Answer:
$31,500
Explanation:
Calculation to determine how much interest income is recognized by the investor in 2024
Using this formula
Interest income=Amount paid by investor*market rate of interest
Let plug in the formula
Interest income=$315,000 × 10%
Interest income=$31,500
Therefore Using the effective interest method, how much interest income is recognized by the investor in 2024 is $31,500
g On January 1, 2019, plant assets, net are $190,000. On December 31, 2019, plant assets, net are $290,000. Depreciation expense for the year is $20,000. During the year, plant assets were acquired for $155,000 with cash. There is a Gain on sale of plant asset of $10,000. What are the cash proceeds from the sale of the plant asset
Answer:
$45,000
Explanation:
Given the equation below,
Total beginning net book value of plant assets + Total plant assets purchased during that period - Total depreciation recorded of plant assets during that period - Net book value of plant assets sold during the period = Net closing book value of plant assets
Hence, we have
$190,000 - $20,000 + $155,000 - Net book value of plant assets sold during the period = $290,000
Net boom value of plant sold during the period = $35,000
We also have the equation below;
Sales proceed - Net book value of plant assets sold during the period = Gain(loss) on disposal of assets
Sales proceed - $35,000 = $10,000
Sales proceed = $10,000 + $35,000
Sales proceed = $45,000
he exercise price equals the $4 market price of the common stock on the grant date. The options cannot be exercised before January 1, 2024, and expire December 31, 2025. Each option has a fair value of $1 based on an option pricing model. What is the total compensation cost for this plan
Answer:
$63,500
Explanation:
Missing word "Wall Drugs offered an incentive stock option plan to its employees. On January 1, 2021, options were granted for 63,500 $1 par common shares. The exercise price equals the $4 market price of the common stock on the grant date. The options cannot be exercised before January 1, 2024, and expire December 31, 2025. Each option has a fair value of $1 based on an option pricing model"
On January 1, 2021, options were granted for 84,000 $1 par common shares
The exercise price equals the $4 market price of the common stock on the grant date.
Each option has a fair value of $1 based on an option pricing model.
Total compensation cost for this plan = Estimated Fair value per option* Option granted
Total compensation cost for this plan = 63,500 * $1
Total compensation cost for this plan = $63,500
The cost of purchasing 310 trees and processing them up to the split-off point to yield 180,000 sheets of paper and 180,000 pencil casings is $12,500. Kenton's accounting department reported no beginning inventory. What is the total sales value at the split-off point for paper
Answer: $36000
Explanation:
You didn't complete the question but based on what I got online, the price was given as $0.20. Therefore, the total sales value at the split-off point for paper will be calculated as:
= Total sheets × Price
= 180000 × $0.20
= $36000
Therefore, the total sales value at the split-off point for paper is $36000
in a bad news message the reasons for the decision
are so obvious that you don’t need to mention them
come directly after the buffer and follow naturally from it
should be glossed over quickly
should be long and roundabout to cushion the negative aspects
Answer:
should be long and roundabout to cushion the negative aspects
if you are delivering bad news if it is directly affecting them they would most likely like to know why and if they can help this issue
Explanation:
mrk me brainliest please.
enjing purchases a bond for $2,000 with 12 remaining $40 quarterly coupon payments. The bond broker who sells her the bond reassures her that she will earn a return of 3% per quarter but does not disclose the bond's par value. What par value would result in the return the bond broker promises
Answer:
Wenjing
The par value that would result in the return the bond broker promises is:
= $1,333.
Explanation:
a) Data and Calculations:
Bond amount paid = $2,000
Quarterly coupon payments = $40
Remaining coupon payments = 12
Bond maturity period = 3 years (12/4)
Promised returns per quarter = 3%
The implication is that the bond's annual interest rate = 12% (3% * 4 quarters)
Par value of bond = Quarterly premium/Quarterly returns in percentage = $1,333 ($40/0.03)
Check this out: 3% of $1,333 = $40
If you get in an accident with a hit-and run driver, ___ will cover any damage. a. collision insurance c. medical payments b. comprehensive physical insurance d. uninsured motorist insurance
Answer:
A.
Explanation:
Collision insurance covers anything from a car accident you did, or someone else did.
The 10-year bond of Crown Electronics is selling at $960 each. The bond has a coupon rate of 8% and par value of $1,000. The firm will incur a $20 flotation cost for each bond issued. If the firm's tax rate is 40%, what is the after tax-cost of the firm's debt
Answer: 5.36%
Explanation:
The after-tax cost of debt refers to the interest that is paid on debt which is then less the income tax savings as a result of the deductible interest expenses.
