Answer: $204,800
Explanation:
When a good is shipped FOB shipping point, it means that the buyer assumes responsibility for the goods as soon as the goods reach the place they will be shipped from. The purchase from Pelzer should therefore be included in inventory because it has already been shipped.
A good shipped FOB Destination means that the buyer only assumes responsibility after the goods have been delivered to them. As the sale to Alvarez was still in transit, it is still the responsibility of Marigold and should be included in inventory.
Inventory is therefore:
= 155,000 + 28,000 + 21,800
= $204,800
Journalize the following transactions for the Evans Company. Assume the company uses a perpetual inventory system.
a. Sold merchandise for $645 cash. The cost of goods sold was $375.
b. Sold merchandise for $432 and accepted VISA as the form of payment. The cost of goods sold was $195.
c. Sold merchandise on account for $670. The cost of goods sold was $438.
d. Paid credit card fees for the month of $85.If an amount box does not require an entry, leave it blank.
Answer:
Evans Company
General Journal
Part a.
Debit : Cash $645
Debit : Cost of goods sold $375
Credit : Sales Revenue $645
Credit : Merchandise $375
Part b.
Debit : Cash $432
Debit : Cost of goods sold $195
Credit : Sales Revenue $432
Credit : Merchandise $195
Part c.
Debit : Accounts Receivable $670
Debit : Cost of goods sold $438
Credit : Sales Revenue $670
Credit : Merchandise $438
Part d.
Debit : Credit Card fees $85
Credit : Cash $85
Explanation:
The Perpetual inventory system calculates the cost of sale and inventory balance on each and every sale made hence the journals above.
Olivia wants to buy some vacant land for investment purposes. She currently cannot afford the full purchase price. Instead, Olivia pays the landowner $8,000 to obtain an option to buy the land for $175,000 anytime in the next four years. Fourteen months after purchasing the option, Olivia sells the option for $10,000. What is the amount and character of Olivia's gain or loss
Answer:
$2,000 gain
Explanation:
Calculation to determine the amount and character of Olivia's gain or loss
Based on the information given we were told that she pays the landowner the amount of $8,000 in order for her to obtain an option to buy a land in which after purchasing the option she sells the option for the amount of $10,000 making her to gain the amount of $2,000.
Olivia's gain =$10,000-$8,000
Olivia's gain =$2,000
Therefore The amount and character of Olivia's gain will be $2,000
Answer: $2000
Explanation:
The amount and character of Olivia's gain or loss will be gotten by calculating the amount that Olivia paid the landowner $8,000 to obtain an option to buy the land and the amount she eventually sold the option. This will be:
= $10000 - $8000
= $2000
Therefore, she had a capital gain of $2000
The information below pertains to Barkley Company for 2015.
Net income for the year $2,240,000
9% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 2,112,000
6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock 4,707,000
Common stock, $10 par value 6,959,000
Tax rate for 2015 45%
Average market price of common stock $25 per share
There were no changes during 2015 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 75,800 shares of common stock at $15 per share.
(a) Compute basic earnings per share for 2015. (Round answer to 2 decimal places, e.g. $2.55.)
Basic earnings per share
$
(b) Compute diluted earnings per share for 2015. (Round answer to 2 decimal places, e.g. $2.55.)
Diluted earnings per share
$
Presented below is a condensed version of the comparative balance sheets for Ravensclaw Corporation for the last two years at December 31.
2019 2018
Cash $230,100 $101,400
Accounts receivable 234,000 240,500
Investments 67,600 96,200
Equipment 387,400 312,000
Accumulated Depreciation-Equipment (137,800 ) (115,700 )
Current liabilities 174,200 196,300
Common stock 208,000 208,000
Retained earnings 399,100 230,100
Additional information:
Investments were sold at a loss of $13,000; no equipment was sold; cash dividends paid were $39,000; and net income was $208,000.
Required:
Create a Statement of Cash Flows for 2019.
