Answer:
Economic motive.
Explanation:
An economic motive can be defined as the tendency of an investor or government to advocate and choose economic models, resources and factors of production that would positively and significantly impacts its economy.
In this scenario, Not-So-Free Freeland Freeland is a semi-closed economy whose government believes in protecting national identity and building a self-sustained economy. The government's priority is to protect local jobs and provide opportunities to Freeland's emerging industries to flourish without the threat of external competition. Freeland's efforts to provide opportunities to its emerging industries is an example of its economic motive because it would ensure that the jobs within the country is protected while creating opportunities for the company.
Which type of company only spends money when absolutely necessary?
20. The shipment of goods or rendering of services to a foreign buyer, located in a
foreign country is:
Importing
Exporting
Foreign Exchange
Importing and Exporting
Selected Financial Data
Fiscal Year 2017 2016 2015 2014 2013
(Millions, except per share amounts)
Summary of Operations
Net sales ........ $7,890 $7,961 $8,082 $8,268 $8,052
Earnings before interest and taxes ... 1,400 960 1,054 1,267 1,474
Earnings before taxes. 1,293 849 949 1,148 1,349
Earnings from continuing operations ....887 563 666 774 934
Earnings (loss) from discontinued operations 81 (231)
Net earnings . 887 563 666 855 703
Net earnings attributable to Campbell Soup Company
887 563 666 866 712
Financial Position Plant assets - net.$2,454 $2,407 $2,347 $2,318 $2,260
Total assets 7,726 7,837 8,077 8,100 8,290
Total debt 3,536 3,533 4,082 4,003 4,438
Total equity. 1,645 1,533 1,377 2,602 2,192
Per Share Data
Earnings from continuing operations attributable to Campbell Soup Company - basic
$ 2.91 $ 1.82 $ 2.13 $ 2.50 $ 3.00
Earnings from continuing operations attributable to Campbell Soup Company - assuming dilution.
2.89 1.81 2.13 2.48 2.97
Net earnings attributable to Campbell Soup Company - basic
2.91 1.82 2.13 2.76 2.27
Net earnings attributable to Campbell Soup Company - assuming dilution
2.89 1.81 2.13 2.74 2.25
Dividends declared 1.40 1.248 1.248 1.248 1.16
Other Statistics Capital expenditures .$ 338 $ 341 $ 380 $ 347 $ 336
Weighted average shares outstanding - basic.
305 309 312 314 314
Weighted average shares outstanding - assuming dilution.
307 311 313 316 317 dilution .
This problem is based on the 2017 annual report of Campbell Soup Company.
Required: Find in the Selected Financial Data or calculate, the following data:
a. Dividends per share declared in 2017.
b. Capital expenditures in 2016.
c. Year total equity grew by the greatest amount over the previous year.
d. Change in total debt from 2013 to 2017.
Find the following data for 2017 in the Notes to the Consolidated Financial Statements:
e. Amount of finished products inventory for 2017 in the Notes to the Consolidated Financial Statements.
f. The company's effective income tax rate for 2017 in the Notes to the Consolidated Financial Statements.
g. Net sales of the Global Biscuits and Snacks segment for 2017 in the Notes to the Consolidated Financial Statements. h. Market price range of common stock for the fourth quarter of 2017 in the Notes to the Consolidated Financial Statements.
Answer:
Campbell Soup Company
a. Dividends per share declared in 2017 is:
= $1.40.
b. Capital expenditure in 2016 is:
= $ 341 million.
c. Year total equity grew by the greatest amount over the previous year is 2014. It grew by 18.7%.
d. The total debt reduced by $902 million (about 20.3%) from 2013 to 2017.
Notes to the 2017 Consolidated Financial Statements:
e. Finished products inventory for 2017 is:
= $525 million
f. Effective income tax rate for 2017:
= 31.4%
g. Net Sales for the Global Biscuits and Snacks segment for 2017 is:
= $2,598 million.
