Answer:
18.01
Explanation:
The computation of return on equity is shown below:-
Return on equity = Profit margin × Asset turnover × Equity multiplier
= 10.50 × 1.33 × 1.29
= 0.105 × 1.33 × 1.29
= 0.1801485
or
= 18.01
Therefore for computing the return on equity we simply applied the above formula i.e by multiplying the profit margin with the asset turnover and the equity multiplier
Eva received $60,000 in compensation payments from JAZZ Corp. during 2018. Eva incurred $5,000 in business expenses relating to her work for JAZZ Corp. JAZZ did not reimburse Eva for any of these expenses. Eva is single and she deducts a standard deduction of $12,000. Based on these facts answer the following questions:
Use Tax Rate Schedule for reference. (Round your final answer to the nearest whole dollar amount.)
a. Assume that Eva is considered to be an employee. What is her regular income tax liability for the year? (Round your answer to 2 decimal places.)
Regular tax liability: $____________________
b. Assume that Eva is considered to be a self-employed contractor. What is her self-employment tax liability for the year?
Self-employment tax liability: $___________________
c. Assume that Eva is considered to be a self-employed contractor. What is her regular tax liability for the year? (Round your answer to 2 decimal places.)
Regular tax liability: $____________________
Answer:
A.Regular income tax liability
$8,181.25
B.Self-employment tax liability $6,870.84
C.Regular tax liability $7,538.50
Explanation:
a.The computation of Eva's regular income tax liability
(1) Salary $60,000
(2) Standard deduction(12,000)
Itemized deductions less than standard deduction.
(4) Taxable income (60,000-12,000)$48,000
(48,000 – 34,000) × 25% + 4,681.25 [see tax rate schedule for Single individuals]
Therefore Eva's regular income tax liability is $8,181.25.
b. Calculation for Eva self-employment tax liability for the year
The self-employment tax rate is 12.4% of the Social Security tax
Hence, Self-employment tax applies to net earnings
92.35% of the net earnings from self-employment is been often subjected to self-employment tax.
Hence,
Net Earnings = $.60,000 x 92.35% = $ 55,410
Therefore,
Eva Self-employment tax liability will be:
= $ 55,410 x 12.4% = $6,870.84
c.Calculation for Eva regular tax liability for the year
Eva received compensation for the Year = $60,000
Standard deduction = $12,200
Taxable Income for the Year = $47,800
Tax Brackets and Rates, 2018
Rate For Unmarried Individuals, Taxable
Income Over
10 $0
12 $9,700
22 $39,475
24 $84,200
32 $160,725
35 $204,100
37 $510,300
Hence
Eva's Regular Tax liability for the Year 2019 will be calculated as:
- 9,700 10 970.00
9,700 39,475 12 4,737.00
39,475 8,325 22 1,831.50
Total 7,538.50
970.00+4,737.00+1,831.50=7,538.50
Therefore Eva's Regular Tax liability for the Year 2018 will be $7,538.50
31) Owen expects to receive $30,000 at the end of next year from a trust fund. If a bank loans money at an interest rate of 8.2%, how much money can he borrow from the bank on the basis of this information? A) $2460 B) $13,863 C) $27,726 D) $32,460
Answer:
c. $27,726
Explanation:
The money he can borrow using this information is
=30,000 /( 1+8.2%)
=30,000 / (1+0.082)
=30,000 / 1.082
=27726.432
=$27,726
Gross profit is equal to a. sales plus cost of goods sold b. sales less selling expenses c. sales less cost of goods sold d. sales plus selling expenses
Answer:
sales less cost of goods sold
Explanation:
Gross profit is the profit earned after after deducting the costs of goods sold from revenue
I hope my answer helps you
Jorgensen High Tech Inc. is a calendar-year, accrual-method taxpayer. At the end of year 1, Jorgensen accrued and deducted the following bonuses for certain employees for financial accounting purposes.
$40,000 for Ken.
$30,000 for Jayne.
$20,000 for Jill.
$10,000 for Justin.
How much of the accrued bonuses can Jorgensen deduct in year 1 under the following alternative scenarios?
(Leave no answer blank. Enter zero if applicable.)