Answer:
Ravensclaw Corporation
Statement of Cash Flows for the year ended December 31, 2019:
Net income $208,000
Add non-cash expense:
Depreciation expense 22,100
Loss from sale of investment 13,000
Cash from operations $243,100
Adjustments of working capital:
Accounts receivable $6,500
Current liabilities -22,100
Net cash from operations $227,500
Investing activities:
Cash from investment sale 15,600
Equipment -75,400
Financing activities:
Cash dividends paid -39,000
Net cash flows $128,700
Explanation:
a) Data and Calculations:
2019 2018 Differences
Cash $230,100 $101,400 +$128,700
Accounts receivable 234,000 240,500 -$6,500
Investments 67,600 96,200 -$28,600
Equipment 387,400 312,000 +$75,400
Accumulated Depreciation-
Equipment (137,800) (115,700) +$22,100 Depreciation Exp.
Current liabilities 174,200 196,300 -$22,100
Common stock 208,000 208,000 $0
Retained earnings 399,100 230,100 +$169,000
Cash dividends +$39,000
Net income = $208,000 ($169,000 + $39,000)
Cash from sold investments = $15,600 ($28,600 - $13,000)
An investor purchased a "par bond" for $300 with the principal $300. Over n = 5 years the bond will pay 8% coupon annually. Find the IRR of the cash flow stream (also called Yield to Maturity).
Answer:
8%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow in year 0 = $-300
Cash flow each year from year 1 to 4 = [tex]\frac{8}{100}[/tex] × $300 = $24
Cash flow in year 5 = $300 + 24 = $324
IRR = 8%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Surendra’s personal residence originally cost $340,000 (ignore land). After living in the house for five years, he converts it to rental property. At the date of conversion, the fair market value of the house is $320,000. As to the rental property, calculate Surendra’s basis for:________.
a. Loss.
b. Depreciation.
c. Gain.
d. Could Surendra have obtained better tax results if he had sold his personal residence for $320,000 to hold as rental property?
Answer:
a. Loss
The basis for Loss is the lower of the basis after it is adjusted for its new purpose or the fair market value.
Adjusted = $340,000
Fair market value = $320,000
Loss basis will therefore be the lower value of $320,000
b. Depreciation:
This is the same as the loss basis because the residence was converted from personal use to business use.
= $320,000
c. Gain
= Adjusted basis of the property
= $340,000
d. No.
Because he would be converting to rental property which is a business use, the loss that he would have incurred of $20,000 would have been disallowed and he wouldn't be able to deduct it.
Loss = Cost - fair value = 340,000 - 320,000 = $20,000
Piechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 6,100 units, but its actual level of activity was 6,050 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May:
Data used in budgeting:
Fixed element per month Variable element per unit
Revenue - $32.60
Direct labor $0 $3.90
Direct materials 0 12.10
Manufacturing overhead 33,400 1.80
Selling and administrative expenses 28,300 0.40
Total expenses $61,700 $18.20
Actual results for May:
Revenue $200,564
Direct labor $22,786
Direct materials $73,824
Manufacturing overhead $43,922
Selling and administrative expenses $31,896
The direct labor in the planning budget for May would be closest to:_________
a. $23,010
b. $22,633
c. $22,786
d. $23,166
Answer:
$23,595
Explanation:
The computation of the direct labor in the planning budget is shown below:
Direct labor in planning budget is
= Actual level of Activity × Direct labor per unit
= 6,050 × $3.90
= $23,595
For calculating the direct labor in the planning budget we simply multiplied the actual activity level by the direct labor per unit
This is the answer but the same is not provided in the given options
Mrs Blake is paid a weekly wage of $248. During a certain week she worked 5 hours
overtime. Her total wages were $285.50.
Calculate
her overtime wages
(2 marks)
(11)
the overtime rate of pay.
2 marks)p
285.50 -
248.00
037.50
A) 37.50 Dollars
B) $7.50 per hour overtime
37.50÷5
5_/37.50
07.50
Because testing of nuclear bombs was halted internationally in 1992, the Department of Energy has developed a laser system that allows engineers to simulate (in a laboratory) conditions in a thermo-nuclear reaction. Due to soaring cost overruns, a congressional committee undertook an investigation and discovered that the estimated development cost of the project increased at an average rate of 2% per six-months over a 5-year period. If the original cost was estimated to be $3.1 billion 5 years ago, what is the expected cost today?
