Answer:
Equilibrium price would rise
Equilibrium quantity would fall
Explanation:
If the supply of peanuts falls, it would lead to a rise in the price of peanuts because the demand for peanuts woild exceed its supply.
The rise in price would increase the cost of production of peanut butter because peanut is an input in the production of peanut butter. This rise in cost would discourage suppliers and supply of peanut butter would fall. As a result equilibrium quantity would fall. As a result of a fall in supply of peanut butter, demand would exceed supply and equilibrium price would rise.
I hope my answer helps you
Answer:
^
Explanation:
You expect to receive annual gifts of $1,000 at the end of Years 1 and 2 and $1,500 at the end of Years 3 and 4. What is the correct present value of multiple annuities formula if the rate is 6 percent?
Answer:
PV of annuities =$3,021.53
Explanation:
The present value of the annuity would be as follows;
First annuity of $1000:
PV = A × (1- (1+r)^(-n)/r
PV = Present Value , r- rate of return, n-number of years
PV = 1000× (1- (1.06)^(-2)
PV= $1,833.39
The second annuity
PV = 1,500 x (1-1.06^(-2)× 1.06^(-2)= 1,188.140
PV = $1,188.140
PV of the annuities = $1,833.39 + $1,188.140 =$3,021.53
PV of annuities =$3,021.53
You Just won a prize that will pay you $800 today and $500 a year for the next three years. Which is the correct formula for computing the present value as of today at 6 percent?
PV = $500/1.06 + $500/1.062+ $500/1.063
PV = $800 PV $800/1.06$500/1.06+$500/1.06 $500/1.06
PV =$800+ $500/1.06 $500/1.06+ $500/1.061
PV = $800(1.06)+ $500 +$500/1.06 $500/1.06
Answer:
The correct answer is PV = $800 + $500/1.06 + $500/1.062 + $500/1.06^3
Explanation:
Solution
Given that:
A price was wan by you today at =$800
For the next three years =$500 a year
Now
We compute for the present value of today at 6%
Thus
Present value (PV) = $800 + $500/1.06 + $500/1.062 + $500/1.063
Because $800 is receivable today, its present value is equal to $800,
So,
500 receivable after a year will be divided by 1.06
PV = $800 + $500/1.06 + $500/1.062 + $500/1.06^3
Therefore the right formula for computing the present value as of today at 6 percent is PV = $800 + $500/1.06 + $500/1.062 + $500/1.06^3
Chegg "Topper Corporation has 130,000 shares of $1 par value common stock and 92,000 shares of cumulative 8.6%, $100 par preferred stock outstanding. Topper has not paid a dividend for the prior year. If Topper declares a $1.95 per common share dividend this year, what will be the total amount they must pay their shareholders?"
Answer:
Total divided= $1,761,800
Explanation:
The cumulative preference shares entire the investors to fixed amount of dividend. Where dividends are not paid during an accounting period, the unpaid dividend are carried forward and paid in arrears when profits become available in following accounting period.
Hence, before Chegg would pay common dividend the arrears of preference dividend must first be paid .
Preferred dividend = Dividend rate × Nominal value
Prior year Preferred dividend = 8.6%× 100× 92,000 = $791,200
Current year dividend = 8.6%× 100× 92,000 = $791,200
Common dividend = Div per share × units of common stock
Current year Common dividend = $$1.95 × 130,000 = $179,400
Total dividend = $791,200 +$791,200 + $179,400 =$1,761,800
Total divided= $1,761,800
If the government sets a price ceiling of $4, market forces will cause:
a. the quantity demanded to drop and the quantity supplied to rise.
b. a shortage will exist. a surplus will exist.
c. market forces will cause demand to drop and supply to rise.
d. market forces will cause supply to drop and demand to rise.
The table for the question is in the attachment.
Answer:
b. a shortage will exist.
Explanation:
Considering the table from the diagram, it shows that, when the price of Refrigerator Magnet is at 4 dollars, the Quantity demanded is 9, while the Quantity supplied is 4. This equates that, there is shortage of 5 in quantity supplied.
In other words, at the price of 4 dollars, the Quantity demanded is greatee than the Quantity supplied by 5.
Hence, the correct answer is B. A shortage will exist.
Samantha and Adam own a gardening business together. They each pull weeds from flower beds and rake up leaves for their neighbors. If each decides to specialize in what they are best at, Samantha will
Answer:
Samantha and Adam
Gardening Business:
If each decides to specialize in what they are best at, Samantha will be specializing in either pulling weeds or raking up leaves and benefiting from the principle of Division of Labor.
Explanation:
According to britannica.org, division of labour is "the separation of a work process into a number of tasks, with each task performed by a separate person or group of persons. It is most often applied to systems of mass production."
