Answer:
The labor rate variance for the month = $1890
Explanation:
Given values:
Standard labor hour per unit = 3.3 hours
Standard labor rate = $16.15 per hour
Actual hours worked = 6,300
Actual total labor cost = $103,635
Actual output = 2,000 units
Now, we calculate the labor rate variance with the help of given information. Below is the calculation of Labor rate variance.
Labor rate variance = ( Actual labor cost) – (Standard rate × Actual hours)
= 103635 – (16.15 × 6,300)
= $1890
Street & Smith publishes the same baseball magazine with exactly the same stories but with 16 different covers to appeal to baseball fans in 16 different regions of the U.S. What is the market segmentation strategy?
Answer:
The answer is 'One product and multiple market segments'
Explanation:
The market segmentation strategy here is One product and multiple market segments.
The product is one product(the magazine story) and this one product (same story) covers 16 different regions of the U.S i.e the same product is selling in 17 market segments.
The advantage of this strategy is that it helps to avoid the additional costs of developing and producing additional versions of the product.
Match the following terms with their definitions.
1. Internal control
2. Control procedures
3. Firewalls
4. Encryption
5. Environment
6. Information system
7. Separation of duties
8. Collusion
9. Documents
10. Audits
11. Operational efficiency
12. Risk assessment
13. Sarbanes-Oxley Act
a. Two or more people working together to overcome internal controls.
b. Part of internal control that ensures resources are not wasted.
c. Requires companies to review internal control and take responsibility for the accuracy and completeness of their financial reports.
d. Should be prenumbered to prevent theft and inefficiency
e. Limits access to a local network.
f. Example: The person who opens the bank statement should not also be the person who is reconciling cash.
g. Identification of uncertainties that may arise due to a company's products, services or operations.
h. Examination of a company's financial statements and accounting system by a trained accounting professional.
i. Without a sufficient one of these, information cannot properly be gathered and summarized.
j. The organizational plan and all related measures that safeguard assets, encourage employees to follow company policies, promote operational efficiency, and ensure accurate and reliable accounting data.
k. Component of internal control that helps ensure business goals are achieved.
l. Rearranges data by a mathematical process-
m. To establish an effective one, a company's CEO and top managers must behave honorably to set a good example for employees.
Answer:
1. Internal control - The organizational plan and all related measures that safeguard assets, encourage employees to follow company policies, promote operational efficiency, and ensure accurate and reliable accounting data. (J)
2. Control procedures - Component of internal control that helps ensure business goals are achieved. (K)
3. Firewalls - Limits access to a local network. (E)
4. Encryption - Rearranges data by a mathematical process. (I)
5. Environment - To establish one a company, CEO and top managers must behave honorably to set a good example for employees. (M)
6. Information system - Without a sufficient one of these information cannot properly be gathered and summarized. (I)
7. Separation of duties - Example: The person who opens the bank statement should not also be the person who is reconciling cash. (F)
8. Collusion - Two or more people working together to overcome internal controls. (A)
9. Documents - Should be pre-numbered to prevent theft and inefficiency (D)
10. Audits - Examination of a company's financial statements and accounting system by a trained accounting professional. (H)
11. Operational efficiency - Part of internal control that ensures resources are not wasted (B)
12. Risk assessment - Identification of uncertainties that may arise due to a company's products services or operations . (G)
13. Sarbanes-Oxley Act - Requires companies to review internal control and take responsibility for the accuracy and completeness of their financial reports. (C)
If the interest rate in the United Kingdom is 8 percent, the interest rate in the United States is 10 percent, the spot exchange rate is $1.75/£1, and interest rate parity holds, what must be the one-year forward exchange rate?
Answer:
The answer is $1.78 / £1
Explanation:
Solution
Given that
Interest rate of United kingdom = 8%
Interest rate of United States =10%
Spot exchange rate =$1.75£1
The next step is to find the one year forward rate of exchange
Thus
Forward Rate = S₀ * [ ( 1 + Rus) / ( 1 + RE) ]
=$ 1.75 * ( ( 1 + 10%) / ( 1 + 8%) )
$1.78
Therefore, the forward exchange rate is $ 1.78 / £1
A registered representative wishes to sell a customer a limited partnership unit that is offered through his friend - the general partner in the venture. Under FINRA rules, this action is:
Answer:
only permitted if the member firm is notified in writing and gives prior written approval to the transaction
Explanation:
Under FINRA rules, registered representatives cannot effect private securities transactions.
