Question 1: Sales price variance, sales volume variance, and fixed cost variance Budgeted Actual Price $300 $350 Sales volume in units 80 75 Unit VC $100 $120 Fixed costs $100,000 $120,000 a) Without computations, characterize the following variances as favorable or unfavorable: sales price variance F U sales volume variance F U fixed cost variance F U b) Compute the following variances. Enter favorable variances as a positive number and unfavorable variances as a negative number. Do NOT enter F or U after the number. sales price variance
Answer:
a-1 Sales price variance is favorable (F).
a-2 Sales volume variance is favorable (F).
a-3 Fixed cost variance is unfavorable (U).
b-1 Sales price variance = $3,750
b-2 Sales volume variance = -$1,500
b-3 Fixed cost variance = -$20,000
Explanation:
Note: This question is not complete an the data in its are merged together. The complete question with the sorted data are therefore provided as follows:
Question 1: Sales price variance, sales volume variance, and fixed cost variance
Budgeted Actual
Price $300 $350
Sales volume in units 80 75
Unit VC $100 $120
Fixed costs $100,000 $120,000
a) Without computations, characterize the following variances as favorable or unfavorable:
sales price variance F U
sales volume variance F U
fixed cost variance F U
b) Compute the following variances. Enter favorable variances as a positive number and unfavorable variances as a negative number. Do NOT enter F or U after the number.
sales price variance
sales volume variance F U
fixed cost variance
The explanation of the answers is now given as follows:
a) Without computations, characterize the following variances as favorable or unfavorable:
a-1 Sales price variance F U
When the Actual price is greater than the Budgeted price, Sales price variance is favorable (F). But when the Actual price is less than the Budgeted price, Sales price variance is unfavorable (U).
Since the Actual price is greater than the Budgeted price in this question, the Sales price variance is favorable (F).
a-2 Sales volume variance F U
When the Actual sales volume in units is greater than the Budgeted sales volume in units, Sales volume variance is favorable (F). But when the Actual sales volume in units is less than the Budgeted sales volume in units, Sales volume variance is unfavorable (U).
Since the Actual sales volume in units is less than the Budgeted sales volume in units in this question, the Sales volume variance is unfavorable (U).
a-3 Fixed cost variance F U
When the Actual Fixed costs is less than the Budgeted Fixed costs, Fixed costs variance is favorable (F). But when the Actual Fixed costs is greater than the Budgeted Fixed costs, Fixed costs variance is unfavorable (U).
Since the Actual Fixed costs is greater than the Budgeted Fixed costs in this question, the Fixed costs variance is unfavorable (U).
b) Compute the following variances. Enter favorable variances as a positive number and unfavorable variances as a negative number. Do NOT enter F or U after the number.
b-1 Calculation of sales price variance
This can be calculated as follows:
Sales price variance = (Actual price - Budgeted price) * Actual sales volume in units = ($350 - $300) * 75 = $3,750
b-2 Calculation of sales volume variance
This can be calculated as follows:
Sales volume variance = (Actual sales volume in units - Budgeted sales volume in units) * Budgeted price = (75 - 80) * $300 = -$1,500
b-3 Calculation of fixed cost variance
Fixed cost variance = Actual fixed costs - Budgeted fixed costs = $120,00 - $100,000 = -$20,000
Statement of Owner's Equity
Ava Marie Rowland owns and operates Road Runner Delivery Services. On January 1, 20Y3, Ava Marie Rowland, Capital had a balance of $781,000. During the year, Ava Marie made no additional investments and withdrew $19,000. For the year ended December 31, 20Y3, Road Runner Delivery Services reported a net loss of $34,500.
Prepare a statement of owner's equity for the year ended December 31, 20Y3.