Jorgensen paid the bonuses to employees on March 1 of year 2, and there is a requirement that the employee remain employed with Jorgensen on the payment date to receive the bonus.
Answer:
May deduct 100,000 in year 2 because the amount weren’t fixed at end of year 1 reason been that the employees are tend to be eligible to receive the bonuses only in a situation where they are employed on date that bonuses were been paid.
Explanation:
Calculation of How much of the accrued bonuses can Jorgensen deduct in year 1
March 1 of Year 2
Ken 40,000
Jayne30,000
Jill20,000
Justin 10,000
Total 100,000
In March 1 of year 2 the amount of $ 100,000 may
likely be deducted reason been that it was paid within 2 and a half months of year end.
Since we were told that Jorgensen paid the bonuses to employees on March 1 of year 2 and was as well told that the employee remain employed with Jorgensen on the date of the payment in order to receive the bonus this means that May deduct 100,000 in year 2 because the amount weren’t fixed at end of year 1 reason been that the employees are tend to be eligible to receive the bonuses only in a situation where they are employed on date that bonuses were been paid.
The following are selected 2017 transactions of Sean Astin Corporation.
Sept. 1 Purchased inventory from Encrino Company on account for $50,000. Astin records purchases gross and uses a periodic inventory system.
Oct. 1 Issued a $50,000 12-month, 8% note to Encino in payment of account
Oct. 1 Borrowed $50,000 from the Shore Bank by signing a 12-month, zero-interest-bearing $54,000 note.
Instructions:
(A) Prepare journal entries for the selected transactions above
(B) Prepare adjusting entries at December 31
(C) Compute the total net liability to be reported on the December 31 balance sheet for: The interest-bearing note & the zero-interest-bearing note.
Answer and Explanation:
The Journal entries are shown below:-
A. a. Purchase Dr, $50,000
To Accounts payable $50,000
(Being purchase of inventory is recorded)
b.Accounts payable Dr, $50,000
To Notes payable $50,000
(Being issuance of notes is recorded)
c.Cash Dr, $50,000
Discount on notes payable Dr, $4,000
To Notes payable $54,000
(Being amount borrowed from bank and issued notes is recorded)
B. a. Interest expenses Dr, $1,000 ($50,000 × 8% × 3 ÷ 12)
To Interest payable $1,000
(Being interest expenses is recorded)
b. Interest expenses Dr, $1,000 ($4,000 × 3 ÷ 12)
To Discount on notes payable $1,000
(Being interest expenses is recorded)
C. The Computation of interest-bearing note and the zero-interest-bearing note is shown below:-
Interest-bearing note = Note payable + Interest payable
= $50,000 + $1,000
= $51,000
Zero-interest-bearing note = Note payable - Discount
= $54,000 - ($4,000 - $1,000)
= $54,000 - $3,000
= $51,000
A. The journal entries is the 1st stage of the accounting process, it records the business transactions of monetary nature in a the order of its occurrence.
B. The adjusting entries are the type of journal entries prepared at the end of the financial period to record the amount of expenses and incomes not incurred in the current period.
C. Total net liabilities is $102,000.
Computation:
The journal entries of A and B are shown in the image attached below.
C.
[tex]\begin{aligned}\text{Interest Bearing Note}&=\text{Notes Payable+Interest Payable}\\&=\$50,000+\$1,000\\&=\$51,000\end{aligned}[/tex]
[tex]\begin{aligned}\text{Zero-Interest Bearing Note}&=\text{Notes Payable-Discount}\\&=\$54,000-(\$4,000-\$1,000)\\&=\$51,000\end{aligned}[/tex]
The sum of interest bearing note and zero interest bearing note will be the total amount of net liabilities.
To know more about journal entries, refer to the link:
https://brainly.com/question/17439126
Power Company issued a $ 1,000,000, 5 %, 10-year bond payable at at face value on January 1, 2016. Requirements
1. Journalize the issuance of the bond payable on January 1, 2016.
2. Journalize the payment of semiannual interest on July 1, 2016. (Record debits first, then credits. Select explanations on the last line of the journal entry.)
