PLEASE HELP urgent The division is evaluating a project requiring a capital cost of $254,000. The project has an estimated life of four years and no salvage value. The estimated net income and net cash flow from the project are as follows: look at screenshot* The company's minimum desired rate of return is 12%. The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is .893, .797, .712, and .636, respectively. 1. Determine the average rate of return on investment 2. Determine the Net Present Value
Answers
Answer:
1. Average rate of return on investment = 12.11%
2. Net Present Value = – $14,845.09
Explanation:
1. Determine the average rate of return on investment
Average rate of return on investment is the total net incomes from an investment divided the estimated life of the investment, and this is then divided by the cost of acquisition of the investment. This can be calculated for this question as follows:
Average income = Total net income / Estimated life = 123,000 / 4 = $30,750
Average rate of return on investment = Average income / Acquisition cost = $30,750 / $254,000 = 0.1211, or 12.11%
2. Determine the Net Present Value
Net present value is the difference between the present value of the acquisition of an investment and sum of the present values of all the net flows from the investment over its useful life.
Note: See the attached excel file to see how the net present value (NPV) is calculated.
Net Present Value = – $14,845.09
Conclusion
Since the Net Present Value is negative, it therefore implies the project is not a good investment.
Related Questions
A zero-coupon bond is selling at a deep discount price of $450. It matures in 11 years. If the yield to maturity of the bond is 6.2%, what is the duration of the bond (rounded to two places)
Answers
Answer:
Duration is 11 years
Explanation:
The Duration of a zero coupon bond is equal to it's maturity. Since it matures at 11 years the duration of the bond is therefore also 11 years.
It is a bond that pays no interest. A zero-coupon bond is a bond where the face value is what is repaid during the time of maturity. There are no periodic interest payments, or have so-called coupons, that is why they are referred to as zero-coupon bond. Investor gets par value when it matures.
The Monster Truck operates several specialty vehicles that provide hot food and beverages for firms that have workers employed in outlying regions. The company has annual sales of $627,200. Cost of goods sold average 38 percent of sales and the profit margin is 5.1 percent. The average accounts receivable balance is $35,300. On average, how long does it take the company to collect payment for its services
Answers
Answer:
The answer is 20.55 days
Explanation:
Solution
Given that:
Annual sales =$627,200
Average accounts receivable =$35,300
Now
The accounts turnover ratio (receivable) = Sales/Average accounts receivable
Accounts receivable turnover ratio = $627,200/$35.300
=17.76 times
Thus
Number of days payment receives = 365/ Accounts receivable turnover ratio =365 days/17.76 times
=20.55 days
Therefore The company takes 20.55 days to get payment for its services
The nation of Cranolia used to prohibit international trade, but now trade is allowed, and Cranolia is exporting furniture. Relative to the previous no-trade situation, buyers of furniture in Cranolia are now better off.
a. True
b. False
Answers
Answer:
if im correct its true but please check or make sure from someone else but im positive its true
Explanation:
How do you find the value of a bond, and why do bond prices change
Answers
Answer:
Explanation:
as the discount rate gets larger, the price of the bond will decrease. as the coupon rate increases, the bond price will increase. bond prices are calculated by taking the present value of the coupons and face value of bonds. If the coupons are larger, the present value of the coupons will also be larger.
Agricultural output is a large part of Econland's GDP. Particularly bad weather one year leads to an output that is smaller than normal, causing a shock to Econland's economy. Which of these correctly describes, from a Keynesian perspective, the impact of expansionary or contractionary monetary policy taken to address the situation?
A. Increase M1 to reduce inflation while having no impact on unemployment, or decrease M1 to reduce unemployment while having no impact on inflation.
B. Increase M1 to reduce both inflation and unemployment, or reduce M1 to increase both inflation and unemployment.
C. Increase M1 to reduce inflation while adding to unemployment, or decrease M1 to reduce unemployment while adding to inflation.
D. Increase M1 to reduce unemployment but adding to inflation, or decrease M1 to reduce the inflation while adding to unemployment.
Answers
Answer: D. Increase M1 to reduce unemployment but adding to inflation, or decrease M1 to reduce the inflation while adding to unemployment.