h. Market price range of common stock for the fourth quarter of 2017 is:
$59.51 to $67.89
Explanation:
a) Data and Calculations:
Fiscal Year 2017 2016 2015 2014 2013
(Millions, except per share amounts)
Summary of Operations
Net sales $7,890 $7,961 $8,082 $8,268 $8,052
Earnings before interest and taxes 1,400 960 1,054 1,267 1,474
Earnings before taxes 1,293 849 949 1,148 1,349
Earnings: continuing operations 887 563 666 774 934
Earnings (loss) from discontinued operations 81 (231)
Net earnings 887 563 666 855 703
Net earnings attributable to
Campbell Soup Company 887 563 666 866 712
Financial Position:
Plant assets - net $2,454 $2,407 $2,347 $2,318 $2,260
Total assets 7,726 7,837 8,077 8,100 8,290
Total debt 3,536 3,533 4,082 4,003 4,438
Total equity 1,645 1,533 1,377 2,602 2,192
Highest Growth in equity 18.7% (2014)
Per Share Data
Earnings from continuing operations attributable to
Campbell Soup Company - basic $2.91 $1.82 $2.13 $2.50 $3.00
Earnings from continuing operations attributable to Campbell Soup
Company - assuming dilution 2.89 1.81 2.13 2.48 2.97
Net earnings attributable to Campbell
Soup Company - basic 2.91 1.82 2.13 2.76 2.27
Net earnings attributable to Campbell Soup
Company- assuming dilution 2.89 1.81 2.13 2.74 2.25
Dividends declared 1.40 1.248 1.248 1.248 1.16
Other Statistics:
Capital expenditures $ 338 $ 341 $ 380 $ 347 $ 336
Weighted average shares
outstanding - basic 305 309 312 314 314
Weighted average shares outstanding
- assuming dilution 307 311 313 316 317
Total debt in 2013 = 4,438
Total debt in 2017 = 3,536
Change = 902
Percentage change = -20.3%
Your firm is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land six years ago for $4.6 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent these facilities from a competitor instead. If the land were sold today, the company would net $5.4 million. The company wants to build its new manufacturing plant on this land; the plant will cost $11.2 million to build, and the site requires $713,900 worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project
Answer:
the proper cash flow amount is -$17,313,900
Explanation:
The computation of the proper cash flow amount is given below:
= Land value + plant cost + grading cost
= -$5,400,000 - $11,200,000 - $713,900
= -$17,313,900
Hence, the proper cash flow amount is -$17,313,900
Tim Legler requires an estimate of the cost of goods lost by a fire on March 9. Merchandise on hand on January 1 was $38,490. Purchases since January 1 were $93,260; freight-in, $4,700; purchase returns and allowances, $3,000. Sales are made at 33 1/3% above cost and totaled $143,400 to March 9. Goods costing $12,120 were left undamaged by the fire; remaining goods were destroyed.(a) Compute the cost of goods destroyed.(b) Compute the cost of goods destroyed, assuming that the gross profit is 33 1/3% of sales. (Round ratios for computational purposes to 5 decimal places, e.g. 78.72345% and final answer to 0 decimal places, e.g. 28,987.)
Answer:
(a) Cost of goods destroyed = $13,780
(b) Cost of goods destroyed = $25,730
Explanation:
(a) Compute the cost of goods destroyed.
Markup = Percentage at which sales are made above cost = 33 1/3% = 33.33333%
Margin = Markup / (1 + Markup) = 33.33333% / (1 + 33.33333%) = 25%
Sales = Cost of goods sold * (100% + Markup) ............ (1)
Substituting relevant value into equation (1) and solve for Cost of goods sold, we have:
$143,400 = Cost of goods sold * (100% + 33.33333%)
Cost of goods sold = $143,400 / (100% + 33.33333%) = $107,550
Cost of goods available for sale = Merchandise on hand on January 1 + Purchases since January 1 + Freight-in + Purchase returns and allowances = $38,490 + $93,260 + $4,700 - $3,000 = $133,450
Closing stock = Cost of goods available for sale - Cost of goods sold = $133,450 - $107,550 = 25,900
Cost of goods destroyed = Closing stock - Cost of goods left undamaged = $25,900 - $12,120 = $13,780
(b) Compute the cost of goods destroyed, assuming that the gross profit is 33 1/3% of sales. (Round ratios for computational purposes to 5 decimal places, e.g. 78.72345% and final answer to 0 decimal places, e.g. 28,987.)
Margin = gross profit percentage of sales = 33 1/3% = 33.33333%
Markup = Margin / (1 - Margin) = 33.33333% / (1 - 33.33333%) = 50%
Sales = Cost of goods sold * (100% + Markup) ............ (1)
Substituting relevant value into equation (1) and solve for Cost of goods sold, we have:
$143,400 = Cost of goods sold * (100% + 50%%)
Cost of goods sold = $143,400 / (100% + 50%) = $95,600
Cost of goods available for sale = $133,450
Closing stock = Cost of goods available for sale - Cost of goods sold = $133,450 - $95,600 = 37,850
Cost of goods destroyed = Closing stock - Cost of goods left undamaged = $37,850 - $12,120 = $25,730
Item 12 A production department's output for the most recent month consisted of 10,500 units completed and transferred to the next stage of production and 10,500 units in ending Work in Process inventory. The units in ending Work in Process inventory were 60% complete with respect to both direct materials and conversion costs. There were 1,100 units in beginning Work in Process inventory, and they were 80% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method.
Answer:
Total equivalent units= 16,800
Explanation:
Giving the following information:
Beginning inventory= 1,100 units 80% complete
Units produced= 10,500 units
Ending WIP= 10,500 60% complete
The weighted average method blends the costs and units of the previous period with the costs and units of the current period.
