Answer:
Option a ($325,203) is the right response.
Explanation:
The given values are:
Required Lump sum amount,
= $2,000,000
Future value of an annuity,
= 6.15
Now,
As we know,
The required amount of annual deposit will be:
= [tex]\frac{Required \ lump \ sum \ amount}{Future \ value \ of \ an \ annuity}[/tex]
On substituting the given values, we get
= [tex]\frac{2,000,000}{6.15}[/tex]
= [tex]325,203.25[/tex]
i.e.,
= [tex]325,203[/tex] ($)
Two constant growth stocks are in equilibrium, have the same price, and have the same required rate of return. Which of the following statements is CORRECT? a. The two stocks must have the same dividend per share. b. If one stock has a lower dividend yield, then it must also have a lower dividend growth rate. c. None of the above. d. The two stocks must have the same dividend growth rate. e. If one stock has a lower dividend yield, then it must also have a higher dividend growth rate.
Answer:
e. If one stock has a lower dividend yield, then it must also have a higher dividend growth rate.
Explanation:
Rate of return can be defined as the percentage of interest or dividends earned on money that is invested.
In Financial accounting, a return refers to the amount of profit generated by an investor on an investment over a specific period of time.
Basically, the rate of return which is typically expressed as a percentage of the initial costs of an investment can either be a gain or a loss on an investment. Therefore, a positive rate of return on an investment over a specific period of time, simply means that an investor is making a profit (gains) while a negative rate of return on an investment over a specific period of time, indicates that the investor is running at a loss.
Two constant growth stocks are in equilibrium, have the same price, and have the same required rate of return. Thus, if one stock has a lower dividend yield, then it must also have a higher dividend growth rate and vice-versa.
Answer:
e. If one stock has a lower dividend yield, then it must also have a higher dividend growth rate.
Explanation:
Because it is the "Correct Answer"
Paul Company had 100,000 shares of common stock outstanding on January 1, 2021. On September 30, 2021, Paul sold 40,000 shares of common stock for cash. Paul also had 6,000 shares of convertible preferred stock outstanding throughout 2021. The preferred stock is $100 par, 6%, and is convertible into 3 shares of common for each share of preferred. Paul also had 420, 8%, convertible bonds outstanding throughout 2021. Each $1,000 bond is convertible into 30 shares of common stock. The bonds sold originally at face value. Reported net income for 2021 was $270,000 with a 40% tax rate. Common shareholders received $1.20 per share dividends after preferred dividends were paid in 2021.
Required: Compute basic and diluted earnings per share for 2021. (Round your answers to 2 decimal places.)
Answer:
Basic EPS = [$270,000 - (6% * $100 * 6,000)] / [100,000 + 40,000 * 3/12]
Basic EPS = [$270,000 - $36,000] / 35,000
Basic EPS = $234,000 / 35,000
Basic EPS = 6.685714285714286
Basic EPS = 6.69
Diluted EPS = [$270,000 + ($420,00*8%*60%)] / [100000 + 40,000 * 3/12 + (420*30) + (6,000*3)]
Diluted EPS = [$270,000 + $2,016] / [35,000 + 12600 + 18,000]
Diluted EPS = $272,016 / 65,600
Diluted EPS = 4.146585365853659
Diluted EPS = $4.15
While implementing an affirmative action plan, an employer is expected to do all of the following except:establish objectives that can be met by applying good faith efforts.set quotas for the underrepresented groups, and ensure they are met even if it is necessary to hire a less qualified candidate.make all employment decisions in a nondiscriminatory manner.ensure that hiring objectives do not establish a floor or a ceiling for employment of certain groups.
Answer:
set quotas for the underrepresented groups, and ensure they are met even if it is necessary to hire a less qualified candidate.
Explanation:
Business strategy sets the overall direction for the business because it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan.
Planning is a term used to describe the process of developing the organization's objectives and translating those into courses of action.
This ultimately implies that, planning is a strategic technique used by organizations to make an aggregate plan for its manufacturing (production) process typically ahead of time, in order to have an idea of the level of goods that are to be produced and what resources are required so as to reduce the total cost of production to its barest minimum.
While implementing an affirmative action plan, an employer is expected to do all of the following;
I. Establish objectives that can be met by applying good faith efforts.
II. Make all employment decisions in a nondiscriminatory manner.
III. Ensure that hiring objectives do not establish a floor or a ceiling for employment of certain groups.
Suzette's husband told her, "I admire your boldness, but I'm not sure that you should open that business. I've heard that entrepreneurs are ______________." Suzette replied, "That's a common myth. In fact, entrepreneurs take very careful, calculated risks and are not afraid to act on those decisions."