Explanation:
M1 is the money which consist of coins and physical currency, travelers checks, demand deposits, etc. M1 is the most liquid part of money supply due to the fact that it is made up of the currencies and the assets that can be changed to cash quickly.
From the question, we are told that agricultural output is a large part of Econland's GDP and that a bad weather resulted in a shock to Econland's economy. The best way to address the situation is to increase M1 to reduce unemployment but adding to inflation, or decrease M1 to reduce the inflation while adding to unemployment.
When money supply is increased, there will be more money in circulation which will bring about increase in demand and employers will employ more people due to this. It should also be noted that due to more money in circulation, there will be inflation which means rise in the prices of goods and services.
Therefore, the government has to choose between increasing M1 to reduce unemployment but adding to inflation, or decrease M1 to reduce the inflation while adding to unemployment.
In Rooney Company, direct labor is $20 per hour. The company expects to operate S at 10,000 direct labor hours each month. In January 2017, direct labor totaling $206,000 b is incurred in working 10,400 hours. Prepare (a) a static budget report and (b) a flexible P budget report. Evaluate the usefulness of each repor.
Answers
Answer and Explanation:
The preparation is presented below;
a. For a static budget report
Product line Budget Actual Difference
Direct labor $200,000 $206,000 $6,000 unfavorable
(10,000 direct labor hours × $20 per hour)
It is unfavorable as the budget is less than the actual
b. For a flexible budget report
Product line Budget Actual Difference
Direct labor $208,000 $206,000 $2,000 favorable
(10,400 direct labor hours × $20 per hour)
It is favorable as the budget is more than the actual
Jake, a pharmaceutical sales representative, often takes lunch to doctors' offices. Over lunch with the doctors and their staffs, he reviews his company's products. Jake does not try to close a sale during these lunches. What type of personal selling does this describe
Answers
Answer:
The correct answer is: order-creaters.
Explanation:
To begin with, the area of personal selling there are three types of different approaches regarding the sales person and his proper way of selling. According to this theory, one of those types is the one named "order-creaters" and that concept comprehends the type of sellers that primarily focos on not to close the sale, but to persuade the regular customer to promote the product to other clients from the same audience. Therefore that Jake, when goes to have launch in the same place as the doctors, even though he does not want to make a sale, he is looking forward to establish a relationship that later favoured him in promoting the product.
Bank fees for check printing are recorded by the bank as: Multiple Choice An increase in the bank’s asset account. A decrease in the bank’s asset account. A decrease in the depositor’s bank account. An increase in the depositor’s bank account.
Answers
Answer:
A decrease in the depositor’s bank account
Explanation:
The Bank fees are income to the Banks Financial Statements while they reflect a decrease in the assets of cash in the depositors bank account.
Therefore, Bank fees for check printing are recorded by the bank as a decrease in the depositors bank account.
Hulston Appliances Co. wants to introduce a new digital display, laser driven iron to the market. The estimated unit sales price is $44.00. The required investment is $88,000. Unit sales are expected to be 8,800 and the minimum required rate of return on all investments is 10.00%. Compute the target cost per iron.
Answers
Answer:
Target cost per unit = $43 per unit
Explanation:
Target cost is the cost at which a product must be produced and sold to achieve a desired profit margin
Target cost =(Sales revenue - (ROI × capital) )/ No of units
Target cost =( (44 × 8,800) - (10%× $88,000 ) )/ 8,800 guns
Target cost per unit = (387200 - 8800 ) / 8,800 units= $43 per unit
Target cost per unit = $43 per unit
Peanuts are an input in the production of peanut butter. If a decrease in the supply of peanuts increases the price of peanuts, what will happen to the equilibrium price and quantity in the peanut butter market?
