Problem 8-15 Nonconstant Growth [LO1] Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $15 per share 10 years from today and will increase the dividend by 6 percent per year thereafter. If the required return on this stock is 12 percent, what is the current share price

Answers

Answer 1

Answer:

$84.14

Explanation:

P9 = Nest dividend (D10) / Required rate (r) - Growth rate (g)

P9 = $14 / 12% - 6%

P9 = $14 / 0.06

P9 = $233.33

P0 = P9 / (1+Required rate of return)^9

P0 = $233.33/(1+0.12)^9

P0 = $233.33/2.7731

P0 = $84.1404926

P0 = $84.14

So, the current share price is $84.14


Related Questions

The United States is said to have an absolute advantage in producing food compared with Japan. What does that mean?

It must import most of its food from Japan.
It produces food more efficiently than Japan.
It produces food at a higher cost than Japan.
It must export most of its food to Japan.

Answers

Answer:

It produces food more efficiently than Japan.

Explanation:

Given that an ABSOLUTE ADVANTAGE is when a country or company can produce the same quantity of goods more efficiently than another country or company with lesser input or produce more quantities of goods with more efficiently with the same input.

Hence, in this case, when it is said that the United States has an absolute advantage in producing food compared with Japan, it means that "It produces food more efficiently than Japan."

The correct answer would be B: It produces food more efficiently than Japan

watch the video " the best stats youve ever seen " then answer the questions.​

Answers

Answer:

thats a long video I'll pass

At the end of 2009, the following information is available for Clobes Company, Snyder Company, and Welz Company (you must show your calculations to receive full credit): Required: Which company has the highest level of financial risk? Using an appropriate ratio, support your answer. Which company is the most profitable from the owners' perspective? Using an appropriate ratio, support your answer. (3) Which company is getting the greatest return on assets? Show calculations.

Answers

Answer:

Answer is explained in the explanation section below.

Explanation:

Note: This question is incomplete and lacks necessary data to solve for this question. However I have found similar question on the internet and I will be using that data. Besides, I have attached the data used in the attachment below.

Solution:

1. The debt-to-equity ratio is the best way to assess financial risk. A higher debt-to-equity ratio indicates a higher level of financial risk. This ratio represents the willingness of the equity of the owners to fulfil their obligations.

Formula used:

Debt-to-equity ratio  =  Total liabilities divided by owner's equity

For Clobes:

Total liabilities = 100,000

Owners' equity =  200,000

Debt-to-equity ratio = 100000/200000 = 0.5

For Snyder:

Total liabilities = 300,000

Owners' equity = 200,000

Debt-to-equity ratio = 300000/200000 = 1.5  

For Welz:

Total liabilities = 300,000

Owners' equity = 100,000

Debt-to-equity ratio = 300000/100000 = 3

Welz faces the greatest financial risk because it has the highest debt-to-equity ratio. It has a debt-to-equity ratio of three. Even though it depends on the industry, a company's debt-to-equity ratio should be between 1 and 1.5 if it is considered optimal. In this case, Welz's financial risk is considerably higher.

2. calculate Return on Equity(ROE)

Formula used:

ROE = Net income / Owner's equity

For Clobes:  

Net income = 25,000

Owners' equity = 200,000

ROE = 25,000 / 200000 = 0.125

For Snyder:

Net income = 30,000

Owners' equity = 200,000

ROE = 30000 / 200000 = 0.15

For Welz:  

Net income = 20,000

Owners' equity = 200,000

ROE = 20000 / 100000 = 0.2

Welz has the highest return of equity (ROE) of 0.2.

As a result, Welz is the most profitable company.

3. Return on assets:

Formula used

Return on Assets = Net income / Total assets

For Clobes:  

Net income = 25,000

Total assets = 300,000

Return on Assets  = 25,000  / 300000 = 0.08

For Snyder:  

Net income = 30,000

Total assets = 500000

Return on Assets  = 30000 / 500000 = 0.06

For Welz:  

Net income = 20,000

Total assets = 400,000

Return on Assets  = 20000 / 400000 = 0.05

Hence,

Clobes has the highest return on assets, which is 0.08.

On January 1, 2021, The Barrett Company purchased merchandise from a supplier. Payment was a noninterestbearing note requiring five annual payments of $20,000 on each December 31 beginning on December 31, 2021, and a lump-sum payment of $100,000 on December 31, 2025. A 10% interest rate properly reflects the time value of money in this situation.Required:Calculate the amount at which Barrett should record the note payable and corresponding merchandise purchased on January 1, 2021.