Answer:
Gamblers
Explanation:
Risk management can be defined as the process of identifying, evaluating, analyzing and controlling potential threats or risks present in a business as an obstacle to its capital, revenues and profits. This ultimately implies that, risk management involves prioritizing course of action or potential threats in order to mitigate the risk that are likely to arise from such business decisions.
In this scenario, Suzette's husband told her, "I admire your boldness, but I'm not sure that you should open that business. I've heard that entrepreneurs are gamblers." Suzette replied, "That's a common myth. In fact, entrepreneurs take very careful, calculated risks and are not afraid to act on those decisions."
Entrepreneurship is one of the factors of production and it is the intellectual capacity required to drive a business and the skills to develop an idea into a money making venture (business).
Proprietary technology is technology that is a. widely used because it is easy to learn. b. widely used because the government subsidizes its use. c. not widely used because people could, but have not, taken the time to learn how to apply it. d. not widely used because it is known or controlled only by the company that discovered it.
Answer:
d. not widely used because it is known or controlled only by the company that discovered it.
Explanation:
Technology can be defined as a branch of knowledge which typically involves the process of applying, creating and managing practical or scientific knowledge to solve problems and improve human life. Technologies are applied to many fields in the world such as medicine, information technology, cybersecurity, engineering, environmental etc.
Proprietary technology is peculiar to a particular company.
Proprietary technology is technology that is not widely used because it is known or controlled only by the company that discovered it.
Beedles Inc. needed to raise $14 million in an IPO and chose Security Brokers Inc. to underwrite the offering. The agreement stated that Security Brokers would sell 3 million shares to the public and provide $14 million in net proceeds to Beedles. The out-of-pocket expenses incurred by Security Brokers in the design and distribution of the issue were $220,000. What profit or loss would Security Brokers incur if the issue were sold to the public at the following average price
Answer:
a. Profit = $780,000
b. Profit = $3,780,000
c. Loss = $2,220,000
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Beedles Inc. needed to raise $14 million in an IPO and chose Security Brokers Inc. to underwrite the offering. The agreement stated that Security Brokers would sell 3 million shares to the public and provide $14 million in net proceeds to Beedles. The out-of-pocket expenses incurred by Security Brokers in the design and distribution of the issue were $220,000. What profit or loss would Security Brokers incur if the issue were sold to the public at the following average price
a. $5 per share
b. $6 per share
c. $4 per share
The explanation of the answer is now given as follows:
The profit or loss can be calculated using the following formula:
Profit or loss = Sales proceed - Net proceeds to Beedles - Out-of-pocket expenses incurred by Security Brokers ........... (1)
Where;
Sales proceed = Average price * Number of shares = Average price per share * 3,000,000
Net proceeds to Beedles = 14,000,000
Out-of-pocket expenses incurred by Security Brokers = $220,000
We can proceed as follows:
a. profit or loss at average price $5 per share
Substituting all the values into equation (1), we have:
Profit or loss = ($5 * 3,000,000) - $14,000,000 - $220,000 = $780,000 profit
b. profit or loss at average price $6 per share
Substituting all the values into equation (1), we have:
Profit or loss = ($6 * 3,000,000) - $14,000,000 - $220,000 = $3,780,000 profit
c. profit or loss at average price $4 per share
Substituting all the values into equation (1), we have:
Profit or loss = ($4 * 3,000,000) - $14,000,000 - $220,000 = -$2,220,000 loss
Assume that on July 1, 2019, a parent company paid $1,504,800 to purchase a 75% interest in a subsidiary's voting common stock. On that date, the fair value of the 25% interest not purchased by the parent company is $500,000. The acquisition-date fair value of the identifiable net assets of the subsidiary is $1,920,000. What is the amount of goodwill assigned to the controlling and noncontrolling interests, respectively, on the acquisition date
Answer:
Goodwill assigned to the controlling:
= Amount paid to acquire 75% share - Share in fair value of the identifiable net assets
= $1,504,800 - ($1,920,000*75%)
= $1,504,800 - $1,440,000
= $64,800
Goodwill assigned to the non-controlling interests:
= Fair vale of the 25% interest - Share in fair value of the identifiable net assets
= $500,000 - ($1,920,000*25%)
= $500,000 - $480,000
= $20,000
Jenae's study ignored the fact that only some of her coffee choices had caffeine, even though her co-workers preferred caffeinated coffee. Therefore, Jenae decided to label one type of decaffeinated coffee as having caffeine to see what would happen. As she anticipated, this coffee became more popular with her co-workers, and they claimed that the extra boost of caffeine helped them focus on their work. The growing popularity of the decaffeinated coffee among co-workers, under the false impression that it gave them extra caffeine, is an example of ________.
Answer:
Placebo effect
Explanation:
Placebo effect occurs when an individual starts to show positive response to an inactive substance after being told the substance has powers to cure.
The person's mind subconsciously helps him heal or perform better on the false belief that the substance is effective.
