Answer:
$60,000
Explanation:
Total Capital = $50,000 + $30,000 + $20,000
Total Capital = $100,000
Using goodwill method, total value = $40,000/20% = $200,000
Balance after investment = $100,000 + $40,000 = $140,000
Goodwill = Total value of goodwill - Balance after investment
Goodwill = $200,000 - $140,000
Goodwill = $60,000
So, $60,000 will be debited for goodwill.
A large computer software firm promised a client that it could deliver a new operating system on a tight deadline and put Keith in charge of the project. Which best explains why Keith qualifies for such a position?
a) He has a deep understanding of operating systems, is creative, works well with others, and can break down large projects into small pieces.
b) He is a good communicator and motivator, can keep a secret when dealing with confidential material, and can quickly learn about operating systems.
c) He has a deep understanding of network systems, is a problem solver who can make decisions on his own, and stays focused when working alone.
d) He has a deep understanding of website design, can quickly identify and fix errors, and can break down large projects into small pieces.
Answer:
d) He has a deep understanding of website design, can quickly identify and fix errors, and can break down large projects into small pieces.
Explanation:
For a large computer software company on a tight deadline who puts Keith in charge of the project, the best explanation as to why Keith is qualified for the job is that he has a deep understanding of website design, can quickly identify and fix errors, and can break down large projects into small pieces.
This skill is necessary to complete a job such s this successfully and on time without extra delays
Answer:
d) He has a deep understanding of website design, can quickly identify and fix errors, and can break down large projects into small pieces.
Explanation:
For a large computer software company on a tight deadline who puts Keith in charge of the project, the best explanation as to why Keith is qualified for the job is that he has a deep understanding of website design, can quickly identify and fix errors, and can break down large projects into small pieces.
This skill is necessary to complete a job such s this successfully and on time without extra delays
Explanation:
On January 1, 2020, Oregon Company issued eight-year bonds with a face value of $6,000,000 and a stated interest rate of 6%, payable semiannually onJune 30 and December 31. Determine the issue price of the bonds, assuming the bonds were sold to yield 8% (require use of present value tables):
Answer:
the issue price of the bond is $5,301,360
Explanation:
The computation of the issue price of the bond is shown below/;
= (semiannual interest payment × present value annuity (16,4%)) + (face value × present value factor (4%,16))
= (($6,000,000 × 6% ÷ 2) × 11.652) + ($6,000,000 × .534)
= $2,097,360 + $3,204,000
= $5,301,360
Hence, the issue price of the bond is $5,301,360
You invest $100 in a risky asset with an expected rate of return of 0.12 and a standard deviation of 0.15 and a T-bill with a rate of return of 0.05. What percentages of your money must be invested in the risk-free asset and the risky asset, respectively, to form a portfolio with a standard deviation of 0.09?
Answer:
The answer is "[tex]60\% \ in \ risky \ asset[/tex]"
Explanation:
[tex]\to 0.09 = x(0.15)\\\\\to x=\frac{0.09}{0.15}\\\\\to x=\frac{9}{15}\\\\\to x= 0.6[/tex]
[tex]\to x = 0.6 \approx 60\%[/tex] in the risky asset.
In early May 2017, an amendment to the annual budget for 2017 was approved by the city council for inflows and outflows in the Street Improvement Bond Debt Service Fund related to the bond issue. The debt service fund budget amendment provides for estimated other financing sources of $42,000 for the premium on bonds sold, estimated other financing sources of $10,000 for a transfer from the General Fund that will be used to help pay interest due on January 1, 2018, estimated revenues of $28,000 for accrued interest on bonds sold, and appropriations in the amount of the one interest payment of $40,000 to be made during 2017. (The payment that is due on July 1, 2017.)
Required: Record the budget for the Street Improvement Bond Debt Service Fund for year 2017. Budgetary entries have no effect on the government-wide accounting records.
