Answer:
$420,000
Explanation:
Given the following information, Beginning ending raw materials inventory $560,000 $613,000
The raw materials used in manufacturing during the year is totaled $1,033,000
We will use the formula below to calculate raw materials purchased during the year
Raw materials purchases
= Direct materials used in production - Ending inventory
= $1,033,000 - $613,000
= $420,000
A property was purchased by an investor. The property is expected to produce $200,000 of annual net operating income in year 1; increasing $20,000 every year thereafter. The owner intends to sell the property at the end of year 5.
Assuming the bank requires a 1.25 debt coverage service ratio based on the expected first year NOI, what is the maximum monthly mortgage payment?
Answer:
$13,333.33
Explanation:
Debt service coverage ratio = Net operating income in year 1 / Annual debt service
Annual debt service = Net operating income in year 1 / Debt service coverage ratio
Annual debt service = $200,000 / 1.25
Annual debt service = $160,000
1 years = 12 months
Monthly mortgage payment = Annual debt service / 12 months
Monthly mortgage payment = $160,000 / 12
Monthly mortgage payment = $13333.33333333333
Monthly mortgage payment = $13,333.33
So, the maximum monthly mortgage payment is $13,333.33.
What is the difference between economics and geography? -,-
Answer:
Economics is a Bhadda subject aur geo Ki to pucho he mat ok bye
Gross domestic product understates the total production of final goods and services because of the omission of inflation. intermediate goods. exports. the underground economy.
Answer:
the underground economy
Explanation:
Gross domestic product is defined as the monetary value of all goods and services that a country produces within a given period.
It is estimated by using income, expenditure, and production in markets.
However GDP does not consider the underground economy.
The underground economy is made up of transactions that are considered illegal or that do not meet up to the reporting requirements of the government.
In effect these are not reported in GDP so GDP is understated.
Type the correct answer in the box. Spell all words correctly.
Identify the activities in the receiving step in the supply chain process.
In a supply chain process, the receiving step consists of taking receipt of material and _________ the inventory records
(it's not inspect or requisition**) Giving 15 points
Answer:
inspect
Explanation:
plato
Answer:
The correct answer is UPDATING
Explanation:
A lean work center is being operated with a lot size of 50 units. Assume the demand rate is 200 parts per hour. It takes three hours to circulate a container, that includes all set up, run, move, and idle time. What is the maximum inventory that will accumulate in the system
Answer: 600
Explanation:
Based on the information given in the question, the maximum inventory that will accumulate in the system will be calculated as the product of the demand and the lead time. This will be:
= Demand × Lead Time
= 200 × 3
= 600
Therefore, the maximum inventory is 600.
Evaluate the product-company and product market fit of the line extension options. Does the idea fit with the company and market
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Baby Day Care, a sole proprietorship, wants to pay as many of its obligations as reasonably possible, and be discharged of the rest. To accomplish this goal, the proprietorship should file a petition in bankruptcy under for relief through:_______
a. a liquidation.
b. a reorganization.
c. a repayment plan.
d. an adjustment plan.
Answer:
b. a reorganization.
Explanation:
Under the chapter 13, the bankruptcy should be filed and it mainly reorganization plan for the payment. It is to be done by splitting the non-secured debt across the various years also it permits the individual to retain the assets
So as per the given situation, in order to attain the goal, the proprietorship should file the petition in bankruptcy under for relief via a reorganization
Paraguay Pipes Inc. has a cost of equity of 11.1 percent, the YTM on the company's bonds is 5.7 percent, and the tax rate is 35 percent. The company's bonds sell for 93.1 percent of par. The debt has a book value of $393,000 and total assets have a book value of $947,000. If the market-to-book ratio is 2.59 times, what is the company's WACC?
Answer: 9.5978%
Explanation:
Firstly, we should note that the total book value of equity will be the difference between the total assets book value and the total debt book value which will be:
= $947,000 - $393,000
= $554,000
Then, we'll calculate the market value which will be:
= market-to-book ratio × book value
= 2.59 × $554,000
= $1,434,860
Then, the after tax cost of debt will be:
= 5.7(1 - Tax rate)
= 5.7(1 - 35%)
= 5.7(1 - 0.35)
= 5.7(0.65)
= 3.705%
Equity = $1,434,860
Debt = $393,000 × 93.1%
= $365883
Total market value = $1,800,743
WACC = Respective costs × Respective weights
= ($1,434,860/$1,800,743 × 11.1%) + ($365883/$1,800,743 × 3.705%)
= 0.08845 + 0.007528
= 0.095978
= 9.5978%
what is the major difference between money markets and capital markets: One is more domestic while the other is more international
Answer:
The major difference between money markets and capital markets is:
the time horizon of the debt instruments.
