Answer:
A. Working capital will remain the same at $18,964,118C. Chesters' long-term debt will rise by $9,000,000E. Total liabilities will be $139,957,573Explanation:
You included no balance sheet for Chester so I will answer based on inference.
Option A is most likely correct because Working capital relates to Current Assets less Current liabilities so Plant and Equipment (fixed assets) and bonds (long term liabilities) will not affect it.
Total assets rising to $235,525,291 is also quite possible if the assets were previously $225,525,291 so just check for that but this is most likely correct.
Option C is wrong because the long term debt should rise by $10,000,000 which is the value of the bonds.
Option D is wrong as well as this relates to long term bonds not investment by shareholders.
Total liabilties rising is probably correct if the current figure on the balance sheet is $129,957,573 because that would mean that it increased by $10,000,000 which is the price of the bond.
So just check your given balance sheet for Options C and E for my notes and if correct, they are your answers as well as A.
A job cost sheet of Sandoval Company is given below.
Job Cost Sheet
JOB NO. 469 Quantity 2,500
ITEM White Lion Cages Date Requested 7/2
FOR Todd Company Date Completed 7/31
Date Direct Direct Labor Manufacturing
Materials Labor Overhead
7/10 700
12 900
15 440 550
22 380 475
24 1,600
27 1,500
31 540 675
Cost of completed job:
Direct materials
Direct labor
Manufacturing overhead
Total cost
Unit cost
(1) What are the source documents for direct materials, direct labor, and manufacturing overhead costs assigned to this job?
Source Documents
Direct materials pixel.gifMaterials requisition slipsPredetermined overhead rateTime tickets
Direct labor pixel.gifMaterials requisition slipsPredetermined overhead rateTime tickets
Manufacturing overhead pixel.gifMaterials requisition slipsPredetermined overhead rateTime tickets
(2) What is the predetermined manufacturing overhead rate? (Round answer to 0 decimal places e.g 135.)
Predetermined manufacturing overhead rate pixel.gif %
(3) What are the total cost and the unit cost of the completed job? (Round unit cost to 2 decimal places, e.g. 1.25.)
Total cost of the completed job $pixel.gif
Unit cost of the completed job $pixel.gif
Answer:
A. Direct materials-Materials requisition slips
Direct labor-Time tickets
Manufacturing overhead- Predetermined overhead rate
B. 125%
C. Total cost $7,760
Unit cost $3.104
Explanation:
1. Based on the information given the source documents for direct materials, direct labor, and manufacturing overhead costs assigned to this job are :
Direct materials-Materials requisition slips
Direct labor-Time tickets
Manufacturing overhead- Predetermined overhead rate
2. Calculation to determine the predetermined manufacturing overhead rate
Predetermined overhead rate=$550/$440*100
Predetermined overhead rate=125%
Therefore the predetermined manufacturing overhead rate is 125%
3. Calculation to determine the total cost and the unit cost of the completed job
TOTAL COST
Direct Material $4, 700
($700 + $900 + $1,600 + $1,500)
Add Direct Labor $1,360
($440 + $380 + $540)
Add Manufacturing Overhead $1,700
($550 + $475 + $675)
Total Cost $7,760
UNIT COST
Unit cost= $7,760/ 2,500
Unit cost=$3.104
Therefore the total cost is $7,760 and the unit cost of the completed job is $3.104
The Feedforward system cannot anticipate problems before it occurs.
A) True
B) False
Paola and Isadora Shaw are married, file a joint tax return, and have one dependent child, Dante. The Shaws report modified AGI of $139,220. The couple paid $14,970 of tuition and $8,610 for room and board for Dante, a full-time first-year student at Serene College and claimed as a dependent by Paola and Isidora.
Required:
Determine the amount of the Shaws' American Opportunity credit for the year.
Answer: $2500
Explanation:
The American opportunity tax credit has to do with the expenses which is paid on qualified education for a student who's eligible and this is typically for the first four years.
A maximum annual credit of $2,500 can be gotten per eligible student. Since the modified AGI of $139,220 is less than $180000 which is the limit, then they'll be eligible for $2500.
You want to evaluate three mutual funds. The risk-free return during the sample period is The average returns, standard deviations, and betas for the three funds are given below. 5%. as are the data for the S&P 500 Index.
