Pacheco Inc. issued convertible bonds 10 years ago. Each bond had an initial term of 30 years, had a face value of $1,000, paid a coupon rate of 11%, and was convertible into 20 shares of Pacheco stock, which was selling for $30 per share at the time. Since then the price of Pacheco shares has risen to $65 and the interest rate has dropped to 8%. What is the least that each of the bonds is worth today

Answers

Answer 1

Answer:

$1,296.90

Explanation:

Calculation for What is the least that each of the bonds is worth today

First step is to calculate the stock each bond worth

Stock each bond worth=20 shares ×$65

Stock each bond worth= $1,300

Second step is to calculate what the bond is each worth using this formula

PV= PMT[PVFAk,n] + FV[PVFk,n]

Let plug in the formula

PV= $55[PVFA4,40] + $1,000[PVF4,40]

PV= $55(19.7928) + $1,000(.2083)

PV= $1,088.60 + $208.30

PV= $1,296.90

Therefore Based on the above calculation the least that each of the bonds is worth today is $1,296.90


Related Questions

Jan is a music teacher at an elementary school. She writes a play for her students to perform.
The next year, she learns that another elementary school copied and is performing the same
play. Jan never registered or published the play. Which of the following is true?
O A. Jan can sue for copyright infringement.
B
None of the above
O c.
Jan can sue for an injunction to stop the other school from performing her play
OD
Jan can't do anything since she didn't publish the play
O E.
Jan can't do anything since she didn't register her copyright

Answers

Answer:

E.

Explanation:

E. because if she report it people will say she listen to the play and copied it to make it look like her's.

The following account appears in the ledger prior to recognizing the jobs completed in January:
Work in Process
Balance, January 1 $85,800
Direct materials 115,000
Direct labor 140,000
Factory overhead 296,200
Jobs finished during January are summarized as follows:
Job 210 $182,500
Job 216 78,300
Job 224 $232,190
Job 230 67,250
a. Journalize the entry to record the jobs completed. If an amount box does not require an entry, leave it blank.
b. Determine the cost of the unfinished jobs at January 31.

Answers

Answer:

A. Dr Finished Goods $560,240.00

Cr Work In Process $560,240.00

B. $76,760.00

Explanation:

A. Preparation of the journal entry to record the jobs complete

First step is to Calculate the amount of total jobs completed

Job 210 182,500.00

Job 224 232,190.00

Job 216 78,300.00

Job 230 67,250.00

Cost of completed jobs 560,240.00

(182,500.00+232,190.00+78,300.00+67,250.00)

Now let prepare the Journal Entry

Dr Finished Goods $560,240.00

Cr Work In Process $560,240.00

B. Calculation to Determine the cost of the unfinished jobs at January 31.

First step is to calculate the work in process Amount

Balance at January 1 85,800.00

Add Direct Materials 115,000.00

Add Direct Labor 140,000.00

Add Factory Overhead 296,200.00

Balance in work in process 637,000.00

Now let determine the cost of the unfinished jobs at January 31

Balance in work in process 637,000.00

Less: Cost of completed jobs 560,240.00

Cost of unfinished jobs on January 31 76,760.00

Therefore the cost of the unfinished jobs at January 31 will be $76,760.00

The aggregate demand aggregate supply mode is quite useful tool for us to understand the economy. So far, we saw only one change at a time, however, in reality, there can be multiple shocks at the same time. The economy was in long run equilibrium. Assuming all else equal, world scientists collaborated to invent a vaccine for everyone to be safe from deadly virus, raising productivity. This makes consumers and businesses optimist about the economy. At the same time, commodity market, namely oil market is calm, maintaining a stable supply.
1. Given above scenario, what do you think will happen to the LRAS, SRAS and AD curves in each in short run?
2. And what would happen to price level and output in the economy?
3. What about in long run?

Answers

Answer:

Explained below

Explanation:

1) From the question, we can deduce that in the short run, there will likely be news of the discovery/invention of a super vaccine which will make the consumers and the businesses to be optimistic about the future of the economy. Therefore, this will in turn lead to an increase in consumption by consumers and thus also lead to an producers making an increase in investment.

