Answer:
E.T. the Extraterrestrial
Adjustment for inflation in 1997
Value of E.T. box office receipts = $723,681,284.11 ($435,110,554/96.5 x 160.5)
Explanation:
To adjust a 1982 receipts for inflation in 1997, the 1982 receipts is divided by the 1982 price index and multiplied by the 1997 price index. This results to an inflation-reflected receipts in 1997.
The adjustment helps to put a value that is equivalent to the current price (assessed period's current price) having factored in inflation.
A Consumer Price Index is a statistical estimate that measures the changes in the price level of a weighted average market basket of consumer goods and services purchased by households. It is measured periodically to reflect inflation.
Inflation is the general rise in the prices where a unit of currency yesterperiod buys less today than it did. It is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over some period of time.
Using the CAPM, compute the cost of equity capital for the lodging division at the target leverage ratio for the division. Explain why this is higher than the cost of equity capital if Marriott had a zero-debt policy.
Answer:
Information from 1987:
There is a lot of information missing, I'll try to fill some important blanks:
Marriots's total debt $2,500 million (59% of total capital)
since debt to capital ratio = total debt / (total equity + debt)
then, we can assume equity = $1,737 million (41% of total capital)
the lodging division's number were a little different:
debt to capital 74%
equity = 26%
cost of debt = 1.1% + long term US securities interest rate (8.95%) = 10.05%
cost of equity = risk free rate + (beta x risk premium) =
risk free rate = short term T-bills = 5.46%beta = 1.11market premium = 7.92%cost of equity = 5.46% + (1.11 x 7.92%) = 14.25%
Marriot's Lodging division's WACC = (26% x 14.25%) + (74% x 10.05% x (1 - 42% corporate tax rate) = 3.71% + 4.31% = 8.02%
If Marriot had a zero debt policy, its cost of equity would be lower because the business risk would be lower. The cost of debt is lower because interest payments decrease income taxes. But at the same time, you have to earn enough money to pay your interest obligations on time. That extra pressure to make more money, increases the company's risk. As the company's risk increases, investors will demand higher returns for their investment. That is why T-bills yield the lowest returns, simply because they are a extremely safe investment. As risk increases (more interests = more risks), investors will demand a higher rate of return and cost of equity will increase.
Future Value At age 20 you invest $1,000 that earns 7 percent each year. At age 30 you invest $1,000 that earns 10 percent per year. In which case would you have more money at age 60?
Answer:
In the case of age 30, there will be more money at the age of 60
Explanation:
When person start investing at the age of 20 then total year till 60 years age is = 40 years.
Interest rate (r ) = 7 percent or 0.07.
Investment amount (Present value) = $1000
Now the total amount at the age of 60 years is calculated below.
[tex]Total \ amount = Present \ value (1 + r)^{n} \\= 1000 ( 1 + 0.07 ) ^{40}\\= 14974.4578 \ dollars[/tex]
Now calculate the total amount at the age of 60 years when he invest at the age of 30 and earns interest rate 10 percent. Now the number of years is 30.
[tex]Total \ amount = Present \ value (1 + r)^{n} \\= 1000 ( 1 + 0.1 ) ^{30}\\= 17449.4023 \ dollars[/tex]
Unearned Seminar Fees has a balance of $6,500, representing prepayment by customers for five seminars to be conducted in June, July, and August 2019. Two seminars had been conducted by June 30, 2019.
Prepaid Insurance has a balance of $6,000 for six months’ insurance paid in advance on May 1, 2019.Store equipment costing $19,840 was purchased on March 31, 2019. It has a salvage value of $400 and a useful life of six years.Employees have earned $150 that has not been paid at June 30, 2019.The employer owes the following taxes on wages not paid at June 30, 2019: SUTA, $4.50; FUTA, $0.90; Medicare, $2.18; and social security, $9.30.Management estimates uncollectible accounts expense at 1 percent of sales. This year’s sales were
$1,000,000.Prepaid Rent has a balance of $5,100 for six months’ rent paid in advance on March 1, 2019.The Supplies account in the general ledger has a balance of $300. A count of supplies on hand at June 30, 2019, indicated $100 of supplies remain.The company borrowed $10,600 from First Bank on June 1, 2019, and issued a four-month note. The note bears interest at 6 percent.Required:Based on the information above, record the adjusting journal entries that must be made for Sufen Consulting on June 30, 2019. The company has a June 30 fiscal year-end.
