Answer:
$291,000
Explanation:
First, we need to calculate the weighted average expenditure. the Weighted average expenditure is calculated and attached with the answer in PDF format please find it.
Now calculate the Average interest rate on General debt
Average interest rate on General debt = [ ( $7,000,000 x 14% ) + ( $3,000,000 x 9% ) ] / ( $7,000,000 + $3,000,000 ) = [ $980,000 + $270,000 ] / $10,000,000 = $1,250,000 / $10,000,000 = 0.125 = 12.5%
Now the specific loan of $2,350,000 is utilised and the remianing value of expenditure is $636,000 ($2,986,000 - $2,350,000) fromgeneral debt is utilized for the costruction purpose. The interest on both loan should be capitalised.
Interest capitalized = ( $2,350,000 x 9% ) + ( $636,000 x 12.5% ) = $211,500 + $79,500 = $291,000
You own two bonds. Both bonds pay annual interest, have 6 percent annual coupons, $1,000 face values, and currently have 6 percent yields to maturity. Bond A has 12 years to maturity and Bond B has 4 years to maturity. If the market rate of interest rises unexpectedly to 7 percent, Bond _____ will be the most volatile with a price decrease of _____ percent.
Answer:
Bond A is most volatile and 7.94%
Explanation:
The computation is shown below;
Particulars Bond A Bond B
Interest ($1,000 × 6%) $60 $60
Period 12 4
PVAF at 7 for 12 years 7.942886
PVAF at 7% for 4 years 3.387211
PVF at 7% for 12 years 0.444012
PVF at 7% for 4 years 0.762895
The present value of interest $476.56
($60 × 7.942686)
The present value of interest $203.2327
($60 × 3.387211)
Present value of fair value $444.012
($1,000 × 0.444012)
Present value of fair value $762.8952
($1,000 × 0.762895)
Present value $920.57 $966.1279
The decrease in percentage is
= ($1,000 - $920.57) ÷ $1,000
= 7.94%
Bond A is most volatile
The Payback Period Rule states that a company will accept a project if: Multiple Choice The calculated payback is less than three years for all projects. The calculated payback is less than a pre-specified number of years. We can recover the costs in a reasonable amount of time. The project stays within budget. The project increases shareholder value
Answer:
The calculated payback is less than a pre-specified number of years.
Explanation:
Project management can be defined as the process of designing, planning, developing, leading and execution of a project plan or activities using a set of skills, tools, knowledge, techniques and experience to achieve the set goals and objectives of creating a unique product or service.
Generally, projects are considered to be temporary because they usually have a start-time and an end-time to complete, execute or implement the project plan.
The net present value (NPV) of a project can be defined as the difference between present value of cash-inflow into a project and that of cash-outflow over a specific period of time. Thus, it is simply the value of all cash-flows for a project with respect to its life span.
The Payback Period Rule states that a company will accept a project if the calculated payback is less than a pre-specified number of years.
Additionally, investors and project managers are advised to only invest in projects that are having a positive net present value that is greater than or equal to zero.
Which of the following is not a characteristic of advances in order pick technology
Answer:
I don't see an attachment
Explanation:
You should make another question with the picture
Wilcox Corporation reported the following results for its first three years of operation: 2020 income (before income taxes): $300,000 2021 loss (before income taxes): $(2,700,000) 2022 income (before income taxes): $3,000,000 There were no permanent or temporary differences during these three years. Assume a corporate tax rate of 20% for 2020 and 2021, and 30% for 2022. Assuming that Wilcox elects to use the carryforward provision and not the carryback provision, what income (loss) is reported in 2021
Answer:
$1,890,000
Explanation:
Calculation to determine what income (loss) is reported in 2021
2021 Reported Income loss=[$2,700,000-($2,700,000 × 30%)]
2021 Reported Income loss=($2,700,000-$810,000)
2021 Reported Income loss=$1,890,000
Therefore the income (loss) that is reported in 2021 will be $1,890,000
The following stockholders' equity accounts arranged alphabetically are in the ledger of Wildhorse Co. at December 31, 2020.
