Answer:
$889.28
Explanation:
The price of the bond can be computed using the below formula for bond price calculation:
bond price=face value/(1+r)^n+coupon*(1-(1+r)^-n)/r
face value is $1000
r is the yield to maturity which is 11.2%
coupon=face value*coupon rate=1000*9.4%=94
n is the number of coupons the bond would pay which is 11 coupons over 11 years
bond price=1000/(1+11.2%)^11+94*(1-(1+11.2%)^-11)/11.2%
bond price=$889.28
During the first year of operations, Shapiro Tool accumulated the following manufacturing costs:
Raw materials purchased on account $12,000
Factory labor accrued 6,000
Incurred manufacturing overhead on account 4,000
Required:
Prepare separate journal entries for each manufacturing cost.
Answer:
Journal Entries are given below
Explanation:
DEBIT CREDIT
Raw Material purchase on account
Raw material $12,000
Account payable $12,000
Factory Labor Accrued
Direct labor $6,000
Wages payable $6,000
Manufacturing Overhead
Manufacturing Overhead $4,000
Account payable $4,000
The journal entries based on the details given are:
Date Account Title Debit Credit
XX-XXXX Raw materials inventory $12,000
Accounts Payable $12,000
Date Account Title Debit Credit
XX-XXXX Factory Labor $6,000
Factory Wages Payable $6,000
Date Account Title Debit Credit
XX-XXXX Manufacturing Overhead $4,000
Accounts Payable $4,000
Find out more at https://brainly.com/question/15610378.
What is the nominal interest rate (k) of a 5-year U.S. Treasury bond with a real risk-free rate of interest of 1% and inflation expected to be at 3.5% per year
Answer:
The nominal interest rate is 4.50%
Explanation:
Nominal interest=real interest rate+inflation rate
The real interest rate is the return earned by an investor without considering the inflation rate in the economy which is 1%
inflation rate is the movement in prices of goods and services in the economy i.e 3.5%
nominal interest rate=1%+3.5%
nominal interest rate=4.5%
Suppose the government provides peanut butter to everyone free of charge and everyone consumes it to the point at which he receives no additional satisfaction from another spoonful. Is this necessarily good
Answer:
No
Explanation:
This is not good because because resources are scarce and there might be some scenario where the resources that was used to make the peanut butter would have been more useful in the production of more of other products or goods. the point at which he receives no additional satisfaction from another spoonful iss the point of marginal utility
A corporation produces a single product and has the following cost structure
Number of units produced each year 7000
Variable costs per unit
Direct materials 51
Direct labor 12
Variable manufacturing overhead 2
Variable selling and administrative expense 5
Fixed costs per year
Fixed manufacturing overhead.. 441000
Fixed selling expense 112000
The absorption costing unit product cost is:______.
A) $149 per unit
B) $65 per unit
C) $63 per unit
D) $128 per unit
Answer:
D) $128 per unit
Explanation:
The computation of the unit product cost using the absorption costing is shown below:
= Direct materials per unit + direct labor per unit + Variable manufacturing overhead per unit + fixed manufacturing overhead per unit
= $51 + $12 + $2 + ($441,000 ÷ 7,000 units)
= $128
We simply added the direct material, direct labor, variable manufacturing overhead per unit, and the fixed manufacturing overhead per unit
Jones Corp. reported current assets of $199,000 and current liabilities of $140,000 on its most recent balance sheet. The working capital is:
Answer: $59000
Explanation:
The working capital is the capital that a business uses in its daily operations. It should be noted that the working capital is calculated as the difference between the current assets and the current liabilities.
From the question, we are told that
Jones Corp. reported current assets of $199,000 and current liabilities of $140,000 on its most recent balance sheet. Therefore, the working capital will be:
= $199,000 - $140,000
= $59,000
________ capital can be defined as the difference between the market value and book value of a firm, or a measure of its intangible assets.
