Answer:
$83254.25
Explanation:
The formulae is nothing but the value factored to today
=(100)+(1000/(1+4%)^1)+(100000/(1+4%)^5)
=$83254.25
The worth of $100 cash flow today, a $1,000 cash flow at the end of 1 year, and a $100,000 cash flow at the end of five years at the end of 5 years will be $100964.912
What is the future value?
The future value of present cash flows refers to the value of present cash flow in the future at a certain discounting rate. The future value is less than the present value due to effects of inflation.
The formula to calculate future value is:
[tex]\rm FV = \dfrac{PV}{(1 + r)^n}[/tex] , where FV is the future value, PV is the present value, r is the rate of interest and n is the number of years.
The FV of the cash flows will be:
[tex]\begin{aligned} \rm FV &= \dfrac{100}{(1 + 0.04)^5} + \dfrac{1000}{(1 + 0.04)^4} + 100,000\\\\&= 96.1538 + 961.5384 + 100,000\\\\&= \$101,057.6922\end[/tex]
Since the cash flow of $100 is to be calculated after 5 years, it is discounted for 5 years. The cash flow of $1000 is to be received at the end of 1 year, hence discounted for 4 years. No discounting is needed for the cash flow of $100,000 received after 5 years.
Therefore the answer will be $101,057.6922.
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Accounts Receivable has a balance of $5,000, and the Allowance for Bad Debts has a credit balance of $420. The allowance method is used. What is the net realizable value of Accounts Receivable after a $140 account receivable is written off?
Answer:
Net realizable value of Accounts Receivable is $4,580
Explanation:
Balance in allowance for uncollectible account= Balance before write off - Account written off
=$420 - $140
=$280
Net realizable value of accounts receivable is:
Particular Amount
Accounts Receivable balance $5000
Less: Account written off $140
Balance after write off $4860
Less: Allowance for uncollectible
account from step 1 $280
Net realizable value $4,580
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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Identify and analyze a department in your organization that experiences frequent equipment or process failures. If you are not currently associated with an organization, conduct an Internet search or use the Hunt Library resource to find a firm. Discuss what the organization can do to improve the reliability of the equipment or processes and whether some of the improvement could come through enhanced maintenance.
Answer:
Find the explanation below.
Explanation:
The name of my organization is Prime Plc. known for the production of confectionaries. The Production Department in my organization has been experiencing frequent equipment failures quite recently. A close investigation showed that the delays were caused by a breakdown of the sugar mills, mixers and, coating machines. This has resulted in delays in the production process. To improve these failures, I believe that the organization should:
1. Employ Technicians who can quickly carry out repair work on these machines when they breakdown instead of outsourcing the repair work for this would take a longer amount of time to get the machines up and running.
2. Introduce the periodic maintenance of these machines. Machines are subject to wear and tear, so I would suggest that the maintenance of these machines is carried out within intervals of three months.
3. Train the production personnel on the proper usage of these machines. Production personnel should be updated on current and effective ways of handling machines so as to guarantee their safety and longer use.
4. Make provisions for backup machinery and equipment. The organization would do well to purchase backup equipment especially for machines that the organization cannot do without so that in the event of an equipment failure, the production process would not be stalled.
When these measures are considered, there would be a significant improvement in the production department.
On January 1, 2016, Sheldon Unlimited issues 12%, 15-year bonds payable with a face value of $250, 000. The bonds are issued at 106 and pay interest on June 30 and December 31.
