b) Jenna's at risk loss = $48,000 - $13,000 = $35,000
c) Jenna's loss limited by passive activity = $35,000 - $4,000 = $31,000
The amount of loss limited by Jenna’s tax basis is $20,000; the amount of Jenna’s loss that is further limited by her at-risk amount is $10,000; and the amount of Jenna’s loss that is further limited by the passive activity loss rules is $31,000.
What is Tax -Basis?The basis for each partner's tax base is the sum of the partner's contribution amount and the share of the debt and any income earned. Distribution reduces the partner tax base.
Calculations of The Amount of Loss Limited Tax Basis, At-Risk Amount, and Passive Activity Loss Rules:
a) Amount of loss limited by Jenna’s tax basis is Loss allocated to Jena – Jena’s Tax Basis.
[tex]\rm\,Amount\; of \;loss \;limited\; by \;Jennas\; tax\; basis\; = \$65,000 - \$45,000[/tex]
Amount of loss limited by Jenna’s tax basis is $20,000
B) The amount of Jenna’s loss that is further limited by her at-risk amount can be calculated as follows: is At-risk limitation - Amount of loss limited by Jenna’s tax basis (1)
Where:
[tex]\rm\, At-risk\, limitation = Loss \,allocated \,to \,Jena - At\,-risk \,amount\, limitation\, \\\\= \,Loss\, allocated\, to\, Jena\, - (\,Tax \,basis\, - Nonrecourse\, Debt)[/tex]
[tex]= \$65,000 - (\$45,000 - \$10,000) \\= \$30,000[/tex]
Substituting the relevant values into equation (1), we have:
Amount of Jenna’s loss that is further limited by her at-risk amount
[tex]= \$30,000 - \$20,000\\ = \$10,000[/tex]
C) The amount of Jenna’s loss that is further limited by the passive activity loss rules can be calculated as follows:
Amount of Jenna’s loss that is further limited by the passive activity loss rules:
[tex]= \rm\,At-risk\; amount \;limitation - Passive \;income \\= Tax \;basis - Nonrecourse\; Debt) - Passive \;income \\= (\$45,000 - \$10,000) - \$4,000 \\= \$31,000[/tex]
To learn more about tax-basis, refer:
https://brainly.com/question/10137785
Two or more items are omitted in each of the following tabulations of income statement data. Fill in the amounts that are missing. 2019 2020 2021 Sales revenue $290,990 $ 361992 $406,460 Sales returns and allowances (11,310) (13,570) Net sales 279680 348,422 Beginning inventory 18,810 30,350 Ending inventory 30350 291870 Purchases 11540 261,520 296,357 Purchase returns and allowances (4,790) (8,210) (10,760) Freight-in 8,610 9,340 13,020 Cost of goods sold (231,970) (293000) (292,188) Gross profit on sales 47,710 85,860 91,540
Incomplete question. However, I determined the missing amounts for each tabulation, and stated them below:
Explanation:
Sales revenue: 2014= $360,820.Sales returns and allowances: 2015= 20,740.Net sales: 2013= 282970, 2015= 393,440.Beginning inventory: 2015= 42,010.Ending inventory: 2013= 33,560, 2014= 42,010, 2015= 47,870.Question 1: Sales price variance, sales volume variance, and fixed cost variance Budgeted Actual Price $300 $350 Sales volume in units 80 75 Unit VC $100 $120 Fixed costs $100,000 $120,000 a) Without computations, characterize the following variances as favorable or unfavorable: sales price variance F U sales volume variance F U fixed cost variance F U b) Compute the following variances. Enter favorable variances as a positive number and unfavorable variances as a negative number. Do NOT enter F or U after the number. sales price variance
Answer:
a-1 Sales price variance is favorable (F).
a-2 Sales volume variance is favorable (F).
a-3 Fixed cost variance is unfavorable (U).
b-1 Sales price variance = $3,750
b-2 Sales volume variance = -$1,500
b-3 Fixed cost variance = -$20,000
Explanation:
Note: This question is not complete an the data in its are merged together. The complete question with the sorted data are therefore provided as follows:
Question 1: Sales price variance, sales volume variance, and fixed cost variance
Budgeted Actual
Price $300 $350
Sales volume in units 80 75
Unit VC $100 $120
Fixed costs $100,000 $120,000
a) Without computations, characterize the following variances as favorable or unfavorable:
sales price variance F U
sales volume variance F U
fixed cost variance F U
b) Compute the following variances. Enter favorable variances as a positive number and unfavorable variances as a negative number. Do NOT enter F or U after the number.
sales price variance
sales volume variance F U
fixed cost variance
The explanation of the answers is now given as follows:
a) Without computations, characterize the following variances as favorable or unfavorable:
a-1 Sales price variance F U
When the Actual price is greater than the Budgeted price, Sales price variance is favorable (F). But when the Actual price is less than the Budgeted price, Sales price variance is unfavorable (U).