Answer:
The estimated development cost of the project will increase from the original cost of $3.1 billion 5 years ago to $3.7727 billion today.
Explanation:
Data and Calculations:
Original estimated development cost = $3.1 billion
Average rate of interest = 2% per six months or 4% per year (2 * 2%)
Period of project = 5 years using 4% or 10 using 2%
Using a future value factor of 1.217 from a future value table at 4% per year for 5 years:
The expected cost today = $3.1 billion * 1.217 = $3.7727 billion
Using an online financial calculator:
Results:
FV = $3,778,882,701.98
Total Interest $678,882,701.98
N (# of periods) 10
I/Y (Interest per year) 4
PV (Present Value) $3,100,000,000
PMT (Periodic Payment) 0
Settings
P/Y (# of periods per year) 2
C/Y (# of times interest compound per year) 2
The United States is said to have an absolute advantage in producing food compared with Japan. What does that mean?
It must import most of its food from Japan.
It produces food more efficiently than Japan.
It produces food at a higher cost than Japan.
It must export most of its food to Japan.
Answer:
It produces food more efficiently than Japan.
Explanation:
Given that an ABSOLUTE ADVANTAGE is when a country or company can produce the same quantity of goods more efficiently than another country or company with lesser input or produce more quantities of goods with more efficiently with the same input.
Hence, in this case, when it is said that the United States has an absolute advantage in producing food compared with Japan, it means that "It produces food more efficiently than Japan."
The correct answer would be B: It produces food more efficiently than Japan
Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $630 were declared at the end of the year, and 590 additional shares of common stock ($0.10 par value per share) were issued at the end of the year for $2,910 in cash for a total at the end of the year of 810 shares). These effects are included below
Cash Catena's Marketing Company Adjusted Trial Balance End of the Current Year
Debit Credit
Cash $ 1,370
Accounts receivable 2,230
Interest receivable 170
Prepaid insurance 1,620
Long-term notes
receivable 2,890
Equipment 15,700
Accumulated depreciation $ 3.060
Accounts payable 2,400
Dividends payable 630
Accrued expenses payable 3,740
Income taxes payable 2,640
Unearned rent revenue 430
Common Stock (810 shares) 81
Additional paid in capital 3.589
Retained earnings 1,870
Sales revenue 38,780
Interest revenue 150
Rent revenue 760
Wages expense 20,700
Depreciation expense 1,700
Utilities expense
Insurance expense 760
Rent expense 7,880
Income tax expense 2,780
Total $58,130 $58,130
Prepare the closing entry at the end of the current year, (if no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Equipment was sold for $50,000. The equipment was originally purchased for $85,000. At the time of the sale, the equipment had accumulated depreciation of $30,000. Calculate the gain or loss to be recorded on the sale of equipment. Multiple Choice Gain of $5,000. Loss of $35,000. Gain of $20,000. Loss of $5,000.
Answer:
Loss of $5,000
Explanation:
loss to be recorded on the sale of equipment is $5,000
Barbur, Inc. reported net income of $20.35 million. During the year the average number of common shares outstanding was 3.7 million. The price of a share of common stock at the end of the year was $5. There were 680,000 shares of preferred stock outstanding on average and no dividends were declared and the preferred stock is non-cumulative.
1A. Use the information above, the EPS is approximately:_____.
a. $0.40.b. $1.76.c. $1.86.d. $2.00.
1B. Use the information above, the Price/Earnings ratio is approximately:_____.a. 2.00.b. 2.50.c. 2.84.d. 12.50.
Answer and Explanation:
The computation is shown below:
a. EPS = Net income ÷ Outstanding shares
= $20,350,000 ÷ 3,700,000 shares
= $5.50 per share
b. Price/Earnings ratio = Price of common stock ÷ EPS
= $5 ÷ $5.50
= 0.9091
Hence, the above represent the answer and the options that are given are incorrect
Bob is a farmer and is required to use the accrual method. At the beginning of the year, Bob has inventory, including livestock held for resale, amounting to $10,000. During the year, Bob purchased livestock totaling $3,000. Bob's ending inventory was $4,000. Bob's net sales for the year totaled $17,000. What is Bob's gross profit for the current year
Answer:
$3,000
Explanation:
Gross Profit = Sales - Cost of Sales
Prepare a Trading Account for Bob to determine gross profit.
