Answer:
1) 36,135 gallons
2) direct materials budget - chemicals
January February March
units to be produced 43,800 41,000 50,250
direct materials per unit 5.5 5.5 5.5
total direct materials 240,900 225,500 276,375
+ ending inventory 33,825 41,456 -
- beginning inventory -36,135 -33,825 -41,457
direct materials purchase 238,590 233,131 -
cost per unit $2 $2 $2
cost of direct materials $477,180 $466,262 -
3) ending inventory for December 6,570 drums
ending inventory for January 6,150 drums
ending inventory for February 7,538 drums
4) direct materials budget - drums
January February March
units to be produced 43,800 41,000 50,250
direct materials per unit 1 1 1
total direct materials 43,800 41,000 50,250
+ ending inventory 6,150 7,538 -
- beginning inventory -6,570 -6,150 -7,538
direct materials purchase 43,380 42,388 -
cost per unit $1.60 $1.60 $1.60
cost of direct materials $69,408 $67,820.80 -
Explanation:
planned production:
January 43,800
February 41,000
March 50,250
each drum requires 5.5 gallons of chemicals and 1 plastic drum
Physical Units Work in process, beginning 0 Completed and transferred out 89000 Work in process, ending 6000 Materials are added at the beginning of the process. What is the total number of equivalent units for materials during the period?
Answer:
Total equivalent units= 95,000 units
Explanation:
Giving the following information:
Work in process, beginning 0
Completed and transferred out 89,000
Work in process, ending 6,000
Materials are added at the beginning of the process.
Because the materials are added at the beginning of the process, the equivalent units are the same as units started and completed.
Total equivalent units= 89,000 + 6,000= 95,000 units
The intrinsic value of a company’s stock, also known as its fundamental value, refers to the stock’s "true" value based on accurate risk and return data. The value perceived by stock market investors determines the market price of a stock. A stock trading at a price below its intrinsic value is considered to be undervalued. A stock trading at a price above its intrinsic value is considered to be overvalued.
The goal of the managers of a publicly owned company should be to maximize the firm's_______
An analyst with a leading investment bank tracks the stock of Mandalays Inc. According to her estimations, the value of Mandalays Inc.'s stock should be $37.32 per share, but Mandalays Inc.'s stock is trading at $45.59 per share on the New York Stock Exchange (NYSE). Considering the analyst's expectations, the stock is currently:
a. in equilibrium
b. undervalued
c. overvalued
Answer:
The goal of the managers of a publicly owned company should be to maximize the firm's INTRINSIC VALUE.
The board of directors' and upper management's main goal is to maximize the corporation's value in order to maximize stockholders' wealth.
An analyst with a leading investment bank tracks the stock of Mandalays Inc. According to her estimations, the value of Mandalays Inc.'s stock should be $37.32 per share, but Mandalays Inc.'s stock is trading at $45.59 per share on the New York Stock Exchange (NYSE). Considering the analyst's expectations, the stock is currently:
c. overvaluedIf the analyst considers that the stock's intrinsic price is $37.32 and the market price is $45.59, this means that currently the stock is overvalued.
A firm in a purely competitive industry is currently producing 1,200 units per day at a total cost of $700. If the firm produced 1,000 units per day, its total cost would be $450, and if it produced 700 units per day, its total cost would be $425. Instructions: Round your answers to 2 decimal places. a. What are the firm's ATC at these three levels of production
Answer:
Explanation:
The average total cost is calculated as the total cost divided by the number of outputs. The firm's ATC at these three levels of production will be:
1. 1,200 units per day at a total cost of $700.
ATC = Total cost/output
ATC = $700/1200
ATC = $0.58
2. If the firm produced 1,000 units per day, its total cost would be $450.
ATC = Total cost/output
ATC = $450/1000
ATC = $0.45
3. If it produced 700 units per day, its total cost would be $425.
ATC = Total cost/output
ATC = $425/700
ATC = $0.61
There is often a trademinusoff between A. limited and unlimited resources. B. economic efficiency and economic equity. C. voluntary and involuntary exchanges. D. productive efficiency and allocative efficiency.
