Answer:
Answer is explained in the explanation section below.
Explanation:
Solution:
Let the variable x denotes the labor time to clean and polish the car.
Let the variable y denotes the costs to clean and polish the car.
So,
Constraints Are:
1.5x + 2y [tex]\leq[/tex] 120
2.25x + 1.50y [tex]\leq[/tex] 135
Hence,
The objective function becomes:
Function for the maximum profits students can make is
Max Z = $7.75x + $8.50y
Which of the following completes the sentence, 'The target audience’s ________ will include the market’s social activities and styles, such as their level of social media participation, the channels they utilize and the communities in which they are active, and their behavior in social communities'?
Answer:
Social profile
Explanation:
The completes sentence is
'The target audience’s Social profile
will include the market’s social activities and styles, such as their level of social media participation, the channels they utilize and the communities in which they are active, and their behavior in social communities''
Social profile gives the description of social characteristics of different individuals which defined them on social media and in communities
Problem 5-13 Qualified Retirement Plans Including Section 401(K) Plans (LO 5.4) During 2020, Jill, age 39, participated in a Section 401(k) plan which provides for maximum employee contributions of 12%. Jill's salary was $80,000 for the year. Jill elects to make the maximum contribution. What is Jill's maximum tax-deferred contribution to the plan for the year
Answer:
Jill's maximum tax-deferred contribution to the plan for the year is $9,600.
Explanation:
Jill's maximum tax-deferred contribution to the plan for the year can be calculated as follows:
Maximum employee contributions provided for by Section 401(k) plan = 12%
Jill's salary = $80,000
Since Jill elects to make the maximum contribution, we have:
Jill's maximum tax-deferred contribution = Maximum employee contributions provided for by Section 401(k) plan * Jill's salary = 12% * $80,000 = $9,600
Therefore, Jill's maximum tax-deferred contribution to the plan for the year is $9,600.
The Lawrence Company records its trade accounts payable net of any cash discounts. At the end of 2016, Lawrence had a balance of $300,000 in its trade accounts payable account before any adjustments related to the following items: 1. Goods shipped to Lawrence FOB shipping point were in transit on December 31. The invoice price of the goods was $50,000, with a 2% discount allowed for prompt payment. 2. Goods shipped to Lawrence FOB destination on December 29 arrived on January 2, 2017. The invoice price of the goods was $9,000, with a 4% discount allowed for payment within 20 days. 3. On December 10, Lawrence had recorded a shipment received. The recorded invoice price was $24,750, net, with a 1% discount allowed for payment within 14 days. At the end of the year, payment had not been made. At what amount should Lawrence report trade accounts payable on its December 31, 2016 balance sheet
Answer:
The Lawrence Company
The amount that Lawrence should report trade accounts payable on its December 31, 2016 balance sheet is:
= $349,000.
Explanation:
a) Data and Calculations:
Trade accounts payable balance on December 31, 2016 = $300,000
1. Shipment at FOB Shipping point at $50,000(2% discount) 49,000
2. Shipment at FOB destination on December 29 (Jan. 2) 0
3. Already recorded invoice of $24,750 (with 1% discount) 0
Total value of accounts payable balance on December 31 $349,000
Income Statement Wayne Corporation had the following revenue and expense account balances (in millions) for a recent year ending May 31:
Depreciation Expense $925
Fuel Expense 3,228
Maintenance and Repairs Expense 1,573
Other Expense 4,995
Provision for Income Taxes 805
Purchased Transportation 1,203
Rentals and Landing Fees 1,748
Revenues 24,698
Salaries and Employee Benefits 8,815
Prepare an income statement.
Answer:
Income Statement
Revenue $24,698
Expenses
Salaries and employee benefits $8,815
Purchased Transportation $1,203
Fuel Expense $3,228
Rental and landing fees $1,748
Depreciation Expense $925
Maintenance and repairs expense $1,573
Provision for income taxes $805
Other expense (revenue) net $4,995
Total Expenses $23,292
Net Income $1,406
describe the role of the public sector
Answer:
The public sector includes all sorts of government (central, state, and local). It provides basic goods or services that are either not, or cannot be, provided by the private sector, for example, schools, roads, etc.
