Answer:
Orion Corporation
Direct material price variance = $22,572 unfavorable
Direct material quantity variance = $71,280 favorable
Direct- labor rate variance = $14,688 favorable
Direct-labor efficiency variance = $1,296 unfavourable
Explanation:
a) Data and Calculations:
Standard Standard Price Standard
Quantity or Rate Cost
Direct material 6.00 pounds $1.10 per pound $6.60
Direct labor 0.30 hour $6.00 per hour 1.80
Total $8.40
Purchase of 227,000 pounds of direct materials = $274,670
Unit price per pound = $1.21
Total wages for June = $72,576
Direct labor costs = $54,432 ($72,576 * 75%)
Direct labor hours = 11,520
Direct labor rate = $4.725 ($54,432/11,520)
Indirect labor costs = $18,144
Number of dart boards manufactured = 36,000
Direct materials used = 205,200
Usage per unit of dart board = 5.7 (205,200/36,000)
Direct material price variance = (Standard price - Actual price) * Actual materials used
= ($1.10 - $1.21) * 205,200
= $22,572 unfavorable
Direct material quantity variance = (Standard quantity - Actual quantity) * Standard rate
= (216,000 - 205,200) * $6.60
= $71,280 favorable
Direct- labor rate variance = (Standard rate - Actual rate) * Actual direct-labor hours
= ($6.00 - $4.725) * 11,520
= $14,688 favorable
Direct-labor efficiency variance = (Standard hours - Actual hours) * Rate
= (10,800 - 11,520) * $1.80
= $1,296 unfavourable
Which option identifies the most likely basic requirement in the following scenario?
A developing country needs to shift from smallholding to modern state-of-the-art agribusiness-style farming, and wants to do this in a fully independent, self-sustainable manner.
A) access to advanced chemical supplements and pesticides
B) a substantial body of skilled, traditional subsistence farmers
C) an infrastructure providing educated workers and advanced machines
D) an infrastructure providing cheap, unskilled labor
Answer: C. an infrastructure providing educated workers and advanced machines
Explanation:
Since the developing country needs to shift from smallholding to a modern state-of-the-art agribusiness-style farming, it's vital for the country to have an infrastructure providing educated workers and advanced machines. The educated workers will help in handling the technical know-how of the.machines used for the modern agribusiness.
An infrastructure that's providing cheap
and unskilled laborr isn't ideal in this case. Also, traditional subsistence farming won't help since the country is moving to a modern style.
Simone Company is considering the purchase of a new machine costing $50,000. It is expected to save $9,000 cash per year for 10 years, has an estimated useful life of 10 years, and no salvage value. Management will not make any investment unless at least an 18% rate of return can be earned. Using the net present value method, determine if the proposal is acceptable and Calculate the time-adjusted rate of return. Assume all tax effects are included in these numbers.
Answer:
Project not acceptable as NPV is negative at -$9,553.10Time-adjusted rate of return = 12.41%Explanation:
The Net Present value works by deducting the cost from the present value of benefits. If this amount is positive then the project is a good one.
= Present value of benefits - Present value of cost
Benefits are $9,000 a year for 10 years. This is constant so is annuity.
Cost is the $50,000 purchase price.
= (9,000 * Present value interest factor of annuity, 10 years, 18%) - 50,000
= (9,000 * 4.4941) - 50,000
= -$9,553.10
Project is not acceptable because NPV is negative.
Time-adjusted rate of return is the Internal Rate of Return which is the return that brings NPV to zero.
Use Excel or a Financial calculator for it(Worksheet attached):
= 12.41%
When applying for the FAFSA, which of the following is not true?
Answer:
it provides early admission
Explanation:
thats my answer
When applying for FAFSA, the following is not true : The earliest one can apply and submit for FAFSA is January 1st of each year.
FAFSAFAFSA stands for Free Application for Federal Students Aid.
FAFSA is financial aid eligibility form for the students of United States of America. The FAFSA provides aids such as federal grants, loans, federal students aid, etc. to the college students.
The earliest one can submit for FAFSA is 1st of October every year.
FAFSA can be filled online or on paper.
Both dependent and independent students can fill for FAFSA.