1. Journalize the issuance of the bonds on January 1, 2016.
2. Journalize the semiannual interest payment and amortization of bond premium on June 30, 2016.
3. Journalize the semiannual interest payment and amortization of bond premium on December 31, 2016.
4. Journalize the retirement of the bond at maturity.
Answer:
1. Date Account Title and Explanation Debit Credit
January 1 Cash $265,000
2016 Premium on bonds payable $15,000
Bonds payable $250,000
(To record Issuance of bonds )
2 . Date Account Title and Explanation Debit Credit
June 30 Bond interest expense $14,500
2016 Premium on bonds payable $500
Cash $15,000
(Interest on bond paid and Premium amortized)
3 . Date Account Title and Explanation Debit Credit
Dec 31 Bond interest expense $14,500
2016 Premium on bonds payable $500
Cash $15,000
(Interest on bond paid and Premium amortized)
4. Date Account Title and Explanation Debit Credit
Dec 31 2030 Bonds payable $250,000
Cash $250,000
(Bond redeemed)
Working
Bond issue price (250000 / 100*106) $265,000
Face value $250,000
Premium on bonds payable $15,000
Number of Interest payments (15 years x 2) 30 period
Discount/ premium to be amortized per Half year $500.00
Interest on bond $15,000.00
Interest expense to be recorded $14,500
(15000-500)
There are four major traits of entrepreneurs: Passion, Executive intelligence, Customer focus and Tenacity (PECT). Rank the four traits in terms of their importance to becoming a successful entrepreneur. Explain your reasoning behind the #1 rank.
Answer:
Rank
1. Customer Focus
2. Executive Intelligence
3. Passion
4. Tenacity
Customer focus is the #1 rank because an entrepreneur is a person who seizes an opportunity in the market, with the goal of provide goods or services to a customer, and obtain economic benefits.
From this reasoning, we can conclude that the success of an entrepreneur depends on satisfying the needs of the customer.
If customers are unsatisfied, they will not seek the entrepreneur's goods or services, and the entreprenuer will fail no matter how much passion, intelligence, or tenacity is put in the work.
The best ranking according to me, of the traits of entrepreneurs are:
Customer Focus. Passion. Executive Intelligence. Tenacity.The reason why customer focus is the first and most important is that a business is only as good as the number of customers it has. A business without customers is dead.
The best quality of an entrepreneur therefore is to focus on customers such that they can patronize the entrepreneur's business and give them business success.
Find out more on entrepreneurial skills at https://brainly.com/question/26807010.
Company Z is a U.S. company that is the first in this country to produce a good that is already produced in many foreign countries and sold in the United States. Most likely, the argument it will voice in its attempt to be protected from foreign competition is the __________ argument.
Answer:
Infant industry.
Explanation:
In this scenario, Company Z is a U.S. company that is the first in this country to produce a good that is already produced in many foreign countries and sold in the United States. Most likely, the argument it will voice in its attempt to be protected from foreign competition is the infant industry argument.
An infant industry can be defined as an industry that is still in its early stages of development and as such are not capable of competing with foreign companies.
Hence, according to the infant industry theory the argument would be that infant industries should be offered some kind of protection from competitors in other industries either foreign or local until they mature and develop a good and reputable economies of scale.
The Haskins Company manufactures and sells radios. Each radio sells for $76.00 and the variable cost per unit is $40.00. Haskin's total fixed costs are $70,000.00, and budgeted sales are 46,000.00 units. What is the contribution margin per unit
Answer:
The answer is $36.00
Explanation:
Contribution margin per unit is when variable cost per unit is subtracted from selling price per unit. Contribution is that part of revenue that was not used by variable costs and was used to cover fixed costs
selling price per unit = $76.00
variable cost per unit = $40.00
Therefore, contribution margin per unit is $76.00 - $40.00
= $36.00
Entries for Direct Labor and Factory Overhead Schumacher Industries Inc. manufactures recreational vehicles. Schumacher Industries uses a job order cost system. The time tickets from June jobs are summarized as follows: Job 11-101 $4,640 Job 11-102 5,510 Job 11-103 6,612 Job 11-104 12,760 Job 11-105 18,270 Factory supervision 12,500 Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $23 per direct labor hour. The direct labor rate is $29 per hour. a. Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank
Answer:
Work In Process : Job 11-101 $4,640 (debit)
Work In Process : Job 11-102 $5,510 (debit)
Work In Process : Job 11-103 $6,612 (debit)
Work In Process : Job 11-104 $12,760 (debit)
Work In Process : Job 11-105 $18,270 (debit)
Work In Process : Indirect labor $12,500 (debit)
Salaries Payable $60,292 (credit)
Explanation:
The factory labor consist of direct labor and indirect labor and all are accounted in the work in process account.
Direct labor can be traced directly to the job being manufactured.
Whilst indirect labor can not be traced directly to the job being manufactured example is factory supervisor`s salary.