Division of labor facilitates the deployment of machinery and technology to complete simple tasks, thereby reducing costs of production, developing specialized talents, and increasing profits. It also makes possible the invention of tools and other forms of innovations. This is because workers who are focused on the same task can learn the tasks in details and develop better solutions from their learning experiences.
Based upon Booked Orders and Sales Predictions, we expect to need the following finished goods over the planning period: 120 Product A We currently have the following Finished Goods Products in Inventory: 60 Product A We have scheduled the following to be produced in the factory within the planning period: 50 Product A How many products should we include on future Planned Production Orders
Answer:
10 product
Explanation:
Calculation of how many products should we include on future Planned Production Orders
Product A
Finished goods over the planning period =120
Finished Goods Products in Inventory= 60
Scheduled of what will be produced in the factory within the planning period =50
Hence
120-60-50=10
Therefore the amount of products should we include on future Planned Production Orders should be 10 products.
Identify the key elements to incorporate when making a request for a claim or adjustment. Check all that apply. Communicating feelings politely Excessive detail Chronology of details Moderate tone Logical case Sincere praise
Answer:
1. Communicating feelings politely
2. Moderate tone
3. Logical case
4. Sincere praise
Explanation:
In the quest of engaging in business transactions between individuals and businesses, the business might sometimes not meet up to the customer's needs. When customers want to make their claims or request for an adjustment, it is vital that they communicate their feelings in a polite manner, use a moderate tone, build their case logically, and offer sincere praise to the organization in question. In so doing, their claims can be addressed in a civil manner and they would be more likely to get a positive result.
Offering excessive details and bombarding the organization with the chronology of details might lead to confusion as to the real problems to be addressed.
The units of an item available for sale during the year were as follows: Jan. 1 Inventory 9 units at $47 $423 Aug. 13 Purchase 19 units at $50 950 Nov. 30 Purchase 13 units at $51 663 Available for sale 41 units $2,036 There are 16 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using (a) the first-in, first-out (FIFO) method; (b) the last-in, first-out (LIFO) method; and (c) the weighted average cost method (round per-unit cost to two decimal places and your final answer to the nearest whole dollar). a. First-in, first-out (FIFO) $ b. Last-in, first-out (LIFO) $ c. Weighted average cost
Answer:
a. First-in, first-out (FIFO) $813
b. Last-in, first-out (LIFO) $773
c. Weighted average cost $795
Explanation:
Date transaction units unit cost total cost
Jan. 1 Inventory 9 units at $47 $423
Aug. 13 Purchase 19 units at $50 $950
Nov. 30 Purchase 13 units at $51 $663
Available for sale 41 units $2,036
Ending inventory 16 units
a. First-in, first-out (FIFO) $
ending inventory = (13 x $51) + (3 x $50) = $813
COGS and ending inventory are calculated based on the oldest units purchased
b. Last-in, first-out (LIFO) $
ending inventory = (9 x $47) + (7 x $50) = $773
COGS and ending inventory are calculated based on the last units purchased
c. Weighted average cost
ending inventory = ($2,036 / 41) x 16 = $795
COGS and ending inventory are calculated using an average
Gilbert Company generated sales revenues of $1,800,000 in 2017. Its cost of goods sold amounted to $990,000. Calculate Gilbert's gross profit percentage. Supporting Materials Cost of goods sold / Group of answer choices 55% 45% 222% 182%
Answer:
45%
Explanation:
The computation of the gross profit percentage is shown below:
As we know that
Gross profit percentage = Gross profit ÷ Sale revenue × 100
where,
Gross profit is
= Sales revenue - the cost of goods sold
= $1,800,000 - $990,000
= $810,000
And, the sales revenue is $1,800,000
So, the gross profit percentage is
= $810,000 ÷ $1,800,000
= 45%
Hence, the gross profit percentage is 45%
Benge Automotive issued a corporate bond with a face value of $1,000, with a 10% annual coupon rate paid semiannually. The bond matures in 12 years and sells at a price of $1,080. What is the component cost of debt for use in the WACC calculation
Answer:
The answer is 8.90%
Explanation:
Solution
Given that:
The bond face value =$1000
Annual coupon rate =10%
Maturity rate =12 years
Price sold at =1080
Now we find the component cost of debt for use
Thus
The debt (cost) = Yield to maturity
So
YTM = Annual interest payment + [(Face value - Present price / Years to maturity] / [0.6(Price of bond) + 0.4 (principal payment)]
= $100 + [($1000 - $1080) / 12] / [0.6 * $1080 + 0.4 * $1000]
= $100 - 6.67 / $1048
= $93.33 / $1048
= 0.0890 or 8.90%
Therefore the debt for use is 8.90%
After your project team has completed the task to develop potential ideas to increase productivity, as the project team leader, what would be your FIRST step (message-sending process) when presenting your ideas for approval and further guidance.