In the given scenario Jeanne labelled decaffeinated coffee as caffeinated coffee. On consumption her co-workers claimed that the extra boost of caffeine helped them focus on their work.
This is a placebo effect.
Answer:
Placebo effect
Explanation:
A company making tires for bikes is concerned about the exact width of their cyclocross tires. The company has a lower specification limit of 19.930 mm and an upper specification limit of 20.070 mm. The standard deviation is 0.18 mm and the mean is 20.000 mm. b. The company now wants to reduce its defect probability and run a "six-sigma process." To what level would they have to reduce the standard deviation in the process to meet this target? (Round the answer to 5 decimal places.)
Answer:
Missing word "a. What is the process capability index for the process?"
a. Cpk = Min[USL-μ/3σ, μ-LSL/3σ]
Cpk = Min[(20.070-20)/(3*0.18) ,(20-19.930)/(3*0.18]
Cpk = Min[0.1296, 0.1296]
Hence, process capability index is 0.1296
b. 2 = Min[USL-μ/3σ, μ-LSL/3σ]
2 = Min[(20.070-20)/(3*σ) ,(20-19.930)/(3*σ]
2 = Min[(0.07/3*σ, 0.07/3*σ)]
= Min[0.07/6, 0.07/6]
σ = 0.07/6
σ = 0.0117
Hence, reduced standard deviation level is 0.0117
Which term refers to the interest the Federal Reserve Bank (Fed) charges banks for loans? open‑market sale fractional banking reserve ratio money multiplier discount rate Select the charge the Fed levies on banks borrowing funds that would result in the smallest increase in the money supply. two percentage points above the private level one percentage point above the private level the same as the private level one percentage point below the private level two percentage points below the private level
Answer:
Which term refers to the interest the Federal Reserve Bank (Fed) charges banks for loans?
discount ratethe discount rate is the interest rate that the Federal Reserve System charges banks for the loans it makes. The overnight rate or the federal funds rate is even lower, but it lasts a few hours only.
Select the charge the Fed levies on banks borrowing funds that would result in the smallest increase in the money supply.
two percentage points above the private levelthe higher the interest rate, the lower the increase in the money supply.
tell me 3 different scholarships that can help you pay for college.
Also provide the links for the 3 scholarships.
I need this asap First person get brainliest
Answer:
good result
hardness and hard work
good and disciplined student
The definition of Not Utilizing Staff Talent in the Eight Wastes refers to a. making more than the customer wants or more than you have demand for b. idle time when resources are not being used c. a product that is less than perfect d. not encouraging employee ideas or undermining their efforts e. both b and d
Answer:
d. not encouraging employee ideas or undermining their efforts.
Explanation:
Human resources management (HRM) can be defined as an art of managing, controlling and improving the number of people (employees or workers), functions, activities which are being used effectively and efficiently by an organization.
Hence, human resources managers are saddled with the responsibility of recruiting, managing and improving the welfare and working conditions of the employees working in an organization.
The definition of Not Utilizing Staff Talent in the Eight Wastes refers to not encouraging employee ideas or undermining their efforts.
Apartments is a ​-unit apartment complex. When the apartments are​ 90% occupied, monthly operating costs total $220,040. When occupancy dips to​ 80%, monthly operating costs fall to $215,480. The owner of the apartment complex is worried because many of the apartment residents work at a nearby manufacturing plant that has just announced it will close in three months. The apartment owner fears that occupancy of her apartments will drop to 55​% if residents lose their jobs and move away. Assuming the same relevant​ range, what can the owner expect her operating costs to be if occupancy falls to ​55%?
Answer:
Missing word "Use the high-low method to determine operating cost equation y=$_____, x + $ = ____"
Cost on (800*90%)=720 units is 220,040
Cost on (800*80%) = 640 Units is 215,480
Variable cost per unit = Changes in total cost/High activity-low activity = 4560 / 80 = $57 per unit
Fixed cost = Total cost - Variable cost = 220,040 - (720*$57) = 220,040 - 41,040 = $179000
Cost equation:
Total cost = Fixed cost + Variable cost per unit
Y = 179000 + 57X
Y = 179000 + (57*440)
Y = $204,080
You just received a bonus at your job of $4,000 which you decide to put in a savings account at the local bank. Assume that banks lend out all excess reserves and there are no leaks in the banking system. That is, all money lent by banks get deposited in the banking system. Round your answers to the nearest dollar.The reserve requirement is 18%, how much will your deposit increase the total value of checkable deposits?If the reserve requirement is 7%, how much will your deposit increase the total value of checkable deposits?Decreasing the reserve requirement _____ the money supply.a. Decreasesb. Increases
Answer:
$22,222.22
$57,142.86
INCREASES
Explanation:
Reserve requirement is the portion of deposit received by banks that the central bank requires to be kept as deposit.