2) From answer 1 above, since there is an increase in consumption as well as investment, this will in turn also lead to an increase in the aggregate demand of the economy. Whereas, we are told that the oil market is calm and therefore we can say it does not have an effect on the supply curve.

From the first image attached, increase in the aggregate demand led to an increase in price level from point P to P1 on the y-axis while output output level increased from point Y to point Y1 on the x-axis.

3) In the long run, due to the increase in demand in the short run that makes the supply curve shift to its right, it means the producers will have more of the goods produced. This will in turn reduce the price to its initial level and also increase the output level. From the second diagram, this will lead to a shift long run aggregate supply from LRAS to LRAS1 on the x-axis.

Categorize each of the following items as an S-strength, W-weakness, O-opportunity, or T-threat. " WALMART SWOT ANALYSIS"
Established Name Brand
Low Prices-Low Cost Leadership
Unfair Employment Practices
Pressures Suppliers on Cost
Recession
Other big box retailers-Target
Small Towns
International Markets
Products Made in China
Product Safety
Large Purchases –Buy in Bulk
Internet Retailing
Customer Base
No Urban Locations
Health Care for Employees
Global Presence
Price Competition
Product Quality
Customer service
Distribution/Logistics System
One Stop Shop
In 15 Countries—not in Europe except for United Kingdom
Sam’s Club
Minimum Wage Laws
Rising Labor Costs in China
Healthcare Costs
12% Lower Grocery Prices
Litigation by employees
Target Superior Merchandising Capability
Community Resistance
Home Delivery of Goods
Growth of Aldi Food Chain-Europe/North America
Poor Working Conditions
Dollar stores
Online Retailers

Answers

Answer:

Established Name Brand - S - Brings in more customers

Low Prices(Low Cost Leadership ) - S - Retaining customers

Unfair Employment Practices - T - Negatively affects the brand image

Pressures Suppliers on Cost - S - Have bargaining power on suppliers

Recession - T - Can bring down customer spending

Other big box retailers(Target) - T - Competition

Small Towns - O - Not many players

International Markets - O  - Growth prospects

Products Made in China - O - Lower prices

Product Safety - S - Retaining customers

Large Purchases (Buy in Bulk) - S - Cost savings

Internet Retailing - O - New growth opportunity

Customer Base - S - Large customer base

No Urban Locations - O - Opportunity to expand

Health Care for Employees - S - Employee satisfaction

Global Presence - S - Large customer base

Price Competition - O - Best in industry

Product Quality  - Retaining customers

Customer service- S - Retaining customers

Distribution/Logistics System - S - Lower costs

One Stop Shop  - S - Retaining customers

In 15 Countries—not in Europe except for United Kingdom  - Opportunity to grow in Europe

Sam’s Club - O - Customer loyalty

Minimum Wage Laws - T - Higher costs

Rising Labor Costs in China - T - Higher costs

Healthcare Costs - T - Higher costs

12% Lower Grocery Prices - S - Cost leadership

Litigation by employees - T - Negatively affects the brand image

Target Superior Merchandising Capability - O - Competition

Community Resistance - T - Negatively affects the brand image

Home Delivery of Goods - O - Growth prospects

Growth of Aldi Food Chain-Europe/North America - T - Competition

Poor Working Conditions - T - Negatively affects the brand image

Dollar stores - T - Competition

Online Retailers  - T - Competition

define hedge fund economics.​

Answers

Answer:

Hedge fund are financial partnerships that use pooled funds and employ different strategies to earn active returns for thier investors.. Hedge fund include long-short equity, market neutral, volatility arbitrage and merger arbitrage. They are generally only accessible to accredited investors

Cincinnati Exporters wants to raise $40 million to expand its business. To accomplish this, it plans to sell 22-year, $1,000 face value, semiannual coupon bonds. The bonds will be priced to yield 6.85 percent and coupon rate of 5.72 percent. What is the minimum number of bonds it must sell to raise the money it needs

Answers

Answer:

Minimum number of units to be issued = 45,791.4 units

Explanation:

The units of the bonds to be sold to raise the money equals to the price of the bonds divided by the sum to be raised

The price of a bond is the present value (PV) of the future cash inflows expected from the bond discounted using the yield to maturity.