Road Runner Delivery Services
Statement of Owner's Equity
For the Year Ended December 31, 20Y3
$
$
$
2) Closing Entries
After the accounts have been adjusted at April 30, the end of the fiscal year, the following balances were taken from the ledger of Twin Trees Landscaping Co.:
Oscar Killingsworth, Capital $503,900
Oscar Killingsworth, Drawing 8,200
Fees Earned 279,100
Wages Expense 221,600
Rent Expense 43,800
Supplies Expense 9,000
Miscellaneous Expense 10,200
Journalize the two entries required to close the accounts.
If an amount box does not require an entry, leave it blank.
Apr. 30
Apr. 30
3) Balance Sheet
MaxFit Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on November 30, 20Y4, the end of the fiscal year, the balances of selected accounts from the ledger of MaxFit Weight Loss Co. are as follows:
Accounts Payable $ 44,800
Accounts Receivable 138,600
Accumulated Depreciation 221,300
Cash ?
Equipment 563,000
Land 356,200
Prepaid Insurance 8,500
Prepaid Rent 24,900
Salaries Payable 10,700
Supplies 5,700
Unearned Fees 21,400
Vanessa Freeman, Capital 843,400
Prepare a classified balance sheet that includes the correct balance for Cash.
Maxfit Weight Loss Co.
Balance Sheet
November 30, 20Y4
Assets
Current assets:
$
Total current assets $
Property, plant, and equipment:
$
$
Total property, plant, and equipment
Total assets $
Liabilities
Current liabilities:
$
Total liabilities $
Owner's Equity
Total liabilities and owner's equity $
Answer:
Net equity is $727,500.
Explanation:
Statement of Owner's Equity:
Share Capital $781,000
Withdrawals $19,000
Net Loss $34,500
Net equity $727,500
this is my Halloween costume
Answer:
Crankyyyy um. lolipop
Explanation:
u Look
The City of San Antonio is considering various options for providing water in its 50-year plan, including desalting. One brackish aquifer is expected to yield desalted water that will generate revenue of $4.1 million per year for the first 5 years, after which less production will decrease revenue by 10% per year each year. If the aquifer will be totally depleted in 21 years, what is the present worth of the desalting option revenue at an interest rate of 8% per year
Answer:
The present worth of the desalting option revenue is 29,567,434.81 or $29.6 million.
Explanation:
Note: Calculation of the present worth of the desalting option revenue.
In the attached excel file, the revenue from year 6 to 21 is calculated using the following formula:
Revenue in the current year = Revenue in the previous year * (100% - Decreasing rate) ................... (1)
Where;
Decreasing rate = 10%
From the attached excel file, the present worth (in bold red color) of the desalting option revenue is 29,567,434.81 or $29.6 million.
Where there is asymmetric information between buyers and sellers, Multiple Choice product shortages will occur at the equilibrium price. product surpluses will occur at the equilibrium price. markets can produce inefficient outcomes. markets will fail due to the over-allocation of resources.
Answer:
markets can produce inefficient outcomes.
Explanation:
Asymmetric information is when one party to a transaction has more information than the other party. It could be the buyer or seller that has more information
For example, if a person wants to purchase health insurance, he might not disclose the full information about his health status to the insurer. This might lead to underestimation of costs.
Also, a seller might not reveal to the buyer than the item about to be purchased is faulty.
Asymmetric information leads to inefficient outcome inn the market
At the end of the current year, Accounts Receivable has a balance of $950,000; Allowance for Doubtful Accounts has a credit balance of $8,500; and sales for the year total $4,280,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $40,000. a. Determine the amount of the adjusting entry for uncollectible accounts. $fill in the blank 1 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $fill in the blank 2 Allowance for Doubtful Accounts $fill in the blank 3 Bad Debt Expense $fill in the blank 4 c. Determine the net realizable value of accounts receivable. $fill in the blank 5
Answer:
a. Adjusting entry for Uncollectible accounts = Allowance for Doubtful Accounts - Credit balance on Allowance for doubtful accounts
= 40,000 - 8,500
= $31,500
b. Accounts Receivable = $950,000
Allowance for Doubtful Accounts = $40,000
Bad Debt Expense = This is the adjusting entry for Uncollectible accounts = $31,500
c. Net realizable value of accounts receivable = Accounts receivables - Bad debt
= 950,000 - 31,500
= $918,500
There are two closing entries. The first one is to close ____ and ____ to ______; second, close ____ to ____. a. expenses, assets, retained earnings, capital stock, dividends b. revenues, expenses, retained earnings; dividends, retained earnings c. dividends, retained earnings, expenses; revenues, retained earnings d. retained earnings, dividends, revenue; assets, liabilities
Answer: B. revenues, expenses, retained earnings; dividends, retained earnings
Explanation:
Closing entries simply refers to the journal entries that are made by an economic entity at the end of a particular accounting period which is then moved from the temporary accounts with regards to the income statement to the permanent accounts which are on the balance sheet.