If $4000 is deposited and reserve requirement is 18%
reserves would increase by $4000 x 0.18 = 4720
Increase in the total value of checkable deposit is determined by the money multiplier
Money multiplier = amount deposited / reserve requirement
$4000 / 0.18 = $22,222.22
$4000 / 0.07 = $57,142.86
It can be seen that the higher the reserve requirement, the lower the increase in the total value of checkable deposit
You just bought a motorcycle for $8,000. You plan to ride the motorcycle for two years, and then sell it for $3,200. During this two-year period, you expect to ride the motorcycle 10,000 miles each year, and you expect the motorcycle to get 50 miles per gallon of gasoline. The annual cost of insurance is $960, registration costs are $80 (good for two years), and the price of gasoline is $2.50 per gallon. During this same two-year period, you will need to service your motorcycle five times, at $240 per service check, and obtain five oil changes. Each oil change costs $35. You will also need to replace your tires once during this two-year period, for a total cost of $400.
a. Calculate the total fixed cost, total variable cost, and cost per mile for the two-year period, and then complete the table below.
Instructions: Round your answers for total fixed cost and total variable cost to the nearest whole number. Round your answer for cost per mile to two decimal places.
Total Fixed Cost Total Variable Cost Cost per Mile $
b. Suppose you want to lower the cost per mile. You should focus on: __________
a) variable costs, because they represent a majority of the total costs.
b) fixed costs, because they must be paid.
c) variable costs, because they can be avoided.
d) fixed costs, because they represent a majority of the total costs.
Answer:
1. a. Total fixed costs
= Depreciation + Insurance + Registration cost
Depreciation = Cost - salvage = 8,000 - 3,200 = $4,800
Total fixed cost = 4,800 + (960 * 2) + 80
= $6,800
b. Total variable cost:
= Gasoline + Service + Oil change + tire replacement
= (10,000 / 50 * 2.5 * 2 years) + (240 * 5) + (35 * 5) + 400
= 1,000 + 1,200 + 175 + 400
= $2,775
c. Cost per mile:
= Total cost / Number of miles
= (6,800 + 2,775) / (10,000 * 2 years)
= $0.48 per mile
2. c) variable costs, because they can be avoided.
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (18,200 units): Direct materials $179,000 Direct labor 233,300 Variable factory overhead 261,200 Fixed factory overhead 98,300 $771,800 Operating expenses: Variable operating expenses $124,700 Fixed operating expenses 46,700 171,400 If 1,800 units remain unsold at the end of the month and sales total $1,193,000 for the month, what would be the amount of income from operations reported on the variable costing income statement
Answer: $66600
Explanation:
First, we calculate the total production cost which will be:
Direct materials = $179,000
Direct labor = $233,300
Variable factory overhead = $261,200
Total production cost = $673500
Production cost per unit = $673500 / 18200 = $37 per unit
The amount for 1800 units unsold will then be:
= 1800 × $37
= $66600
Therefore, the amount of income from operations reported on the variable costing income statement is $66600.
Jessica Adams is 21 years old and has just graduated from college. In considering the retirement investing options available at her new job, she is thinking about the long term effects of inflation. Explain the effect of long term inflation on meeting retirement financial planning goals. If long term inflation is expected to average 4% per year and you expect a long term investment of 7% per year- what is Jessica's long term expected real rate of return (adjusted for inflation)
Answer:
The summary as per the given query is summarized in the explanation section below..
Explanation:
The given values are:
The nominal rate of return,
= 7%
i.e.,
= 0.07
Inflation,
= 4%
i.e.,
= 0.04
Lengthy-term inflation would lessen the return on investment that lowers the net return as long-term investments are made.It can also aim to obtain a higher return that will comfortably exceed the rate of inflation and therefore is beneficial towards diminishing the average return.Now,
The rate of return will be:
= [tex](\frac{1+ nominal \ rate \ of \ return}{1+Inflation}) -1[/tex]
On substituting the values, we get
= [tex](\frac{1+0.06}{1+0.04} )-1[/tex]
= [tex](\frac{1.07}{1.04} )-1[/tex]
= [tex]1.028846-1[/tex]
= [tex]2.8846 \ percent[/tex]
Therefore it isn't able to measure the average return rate because the quantity of years for its expenditure.
Pension data for David Emerson Enterprises include the following:_______.
($ in millions)
Discount rate, 12%
Projected benefit obligation, January 1 $ 350
Projected benefit obligation, December 31 485
Accumulated benefit obligation, January 1 320
Accumulated benefit obligation, December 31 435
Cash contributions to pension fund, December 31 170
Benefit payments to retirees, December 31 58
Required:
Assuming no change in actuarial assumptions and estimates, determine the service cost component of pension expense for the year ended December 31.
