Answer:
D. Slovakia consumes 30 tons of both soy and wheat.
Explanation:
According to the statement, Slovakia can produce 40 tons of wheat, 80 tons of soy or 20 tons of wheat and 40 tons of soy with 2 units of labor. On the other hand, Poland can produce 80 tons of wheat ,40 tons of soy or 40tons of wheat and 20tons of soy with two units of labor. If the two countries do not trade at all, they would have to consume what they can produce. Slovakia could only consume a maximun amount of 40 tons of wheat or 80 tons of soy (or a combination of 20 tons of wheat and 40 tons of soy), and Poland could only consume a maximun amount of 80 tons of wheat or 40 tons of soy (or a combination of 40 tons of wheat and 20 tons of soy).Slovakia can only consume 30 tons of both soy and wheat only if it trades, otherwise, this situation could not be attained, as mentioned in the previous paragraph.As a firm's sales grow, its current assets also tend to increase. For instance, as sales increase, the firm's inventories generally increase, and purchases of inventories result in more accounts payable. Thus, spontaneous liabilities that reduce AFN arise from transactions brought on by sales increases. True or false?
Answer: True
Explanation:
Current assets are the assets that a company had and which are expected to be either used or sold over the next year. Examples of current assets are cash, cash equivalents, stock inventory, accounts receivable, marketable securities, and other liquid assets.
It should be noted that when the sales of a from continue to grow, the current assets of such company also increases. An example is when there is an increase in the sales increase, this.will also have an impact on the firm's inventories as there will be an increase.
Suppose that during the past year, the price of a laptop computer fell from $2,500 to $2,300. During the same time period, consumer sales increased from 403,000 to 549,000 laptops. Calculate the elasticity of demand between these two price-quantity combinations by using the following steps.
original new Average Change Percentage
Quantity
Price
Answer:
Elasticity of Demand = 4.5
Demand is very elastic, because a small percentage change in price brought about a bigger percentage change in quantity demanded.
Explanation:
Data and Calculations:
Original Average New Average Change Percentage
Quantity 403,000 549,000 +146,000 36.23%
Price $2,500 $2,300 -$200 8%
b) Elasticity of demand: The elasticity of demand is calculated by dividing the % change in quantity by the % change in price which brought it about.
Percentage change in Quantity/Percentage change in price
= 36.23%/8% = 4.5
c) The elasticity of demand is the responsiveness of demand (consumers) to a change in price. If the responsiveness is less than 1, then demand is inelastic. If it is equal to 1, then demand elasticity is unitary. If it is more than 1, then demand is elastic.
Decision, since Elasticity is more than 1, the demand is very elastic.
Galvatron Metals has a bond outstanding with a coupon rate of 6.3 percent and semiannual payments. The bond currently sells for $1,919 and matures in 17 years. The par value is $2,000 and the company's tax rate is 39 percent. What is the company's aftertax cost of debt?
Answer:
4.09%
Explanation:
For computing the after cost of debt we have to applied the RATE formula i.e to be shown in the attachment below:
Given that,
Present value = $1,919
Future value or Face value = $2,000
PMT = 2,000 × 6.3% ÷ 2 = $63
NPER = 17 years × 2 = 34 years
The formula is shown below:
= Rate(NPER,PMT,-PV,FV,type)
The present value come in negative
So, after applying the above formula,
1. The pretax cost of debt is 3.35% × 2 = 6.70%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 6.70% × ( 1 - 0.39)
= 4.09%
Super Carpeting Inc. (SCI) just paid a dividend (D₀) of $3.12 per share, and its annual dividend is expected to grow at a constant rate (g) of 6.50% per year. If the required return (r s ) on SCI’s stock is 16.25%, then the intrinsic value of SCI’s shares is
Answer:
Intrinsic Value = $33.23
Explanation:
The intrinsic value of a stock using the dividend valuation model is the present value of the the future dividend expected from the stock discounted at the required rate of return.
This model is represented as follows
D(1+g)/(r-g) = P
Price, D- dividend payable in now, ke- required rate of return, g- growth rate
D- 3.12 , g-6.50% r-6.25%
Intrinsic value = (3.12× 1.065)/(0.1625-0.065)= $33.228
Intrinsic Value = $33.23
The production possibilities curve would shift outward as a result of a(n) decrease in labor productivity. increase in absenteeism. new integrated circuit that revolutionizes the defense industry. increase in short run aggregate supply. increase in aggregate demand.
Answer:
new integrated circuit that revolutionizes the defense industry.