Answer: See explanation
Explanation:
The budget for the Street Improvement Bond Debt Service Fund for year 2017 will be:
Debit: Estimated other financing sources - Premium on bonds = $42000
Debit: Estimated other financing sources - Transfer in - $10000
Debit: Estimated Revenue - Accrued Interest on bonds sold = $28000
Credit: Appropriation = $40000
Credit: Budgetary funds balance = $40000
On January 2, 2019, Denny Corp. enters into five-year finance lease for machinery with annual year-end payments of $15,000. The present value of the six annual lease payments is $65,000. Complete the necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answer:
Instead of Right of use asset, machinery account can alternatively be used.
Date General Journal Debit Credit
Jan 2 Right of use asset $65,000
Lease Liability $65,000
(To record lease)
During year 4, King Company made the following expenditures relating to its plant building: Continuing and frequent repairs $40,000 Repainted the plant building 10,000 Major improvements to the electrical wiring system 32,000 Partial replacement of roof tiles 14,000 How much should be charged to repair and maintenance expense in year 4
Answer: $64000
Explanation:
The amount that should be charged to the repair and maintenance expense in year 4 will be calculated thus:
Continuing and frequent repairs = $40,000
Add: Repainted the plant building = $10,000
Add: Partial replacement of roof tiles = $14,000
Repair and maintenance expense = $64,000
These transactions took place for Kingbird, Inc. 2016 May 1 Received a $3,000, 12-month, 6% note in exchange for an outstanding account receivable from R. Stoney. Dec. 31 Accrued interest revenue on the R. Stoney note. 2017 May 1 Received principal plus interest on the R. Stoney note. (No interest has been accrued since December 31, 2016.)
Requird:
a. Record the transactions in the general journal. The company does not make entries to accrue interest except at December 31.
b. Record journal entries in the order presented in the problem.)
Answer:Please see Explanation column for answers
Explanation:
The journal entry To record note received for accounts receivable.
Date Account Title $ Explanation Debit ($) Credit ($)
May 1, 2016 Note receivable 3,000
Accounts receivable - R. Stoney 3,000
The journal entry To record Interest accrued
Date Account Title $ Explanation Debit ($) Credit ($)
Dec 31, 2016 Interest receivable 120
Interest revenue 120
Calculation:
Interest receivable = Note amount x Interest rate x (Number of months from May 1, 2016 to December 31, 2016 / Number of months in a year)
= $3,000 x 6% x (8 / 12) = $120
The journal entry To record principal plus interest on the R. Stoney note.
Date Account Title $ Explanation Debit ($) Credit ($)
May 1, 2017 Cash 3,180
Note receivable 3,000
Interest receivable 120
Interest revenue 60
Calculation:
Interest revenue = Principal x Interest rate x (Number of months from January 1, 2017 to April 30, 2017 / Number of months in a year)
= $3,000 x 6% x (4 / 12) = $60
THESE ARE TRUE OR FALSE!! PLEASE HELP ASAP!!
1. Human resources are not very important in the production of goods.
2. There are over 120 million people employed in our work force.
3. A high school education and special training are no longer important in our work force.
4. There is only one major type of industry today: service-producing.
5. Most white-collar workers are employed in offices and stores.
6. Computers and information technology have little effect on blue-collar workers.
7. The demand for factors of production affects the availability of jobs.
8. Stages of the business cycle affect job opportunities.
9. The need for businesses to remain profitable and competitive has led to downsizing.
10. Immigrants have had little effect on our work force and economy until recent years.
Answer:
1. FALSE
2. TRUE
3. FALSE
4. FALSE
5. TRUE (I think)
6. TRUE
7. TRUE
8. TRUE
9. FALSE
10. FALSE
Crane and Miller Manufacturing is trying to determine the equivalent units for conversion costs with 10900 units of ending work in process at 80% completion and 31600 physical units. There are no beginning units in the department. Conversion costs occur evenly throughout the entire production period. What are the equivalent units for conversion costs for the current period?
Answer:
the equivalent units for the conversion cost is 29,420 units
Explanation:
The computation of the equivalent units for the conversion cost is shown below:
= units completed + ending inventory units
= (31,600 units - 10,900 units) + 80% of 10,900 units
= 20,700 units + 8,720 units
= 29,420 units
hence, the equivalent units for the conversion cost is 29,420 units
Both Bond Bill and Bond Ted have 6.2 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has 5 years to maturity, whereas Bond Ted has 25 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Bill? Of Bond Ted? Both bonds have a par value of $1000. If rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of Bond Bill be then? Of Bond Ted? Illustrate your answers by graphing bond prices versus YTM. What does this problem tell you about the interest rate risk of longer-term bonds?