These cash flows include interest payment and redemption value

The price of the bond can be calculated as follows:

Step 1

PV of interest payment

Semi-annual coupon rate = 5.72/2 = 2.86 %

Semi-annual Interest payment =( 2.86 %×$1000)= $28.6

Semi annual yield = 6.85%/2 = 3.42%

PV of interest payment  

= A ×(1- (1+r)^(-n))/r

A- interest payment, r- yield -3.42%, n- no of periods- 2 × 22 = 44 periods

= 28.6× (1-(1.0342)^(-44)/0.0342)= 645.82

 

Step 2  

PV of redemption value (RV)

PV = RV × (1+r)^(-n)

RV - redemption value- $1000, n- 7, r- 4.5%  

= 1,000 × (1+0.0342)^(-2×22)

= 1000 × 1.0342^(-44)= 227.7

Step 3

Price of bond = PV of interest payment + PV of RV

645.82 + 227.7= 873.525

Minimum number of units to be issued = $40 million/873.5= 45,791.4 units

 

Minimum number of units to be issued = 45,791.4 units

Dallas Company uses a job order costing system. The company's executives estimated that direct labor would be $4,590,000 (270,000 hours at $17/hour) and that factory overhead would be $1,570,000 for the current period. At the end of the period, the records show that there had been 250,000 hours of direct labor and $1,270,000 of actual overhead costs. Using direct labor hours as a base, what was the predetermined overhead rate? (Round your answer to two decimal places.)

Answers

Answer: $5.82 per direct labor hour

Explanation:

The predetermined overhead rate will be calculated as:

= Estimated overhead cost / Estimated direct labor hours

= 1570000/270000

= 5.82 per direct labor hour

Therefore, the predetermined overhead rate will be $5.82 per direct labor hour

Swifty Hardware reported cost of goods sold as follows. 2022 2021 Beginning inventory $ 31,000 $ 21,500 Cost of goods purchased 203,500 153,000 Cost of goods available for sale 234,500 174,500 Less: Ending inventory 35,000 31,000 Cost of goods sold $199,500 $143,500 Swifty made two errors: 1. 2021 ending inventory was overstated by $3,600. 2. 2022 ending inventory was understated by $6,550. Compute the correct cost of goods sold for each year. 2022 2021 Cost of goods sold

Answers

Answer:

See below

Explanation:

1. Correct amount of cost of goods sold 2022

= beginning inventory + cost of goods purchased - correct ending inventory

= $31,000 + $203,500 - ($35,000 - $6,550)

= $234,500 - $28,450

= $206,050

2.Correct amount of cost of goods sold 2021

= $21,500 + $153,000 - ($31,000 - $3,600)

= $139,900

The BX11160 company has provided its contribution format income statement for a given month. Sales (8,000 units) $ 440,000 Variable expenses 280,000 Contribution margin 160,000 Fixed expenses 103,500 Net operating income $ 56,500 If the BX11160 company sells 7,900 units next month, how much would its net operating income expected to be next month? (Do not round intermediate calculations.)

Answers

Answer:

Net operating income= $48,500

Explanation:

First, we need to calculate the unitary contribution margin:

Unitary contribution margin= 160,000 / 8,000

unitary contribution margin= $20

Now, the net income for 7,600 units:

Contribution margin= 7,600*20= 152,000

Fixed expenses= (103,500)

Net operating income= $48,500

Acquired $70,000 cash from the issue of common stock. Purchased $61,000 of inventory on account. Received goods purchased in Event 2 FOB shipping point; freight cost of $1,870 paid in cash. Sold inventory on account that cost $51,000 for $97,000. Freight cost on the goods sold in Event 4 was $1,020. The goods were shipped FOB destination. Cash was paid for the freight cost. Customer in Event 4 returned $4,540 worth of goods that had a cost of $2,320. Collected $79,540 cash from accounts receivable. Paid $56,200 cash on accounts payable. Paid $3,020 for advertising expense. Paid $4,050 cash for insurance expense. Required a. Which of these events affect period (selling and administrative) costs? Which result in product costs? If neither, label the transaction NA. b. Record each event in a horizontal statements model. The first event is recorded as an example. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash, and NA to indicate the element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.)