Answer:
b) Develop Rapport
Explanation:
As the project team leader, the first step in submitting your ideas for approval and additional guidance is to develop a rapport. Through rapport it is possible to establish meaningful connections and bonds with people and create a relationship of trust, which can generate increased focus and mutual attention to what the person wants to share, positivity that increases integration and a friendly relationship between a group, coordination, which increases the level of synchrony and greater understanding of a message, etc.
This is an effective tool to build trust, influence, learning and teaching, which is characterized by significant advantages when the objective is to positively influence people for greater acceptance of their ideas, positions and information sharing.
Linea, an employee of Hard Labor Industries (HLI), is injured in a work-related accident. Based on the diagnosis of Newt, a doctor, Linea accepts $50,000 from HLI and waives the right to future claims. Newt's diagnosis later proves to have been wrong. In terms of the impact on Linea's agreement with HLI, Newt's mis-diagnosis is:_______.
a. obtain damages from HLI.
b. recover nothing.
c. set aside the settlement withHLI.
Answer: set aside the settlement withHLI.
Explanation:
From the question, Linea, who is an employee of Hard Labor Industries (HLI), is injured in a work-related accident and based on the diagnosis of Newt, who is a doctor, Linea accepts $50,000 from HLI and waives the right to future claims.
We are also informed that Newt's diagnosis later proves to have been wrong. In terms of the impact on Linea's agreement with HLI, Newt's mis-diagnosis is to set aside the settlement with HLI.
This will be necessary to make them understand that it was a mistake and make a settlement with Hard Labor Industries so that Linea won't be affected as they make think she has it planned in order to collect money from them so the hospital should make a settlement.
Nathan’s Athletic Apparel has 2,000 shares of 5%, $100 par value preferred stock the company issued at the beginning of 2017. All remaining shares are common stock. The company was not able to pay dividends in 2017, but plans to pay dividends of $22,000 in 2018.Required: 1. & 2. Assuming the preferred stock is cumulative and noncumulative, how much of the $22,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2018? Cumlative Non Cumlativepreferred Dividends for 2018 preferred Dividends in arrears for 2017 Remaining Dividends to common stockholders Total Dividens:
Answer:
1.
Preferred stock dividends to be paid in 2018 = $20000
Common stock dividends to be paid in 2018 = $2000
2.
Preferred stock dividends to be paid in 2018 = $10000
Common stock dividends to be paid in 2018 = $12000
Explanation:
The preferred stock dividends are always paid before the common stock dividends.
Cumulative preferred stock is the stock which accumulates or accrues dividends if the dividends are partially paid or not paid at all in a particular year. These dividends are accrued and are required to be paid by the company whenever it declares dividends.
Non cumulative preferred stock does not accrue or accumulates dividends. Thus, if dividends are not paid in a particular year, the company has no obligation to pay these dividends ever in the future.
1.
If the preferred stock is assumed to be cumulative, then the dividends in arrears for 2017 will be paid in 2018 along with dividends for 2018 on preferred stock before paying the common stock holders.
Preferred stock dividend per year = 2000 * 100 * 0.05
Preferred stock dividend per year = $10000
Preferred stock dividends to be paid in 2018 = 10000 + 10000 = $20000
Common stock dividends to be paid in 2018 = 22000 - 20000 = $2000
2.
If the preferred stock is assumed to be non cumulative, then the dividends in arrears for 2017 will not be paid in 2018. Only the dividends for 2018 on preferred stock will be paid before paying the common stock holders.
Preferred stock dividend per year = 2000 * 100 * 0.05
Preferred stock dividend per year = $10000
Preferred stock dividends to be paid in 2018 = $10000
Common stock dividends to be paid in 2018 = 22000 - 10000 = $12000
Consider the following transactions for Partytime Toys:
October 8 Partytime Toys buys $141,800 worth of MegoBloack toys on account with credit terms of 2/10, n/30
October 11 Partytime Toys returns $14,100 of the merchandise to MegoBlock due to damage during shipment.
October 15 Partytime Toys paid the amount due, less the return and discount.
Required
1. Journalize the purchase transactions. Explanations are not required.
2. In the final analysis, how much did the inventory cost Partytime Toys?
Answer:
1. Journalize the entries:
October 8:
Dr Purchases $141,800
Cr Account Payable $141,800
October 11:
Dr Accounts Payable $ 14,100
Cr Purchase Return $ 14.100
October 15:
Dr Accounts Payable $114,930 (141,800-14,100)*90%
Cr Cash $ 114,930.