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Kelly Slater owns a parcel of land in Palm Springs and is considering two possible development options which both use his signature Kelly Slater Wave Pool technology.
Option A: Create a private surf club, in which case he would have to invest $10 million today (EOY 0). The club would then generate an annual free cash flow of $2 million in perpetuity starting EOY 1.
Option B: Create a surf resort and hotel open to the public, in which case he would have to invest $50 million today (EOY 0). The resort would then generate an annual free cash flow of $6.5 million in perpetuity starting EOY 1.
Assume Kelly's discount rate is 10% and that he can only invest in one of the two options. Kelly should: ________
a. Accept both options because they both have positive NPV
b. Choose Option A because it has a higher IRR
c. Reject both options because both have an IRR less than 10%
d. Choose Option B because it has a higher NPV
Answer:
d. Choose Option B because it has a higher NPV
Explanation:
The computation is shown below:
For Option A:
Investment = $10 million
Present Value of cash flows = Cash flow ÷ Discounting rate
= $2 ÷ 10%
= $20 million
Now
NPV = $20 - $10
= $10 million
We know that
IRR is the rate at which the NPV will be zero
So, 2 ÷ r - 10 = 0
r = 20%
For Option B:
Investment = $50 million
Present Value of cash flows = $6.5 ÷ 10% = $65 million
NPV = $65 - $50 = $15 million
we know that
IRR is the rate at which the NPV will be zero
So, 6.5÷ r -50 = 0
r = 13%
Based on NPV, Option B should be selected as it contains higher NPV as compared to option A.
However, Based on IRR, Option A should be chosen as it contains higher IRR and a higher IRR represent a higher profit percentage
XYZ Insurance Company uses class rating to determine the rate to charge for insurance.
For one type of insurance the pure premium XYZ actuaries calculated is $75 per unit.
If XYZ's expense ratio is 30%, what is the gross rate for this coverage?
O a. $107.14
O b. $96.28
O C. $85.19
O d. $115.62
Answer: a. $107.14
Explanation:
The gross rate for insurance coverage represents the amount that the insurance provider needs to pay for losses as well as the amount needed to pay for expenses such as sales expenses and still be able to have a profit.
Given the expense ratio and the pure premium is:
= Premium / ( 100 - expense ratio)
= 75 / (100 - 30%)
= $107.14
In a closed economy, saving and investment must be equal, but this is not the case in an open economy. In the following problem, you will explore how saving and investment are connected to the international flow of capital and goods in an economy. Before delving into the relationship between these various components of an economy, you will be asked to recall some relationships between aggregate variables that will be useful in your analysis.
Recall the components that makeup GDP. National income (Y) equals total expenditure on the economy's output of goods and services. Thus, where C= consumption, I= investment, G =government purchases, X=exports, M =imports, and NX= net exports.
Y= _____
Also, national saving is the income of the nation that is left after paying for _____. Therefore, national saving (S) equals:
S=_____
Rearranging the previous equation and solving for Y yields, Y= _____ Plugging this into the original equation showing the various components of GDP results in the following relationship:
S=_____
Answer:
Y = C + I + G + NX
S = Y - C
S = I + G + NX
Explanation:
National Income Y = C + I + G + NX ; {where consumption, investment, government purchases, net exports ie exports - imports are corresponding expenditure of households, firms, government, rest of the world}
National Saving (S) is income (Y) left after paying for consumption (C) . So, S = Y - C
Using above equations, Y = C + S , Y = C + I + G + NX
C + S = C + I + G + NX
So, S = I + G + NX
The Pan American Bottling Co. is considering the purchase of a new machine that would increase the speed of bottling and save money. The net cost of this machine is $56,000. The annual cash flows have the following projections. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.
Year Cash Flow
1 $23,000
2 23,000
3 25,000
4 28,000
5 16,000
Required:
a. If the cost of capital is 10 percent, what is the net present value of selecting a new machine?
b. What is the internal rate of return?
Answer and Explanation:
The computation is shown below;
a. the net present value is
Year cash flow factor at 10% Discounted cash flows
0 -$56,000 1 $56,000
1 $23,000 0.9091 $20,909.09
2 $23,000 0.8264 $19,008.26
3 $25,000 0.7513 $18,782.87
4 $28,000 0.6830 $19,124.38
5 $16,000 0.6209 $9,934
Net present value $31,759.34
b. The internal rate of return is
Here we apply the formula
= IRR()
After this, the irr is 30.75%
What is the answer i been trying this whole time.If you get it i'll give you 30 point honestly......