Fund Avg Std Dev Beta
A 13.6% 40% 1.1
B 13.1% 25% 1.0
C 12.4% 30% 1.3
S&P 500 12.0% 15% 1.0
You want to evaluate the three mutual funds using the Sharpe ratio for performance evaluation. The fund with the highest Sharpe ratio of performance is.
a. fund A
b. fund B
c. fund C
d. The answer cannot be determined from the information given.
Answer:
b. fund B
Explanation:
The computation is shown below;
For fund A
= (Return - risk free rate) ÷ (standard deviation)
= (13.6% - 6%) ÷ 40%
= 7.6% ÷ 40%
= 0.19
For fund B
= Return - risk free rate ÷ standard deviation
= 13.1% - 6% ÷ 25%
= 7.1% ÷ 25%
= 0.284
For fund C = Return - Risk free rate ÷ standard deviation
= 12.4% - 6% ÷ 30%
= 6.4% ÷ 30%
= 0.213
So here the highest sharpe ratio is of fund B
MARIN INC. Income Statement For the Year Ended December 31, 2020
Sales revenue $425,500
Cost of goods sold 240,400
Gross profit 185,100
Expenses (including $12,000 interest and $26,000 income taxes) 75,400
Net income $109,700
Additional information:
1. Common stock outstanding January 1, 2022, was 26,300 shares, and 36,100shares were outstanding at December 31, 2022.
2. The market price of Marin stock was $14 in 2022.
3. Cash dividends of $24,000 were paid, $3,600 of which were to preferred stockholders.
Compute the following measures for 2022:
a. Earnings per share
b. Price-earnings ratio
c. Payout ratio
d. Times interest earned
Answer:
MARIN INC.
a. Earnings per share = $106,100/36,100 = $2.94
b. Price-earnings ratio = $14/$2.94 = 4.76 times
c. Payout ratio = $20,400/$106,100 = 0.19
d. Times interest earned = EBIT/Interest expense
= ($185,100 - $37,400)/$12,000
= $147,700/$12,000
= 12.31 times
Explanation:
A) Data and Calculations:
MARIN INC. Income Statement For the Year Ended December 31, 2020
Sales revenue $425,500
Cost of goods sold 240,400
Gross profit 185,100
Expenses:
Operating expenses $37,400
Interest $12,000
Income taxes $26,000
Total expenses 75,400
Net income $109,700
Preferred stock dividends 3,600
Available to common stock $106,100
Additional information
1. Outstanding common stock:
January 1, 2022 = 26,300 shares
December 31, 2022 = 36,100 shares
Additional issues = 9,800 shares
2. Market price of stock = $14
3. Cash dividends:
Preferred stock $3,600
Common stock 20,400
Total dividends paid $24,000
What is one problem a new bank may encounter when offspring a product or service for a market niche in an area.
A. Market saturation.
B. Established competitors can quickly provide the same service.
C. Physical location of the bank.
D. Customer base too small.
Answer:
D or C
Explanation:
because it just make sense
__________ is a concept that describes how new forms of retail outlets enter the market.
a. Early adopters.
b. Innovative entrants.
c. Wheel of retailing.
d. Retail life cycle.
Answer:
The correct answer is the option C: Wheel of retailing.
Explanation:
To begin with, the term known as "Wheel of retailing" refers to the theory established by Prof. Malcolm Perrine McNair in the year 1931 and that has been around since then until these days yet. The concept focus on the phases that a retailer store goes through in order to become a very large establishement. Therefore that it shows how new forms of retail outlets enter the market.
In the other options, both the early adopters and innovative entrants refers to types of consumers that faces new products at the birth of it. While the retail life cycle refers more to the whole life of the retail store that is showed in a graphic done in order to understand that life.
Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions) for 2020 are presented below.
End of Year Beginning of Year
Cash and cash equivalents $750 $81
Accounts receivable (net) 2,060 1,810
Inventory 880 830
Other current assets 570 429
Total current assets $4,260 $3,150
Total current liabilities $2,060 $1,610
For the year, net credit sales were $8,258 million, cost of goods sold was $5,328 million, and net cash provided by operating activities was $1,251 million.
Required:
Compute the current ratio, current cash debt coverage, accounts receivable turnover, average collection period, inventory turnover, and days in inventory at the end of the current year.
Answer:
Nordstrom, Inc.