But FINRA does allow an exemption from this prohibition on the condition that the member firm is notified in writing and gives prior written approval to the transaction
Question 16 (3 points) The 2011 and 2012 Balance Sheets for Jacob, Inc. contained the following entries: 12/31/201112/31/2012 Accounts receivable$206$116 Inventories$590$603 Net fixed assets$102$307 Accounts payable$329$333 Jacob had materials purchases in 2011 of $1,689 and materials purchases in 2012 of $2,770 . What did Jacob record as Cost of Goods Sold (COGS) on its 2012 income statement
Answer:
$2,857
Explanation:
Cost of goods sold (COGS) refers to the relevant cost incurred to acquire or produce the products being sold a company during a particular period.
The formula for calculating the COGS is as follows:
COGS = Beginning inventories + Purchases - Ending inventories
From the question, we have the following for 2012:
Beginning stock = $590
Purchases = $2,770
Ending inventory = 503
Therefore, we have:
COGS for 2012 = $590 + $2,770 - $503 = $2,857
Therefore, Jacob should record $2,857 as Cost of Goods Sold (COGS) on its 2012 income statement.
Pettygrove Company had 1,700,000 shares of $10 par value common stock outstanding. The amount of additional paid-in capital is $8,500,000, and Retained Earnings is $2,550,000. The company issues a 2-for-1 stock split. The market price of the stock is $11. What is the balance in the Common Stock account after this issuance
Answer:
$17,000,000
Explanation:
Balance in common stock after the issuance = $1700,000 x $10
Balance in common stock after the issuance = $17,000,000
You can't find difference between balance of common stock, additional paid-in capital, and retained earnings when a company issues a stock split But there would be surely a change in par value and number of outstanding shares. Market value of share will either increase or decrease.
lord penrose a financial analyst for the equitable life insurance society has just been asked to evaluate two mutually exclusive project schemes: one of them offering a fixed guarantee annuity rate. (GAR) and another one offering the current annuity rate. HE must select one method of analysis and provide an answer based solely on that investment criterion. Which investment criterion should he use in this situation
Answer:
The Equitable Life Assurance Society (Equitable Life), founded in 1762, is a life insurance ... Lord Penrose's 2004 Equitable Life Inquiry found that the company had made ... Both types of bonus were allocated at the discretion of the directors in ... between a fixed Guaranteed Annuity Rate (GAR) or the Current Annuity Rate ...
Explanation:
Morrow Company uses the high-low method to estimate the cost function. The information for 2020 is provided below: Machine-hours Labor Costs Highest observation of cost driver 900 $36,000 Lowest observation of cost driver 100 $14,000 What is the estimated total cost when 450 machine-hours are used
Answer:
Total cost at 450 machine hours = $23625
Explanation:
The high-low method is used to calculate the variable cost per unit element in a mixed cost. A mixed cost is a cost which is made up of both the fixed and the variable cost. The formula for variable cost per unit is,
Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity units - Lowest activity units)
Variable cost per unit = (36000 - 14000) / (900 - 100)
Variable cost per unit = $27.5
Thus, the fixed element is = 36000 - (27.5 * 900)
Fixed cost element = $11250
Thus, the cost equation is,
Total cost = 27.5x + 11250
Where x is the number of machine hours.