Common Stock ($12 stated value) $1,776,000
Paid-in Capital from Treasury Stock 6,700
Paid-in Capital in Excess of Par-Preferred Stock 48,700
Paid-in Capital in Excess of Stated Value-Common Stock 659,000
Preferred Stock (8%, $101 par, noncumulative) 414,100
Retained Earnings 782,000
Treasury Stock-Common (7,900 shares) 102,700
Required:
Prepare a stockholders' equity section at December 31, 2020.
Answer:
Wildhorse Co.
The stockholders' equity section of the Balance Sheet at December 31, 2020
Preferred Stock (8%, $101 par, noncumulative) 414,100
Paid-in Capital in Excess of Par-Preferred Stock 48,700
Common Stock ($12 stated value) 1,776,000
Paid-in Capital in Excess of Stated Value-Common Stock 659,000
Treasury Stock-Common (7,900 shares) (96,000)
Retained Earnings 782,000
Total stockholders' equity $3,583,800
Explanation:
a) Data:
Preferred Stock (8%, $101 par, noncumulative) 414,100
Paid-in Capital in Excess of Par-Preferred Stock 48,700
Common Stock ($12 stated value) 1,776,000
Paid-in Capital in Excess of Stated Value-Common Stock 659,000
Treasury Stock-Common (7,900 shares) (96,000)
Retained Earnings 782,000
Total stockholders' equity $3,583,800
b) The major components of the stockholders' equity include the stock accounts, paid-in capital, retained earnings, and the treasury stock. The stockholders' equity represents the difference between the assets and the liabilities of Wildhorse Co. The equity section shows the capital contributions of Wildhorse stockholders and the accumulated retained profits.
The following information relates to Mountain Transportation for its first year of operations (data in millions of dollars): Pretax accounting income: $ 300 Pretax accounting income included: Overweight fines (not deductible for tax purposes) 8 Depreciation expense 80 Depreciation in the tax return using MACRS: 160 The applicable tax rate is 40%. There are no other temporary or permanent differences. Mountain's net income ($ in millions) is:
Answer:
the net income is $176.80 millions
Explanation:
The computation of the net income is shown below"
Pre tax accounting income $300
Less: income tax expense
tax payable (($300 + $8 - $80) × 40%) -$91.2
Deferred tax liability ($80 × 0.40) -$32
net income $176.80
Hence, the net income is $176.80 millions
We simply deduct the income tax expense from the pre tax accounting income so that the net income could come
When the Federal reserve uses contractionary monetary policy to reduce inflation, it A. sells treasury securities increasing interest rates, leading to a stronger dollar that lowers net exports in an open economy. B. buys treasury securities increasing interest rates, leading to a weaker dollar that increases net exports in an open economy. C. buys treasury securities decreasing interest rates, leading to a weaker dollar that lowers consumption of durables in a closed economy. D. sells treasury securities decreasing interest rates, leading to a stronger dollar that lowers domestic investment in a closed economy.
Answer:
A. sells treasury securities increasing interest rates, leading to a stronger dollar that lowers net exports in an open economy.
Explanation:
The Federal Reserve System ( popularly referred to as the 'Fed') was created by the Federal Reserve Act, passed by the U.S Congress on the 23rd of December, 1913. The Fed began operations in 1914 and just like all central banks, the Federal Reserve is a United States government agency.
Generally, it comprises of twelve (12) Federal Reserve Bank regionally across the United States of America.
Like all central banks, the Federal Reserve is a government agency that is saddled with the following responsibilities;
I. The Fed controls the issuance of currency in United States of America: it promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.
II. It provides banking services to all the commercial banks in the country because the Federal Reserve is the "lender of last resort."
III. It regulates banking activities in the United States of America: it has the power to supervise and regulate banks.
Fiscal policy in economics refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.