2. The inventory cost $114,930 to Party Time Toys.
Explanation:
First, we have to Journalize the entries;
October 8:
Dr. Purchases $141,800
Cr Account Payable $141,800
October 11:
Dr Accounts Payable $ 14,100
Cr Purchase Return $ 14.100
October 15:
Dr Accounts Payable $114,930 (141,800-14,100)*90%
Cr Cash $ 114,930.
so, The inventory cost $114,930 to Party Time Toys.
What is a Transaction?A transaction is a business event that has a monetary impact on an entity's financial statements and is recorded as an entry in its accounting records. Examples of transactions are as follows:
Paying a supplier for services rendered or goods delivered.
What is a transaction in a bank?A bank transaction is any money that moves in or out of your bank account. Types of bank transactions include cash withdrawals or deposits, checks, online payments, debit card charges, wire transfers, and loan payments.
Learn more about transactions here:https://brainly.com/question/24835236
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Snap Dragon Photo reported the following figures on its December 31, 2016, income statement and balance sheet:Net Sales $440,000 Dec 31 2016 Dec 31 2015Cash $26,000 $28,000Accounts Receivable 56,000 58,000Merchandise Inventory 79,000 76,000Prepaid Expenses 8,000 14,000Property, plant and equipment, net 180,000 11,000Compute the asset turnover ratio for 2016.
Answer:
Assets turnover ratio= 1.64 times
Explanation:
The asset turnover is the he amount of sales generated by one dollar invested in asset. it measures how efficient the business is in generating sales using assets
Assets turnover ratio = net sales / Average assets
Asset at the beginning of year 2016
=26,000 + 56,000 + 79,000 + 8,000 + 180,000 = 349 ,000
Asset at the end of year 2016
$28,000 + 58,000 + 76,000 + 14,000 + 11,000= 187 ,000
Average assets = Opening value of asset+ closing value of assets/2
= 349 ,000 + 187 ,000= 268 ,000
Assets turnover ratio = net sales / Average assets
=440000/268,000= 1.64 times
Assets turnover ratio= 1.64 times
Total assets =
To be Lean means:
a. to be able to move quickly without significant penalty
b. to decrease economies of scale
c. to do the same things as Agile but modified just a bit
d. to reduce or eliminate waste from the system
Answer:
d. to reduce or eliminate waste from the system
Explanation:
Lean refers in business to generating more benefits to your clients using less resources and a company using lean principles tries to eliminate all the unecessary things that doesn't add value which are considered waste and increase its efficiency. According to this, the answer is that to be lean means to reduce or eliminate waste from the system.
The other options are not right because Agile and Lean are different methodologies and Lean helps to generate cost reductions that can create economies of scale. Also, to be lean it doesn't matter if you move quickly or slow as long as you eliminate the waste to give more value to customers.
Types of bonds
Bonds are debt securities in which a borrower promises to pay a specified interest rate and principal at a future date.
1. Which of the following statements about Treasury bonds is the most accurate?
A. Treasury bonds are not completely riskless, since their prices will decline when interest rates rise.
B. Treasury bonds are completely riskless.
C. Treasury bonds have a very small amount of default risk, so they are not completely riskless.
Based on the information given in the following statement, answer the questions that follow:
New York City issued a general obligation bond for a canal in 1812. It was the first formal debt instrument with a fixed repayment schedule issued by a city.
2. Who is the issuer of the bonds?
A. The New York City government
B. Bank of New York
C. Federal Reserve Bank of New York
3. What type of bonds are these?
A. Treasury bonds
B. Municipal bonds
C. Corporate bonds
4. Which of the following statements is true about bonds?
A. An investor from Kansas that invests in a municipal bond issued by the State of Kansas will pay neither state nor federal taxes on the bond’s coupon payments.
B. An investor from Kansas that invests in a municipal bond issued by the State of Kansas will pay federal—but not state—taxes on the bond’s coupon payments.
5. Which of the following types of bonds has the least default risk?
A. Corporate bonds
B. Treasury bonds
C. Municipal bonds
Answer: 1. A . Treasury bonds are not completely riskless, since their prices will decline when interest rates rise.
2. A. The New York City government
3. B. Municipal bonds
4. A. An investor from Kansas that invests in a municipal bond issued by the State of Kansas will pay neither state nor federal taxes on the bond’s coupon payments
5. B. Treasury bonds
Explanation:
1. Treasury Bonds are known as the safest bonds in the world and so are generally considered risk-less. However this is not so as they still fall victim to Interest rate risk which is the risk that their prices will decline when interest rates rise because bond prices are inversely related to price.