Answers

Answer:

Net Income = $33,820

Assets = Liabilities + Stockholders' Equity = $108,620

Explanation:

Note: This question is not complete as the introductory paragraph and the numbering are omitted. The complete question is therefore provided before answering the question as follows:

The Pet Store experienced the following events for the Year 1 accounting period:

1. Acquired $70,000 cash from the issue of common stock.

2. Purchased $61,000 of inventory on account.

3. Received goods purchased in Event 2 FOB shipping point; freight cost of $1,870 paid in cash.

4. Sold inventory on account that cost $51,000 for $97,000.

5. Freight cost on the goods sold in Event 4 was $1,020. The goods were shipped FOB destination. Cash was paid for the freight cost.

6. Customer in Event 4 returned $4,540 worth of goods that had a cost of $2,320.

7. Collected $79,540 cash from accounts receivable.

8. Paid $56,200 cash on accounts payable.

9. Paid $3,020 for advertising expense.

10. Paid $4,050 cash for insurance expense.

Required:

a. Which of these events affect period (selling and administrative) costs? Which result in product costs? If neither, label the transaction NA.

b. Record each event in a horizontal statements model. The first event is recorded as an example. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash, and NA to indicate the element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.)

The explanation of the answer is now given as follows:

a. Which of these events affect period (selling and administrative) costs? Which result in product costs? If neither, label the transaction NA.

Period costs are costs that include selling and asministrative costs which are not related to cost of producing a product.

Product costs can be described as costs of creating or producing a product that is meant for sale to customers.

Therefore, we have:

Event         Cost  

  1 .              NA

  2.              Product costs

  3.              Product costs

  4.              NA

  5.              NA

  6.              NA

  7.              NA

  8.              NA

  9.              Period costs

 10.              Period costs

b. Record each event in a horizontal statements model. The first event is recorded as an example. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash, and NA to indicate the element is not affected by the event. Enter any decreases to account balances and cash outflows with a minus sign.)

Note: See the attache excel file for the horizontal statements.

In the attached excel file, Retained Earnings is equal to the balance of the Net Income which is equal to $33,820.

Under the horizontal statements in the attached excel, an evidence to show that Assets is equal to Liabilities Plus Stockholders' Equity. That is:

Assets = Liabilities + Stockholders' Equity = $108,620

Lang Warehouses borrowed $196,401 from a bank and signed a note requiring 7 annual payments of $33,942 beginning one year from the date of the agreement. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Determine the interest rate implicit in this agreement. (Do not round intermediate calculations. Round interest rate to 1 decimal place.)

Answers

Answer:

5%

Explanation:

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

The interest rate implicit in the agreement can be determined by finding the internal rate of return.

Cash flow in year 0 =  $-196,401

Cash flow each year from year 1 to 7 = $33,942

IRR = 5%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

Amrik started a business on 1 January 2017 and purchased a machine costing $18 000. He decided to depreciate the machine at 20% per annum using the reducing (diminishing) balance method. No depreciation was to be charged in the year of disposal. The machine was up sold for \$13 30 300 on 1 July 2018. What was the profit or loss on the sale of the machine? A Loss $1100 B Loss $4700 C Profit $1780 D Profit $2500 ОА Ов Ос OD

Answers

Answer: A. Loss $1,100

Explanation:

Value at the end of the first year after depreciation:

= 18,000 * (1 - 20%)

= $14,400

No depreciation was charged in the year of sale which is 2018 so only a year of depreciation applies.

Profit (loss) = Sales price - Net book value

= 13,300 - 14,400

= -$1,100

Manufacturing uses normal costing for its​ job-costing system, which has two​ direct-cost categories​ (direct materials and direct manufacturing​ labor) and one​ indirect-cost category​ (manufacturing overhead). The following information is obtained for:_____.
• Total manufacturing costs, $8,450,000 • Manufacturing overhead allocated, $3,750,000 (allocated at a rate of 250% of direct manufacturing labor costs) • Work-in-process inventory on January 1, 2017, $390,000 • Cost of finished goods manufactured, $8,020,000
Requirements:
1. Use information in the first two bullet points to calculate​ (a) direct manufacturing labor costs in and​ (b) cost of direct materials used in .
2. Calculate the ending​ work-in-process inventory on December​ 31, 2011.