Answer and Explanation:
The journal entries are shown below:
1. Cash Dr $1,000,000
To Bond payable $1,000,000
(Being the issuance of the bond is recorded)
For recording this we debited the cash as it increased the assets and credited the bond payable as it also increased the liabilities
2. Interest Expense Dr ($1,000,000 × 5% × 1 ÷ 2) $25,000
To Cash $25,000
(Being the interest expense is recorded)
For recording this we debited the interest expense as it increased the expense and credited the cash as it decreased the asset
If a small electric automobile manufacturer is able to gain the social return generated by its electric motor, its demand for financial capital would
Answer: shift to the left
Explanation:
The social return helps in comparing the value of benefits and the costs to achieving the benefits. The social return is the ratio of net present value of the benefits in comparison to the net present value of the investment or the costs to getting the benefits.
In this case, if a small electric automobile manufacturer is able to gain the social return generated by its electric motor, it would decrease the demand for financial capital which simply means that the demand for financial capital will shift to the left. This shift to the left is as a result of the gain in its social return gotten by the electric motor.
The table below shows the values for several different components of GDP.
Component Value (billions of dollars)
Consumer durables $1,329.0
Consumer nondurables 2,679.0
Services 8,112.3
Business fixed investment 2,850.0
Residential fixed investment 578.0
Inventories 93.3
Exports 2,352.3
Imports 2,901.5
Government purchases 3,189.3
Requried:
What is the value of total gross investment?
Answer:
$3,521.30
Explanation:
The computation of value of total gross investment is shown below:-
Total gross investment = Business fixed investment + Residential fixed investment + Inventories
= $2,850.0 + $578.0 + $93.3
= $3,521.30
Therefore for computing the total gross investment we simply applied the above formula and ignore all other values as they are not relevant.
True or False: If a firm changes its credit policy and allows customers to pay in 90 days instead of 60 days, and everything else remains the same, the net cash flow in the next quarter is likely to decrease.
Answer:
True
Explanation:
by increasing the time customers can pay to 90 days, the amount of cash inflows is likely to reduce. thus, the net cash flow in the next quarter is likely to decrease.
Journalizing and posting an adjusting entry for office supplies
On November 1, Carlisle Equipment had a beginning balance in the Office Supplies account of $600. During the month, Carlisle purchased $2,300 of office supplies. At November 30, Carlisle Equipment had $500 of office supplies on hand.
Requirements
1. Open the Office Supplies T-account, and enter the beginning balance and purchase of office supplies.
2. Record the adjusting entry required at November 30.
3. Post the adjusting entry to the two accounts involved, and show their balances at November 30.
Answer:
Office Supplies T-account
Debit :
Beginning Balance $600
Purchases $2,300
Totals $2,900
Credit:
Ending Balance $500
Used (Balancing Figure) $2,400
Totals $2,900
Adjusting Entry
Supplies Expenses $2,400 (debit)
Office Supplies $2,400 (credit)
Posting Entries.
1. Supplies Expense = $2,400 (Debit Balance)
2.Office Supplies = $500 (Debit Balance)
Explanation:
As the supplies are used during the period, recognize an expense : Supplies Expense and de-recognize the Office Supplies Asset account to the extend of the amount of inventory used during the period.
In other words we are taking out an expense (Increasing it) and decreasing an asset : Office Supplies.
Suppose a farmer is expecting that her crop of oranges will be ready for harvest and sale as 150,000150,000 pounds of orange juice in 33 months time. Suppose each orange juice futures contract is for 15,00015,000 pounds of orange juice, and the current futures price is F_0 = 118.65F 0 =118.65 cents-per-pound. Assuming that the farmer has enough cash liquidity to fund any margin calls, what is the risk-free price that she can guarantee herself. Please submit your answer in cents-per-pound rounded to two decimal places. So for example, if your answer is 123.456123.456, then you should submit an answer of 123.47123.47. 1 point
Answer:
121.30
Explanation:
The future price guarantees the holder of the contract to trade a commodity at a predetermined price at a later date. The farmer has orange crops ready for sale amounting $150,000. The number of contracts required is 150,000 / 15,000 = 10 contracts.
