Answer: $564,000
Explanation:
Investing Activities cash flow involves the cash transactions that have to do with fixed assets and the securities of other companies. Purchase of fixed assets and the securities reduces the investing cashflow and sales increases it.
= -300,000 + (-330,000) + 1,194,000
= $564,000
Patents are a type of fixed assets so will be accounted for in the Investing activities if it was purchased with cash.
Southern California Publishing Company is trying to decide whether to revise its popular textbook, Financial Psychoanalysis Made Simple. The company has estimated that the revision will cost $75,000. Cash flows from increased sales will be $20,900 the first year. These cash flows will increase by 3 percent per year. The book will go out of print four years from now. Assume that the initial cost is paid now and revenues are received at the end of each year. If the company requires a return of 8 percent for such an investment, calculate the present value of the cash inflows of the project.
Answer:
$72,195.71
Explanation:
Calculation to determine the present value of the cash inflows of the project
Using this formula
PV = C {[1/(r – g)] – [1/(r – g)] × [(1 + g)/(1 + r)]^n}
Where,
C represent cash flow=$20,900
r represent rate of return = 8%
g represent growth rate=3%
n represent Period
Let plug in the formula
PV= $20,900*{[1/(0.08-0.03)] - [1/(0.08-0.03)] × [(1+0.03) /(1+0.08)]^4}
PV= $20,900*{20-[20*(1.03/1.08)^4]}
PV= $20,900*[20-(20*0.827283)]
PV= $20,900*(20-16.54566)
PV= $20,900*3.45434
PV= $72,195.71
Therefore the present value of the cash inflows of the project will be $72,195.71
Danielsen's has 15,000 shares of stock outstanding and projected annual free cash flows of $48,200, $57,900, $71,300, and $72,500 for the next four years, respectively. After that, the cash flows are expected to increase at a constant annual rate of 1.6 percent. What is the current value per share of stock at a discount rate of 15.4 percent
Answer:
$31.57 per share
Explanation:
Terminal Value (TV) = CF5(1 + g) / (Ke – g)
= $72,500*(1 + 0.0160) / (0.1540-0.0160)
= $73,660 / 0.1380
= $533,768
Year Cash Flow PVF at 15.40% PV of Free Cash Flow
1 48,200 0.866551 41,768
2 57,900 0.750911 43,478
3 71,300 0.650703 46,395
4 72,500 0.563867 40,880
4 533,768 0.563867 300,974
TOTAL 473,495
The current value per share of stock = Total Present value of future cash flows / Number of shares outstanding
= $473,495 / 15,000 shares outstanding
= $31.57 per share
The equity ownership of the units by the investors in a corporation is called shares. The current value per share at a discount rate of 15.4 % is $31.57.
What is terminal value?Terminal value (TV) is the expected cash value in a business, project, and asset that is estimated beyond the forecasted period. The terminal value is calculated as:
[tex]\rm TV =\rm \rm \dfrac{CF5(1 + g)}{(Ke - g)}[/tex]
Substituting values in the equation TV is calculated as:
[tex]\begin{aligned} &= \$72,500 \times \dfrac{(1 + 0.0160)}{(0.1540-0.0160)}\\\\&= \dfrac{\$73,660}{0.1380}\\\\&= \$533,768 \end{aligned}[/tex]
Check the attached image below for a table of the present value of the cash flow.
The current value is calculated as:
[tex]\begin{aligned}\text{The current value per share of stock} &= \dfrac{\text{Total Present value of future cash flows}}{\text{Number of shares outstanding}}\\\\&= \dfrac{\$473,495}{15,000 \;\rm shares \; outstanding}\\\\&= \$31.57 \;\rm per \; share\end{aligned}[/tex]
Therefore, $31.57 is the current value per share.
Learn more about cash flow here:
https://brainly.com/question/17192081
Splish Brothers Inc. began operations on April 1 by issuing 52,300 shares of $5 par value common stock for cash at $15 per share. On April 19, it issued 1,800 shares of common stock to attorneys in settlement of their bill of $28,900 for organization costs. In addition, Splish Brothers issued 1,100 shares of $1 par value preferred stock for $6 cash per share. Journalize the issuance of the common and preferred shares, assuming the shares are not publicly traded.