Answer:
a-1. Percentage change in the price of Bond Bill = -8.07%
a-2. Percentage change in the price of Bond Ted = -21.12%
b-1. Percentage change in the price of Bond Bill = 8.94%
b-1. Percentage change in the price of Bond Ted = 30.77%
c. See the attached excel file for the graph.
d. It tells us that the longer the term of a bond, the greater will be its interest rate risk.
Explanation:
The price of each bond can be calculated using the following excel function:
Bond price = -PV(YTM, NPER, PMT, FV) ........... (1)
Where;
a-1. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Bill?
YTM = (6.2% + 2%) / Number of semiannuals in a year = 8.2% / 2 = 4.1%
NPER = Number of semiannuals to maturity = 5 * 2 = 10
PMT = Payment = Coupon rate * Face value = (6.2% / Number of semiannuals in a year) * 1000 = (6.2% / 2) * 1000 = $31
FV = Face value = Initial price of Bond Bill = $1,000
Substituting all the values into equation (1), we have:
New price of Bond Bill = -PV(4.1%, 10, 31, 1000)
Inputting =-PV(4.1%, 10, 31, 1000) in a cell in an excel file (Note: As done in the attached excel file), we have:
New price of Bond Bill = $919.29
Percentage change in the price of Bond Bill = ((New price of Bond Bill - Initial price of Bond Bill) / Initial price of Bond Bill) * 100 = (($919.29 - $1,000) / $1,000) * 100 = -8.07%
a-2. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Ted?
YTM = (6.2% + 2%) / Number of semiannuals in a year = 8.2% / 2 = 4.1%
NPER = Number of semiannuals to maturity = 25 * 2 = 50
PMT = Payment = Coupon rate * Face value = (6.2% / Number of semiannuals in a year) * 1000 = (6.2% / 2) * 1000 = $31
FV = Face value = Initial price of Bond Ted = $1,000
Substituting all the values into equation (1), we have:
New price of Bond Ted = -PV(4.1%, 50, 31, 1000)
Inputting =-PV(4.1%, 50, 31, 1000) in a cell in an excel file (Note: As done in the attached excel file), we have:
New price of Bond Ted = $788.81
Percentage change in the price of Bond Ted = ((New price of Bond Ted - Initial price of Bond Bill Ted) / Initial price of Bond Ted) * 100 = (($788.81 - $1,000) / $1,000) * 100 = -21.12%
b-1. If rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of Bond Bill be then?
YTM = (6.2% - 2%) / Number of semiannuals in a year = 4.2% / 2 = 2.1%
NPER = Number of semiannuals to maturity = 5 * 2 = 10
PMT = Payment = Coupon rate * Face value = (6.2% / Number of semiannuals in a year) * 1000 = (6.2% / 2) * 1000 = $31
FV = Face value = Initial price of Bond Bill = $1,000
Substituting all the values into equation (1), we have:
New price of Bond Bill = -PV(2.1%, 10, 31, 1000)
Inputting =-PV(2.1%, 10, 31, 1000) in a cell in an excel file (Note: As done in the attached excel file), we have:
New price of Bond Bill = $1,089.36
Percentage change in the price of Bond Bill = ((New price of Bond Bill - Initial price of Bond Bill) / Initial price of Bond Bill) * 100 = (($1,089.36 - $1,000) / $1,000) * 100 = 8.94%
b-2. If rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of Bond Ted be then?
rate = new YTM = (6.2% - 2%) / Number of semiannuals in a year = 4.2% / 2 = 2.1%
NPER = Number of semiannuals to maturity = 25 * 2 = 50
PMT = Payment = Coupon rate * Face value = (6.2% / Number of semiannuals in a year) * 1000 = (6.2% / 2) * 1000 = $31
FV = Face value = Initial price of Bond Ted = $1,000
Substituting all the values into equation (1), we have:
New price of Bond Ted = -PV(2.1%, 50, 31, 1000)
Inputting =-PV(2.1%, 50, 31, 1000) in a cell in an excel file (Note: As done in the attached excel file), we have:
New price of Bond Ted = $1,307.73
Percentage change in the price of Bond Ted = ((New price of Bond Ted - Initial price of Bond Bill Ted) / Initial price of Bond Ted) * 100 = (($1,307.73 - $1,000) / $1,000) * 100 = 30.77%
c. Illustrate your answers by graphing bond prices versus YTM.