Answer:
Intellectual
Explanation:
Intellectual capital refers to the capital in which the intangible assets should be considered with respect to the relationship, relative capital invested in the company
Therefore in the given case it is a measure of an intangible assets and shows the difference between the market value and the book value of a firm
This exit strategy allows the entrepreneur an opportunity to buy back venture capital stock at cost and an additional premium. a. buyback b. retract clause c. IPO d. exit clause
Answer:
A. Buyback
Explanation:
The exit strategy that provides the entrepreneur an opportunity to purchase back venture capital stock at cost and an additional premium is a Buyback
A buyback is when an entrepreneur buys its own shares in the stock market. It is a repurchase and minimizes/decreases the number of shares outstanding, which causes earnings per share to be inflated and, in many cases, the stock value also.
Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $17 per share 10 years from today and will increase the dividend by 3.9 percent per year thereafter. If the required return on this stock is 12.5 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
Price of the stock today = $67.15
Explanation:
The current price of the stock can be calculated using the constant growth model of DDM. The DDM values the stock based on the present value of the expected future dividends from the stock.
The formula for the price of the stock today under the constant growth model is,
P0 = D1 / (r - g)
Where,
D1 is the dividend expected to be paid next periodr is the required rate of returng is the growth rate in dividendsTo calculate the price today, we use the dividend for the next period. Thus, we will use D11 to calculate the price of the stock at Year 10 and will discount it back to today to calculate the price today.
P10 = 17 * (1+0.039) / (0.125 - 0.039)
P10 = $218.0617284
Price of the stock today = 218.0617284 / (1+0.125)^10
Price of the stock today = $67.15
Which of the following industries is most likely to exhibit the characteristic of free entry? a. nuclear power b. municipal water and sewer c. dairy farming d. airport security
Answer:
c. dairy farming
Explanation:
Free entry can be defined as the situation in which business firms such as sellers of goods or service providers can enter into the market freely and start selling to consumers.
This ultimately implies that, there are no legal barriers or just a minimum barrier, if any for new firms starting the same business as others.
Hence, dairy farming is the industry which is most likely to exhibit the characteristic of free entry.
A diary farming is one of such industries that allows new agents to come into the business without any barrier because it simply involves the production of essential commodities such as milk, beef etc which are usually required on a large scale in an economy.
At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of $100,000. Blue's current E & P is $60,000, and at the end of the year, it distributes $200,000 ($100,000 each) to its equal shareholders, Pam and Jon. Pam's stock basis is $11,000, Jon's stock basis is $26,000. How is the distribution treated for tax purposes?
Answer:
Pam and Jon's dividend income = $80,000 each
[ ($100000 Accumulated E&P + $60000 current E&P ) / 2] = $80,000
Statement of distribution for shareholders for tax purpose
Pam Jon
Total distribution $100,000 $100,000
Less: Dividend income $80,000 $80,000
$20,000 $20,000
Less: Stock basis $11,000 $26,000
Capital gain $9,000 $0
Therefore, Pam has a taxable gain of $9000 which reduces the stock basis to $0, whereas Jon has not any taxable gain but the stock basis has reduced to $6000 [$26000 - $20000]
Jessica is very proud of herself for having $5,000 in her savings account that pays 4 percent interest. She currently has a balance of $2,300 on her credit card account that charges 21 percent interest. Jessica thinks she is making a wise financial decision by keeping her money in her savings account instead of paying off her credit card balance. What financial principle from Chapter 1 would you use to give her good advice
Missing options:
A. Taxes affect personal financial decisions.
B. The time value of money.
C. Mind games, financial personality, and your money
D. Both A and C.
Answer:
D. Both A and C.
Explanation:
Jessica earns a small interest on her savings account and she will need to include that earned interest in her tax returns. Her credit card also charges her an interest, which is much higher, but that interest is not tax deductible. So besides paying a lot of interest for money that she shouldn't owe, the small interest received will decrease since she will pay taxes for it.
Besides the tax effect on the interests that she earns, the interest charged by the credit card is much higher. Assuming Jessica only pays 10% marginal tax rate:
total interest earned by the $2,300 in savings account = $2,300 x 4% x (1 - 10%) = $82.80 total interest paid for $2,300 owed to her credit card company = $2,300 x 21% = $483._____ uses an iterative process that repeats the design, development, and testing steps as needed, based on feedback from users.