Total cost at 450 machine hours = 27.5 * 450 + 11250
Total cost at 450 machine hours = $23625
Expenses for a Pizza restaurant include raw material for pizza at $4.00 per slice, $116.00 as monthly rental and $45.00 monthly as insurance. Lost sale expense is considered to be $4.00 per unhappy customer. Leftover Pizza can be sold for $3. The restaurant is open 25 days in a month. Today the restaurant prepared 200.00 pizza slices and sells them for $10.00/slice. There was a party at a nearby office so the demand for pizza went up to 212.00 slices. How much profit did the restaurant earn today
Answer:
The restaurant earned a profit of $1145.56 which is approximately $1146
Explanation:
the formula is given as:
Q x (sale price – material cost) – ( rental + insurance)/day - loss
Q = 200
Sale price = $10
Material cost = $4
rental = $116
insurance = $45
lost sale expense = $4
day = 25
increased demand = 212
= 200(10 - 4) - (116 + 45)/25 - (212 - 200)4
= 200(6) - 6.44 - 48
= 1200 - 6.44 - 48
= $1145.56
This is approximately $1146
In a reorder point problem where both demand and lead time are variable, demand averages 200 units per day with a daily variance of 64, and lead time averages 6 days with a standard deviation of 1 day. What should the reorder point be for a 95% service level?
Answer:
~ 1561.235
Explanation:
Given :
[tex]Z=1.645[/tex]
[tex]d = 200\ \\variance =64[/tex]
Standard deviation can be determined by the [tex]\sqrt{variance }[/tex]
Standard deviation=SD
=[tex]\sqrt{64}\ =\ 8[/tex]
[tex]LT = 6\[/tex]
σ = 8
Now using the formula
[tex]R\ =\ d \ *\ LT\ +Z\ \sqrt{LT^{2}\ +SD^{2} \ +\ d\ \sigma\ ^{2} } \\\\Putting\ the\ respective\ value\ we\ get \\R=200 * 6 + 1.645\sqrt{6 * 8^2 + 200 *1^2}[/tex]
R=1561.235
~ 1561.235
Waterway’s Market recorded the following events involving a recent purchase of merchandise:
Received goods for $75000, terms 1/10, n/30.
Returned $1100 of the shipment for credit.
Paid $400 freight on the shipment.
Paid the invoice within the discount period.
As a result of these events, the company’s inventory increased by:_______.
Answer:
$73,561
Explanation:
The computation of inventory increased is shown below:-
Inventory increase = (Received goods - Returned goods) × (1 - 0.01) + Freight charges
= ($75,000 - $1,100) × 0.99 + $400
= $73,900 × 0.99 + $400
= $73,161 + $400
= $73,561
Therefore for computing the increased inventory we have simply applied the above formula.
Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $176,000, has an estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $35,000.
What is its approximate internal rate of return?
Answer:
i think the answer218
Explanation:
if you add 176.000+35.000=211+7=218 you get the right answer
The approximate internal rate of return is 176.000+35.000=211+7=218. From calculating the cost and salvage value we get the internal rate of return.
What is internal rate of return?In financial analysis, the internal rate of return (IRR) is a statistic used to calculate the profitability of possible investments. IRR is a discount rate that, in a discounted cash flow analysis, reduces all cash flows' net present values (NPV) to zero. The same formula is used for NPV calculations and IRR calculations.
A useful tool for comparing investments is the internal rate of return (IRR), which is the interest rate at which the sum of all cash flows equals zero. If we substitute 13.92% for the 8% in the aforementioned case, NPV will be zero, and that represents your IRR. IRR is therefore defined as the discount rate at which a project's NPV equals zero.
IRR can be used to rank a variety of potential investments or projects on a pretty even basis because it is consistent for investments of all types. Generally speaking, the investment with the highest IRR would be regarded as the best when comparing options with other similar attributes.
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Xochi is a corporate PR consultant. She has many clients and would like to find a more efficient way to access and send information than by e-mail alone. What tool should Xochi use to search and manage this informatio
Answer:
Enterprise social media network.
Explanation:
Enterprise social media network is the use of social network to link people who share common interest. Enterprise social network could be internal to a business such as Yammer, communicator which are meant to communicate among employees or external to a business such as use of Google+ or other social media network platforms which connects a business to it's customers.
The advantage of Enterprise social media networks is that they can be searched such that people can follow, tag or view activity. Here, users can check and send messages conveniently and efficiently to people compare to email alone.
With regards to the above scenario, Xochi should use Enterprise social media network tool to search and manage information.