Beginning inventory= 0
Units completed in the period= 100%
Ending inventory WIP= units*completion
In this exercise:
Beginning inventory= 0
Units completed in the period= 10,500
Ending inventory WIP= 10,500*0.6
Total equivalent units= 16,800
A project has expected sales of 15,000 units, plus or minus 4 percent, variable cost per unit of $120 plus or minus 3 percent, fixed costs of $311,000plus or minus 2 percent, and a sales price per unit of $168 plus or minus 2 percent. The depreciation expense is $74,000 and the tax rate is 35 percent. What is the contribution margin per unit for a sensitivity analysis using a variable cost per unit of $122
Answer:
$46
Explanation:
Calculation to determine the contribution margin per unit for a sensitivity analysis using a variable cost per unit of $122
Sales price per unit of $168
Less variable cost per unit ($122)
Contribution margin per unit $46
(168-$122)
Therefore the the contribution margin per unit for a sensitivity analysis using a variable cost per unit of $122 will be $46
Which of the following costs is most likely NOT included in a bill from the university for a college student living on campus?
Select the best answer from the choices provided.
OA. tuition
OB.
cell phone
Ос.
fees
OD. housing
Answer:
B. cell phone
Explanation:
Out of all the following costs, the most likely not to be included in a bill from the university for a college student living on campus is "Cell Phone."
This is because except a student is on full scholarship, Tuition is a must cost to be included in the bill.
Also, student fees that cover extra costs like insurance, and health care are usually included in student bills.
Similarly, the housing cost covers a hostel or off-campus accommodation for students. Hence it is also included in the student bill.
Hence, the correct answer is the cost of a "Cell phone." Which doesn't concern the school whether a student has or not.
The Department may choose to grant an exception to the examination requirement under certain circumstances. Which of the following situations would probably NOT be considered for an exemption?
Available options are:
A salesperson who has held a valid license within the last 3 years
A broker who surrendered his broker license and has been employed as a salesperson since the surrender
A broker associate who had a valid salesperson license five years ago
A broker associate who held a broker associate license two years ago
Answer:
A broker associate who had a valid salesperson license five years ago
Explanation:
The Department may choose to grant an exception to the examination requirement under certain circumstances except "a broker associate who had a valid salesperson license five years ago."
This is because in the United States, for the real estate brokers to renew a license they need to undergo an examination as part of the requirements. However, they may be granted an exception under specific situations such as
1. When they still hold a valid license within the last 3 years
2. When they hold broker associate valid license within the last two years
3. When they are now into salesperson employment.
Hence, considering the available options, the correct answer is "A broker associate who had a valid salesperson license five years ago."
Explain how the following events will affect the demand and supply curves for large SUVs. In each case explain whether the demand and supply curves will (i) move to the left; (ii) move to the right; or (iii) not move. b. The price of gasoline increases i. (3 points) How will this affect the demand curve for the good listed above
Answer:
As a result of the increase in price, it would become more expensive to own and fuel a large SUV. this would lead to a reduction in demand for large SUVs. As a result of this, the demand curve for Large SUVs would shift to the left
Explanation:
Your firm designs PowerPoint slides for computer training classes, and you have just received a request to bid on a contract to produce the slides for an eight-session class. From previous experience, you know that your firm follows an 85 percent learning rate. For this contract, it appears the effort will be substantial, running 50 hours for the first session. Your firm bills at the rate of $100/hour and the overhead is expected to run a fixed $600 per session. The finder will pay you a flat fixed rate per session. If your nominal profit margin is 20 percent, what will be the total bid price, the per session price, and at what session will you break even
Answer:
Answer is explained in the explanation section below.
Explanation:
To figure out the total bidding price, we must first figure out the total cost of all eight sessions.
To calculate the total expense, we must first determine the total number of hours required for each of the eight sessions.
Now that we know the learning rate is 85% and the first session took 50 hours, we can look up the coefficient of 8 under 85% in the learning curve table E3 and calculate it by the time spent on the first session. The average time taken for 8 sessions with an 85 percent learning curve would be the result.
Total time taken for 8 sessions = 50 x 5.936 (coefficient of 8 under 85% learning rate) = 296.8 = 297 hrs
Fixed cost = 600 x 8 = $4800
Variable cost = 100 x 297 = $29700
Total Cost = 29700 + 4800 = $34500
Total bid price = 34500 x 1.2 = $41400 (adding 20% profit margin on cost)
Price per session = 41400 / 8 = $5175
Break Even Session = 34500 / 5175
Break Even Session = 6.67
Hence, the total cost will be covered by the 7th session.
The conclusion details as below :
To know about the total bidding prices firstly we should know about the total cost of all the session.
We should know the number of hours provided to each Session .