Answer: Rapid Application Development (RAD)
Explanation:
Rapid Application Development (RAD) is a method of developing software that tries more to develop a working model first and then adjusts as it receives feedback from users. It essentially is evolving every time because instead of planning for what is needed ahead of time, it simply makes a product and changes it as needed to fit the actual needs of the customers.
Answer: Rapid Application Development
Explanation: got it right on edgen
Martin transfers real estate with an adjusted basis of $260,000 and fair market value of $350,000 to a newly formed corporation in exchange for 100% of the stock. The corporation assumes the liability on the transferred real estate in the amount of $300,000. Determine Martin’s recognized gain on the transfer and the basis for his stock.
Answer:
$40,000
Explanation:
We can calculate recognized gain on the transfer and basis for his stock just by deducting adjusted basis value from liability on the transfered real estate.
Calcuation
iability on the transfered real estate $300,000
less: adjusted basis value ($260,000)
Gain recognized $40,000
Answer:
Therefore, the gain on the transfer is $40,000
Explanation:
Calculation of Martins gain
Particulars Amount
Liability on the transferred real estate $300,000
Less: adjusted real basis value $260,000
Recognized gain $40,000
Therefore, the gain on the transfer is $40,000
During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use. In addition, factory overhead charged to production was $32,000. The entry to record the direct labor costs is a. Work in Process150,000 Wages Payable150,000 b. Wages Payable150,000 Work in Process150,000 c. Wages Payable175,000 Work in Process175,000 d. Work in Process175,000 Wages Payable175,000
Answer:
d. Work in Process 175,000 Wages Payable 175,000
Explanation:
Production Orders and General factory expenses are all manufacturing costs and are included in Work In Process Cost for Inventory Valuation. Since the wages have not been paid yet, a Liability account - Wages Payable has to be credited in total of amount due.
You short-sell 200 shares of Rock Creek Fly Fishing Co. today at $50 per share. If you want to limit your loss to $2,500, $ Blank 1. Fill in the blank, read surrounding text. is the maximum price per share you should place when you close your position
Answer:
So, the maximum price per share that should place is $62.5
Explanation:
As per given data
Current Price of stock = $50
Numbers of share = 200 shares
Limit of loss = $2,500
We will use the following formula to calculate the Maximum price of stock
Total Maximum loss possible = [ ( Prefix Price of share - Current price of share ) x Numbers of shares of stock ]
$2,500 = [ ( Prefix Price of share - $50 ) x 200 ]
$2500 / 200 = Prefix Price of share - $50
$12.5 + $50 = Prefix Price of share
$62.5 = Prefix Price of share
Therefore, thee order will be stopped at $62.50
2. Think about the pros and cons associated with the concept of market pricing. What have your personal experiences been in relation to fairness and equity of your own compensation where you have worked
Explanation:
The market pricing system is an approach that differs from the formal salary structure because it is not an organizational process where the levels of remuneration are assigned according to a certain function.
In this wage definition strategy, the remuneration is calculated according to a present value, determined by the market itself and defined by conducting surveys whose objective is to analyze the service pricing strategies practiced by competitors.
This strategy can guarantee several significant advantages for an organization, such as increasing competitiveness by establishing a remuneration structure based on market value.
However, if this strategy is not duly reviewed periodically, what can happen is that there are flaws in the calculation of the current value, which generates an outdated salary system for employees and the company.
Prepare a cost of goods manufactured schedule and a partial income statement based off the following information.
Cepeda Corporation has the following cost records for June 2017.
Indirect factory labor $4500 Factory utilities $400
Direct materials used $20,000 Depreciation, factory equipment $1,400
Work in process, 6/1/17 3,000 Direct labor $40,000
Work in process, 6/30/17 3,800 Maintenance, factory equipment $1,800
Finished goods, 6/1/17 5, 000 Indirect materials $2,200
Finished goods, 6/30/17 7,500 Factory manager’s salary $3,000
Instructions:
A) Prepare a cost of goods manufactured schedule for June 2017
B) Prepare an income statement through gross profit for June 2017 assuming sales revenue is $92,100.