Note: See the attached excel file for the graph.
d. What does this problem tell you about the interest rate risk of longer-term bonds?
It tells us that the longer the term of a bond, the greater will be its interest rate risk.
Which of these is an example of a labor law? O A. A restriction of the number of hours 16-year-olds can work
OB. A regulation against price fixing
OC. A limitation on the import of certain goods OD. Arequirement that products be tested for safety
Answer:
O A.
Explanation:
It says labor law..
O B.Talks about price fixing
O C.Talks about import of goods
O D.Talks about products being tested for safety
Labor law means working someone for a certain amount of hours or not paying them for the amount of hours worked.
Answer:
Explanation:
A restriction of the number of hours 16-year-olds can work
A company reports the following: Net income $410,000 Preferred dividends $60,000 Shares of common stock outstanding 50,000 Market price per share of common stock $84 Determine the company's price-earnings ratio (round to one decimal place).
Answer:
12
Explanation:
Calculation to determine Determine the company's price-earnings ratio
First step is to calculate the Earnings per Share
on Common Stock
Earnings per Share
on Common Stock = ($410,000 – $60,000) ÷ $50,000
Earnings per Share on Common Stock = $7
Now let calculate thecompany's price-earnings ratio
Price-Earnings Ratio = $84÷$7
Price-Earnings Ratio = 12
Therefore the company's price-earnings ratio is 12
What is the major difference
between an attraction and
entertainment?
• An attraction always requires a paid admission.
An attraction can be
part of a travel package.
An attraction is offered year-round.
An attraction offers retail services.
Answer:
The major difference between an attraction and entertainment is
An attraction can be part of a travel package.
Explanation:
Answer:
Answer: An attraction always requires a paid admission.
Explanation:
People in the Warehousing and Distribution center pathway create safety procedures that employees follow.
True
False
Answer:
The answer is true
Explanation:
People in the Warehousing and Distribution center pathway create safety procedures that employees follow. Thus, the given statement is true.
Why is safety important in warehouses?To assist warehousing staff in ensuring a safe work environment and reinforcing safe behavior while working in warehouses, a collection of legislative rules and industry best practices are known as "warehouse safety." Safety in the warehouse is crucial for preserving both human life and health. In order to keep everyone safe, good safety standards always maintain affordable and durable warehouses.
Accidents and fatalities can be greatly reduced if warehouse safety is given priority. Accidents at work injure the individuals involved, but they also have an impact on their families and coworkers. All employees are required to examine the entire range of implications connected with an occurrence in a safe, productive workplace. Everyone wants to get home safely and in good health at the end of the day.
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S Company reported net income for 2021 in the amount of $460,000. The company's financial statements also included the following: Increase in accounts receivable $ 83,000 Decrease in inventory 66,000 Increase in accounts payable 270,000 Depreciation expense 101,000 Gain on sale of land 142,000 What is net cash provided by operating activities under the indirect method
Answer:
$672,000
Explanation:
Net income
$460,000
Less:
Increase in accounts receivable
($83,000)
Add:
Decrease in inventory
$66,000
Add:
Increase in accounts payable
$270,000
Add:
Depreciation expense
$101,000
Less:
Gain on sale of land
($142,000)
Net cash
$672,000
Therefore, the net cash provided by operating activities under the indirect method is $672,000
According to the U.S. Bureau of Labor Statistics, there were 100,800 chefs/head cooks employed in the United States in 2010 and 320,900 food service managers. Those numbers were projected to decrease to 98,800 and 311,000 by 2020. Which job was facing the larger percent decrease
Answer:
Foodservice managers
Explanation:
Considering the data available in the question we have the following:
In 2010 => Chefs / head cooks - 100,800 personnel
In 2010 => Foodservice managers = 320,900 personnel
In 2020 => Chefs/head cooks = 98,800
In 2020 => Foodservice managers = 311,000
The difference in chefs/head cooks = 100,800 - 98,000 = 2,000
While that of Food service managers = 320,900 - 311,000 = 9,900
Hence, percentage for chefs / head cooks = 2000/108900 = 1.98% decrease
Percentage of fold service managers = 9900/320900 = 3.09% decrease.