Answer:
B. economic efficiency and economic equity.
Explanation:
These two systems economic efficiency and economic equity are particularly been seen or used as a criteria that required in system of allocation. Efficiency here are known to be trade off which are particularly affected by a lot different policies. An example is seen between equity and efficiency can be explained with government environmental policy. Whoever benefits most in natural resources exploitation and at the cost, is a policy question that needs to be answered. The effect from these exploitation fall on the masses directly when carefully observed.
In a supermarket, a vendor's restocking the shelves every Monday morning is an example of:________
a. safety stock replenishment
b. economic order quantities
c. reorder points
d. fixed order interval
e. blanket ordering
Answer:
it may be fixed order interval because the vendor is restocking every monday only.
explain the link between scarcity and opportunity cost.
Answer:
Resources are limited in supply(scarcity) while wants are unlimited thus one has to make a choice to satisfy a need.Some choices are forgone(opportunity cost)
O'Brian's Department Stores allocates the costs of the Personnel and Payroll departments to three retail sales departments, Housewares, Clothing, and Furniture. In addition to providing services to the operating departments, Personnel and Payroll provide services to each other. O'Brian's allocates Personnel Department costs on the basis of the number of employees and Payroll Department costs on the basis of gross payroll. Cost and allocation information for June is as follows:
Personnel Payroll Housewares Clothing Furniture
Direct department cost $ 7,800 $ 3,200 $ 12,200 $ 20,000 $ 16,750
Number of employees 5 4 8 16 4
Gross payroll $ 6,000 $ 3,300 $ 10,600 $ 17,400 $ 8,100
(a) Determine the percentage of total Personnel Department services that was provided to the Payroll Department. (Round your answer to one decimal place.)
(b) Determine the percentage of total Payroll Department services that was provided to the Personnel Department. (Round your answer one decimal place.)
(c) Prepare a schedule showing Personnel Department and Payroll Department cost allocations to the operating departments, assuming O'Brian's uses the step method.
Do not round until your final answers. Round answers to the nearest dollar.
Service Departments Producing Departments
Payroll Personnel Housewares Clothing Furniture
Total costs
Answer:
a. Department No of employee
Payroll 4
Housewares 8
Clothing 16
Furniture 4
Total 32
Personnel department cost allocated to payroll department
= (Direct department cost of personnel * No of payroll employees) / Total no of employees
= $7,800 * 4/32
=$975
Percentage of total personnel department services that was provided to the payroll Department is
= Cost allocated to payroll department/ Personnel direct cost
= $975/$7,800
=0.125
=12.5%
b. Department Gross payroll $
Personnel 6,000
Housewares 10,600
Clothing 17,400
Furniture 8,100
Total 42,000
Payroll department cost allocated to personnel department
= (Direct department cost of payroll * Gross payroll of personnel department) / Total gross payroll
= $3,200 * $6,000 / $42,100
=$456
Percentage of total payroll department services that was provided to the Personnel Department is
= Cost allocated to personnel department / Payroll direct cost
=$456 / $3,200
= 0.143
=14.3%
c. Allocation of personnel department cost is on basis of no of employee
Department No of Employee Proportion Percentage
Payroll 4 4/32 12.50%
Housewares 8 8/32 25%
Clothing 16 16/32 50%
Furniture 4 4/32 12.50%
Total 32
Allocation of personnel department cost is on basis of Gross payroll
Department Gross payroll Proportion Percentage
Housewares $10,600 10,600/36,100 29.36%
Clothing $17,400 17,400/36,100 48.20%
Furniture $8,100 8,100/36,100 22.44%
Total $36,100
Schedule showing Personnel Department and Payroll Department cost allocations to the operating departments
Service Dept. Producing Dept.
Personnel Payroll Housewares Clothing Furniture
Direct dept $7,800 $3,200 $12,700 $20,000 $16,750
cost
Allocation ($7,800) $975 $1,950 $3,900 $975
of personnel
cost
Allocation - ($4,175) $1,226 $2,012 $937
of Payroll
cost
Total $0 $0 $15,376 $25,912 $18,662
Suppose the price index was 105 in 2017, 126 in 2018, and the inflation rate was lower between 2018 and 2019 than it was between 2017 and 2018. This means that
Answer:
These are the answers to the question:
a. the price index in 2019 was lower than 126.0.
b. the price index in 2019 was lower than 147.0.
c. the price index in 2019 was lower than 151.2.
d. the inflation rate between 2018 and 2019 was lower than 1.2 percent.