A fiscal policy affects combined demand through changes in government policies, spending and taxation which eventually impacts employment and standard of living plus consumer spending and investment.
Generally, the government of a particular country could use a contractionary policy to slow down the economy when inflation is high and gross domestic product (GDP) is growing too.
Hence, when the Federal reserve (government) of the United States of America uses contractionary monetary policy to reduce inflation, it sells treasury securities at an increasing (high) interest rates, which eventually leads to a stronger dollar that lowers net exports (total trade) in an open economy.
State one risk and one benefit of being a stockholder.
Answer:
risk : Stockholders aren't guaranteed a return on there investment.
benefit: you can make money on the stock market sometimes at huge rates of growth
Suppose you are interested in taking an FHA mortgage loan for $350,000 in order to purchase your principal residence. In order to do so, you must pay an additional up-front mortgage insurance premium (UFMIP) of 1.0% of the mortgage balance. If the interest rate on the fully amortizing mortgage loan is 6% and the term is 30 years and the UFMIP is financed (i.e., it is included in the loan amount), what is the dollar portion of your monthly mortgage payment that is designated to cover the UFMIP
Answer:
The answer is "$20.98 ".
Explanation:
[tex]Loan \ Amount = - 350,000\\\\UFMIP (1\%) = - 3500\\\\Total \ Loan \ Amount = - 353,500\\\\\frac{I}{y} =\frac{6\%}{12} = 0.5 \\\\N = 30\times 12 = 360\\\\PV= -353500\\\\ CPT \ PMT = \$2,119.41 \\\\[/tex]
Suppose
[tex]Loan = 100\\\\UFMIP = 1\\\\Loan\ \ Amount = 101\\\\Proportionate\ \ UFMIP = 2119.41 \times ( \frac{1}{101})= 20.98[/tex]
Decca Publishing paid $230,000 to acquire Thrifty Nickel, a weekly advertising paper. At the time of the acquisition, Thrifty Nickel balance sheet reported total assets of $130,000 and liabilities of $70,000. The fair market value of Thrifty Nickels assets was $100,000. The fair market value of Thrifty Nickel liabilities was $70,000.
Required:
a. How much goodwill did Decca Publishing purchase as part of the acquisition of Thrift Nickel?
b. Journalize Decca Publishing's acquisition of Thrifty Nickel.
Answer:
Part a
$200,000
Part b
Debit : Investment in subsidiary $230,000
Credit : Cash $230,000
Explanation:
Goodwill is the excess of the Purchase Price over the Net Assets taken over at the acquisition date.
Assets and liabilities are taken over at their acquisition date Fair Values instead of Book Values so be sure to adjust any items shown at Book Value.
Net Assets = Assets at Fair Value - Liabilities at Fair Value
= $100,000 - $70,000
= $30,000
Goodwill = Purchase Price - Net Assets Taken over
= $230,000 - $30,000
= $200,000
The Federal Reserve has the power to implement and manage which type of
policy?
A. Fiscal policy
B. Budget policy
C. Debt policy
O D. Monetary policy
D. Monetary policy
Federal reserve controls through public spending i.e buying bonds to stimulate the economy
Leaper Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total Activity Fabrication 50,000 machine-hours Order processing 200 orders Other Not applicable The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs. The company has provided the following data concerning its costs: Wages and salaries $ 450,000 Depreciation 185,000 Occupancy 205,000 Total $ 840,000 The distribution of resource consumption across activity cost pools is given below: Activity Cost Pools Total Fabrication Order Processing Other Wages and salaries 35% 30% 35% 100% Depreciation 20% 50% 30% 100% Occupancy 35% 30% 35% 100% The activity rate for the Order Processing activity cost pool is closest to:_______.