Answer:
Date Account titles and Explanation Debit Credit
Apr 1 Cash $679,900
Common stock $261,500
(52,300*5)
Paid in common stock in excess of par $418,400
(52,300*$13-$5)
(To record common stock issued)
Apr 19 Organisation expenses $28,900
Common stock $9,000
(1800*5)
Paid in common stock in excess of par $19,900
(To record issuance of comm1,100on stock for attorney.s fees)
Apr 19 Cash (1,100*$6) $6,600
Preferred stock (1,100*$1) $1,100
Paid in preferred capital in excess of par $5,500
(To record common preferred stock for cash)
ABC's sales equal $60,000 and cost of goods sold equals $20,000. Its beginning inventory was $1,600 and its ending inventory is $2,400. ABC's inventory turnover ratio equals how many times a year?
A) 5 times.
B) 30 times.
C) 10 times.
D) 20 times.
Answer:
C) 10 times
Explanation:
Calculation to determine ABC's inventory turnover ratio equals how many times a year
Using this formula
Inventory turnover ratio =Cost of goods sold equals /Average inventory
Let plug in the formula
Inventory turnover ratio=$20,000/[($1,600+$2,400)/2]
Inventory turnover ratio=$20,000/($4,000/2)
Inventory turnover ratio=$20,000/$2,000
Inventory turnover ratio=10 times
Therefore ABC's inventory turnover ratio will equals 10 times a year
ABC's sales equal $60,000 and cost of goods sold equals $20,000. The, ABC's inventory turnover ratio equals to 10 times a year.
What is Inventory Turnover ratio?
Inventory turnover ration represents the total inventory that is sold, but and replaced by person. It can be calculated by dividing cost of goods sold by average inventory.
Calculation to determine ABC's inventory turnover ratio:-
Inventory turnover ratio =Cost of goods sold equals /Average inventory
Inventory turnover ratio=$20,000/[($1,600+$2,400)/2]
Inventory turnover ratio=$20,000/($4,000/2)
Inventory turnover ratio=$20,000/$2,000
Inventory turnover ratio=10 times
Therefore, correct option is C.
Learn more about inventory turnover ratio, refer to the link;
https://brainly.com/question/26172857
On January 1, 2021, Summer Fashions Corp. awarded restricted stock units (RSUs) representing 5 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $9.00 per share. The journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2023, would include a:
Answer:
Following are the journal entry to the given question:
Explanation:
Payment on stock capital limited 45
Stock Popular 5
Capital payments on surplus par 40
Eastline Corporation had 11,000 shares of $10 par value common stock outstanding when the board of directors declared a stock dividend of 3,520 shares. At the time of the stock dividend, the market value per share was $14. The entry to record this dividend is:______.
a. Debit Retained Earnings $49.280 Credit Common Stock Dividend Distributable $49.280
b. No entry is needed
c. Debit Common Stock Dividend Distributable $49,280, credit Retained Earning 549.280.
d. Debit Retained Earnings $35200. cred Common Stock Dividend Distribble $35.200
e. Debit Retained Emming $49.280 credit Common Stock Dividend Darts $35.200, credit Peld in Capital in Bress of Par Value. Common Stock $14,080
Answer:
e. Debit Retained earning $49,280 Credit Common stock dividend distributable $35,200
Credit Paid in capital in excess of par value(Common stock) $14,080
Explanation:
The journal entry is as follows:
Retained earnings (3,520 shares × $14)
Dr $49,280
_______ Common stock dividend distributable (3,520 shares × $10)
Cr $35,200
_______ Paid in capital in excess of par value ($49,280 - $35,200)
Cr $14,080
Marina collects and records data in an Excel spreadsheet. She uses the data to produce a line graph.
Marina wants to change the graph so the minimum distance on the y-axis is 0. What should be done to make this change?
A. Adjust the Minimum option to Fixed and change to 0.
B. Adjust the chart style to a 3-D chart so all the data will be displayed.
C. Adjust the selection pane so that the full range of data is selected.
D. Adjust the intervals between tick marks to -10 in the Axis Options box.
Answer:
A. Adjust the Minimum option to Fixed and change to 0.
Explanation:
Took the course
Tabitha sells real estate on March 2 of the current year for $334,000. The buyer, Ramona, pays the real estate taxes of $16,700 for the calendar year, which is the real estate property tax year. Round any division to four decimal places and use in subsequent calculations. Round your final answers to the nearest dollar. Assume a 365-day year.
Answer:
Requirement "Determine the real estate taxes apportioned to and deductible by the seller, Tabitha, and the amount of taxes deductible by Ramona. Tabitha"
Tabitha will pay the Real estate tax until March 1 and this would be deductible from Tabitha. No of days = 60 days (January 1 to March 1)
Amount of tax deductible from Tabitha = $16,700* (60/365)
= $16,700 * 0.1644
= $2,745.48
= $2,745
Amount of tax deductible from Ramona = $16,700 * (305/365)
= $16,700 * 0.8356
= $13954.52
= $13,955
For several years, Flame Corporation has had a current ratio that was consistent with the other companies in its industry. For most recent year, Flame's current ratio was significantly higher than that of the industry. What is the best possible explanation for this situation
Answer: b. Flowers liquidity has improved
Explanation:
The Current ratio is calculated by dividing the current assets of a company by its current liabilities. The current assets represent the liquidity of the company as they comprise of assets like cash and marketable securities.