2. The City of New York issued to bonds in question so it is a New York City Government bond.
3. Municipal Bonds are issued by a state, county or a municipality so the above is a Municipal bond as it was issued by the City of New York.
4. Municipal Bonds attract no Federal taxes and when buying a Municipal bond as a resident of the Municipality you are in, you will.not get charged the Municipal taxes either on the bond coupon payments.
5. Default risk is the risk that the issuer will not pay back. US Treasury Bonds are known as the safest in the world and have not been defaulted on in over a century. They therefore have the lowest default risk.
The receiving department has three activities: unloading, counting goods, and inspecting. Unloading uses a forklift that is leased for $15,000 per year. The forklift is used only for unloading. The fuel for the forklift is $3,600 per year. Other operating costs (maintenance) for the forklift total $1,500 per year. Inspection uses some special testing equipment that has depreciation of $1,200 per year and an operating cost of $750. Receiving has three employees who have an average salary of $50,000 per year. The work distribution matrix for the receiving personnel is as follows:
Activity Percentage of Time on Each Activity
Unloading 40%
Counting 25
Inspecting 35
No other resources are used for these activities.
Required:
Calculate the cost of each activity.
Unloading $
Counting $
Inspecting $
Answer:
Calculating the cost of each activity,
Unloading = $ 80,100
Counting = $ 37,500
Inspecting = $54,450
Explanation:
Given:
Unloading lease = $15,000 per year
Fuel for the forklift = $3,600 per year
Maintenance for the forklift = $1,500 per year
Inspection uses some special testing equipment that has depreciation of $1,200 per year
Operating cost = $750.
Receiving employees average salary = $50,000 per year
Salaries; 3 × 50,000 = 150,000
Unloading salary = 40% × 150,000 = 60,000
Counting salary = 25% × 150,000 = 37,500
Inspecting salary = 35% × 150,000 = 52,500
Unloading Counting Inspection
Equipment 15,000 1,200
Fuel 3,600
Operation cost 1,500 750
Labor 60,000 37,500 52,500
Total cost 80,100 37,500 54,450
g Using the Multiplier Model (and assuming the price level is fixed), if the economy is operating at $3,000 billion and the government policymakers have determined that the target level of income to reach is $3,500 billion, by how much must they increase government spending by to eliminate the recessionary gap if the mpe
Answer: a. $200 billion
Explanation:
The Multiplier Effect (MPE) is used to calculate the Multiplier which then shows how much the GDP of the country will increase if a certain amount of money is induced into it.
The formula is;
Multiplier = 1 / ( 1 - MPE)
= 1 / ( 1 - 0.6)
= 2.5
The economy is now operating at $3,000 billion but they would want it to operate at $3,500 billion.
The difference of $500 billion is the amount that policy makers would like to add to the economy.
The Multiplier of 2.5 means that for every $1 spent, $2.5 will be added to the economy.
To get a $500 billion increase therefore, they would need to spend;
= 500 / 2.5
= $200 billion.
If they spend $200 billion, $500 billion will be added to the economy by the Multiplier Effect.
In the early 1980's, 7 people in the Chicago area were poisoned by Tylenol capsules laced with cyanide. Although the company's investigation showed that the tainted capsules had not been tampered with at the factories where they were produced, Johnson & Johnson took immediate action through a massive recall and offered a $100,000 reward for information leading to the arrest of the person or people responsible. Industry experts believe that this led to the brand's ability to recover from the negative publicity surrounding the "Tylenol Murders". Johnson & Johnson's actions illustrate:a) The power of the Food and Drug Administrationb) How managing negative publicity is impossiblec) The importance of sacrificing short-term profits for long-term credibilityd) The need to combat negative publicity with facts in order to maintain sales levelse) The importance of sustainability on public perception and the bottom line
Answer: c) The importance of sacrificing short-term profits for long-term credibility.
Explanation:
The Chicago Tylenol Murders of September–October 1982 shocked the United States and claimed the lives of 7 people and was due to a poisoned Tylenol capsules which is produced under a Johnson and Johnson subsidiary.
Johnson & Johnson have been hailed as heroes for their response to the issue because even though the facts showed that they were in the clear, they still not only sacrificed huge short term profits by recalling thousands of tablets but by also offering a massive reward for anyone who would come forward with information that would lead to the arrest of perpetrators.
This act of Corporate Altruism saved the company's brand because people were humbled by the lengths Johnson & Johnson went to.
This endeared the Johnson & Johnson brand in their hearts as a Credible company and proved infinitely beneficial in the long run.
This proves that sacrificing short term profits for long term credibility is quite beneficial.