There are two closing entries which includes closing revenues, and expenses, to retained earnings and secondly, close the dividends, to the retained earnings .
how does unsafe food harm us
Answer:
Unsafe food creates a vicious cycle of disease and malnutrition, particularly affecting infants, young children, elderly and the sick. Foodborne diseases impede socioeconomic development by straining health care systems, and harming national economies, tourism and trade.
If a monopolist could perfectly price-discriminate: (LO1, LO4) a. The marginal revenue curve and the demand curve would coincide. b. The marginal revenue curve and the marginal cost curve would coincide. c. Every consumer would pay a different price. d. Marginal revenue would become negative at some output level. e. The resulting pattern of exchange would still be socially inefficient.
Answer:
a. The marginal revenue curve and the demand curve would coincide.
Explanation:
Monopolistic competition can be defined as the market structure which comprises of elements of competitive markets (having many competitors) and monopoly. Under monopolistic competition, organizations
If a monopolist could perfectly price-discriminate (LO1, LO4), the marginal revenue curve and the demand curve would coincide.
Describe how the singer Madonna repositioned her Brand throughout the 4 decades that she has been in the entertainment business. Use examples that relate to Brand Repositioning.
Answer:
Ladies and Gentlemen, that’s Madonna.
Most people think of sex-soaked, counter-cultural extravagance when they reflect on Madonna’s career.
I see something else. Fearless mastery of her brand and message.
Madonna doesn’t flinch. She’s mastered her craft. She never lost sight of her goals. That’s why she’s the #1 female music performer of all time. Her dominance of the pop genre is the reason that virtually every performer (male and female) puts her on their Top 10 Greatest Talent list.
You can take a page from her book and rule your brand and niche with decade-spanning impunity.
In 2019 a 90% owned subsidiary had $60,000 of unrealized gains on intercompany sales to its parent. In 2020 the subsidiary sold $200,000 of goods to its parent and had $30,000 of unrealized gains. In 2020 parent reports Cost of Goods Sold of $4,000,000 and sub reports Cost of Goods Sold of $1,000,000. How much is Consolidated Cost of Goods Sold
Answer:
Consolidated Cost of Goods Sold is $4,970,000.
Explanation:
A 90% owned subsidiary presents a controlling interest and consolidated financial statements must be prepared by the Parent company.
In preparing consolidated financial statements, any transactions between the parent and subsidiary (Intragroup transactions) must be eliminated.
At Beginning of the year
Recognize the unrealized gains on intercompany sales as follows ;
Debit : Retained Earnings $60,000
Credit : Cost of Sales $60,000
During the year 2020
Eliminate unrealized gains on intercompany sales as follows
Debit : Cost of Sales $30,000
Credit : Inventory $30,000
Consolidated Cost of Goods Sold
To determine the Cost of Goods Sold add 100 % of Parent and 100% of Subsidiary and also remember to effect the journals above as follows :
Cost of Goods Sold = $4,000,000 + $1,000,000 - $60,000 + $30,000
= $4,970,000
Conclusion
Therefore, Consolidated Cost of Goods Sold is $4,970,000.
a. In the absence of money, trade would require money illusion. a double coincidence of wants. a store of value. a unit of account. b. In what ways does money make trade easier? Money eliminates the possibility of recessions caused by demand shortfalls. Money provides a measuring stick with which to express relative values of goods and services, simplifying comparisons. Money enables you to specialize in tasks you're good at, knowing you can earn the money needed to buy the products of other individuals, skilled in different tasks. Money eliminates the need to find trading partners who happen to possess what you want and want what you possess.