Answer:
GBGGPGGGGRGGGGGPGGGWG
Explanation:
Green trees = G
Blue trees = B
Pink trees = P
Red trees = R
Purple trees = P
White trees = W
Maestro Inc has a $1,000, 6% coupon bond with interest payable semiannually and a remaining term of 20 years. The market yield on similar bonds is 10%. What percentage of face value is the bond selling for today
Answer:
65.682%
Explanation:
The computation of the percentage is shown below;
But before that first determine the present value i.e.
Given that
Future value = $1,000
PMT = $1,000 × 6% ÷ 2 = $30
RTAE = 10% ÷ 2 = 5%
NPER = 20 × 2= 40
the formula is shown below;
= -PV(RATE,NPER,PMT,FV,TYPE)
After applying the above formula, the present value is $656.82
Now the percentage is
= $656.82 ÷ $1,000
= 65.682%
FINANCIAL LITERACY
WILL MARK BRAINLIEST PLS HELP ASAP!!
Answer:
i dk
Explanation:
tthanks for the points tho
The controller of Carla Vista Production has collected the following monthly expense data for analyzing the cost behavior of electricity costs.
Total Electricity Costs Total Machine Hours
January $2,650 200
February 3,100 320
March 3,570 450
April 4,750 695
May 3,160 500
June 4,910 750
July 4,130 630
August 3,810 580
September 5,060 680
October 4,390 610
November 3,290 320
December 8,920 770
(a) Determine the fixed and variable cost components using the high-low method.
(b) What electricity cost does the cost equation estimate for a level of activity of 450 machine hours?
(c) What electricity cost does the cost equation estimate for a level of activity of 750 machine hours?
Answer:
Results are below.
Explanation:
Giving the following information:
January $2,650 200
February 3,100 320
March 3,570 450
April 4,750 695
May 3,160 500
June 4,910 750
July 4,130 630
August 3,810 580
September 5,060 680
October 4,390 610
November 3,290 320
December 8,920 770
To calculate the variable and fixed components using the high-low method, we need to use the following formulas:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (8,920 - 2,650) / (770 - 200)
Variable cost per unit= $11
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 8,920 - (11*770)
Fixed costs= $450
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 2,650 - (11*200)
Fixed costs= $450
Now, the total cost if the machine hours equals 450:
Total cost= 11*450 + 450= $5,400
Finally, 750 hours:
Total cost= 11*750 + 450= $8,700
The 1-year, 2-year. 3-year,and 4-year risk-free zero rates are 4%, 4.5%, 4.75%, and 5% with continuous compounding. What is the forward rate for the one year period beginning in two years
Answer:
5.25%
Explanation:
Mathematically, investing at the 3-year risk-free zero rate should be the same as investing at a 2-year risk-free zero rate and one-year forward rate beginning in two years as shown thus
(1+S3)^3=(1+S2)^2*(1+y2y1)^1
S3=4.75%
S2=4.5%
y2y1=unknown
(1+4.75%)^3=(1+4.5%)^2*(1+y2y1)
1+y2y1=(1+4.75%)^3/(1+4.5%)^2
y2y1=((1+4.75%)^3/(1+4.5%)^2)-1
y2y1=5.25%
Stockholders' Equity: Transactions and Balance Sheet Presentation Torey Corporation was organized on April 1. with an authorization of 25,000 shares of six percent, $50 par value preferred stock and 200,000 shares of $5 par value common stock. During April, the following transactions affecting stockholders' equity occurred:
Apr. 1 Issued 80,000 shares of common stock at 540 cash per share:
3 Issued 2,000 shares of common stock to attorneys and promoters in exchange for their services in organizing the corporation. The services were valued at 3 531,000
8 Issued 3,000 shares of common stock in exchange for equipment with a fair market value of $55,000
20 Issued 6,000 shares of preferred stock for cash at $80 per share.
Required :
a. Prepare journal entries to record the above transactions.
b. Prepare the stockholders' equity section of the balance sheet at April 30.