Answers

Answer:

Barrett Company

The amount at which Barrett should record the note payable and corresponding merchandise purchased on January 1, 2021 is:

= $125,500.

Explanation:

a) Data and Calculations:

Non-interest-bearing note annual payment = $20,000

Date of annual payments = December 31

Lump sum payment on December 31, 2025 = $100,000

Interest rate reflecting the time value of money = 10%

The amount for the note payable and corresponding merchandise on January 1, 2021 is:

PV annuity factor for 4 years at 10% = 3.170

Total PV of annual payments = $63,400 ($20,000 * 3.170)

PV of lump-sum payment =         62,100 ($100,000 * 0.621)

Total PV of payments =           $125,500

Pearl Corporation reported net income of $49,100 in 2020. Depreciation expense was $17,200. The following working capital accounts changed.

Accounts receivable $11,200 increase
Available-for-sale debt securities 16,900 increase
Inventory 7,300 increase
Nontrade note payable 14,400 decrease
Accounts payable 13,300 increase

Required:
Compute net cash provided by operating activities. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Answers

Answer:

Net operating cash flow   $68,300

Explanation:

Operating cash flow is the amount of cash generated by a company from its main and normal business activity. This cash flow is useful to gauge the financial viability of a firm's business activity; the larger the better.

It is essentially computed as the net movement of cash inflow and outflow in respect of a business activities.

It is computed as follows:                          

                                                                  $

Net income                                              49,000

Add deprecation                                      17,200

Less increase in receivable                    (11.200)

add increase in payables                         13,300

Net operating cash flow                           68,300

Note that only items that relate to trading which is the core business area of the Pearl Corporation are considered. Depreciation is  added because it is a non-cash item initially deducted from net income.

An increase in receivable means a reduction in cash while an increase in payables implies cash savings

Net operating cash flow   $68,300

Flexible Budget for Selling and Administrative Expenses for a Service Company Cloud Productivity Inc. uses flexible budgets that are based on the following data: Sales commissions 14% of sales Advertising expense 18% of sales Miscellaneous administrative expense $6,500 per month plus 12% of sales Office salaries expense $28,000 per month Customer support expenses $12,000 per month plus 20% of sales Research and development expense $30,000 per month Prepare a flexible selling and administrative expenses budget for March for sales volumes of $400,000, $500,000, and $600,000. (Use Exhibit 5 as a model.)

Answers

Answer:

Selling and administrative expenses budget for March

Sales Volume                                             $400,000   $500,000  $600,000

Sales commissions at 14 %                           $56,000     $70,000     $84,000

Advertising expense at 18%                          $72,000    $90,000    $108,000

Miscellaneous at $6,500 + 12%                   $54,500      $66,500     $78,500

Office salaries at                                           $28,000     $28,000     $28,000

Customer support at $12,000 + 20%          $92,000     $112,000    $132,000

Research and development at                     $30,000     $30,000     $30,000

Total                                                             $332,500   $396,500    $460,500

Explanation:

A flexible is a budget that is adjusted to the actual activity. Thus, adjust the costs items to the appropriate Sales Volumes.

Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $630 were declared at the end of the year, and 590 additional shares of common stock ($0.10 par value per share) were issued at the end of the year for $2,910 in cash for a total at the end of the year of 810 shares). These effects are included below
Cash Catena's Marketing Company Adjusted Trial Balance End of the Current Year
Debit Credit
Cash $ 1,370
Accounts receivable 2,230
Interest receivable 170
Prepaid insurance 1,620
Long-term notes
receivable 2,890
Equipment 15,700
Accumulated depreciation $ 3.060
Accounts payable 2,400
Dividends payable 630
Accrued expenses payable 3,740
Income taxes payable 2,640
Unearned rent revenue 430
Common Stock (810 shares) 81
Additional paid in capital 3.589
Retained earnings 1,870
Sales revenue 38,780
Interest revenue 150
Rent revenue 760
Wages expense 20,700
Depreciation expense 1,700
Utilities expense
Insurance expense 760
Rent expense 7,880
Income tax expense 2,780
Total $58,130 $58,130
Prepare the closing entry at the end of the current year, (if no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answers

hey guys i posted a new on languages i just need from u the answers pls :(?

Suppose a monopolist is producing a level of output such that MR > MC. Which of the following best describes what will happen as the firm moves to its profit-maximizing equilibrium? A) Marginal revenue will rise and marginal cost will fall. B) Marginal cost and marginal revenue will both rise. C) Marginal revenue will fall and marginal cost will rise. D) Marginal cost and marginal revenue will both fall.