A. $2,755 per order
B. $1,445 per order
C. $1,138 per order
D. $983 per order
Answer:
Order Processing= $1,445 per order
Explanation:
First, we need to calculate the estimated costs for processing:
Order Processing= (450,000*0.30) + (185,000*0.5) + (205,000*0.3)
Order Processing= $289,000
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Order Processing= 289,000 / 200
Order Processing= $1,445 per order
Historical Art is a new business. During its first year of operations, credit sales were $50,000 and collections from credit sales were $34,000. One account for $500 was written off. Management uses the percent-of-sales method to account for bad debts expense and estimates 3% of credit sales to be uncollectible. What is the balance of accounts receivable at the end of the first year?
Answer: $1000
Explanation:
First, we calculate the amount if bad debt expense which will be:
= 3% × $50000
= $1500
Therefore, the balance of accounts receivable at the end of the first year will be:
= Amount of bad debts expense - Account written off
= $1500 - $500
= $1000
One traditional source of capital involves retaining the excess of revenues over expenses. The Kay-z Pharmaceutical Company, a for-profit corporation, is a relatively small start-up company. As a start-up, Acme has recorded operating losses for each of its five years of existence. The company now needs to raise more capital for research and development. Will retaining the excess of revenues over expenses be a possible source of capital for Acme?
a. Yes
b. No
c. Not applicable
Answer:
Acme Pharmaceutical Company (or is it Kay-z?)
Retaining the excess of revenues over expenses as a possible source of capital for Acme:
c. Not applicable
Explanation:
The retention of retained earnings cannot be applicable in this case because for the past five years of its existence the company had recorded operating losses. It had not retained any profits so far. This means that there is no internally-generated source of financing for the company. It can only rely on outside finance in the form of equity (stockholders) or debt (creditors).
Whispering Winds Corp. issued common stock for proceeds of $513000 during 2022. The company paid dividends of $91000 and issued a long-term note payable for $345000 in exchange for equipment during the year. The company also purchased treasury stock that had a cost of $75000. The financing section of the statement of cash flows will report net cash inflows of
Answer:
$347,000
Explanation:
Financing Activities are Activities regarding sourcing and repayment of finance.
Also, Consider only transactions or events involving movement of cash.
Cash flow from Financing Activity
Proceeds from Issue of shares $513000
Dividend Paid ($91000)
Purchase of treasury stock ($75000)
Net Cash Provided by Financing Activities $347,000
therefore,
The financing section of the statement of cash flows will report net cash inflows of $347,000.
a customer complains about the food, saying it does not suit his taste. what will you do?
Answer:
Well, I'll ask if there is anything specific he would love to have that would be to his taste. key note is to be humble and tolerant to your customers.
What differences and similarities exist between monopolistic competitive firms and perfect competitive firms?
Answer:
In perfect competition, the product offered is standardized whereas in monopolistic competition product differentiation is there. In monopolistic competition, every firm offers products at its own price. ... Entry and Exit are comparatively easy in perfect competition than in monopolistic competition.
Explanation:
(hope this helps)
Sandy is considering moving from her apartment into a small house with a fenced yard. The apartment is noisy, and she has difficulty studying. In addition, the fenced yard would be great for her dog. The distance from school is about the same from the house and from the apartment. The apartment costs $750 per month, and she has 2 months remaining on her lease. The lease cannot be broken, so Sandy must pay the last 2 months of rent whether she lives there or not. The rent for the house is $450 per month, plus utilities, which should average $100 per month. The apartment is furnished; the house is not. If Sandy moves into the house, she will need to buy a bed, dresser, desk, and chair immediately. She thinks that she can pick up some used furniture for a good price. Which of the following costs is irrelevant to Sandy's decision to stay in the apartment or move to the house?
a. House rent of $450 per month.
b. Utilities for the house of $100 per month.
c. The noise in the apartment house.
d. The cost of the used furniture.