Answer:
a double coincidence of wants
Money provides a measuring stick with which to express relative values of goods and services, simplifying comparisons.
Money eliminates the need to find trading partners who happen to possess what you want and want what you possess.
Money enables you to specialize in tasks you're good at, knowing you can earn the money needed to buy the products of other individuals, skilled in different tasks
Explanation:
Functions of money
1. Medium of exchange : money can be used to exchange for goods and services. For example, money serves as a medium of exchange when you pay $20 for your favourite jeans.
Without money, you would have to find someone that has jeans and wants to sell it and also wants what you have. This is known as double coincidence of wants
2. Unit of account : money can be used to value goods and services, For example, $20 is the value of your favourite jeans
3. Store of value : money can retain its value over the long term, this it can be used as a store of value
Wearing a headset or earplugs while driving is legal
A. As long as you keep the volume down
B. For any person operating an authorized emergency vehicle
C. Even if you keep both ears covered
D. Only if your radio is broken
Selected transactions for Cullumber Company are presented below in journal form (without explanations).
Date Account Title Debit Credit
May 5 Accounts Receivable 4,750
Service Revenue 4,750
12 Cash 1,200
Accounts Receivable 1,200
15 Cash 2,260
Service Revenue 2,260
Post the transactions to T-accounts. (Post entries in the order of journal entries presented in the question.)
Answer and Explanation:
The posting of the given transactions to T accounts are presented below:
Cash account
May 12 Account receivable $1,200
May 15 Service revenue $2,260
Account receivable
May 5 Service revenue $4,750 May 12 Cash $1,200
Service revenue
May 15 Account receivable $2,260
May 5 Servcie revenue $4,750
During the current month, a company that uses job order costing purchases $52,000 in raw materials for cash. It then uses $22,000 of raw materials indirectly as factory supplies and uses $20,100 of raw materials as direct materials. Prepare journal entries to record these three transactions
Answer:
Account Title Debit Credit
Raw materials inventory $52,000
Cash $52,000
Account Title Debit Credit
Factory Supplies $22,000
Raw materials $22,000
Account Title Debit Credit
Work in Process inventory $20,100
Raw materials $20,100
A restaurant chain hires two new restaurant managers. One manager is a woman, and one is a man. Both candidates are equally qualified for their positions. The restaurant chain owner wanted to save money and so he offered the job to the woman at a salary $10,000 lower than what he offered the man. This is a violation of The Equal Pay Act of 1963. Which entity, of notified, would enforce the Equal Pay Act of 1963 on behalf of these employees
Answer:
Equal Employment Opportunity Commission
Explanation:
The entity that would be involved in this case is the the EEOC. That is the equal employment opportunity commission. The violation that has occurred here is that both the man and the woman are equally qualified for this job but the owner wants to pay the woman a smaller salary compared to what he wants to pay the man. The EEOC handles such matters of discrimination to employees and workers based on gender, race, religion etc.
Carbonale Castings produces cast bronze valves on a 10-person assembly line. On a recent day, 160 valves were produced during an 8-hour shift. The productivity of the line is valves per hour. John Goodale, the manager of Carbondale, changed the layout and was able to increase production to 180 valves per 8-hour shift. The new productivity is valves per hour. The % productivity increase is %. Round all answers to 2 decimal places.