Answers
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:
1 as follows: February 3, year 1 April 15, year 1 May 28, year 1 July 5, year 1 September 30, year 1 Number of shares Purchased (sold) 1,100 2,500 (750) 1,400 (4,000) Price per share $11 9 13 12 15 Janson traded stock in Flax Co. held as trading securities during year No other transactions took place for Flax during the remainder of the year. At December 31, year 1, Flax is trading at $10 per share. Janson trades securities on a last in, first out basis. What amount is the net value of the investment in Flax at year end
Answers
Answer: The net value of the investment in Flax at year end = $2,500
Explanation: Given from the question
Year 1 Number of shares Purchased (sold) Price per share
February 3, 1,100 $11
April 15, 2,500 $9
May 28, (750) $13
July 5, 1,400 $12
September 30, (4,000) #15
From the given values above, we can see that
Total number of shares purchased for the year 1 = 1,100 + 2500 +1400= $5000
Total number of shares sold for the year 1 = 4000 + 750 = $4,750
Share Balance = $5000 - $4,750 = $ 250
but flax is trading at $10 per share
Therefore the amount of net value of investment = $250 x $10 = $2,500
A company began its operations on April 1 of the current year. Budgeted sales for the first three months of business are $250,000, $320,000, and $410,000, respectively, for April, May, and June. The company expects to sell 50% of its merchandise for cash. Of sales on account, 60% are expected to be collected in the month of the sale, 40% in the month following the sale. The budgeted cash collections in May are:
Answers
Answer:
Total cash collection May= $306,000
Explanation:
Giving the following information:
Sales:
April= $250,000
May= $320,000
June= $410,0000
The company expects to sell 50% of its merchandise for cash. Of sales on account, 60% are expected to be collected in the month of the sale, 40% in the month following the sale.
Cash collection May:
Sales on cash May= 320,000*0.5= 160,000
Sales on Account May= (160,000*0.6)= 96,000
Sales on Account April= (250,000*0.5)*0.4= 50,000
Total cash collection May= $306,000
Ray presents information about the office supplies his company sells to a
business owner. The business owner seems interested, however, when Ray
ask her to commit to a purchase, she is hesitant and says her budget was
recently cut. Which of the following would be an effective way to handle the
customer's objections?
A. Provide a solution to this objection, such as offering a discount for
a year-long contract on office supplies.
B. Agree to check back with the business owner in six months to see
if her financial situation has changed.
C. Push the business owner to accept your offer, and don't back
down until you have a commitment.
D. Accept the that the business owner can't afford your office
supplies and move on to the next sale.
SUBMIT
Answers
The effective way to handle the customer's objections providing a solution to the objection.
Thus, the correct option is A.
What is a customer objection?Customer objections are the reservations a potential customer has that, at best, lead them to delay and, at worst, lead them to forego making an online purchase. People want to be certain they are buying a quality item.
Customer care refers to how well a business treats its clients and forges an emotional bond with them. Everyone on the team, not just a customer success manager or a customer service person, should be able to handle it.
Simply listening is the greatest way to do this. To understand the root of the client's distrust, pay attention to both what they say and what they choose to leave unsaid.
Learn more about customer objection, here
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Take the factors considered by earned value analysis and subtract those considered by tracking Gantt charts. The factor(s) you have remaining are:
a. Cost and schedule.
b. Performance.
c. Schedule and performance.
d. Cost.
Answers
Answer: cost
Explanation:
In earned value analysis also referred to as the gold triangle method, the cost, performance and time are considered. A tracking Gantt chart shows the stage of completion for every task. It allows individuals or project team make comparison between two sets of dates in order to track the progress of an acctivity against the original plan. Therefore, the tracking Gantt chart comsiders the performance and time.
Therefore cost is the only factor remaining
Your company is upgrading the breakroom and kitchen. It is going to include an expresso machine, a fridge with compartments for each employee, a sink, microwave, toaster oven, tables chairs, a rock wall, snacks for everyone, and maybe some other bells and whistles. Your managers think that by updating this area employees will not take as long of lunches. They understand this purchase will be at a cost. You are tasked with considering two different options and presenting them to management. Use a 5% interest rate. Walmart Kit Target First Cost $40,000 $65,000Annual Maintenance Cost $10,000 $12,000Salvage Value $12,000 $25,000Life Years 3 6 a. Using NPW (Net Present Worth Analysis) analysis determine which kitchen kit you should chooseb. Using EUAW (Equivalent Uniform Annual Worth) analysis determine which kitchen kit you should choose. C. You really want the Target kit because it looks nicer and has more bells and whistles. You are willing to keep these products around for longer and therefore extend the lives of these products. Perform the analysis to show that the Target option is the better choice. d. Now from your analysis in part b think about how ethical presenting this information to management would be. Write 2-3 sentences about how you would present this information in a way that showed your bias. You will be graded on your ability to consider two options in an ethical comparison and how you perceive your bias.