As we all know the learning rates is 85% and the first beginning session took 50hrs, we can look up the coefficient of 8 under 85% in the learning curve table E3 and calculate it by the time spent on the first session
Total time taken for 8 sessions = 50 x 5.936 (coefficient of 8 under 85% learning rate) = 296.8 = 297 hrs
Fixed cost = 600 x 8 = $4800
Variable cost = 100 x 297 = $29700
Total Cost = 29700 + 4800 = $34500
Total bid price = 34500 x 1.2 = $41400 (adding 20% profit margin on cost)
Price per session = 41400 / 8 = $5175
Break Even Session = 34500 / 5175
Break Even Session = 6.67
So as per the above calculation , the cost will be covered by
the 7th Session.
For more information please refer the below link :
https://brainly.com/question/11105345
Harrison Forklift's pension expense includes a service cost of $26 million. Harrison began the year with a pension liability of $46 million (underfunded pension plan).
1. Interest cost, $7; expected return on assets, $20; amortization of net loss, $6.
2. Interest cost, $22; expected return on assets, $16; amortization of net gain, $6.
3. Interest cost, $22; expected return on assets, $16; amortization of net loss, $6; amortization of prior service cost, $7 million.
Required:
Prepare the appropriate general journal entries to record Harrison's pension expense in each of the above independent situations regarding the other components of pension expense ($ in millions).
Answer:
1. ($ in millions)
Dr Pension expense $19
Dr Plan assets (expected return on assets) $20
Cr PBO$33
Cr Net loss—AOCI(current amortization) $6
2. ($ in millions)
Dr Pension expense $26
Dr Plan assets (expected return on assets) $16
Dr Net gain—AOCI(current amortization) $6
Cr PBO $48
3. ($ in millions)
Dr Pension expense $45
Dr Plan assets (expected return on assets) $16
Cr PBO $48
Cr Net loss—AOCI(current amortization) $6
Cr Prior service cost (current Amortization) $7
Explanation:
Preparation of the appropriate general journal entries to record Harrison's pension expense
1. ($ in millions)
Dr Pension expense $19
($33+$6-$20)
Dr Plan assets (expected return on assets) $20
Cr PBO($26 service cost + $7 interest cost) $33
Cr Net loss—AOCI(current amortization) $6
2. ($ in millions)
Dr Pension expense $26
($48-$16-$6)
Dr Plan assets (expected return on assets) $16
Dr Net gain—AOCI(current amortization) $6
Cr PBO($26 service cost + $22 interest cost) $48
3. ($ in millions)
Dr Pension expense $45
($48+$6+$7-$16)
Dr Plan assets (expected return on assets) $16
Cr PBO($26 service cost + $22 interest cost) $48
Cr Net loss—AOCI(current amortization) $6
Cr Prior service cost (current Amortization) $7
A Master Limited Partnership (MLP) structure is limited to companies that receive 90% or more of their income from interest, dividends, real estate rents, gain from the sale or disposition of real property, income and gain from commodities or commodity futures, and income and gain from mineral or natural resources activities. True False
Answer:
True
Explanation:
Master limited partnership (MLP) is a publicly traded limited partnership.
MLP is a hybrid of a partnership and a corporation.
There are 2 types of partners in a MLP :
1. General partner : The general partner is engaged in the day to day running of the business. She has an unlimited liability.
2. Limited partner : the limited partner only contributes capital to the business. They are also known as silent partners
MLPs are treated as a limited partnership for tax purposes. A limited partnership has a pass through tax structure. To qualify for this pass through tax structure, MLPs must receive 90% or more of their income from interest, dividends, real estate rents, gain from the sale or disposition of real property, income and gain from commodities or commodity futures, and income and gain from mineral or natural resources activities.
. What happens when the domestic interest rate is lower than foreign interest rates?Foreign investment shift domestically
Answer:
Lower domestic interest rates should help to boost the economy, by increasing lending and investment. It also should depreciate the currency of the country, increasing exports and decreasing imports. This temporary depreciation of the currency should be offset in the short run, as more exports will eventually result in an appreciation. Foreign direct investment should also increase (at least temporarily) due to cheaper currency.
define debt economics.
Answer:
Debt, Something owed. Anyone having borrowed money or goods from another owes a debt and is under obligation to return the goods or repay the money, usually with interest. For governments, the need to borrow in order to finance a deficit budget has led to the development of various forms of national debt
Some characteristics of the determinants of nominal interest rates are listed as follows. Identify the components (determinants) and the symbols associated with each characteristic:
a. This is the premium that reflects the risk associated with changes in interest rates for a long-term security.
b. Over the past several years, Germany, Japan, and Switzerland have had lower interest rates than the United States due to lower values of this premium.
c. It is based on the bond’s marketability and trading frequency; the less frequently the security is traded, the higher the premium added, thus increasing the interest rate.
d. This is the rate for a short-term riskless security when inflation is expected to be zero.
e. This is the premium added as a compensation for the risk that an investor will not get paid in full.
