Answer: $3850
Explanation:
From the question, we are informed that Marin operates a manufacturing business, and this year the three-year-old van she used in the business was destroyed in a fire. We are further told that the van was originally bought for $23,000 and the adjusted basis was $5,425 at the time of the accident and that although the van was worth $6,300 at the time of accident, insurance only paid Marin $1,575 for the loss.
The amount of Marin's casualty loss deduction will be the difference between the adjusted basis and the amount paid to Marin by the insurance company for the loss. This will be:
= $5425 - $1575
= $3850
What do you see as the major deficiencies current information systems budgeting and prioritization processes are run
Answer:
The major challenges with the current information systems budgeting and prioritisation process are:
The focus was overly on how the budgeted monies will be spent and how much return it will bring to the business. Not much thought was given to how the monies required for the expenses will be generated. Budgeting not only looks at the outflow, it examines existing and potential sources of income/revenue. When this is balanced, the company can integrate such into their marketing strategy armed with what information about the market that they possess.The prioritization is all wrong. Budgeting is because there is are organisational objectives to be met with limited resources.
Because those resources are limited, the said objectives have to be prioritized. Income-generating projects must hold more priority over non-revenue generating activities.
If there is a strategic link between the company's Information Systems upgrade and an increase in its bottom line, then it must be given priority.
Cheers!
Why does e-commerce save businesses money?
O
A. Because warehouses can stock much more inventory than stores.
B. Because they charge more for online purchases.
ОО
C. Because more people shop online than in stores.
D. Because they lower the quality of the product for online
purchases.
Answer:
A. Because warehouses can stock much more inventory than stores.
Explanation:
"The gross earnings of factory workers for Dinkel Company during the month of January are $400,000. The employer's payroll taxes for the factory payroll are $80,000. Of the total accumulated cost of factory labor, 75% is related to direct labor and 25% is attributable to indirect labor. Prepare the entry to record the factory labor costs for the month of January"
Answer and Explanation:
The Journal entry is shown below:-
Factory labor Dr, $480,000
To Factory wages payable $400,000
To Employee payroll taxes payable $80,000
(Being factory labor cost is recorded)
Here we debited the factory labor as it increased the expenses and we credited the factory wages payable and employee payroll taxes payable as it also increased the liabilities
Transactions for Jayne Company for the month of June are presented below.
June
1 Issues common stock to investors in exchange for $5,000 cash.
2 Buys equipment on account for $1,100.
3 Pays $740 to landlord for June rent.
12 Sends Wil Wheaton a bill for $700 after completing welding work.
Identify the accounts to be debited and credited for each transaction.
Account Debited Account Credited
june 1
june 2
june 3
june 12
Answer:
June 1 , common stocks are issued
Dr Cash 5,000
Cr Common stock 5,000
June 2 , equipment purchased on account
Dr Equipment 1,100
Cr Accounts payable 1,100
June 3 , monthly rent paid
Dr Rent expense 740
Cr Cash 740
June 12, service revenue
Dr Accounts receivable 700
Cr Service revenue 700
Prescott Football Manufacturing had the following operating results for 2019: sales = $30,174; cost of goods sold = $21,740; depreciation expense = $3,512; interest expense = $544; dividends paid = $849. At the beginning of the year, net fixed assets were $20,046, current assets were $3,029, and current liabilities were $3,776. At the end of the year, net fixed assets were $23,077, current assets were $4,447, and current liabilities were $3,077. The tax rate for 2019 was 21 percent.
a. What is net income for 2016? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Net income $b. What is the operating cash flow for 2016? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Operating cash flow $c. What is the cash flow from assets for 2016? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Cash flow from assets $Assume no new debt was issued during the year.d. What is the cash flow to creditors for 2016? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Cash flow to creditors $e. What is the cash flow to stockholders for 2016? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Cash flow to stockholders $
Answer:
Prescott Football Manufacturing
a. Net Income for 2019:
2019: sales = $30,174
cost of goods sold = $21,740
depreciation expense = $3,512
interest expense = $544
Pre-tax Income = $4,378
21% Tax = 919-38
Net Income = $3,459
b) Operating cash flow
Net Income = $3,459
Non-cash:
Depreciation Expense 3512
Increase in current assets -1,418
Decrease in current liabilities -699
Net operating cash flow $4,854
c) Cash flow from assets:
Increase in Assets -$3,031`
d) Cash flow to creditors:
Decrease in liabilities -$699
e) Cash flows to stockholders:
Dividends paid = -$849
Explanation:
a) 2019: sales = $30,174
cost of goods sold = $21,740
depreciation expense = $3,512
interest expense = $544
Pre-tax Income = $4,378
21% Tax = 919
Net Income = $3,459
dividends paid = $849.
b) Balance Sheet:
At the beginning of the year,
net fixed assets were $20,046,
current assets were $3,029, and
current liabilities were $3,776.
c) Balance at the end of the year,
At the end of the year,
net fixed assets were $23,077,
current assets were $4,447, and
current liabilities were $3,077.