When calculating the after-tax cost of debt, the effective tax rate of a company should be subtracted from 1, after which the difference will be multiplied by the cost of debt. This will therefore be:
= Rate (10,8% × 1000, -960 + 20, 1000) × (1-40%)
=5.36%
Suppose that furniture production encompasses the following stages: Stage 1: Trees are sold to lumber company. $1,800 Stage 2: Lumber is sold to furniture company. $4,000 Stage 3: Furniture company sells furniture to retail store. $8,200 Stage 4: Furniture store sells furniture to consumer. $12,500 Instructions: Enter your responses rounded to the nearest whole number. a. What is the value added at each stage
Answer:
Stage 1 value added $1,800
Stage 2 value added $2,200
Stage 3 value added $4,200
Stage 4 value added $4,300
Explanation:
Calculation to determine the value added at each stage
Stage 1 value added = $1,800
Stage 2 value added =$4,000 – $1,800
Stage 2 value added=$2,200
Stage 3 value added = $8,200 – $4,000
Stage 3 value added = $4,200
Stage 4 value added =$12,500 – $8,200
Stage 4 value added =$4,300
Therefore the value added at each stage are:
Stage 1 value added $1,800
Stage 2 value added $2,200
Stage 3 value added $4,200
Stage 4 value added $4,300
All of the following statements characterize the traditional personal selling approach EXCEPT: a. Traditional selling focuses on closing sales. b. Traditional selling uses short-term follow-ups that focus on product delivery. c. Traditional personal selling takes a team approach to the account. d. Salespeople sell products, not advice and assistance. e. Proposals and presentations used emphasize pricing and product features.
Answer:
c. Traditional personal selling takes a team approach to the account.
Explanation:
Traditional sales can be regarded as a
very seller-centric. This approach relies on grabbing attention through interruption of what people are doing, and by telling them the reason they should be interested in that particular thing you are offering, and after this having expectations for them to make a purchase on the spot. Personal selling can be regarded as an approach whereby a salesperson meets find ways to meet a potential buyer, this could be buyers face-to-face having the the aim of selling particular product or service. This is the most traditional form of sales, that is used by many salespeople.
Characteristics of the traditional personal selling approach are;
✓Proposals and presentations used emphasize pricing and product features
✓Traditional selling focuses on closing sales.
✓Traditional selling uses short-term follow-ups that focus on product delivery.
✓Salespeople sell products, not advice and assistance.
Does anyone know how much netflix Approximately pay for a movie to be on netflix ?
Answer:
Depends on the ranking
Explanation:
Vick Vickers has a large consulting practice. New clients are required to pay one-half of the consulting fees up front. The balance is paid at the conclusion of the consultation. How does Vickers account for the cash received at the end of the engagement
Answer:
Vick Vickers
Vickers accounts for the cash received at the end of the engagement by debiting Cash account and crediting Consulting Fees (Revenue).
Explanation:
Then the fees received upfront, which were earlier credited to the Deferred Service Revenue account, are then closed by a debit to the Deferred Service Revenue and a credit to the Consulting Fees (Revenue) account. This is in line with the double-entry system of financial accounting and the new Revenue from Contracts with Customers, IFRS 15 or the ASC 606 equivalent.
The Neptune Company offers network communications systems to computer users. The company is planning a major investment expansion but is unsure of the cost of equity capital as it has no publicly-traded equity. Your assignment is to determine an appropriate equity cost. List and explain the steps you will need to take to complete this assignment.
Answer:
Collect estimates of beta for firms in the same businessExplanation:
$82 Using the incremental method, what amount of revenue will be allocated to Math Fun in the package that contains all three products
Answer:
$28.62
Explanation:
Calculation to determine what amount of revenue will be allocated to Math Fun in the package that contains all three products
First step is to calculate the Total revenue of three product if sold individually
Total revenue= $21 + $37 + $48
Total revenue= $106
Now let calculate the allocation of revenue to Math fun based on revenue proportion
Using this formula
Revenue allocation= Packaged revenue / Total individually revenue * Revenue of Math fun
Let plug in the formula
Revenue allocation= $82/106*37
Revenue allocation= $28.62
Therefore the amount of revenue that will be allocated to Math Fun in the package that contains all three products is $28.62
Cromartie Ltd. prepares its financial statements according to International Financial Reporting Standards. During 2021 the company incurred $1,245,000 in research expenditures to develop a new product. An additional $756,000 in development expenditures were incurred after technological and commercial feasibility was established and after the future economic benefits were deemed probable. The project was successfully completed and the new product was patented before the end of the 2021 fiscal year. Sale of the product began in 2020. What amount of the above expenditures would Cromartie expense in its 2021 income statement
Answer: $1,245,000
Explanation:
Going by IFRS standards, Research and Development Costs should be expensed as incurred so long as commercial feasibility has not been established.