Answer:
Explanation:
a. This is the premium that reflects the risk associated with changes in interest rates for a long-term security.
(determinants<>Nominal risk free rate)
( The Symbol<> rRF)
b. Over the past several years, Germany, Japan, and Switzerland have had lower interest rates than the United States due to lower values of this premium.
( Determinant<>Inflation premium)
(Symbol<>IP)
c. It is based on the bond’s marketability and trading frequency; the less frequently the security is traded, the higher the premium added, thus increasing the interest rate.
( Determinant<>Liquidity risk premium)
( Symbol<> LRP)
d. This is the rate for a short-term riskless security when inflation is expected to be zero.
(Determinant<> Real risk free rate)
( Symbol<>r)
e. This is the premium added as a compensation for the risk that an investor will not get paid in full.
(Determinant<> Default risk premium)
( Symbol<> DRP)
Sheffield Corp. includes one coupon in each bag of dog food it sells. In return for eight coupons, customers receive a leash. The leashes cost Sheffield $4 each. Sheffield estimates that 45 percent of the coupons will be redeemed. Data for 2020 and 2021 are as follows:______.
2020 2021
Bags of dog food sold 480000 620000
Leashes purchased 19000 24000
Coupons redeemed 110000 130000
The premium liability at December 31, 2015 is?
Answer: $108875
Explanation:
First, we calculate the Premium liability at December 31, 2020 which will be:
= (480,000 × 45%) - $110,000/8 × 4
= (216000 - 110000)/8 × 4.
= $53000.
Premium liability at December 31, 2021 will be:
= 53000 + [(620000 × 45%) - $130,000]/8 × 3
= 53000 + 55875
= $108875
A financial manager is considering two possible sources of funds necessary to finance a $10,000,000 investment that will yield $1,500,000 before interest and taxes. Alternative one is a short-term commercial bank loan with an interest rate of 8 percent for one year. The alternative is a five-year term loan with an interest rate of 10 percent. The firm's income tax rate is 30 percent.
Required:
a. What will be the firm's projected earnings under each alternative for the first year?
b. The financial manager expects short-term rates to rise to 11 percent in the second year. At that time long-term rates will have risen to 12%. What will be the firm's projected earnings under each alternative in the second year?
c. What are the crucial considerations when selecting between short- and long-term sources of finance?
Answer:
a. We have:
Firm's projected earnings under short-term loan for the first year = $490,000
Firm's projected earnings under long-term loan for the first year = $350,000
b. We have:
Firm's projected earnings under short-term loan for the second year = $280,000
Firm's projected earnings under long-term loan for the second year = $210,000
c. These include repayment terms, security available, the total cost of borrowing, business risk, the current capital gearing of the business, and among others.
Explanation:
a. What will be the firm's projected earnings under each alternative for the first year?
Firm's projected earnings under short-term loan for the first year = Investment yield - (Amount Borrowed * Short-term interest rate in the first year) - (((Investment yield - (Amount Borrowed * Short-term interest rate in the first year)) * Tax rate) = $1,500,000 - ($10,000,000 * 8%) - ((($1,500,000 - ($10,000,000 * 8%)) * 30%) = $490,000
Firm's projected earnings under long-term loan for the first year = Investment yield - (Amount Borrowed * Long-term interest rate in the first year) - (((Investment yield - (Amount Borrowed * Long-term interest rate in the first year)) * Tax rate) = $1,500,000 - ($10,000,000 * 10%) - ((($1,500,000 - ($10,000,000 * 10%)) * 30%) = $350,000
b. The financial manager expects short-term rates to rise to 11 percent in the second year. At that time long-term rates will have risen to 12%. What will be the firm's projected earnings under each alternative in the second year?
Firm's projected earnings under short-term loan for the second year = Investment yield - (Amount Borrowed * Short-term interest rate in the second year) - (((Investment yield - (Amount Borrowed * Short-term interest rate in the second year)) * Tax rate) = $1,500,000 - ($10,000,000 * 11%) - ((($1,500,000 - ($10,000,000 * 11%)) * 30%) = $280,000
Firm's projected earnings under long-term loan for the second year = Investment yield - (Amount Borrowed * Long-term interest rate in the second year) - (((Investment yield - (Amount Borrowed * Long-term interest rate in the second year)) * Tax rate) = $1,500,000 - ($10,000,000 * 12%) - ((($1,500,000 - ($10,000,000 * 12%)) * 30%) = $210,000
c. What are the crucial considerations when selecting between short- and long-term sources of finance?
The crucial considerations when selecting between short- and long-term sources of finance include repayment terms, security available, the total cost of borrowing, business risk, the current capital gearing of the business, and among others.