And this is the correct answer:
b. the price index in 2019 was lower than 147.0.
Explanation:
We can see that the price index rose by 21 units from 105 in 2017 to 126 in 2018.
If the inflation rate was lower between 2018 and 2019, it means that the price index rose by less than 21 units during this period.
Because 126 + 21 = 147, we can be certain that the price index in 2019 was lower than 147.
The management function that is concerned with monitoring activities to ensure that they are being accomplished as planned and correcting any significant deviations is
Answer:
Control
Explanation:
The management functions are:
-Plan refers to setting goals and establish the strategies that have to be implemented to accomplish them.
-Organize refers to defining the company structure and the best way to implement the plan.
-Lead refers to getting employees to support and work towards the goals and keep them motivated.
-Control refers to making a follow up of the strategies implemented, measuring the performance to find out if the goals are going to be accomplished and take measures when needed.
According to this, the answer is that the management function that is concerned with monitoring activities to ensure that they are being accomplished as planned and correcting any significant deviations is control because it is the function that measures the results and analyze if the goals can be achieved.
Joe was moving from California to Michigan to attend college. Joe answered an advertisement on the web and signed a lease for an apartment without ever seeing the apartment. Joe found the premises filled with an abundance of debris, rats and insects. Also, the plumbing in the apartment was inoperable. These conditions:________
Answer:
Most likely constitute a breach of the implied warranty of habitability.
Explanation:
A warranty of habitability specifies that a property for rent is up to standard, that is it meets basic living and safety standards. This warranty is only implied for leases and rentals of residential properties. Since Joe found the premises filled with an abundance of debris, rats and insects and the plumbing in the apartment inoperable, then this property is not up to standard and therefore constitute a breach of the implied warranty of habitability
A company was formed with $60,000 cash contributed by its owners in exchange for common stock. The company borrowed $30,000 from a bank. The company purchased $10,000 of inventory and paid cash for it. The company also purchased $70,000 of equipment by paying $10,000 in cash and issuing a note for the remainder.
Use the information above to answer the following question. What is the amount of the total assets to be reported on the balance sheet?
a. $150,000.
b. $160,000.
c. $90,000.
d. $80,000.
Patton Company purchased $1,500,000 of 10% bonds of Scott Company on January 1, 2021, paying $1,410,375. The bonds mature January 1, 2031; interest is payable each July 1 and January 1. The discount of $89,625 provides an effective yield of 11%. Patton Company uses the effective-interest method and plans to hold these bonds to maturity.*USE T ACCOUNTS
On July 1, 2018, Patton Company should increase its Debt Investments account for the Scott Company bonds by?
For the year ended December 31, 2018, Patton Company should report interest revenue from the Scott Company bonds of?
Answer:
On July 1, 2018, Patton Company should increase its Debt Investments account for the Scott Company bonds by?
I will assume that the bonds were purchased on January 2018 and not January 2021.
The journal entry to record the purchase of the bonds was:
January 1, 2018, investment on bonds
Dr Debt Investment 1,500,000
Cr Cash 1,410,375
Cr Discount on Debt Investment 89,625
the journal entry to record the interests received on July 1, 2018 would be:
Dr Cash 75,000
Dr Discount on Debt Investment 2,570.63
Cr Interest revenue 77,570.63
Discount on Debt Investment = ($1,410,375 x 5.5%) - ($1,500,000 x 5%) = $77,570.63 - $75,000 = $2,570.63
Patton company should increase its Debt investment by $2,570.63 (amortized discount).
For the year ended December 31, 2018, Patton Company should report interest revenue from the Scott Company bonds of?