Current Ratio = Current assets/Current liabilities
= $4,260/ $2,060
= 2.1
Current cash debt coverage = Net Operating Cash/Current liabilities
= $1,251/$2,060
= 0.61
Accounts receivable turnover = Net Sales/Average Receivable
= $8,258/$1,935
= 4.27
Average collection period = 365/4.27
= 85.5 days
Inventory turnover = Cost of goods sold/Average inventory
= $5,328/$855
= 6.2 times
Days in inventory = 365/Inventory turnover
= 58.9 days
Explanation:
a) Data and Calculations:
End of Year Beginning of Year
Cash and cash equivalents $750 $81
Accounts receivable (net) 2,060 1,810
Inventory 880 830
Other current assets 570 429
Total current assets $4,260 $3,150
Total current liabilities $2,060 $1,610
Net credit sales = $8,258 million
Cost of goods sold = $5,328 million
Net operating cash = $1,251 million
Average receivables = $1,935 ($2,060 + $1,810)/2
Average inventory = $855 ($880 + $830)/2
Create a firm model that shows how economists explains the firm level of production that maximizes its profit. Do not use numbers. Just graphs and detailed explanation. Make sure to explain the concavity of the production function and what does it mean.
Answer:
MC ( marginal cost ) = MR ( marginal revenue )
Explanation:
A Firm's level of production that maximizes the profit of the firm is the level where by the MC = MR. i.e. Marginal Cost = Marginal Revenue as shown in the graph attached . shade part depict region where Firm will make the most profit
Attached below is th graphical illustration as required by the question
Expansion of trade has made the nations of the world more
0isolated
0insensitive
O interdependent
O suspicious
PLZ AWNSER ASAP NEED IT IN 30 minutes
Answer:
O interdependent
Explanation:
Expansion is an activity to expand a business characterized by creating new markets, expanding facilitation, increasing the economy and growing the business world. The purpose of expansion is to become bigger or wider. Expansion will not occur if there are no interdependents, because cooperation is needed
The following information is available for Zetrov Company. The cash budget for March shows an ending bank loan of $19,000 and an ending cash balance of $59,700. The sales budget for March indicates sales of $138,000. Accounts receivable are expected to be 70% of the current-month sales. The merchandise purchases budget indicates that $90,800 in merchandise will be purchased on account in March. Purchases on account are paid 100% in the month following the purchase. Ending inventory for March is predicted to be 780 units at a cost of $35 each. The budgeted income statement for March shows net income of $49,800. Depreciation expense of $2,800 and $27,800 in income tax expense were used in computing net income for March. Accrued taxes will be paid in April. The balance sheet for February shows equipment of $82,200 with accumulated depreciation of $31,800, common stock of $34,000, and ending retained earnings of $9,800. There are no changes budgeted in the equipment or common stock accounts.
Prepare a budgeted balance sheet for March.
Answer:
Zetrov Company
Budgeted Balance Sheet for the month of March
Assets
Current assets:
Cash $59,700
Accounts receivable 96,600
Inventory 27,300 $183,600
Long-term assets:
Equipment $82,200
Accumulated depreciation (34,600) $47,600
Total assets $231,200
Liabilities and Equity:
Current liabilities:
Bank loan payable $19,000
Accounts payable 90,800
Income tax payable 27,800 $137,600
Equity:
Common stock $34,000
Retained earnings 59,600 $93,600
Total liabilities and equity $231,200
Explanation:
a) Data and Calculations:
Ending Bank Loan = $19,000
Ending cash balance = $59,700
Accounts receivable = $96,600 ($138,000 * 70%)
Accounts payable = $90,800
Ending inventory = $27,300 (780 * $35)
Net income = $49,800
Income tax payable = $27,800
Equipment at cost = $82,200
Accumulated depreciation, beginning $31,800
Depreciation for the month = 2,800
Accumulated depreciation, ending = $34,600
Retained earnings, beginning = $9,800
Net income 49,800
Retained earnings, ending $59,600
FCIA deduction consists of
In 2020, Satesh has $5,000 short-term capital loss, $13,000 0%/15%/20% long-term capital gain, and $7,000 qualified dividend income. Satesh is single and has other taxable income of $15,000. Which of the following statements is correct?
a. Lana has $10 of long-term capital loss.
b. Lana has $190 of long-term capital gain.
c. Lana has no capital gain or loss.
d. Lana has $190 of long-term capital loss.
Answer:
c. No more than $15,000 of Satesh's taxable income is taxed at 0%.