If the current ratio was to increase, it would mean that either the numerator (current assets) increased or the denominator (current liabilities) decreased or that both happened. There is an option for the liquidity increasing which is saying that the numerator increases so this is correct as it is in line with what could have happened.
Which one of these equations is an accurate expression of the balance sheet? Assets ≡ Liabilities −Stockholders’ equity Stockholders’ equity ≡ Assets + Liabilities Liabilities ≡ Stockholders’ equity −Assets Assets ≡ Stockholders’ equity −Liabilities Stockholders’ equity ≡ Assets −Liabilities
Answer:
Stockholders’ equity ≡ Assets −Liabilities
Explanation:
The Balance Sheet equation is also known as the Accounting equation. It can be written in 3 ways as :
Assets = Equity + Liabilities
or
Equity = Assets - Liabilities
or
Liabilities = Assets - Equity
Brief Exercise 24-01 Wildhorse Company uses both standards and budgets. For the year, estimated production of Product X is 565,000 units. Total estimated cost for materials and labor are $1,243,000 and $1,638,500. Compute the estimates for (a) a standard cost and (b) a budgeted cost.
Answer and Explanation:
The computation is shown below:
a. The standard cost is
Fo material
= $1,243,000 ÷ 565,000 units
= $2.20 per unit
And, for labor it is
= $1,638,500 ÷ 565,000 units
= $2.90 per unit
b. The budgeted cost would be remian the same as the total cost i.e. $1,243,000 and $1,638,500
Hence, the same would be considered and relevant
Dartford Company reported the following financial data for one of its divisions for the year; average investment center total assets of $3,700,000; investment center income $640,000; a target income of 12% of average invested assets. The residual income for the division is:
Answer:
$196,000
Explanation:
Investment income= $6,700,000
Operating assets = $340,000
Rate of return = 12%
Residual income = [$640,000 - ($3,700,000*12%)}
Residual income = $640,000 - $444,000
Residual income = $196,000
Each of the following are advantages of bonds except: multiple choice bonds do not affect owner control bonds require payment of periodic interest and par value at maturity bonds can increase return on equity
Answer:
bonds require payment of periodic interest and par value at maturity bonds.
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.
The disadvantages of bonds are listed below as;
1. Bonds typically require a payment of periodic interest.
2. Bonds require a payment of the principal amount.
3. Bonds can decrease a person's return on equity.
4. The payments of a bond by the bond issuer may become burdensome when cash flow and income are quite low.
The final phase of the systems development life cycle is systems ________. Select one: a. implementation b. maintenance c. operation d. design e. analysis
Answer:
b. maintenance
Explanation:
The systems development life cycle contains 5 steps i.e.
1. Planning
2. Analysis
3. Design
4. Implementation
5. Maintenance
The final phase is the maintenance & required regular updated. It occurs when the end users could fine the system in the case when they want to increase the performance, or add new capabilities or meeting extra user requirements so it can be done under this step
Consider an economy described by a specific factors model with an Agricultural and a Manufacturing Sector. The country is open to trade. All else equal, which of the following would be consequences of a sudden accumulation of specific capital in the manufacturing sector?
a. The real wage of workers measured in terms of manufactures will fall as capital replaces workers in that sector.
b. The real wage in the economy will increase, measured in terms of either good.
с. The number of workers employed in manufacturing will increase.
d. The real return to land specific to the agricultural sector will fall.
Answer:
с. The number of workers employed in manufacturing will increase.
Explanation:
When there's a sudden increase of specific capital in a certain sector, in this case, the Manufacturing Sector, the consequences could be an increase in the number of workers employed, since they have more money to invest and to produce more products. If you have more capital it means you're selling more or someone is investing in your sector, which means there's more demand for your products and you need to produce more.
The task force members had trouble at first but finally the tension subsided, roles became clear, and information began to flow between members. In what phase of team development is this task force
Answer:
Norming
Explanation:
Since in the question it is mentioned that the roles are very clear to the team members also the information is starting to flow so here the team development represent the norming phase of this task force as in this stage the performance of the team rised since the members are ready to learn &corporate and also begins to focus on the team goal and objectives
What is the Net Present Value of the following cash flow streams at an interest rate of 8.25%: at year 0: $0; year 1: $75; year 2: $225; year 3: $0; and year 4: $300. $__.