Answers
Answer:
1. In a Year 20,367 20,017
2. In a Year 21,333 21,917
3. In the case of NPW analysis Selected Target is best option because it is the better and cheaper investment while EUAM analysis states Walmart kit is better option,
4.Target is the best option because the cost difference is only around $600 which will last for 6 Years while in walmart case we will need to replace all the furniture in 3 Years .
Explanation:
1. Using NPW Analysis
Walmart Kit Target
Intial Cost 40000 65000
AMC 10000 12000
Salvage Value 12000 25000
Life Years 3 6
Total Cost
Intial Cost 40000 65000
Less Salvage 12000 25000
Balance 28000 40000
5% Interest 6000 19500
AMC PV 2.71 5.05
Amc 27100 60600
Total Cost 61100 120100
In a Year 20,367 20,017
2. Using EUAW Analysis
Walmart Kit
Target
Intial Cost 40000 65000
AMC 10000 12000
Salvage Value 12000 25000
Life Years 3 6
Total Cost
Intial Cost 40000 65000
Less Salvage 12000 25000
Balance 28000 40000
5% Interest 6000 19500
AMC 30000 72000
Total 64000 131500
In a Year 21,333 21,917
In the case of NPW analysis Selected Target is best option because it is the better and cheaper investment while EUAM analysis states Walmart kit is better option,
Target is the best option because the cost difference is only around $600 which will last for 6 Years while in walmart case we will need to replace all the furniture in 3 Years .
Hence Target product will be the best option we would advice the management to go for.
Trailblazer Company sells a product for $210 per unit. The variable cost is $105 per unit, and fixed costs are $588,000. Determine (a) the break-even point in sales units and (b) the sales units required for the company to achieve a target profit of $223,440.
Answers
Answer:
Instructions are below.
Explanation:
Giving the following information:
Trailblazer Company sells a product for $210 per unit. The variable cost is $105 per unit, and fixed costs are $588,000.
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 588,000/ (210 - 105)
Break-even point in units= 5,600 units
Desired profit= 223,440
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (588,000 + 223,440) / 105
Break-even point in units= 7,728 units
A company is considering constructing a plant to manufacture a proposed new product. The land costs $300,000, the building costs $600,000, the equipment costs $250,000, and $100,000 additional working capital is required. It is expected that the product will result in sales of $750,000 per year for 10 years, at which time the land can be sold for $400,000, the building for $350,000, and the equipment for $50,000. All of the working capital would be recovered at the EOY 10. The annual expenses for labor, materials, and all other items are estimated to total $475,000. If the company requires a MARR of 15% per year on projects of comparable risk, determine if it should invest in the new product line. Use the AW method. (Sullivan, 20180327, p. 234) Sullivan, W. G., Wicks, E. M., Koelling, C. P. (20180327). Engineering Economy, 17th Edition. [[VitalSource Bookshelf version]]. Retrieved from vbk://9780134838229 Always check citation for accuracy before use.
Answers
Answer:
$327,909.14
Explanation:
Calculation to determine if it should invest in the new product line.