Explanation:
hope this helps!! please mark brainliest :))
On March 1, 2019, Rasheed Company assigns $825,000 of its accounts receivable to the Third National Bank as collateral for a $600,000 loan due April 1, 2019. The assignment agreement calls for Rasheed Company to continue to collect the receivables. Third National Bank assesses a finance charge of 2.5% of the accounts receivable, and interest on the loan is 8% (a realistic rate of interest for a note of this type).
Required:
a. Prepare the March 1, 2019, journal entry for Rasheed Company.
b. Prepare the journal entry for Rasheed's collection of $750,000 (need to factor out discounts and sales returns) of the accounts receivable during March of 2019. Sales discounts of $8,000 apply, as well as $22,000 of sales returns.
c. On April 1, 2019, Rasheed paid Third National all that was due from the loan it secured on March 1, 2019. Prepare the journal entry to record this payment.
Answer:
A.Dr Cash 579,375
Dr Finance charge 20,625
Cr Loan payable 600,000
Dr Accounts Receivable Assigned 825,000
Cr Accounts Receivable 825,000
b) Dr Cash 750,000
Cr Sales discounts 8,000
Cr Sales returns 22,000
Cr Accounts Receivable Assigned 720,000
c)Dr Loan Payable 600,000
Cr nterest expense 4,000
Cr Cash 596,000
Explanation:
a. Preparation for March 1, 2019, journal entry for Rasheed Company
March 01,2019
Dr Cash 579,375
(600,000-20,625)
Dr Finance charge (825,000*2.5%) 20,625
Cr Loan payable 600,000
(Loan amount received)
March 01,2019
Dr Accounts Receivable Assigned 825,000
Cr Accounts Receivable 825,000
(Assigning Accounts receivable)
b.Preparation of the journal entry for Rasheed's collection of the amount of $750,000 of the accounts receivable during March of 2019
March, 2019
Dr Cash 750,000
Cr Sales discounts 8,000
Cr Sales returns 22,000
Cr Accounts Receivable Assigned 720,000
(750,000-8,000-22,000)
C.Preparation of the journal entry to record this payment.
April 01,2019
Dr Loan Payable 600,000
Cr nterest expense (600,000*8%*1/12) 4,000
Cr Cash 596,000)
(600,000-4,000)
(Loan settled along with interest)
LUVFINANCE, Inc. is estimating its WACC. It is operating at its optimal capital structure. Its outstanding bonds have a 12 percent coupon, paid semiannually, a current maturity of 17 years, and sell for $1,162. It has 100,000 bonds outstanding. The firm can issue new 20-year maturity semiannual bonds at par but will incur flotation costs of $50 per bond. The firm could sell, at par, $100 preferred stock that pays a 12 percent annual dividend that is currently selling for $120. The firm currently has 1,000,000 shares of preferred stock outstanding. Rollins' beta is 0.94, the risk-free rate is 3.72 percent, and the market risk premium is 6 percent. The common stock currently sells for $100 a share and there are 5,000,000 shares outstanding. The firm's marginal tax rate is 40 percent.
Required:
What is the WACC?
Solution :
Given :
The cost of the debt is yield to the maturity of the bonds.
The yield on the bond is 10%
The tax rate is 40%
After the tax cost of the debt = 10 ( 1- 0.4 )
= 6 %
Add floatation cost at the rate of 5% = 11%
Cost of the preferred stock = [tex]$\frac{\text{dividend}}{\text{price}}$[/tex]
= [tex]$\frac{120}{12}$[/tex] = 10%
The cost of equity = risk free rate + β x market risk premium
= 3.72 + 0.94 x 6
= 9.36%
WACC is weighted average of the individual securities :
Particulars Value per No. of Market value Weight Cost of Product
security securities security
Bonds 1162 100,000 116,200,000 0.1578 11 1.73621298
Preferred 120 1,000,000 120,000,000 0.1629 10 1.6299918
stocks
Equity 100 5,000,000 500,000,000 0.6791 9.36 6.356968
736,200,000 1 WACC 9.7231730
Therefore, WACC of the firm is 9.72%
How much time is involved in an electrician?