Since the Actual price is greater than the Budgeted price in this question, the Sales price variance is favorable (F).
a-2 Sales volume variance F U
When the Actual sales volume in units is greater than the Budgeted sales volume in units, Sales volume variance is favorable (F). But when the Actual sales volume in units is less than the Budgeted sales volume in units, Sales volume variance is unfavorable (U).
Since the Actual sales volume in units is less than the Budgeted sales volume in units in this question, the Sales volume variance is unfavorable (U).
a-3 Fixed cost variance F U
When the Actual Fixed costs is less than the Budgeted Fixed costs, Fixed costs variance is favorable (F). But when the Actual Fixed costs is greater than the Budgeted Fixed costs, Fixed costs variance is unfavorable (U).
Since the Actual Fixed costs is greater than the Budgeted Fixed costs in this question, the Fixed costs variance is unfavorable (U).
b) Compute the following variances. Enter favorable variances as a positive number and unfavorable variances as a negative number. Do NOT enter F or U after the number.
b-1 Calculation of sales price variance
This can be calculated as follows:
Sales price variance = (Actual price - Budgeted price) * Actual sales volume in units = ($350 - $300) * 75 = $3,750
b-2 Calculation of sales volume variance
This can be calculated as follows:
Sales volume variance = (Actual sales volume in units - Budgeted sales volume in units) * Budgeted price = (75 - 80) * $300 = -$1,500
b-3 Calculation of fixed cost variance
Fixed cost variance = Actual fixed costs - Budgeted fixed costs = $120,00 - $100,000 = -$20,000
Describe how the singer Madonna repositioned her Brand throughout the 4 decades that she has been in the entertainment business. Use examples that relate to Brand Repositioning.
Answer:
Ladies and Gentlemen, that’s Madonna.
Most people think of sex-soaked, counter-cultural extravagance when they reflect on Madonna’s career.
I see something else. Fearless mastery of her brand and message.
Madonna doesn’t flinch. She’s mastered her craft. She never lost sight of her goals. That’s why she’s the #1 female music performer of all time. Her dominance of the pop genre is the reason that virtually every performer (male and female) puts her on their Top 10 Greatest Talent list.
You can take a page from her book and rule your brand and niche with decade-spanning impunity.
Statement of Owner's Equity
Ava Marie Rowland owns and operates Road Runner Delivery Services. On January 1, 20Y3, Ava Marie Rowland, Capital had a balance of $781,000. During the year, Ava Marie made no additional investments and withdrew $19,000. For the year ended December 31, 20Y3, Road Runner Delivery Services reported a net loss of $34,500.
Prepare a statement of owner's equity for the year ended December 31, 20Y3.
Road Runner Delivery Services
Statement of Owner's Equity
For the Year Ended December 31, 20Y3
$
$
$
2) Closing Entries
After the accounts have been adjusted at April 30, the end of the fiscal year, the following balances were taken from the ledger of Twin Trees Landscaping Co.:
Oscar Killingsworth, Capital $503,900
Oscar Killingsworth, Drawing 8,200
Fees Earned 279,100
Wages Expense 221,600
Rent Expense 43,800
Supplies Expense 9,000
Miscellaneous Expense 10,200
Journalize the two entries required to close the accounts.
If an amount box does not require an entry, leave it blank.
Apr. 30
Apr. 30
3) Balance Sheet
MaxFit Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on November 30, 20Y4, the end of the fiscal year, the balances of selected accounts from the ledger of MaxFit Weight Loss Co. are as follows:
Accounts Payable $ 44,800
Accounts Receivable 138,600
Accumulated Depreciation 221,300
Cash ?
Equipment 563,000
Land 356,200
Prepaid Insurance 8,500
Prepaid Rent 24,900
Salaries Payable 10,700
Supplies 5,700
Unearned Fees 21,400
Vanessa Freeman, Capital 843,400
Prepare a classified balance sheet that includes the correct balance for Cash.