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Total manufacturing costs, $8,450,000

Manufacturing overhead allocated, $3,750,000 (allocated at a rate of 250% of direct manufacturing labor costs)

Work-in-process inventory on January 1, 2017, $390,000

Cost of finished goods manufactured, $8,020,000

First, we need to calculate the direct material and direct labor:

Direct labor= Manufacturing overhead allocated/2.5

Direct labor=  3,375,000 / 2.5

Direct labor= $1,350,000

Total manufacturing costs= Direct material + direct labor + allocated overhead

8,450,000= Direct material + 1,350,000 + 3,375,000

Direct material= $3,725,000

Finally, the ending work-in-process:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

8,020,000= 390,000 + 8,450,000 - Ending WIP

Ending WIP= $820,000

Cootributions of political institutions​

Answers

Answer:

Contributions of political institutions are diverse, and very important for any society.

Explanation:

Institutions contribute to the law and order of a nation. They also help define and determine the government structure of a place. Institutions also promote economic development by incentivizing investment if certain specific institutions are in place, like property rights enforcement, and impartial laws. In fact, this last aspects has been explored at length by economists like Amartya Sen and Daron Acemoglu.

As of December 31, 2021, Purdue Corporation reported the following: Cash dividends payable $ 29,000 Treasury stock 690,000 Paid-in capital—share repurchase 29,000 Common stock and other paid-in capital accounts 4,900,000 Retained earnings 3,900,000 During 2022, half of the treasury stock was resold for $258,000; net income was $690,000; cash dividends declared were $590,000; and small stock dividends declared and distributed were $418,000. What would shareholders' equity be as of December 31, 2022?

Answers

Answer:

$8,542,000

Explanation:

Stockholder's equity is computed as seen below;

Common stock and paid in capital

$4,900,000

Retained earnings

$3,900,000

Treasury stock

($258,000)

Total stockholder's equity

$8,542,000

Therefore the shareholder equity basis as of Dec 31 2022 is $8,542,000

The following transactions took place for Smart Solutions Inc. 2017 a. July 1 Loaned $71,000 to an employee of the company and received back a one-year, 9 percent note. b. Dec. 31 Accrued interest on the note. 2018 c. July 1 Received interest on the note. (No interest has been recorded since December 31.) d. July 1 Received principal on the note. Required: Prepare the journal entries that Smart Solutions Inc. would record for the above transactions.

Answers

Answer:

Jul 1, 2017

Dr Notes receivable $71,000

Cr Cash $71,000

Dec 31, 2017

Dr Interest receivable $3,197

Cr Interest revenue $3,197

Jul 1, 2018

Dr Cash $6,390

Cr Interest receivable $3,197

Cr Interest revenue $3,197

Jul 1, 2018

Dr Cash $71,000

Cr Notes receivable $71,000

Explanation:

Preparation of the journal entries that Smart Solutions Inc. would record

Jul 1, 2017

Dr Notes receivable $71,000

Cr Cash $71,000

(Being To record given loan to employee and receipt a note)

Dec 31, 2017

Dr Interest receivable $3,197

(71000*9%*6/12)

Cr Interest revenue $3,197

(Being To record interest accrued)

Jul 1, 2018

Dr Cash $6,390

(3197+3197)

Cr Interest receivable $3,197

Cr Interest revenue $3,197

(71000*9%*6/12)

(Being To record receipt of the interest on maturity date)

Jul 1, 2018

Dr Cash $71,000

Cr Notes receivable $71,000

(Being To record receipt of the full principal)

at the best answer for the question
The selling of goods and/or services to a customer is called

A.Service Industry
B.Food Service
C.Purchasing
D.Retail

Answers

Answer:

The correct answer is D. Retail.

Explanation:

Retail is the sale to the final consumer of goods and services. It is a sector formed by different branches (such as the food industry, the fashion industry, the home industry, etc.), which constitutes the last link in the supply chain that goes from the manufacturer to the consumer, it is In other words, it is the culmination of the process of production of goods and services, when they reach the consumer. This sale is usually carried out in stores, supermarkets, pharmacies, internet platforms and any other place where goods and services can be offered to final recipients.

function of the HR manager is concerned with employing people who
possess the necessary skills, knowledge, and aptitude
O Procurement
Development
O Motivation and compensation
STOS DE
TREI
O Integration​

Answers

Answer:

Integration.