Answer:
the net present value is $479.7743
Explanation:
The computation of the net present value is shown below:
= cash flow ÷ (1+interest rate)^number of years
= $75 ÷ (1.0825) + $225 ÷ (1.0825)^2 + $300 ÷ (1.0825)^4
= $479.7743
Hence, the net present value is $479.7743
We simply applied the above formula so that the correct amount could come
A building with an appraisal value of $129,668 is made available at an offer price of $158,618. The purchaser acquires the property for $36,973 in cash, a 90-day note payable for $24,989, and a mortgage amounting to $56,481. The cost basis recorded in the buyer's accounting records to recognize this purchase is
Answer:
$118,443
Explanation:
Calculation to determine what the cost basis recorded in the buyer's accounting records to recognize this purchase is
Using this formula
Cost Basis= Cash + Note payable + Mortgage amount
Let plug in the formula
Cost Basis= $36,973 + $24,989 + $56,481
Cost Basis= $118,443
Therefore the cost basis recorded in the buyer's accounting records to recognize this purchase is
$118,443
Assume that you manage a $10.00 million mutual fund that has a beta of 1.05 and a 9.50% required return. The risk-free rate is 4.20%. You now receive another $5.00 million, which you invest in stocks with an average beta of 0.65. What is the required rate of return on the new portfolio
Answer:
8.83%
Explanation:
The computation of the required return is shown below;
The market risk premium is
= 9.5% - 4.2% ÷ 1.05
= 5.048%
Now
beta of portifolio is
= 10 ÷ 15 × 1.05 + 5 ÷ 15 × 0.65
= 0.9167
And, finally
required return is
= 4.2% + 0.9167 × 5.048%
= 8.83%
The present value of a future sum decreases as either the discount rate or the number of periods per year increases, other things held constant. True False
Answer:
True
Explanation:
At the time when the future sum of the present value reduced and it can be either the discount rate or the number of the period on a yearly basis increased being the other things would remain the same
So the given statement is true
Hence, the same should be considered and relevant too
Jefferson's recently paid an annual dividend of $7 per share. The dividend is expected to decrease by 1% each year. How much should you pay for this stock today if your required return is 14% (in $ dollars)
Answer:
the stock price that need to pay for the stock today is $46.2
Explanation:
The computation of the stock price is shown below:
= Dividend × (1 - growth rate) ÷ (required return - growth rate)
= $7 × (1 - 0.01) ÷ (14% - (-1%))
= $6.93 ÷ 0.15
= $46.2
Hence, the stock price that need to pay for the stock today is $46.2
Basically we applied the above formula so that the correct stock price could come
Ending raw materials would appear in which of the following budgets?
(A) Debit Labor Budget
(B) Direct Materials Budget
(C) Budgeted Income Statement
(D) Sales Budget
Answer:
B
Explanation:
Raw materials will fall under a material budget as it is only for purchasing the raw materials
Bricktan Inc. makes three products, basic, classic, and deluxe. The maximum Bricktan can sell is 100,000 units of basic, 460,000 units of classic, and 170,000 units of deluxe. Bricktan has limited production capacity of 110,000 hours. It can produce 10 units of basic, 8 units of classic, and 4 units of deluxe per hour. Contribution margin per unit is $15 for the basic, $25 for the classic, and $55 for the deluxe. What is the total contribution margin if Bricktan chooses the most profitable sales mix
Answer:
Bricktan Inc.
The total contribution margin if Bricktan chooses the most profitable sales mix is:
= $22,350,000.
Explanation:
a) Data and Calculations:
Basic Classic Deluxe
Sales units 100,000 460,000 170,000
Limited production capacity = 110,000 hours
Units per hour 10 8 4
Sales mix 10 8 4
Contribution per unit $15 $25 $55
Contribution per hour $150 $200 $220
Total production hours 10,000 57,500 42,500
Total contribution margin $1,500,000 $11,500,000 $9,350,000
Total contribution = $22,350,000
Which type of graphic organizer would best organize your notes on how to start a small business?
A). a timeline
B). a Venn diagram
C). problem-solution chart
D). a cluster diagram
Answer:
a Venn diagram
Explanation:
Most economists believe the principle of monetary neutrality is a. relevant to both the short and long run. b. mostly relevant to the short run. c. irrelevant to both the short and long run. d. mostly relevant to the long run.
Answer:
d. mostly relevant to the long run.