Answer:
Maintenance electricians usually have regular work which they complete in a typical 40-hour week. Most keep regular business hours on weekdays and don't usually work on weekends, public holidays, or late at night. Some electricians work on-call and put in extra hours to troubleshoot urgent problems.Sep 20, 2017
Explanation:
During the course of your examination of the financial statements of Trojan Corporation for the year ended December 31, 2018, you come across several items needing further consideration. Currently, net income is $88,000.
A. An insurance policy covering 12 months was purchased on October 1, 2018, for $16,800. The entire amount was debited to Prepaid Insurance and no adjusting entry was made for this item in 2018.
B. During 2018, the company received a $2,800 cash advance from a customer for services to be performed in 2019. The $2,800 was incorrectly credited to Service Revenue.
C. There were no supplies listed in the balance sheet under assets. However, you discover that supplies costing $2,150 were on hand at December 31, 2018.
D. Trojan borrowed $58,000 from a local bank on September 1, 2018. Principal and interest at 12% will be paid on August 31, 2019. No accrual was made for interest in 2018.
Required:
Using the information in a. through d. above, determine the proper amount of net income as of December 31, 2018.
Answer: $80,830
Explanation:
A. 3 months of this insurance should have been for the year:
= 3/12 * 16,800
= $4,200
This should be treated as an expense.
B. The services have not yet being performed so this should not be recognized as revenue but rather as Unearned revenue. It has to be deducted from Net income.
C. These supplies should have been treated as assets but they were treated as expenses. They need to be added back to the net income to correct it.
D. The interest for the 4 months of the year from September to December should have been recorded.
= 58,000* 4/12 * 12%
= $2,320
This should be treated as an expense.
Adjusted Net income = 88,000 - 4,200 - 2,800 - 2,320 + 2,150
= $80,830
What are the benefits of multiple marketing channels? Are there any disadvantages?
Miao Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 3,000 client-visits, but its actual level of activity was 2,980 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July: Data used in budgeting: Fixed element per month Variable element per client-visit Revenue − $39.80 Personnel expenses $26,500 $12.30 Medical supplies 1,400 8.20 Occupancy expenses 8,200 1.00 Administrative expenses 5,300 0.40 Total expenses $41,400 $21.90 Actual results for July: Revenue $114,494 Personnel expenses $60,564 Medical supplies $26,936 Occupancy expenses $10,980 Administrative expenses $6,192 The administrative expenses in the planning budget for July would be closest to:
Assume the firms operating in an oligopolistic market experience a relatively small change in marginal costs. According to the kinked demand curve model this would: A) cause a large change in the profit-maximizing level of output. B) leave the equilibrium price unchanged. C) cause the profit-maximizing level of output to change by the same amount and in the same direction. D) cause the profit-maximizing price to change by the same amount but in the opposite direction.
Answer:
B) Leave the equilibrium price unchanged.
Explanation:
Oligopolistic market is the arrangement where few companies offer same product to the customers. There is very less competition in the market so every supplier has fair chance for operating their business successfully. The kinked demand model curve in oligopolistic market would leave the equilibrium price unchanged.
QS 8-7 Computing revised depreciation LO C2 On January 1, the Matthews Band pays $65,200 for sound equipment. The band estimates it will use this equipment for five years and after five years it can sell the equipment for $2,000. Matthews Band uses straight-line depreciation but realizes at the start of the second year that this equipment will last only a total of three years. The salvage value is not changed. Compute the revised depreciation for both the second and third years.