Hence, in this case, Foodservice managers facing a larger percentage decrease.
"Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $1.12 per unit, and the variable labor cost is $1.9 per unit. a. What is the variable cost per unit? b. Suppose the company incurs fixed costs of $420,000 during a year in which total production is 189,000 units. What are the total costs for the year? c. If the selling price is $8.55 per unit, what is the NSI break-even on a cash basis? d. If depreciation is $94,500 per year, what is the accounting break-even point?"
Answer:
Night Shades Inc. (NSI)
a. The variable cost per unit is:
= $3.02.
b. The total costs for the year is:
= $990,780.
c. The NSI break-even on a cash basis is:
= $503,091.
d. The accounting break-even point is:
= $647,150.
Explanation:
a) Data and Calculations:
Variable costs per unit:
Materials = $1.12
Labor = 1.90
Total = $3.02
Total production units = 189,000
Total variable costs = $570,780
Fixed costs = $420,000
Total costs = $990,780
Per unit:
Selling price = $8.55
Variable costs 3.02
Contribution $5.53
Contribution margin in percentage = $5.53/$8.55 * 100 = 64.7%
Fixed costs on cash basis = FC - Depreciation = $325,500 ($420,000 - $94,500)
Break-even point on a cash basis = $325,5000/0.647 = $503,091
Break-even point in sales dollars = $420,000/0.647 = $647,150
At the high level of activity in November, 6000 machine hours were run and power costs were $18000. In April, a month of low activity, 1000 machine hours were run and power costs amounted to $9000. Using the high-low method, the estimated fixed cost element of power costs is $9000. $10800. $18000. $7200.
Answer:
The answer is "[tex]\bold{\$7,200}[/tex]"
Explanation:
Using the High - Low method:
[tex]\to Variable \ cost= \frac{\text{(Highest Activity cost - Lowest Activity cost)}}{\text{( Highest Activity Units - Lowest Activity Units)}}[/tex]
[tex]= \frac{(\$18000 - \$9000)}{(6000 - 1000)}\\\\= \frac{(\$9000)}{(5000)}\\\\= \frac{(\$9)}{(5)}\\\\= \$1.8/ unit[/tex]
[tex]\to Fixed \ Cost = \text{Highest Activity cost} - \text{(Variable cost per unit} \times \text{Highest Activity Units)}[/tex]
[tex]= \$18000 - ( \$1.8 \times 6000)\\\\= \$18000 - \$ 10800 \\\\= \$7,200[/tex]
Amanda has no credit history. She asks her friend Tricia for advice on how to establish credit history. What is the BEST advice Tricia can give to Amanda?
a) Apply for a home mortgage.
b) Open a bank line of credit.
c) Apply for a gasoline credit card.
d) Actively use a debit card.
The advice i will give to Amanda is to apply for a gasoline credit card because it will automatically create a credit history for her.
What is Credit history?A Credit history means the overall transaction done relating to use of one's credit card.
Having or obtaining any credit card helps to build a credit base if one do not have a credit history.
Hence, the best advice i will give to Amanda is to apply for a gasoline credit card because it will automatically create a credit history for her.
Therefore, the Option C is correct.
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Answer:apply for gasoline credit card
Explanation:
Eurocurrency is the euro, the common currency of Europe. is a time deposit of money in an international bank located in a country different from the country that issued the currency. is a demand deposit of money in an international bank located in a country different from the country that issued the currency. is either a time deposit of money in an international bank located in a country different from the country that issued the currency or a demand deposit of money in an international bank located in a country different from the country that issued the currency.
Answer:
is a time deposit of money in an international bank located in a country different from the country that issued the currency.
