Answer:
Book value (2020)= $29,700
Explanation:
Giving the following information:
Total purchase price= 40,600 +´1,300= $41,900
Useful life= 6 years
Residual value= $5,300
To determine which option is incorrect, we are going to calculate the annual depreciation, book value, and accumulated depreciation:
Annual depreciation= (Total purchase price - salvage value)/estimated life (years)
Annual depreciation= (41,900 - 5,300) / 6
Annual depreciation= $6,100
Accumulated depreciation (2021)= 6,100*3= $18,300
Book value (2019)= 41,900 - 6,100= $35,800
Book value (2020)= 35,800 - 6,100= $29,700
The following data are taken from the financial statements of Crane Company.
2022 2021 Accounts receivable (net), end of year $ 567,900 $ 555,000 Net sales on account 4,831,000 4,179,000 Terms for all sales are 1/10, n/45
1) Compute for each year the accounts receivable turnover. At the end of 2015, accounts receivable was $511,500. (Round answers to 1 decimal place, e.g. 12.5.)
2) Compute for each year the average collection period. (Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation.)
Answer and Explanation:
The computation is shown below;
(1)
As we know that
The receivables turnover = Net credit sales ÷ Average account receivable
For the year 2017
Receivables turnover = $4,831,000 ÷ $561,450 = 8.60 times
for the year 2016:
Receivables turnover = $4,179,000 ÷ $533,250 = 7.84 times
Average net AR = (Beginning AR + Ending AR) ÷ 2
2017 = ($567,900 + $555,000) ÷ 2 = $561,450
2016 = ($555,000 + $511,500) ÷ 2 = $533,250
(2)
The average collection period = 365 days ÷ Receivables turnover
For 2017:
Average collection period = 365 ÷ 8.60 = 42.44 days
For 2016
Average collection period = 365 ÷ 7.84 = 46.56 days
Suppose a profit-maximizing monopoly is able to employ group price discrimination. The marginal cost of providing the good is constant and the same in both markets. The marginal revenue the firm earns on the last unit sold in the market with the lower price will be:_________
Answer:
The description as per the given question is described in the below section.
Explanation:
The investor receives upon that final unit offered on the organization at the maximum bidder, equivalent to the average income.⇒ [tex]MR=MC[/tex]
Whenever such monopoly generates a lesser volume, [tex]MR > MC[/tex] could generate greater margins at these production additions to lowering production.Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $15,700 and will produce cash flows as follows:
End of Year Investment
A B
1 $8,000 $0
2 8,000 0
3 8,000 24,000
The present value factors of $1 each year at 15% are: ________
a. 1
b. 0.8696
c. 2
d. 0.7561
e. 0.6575
Answer:
e
Explanation:
the present value factor is the discount rate used to determine the present value of the investment
pv factor = 1 / (1 + r)^n
1 / 1.15^3 = 0.6575
The specific-factors model is often referred to as the short-run model. Why is this the case and how does it relate to the marginal product of labor (MPL) in each sector and the production possibilities frontier (PPF)?
Answer:
A short run model is one in which particular means of production such as land, are fixed and cannot be moved between sectors or businesses. There is unrestricted labour movement amongst these different sectors, therefore each market's marginal product of labour is identical. As a result, an economy's overall workforce level is optimal.
Because greater and greater labour inputs are introduced, there are decreasing returns to scale, as well as the marginal product of labour continues to fall. As a result, the PPF curve is indeed concave and slants downward. To achieve full employment, the country can export or import at any time. The United States, for example, both produces and imports oil.
Using Present Value Concepts for Decision Making
You have just won the state lottery and have two choices for collecting your winnings. You can collect $105,000 today or receive $20,700 at the end of each year for the next seven years. A financial analyst has told you that you can earn 9% on your investments.