The spot price is 118.65 cents per pound. The risk free price is the value at which farmer has agreed to sell its crops. The risk free future price will be (1 + spot price)^-time * number of contracts / time
= (1 + 118.65)^-33 * 10 / 33
= 121.30
What is the 5 stage plan for productive meetings? - Why is this important and how will it improve the success of developing a charter? - What is an example of a meeting where you've had the same experience as the video?
Answer:
Answer:
The 5 stage plans for productive meeting :
1. Agenda of meeting : This is very important in every meeting , what we need to discuss , why this meeting is so important for everyone ,etc .
2. Attendees :We have to clear about the level of meeting and we need to be specific. The number of people in the meeting should not be too large if it is not necessary .
3. Short meeting :The time period of meeting should not be too large , because in the large meeting people are getting bored and did not show full concentration during the meeting.
4. Agenda orientation:Meeting should be under and proper agenda , meeting should be deviate from the goal.
5. Outcome from meeting:After completing the meeting , there should be a list of outcome from that meeting and need to apply .
Team Charter:
Team charter is very important tool for proper functioning of a team.It help the team to achieve a specific target within the given time limit.Following are the reasons why team charter is so important.
1. Charter support
2. Define team target
3. Proper communications between team
4. Effective planning
5. Authority level
Video meeting:
Generally Skype is used for video meeting. When all the people are at different location , Skype used for online meeting.The cost of that meeting is not too high , so we can say that this is also a cost effective meeting.
On October 1, Vaughn's Carpet Service borrows $349000 from First National Bank on a 4-month, $349000, 9% note. What entry must Vaughn's Carpet Service make on December 31 before financial statements are prepared
Answer:
Dr Notes Payable 349,000
Dr Interest Payable 10,470
Cr Cash 359,470
Explanation:
Preparation of Vaughn's Carpet Service Journal entry
Since we were told that Vaughn's Carpet Service borrows the amount of $349,000 on 1st October from First National Bank based on a 4-month, $349,000, 9% note the transaction will be recorded as :
Dr Notes Payable 349,000
Dr Interest Payable 10,470
Cr Cash 359,470
$349,000 +($349,000 *.09* 4/12)
=$349,000+10,470
=$359,,470
True or false: The plantwide overhead rate method uses multiple rates to allocate overhead costs to products.
Answer:
Flase.
Explanation:
The plantwide overhead rate method uses multiple rates to allocate overhead costs to products.
False.
As the name indicates, the plantwide overhead rate uses a single rate to allocate overhead. When the predetermined overhead rate is calculated using the activity base method, you have as many predetermined rates as activities.
To calculate a plant-wide overhead rate, you need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Grossnickle Corporation issues 20-year, noncallable, 7.1% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 19 years to maturity
Answer:
Price of bond= $1,185.72
Explanation:
The price of a bond is the present value (PV) of the future cash inflows expected from the bond discounted using the yield to maturity.
These cash flows include interest payment and redemption value
The price of the bond can be calculated as follows:
Step 1
PV of interest payment
annual coupon rate = 7.1%
Annual Interest payment =( 7.1%×$1000)= $71
Annual yield = = 5.5%
PV of interest payment
= A ×(1- (1+r)^(-n))/r
A- interest payment, r- yield - 5.5%, n- no of periods -19 periods
= 71× (1-(1.055)^(-19))/0.055)
= 71× 11.60765352
= 824.143
Step 2
PV of redemption value (RV)
PV = RV × (1+r)^(-n)
RV - redemption value- $1000, n- 19, r- 5.5%
= 1,000 × (1+0.055)^(-19)
= 361.579
Step 3
Price of bond = PV of interest payment + PV of RV
$824.143 + $361.579
Price of bond= $1,185.72
Jose has one evening in which to prepare for two exams and can employ one of two possible strategies: Strategy Score in Economics Score in Statistics 1 93 81 2 77 92 The opportunity cost of receiving a 93 on the economics exam is __________ points on the statistics exam. a. 11 b. 81 c. 15 d. 12
Answer:
b. 81
Explanation:
The opportunity cost refers to the cost in which we foregone the options among the available ones. In this we have to sacrificed to gain another thing. We called as a real cost also
Since in the question it is given that the opportunity cost of receiving 93 on the economics exam would lead to 81 points on the statistics exam
hence, the correct option is b. 81
South Airlines purchased a 747 aircraft on January 1, 2017, at a cost of $35,000,000. The estimated useful life of the aircraft is 20 years, with an estimated salvage value of $5,000,000. On January 1, 2020 the airline revises the total estimated useful life to 15 years with a revised salvage value of $3,500,000. Compute the depreciation and book value at December 31, 2019 using the straight-line method and the double-declining-balance method.