Explanation:
Calculation to determine the statements that is correct
First step is to calculate the net long-term capital gain
Net long-term capital gain= ($13,000 0%/15%/20% Long-term capital gain - $5,000 Short-term capital loss)
Net long-term capital gain=$8,000
Now let add the amount of $7,000 which represent qualified dividend income to the 0%/15%/20% net long-term capital gain of the amount of $8,000 which will inturn will give us the amount of $15,000 which therefore means that the amount of $15,000 will be eligible for the 0%/15%/20% ALTERNATIVE TAX RATE.
Therefore the statements that is correct will be:
NO MORE THAN $15,000 of SATESH'S TAXABLE INCOME IS TAXED AT 0%.
A 2 kg object traveling at 5 m/s on a frictionless horizontal surface collides head-on with and sticks to a 3 kg object initially at rest. Which of the following correctly identifies the change in total kinetic energy and the resulting speed of the objects after the collision?
Kinetic Energy Speed
(A) Increases 2 m/s
(B) Increases Soold 3.2 m/s
(C) Decreases 2 m/s
(D) Decreases 3.2 m/s
Answer:
Decreases 2 m/s
Explanation:
This is an inelastic collision :
m1u1 + m2u2 = (m1 + m2)v
Where ;
m1 and u1 = mass and initial velocity of object 1
m2 and u2 = mass and initial velocity of object 2
v = final velocity of the objects
m1 = 2kg ; m2 = 3kg ; u1 = 5 m/s ; u2 = 0 ; v =?
m1u1 + m2u2 = (m1 + m2)v
(2*5) + (3*0) = (2 + 3)v
10 + 0 = 5v
10 = 5v
v = 10/5
v = 2m/s
The ledger accounts of the business at June 30, 2007, are listed here in alphabetical order:
Accounts Payable $ 26,100 Notes Payable $180,000
Accounts Receivable 7,450 Notes Receivable 9,500
Animals 189,060 Props and Equipment 89,580
Cages 24,630 Retained Earnings 27,230
Capital Stock 310,000 Salaries Payable 9,750
Cash ? Tents 63,000
Costumes 31,500 Trucks&Wagons 105,840
Instructions
a. Prepare a balance sheet by using these items and computing the amount of Cash at June 30. 2007. Organize your balance sheet similar to the one illustrated in Exhibit 2-10. (After "Accounts Receivable." you may list the remaining assets in any order. ) Include a proper balance sheet heading.
b. Assume that late in the evening of June 30, after your balance sheet had been prepared, a fire destroyed one of the tents, which had cost $14,300. The tent was not insured. Explain what changes would be required in your June 30 balance sheet to reflect the loss of this asset.
Answer:
Balance Sheet
As of June 30, 2007
Assets
Cash $32,520
Accounts Receivable 7,450
Notes Receivable 9,500
Animals 189,060
Props and Equipment 89,580
Cages 24,630
Tents 63,000
Costumes 31,500
Trucks & Wagons 105,840
Total assets $553,080
Liabilities and Equity:
Accounts Payable $ 26,100
Notes Payable 180,000
Salaries Payable 9,750
Capital Stock 310,000
Retained Earnings 27,230
Total liabilities & equity $553,080
b. The required changes to the June 30 balance sheet to reflect the loss of this asset are:
1. Reduce Tents by $14,300 (Loss of Assets)
2. Reduce Retained Earnings by $14,300 (Loss of Assets)
Explanation:
a) Data and Calculations:
Cash $32,520 (Total assets - other assets)
Accounts Receivable 7,450
Notes Receivable 9,500
Animals 189,060
Props and Equipment 89,580
Cages 24,630
Tents 63,000
Costumes 31,500
Trucks & Wagons 105,840
Accounts Payable $ 26,100
Notes Payable 180,000
Salaries Payable 9,750
Capital Stock 310,000
Retained Earnings 27,230
Harbor Wheel Company manufactures two tractor wheels: the Ultimate which sells for $1,600 and the Standard, which sells for $1,300. The company currently uses traditional costing and assigns overhead on the basis of direct labor hours (DLH). Total estimated overhead was $7,600,000 and estimated total direct labor hours were 200,000. Management is considering using actity-based costing to compare overhead allocations before making a final decision.