First step
The Investment cost will be:
Land costs $300,000
Building costs $600,000
Equipment costs $250,000
Additional working capital $100,000
=$1,250,000
Annual revenue $750,000
Annual expenses$475,000
Market value:
$400,000 +$350,000 + $50,000 = $80,0000
N: 10 year
MARR: 15% per year
Using PW method
-$1250000 + ($750,000 – $475,000) (P/A, 15%, 10) +$ 80000(P/F, 15%, 10)
-$1250000-$275,000((1+15)^¹⁰−1/15(1+15)^¹⁰+$3000
Hence,
=-$1,250,000 – $275,000(5.0188) + $3000(0.2472)
= $327,909.14
Lincoln Company purchased merchandise from Grandville Corp. on September 30, 2018. Payment was made in the form of a noninterest-bearing note requiring Lincoln to make six annual payments of $4,600 on each September 30, beginning on September 30, 2021. (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: Calculate the amount at which Lincoln should record the note payable and corresponding purchases on September 30, 2018, assuming that an interest rate of 11% properly reflects the time value of money in this situation. Amount recorded
Answers
Answer:
Dr purchases $ 15,794.56
Cr notes payable $ 15,794.56
Explanation:
The present value of the annual payments of $4,600, starting in three years' time is computed as shown below:
PV of annual payments=$4600/(1+11%)^3+$4600/(1+11%)^4+$4600/(1+11%)^5+$4600/(1+11%)^6+$4600/(1+11%)^7+$4600/(1+11%)^8=$ 15,794.56
The amount of purchases and notes payable is $ 15,794.56
What provision in an independent contractor agreement states the associate will not hold the broker responsible for claims, demands, suits, costs or expenses based on the associates representation of the agreement
Answers
What provision in an independent contractor agreement states the associate will not hold the broker responsible for claims, demands, suits, costs or expenses based on the associates' representation of the agreement?
A) Disputes and Litigation
B) Termination of Agreement
C) Indemnification
D) Regulatory Compliance
Answer:
The correct option is C) Indemnification Clause
Explanation:
This simply means that if the associate is found liable by a third-party due to errors and omissions or any action of tort, the principal or the broker, will not be vicariously held liable.
This clause may seem unfair given that for the most part of the relationship, the associate and the broker are bound by similar interests. However, sometimes one party may become self-focused, and this results in errors which translate to lawsuits.
This clause is a way of protecting the Broker. It is also implied that the associate will also enjoy immunity from any costs and damages which the broke may be held liable to.
Cheers!
Prepare a multiple-step income statement through the calculation of gross profit.
For each transaction, indicate the impact each item had on income and the dollar amount of the change in income, if any. Input decreases to net income as negative values. Upon completion, compare the gross profit with the amount reported on the partial income statement.
Jul. 1 Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30,
FOB shipping point, invoice dated July 1.
Jul. 2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point,
invoice dated July 2. The merchandise had cost $500.
Jul. 3 Paid $125 cash for freight charges on the purchase of July 1.
Jul. 8 Sold merchandise that had cost $1,300 for $1,700 cash.
Jul. 9 Purchased merchandise from Leight Co. for $2,200 under credit terms of 2/15, n/60, FOB
destination, invoice dated July 9.
Jul. 11 Received a $200 credit memorandum from Leight Co. for the return of part of the merchandise
purchased on July 9.
Jul. 12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount.
Jul. 16 Paid the balance due to Boden Company within the discount period.
Jul. 19 Sold merchandise that cost $800 to Art Co. for $1,200 under credit terms of 2/15, n/60, FOB
shipping point, invoice dated July 19.
Jul. 21 Issued a $200 credit memorandum to Art Co. for an allowance on goods sold on July 19.
Jul. 24 Paid Leight Co. the balance due after deducting the discount.
Jul. 30 Received the balance due from Art Co. for the invoice dated July 19, net of discount.
Jul. 31 Sold merchandise that cost $4,800 to Creek Co. for $7,000 under credit terms of 2/10, n/60,
FOB shipping point, invoice dated July 31.