Explanation:
In economics or financial accounting, money can be defined as any asset used by an individual or business entity to make purchases of goods and services at a specific period of time.
Simply stated, money refers to any asset which can be used to purchase goods and services by customers.
This ultimately implies that, money is any recognized economic unit that is generally accepted as a medium of exchange for goods and services, as well as repayment of debts such as loans, taxes across the world.
Additionally, the rate at which an asset can be used to purchase any goods or services refers to its liquidity. Thus, liquidity is a quality or characteristics of money as a medium of exchange. Therefore, money is a generally accepted medium of exchange around the world.
The three (3) main functions of money all over the world are;
I. Medium of exchange.
II. Unit of account.
III. Store of value.
The European System of Central Banks (ESCB) which was established under the Treaty on European Union (TEU).
It comprises of the European Central Bank (ECB) and the national central banks of all the 27 European Union (EU) member states, irrespective of adopting the Euro (£) or not. This has helped the European Union (EU) member states to achieve tight corporations and memorandum of understanding (MOUs) such as TARGET2 (single payment system).
Eurocurrency is a time deposit of money in an international bank located in a country different from the country that issued the currency.
"You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.05 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio?"
Answer: 1.95
Explanation:
The beta for the other stock in the portfolio will be calculated thus:
Portfolio Beta = (BetaA × WeightA) + (BetaB × WeightB) + (BetaC × WeightC)
= (BetaA × 1/3) + (1.05 × 1/3) + (0 × 1/3)
= (BetaA × 1/3) + 0.35 + 0
Beta A = 1-0.35 × 3
Beta A = 0.65 × 3
Beta A = 1.95
In the market for Rolexianish luxury watches, consumers cannot tell the difference between high-quality and low-quality movement watches. Even though the two types of watches look the exact same, the performance of low-quality movement watches is much worse than that of high-quality movement watches. Buyers value a high-quality movement watch at $10,000 and a low-quality movement watch at $8,000. Recently, the FBWI (Federal Bureau of Watch Investigators) conducted to study and determined that 40% of watches in the market are high-quality movement, while 60% are low-quality movement. Note: Assume there are no consumer protection laws or outside rating agencies. When buying a watch, there is no way to know if it is high or low quality.
A. What is a buyer’s expected value of a luxury watch?
B. If sellers of high-quality watches have a reservation price of $8,000 and sellers of low- quality watches have a reservation price of $6,500, what happens in this market? Are there any equity(fairnesss) implications? Explain.
C. If sellers of high-quality watches have a reservation price of $9,000 and sellers of low quality watches have a reservation price of $7,500, what happens in this market? Are there any equity(fairness) implications? Explain.
D. Screening is an important tool when asymmetric information is present. Assume you’re in the market for a high-quality watch and the sellers’ reservation prices are $6,000 for a low-quality watch and $10,000 for a high-quality watch (and you, as the buyer, know these reservation prices). Can you screen out the low-quality watches by offering $6,000 and when the owner turns you down, you know she’s selling a high-quality watch? Will that work? Explain.
Answer:
the answer is b i just took the test got 100
Explanation:
Decentralizing Group of answer choices Is a trend that creates a head-quarter office Organizes business in independent business units Creates a more complex and less robust organization Decisions are made at the headquarters
These are selected 2022 transactions for Kingbird Corporation. Jan. 1 Purchased a copyright for $126,000. The copyright has a useful life of 6 years and a remaining legal life of 30 years. Mar. 1 Purchased a patent with an estimated useful life of 4 years and a legal life of 20 years for $56,400. Sept. 1 Purchased a small company and recorded goodwill of $150,000. Its useful life is indefinite. Prepare all adjusting entries at December 31 to record amortization required by the events.
Answer:
Dec. 31
Dr Amortization Expense $21,000
Cr Copyright $21,000
Dec. 31
Dr Amortization Expense $11,750
Cr Patent $11,750
Dec. 31
No entry
Explanation:
Preparation of all adjusting entries at December 31 to record amortization required by the events.