Answer:
a. See the journal entries below.
b. Stockholders' equity = $3,766,000
Explanation:
Note: There are little errors in this question where dollar signs are used as figures. These are however corrected before answering the question. The complete question with the correction is therefore presented as follows:
Stockholders' Equity: Transactions and Balance Sheet Presentation Torey Corporation was organized on April 1. with an authorization of 25,000 shares of six percent, $50 par value preferred stock and 200,000 shares of $5 par value common stock. During April, the following transactions affecting stockholders' equity occurred:
Apr. 1 Issued 80,000 shares of common stock at $40 cash per share:
3 Issued 2,000 shares of common stock to attorneys and promoters in exchange for their services in organizing the corporation. The services were valued at $31,000
8 Issued 3,000 shares of common stock in exchange for equipment with a fair market value of $55,000
20 Issued 6,000 shares of preferred stock for cash at $80 per share.
Required :
a. Prepare journal entries to record the above transactions.
b. Prepare the stockholders' equity section of the balance sheet at April 30.
Explanation of the answers is now given as follows:
a. Prepare journal entries to record the above transactions.
Let APIC represents additional paid in capital, the journal entries can be prepared as follows:
Date Particulars Dr ($) Cr ($)
Apr. 1 Cash (80,000 * $40) 3,200,000
Common stock (80,000 * $5) 400,000
APIC - Common stock 2,800,000
(To record common stock issued in excess of par value.)
Apr. 3 Attorney and promoters service exp. 31,000
Common stock (2,000 * $5) 10,000
APIC - Common stock 21,000
(To record common stock issued to attorneys and promoters for services at a premium.)
Apr. 8 Equipment (Fair value) 55,000
Common stock (3,000 * 5) 15,000
APIC - Common stock 40,000
(To record common stock issued for equipment at a premium.)
Apr. 20 Cash (6,000 * $80) 480,000
Preferred stock (6,000 * $50) 300,000
APIC - Preferred stock 180,000
(To record preferred stock issued in excess of par value.)
b. Prepare the stockholders' equity section of the balance sheet at April 30.
Using the figures from the journal entries above, this can be prepared as follows:
Torey Corporation
Stockholders' Equity Section of the Balance Sheet
At April 30.
Details Amount ($)
Common stock ($400,000 + $10,000 + $15,000) 425,000
Preferred stock 300,000
APIC - Common stock ($2,800,000 + $21,000 + $40,000) 2,861,000
Additional paid in capital - Preferred stock 180,000
Stockholders' equity 3,766,000
a. Prepare journal entries to record the above transactions.
Date Particulars Dr ($) Cr ($)
Apr. 1 Cash (80,000 * $40) 3,200,000
Common stock (80,000 * $5) 400,000
APIC - Common stock 2,800,000
(To record common stock issued in excess of par value.)
Apr. 3 Attorney and promoters service exp. 31,000
Common stock (2,000 * $5) 10,000
APIC - Common stock 21,000
(To record common stock issued to attorneys and promoters for services at a premium.)
Apr. 8 Equipment (Fair value) 55,000
Common stock (3,000 * 5) 15,000
APIC - Common stock 40,000
(To record common stock issued for equipment at a premium.)
Apr. 20 Cash (6,000 * $80) 480,000
Preferred stock (6,000 * $50) 300,000
APIC - Preferred stock 180,000
(To record preferred stock issued in excess of par value.)
b. Prepare the stockholders' equity section of the balance sheet at April 30.
Torey Corporation
Stockholders' Equity Section of the Balance Sheet on April 30
Details Amount ($)
Common stock ($400,000 + $10,000 + $15,000) 425,000
Preferred stock 300,000
APIC - Common stock ($2,800,000 + $21,000 + $40,000) 2,861,000
Additional paid in capital - Preferred stock 180,000
Stockholders' equity 3,766,000
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please help me out with this problem
Answer: organizing
Explanation:
A customer has requested that Lewelling Corporation fill a special order for 2,200 units of product S47 for $38 a unit. While the product would be modified slightly for the special order, product S47's normal unit product cost is $16.90:
Direct materials $ 4.60
Direct labor $ 4.00
Variable manufacturing overhead $ 1.70
Fixed manufacturing overhead $ 6.60
Unit product cost $ 16.90
Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product S47 that would increase the variable costs by $1.90 per unit and that would require an investment of $16,000.00 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be:_________
a) $40,760
b) ($15,700)
c) $16,200
d) ($2,000)
One out of every ten jobs falls into the marketing category.