Prescott Football Manufacturing
Part A:
Net Income for 2016:
Sales = $30,174 Cost of goods sold = $21,740 Depreciation expense = $3,512 Interest expense = $544 Pre-tax Income = $4,378 21% Tax = 919-38Net Income = $3,459
Working Notes:
sales = $30,174 cost of goods sold = $21,740 depreciation expense = $3,512 interest expense = $544 Pre-tax Income = $4,378 21% Tax = 919 Net Income = $3,459 dividends paid = $849.Part B:
Operating cash flow
Net Income = $3,459Non-cash:
Depreciation Expense 3512 Increase in current assets -1,418 Decrease in current liabilities -699 Net operating cash flow $4,854
Working Notes :
At the beginning of the year, Net fixed assets were $20,046, Current assets were $3,029, Current liabilities were $3,776.Part C:
Cash flow from assets:
Increase in Assets -$3,031`
Working Notes :
Balance at the end of the year, At the end of the year, net fixed assets were $23,077, current assets were $4,447, current liabilities were $3,077.
Part D :
Cash flow to creditors:
Decrease in liabilities = -$699
Part E :
Cash flows to stockholders:
Dividends paid =-$849
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10) Financial intermediaries can substantially reduce transaction costs per dollar of transactions
because their large size allows them to take advantage of
Answer: D) economies of scale.
Explanation:
Economies of scale refers to when an entity is able to reduce its total costs as quantities of the good causing the costs increase.
Financial Intermediaries such as Commercial banks, Mutual funds, Investment banks etcetera have a lot of funds available for trade which they use to execute large trades. As a result, the costs on average are lower or them per transaction as opposed to traders executing with lower volumes. For example, when purchasing shares they will be able to negotiate better fees with stockbrokers because they are buying a lot of shares as opposed a single buyer trading.
Use the net FUTA tax rate of 0.6% on the first $7,000 of taxable wages. Queno Company had FUTA taxable wages of $510,900 during the year. Determine its: (Round your answers to two decimal places.) a. gross FUTA tax $ . b. FUTA tax credits (assuming no penalties) $ . c. net FUTA tax
Answer:
a. $30,654
b. $27,588.60
c. $3,065.40
Explanation:
The Gross/ Standard Federal Unemployment Tax (FUTA) is 6.0% but employers tend to receive a 5.4% reduction/ credit upon filing form 940 leaving them with a net of 0.6%.
a. The Gross tax is;
= 510,900 * 6%
= $30,654
b. FUTA Tax Credits
= 510,900 * 5.4%
= $27,588.60
c. Net FUTA Tax
= 510,900 * 0.6%
= $3,065.40
Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:
Inventory on units; cost $5.70 each.
Purchased 12,000 units for $5.90 each.
Sold 9,600 units for $12 each.
Purchased 7,200 units for $6.00 each.
Sold units for $11.40 each.
Purchased 4,400 units for $5. 80 each.
Inventory on units.
Required:
Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using the Average cost method.
Aug. 1 Inventory On Hand—2,000 Units; Cost $5.70 Each.
Second sales assumed to be 7,000 units at a price of $11.40 each.
Answer:
Altira Corporation
August 2021 Ending Inventory & Cost of Goods Sold:
1. Ending Inventory = 9,000 units at $5.88 per unit = $52,920
2. Cost of goods sold =
9,600 x $5.87 = $56,352
7,000 x $5.95 = $41,650
16,600 units = $98,002
Explanation:
a) Calculations:
Units Unit Cost Total Cost
Beginning Inventory 2,000 $5.70 $11,400
Purchases 12,000 $5.90 $70,800
Weighted average cost = ($11,400 + $70,800) / 14,000 = $5.87
Sales (9,600) $12.00 $115,200
Units remaining 4,400 $5.87 $25,828
Purchases 7,200 $6.00 $43,200
Weighted average cost = ($25,828 + $43,200) / 11,600 = $5.95
Sales (7,000) $11.40 $79,800
Units remaining 4,600 $5.95 $27,370
Purchases 4,400 $5.80 $25,520
Weighted average cost = ($27,370 + $25,520) / 9,000 = $5.88
Ending Inventory 9,000 $5.88 $52,920
b) The 'Average Cost Method' or the Weighted Average Cost Method assumes that the cost of inventory is based on the average cost of the goods available for sale during the period. To compute the average cost, divide the total cost of goods available for sale by the total units available for sale.