Current Traditional Costing:
Ultimate Standard
Direct materials per wheel $700 $420
Direct labor cost per wheel $120 $100
Direct labor hours per wheel 6 5
Total units produced 25,000 10,000
Activity-Based Costing:
Activity Cost Cost Estimated Expected Use Ultimate Standard
Pools Drivers Overhead of Cost Drivers
Purchasing purchase orders $1,200,000 40,000 17,000 23,000
Machine setups machine setups 900,000 18,000 5,000 13,000
Machining machine hours 4,800,000 120,000 75,000 45,000
Quality Control inspections 700,000 28,000 11,000 17,000
$7,600,000
INSTRUCTIONS:
Using the information above, match each item with the correct answer. Hint: Each item has only one correct answer. Overhead applied to a single Ultimate wheel using traditional costing:
Overhead applied to a single Ultimate wheel using traditional costing:
Total manufacturing cost of the Standard wheel using traditional costing:
Activity-based overhead rate for Quality Control:
Machining overhead applied to the Standard wheel using activity-based costing:
Total manufacturing overhead applied to each Ultimate wheel using activity-based costing:
Answer:
Harbor Wheel Company
Overhead applied to a single Ultimate wheel using traditional costing:
= $228
Overhead applied to a single Standard wheel using traditional costing:
= $190
Total manufacturing cost of the Standard wheel using traditional costing:
= $710,000 ($710 * 10,000)
Activity-based overhead rate for Quality Control:
= $25
Machining overhead applied to the Standard wheel using activity-based costing:
= $1,000,000
Total manufacturing overhead applied to each Ultimate wheel using activity-based costing:
= $161.40
Explanation:
a) Data and Calculations:
Total estimated overhead = $7,600,000
Estimated total direct labor hours = 200,000
Predetermined overhead rate = $38 per direct labor hour ($7,600,000/200,000)
Current Traditional Costing:
Ultimate Standard
Selling price per unit $1,600 $1,300
Direct materials per wheel $700 $420
Direct labor cost per wheel $120 $100
Overhead applied per wheel $228 $190
Total cost per wheel $1,048 $710
Direct labor hours per wheel 6 5
Total units produced 25,000 10,000
Overhead to a single wheel $228 (6* $38) $190 (5 * $38)
Activity-Based Costing:
Activity Cost Cost Estimated Expected Use of Cost Drivers
Pools Drivers Overhead Total Ultimate Standard
Purchasing purchase orders $1,200,000 40,000 17,000 23,000
Machine setups machine setups 900,000 18,000 5,000 13,000
Machining machine hours 4,800,000 120,000 75,000 45,000
Quality Control inspections 700,000 28,000 11,000 17,000
Total $7,600,000
Activity-based overhead rates
Purchasing = $30 ($1,200,000/40,000)
Machine setups = $50 ($900,000/18,000)
Machining = $40 ($4,800,000/120,000)
Quality control = $25 ($700,000/28,000)
Machining overhead applied to the Standard wheel using activity-based costing = $1,000,000 ($40 * 45,000)
Total manufacturing overhead applied to each Ultimate wheel using activity-based costing:
Purchasing = $510,000 ($30 * 17,000)
Machine setups = $250,000 ($50 * 5,000)
Machining = $3,000,000 ($40 * 75,000)
Quality control = $275,000 ($25 * 11,000)
Total overhead = $4,035,000
Total units = 25,000
Overhead cost per wheel = $161.40 ($4,035,000/25,000)
Concord Company had bonds outstanding with a face value of $325,000. On April 30, 2017, when these bonds had an unamortized discount of $15,000, they were called in at 104. To pay for these bonds, Concord had issued other bonds a month earlier bearing a lower interest rate. The newly issued bonds had a life of 10 years. The new bonds were issued at 102 (face value $325,000).
Required:
Compute the gain or loss.
Answer:
Loss on bonds redemption is $21,500
Explanation:
Note the cash received from the new bonds would be debited to the cash account while the cash paid on the bonds called would be credited to the cash account as it is an outflow of cash.
Also, the unamortized discount which was a debit entry the initial bonds were issued would be credited to the discount on the bonds payable account.
Cash received from the new issuance of bonds=$325,000*102%
Cash received from the new issuance of bonds=$331,500
Cash paid on bonds called=$325,000*104%
Cash paid on bonds called=$338,000
Dr cash $331,500
Dr loss on redemption(bal fig) $21,500
Cr cash $338,000
Cr discount on bonds payable $15,000
Legacy issues $660,000 of 5.5%, four-year bonds dated January 1, 2018, that pay interest semiannually on June 30 and December 31. They are issued at $648,412, and their market rate is 6% at the issue date.