Service cost million
Answer:
$151 million
Explanation:
Calculation to determine the service cost component of pension expense for the year ended December 31.
Projected benefit obligation, December 31 $485 million
Add Benefit payments to retirees, December 31 $58 million
Less Interest cost ($42 million)
(350*12%)
Less Projected benefit obligation, January 1 ($350 million)
Service cost $151 million
Therefore the service cost component of pension expense for the year ended December 31 will be $151 million
You are considering investing $1,000 in a T-bill that pays 0.05 and a risky portfolio, P, constructed with two risky securities, X and Y. The weights of X and Y in P are 0.60 and 0.40, respectively. X has an expected rate of return of 0.14 and variance of 0.01, and Y has an expected rate of return of 0.10 and a variance of 0.0081. What would be the dollar values of your positions in X and Y, respectively, if you decide to hold 40% of your money in the risky portfolio and 60% in T-bills
Answer:
The answer is "[tex]x=\$240 \ and \ y= \$160[/tex]"
Explanation:
Total amount[tex]= \$1000[/tex]
when [tex]40\%[/tex] a risky portfolio [tex]= 0.4 \times \$1000=\$400[/tex]
calculating the risky portfolio value on [tex](\$400)[/tex]
When [tex]60\%[/tex] consist of x
[tex]\to \$400 \times 0.6\\\\\to \$240[/tex]
When [tex]40\%[/tex] consist of y
[tex]\to \$400 \times 0.4\\\\\to \$160[/tex]
So, the dollar value in [tex]x=\$240 \ and \ y= \$160[/tex]
Brenda, a self-employed taxpayer, travels from Chicago to Barcelona (Spain) on business. She is gone 10 days (including 2 days of travel) during which time she spends 5 days conducting business and 3 days sightseeing. Her expenses are $2,370 (airfare), $260 per day (meals), and $540 per night (lodging). Because Brenda stayed with relatives while sightseeing, she only paid for 5 nights of lodging. Compute Brenda's deductions for the following:
Answer:
A. $1,659
B. $910
C. $2,700
Explanation:
Calculation to determine Brenda's deduction
a. Airfare= (70% × $2,370)
Airfare=$1,659
b. Meals=[(260/2)*7
Meals=$910
c. Lodging= [540*5]
Lodging=$2,700
Therefore Brenda's deductions are :
Airfare $1,659
Meals $910
Lodging $2,700
Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year. Beginning Inventory Ending Inventory Raw material* 51,000 61,000 Finished goods 91,000 61,000 * Three pounds of raw material are needed to produce each unit of finished product. If Paradise Corporation plans to sell 535,000 units during next year, the number of units it would have to manufacture during the year would be:
Answer:
505,000 units
Explanation:
Number of units it would have to manufacture during the year would be:
Beginning inventory + Units produced = Ending inventory + Units sold
Units produced = Ending inventory + Units sold - Beginning inventory
Units produced = 535,000 units + 61,000 units - 91,000 units
Units produced = 505,000 units
Kevin O’Leary suggests that Jenn and Kelley decrease the price of their product by 50% and sell 10 times as many. That is, he predicts if they drop the price of their product from $40 to $20 they will increase their quantity demanded from 6,000 to 60,000. Calculate the price elasticity of demand for Pursecases using the midpoint formula from this information
Answer:
The price elasticity of demand for Pursecases using the midpoint formula from this information is -2.45.
Explanation:
From the question, we have:
New quantity demanded = 60,000
Old quantity demanded = 6,000
New price = $20
Old price = $40
The formula for calculating the price elasticity of demand is as follows:
Price elasticity of demand = Percentage change in quantity demanded /
Percentage change in price ................ (1)
Where, based on the midpoint formula, we have:
Percentage change in quantity demanded = {(New quantity demanded - Old
quantity demanded) / [(New quantity demanded + Old quantity demanded) /
2]} * 100 = {(60,000 - 6,000) / [(60,000 + 6,000) / 2]} * 100 = 163.636363636364%
Percentage change in price = {(New price - Old price) / [(New price + Old
price) / 2]} * 100 = {(20 - 40) / [(20 + 40) / 2]} * 100 = -66.6666666666667%
Substituting the values into equation (1), we have:
Price elasticity of demand = 163.636363636364% / -66.6666666666667% = -2.45454545454546
Rounding to 2 decimal places, we have:
Price elasticity of demand = -2.45
Therefore, the price elasticity of demand for Pursecases using the midpoint formula from this information is -2.45.
When The price elasticity of demand for Purchase then we are using the midpoint formula from this information is: -2.45.
Elasticity of demandAccording to the Elasticity of demand, are refers to the degree within the change in demand and also when there is a little change in another economic factor, like price or income.