Following up on bad news in writing is important to _________. a. promote good relations b. formally confirm follow-up procedures c. establish a record of the incident d. achieve all of these purposes
Answer:
a. promote good relations
b. formally confirm follow-up procedures
c. establish a record of the incident
Explanation:
If we follow up with the bad news in written form so it is important for promoting the goods relations with the clients or customers, confirming the follow-up procedures with respect to clients or customers, plus it also develops the record of the incident but it does not important to achieve for all of the purposes
Therefore the correct option is a, b and c but not d
Continental Company is building a new hockey arena at a cost of $2,500,000. It received a downpayment of $500,000 from local businesses to support the project and now needs to borrow $2,000,000 to complete the project. It therefore decides to issue $2,000,000 of 11%, callable, 10-year bonds. These bonds were issued on January 2018 and pay interest on January 1 and July 1. The bonds yield 10%.
Required:
a. Prepare the journal entry to record the issuance of the bonds on January 1, 2018
b. Prepare a bond amortixation schedule up to and including January 1, 2022
c. Prepare the journal entries to record the interest payments on January 1, 2020 and January 1, 2021.
d. Prepare the journal entry to record the bond called on January 2021
Answer:
(a). Date: January 1, 2018.
Account description( Debit) :
(1). cash( face value of bond + interest) = $2,124,622( 753779 + 1370843).
Account description (credit):
(2). Premium on issue of bonds( issue price of bond - (face value of bond ) =$124,622( $2,124,622 - 2,000,000).
(3). Bond payable: Bond payable =face value of bond = #2,000,000.
(b). Check attachment.
(c).
Date: January 1, 2020.
Account description (debit) :
(1). Interest expense= $105,637.
(2). Premium on issue of bonds = $ 4,363.
Account description (credit):
(3) cash = $110,000.
Date: January 1, 2021.
Account description (debit) :
(1). Interest expense= $105,190.
(2). Premium on issue of bonds = $ 4,810.
Account description (credit):
(3) cash = $110,000.
(d). Date: January 1, 2021.
Account description (debit) :
(1). Bond payable= $2,000,000.
(2). Premium on issue of bonds = $98,986.
(3). Loss on redemption of bonds =$21014.
Account description (credit):
(4) cash = $2,120,000.
Explanation:
So, we are given the following data or information which is going to help us in preparing the journals from "a" to "d".
=> The new hockey arena cost
= $2,500,000.
=> " The downpayment of $500,000 from local businesses to support the project and now needs to borrow $2,000,000 to complete the project."
=> *It therefore decides to issue $2,000,000 of 11%."
So, let us go down in solving these question.
(a). The journal entry to record the issuance of the bonds on January 1, 2018;
Date: January 1, 2018.
Account description( Debit) :
(1). cash( face value of bond + interest) = $2,124,622( 753779 + 1370843).
Account description (credit):
(2). Premium on issue of bonds( issue price of bond - (face value of bond ) =$124,622( $2,124,622 - 2,000,000)..
(3). Bond payable: Bond payable =face value of bond = #2,000,000.
(b). Check the attached picture below.
(c).
Date: January 1, 2020.
Account description (debit) :
(1). Interest expense= $105,637.
(2). Premium on issue of bonds = $ 4,363.
Account description (credit):
(3) cash = $110,000.
Date: January 1, 2021.
Account description (debit) :
(1). Interest expense= $105,190.
(2). Premium on issue of bonds = $ 4,810.
Account description (credit):
(3) cash = $110,000.
(d).Date: January 1, 2020.
Account description (debit) :
(1). Interest expense= $105,637.
(2). Premium on issue of bonds = $ 4,363.
Account description (credit):
(3) cash = $110,000.
(d). Date: January 1, 2021.
Account description (debit) :
(1). Bond payable= $2,000,000.
(2). Premium on issue of bonds = $98,986.
(3). Loss on redemption of bonds =$21014(carrying value bond - redemption value).
Account description (credit):
(4) cash = $2,120,000(106% of $2,000,000).
1) Afew participles, such as concerning, considering, failing, and granting, function as prepositions and may be used to introduce a sentence without fear of dangling. Additionally, participial phrases, such as speaking of and judging by, may also work as introductory clauses without fear of dangling.