XYZ Corp. applies manufacturing overhead costs to products at a budgeted indirect-cost rate of $65 per direct manufacturing labor-hour. A retail outlet has requested a bid on a special order of a necklace. Estimates for this order include: Direct materials of $35,000; 250 direct manufacturing labor-hours at $25 per hour; and a 30% markup rate on total manufacturing costs.
Estimated total product costs for this special order equal________
Answer:
Total production costs= $57,500
Explanation:
Giving the following information:
Estimated manufacturing overhead rate= $65 per direct manufacturing labor-hour.
Direct materials of $35,000
250 direct manufacturing labor-hours at $25 per hour
First, we need to allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 65*250= $16,250
Now, the total production costs:
Total production costs= 35,000 + 25*250 + 16,250
Total production costs= $57,500
Chemco Enterprises is the manufacturer of Ultra-Dry, a hydrophobic coating that will waterproof anything. Over a 5-year period, the costs associ-ated with the pilot test product line were as fol-lows: first cost of $30,000 and annual costs of $18,000. Annual revenue was $27,000 and used equipment was salvaged for $4000. What rate of return did the company make on this product
Answer:
Chemco Enterprises
The rate of return that the company made on this product is:
= 15.83%
Explanation:
a) Data and Calculations:
Project duration = 5 years
Initial Cost = $30,000
Total Annual costs = 90,000 ($18,000 * 5)
Total costs $120,000
Total Annual revenue = $135,000 ($27,000 * 5)
Salvage value = 4,000
Total revenue = $139,000
Return = $19,000 ($139,000 - $120,000)
Rate of return = $19,000/$120,000 * 100) = 15.83%
b) The rate of return compares the gain from an investment or a product with the costs of the investment. The resulting figure is then expressed as a percentage.
Sun Corporation received a charter that authorized the issuance of 86,000 shares of $6 par common stock and 19,000 shares of $75 par, 7 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation:
2018
Jan. 5 Sold 12,900 shares of the $6 par common stock for $8 per share.
12 Sold 1,900 shares of the 7 percent preferred stock for $85 per share.
Apr. 5 Sold 17,200 shares of the $6 par common stock for $10 per share.
Dec. 31 During the year, earned $303,500 in cash revenue and paid $241,400 for cash operating expenses.
31 Declared the cash dividend on the outstanding shares of preferred stock for 2018. The dividend will be paid on February 15 to stockholders of record on January 10, 2019.
31 Closed the revenue, expense, and dividend accounts to the retained earnings account.
2019
Feb. 15 Paid the cash dividend declared on December 31, 2017.
Mar. 3 Sold 2,850 shares of the $75 par preferred stock for $95 per share.
May 5 Purchased 550 shares of the common stock as treasury stock at $6 per share.
Dec. 31 During the year, earned $254,200 in cash revenues and paid $171,000 for cash operating expenses.
31 Declared the annual dividend on the preferred stock and a 0.50 per share dividend on the common stock.
31 Closed revenue, expense, and dividend accounts to the retained earnings account. Sold 14,400 shares of the $3 par common stock for $5 per share.
Record the entries in the General Journal of Sun Corporation. Note: Enter debits before credits.
Answer:
Sun Corporation
Journal Entries:
Jan. 5: Debit Cash $103,200
Credit Common stock $77,400
Credit APIC-Common stock $25,800
To record the sale of 12,900 shares at $8.
Jan. 12: Debit Cash $161,500
Credit 7% Cumulative Preferred stock $142,500
Credit APIC-Preferred stock $19,000
To record the sale of 1,900 shares at $85 each.
Apr. 5: Debit Cash $172,000
Credit Common stock $103,200
Credit APIC-Common stock $68,800
To record the sale of 17,200 at $10 each.
Dec. 31: Debit Cash $303,500
Credit Revenue $303,500
To record the revenue earned for the year.
Debit Operating expenses $241,400
Credit Cash $241,400
To record the payment of operating expenses for the year.
Debit Preferred Dividends $9,975
Credit Dividends Payable $9,975
To record the declaration of 7% on preferred stock of $142,500.
Debit Revenue $303,500
Credit Retained Earnings $303,500
To close revenue to retained earnings account.
Debit Retained Earnings $241,400
Credit Operating Expenses $241,400
To close operating expenses to retained earnings account.
Debit Retained Earnings $9,975
Credit Preferred Dividends $9,975
To close preferred dividends to retained earnings.
Feb. 15 Debit Dividends Payable $9,975
Credit Cash $9,975
To record the payment of Preferred dividends.
Mar. 3: Debit Cash $270,750
Credit 7% Cumulative Preferred stock $213,750
Credit APIC-Preferred stock $57,000
To record the issue of 2,850 shares at $95.
May 5: Debit Treasury Stock $3,300
Credit Cash $3,300
To record the repurchase of 550 common shares at $6.