Then New quantity demanded is = 60,000Old quantity demanded is = 6,000
After that New price are = $20
Then Old price is = $40
When The Price elasticity of demand is = Percentage change in quantity demanded / percentage change in price are
Percentage change in quantity demanded = * 100
= * 100
= 163.636363636364%[/tex]
Percentage change in price
= * 100
= * 100 = -66.6666666666667%[/tex]
Then Substituting the values into equation (1), we have:
Price elasticity of demand is =163.636363636364% [tex]-66.6666666666667% = -2.45454545454546[/tex}
Then the Price elasticity of demand is = -2.45
Thus, the value elasticity of demand for Purchase using the midpoint formula from this information is -2.45.
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In recent years, Avery Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for each bus, and various methods were selected. Information conserning the buses is summarized as follow.
Bus Acquired cost salvage Value Useful Life in Years Depreciation Method
1 1/1/12 $99,100 $7,900 4 Strait-line
2 1/1/12 128,000 11,000 4 Declining- balance
3 1/1/13 66,350 8,800 5 Unit-of-activity
For the declining -balance method, the company uses the double-declining rate. for the units-of-activity method, total miles are expected to be 115,100. Actual miles of use in the first 3 years were: 2013, 23,400; 2014, 32,700; and 2015, 31,900. For Bus #3, calculate depreciation expense per mile under units-of-activity method.(Round answer to 2 decimal places,e.g.$0.50.).
Compute the amount of accumulated depreciation on each bus at December 31, 2014 (Round answers to 0 decimal places, e.g. $2,125.).
2014
BUS 1 $
BUS 2 $
BUS3 $
If bus 2 was purchased on April 1 instead of January 1, what is the depreciation expense for this bus in 2012 and 2013? (Round answers to 0 decimal places, e.g.$2,125.).
2012 2013
Depreciation expense $ $
Answer:
1. For Bus #3, calculate depreciation expense per mile under units-of-activity method
Depreciation expense per mile = ((Cost of bus - Salvage value) / Total miles)
= ($66,350 - $8,800) / 115,100 miles
= $0.5 per mile
The depreciation expense per mile is $0.5 per mile.
2. BUS 1
Depreciation for 1 year = (Cost of assets - Residual value) / Useful life
= $99,100−$7,900 / 4 years
= $22,800
Accumulated depreciation = Depreciation for 1 year * 3 years (from 2012 to 2014)
= $22,800 * 3 years
= $68,400
BUS 2
Depreciation rate = (1/4 *100)*2 = 50%
Years Annual Depreciation Accum. depreciation
2012 $64,000(128,000*50%) $64,000
2013 $32,000(128,000-64,000)*50% $96,000
2014 $16,000(128,000-64,000-32,000)*50% $112,000
BUS 3
Accumulated depreciation = Depreciation expense per mile * Total miles of 2013 and 2014
= $0.50 * (23,400 miles +32,700 miles)
= $0.50 * 56,100 miles
= $28,050
3. Depreciation rate = (1/4 *100)*2 = 50%
Years Depreciation Calculation
2012 $48,000 128,000*50%*9/12
2013 $40,000 128,000-40,000*50%
So, the depreciation expense for Bus 2 for 2012 and 2013 is $48,000 and $40,000
Answer 1:
The depreciation expense per mile under units of activity method of Bus=3 :
Depreciation Expense per mile = ((Cost of bus - Salvage value) / Total miles) Depreciation Expense per mile = ($66,350 - $8,800) / 115,100 miles Depreciation Expense per mile= $0.5 per mile
Answer 2: The amount of accumulated depreciation on each bus on December 31, 2014 :
BUS 1Depreciation for 1 year = (Cost of assets - Residual value) / Useful life
Depreciation for 1 year = $99,100−$7,900 / 4 years
Depreciation for 1 year = $22,800
Accumulated depreciation = Depreciation for 1 year * 3 years (from 2012 to 2014)
Accumulated Depreciation = $22,800 * 3 years
Accumulated Depreciation= $68,400
BUS 2
Years Annual Depreciation Accum. Depreciation
2012 $64,000(128,000*50%) $64,000
2013 $32,000(128,000-64,000)*50% $96,000
2014 $16,000(128,000-64,000-32,000)*50% $112,000
Note : Depreciation rate = (1/4 *100)*2 = 50%
BUS 3
Accumulated depreciation = Depreciation expense per mile * Total miles of 2013 and 2014
Accumulated depreciation= $0.50 * (23,400 miles +32,700 miles)
Accumulated depreciation= $0.50 * 56,100 miles
Accumulated depreciation= $28,050
Answer 3: The depreciation expense for this bus in 2012 and 2013:
Years Depreciation Calculation
2012 $48,000 128,000*50%*9/12
2013 $40,000 128,000-40,000*50%
Note : Depreciation rate = (1/4 *100)*2 = 50%
Thus, the depreciation expense for Bus 2 for 2012 is $48,000 and 2013 is $40,000.