Answers

Answer: C) Marginal revenue will fall and marginal cost will rise.

Explanation:

The profit-maximizing equilibrium is the production point where the Marginal Revenue equals the Marginal cost.

As the monopolist moves towards this point, they will see their marginal costs increase because they will be producing more goods.

For a monopolist to sell more goods however, they will need to reduce their prices. This means that Marginal revenue will come down.

Marginal revenue will keep decreasing and Marginal cost will keep increasing until both of them become equal to each other.

Presented below is a condensed version of the comparative balance sheets for Ravensclaw Corporation for the last two years at December 31.

2019 2018
Cash $230,100 $101,400
Accounts receivable 234,000 240,500
Investments 67,600 96,200
Equipment 387,400 312,000
Accumulated Depreciation-Equipment (137,800 ) (115,700 )
Current liabilities 174,200 196,300
Common stock 208,000 208,000
Retained earnings 399,100 230,100

Additional information:
Investments were sold at a loss of $13,000; no equipment was sold; cash dividends paid were $39,000; and net income was $208,000.

Required:
Create a Statement of Cash Flows for 2019.

Answers

Answer:

Ravensclaw Corporation

Statement of Cash Flows for the year ended December 31, 2019:

Net income                           $208,000

Add non-cash expense:

Depreciation expense              22,100

Loss from sale of investment  13,000

Cash from operations         $243,100

Adjustments of working capital:

Accounts receivable               $6,500

Current liabilities                    -22,100

Net cash from operations $227,500

Investing activities:

Cash from investment sale   15,600

Equipment                            -75,400

Financing activities:

Cash dividends paid            -39,000

Net cash flows                   $128,700

Explanation:

a) Data and Calculations:

                                            2019          2018      Differences

Cash                               $230,100     $101,400  +$128,700

Accounts receivable       234,000     240,500   -$6,500

Investments                      67,600        96,200   -$28,600

Equipment                      387,400       312,000   +$75,400

Accumulated Depreciation-

Equipment                    (137,800)      (115,700)   +$22,100 Depreciation Exp.

Current liabilities           174,200       196,300     -$22,100

Common stock            208,000      208,000      $0

Retained earnings        399,100      230,100      +$169,000

Cash dividends                                                    +$39,000

Net income = $208,000 ($169,000 + $39,000)

Cash from sold investments = $15,600 ($28,600 - $13,000)

Muecke Inc. is working on its cash budget for April. The budgeted beginning cash balance is $40,000. Budgeted cash receipts total $150,000 and budgeted cash disbursements total $158,000. The desired ending cash balance is $50,000. To attain its desired ending cash balance for April, the company needs to borrow: Group of answer choices $18,000 $0 $50,000 $82,000

Answers

Answer:

See

Explanation:

Wildhorse Warehouse distributes hardback books to retail stores and extends credit terms of 4/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred. June 1 Purchased books on account for $2,265 (including freight) from Catlin Publishers, terms 4/10, n/30. 3 Sold books on account to Garfunkel Bookstore for $1,400. The cost of the merchandise sold was $800. 6 Received $65 credit for books returned to Catlin Publishers. 9 Paid Catlin Publishers in full. 15 Received payment in full from Garfunkel Bookstore. 17 Sold books on account to Bell Tower for $1,000, terms of 4/10, n/30. The cost of the merchandise sold was $850. 20 Purchased books on account for $800 from Priceless Book Publishers, terms 3/15, n/30. 24 Received payment in full, less discount from Bell Tower. 26 Paid Priceless Book Publishers in full. 28 Sold books on account to General Bookstore for $2,950. The cost of the merchandise sold was $830. 30 Granted General Bookstore $120 credit for books returned costing $60. Journalize the transactions for the month of June for Wildhorse Warehouse, using a perpetual inventor

Answers

Answer:

Wildhorse Warehouse

Journal Entries:

June 1: Debit Inventory $2,265

Credit Accounts payable (Catlin Publishers) $2,265

To record the purchase of goods on account, terms 4/10, n/30.

June 3: Debit Accounts receivable (Garfunkel Bookstore) $1,400  

Credit Sales Revenue $1,400

To record the sale of goods on account.

June 3: Debit Cost of goods sold $800

Credit Inventory $800

To record the cost of goods sold.

June 6: Debit Accounts payable (Catlin Publishers) $65

Credit Inventory $65

To record the return of goods on account.