Required:
1. Calculate the present value of both the options (FV of $1, PV of $1, FVA of $1, and PVA of $1).
2. Which alternative should you select?
Answer:
1. Option 1: Present value of cash winnings collected today = $105,000 * 1 = $105,000
Option 2: Present value of annual cash collections = $20,700 * 5.033 = $104,183
2. Option 1 should be selected.
Explanation:
a) Data and Calculations:
Cash winnings collected today = $105,000
Annual cash collection = $20,700
Discount factor = 9%
Period of annual cash flows = 7 years
Present Value Annuity Factor at 9% for 7 years = 5.033
Present value of cash winnings collected today = $105,000 * 1 = $105,000
Present value of annual cash collections = $20,700 * 5.033 = $104,183
NPV = ($817)
b) Option 1 is worth more in present value terms than option 2. The present value consideration is all about taking into account the time value of money. Using a present value annuity factor of 5.033, the annual cash inflows are determined to their present value to be $104,183. This is less than the $105,000 cash collected today in bulk.
A machine with a book value of $250,400 has an estimated six-year life. A proposal is offered to sell the old machine for $215,300 and replace it with a new machine at a cost of $283,100. The new machine has a six-year life with no residual value. The new machine would reduce annual direct labor costs from $50,900 to $40,700.
Required:
a. Prepare a differential analysis dated February 18 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2).
b. Should the company continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)?
Answer:
A.Continue with Old Machine (Alt. 1) $305,400
Replace Old Machine (Alt. 2) $312,000
Differential effect on net income (Alt. 2) $6,600
B. Continue with the old machine (Alternative 1
Explanation:
a. Preparation of a differential analysis dated February 18 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2).
DIFFERENTIAL ANALYSIS
Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) February 18
Continue with Old Machine (Alt. 1) Replace Old Machine (Alt. 2) Differential effect on net income (Alt. 2)
Revenues:
Proceeds from sale of old machine $0 $215,300 $215,300
Costs:
Purchase price $0 –$283,100 –$283,100
Direct labor (6 years) –$305,400 -$244,200 $61,200
($50,900*6years=$305,400)
($40,700*6years=$244,200)
Income (Loss) –$305,400 –$312,000 –$6,600
B. Based on the above differential analysis
The company should continue with the old machine (Alternative 1) .
Which individuals is exempt from licensure under Florida statute 475?
Answer:
Explanation:
The plumber must first be licensed under F.S. 475, Part II. Persons appointed by a court of law to perform real estate services are exempt from real estate licensing requirements when employed by government agencies, railroads, rural electric cooperatives, or public utilities.
The standard cost of Product B manufactured by Pharrell Company Includes 3.7 units of direct materials at $6.8 per unit. During June, 26, 600 units of direct materials are purchased at a cost of $6.70 per unit, and 26, 600 units of direct materials are used to produce 7, 100 units of Product B.
(a) Compute the total materials variance and the price and quantity variances.
Total materials variance $
Materials price variance $
Materials quantity variance $
(b) Compute the total materials variance and the price and quantity variances, assuming the purchase price is $6.90 and the quantity purchased and used is 27,000 units.
Total materials variance $
Materials price variance $
Materials quantity variance %
Answer and Explanation:
The computation is shown below;
(a)
Total materials variance:
= ( AQ × AP ) - ( SQ × SP )
= (26600 × $6.70) - (26270 × $6.8)
= $178220 - $178636
= $416 F
Here
= 7100 × 3.7
=26,270
Materials price variance:
= ( AQ × AP ) - ( AQ × SP )
= (26600 × $6.70) - (26600 × $6.8)
= $178220 - $180,880
= $2660 F
Materials quantity variance:
= ( AQ × SP ) - ( SQ × SP )
= (26600 × $6.8) - (26270 × $6.8)
= $180,880- $178636
= $2244 U
(b)
(a) Total materials variance:
= ( AQ × AP ) - ( SQ × SP )
= (27000 × $6.90) - (26270 × $6.8)
= $186300 - $178636
= $7664 U
Here
= 7100 × 3.7
=26,270
Materials price variance:
= ( AQ × AP ) - ( AQ × SP )
= (27000 × $6.90) - (27000 × $6.8)
= $186300 - $183600
= $2700 U
Materials quantity variance:
= ( AQ × SP ) - ( SQ × SP )
= (27000 × $6.8) - (26270 × $6.8)
= $180,880- $178636
= $4964 U
When making a big decision, there's a six-step process that can help you.