Johnson Company calculates its allowance for uncollectible accounts as 10% of its ending balance in gross accounts receivable. The allowance for uncollectible accounts had a credit balance of $28,000 at the beginning of 2021. No previously written-off accounts receivable were reinstated during 2021. At 12/31/2021, gross accounts receivable totaled $466,700, and prior to recording the adjusting entry to recognize bad debts expense for 2021, the allowance for uncollectible accounts had a debit balance of 51,300. Required: 1. What was the balance in gross accounts receivable as of 12/31/2020? 2. What journal entry should Johnson record to recognize bad debt expense for 2021? 3. Assume Johnson made no other adjustment of the allowance for uncollectible accounts during 2021. Determine the amount of accounts receivable written off during 2021. 4. If Johnson instead used the direct write-off method, what wou
Answer:
1. What was the balance in gross accounts receivable as of 12/31/2020?
= allowance for doubtful accounts 2020 / 10% = $28,000 / 10% = $280,000
2. What journal entry should Johnson record to recognize bad debt expense for 2021?
Dr Bad debt expense (= 46,670 + 51,300) 97,970
Cr Allowance for doubtful accounts 97,970
3. Assume Johnson made no other adjustment of the allowance for uncollectible accounts during 2021. Determine the amount of accounts receivable written off during 2021.
= credit balance allowance for doubtful accounts January 1 + debit balance allowance for doubtful accounts December 31 = $28,000 + $51,300 = $79,300
4. If Johnson instead used the direct write-off method, what would the bad debt expense be
The bad debt expense would equal $79,300. The allowance for doubtful accounts is used as an estimate of future bad debt expense, while the direct write off method directly writes off bad debt as they occur.
Explanation:
beginning balance of allowance for doubtful accounts $28,000
gross accounts receivable $466,700 x 10% = $46,670 bad debt
before adjustments, the allowance for doubtful accounts had a debit balance of $51,300
As a financial advisor, what will you tell your client, Ryan, he should be willing to pay for an investment property that he plans to buy today and hold for 5 years and then sell, given the following cash flows and the fact that he expects 9% on any investment he makes?
Inflows Outflows Net
InitialOutlay $0
Year 1 $45,000 $55,000 10,000
Year 2 55,000 20,000 35,000
Year 3 55,000 20,000 35,000
Year 4 255,000 235,00 220,000
A. $189, 910.29.
B. $194, 589.33.
C. $178, 656, 73.
D. $191, 231, 57.
Answer:
The option (A) $189, 910.29 is correct
Explanation:
Solution
Given that
Years Net Cash flow Discount Factor at 11% Present Value
1 $ (10,000.00) 0.901 $(9,009.01)
2 $ 35,000.00 0.812 $ 28,406.79
3 $ 35,000.00 0.731 $ 25,591.70
4 $ 220,000.00 0.65 $ 144,920.81
Now,
The Net Present Value $189,910.29
Thus
After carrying out the financial analysis, it has been seen that if we go ahead to buy the Investment Property, then today we have Net present Value of $ 189,910.29.
So, i will inform my client to buy the Investment Property.
ProBuilder reports merchandise sales of $80,000 and cost of merchandise sales of $20,000 in its first year of operations ending June 30, 2016. It makes fiscal-year-end adjusting entries for estimated future returns and allowances equal to 3% of sales, or $2,400, and 3% of cost of sales, or $600.Required:a. Prepare the June 30, 2016, fiscal-year-end adjusting journal entry for future returns and allowances related to sales. b. Prepare the June 30, 2016, fiscal-year-end adjusting journal entry for future returns and allowances related to cost of sales.
Answer and Explanation:
The adjusting entries are as follows:
1. Sales returns and allowances $2,400
To Sales refund payable $2,400
(Being the returns and allowance is recorded)
For recording this we debited the sales returns as it increased the sales return and credited the sales refund payable as it increased the liabilities
2. Inventory returns estimated $600
To Cost of goods sold $600
(Being the cost of sales is recorded)
For recording this we debited the inventory returns as it increased the returns inventory and credited the cost of goods sold as it decrease the expenses
Megginson, Inc. issued a five-year corporate bond of $300,000 with a 5% interest rate for $290,000. What effect would the bond issuance have on Megginson, Inc.'s accounting equation
Answer:
Megginson, Inc.
Effect of the Bond Issuance on Megginson, Inc.'s accounting equation:
(The account equation states that Assets = Liabilities + Equity.)
With the bond issuance, the Assets (Cash) will increase by $290,000 and the Liabilities (Bonds Payable) will increase by $300,000, and there will be a loss (Equity - Retained Earnings) of $10,000 in the form of Discount on Bonds. This discount on bonds is usually amortized over the bonds' life, thus increasing the interest payable.