The journal entry to record accrued interests:
Dr Interest receivable 75,000
Dr Discount on Debt Investment 2,712
Cr Interest revenue 77,712
Discount on Debt Investment = ($1,412,945.63 x 5.5%) - ($1,500,000 x 5%) = $77,712 - $75,000 = $2,712
Total interest revenue for 2018 = $77,570.63 + $77,712 = $155,282.63
A portfolio has 30% of its value in IBM shares and the rest in Microsoft (MSFT). The volatility of IBM and MSFT are 35% and 30%, respectively, and the correlation between IBM and MSFT is 0.5. What is the standard deviation of the portfolio
Answer:
30.51%
Explanation:
The computation of the standard deviation is shown below:
Data provided in the question
Weightage in IBM = 30% = WI
Weightage in MFST = 100 - 30% = 70% = WM
The Volatility in IBM = 35% = VI
The Volatility in MFST = 30% = VM
Correlation = 0.5 = C
Based on the above information
The standard deviation is
[tex]= \sqrt{(VI^2\times WI^2) + (VM^2 \times WM^2) + (2 \times VI \times WI \times VM \times WM \times C)}[/tex]
[tex]= \sqrt{(0.35^2\times 0.30^2) + (0.35^2 \times 0.70^2) + (2 \times 0.35 \times 0.30\times 0.30 \times 0.70 \times 0.5)}[/tex]
= 30.51%
Which of the following accounts are normally reported as current liabilities on a classified balance sheet?
a. Accounts Payable and Prepaid Insurance
b. Interest Payable and Interest Receivable
c. Capital Stock and Accounts Payable
d. Income Taxes Payable and Salaries Payable
Answer:
d. Income Taxes Payable and Salaries Payable
Explanation:
Current liabilities are short term obligations of an entity due for repayment within a period of 12 months.
From the options given d. Income Taxes Payable and Salaries Payable both presents current liabilities.
On January 1 of year 1, Arthur and Aretha Franklin purchased a home for $1.5 million by paying $200,000 down and borrowing the remaining $1.3 million with a 7 percent loan secured by the home.
a. What is the amount of the interest expense the Franklins may deduct in year 1?
b. Assume that in year 2, the Franklins pay off the entire loan but at the beginning of year 3, they borrow $300,000 secured by the home at a 7 percent rate. They make interest-only payments on the loan during the year. What amount of
interest expense may the Franklins deduct in year 3 on this loan (the Franklins do not use the loan proceeds to improve the home)?
c. Assume the same facts as in (b), except that the Franklins borrow $80,000 secured by their home. What amount of interest expense may the Franklins deduct in year 3 on this loan (the Franklins do not use the loan proceeds to improve the home)?
Answer:
a. What is the amount of the interest expense the Franklins may deduct in year 1?
this will depend on the total interest paid during the year, since we are not told how long their mortgage is, we cannot know exactly how much interest expense they will pay. Generally mortgages require monthly payments, so I prepared a simulated amortization schedule for the first year assuming that the mortgage lasts 30 years and a monthly payment of $8,648.93.
year beg. scheduled principal interest ending
balance payment balance
1 1300000 8649 1066 7583 1298934
2 1298934 8649 1072 7577 1297863
3 1297863 8649 1078 7571 1296785
4 1296785 8649 1084 7565 1295700
5 1295700 8649 1091 7558 1294609
6 1294609 8649 1097 7552 1293512
7 1293512 8649 1103 7545 1292409
8 1292409 8649 1110 7539 1291299
9 1291299 8649 1116 7533 1290183
10 1290183 8649 1123 7526 1289060
11 1289060 8649 1129 7520 1287931
12 1287931 8649 1136 7513 1286795
total interest $90,582
The total interest that can be deducted in this case would be $90,582 during year 1.b. Assume that in year 2, the Franklins pay off the entire loan but at the beginning of year 3, they borrow $300,000 secured by the home at a 7 percent rate. They make interest-only payments on the loan during the year. What amount of interest expense may the Franklins deduct in year 3 on this loan (the Franklins do not use the loan proceeds to improve the home)?
$0, interests from home equity loans used for personal expenses are not deductible.c. Assume the same facts as in (b), except that the Franklins borrow $80,000 secured by their home. What amount of interest expense may the Franklins deduct in year 3 on this loan (the Franklins do not use the loan proceeds to improve the home)?