True
False
Answer:True
Explanation:
Mustafa manufacturing company began operations on january 1. During the year, it started and completed 3, 000 units of product. The financial statements are prepared in accordance with GAAP. The company incurred the following costs:
Raw materials purchased and used—$6,200.
Wages of production workers—$7,400.
Salaries of administrative and sales personnel—$3,000.
Depreciation on manufacturing equipment—$4,400.
Depreciation on administrative equipment—$2,200.
Required
a. Determine the total product cost for the year.
b. Determine the total cost of the ending inventory.
c. Determine the total of cost of goods sold.
Answer and Explanation:
The computation is shown below;
a. The total product cost is
Raw materials purchased and used $6,200
Wages of production workers $7,400
Depreciation on manufacturing equipment $4,400
Total Product Cost $18,000
b. The total cost of the Inventory is
Units Completed = 3,000 units
Units Sold = 2,400 units
SO, the Units in ending inventory units is 600 units
Now the Total cost of the Inventory is
= $18,000 × [600 ÷ 3,000 ]
= $3600
c. The total cost of goods sold is
= $18,000 × [2,400 ÷ 3,000 ]
= $14,400
Which of the following is true of resumes?
A personal cover letter should be included with a resume.
A resume is not necessary if you completed an application.
The formats of electronic and hard copy resumes are the same.
An objective tells an employer what the applicant learned in school.
Answer:
Hello! Your answer would be, BELOW
Explanation:
Job objective should be listed last
Use action words when describing your experience.
These are the statements that are true about resumes. Resumes should include job objectives. However, these should be listed at the end of the resume. A second thing to remember when drafting a resume is that it is important to use action words to describe your experiences. This is because the statements become more interesting, and because this structure will highlight the role that you played in each instance.
Hope I helped! Brainiest plz! Hope you make an 100% and have a wonderful day! -Amelia♥
Keynesian economics:__________
a. focuses on the long run rather than the short run.
b. stresses the importance of savings to increase investment and long-run aggregate supply.
c. emphasizes that the economy is inherently stable and self-correcting.
d. maintains that prices and wages are fully flexible.
e. focuses on spending, or aggregate demand, as the fundamental factor in the economy.
Answer:
The correct answer is the option E: focuses on spending, or aggregate demand, as the fundamental factor in the economy.
Explanation:
To begin with, in the economics field the Keynesian theory was developed by John Keynes after the Great Depression in 1929 due to the fact that by then the economics area was conducted by neoliberal economists and it lead to the situation in which they found themself then so Keynes proposed the intervention of the government as more important for the economy and focusing primarily in the spending of this one with the purpose of creating more jobs and therefore the people will increase the demand because they would have money now.
One of the positive effects that government regulation has or business is that many of the laws are intended to
business.
Select an answer from the options below.
A
restrict
B
protect
С
defend
D
conserve
which research aims at finding a solution for an immediate problem facing a society or an industry/business organisation
Answer:
Applied research
Explanation:
Applied research can be regarded as methodology that is used in solving a specific as well as practical issue that has effect on an individual or group.
This particular scientific method of study and research could be used in business, education, as well as medicine in order to create solutions which may improve health as well as solving scientific problems to development of new technology.
Applied research which is a research methodology used in creation of practical solutions for specific problems. It should be noted that Applied research aims at finding a solution for an immediate problem facing a society or an industry/business organisation
Accounts payable increase $9,000
Accounts receivable increase 4,000
Salaries payable decrease 3,000
Amortization expense 6,000
Cash balance, January 1 22.000
Cash balance, December 31 15,000
Cash paid as dividends 29,000
Cash paid to purchase land 90,000
Cash paid to retire bonds payable at par 60,000
Cash received from issuance of common stock 35,000
Cash received from sale of equipment 17,000
Depreciation expense 29,000
Gain on sale of equipment 4,000
Inventory decrease 13,000
Net income 76,000
Prepaid expenses increase 2,000
Cash Flow statement - indirect method
Cash Flow
Net Income 76,000.00
Gain on Sale of Equipment $(4,000.00)
Depreciation 29,000.00
Amortization Expense 6,000.00 $31,000.00
Adjustments
Decrease in inventory $13,000.00
Gain On sale of equipment (4,000.00)
Decrease In accrued Liability (3,000.00)
Increase in prepaid expenses (2.000.00)
Increase in Accounts Payable 9,000.00 13,000.00
120,000.00
Determine which of the above affects the Investing Activities (IA) and which affects the Financing Activities (FA). Note: Insert IA or FA next to the information above, or fill in the information below.