LUVFINANCE, Inc. is estimating its WACC. It is operating at its optimal capital structure. Its outstanding bonds have a 12 percent coupon, paid semiannually, a current maturity of 17 years, and sell for $1,162. It has 100,000 bonds outstanding. The firm can issue new 20-year maturity semiannual bonds at par but will incur flotation costs of $50 per bond. The firm could sell, at par, $100 preferred stock that pays a 12 percent annual dividend that is currently selling for $120. The firm currently has 1,000,000 shares of preferred stock outstanding. Rollins' beta is 0.94, the risk-free rate is 3.72 percent, and the market risk premium is 6 percent. The common stock currently sells for $100 a share and there are 5,000,000 shares outstanding. The firm's marginal tax rate is 40 percent.
Required:
What is the WACC?
Solution :
Given :
The cost of the debt is yield to the maturity of the bonds.
The yield on the bond is 10%
The tax rate is 40%
After the tax cost of the debt = 10 ( 1- 0.4 )
= 6 %
Add floatation cost at the rate of 5% = 11%
Cost of the preferred stock = [tex]$\frac{\text{dividend}}{\text{price}}$[/tex]
= [tex]$\frac{120}{12}$[/tex] = 10%
The cost of equity = risk free rate + β x market risk premium
= 3.72 + 0.94 x 6
= 9.36%
WACC is weighted average of the individual securities :
Particulars Value per No. of Market value Weight Cost of Product
security securities security
Bonds 1162 100,000 116,200,000 0.1578 11 1.73621298
Preferred 120 1,000,000 120,000,000 0.1629 10 1.6299918
stocks
Equity 100 5,000,000 500,000,000 0.6791 9.36 6.356968
736,200,000 1 WACC 9.7231730
Therefore, WACC of the firm is 9.72%
Wildhorse Warehouse distributes hardback books to retail stores and extends credit terms of 4/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred. June 1 Purchased books on account for $2,265 (including freight) from Catlin Publishers, terms 4/10, n/30. 3 Sold books on account to Garfunkel Bookstore for $1,400. The cost of the merchandise sold was $800. 6 Received $65 credit for books returned to Catlin Publishers. 9 Paid Catlin Publishers in full. 15 Received payment in full from Garfunkel Bookstore. 17 Sold books on account to Bell Tower for $1,000, terms of 4/10, n/30. The cost of the merchandise sold was $850. 20 Purchased books on account for $800 from Priceless Book Publishers, terms 3/15, n/30. 24 Received payment in full, less discount from Bell Tower. 26 Paid Priceless Book Publishers in full. 28 Sold books on account to General Bookstore for $2,950. The cost of the merchandise sold was $830. 30 Granted General Bookstore $120 credit for books returned costing $60. Journalize the transactions for the month of June for Wildhorse Warehouse, using a perpetual inventor
Answer:
Wildhorse Warehouse
Journal Entries:
June 1: Debit Inventory $2,265
Credit Accounts payable (Catlin Publishers) $2,265
To record the purchase of goods on account, terms 4/10, n/30.
June 3: Debit Accounts receivable (Garfunkel Bookstore) $1,400
Credit Sales Revenue $1,400
To record the sale of goods on account.
June 3: Debit Cost of goods sold $800
Credit Inventory $800
To record the cost of goods sold.
June 6: Debit Accounts payable (Catlin Publishers) $65
Credit Inventory $65
To record the return of goods on account.
June 9: Debit Accounts payable (Catlin Publishers) $2,200
Credit Cash $2,112
Credit Cash Discounts $88
To record the payment on account.
June 15: Debit Cash $1,400
Credit Accounts receivable (Garfunkel Bookstore) $1,400
To record the receipt of cash on account.
June 17: Debit Accounts receivable (Bell Tower) $1,000
Credit Sales Revenue $1,000
To record the sale of goods on account.
June 17: Debit Cost of goods sold $850
Credit Inventory $850
To record the cost of goods sold.