$0, interests from home equity loans used for personal expenses are not deductible.Explanation:
Now we have country E, an emerging country. Country E starts off with a GDP per capita of $4,000, and is experiencing a GDP per capita growth rate of 12%, how many years GDP per capita will be double for country E?
Answer:
6 years
Explanation:
The rule of 72 would be used to determine the number of years it would take GDP per capita to double
Rule of 72 = 72 / GDP per capita growth rate
72 / 12 = 6 years
I hope my answer helps you
Contemporary researchers focus on how entrepreneurs________ a. build a tolerance for uncertainty b. think and act c. develop a desire for achievement d. develop an affinity for taking risks
Answer:
b. think and act
Explanation:
Contemporary researchers are those that focus on what is happening currently or happening actively. It is a recent study of occurrences rather than looking at activities in the distant past.
As contemporary researchers focus on the present, they will focus on how enterprenures think and act daily as a way to learn current trends in the industry.
Contemporary research tends to provide information that can be used by consumers to improve their everyday activities and processes.
1. Consider the following information about three stocks: State of Economy Probability of State of Economy Rate of Return If State Occurs Stock A Stock B Stock C Boom .25 .21 .36 .55 Normal .60 .17 .13 .09 Bust .15 .00 −.28 −.45 a. If your portfolio is invested 40 percent each in A and B and 20 percent in C, what is the portfolio expected return? The variance? The standard deviation? b. If the expected T-bill rate is 3.80 percent, what is the expected risk premium on the portfolio? c. If the expected inflation rate is 3.50 percent, what are the approximate and exact expected real returns on the portfolio? What are the approximate and exact expected real risk premiums on the portfolio?
Answer and Explanation:
The computation is shown below:
a. For expected return
As we know that
Expected return = Probability × Rate of return
The same formula applies for all of the given stock
For Boom it is
= 0.4(0.21) + 0.4(0.36) + 0.2(0.55)
= 0.33
For Normal it is
= 0.4(0.17) + 0.4(0.13) + 0.2(0.09)
= 0.13
For Bust
= 0.4(0.00) + 0.4(-0.28) + 0.2(-0.45)
= - 0.20
So, the expected rate of return is
= 0.25(0.33) + 0.60(0.13) + 0.15(-0.20)
= 0.1305
Now the variance is
= 0.25 × (0.33 - 0.1305)^2 + 0.60 × (0.13 - 0.1305)^2+ 0.15 × (-0.20 – 0.1305)^2
= 0.053
Now the standard deviation is
= [0.053]^1/2
= 0.23
b. Risk premium is
= E(Rp) – Rf
= 0.1305 - 0.038
= 0.0925
c. Expected real return is
= 0.1305 - 0.035
= 0.0955
The Expected real risk premium is
= risk premium - inflation rate
= 0.0955 - 0.035
= 0.0605
We simply applied the above formulas
Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows. Cuenca Company is considering the purchase of new equipment that will speed up the process for producing flash drives. The equipment will cost $7,200,000 and have a life of 5 years with no expected salvage value. The expected cash flows associated with the project follow: Year Cash Revenues Cash Expenses 1 $8,000,000 $6,000,000 2 8,000,000 6,000,000 3 8,000,000 6,000,000 4 8,000,000 6,000,000 5 8,000,000 6,000,000 Kathy Shorts is evaluating an investment in an information system that will save $240,000 per year. She estimates that the system will last 10 years. The system will cost $1,248,000. Her company's cost of capital is 10%. Elmo Enterprises just announced that a new plant would be built in Helper, Utah. Elmo told its stockholders that the plant has an expected life of 15 years and an expected IRR equal to 25%. The cost of building the plant is expected to be $2,880,000. Required: 1. Calculate the IRR for Cuenca Company. The company's cost of capital is 16%. Round your answer to the nearest percent
Answer:
1. Calculate the IRR for Cuenca Company. The company's cost of capital is 16%.
12%Explanation:
Cuenca Company
Equipment cost $7,200,000
useful life 5 years, no salvage value
Year Cash Cash Net cash flows
revenues expenses
0 $7,200,000 -$7,200,000
1 $8,000,000 $6,000,000 $2,000,000
2 $8,000,000 $6,000,000 $2,000,000
3 $8,000,000 $6,000,000 $2,000,000
4 $8,000,000 $6,000,000 $2,000,000
5 $8,000,000 $6,000,000 $2,000,000
using a financial calculator, the internal rate of return (IRR) = 12.05% = 12%
The IRR for Cuenca Company is 12%.