A) After reading the pharmaceutical research, the report remained confusing.
B) Having completed the report in a timely manner, Jim met all his deadlines.
C) Being a very organized file keeper, Mr. Anthony was able to review.
D) Being the coordinator for the working mothers' co-op, Keisha's schedule is very busy.
E) When speaking clearly and slowly, the mike on the sound system works better.
2) Identify the independent clauses in the list below.
A) Jamal resigned.
B) The system was updated last week.
C) Marcia's poor typing.
3) Identify the dependent clauses in the list below.
A) Because he was job hunting.
B) Mr. Hu returned.
C) If Jimmy concludes today.
4) Identify the sentences with correct parallel structure.
A) As we prepared our presentation for the KLM proposal, Jim revised the PowerPoint, Linda double checked the numbers, and I created a handout.
B) Interpersonal communication, critical thinking, and the ability to problem solve are all qualities we look for in job candidates.
C) Below the lobby, on the first floor, and off to the left, you will find a check-in desk.
D) After the staff meeting, Lucas is always cranky, infocused, and wants a nap.
E) As receptionist, his duties include answering the phone, forwarding calls, and taking messages.
Answer:
1. The Dangling Modifiers
Dangling modifiers modify a sentence but they do so without giving information as to who the subject of the action in the sentence. For example, After doing her homework, Hillary went to watch TV. Hillary is the subject here but the After does not show that.
The sentences with dangling modifiers therefore are;
A) After reading the pharmaceutical research, the report remained confusing.
D) Being the coordinator for the working mothers' co-op, Keisha's schedule is very busy.
E) When speaking clearly and slowly, the mike on the sound system works better.
2. Independent Clauses.
These are clauses that can be sentence on their own with no need for any additions.
The Independent Clauses are;
A) Jamal resigned.
B) The system was updated last week
3. Dependent Clauses
These cannot be a sentence on their own and require additions to be complete.
The dependent clauses are;
A) Because he was job hunting.
C) If Jimmy concludes today.
4. Parallel Structures
This is a sentence structure that aims to show that the clauses connected have the same importance. Coordinating conjunctions are used to connect the clauses such as or, and, for, etcetera.
The Parallel Structured sentences are;
A) As we prepared our presentation for the KLM proposal, Jim revised the PowerPoint, Linda double checked the numbers, and I created a handout.
C) Below the lobby, on the first floor, and off to the left, you will find a check-in desk.
E) As receptionist, his duties include answering the phone, forwarding calls, and taking messages.
Potter & Lopez Inc. just sold a bond with 50 warrants attached. The bonds have a 20-year maturity and an annual coupon of 12%, and they were issued at their $1,000 par value. The current yield on similar straight bonds is 15%. What is the implied value of each warrant?
Answer:
$3.76
Explanation:
Calculation of the implied value of each warrant
First step is to find the straight-debt value
Straight-debt value:
N = 20
I/YR = 15
PMT = −120
FV = −1000
PV = $812.22
Using this formula
Total value = Straight-debt value + Warrant value
Where,
Total value =$1,000
Straight-debt value=$812.22
Warrant=50
Let plug in the formula
$1,000 = $812.22 + 50
Second step is to find the warrant value
Warrant value= ($1,000 −$812.22)/50
=$187.78/50
=$3.7556
Approximately $3.76
Therefore the implied value of each warrant will be $3.76
At the beginning of the year, Bryers Incorporated reports inventory of $7,300. During the year, the company purchases additional inventory for $22,300. At the end of the year, the cost of inventory remaining is $9,300. Calculate cost of goods sold for the year.
Answer:
$20,300
Explanation:
beginning inventory $7,300
purchases during the year $22,300
ending inventory $9,300
cost of goods sold = beginning inventory + purchases - ending inventory = $7,300 + $22,300 - $9,300 = $20,300
When you use a periodic inventory system, you calculate COGS using the previous formula, but if you use a perpetual inventory system, COGS are calculated for every individual sale.