True
False
Answer:
true
Explanation:
one out of every ten jobs falls into the marketing category
A "Narrow bank" is a bank that only holds cash for its depositors -- specifically, in our example from class, a narrow bank would take the 1000 deposits of $1,000 each and simply deposit $1,000,000 in its Federal Reserve account. 1. Would this kind of bank be immune to bank runs and financial crises? 2. Why or why not?
Answer:
Theoretically, the bank should be immune to bank runs and financial crises. A narrow bank just receivers deposits and manages them. It does not borrow money, so the deposits should be safe and available when required by the customers. The problem with this type of banks is that the only way they can make a profit is by charging depositors a fee instead of paying interest rates.
Explanation:
All of the following are criticisms of the payback period criterion EXCEPT Group of answer choices time value of money is not accounted for. it deals with accounting profits as opposed to cash flows. None of the above; they are all criticisms of the payback period criteria. cash flows occurring after the payback are ignored.
Answer:
I dont know
Explanation:
Dman
According to the results of the 2019 expatriate survey, which of the following most accurately describes he current state of HRM efforts o staff international operations?
A. more women are accepting international assignments
B. people without family or kids are less successful in international assignments.
C. third-country nationals are quickly being replaced y localized expatriates.
Answer:
Option A is the accurate option.
Explanation:
Employers would be assigned to foreign employment, and therefore more women than ever are being sent overseas.The trend has always been rising throughout the Asia-Pacific region especially Northern America has been seeing substantial growth throughout this phenomenon or development.The other choices aren't related to the given scenario. So the above is the appropriate solution.
Petty Cash Fund Entries
Journalize the entries to record the following:
Check No. 12-375 is issued to establish a petty cash fund of $500.
The amount of cash in the petty cash fund is now $40. Check No. 12-476 is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $212; miscellaneous selling expense, $156; miscellaneous administrative expense, $61. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $500, record the discrepancy in the cash short and over account.)
Petty Cash Fund Entries
Journalize the entries to record the following:
Check No. 12-375 is issued to establish a petty cash fund of $500.
The amount of cash in the petty cash fund is now $40. Check No. 12-476 is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $212; miscellaneous selling expense, $156; miscellaneous administrative expense, $61. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $500, record the discrepancy in the cash short and over account.)
a. Journalize the entry to establish the petty cash fund. If an amount box does not require an entry, leave it blank.
b. Journalize the entry to replenish the petty cash fund. If an amount box does not require an entry, leave it blank.
Answer:
A. Dr Petty cash fund $500
Cr Cash $500
B. Dr Office supplies expenses $212
Dr miscellaneous selling expense $156
Dr miscellaneous administrative expense $61
Dr Cash short and over 31
Cr Petty cash fund $460
Dr Petty cash fund $460
Cr Cash $460
Explanation:
A. Preparation of the journal entry to establish the petty cash fund.
Dr Petty cash fund $500
Cr Cash $500
(To establish the petty cash fund)
B. Preparation of the journal entry to replenish the petty cash fund.
Dr Office supplies expenses $212
Dr miscellaneous selling expense $156
Dr miscellaneous administrative expense $61
Dr Cash short and over 31
($500-$212+$156+61+$40)
Cr Petty cash fund $460
($212+$156+$61+$31)
(To replenish the petty cash fund)
Dr Petty cash fund $460
($212+$156+$61+$31)
Cr Cash $460
Journalize the following transactions, using the allowance method of accounting for uncollectible receivables
Mar. 17: Received $2,700 from Keith MacPhearson and wrote off the remainder owed of $6,370 as uncollectible.
Mar. 17 July 29: Reinstated the account of Keith MacPhearson and received $6,370 cash in full payment.