Explanation:
The production possibility curve is a curve that shows the two combinations of goods an economy can produce when all its resources are fully employed.
the two factors that can cause an outward shift in the PPC are :
1. increase in labour productivity
2. technological advancement
new integrated circuit that revolutionizes the defense industry is a form of technological advancement.
Consider Country (Z) with a GDP level of 210,000 and a growth rate of 5% in 2019 (i.e. calculated at the end of year 2019). The experts predict that the growth of the economy of Country (Z) wills gradually slowdown in the coming years. More precisely, they foresee the following growth rates for the future: 2019 – 2022 (5%), 2022 – 2025 (3%). Hint: The list above should be read as saying that, for instance, `the growth rate from the end of 2019 until the end of 2022 will be 5%, then from the end of 2022 until the end of 2025 it will be 3%’ and so on. Requirement a) Assuming that the predictions of the experts listed above are accurate, when in the future will Country Z’s GDP double compared to the GDP level of 2019? [10 marks] b) What would Country Z’s GDP growth rate be from 2025 and so on at 1%? Explain your reasoning carefully. [5 marks] c) Consider now the more optimistic scenario in which the economy does not slow down and the current growth rate of 5% remains constant in the coming years. How long will it take for the GDP level to double in this scenario? Express your answer in two forms: i) In number of years [5 marks] ii) As a fraction of your answer in part a.
Answer:
Please help me, l can not answer it
Explanation:
Trak Corporation incurred the following costs while manufacturing its bicycles.
Bicycle components $100,000
Advertising expense $45,000
Depreciation on plant 60,000
Property taxes on plant 14,000
Property taxes on store 7,500
Delivery expense 21,000
Labor costs of assembly-line workers 110,000
Sales commissions 35,000
Factory supplies used 13,000
Salaries paid to sales clerks 50,000
Required:
Identify each of the above costs as direct materials, direct labor, manufacturing overhead, or period costs.
Please find the answer below.
Explanation:
Bicycle components $100,000 - Direct materials
Advertising Expense $45,000 - Period costs
Depreciation on plant $14,000 - manufacturing overhead
Property taxes on plant $14,000 - manufacturing overhead
Property taxes on store $7,500 - manufacturing overhead
Delivery expense $21,000 - period costs
Labor costs of assembly-line workers $110,000 - Direct labor
Sales commissions $35,000 - Period costs
Factory supplies used $13,000 - Period costs
Salaries paid to sales clerks $50,000 - period costs
Cheers.
"Builder Bug Company allocates overhead at $9 per direct labor hour. Job A45 required 4 boxes of direct materials at a cost of $30 per box and took employees 20 hours to complete. Employees earn $15 per hour. Compute the total cost of Job A45."
Answer:
Total cost =$600
Explanation:
The total cost of the job A45 is the sum of direct material cost, direct labour cost applied overhead .
Direct material cost -(4× 30)=120
Direct labour cost - (20× $15) =300
Overhead - $9 × 20 =180
Total cost = 120 + 300 + 180 = $600
Total cost =$600
It is ethical for Joe Martin, the Chief Design Engineer, to be concerned that the design specifications set by management for the new plant have safety standards well below those for similar plants in his home country since local safety regulations do not address his concerns.
a. True
b. False
Sources of monopoly power A monopolist, unlike a competitive firm, has some market power. It can raise its price, within limits, without the quantity demanded falling to zero The main way it retains its market power is through barriers to entry-that is, other companies cannot enter the market to create competition in that particular industry Complete the following table by indicating which barrier to entry appropriately explains why a monopoly exists in each scenario.
Exclusive
Ownership Government-
of a Key Created Economies
Resource Monopolies of Sale
Patents are granted to inventors of a product
or process for a certain number of years. The
reason for this is to encourage innovation in the
economy. Without the existence of patents, it is
argued, research and development for improved
electronics is unlikely to take place, since there’s
nothing preventing another firm from stealing the
idea, copying the product, and producing it without
incurring the development costs.
Throughout much of the 20th century, many people
viewed South Africa’s De Beers Group as a monopoly
because it controlled a large percentage of diamond
production and sales.
In the electricity industry, low average total costs are
obtained only through large-scale production. In other
words, the initial cost of setting up all the necessary
wiring makes it risky and, most likely, unprofitable for
competitors to enter the market.
Answer:
1. Patents are granted to inventors of a product or process for a certain number of years. The reason for this is to encourage innovation in the economy. Without the existence of patents, it is argued, research and development for improved electronics is unlikely to take place, since there’s nothing preventing another firm from stealing the idea, copying the product, and producing it without incurring the development costs.