Answer:
A. Cost of goods manufactured schedule for June 2017
Indirect factory labor $4,500
Factory utilities $400
Direct materials used $20,000
Depreciation, factory equipment $1,400
Maintenance, factory equipment $1,800
Factory manager’s salary $3,000
Indirect materials $2,200
Add Opening Work in Process Inventory $3,000
Less Closing Work in Process Inventory ($3,800)
Cost of goods manufactured $32,500
B. Income statement for June 2017
Sales Revenue $92,100
Less Cost of Sales
Opening Finished Goods Inventory $5,000
Add Cost of goods manufactured $32,500
Less Closing Finished Goods Inventory ($7,500) ($30,000)
Gross Profit $62,100
Explanation:
The cost of goods manufactured schedule include all manufacturing costs for the production period.
Income statement calculates the gross profit as Sales less Cost of Goods Sold.
Under NASAA rules, if a customer wishes to trade a margin account prior to returning the signed margin agreement, such an action is:
Answer:
Explanation:
This action is only permitted if the customer returns the signed margin agreement promptly. Since a margin agreement is an agreement between a brokerage and a client governing a margin account and allows the client to borrow from the brokerage in order to buy securities. Without agreeing to all the details in this contract the individual cannot trade on a margin account or borrow money.
Matt is passionate about Hollister. It is the only place he'll buy his clothes. He hasn't shopped anywhere else in the last few years and will often write positive reviews on his blog about Hollister's merchandise. From a strictly marketing perspective, Matt's positive reviews reflect
Answer:
Bias
Explanation:
Bias is a preference towards something do to ignorance. he is being biased becuase he never goes to other stores to see if they are better
On January 1, 2019, Brooks, Inc., borrows $90,000 from a bank to purchase machinery. Brooks signs a 5 percent installment note requiring four annual payments of principal plus interest.
Required:
Complete the necessary journal entry
Answer:
A Journal entry for Brooks Incorporation on January 1, 2019 which is shown below
Explanation:
Solution
Given that:
JOURNAL ENTRY FOR BROOKS INCORPORATION
Date General Journal Debit Credit
Jan 01 2019 Cash 90000
Notes Payable 90000
Thus
A Journal entry was recorded for Brooks Incorporation.
Here, the cash of $90,000 was recorded at the debit side of the Journal.
While the notes payable of $90,000 was also recorded on the credit side
At Hodgson Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: Beginning WIP direct materials $ 38 comma 000 Beginning WIP conversion costs $20,250 Costs of materials added $ 393 comma 100 Costs of conversion added $271,125 WIP beginning (50% for conversion) 20 comma 200 units Units started 120 comma 500 units Units completed and transferred out 106 comma 700 units WIP ending (60% for conversion) 34 comma 000 units What is the cost per equivalent unit for direct materials? (Round your final answer to the nearest cent.)
Answer:
$2.79 per unit
Explanation:
Given that :
Beginning WIP direct materials $ 38, 000
Beginning WIP conversion costs $20,250
Costs of materials added $ 393, 100
Costs of conversion added $271,125
WIP beginning (50% for conversion) 20,200 units
Units started 120,500 units
Units completed and transferred out 106,700 units
WIP ending (60% for conversion) 34,000 units
We are to find the cost per equivalent unit for direct materials? (Round your final answer to the nearest cent.)
Let first calculate the total equivalent units for direct materials which is:
= Units completed and transferred out + WIP ending
= (106,700 + 34000) units
= 140700 units
The cost per equivalent unit for direct materials = Costs of materials added (a)/ equivalent number of unit (b)
The cost per equivalent unit for direct materials = $ 393, 100/140700 unit
The cost per equivalent unit for direct materials = $2.79 per unit
Suppose that a country has no public debt in year 1 but experiences a budget deficit of $50 billion in year 2, a budget deficit of $30 billion in year 3, a budget surplus of $20 billion in year 4, and a budget deficit of $2 billion in year 5. a. What is the absolute size of its public debt in year 5?