Answer:
a. The items that affect Investing Activities (IA) are as follows:
Cash paid to purchase land 90,000
Cash received from sale of equipment 17,000
b. The items that affect Financing Activities (FA) are as follows:
Cash paid as dividends 29,000
Cash paid to retire bonds payable at par 60,000
Cash received from issuance of common stock 35,000
Explanation:
Using the items that affect the Investing Activities (IA) and the Financing Activities (FA) in the answer above, the indirect cash flow statements can be completed as follows:
Cash Flow statement - indirect method
For the Year Ended December 31, ...
Details $ $
Net Income 76,000.00
Gain on Sale of Equipment (4,000.00)
Depreciation 29,000.00
Amortization Expense 6,000.00
Adjustments
Decrease in inventory 13,000.00
Gain On sale of equipment (4,000.00)
Decrease In accrued Liability (3,000.00)
Increase in prepaid expenses (2.000.00)
Increase in Accounts Payable 9,000.00
Cash flows from operating activities 120,000.00
Investing Activities (IA)
Cash paid to purchase land (90,000.00)
Cash received from sale of equipment 17,000.00
Cash flows from investing activities 73,000.00
Financing Activities (FA)
Cash paid as dividends (29,000.00)
Cash paid to retire bonds payable at par (60,000.00)
Cash from common stock issued 35,000.00
Cash flows from financing activities 54,000.00
Net cash outflows for the year (7,000.00)
Cash balance, January 1 22,000.00
Cash balance, December 31 15,000.00
You obtain the following estimates for an AR(2) model of some returns data
yt = 0.803yt−1 + 0.682yt−2 + ut
Where ut is a white noise error process. By examining the characteristic equation, check the estimated model for stationarity.
Answer:
AR(2) model is not stationary
Explanation:
Given model : Yt = 0.803yt-1 + 0.682yt-2 + ut ---- ( 1 )
ut = noise error process
Aim : Check estimated model for stationarity
step 1 : represent the estimated polynomial of the model ( where: ut ∪ N(o,б^2 ) rewrite equation 1
Yt - 0.803yt-1 - 0.682yt-2 = ut ------- ( 2 )
hence the polynomial can be represented as :
( 1 - 0.803B - 0.682B^2 )Yt = ut
Characteristic of the obtained polynomial can be represented as ;
1 - 0.803λ - 0.682λ^2 - 1 = 0
attached below is the remaining part of the solution
Merritt Equipment Company sells computers for $2,130 each and also gives each customer a 2-year warranty that requires the company to perform periodic services and to replace defective parts. During 2017, the company sold 1,100 computers. Based on past experience, the company has estimated the total 2-year warranty costs as $60 for parts and $75 for labor per computer. Assume sales all occur December 31, 2017). In 2015, Merritt incurred actual warranty costs relative to 2017 computer sales of $11.600 for parts and $17.400 for labor.
1, Under the expense warranty proach, give the entries to reflect the above transactions (accrual method) for 2017 and 2018.
2. The transactions of part (a) create what balance under current liabilities in the 2017 balance sheet?
(ASAP!!!!)
Go over the bank statement and answer the questions in detail. Use information
from the statement to support your answers.
1. This bank statement is most likely for what kind of account? Provide at least two
pieces of evidence from the statement that explain why.
Answer:
1.credit card; credit line and payment due date are shown
2.about $2243; credit available less the pending transaction
3.use more than one account; ask for a credit line increase
4.a finance charge is added; credit rating will be negatively impacted
Explanation:
1.
Deposit accounts do not have a "Payment Due Date", so this indicates a loan account of some sort. The listing of transactions with different descriptions suggests the account is used to pay a variety of creditors. The lines "credit line" and "credit available" further suggest this is a credit-card or line-of-credit type of account.
2.