Answer:
Noise in the apartment house
Explanation:
Costs are units or monetary value which are incurred/spent on taking a certain action. It is often quantitative in nature that is something that can be measured. Although noise is a factor which can affect Sandy's decision of moving from the apartment, it cannot be considered as a cost. Noise of the apartment is a qualitative factor. It does not have an intrinsic monetary value. Thus, in this regard it is an irrelevant cost for Sandy's decision to stay in the apartment or move to the house.
The other options have a monetary value and thus they are relevant for Sandy's decision.
At the beginning of the current year, Hardin Company had 20,000 shares of $10 par common stock outstanding. During the year, it engaged in the following transactions related to its common stock, so that at year-end it had 63,800 shares outstanding: Apr. 1Issued 5,000 shares of stock. June 1Issued 4,000 shares of stock. July 1Issued a 10% stock dividend. Sept. 30Issued a 2-for-1 stock split, reducing the par value to $5 per share. Oct. 1Reacquired 1,000 shares as treasury stock. Nov. 30Reissued the 1,000 shares of treasury stock. Required: Determine the weighted average number of shares outstanding for computing the current earnings per share. Round your interim computations and final answer for the number of shares to nearest whole number.
Answer:
Hardin Company
The weighted average number of shares outstanding for computing the current earnings per share is:
= 35,841.
Explanation:
a) Data and Calculations:
Date Transaction Number Weight Result
January 1 Outstanding 20,000 12/12 20,000
April 1 Issue of shares 5,000 9/12 3,750
June 1 Issue of shares 4,000 7/12 2,333
July 1 Stock Dividend 2,900 6/12 1,450
Sept. 30 Stock split 31,900 3/12 7,975
Oct. 1 Treasury Stock (1,000) 3/12 250
Nov. 30 Treasury Stock 1,000 1/12 83
Dec. 31 Outstanding weighted average shares 35,841
b) The Stock dividend was issued to 29,000 shares. The 10% gives 2,900 shares. For the stock split of 2 for 1, the number of shares will double, meaning that each shareholder will now have 2 shares.
The following information exists for ABC Company:
Selling price per unit: $30
Variable expenses per unit: $21
Fixed expenses for the period: $60,000
Sales volume in units: 10,000
If selling price is reduced by $2 and sales volume increases by 3,000 units, total contribution margin will increase by $__________ .
Answer:
Difference= $1,000 increase
Explanation:
Giving the following information:
Selling price per unit: $30
Variable expenses per unit: $21
New selling price= 30 - 2= $28
New units sales= 13,000
First, we need to calculate the current contribution margin:
Total contribution margin= units sold*unitary contribution margin
Total contribution margin= 10,000*(30 - 21)
Total contribution margin= $90,000
Now, the new contribution margin:
Total contribution margin= 13,000*(28 - 21)
Total contribution margin= $91,000
Henna Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 56,000 units of each product. Sales and costs for each product follow.
Product T Product O
Sales $929,600 $929,600
Variable costs 650,720 185,920
Contribution margin 278,880 743,680
Fixed costs 132,880 597,680
Income before taxes 146,000 146,000
Income taxes (32% rate) 51,100 51,100
Net income $94,900 $94,900
Required:
Compute the break-even point in dollar sales for each product.
Answer:
Henna Co.