Answer:
= $62 billion
Explanation:
Since the country started year 1 with no public debt,
The country's debt at the end of year 5 = $50 (deficit year 2) + $30 (deficit year 3) - $20 (surplus year 4, negative deficit) + $2 (deficit year 5)).
= $62 billion
The country's debt at the end of year 5 = $62 billion
Public debt is the sum of deficits and surpluses (negative deficits) over time.
To develop compensation systems for workers, managers should: use all the information available about the workers regardless of the cost of obtaining the information use all the information available only if managers have a concern about the performance of workers. not use any information available if workers are paid efficiency wages. None of the above
Answer:
The correct answer is A
Explanation:
Performance and compensation go hand in hand. To know design a compensation system that takes into account all the information about one's workers is to create suitable compensation for that company.
For instance, the manager should know whether it is non-financial rewards that its management want. Sometimes, staff don't care about official cars, and fantastic health insurances. They just want a great take-home package.
The manager must know this information at all costs. To ignore is to risk the loss of staff, valuable time and even position in the industry.
Cheers!
If Push Company owned 51 percent of the outstanding common stock of Shove Company, which method would be appropriate for financial reporting purposes?
Answer:
Consolidation
Explanation:
Holding method is required for the parent company for financial reporting if the parent company owns 51 percent of more outstanding common stock in the subsidiary.
Here consolidate refers to the combining of total assets and liabilities of two or more entities into one so that it could be maintained as a one firm
Therefore for financial reporting consolidation is appropriate
What is the largest single influence on the movement toward uniformity in the global youth market?
A. mass media
B. education
C. work
D. travel
E. religion
Answer:
The correct answer is the option A: Mass media.
Explanation:
To begin with, nowadays the mass media has increased in the world in a huge and dramatically number. It is possible now, for everyone to start a production of content that will be in the social medias and will affect definitily to everyone involved in the content and furthermore, the youth is now more conected than ever and the use of those medias are more common and easy for them so they see each other very affected by the use of it and all of the content that is in those medias. That is why that the largerest single influence on the movement toward uniformity in the global youth market is mass media.
Lindley Corp.'s stock price at the end of last year was $33.50, and its book value per share was $25.00. What was its market/book ratio? a. 1.48 b. 1.63 c. 1.34 d. 1.41 e. 1.55
Answer:
C. 1.34
Explanation:
Lindley Corp.'s stock price at the end of last year was $33.50, and its book value per share was $25.00. What was its market/book ratio?
To calculate the ratio:
stock price at the end of last year was $33.50 divided by value per share of $25.00
= 33.50/25.0
= 1.34
Fogerty Company makes two products, titanium Hubs and Sprockets. Data regarding the two products follow: Direct Labor-Hours per Unit Annual Production Hubs 0.60 15,000 units Sprockets 0.20 50,000 units Additional information about the company follows:
a. Hubs require $39 in direct materials per unit, and Sprockets require $18.
b. The direct labor wage rate is $12 per hour.
c. Hubs are more complex to manufacture than Sprockets and they require special equipment.
d. The ABC system has the following activity cost pools:
Estimated Activity Activity Cost Pool (Activity Measure) Overhead Cost Hubs Sprockets Total Machine setups (number of setups) $ 28,980 140 112 252 Special processing (machine-hours) $ 92,000 4,600 0 4,600 General factory (organization-sustaining) $ 89,000 NA NA NA
Required:
1. Compute the activity rate for each activity cost pool.
2. Determine the unit product cost of each product according to the ABC system. (Round intermediate calculations and final answers to 2 decimal places.)