Answer:
$25,280 per year
Explanation:
The computation of the revised depreciation for both the second and third years is shown below:
But before that following calculations need to be done
Depreciation for year 1 = [Cost – Salvage Value] ÷Useful Life
= [$65,200 - 2,000] ÷ 5 Years
= $12,640
Now Book Value at point of revision is
= Cost - First year depreciation
= $65,200 - $12,640
= $52,560
Now
Remaining Depreciable Cost = Book Value at the point of revision - Salvage Value
= $52,560 – 2,000
= $50,560
And, finally Depreciation per year for Year 2 and 3 is
= Depreciable cost / Remaining useful life
= $50,560 ÷ 2 Year
= $25,280 per year
Lonergan Company occasionally uses its accounts receivable to obtain immediate cash. At the end of June 2021, the company had accounts receivable of $920,000. Lonergan needs approximately $570,000 to capitalize on a unique investment opportunity. On July 1, 2021, a local bank offers Lonergan the following two alternatives:
A. Borrow $570,000, sign a note payable, and assign the entire receivable balance as collateral. At the end of each month, a remittance will be made to the bank that equals the amount of receivables collected plus 10% interest on the unpaid balance of the note at the beginning of the period.
B. Transfer $620,000 of specific receivables to the bank without recourse. The bank will charge a 3% factoring fee on the amount of receivables transferred. The bank will collect the receivables directly from customers. The sale criteria are met.
Required:
1. Prepare the journal entries that would be recorded on July 1 for:
a. alternative a.
b. alternative b.
2. Assuming that 70% of all June 30 receivables are collected during July, prepare the necessary journal entries to record the collection and the remittance to the bank for:____.
a. alternative a.
b. alternative b.
Answer:
1.
ALTERNATIVE A
01-Jul
Dr Cash $570,000
Cr Notes Payable $570,000
ALTERNATIVE B
01-Jul
Dr Cash 601,400
Dr Loss on sale of receivables $18,600
Cr Accounts Receivables $620,000
2.
ALTERNATIVE A
Dr Cash $644,000
Cr Notes Payable $644,000
Dr Interest Expense $4,750
Dr Notes Payable 570,000
Cr Cash 574,750
ALTERNATIVE B
Dr Cash $210,000
Cr Accounts Receivable $210,000
Explanation:
1. Preparation of the journal entries that would be recorded on July 1 for alternative a and
alternative b.
ALTERNATIVE A
01-Jul
Dr Cash $570,000
Cr Notes Payable $570,000
(Notes payable collected)
ALTERNATIVE B
01-Jul
Dr Cash 601,400
($620,000-$18,600)
Dr Loss on sale of receivables $18,600 (3%*$620,000)
Cr Accounts Receivables $620,000
(Remittance to bank)
2. Preparation of the necessary journal entries to record the collection and the remittance to the bank for alternative a and
alternative b.
ALTERNATIVE A
Dr Cash (920,000 x 70%) $644,000
Cr Notes Payable $644,000
Dr nterest Expense($570,000 x 10%x 1/12) $4,750
Dr Notes Payable 570,000
Cr Cash 574,750
($570,000+$4,750)
ALTERNATIVE B
Dr Cash [ (920,000 -620,000)x 70%] $210,000
Cr Accounts Receivable $210,000
A lender is considering what terms to allow on a loan. Current market terms are 8 percent interest for 25 years for a fully amortizing loan. The borrower, Rich, has requested a $100,000 loan. The lender believes that extra credit analysis and careful loan control will have to be exercised because Rich has never borrowed such a large sum before. In addition, the lender expects that market rates will move upward very soon, perhaps even before the loan is closed. To be on the safe side, the lender decides to extend Rich a fixed rate, constant payment mortgage (CPM) loan commitment of $95,000 at 9 percent interest for 25 years. However, the lender wants to charge a loan origination fee to make the mortgage loan yield 10%. What origination fee should the lender charge? What fee should be charged if it is expected that the loan will be repaid after 10 years?