Explanation:
The issuance of bonds is one of the means of obtaining finance for business operations. It is a long-term borrowing, which entities use to finance the activities when funds cannot be sourced from other sources or when it is considered cheaper to borrow from outside sources.
Momber's Flooring Company
2011 2012
Cash 500 800
Accounts receivable 1,400 1,200
Inventory 3,900 4,400
Net fixed assets 8,200 8,200
Land 1,000 2,000
Total Assets 15,000 16,600
Notes payable 1,000 600
Accounts payable 3,000 2,000
Accruals 500 900
Long-term debt 3,600 5,400
Common Stock 2,500 2,200
Retained earnings 4,400 5,500
Total Liabilities and Equity 15,000 16,600
Given the Balance Sheets for Momber's Flooring Company above for the years ending December 31, 2011 and 2012, find Net Cash Flows from Operating Activities for 2012 assuming the following income statement data:
Net income (2012)= $3,382 and Depreciation (2012) = $810
Round your answer as a whole number and record without a dollar sign and without commas. For example, record $3,204.854 as 3205. To show a negative cash flow (i.e., a net cash outflow), place a negative sign before your answer with no space between the negative sign and the number. Thus, record negative 5,432 as -5432.
Answer:
Net Cash Flows from Operating Activities for 2012 will be $2,082
Explanation:
Prepare the Cash flow from Operating Activities Section to determine the Net Cash Flows from Operating Activities.
Cash flow from Operating Activities :
Net income 3,382
Adjustment for Non-Cash items :
Depreciation 810
Adjustment for Changes in Working Capital items :
Decrease in Accounts Receivables 200
Increase in Inventory -500
Decrease in Notes payable -400
Decrease in Accounts payable -1,000
Increase in Accruals 400
Net Cash Flows from Operating Activities 2,082
Conclusion :
Net Cash Flows from Operating Activities for 2012 will be $2,082
Dave Fletcher was able to determine the activity times for constructing his laser scanning machine. Fletcher would like to determine ES, EF, LS, LF, and slack for each activity. The total project completion time and the critical path should also be determined. Here are the activity times: Activity Time (weeks) Immediate Predecessor(s) Activity Time (weeks) Immediate Predecessor(s) A 5 minus E 4 B B 6 minus F 5 B C 4 A G 11 C, E D 2 A H 6 D , F
Answer:
Project completion time: 21 weeksCritical Path: B - E - GES, EF, LS, LF are shown belowExplanation:
The earliest start is the latest of the earliest finish times of the predecessors. The earliest finish is the sum of earliest start and duration.
The latest finish is the earliest of the latest start times of the successors. The latest start is the difference of latest finish and duration.
The slack is the difference between earliest start (or finish) and latest start (or finish).
Project duration is the earliest start of the "Project Done" task. For purposes of computing slack, this (project duration) is taken to be the latest finish of the immediate predecessors.
The critical path is the sequence of tasks with 0 slack.
The amount of minutes you were active during the day is referred to as activity.
It's essentially the total amount of time you spent exercising in a 24-h cycle, and it may be anything from a gym aerobic or prenatal yoga class to brisk strolling.
Time to complete the project: 21 weeks
Below are the Critical Paths: B - E - G ES, EF, LS, LF.
The calculation has been attached below.
The earliest start is the latest of the predecessors' earliest finish times. The combination of the oldest start and endurance represents the earliest conclusion.
The latest finish is the earliest of the successors' latest start timings. The deviation between the newest finish and the length is the latest start.
The slack is the time between the earliest start (or finish) and the latest start (or complete) (or finish).
The beginning of the "Program Complete" task is termed the construction length. This (project duration) is regarded to be the most recent finish of the predecessors for the sake of computing slack. This (project duration) is regarded to be the most recent finish of the predecessors for the sake of computing slack.
The critical route is a set of jobs with no slack in between them.
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g n a certain economy, when income is $100, consumer spending is $60. The value of the multiplier for this economy is 4. It follows that, when income is $101, consumer spending is a. $60.25. b. $60.75. c. $61.33. d. $64.00.
Answer:
The answer is option (b) $60.75
Explanation:
Solution
Given that
A certain economy, Income is =$100
Consumer spending is =$60
The value of multiplier is =4
Now we need to know when the income is $101, consumer spending, the customer spending will be what?
Now,
Multiplier (k)= 1/1-MPC (marginal propensity to consume)
4=1/1-MPC
Thus
MPC= 1-1/4
MPC=3/4
MPC=.75
So,
MPC= Change in consumption/change in income.