Required:
Determine the total bond interest expense to be recognized over the bonds' life.
Answer:
Legacy
The total bond interest expense to be recognized over the bond's life is:
= $189,172.82
Explanation:
a) Data and Calculations:
Face value of 5.5% bonds issued = $660,000
Proceeds from the bonds issue = 648,412
Bonds discounts = $11,588
Interest payment = semiannually at 2.75% (5.5%/2)
Market interest rate = 6%
Effective semiannual interest rate = 3% (6%/2)
N (# of periods) 8
I/Y (Interest per year) 3
PV (Present Value) 648412
PMT (Periodic Payment) 18150
Results
FV = $982,784.82
Sum of all periodic payments = $145,200.00
Total Interest = $189,172.82
Professional sales skills
how should the price quotation in your proposal be titled?
A. Investment
B. Price
C. Cost
D.Estimate
Sam visits Mexico for a business meeting. At the meeting, Sam addresses the vice president of the firm by his first name rather than using his title. This is considered offensive. In the context of Hofstede's cultural dimensions, this difference in cultures is part of the _____ dimension.
A. power distance
B. uncertainty avoidance
C. long-term–short-term orientation
D.masculinity-femininity
E. individualism-collectivism
Answer:
A. power distance
Explanation:
In the context of Hofstede's cultural dimensions, this difference in cultures is part of the power distance dimension, which corresponds to the hierarchical position of the members of an organization and the appropriate relationship form for each hierarchy in an organization that occurs in certain cultures, reinforced by an inequality that already occurs in society.
To avoid offensive behavior in multinational businesses, it is necessary to have multicultural skills that include ethics, respect and knowledge of a new culture and its rules.
You have been asked to estimate the market value of an income-producing property. The table below provides 5 years of projected cash flows for the property. Use the discounted cash flow approach to income valuation to calculate the market value. Assume that you sell the property at the end of year 5 and that the net proceeds from the sale are $5.0 million. Also assume that the discount rate is 7.5%.
Year 1 Year 2 Year 3 Year 4 Year 5
PGI $750,000 $780,000 $811,200 $843648 $877394
EGI $627500 $663000 $717,101 $689,520 $745785
NOI $318715 $331,500 $334,760 $358,550 $372,892
a. $4.18 million
b. $6.11 million
c. $4.12 million
d. $4.40 million
If we will assume that that the discount rate is 7.5%. then the answer is $4.18 million.
What is discount rate?The discount rate of return applied in corporate finance to reduce future cash flows to their present value is known as a discount rate. This rate is commonly a company's Weighted Average Cost of Capital (WACC), needed rate of return, or the minimum rate that investors hope to attain in order to assess the risk of the investment.
Seven annual free cash flow are received from the investment, each worth $100. An analyst uses a five percent hurdle rate to evaluate the investment's net present value, arriving with a value of $578.64. This contrasts with a whole cash flow of $700 that is not discounted.
Shareholders are essentially saying, "I don't care if I get $578.64 at once and today or $100 a year for 7 years." This claim takes into consideration the investor's perception of the investment's risk profile and a multiplier effect that indicates the earning potential on other investments.
To learn more about discount rate here
https://brainly.com/question/13660799
#SPJ2
Sales Revenue and Service Revenue are two income statement accounts that relate to Accounts Receivable. Name two other accounts related to Accounts Receivable and Notes Receivable that would be reported on the income statement and indicate whether each would appear before, or after, Income from Operations for Execusmart Consultants
Answer:
Accounts Receivable ⇒ Bad Debt expense ⇒ Before Income from Operations
Bad debt expense is related to accounts receivable as it shows the amount that credit customers defaulted on. It is an expense and will be shown before the Income from operations is calculated.
Notes Receivable ⇒ Interest Receivable ⇒ After Income from Operations
Interest receivable will be a gain to be received from Notes receivable. It is however only added to the Income from operations after the Income has been calculated.
Caine Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost S183,399 and has an estimated useful life of 8 years with zero salvage value. Management estimates that the new bottling machine will provide net annual cash fiows of $30,000. Management also believes that the new bottling machine will save the company money because it is expected to be more reliable than other machines, and thus will reduce downtime. Assume a discount rate of 8%.
Calculate the net present value.
How much would the reduction in downtime have to be worth in order for the project to be acceptable?