Explanation:
A money market is a global financial market for the exchange of short-term debts (or debt instruments that mature in less than or equal to one year). A capital market is also a global financial market for the exchange of long-term debt instruments (or securities that mature in more than one year). Additionally, the capital market, unlike the money market, enables the exchange of equity securities (common stocks and preferred stocks). Principally, the major difference is the time horizon provided by the two markets.
What is the present value of a constant perpetuity of 25 per year where the required rate of return is 5%
Answer:
The present value of a constant perpetuity of 25 per year where the required rate of return is 5% is:
$500
Explanation:
a) Data and Calculations:
A constant perpetuity = $1
Present value factor of a constant perpetuity for 25 per year at 5% is $1/0.002
Number of periods for the perpetuity per year = 25
Required rate of return = 5%
Rate of return per period = 5%/25 = 0.002
Therefore, the value of a constant perpetuity = $1/0.002
= $500
The $500 can be used to multiply any amount given obtain the total value of the perpetuity.
The present value of a constant perpetuity of 25 per year where the required rate of return is 5% is $500
Given the information below :
We know that a constant perpetuity(payments) = $1
Required rate of return = 5%
Rate of return per period = 5%/25 = 0.002
Number of periods for the perpetuity per year = 25
Therefore, the value of a constant perpetuity
= Payments / Rate of return per period
= $1 / 0.002
= $500
Hence, present value of a constant perpetuity of 25 per year where the required rate of return is 5% is $500
Learn more about constant perpetuity here : https://brainly.com/question/17157614
- True or False: Professional shoplifters steal primarily for the excitement.
The market price of a security is $46. Its expected rate of return is 10%. The risk-free rate is 4%, and the market risk premium is 9%. What will the market price of the security be if its beta doubles (and all other variables remain unchanged)
Answer:
The new Market price =$28.75
Explanation:
According to the Capital Asset Pricing Model CAPM, we have that
Expected return= risk free rate+(beta X market risk premium)
10=4+ beta x 9
= 10- 4 = beta x 9
beta =6 /9 =0.666
IF beta doubles with other variables constant
Expected return= risk free rate+(betaXmarket risk premium)
Beta= 0.666 x2 =1.3333
Expected return = 4+ 1.333 x 9
Expected return 4+ 12=16%
Price = Perpertual Dividend /Expected return
where Current Share price =$46
Dividend = $46 x 10%=4.6
The new Market price = Perpetual dividend/New Required return
= 4.6/16% =$28.75
So the new Market price =$28.75
if potential output declines while actual output remains unchanged, what does the Taylor rule imply that policymakers should do to the fed funds rate
Answer:
Increased
Explanation:
In the case when there is a fall in the potential output and at the same time the actual output remains the same so here the fund rate should be increased as per the taylor rule as it decrease the output that result in the output gap to fall
So as per the given situation, the fed fund rate should be increased
Hence, the same is to be increased
If the reserve requirement was 13% and a bank customer makes a deposit of $440 at the Springfield Bank, the initial result would be: Group of answer choices
Answer:
O a $382.8 increase in excess reserves and a $57.2 increase in required reserves.
Explanation:
Here is the complete question :
If the reserve requirement was 13% and a bank customer makes a deposit of $440 at the Springfield Bank, the initial result would be:
O a $57.2 increase in excess reserves and a $382.8 increase in required reserves.
O a $382.8 increase in excess reserves and a $57.2 increase in required reserves.
O a $57.2 increase in required reserves and a $2,944.6 increase in excess reserves.
O a $440 increase in required reserves and a $2.944.6 increase in excess reserves.
Reserves is the total amount of a bank's deposit that is not given out as loans
There are two types of reserves
Required reserveExcess reserveRequired reserves is the percentage of deposits required of banks to keep as reserves by the central bank
Required reserves = reserve requirement x deposits
0.13 x $440 = $57.20
Excess reserves is the difference between reserves and required reserves
$440 - $57.20 = $382.80
Given the following information, calculate the effective gross income: property: 4 office units, contract rents per unit: $2,750 per month; vacancy and collection losses: 18%; operating expenses: $41,000; capital expenditures: 11%.
Answer:
the effective gross income is $117,480
Explanation:
The computation of the effective gross income is shown below:
= Gross income - vacancy income
= ($2,750 × 4 units × $12) - ($2,750 × 12 × 4 × 11%)
= $132,000 - $14,520
= $117,480
hence, the effective gross income is $117,480
The same is to be considered and relevant
Which of the following items is an implicit transaction? Recognizing a gain on the sale of equipment Recording payment of monthly interest on loan Recognizing impairment on an intangible asset Recognizing deferred revenue through delivery of goods
Answer:
The correct answer is the second option: Recording payment of monthly interest on loan.