Once this is established however, the costs after that are to be capitalized. In this scenario, the costs before feasibility are $1,245,000 so these costs are going to be expensed as periodic costs.
Flint Corporation issues $440,000 of 9% bonds, due in 9 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Click here to view factor tables. Compute the issue price of the bonds
Answer:
$414,282.91
Explanation:
The issue price of the bonds is also known as the Present Value (PV) or current price of the Bonds and is calculated as :
FV = $440,000
PMT = ($440,000 x 9%) ÷ 2 = $19,800
P/yr = 2
N = 9 x 2 = 18
I/yr = 10%
PV = ?
Using a Financial calculator to input the values as above, the PV or issue price will be $414,282.91
Which of the following statements about corporate governance in China is false? a. The state still uses direct and/or indirect controls to influence the strategies employed by most firms. b. The Chinese governance system may be tilting toward the Western model. c. Firms with higher state ownership tend to have lower market value and more volatility in those values over time. d. Private firms seek to establish political ties with the government to increase market value and avoid potential conflict between the principals.
Answer: D. Private firms seek to establish political ties with the government to increase market value and avoid potential conflict between the principals.
Explanation:
Corporate governance refers to a system of policies and rules, which dictate how the operations of an organization are manageed. The statements that are true about corporate governance in China include:
• The state still uses direct and/or indirect controls to influence the strategies employed by most firms.
• The Chinese governance system may be tilting toward the Western model.
• Firms with higher state ownership tend to have lower market value and more volatility in those values over time.
Therefore, the answer to the question will be option D as it's not true about corporate governance in China.
Pagemaster Enterprises is considering a change from its current capital structure. The company currently has an all-equity capital structure and is considering a capital structure with 30 percent debt. There are currently 2,150 shares outstanding at a price per share of $70. EBIT is expected to remain constant at $20,000. The interest rate on new debt is 10 percent and there are no taxes. a.Rebecca owns $30,100 worth of stock in the company. If the firm has a 100 percent payout, what is her cash flow
Answer:
Pagemaster Enterprises and Rebecca
If the firm has a 100 percent payout, Rebecca's cash flow is:
= $3,097.
Explanation:
a) Data and Calculations:
Outstanding shares = 2,150
Current price of shares = $70 per share
Market value of outstanding shares = $150,500 ($70 * 2,150)
Debt = 30% of $150,500 = $45,150
Equity = 1- 0.30 = 0.70 or 70%
Interest rate on new debt = 10%
Interest expense = $4,515 ($45,150 * 10%)
EBIT = $20,000
Interest (4,515)
EBT = $15,485
Dividend payout ratio = 100%
Rebecca's investment value = $30,100 = 20% ($30,300/$150,500 * 100)
Therefore, Rebecca's cash flow = $3,097 (20% of $15,485)
Recording Transactions Affecting Stockholders’ Equity
King Corporation began operations in January 2014. The charter authorized the following capital stock:
Preferred stock: 10 percent, $10 par, authorized 40,000 shares
Common stock: $5 par, authorized 85,000 shares
During 2014, the following transactions occurred in the order given:
a. Issued 22,000 shares of common stock to each of the three organizers and collected $9 cash per share from each of them.
b. Sold 9,000 shares of the preferred stock at $20 per share.
c. Sold 1,000 shares of the preferred stock at $20 and 2,500 shares of common stock at $10 per share.
Required:
Give the journal entries indicated for each of these transactions.
Answer:
King Corporation
Journal Entries:
a. Debit Cash $594,000
Credit Common stock $330,000
Credit Additional Paid-in Capital- Common $264,000
To record the issuance of 22,000 shares of common stock to each of the three organizers at $9 per share.
b. Debit Cash $180,000
Credit 10% Preferred stock $90,000
Credit Additional Paid-in Capital - Preferred $90,000
To record the issuance of 9,000 shares of the preferred stock at $20 per share.
c. Debit Cash $45,000
Credit 10% Preferred stock $10,000
Credit Additional Paid-in Capital- Preferred $10,000
Credit Common stock $12,500
Credit Additional Paid-in Capital-Common $12,500
To record the issuance of 1,000 shares of the preferred stock at $20 and 2,500 shares of common stock at $10 per share.