The "total credit available' is a good starting indication of the additional amount the account owner can spend. There are some caveats. One is that there is a pending transaction, which will reduce the available limit when it is paid. Another is that using the maximum available credit will negatively impact the owner's credit score.
That score is maximized if the percentage of available credit used is below some amount (about 10%). A 30% utilization rate is a suggested maximum for maintaining a good credit score.
3.
Several options may be open:
the medical biller may allow payment over time
this account owner may have enough for the payment in all accounts together. (They payment may be split among different available accounts.)
this account owner can ask the credit line be raised
4.
Failure to make a payment will cause ...
a finance charge to be added to the account
(possibly) a late-payment charge to be added to the account
a "failure to pay as agreed" notice to credit reporting agencies
available credit to be reduced (possibly to zero)
The details of the consequences of a missed payment are in the account terms and conditions provided by the bank.
You have been asked to review the December 31, 2021, balance sheet for Champion Cleaning. After completing your review, you list the following three items for discussion with your superior: An investment of $30,000 is included in current assets. Management has indicated that it has no intention of liquidating the investment in 2022. A $100,000 note payable is listed as a long-term liability, but you have determined that the note is due in 10 equal annual installments with the first installment due on March 31, 2022. Deferred revenue of $60,000 is included as a current liability even though only two-thirds will be recognized as revenue in 2022, and the other one-third in 2023.
Required:
Determine the appropriate classification of each of these items.
Answer:
Champion Cleaning
Appropriate Classifications:
Long-term assets:
Investment of $30,000
Current liabilities:
Short-term note payable $10,000
Short-term deferred revenue $40,000
Long-term liabilities:
Long-term note payable $90,000
Long-term deferred revenue $20,000
Explanation:
a) Data and Analysis:
Investment of $30,000 = long-term asset
Note payable:
Short-term note payable = $10,000 ($100,000/10)
Long-term note payable = $90,000 ($100,000/10 * 9)
Deferred Revenue:
Short-term deferred revenue = $40,000 ($60,000 * 2/3)
Long-term deferred revenue = $20,000 ($60,000 * 1/3)
do/your/assignment/did/you?
Answer:
Did you do your assignment?
This is your answer
Answer:
I did mine did you?
Explanation:
Yerbury Corp. manufactures construction equipment. Journalize the entries to record the following selected equity investment transactions completed by Yerbury during a recent year. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar.
Feb. 2 Purchased for cash 5,300 shares of Wong Inc. stock for $20 per share plus a $110 brokerage commission.
Mar. 6 Received dividends of $0.30 per share on Wong Inc. stock.
June 7 Purchased 2,000 shares of Wong Inc. stock for $26 per share plus a $125 brokerage commission.
July 26 Sold 6,000 shares of Wong Inc. stock for $35 per share less a $100 brokerage commission. Yerbury assumes that the first investments purchased are the first investments sold.
Sept. 25 Received dividends of $0.40 per share on Wong Inc. stock.
Answer:
Yerbury Corp.
Journal Entries:
Feb. 2 Debit Investment in Wong Inc. $106,110
Credit Cash $106,110
To record the purchase of 5,300 shares of Wong Inc. stock for $20 per share plus a $110 brokerage commission.
Mar. 6 Debit Cash $1,590
Credit Dividend Revenue $1,590
To record the receipt of dividends of $0.30 per 5,300 shares on Wong Inc. stock.
June 7 Debit Investment in Wong Inc. $52,125
Credit Cash $52,125
To record the purchase of 2,000 shares of Wong Inc. stock for $26 per share plus a $125 brokerage commission.
July 26 Debit Cash $210,000
Credit Investment in Wong Inc. $124,354
Credit Gain from Investment in Wong Inc. $85,646
To record the sale of 6,000 shares of Wong Inc. stock for $35 per share less a $100 brokerage commission.
Sept. 25 Debit Cash $ 520
Credit Dividends revenue $ 520
To record the receipt of dividends of $0.40 per 1,300 shares on Wong Inc. stock.
Explanation:
a) Data and Analysis:
Feb. 2 Investment in Wong Inc. $106,110 Cash $106,110
5,300 shares of Wong Inc. stock for $20 per share plus a $110 brokerage commission.