The internal rate of return is a capital budgeting method that is used to determine the profitability of a project. Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested.
Cash flows of the project
Cash flow in year 0 = $-7,200,000Cash flow in year 1 = $8,000,000 - $6,000,000 = $2 million Cash flow in year 2 = $8,000,000 - $6,000,000 = $2 million Cash flow in year 3 = $8,000,000 - $6,000,000 = $2 million Cash flow in year 4 = $8,000,000 - $6,000,000 = $2 million Cash flow in year 5 = $8,000,000 - $6,000,000 = $2 millionThe IRR can be determined using a financial calculator, the IRR is 12%.
To learn more about the internal rate of return, please check: https://brainly.com/question/24172627
The Converting Department of Tender Soft Tissue Company uses the average cost method and had 2,900 units in work in process that were 70% complete at the beginning of the period. During the period, 36,500 units were completed and transferred to the Packing Department. There were 1,600 units in process that were 20% complete at the end of the period. a. Determine the number of whole units to be accounted for and to be assigned costs for the period. units b. Determine the number of equivalent units of production for the period. units
Answer:
a) Units to be accounted for
Completed and transferred out = 36,500 units
Closing inventory = 1600 units.
b) Total equivalent units 36,820
Explanation:
Under the weighted average method, the units completed and transferred out are not separated into opening inventory and newly introduced.
The units to be assigned cost would be as follows:
Completed and transferred out = 36,500 units
Closing inventory = 1600 units.
Equivalent units is the notional whole units which represent incomplete work and her use to assign costs between work-in-progress and completed units.t
Equivalent units= Degree of completion × units
Units units Equivalent units
Completed 36,500 36,500 × 100% = 36,500
Closing inventory 1,600 1,600 × 20% = 320
Total equivalent units 36,820
a) Units to be accounted for
Completed and transferred out = 36,500 units
Closing inventory = 1600 units.
b) Total equivalent units 36,820
As one builds higher, building costs ____, while warehousing equipment costs tend to ____. Group of answer choices Increase; decrease Decrease; increase Decrease; decrease Increase; increase
Answer:
The correct answer is the second option: Decrease; Increase.
Explanation:
To begin with, in the construction area the managers understand that when the company starts to build higher the building costs decrease due to the fact that is now working with bigger numbers so that means that the volumen of equipment, materials and commodities are high enough to decrease the costs due to the volumen managed, meanwhile the warehousing equipment costs tend to increase due to the same reason as before, now the company is working with bigger numbers so that means more equipment, materials and commodities to put in bigger warehouse and for more time.
Freshmart, Inc., began operations last year when it produced and sold the same number of units. This year, the company produced 1,000 units and sold 750 units at a selling price of $100 per unit. Fixed overhead costs totaled $30,000 and fixed selling and administrative expenses were $15,000. Variable production costs were $25.00 per unit while variable selling and administrative expenses were $10.00 per unit. Using absorption costing, net income was:
Answer:
Net Income under absorption costing is $11,250.
Explanation:
Absorption Costing Income Statement.
Sales Revenue (750 units × $100) $75,000
Less Cost of Sales
Opening Inventory $0
Add Cost of Goods Manufactured (1,000 units × $55.00) $55,000
Less Closing Inventory (250 units × $55.00) ($13,750)($41,250)
Gross Profit $33,750
Less Expenses :
Selling and administrative expenses :
Fixed ($15,000)
Variable (750 units×$10.00) ($7,500)
Net Income / (Loss) $11,250
Conclusion :
Manufacturing costs under absorption costing include both fixed and variable costs.
All Non-manufacturing costs are treated as period costs, expense during the period.
Net Income under absorption costing is $11,250.