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Identify the source of a consumer loans given below.
a. Commercial banks
b. Consumer finance companies
c. Credit unions
d. Savings and associations
e. Sales finance companies
f. Life insurance companies
1. These institutions usually carry variable interest rates and need not be paid back.
2. These institutions generally offer higher interest rates than many other types of institutions because the vendor of the item being financed arranges the financing and must be paid for that service.
3. These are nonprofit organizations whose loan interest rates are relatively low.
4. These institutions mainly make mortgage loans.
5. Loans from these institutions are in high demand but given only to those who are good credit risks.
Answer:
a. Commercial banks ⇒ Loans from these institutions are in high demand but given only to those who are good credit risks.
b. Consumer finance companies ⇒ These institutions are known as small loan companies with most loans for $5000 or less.
c. Credit unions ⇒ These are nonprofit organizations whose loan interest rates are relatively low.
d. Savings and associations ⇒ These institutions mainly make mortgage loans.
e. Sales finance companies ⇒ These institutions generally offer higher interest rates than many other types of institutions because the vendor of the item being financed arranges the financing and must be paid for that service.
f. Life insurance companies ⇒These institutions usually carry variable interest rates and need not be paid back.
Categorize the statements according to whether they promote economic growth or inhibit economic growth. Promote economic growth Inhibit economic growth clear laws regarding the transfer of property from one person to another the creation of a price floor on sugar the enforcement of trademarks A nation's central bank declares it will print money to pay for government expenditure. the development of regulations that make creating small businesses difficult a corrupt government the use of competitive markets to allocate goods and services
Answer:
Categorization of Statements
Promotion of Economic Growth:
- clear laws regarding the transfer of property from one person to another
- the enforcement of trademarks
- A nation's central bank declares it will print money to pay for government expenditure.
- the use of competitive markets to allocate goods and services
Inhibition of Economic Growth:
- the creation of a price floor on sugar
- the development of regulations that make creating small businesses difficult
- a corrupt government
Explanation:
Economic growth can be increased by the reduction of the borrowing costs and interest rates and encouraging consumer spending and business investments.
The factors that inhibit economic growth also create market inefficiencies. They include lack of basic infrastructure, healthcare, and education, capital flight and economic uncertainties, ageing population, political instability, and rampant corruption.
Decision Making: Stormcenter A decision is a choice made from among available alternatives. Decision making is the process of identifying and choosing alternative courses of action. This activity is important because managers need to know how to make effective decisions, sometimes quickly. The goal of this activity is to provide you with problem-solving skills when it comes to issues related to decision making. A storm is on track for a possible hit on a major city and the government has set up a command center to monitor it and make decisions. There is some disagreement between government officials on whether or not an evacuation of the city should be ordered. There is limited time to make a decision and things get quite heated at the storm center. How is the team handling the situation? How would you? At the beginning of the video, Ava does not properly follow the third step of the formal decision-making process. What did she do wrong?
Answer:
The team should take the matter very seriously as the storm effects is unpredictable.
I would take decision to inform the residents of the city about the storm and its intensity. The plans should be made in case if the storm get wild, the relocation can be made with ease.
Ava should discuss all the concerns with the team and she should encourage the team to gather ideas.
Explanation:
The government has the responsibility of the entire city. In case of natural disasters the government is held responsible for not taking the immediate precautionary measures. To avoid the circumstances of heavy disaster in the city, the team should take decisions with and consider all the risks which may affect the city.
Kahn Company paid $240,000 to purchase a machine on January 1, Year 1. During Year 3, a technological breakthrough resulted in the development of a new machine that costs $300,000. The old machine costs $100,000 per year to operate, but the new machine could be operated for only $36,000 per year. The new machine, which will be available for delivery on January 1, year 3, has an expected useful life of four years. The old machine is more durable and is expected to have a remaining useful life of four years. The current market value of the old machine is $80,000. The expected salvage value of both machines is zero.
Required
Calculate the total avoidable costs in keeping the old machine and buying a new machine. Should the machine be replaced?
Answer:
Yes, the machine should be replaced
Explanation:
The calculation is given below:
Particulars old Machine New machine
Purchase price $300,000
Less:
Salvage value -$80,000
Operating cost $400,000 $144,000
($100,000 × 4 ) ($36,000 × 4)
Total cost $400,000 $364,000
Hence, the financial advantage is
= $400,000 - $364,000
= $36,000
As there is a financial advantage of $36,000 therefore the old machine would be replaced with the new machine
A company makes a product using two materials, one of which is interchangeable with a third material. The standards for producing one 200-pound batch are presented below. The last 200-pound batch was produced using 185 pounds of M and 210 pounds of O. The price of M was $0.03 per pound and the actual price of O was $0.10.