At the organizational level, the Team Leadership Model (TLM) suggests that leaders examine the ________ that may be impacting their team.
Answer:
Reward systems
Explanation:
The Team Leadership is a model that provides a Working environment where members are accountable to the coach and also to the team as a whole.
Team-based reward systems can help increase motivation and collaboration among members of a team, this would help the team goals to be better integrated with better objectives and also serve as a way of getting the whole team to improve
Suppose the most you would be willing to pay to have a freshly washed car before going out on a date is $8.00. The smallest amount for which you would be willing to wash someone else's car is $5.50. You are going out this evening and your car is dirty. How much economic surplus would you receive from washing it
Answer:
1. The most you would be willing to pay for having a freshly washed car before going out on a
date is $6. The smallest amount for which you would be willing to wash someone else's car is
$3.50. You are going out this evening, and your car is dirty. How much economic surplus
would you receive from washing it?
The economic surplus from washing your dirty car is the benefit you receive from doing so ($6)
minus your cost of doing the job ($3.50), or $2.50.
2. To earn extra money in the summer, you grow tomatoes and sell them at the farmers' market
for 30 cents per pound. By adding compost to your garden, you can increase your yield as
shown in the table below. If compost costs 50 cents per pound and your goal is to make as much
money as possible, how many pounds of compost should you add?
Pounds
of
compost
Pounds
of
tomatoes
Marginal
Cost
($)
Marginal
Benefit
(pounds)
Marginal
Benefit
($)
Net
Benefits
Marginal
Net
Benefits
0 100 ---- 0 --- 0 ---
1 120 0.50 20 6.00 5.50 5.50
2 125 0.50 5 1.50 6.50 1.00
3 128 0.50 3 0.90 6.90 0.40
4 130 0.50 2 0.60 7.00 0.10
5 131 0.50 1 0.30 6.80 - 0.20
6 131.5 0.50 0.5 0.15 6.45 - 0.35
The benefit of adding a pound of compost is the extra revenue you’ll get from the extra tomatoes
that result. The cost of adding a pound of compost is 50 cents. By adding the fourth pound of
compost you’ll get 2 extra pounds of tomatoes, or 60 cents in extra revenue, which more than
covers the 50-cent cost of the extra pound of compost. But adding the fifth pound of compost
gives only 1 extra pound of tomatoes, so the corresponding revenue increase (30 cents) is less than
the cost of the compost. You should add 4 pounds of compost and no more.
3. Residents of your city are charged a fixed weekly fee of $6 for garbage collection. They are
allowed to put out as many cans as they wish. The average household disposes of three cans of
garbage per week under this plan. Now suppose that your city changes to a "tag" system. Each
can of refuse to be collected must have a tag affixed to it. The tags cost $2 each and are not
reusable. What effect do you think the introduction of the tag system will have on the total
quantity of garbage collected in your city? Explain briefly.
In the first case, the cost is $6/week no matter how many cans you put out, so the cost of
disposing of an extra can of garbage is $0. Under the tag system, the cost of putting out an extra
can is $2, regardless of the number of the cans. Since the relevant costs are higher under the tag
system, we would expect this system to reduce the number of cans collected.
Explanation:
You Save Bank has a unique account. If you deposit $8,000 today, the bank will pay you an annual interest rate of 3 percent for 5 years, 3.6 percent for 4 years, and 4.3 percent for 8 years. How much will you have in your account in 17 years
Answer:
Total money after 17 years = $14962
Explanation:
Given present value or mount deposited today = $8000
Annual interest rate for 5 years = 3 %
Annual interest rate for 4 years = 3.6 %
Annual interest rate for 8 years = 4.3 %
Now we have to calculate the total amount after 17 years. Below is the calculation.
[tex]Total \ amount = 8000(1 + 0.03)^{5} (1+ 0.036) ^{4} (1+ 0.043 ) ^{8} \\Total \ amount = $14962[/tex]
What is the current price for a bond worth $4,000 that has a price quote of 50?
Answer:
$ 2,500 as far as i know.
Explanation:
Suppose the government taxes the wealthy at a higher rate than it taxes the poor and then develops programs to redistribute the tax revenue from the wealthy to the poor. This redistribution of wealth is a. is more efficient and more equal for society. b. is more efficient but less equal for society. c. is more equal but less efficient for society. is less equal and less efficient for society.