Explanation:
Data and Analysis:
a. Cash $594,000 Common stock $330,000 Additional Paid-in Capital- Common $264,000
22,000 shares of common stock to each of the three organizers and collected $9 cash per share from each of them.
b. Cash $180,000 10% Preferred stock $90,000 Additional Paid-in Capital - Preferred $90,000
9,000 shares of the preferred stock at $20 per share.
c. Cash $45,000 10% Preferred stock $10,000 Additional Paid-in Capital- Preferred $10,000 Common stock $12,500 Additional Paid-in Capital-Common $12,500
1,000 shares of the preferred stock at $20 and 2,500 shares of common stock at $10 per share.
A maker of computer games expects to sell games at a price of per game. These units cost to produce. Selling, general, and administrative expenses are million and depreciation is . What is the EBIT break-even point for the number of games sold in this case?
Answer:
$33,684 units
Explanation:
Calculation to determine the EBIT break-even point for the number of games sold in this case
Using this formula
Units sold=(Selling, general, and administrative expenses+Depreciation)/(Price per game-Units cost)
Let plug in the formula
Units sold=($1,000,000+$280,000)/($48-$10)
Units sold = $1,280,000 / $38
Units sold= $33,684 units
Therefore the EBIT break-even point for the number of games sold in this case will be $33,684 units
Concord Corporation reported the following information for 2016: October November December Budgeted sales $430000 $400000 $510000 Budgeted purchases $210000 $226000 $258000 Cost of goods sold is 35% of sales. Concord purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month. Accounts payable is used only for inventory acquisitions. How much is the budgeted balance for Accounts Payable at October 31, 2016? $84000 $126000 $216000 $90400
Answer:
a. $84,000
Explanation:
Given, credit purchases are 40% of the sales, will be collected in the following month
Credit purchase = Budgeted purchase * 40%
Credit purchase = $210,000 * 40%
Credit purchase = $84,000
So, the budgeted balance for Accounts Payable at October 31, 2016 is $84,000.
On January 1, year 8 Harper Co. finances the purchase of equipment by issuing a $15,000 non-interest-bearing note payable. The note will be paid off in 10 equal annual installments beginning on December 31, year 8. The market rate of interest for notes of this type is 5%. Considering the information below, at what amount should Harper Co. report the equipment on its balance sheet dated December 31, year 8
Answer: $11583
Explanation:
The amount that Harper Co. should report the equipment on its balance sheet dated December 31, year 8 will be calculated thus:
= Amount of annual instalment × PV of ordinary annuity of $1 at 5% for 10 periods
= (15000/10) × 7.72173
= 1500 × 7.72173
= 11582.595
= 11583
Therefore, the amount will be $11583
A stock is expected to return 8% in a normal economy, 12% if the economy booms, and lose 3% if the economy moves into a recessionary period. Economists predict a 56% chance of a normal economy, a 25% chance of a boom, and a 19% chance of a recession. The expected return on the stock is __%.
Answer: 6.91%
Explanation:
Expected return = Sum of (Probability of state of economy * Return given state of economy)
= (56% * 8%) + (12% * 25%) + (19% * -3%)
= 4.48% + 3% - 0.57%
= 6.91%
People who booked a tour with a company in Alaska before COMID-19 can request a cash refund or a credit that they can use later meaning the company will still have the money. If too many people ask for cash refunds, the company will go out of business. Their customers, who are all around the world and do not know each other, prefer that the company stays in business while they receive a cash refund. No one wants the company to go out of business while they still have trip credit (so they would lose their money. Based on what you know about game theory, what is the most likely outcome?
A. Everyone will cooperate, take trip credit, and the company will stay in business.
B. Everyone will honor sunk costs, take the cash refund, and the company will go out of business.
C. Everyone will honor sunk costs, take trip credit, and the company will stay in business.
D. Everyone will follow their self-interest, request a cash refund, and the company will go out of business.
E. None of these.
Answer:
A. Everyone will cooperate, take trip credit, and the company will stay in business.
Explanation:
The people have booked the tour before COMID-19. It is an uncontrollable factor which is not in the control of anyone. The people and the company will have to bear the consequences of the COMID-19 together. If the customers ask for cash refund, it is not possible for the company to repay all its customers back because the company might have made necessary arrangements for their guests.