Analysis of income statements,balance sheet and,aditional information from the accounting records of Gatdgets.Inc., reveals the following items1. Purchase of a patent. 2. Depreciation expense. 3. Decrease in accounts receivable. 4. Issuance of a note payable. 5. Increase in inventory. 6. Collection of notes receivable. 7. Purchase of equipment. 8. Exchange of long-term assets. 9. Decrease in accounts payable. 10. Payment of dividends.Required:Indicate in which section of the statement of the cash flows each of these items would be reported:operating activities,or a separate non cash activities note.
Answer:
1. Purchase of a patent - Investing activities
2. Depreciation expense - Operating activities
3. Decrease in accounts receivable - Operating activities
4. Issuance of a note payable - Financing activities
5. Increase in inventory - Operating activities
6. Collection of notes receivable - Investing activities
7. Purchase of equipment - Investing activities
8. Exchange of long-term assets - Non-cash activities
9. Decrease in accounts payable - Operating activities
10. Payment of dividends - Financing activities
is (R$), has been trading at R$3.40/US$. Exports to Brazil are currently 50,000 printers per year at the reais-equivalent of $200 each. A rumor exists that the reais will be devalued to R$4.00/$ within two weeks by the Brazilian government. Should the deva
Answer:
Some information was missing, so I looked it up:
Should the devaluation take place, the reais is expected to remain unchanged for another decade.
Accepting this forecast as given, DP faces a pricing decision which must be made before any actual devaluation: DP may either 1) maintain the same reais price and in effect sell for fewer dollars, in which case Brazilian volume will not change or 2) maintain the same dollar price, raise the reais price in Brazil to compensate for the devaluation, and experience a 20% drop in volume. Direct costs in the U.S. are 60% of the U.S. sales price.
What would be the short-run (one-year) implication of each pricing strategy? Which do you recommend?
In the short run:
if you decide to keep the current price in reais, then your contribution margin per unit will decrease from $80 to $50. Total contribution from sales to Brazil will reduce from $4,000,000 to $2,500,000.
If you decide to increase the price in reais, then your contribution margin per unit will remain at $80, but your total sales will fall to 40,000. Total contribution margin from sales to Brazil will reduce from $4,000,000 to $3,200,000
Personally, I would recommend increasing the price since operating profits will reduce in a smaller proportion.
What are the 4 phases in doing research?describe each phase
(for psychology)
Answer:
•Discovery
• Data
• Analyze
• Ethical
Explanation:
• Discovery . Here, there are observations of events or actions which bring about new knowledge that will be further exposed to new hypothesis.
• Data . Raw data(qualitative- non numerical and quantitative -numerical) are collected in this stage and then processed to become information.
• Analyze . This is a stage where the processed data and information are analyzed. It is where the data are cleaned, inspected, transformed and then modeled with the aim of making meaningful insights, drawing conclusion and then support further decision making.
• Ethical. In this stage, researchers check to determine whether their procedures are ethical or not. This is where the data analysed are checked whether they conform with the correct rule of conduct.
What is the initial investment outlay for the spectrometer, that is, what is the Year 0 project cash flow
Answer:
$215,000
Explanation:
this question is not complete. here is the full question :
New project analysis-- You must evaluate a proposed spectrometer for the R&D department. The base price is $180,000, and it would cost another $27,000 to modify the equipment for special use by the firm. The equipment falls into the MACRS 3-year class and would be sold after 3 years for $90,000. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The equipment would require an $8,000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $79,000 per year in before-tax labor costs. The firm's marginal federal-plus-state tax rate is 40%.*********** What is the initial investment outlay for the spectrometer, that is, what is the Year 0 project cash flow?
the initial cash outlay = cost of the spectrometer + net working capital
cost of the spectrometer = base price + cost of modification
$180,000 + $27,000 = $207,000
$207,000 + $8,000 = $215,000
Cost of Goods Sold Pine Creek Company completed 200,000 units during the year at a cost of $3,000,000. The beginning finished goods inventory was 25,000 units at $310,000. Determine the cost of goods sold for 210,000 units, assuming a FIFO cost flow. $
Answer:
$3,085,000
Explanation:
FIFO means first in first out. It means it is the first purchased inventory that is the first to be sold.