June 20: Debit Inventory $800
Credit Accounts payable (Priceless Book Publishers) $800
To record the purchase of goods on account, terms 3/15, n/30.
June 24: Debit Cash $960
Debit Cash Discounts $40
Credit Accounts receivable (Bell Tower) $1,000
To record the receipt of cash on account.
June 26: Debit Accounts payable (Priceless Book Publishers) $800
Credit Cash $776
Credit Cash Discounts $24
To record the payment on account.
June 28: Debit Accounts receivable (General Bookstore) $2,950
Credit Sales Revenue $2,950
To receive the sale of goods on account.
June 28: Debit Cost of goods sold $830
Credit Inventory $830
To record the cost of goods sold.
June 30: Debit Sales Return $120
Credit Accounts receivable (General Bookstore) $120
To record the return of goods by a customer.
June 30: Inventory $60 Cost of Goods Sold $60
Explanation:
a) Data and Analysis:
Credit terms to all customers = 4/10, n/30. This means that 4% discount is allowed to customers who pay within 10 days. The credit period is for 30 days, after which the customer is expected to pay interest.
June 1: Inventory $2,265 Accounts payable (Catlin Publishers) $2,265; terms 4/10, n/30.
June 3: Accounts receivable (Garfunkel Bookstore) $1,400 Sales Revenue $1,400
June 3: Cost of goods sold $800 Inventory $800
June 6: Accounts payable (Catlin Publishers) $65 Inventory $65
June 9: Accounts payable (Catlin Publishers) $2,200 Cash $2,112 Cash Discounts $88.
June 15: Cash $1,400 Accounts receivable (Garfunkel Bookstore) $1,400
June 17: Accounts receivable (Bell Tower) $1,000 Sales Revenue $1,000
June 17: Cost of goods sold $850 Inventory $850
June 20: Inventory $800 Accounts payable (Priceless Book Publishers) $800; terms 3/15, n/30.
June 24: Cash $960 Cash Discounts $40 Accounts receivable (Bell Tower) $1,000
June 26: Accounts payable (Priceless Book Publishers) $800 Cash $776 Cash Discounts $24
June 28: Accounts receivable (General Bookstore) $2,950 Sales Revenue $2,950
June 28: Cost of goods sold $830 Inventory $830
June 30: Sales Return $120 Accounts receivable (General Bookstore) $120
June 30: Inventory $60 Cost of Goods Sold $60
The Board of Ursinus College in Pennsylvania raised its tuition and fees 17.6 percent to $23,460 in 2000. It subsequently received 200 more applications than the year before. The president of the college surmised that "applicants had apparently concluded that if the college cost more, it must be better." Other colleges that raised tuition to match rival colleges in recent years include University of Notre Dame, Bryn Mawr College, Rice University, and the University of Richmond. They also experienced an increase in applications. In contrast, North Carolina Wesleyan College lowered their tuition and fees about 10 years ago by 22 percent and attracted fewer students. The college president concluded that "it didn't work out the way it had been hoped. People don't want cheap."
You are hired as a consultant to a President of a liberal arts college in the East. You are asked to evaluate a recommendation by the college's Admissions Director. Susan Hansen, to increase tuition and to reduce financial aid to students. Susan argues that the data from competing colleges suggest that the demand curves for colleges slope upward-the quantity demanded increases with price. Susan projects that the increase in tuition and reduction in financial aid will solve the school's financial problems. Last year, the college enrolled 400 new students who each paid an effective tuition of $15,000 (after financial aid), totaling $6,000,000. She projects that with the increased demand from charging an effective tuition of $25,000, the college will be able to enroll 600 new students (of equal or better quality), totaling $15,000,000.
Required:
Evaluate Susan's analysis and recommendation
Solution :
The demand curve : The quantity demanded for each price
[tex]$D=Q(P)$[/tex]
The prices goes up, quantity demanded will decreases.
The price goes up, quantity demanded will increase
Board of the Ursinus College in Pennsylvania raised tuition fees : $ 23,460 which is 17.6 % more to 2000.
The applicants : 200 more from previous year.
Therefore the college cost most, then it must be better.
Other rival competitions have also seen same scenarios. When cost goes down, the demand decreases.