Answer:
Fogerty Company
1. Computation of the activity rate for each activity cost pool:
a. Machine setups = Total machine setups overhead costs/total machine setups
= $28,980/252 = $115 per machine set up
b. Special processing = Total special processing overhead costs/total machine hours
= $92,000/4,600 = $20 per machine hour
c. General factory = $89,000/65,000 = $1.369 per unit produced
2. Determination of the unit product cost of each product using ABC system:
Hubs Sprockets
Total production costs $825,640 $1,101,340
Units produced 15,000 50,000
Unit product cost = $55.04 $22.03
Explanation:
a) Data and Calculations:
Activity Cost Pool Overhead Hubs Sprockets Total
(Activity Measure) Costs
Machine setups
(number of setups) $ 28,980 140 112 252
Special processing
(machine-hours) $ 92,000 4,600 0 4,600
General factory
(organization-sustaining) $ 89,000 NA NA NA
Direct labor-hours per unit 0.60 0.20
Total units produced 15,000 50,000 65,000
Direct materials required per unit $39 $18
Direct labor wage rate per hour $12 $12
b) Total direct labor-hours 9,000 10,000 19,000
c) Activity rate for each activity cost pool:
1. Machine setups = Total machine setups overhead costs/total machine setups
= $28,980/252 = $115 per machine set up
2. Special processing = Total special processing overhead costs/total machine hours
= $92,000/4,600 = $20 per machine hour
3. General factory = Total general factory overhead costs divided by total units produced
= $89,000/65,000 = $1.3692 per unit produced
d) Overhead Allocation:
Hubs Sprockets Total
Machine setups $16,100 $12,880 $28,980
Special processing 96,000 0 96,000
General factory 20,540 68,460 89,000
Total overhead costs $132,640 $81,340 $213,980
e) Total costs per product
Hubs Sprockets Total
Direct materials costs $585,000 $900,000 $1,485,000
Direct labor costs $108,000 $120,000 $228,000
Total overhead costs $132,640 $81,340 $213,980
Total production costs $825,640 $1,101,340 $1,926,980
Units produced 15,000 50,000
Unit product cost = $55.04 $22.03
f) Activity based costing system (ABC) is a costing technique that accumulates according to activity pools and allocates costs based on the activities carried out. For example, the general factory overhead costs, could be allocated based on direct labour hours, machine hours, or total units of production. It calculates the allocation rate based on the accepted activity pool.
Brand managers know that increasing promotional budgets eventually result in diminishing returns. The first one million dollars typically results in a 26% increase in awareness, while the second million results in adding another 18% and the third million in a 5% increase. Andrews’s product Adam currently has an awareness level of 80% . While an important product for Andrews, Adam’s promotion budget will be reduced to one million dollars for the upcoming year. Assuming that Adam loses one-third of its awareness each year, what will Adam’s awareness level be next year?
Answer:
52.88%
Explanation:
The computation of the awareness level for next year is shown below
But before that we need to find out the ending awareness i.e Y which is
= 80% × (1 - 1 ÷ 3)
= 53.33%
Now awareness after the promotion is
= 53.33% + 26%
= 79.33%
Now the ending awareness i.e (Y +1) is
= 79.33% × 2 ÷ 3
= 52.88%
Hence, the awareness level next year is 52.88%
Travelwell manufactures and sells luggage and briefcases. Their marketing research indicates that durability is the attribute that consumers most desire in their luggage and briefcases. Travelwell now emphasizes durability in all of their promotional efforts. This strategy is intended to build brand equity.
a) true
b) false
Answer:
a) true
Explanation:
When we are talking about building brand equity, we are talking about increasing our customers' perception and value of our brand or company's name. Building brand equity emphasizes the brand itself over any specific product or service that our company offers. E.g. Rolls Royce is the most luxurious car manufacturer in the world, and they built brand equity upon luxury in all its vehicles, not one specific car.
In this case, Travelwell is emphasizing a characteristic that should apply to all its product line, not just one specific type of luggage.
Creighton Construction ordered $200,000 worth of steel beams for a new project. The invoice listed trade discounts of 30/20/15. The Net Price = $95,200
A. True
B. False
Answer:
A. True
Explanation:
The trade discounts of 30/20/15 indicate that the discounts are deducted one after the other from the list price.
First, you calculate the price after the 30% discount from $200,000:
200,000*(1-0.3)=200,000*0.7= $140,000
Now, you have to calculate the new value after the 20% discount from $140,000:
140,000*(1-0.2)=140,000*0.8= $112,000
Then, you have to calculate the new value after the 15% discount from $1112,000:
112,000*(1-0.15)=112,000*0.85=$95,200
According to this, the Net Price is $95,200 and the statement is true.