Answer:
Net Present value = -$11,001Downtime reduction should be worth $11,001Explanation:
Net Present value = Present value of cash inflows - Cost of machine
As the annual cash flows are constant, they will be treated as annuities:
Present value of cash flows = 30,000 * Present value interest factor of annuity, 8 years, 8%
= 30,000 * 5.7466
= $172,398
Net present value = 172,398 - 183,399
= -$11,001
Reduction in downtime should be worth at least $11,001 so that it would enable the project to breakeven at least.
what does the word utilities in business mean?
Answer:
Utility is a term in economics that refers to the total satisfaction received from consuming a good or service. ... The economic utility of a good or service is important to understand, because it directly influences the demand, and therefore price, of that good or service.
IN SIMPLE WORDS:
A utility is an important service such as water, electricity, or gas that is provided for everyone, and that everyone pays for. ... public utilities such as gas, electricity and phones.
Please mark as brainliest if answer is right
Have a great day, be safe and healthy
Thank u
XD
Answer
it means water gas or electricity
Explanation:
Utility has several meanings: In economics, it refers to the value for money that people derive from consuming a product or service. ... Value for money, in this context, means 'pleasure and satisfaction. In the world of business, it means a water, gas, or electricity company.
please give me brainliest
pleaseeee
What are the requirements for something to be used as money?
Assume that an apple farmer must decide how many apples to harvest for the world apple market. He knows that there is a one-third probability that the world price will be $1, a one-third probability that it will be $1.50, and a one-third probability that it will be $2. His cost function is C(Q) = 0.01Q2. What is the expected price in the world apple market?
Answer:
Expected price ≈ 1.5
Explanation:
Expected Value is the average value of an event , found by summing products of various outcomes with their corresponding probabilities .
E (X) = x p(x1) + x p(x2) + ....... xn p(xn)
Here, probability of price = 1 , 1.5 , 2 = 1/3 , 1/3 , 1/3 each {respectively}
So, Expected Value of price = 1/3 (1) + 1/3 (1.5) + 1/3 (2) = 0.33 (1) + 0.33 (1.5) + 0.3 (2) = 0.33 (1 + 1.5 + 2) = 0.33 x 4.5 = 1.485 ≈ 1.5
A person states , The $100 billion program passed by Congress last week benefits thousands of people . " What
Answer:
dasdjkasndknajs
Explanation:
jknasdjkasndjkasnd
3.
The distinction between a managerial position and a non
managerial position is
a) planning the work of others
b) coordinating the work of others
c) controlling the work of others
d) organizing the work of others
Answer:
c) controlling the work of others.
Explanation:
When inventories go down in value, accountants adjust the value of the inventory that is recorded on the balance sheet. Sometimes inventory goes up in value. Do accountant's ever adjust the value of inventory upwards? What are the general guidelines that accountant's follow in recording inventory value?
Answer:
Accountants do not adjust the value of inventory upwards. The general guidelines in recording inventory value are to recognize the ending inventory value at the lower of cost or market value and to ensure that transactions are recorded in accordance with the conservatism principle of generally accepted accounting principles.
Explanation:
The conservatism principle requires that all probable losses are recognized as soon as they can be reasonably estimated, while gains should be recognized only when they are fully realized. The lower of cost or market value (LCM) method states that inventory should be recorded at the lower of either the historical cost or the market value. The LCM is in line with the conservatism principle.
The assumptions of the production order quantity model are met in a situation where annual demand is 5000 units, setup cost is $40, holding cost is $1 per unit per month, the daily demand rate is 20 and the daily production rate is 100. How long is the cycle length (from the moment that production of a new batch starts until the moment all units are consumed)?
A. 10.2 days.
B. 15.5 days.
C. 11.2 days.
D. 16.5 days.
E. 14.6 days.
Answer:
A. 10.2 days.
Explanation:
Production rate(p) = 100 per day
Demand rate(d) = 20 per day
Annual demand(D) = 5000 units
Set up cost(S) = $40
Monthly Holding cost = $1 . So annual holding cost (H) = $1*12 = $12 per unit
Optimum run size(Q) = √{2DS / H [1-(d/p)]}
= √{(2*5000*40) / 12*[1 - (20/100)]}
= √[400000/12*(1-0.20)]
= √ [400000/(12*0.80)]
= √(400000/9.6)
= √41666.66666
= 204.12
Cycle length = Q/d
Cycle length = 204/20
Cycle length = 10.2 days