Bridget drinks three soda during a particular day. The marginal benefits she enjoys from drinking the third soda. a. can be thought of as the total benefit Bridget enjoys by drinking three sodas minus the total benefit she would have enjoyed by drinking just two sodas. b. determines Bridget's willingness to pay for the third soda. c. is likely different from the marginal benefit provided to Bridget by the second soda.
Answer:
1. c. is more equal but less efficient for society
2. All of the above
Explanation:
1. When taxes reduce the income going to the wealthy and instead redistributes it to the poorer members of society, it increases equality because the poorer members will have some form of income to bridge the gap between them and the rich. However, this may not be good for the efficiency of the society. This is because increasing the income on the wealthier will both reduce the income they have for investment as well as their willingness to work knowing that they will lose some of their rewards to taxes. These 2 things will reduce the output of the society thereby hurting its efficiency.
2. Marginal benefit in terms of production for instance is the extra benefit gained from producing one extra good. It can therefore be calculated by subtracting the total benefit of all the other produced goods from the total benefits of all produced goods including the additional one. In the same way, the marginal benefit of Bridget drinking the third soda can be thought of as the total benefit Bridget enjoys by drinking three sodas minus the total benefit she would have enjoyed by drinking just two sodas.
The marginal benefit that Bridget will get from drinking the third soda will indeed determine what she will pay for it. If she feels that it costs more to her than what she will benefit, she will not buy.
As more of a good is consumed, the marginal benefit decreases in general and is almost never the same. For Bridget therefore, the marginal benefit of the third soda is likely different from the marginal benefit provided to Bridget by the second soda.
Dartford Company reported the following financial data for one of its divisions for the year; average investment center total assets of $4,100,000; investment center income $700,000; a target income of 12% of average invested assets. The residual income for the division is:
Answer:
$208,000
Explanation:
Calculation for Dartford Company residual income
Using this formula
Residual income=Investment center income -(Target income percentage of average invested assets ×Average investment center total assets)
Let plug in the formula
Residual income =$700,000-(12%×$4,100,000)
Residual income =$700,000 - $492,000
Residual income =$208,000
Therefore The residual income for the division is: $208,000
The Green Giant has a 7 percent profit margin and a 61 percent dividend payout ratio. The total asset turnover is 1.4 times and the equity multiplier is 1.6 times. What is the sustainable rate of growth
Answer:
5.17%
Explanation:
The green giant has a 7% profit margin
= 7/100
= 0.07
The dividend payout ratio is 67%
= 67/100
= 0.67
Total turnover is 1.4 times
Equity multiplier is 1.6 times
The first step is to calculate the return of equity
ROE= profit margin×total turnover×equity multiplier
= 0.07×1.4×1.6
= 0.1568
Therefore, the sustainable rate of growth can be calculated as follows
= return of equity×(1-dividend payout ratio)
= 0.1568×(1-0.67)
= 0.1568×0.33
= 0.0517×100
= 5.17%
Hence the sustainable rate of growth is 5.17%
Cash received from customers includes all $139,000 of the accounts receivable that were outstanding at November 30, 2017. Accounts receivable at December 31, 2017 totaled $141,000. Accounts payable (to suppliers of inventory) decreased by $19,000 from November 30, 2017 to December 31, 2017. The balance in the inventory account decreased by $39,000 over the same period. Required: What is gross profit for the month of December under accrual accounting
Answer:
Gross profit from the month of December is $238000
Explanation:
Question is incomplete but the missing part is:
Cash received from customer during december 2017 - 387,000
Cash paid to supplier for inventory during december 2017 - 131,000
Accrual basis revenues
Particulars Amount $
Cash received from customer 387000
during December 2017
Cash received in December for -139000
November accounts receivable
December sales made on account 141000
collected in January
Accrual basis revenues 389000
Accrual basis expenses
Particulars Amount $
Cash paid to suppliers for inventory 131000
during December 2017
Payments for inventory purchased -19000
and used in November
Inventory purchased in November 39000
but not used in December
Accrual basis expenses 151000
Gross profit from the month of December= Accrual basis revenues - Accrual basis expenses
Gross profit = 389000 - 151000
Gross profit = $238000
Which of the following statements is CORRECT?a. Because of their simplified organization, it is easier for proprietors and partnerships to raise large amounts of outside capital than it is for corporations. b. Bond covenants are an effective way to resolve conflicts between shareholders and managers. c. One advantage to forming a corporation is that the owners of the firm have limited liability. d. Corporations face few regulations and more favorable tax treatment than do proprietorships and partnerships. e. Managers who face the threat of hostile takeovers are less likely to pursue policies that maximize shareholder value compared to managers who do not face the threat of hostile takeovers.