The costs of goods sold would first be allocated to the beginning inventory = $310,000
The remaining cost of goods sold Je allocated to the inventory made during the year = 210,000 - 25,000 = 185,000
185,000 × ( $3,000,000 / $200,000) = $2,775,000
Total cost of goods sold = $2,775,000 + $310,000 = $3,085,000
I hope my answer helps you
Peeker Industries is analyzing an average-risk project, and the following data have been developed. Unit sales will be constant, but the sales price should increase with inflation. Fixed costs will also be constant, but variable costs should rise with inflation. The project should last for 3 years, it will be depreciated on a straight-line basis, and there will be no salvage value. No change in net operating working capital would be required. This is just one of many projects for the firm, so any losses on this project can be used to offset Page 2 of 3 gains on other firm projects. The marketing manager does not think it is necessary to adjust for inflation since both the sales price and the variable costs will rise at the same rate, but the CFO thinks an inflation adjustment is required. What is the difference in the expected NPV if the inflation adjustment is made versus if it is not made? WACC 10.0% Net investment cost (depreciable basis) $200,000 Units sold 50,000 Average price per unit, Year 1 $25.00 Fixed oper. costs excl. depreciation (constant) $150,000 Variable oper. cost/unit, Year 1 $20.20 Annual depreciation rate 33.333% Expected inflation 4.00% Tax rate 40.0%
Answer:
Explanation:
can you please help me please
On September 12, Vander Company sold merchandise in the amount of $2,700 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $1,865. Vander uses the periodic inventory system and the gross method of accounting for sales. On September 14, Jepson returns some of the merchandise. The selling price of the merchandise is $230 and the cost of the merchandise returned is $160. Jepson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Vander makes on September 18 is:
Answer:
The journal entry that Vander makes on September 18 is:
Cash $2,421 (debit)
Discount allowed $49 (debit)
Account Receivables : Jepson Company $2,470 (credit)
Explanation:
When Vander Company sales Merchandise :
Cost of Sales $1,865 (debit)
Account Receivables :Jepson Company $2,700 (debit)
Merchandise $1,865 (credit)
Sales Revenue $2,700 (credit)
When Jepson returns some of the merchandise
Merchandise $160 (debit)
Sales Revenue $230 (debit)
Cost of Sales $160 (credit)
Account Receivables :Jepson Company $230 (credit)
When Jepson pays the invoice on September 18
Note : Payment is made within the discount period and thus eligible for the 2% cash discount.
Also not that amount settled is less other returns made by the customer
Cash $2,421 (debit)
Discount allowed $49 (debit)
Account Receivables :Jepson Company $2,470 (credit)
Easter Egg and Poultry Company has $1,040,000 in assets and $649,000 of debt. It reports net income of $120,000. a. What is the firm’s return on assets? (Enter your answer as a percent rounded to 2 decimal places.) b. What is its return on stockholders’ equity? (Enter your answer as a percent rounded to 2 decimal places.) c. If the firm has an asset turnover ratio of 4 times, what is the profit margin (return on sales)? (Enter your answer as a percent rounded to 2 decimal places.)
Answer:
A. 11.54%
B. 30.69%
C. 2.88
Explanation:
Return on assets = net income/ total assets
= $120,000 / $1,040,000 = 0.115385 = 11.54%
Return on equity = net income/ total equity
Total equity = total assets - liabilities = $1,040,000 - $649,000 = $391,000
$120,000 / $391,000 = 0.3069 = 30.69%
Profit margin = gross profit/ revenue
Asset turnover = revenue / total asset
4 = revenue / $1,040,000
Revenue = $4,160,000
Profit margin = $120,000 / $4,160,000 = 0.0288 = 2.88
I hope my answer helps you
Presented below are incomplete manufacturing cost data.