Maxfit Weight Loss Co.
Balance Sheet
November 30, 20Y4
Assets
Current assets:
$
Total current assets $
Property, plant, and equipment:
$
$
Total property, plant, and equipment
Total assets $
Liabilities
Current liabilities:
$
Total liabilities $
Owner's Equity
Total liabilities and owner's equity $
Answer:
Net equity is $727,500.
Explanation:
Statement of Owner's Equity:
Share Capital $781,000
Withdrawals $19,000
Net Loss $34,500
Net equity $727,500
North Bank has been borrowing in the U.S. markets and lending abroad, thereby incurring foreign exchange risk. In a recent transaction, it issued a one-year $1.40 million CD at 5 percent and is planning to fund a loan in British pounds at 9 percent for a 4 percent expected spread. The spot rate of U.S. dollars for British pounds is $1.454/£1. a. However, new information now indicates that the British pound will appreciate such that the spot rate of U.S. dollars for British pounds is $1.43/£1 by year-end. Calculate the loan rate to maintain the 4 percent spread. b. The bank has an opportunity to hedge using one-year forward contracts at 1.46 U.S. dollars for British pounds. Calculate the net interest margin if the bank hedges its forward foreign exchange exposure. c. Calculate the loan rate to maintain the 4 percent spread if the bank intends to hedge its exposure using the forward rates.
Answer:
A) 10.82%
B) 5.27%
C) 8.56%
Explanation:
Given data :
North Bank Borrow ; $1.4 million at 5 percent
Lend in pounds at 9%
spread = ( 4% )
spot rate = 1.454
A) Determine the loan rate to maintain the 4 percent spread
Expected spot rate = 1.43
First step :
Lending amount = $1.4 million / initial spot rate = 1.4 / 1.454 = £ 0.9628 million
next :
calculate the final amount Required in $ to maintain 4% Spread
= principal ( $1.4 million ) + interest ( 9% of 1.4 ) = 1.4 + 0.126 = $1.526 million
In pound ( at the expected spot rate )
= 1.526 / 1.43 = £1.067 million
expected profit = £1.067 - £0.9628 = £ 0.1042 million
Therefore the interest rate tp maintain the 4 percent spread
= 0.1042 / 0.9628 = 10.82%
B) Determine the net interest margin if the bank hedges its forward foreign exchange exposure
Forward rate = 1.46
assuming interest as value calculated above = ( 10.82% )
lending amount = £0.9628 million
Repayment = 0.9628 * 111% * 1.46 = $1.5603 million
therefore return rate = $1.5603 - $1.4 = $0.1603 million = 10.27%
hence : Net interest margin = 10.27% - 5% = 5.27%
C) Determine the loan rate to maintain the 4 percent spread if the bank intends to hedge its exposure using the forward rates.
Forward Hedging contract forward rate = 1.46
lending amount = $1.4 / 1.454 = £ 0.9628 million
Total Interest and Principal Repayment Required in $ to maintain 4% Spread = $1.526 million
In pound = 1.526 / 1.46 = £ 1.0452
Interest = £1.0452 - £0.9628 = £0.0824 million
therefore interest Rate to maintain 4℅ Spread
= ( 0.0824 / 0.9628 ) * 100 = 8.56%
Selected transactions for Cullumber Company are presented below in journal form (without explanations).
Date Account Title Debit Credit
May 5 Accounts Receivable 4,750
Service Revenue 4,750
12 Cash 1,200
Accounts Receivable 1,200
15 Cash 2,260
Service Revenue 2,260
Post the transactions to T-accounts. (Post entries in the order of journal entries presented in the question.)