Explanation:

Human resources management (HRM) can be defined as an art of managing, controlling and improving the number of people (employees or workers), functions, activities which are being used effectively and efficiently by an organization.

Thus, human resources managers are saddled with the responsibility of recruiting, managing and improving the welfare and working conditions of the employees working in an organization.

The function of the HR manager that is concerned with employing people who possess the necessary skills, knowledge, and aptitude is known as integration. This is usually achieved through a recruitment process, which typically involves advertising a vacant position and accepting applications (resumes) from applicants who meet the minimum requirements.

our community has a total of approximately 100,000 households. What percentage of households would be potential customers for The Shoe Hut? What percentage of households would be potential customers for Star's Coffee and Teas?

Answers

Answer:

Your community has a total of approximately 100,000 households. ... What percentage of households would be potential customers for Star's Coffee and Teas? approximately ... The Shoe Hut Star's Coffee and Teas has a lower barrier to entry

Explanation:

define private equity funds.​

Answers

Answer:

keeping it private and not letting anyone find. out about it or keepin it from people

yep what he said atop.

A company expects to pay a dividend of $3.50 per share one year from today. the dividend is expected to grow at 30 percent per year for three years. Thereafter, the dividend will grow at 4 percent per year in perpetuity. if the appropriate discount rate for the stock is 13 percent, what is the price of the stock today

Answers

Answer: $70

Explanation:

Price = Present value of year 1 dividend + Present value of year 2 dividend + Present value of year 3 dividend + Present value of year 4 dividend + Present value of year 4 price

Year 4 price = Year 4 dividend / ( Required return - Growth rate after 3 years)

= (3.50 * 1.30³ * 1.04) / (13% - 4%)

= $88.856

Price = (3.50 / (1 + 13%)) + ( (3.50 * 1.3) / 1.13²) + ( (3.50 * 1.3²) / 1.13³) + ( (3.50 * 1.3³) / 1.13⁴) + 88.856/1.13⁴

= $69.97

= $70

The customer gives you two $100 bills, two $50 bills, and one $20 bill for a clothing purchase totaling $312.69. (this is for customer service)

Answers

Answer:

It is more than enough money

Explanation:

Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $226,800 of raw materials on credit; issued materials to production of $219,000 of which $37,200 were indirect. Minstrel incurred a factory payroll of $164,400, of which $47,200 was indirect labor. Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. Minstrel's beginning and ending Work in Process Inventory are $17,900 and $31,800 respectively. Compute the cost of jobs transferred to Finished Goods Inventory.

Answers

Answer:

$460,900

Explanation:

The computation of the cost of jobs transferred to Finished Goods Inventory is shown below:

= beginning wip + Direct material + direct labor + manufacturing overhead - closing wip

= $17,900 + ($219,000 - $37,200) + ($164,400 - $47,200) + 150% of $117,200 - $31,800

= $17,900 + $181,800  + $117,200 + $175,800 - $31,800

= $460,900

Additional information: 1. New plant assets costing $80,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $46,000 and accumulated depreciation of $38,800 were sold for $1,200 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $20,824 was declared and paid during the year. Further analysis reveals that accounts payable pertain to merchandise creditors. Prepare a statement of cash flows for Waterway Industries using the direct method.

Answers

Answer:

Cashflow Statement

Note the direct method is required for this question. This means, we reconcile the Net Income to Operating Profit by adjusting for Non-Cash items included in Income and Changes in Working Capital.

Explanation:

I have attached the full question as an image below.

A company establishes a $2,050 petty cash fund on May 2. On May 30, the fund shows $868 in cash along with receipts for the following expenditures: transportation-in, $160; postage expenses, $589; and miscellaneous expenses, $440. The petty cashier could not account for a $7 overage in the fund. The company uses the perpetual system in accounting for merchandise inventory. Prepare the (1) May 2 entry to establish the fund, (2) May 30 entry to reimburse the fund [Hint: Credit Cash Over and Short for $7 and credit Cash for $1,182], and (3) June 1 entry to increase the fund to $2,400.