Remsco has taxable income of $61,000 and a charitable contribution limit modified taxable income of $72,500. Its charitable contributions for the year were $7,540. What is Remsco's current-year charitable contribution deduction and contribution carryover
Answer:
Remsco's current-year charitable contribution deduction is $7,250
Contribution carryover is $ 290
Explanation:
Taxable income = $61,000
Charitable contribution limit modified taxable income = $72,500
Charitable contributions for the year = $7,540
Since, charitable contribution deduction is limited to 10% of charitable contribution limit modified taxable income ,
Remsco's current-year charitable contribution deduction = $72,500 x 10%
= $7,250
Therefore, contribution carryover = $7,540 - $7,250 = $ 290
Dolan Company's accounting records reflect the following inventories:
Dec.31, 2013 Dec.31, 2012
Raw materials inventory $310,000 $260,000
Work in process inventory 300,000 160,000
Finished goods inventory 190,000 150,000
During 2013, $600,000 of raw materials were purchased, direct labor costs amounted to $500,000, and manufacturing overhead incurred was $480,000.
Dolan Company's total manufacturing costs incurred in 2013 amounted to________.
Answer:
cost of goods manufactured= $1,770,000
Explanation:
Giving the following information:
Dec.31, 2013 Dec.31, 2012
Raw materials inventory $310,000 $260,000
Work in process inventory 300,000 160,000
During 2013, $600,000 of raw materials were purchased, direct labor costs amounted to $500,000, and manufacturing overhead incurred was $480,000.
To calculate the cost of goods manufactured, we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials used + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 300,000 + (310,000 + 600,000 - 260,000) + 500,000 + 480,000 - 160,000
cost of goods manufactured= $1,770,000
A new company plans to lose money for the first 5 years of its existence. They think they will lose $4,000,000 in year 1 and the losses are expected to decrease by $150,000 per year for the next three years. At 8% MARR what is the Annual Worth of their losses
Answer:
The answer is $3,789.363
Explanation:
Solution
Given that:
For the first 5 years of functioning, a new company plans to lose money.
In the first year they think they will lose money of the amount = $4,000,000
The expected decrease (losses) is =$150,000 (next three years)
MARR = 8%
Now
We find the annual worth losses which is given below:
Annual worth = $4,000,000 - $150,000(A/G, 8%, 4)
(A/G,i, N) = 1/i - N/(1 +i)^N -1
= 1/0.08 - 4/(1 + 0.08)^4 -1
= 12.5 -4/1.360488961 -1
=12.5 - 11.09606977
=1.40425
Thus,
AW = $4,000,000 - $150,000 ( 1.40425)
AW = $4,000,000 -$210637.5
AW = $3,789. 363
Therefore, the annual worth pf their losses is $3,789.363
Jarrett Baker is the founder of an enterprise software company located in Chevy Chase, Maryland. By looking at the income statements for Jarrett’s business over the past 3 years, you see that its working capital has declined from $42,400 in 2012 to $17,900 in 2013 to $3,100 in 2014. If this trend continues, in what ways could it jeopardize the future of Jarrett’s business?
Answer and Explanation:
In this particular case, the working capital continues to fall and hits a value below zero otherwise the business would have a negative cash flow.
Company's assets are below its liabilities which including its current working capital would not be able to manage its debts. The Company would be faced with extreme difficulty in paying back its creditors.
If, as in the case at hand , the company continues to operate in low working capital and work capital declines over time, the company can encounter extremely serious financial problems.
Following Effects may include declining revenue from purchases, non-inventory management, or issues with the specific total accounts receivable.
There is often litter along highways but rarely in people's yards. Which of the following statements help explain this observation?
a. Littering on the highway generates a positive externality.
b. The private cost of littering on the highway is low.
c. The private cost of littering on your own yard exceeds the social cost.
Answer:
The answer is A and C
Explanation:
Solution
Social costs refers to the total cost of an activity incurred by society.
Private costs are direct costs incurred by an individual
Frequently there is liter along the high ways but rarely in people's yards because the social cost of littering is more than private cost. since the society must bear the negative externality, the social cost is more and the private cost is less.