Answer:
purchase cost January 1, 2017 = $35,000,000
useful life 20 years, salvage value $5,000,000
depreciation expense per year
straight line method = ($35,000,000 - $5,000,000) / 20 = $1,500,000 per year
accumulated depreciation = $4,500,000
book value on December 31, 2019 = $35,000,000 - ($1,500,000 x 3) = $30,500,000
double-declining-balance method:
depreciation expense year 1 = 2 x 1/20 x $35,000,000 = $3,500,000
depreciation expense year 2 = 2 x 1/20 x $31,500,000 = $3,150,000
depreciation expense year 3 = 2 x 1/20 x $28,350,000 = $2,835,000
accumulated depreciation = $9,485,000
book value on December 31, 2019 = $35,000,000 - $9,485,000 = $25,515,000
Accounting software for small businesses has become so sophisticated that most small business owners will never need to consult with an actual accountant or understand accounting information themselves.
a. True
b. False
3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash?
Complete Question:
The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $166,436. The bank statement indicated a balance of $195,688 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
a. Checks outstanding totaled $19,427.
b. A deposit of $12,300, representing receipts of June 30, had been made too late to appear on the bank statement.
c. The bank collected $26,500 on a $25,000 note, including interest of $1,500.
d. A check for $4,000 returned with the statement had been incorrectly recorded by Pala Medical Co. as $400. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account.
e. A check drawn for $195 had been erroneously charged by the bank as $915.
f. Bank service charges for June amounted to $55.
Answer:
Pala Medical Co.
Cash amount in the balance sheet = $189,281
Explanation:
a) Calculations:
Adjusted Cash balance at June 30, 20Y1
Cash balance $166,436
c) Note received by bank 25,000
c) Interest on the note 1,500
d) Returned check (3,600)
e) Bank charges (55)
Adjusted cash balance $189,281
b) Balance as per bank statement = $195,688
a. Checks outstanding totaled ($19,427)
b. A deposit of $12,300
e. Overstated cheque 720
Adjusted bank statement balance $189,281
c) Preparing a bank reconciliation helps to identify discrepancies between the cash book balance of Pala Medical Co and the company's bank statement balance. After the necessary adjustments, the two balances always agree and the adjusted figure is taken to the balance sheet.
Julie Whiteweiler made $930 this week. Only social security (fully taxable) and federal income taxes attach to her pay. Whiteweiler contributes $100 each week to her company's 401(k) plan and has $25 put into her health savings account (nonqualified) each week. Her employer matches this $25 each week.
Required:
Determine Whiteweiler's take-home pay if she is single and claims 4 allowances (use the wage-bracket method).
Answer:
Step 1: Calculate FICA (OASDI & HI):
Total wage subjected to FICA is $930. Why? Contributions to 401K is only exempted from Fed. Income Tax Withholding (FIT) not FICA. As for HSA contrib., it is exempted for both FICA and FIT. However, the plan is non-qualified, which means that $25 contributed by employee is taxable for both. The $25 matching from employer for HSA is excluded from income and income taxes.
OASDI RATE 2012: 4.2% of $930; therefore, $39.06
HI RATE 2012: 1.45% of $930; therefore, $13.49
TOTAL FICA TAX: $52.55
STEP 2: Calculate FIT:
Total earnings subjected to FIT is ($930-100)= $830. Why? $100 contributions to 401k is exempted from FIT. HSA contrib. is unqualified.; therefore, contributions from employee is taxable. Using Wage Bracket Method 2012, the FIT is $89.