Dec. 31
Dr Amortization Expense $21,000
Cr Copyright $21,000
($126,000/6)
(To record amortization of copyright)
Dec. 31
Dr Amortization Expense $11,750
Cr Patent $11,750
(To record amortization of patent)
Dec. 31
No entry
(To record amortization of goodwill)
Calculation for 2020 amortization
First step is to calculate the Annual amortization
Annual amortization = $56,400/4
Annual amortization= $14,100
Now let calculate 2020 amortization
2020 amortization = $14,100 x 10/12
2020 amortization= $11,750
REMAX, a real estate company in Houston, performed an analysis of 500 Houston homes they sold last year. Each home was categorized by initial asking price and number of days the home was listed before it sold. Reference Equations Number of Homes: Initial Asking Priceless or equal than$200,000 Initial Asking Price> $200,000 Total Days Listed Until Sold less or equal than30 125 95 220 Days Listed Until Sold >30 115 165 280 Total 240 260 500 Find P(price > $200,000 and sold less or equal than 30 days). a. 0.3654 b. 0.1900 c. 0.2288 d. 0.4318
Answer: 0.1900
Explanation:
To find P(price > $200,000 and sold less or equal than 30 days), we have to look at the reference equation table and then look out for the point whereby price is greater than $200000 and sold less or equal than 30 days.
Based on the information given, this will be at a point where we've 95. Since the overall possible outcome is 500, then P(price > $200,000 and sold less or equal than 30 days) will be:
= 95/500
= 0.1900
The correct option is B.
gas company discovers that there is gas being consumed at an address that has no account and no record of a meter. The last record of an account at the address was 14 years ago. John Doe is living at the address. YYZ sues Mr, Doe and wins. of action was:a
Answer:
Quasi contract and unjust enrichment
Explanation:
The correct answer to the given question is Quasi contract and unjust enrichment.
Quasi contract is when no agreement is formed but a party is liable to the other.
Unjust enrichment is that a party benefits from the expense to the other party when there is no such agreement. which is unjust and the party who benefits is held liable.
The market consensus is that Analog Electronic Corporation has an ROE = 9%, has a beta of 1.25, and plans to maintain indefinitely its traditional plowback ratio of 2/3. This year’s earnings were $3 per share. The annual dividend was just paid. The consensus estimate of the coming year’s market return is 14%, and T-bills currently offer a 6% return.
a. Find the price at which Analog stock should sell.
b. Calculate the P/E ratio.
c. Calculate the present value of growth opportunities.
d. Suppose your research convinces you Analog will announce momentarily that it will immediately reduce its plowback ratio to 1/3. Find the intrinsic value of the stock. The market is still unaware of this decision. Explain why V0 no longer equals P0 and why
V0 is greater or less than P0.
Explanation:
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the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy sent to these address.Bcc stands for blind carbon copy which is similar to that of Cc except that the Email address of the recipients specified in this field do not appear in the received message header and the recipients in the To or Cc fields will not know that a copy so 1293.092
a. Stock Price is $10.60 at which Analog stock should sell.
b. Trailing P/E ratio is 3.53, and Leading P/E ratio is 3.33.
c. Present value of growth opportunities (PVGO) is -$9.28.
d . The intrinsic value of the stock is $15.85.
What is P/E ratio?The price-earnings ratio (P/E ratio, P/E, or PER) is the ratio of a company's share price to its earnings per share. The ratio is used to determine the value of a company and whether it is overvalued or undervalued.
From the question, we have the following:
ROE = 9%, b = beta = 1.25, pr = Plowback ratio = 2/3 = 0.67, dpr = dividend payout ratio = 1- pr = 1/3 = 0.33
e0 = This year’s earnings per share = $3
mr = The coming year’s market return = 14%
tr = T-bills return = 6%
a. The price at which Analog stock should sell is calculated as:-
P0 = d * (1 + g) / (r - g) …………………………. (1)
Where;
P0 = Stock Price
d = dividend per share = e0 / dpr = $3 / (1 / 3) = $1
g = Sustainable growth rate = ROE * pr = 9% * 2/3 = 0.06
rf = Risk free rate = Return on T-bills = 6%
b = Beta = 1.25
mr = Market return = 14%
r = Required return on Equity = rf + b * (mr - rf) = 6% + 1.25 * (14% - 6%) = 0.16
Substituting the values into equation (1), we have:
P0 = $1 * (1 + 0.06) / (0.16 – 0.06)
= $1 * 1.06 / 0.10
= $10.60
b. The P/E ratio is calculated as:-
P/E ratio can be Trailing P/E ratio or Leading P/E ratio as follows:
Trailing P/E ratio = P0/E0 = $10.60 / $3 = 3.53
Leading P/E ratio = P0/e1 ………………………………………. (2)
Where;
e1 = e0 * (1 + g) = $3 * (1 + 0.06) = 3.18
Substituting the values into equation (2), we have:
Leading P/E ratio = $10.60 / 3.18 = 3.33
c. The present value of growth opportunities is calculated as:-
P0 = e1 / r + Pvgo …………………………………… (3)
Where Pvgo denotes present value of growth opportunities.