When the price increases by 30% and the quantity demanded drops by 10%, the price elasticity of demand is: quizet
Answer:
0.33 inelastic
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
10% / 30% = 0.33
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one .
Which of the following actions would be likely to encourage a firm's managers to make decisions that are in the best interests of shareholders?A. The percentage of the firm's stock that is held by investors such as mutual funds, pension funds and hedge funds rather than by small individual investors rises from 10% to 60%. B. The percentage of executive compensation that in the form of cash is increased and the percentage coming from long-term stock options is reduced. C. The firm's founder, who is also president and chairman of the board, sells 90% of her shares. D. The state passes a law that makes it more difficult to successfully complete a hostile takeover.E. The firm's board of directors gives the firm's managers greater freedom to take whatever actions they think without obtaining board approval.
Answer:
A. The percentage of the firm's stock that is held by investors such as mutual funds, pension funds and hedge funds rather than by small individual investors rises from 10% to 60%.
Explanation:
As we know that the shareholders are the person who buys the stock of the company we can treat as an owner of their shares
For the interest of shareholders, the actions that should be taken is that the firm stock percentage i.e held by investors like mutual funds instead of small investors increased by 10% to 60% as it created the values and build a confidence
Hence, the correct option is A
The company XOXO is specialized in producing treadmills. The company allocates manufacturing overhead based on direct labor hours. XOXO estimated a total of $4,600 of manufacturing overhead that can be dispatched on all jobs. Moreover, the total direct labor hours that has been recorder during the period raises up to 460 hours. Job 12 consists of 30 sets of treadmills. The company’s records show that the following direct costs were requisitioned for Job 12: • Electronic parts: 40 units at $20 per unit • Plastic: 10 kilograms at $10 per kilogram • Labor hours: 60 hours at $25 per hour Requirement: 1. Calculate the predetermined manufacturing overhead (MOH) rate.
Answer:
Predetermined manufacturing overhead rate= $10 per direct labor hour
Explanation:
Giving the following information:
The company allocates manufacturing overhead based on direct labor hours.
Estimated a total overhead= $4,600
Direct labor hours= 460
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 4,600/460= $10 per direct labor hour
Warwick's Co., a women's clothing store, purchased $22,000 of merchandise from a supplier on account, terms FOB destination, 1/10, n/30. Warwick's returned $3,300 of the merchandise, receiving a credit memo.
a. Journalize Warwick's Co.'s entry to record the purchase.
b. Journalize Warwick's Co.'s entry to record the merchandise return.
c. Journalize Warwick's Co. entry to record the payment within the discount period of ten days.
d. Journalize Warwick's Co. entry to record the payment beyond the discount period of ten days. If an amount box does not require an entry, leave it blank.
Answer and Explanation:
The Journal entry is shown below:-
a. Inventory Dr, $21,780 $22,000 - ($22,000 × 1%)
To Accounts payable $21,780
(Being purchase is recorded)
b. Accounts payable Dr, $3,267 ($3,267 - ($3,267 × 1%))
To Inventory $3,267
(Being merchandise return is recorded)
c. Accounts payable Dr, $18,513 ($22,000 - $3,300 × 99%)
To Cash $18,513
(Being payment within the discount period of ten days is recorded)
d. Accounts Payable Dr, $18,513 ($21,780 - $3,267)
Inventory Dr, $187 ($18,700 - $18,513)
To Cash $18,700 ($22,000 - $3,300)
(to record payment beyond discount term)
The Department of Housing and Urban Development (HUD) would like to test the hypothesis that the average size of a newly constructed house in 2010 is different from the average size of a newly constructed house in 2000. The following data summarizes the sample statistics for house sizes, in square feet, for both years. Assume that the population variances are equal.
2000 2010
Sample mean 2,180 2,390
Sample size 15 12
Sample standard deviation 300 320
If Population 1 is defined as homes built in 2000 and Population 2 is defined as homes built in 2010, which one of the following statements is true?
A. Because the
95
%
confidence interval includes zero, HUD cannot conclude that the average size of a newly constructed house in 2010 is different from the average size of a newly constructed house in 2000.