Answer and Explanation:
The posting of the given transactions to T accounts are presented below:
Cash account
May 12 Account receivable $1,200
May 15 Service revenue $2,260
Account receivable
May 5 Service revenue $4,750 May 12 Cash $1,200
Service revenue
May 15 Account receivable $2,260
May 5 Servcie revenue $4,750
Arntson, Inc., manufactures and sells two products: Product R3 and Product N0. The annual production and sales of Product of R3 is 1,100 units and of Product N0 is 400 units. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product R3 1,100 10.0 11,000 Product N0 400 5.0 2,000 Total direct labor-hours 13,000 The direct labor rate is $20.60 per DLH. The direct materials cost per unit is $211.00 for Product R3 and $287.00 for Product N0. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product R3 Product N0 Total Labor-related DLHs $ 40,636 11,000 2,000 13,000 Production orders orders 65,880 1,200 400 1,600 Order size MHs 433,075 3,900 3,700 7,600 $ 539,591 The unit product cost of Product R3 under activity-based costing is closest to
Answer:
$695.24 per unit
Explanation:
Calculation to determine what The unit product cost of Product R3 under activity-based costing is closest to
First step is to Calculate Activity rates
Activity Cost Pool Activity driver Overhead Cost (A) Expected Activity (B) Activity rate (A/B)
Labor related Number of DLH $ 40,636÷13,000 = 3.13 Per DLH
Production orders Number of Order 65,880÷ 1,600= 41.18 Per Order
Order size Number of MH 433,075÷ 7,600 = 56.98 Per MH
Second step is to calculate the Cost assigned to Product R3
Cost assigned to Product R3
Activity name Activity Rates Activity ABC Cost
(A) (B) (A x B)
Labor related 3.13 * 11,000 =$34,430
Production orders 41.18* 1,200=$49,416
Order size 56.98*3,900= $222,222
Total Overheads assigned $306,068
($34,430+$49,416+$222,222)
Production 1,100
Overhead cost per unit $278.24
Product R3
Direct material $211
Direct labor (10x $20.60 per DLH) $206
Overheads $278.24
Total Cost per unit $695.24
($211+$206+$278.24)
Therefore The unit product cost of Product R3 under activity-based costing is closest to $695.24 per unit
Identify the reasons why the quantity demanded of a product increases as the price of that product decreases. a. as the price declines, the real income of the consumer increases b. as the price of product A declines, it makes it more attractive than product B c. as the price declines, the consumer will always demand more on each successive price reduction d. a and b e. a and c
Answer:
D) A and B
Explanation:
a. as the price declines, the real income of the consumer increases
b. as the price of product A declines, it makes it more attractive than product B
Hope this helps!
Ps. Don't click on those sketchy links.
Have a good day!
Carbonale Castings produces cast bronze valves on a 10-person assembly line. On a recent day, 160 valves were produced during an 8-hour shift. The productivity of the line is valves per hour. John Goodale, the manager of Carbondale, changed the layout and was able to increase production to 180 valves per 8-hour shift. The new productivity is valves per hour. The % productivity increase is %. Round all answers to 2 decimal places.
Answer:
Missing word " Calculate the labor productivity of the line. b) John Goodale, the manager at Carbondale, changed the layout and was able to increase production to 180 units per 8-hour shift. What is the new labor productivity per labor-hour? c.) What is the percentage of productivity increase?"
a) Output = 160 valves
Input = 10*8 = 80 labor hours
Productivity = Output / Input
Productivity = 160/80
Productivity = 2 valves per labor hour
b) Output = 180 valves
Input = 10*8 = 80 labor hour
Productivity = Output/Input
Productivity = 180/80
Productivity = 2.25 valves per labor hour
c) Percentage increase in the productivity = [(2.25 - 2) / 2] * 100
Percentage increase in the productivity = 0.125 * 100
Percentage increase in the productivity = 12.5%
what is the main purpose of networking ?