Mar. 6 Cash $1,590 Dividend Revenue $1,590
dividends of $0.30 per share on Wong Inc. stock.
June 7 Investment in Wong Inc. $52,125 Cash $52,125
2,000 shares of Wong Inc. stock for $26 per share plus a $125 brokerage commission.
July 26 Cash $210,000 Investment in Wong Inc. $124,354 Gain from Investment in Wong Inc. $85,646
6,000 shares of Wong Inc. stock for $35 per share less a $100 brokerage commission. Yerbury assumes that the first investments purchased are the first investments sold.
Sept. 25 Cash $ 520 Dividends revenue $ 520 dividends of $0.40 per 1,300 shares on Wong Inc. stock.
Tiger, Inc., a calendar year S corporation, is owned equally by four shareholders: Ann, Becky, Chris, and David. Tiger owns investment land that was purchased for $160,000 four years ago. On September 14 of the current year when the land is worth $240,000, it is distributed to David. Assume that David's basis in his S corporation stock is $270,000 on the distribution date.
Required:
Discuss any Federal income tax ramifications.
Answer:
Capital gain $80,000
Shareholder $20,000
David Basis $50,000
Explanation:
Calculation to Discuss any Federal income tax ramifications
Calculation to discuss the CORPORATE LEVEL, capital gain Federal income tax ramifications
Using this formula
Capital gain =Land Worth - Purchased value of land
Let plug in the formula
Capital gain= $240,000 - $160,000
Capital gain= $80,000
Therefore CORPORATE LEVEL, capital gain Federal income tax ramifications will be $80,000
SHAREHOLDERS
Based on the information given we have 4 shareholders which means that the amount each shareholder held will be:
Shareholder= $80,000 ÷ 4
Shareholder= $20,000
DAVID BASIS
Based on the information given David Basis in S corporation will be calculated as:
David Basis= $270,000 - $240,000 + $20,000
David Basis= $50,000
Therefore David Basis in S corporation will be $50,000
Raposa, Inc., produces a special line of plastic toy racing cars. Raposa, Inc., produces the cars in batches. To manufacture a batch of the cars, Raposa, Inc., must set up the machines and molds. Setup costs are batch-level costs because they are associated with batches rather than individual units of products. A separate Setup Department is responsible for setting up machines and molds for different styles of car.
Setup overhead costs consist of some costs that are variable and some costs that are fixed with respect to the number of setup-hours. The following information pertains to June 2015:
Actual amount Static-budget Amounts
Amounts Units produced and sold 15,700 11,950
Batch size (number of units per batch) 325 265
Setup-hours per batch 3 4.25
Variable overhead cost per setup-hour $48 $45
Total fixed setup overhead costs $11,310 $9,010
Calculate the efficiency variance for variable overhead setup costs. (Round all intermediary calculations two decimal places and your final answer to the nearest whole number.)
a. $435 unfavorable
b. $4,810 favorable
c. $4,810 unfavorable
d. $435 favorable
Answer:
b. $4,810 favorable
Explanation:
Efficiency variance for variable overhead setup cost:
A. ((Actual units/Budget batch size)*Budget setup hours) * Budgeted overhead cost) = (((15700/265)*4.25)*$45 = $11,330.66
B . ((Actual units/Actual batch size)*Budget setup hours) * Budgeted overhead cost) = (((15700/325)*3)*$45 = $6,521.53
Efficiency variance for variable overhead setup cost = A - B
Efficiency variance for variable overhead setup cost = $11,330.66 - $6,521.53
Efficiency variance for variable overhead setup cost = $4.809.13 Favorable
Write about why it is important for world leaders to make just decisions for their people and to treat neighboring countries with respect.
Answer: Approaches to authority and decision making are not the only ways in which cultures differ, but they are arguably the most important in the leadership context. ... (For a more general treatment of cultural differences, take a look at my May 2014 ... with companies in those countries, you might have noticed that a lot of people ...