STEP 3: Getting the Take-Home Pay answer:
($930-100(401k))-25(HSA:Employee)-$52.55(FICA)-89(FIT)=$663.45
Explanation:
The December 31, 2018, balance sheet of Whelan, Inc., showed $136,000 in the common stock account and $2,610,000 in the additional paid-in surplus account. The December 31, 2019, balance sheet showed $146,000 and $2,910,000 in the same two accounts, respectively. The company paid out $141,000 in cash dividends during 2019.
Required:
What was the cash flow to stockholders for the year?
Answer:
$169,000 negative
Explanation:
Equity = Common stock + Additional paid in surplus
Total equity at beginning= Common stock + Additional paid in surplus
=136,000+2,610,000=$2,746,000
Total equity at end= Common stock + Additional paid in surplus
=146,000+2,910,00)=$3,056,000
Hence new equity = Total equity at End - Total equity at beginning
3,056,000-2,746,000=$310,000
Cash flow to stockholders = Dividends paid - New equity
= 141,000-310,000
= -169,000
=$169,000 negative
Since 2003, Walmart has been a proponent of RFID technology, and the company wanted all of its suppliers to make use of RFID technology.The most likely reason that Walmart is supporting this technology is to help them:
Answer:
Explanation:
The most likely reason for Walmart to support this technology is that it will allow them to track and process items from their suppliers at a much more efficient rate. Since RFID technology uses radio waves to read and capture information stored on a tag attached to an object, providing a unique identifier for an object. These unique tags allow each individual item to be tracked throughout the whole process from supplier to warehouse to client. Thus preventing losses and reducing costs.
There are 3 blanks for this homework problem I do not know how to do. The quesetions are bolded with blanks and question marks.
Weighted Average Method, Unit Costs, Valuing Inventories
Byford Inc. produces a product that passes through two processes. During November, equivalent units were calculated using the weighted average method:
Units completed 196,000
Add: Units in EWIP X Fraction complete (60,000 X 40%) 24,000
Equivalent units of output (weighted average) 220,000
Less: Units in BWIP X Fraction complete (50,000 X 70%) 35,000
Equivalent units of output (FIFO) 185,000
The costs that Byford had to account for during the month of November were as follows:
BWIP $107,000
Costs added 993,000
Total $1,100,000
Required:
1. Using the weighted average method, determine unit cost.
per unit ___________??
2. Under the weighted average method, what is the total cost of units transferred out? What is the cost assigned to units in ending inventory?
Cost of units transferred out _____________??
Cost of ending inventory______________??
Answer and Explanation:
1. The computation of unit cots is shown below:-
Unit cost = Total cost ÷ Equivalent units of output
Cost of per unit = $1,100,000 ÷ 220,000
= $5
2. The computation of the total cost of units transferred out and cost assigned to units in ending inventory is shown below:-
Transfer Out EWIP Total
Cost accounted for:
Goods transfer Out
(196,000 x $5) $980,000 $980,000
Goods EWIP
(24,000 x $5) 0 $120,000 $120,000
Total Cost $980,000 $120,000 $1,100,000
EWIP = Ending work in process
The term market economy is often used interchangeably with what other term?
A. Socialism
B. Capitalism
C. Communism
D. Democracy
Answer:
B. Capitalism
Explanation:
Capitalism is a type of economic system where individuals or corporations own capital goods and make financial decisions based on market prices, cost of production, and distribution of goods which are determined by competition in the free market.
The term "market economy" is often used interchangeably with Capitalism because they are similar.
war correspondents are reporters who travel with troops to report from the front lines of conflict
-true
-false
If 10,000 units that were 40% completed are in process at November 1, 80,000 units were completed during November, and 12,000 were 20% completed at November 30, the number of equivalent units of production for November was 75,600. (Assume no loss of units in production and that inventories are costed by the first-in, first-out method.)