Answer:
c. One advantage to forming a corporation is that the owners of the firm have limited liability.
Explanation:
A company is characterized as a business entity owned by shareholders and regulated by the appointed board of directors bodies. A company is a legal entity that implies it can sue and be taken to court. It can be entered into a contractual agreement, too.
Therefore the correct option is c. as it says that in the corporation the business owners have the limited liability and i.e true statement
Required information Going on a Business Trip to China Business professionals who are high in cultural intelligence possess skills and attributes to work effectively with members of other cultures. They respect, recognize, and appreciate cultural differences; possess curiosity and interest in other cultures; avoid inappropriate stereotypes; adjust conceptions of time and show patience; manage language differences to achieve shared meaning; understand cultural dimensions; establish trust and show empathy across cultures; approach cross-cultural work relationships with a learner mind-set; and build co-cultures of cooperation and innovation. In this exercise, you evaluate the experiences of an operations manager going to China to examine factories and potentially take bids for some of your company's operations. You will notice differences in communication across cultures and analyze the interactions in terms of cultural intelligence and the following cultural dimensions: individualism and collectivism, egalitarianism and hierarchy, future orientation, assertiveness, and humane orientation. Read the case below and answer the questions that follow. Recently, senior managers at Judith Carey's company concluded that some of the company's operations needed to be produced in lower-wage locations for the company to stay profitable. They placed Judith in charge of learning about options in China, a country she had never visited. After several months of making contacts via phone and email, Judith traveled to China to meet some potential manufacturers. She brought two of her staff members along with her on the trip. She also asked Mei, one of the company's sales representatives in China, to join the group and act as an interpreter. Mei had joined the company's sales department in China two years ago. Because she gained a marketing degree in a Canadian university, Mei's English was excellent. The first stop on the trip would be with representatives of the Shunde Manufacturing (SDM) Company, a potential manufacturer for the company's line of dolls. After a long plane trip and a sleepless night at a hotel in Shanghai, Judith started the first day of work in China tired and slightly disoriented. Her team first met the company's president, Bo Chen, and seven other men from SDM for lunch. Judith was seated next to the company's president for the duration of the two-hour lunch, which included course after course of foods Judith had never seen or eaten before. Judith sampled most of the dishes but was clearly uncomfortable. During the meal, the company president asked Judith, "Ms. Carey, what are your impressions of China?" Judith replied, "Well, Bo, I don't really know too much. I'm not quite used to the air here, with all of the pollution. Of course, I've always known about the one-child policy, but not much else. Do you think the policy is fair?" Bo stated, "China and America must solve their problems in their own ways." Then, he talked about the final dish for the meal—a fish. He explained that ending the meal with the fish had special symbolism in China and signaled a prosperous future for their relationship. Near the end of lunch, Bo told Judith, "We'll meet for dinner and a reception later at 6 p.m. I've arranged a tour for you this afternoon. Several of our staff members will take you for a walk along the river, to some beautiful Chinese gardens, and to the Shanghai Museum." Judith was a bit dismayed. She wasn't really in the mood for touring. Rather, she wanted to get down to business, but she obliged for the afternoon tour. During the tour, Judith asked Mei, her interpreter, "What should I do this evening to make sure we can talk about business?" Mei replied, "Tonight, you should make friends with President Chen. Give him a nice toast in front of his employees. Enjoy the wonderful food. Tomorrow you can talk about business." That evening, Judith and her team were taken to a large private room at a restaurant. The SDM Company was now represented by more than 20 employees. Judith and Bo spent most of the dinner discussing family and professional experiences. Judith enjoyed the food, gave a toast mentioning "future cooperation" and thanking "President Chen for his hospitality," and even sang karaoke when invited. The next day, Judith arrived at the company's headquarters. She and her team discussed options for a partnership with SDM representatives for the duration of the day. At the end of the day, both parties agreed to continue their conversations in approximately one month. The first day of the visit is largely spent with lavish banquets and events. Which of the following cultural dimensions can best explain this situation? A-future orientation B-assertiveness C-egalitarianism and hierarchy D-individualism and collectivism
Answer:
The answer is D. individualism and collectivism
Explanation:
Individualism and collectivism looks at the relationship the individual has with others. In high individual ranking, individuality and individual rights are paramount within the society. Judith is from the US where society appreciates a more individualistic attitude and relatively loose bonds with others. On the other hand, Bo is from China where people are integrated from birth into strong cohesive in-groups and the extended family – grandparents, uncles and aunts – is protected in exchange for unquestioned loyalty.