Government Created Monopoly.
Patents protect the intellectual property of a person or entity and prevent others from taking it and using it without rewarding the people who came up with it. The owners of the parents are able to dictate the selling of the resource and as such have a monopoly over it. Patents are granted by the government which makes this a Government created Monopoly.
2. Throughout much of the 20th century, many people viewed South Africa’s De Beers Group as a monopoly because it controlled a large percentage of diamond production and sales.
Ownership of Key Economic Resource.
As early as 1902, De Beers controlled 90% of the world's diamond production and under the leadership of J P Morgan, consolidated control over the diamond industry. They controlled many mines and also bought diamonds from other producers allowing them to control the diamond trade. Even though their control has waned of late, they still control around 35% of the world's diamond production which is a very significant percentage.
3. In the electricity industry, low average total costs are obtained only through large-scale production. In other words, the initial cost of setting up all the necessary wiring makes it risky and, most likely, unprofitable for competitors to enter the market.
Economies of Scale
To survive in the Electricity industry the company would need to have an extensive network to permit them to benefit from Economies of Scale. This can be very difficult to set up so companies stay away from the industry thereby creating a monopoly for those already in it.
The yield to call Group of answer choices is important if interest rates have fallen is important if interest rates have risen equals the yield to maturity equals the current yield
Answer:
is important if interest rates have fallen.
Explanation:
In Finance, Yield to call (YTC) represents the return a bondholder (investor) receives if the bond is held until the call date before it reaches maturity.
Simply stated, Yield to call (YTC) is the amount of money an investor (bondholder) would earn if he or she held a bond until it was called before its maturity.
The yield to call is important if interest rates have fallen because bondholders or investors would be able to recall their old (existing) bonds and sell new bonds at the fallen (lower) rates.
Hence, Yield to call (YTC) allows the bondholders (investors) to redeem or recall their existing bonds while it avails the bond issuer the opportunity of repurchase the bonds or debt instruments.
In October of the current year, Jasmine received a $15,520 payment from a client for 32 months of rent. The rental period begins on September 1 of this year. This amounts to $485 per month. Jasmine is a calendar-year taxpayer. What amount of the $15,520 payment, if any, must Jasmine recognize this year if she uses the accrual method of accounting
Answer:
Jasmine recognize $1,940 this year if she uses the accrual method of accounting.
Explanation:
The Accrual or Matching Concept in accounting requires revenues and expenses to be recorded in the period i which they occur or incur.
The entry to record the receipt of payment is :
Cash $15,520 (debit)
Unearned Rental Income $15,520 (credit)
By the end of the year on 31 December, 4 months rent income starting September will have been earned and entries are as follows :
Unearned Rental Income $1,940 (debit)
Rental Income $1,940 (credit)
Rental Income calculation = $15,520 × 4 / 32
= $1,940
The controller of Hall Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs.Month Total Total Machine Hours Maintenance Costs January $ 3,041 4,032February 3,456 4,608March 4,147 6,912April 5,184 9,101May 3,686 5,760June 5,322 9,216Determine the variable-cost components using the high-low method. (Round variable cost to 2 decimal places e.g. 12.25.)
Answer:
Variable cost per unit= $2.27 per machine hour
Explanation:
Giving the following information:
January 3,041 $4,032
February 3,456 $4,608
March 4,147 $6,912
April 5,184 $9,101
May 3,686 $5,760
June 5,322 $9,216
To calculate the unitary variable cost, we need to use the following formula:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (9,216 - 4,032) / (5,322 - 3,041)
Variable cost per unit= $2.27 per machine hour
Granfield Company has a piece of manufacturing equipment with a book value of $45,000 and a remaining useful life of four years. At the end of the four years the equipment will have a zero salvage value. The market value of the equipment is currently $23,000. Granfield can purchase a new machine for $130,000 and receive $23,000 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $20,000 per year over the four-year life of the new machine. The total increase or decrease in net income by replacing the current machine with the new machine (ignoring the time value of money) is:
Answer:
i think the answer is 115
Explanation:
if you add 45.000+23.000+23.000+20.000+4 =115 there your answer
thank you i love to help people i am only a 7th grade almost 8th grader
how to solve You just received a loan from your banker to buy seed and plant your alfalfa field. The loan is a discount loan and is for $5,000 for 1 year and the quoted rate was 10%. What is your APR
Answer:
11.11%
Explanation:
For computing the annual percentage rate (APR) we need to apply the RATE formula i.e to be shown in the attachment below.