a. True
b. False
Answer:
Number of equivalents units= 78,400
Explanation:
Giving the following information:
Beginning inventory= 10,000 units that were 40%
Units completed= 80,000
Ending inventory= 12,000 were 20% completed
We will determine the number of equivalents units using the following structure:
COST PER EQUIVALENT UNITS:
Beginning work in process = beginning inventory* %incompleted
Units started and completed = units completed - beginning WIP
Ending work in process completed= Ending WIP* %completed
=Number of equivalent units
Beginning work in process = 10,000*0.6= 6,000
Units started and completed = 80,000 - 10,000= 70,000
Ending work in process completed= 12,000*0.2= 2,400
= 78,400
A manager invests $400,000 in a technology that should reduce the overall costs of production. The company managed to reduce their cost per unit from $2 to $1.85. After the investment has been made, the $400,000 investment is
Answer:
a. Considered sunk costs, not relevant in further decision making
Explanation:
the missing options are:
a. Considered sunk costs, not relevant in further decision making b. Considered sunk costs, but still relevant in further decision making c. Considered a loss d. Considered a profitAfter the investment in new technology has been made, it will be considered a sunk cost, because they are no longer relevant or important when considering or evaluating future investments and projects. Sunk costs are expenses that have already been made and incurred, and cannot be recouped.
You run a medium-sized farming equipment repair firm in North Dakota. Your busiest season is the late fall through winter months when area farmers need repairs done to their equipment. Because you have limited cash flow, keeping extra people on your payroll is expensive and undesirable. You have determined that each worker must work 120 hours per month and you can repair an average of 42 machines each month. If their labor productivity rate is 0.52 how many workers can you employ at your company
Answer:
0.67
Explanation:
Let x be the number of labors we need to employ at our company
If 120 hours of labor prepare 42 machines and productivity rate is 0.52 then the equation would be like
x*0.52*120hours = 42 machines
x = 42/(0.52x120)
x = 0.67
company earnings per share market value per share 1 $ 12.00 $ 176.40 2 10.00 96.00 3 7.50 93.75 4 50.00 250.00 a. compute the price-earnings ratio for each of these four separate companies. b. for which of these four companies does the market have the lowest expectation of future performance
Answer:
a) compute the price-earnings ratio for each of these four separate companies.
To find the price-earnings ratio fir each company, use the formula:
P.E ratio = Market value per share/ Earnings per share
Company 1:
Price-earnings ratio = [tex] \frac{176.40} {12.00} = 14.70 [/tex]
Company 2:
Price-earnings ratio = [tex] \frac{96.00}{10.00} = 9.6 [/tex]
Company 3:
Price-earnings ratio = [tex] \frac{93.75}{7.50} = 12.50[/tex]
Company 4:
Price-earnings ratio = [tex] \frac{250.00}{50.00} = 5.0 [/tex]
b) The market will have the lowest expectation of future performance from company 4 because
the price-earnings ratio of company 4 is the lowest.
Answer the question on the basis of the given consolidated balance sheet of the commercial banking system. Assume that the reserve requirement is 20 percent. All figures are in billions.
Assets Liabilities & Net Worth
Reserves $200 Checkable Deposits $1,000
Securities 300 Stock Shares 400
Loans 500
Property 400
If the Fed increased the reserve requirement from 20 percent to 25 percent, a deficiency of reserves in the commercial banking system of _____ would occur and the monetary multiplier would fall to ____.
a. $50 billion; 5
b. $10 billion; 4
c. $50 billion; 4
d. $10 billion; 8
Answer:
If the Fed increased the reserve requirement from 20 percent to 25 percent, a deficiency of reserves in the commercial banking system of $50 billion would occur and the monetary multiplier would fall to 4. The right answer is c
Explanation:
In order to calculate the deficiency of reserves in the commercial banking system we would have to make the following calculation:
deficiency of reserves in the commercial banking system=New Reserves- Reserves
Reserves=Checkable Deposits*reserve requirement
Reserves=$1,000*20%
Reserves=$200 billion
New Reserves=Checkable Deposits*reserve requirement increase
New Reserves=$1,000*25%
New Reserves=$250 billion
Therefore, deficiency of reserves in the commercial banking system=$250 billion-$200 billion
deficiency of reserves in the commercial banking system= $50 billion
To calculate the monetary multiplier we would have to make the following calculation:
monetary multiplier=1/new reserve ratio
monetary multiplier=1/0.25
monetary multiplier=4
Therefore, If the Fed increased the reserve requirement from 20 percent to 25 percent, a deficiency of reserves in the commercial banking system of $50 billion would occur and the monetary multiplier would fall to 4