Haag Corp.'s 2021 income statement showed pretax accounting income of $2,500,000. To compute the federal income tax liability, the following 2021 data are provided:
Income from exempt municipal bonds $ 100,000
Depreciation deducted for tax purposes in excess of depreciation deducted for financial statement purposes 200,000
Enacted corporate income tax rate 20%
Required:
Compute the amount that Haag should record for income tax payable.
Answer:
$440,000
Explanation:
The first is to calculate the taxable profits and taxable profit can be calculated as under:
Taxable Profit = Pre-Tax Accounting Profit - Tax allowable expenses not deducted + Tax disallowed expenses deducted previously - Tax disallowed Income added previously - Tax allowed income not added in accounting profits
Here
Pre-Tax Accounting Income is $2,500,000
Municipal Bond Income is the Tax Disallowed Income added previously to accounting profits and must be eliminated from it at $100,000
Depreciation for tax purposes which is in excess of the book depreciation allowed is $200,000 and is Tax allowed Expenses not deducted.
By putting the values, we have:
Taxable Profit = $2,500,000 - $200,000 - $100,000
Taxable Profit = $2,200,000
Now we will compute the income tax payable at 20%
Tax Payable = 20% * $2,200,000 = $440,000
Income tax payable is the compulsory charge to be paid by the individual or company earning incomes over the exempt slab rates. Tax payable is computed on the taxable income, which is computed by deducting the deductible expenses and incomes from the net profit earned during a particular financial period.
The amount of income tax payable by Haag is $440,000
Computation:
The taxable income and the income tax payable are shown in the image attached below.
The procedure to compute the tax liability is:
1. Determine the pre-tax accounting income that is given $2,500,000.
2. Deductions like tax allowable expenses, tax allowed incomes, etc. In this case, the deductions are the exempt income from municipal bonds and the deduction of depreciation amount as it was recorded in the financial statement.
3. The amount determined is taxable income over which the 20% income tax rate will be charged.
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What are some of the issues to consider in determining whether the Internet would provide your business with a competitive advantage
Answer:
relevancy, cost, and information
Explanation:
When determining whether the Internet would provide your business with a competitive advantage you need to consider relevancy, cost, and information. First would be how much extra cost will you incur in order to place your business on the internet. Secondly, you need to consider the importance of the internet to you business, such as what percentage of your customer population will be on the internet. And lastly, you need to consider how much information you actually need to acquire in order to successfully implement this course of action.
During the year, Belyk Paving Co. had sales of $2,485,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,349,000, $660,000, and $462,000, respectively. In addition, the company had an interest expense of $287,000 and a tax rate of 24 percent. The company paid out $412,000 in cash dividends. Assume that net capital spending was zero, no new investments were made in net working capital, and no new stock was issued during the year. (lgnore any tax loss or carryforward provision and assume interest expense is fully deductible.)
Calculate the firm's net new long-term debt added during the year. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Answer:
$888,000
Explanation:
In order to determine how much new debt was added, we must calculate cash flows:
first we need to determine net income:
sales ($2,485,000) - COGS ($1,349,000) - S&A expenses ($660,000) - depreciation expense ($462,000) = EBIT = $14,000
since EBIT is lower than interest expense ($14,000 ≤ $287,000), we can assume there was a loss. But the question tells us to ignore any tax losses. So net income = $14,000 - $287,000 = -$273,000
operating cash flow = net income + adjustments = -$273,000 + $462,000 = $189,000
there were not capital spending and no new investments made, so cash flow from investing activities = $0
so the net cash flow from assets = $189,000
net cash flow form assets = net cash flow from stockholders + net cash flow from liabilities
net cash flow from stockholders = common stock issued - dividends = $0 - $412,000 = -$412,000
$189,000 = -$412,000 + net cash flow from liabilities
$601,000 = net cash flow from liabilities
net cash flow from liabilities = net new long term debt - interest expense
$601,000 = net new long term debt - $287,000
net new long term debt = $601,000 + $287,000 = $888,000
ACME Inc. has decided on a 10for1 reverse stock split. If the firm currently has 40,000,000 shares outstanding, how many shares will be outstanding after the stock split?
Answer:
$4,000,000 Shares
Explanation:
Calculation for how many shares will be outstanding after the stock split
Using this formula
Outstanding Shares after stock split =Shares outstanding ÷Reverse stock split
Let plug in the formula
Outstanding Shares after stock split =$40,000,000÷10
Outstanding Shares after stock split =$4,000,000 Shares
Therefore the amount of shares that will be outstanding after the stock split will be $4,000,000
A portfolio consists of $15,200 in Stock M and $23,400 invested in Stock N. The expected return on these stocks is 8.90 percent and 12.50 percent, respectively. What is the expected return on the portfolio
Answer:
Portfolio return = 11.08%
Explanation:
The expected return on the portfolio is the weighted average return of all the different stocks making up the portfolio. The weight of the individual stock would be the relative amount invested in each stock as a proportion of the total fund invested.