Answer:
1. The origination fee that the lender should charge if Rich will repay the loan after 25 years = $20,000 approximately.
2. The origination fee that the lender should charge if Rich will repay the loan after 10 years = $6,600 approximately.
Explanation:
a) Data and Calculations:
Amount requested by Rich = $100,000
Amount the bank is willing to lend Rich = $95,000
Interest rate = 9%
Period of loan = 25 years or 10 years
From an online finance calculator:
At 10% interest rate:
PMT = $-10,465.97
Sum of all periodic payments = $-261,649.17
Total Interest = $166,649.17
At 9% interest rate:
PMT = $-9,671.59
Sum of all periodic payments = $-241,789.84
Total Interest = $146,789.84
Expected Origination Fee:
Interest at 10% = $166,649.17
Interest at 9% = $146,789.84
Required origination fee = $19,859.32 ($166,649.17 - $146,789.84)
This is equivalent to $20,000
Payment after 10 years:
At 10% interest rate:
PMT = $-15,460.81
Sum of all periodic payments = $-154,608.13
Total Interest = $59,608.13
At 9% interest rate:
PMT = $-14,802.91
Sum of all periodic payments = $-148,029.09
Total Interest = $53,029.09
Expected Origination Fee:
Interest at 10% = $59,608.13
Interest at 9% = $53,029.09
Required origination fee = $6,579.04 or $6,600 ($59,608.13 - $53,029.09)
When auditing the existence assertion for an asset, auditors proceed from the: Multiple Choice General ledger back to the supporting original transaction documents. Financial statement amounts back to the potentially unrecorded items. Potentially unrecorded items forward to the financial statement amounts. Supporting original transaction documents to the general ledger.
Answer:
General ledger back to the supporting original transaction documents
Explanation:
In the case when auditing is done with the assertion of an asset i.e. existed so here the auditor would proceed from general ledger and back to the real documents i.e. supported to the business transactions
Therefore as per the given situation, the first option is correct
Answer the below case problem, giving the legal issue, the governing law and the rationale in support of your conclusion.
Arthur Jensen, Inc., was a corporation engaged in the housing construction business.
Arthur Jensen set up and was the sole owner and president of the corporation. Alaska Valuation Service [AVS] conducted housing appraisals for Jensen on numerous occasions over the years. When AVS took the orders for appraisals, it was not aware that it was dealing with a corporation. It believed that it was dealing directly with Jensen [i.e., as a sole proprietor]. Jensen never specifically informed AVS of his status as the president of Arthur Jensen, Inc. When AVS was not paid for appraisal services that it had performed, AVS sued Arthur Jensen, attempting to hold him personally liable for the unpaid appraisals.
Arthur Jensen argued that he could not be personally liable because he had acted on behalf of his corporation.
1. Decide the case based on the above stated facts.
2. Assuming Arthur Jensen could be held personally liable, how could Arthur
Jensen have better protected himself? [we discussed this in class]
Answer:
1. Decide the case based on the above stated facts.
Corporations provide limited liability to their owners, and one person corporations are legal in all states. Depending on how Arthur handled his business, the corporate veil might or not be lifted. If he separated the corporate account and managed the corporation separately for his other assets, then he is not liable.
On the other hand, if he paid the bills using his personal account, or used the corporation's assets as his own, then the outcome might change. We are not given enough details.
2. Assuming Arthur Jensen could be held personally liable, how could Arthur Jensen have better protected himself?
Simple, he should sign as the president of the corporation and pay using the corporation's account.
Question 7 (4 points)
Saved
Which of the following inestments would be considered the most liquid?
Question 7 options:
Real Estate
A one year CD
A standard savings account
A 401k
Nadine Chelesvig has patented her invention. She is offering a patent manufacturer two contracts for the exclusive right to manufacture and market her product. Plan A calls for an immediate single lump payment to her of $35,000. Plan B calls for an annual payment of $1,200 plus a royalty of $0.40 per unit sold. The remaining life of the patent is 10 years. Nadine uses a MARR of 7 %/year.
a. What must be the uniform annual sales volume of the product for Nadine to be indifferent between the contracts, based on a present worth analysis?
b. If the sales volume is below the volume determined in (a), which contract would the manufacturer prefer?