Answer:
Missing word " Calculate the labor productivity of the line. b) John Goodale, the manager at Carbondale, changed the layout and was able to increase production to 180 units per 8-hour shift. What is the new labor productivity per labor-hour? c.) What is the percentage of productivity increase?"
a) Output = 160 valves
Input = 10*8 = 80 labor hours
Productivity = Output / Input
Productivity = 160/80
Productivity = 2 valves per labor hour
b) Output = 180 valves
Input = 10*8 = 80 labor hour
Productivity = Output/Input
Productivity = 180/80
Productivity = 2.25 valves per labor hour
c) Percentage increase in the productivity = [(2.25 - 2) / 2] * 100
Percentage increase in the productivity = 0.125 * 100
Percentage increase in the productivity = 12.5%
North Bank has been borrowing in the U.S. markets and lending abroad, thereby incurring foreign exchange risk. In a recent transaction, it issued a one-year $1.40 million CD at 5 percent and is planning to fund a loan in British pounds at 9 percent for a 4 percent expected spread. The spot rate of U.S. dollars for British pounds is $1.454/£1. a. However, new information now indicates that the British pound will appreciate such that the spot rate of U.S. dollars for British pounds is $1.43/£1 by year-end. Calculate the loan rate to maintain the 4 percent spread. b. The bank has an opportunity to hedge using one-year forward contracts at 1.46 U.S. dollars for British pounds. Calculate the net interest margin if the bank hedges its forward foreign exchange exposure. c. Calculate the loan rate to maintain the 4 percent spread if the bank intends to hedge its exposure using the forward rates.
Answer:
A) 10.82%
B) 5.27%
C) 8.56%
Explanation:
Given data :
North Bank Borrow ; $1.4 million at 5 percent
Lend in pounds at 9%
spread = ( 4% )
spot rate = 1.454
A) Determine the loan rate to maintain the 4 percent spread
Expected spot rate = 1.43
First step :
Lending amount = $1.4 million / initial spot rate = 1.4 / 1.454 = £ 0.9628 million
next :
calculate the final amount Required in $ to maintain 4% Spread
= principal ( $1.4 million ) + interest ( 9% of 1.4 ) = 1.4 + 0.126 = $1.526 million
In pound ( at the expected spot rate )
= 1.526 / 1.43 = £1.067 million
expected profit = £1.067 - £0.9628 = £ 0.1042 million
Therefore the interest rate tp maintain the 4 percent spread
= 0.1042 / 0.9628 = 10.82%
B) Determine the net interest margin if the bank hedges its forward foreign exchange exposure
Forward rate = 1.46
assuming interest as value calculated above = ( 10.82% )
lending amount = £0.9628 million
Repayment = 0.9628 * 111% * 1.46 = $1.5603 million
therefore return rate = $1.5603 - $1.4 = $0.1603 million = 10.27%
hence : Net interest margin = 10.27% - 5% = 5.27%
C) Determine the loan rate to maintain the 4 percent spread if the bank intends to hedge its exposure using the forward rates.
Forward Hedging contract forward rate = 1.46
lending amount = $1.4 / 1.454 = £ 0.9628 million
Total Interest and Principal Repayment Required in $ to maintain 4% Spread = $1.526 million
In pound = 1.526 / 1.46 = £ 1.0452
Interest = £1.0452 - £0.9628 = £0.0824 million
therefore interest Rate to maintain 4℅ Spread
= ( 0.0824 / 0.9628 ) * 100 = 8.56%
Suppose at December 31 of a recent year, the following information (in thousands) was available for sunglasses manufacturer Oakley Inc.: ending inventory $170,000; beginning inventory $125,000; cost of goods sold $351,050 and sales revenue $761,000.
a. Calculate the inventory turnover for Oakley, Inc.
b. Calculate the days in inventory for Oakley, Inc.