Dec. 31: Debit Cash $254,200
Credit Revenue $254,200
To record revenue earned.
Debit Operating expenses $171,000
Credit Cash $171,000
To record the payment of operating expenses.
Debit Preferred Dividends $24,938
Credit Dividends Payable $24,938
To record the declaration of 7% on preferred stock of $356,250.
Debit Common Stock Dividends $14,775
Credit Dividends Payable $14,775
To record the declaration of $0.50 per share (29,550 common stock shares outstanding).
Debit Revenue $254,200
Credit Retained Earnings $254,200
To close the revenue to the retained earnings account.
Debit Retained Earnings $171,000
Credit Operating expenses $171,000
To close the operating expenses to the retained earnings account.
Debit Retained Earnings $39,713
Credit Preferred Dividends $24,938
Credit Common Stock Dividends $14,775
To close the dividends to the retained earnings account.
Explanation:
a) Data and Analysis:
Authorized share capital:
Common stock, 86,000 shares of $6 par
Outstanding common stock:
Jan. 5 = 12,900
Apr. 5 = 17,200
May 5 = (550)
Total = 29,550 shares
7% Cumulative Preferred stock, 19,000 shares of $75 par
Outstanding preferred stock:
Jan. 12 = 1,900
Mar. 3 = 2,850
Total = 4,750 shares
APIC = Additional Paid-in Capital
Jan. 5: Cash $103,200 Common stock $77,400 APIC-Common stock $25,800 (12,900 * $8)
Jan. 12: Cash $161,500 7% Cumulative Preferred stock $142,500 APIC-Preferred stock $19,000 (1,900 * $85)
Apr. 5: Cash $172,000 Common stock $103,200 APIC-Common stock $68,800 (17,200 * $10)
Dec. 31: Cash $303,500 Revenue $303,500
Operating expenses $241,400 Cash $241,400
Preferred Dividends $9,975 Dividends Payable $9,975 (7% of $142,500)
Revenue $303,500 Retained Earnings $303,500
Retained Earnings $241,400 Operating Expenses $241,400
Retained Earnings $9,975 Preferred Dividends $9,975
Feb. 15 Dividends Payable $9,975 Cash $9,975
Mar. 3: Cash $270,750 7% Cumulative Preferred stock $213,750 APIC-Preferred stock $57,000 (2,850 * $95)
May 5: Treasury Stock $3,300 Cash $3,300 (550 * $6)
Dec. 31: Cash $254,200 Revenue $254,200
Operating expenses $171,000 Cash $171,000
Preferred Dividends $24,938 Dividends Payable $24,938 (7% of $356,250)
Common Stock Dividends $14,775 Dividends Payable $14,775 ($0.50 * 29,550)
Revenue $254,200 Retained Earnings $254,200
Retained Earnings $171,000 Operating expenses $171,000
Retained Earnings $39,713 Preferred Dividends $24,938 Common Stock Dividends $14,775
There are no shares of $3 par common stock. This transaction is not treated here.
The total sales of a product, by all competitors in the industry, is:____.a. highest in the introduction stage.b. lowest in the market maturity stage.c. highest in the sales decline stage.d. lowest in the market growth stage.e. lowest in the market introduction stage.
Answer:
The total sales of a product, by all competitors in the industry, is:____
e. lowest in the market introduction stage.
Explanation:
The product life cycle refers to the time period when a product is first introduced to a market until it exits the market. There are four main stages in a product life cycle. They include introduction, growth, maturity, and decline. It is during the introduction phase that the total sales are lowest. The low sales are witnessed again during the latter stage of decline. The highest sales are achieved during the maturity stage.
define bond economics.
What is the folder in which the file named script is contained?
Answer:
The folder name is "script "
Mark Johnson saves a fixed percentage of his salary at the end of each year. This year he saved $3,000. For each of the next 5 years, he expects his salary to increase at an 4% annual rate, and he plans to increase his savings at the same 4% rate. There will be a total of 6 investments, the initial $3,000 plus five more. If the investments earn a return of 9% per year, how much will Mark have at the end of six years?
Answer:
Mark Johnson
At the end of six years, Mark will have:
= $26,945.
Explanation:
a) Data and Calculations:
Savings for the first year = $3,000
Annual rate of salary and savings increase = 4%
Interest rate = 9%
Savings for Year 2 = $3,120 ($3,000 * 1.04)
Savings for Year 3 = $3,245 ($3,120 * 1.04)
Savings for Year 4 = $3,375 ($3,245 * 1.04)
Savings for Year 5 = $3,510 ($3,375 * 1.04)
Savings for Year 6 = $3,650 ($3,510 * 1.04)
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Savings $3,000 $3,120 $3,245 $3,375 $3,510 $3,650
FV factor 1.677 1.539 1.412 1.295 1.188 1.090
FV = $5,031 $4,802 $4,592 $4,371 $4,170 $3,979
Total FV = $26,945
Total principal contribution = $19,900
Total interest = $7,045
This year Lloyd, a single taxpayer, estimates that his tax liability will be $11,350. Last year, his total tax liability was $15,900. He estimates that his tax withholding from his employer will be $8,655. Problem 8-77 Part-a (Algo) a. How much does Lloyd need to increase his withholding by (for the year), in order to avoid the underpayment penalty
Answer:
Lloyd needs to increase his witholding tax to $1,560 this year in order to avoid the underpayment penalty .