Answer:
Journal entry
Date Account & Explanation Debit Credit
Mar 17. Cash $2,700
Allowance for doubtful accounts $6370
Account receivable $9,070
Jul 29 Account receivable $6,370
Allowance for doubtful accounts $6,370
(To record amount reinstated)
Cash $6,370
Account receivable $6,370
(To record amount received)
On January 1, 20X1, Como Company purchased 45% of the outstanding common shares of the Lite Company for $200,000. The net assets of Lite Company totaled $400,000. The inventory had a book value of $100,000 and a fair value of $120,000. Excess cost attributable to inventory is written off in 20X1. During 20X1, Lite Company earned $200,000 and declared a dividend of $40,000 for the year. The amount of the excess cost over book value attributable to inventory written off in 20X1 is: Multiple Choice $3,000. $7,500. $9,000. $4,500.
Answer:
C. $9,000
Explanation:
Cost of Inventory to Como company = $120,000 * 45%
Cost of Inventory to Como company = $54,000
Book value of Inventory attributable to Como company = $100,000 * 45%
Book value of Inventory attributable to Como company = $45,000
Excess of cost over book value which is written off in 20X1 is:
= Cost - Book value
= $54,000 - $45,000
= $9,000
Select the correct answer from each drop-down menu.
What techniques can you use to control inventory costs?
(economic order, Just in time, Carrying) ______ quantity indicates the minimum quantity of goods to reach before reordering inventory.
(Reliable Stock, Safety Stock, Scheduled Stock) _____ is the quantity of goods to keep as a buffer to utilize in times of emergency.
Answer:
First one: Economic Order; Second One: Safety Stock
Explanation:
I know the second one's right because it frequently shows up on PLATO modules for business. The first one is economic order according to investopedia.com. I looked up both carrying quantity and just in time quantity, too-- it seems as carrying quantity isn't a thing, and just in time quantity focuses on decreasing waste. See my comments on your question for quotes from the source.
Hope this helps you!!
Which are pathways in the Marketing, Sales, and Service career cluster? Select all that apply.
Marketing Information Management and Research
Marketing Communications and Promotion
Professional Sales and Marketing
Buying and Merchandising
Distribution and Logistics
E-Marketing
Management and Entrepreneurship
Software Design and Distribution
Answer:
All these apply
Marketing Information Management and Research
Marketing Communications and Promotion
Professional Sales and Marketing
Distribution and Logistics
E-Marketing
Explanation
Explanation:
All of the above mentioned choices fall in the pathways that come in the fields of Sales and Marketing. Marketing research is an important arena and so is the art of communicating and carrying out promotion tasks. Distribution is another big arena of sales and so is the trending field of E-Commerce where all these tools can be carried out online.
Marketing Information Management and Research, Marketing Communications and Promotion, Professional Sales and Marketing, Distribution and Logistics and E-Marketing.
What is E-Marketing?E-marketing, also known as digital marketing or online marketing, refers to the use of digital channels, such as the internet, social media, email, and mobile devices, to promote products or services and to engage with customers and prospects.
E-marketing provides businesses with a cost-effective way to reach a large audience and to engage with customers in real-time. Some of the most common e-marketing tactics include search engine optimization (SEO), pay-per-click (PPC) advertising, content marketing, social media marketing, email marketing, and mobile marketing.
Overall, e-marketing has become an essential component of modern marketing strategies as it provides businesses with a powerful way to reach and engage with customers in an increasingly digital world.
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FIN issues a $1000 par value bond that pays 7 precent annula interest and will mature in 14 years. The current market price for the bond is $950. Flotation costs will be 14 percent of market price. The company's marginal tax rate is 25%. What will be FIN's aafter tax cost of debt? g
Answer:
7.05 %
Explanation:
After tax cost of debt = interest x ( 1 - tax rate)
so, the initial step is to determine the interest rate :
The Bond Yield (i/yr) presents the market rate and this is what we want for our interest rate.
thus,
PV = - [$950 - ($950 x14%)] = - $817(remove floatation cost from market price)
FV = $1000
PMT = $1000 x 7 % = $70.00
P/YR = 1
N = 14
i/yr = ??