The expected return can be determined as follows
Weighted of stock A= 15,200/(15200+23400)=0.39
Weight of stock B = 23.400/((15200+23400)= 0.61
Expected return on portfolio = (0.39 ×8.90% ) + (0.61*12.50%)= 11.08 %
Zhao Co. has fixed costs of $403,200. Its single product sells for $183 per unit, and variable costs are $120 per unit. If the company expects sales of 10,000 units, compute its margin of safety in dollars and as a percent of expected sales.
Answer:
Margin of safety in dollars = $658800
Margin of safety percentage = 0.36 or 36%
Explanation:
The margin of safety in dollars is the number of revenue that a business earns in excess of its break even level of revenue. Thus, the formula for the margin of safety in dollars is,
Margin of safety in dollars = Revenue at current sales level - Revenue at break even sales level
We must first determine the level of sales at the break even point.
The break even point in dollars can be calculated as follows,
Break even in dollars = Fixed cost / Contribution margin ratio
Where,
Contribution margin ratio = (Selling price per unit - Variable cost per unit) / Selling price per unit
Break even in dollars = 403200 / [(183 - 120) / 183]
Break even in dollars = $1171200
Margin of safety in dollars = (10000 * 183) - 1171200
Margin of safety in dollars = $658800
Break even point in units = 1171200 / 183 = 6400 units
Margin of safety as a percentage of expected sales is,
Margin of safety percentage = (10000 - 6400) / 10000
Margin of safety percentage = 0.36 or 36%
State the immediate effect of each of the following actions on M1 and M2: Instructions: If there is no change in M1 or M2, enter zero as your response. a. Barry writes his plumber a check for $200. The plumber takes the check to the bank, keeps $50 in cash, and deposits the remainder in his savings account. M1 declines by $ 0 . M2 does not change by $ 0 . b. Maureen deposits the $1,000 from her CD in a money market mutual fund. M1 does not change by $ 0 . M2 does not change by $ 0 . c. Sylvia withdraws $50 in cash from her savings account. M1 rises by $ 0 . M2 does not change by $ 0 .
Answer:
M1 is a measure of money that includes the most liquid of cash instruments such as physical cash, checkable deposits, and traveler's checks.
M2 is the next level in the money hierarchy and includes M1 along with less liquid instruments such as savings deposits, certificates of deposits, as well as money market funds.
a. Barry writes his plumber a check for $200. The plumber takes the check to the bank, keeps $50 in cash, and deposits the remainder in his savings account.
M1 declines by $150.
Barry's Checkable deposit was reduced by $200 and only $50 remained as cash with the plumber with the rest going to a savings account. that $50 is the only M1 measure left as savings do not fall under M1.
M2 does not change
Both M1 and savings fall under M2 so this does not change.
b. Maureen deposits the $1,000 from her CD in a money market mutual fund.
Both M1 and M2 do not change.
Neither CDs nor Money Market Mutual funds fall under M1 so it is not affected.
Both CDs and Money Market Mutual funds fall under M2 so it is not affected as well.
c. Sylvia withdraws $50 in cash from her savings account.
M1 rises by $50
Cash increased by $50 and cash is an M1 measure so M1 will increase by $50.
M2 does not change.
Both the Savings Account and M1 are part of M2 so M2 does not change.
The demand in a market for smartphones has increased, causing prices to
rise. What effect will this likely have on the supply of smartphones?
A. The supply curve will shift up according to the increased demand.
B. Supply will decrease, as always happens when price increases.
C. The supply point will increase by moving along the existing supply
curve, and the entire curve will shift upwards as well.
D. The supply point will increase by moving along the existing supply
curve, the curve itself will not shift.
Answer: D. The supply point will increase by moving along the existing supply curve, the curve itself will not shift.
The demand in a market for smartphones has increased, causing prices to The supply point will increase by moving along the existing supply curve, the curve itself will not shift. Hence, the correct option is D.
What is Supply curve?Supply curve is the curve which is a graphic representation of the relationship among the quantity of product and the price of the products, which the seller is willing to supply.
Supply curve on the right means the increase in the supply of the product in market.
So, the shift to the supply curve to the right for the smartphones, will result from increase in consumer income, as the income of the customer rises, will result in outwards shift (right) and when goods are normal goods.