June 9: Debit Accounts payable (Catlin Publishers) $2,200

Credit Cash $2,112

Credit Cash Discounts $88

To record the payment on account.

June 15: Debit Cash $1,400

Credit Accounts receivable (Garfunkel Bookstore) $1,400

To record the receipt of cash on account.

June 17: Debit Accounts receivable (Bell Tower) $1,000

Credit Sales Revenue $1,000

To record the sale of goods on account.

June 17: Debit Cost of goods sold $850

Credit Inventory $850

To record the cost of goods sold.

June 20: Debit Inventory $800

Credit Accounts payable (Priceless Book Publishers) $800

To record the purchase of goods on account, terms 3/15, n/30.

June 24: Debit Cash $960

Debit Cash Discounts $40  

Credit Accounts receivable (Bell Tower) $1,000

To record the receipt of cash on account.

June 26: Debit Accounts payable (Priceless Book Publishers) $800

Credit Cash $776

Credit Cash Discounts $24

To record the payment on account.

June 28: Debit Accounts receivable (General Bookstore) $2,950

Credit Sales Revenue $2,950

To receive the sale of goods on account.

June 28: Debit Cost of goods sold $830

Credit Inventory $830

To record the cost of goods sold.

June 30: Debit Sales Return $120

Credit Accounts receivable (General Bookstore) $120

To record the return of goods by a customer.

June 30: Inventory $60 Cost of Goods Sold $60

Explanation:

a) Data and Analysis:

Credit terms to all customers = 4/10, n/30.   This means that 4% discount is allowed to customers who pay within 10 days.  The credit period is for 30 days, after which the customer is expected to pay interest.

June 1: Inventory $2,265 Accounts payable (Catlin Publishers) $2,265; terms 4/10, n/30.

June 3: Accounts receivable (Garfunkel Bookstore) $1,400  Sales Revenue $1,400

June 3: Cost of goods sold $800 Inventory $800

June 6: Accounts payable (Catlin Publishers) $65 Inventory $65

June 9: Accounts payable (Catlin Publishers) $2,200 Cash $2,112 Cash Discounts $88.

June 15: Cash $1,400 Accounts receivable (Garfunkel Bookstore) $1,400

June 17: Accounts receivable (Bell Tower) $1,000 Sales Revenue $1,000

June 17: Cost of goods sold $850 Inventory $850

June 20: Inventory $800 Accounts payable (Priceless Book Publishers) $800; terms 3/15, n/30.

June 24: Cash $960 Cash Discounts $40  Accounts receivable (Bell Tower) $1,000

June 26: Accounts payable (Priceless Book Publishers) $800 Cash $776 Cash Discounts $24

June 28: Accounts receivable (General Bookstore) $2,950 Sales Revenue $2,950

June 28: Cost of goods sold $830 Inventory $830

June 30: Sales Return $120 Accounts receivable (General Bookstore) $120

June 30: Inventory $60 Cost of Goods Sold $60

Because testing of nuclear bombs was halted internationally in 1992, the Department of Energy has developed a laser system that allows engineers to simulate (in a laboratory) conditions in a thermo-nuclear reaction. Due to soaring cost overruns, a congressional committee undertook an investigation and discovered that the estimated development cost of the project increased at an average rate of 2% per six-months over a 5-year period. If the original cost was estimated to be $3.1 billion 5 years ago, what is the expected cost today?

Answers

Answer:

The estimated development cost of the project will increase from the original cost of $3.1 billion 5 years ago to $3.7727 billion today.

Explanation:

Data and Calculations:

Original estimated development cost = $3.1 billion

Average rate  of interest = 2% per six months or 4% per year (2 * 2%)

Period of project = 5 years using 4% or 10 using 2%

Using a future value factor of 1.217 from a future value table at 4% per year for 5 years:

The expected cost today = $3.1 billion * 1.217 = $3.7727 billion

Using an online financial calculator:

Results:

FV = $3,778,882,701.98

Total Interest $678,882,701.98

N (# of periods)  10

I/Y (Interest per year)  4

PV (Present Value)  $3,100,000,000

PMT (Periodic Payment)  0

Settings

P/Y (# of periods per year)  2

C/Y (# of times interest compound per year)  2

Suppose that a hot dog vendor uses a cart (K) and his time (L) to make and sell hot dogs. The vendor's production function is , where Q is the number of hot dogs per day. Suppose that the rental on hot dog carts is $50 per day and that the vendor wants to produce 500 hot dogs per day. The demand for labor is ____.