The private cost is higher when one liters on his own yard as the cost is only borne or carried by the owner and not the society.
Consider a lake found in the town of Center Barnstead, and then answer the questions that follow.
The town has a hiking lodge whose visitors use the lake for recreation. The town also has a fish cannery that dumps industrial waste into the lake. This pollutes the lake and makes it a less desirable vacation destination. That is, the fish cannery's waste decreases the hiking lodge's economic profit.
Suppose that the chemical plant could use a different production method that involves recycling water. This would reduce the pollution in the lake to levels safe for recreation, and the hiking lodge would no longer be affected. If the chemical plant uses the recycling method, then the chemical plant's economic profit is $1,400 per week, and the hiking lodge's economic profit is $2,700 per week. If the chemical plant does not use the recycling
method, then the chemical plant's economic profit is $2,200 per week, and the hiking lodge's economic profit is $1,500 per week. These figures are summarized in the following table.
Complete the following table by computing the total profit (the chemical plant's economic profit and the hiking lodge's economic profit combined) with and without recycling.
Action Chemical Plant Hiking Lodge Total
No recycling $2200 $1500 ______
Recycling $1400 $2700 ______
Total economic profit is highest when the recycling production method is:________
Answer:
a. Total profit without recycling is $3,700, while Total profit with recycling is $41,000.
b. Total economic profit is highest when the recycling production method is: implemented or utilized.
Explanation:
a. Complete the following table by computing the total profit (the chemical plant's economic profit and the hiking lodge's economic profit combined) with and without recycling.
These can be computed by adding the profit under the two scenario as follows:
Total profit without recycling = Chemical plant's economic profit without recycling + Hiking lodge's economic profit without recycling = $2,200 + $1,500 = $3,700
Total profit with recycling = Chemical plant's economic profit with recycling + Hiking lodge's economic profit with recycling = $1,400 + $2,700 = $4,100
The table can therefore be reproduced as follows:
Action Chemical Plant Hiking Lodge Total
No recycling $2,200 $1,500 $3,700
Recycling $1,400 $2,700 $4,100
b. Total economic profit is highest when the recycling production method is:________
From part a. above, total economic profit is highest when the recycling production method is: implemented or utilized.
The reason is that total profit with recycling of $4,100 is greater than total profit without recycling of $3,700.
Based on the table, the Center Barnstead Town receives more economic benefit when the Fish Cannery recycles the industrial waste.
Though, Cannery's revenue drops by $800 ($2,200 - $1,400), the Hiking Lodge's revenue increases by $1,200 ($2,700 - $1,500). These results cause the net total revenue for the town to increase by $400 ($1,200 - $800) plus the cleaner ecosystem.
Data and Calculations:
Action Chemical Plant Hiking Lodge Total
No recycling $2,200 $1,500 $3,700 ($2,200 + $1,500)
Recycling $1,400 $2,700 $4,100 ($1,400 + $2,700)
Total increase in Revenue with recycling = $400 ($4,100 - $3,700)
Thus, it is in the best economic interest of the town to ensure that the Cannery recycles the waste.
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Lynn, a company owner, looks at her financial statements. She wants to know how much the cash balance contributed to total assets on the balance sheet. What would you suggest
Answer:
conduct a vertical financial analysis using a total from the balance sheet
Explanation:
Based on what exactly Lynn wants, the best suggestion for her in this scenario would be to conduct a vertical financial analysis using a total from the balance sheet. This is a method of financial statement analysis in which each line item is listed as a percentage of a base figure within the statement. Doing so will give her the percentage that each asset contributed to the total balance sheet.
How can computers be used to revise business messages?
Answer:
Please refer to the below for answers.
Explanation:
Computers can be used to revise business messages in the following ways;
•Style checker. This software also assist in revising business messages through identifying errors in writtings and then outlining options of how one would like to correct them.
•Commenting. When writting business messages, computers(commenting) can also be used to add comments or notes or provide additional information hence important in revising messages.
•Spell checker. Some softwares are installed in computers that assist to check spellings for correctness. The software compare typed words with thousands of correctly spelt words and then determine the correct spelling using algorithm.