Given that,
Present value = $5,000 × (100 - 10%) = $5,000 × 90% = $4,500
Future value or Face value = $5,000
PMT = 0
NPER = 1
The formula is shown below:
= -Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after applying the formula, the APR is 11.11%
The RTP Corporation has the following call option information. You are interested in purchasing four contracts for the July Call. How much will be the cost of the transactio?
RTP (RTP) Stock Price $100 Call
Expiration Strike Last Volume Open Interest
June 90 4 120 400July 90 4.50 40 200Aug 90 6 70 600
Answer: $1,800
Explanation:
The Cost of Transaction for purchasing contracts is calculated by the formula;
= Option Premium per Call * Lot Size * No. of contracts
When the Lot size is not specified, always use 100.
The Option Premium per call is $4.50.
Number of contracts required for July is potentially 4;
= 4.5 * 100 * 4
= $1,800
Keidis Industries will pay a dividend of $5.15, $6.25, and $7.45 per share for each of the next three years, respectively. In four years, you believe that the company will be acquired for $69.00 per share. The return on similar stocks is 11.4 percent. What is the current stock price
Answer:
The answer is $59.85
Explanation:
This question will be solved using the Dividend Discount Model. It is one of the valuation methods used in valuing price of Equity/stock.
Po = D1 + (1 + r)^n + D2 + (1 + r)^n + D2 + (1 + r)^n + CF4 /(1 + r)^n
Po is the current worth of stocks
D1, D2, D3 is the dividend paid in year 1, 2 and 3
CF4 is the price of the company in year 4
r is the discount rate
n is the number of years
$5.15 /1.114^1 + $6.25 /1.114^2 +$7.45/1.114^3 + $69/1.114^4
$4.62 + $5.04 + $5.39 + $44.80
Current price of the stock = $59.85
Starbucks ran a new ad during the Super Bowl. It wanted to know the percentage of people who watched the ad during the event. Starbucks was measuring the
If Starbucks wanted to know the percentage of the people that watched the ad, what it was measuring was the view count.
The view count can be described as the statistics in real time of the number of people that watched or viewed or a program or an event.
The view count happens when a viewer goes on to initiate a video to play. When this is done, it is calculated as a view count.
Read more on https://brainly.com/question/13829289?referrer=searchResults
Divine Apparel has 2,300 shares of common stock outstanding. On October 1, the company declares a $0.25 per share dividend to stockholders of record on October 15. The dividend is paid on October 31.
Record all transactions on the appropriate dates for cash dividends. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. Record the declaration of cash dividends.
2. Record the entry on date of record.
3. Record the payment of cash dividends.
Answer:
1. Record the declaration of cash dividends.
October 1, cash dividends are declared.
Dr Retained earnings 575
Cr Dividends payable 575
A liability is formed on the date of declaration.
2. Record the entry on date of record.
No journal entry is required
3. Record the payment of cash dividends.
October 31, dividends are paid.
Dr Dividends payable 575
Cr Cash 575
You just won a prize that will pay you $800 today and $500 a year for the next three years. Which is the correct formula for computing the present value as of today at 6 percent?
a. PV = $500/1.06 + $500/1.062+ $500/1.063
b. PV = $800 PV $800/1.06$500/1.06+$500/1.06 $500/1.06
c. PV =$800+ $500/1.06 $500/1.06+ $500/1.061
d. PV = $800(1.06)+ $500 +$500/1.06 $500/1.06
Answer:
Total PV= 800 + 500/1.06^1 + 500/1.06^2 + 500/1.06^3
Explanation:
Giving the following information:
Cash flows:
Cf0= $800
Cf1= $500
Cf2= $500
Cf3= $500
Discount rate= 6%
The $800 is received today, therefore, it is already its present value.
For the cash flow for the next three years, we need to use the following formula on each cash flow.