Answers
Answer:
inventory 6,000 debit
account payable 6,000 credit
--to record July 1st--
Acc Rec 900 debit
Sales Revenues 900 credit (+900 income)
--to record sale--
COGS 500 debit (-500 expense)
Inventory 500 credit
--to record cost of sale--
Delivery expense 125 debit (-125 expense)
Cash 125 credit
--to record freight-out --
Cash 1,700 debit
Sales Revenues 1,700 credit (+1,700 income)
--to record sale--
COGS 1,300 debit (-1,300 expense)
Inventory 1,300 credit
--to record cost of sale--
Inventory 2,200 debit
Account Payable 2,200 credit
--to record purchase--
Account Payable 200 debit
Inventory 200 credit
--to record return of goods--
Cash 882 debit
Sales DIscount 18 debit
Accounts Receivables 900 credit
--to record payment from customer--
Account Payable 6,000 debit
Cash 5,940 credit
Inventory 60 credit
--to record payment to supplier--
Cash 1,200 debit
Sales Revenues 1,200 credit (+1,200 income)
--to record sale--
COGS 800 debit (-800 expense)
Inventory 800 credit
--to record cost of sale--
Sales Returns 200 debit
Account Receivables 200 credit
-- to record return from customer--
Account Payable 2,000 debit
Cash 1,960 credit
Inventory 40 credit
--to record payment to supplier--
Cash 980 debit
Sales DIscount 20 debit
Accounts Receivables 1,000 credit
--to record payment from customer--
Cash 7,000 debit
Sales Revenues 7,000 credit (+7,000 income)
--to record sale--
COGS 4,800 debit (-4,800 expense)
Inventory 4,800 credit
--to record cost of sale--
Explanation:
Cheek
900 x 2% = 18
net of discount 900 - 18 = 882
Boden:
6,000 x 1% = 60
Net of discount 6,000 - 60 = 5,940
Leight:
2,200 - 2,000 = 2,000 balance due
2,000 x 2% = 40
net of discount 1,960
Art Co:
1,200 - 200 = 1,000 balance due
1,000 x 2% = 20 discount
net = 1,000 - 20 = 980
Lord Greystroke uses his limited income to purchase fruits and nuts; he is currently buying 10 pounds of fruits at a price of $2 per pound and 5 pounds of nuts at a price of $6 per pound. The last pound of fruits added 10 units to Lord Greystroke's total utility, while the last pound of nuts added 30 units. Lord Greystroke:__________.
1. is making the utility-maximizing choice.
2. should buy more fruits and less nuts because the last pound of fruits cost less than the last pound of nuts.
3. should buy more fruits and less nuts because the last dollar spent on fruits added more to total utility than the last dollar spent on nuts.
4. should buy more nuts and less fruits because the last pound of nuts added more to total utility than the last pound of fruits.
5. should buy more nuts and less fruits because the last dollar spent on nuts added more to total utility than the last dollar spent on fruits.
Answers
Answer:
1. Is the answer
Explanation:
the utility-maximizing choice between consumption goods happens where the marginal utility per dollar is the same for both goods, and the consumer has finished his or her budget. By buying 10 pounds of fruits at a price of $2 per pound and 5 pounds of nuts at a price of $6 per pound. The last pound of fruits added 10 units to Lord Greystroke's total utility, while the last pound of nuts added 30 units. Lord Greystroke is utilizing this concept
The average cost method of process costing differs from the FIFO method of process costing in that the average cost method: Group of answer choices Requires that ending work in process inventory be stated in terms of equivalent units of production. b. Can be used under any cost-flow assumption. c. Does not consider the degree of completion of beginning work in process inventory when computing equivalent units of production. d. Considers the ending work in process inventory only partially complete.
Answers
Answer:
c. Does not consider the degree of completion of beginning work in process inventory when computing equivalent units of production.
Explanation:
The average cost method of process costing differs from the FIFO method of process costing in that it does not consider the degree of completion of beginning work in process inventory when computing equivalent units of production.
The average method Equivalent units of Production include goods transferred out and ending inventory whereas FIFO method Equivalent units of Production include goods transferred out ,ending inventory and beginning inventories as well.
FIFO accounts only for the current period costs whereas average costs account for average cost on the whole.
An average cost method of process costing differs from the FIFO method of process costing because its does not consider the degree of completion of beginning work in process inventory when computing equivalent units of production.
The average method Equivalent units of Production include
goods transferred outending inventoryThe FIFO method Equivalent units of Production include
goods transferred out ending inventorybeginning inventories as well.
The FIFO accounts only for the current period costs whereas average costs account for average cost on the whole.
Hence, the average cost method differs because its does not consider the degree of completion of beginning work in process inventory when computing equivalent units of production.
Therefore, the Option C is correct.
Read more about average cost method
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ou just won $80,000 on a scratch-off lottery ticket. You plan to save the money in a retirement account expected to return 9% per year. If you intend to retire in 45 years, how much are these lottery winnings expected to be worth when you retire?
Answers
Answer: $3,866,182.89
Explanation:
The winnings in 45 years are the future value of the $80,000 that you just won based on the return rate of 9%.