•Thesaurus. When writting business messages, computer can help writers find the best words to express ideas or find word(s) that may be aptly applied. This is done through the use of Thesaurus; which is a focal point for finding synonyms and antonyms of words.
•Grammar checker. This is also a software installed in computers that could help revise business messages for grammar correctness in a sentence. It helps in finding grammatical errors and correct all types of English grammar and spelling mistakes. It basically proof read.
•Revision tracking. Computers assist in revising business messages through revision tracking. One can make changes to a file(delete, update) in a computer and same can be tracked through revision tracking. It refer to changes made in a document and then the version number of the document is updated.
A company pays its employees $4,250 each Friday, which amounts to $850 per day for the five-day workweek that begins on Monday. If the monthly accounting period ends on Thursday and the employees worked through Thursday, the amount of salaries earned but unpaid at the end of the accounting period is:
Answer:
$3,400
Explanation:
Out of five day workweek, accounting period ends on Thursday which indicates that employees work only for 4 days. Therefore, salaries are earned only for 4 working days and unpaid at the end of the accounting period
Salaries earned but unpaid= 4 working days * $850 per day = $3,400
Hence, salaries earned but unpaid at the end of the account period is $3,400
Pick a well-known business organization that has received recent press coverage and that provides its annual reports at its Web site. From the information in the articles and annual reports, answer these questions: 1. What is(are) the main industry(ies) in which the company competes ?
Explanation:
The commercial company chosen is Amazon.com Inc, this is a multinational that operates in the areas of artificial intelligence, electronic commerce and computing. Amazon was founded in 1994 by Jeff Bezos, with the main objective of being a company that sells books on the internet, at that time the idea did not seem so promising, because the internet was little used worldwide, but Bezos saw there a opportunity and called itself the first virtual book store in the world, and began to be noted for the strategy of offering aggressive discounts, which made the company gain name and popularity.
The success strategy used by Bezos was to offer the customer an easy shopping service, focusing on their needs and offering a huge amount of titles available to the customer. Bezos' innovation strategy has made Amazon a pioneer in setting market standards for the entire internet.
The Morris Corporation has $350,000 of debt outstanding, and it pays an interest rate of 8% annually. Morris's annual sales are $1.75 million, its average tax rate is 30%, and its net profit margin on sales is 8%. If the company does not maintain a TIE ratio of at least 3 to 1, its bank will refuse to renew the loan and bankruptcy will result. What is Morris's TIE ratio? Do not round intermediate calculations. Round your answer to two decimal places.
Answer:
8.14 times
Explanation:
The computation of the Time interest earned ratio is shown below:
As we know that
Times interest earned ratio = (Earnings before interest and taxes) ÷ (Interest expense)
where,
Earnings before interest and taxes = Income before income tax for the year + Interest expense
But before tha, we need to do the following calculations
The interest amount is
= $350,000 × 0.08
= $28,000
The net profit is
= $1,750,000 × 8%
= $140,000
The EBIT is
= Profit before tax + interest expense
= $140,000 ÷ (1 - 0.30) + $28,000
= $200,000 + $28,000
= $228,000
And, the interest expense is $28,000
So, the TIE ratio is
= $228,000 ÷ $28,000
= 8.14 times
All projects are unique:________.
Select one:
A. Therefore all project management circumstances are equally unique.
B. So knowledge should not be transferred to avoid bias in future projects.
C. So knowledge cannot be transferred.
D. But they may have several common points.
Answer:
D. But they may have several common points
Explanation:
Although all projects are unique, they still share similar similarities. So knowledge can be transferred.
The company has an opportunity to sell 40,000 additional units at $12 per unit. The additional sales would not affect its current expected sales. Direct materials and labor costs per unit would be the same for the additional units as they are for the regular units. However, the additional volume would create the following incremental costs: (1) total overhead would increase by 16% and (2) administrative expenses would increase by $172,000.
Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $13 per unit.