Answer:
A) 9458 units
B) She would prefer the one with the single lump payment of $35,000 because the present value of the other one would increase with an increase in the units sold.
Explanation:
A) To calculate the uniform annual sales volume based on a present worth analysis, we will make use of the formula for present value of annuity.
Thus;
P = PMT × (1 - ((1/(1 - rⁿ))/r
From the question, we are given;
P = $35,000
PMT = (1200 + 0.4x)
r = 7% = 0.07
n = 10
Thus, Plugging in the relevant values, we have;
(1200 + 0.4x)((1 - (1/(1 + 0.07)^10))/0.07 = 35000
This gives;
(1200 + 0.4x) × 7.0236 = 35000
(1200 + 0.4x) = 35000/7.0236
(1200 + 0.4x) = 4983.2
0.4x = 4983.2 - 1200
0.4x = 3783.2
x = 3783.2/0.4
x = 9458 units
B) She would prefer the one with the single lump payment of $35,000 because the present value of the other one would increase with an increase in the units sold.
Intercontinental Inc., uses a periodic inventory system. At the end of Year 2, the account records provided the following information relating to one of its products. Units Unit Cost Inventory, December 31, Year 1 1,830 $ 6 For Year 2: Purchase, March 21, Year 2 6,200 $ 5 Purchase, August 1, Year 2 4,070 $ 3 Inventory, December 31, Year 2 2,910 What is the amount of ending inventory and cost of goods sold under the LIFO inventory costing method
Answer:
Intercontinental Inc.
The amount of ending inventory is = $16,380
The cost of goods sold is = $37,810
Explanation:
a) Data and Calculations:
Units Unit Cost Total Cost
Inventory, December 31, Year 1 1,830 $ 6 $10,980
For Year 2: Purchase, March 21, Year 2 6,200 $ 5 31,000
Purchase, August 1, Year 2 4,070 $ 3 12,210
Total cost of inventory 12,100 $54,190
Inventory, December 31, Year 2 2,910 16,380
Cost of units sold 9,190 $37,810
Cost of ending inventory, 2,910
= 1,830 at $6 = $10,980
1,080 at $5 = 5,400
2,910 = $16,380
Cost of goods sold = Cost of inventory available minus the cost of ending inventory
= $54,190 - $16,380
= $37,810
Suppose two factors are identified for the U.S. economy: the growth rate of industrial production, IP, and the inflation rate, IR. IP is expected to be 4% and IR 6%. A stock with a beta of 1 on IP and 0.7 on IT currently is expected to provide a rate of return of 12%. If industrial production actually grows by 5%, while the inflation rate turns out to be 8%, what will be your expected rate of return on the stock, given the new information about the industrial production rate and the inflation rate
Answer:
14.4%
Explanation:
Calculation for what will be your expected rate of return on the stock.
Expected rate of return on the stock=12% + 1(5%-4%) + .7(8%-6%)
Expected rate of return on the stock=12%+1(1%)+.7(2%)
Expected rate of return on the stock=12%+1%+1.4%
Expected rate of return on the stock=14.4%
Therefore your expected rate of return on the stock is 14.4%
How have technological Innovations Increased risks in business organizations!
Answer:
Businesses are more susceptible to information leakages as a result of technological inventions.
They also have to spend more money in the purchase of technologies that might be expensive to maintain.
Explanation:
1. Business organizations carry out a lot of activities that center on information sharing. The advent of technologies comes with risks from hackers who might want to intrude in the information of the company. When the system is compromised, customers can be disappointed and important and sensitive information may be lost to attackers or competing organizations that might fund such attacks. This will impose an information risk to the company.
2. The purchase of new technologies come at a high price. Personnel conversant with the use and operation of these technologies may be hard to find and might require training to be effective in the use of these machines. These machines can easily fall into disuse when they are not properly maintained. This will impose a financial risk to the company.
Answer:
Businesses are more susceptible to information leakages as a result of technological inventions.
They also have to spend more money in the purchase of technologies that might be expensive to maintain.