PV= FV/(1+i)^n
Total PV= 800 + 500/1.06 + 500/1.06^2 + 500/1.06^3
Minor Electric has received a special one-time order for 1,200 light fixtures (units) at $18 per unit. Minor currently produces and sells 6,000 units at $19.00 each. This level represents 75% of its capacity. Production costs for these units are $24.00 per unit, which includes $16.00 variable cost and $8.00 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $800 with a zero salvage value. Management expects no other changes in costs as a result of the additional production. If Minor wishes to earn $1,600 on the special order, the size of the order would need to be:
Answer:
the size of the special order should be 1,200 in order to generate profits of $1,600
Explanation:
special order 1,200 units at $18 per unit = $21,600
current spare capacity 2,000 units
relevant production costs:
variable costs $16 per unitadditional fixed costs $800total relevant costs = ($16 x 1,200) + $800 = $20,000
profits generated by special order = $21,600 - $20,000 = $1,600
with this special order (1,200 units) you can make $1,600 in profits
A mandatory seatbelt law ends up raising the number of traffic fatalities if it lowers fatalities per accident from 0.10 to 0.07 while raising the number of accidents per period from 35,000 to any more than:_______
Answer: 50,000
Explanation:
The question shows that at the current number of accident per period which is 35,000, 0.1 fatalities are recorded.
If the new seat belt law reduces the fatality rate from 0.1 to 0.07, how many accidents would have to occur for the new law to match the previous fatality rate given the previous number of accidents.
Let the new number of accidents be x;
35,000 * 0.1 = 0.07 * x
3,500 = 0.07x
x = 3,500/0.07
= 50,000
At 50,000 accidents, the new law will cause the same amount of fatalities than before. Anything more than 50,000 would lead to more fatalities than before.
At some point, everyone will have to deliver bad news. The bad feelings associated with this type of message can be alleviated if the receiver knows the reason for the bad news, feels the news is revealed sensitively, thinks the matter is treated seriously, and believes that the decision is fair. When applying these strategies, make sure to follow the writing process and determine whether to use a direct or an indirect pattern in your message.
Determine what strategy should be used in the following situation.
You own a specialty candle manufacturing company that supplies candles for restaurants and other businesses. Your wax supplier recently went out of business, and the new supplier charges more for shipping and handling. Because of this, you need to raise your prices. Customers need to be informed of this price increase.
What are your goals when responding to the previous scenario?
a. To encourage follow-up correspondence from the receiver
b. To maintain a positive image of you and your organization
c. To promise that your prices won’t increase again
d. To convey fairness
e. To reduce bad feelings
Answer:
Make $200,000 in less than two month (Send me a message if interested)
If I told you that you could turn your spare time into a side-income online business, would you be interested?
I recently became introduced to two guys that were able to make $960,824.41 within 31 days. These guys are “anti-gurus”... they’re everyday guys. Their students have generated millions, too. And they also helped me to make over $200,000 in less than 2 months
I was able to convince them to show you how they did it on a free training event this week.
They’re sharing this for the first time and will show you how to turn your spare time into a $100,000.00 online side business.
The best part? You can do this with NO experience / technical skills.
Explanation:
We have the following data for a hypothetical open economy: GNP = $12 comma 00012,000 Consumption (C) = $7 comma 2007,200 Investment (I) = $1 comma 0001,000 Government Purchases (G) = $1 comma 6001,600 Tax Collections (T) = $1 comma 2001,200 What is the value of private savings plus public savings? $nothing (Enter your answer as an integer. Include a minus sign if necessary.) What is the value of the current account balance CA? $nothing (Enter your answer as an integer. Include a minus sign if necessary.)
Answer:
The value of private savings plus public savings is $3,200
The value of the current account balance CA is $2,200
Explanation:
In order to calculate the value of private savings plus public savings we would have to make the following calculation:
Total saving = private saving+public saving
Total saving =GNP-Tax Collections-Consumption+Tax Collections-Government Purchases
Total saving =$12,000-$1,200-$7,200+$1,200-$1,600
Total saving =$3,200
To calculate the value of the current account balance CA we would have to make the following calculation:
value of the current account balance CA=GNP-Consumption-Investment-Government Purchases
value of the current account balance CA= $12,000 - $7,200 -$1,000-$1,600
value of the current account balance CA= $2,200
On December 31, 2021, Crane, Inc. leased machinery with a fair value of $2125000 from Cey Rentals Co. The agreement is a 6-year noncancelable lease requiring annual payments of $410000 beginning December 31, 2021. The lease is appropriately accounted for by Crane as a finance lease. Craneâs incremental borrowing rate is 11%. Crane knows the interest rate implicit in the lease payments is 10%.
The present value of an annuity due of 1 for 6 years at 10% is 4.7908.
The present value of an annuity due of 1 for 6 years at 11% is 4.69590.
In its December 31, 2021 balance sheet, Crane should report a lease liability of
(A) $1964228.
(B) $1554228.
(C) $1715000.
(D) $1925319.