Answer:
$1,576,000
Explanation:
The computation of the combined total net income is shown below:
Particulars Normal volume Additional volume Combined total
Sales $6,000,000 $480,000 $6,480,000
(40,000 × $12)
Less: Costs and expenses
Direct material $800,000 $80,000 $880,000
($800,000 ÷ 400,000 × 40,000)
Direct labour $1,600,000 $160,000 $1,760,000
($1,600,000 ÷ 400,000 × 40,000)
Overhead $400,000 $64,000 $464,000
($400,000 × 16%)
Selling expenses $600,000 $0 $600,000
Administrative
expense $1,028,000 $172,000 $1,200,000
Total costs
and expenses $4,428,000 $476,000 $4,904,000
Incremental
income
(loss) from
new busines $1,572,000 $4,000 $1,576,000
We assume reduced price of $12 per unit instead of $13 per unit
John and Mary Rich invested $15,000 in a savings account paying 5.25% interest at the time their son, Mike, was born. The money is to be used by Mike for his college education. On his 18th birthday, Mike withdraws the money from his savings account. How much did Mike withdraw from his account?
Answer:
The amount that Mike withdraws from his account is $37678.11265
Explanation:
This question requires to calculate the future value of the amount invested at a rate of 5.25% for 18 years. We will simply use the formula for future value.
The formula for future value is,
FV = Present Value * (1+r)^t
Where,
r is the interest rate t is the time period Here the time period is in years and is 18 years or t = 18FV = 15000 * (1+0.0525)^18
FV = $37678.11265
PLEASE HELP urgent The division is evaluating a project requiring a capital cost of $254,000. The project has an estimated life of four years and no salvage value. The estimated net income and net cash flow from the project are as follows: look at screenshot* The company's minimum desired rate of return is 12%. The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is .893, .797, .712, and .636, respectively. 1. Determine the average rate of return on investment 2. Determine the Net Present Value
Answer:
1. Average rate of return on investment = 12.11%
2. Net Present Value = – $14,845.09
Explanation:
1. Determine the average rate of return on investment
Average rate of return on investment is the total net incomes from an investment divided the estimated life of the investment, and this is then divided by the cost of acquisition of the investment. This can be calculated for this question as follows:
Average income = Total net income / Estimated life = 123,000 / 4 = $30,750
Average rate of return on investment = Average income / Acquisition cost = $30,750 / $254,000 = 0.1211, or 12.11%
2. Determine the Net Present Value
Net present value is the difference between the present value of the acquisition of an investment and sum of the present values of all the net flows from the investment over its useful life.
Note: See the attached excel file to see how the net present value (NPV) is calculated.
Net Present Value = – $14,845.09
Conclusion
Since the Net Present Value is negative, it therefore implies the project is not a good investment.
1. A piece of newly purchased industrial equipment costs $1,240,000 and is classified as seven-year property under MACRS. Calculate the annual depreciation allowances and end-of-the-year book values for this equipment.
Answer:
Solution for the question is given below
Explanation:
Year OpeningValue MACRS Depreciation Closing Book Value
1. 1,240,000 0.1429 177,196 1,062,804
2. 1,062,804 0.2449 260,280.69 802,523.30
3. 802,523.30 0.1749 140,361.32 662,161.97
4. 662,161.97 0.1249 82,704.03 579,457.93
5. 579,457.93 0.0893 51,745.59 527,712.33
6. 527,712.33 0.0892 47,071.94 480,640.40
7. 480,640.40 0.0893 42,921.18 437,719.21
Under the First Amendment, commercial speech is:
a. subject to intermediate scrutiny unlike political speech.
b. completely suppressed regardless of it being misleading or truthful.
c. subject to strict scrutiny just like political speech.
d. completely unregulated unless it is put in writing.
Answer:
The correct answer is the option A: subject to intermediate scrutiny unlike political speech.
Explanation:
On the one hand, the First Amendment to the United States Constitution is the law that basically protects the rights of the people to have a free speech and moreover, establishes that the government can not intervene in an establishment of religion and prohibits the free exercise of religion.
On the other hand, the Commercial Speech under the First Amendment is seen as a particular case of speech due to the fact that this one can be harmful for the people and therefore can be fraudulent to them and in order to prevent that from happening the First Amendment does not protect so much the commercial speech and this last one is far more regulate it by the government than political speech.