Answers

Answer:

L = 2084.75 W^-0.3

Explanation:

The computation of the demand of the labor is shown below:

At the optimum input

As we know that

MRTS = MPL ÷ MPK = w ÷ r

0.7(K ÷ L)^0.3 ÷ 0.3(L ÷ K)^0.7 = w ÷ 50

7K ÷ 3L = w ÷ 50

K = (3 ÷ 350)wL

Now apply the production function

Q = K^0.3L^0.7

500 = ((3 ÷ 350)wL)^0.3 L^0.7

500 = (3 ÷ 350)^0.3 × w^0.3 × L

L = 2084.75 × w^-0.3.

Olivia wants to buy some vacant land for investment purposes. She currently cannot afford the full purchase price. Instead, Olivia pays the landowner $8,000 to obtain an option to buy the land for $175,000 anytime in the next four years. Fourteen months after purchasing the option, Olivia sells the option for $10,000. What is the amount and character of Olivia's gain or loss

Answers

Answer:

$2,000 gain

Explanation:

Calculation to determine the amount and character of Olivia's gain or loss

Based on the information given we were told that she pays the landowner the amount of $8,000 in order for her to obtain an option to buy a land in which after purchasing the option she sells the option for the amount of $10,000 making her to gain the amount of $2,000.

Olivia's gain =$10,000-$8,000

Olivia's gain =$2,000

Therefore The amount and character of Olivia's gain will be $2,000

Answer: $2000

Explanation:

The amount and character of Olivia's gain or loss will be gotten by calculating the amount that Olivia paid the landowner $8,000 to obtain an option to buy the land and the amount she eventually sold the option. This will be:

= $10000 - $8000

= $2000

Therefore, she had a capital gain of $2000

The Board of Ursinus College in Pennsylvania raised its tuition and fees 17.6 percent to $23,460 in 2000. It subsequently received 200 more applications than the year before. The president of the college surmised that "applicants had apparently concluded that if the college cost more, it must be better." Other colleges that raised tuition to match rival colleges in recent years include University of Notre Dame, Bryn Mawr College, Rice University, and the University of Richmond. They also experienced an increase in applications. In contrast, North Carolina Wesleyan College lowered their tuition and fees about 10 years ago by 22 percent and attracted fewer students. The college president concluded that "it didn't work out the way it had been hoped. People don't want cheap."

You are hired as a consultant to a President of a liberal arts college in the East. You are asked to evaluate a recommendation by the college's Admissions Director. Susan Hansen, to increase tuition and to reduce financial aid to students. Susan argues that the data from competing colleges suggest that the demand curves for colleges slope upward-the quantity demanded increases with price. Susan projects that the increase in tuition and reduction in financial aid will solve the school's financial problems. Last year, the college enrolled 400 new students who each paid an effective tuition of $15,000 (after financial aid), totaling $6,000,000. She projects that with the increased demand from charging an effective tuition of $25,000, the college will be able to enroll 600 new students (of equal or better quality), totaling $15,000,000.

Required:
Evaluate Susan's analysis and recommendation

Answers

Solution :

The demand curve : The quantity demanded for each price

                                         [tex]$D=Q(P)$[/tex]

The prices goes up, quantity demanded will decreases.

The price goes up, quantity demanded will increase

Board of the Ursinus College in Pennsylvania raised tuition fees : $ 23,460 which is 17.6 % more to 2000.

The applicants : 200 more from previous year.

Therefore the college cost most, then it must be better.

Other rival competitions have also seen same scenarios. When cost goes down, the demand decreases.

Susan's perceptive :

Demand increases with cost increase and the demand curve slopes upwards.

Our understanding is completely different with the understanding of the college administrative officer, Susan.

Our understanding is negative slope of the demand curve other than change in price of any other parameter will lead to shift in demand curve, either in or out.

If all the tuitions fees are increased, then financial aid needs to be sponsored by the 'state'. That will effect reserves which leads to the failure of the sole purpose of aids.

Our recommendation should be to tell the board members the long term effects of the increase in the tuitions fees and no financial aid will create.