Explanation:
3. Combine terms: 12a + 26b -4b - 16a. (a) 4a + 22b, (b) -28a + 30b, (c)-4a + 22b, (d) 28a + 30b. Solution: 12a + 265 AL
Answer:
c. -4a+22b
Explanation:
12a+26b-4b-16a=-4a+22b
Hope the picture help
The Five & Dime store has a cost of equity of 15.8%, a pretax cost of 7.7%, and a tax rate of 35%. What is the firm's weighted average cost of capital if the debt-equity ratio is 0.40?
a. 10.18
b. 11.72
c. 12.72
d. 13.49
e. 14.93
Answer: 12.72%
Explanation:
The firm's weighted average cost of capital if the debt-equity ratio is 0.40 will be calculated thus:
= (1 /1+debt equity ratio)(cost of equity) + (Debt Equity ratio/1 + Debt Equity ratio)(Pre-tax cost)(1 - Tax rate)
=(1/1.40)(0.158) + (0.40/1.40)(0.077)(1 - 0.35)
= 12.72%
The firm's weighted average cost of capital is 12.72%
Gard Inc. has compiled the following information related to its five products. Costs of disposal are estimated to be 10% of selling price, and gross profit is estimated to be 25% of the selling price. Determine the value of inventory applying the lower-of-cost-or-market rule to each individual inventory item.
Answer:
Item Inventory at the lower-of-cost-or-market
#1 $214.50
#2 $240.00
#3 $266.50
#4 $315.00
#5 $422.50
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question. See attached pdf file for the complete question.
Also note: See the attached excel file for the determination of the value of inventory by applying the lower-of-cost-or-market rule.
From the attached excel file, we have:
Item Inventory at the lower-of-cost-or-market
#1 $214.50
#2 $240.00
#3 $266.50
#4 $315.00
#5 $422.50
Match the accounting terms with the corresponding definitions.
Accounting term
1. Specific identification
2. Materiality concept
3. Last-in, first-out (LIFO)
4. Conservatism
5. Consistency principle
6. Weighted-average
7. Disclosure principle
8. First-in, first-out (FIFO)
Definitions
A. Treats the oldest inventory purchases as the first units sold.
B. Requires that a company report enough information for outsiders to make knowledgeable decisions.
C. Identifies exactly which inventory item was sold. Usually used for higher cost inventory.
D. Calculates a weighted-average cost based on the cost of goods available for sale and the number of units available.
E. Principle whose foundation is to exercise caution in reporting financial statement items.
F. Treats the most recent/newest purchases as the first units sold.
G. Businesses should use the same accounting methods from period to period.
H. Principle that states significant items must conform to GAAP.
Answer:
Matching Accounting Terms with Corresponding Definitions:
Accounting Terms Definitions:
1. Specific identification C.
2. Materiality concept H.
3. Last-in, first-out (LIFO) F.
4. Conservatism E.
5. Consistency principle G.
6. Weighted-average D.
7. Disclosure principle B.
8. First-in, first-out (FIFO) A.
Explanation:
Definitions
A. FIFO: Treats the oldest inventory purchases as the first units sold.
B. Disclosure principle: Requires that a company report enough information for outsiders to make knowledgeable decisions.
C. Specific identification: Identifies exactly which inventory item was sold. Usually used for higher cost inventory.
D. Weighted-average: Calculates a weighted-average cost based on the cost of goods available for sale and the number of units available.
E. Conservatism: Principle whose foundation is to exercise caution in reporting financial statement items.
F. LIFO: Treats the most recent/newest purchases as the first units sold.
G. Consistency Principle: Businesses should use the same accounting methods from period to period.
H. Materiality Concept: Principle that states significant items must conform to GAAP.
Which types of post secondary education are examples of traditional academic education? Check all that apply
A. Associate Degree
B. Apprenticeship
C. Bachelor’s Degree
D. Technical School Degree
Miller owns a personal residence witha fair market value of $308,000 and an outstanding first mortgage of $246,400. Miller gets a secnd mortage on the residence and in return borrows $15,400 to purchase new jet skis. Interest on the $___________ of the first and second mortgage is treated as qualified residence indebtedness.
Answer: $246,400
Explanation:
Qualified residence indebtedness refers to the mortgage that's taken to purchase or improve on one's main home.
Based on the information given above, the on the $246,400 of the first and second mortgage is treated as qualified residence indebtedness.