1. Determine the missing amounts for three different situations.
Direct Materials Used Direct Labor Used Factory Overhead Total manufacturing Cost
(1) $44,000 $62,200 $51,100 $_____
(2) $_____ $77,500 $144,000 $300,000
(3) $58,600 $_____ $114,000 $311,000
2. Determine the missing amounts.
Total Manufacturing Costs Work in Process (January 1) Work in Process (December 31) Cost of Goods Manufactured
(1) $_____ $122,000 $85,200 $_____
(2) $300,000 $_____ $99,800 $323,600
(3) $311,000 $465,000 $_____ $719,000
Answer and Explanation:
The computation of the missing amount is as follows
As we know that
Total manufacturing costs is
= Direct materials cost + Direct labor cost + Factory overhead cost
And,
Cost of goods manufactured is
= Total manufacturing costs + Beginning work in process - ending work in process
Based on this, the calculation is as follows
Direct materials Direct labor Factory Total
overhead manufacturing costs
1. $44,000 $62,200 $51,100 $157,300
2. $78,500 $77,500 $144,000 $300,000
3. $58,600 $138,400 $114,000 $311,000
Now
Total Manufacturing Costs Beg. Work End. Work Cost of Goods
in Process in Process Manufactured
1. $157,300 $122,000 $85,200 $194,100
2. $300,000 $123,400 $99,800 $323,600
3. $311,000 $465,000 $57,000 $719,000
Find the after-tax return to a corporation that buys a share of preferred stock at $47, sells it at year-end at $47, and receives a $3 year-end dividend. The firm is in the 30% tax bracket.
Answer:
5.80%
Explanation:
Computation of after-tax return
Based on the information given the total before-tax income will be $3.
Since the firm is in the 30% tax bracket this means that the taxable income will be calculated as:
Taxable income =(0.30 ×$3)
Taxable income = $0.9
The next step is to calculate for the Taxes
The taxes will be = (0.30 ×$0.9) = $0.27
Now let calculate for the After-tax income
After-tax income = ($3 - $0.27) = 2.73
The last step is to find the After-tax rate of return using this formula
After-tax rate of return =After-tax income/Share of preferred stock
Let plug in the formula
After-tax rate of return = ($2.73/$47)
After-tax rate of return=0.058×100
After-tax rate of return = 5.80%
Therefore After-tax rate of return will be 5.80%
A company has a cost of debt (before tax) of 5.5% and a cost of equity of 12.8%. In addition, the company has a target capital structure of 30% debt and 70% equity, and a marginal income tax rate of 30%. Given this information, what is the WACC for this company
Answer:
10.12%
Explanation:
Wacc = (D / V)rd (1 - t) + (E / V) re
(D/V) = 0.3
Rd = before tax cost of debt = 5.5%
T = tax rate = 30%
(E / V) = 0.7
Re = marginal cost of equity = 12.8%
= (0.3 x 5.5% × 0.7) + (0.7 x 12.8%) = 1.155% + 8.96% = 10.12%
I hope my answer helps you
Computing Predetermined Overhead Rates and Job Costs LO2-1, LO2-2, LO2-3 Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:
Machine-hours required to support estimated production 100,000
Fixed manufacturing overhead cost 6,50,000
Variable manufacturing overhead cost per machine-hour $3.00
Required:
1. Compute the plantwide predetermined overhead rate
2. During the year, Job 400 was started and completed. The following information was available with respect to this job:
Direct material 450
Direct labor cost 210
Machine hours used 40
Compute the total manufacturing cost assigned to Job 400.
3. If Job 400 includes 52 units, what is the unit product cost for this job?
4. If Moody uses a markup percentage of 120% of its total manufacturing cost, then what selling price per unit would it have established for Job 400?
5. If Moody hired you as a consultant to critique its pricing methodology, what would you say?
Answer:
1. $6.50 per machine hour
2. $920
3. $ 17.69
4. $21.23
5. Pricing methodology - Cost plus Mark -up
- This ensures that the price charged covers all costs related to the product, which is good for maintaining profits.
- However the price does not consider the market demand and competition which might affect sales volumes
Explanation:
Predetermined overhead rate
Predetermined overhead rate = Budgeted Overheads / Budgeted Activity
= $650,000 / 100,000
= $6.50 per machine hour
Total manufacturing cost assigned to Job 400
Direct material $450
Direct labor cost $210
Overheads Applied ($6.50 × 40) $260
Total manufacturing cost $920
Unit product cost for Job 400
Unit product cost = Total Cost / Number of units completed
= $920 / 52 units
= $ 17.6923
= $ 17.69
Selling price if Moody uses a markup percentage of 120%
Selling price = Unit product cost × 120 %
= $ 17.69 × 120%
= $21.23
On May 3, Zirbal Corporation purchased 7,000 shares of its own stock for $49,000 cash. On November 4, Zirbal reissued 1,050 shares of this treasury stock for $8,400. Prepare the May 3 and November 4 journal entries to record Zirbal’s purchase and reissuance of treasury stock.