Answer:
Dr Merchandise Inventory 500.00
Cr Cost of Goods Sold 500.00
Dr Unearned Seminar Fees 2,000.00
Cr Seminar Fees 2,000.00
Dr Insurance Expense 2,000.00
Cr Prepaid Insurance 2,000.00
Dr Depreciation Expense 810.00
Cr Accumulated Depreciation 810.00
Dr Wages Expense 150.00
Cr Wages Payable 150.00
Dr Payroll tax expense 16.88
Cr SUTA Payable 4.50
Cr FUTA Payable 0.90
Cr Medicare Payable 2.18
Cr Social Security Payable 9.30
Dr Bad Debt Expense 10,000.00
Cr Allowance for Doubtful Debts 10,000.00
Dr Rent Expense 3,400.00
Cr Prepaid Rent 3,400.00
Dr Supplies Expense 200.00
Cr Supplies 200.00
Dr Interest Expense 53.00
Cr Interest Payable 53.00
Explanation:
Journal entries for Unearned Seminar Fees
Dr Merchandise Inventory 500.00 (7000-6500)
Cr Cost of Goods Sold 500.00
(Increase in inventory on hand)
Dr Unearned Seminar Fees 2,000.00 (5000/5*2)
Cr Seminar Fees 2,000.00
(Fees earned during the period)
Dr Insurance Expense 2,000.00 (6000/6*2)
Cr Prepaid Insurance 2,000.00
(Prepaid insruance expired)
Dr Depreciation Expense 810.00 [(19840-400)/6*3/12]
Cr Accumulated Depreciation 810.00
(Deprecaition expense for the period)
Dr Wages Expense 150.00
Cr Wages Payable 150.00
(Wages accrued but not paid)
Dr Payroll tax expense 16.88
Cr SUTA Payable 4.50
Cr FUTA Payable 0.90
Cr Medicare Payable 2.18
Cr Social Security Payable 9.30
(Payroll tax expense)
Dr Bad Debt Expense 10,000.00 (1,000,000*1%)
Cr Allowance for Doubtful Debt 10,000.00
(Bad debt expense)
Dr Rent Expense 3,400.00 (5100/6*4)
Cr Prepaid Rent 3,400.00
(Prepaid rent expired during the period)
Dr Supplies Expense 200.00
(300-100)
Cr Supplies 200.00
(Supplies consumed during the period)
Dr Interest Expense 53.00 (10600*6%*1/12)
Cr Interest Payable 53.00
(Interest accrued but not paid)
The Balance in Prepaid Rent is :
5100 - 3400 = 1700
According to Debra, the vice president of Theo Chocolate, the most important marketing vehicle the company has is: a.the fair trade certification. b.free product giveaways. c.tours of its factories. d.the unique varieties of chocolates it offers.
Answer:
The correct answer is the option C: Tours of its factories.
Explanation:
To begin with, the most important marketing vehicle the company has is the tours of its factories due to the fact that it is quite known that the showdown of the product and its current production to the customers increase the amount of desire that they have for them. Moreover, the fact of showing to the clients how well the products are made, with the greatest quality and all the correct process, the clients only feel more amaze for the products of the company and that is why that its demand increase as well as its sales, due to the tours.
Answer:
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Explanation:sqoakifthan yoikwp
Statement of cash flows
On January 1, 2013, Palmetto, a fast-food company, had a balance in its Cash account of $32,000. During the 2013 accounting period, the company had (1) net cash inflow from operating activities of $15,600, (2) net cash outflow for investing activities of $23,000, and (3) net cash outflow from financing activities of $4,500.
Required
a. Prepare a statement of cash flows.
b. Provide a reasonable explanation as to what may have caused the net cash inflow from operating activities.
c. Provide a reasonable explanation as to what may have caused the net cash outflow from investing activities.
d. Provide a reasonable explanation as to what may have caused the net cash outflow from financing activities.
Answer:
a.
Palmetto Statement of Cashflows
For the Year Ended December 31, 2013
Cashflow from Operating Activities
Net Cashflow from Operaing Activities $15,600
Cashflow from Investing Activities
Net Cashflow from Investing Activities ($23,000)
Cashflow from Financing Activities
Net Cashflow from Financing Activities ($4,500)
Net Increase (Decrease) ($11,900)
Add: Beginning of Period Cash balance $32,000
Ending Cash Balance $20,100
b. Operating Cash flow relates to the normal business operations of the business. A Net Cash Inflow from this therefore means that the business made a profit from its normal operations of selling fast food during 2013.
c. Investing Activities relate to transaction involving Fixed Assets as well as the stocks and bonds of other companies. The Net Cash flow was probably caused by Palmetto buying more Fixed Assets than they disposed of in the year 2013.
d. Financing activities relate to how the business is financed in terms of Equity and debt. The payments of Dividends therefore fall under here as they relate to Equity. A net cash outflow here therefore probably means that Palmetto paid out dividends to shareholders. They might have also repaid some loans but judging by how small the outflow is, the loans were either small or it was only dividends that were paid out.
All of the following statements regarding leases are true except : A. For a capital lease the lessee records the leased item as its own asset. B. Capital leases do not transfer ownership of the asset under the lease, but operating leases often do. C. Capital leases create a long-term liability on the balance sheet, but operating leases do not. D. For a capital lease the lessee depreciates the asset acquired under the lease, but for an operating lease the lessee does not. E. For an operating lease the lessee reports the lease payments as rental expense.
Answer: B. Capital leases do not transfer ownership of the asset under the lease, but operating leases often do.
Explanation:
When using Capital Leases, the lessee will record the lease as if it were their own asset and as a result will also depreciate it. The lessee will also create a long term liability on their balance sheet for the asset.