Future Value = Present Value ( 1 + return) ^ number of years
= 80,000 ( 1 + 0.09) ⁴⁵
= $3,866,182.89
Lottery winnings will be worth $3,866,182.89 when you retire.
Rinehart Corporation purchased from its stockholders 5,000 shares of its own previously issued stock for $255,000. It later resold 2,000 shares for $54 per share, then 2,000 more shares for $49 per share, and finally 1,000 shares for $43 per share. Prepare journal entries for the purchase of the treasury stock and the three sales of treasury stock. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Answers
Answer:
Purchase
Treasury Stock $255,000 (debit)
Cash $255,000 (credit)
Sale 1.
Cash $108,000 (debit)
Common Stock $108,000 (credit)
Sale 2.
Cash $98,000 (debit)
Common Stock $98,000 (credit)
Sale 3.
Cash $43,000 (debit)
Common Stock $43,000 (credit)
Explanation:
When a Company purchases its own shares
De-recognize the Assets of Cash and also de-recognize the Equity item Treasury Stock.
When a Company sales its own shares
Recognize the Assets of Cash and recognize the equity item Common Stock.
Monica discovered that she can bake five pies in three hours without giving up production of any cakes. If she were operating on the production possibilities curve, this would be an example of increasing opportunity cost. decreasing opportunity cost. constant opportunity cost. zero opportunity cost. static opportunity coss.
Answers
Answer:
Zero opportunity cost
Explanation:
Opportunity cost in business is defined as the value of an alternative forgone to arrive at a more favorably valued option in the course of making a decision. Opportunity cost is necessary as every alternative is considered to have alternative usages.
However , in a situation where no alternative option is given up in arriving at a particular decision , or the given up alternatives have no value to you, it is said that the selected decision comes with no opportunity cost , that is it has a zero opportunity cost.
As Monica could still afford to bake five pies in three hours without giving up the production of any cakes , the production of pies had zero opportunity cost.
A corporation can earn 7.5% if it invests in municipal bonds. The corporation can also earn 8.30% (before-tax) by investing in preferred stock. Assume that the two investments have equal risk. What is the break-even corporate tax rate that makes the corporation indifferent between the two investments? Assume a 70% dividend exclusion for tax on dividends. (Do not round your intermediate answer and round your final answer to two decimal places.)
Answers
Answer:
32.13%
Explanation:
The computation of the break-even corporate tax is shown below:
As we know that
Municipal bond return = preferred stock return before tax × [1 - (1 - dividend exclusion) × Break even corporate tax]
7.5 = 8.30 × [1 - ( 1 - 0.70) × Break even corporate tax ]
7.5 ÷ 8.30 = 1 - 0.30 × Break even corporate tax
0.9036 = 1 - 0.30 × Break even corporate tax
0.30 × Break even corporate tax = 1 - 0.9036
So, Break even corporate tax is
= 0.0964 ÷ 0.30
= 32.13%
Basically we applied the above formula
From the following list, identify those that are likely to serve as source documents.
a. Sales ticket
b. Trial balance
c. Balance sheet
d. Telephone bill
e. Invoice from supplier
f. Company revenue account
g. Income statement
h. Bank statement
i. Prepaid insurance
Answers
Answer:
Telephone bill
Sales ticket
Invoice from supplier
Bank statement
Prepaid insurance
Explanation:
Source documents in accounting are defined as the original record of a transaction that contains transaction details and provides evidence that a transaction occurred.
It is source of information entered into the accounting system. They can be printed on paper or electronic in nature.
From the given list the following are source documents: Telephone bill, Sales ticket, Invoice from supplier, Bank statement, Prepaid insurance.
They are sources from which transaction information can be obtained for entry into the accounting system
The accounting department prepares a bank reconciliation at the end of each month. The following Table Dashboard is provided to assist in our reconciliation for the month of November.
Bank Balance is $15000 at 31th Oct.. Bank Balance is $9700 at 15th November. Bank Balance is $16028 at 30th November.
Book Balance is $15000 at 31th Oct. Book Balance is $9100 at 15th November. Book Balance is $16127 at 30th November.