Explanation:
To begin with, the term known as "implicit transaction" in the field of business management and accounting refers specifically to the situation where the "transaction" was not intended in the first place as a directly situation to get, therefore that it is said to be an opportunity cost that happens when the company uses another resources in order to do another activities. For example the situation where the monthly interest on the loan is paid back to the company.
A company has two departments, Y and Z that incur wage expenses. An analysis of the total wage expense of $43,000 indicates that Dept. Y had a direct wage expense of $6,800 and Dept. Z had a direct wage expense of $10,700. The remaining expenses are indirect and analysis indicates they should be allocated evenly between the two departments. Departmental wage expenses for Dept. Y and Dept. Z, respectively, are:
Answer:
$19,550 and $10,250
Explanation:
Calculation to determine what Departmental wage expenses for Dept. Y and Dept. Z, respectively, are:
First step is to calculate the Indirect wages
Indirect wages = [43,000 - (6800+10700)]/2
Indirect wages= 43,000-17500/2
Indirect wages=24,500/2
Indirect wages = 12,750
Now let calculate Departmental wage expenses for Dept. Y and Dept. Z,
Departmental wage expenses for Dept. Y
=6800 + 12,750
Departmental wage expenses for Dept. Y = $19,550
Departmental wage expenses for Dept. Z=10,700 + 12,750
Departmental wage expenses for Dept. Z= 23450
Therefore Departmental wage expenses for Dept. Y and Dept. Z, respectively, are:$19,550 and $10,250
All other things being equal, consumers tend to prefer dollar savings over percentage savings. larger retail outlets over smaller outlets. external reference prices over internal reference prices. percentage savings over dollar savings. smaller retail outlets over larger outlets.
Answer: larger retail outlets over smaller outlets.
Explanation:
A retail outlet can be refered to as a store or a shop whereby buyers can visit in order to make purchases.
It should be noted that consumers will prefer the larger retail outlets over the smaller outlets. A reason attributed to this is that there are varieties of products that can be chosen by the consumers. Also, the consumers can enjoy discount when they buy in large quantities.
At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $366,000 and Total Liabilities of $28,300 and Total Paid-in capital of $113,200. During the year, the company reported total revenues of $435,000 and expenses of $336,500. Also, dividends during the year totaled $86,000. Assuming no other changes to Retained earnings, the balance in the Retained earnings account at the end of the year would be:
Answer:
I don't really know
Explanation:
I have absolutely no clue. good luck.
Poole Co. acquired 100% of Mullen Inc. on January 3, 2021. During 2021, Poole sold goods to Mullen for $2,500,000 that cost Poole $1,850,000. Mullen still owned 30% of the goods at the end of the year. Cost of goods sold was $11,200,000 for Poole and $6,600,000 for Mullen. What was consolidated cost of goods sold?
a) $15,105,000.
b) $15,300,000.
c) $15,495,000.
d) $17,800,000.
Answer:
c) $15,495,000.
Explanation:
Calculation to determine the consolidated cost of goods sold
First step is to calculate the Intra-Entity Gross Profit Deferred
Intra-Entity Gross Profit Deferred =($2,500,000 − $1,850,000)*30%
Intra-Entity Gross Profit Deferred =$650,000 × (30%)
Intra-Entity Gross Profit Deferred =$195,000
Now let calculate the Consolidated COGS
Using this formula
Consolidated COGS = Parent's COGS+Subsidiary's COGS -COGS in Intra-Entity Transfer+Intra-Entity Gross Profit Deferred
Let plug in the formula
Consolidated COGS=$11,200,000+ $6,600,000− $2,500,000+ $195,000
Consolidated COGS= $15,495,000
Therefore the consolidated cost of goods sold is
$15,495,000
In each dropdown next to the following terms, select the identifying letter of its best description. Incurs costs without directly yielding revenues. Provides information used to evaluate the performance of a department. Costs incurred for the joint benefit of more than one department. Costs that a manager has the ability to affect. Holds manager responsible for revenues, costs and investments. Provides information to evaluate the performance of a department manager.
Answer:
Cost center ⇒ Incurs costs without directly yielding revenues.
Investment center ⇒ Holds manager responsible for revenues, costs and investments.
Departmental accounting system ⇒ Provides information used to evaluate the performance of a department.
Indirect expenses ⇒ Costs incurred for the joint benefit of more than one department.
Controllable Cost ⇒ Costs that a manager has the ability to affect.
Responsibility accounting system ⇒ Provides information to evaluate the performance of a department manager.