Theory Enterprises uses a standard cost system and prepared the following budget for May when 24,000 machine hours of activity were anticipated: variable overhead, $48,000; fixed overhead: $240,000. Actual data for May were: Standard machine hours allowed for output attained: 25,000 Actual machine hours worked: 24,000 Variable overhead incurred: $50,000 Fixed overhead incurred: $250,000 The variable-overhead spending and efficiency variances for Theory are: Variable-Overhead Spending Variance Variable-Overhead Efficiency Variance A. $ 0 $ 0 B. $ 0 $ 2,000 unfavorable C. $ 2,000 unfavorable $ 0 D. $ 2,000 favorable $ 2,000 unfavorable E. $ 2,000 unfavorable $ 2,000 favorable

Answers

Answer:

See below

Explanation:

a. Variable overhead spending variance

= AH × ( AR - SR)

Where

AH = Actual Hours worked = 24,000

AR = Actual variable overhead rate = $50,000

SR = Standard variable overhead rate = $48,000

Therefore,

Variable overhead spending variance

= 24,000 × ($50,000 - $48,000)

= $48,000

Inventory records for Dunbar Incorporated revealed the following:
Date Transaction Number Unit
of Units Cost
Apr. 1 Beginning inventory 550 $2.33
Apr. 20 Purchase 310 2.68
Dunbar sold 560 units of inventory during the month. Ending inventory assuming weighted-average cost would be:__________.
a. $737.
b. $694.
c. $817.
d. $752.

Answers

Answer:

a. $737.

Explanation:

The computation of the ending inventory using weighted average cost is shown below:

But before that first determine the average cost per unit

= (Beginning cost + purchase cost) ÷ (Beginning units + purchased units)

= (550 × $2.33 + 310 × $2.68) ÷ (550  units + 310 units)

= ($1,281.5 + $830.8) ÷ (860 units)

= $2.46

Now the ending inventory is

= (860 units - 560 units) × $2.46

= $737

How fast do you guys help students answer questions?

Answers

Usually takes 10 minutes it can be faster or longer I try to help everyone

Answer:

it depends on who is answering, what the question is, and what you want in the question. regularly answers come within 5 minutes, but if its really complicated then those questions almost never get answered

common stock definition.​

Answers

Answer:

Common stock is a security that represents ownership in a corporation.

Explanation:

Holders of common stock elect the board of directors and vote on corporate policies.

Marigold Corp. took a physical inventory on December 31 and determined that goods costing $155,000 were on hand. Not included in the physical count were $28,000 of goods purchased from Pelzer Corporation, FOB shipping point, and $21,800 of goods sold to Alvarez Company for $30,400, FOB destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Marigold report as its December 31 inventory

Answers

Answer: $‭204,800‬

Explanation:

When a good is shipped FOB shipping point, it means that the buyer assumes responsibility for the goods as soon as the goods reach the place they will be shipped from. The purchase from Pelzer should therefore be included in inventory because it has already been shipped.

A good shipped FOB Destination means that the buyer only assumes responsibility after the goods have been delivered to them. As the sale to Alvarez was still in transit, it is still the responsibility of Marigold and should be included in inventory.

Inventory is therefore:

= 155,000 + 28,000 + 21,800

= $‭204,800‬

is it possible for a company to be too liquid

Answers

Answer:

yes it is possible ......

Answer:

A company can have too much liquidity, which may be a sign that it's holding onto cash that could be invested. In a sense, even borrowing money is another typical source of liquidity for businesses. To meet its obligations, the ability to take out loans will be a factor in its liquidity.

Explanation:

The information below pertains to Barkley Company for 2015.
Net income for the year $2,240,000
9% convertible bonds issued at par ($1,000 per bond); each bond is convertible into 30 shares of common stock 2,112,000
6% convertible, cumulative preferred stock, $100 par value; each share is convertible into 3 shares of common stock 4,707,000
Common stock, $10 par value 6,959,000
Tax rate for 2015 45%
Average market price of common stock $25 per share
There were no changes during 2015 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury stock. The company also has common stock options (granted in a prior year) to purchase 75,800 shares of common stock at $15 per share.
(a) Compute basic earnings per share for 2015. (Round answer to 2 decimal places, e.g. $2.55.)
Basic earnings per share
$
(b) Compute diluted earnings per share for 2015. (Round answer to 2 decimal places, e.g. $2.55.)
Diluted earnings per share
$

Answers

Ok I am so sorry I don’t know the answer to this question 2/3 + 4:2

What is the most important change this student should make to her profile as she begins to apply to college?

(A)She should list the address for her high school.
(B)She should tell more about her summer experiences.
(C)She should describe her plans for her social life in greater detail.
(D)She should place less emphasis on partying and tell more about her future intentions.

Answers

Answer:

D

Explanation:

ong fam

Answer:

The other person is right.