Explanation:
Hope this helps
Find the following values. Compounding/discounting occurs annually. Do not round intermediate calculations. Round your answers to the nearest cent. a. An initial $400 compounded for 10 years at 5%. $ b. An initial $400 compounded for 10 years at 10%. $ c. The present value of $400 due in 10 years at 5%. $ d. The present value of $2,515 due in 10 years at 10% and 5%. Present value at 10%: $ Present value at 5%: $
Answer:
$651.56
$1037.50
$245.57
$969.64
$1543.99
Explanation:
The formula for calculating future value:
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
a. 400 x (1.05)^10 = $651.56
b. 400 x (1.1)^10 = $1037.50
formula for determining present value is
PV = f / (1 + r)^n
$400/ (1.05)^10 = $245.57
d. $2515 / (1.1)^10 = $969,64
$2515 / (1.05)^10 = $1543.99
If the efficient market hypothesis is correct, then a. index funds should typically beat managed funds, and usually do. b. index fund should typically beat managed funds, but usually do not. c. mutual funds should typically beat index funds, and usually do. d. mutual funds should typically beat index funds, but usually do no
Answer:
a. index funds should typically beat managed funds, and usually do.
Explanation:
The efficient market hypothesis is also known as efficient market theory. In financial economics, it is a hypothesis which states that the prices of the assets reflect all the available information. It hypothesizes that the stocks trade at the fair market value on the exchanges. When the efficient market hypothesis is correct, the stock market is informationally efficient and also the index fund usually beat the managed funds.
A shop can sell at most 200 pairs of socks and at most 100 pairs of shoes. To maximize the profit, they have decided to make 2 offers. Offer 1 is a package of 1 pair of socks and 1 pair of shoes. Offer 2 is a package of 3 pairs of socks and 1 pair of shoes. The shop sells offer 1 for 30$ and offer 2 for 50$. They also want to sell at least 20 packages of offer 1 and at least 10 packages of offer 2. How many packages of each offer do they have to sell to maximize the profit
Answer:
50 packages of offer 1 and 50 packages of offer 2
Explanation:
Determine How many packages of each offer do they have to sell to maximize the profit
Number of package of offer 1 = x
Number of package of offer 2 = y
Applying the LPP model
max Z = 30 x + 50 y ---- ( 1 )
now subject to the constraints from Linear programming
x + 3y ≤ 200 ------ L1
x + y ≤ 100 ------ L2
x ≥ 20 ------------- L3
y ≥ 10 -------------- L4
therefore the number of packages of each offer that can be sold to maximize profit will be : X = 50 and Y = 50 referring to equation from the LPP model considering that the shop can sell at most 100 pairs
An environmental consultant is considering the installation of a water storage tank for a client. The tank is estimated to have an initial cost of $309,000, and annual maintenance costs are estimated to be $7,100 per year. As an alternative, a holding pond can be provided a short distance away at an initial cost of $225,000 for the pond plus $90,000 for pumps and piping. Annual operating and maintenance costs for the pumps and holding pond are estimated to be $16,000. The planning horizon is 20 years, and at that time, neither alternative has any salvage value.
Required:
Determine the preferred alternative based on a present worth analysis with a MARR of 20 percent/year.
Answer:
The preferred alternative based on a present worth analysis with a MARR of 20% per year is:
the Installation of a water Storage Tank
Explanation:
a) Data and Calculations:
MARR = 20% per year
Time period or planning horizon = 20 years
Alternatives
Tank Pond
Initial costs $309,000 $315,000 ($225,000 + $90,000)
Annual maintenance costs 7,100 16,000
PV annuity factor 4.870 4.870
Total PV: maintenance cost $34,577 $77,920 ($16,000 * 4.870)
Total PW costs $343,577 $392,920 ($315,000 + $77,920)
Present worth is the same as the present value (PV) of a future amount, discounted to the present using a specified rate.
Firms manage a variety of current assets. Permanent current assets are necessary for firms to maintain their businesses, and they will be carried even through downturns in business cycles. Temporary current assets fluctuate seasonally or with business cycles. Firms must devise a financing strategy that best fits their business situation and that best manages their risk.