Since already obtained P0, e1 and r in part a and b, we just substitute them equation (3) and solve for Pvgo, we have:
$10.60 = $3.18 / 0.16 + Pvgo
$10.60 = $19.875 + Pvgo
Pvgo = $10.60 - 19.875
Pvgo = -$9.28
d. The intrinsic value of the stock is calculated as:-
g = ROE * pr = 9% * (1 / 3) = 3%
dpr = 1 – pr = 1 - 1/3 = 2/3
d = dividend per share = e0 / dpr = $3 / (2 / 3) = $2
P0 = d * (1 + g) / (r - g) = $2 * (1 + 3%) / (0.16 – 3%)
P0 = $2 * (1 + 3%) / (0.16 – 3%)
P0 = $15.85
Therefore, the intrinsic value is $15.85 and the P/E ratio is 3.53 and 3.33 respectively.
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Wall Inc. forecasts that it will have the free cash flows (in millions) shown below. Assume the firm has zero non-operating assets. If the weighted average cost of capital is 14% and the free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3, what is the firm’s total corporate value, in millions? Do not round intermediate calculationsYear 1 2 3
Free cash flow -$20.00 $48.00 $50.50
Answer:
$461.38
Explanation:
Calculation to determine the firm’s total corporate value, in millions
First step is to find the growth rate
Using this formula
g = FCF3/FCF2 - 1
Let plug in the formula
g=($50.50/$48.00)-1
g=1.05208333-1
g= 5.208333%
Second step is to calculate the horizon or value at Year 2
Using this formula
Year 2 Horizon value = FCF3/(WACC – g)
Let plug in the formula
Year 2 Horizon value (HV2)=$50.50/(14%-5.208333%)
Year 2 Horizon value=$50.50/8.791667%
Year 2 Horizon value= $574.41
Now let calculate the Total corporate value using this formula
Total corporate value = FCF1/(1.14) +(FCF2 + HV2)/(1.14)^2
Let plug in the formula
Total corporate value=-$20/(1+.14)+($48+$574.39)/(1+.14)^2
Total corporate value=-$20/(1.14)+($48+$574.39)/(1.14)^2
Total corporate value=-$17.54+($622.41)/(1.14)^2
Total corporate value=-$17.54+$478.92
Total corporate value= $461.38
Therefore the firm’s total corporate value, in millions is $461.38
Bill's product manager continues to perform well in the market. However, a competing product is coming on strong and is looking to take over as the market share leader in the segment. Without sacrificing contribution margin, what can the Bill product manager do in order to improve upon the buying criteria, and thus potentially increase demand
Answer:
Raise the marketing spend to raise visibility.
Explanation:
In simple words, the best way for the company to hold their position in the market is to strengthen their customer base and this can be done by performing more promotion. By doing so, they can attract more people to use their product and the new company will have to try harder to capture the market.
Thus, the best option for the company is to raise promotional activities.
The expected average rate of return for a proposed investment of $5,190,000 in a fixed asset, using straight-line depreciation, with a useful life of 20 years, no residual value, and an expected total net income of $15,570,000 over the 20 years is (round to two decimal points).
Answer:
15%
Explanation:
Average rate of return = average net income / amount invested
average net income = $15,570,000 / 20 = $778,500
Amount invested = $5,190,000
$778,500 $5,190,000 = 0.15 = 15%