Material Standard Quantity (lbs) Standard Cost/lb. Total Cost
O 0 $0.10 $0
H 125 0.08 10.00
M 75 0.02
1.50 200 $11.50
Is the material mix variance favorable or unfavorable
Answer:
The material mix variance unfavorable.
Explanation:
This can be determined using the following 3 steps:
Step 1: Calculation of the total Standard Cost of Actual Mix of the 3 materials
Standard Cost of Actual Mix of material O = Units of material O used * Standard cost of material O = 210 * $0.10 = $21
Standard Cost of Actual Mix of material H = Units of material H used * Standard cost of material H = 0 * $0.08 = $0
Standard Cost of Actual Mix of material M = Units of material M used * Standard cost of material M = 185 * $0.02 = $3.79
Total Standard Cost of Actual Mix of the three materials = Standard Cost of Actual Mix of material O + Standard Cost of Actual Mix of material H + Standard Cost of Actual Mix of material M = $21 + $0 + $3.79 = $24.70
Step 2: Calculation of the total Standard Cost of Standard Mix of the 3 materials
Standard Cost of Standard Mix of material O = Standard Units of material O * Standard cost of material O = 0 * $0.10 = $0
Standard Cost of Standard Mix of material H = Standard Units of material H * Standard cost of material H = 125 * $0.08 = $10
Standard Cost of Standard Mix of material M = Standard Units of material M * Standard cost of material M = 75 * $0.02 = $1.50
Standard Cost of Standard Mix of the three materials = Standard Cost of Standard Mix of material O + Standard Cost of Standard Mix of material H + Standard Cost of Standard Mix of material M = $0 + $10 + $1.50 = $11.50
Step 3: Calculation of material mix variance
Material mix variance = Total Standard Cost of Actual Mix of the three materials - Standard Cost of Standard Mix of the three materials = $24.70 - $11.50 = $13.20
Since the Total Standard Cost of Actual Mix of the three materials is greater than Standard Cost of Standard Mix of the three materials (i.e. by $13.20), this implies that the material mix variance unfavorable.
You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it immediately after the previous owner received a semiannual interest payment. The bond rate is 6.6% per year payable semiannually. You plan to hold the bond for 7 years, selling the bond immediately after you receive the interest payment. If your desired nominal yield is 10% per year compounded semiannually, what will be your minimum selling price for the bond
Answer:
$12,341.80
Explanation:
The computation of the minimum selling price for the bond is shown below:
Semi-annual = 10% ÷ 2 = 5%
Semi-annual compounding periods = 7 × 2 = 14
Semi-annual coupon (for 10 bonds) = $10,000 × 6.6% × (1 ÷ 2) = $330
as we know that
Here We assume the selling price be S
The Present worth of the bond = PW of future cash flows
$9,500 = $330 × P/A(5%, 14) + S × P/F(5%, 14)
$9,500 = $330 × 9.898641 + S × 0.505068
$9,500 = $3,266.55 + S × 0.505068
S × 0.505068 = $6,233.45
= $12,341.80
Officials from the City of Galveston and State of Texas gathered to celebrate the start of a beach restoration project that involves dumping sand and adding antierosion structures. The first cost of the project is $30 million with annual maintenance estimated at $340,000. If the restored/expanded beaches attract visitors who will spend $6.2 million per year, what is the conventional B/C ratio at the social discount rate of 8% per year
Answer:
The conventional B/C ratio is 1.83.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Officials from the City of Galveston and State of Texas gathered to celebrate the start of a beach restoration project that involves dumping sand and adding antierosion structures. The first cost of the project is $30 million with annual maintenance estimated at $340,000. If the restored/expanded beaches attract visitors who will spend $6.2 million per year, what is the conventional B/C ratio at the social discount rate of 8% per year. Assume the State wants to recover the investment in 20 years.
Explanation of the answers is now given as follows:
From the question, we have:
First cost = $30 million, or $30,000,0000
Estimated annual maintenance cost = $340,000
Expected annual revenue = Amount to spend per year by the visitors = $6.2 million, or 6,200,000
r = social discount rate per year = 8%, or 0.08
n = number of recover the investment years = 20
Incorporating the formula for calculating the present value of an ordinary annuity, we have:
B = Present worth of annual revenue = Estimated annual revenue * ((1 - (1 / (1 + r))^n) / r) = $6,200,000 * ((1 - (1 / (1 + 0.08))^20) / 0.08) = $60,872,513.93
C = Present worth of cost = First cost + (Estimated annual maintenance cost * ((1 - (1 / (1 + r))^n) / r)) = $30,000,0000 + ($340,000 * ((1 - (1 / (1 + 0.08))^20) / 0.08)) = $33,338,170.12
B/C ratio = B / C = $60,872,513.93 / $33,338,170.12 = 1.83
Therefore, the conventional B/C ratio is 1.83.