Answer and Explanation:
The Journal entries are shown below:-
1. Treasury Stock-at cost Dr, $49,000
To Cash $49,000
(Being treasury stock is recorded)
Here we debited the treasury stock-at cost as it is purchased and we credited the cash as it decrease the assets
2. Cash Dr, $8,400
To Treasury Stock - at cost $7,350
To Paid in capital -Treasury stock $1,050 ($8,400 - $7 × 1,050)
(Being reissue of treasury stock is recorded)
Here we debited the cash as it increase the assets and we credited the Treasury Stock - at cost and Paid in capital -Treasury stock as the re-issuance of the treasury stock is done.
A company that wanted to increase its capital through equity financing would most likely get involved in which of the following markets
Answer:
Stock market
Explanation:
Equity financing is one of the ways that a public listed company can use to raise finances by issuing and selling shares to investors while the investors take ownership interest on the basis of shares owned.
After the initial public offering where the company sells shares to the general public , the secondary market , also known as the stock market is the place where the investors and stock brokers meet to buy shares at either an agreed price or the prevailing market price.
This market is regulated by the government authority.
Cambridge Manufacturing Company applies manufacturing overhead on the basis of machine hours. At the beginning of the year, the company estimated its total overhead cost to be $325,000 and machine hours to be 25,000. Actual manufacturing overhead and machine hours were $372,000 and 26,000, respectively.
Required:1.Compute the predetermined overhead rate
Compute applied manufacturing overhead.
Compute over- or underapplied manufacturing overhead.
Answer:
Under/over applied overhead= $34,000 underapplied
Explanation:
Giving the following information:
At the beginning of the year, the company estimated its total overhead cost to be $325,000 and machine hours to be 25,000. Actual manufacturing overhead and machine hours were $372,000 and 26,000, respectively.
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= 325,000/25,000
Predetermined manufacturing overhead rate= $13 per machine-hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 13*26,000= $338,000
Finally, we determine the over/under allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 372,000 - 338,000
Under/over applied overhead= $34,000 underapplied
Dechert's camera fails to focus properly so he takes the camera to a camera store that sells new and used cameras and also repairs them. When Dechert returns to the store a week later to pick up the camera it is not found. It turns out after the camera was fixed a dishonest employee sold it to a customer who came in to buy a used camera. If Dechert finds out the name of the customer who bought the camera can he recover it from the customer?
Answer: No.
Explanation:
From the question, we are informed that Dechert's camera fails to focus properly, therefore he takes the camera to a camera store that sells new and used cameras and also repairs them. He later returns to the store to pick up the camera it is not found and he later found out that after the camera was fixed, a dishonest employee sold it to a customer who came in to buy a used camera.
Even if Dechert finds out the name of the customer who bought the camera, he cannot recover it from the customer because this is an exception to the rule of law whereby it is stated that a legal title cannot be transferred to a property by a thief. Because the store sold both used and new cameras, the store has the power to give out Dechert's title to someone who purchases in an ordinary course of the said business.
Your client is an attorney. Her new admin is just learning how to use QuickBooks Online. The Automatically create invoices and don't notify me setting is on. The attorney charges her clients for copies made. These should have been entered using delayed charges, but the admin did not know that, and they were not entered into QuickBooks Online. What is the risk/danger of the new office admin person not entering the copies made in the Delayed Charges? 1. Job costs for this client will be reduced 2. There is no risk. Invoices will go out just fine 3. The attorney's clients will be undercharged 4. Photocopy expense will be understated
Answer:
3. The attorney's clients will be undercharged
Explanation:
Since the QuickBooks Online is set to "automatically create invoices" and clients are charged for copies made. The only missing link is that the charges to clients have not been entered into the Delayed charges, which will capture the expenses on photocopy. Therefore, "the risk/danger of the new office admin person not entering the copies made in the Delayed Charges" is that "the attorney's clients will be undercharged."