Answer: $1554228
Explanation:
Calculation of the lease liability that Crane should report in its December 31, 2021 balance sheet goes thus:
Annual Lease payment= $410,000
The present value of an annuity due of 1 for 6 years at 10% = 4.7908
We multiply the lease rentals by the present value of an annuity due of 1 for 6 years at 10%. This will be:
= $410,000 × 4.7908
= $1964228
We then subtract the first lease payment of $410,000 from the value gotten above. This will be:
= $1,964,228 - $410,000
= $1,554,228.
An advertising agency is estimating costs for advertising a music festival. The job will require 230 direct labor hours at a cost of $56 per hour. Overhead costs are applied at a rate of $68 per direct labor hour. What is the total estimated cost for this job?
Answer:
The total estimated cost for this job is $28,520
Explanation:
In order to calculate the total estimated cost for this job we would have to make the following calculation:
Total estimated cost=Total direct labor cost+Actual overhead applied cost
Total direct labor cost=total required labour hours*cost per direct labour hour
hence, Total direct labor cost=230*$56
Total direct labor cost=$12,880
Actual overhead applied cost=total required labour hours*Appliead overhead cost
hence, Actual overhead applied cost=230*$68
Actual overhead applied cost=$15,640
Therefore, Total estimated cost=$12,880+$15,640
Total estimated cost=$28,520
The total estimated cost for this job is $28,520
Dora Inc. reported the following on the company's cash flow statement: Sales $3,500,000 Net cash flow from operating activities 350,000 Net cash flow used for investing activities (100,000) Net cash flow used for financing activities (200,000) Free cash flow 290,000 What is the ratio of free cash flow to sales
Answer:
8.3%
Explanation:
Dora Inc. reported a sales of $3,500,000
The net cash flow from operating activities is $350,000
The net cash flow used for investing activities is $100,000
The net cash flow used for financial activities is $200,000
The free cash flow is $290,000
Therefore, the free cash flow to sales ratio can be calculated as follows
Free cash flow to sales ratio= Free cash flow/Sales × 100%
= $290,000/$3,500,000 × 100
= 0.0828×100
= 8.3%
Hence the ratio of the free cash flow to sales is 8.3%
railway cabooses just paid its annual dividend of 1.70 per share. The company has been reducing the dividends by 11.3 percent each year. How much are you willing to pay today to purchase stock in this company if your required rate of return is 12 percent?
Answer:
8.24
Explanation:
According to the given situation, the computation of purchase stock is shown below:-
Purchase price = Dividend in paid in next year ÷ (required rate of return - Growth rate)
= (1.70 ÷ (1 - 0.113)) ÷ (0.12 - (-0.113))
= 1.92 ÷ 0.233
= 8.24
Therefore for computing the purchase price we simply applied the above formula.
Fein Company provided the following information relating to cash payments:
Fein purchased direct materials on account in the following amounts:
June $68,000
July 77,000
August 73,000
Fein pays 20% of accounts payable in the month of purchase and the remaining 80% in the following month.
In July, direct labor cost was $32,300. August direct labor cost was $35,400. The company finds that typically 90% of direct labor cost is paid in cash during the month, with the remainder paid in the following month.
August overhead amounted to $71,200, including $6,350 of depreciation.
Fein had taken out a 4-month loan of $15,000 on May 1. Interest, due with payment of principal, accrued at the rate of 9% per year. The loan and all interest were repaid on August 31.
Required:
Prepare a schedule of cash payments for Fein Company for the month of August. Be sure to enter percentages as whole numbers.
Fein Company
Schedule of Cash Payments
For August
August
Payments on accounts payable:
From July purchases
From August purchases
Direct labor payments:
From July
From August
Overhead
Loan repayment
Cash payments
Answer:
Fein Company
Schedule of Cash Payments
For the Month of August 202x
Salaries expenses:
From July salaries $3,230
From August salaries $31,860
Total salaries $35,090
Direct materials:
From July purchases $61,600
From August purchases $14,600
Total direct materials $76,200
Overhead expenses: $64,850
Debt payments:
Principal $15,000
Accrued interests $450
Total debt payment $15,450
Total cash payments $191,590
Zero growth: Nynet, Inc., paid a dividend of $4.18 last year. The company does not expect to increase its dividend for the next several years. If the required rate of return is 18.5 percent, what is the current price of the stock
Answer:
$22.60
Explanation:
Zero growth: Nynet, Inc., paid a dividend of $4.18 last year. The company does not expect to increase its dividend for the next several years. If the required rate of return is 18.5 percent, what is the current price of the stock:
D÷R = 4.18/0.185
= $22.6