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The company that you manage has invested $5 million in developing a new product, but the development is not quite finished. At a recent meeting, your salespeople report that the introduction of competing products has reduced the expected sales of your new product to $1.5 million. If it would cost $2 million to finish development and make the product, you go ahead and do so. The most you should pay to complete development is $_______million.
Answer:
You should pay "$3" million to complete the development.
Explanation:
The possibility you've already plunged $5 million is therefore no longer important to either calculation, although this money disappears. All counts now would be the small chance of gaining money. When you are investing around $1 million and are able to produce $3 million in funding, users earn $2 million in gross income, so clients will.You seem entitled to say that perhaps a gross of $3 million has indeed been wasted to the venture, and you really should not even have begun it. That would be real, however, if you ever don't invest about $1 million extra you apparently can't have any profits and total damages will have been $5 million.And therefore what counts has never been the overall income, but the incremental benefit that you will receive. In reality, you'd pay approximately $3 million to feel a sense of achievement, not much more, and towards the bottom, you won't increase income.
Prepare budgetary entries, using general ledger control accounts only, for each of the following unrelated situations: (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in whole dollars not in millions (i.e., 1,000,000 not 1.0).) Anticipated revenues are $11.8 million; anticipated expenditures and encumbrances are $8.0 million. Anticipated revenues are $8.0 million; anticipated expenditures and encumbrances are $9.4 million. Anticipated revenues are $9.4 million; anticipated transfers from other funds are $1.6 million; anticipated expenditures and encumbrances are $8.0 million; anticipated transfers to other funds are $0.7 million. Anticipated revenues are $8.6 million; anticipated transfers from other funds are $1.1 million; anticipated expenditures and encumbrances are $9.7 million; anticipated transfers to other funds are $1.0 million.
Answer:
Please see answer in explanatory column
Explanation:
Journal for Budgetary entries
a) Anticipated revenues are $11.8 million; anticipated expenditures and encumbrances are $8.0 million
Account Debit Credit
Estimated Revenue control $11,800,000
Appropriation control $8,000,000
Budgetary fund $3,800,000
Calculation
Budgetary fund = Estimated Revenue control $11,800,000-
Appropriation control $8,000,000 = $3,800,000
b)Anticipated revenues are $8.0 million; anticipated expenditures and encumbrances are $9.4 million.
Account Debit Credit
Estimated Revenue control $8,000,000
Budgetary fund $1,400,000
Appropriation control $9,400,000
Budgetary fund = Estimated Revenue control $8,000,000-
Appropriation control $9,400,000 = -$1,400,000 , therefore will be debited
c)Anticipated revenues are $9.4 million; anticipated transfers from other funds are $1.6 million; anticipated expenditures and encumbrances are $8.0 million; anticipated transfers to other funds are $0.7 million
Account Debit Credit
Estimated Revenue control $9,400,000
Estimated other finance source control$1,600,000
Appropraition control $8,000,000
Estimated other finance source control $700,000
Budgetary fund $2,300,000
Budgetary fund = Estimated Revenue control +Estimated other finance source control) -Appropriation control + Estimated other finance source control= $9,400,000 +$1,600,000)- $8,000,000 + 700,000 ) = 11,000,000 - $8,700,000 =$2,300,000
d)Anticipated revenues are $8.6 million; anticipated transfers from other funds are $1.1 million; anticipated expenditures and encumbrances are $9.7 million; anticipated transfers to other funds are $1.0 million.
Account Debit Credit
Estimated Revenue control $8,600,000
Estimated other finance source control$1,100,000
Budgetary fund $1,000,000
Appropraition control $9,700,000
Estimated other finance source control $1,000,000
Budgetary fund = Estimated Revenue control +Estimated other finance source control) -Appropriation control + Estimated other finance source control= $8,600,000 +$1,100,000)- $9,700,000 + 1,000,000 ) = 9,700,000 - $10,700,000 =-$1,000,000 so will be debited
Aloha Inc. has 8 percent coupon bonds on the market that have 11 years left to maturity. If the YTM on these bonds is 10.22 percent, what is the current bond price
Answer:
The answer is $85.73
Explanation:
N(Number of periods) = 11years
I/Y(Yield to maturity) = 10.22 percent
PV(present value or market price) = ?
PMT( coupon payment) = $8
FV( Future value or par value) = $10
We are using a Financial calculator for this.
N= 11; I/Y = 10.22 ; PMT = 8; FV= $100; CPT PV= -85.73
Therefore, the market price of the bond is $85.73
The financial statements of Sunland Manufacturing Company report net sales of $1226400 and accounts receivable of $57000 and $111000 at the beginning and end of the year, respectively. What is the average collection period for accounts receivable in days
Answer:
2.8 billon
Explanation:
cheating