Cash interest received on Bank Balance: Augugst $31, September $24, October $22 November $37.
Total Deposits in Transit November 30: $250
Outstanding Checks at Nov.30: Check#1203 : $100 Check#1278 : $78.
November Bank Fees: Check Printing Fees: $35, Service Fees: $15, Wire Transfer Fees: $14.
1. Determine the company's (a) bank balance and (b) book balance on November 30 before the bank reconciliation.
2. What is the amount of cash interest received in the month of November?
3. Which of the bank fees is the largest of those charged to the company in November?
Answers
Answer: Please see explanation for answer
Explanation:
Bank Reconciliation statement for the month of November
Balance from bank statement $16,028
Deposit in transit +250
Outstanding checks
check1203 -100
check 1278 -78
Total outstanding checks - 178
Adjusted cash balance $16,100
Balance from Company account $16,127
Interest earned $37
Bank fees
Check Printing Fees $35,
Service Fees: $15,
Wire Transfer Fees $14
Total Bank fees -64
Adjusted cash balance $16,100
1.The company's
(a) bank balance on November 30 before the bank reconciliation= $16,028
(b) book balance on November 30 before the bank reconciliation =$16,127
2. Amount of cash interest received in the month of November = $37.
3. Bank fees charged in November is given as
Check Printing Fees: $35, Service Fees: $15, Wire Transfer Fees: $14.
The largest here is the Check Printing Fees at $35
Five hundred small almond growers operate in areas with plentiful rainfall. The marginal cost of producing almonds in these locations is given by MC = 0.02Q, where Q is the number of crates produced in a growing season. Three hundred almond growers operate in drier areas where costly irrigation is required. The marginal cost of growing almonds in these locations is given by MC = 0.04Q.A. What is the individual supply curve for each type of almond grower? (Hint: remember that supply is the relationship between the quantity supplied and price). b. Using the individual supply curves from part a), derive the market supply curve.c) If the market demand for almonds is Qd = 105,000 - 2,500P, what will the equilibrium price of almonds be? The equilibrium quantity?
d) How many almonds will each type of almond grower produce at that price?
e) Verify that the total production of all almond growers equals the equilibrium quantity you found in part (c).
Answers
Answer:
Explanation:
a. The almonds growers will supply the quantity at which price is equal to the marginal cost. For growers with plentiful rainfall, MC = 0.02Q.
P = 0.02Q
Q = 50P
For almond growers that operate in drier areas, MC = 0.04Q
P = 0.04Q
Q = 1/0.04 × P
Q = 25P
b. Market supply curve will be the number total supply multiplied by the growers.
Qs = 500(50p) + 300(25p)
= 25000p + 7500p
= 32500p
c. To find the equilibrium price, quantity demanded must equate the quantity supplied.
Qd = 105,000 - 2,500P
Qs = 32500p
Qd = Qs
105,000 - 2500p = 32500p
32500p + 2500p = 105000
35000p = 105000
p = 105000/35000
p= 3
Equilibrium Price = 3
Since Q = 32500p
Q = 32500 × 3
Equilibrium quantity = 97500
d. For growers with plentiful rainfall
Q = 25000p
= 25000 × 3
= 75000
For almond growers that operate in drier areas, they will produce:
Q = 7500p
= 7500 × 3
= 22500
e. To verify that the total production of all almond growers equals the equilibrium quantity you found in part (c) will be:
75000 + 22500 = 97500
97500 = 97500
It has been verified. It is correct.
a. Janette and Lola, who are sisters, acquire an apartment building, ownership listed as joint tenancy with right of survivorship. Janette furnished $1,200,000 and Lola $800,000 of the $2,000,000 purchase price. Of the $800,000 provided by Lola, $200,000 had previously been received as a gift from Janette. When the property is worth $3,000,000, Janette died. What amount is included in Janette's gross estate
Answers
Answer:
The amount included in Janette's gross estate is $1,800,000
Explanation:
We cannot include the gisft gven ti Lora by Jannette as a part of Jannette's estate. Therefore, The git is part of Lora's estate.
To calculate the amount included in Jaettes gross estate it will be:
60 percent of the new price $ 3,000,000
(60/100)*$ 3,000,000= $1,800,000