Explanation:
As a rule, a citizen can maintain a strategic distance from an underpayment of punishment if their retention and evaluated assessment installment measure up to or surpass one of the two safe harbours
90% of current expense risk = 90% × $11,350
= $10,215
100% of past assessment risk = $15,900
Since his(Lloyd) retention is not equal to or exceed $10,215 or $15,900
Llyod should expand retaining or make payment this year in order to stay away from underpayment punishment
= $10,215 - $8,655
= $1,560
What types of planning do you do in your personal life? Describe these
plans in terms of being (a) strategic or operational, (b) short term or long
term, and (c) specific or directional.
Answer:
Every day we perform series of activities in which few are very important while other may not be. But to perform every activity, we need to design the things systematically. We prioritize our activities as per their importance and then we take the action to make it fruitful. As per their value and importance we may develop following types of plan in our daily life;
Strategic or operational plan: Strategic or Operational Plan means an arsenal plan which tells how we can achieve the ultimate goal of our given task by creating clear and defined steps. As an operational plan, if we have an important task in our hand then we have to create step by step action which is oriented towards achievement of overall objective. Eg: If Periodical exams are due for...
Tiffany, who is married to Saul, takes out a $1,000,000 life insurance policy on Saul's life in 2008. Two years later they get divorced and Tiffany immediately remarries. Saul is not required to pay any alimony or child support to Tiffany after the divorce. In 2015, Saul dies. What will Tiffany collect on the life insurance policy, assuming she continued to pay all premiums due following their divorce?
a. $0, because Tiffany has no insurable interest.
b. $1,000,000, because Tiffany had insurable interest in Saul's life when the policy was purchased.
c. $1,000,000, because Tiffany had insurable interest in Saul's life at the time of his death.d. $0, because Saul was not ordered to pay alimony to Tiffany.
Answer:
b. $1,000,000, because Tiffany had insurable interest in Saul's life when the policy was purchased.
Explanation:
The correct answer is - b. $1,000,000, because Tiffany had insurable interest in Saul's life when the policy was purchased.
Given the following yield curve: One-year bonds yield 8.50%, two-year bonds yield 9.50%, three-year bonds and greater maturity bonds all yield 10.50%. All bonds are paying annual coupons of 9.50%, once a year. You strongly believe that at year-end the yield curve will be flatten around the 3 year rate. Calculate the one year total rate of return for the one-year bond.
Answer:
One year rate of return will be = 8.49%
Explanation:
Data Given:
One year bonds yield = 8.50%
Two Year Bonds Yield = 9.50%
Three Year Bonds Yield = 10.50%
Coupon = 9.50%
In this question, we are asked to calculate just one year total rate of return for the one-year bond only.
Solution:
Face value of the bond = $1000
For Current Price of One year bond, we need to use excel function.
But first multiply the coupon rate with face value i.e 0.0950 x 1000 = 95
= PV (0.0850, 1, -95, -1000)
Enter the above formula into excel to get the current price of the one year bond.
So,
= PV (0.0850, 1, 95, -1000) = $1009.22
Current Price of the bond = $1009.22
After 1 year, it will mature.
So,
Price of bond at the end of year.
So, now the excel function will be:
= PV (0.0850, 0, -95, -1000) = $1000
Price of bond at the end of year = $1000
Coupon rate = 9.50%
Coupon = 1000 x 0.0950
Coupon = 95
One year rate of return will be = (Price of the bond at the end of year + Coupon - Current price of the bond) divided by Current price of the bond.
One year rate of return will be = ($1000 + 95 - $1009.22)/$1009.22
One year rate of return will be = 0.0849 x 100
One year rate of return will be = 8.49%
M. Abadie and S. Collier combine their individual sole proprietorships to start the Abadie - Collier partnership. M. Abadie and S. Collier invest in the partnership as follows Book Value Fair Value Abadie Collier Abadie Collier Cash $20400 $6600 $20400 $6600 Accounts Receivable 10000 5400 10000 5400 Allowance for Doubtful Accounts (1600) (650) (2010) (820) Equipment 14400 23600 13100 8600 Accumulated Depreciation (3900) (8300) The entries to record the investment will include a credit to: Abadie, Capital of $40900. Collier, Capital of $19780. Abadie, Capital of $39300. Collier, Capital of $26480.