"Stock in Daenerys Industries has a beta of 0.73. The market risk premium is 10 percent, and T-bills are currently yielding 5 percent. The company's most recent dividend was $1.6 per share, and dividends are expected to grow at a 5.5 percent annual rate indefinitely. If the stock sells for $35 per share, what is your best estimate of the company's cost of equity? Use the average from CAPM and Dividend Growth Model calculations."
Answer:
CAPM = 12.30%
Dividend Growth Model= 10.32%
Explanation:
According to the capital asset price model: Expected rate of return = risk free + beta x (market premium)
5% + (0.73 x 10%) = 12.30%
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
$35 = $1.6 x (1.055) / (r - 0.055)
r = 1.688 / 35 + 0.055 = 0.1032 = 10.32%
In the article, “Visual Business Intelligence”, Stephen Few claims that visualization analysis and presentation tools are important to a business decision-maker since they _____.
a.
help justify unsound decisions to upper-level management with colorful charts and graphs
b.
help him or her to see through the errors in data collection before making an erroneous decision
c.
assist in viewing the data in even finer detail so that he or she can make the most informed decision possible
d.
allow him or her to view data as an easy to understand image that might be recognized as a pattern and solved without costly data analysis
Answer:
Explanation:
C
1. Why are fewer customers entering local bank branches?(Select all that apply)
Mobile phone apps
Online banking
Due to the sophistication of ATM machines
Limited branch hours
2. What type of business are banks relying on to maintain the “brick-and-mortar” branches.
A. New accounts and loans
B. Account transfers
C. Cash withdrawals
D. Check deposits
3. What is the primary reason a consumer needs to walk into a bank branch?
A. Withdraw funds
B. Make a deposit
C. Open a new account
D. Transfer funds
Answer:
2.a. new account and loans, 3. b. make a deposit
Understand and explain the process of idea generation and validation
Answer:
Idea generation is the creative process or procedure that a company uses in order to figure out solutions to any number of difficult challenges. It involves coming up with many ideas in a group discussion, selecting the best idea or ideas, working to create a plan to implement the idea, and then actually taking that idea and putting it into practice. The idea can be tangible, something you can touch or see, or intangible, something symbolic or cultural.
Idea validation is the process of testing and validating your idea prior to launching your business name, tagline, product, service or website. This is like the research and development process big companies use to test product ideas before they’re released to the general public.
Idea validation can involve anything from information-gathering interviews to special landing pages on the web. The entire purpose is to expose the idea to your target audience before you build and release the final product.
g If a stock consistently goes down (up) by 1.31% when the market portfolio goes down (up) by 1.05%, then its beta equals:
Answer:
1.25
Explanation:
The stock consistently goes down by 1.31%
The market portfolio goes up by 1.05%
The beta can be calculated as follows
1.31/1.05
= 1.25
Hence the beta is 1.25
Department stores have increasingly used designer boutiques to highlight specific designers to small market segments. This strategy most closely resembles that of which retail institution
Answer:
Specialty Store
Explanation:
A specialty store is a store where it keeps the high brand, style or models having the narrow category of goods and services. The products like furniture, sporting goods, bookstores are categorized as the speciality stores.
Since in the given situaton, it is mentioned that the stores increase the usage of the designer boutique for highlighting the particular designers for the small market so this represent the speciality store of that retail institution
Tim has a knee replacement. He has applied for a loan for this surgery; the loan has an annual interest rate of 9 percent. The artificial knee can function for 10 years and depreciates at a constant rate every year until the time of replacement. Fees for knee replacement surgery are expected to grow at 10 percent annually. What is the cost of this capital
When a company is operating at capacity and they lose revenue from regular customers by accepting a special order, the loss of revenue is an example of: An unavoidable cost A revenue cost An opportunity cost A sunk cost
Answer:
An opportunity cost
Explanation:
The opportunity cost is the cost where the loss occurs from the benefit could have been enjoyed in the case when the best alternative choice was selected Since in the question it is mentioned that the company operating at a capacity and than lose revenue from the regular customers so it is an opportunity cost
Suppose an investment offers to triple your money in 24 months (don't believe it). What rate of return per quarter are you being offered
Answer:
30.77%
Explanation:
Assume investment = $1
Assume mount after 24 months = $5
Number of quarters in 24 months = 24/4 = 6
Future value = P*(1+r)^n; Where P is payment, r is interest rate per period, n is number of periods
5000 = 1*(1+i)^6
1*(1+i) = 5^(1/6)
1+i = 1.30766048601
i = 1.30766048601 - 1
i = 0.30766048601
i = 30.77%
So, the rate of return per quarter being offered is 30.77%