Break-even point in dollar sales:
= Total costs = Sales revenue
Product T Product O
Break-even point (sales dollars) = $783,600 $783,600
Explanation:
a) Data and Calculations:
Product T Product O
Sales $929,600 $929,600
Variable costs 650,720 185,920
Contribution margin 278,880 743,680
Fixed costs 132,880 597,680
Income before taxes 146,000 146,000
Income taxes (32% rate) 51,100 51,100
Net income $94,900 $94,900
Break-even point in dollar sales:
= Total costs = Sales revenue
Product T Product O
Variable costs $650,720 $185,920
Fixed costs 132,880 597,680
Total costs 783,600 783,600
Sales revenue $783,600 $783,600
Production Budget Weightless Inc. produces a Bath and Gym version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows: Bath Scale Gym Scale East Region unit sales 55,000 30,000 West Region unit sales 95,000 60,000 Total 150,000 90,000 The finished goods inventory estimated for October 1, for the Bath and Gym scale models is 18,000 and 10,000 units, respectively. The desired finished goods inventory for October 31 for the Bath and Gym scale models is 12,500 and 8,000 units, respectively. Prepare a production budget for the small and large scales for the month ended October 31. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Answer:
Total units to be produced:
Bath Scale = 144,500
Gym Scale = 88,000
Explanation:
The following anticipated unit sales for the scales by sales region are given in the question:
Bath Scale Gym Scale
East Region unit sales 55,000 30,000
West Region unit sales 95,000 60,000
Total 150,000 90,000
The production budget can now be prepared as follows:
Weightless Inc.
Production Budget
For the Month Ending October 31
Units Bath Scale Units Gym Scale
Expected units to be sold 150,000 90,000
Desired inventory, October 31 12,500 8,000
Total 162,500 98,000
Estimated inventory, October 1 (18,000) (10,000)
Total units to be produced 144,500 88,000
Besides possibly paying the premiums for a medical insurance plan, the insured is almost always responsible for making Other, out-of-pocket payments. This practice helps keep overall costs down for both insureds and the insurance companies and ensures that insureds are informed about the costs of health care.
For each Of the following scenarios, select which type Of other cost or provision is illustrated. Deion had routine surgery performed at his local hospital. All charges were within the reasonable and customary costs in his area.
a. Deductible
b. Internal limits
c. Coordination Of benefits
d. Participation (co-insurance)
Answer: b. Internal limits
Explanation:
Sometimes there will be internal limits on a policy which will usually be less than the general policy limits so as to limit the amount the insurance company will pay on certain goods such as surgical procedures.
This is therefore the relevant provision here because there is probably a cap on the amount that Deion's insurance company will pay on the surgery but as Deion was within acceptable costs, he won't have to pay for passing any internal limits.
if you are going to create or own a business, what would it ? List at least 3 and cite your reasons why you have listed them.
Answer:
Milktea shop, coffee shop, computer shop
Explanation:
hope this helps
asey transfers property with a tax basis of $2,640 and a fair market value of $7,000 to a corporation in exchange for stock with a fair market value of $5,100 and $835 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $1,065 on the property transferred. Casey also incurred selling expenses of $547. What is the amount realized by Casey in the exchange
Answer:
Amount realized $6,453
Explanation:
The computation of the amount realized by Casey in the exchange is shown below:
Fair market value of the stock received $5,100
add: cash in transaction that qualifies for deferral under section 351 $835
Add: assumed mortgage $1,065
Less: selling expense -$547
Amount realized $6,453
Required information
SB Angle Max Industries produces a product...
[The following information applies to the questions displayed below.]
Angle Max Industries produces a product which goes through two operations, Assembly and Finishing, before it is ready to be shipped. Next year’s expected costs and activities are shown below.
Assembly Finishing
Direct labor hours 190,000 DLH 149,000 DLH
Machine hours 390,000 MH 95,550 MH
Overhead costs $ 390,000 $ 581,100
TB MC Qu. 17-117 Assume that the Assembly Department allocates...
Assume that the Assembly Department allocates overhead based on machine hours, and the Finishing Department allocates overhead based on direct labor hours. How much total overhead will be assigned to a product that requires 1 direct labor hour and 3.4 machine hours in the Assembly Department, and 4.0 direct labor hours and 0.6 machine hours in the Finishing Department?
Answer:
Total allocated costs= $19
Explanation:
First, we need to calculate the predetermined manufacturing overhead rate for each department:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Assembly= 390,000 / 390,000= $1 per machine hour
Finishing= 581,100 / 149,000= $3.9 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Assembly= 1*3.4= $3.4
Finishing= 3.9*4= $15.6
Total allocated costs= $19
The following information relates to the manufacturing operations of the Abbra Publishing Company for the year: Beginning Ending Raw materials inventory$547,000 $610,000 The raw materials used in manufacturing during the year totaled $1,018,000. Raw materials purchased during the year amount to: Multiple Choice $955,000. $892,000. $1,565,000. $408,000.