For the current year ($ in millions), Universal Corp. had $80 in pretax accounting income. This included warranty expense of $7 and $20 in depreciation expense. Two million of warranty costs were incurred, and depreciation deductions in the tax return amounted to $30. In the absence of other temporary or permanent differences, what was Universal's income tax payable currently, assuming a tax rate of 25%
Answer:
$18.75
Explanation:
Calculation to determine the Universal's income tax payable currently
Accounting income $80
Depreciation ($30 - 20) (10)
Warranty expense ($7 - 2) 5
Taxable income $75
($80-$10+$5)
Enacted tax rate 25%
Tax payable currently $18.75
(25%*$75)
Therefore the Universal's income tax payable currently will be $18.75
Boehm Incorporated is expected to pay a $1.10 per share dividend at the end of this year (i.e., D1 = $1.10). The dividend is expected to grow at a constant rate of 4% a year. The required rate of return on the stock, rs, is 15%. What is the estimated value per share of Boehm's stock? Do not round intermediate calculations. Round your answer to the nearest cent. $
Answer:
$10
Explanation:
The dividend is $1.10
The constant rate is 4%
The required rate of return in the stock is 15%
Therefore the estimated value per share can be calculated as follows
= 1.10(0.15-0.04)
= 1.10/(0.11)
= $10
Hence the estimated valuee is $10
Discount Mart borrows $400,000 on July 1 with a short-term loan that has an annual interest rate of 6% payable on the first day of each subsequent quarter. What will Discount Mart need to accrue on September 30, assuming that no accrual had been made since the last interest payment? Select one: A. $6,000; Decrease liabilities, decrease cash B. $4,000; Increase liabilities, increase expenses C. $6,000; Increase expenses, increase liabilities D. $4,000; Increase expenses, decrease cash
Answer:
C. $6,000; Increase expenses, increase liabilities
Explanation:
The computation is shown below:
= Borrowed amount × rate of interest × given months ÷ Total months
= $400,000 × 6% × 3 months ÷ 12 months
= $6,000
So this $6,000 represent an increase in liabilities and increase in expenses
hence, the correct option is c.
Each of the following firms benefits from barriers to entry in its industry. Indicate whether each of the barriers is natural or government created.
a. A small-town bar that is the only establishment in the county licensed to serve liquor.
b. A diamond company that owns nearly all of the world's diamond mines
c. A pharmaceutical company receives a patent for a new cancer-fighting drug
d. A soda company that spends over $3 billion on advertising every year
e. A waste-treatment plant that cost a lot to build even though it costs only two cents to treat each gallon of waste
Answer:
Natural:
b.A diamond company that owns nearly all of the world's diamond mines.
d.A soda company that spends over $3 billion on advertising every year.
e.A waste-treatment plant that cost a lot to build even though it costs only two cents to treat each gallon of waste.
Government
a.A small-town bar that is the only establishment in the county licensed to serve liquor.
c. A pharmaceutical company receives a patent for a new cancer-fighting drug.
Explanation:
Government barriers are licenses or patents that prevent future firms from entering, natural is everything else.
the dude above is right
Gomez runs a small pottery firm. He hires one helper at $11,000 per year, pays annual rent of $6,000 for his shop, and spends $22,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him $4,500 per year if alternatively invested. He has been offered $17,000 per year to work as a potter for a competitor. He estimates his entrepreneurial talents are worth $3,500 per year. Total annual revenue from pottery sales is $70,000. Calculate the accounting profit and the economic profit for Gomez’s pottery firm.
Answer:
$31000
$6000
Explanation:
Accounting profit= total revenue - explicit cost
Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials
explicit cost = $11,000 + $22,000 + $6,000 = $39,000
Accounting profit = $70,000 - $39,000 = $31,000
Economic profit = accounting profit - implicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
It includes the amount he could have earned if he invested is money , his entrepreneur talent and salary he could have earned
$31,000 - $4500 - $17,000 - $3,500 = $6000
Gomez’s pottery firm's accounting profit is $31,000 while the economic profit is $6,000
To calculate the accounting profit for Gomez's pottery firm, one must subtract all the explicit costs (i.e., actual monetary expenses) from the total revenue.
Total Revenue = $70,000
[tex]~$Explicit Costs = Helper's salary + Rent + Materials[/tex]
[tex]~$Explicit Costs = \$11,000 + \$6,000 + \$22,000[/tex]
[tex]~$Explicit Costs = \$39,000[/tex]
[tex]~$Accounting Profit = Total Revenue - Explicit Costs[/tex]
[tex]~$Accounting Profit = \$70,000 - \$39,000[/tex]
[tex]Accounting Profit = \$31,000[/tex]
To calculate the economic profit, one needs to consider both explicit costs and implicit costs (i.e., opportunity costs).
[tex]~$Implicit Costs = Opportunity Cost of Equipment + Opportunity Cost of Working for Competitor + Entrepreneurial Talents[/tex]
Opportunity Cost of Equipment = $4,500 (income that could be earned alternatively)
Opportunity Cost of Working for Competitor = $17,000 (annual salary offered)
Entrepreneurial Talents = $3,500
[tex]~$Economic Profit = Accounting Profit - Implicit Costs[/tex]
[tex]~$Implicit Costs = \$4,500 + \$17,000 + \$3,500[/tex]
[tex]~$Implicit Costs = \$25,000[/tex]
[tex]~$Economic Profit = \$31,000 - \$25,000[/tex]
Thus, the accounting profit for Gomez's pottery firm is $31,000, and the economic profit is $6,000, the economic profit considers opportunity costs, providing a more comprehensive view of the firm's profitability.