Answer and Explanation:
The computation is shown below:
a. The inventory turnover is
= Cost of Goods Sold ÷ Average Inventory
= $351,050 ÷ ($170,000 + $125,000) ÷ 2
= $351,050 ÷ $147,500
= 2.38 times
b. Now days in inventory is
= 365 ÷ inventory turnover ratio
= 365 ÷ 2.38 times
= 153.36 days
Parker, Inc. has a cash balance of $20,000 on April 1. The company is now preparing the cash budget for the second quarter. Budgeted cash collections and payments are as follows:
April May June
Cash collections 25000 24000 24000
Cash payments:
Purchases of direct materials 4000 5300 6200
Operating expenses 5300 6000 5300
There are no budgeted capital expenditures during the quarter. Based on the above data, calculate the projected cash balance at the end of April.
a. $41,000
b. $35,000
c. $45,000
d. $25,000
Answer:
$35,700
Explanation:
Projected cash balance at the end of April = Cash Balance at the beginning of the month + Total cash collection in the month - Total cash payments during the month
Projected cash balance at the end of April = $20,000 + $25,000 - ($4,000 + $5,300)
Projected cash balance at the end of April = $35,700.
Probably the most important reason to have a partnership agreement is that ________. Group of answer choices it resolves potential sources of conflict that, if not addressed in advance, could later result in partnership battles and dissolution of an otherwise successful business it determines how the partnership and the partners will pay taxes it states the location and the purpose of the business
Answer:
It resolves potential sources of conflicts that, if not addressed in advance, could later result in partnership battles and dissolution of an otherwise successful business
Explanation:
A partnership agreement is a formal document or a contract endorsed by all the parties to the partnership business, which contains right, responsibilities and obligations of each partners.
It is important for partners to have an agreement, because it is legal, hence each partner must act according to the terms contained in the agreement. The basic reason or one of the most important reason to have this partnership agreement is to avoid legal tussles in the future, which could lead to the dissolution of the partnership business.
Corbel Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $41,600 for Division A. Division B had a contribution margin ratio of 45% and its sales were $271,000. Net operating income for the company was $34,000 and traceable fixed expenses were $59,100. Corbel Corporation's common fixed expenses were:
Answer:
$5,000
Explanation:
common fixed expenses = Contribution Margin - Net Income - traceable fixed expenses
= $41,600 + $121,950 - $34,000 - $59,100
= $70,450
Corbel Corporation's common fixed expenses were, $70,450
Arnold Vimka is a venture capitalist facing two alternative investment opportunities. He intends to invest $1 million in a start-up firm. He is nervous, however, about future economic volatility. He asks you to analyze the following financial data for the past year’s operations of the two firms he is considering and give him some business advice.Company Name
Larson Benson
Variable cost per unit (a) $ 18.00 $ 9.00
Sales revenue (8,100 units × $31.00) $ 251,100 $ 251,100
Variable cost (8,100 units × a) (145,800 ) (72,900 )
Contribution margin $ 105,300 $ 178,200
Fixed cost (25,000 ) (97,900 )
Net income $ 80,300 $ 80,300
Required:
1. Use the contribution margin approach to compute the operating leverage for each firm.
2. If the economy expands in coming years, Larson and Benson will both enjoy a 11 percent per year increase in sales, assuming that the selling price remains unchanged. Compute the change in net income for each firm in dollar amount and in percentage. (Note: Since the number of units increases, both revenue and variable cost will increase.)
3. If the economy contracts in coming years, Larson and Benson will both suffer a 11 percent decrease in sales volume, assuming that the selling price remains unchanged. Compute the change in net income for each firm in dollar amount and in percentage. (Note: Since the number of units decreases, both total revenue and total variable cost will decrease.)