Susan's perceptive :
Demand increases with cost increase and the demand curve slopes upwards.
Our understanding is completely different with the understanding of the college administrative officer, Susan.
Our understanding is negative slope of the demand curve other than change in price of any other parameter will lead to shift in demand curve, either in or out.
If all the tuitions fees are increased, then financial aid needs to be sponsored by the 'state'. That will effect reserves which leads to the failure of the sole purpose of aids.
Our recommendation should be to tell the board members the long term effects of the increase in the tuitions fees and no financial aid will create.
Suppose that a hot dog vendor uses a cart (K) and his time (L) to make and sell hot dogs. The vendor's production function is , where Q is the number of hot dogs per day. Suppose that the rental on hot dog carts is $50 per day and that the vendor wants to produce 500 hot dogs per day. The demand for labor is ____.
Answer:
L = 2084.75 W^-0.3
Explanation:
The computation of the demand of the labor is shown below:
At the optimum input
As we know that
MRTS = MPL ÷ MPK = w ÷ r
0.7(K ÷ L)^0.3 ÷ 0.3(L ÷ K)^0.7 = w ÷ 50
7K ÷ 3L = w ÷ 50
K = (3 ÷ 350)wL
Now apply the production function
Q = K^0.3L^0.7
500 = ((3 ÷ 350)wL)^0.3 L^0.7
500 = (3 ÷ 350)^0.3 × w^0.3 × L
L = 2084.75 × w^-0.3.
At the end of 2009, the following information is available for Clobes Company, Snyder Company, and Welz Company (you must show your calculations to receive full credit): Required: Which company has the highest level of financial risk? Using an appropriate ratio, support your answer. Which company is the most profitable from the owners' perspective? Using an appropriate ratio, support your answer. (3) Which company is getting the greatest return on assets? Show calculations.
Answer:
Answer is explained in the explanation section below.
Explanation:
Note: This question is incomplete and lacks necessary data to solve for this question. However I have found similar question on the internet and I will be using that data. Besides, I have attached the data used in the attachment below.
Solution:
1. The debt-to-equity ratio is the best way to assess financial risk. A higher debt-to-equity ratio indicates a higher level of financial risk. This ratio represents the willingness of the equity of the owners to fulfil their obligations.
Formula used:
Debt-to-equity ratio = Total liabilities divided by owner's equity
For Clobes:
Total liabilities = 100,000
Owners' equity = 200,000
Debt-to-equity ratio = 100000/200000 = 0.5
For Snyder:
Total liabilities = 300,000
Owners' equity = 200,000
Debt-to-equity ratio = 300000/200000 = 1.5
For Welz:
Total liabilities = 300,000
Owners' equity = 100,000
Debt-to-equity ratio = 300000/100000 = 3
Welz faces the greatest financial risk because it has the highest debt-to-equity ratio. It has a debt-to-equity ratio of three. Even though it depends on the industry, a company's debt-to-equity ratio should be between 1 and 1.5 if it is considered optimal. In this case, Welz's financial risk is considerably higher.
2. calculate Return on Equity(ROE)
Formula used:
ROE = Net income / Owner's equity
For Clobes:
Net income = 25,000
Owners' equity = 200,000
ROE = 25,000 / 200000 = 0.125
For Snyder:
Net income = 30,000
Owners' equity = 200,000
ROE = 30000 / 200000 = 0.15
For Welz:
Net income = 20,000
Owners' equity = 200,000
ROE = 20000 / 100000 = 0.2
Welz has the highest return of equity (ROE) of 0.2.
As a result, Welz is the most profitable company.
3. Return on assets:
Formula used
Return on Assets = Net income / Total assets
For Clobes:
Net income = 25,000
Total assets = 300,000
Return on Assets = 25,000 / 300000 = 0.08
For Snyder:
Net income = 30,000
Total assets = 500000
Return on Assets = 30000 / 500000 = 0.06
For Welz:
Net income = 20,000
Total assets = 400,000
Return on Assets = 20000 / 400000 = 0.05
Hence,
Clobes has the highest return on assets, which is 0.08.