Answers

Answer:

Explanation:

Petty cash $2,050

Cash $2,050

Merchandise inventory $160

Postage Expense $589

Misc. expenses $440

Credit:

Cash over and short $7

Cash

Petty Cash $350

Cash $350

(2400-2050)

Margerit is reviewing a project with projected sales of 1,500 units a year, a cashflow of $40 a unit and a three-year project life. The initial cost of the project is$95,000. The relevant discount rate is 15%. Margerit has the option to abandonthe project after one year at which time she feels she could sell the project for$60,000. At what level of sales should she be willing to abandon the project

Answers

Answer: 923 units

Explanation:

Margerit should abandon the project in a year if the cashflow associated with the project brings in a present value of less than or equal to $60,000 in a year.

The present value in year one should be set at $60,000.

The cashflow for the two years at a present value of $60,000 would be:

60,000 = Amount * Present value interest factor of an annuity, 2 periods, 15%

60,000 = Amount * 1.6257

Amount = 60,000 / 1.6257

= $36,907

The above is the amount received per sales that she should abandon the project at.

In units this is:

= 36,907 / 40 per unit

= 923 units

Which of the following statements is correct regarding compensation expense for employers in publicly traded corporations?
a. Companies are only allowed to pay compensation of $1 million each to the top four executives.
b. The tax deductible compensation is limited to $2 million for the CEO and $1 million for the next four most highly paid employees.
c. Most performance-based compensation contracts in effect on November 2, 2017 are excluded from the limit.
d. Deductible compensation expense must be considered reasonable under the facts and circumstances of the employment.

Answers

Answer:

d. Deductible compensation expense must be considered reasonable under the facts and circumstances of the employment.

Explanation:

Elon Musks collected billions of dollars due to the excellent performance of Tesla's stocks. The compensation awarded to the CEO, CFO and maximum three other executives must be reasonable. Performance based compensation is not limited in an amount, instead they are limited on the number of people that receive them.

2) Ralph Wood, the Vice President for Marketing, is planning to fly in his eight area sales managers for a yearly planning session. Sarah Sayre, the Vice President for Finance, complains that the company is in a weak, cash position and looks to Bill for a technological alternative to the planning session planned by Ralph. What are other companies doing about this

Answers

Answer:

Web conferencing

Explanation:

The technological alternative that can be suggested by Bill considering the company's weak cash position would be the use of Web conferencing session to host the yearly planning session, because that way the cost of accommodation, flight and other logistics can be avoided and the aim of the yearly planning session will  still be achieved without having the company's finance suffering a lot.

Most companies are now adopting Web conferencing as a new and innovative means of holding meetings and very important sessions across their various offices simultaneously.

Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $433,200; materials of $418,000 and direct labor of $228,000. During the year Adams incurred $457,200 in materials costs, $451,600 in overhead costs and $232,000 in direct labor costs. Compute the amount of under- or overapplied overhead for the year.
a. $10,800 overapplied.
b. $18,400 overapplied.
c. $10,800 underapplied.
d. $18,400 underapplied.

Answers

Answer:

see below

Explanation:

Given that cost incurred = $457,200

Overhead

= $457,200 - $433,200

Meredith, Linda, and Peter are working together in a project team at a home appliances company. They had to select two out of five new products to be introduced in the next quarter. The team has a conflict over the choice of those two products. (a) Meredith, who is uncomfortable with confrontations, chooses to remain neutral by staying away from the argument. (b) Linda and Peter had a few arguments which were finally resolved when Linda gave in to Peter's demands.
In this situation, (a) Meredith used the____style of conflict resolution and (b) Linda used the_____style of conflict resolution.

Answers

Answer:

a) avoiding

b) accommodation

Explanation:

a) Meredith feels uncomfortable with confrontations, she chooses to remain neutral while staying away from the discussion, so it is correct to say that she used the style of avoiding conflict resolution, which occurs when individuals prefer to avoid a situation that can generate conflicts as in the case described in the matter, and so they prefer to act diplomatically avoiding confrontations and not giving opinions contrary to a given situation.

b) Linda used the accommodation style as she gave in to Peter's demands for the choice of products. In this style, the individual values ​​the relationship with the other individual above his personal opinion, and therefore gives up on maintaining the conflict because of a situation that is less important to him than the maintenance of the relationship.

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