Answer:
Arnold Vimka
1. Operating leverage, using the contribution margin approach:
Larson Benson
Operating leverage 1.31 2.22
2. Change in net income for each firm in dollar amount and in percentage, following 11% increase in the units sold:
Larson Benson
Variable cost per unit (a) $ 18.00 $ 9.00
Sales revenue (8,991 units × $31.00) $278,721 $ 251,100
Variable cost (8,991 units × a) (161,838 ) (80,919 )
Contribution margin $ 116,883 $ 170,181
Fixed cost (25,000 ) (97,900 )
Net income $ 91,883 $ 72,281
Net income $ 80,300 $ 80,300
Change in net income ($) $11,583 ($8,019)
Change in net income (%) + 14.42% -9.99%
3. Change in net income for each firm in dollar amount and in percentage, following 11% decrease in the units sold:
Larson Benson
Variable cost per unit (a) $ 18.00 $ 9.00
Sales revenue (7,209 units × $31.00) $ 223,479 $ 223,479
Variable cost (7,209 units × a) (129,762 ) (64,881 )
Contribution margin $ 93,717 $ 158,598
Fixed cost (25,000 ) (97,900 )
Net income $ 68,717 $ 60,698
Net income $ 80,300 $ 80,300
Change in net income($) -$11,583 ($19,602)
Change in net income (%) -14.42% -24.4%
Explanation:
a) Data and Calculations:
Larson Benson
Variable cost per unit (a) $ 18.00 $ 9.00
Sales revenue (8,100 units × $31.00) $ 251,100 $ 251,100
Variable cost (8,100 units × a) (145,800 ) (72,900 )
Contribution margin $ 105,300 $ 178,200
Fixed cost (25,000 ) (97,900 )
Net income $ 80,300 $ 80,300
Contribution margin approach to computing the operating leverage:
= Contribution margin/net operating income
Larson Benson
Contribution margin $ 105,300 $ 178,200
Net operating income $ 80,300 $ 80,300
Operating leverage 1.31 2.22
Use the compounding or discounting formula to answer the questions. Round answers to the nearest dollar. a. Your small business has a cash reserve of $200,000, earning 2% annual interest. How much will your cash reserve be worth in 3 years? $ b. You want $1 million in your retirement account in 50 years. If your account grows at an annual rate of 4%, how much do you have to deposit today to reach $1 million in 50 years?
Answer:
a.
Future value - Cash Reserve = $212241.6
b.
Present value of deposit = $140712.615333 rounded off to $140712.62
Explanation:
a.
To calculate the value of cash reserve in 3 years, we will calculate the future value of the cash flow using the following formula,
Future value = Present value * (1 + r)^t
Where,
r is the rate of interest or returnt is the number of periodsFuture value - Cash Reserve = 200000 * (1+2%)^3
Future value - Cash Reserve = $212241.6
b.
To calculate the amount of deposit today, we need to calculate the present value of $1 million which are after 50 years from today. The formula to calculate the present value is as follows,
Present Value = Future value / (1 + r)^t
Where,
r is the interest rate or rate of return or discount ratet is the number of periodsPresent value = 1000000 / (1+4%)^50
Present value = $140712.615333 rounded off to $140712.62
Vaughn Manufacturing, has 14900 shares of 4%, $100 par value, cumulative preferred stock and 60000 shares of $1 par value common stock outstanding at December 31, 2021. There were no dividends declared in 2019. The board of directors declares and pays a $102000 dividend in 2020 and in 2021. What is the amount of dividends received by the common stockholders in 2021
Answer:
$25,200
Explanation:
The computation of the dividend received by the common stockholder for the year 2021 is shown below:
The Annual preferred dividend is
= 14,900 × $100 × 4%
= $59,600
Dividend due to preferred dividend in 2020
= Arrears of 2019 + Dividend of 2020
= $59,600 + $59,600
= $119,200
But the Dividend Paid in 2020 is $102,000
Arrears of dividend at the end of 2020 (Preferred) is
= $119,200 - $102,000
= $17,200
Now,
Dividend paid to preferred in 2021 = 2021 dividend + Arrears
= $59,600 + $17,200
= $76,800
Now Dividend paid to Common stockholders in 2021 is
= Total dividend - Dividend paid to preferred in 2021
= $102,000 - $76,800
= $25,200
Janelle is into running. As soon as she gets home from work at the hospital, she changes into her running clothes, puts on her high-quality running shoes, and goes outside to run. When her schedule permits it, Janelle participates in 5K runs to raise money for children's charities. She has met many friends who are also involved in running. The running groups that Janelle is involved with are examples of _______. a. income segmentation b. benefit segmentation c. geodemographic segmentation d. lifestyle segmentation
Answer:
d. lifestyle segmentation
Explanation:
Segmentation is the way in which various criteria is used to seperate the target market of a set of products.