Oriole Company purchased for $8,767,800 a mine that is estimated to have 48,710,000 tons of ore and no salvage value. In the first year, 2,830,000 tons of ore are extracted. (a1) Calculate depletion cost per unit. (Round answer to 2 decimal places, e.g. 0.50.) Depletion cost per unit $enter the depletion cost per ton amount in dollars per ton
Answer:
the depletion cost per unit is $0.18 per ton
Explanation:
The computation of the depletion cost per unit is shown below;
We know that
Depletion cost per ton is
= (Total cost - salvage value) ÷ total estimated units
= ($8,767,800 - $0) ÷ 48,710,000
= $0.18 per ton
Hence, the depletion cost per unit is $0.18 per ton
we simply applied the above formula so that the depletion cost per ton could come
Sample means and ranges were obtained for five samples of 10 units per sample from a production process. Assume the process was considered to be in control during the period these samples were collected. The results are as follows:
Sample Mean Range
1 10.58 0.23
2 9.97 0.25
3 9.99 0.21
4 10.23 0.28
5 10.23 0.28
Required:
What is the central line of the X chart for this process
Answer:
10.20
Explanation:
Given the data :
Sample___ Mean ____Range
1 ________10.58 _____0.23
2________ 9.97 _____ 0.25
3 ________9.99 _____ 0.21
4 ________10.23_____ 0.28
5 ________10.23 _____0.28
The central line of the X_chart :
CL = xbar = Σx / n
CL = central line
x = mean values of the samples
n = number of samples
xbar = (10.58 + 9.97 + 9.99 + 10.23 + 10.23) / 5
xbar = 51 / 5
xbar = 10.20
Central line = 10.20
Why would an investor prefer purchasing bonds to purchasing stocks?
A. Unlike stocks, bonds are guaranteed to return a profit to the
investor.
B. Bonds are typically less risky than stocks.
O C. Unlike stocks, when an investor owns bonds, they own a tiny part
of the company
D. Bonds are more likely than stocks to make huge profits.
Answer:
B. Bonds are typically less risky than stocks.
Explanation:
Answer: B. Bonds are typically less risky than stocks
Explanation:a. p. e. x. (just took the test)
A company projects an increase in net income of $135,000 each year for the next five years if it invests $900,000 in new equipment. The equipment has a five-year life and an estimated salvage value of $300,000. What is the annual rate of return on this investment
Answer:
the annual rate of return is 22.50%
Explanation:
The computation of the annual rate of return is shown below:
Average investment is
= ($900,000 + $300,000) ÷ 2
= $600,000
Now
Annual rate of return is
= Annual net income ÷ Average investment
= $135,000 ÷ $600,000
= 22.50%
hence, the annual rate of return is 22.50%
While advocates of a market-oriented economy tend to argue that consumers benefit substantially when firms seek short-term profits by providing differentiated products, critics of market-oriented economies may argue that product differentiation (along with marketing and advertising) is _______________. Select the correct answer below: dishonest socially wasteful low quality boring
Answer: socially wasteful
Explanation:
Product differentiation is when a product is being distinguished from similar products in order to make it more appealing and therefore drive consumers choice.
It should be noted that critics of market-oriented economies may argue that product differentiation is socially wasteful.
A company has the following expenditures during the year. Advertising $ 200,000 Employee training 25,000 Customer outreach and consultation 175,000 The company believes that these efforts have increased the fair value of the entire company by $50,000. How much goodwill can the company recognize at the end of the year associated with these expenditures
Answer:
$0
Explanation:
Given that;
Advertising expenses = $200,000
Employee training = $25,000
Consumer outreach and consultation = $175,000
Since it is mentioned that this cost would be increased, the fair value of the entire company by $50,000
Hence, there is no information related to the takeover of the business. This implies that the goodwill recognized by the company is zero
Consider a trader who takes a long position in a six-month forward contract on the euro. The forward rate is $1.75 = €1.00; the contract size is €62,500. At the maturity of the contract the spot exchange rate is $1.65 = €1.00. A. The trader has lost $625. B. The trader has lost $6,250 C. The trader has made $6,250 D. The trader has lost $66,287.88
Answer:
B. The trader has lost $6,250
Explanation:
Calculation to determine the amount the trader has loss
First step
You will buy at $1.75 and spend= (1.75 × 62,500) You will buy at $1.75 and spend= $109,375
Second step
But you could buy and spend= (1.65 × 62,500)
But you could buy and spend= $103.125
Now let calculate the amount the trader has loss
Loss=$103,125 - $109,375
Loss = -$6,250
Therefore The trader has lost $6,250