Suppose a monopolist is producing a level of output such that MR > MC. Which of the following best describes what will happen as the firm moves to its profit-maximizing equilibrium? A) Marginal revenue will rise and marginal cost will fall. B) Marginal cost and marginal revenue will both rise. C) Marginal revenue will fall and marginal cost will rise. D) Marginal cost and marginal revenue will both fall.
Answer: C) Marginal revenue will fall and marginal cost will rise.
Explanation:
The profit-maximizing equilibrium is the production point where the Marginal Revenue equals the Marginal cost.
As the monopolist moves towards this point, they will see their marginal costs increase because they will be producing more goods.
For a monopolist to sell more goods however, they will need to reduce their prices. This means that Marginal revenue will come down.
Marginal revenue will keep decreasing and Marginal cost will keep increasing until both of them become equal to each other.
Give me a couple countries that have a low and high quality of life index
Answer:
Countries with have mediocre quality of Life index: Puerto Rico, South Korea, Greece, Bulgaria, Romania
Bruce Corporation makes four products in a single facility. These products have the following unit product costs:
Products
A B C D
Direct materials $16.10 $20.00 $13.00 $15.70
Direct labor 18.10 21.50 15.90 9.90
Variable manufacturing overhead 4.90 6.10 8.60 5.60
Fixed manufacturing overhead 28.00 14.90 15.00 17.00
Unit product cost 67.10 62.50 52.50 48.20
Additional data concerning these products are listed below.
Products
A B C D
Grinding minutes per unit 2.25 1.35 0.95 0.55
Selling price per unit $81.20 $73.60 $70.40 $65.10
Variable selling cost per unit $3.10 $3.60 $3.30 $4.00
Monthly demand in units 3,500 2,500 2,500 4,500
The grinding machines are potentially the constraint in the production facility. A total of 10,500 minutes are available per month on these machines. Direct labor is a variable cost in this company.
Required:
Which product makes the MOST profitable use of the grinding machines?
Answer:
Product D
Explanation:
Calculation to determine Which product makes the MOST profitable use of the grinding machines
First step is to calculate the Variable cost per unit
Products
A B C D
Direct materials $16.10 $20.00 $13.00 $15.70
Add Direct labor 18.10 21.50 15.90 9.90
Add Variable manufacturing overhead 4.90 6.10 8.60 5.60
Add Variable selling cost per unit $3.10 $3.60 $3.30 $4.00
Variable cost per unit $42.20 $51.60 $40.80 $35.20
Now let calculate the product that makes the MOST profitable use of the grinding machines
Selling price per unit $81.20 $73.60 $70.40 $65.10
Less Variable cost per unit $42.20 $51.60 $40.80 $35.20
=Contribution margin per unit $39 $22 $29.60 $29.90
÷Grinding minutes per unit 2.25 1.35 0.95 0.55
=Contribution per grinding minutes $17.33 $16.30 $31.16 $54.36
Therefore Based on the above calculation the product that makes the MOST profitable use of the grinding machines is PRODUCT D because it has the highest Contribution per grinding minutes of the amount of $54.36
Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 9.2%, a YTM of 7.2%, and has 17 years to maturity. Bond Y is a discount bond making semiannual payments. This bond has a coupon rate of 7.2%, a YTM of 9.2%, and also has 17 years to maturity. Assume the interest rates remain unchanged and both bonds have a par value of $1,000.
1. What are the prices of these bonds today?
2. What do you expect the prices of these bonds to be in one year?
3. What do you expect the prices of these bonds to be in three years?
4. What do you expect the prices of these bonds to be in eight years?
5. What do you expect the prices of these bonds to be in 12 years?
6. What do you expect the prices of these bonds to be in 17 years?
Answer:
I used an Excel spreadsheet to calculate the answers (see attached file):
1. What are the prices of these bonds today?
bond X = $1,194
bond Y = $830
2. What do you expect the prices of these bonds to be in one year?
bond X = $1,194
bond Y = $830
3. What do you expect the prices of these bonds to be in three years?
bond X = $1,175
bond Y = $844
4. What do you expect the prices of these bonds to be in eight years?
bond X = $1,131
bond Y = $879
5. What do you expect the prices of these bonds to be in 12 years?
bond X = $1,083
bond Y = $921
6. What do you expect the prices of these bonds to be in 17 years?
bond X = $1,046
bond Y = $1,036
is it possible for a company to be too liquid
Answer:
yes it is possible ......