Answer:
Purchases= $408,000
Explanation:
Giving the following information:
Beginning Ending Raw materials inventory$547,000 $610,000
The raw materials used in manufacturing during the year totaled $1,018,000
To calculate the direct material purchased, we need to use the following formula:
Purchases= direct material used in production - ending inventory
Purchases= 1,018,000 - 610,000
Purchases= $408,000
Pique Corporation wants to purchase a new machine for $300,000.Management predicts that the machine can produce sales of $200,000 each year for the next 5 years.Expenses are expected to include direct materials,direct labor,and factory overhead (excluding depreciation)totaling $80,000 per year.The firm uses straight-line depreciation with no residual value for all depreciable assets.Pique's tax rate is 40%.Management requires a minimum 10% rate of return on all investments.What is the payback period for the new machine (rounded to nearest one-tenth of a year)? (Assume that the cash inflows occur evenly throughout the year. )
A) 2.5 years.
B) 2.7 years.
C) 3.1 years.
D) 3.6 years.
E) 4.2 years.
Answer:
c
Explanation:
Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
Payback period = Amount invested / cash flow
Cash flow = profit after tax + depreciation
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
(300,000 - 0) / 5 = $60,000
Profit after tax = (1 - tax rate) x (sales - expenses - depreciation)
0.6 x ($200,000 - $80,000 - $60,000) = $36,000
Cash flow = $36,000 + 60,000 = 96,000
Payback period = $300,000 / $96,000 = 3.1 years
Maxim Air Filters Inc. plans to borrow $300,000 for one year. Northeast National Bank will lend the money at 10 percent interest and requires a compensating balance of 20 percent. What is the effective rate of interest?Maxim Air Filters Inc. plans to borrow $300,000 for one year. Northeast National Bank will lend the money at 10 percent interest and requires a compensating balance of 20 percent. What is the effective rate of interest?
Answer: 12.5%
Explanation:
The effective rate of interest is simply referred to as the interest on a loan, savings account or financial product. Based on the information given in the question, the effective interest rate will be:
= Interest rate / (1 - CC)
where,
Interest rate = 10%
Compensating balance CC = 20%
= Interest rate / (1 - CC)
= 10% / (1 - 20%)
= 0.1 / (1 - 0.2)
= 0.1 / 0.8
= 0.125
= 12.5%
The effective interest rate is 12.5%
Agnes works for STARQUEST LTD in the IT department. Her supervisor is Morges. Agnes is very good at her job and Morges fears threatened by her. Over a period of several months he routinely criticizes her work and withholds information from her that she should have to do her job. Then he sends her emails telling her she has missed deadlines and committed other errors. Agnes tries to defend herself but this only angers Morges. The last straw for Agnes was Morges telling her she would be better off at home "taking care of her husband." Agnes complains to HR about Morges' conduct. STARQUEST LTD could be liable to Agnes for Morges' conduct under which of the following doctrines?
a. parens patriae.
b. res ipsa loquitur.
c. respondeat superior.
d. fairness doctrine.
Answer:
The answer is "Option c".
Explanation:
The whole teaching requires its principal (StarQuest ltd) to also be held liable for only certain acts unless the agent or worker speaks up which damages or injury. From the above case, Morges' behavior is inaccurate as well as the corporation is responsible for its behavior.
Parens patriae is indeed a principle that covers State intervention whenever a negligent parent is involved.Res ipsa loquitor is indeed a principle which, throughout the absence of evidence, makes misconduct or perhaps an accident as 'negligence.'In the fairness doctrine is concerned with both the transmission of contentious news not with the liability of even an undertaking for its conduct.