Using a financial calculator to input the values as above, the Bond Yield (i/yr) will be 9.40 %
therefore,
After tax cost of debt = 9.40 % x (1 - 0.25)
= 7.05 %
a manufacturing company has a beginning finished goods inventory of 15,100, raw material purchases of 18,500, cost of goods manufactured of 33,500 and an ending finished goods inventory of 18,300. the cost of goods sold for this company is
Answer:
$30,300
Explanation:
cost of goods sold = opening inventory + cost of goods manufactured - closing inventory
= $15,100 + $33,500 - $18,300
= $30,300
The cost of goods sold for this company is $30,300
Company Z is just starting to make a brand new product it has never made before. It has completed two units so far. The first unit took 19 hours to complete and the next unit took 15 hours. Based only on this information, what would be the estimate of the learning percentage in this process
Answer:
the learning percentage is 78.95%
Explanation:
The computation of the learning percentage is shown below;
= The next unit ÷ first unit
= 15 hours ÷ 19 hours
= 78.95%
We simply divided the two items with each other so that the correct percentage could arrive
hence, the learning percentage is 78.95%
You wish to earn a return of 13% on each of two stocks, X and Y. Stock X is expected to pay a dividend of $3 in the upcoming year while Stock Y is expected to pay a dividend of $4 in the upcoming year. The expected growth rate of dividends for both stocks is 7%. The intrinsic value of stock X______
a. cannot be calculated without knowing the market rate of return
b. will be greater than the intrinsic value of stock Y
c. will be the same as the intrinsic value of stock Y
d. will be less than the intrinsic value of stock Y
e. none of the above is a correct answer.
Answer: D. will be less than the intrinsic value of stock Y
Explanation:
Based on the information given above, the intrinsic value of Stock X will be calculated thus:
D1 = Dividend in next year = $3
g = growth rate = 7%
r = = 13%
Therefore, intrinsic value of Stock X will be:
= D1 / (r-g)
= 3 / (13% - 7%)
= 3/6%
= 3 / 0.06
= $50
Therefore, the intrinsic value of stock X is $50.
Intrinsic value of Stock Y will b calculated thus:
D1 = $4
g = 7%
r = 13%
Intrinsic value of Stock Y will be:
= D1 / (r-g)
= 4 / (13% - 7%)
= 4/6%
= 4 / 0.06
= 66.67
Intrinsic value of Stock Y is $66.67
Therefore, the intrinsic value of Stock X will be less than the intrinsic value of Stock Y
July 1 Purchased merchandise from Boden Company for $6,200 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $517. 3 Paid $105 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $1,500 for $1,900 cash. 9 Purchased merchandise from Leight Co. for $2,800 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. 11 Returned $800 of merchandise purchased on July 9 from Leight Co., and debited its account payable for that amount. 12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. 16 Paid the balance due to Boden Company within the discount period. 19 Sold merchandise that cost $1,200 to Art Co. for $1,800 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. 21 Gave a price reduction (allowance) of $300 to Art Co. for merchandise sold on July 19, and credited Art's accounts receivable for that amount. 24 Paid Leight Co. the balance due, net of discount. 30 Received the balance due from Art Co. for the invoice dated July 19, net of discount. 31 Sold merchandise that cost $5,000 to Creek Co. for $7,100 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.
Prepare journal entries to record the following merchandising transactions of Blink Company, which applies the perpetual inventory system. (Round your answers to 2 decimal places.)