Explanation:

On April 1, 2020, Rasheed Company assigns $400,000 of its accounts receivable to the Third National Bank as collateral for a $200,000 loan due July 1, 2020. The assignment agreement calls for Rasheed to continue to collect the receivables. Third National Bank assesses a fi nance charge of 2% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for a note of this type).

Required:
a. Prepare the April 1, 2020, journal entry for Rasheed Company.
b. Prepare the journal entry for Rasheed's collection of $350,000 of the accounts receivable during the period from April 1, 2014, through June 30, 2020.
c. On July 1, 2020, Rasheed paid Third National all that was due from the loan it secured on April 1, 2020. Prepare the journal entry to record this payment.

Answers

Answer:

1. Dr Cash 192,000

Dr Finance charge 8,000

Cr Notes payable 200,000

2. Dr Cash 350,000

Cr Accounts receivable 350,000

3. Dr Notes payable 200,000

Dr Interest expense 5,000

Cr Cash 205,000

Explanation:

A. Preparation of the April 1, 2020, journal entry for Rasheed Company.

Dr Cash 192,000

(200,000-8,000)

Dr Finance charge 8,000

(2%*400,000)

Cr Notes payable 200,000

B. Preparation of the journal entry for Rasheed's collection of the amount of $350,000 of the accounts receivable

Dr Cash 350,000

Cr Accounts receivable 350,000

C) Preparation of the journal entry to record all the amount that was due from the loan it secured on April 1, 2020

Dr Notes payable 200,000

Dr Interest expense 5,000

(10%*$200,000*3/12)

Cr Cash 205,000

(200,000+5,000)

Bruce Corporation makes four products in a single facility. These products have the following unit product costs:

Products
A B C D
Direct materials $16.10 $20.00 $13.00 $15.70
Direct labor 18.10 21.50 15.90 9.90
Variable manufacturing overhead 4.90 6.10 8.60 5.60
Fixed manufacturing overhead 28.00 14.90 15.00 17.00
Unit product cost 67.10 62.50 52.50 48.20

Additional data concerning these products are listed below.

Products
A B C D
Grinding minutes per unit 2.25 1.35 0.95 0.55
Selling price per unit $81.20 $73.60 $70.40 $65.10
Variable selling cost per unit $3.10 $3.60 $3.30 $4.00
Monthly demand in units 3,500 2,500 2,500 4,500

The grinding machines are potentially the constraint in the production facility. A total of 10,500 minutes are available per month on these machines. Direct labor is a variable cost in this company.

Required:
Which product makes the MOST profitable use of the grinding machines?

Answers

Answer:

Product D

Explanation:

Calculation to determine Which product makes the MOST profitable use of the grinding machines

First step is to calculate the Variable cost per unit

Products

A B C D

Direct materials $16.10 $20.00 $13.00 $15.70

Add Direct labor 18.10 21.50 15.90 9.90

Add Variable manufacturing overhead 4.90 6.10 8.60 5.60

Add Variable selling cost per unit $3.10 $3.60 $3.30 $4.00

Variable cost per unit $42.20 $51.60 $40.80 $35.20

Now let calculate the product that makes the MOST profitable use of the grinding machines

Selling price per unit $81.20 $73.60 $70.40 $65.10

Less Variable cost per unit $42.20 $51.60 $40.80 $35.20

=Contribution margin per unit $39 $22 $29.60 $29.90

÷Grinding minutes per unit 2.25 1.35 0.95 0.55

=Contribution per grinding minutes $17.33 $16.30 $31.16 $54.36

Therefore Based on the above calculation the product that makes the MOST profitable use of the grinding machines is PRODUCT D because it has the highest Contribution per grinding minutes of the amount of $54.36

For the coming year, Cleves Company anticipates a unit selling price of $100, a unit variable cost of $60, and fixed costs of $480,000.

Required:
1. Compute the anticipated break-even sales in units.
2. Compute the sales (units) required to realize a target profit of $240,000.
3. Construct a cost-volume-profit chart, assuming maximum sales of 20,000 units within the relevant range. From your chart, indicate whether each of the following sales levels would produce a profit, a loss, or break-even.

$1,200,000 SelectBreak-evenLossProfitItem 3
$1,000,000 SelectBreak-evenLossProfitItem 4
$800,000 SelectBreak-evenLossProfitItem 5
$400,000 SelectBreak-evenLossProfitItem 6
$200,000 SelectBreak-evenLossProfitItem 7

4. Determine the probable income (loss) from operations if sales total 16,000 units.

Answers

Solution :

1. The break even sales in units is given by :

   Break even sales in units = [tex]$\frac{\text{fixed cost}}{\text{contribution per unit}}$[/tex]

Where, contribution per unit = selling price per unit - variable cost per unit

The anticipated break even sales in units of Cleaves company in the coming year is :

Break even sales in units = [tex]$\frac{480,000}{40}$[/tex]

Contribution per unit = $ 100 - $ 60

                                   = $ 40

So the company anticipates its breakeven sales at 12,000 units.