Explanation:
In economics or financial accounting, money can be defined as any asset used by an individual or business entity to make purchases of goods and services at a specific period of time.
Simply stated, money refers to any asset which can be used to purchase goods and services by customers.
This ultimately implies that, money is any recognized economic unit that is generally accepted as a medium of exchange for goods and services, as well as repayment of debts such as loans, taxes across the world.
Additionally, the rate at which an asset can be used to purchase any goods or services refers to its liquidity. Thus, liquidity is a quality or characteristics of money as a medium of exchange. Therefore, money is a generally accepted medium of exchange around the world.
The three (3) main functions of money all over the world are;
I. Medium of exchange.
II. Unit of account.
III. Store of value.
The principle of monetary neutrality typically based on the idea that changes in any stock of money would affect only nominal variables such as exchange rate, wages and price in the economy of a particular country.
Most economists believe the principle of monetary neutrality is mostly relevant to the long run.
Most economists believe that the principle of monetary neutrality is mostly relevant to the long run. Therefore, option d is correct.
Monetary neutrality, a principle in economics, posits that changes in the money supply have no significant impact on real variables, such as output and employment, in the long run.
According to this concept, monetary policy actions, such as altering the money supply or interest rates, primarily affect nominal variables, like prices and inflation, rather than real economic activity.
The principle suggests that in the long run, the real economy is driven by factors other than changes in the money supply, such as productivity, technology, and institutional factors, which have a more substantial influence on economic growth and development.
Therefore, option d is correct.
Learn more about monetary neutrality here:
https://brainly.com/question/15891695
#SPJ6
At the beginning of 2019, Sunshine Corporation issued 18,000 shares of $100 par, 7%, cumulative, preferred stock for $110 per share. No dividends have been paid to preferred or common shareholders. What amount of dividends will a preferred shareholder owning 100 shares receive in 2021 if Sunshine pays $1,000,000 in dividends
Answer:
the amount of dividend that would be paid to the preferred shareholder is $2,100
Explanation:
The computation of the amount of dividend that would be paid to the preferred shareholder is shown below;
= Par value × dividend rate × number of shares × number of years
= $100 × 7% × 100 × 3 years
= $2,100
hence, the amount of dividend that would be paid to the preferred shareholder is $2,100
The same is to be relevant
An industry has 5 firms. Firm A has 30% of the market, Firm B and Firm C each have 25% of the market, Firm D has 15% of the market, and Firm E has 5% of the market. What is the HHI for this industry
Answer:
2400
Explanation:
The HHI is calculated by squaring the market share of each firm in the industry.
30² + 25² + 25² + 15² + 5² = 2400
If Larry does not know about the theft or any problems with the instrument, what is the status of Larry
Incomplete question. The full question read;
Bob writes a check to cash for $1000 to pay a bill from Acme. He then finds out that Acme breached the contract so he decides he will not pay them and puts a stop payment on the check. However, the check is stolen by Theron Thief (and Bob was not negligent) who then gives it to his landlord, Larry Landlord, to whom Theron already owes $1000. If Larry does not know about the theft or any problems with the instrument, what is the status of Larry:
1. Accommodation Indorser
2. Ordinary Holder
3. A Maker
4. Holder in Due Course
Answer:
4. Holder in Due Course
Explanation:
Under the provisions made by the law, basically when someone holds possession of a payment instrument such as a check without knowledge that the instrument has either been:
dishonored,or it has been altered, forged,or contain some irregularities, etc,This individual (Larry) who holds this payment instrument in good faith is termed the Holder in Due Course.
ou own a portfolio that has $2,700 invested in Stock A and $3,800 invested in Stock B. Assume the expected returns on these stocks are 12 percent and 18 percent, respectively. What is the expected return on the portfolio
Answer:
the expected return on the portfolio is 15.50%
Explanation:
The computation of the expected return on the portfolio is shown below:
Total investment is
= $2,700 + $3,800
= $6,500
Now
Expected return of portfolio is
= ($2,700 ÷ $6,500) × 12 + ($3,800 ÷ $6,500) × 18
= 4.98% + 10.52%
= 15.50%
Hence, the expected return on the portfolio is 15.50%
The records of Orange Company showed the following information about a delivery truck purchased for $34,250: Accumulated depreciation as of December 31, Year 3: $12,000 On July 1 of Year 4, Orange Company sold the truck for $18,600. What gain/loss should Orange Company records related to the sale
Answer:
a loss of $3650
Explanation:
Book value at the time of the sale = purchase price - accumulated depreciation
$34,250 - 12,000 = $22,450
the sales price is less than the book price, thus it is sold at a loss
22,450 - 18600 = 3650