Use the following table to identify the different current asset financing policies
Description Financing policy
Long-term capital finances all fixed assets and the
non-seasonal portion of current assets, as well as
seasonal needs of current assets.
Long-term capital finances some permanent current assets,
but short-term debt finances all temporary current assets
and the remaining permanent current assets.
This current asset financing policy finances current assets
with liabilities that are expected to mature at the same time
the current asset will be liquidated.
Suppose a firm wants to take advantage of an upward-sloping yield curve. If the firm believes that interest rates will stay constant and it wants to use the current yield curve to bolster profits, which approach should the firm follow?
a. Conservative approach.
b. Maturity matching approach.
c. Aggressive approach.
Answer:
1.a. Long-term capital finances all fixed assets and the non-seasonal portion of current assets, as well as seasonal needs of current assets. ⇒ CONSERVATIVE APPROACH.
b. Long-term capital finances some permanent current assets, but short-term debt finances all temporary current assets and the remaining permanent current assets. ⇒ AGGRESSIVE APPROACH.
c. This current asset financing policy finances current assets with liabilities that are expected to mature at the same time the current asset will be liquidated. ⇒ MATURITY MATCHING APPROACH.
2. Conservative Approach
They should use the conservative approach by seeking long term financing for more permanent assets since the rates will increase in future. For now, seeing as rates are lower, they should use short-term debt for temporary current assets so that they can invest more and make more profit.
Bob is a farmer and is required to use the accrual method. At the beginning of the year, Bob has inventory, including livestock held for resale, amounting to $10,000. During the year, Bob purchased livestock totaling $3,000. Bob's ending inventory was $4,000. Bob's net sales for the year totaled $17,000. What is Bob's gross profit for the current year
Answer:
$3,000
Explanation:
Gross Profit = Sales - Cost of Sales
Prepare a Trading Account for Bob to determine gross profit.
Pedro, not a dealer, sold real property that he owned with an adjusted basis of $120,000 and encumbered by a mortgage for $56,000 to Pat in 2018. The terms of the sale required Pat to pay $28,000 cash, assume the $56,000 mortgage, and give Pedro 11 notes for $12,000 each (plus interest at the Federal rate). The first note was payable two years from the date of sale, and each succeeding note became due at two-year intervals. Pedro did not elect out of the installment method for reporting the transaction. If Pat pays the 2020 note as promised, what is the recognized gain to Pedro in 2020 (exclusive of interest)
Answer:
$64,000
Explanation:
Calculation for the recognized gain to Pedro in 2020
First step is to calculate the Realized gain
Realized gain=($120,000+$12,000+$28,000+$56,000-$120,000)
Realized gain=$96,000
Second step is to calculate the Contract Price
Contract Price=$216,000-$56,000
Contract Price=$160,000
Now let calculate the recognized gain to Pedro in 2020
Recognized gain=$160,000-$96,000
Recognized gain=$64,000
Therefore the recognized gain to Pedro in 2020 is $64,000
Day Company has the following sales budget: July August September $105,000 $211,000 $134,000 Credit sales represent 80 percent of budgeted sales. Of the credit sales, 20 percent is collected in the month of the sale, 60 percent in the month after the sale, and the remaining 15 percent is collected two months after the sale. Five percent of all sales are uncollectible and written-off. In September, total cash receipts from sales amount to
Answer:
Day Company
In September, total cash receipts from sales amount to:
= $162,080.
Explanation:
a) Data and Calculations:
sales budget: Credit (80%) Cash (20%)
July $105,000 $84,000 $21,000
August $211,000 $168,800 $42,200
September $134,000 $107,200 $26,800
July August September
Sales $105,000 $211,000 $134,000
Credit sales 84,000 168,800 107,200
Cash sales 21,000 42,200 $26,800
20% 16,800 33,750 21,400
60% after sales 50,400 101,280
15% after 2 months 12,600
Total cash receipts from sales $162,080