2. In order tot earn profit the sales generated should overcome the breakeven point. The desired profit is $240,000, the sales required to earn the desired profit can be computed using the formula :

Desired sales in units = [tex]$\frac{\text{fixed cost + desired cost}}{\text{contribution per unit}}$[/tex]

                                    [tex]$=\frac{480,000+240,000}{40}$[/tex]

                                    = 18,000 units

Thus, the sales in units required to earn a profit of $ 240,000 are 18,000 units.

3. The sales in excess of the breakeven point would yield a profit on the contrary the sales below the breakeven point would result in a loss.

In the given sales in dollar =  breakeven sales in units x selling price per unit

                                           = 12,000 x 100

                                           = $ 1,200,000

∴ the sales above $1,200,000 would result in a profit whereas the sales below $1,200,000 would result in loss.

The cost volume profit chart below indicates the profit, loss, breakeven at different sales levels :

Sales levels           Result

1,200,000          Breakeven

1,000,000           Loss

800,000             Loss

400,000             Loss

200,000            Loss

4. The income on sale of 16,000 units is computed below :

Particulars                        Amount is $

Sales                                 1,600,000

Less : variable cost           960,000

Contribution                      640,000

Less : Fixed cost               480,000

Profit                                  160,000

The break-even sales in units are calculated as follows:

What is Break Even Point ?

Breakeven unit sales =

In this case, contribution per unit equals selling price per unit minus variable cost per unit.

The Cleaves Company's estimated break-even unit sales for the upcoming year are:

Breakeven unit sales =

Contribution per unit equals $100 minus $60.

= $ 40

The business therefore projects 12,000 units as its breakeven sales.

(2) 2. Sales must exceed the breakeven point in order to create a profit. The sales needed to achieve the desired profit, which is $240,000, can be calculated using the formula:

Ideally, sales would equal

= 18,000 units

Thus, the sales in units required to earn a profit of $ 240,000 are 18,000 units.

(3)  3. Sales beyond the breakeven threshold would result in a profit; sales below the breakeven point, on the other hand, would result in a loss.

Sales in dollars for the given period equal breakeven sales in units times selling price per unit.

= 12,000 x 100

= $ 1,200,000

Sales that exceed $1,200,000 generate a profit, whilst sales that go below that threshold generate a loss.

The following cost volume profit chart shows the profit, loss, and breakeven points at various sales levels:

Resulting sales levels

Breakeven is 1,000,000

1,000,000 Loss

800,000 Loss

400,000 Loss

200,000 Loss

4. The earnings from the sale of 16,000 units are calculated as follows:

Particulars The amount is $

Sales 1,600,000

Variable cost is 960,000 less.

640,000 dollars were contributed.

Less: 480,000 in fixed costs.

Gain of 160,000

Learn more about Break Even Point here

https://brainly.com/question/29063970

# SPJ 2

Equipment was sold for $50,000. The equipment was originally purchased for $85,000. At the time of the sale, the equipment had accumulated depreciation of $30,000. Calculate the gain or loss to be recorded on the sale of equipment. Multiple Choice Gain of $5,000. Loss of $35,000. Gain of $20,000. Loss of $5,000.

Answers

Answer:

Loss of $5,000

Explanation:

loss to be recorded on the sale of equipment is $5,000

Where will god show his lindings tgis will be a great amertica

Answers

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name two considerations by the Minister of finance when setting up a budget​

Answers

Answer:

1. Revenue

2. Expenditure

Explanation:

Given that a country's budget is a robust plan usually prepared by the government of the country under the watchful eye of the Minister of Finance which thereby is used in presenting the country's expected or predicted revenues and proposed expenditure for the subsequent financial year.

Hence, two considerations by the Minister of finance when setting up a budget​ are REVENUE and EXPENDITURE.

A food worker has prepared a large pot of rice that must be cooled. How should the food worker cool the rice safely?

Answers

Answer:

Cover the pot and leave it at room temperature.

Explanation:

That's how a food worker would cool rice safely.

Answer: Cover the pot and leave it at room temperature.

Explanation: took the test

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