Answer:
July 1
Dr Merchandise Inventory$6,200
Cr Accounts Payable $6,200
July 2
Dr Accounts Receivable $900
Cr Sales $900
Dr Costs of Goods Sold $517
Cr Merchandise Inventory $517
July 3
Dr Merchandise Inventory $105
Cr Cash $105
July 8
Dr Cash $1,900
Cr Sales $1,900
Dr Cost of Goods Sold $1,500
Cr Merchandise Inventory $1,500
July 9
Dr Merchandise Inventory $2,800
Cr Accounts Payable$2,800
July 11
Dr Accounts Payable $800
Cr Merchandise Inventory $800
July 12
Dr Cash $882
Dr Sales Discounts-$18
Cr Accounts Receivable $900
July 16
Dr Accounts Payable $6,200
Dr Merchandise Inventory $124
Cr Cash $6,076
July 19
Dr Accounts Receivable $1,800
Cr Sales $1,800
Dr Cost of Goods Sold $1,200
Cr Merchandise Inventory $1,200
July 21
Dr Sales Returns and allowances $300
Cr Accounts Receivable $300
July 24
Dr Accounts Payable $2,000
Cr Merchandise Inventory $40
Cr Cash -$1,960
July 30
Dr Cash $1,470
Cr Sales discounts $30
Cr Accounts receivable $1,500
July 31
Dr Accounts receivable $7,100
Cr Sales $7,100
Dr Cost of Goods Sold $5,000
Cr Merchandise Inventory $5,000
Explanation:
Preparation of journal entries to record merchandising transactions of Blink Company
July 1
Dr Merchandise Inventory$6,200
Cr Accounts Payable $6,200
July 2
Dr Accounts Receivable $900
Cr Sales $900
Dr Costs of Goods Sold $517
Cr Merchandise Inventory $517
July 3
Dr Merchandise Inventory $105
Cr Cash $105
July 8
Dr Cash $1,900
Cr Sales $1,900
Dr Cost of Goods Sold $1,500
Cr Merchandise Inventory $1,500
July 9
Dr Merchandise Inventory $2,800
Cr Accounts Payable $2,800
July 11
Dr Accounts Payable $800
Cr Merchandise Inventory $800
July 12
Dr Cash $882
($900-$18)
Dr Sales Discounts-$18
(900x.02=$18 sales disc.)
Cr Accounts Receivable $900
(882+18)
July 16
Dr Accounts Payable $6,200
Dr Merchandise Inventory $124
(6,200x.02)
Cr Cash $6,076
($6,200-$124)
July 19
Dr Accounts Receivable $1,800
Cr Sales $1,800
Dr Cost of Goods Sold $1,200
Cr Merchandise Inventory $1,200
July 21
Dr Sales Returns and allowances $300
Cr Accounts Receivable $300
July 24
Dr Accounts Payable $2,000
($2,800-$800)
Cr Merchandise Inventory $40
($2,000*2%)
Cr Cash -$1,960
($2,000-$40)
July 30
Dr Cash $1,470
($1,500-$30)
Sales discounts $30
($1,500x.02)
Cr Accounts receivable $1,500
($1,800-$300)
July 31
Dr Accounts receivable $7,100
Cr Sales $7,100
Dr Cost of Goods Sold $5,000
Cr Merchandise Inventory $5,000
Good Investments Company forecasts a $2.44 dividend for 2017, $2.62 dividend for 2018 and a $2.77 dividend for 2019 for Mountain Vacations Corporation. For all years after 2019, Good Investments Company forecasts that Mountain Vacations will pay a $2.94 dividend. Using the dividend discount valuation model determine the intrinsic value of Mountain Vacations Corporation, assuming the company's cost of equity capital is 7%. Select one:
a. $18.12
b. $24.48
c.$29.37
d. $27.91
Answer:
c.$29.37
Explanation:
First and foremost, it should be borne in mind that the intrinsic value of Mountain Vacations Corporation is the present value of its future dividends for the forecast period(2017-2019) plus the present value of dividend terminal value beyond the forecast period as shown thus:
Year 1 (2017) dividend $2.44
Year 2 (2018) dividend $2.62
Year 3 (2019) dividend $2.77
the terminal value of dividend=expected dividend per year after 2019/ cost of equity capital
expected dividend per year after 2019= $2.94
cost of equity capital =7%
terminal value=$2.94 /7%=$42.00
PV of future dividend=dividend/(1+cost of equity capital)^n
n is the year in which the future dividend is expected, it is 1 for 2017, 2 for 2018 , 3 for 2019 dividend and the terminal value(since the terminal value is already stated in 2019 terms)
intrinsic value of share=$2.44/(1+7%)^1+$2.62/(1+7%)^2+$2.77/(1+7%)^3+$42.00/(1+7%)^3
the intrinsic value of share=$41.11
It is obvious that the options are not correct
The question's inputs are wrong
2017 dividend should have been $1.74
2018 dividend should have been $1.87
2019 dividend should have been $1.98
dividend beyond 2019 should have been $2.10
terminal value=$2.10/7%=$30.00
intrinsic value of share=$1.74/(1+7%)^1+$1.87/(1+7%)^2+$1.98/(1+7%)^3+$30.00/(1+7%)^3
intrinsic value of share=$29.36(closest to c.$29.37)