.75=Change in C/101-100
Change in C=.75*1
Change in C=.75
Hence
The new consumption =60+.75=60.75
Therefore, when the income is $101, the consumer spending is $60.75
Based on the income and the amount of money spent from it, the consumer spending at that amount will be b. $60.75
The question can be answered with the Marginal Propensity to Consume (MPC) which is calculated as:
Multiplier = 1 / (1 - MPC)
4 = 1 / (1 - MPC)
MPC = 0.75
If the income is $101, the amount that will be spent is:
= Income + (Increase in income x Marginal Propensity to Consume)
= 100 + (1 x 0.75)
= $60.75
In conclusion, $60.75 will be the consumer spending.
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Selected financial data regarding current assets and current liabilities for two competing companies, Simon and Garfunkel, are provided as follows:
($ in millions) Simon Garfunkel
Current assets
Cash and cash equivalents $ 620 $ 2,920
Short-term investments 3,690 0
Net receivables 992 1,330
Inventory 510 203
Other current assets 335 477
Total current assets $ 6,147 $ 4,930
Current liabilities
Accounts payable $ 7,220 $ 4,285
Short-term debt 1,270 1,028
Other current liabilities 0 1,306
Total current liabilities $ 8,490 $ 6,619
1-a. Calculate the current ratio for Simon. Then calculate the current ratio for Garfunkel. (Round your answers to 2 decimal places.)
1-b. Which of the two companies has the best current ratio?
Simon
Garfunkel
2-a. Calculate the acid-test (quick) ratio for Simon. Then calculate the acid-test (quick) ratio for Garfunkel. (Round your answers to 2 decimal places.)
2-b. Which of the two companies has the best acid-test ratio?
Garfunkel
Simon
Answer:
Please find the detailed answer in the explanation section
Explanation:
1. Current ratio = Curren assets / Curren liabilities.
For Simon:
Current assets are:
Cash and cash equivalents $ 620
Short-term investments $3,690
Net receivables $992
Inventory $510
Other current assets $335
Total current assets $6,147
Current liabilities are:
Accounts payable $7,220
Short-term debt $1,270
Other current liabilities. $0
Total current liabilities $8,490
So current asset is $6,147/$8,490
0.72:1
For Garfunkel:
Current assets are:
Cash and cash equivalents $2,920
Short-term investments $0
Net receivables $1,330
Inventory $203
Other current assets $477
Total current assets $4,930
Current liabilities are:
Accounts payable $4,285
Short-term debt $1,028
Other current liabilities. $1,306
Total current liabilities $6,619
So current asset is $4,930/$6,619
0.74:1
1b Simon current asset is 0.72 while Garfunkel's own is 0.74
Therefore Garfunkel with 0.74 has a better current ratio
2a. Acid-test ratio = total current assets minus Inventory / total current liabilities
For Simon:
($6,147 - $510) / $8,490
=0.66:1
For Garfunkel:
($4,930 - $203) / $6,619
=0.71:1
2b. Garfunkel with 0.71 has a better acid-test ratio
The Green Giant has a 6 percent profit margin and a 37 percent dividend payout ratio. The total asset turnover is 1.2 times and the equity multiplier is 1.4 times. What is the sustainable rate of growth
Answer:
0.0678
Explanation:
Given:
Profit margin = 6% = 0.06
Dividend payout ratio = 37% = 0.37
Total asset turnover = 1.2
Equity multiplier = 1.4
Required:
Find the sustainable rate of growth.
First find the return on equity using the formula: Equity Multiplier × Assets turnover × Profit margin
= 1.4 * 1.2 * 0.06
= 0.1008
Return on equity = 0.1008
To find the sustainable growth, we have the following:
[tex]= \frac{0.1008 (1 - 0.37)}{1 - (0.1008 (1 - 0.37))}[/tex]
[tex]= \frac{0.063504}{1 - 0.063504} = 0.0678[/tex]
Therefore, sustainable growth = 0.0678
A seller uses a perpetual inventory system, and on April 4, it sells $5,000 in merchandise (its cost is $2,400) to a customer on credit terms of 3/10, n/30. Complete the two journal entries (the first for the revenue part of the transaction and the second for the cost part) to record the sales transaction by selecting the account names and dollar amounts from the drop-down menus. Date Account Title Debit Credit April 4 select select select select select select select select select select select select Slide 3
Answer:
1. Dr Account receivable 5,000
Cr Sales 5,000
2.Cost of goods sold 2,400
Cr Merchandise inventory 2,400
Explanation:
Preparation of the two journal entries
1. The record of the revenue part of the transaction
Since we were told that the seller on April 4, sells $5,000 in merchandise using perpetual inventory system this means we have to record the transaction as :
Dr Account receivable 5,000
Cr Sales 5,000
2.The record of the cost part of the transaction
Since we were told the merchandise cost $2,400 this means we have to record the transaction as:
Cost of goods sold 2,400
Cr Merchandise inventory 2,400