Answer:
A company can have too much liquidity, which may be a sign that it's holding onto cash that could be invested. In a sense, even borrowing money is another typical source of liquidity for businesses. To meet its obligations, the ability to take out loans will be a factor in its liquidity.
Explanation:
central bank definition
Explanation:
a national bank that provides financial and banking services for its country's government and commercial banking system, as well as implementing the government's monetary policy and issuing currency.
watch the video " the best stats youve ever seen " then answer the questions.
Answer:
thats a long video I'll pass
Inventory records for Dunbar Incorporated revealed the following:
Date Transaction Number Unit
of Units Cost
Apr. 1 Beginning inventory 550 $2.33
Apr. 20 Purchase 310 2.68
Dunbar sold 560 units of inventory during the month. Ending inventory assuming weighted-average cost would be:__________.
a. $737.
b. $694.
c. $817.
d. $752.
Answer:
a. $737.
Explanation:
The computation of the ending inventory using weighted average cost is shown below:
But before that first determine the average cost per unit
= (Beginning cost + purchase cost) ÷ (Beginning units + purchased units)
= (550 × $2.33 + 310 × $2.68) ÷ (550 units + 310 units)
= ($1,281.5 + $830.8) ÷ (860 units)
= $2.46
Now the ending inventory is
= (860 units - 560 units) × $2.46
= $737
Nancy, the owner of a very successful hotel chain in the Southeast, is exploring the possibility of expanding the chain into a city in the Northeast. She incurs $35,000 of expenses associated with this investigation. Based on the regulatory environment for hotels in the city, she decides not to expand. During the year, she also investigates opening a restaurant that will be part of a national restaurant chain. Her expenses for this are $53,000. The restaurant begins operations on September 1.
Determine the amount Nancy can deduct in the current year for investigating these two businesses.
Answer:
$3,133.
As regard to opening a restaurant, investigation expense = 53,000 - 2000 = $51,000.
Explanation:
Before diving straight into the solution to this problem, let's take out some of the parameters given in the question above.
=> Nancy incurs $35,000 of expenses associated with the investigation of the possibility of expanding the chain into a city in the Northeast.
=> Nancy expenses for investigates opening a restaurant that will be part of a national restaurant chain are $53,000.
The first thing to do right now is to determine the value for the investigation as regard to the opening of a restaurant = [ 2000 × (51,000/180 months) × 4] = $3,133.
The next thing is to determine the value for the deduction which is available. This can be done below as:
The amount Nancy can deduct in the current year for investigating these two businesses = 5000 - [ 53000 - 50000] = $2, 000
As regard to opening a restaurant, investigation expense = 53,000 - 2000 = $51,000.
Theory Enterprises uses a standard cost system and prepared the following budget for May when 24,000 machine hours of activity were anticipated: variable overhead, $48,000; fixed overhead: $240,000. Actual data for May were: Standard machine hours allowed for output attained: 25,000 Actual machine hours worked: 24,000 Variable overhead incurred: $50,000 Fixed overhead incurred: $250,000 The variable-overhead spending and efficiency variances for Theory are: Variable-Overhead Spending Variance Variable-Overhead Efficiency Variance A. $ 0 $ 0 B. $ 0 $ 2,000 unfavorable C. $ 2,000 unfavorable $ 0 D. $ 2,000 favorable $ 2,000 unfavorable E. $ 2,000 unfavorable $ 2,000 favorable
Answer:
See below
Explanation:
a. Variable overhead spending variance
= AH × ( AR - SR)
Where
AH = Actual Hours worked = 24,000
AR = Actual variable overhead rate = $50,000
SR = Standard variable overhead rate = $48,000
Therefore,
Variable overhead spending variance
= 24,000 × ($50,000 - $48,000)
= $48,000
common stock definition.
Answer:
Common stock is a security that represents ownership in a corporation.
Explanation:
Holders of common stock elect the board of directors and vote on corporate policies.