B. Because the
95
%
confidence interval does not include zero, HUD can conclude that the average size of a newly constructed house in 2010 is different from the average size of a newly constructed house in 2000.
C. Because the
95
%
confidence interval includes zero, HUD can conclude that the average size of a newly constructed house in 2010 is equal to the average size of a newly constructed house in 2000.
D. Because the
95
%
confidence interval does not include zero, HUD can conclude that the average size of a newly constructed house in 2010 is not different from the average size of a newly constructed house in 2000.
Answer:
B. Because the
95
%
confidence interval does not include zero, HUD can conclude that the average size of a newly constructed house in 2010 is different from the average size of a newly constructed house in 2000.
Explanation:
Here,
Null and alternative hypotheses are:
H0: u1 = u2
H1: u1 ≠ u2
Calculate test statistics:
[tex] t = \frac{x'1 - x'2}{\sqrt{\frac{(n_1 - 1) (\sigma_1)^2 + (n_2 - 1)(\sigma_2)^2}{n_1 + n_2 - 2} * (\frac{1}{n_1} + \frac{1}{n_2})}} [/tex]
[tex] = \frac{2180 - 2390}{\sqrt{\frac{(14)(300)^2 + (11)(320)^2)}{15 +12 - 2} * (\frac{1}{15} + \frac{1}{12})}} [/tex]
[tex] = \frac{-210}{\sqrt{\frac{(1260000) + (1126400)}{25} * (0.15)}} [/tex]
[tex] t = -1.7549 [/tex]
At 95% confidence interval, find t observed:
Significance level = 100% - 95% = 5% = 0.05
Degrees of freedom = 15 + 12 - 2 = 25
[tex] t_o = t_\alpha_/_2_, _d_f = t_0_._0_5_/_2_, _2_5 = t_0_._0_2_5, _2_5 = 2.06 [/tex]
T calculated = -1.76
T observed(critical) = -2.06
Since t calculated is bigger than t critical, reject null hypothesis H0.
Because the
95
%
confidence interval does not include zero, HUD can conclude that the average size of a newly constructed house in 2010 is different from the average size of a newly constructed house in 2000.
A company receives a 10%, 120-day note for $1,500. The total interest due on the maturity date is: (Use 360 days a year.)
Answer:
50
Explanation:
1,500x.10x120/360 = 50 i believe?
A firm is given a $1,500, 10%, 120-day note. 50 is the total amount of interest due on the maturity date.
What is maturity?Age is not a factor in maturity; rather, maturity is determined by the way you decide to behave and react to different life experiences. It is essentially a stage of mental maturity or wisdom that affects every aspect of a person's life, from behavior to interpersonal relationships.
A firm is given a $1,500, 10%, 120-day note. 50 is the total amount of interest due on the maturity date.
1,500x.10x120/360 = 50 i believe
Therefore, the total amount of interest due on the maturity date.
Learn more about the maturity here:
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_________ is the process whereby managers closely examine the target firm to understand its core processes, strengths, and weaknesses.
Answer:
Due diligence
Explanation:
Due diligence is the process whereby managers closely examine the target firm to understand its core processes, strengths, and weaknesses.
It is designed to provide organizations with a clear picture of their company’s capabilities, that is their strength and weakness. Many businesses are reliant on it before making investments decision in a new company, a merger or finishing an acquisition.
Consumption expenditures $800
Investment expenditures 200
Government purchases 300
Exports 100
Imports 200
Wages 800
Refer to Table above. Consider the data above (in billions of dollars) for an economy:
Gross domestic product (in billions of dollars) for this economy equals
A) $2,200.
B) $1,600.
C) $1,400.
D) $1,200
Answer:
GDP= $1,200
Explanation:
From the question above, we are given the following values
Consumption expenditure= $800
Investment expenditures= $200
Government purchases= $300
Imports= $100
Exports= $200
Wages= $800
Therefore the Gross Domestic Product(GDP) can be calculated as follows
GDP=Consumption+investment+government spending+(export-import)
= $800+$200+$300+($100-$200)
= $800+$200+$300+(-$100)
= $800+$200+$300-$100
= $1,200
Hence the Gross Domestic Product (in billions of dollars) for this economy is $1,200