In the given instance Janelle is involved in a lifestyle segment that is categorised on the basis of similar lifestyle.
She likes to run. This is a type of lifestyle, so the groups that she is involved with that also like running are an example of a lifestyle segmentation
Boehm Incorporated is expected to pay a $1.10 per share dividend at the end of this year (i.e., D1 = $1.10). The dividend is expected to grow at a constant rate of 4% a year. The required rate of return on the stock, rs, is 15%. What is the estimated value per share of Boehm's stock? Do not round intermediate calculations. Round your answer to the nearest cent. $
Answer:
$10
Explanation:
The dividend is $1.10
The constant rate is 4%
The required rate of return in the stock is 15%
Therefore the estimated value per share can be calculated as follows
= 1.10(0.15-0.04)
= 1.10/(0.11)
= $10
Hence the estimated valuee is $10
Suppose you win on a scratch‑off lottery ticket and you decide to put all of your $2,500 winnings in the bank. The reserve requirement is 5% . What is the maximum possible increase in the money supply as a result of your bank deposit?
Answer: $50,000
Explanation:
Reserve Requirement = 5% = 0.05
Change in reserves = $2500
The change in deposits is denoted as
= (1/rr) × change in reserves
where,
rr = reserve requirements
Change in deposits will now be:
= (1/rr) × change in reserves
= 1/0.05 × 2500
= 20 × 2500
= $50,000
Therefore, the maximum possible increase in the money supply as a result of your bank deposit will be $50,000.
Kansas Enterprises purchased equipment for $74,500 on January 1, 2021. The equipment is expected to have a ten-year service life, with a residual value of $6,450 at the end of ten years. Using the straight-line method, depreciation expense for 2022 and the book value at December 31, 2022, would be: Multiple Choice $6,805 and $54,440. $7,450 and $59,600. $7,450 and $53,150. $6,805 and $60,890.
Answer:
$6,805 and $60,890.
Explanation:
The computation of the depreciation expense for 2022 and the book value at December 31, 2022 is shown below;
Depreciation expense is
= (Cost - salvage value) ÷ useful life
= ($74,500 - $6,450) ÷ 10 years
= $6,805
And, the book value is
= $74,500 - ($6,805 × 2)
= $60,890
The following information relates to Bonita Co. for the year ended December 31, 2017: net income 1,298 million; unrealized holding loss of $11.3 million related to available-for-sale debt securities during the year; accumulated other comprehensive income of $51.9 million on December 31, 2016. Assuming no other changes in accumulated other comprehensive income.
Determine (a) other comprehensive income for 2017, (b) comprehensive income for 2017, and (c) accumulated other comprehensive income at December 31, 2017. (Enter answers in millions to 1 decimal place, e.g. 25.5. Enter loss using either a negative sign preceding the number e.g. -45.2 or parentheses e.g. (45.2).)
(a) Other comprehensive income(loss) for 2017 $ million
(b) Comprehensive income for 2017 $ million
(c) Accumulated other comprehensive income $ million
Answer:
a. The company incurred a loss of $11.3 million as an unrealized income from available-for-sale debt securities. It is the actual loss. Therefore, other comprehensive income is -($11.3) million.
b. Comprehensive income = Net income - Unrealized holding loss
Comprehensive income = $1,298 million - $11.3 million
Comprehensive income = $1,286.7 million
c. Accumulated comprehensive income = Existing income - Unrealized holding loss
Accumulated comprehensive income = $51.9 million - $11.3 million
Accumulated comprehensive income = $40.6 million