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For each of the statements below, use the dropdown box to select the response that completes the sentence correctly. Knowledge Check 01 When the units produced are equal to the units sold, the net operating income computed using the variable costing method is ______ the net operating income using the absorption costing method. multiple choice 1 is less than is equal to is greater than Knowledge Check 02 When the units produced exceed the units sold, the net operating income computed using the variable costing method is ______ the net operating income using the absorption costing method. multiple choice 2 is greater than is equal to is less than Knowledge Check 03 When the units produced are less than the units sold, the net operating income computed using the variable costing method is ______ the net operating income using the absorption costing method. multiple choice 3 is greater than is equal to is less than
Answer:
a. is equal to
b. is greater than
c. less than
Explanation:
The difference between variable costing and absorption costing methods is that the overheads are treated differently. While absorption costing method does not differentiate the fixed manufacturing overheads from the variable manufacturing costs, the variable costing method only accounts for the variable elements of all costs, whether manufacturing cost or not.
Cathy's Towels sells three items (which it purchases from a supplier): bath towels, hand towels, and washcloths in a 4:3:2 mix (thus, a batch of 9 towels has 4 bath towels, 3 hand towels, and 2 washcloths). Each bath towel sells for $10 and costs $4, each hand towel sells for $5 and costs $2; and each washcloth sells for $2.50 and costs $1. The shop's annual fixed expenses are $324,000, and the income tax rate, t, is 40%. How many bath towels must the firm sell at the breakeven point
Answer:
36,000 baths
Explanation:
The computation of the bath towels that must the firm would sell at the break even point is shown below:
But before that the contribution margin per unit is
Particulars Bath towels Hand towels Wash towels
Selling price $10 $5 $2.5
Less: variable cost $4 $2 $1
Contribution margin $6 $3 $1.50
No of items in batch 4 3 2
Contribution margin per unit $24 $9 $3
Now the number of baths would be
= $324,000 ÷ ($24 + $9 + $3) × 4
= 36,000 baths
At the end of the current year, Accounts Receivable has a balance of $950,000; Allowance for Doubtful Accounts has a credit balance of $8,500; and sales for the year total $4,280,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $40,000. a. Determine the amount of the adjusting entry for uncollectible accounts. $fill in the blank 1 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $fill in the blank 2 Allowance for Doubtful Accounts $fill in the blank 3 Bad Debt Expense $fill in the blank 4 c. Determine the net realizable value of accounts receivable. $fill in the blank 5
Answer:
a. Adjusting entry for Uncollectible accounts = Allowance for Doubtful Accounts - Credit balance on Allowance for doubtful accounts
= 40,000 - 8,500
= $31,500
b. Accounts Receivable = $950,000
Allowance for Doubtful Accounts = $40,000
Bad Debt Expense = This is the adjusting entry for Uncollectible accounts = $31,500
c. Net realizable value of accounts receivable = Accounts receivables - Bad debt
= 950,000 - 31,500
= $918,500
Sales revenue is forecasted to grow by 13% next year, forecasted net income is expected to be $30,000, and all current assets and current liabilities vary proportionally with sales. If $45,000 worth of net noncurrent assets are required to be purchased next year, what is the external financing needed
Answer:
17,320.5
Explanation:
Calculation to determine the external financing needed
Using this formula
External Financing Needed = Increase in current assets+Increase in non current assets-Increase in spontaneous liabilities -Retained earnings
External Financing Needed = (42,500*13%)+45,000-(24,650*13%)-30000
External Financing Needed = 5,525+45,000-3,204.5-30,000
External Financing Needed =17,320.5
Therefore the external financing needed will be
17,320.5
Corbel Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $41,600 for Division A. Division B had a contribution margin ratio of 45% and its sales were $271,000. Net operating income for the company was $34,000 and traceable fixed expenses were $59,100. Corbel Corporation's common fixed expenses were:
Answer:
$5,000
Explanation:
common fixed expenses = Contribution Margin - Net Income - traceable fixed expenses
= $41,600 + $121,950 - $34,000 - $59,100
= $70,450
Corbel Corporation's common fixed expenses were, $70,450