Capital leases usually also involve a transfer of ownership to the lessee at the end of the lease term. Operating Leases on the other hand do not have these features. They are more like a rental of an asset and as such are recorded as a rental expense in the books of the lessee. The ownership remains with the lessor in an Operating Lease and the asset will be returned once the lease period is over.
Suppose a bond issued by the European Central Bank and denominated in euros pays 44% per year. Today the exchange rate is 1.521.52 dollars per euro. It is expected that the exchange rate in one year will be 1.671.67 dollars per euro. What is the annual dollar return on this bond? A. negative 5−5 percent B. 1919 percent C. 44 percent D. 1414 percent
Answer:
D. 14 percent
Explanation:
The computation of the annual dollar return is shown below:
But before that we need to do following calculation
Let us assume the par value be $100
So, the bond par value is
= $100 × $1.52
= $152
The interest rate is
= $100 × 4%
= 4 euros
Future interest rate in dollars is
= 4 euros × 1.67
= $6.68
Now par value in the future is
= $100 × 1.67
= $167
Now the annual dollar return on this bond is
= (Future par value + Future interest rate in dollars - bond par value) ÷ (bond par value)
= ($167 + $6.68 - $152) ÷ ($152)
= 14.26%
hence, the correct option is d.
A store will give you a 2% discount on the cost of your purchase if you pay cash today. Otherwise, you will be billed the full price with payment due in 1 month. What is the implicit borrowing rate (EAR) being paid by customers who choose to defer payment for the month? Show your calcuation steps. If you use the financial calculator, tell me your inputs and output (i.e. pv,fv,n, i/Y, pmt).
Answer:
The implicit borrowing rate (EAR) being paid by customers who choose to defer payment for the month is 24.48%
Explanation:
In order to calculate the implicit borrowing rate we would have to calculate the following formula:
implicit borrowing rate=Discount%/(1-Discount%) *12/( payment months - discount month)
According to the given data we have the following:
Discount % =2
Payment days = 1 month
Therefore, implicit borrowing rate=2%/(1-2%)*12/1
implicit borrowing rate=(0.02/0.98)*12
implicit borrowing rate=24.48%
The implicit borrowing rate (EAR) being paid by customers who choose to defer payment for the month is 24.48%
An 8-year project costs $475 and has cash flows of $100 for the first three years and $75 in each of the project's last five years. What is the payback period of the project
Answer:
It will take 6 years and 183 days to cover for the investment.
Explanation:
Giving the following information:
Cash flow:
Cf1 trough 3= 100
Cf4 trough 8= 75
Initial investment= 475
The payback period is the time required to recover the initial investment.
Year 1= 100 - 475= -375
Year 2= 100 - 375= -275
Year 3= 100 - 275= -175
Year 4= 75 - 175= -100
Year 5= 75 - 100= -25
Year 6= 75 - 25= 50
To be more accurate:
(25/50)*365= 183
It will take 6 years and 183 days to cover for the investment.
A stock just paid a dividend of $3. The stock is expected to increase its dividend payment by 30% per year for the next 3 years. After that, dividends will grow at a rate of 8% forever. If the required rate of return is 10%, what is the price of the stock today?
Answer:
Price of stock today = $334.56
Explanation:
The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return.
This model would be applied as follows:
Year Present Value ( PV)
1 3 × 1.3 × 1.1^(-1) = 3.5454
2 3 × 1.3^2 × 1.1^(-2) = 4.1900
3 3 × 1.3^3 × 1.1^(-3) = 4.9519
Total 12.6874
Year 4 and beyond
This will be done in two steps
Step 1
D× (1+g)/k-g
3 × 1.3^4/(0.1-0.08)
=428.415
Step 2
Present Value in year 0
=428.415 × 1.1^(-3) = 321.87
Total present value = 12.6874 + 321.87 = 334.56
Price of stock today = $334.56
If government regulators guarantee a natural monopolist that it will earn normal profits, then the monopolist will Group of answer choices
Answer:
If government regulators guarantee the natural monopolist that it will earn a normal profit, then, the monopolist will not have any incentive to hold down costs.
Explanation:
Normal profits are the profits that allow a business to cover its total costs: both explicit costs and implicit costs. Explicit costs are those that have to be paid explicitely, for example: rent or wages, while implicit costs are the opportunity costs of not running a business.
If the natural monopolist has a government guarantee that it will always make a normal profit, then, it will not have any incentive to reduce costs, whether explicit costs or implicit costs.
When comparing the weighted-average and FIFO methods of process costing, which items are the same in both methods? (
Answer:
Objectives, Concepts and Journal Entry Accounts
Explanation:
The reason is that the objective of the FIFO and Weighted average methods is the same which is to assign the costs that were incurred to convert the raw inventory into finished goods.
The underlying concept in both of the method is cost flow assumption which is the transfer of the cost that was assigned to finished goods, to cost of goods sold.
The journal entry accounts are the same accounts used for weighted average method, LIFO and FIFO methods.
So these are the similarities which are found while comparing FIFO, LIFO and weighted average methods of process costing.
The firm uses the periodic system, and there are 25 units of the commodity on hand at the end of the year. What is the amount of the inventory at the end of the year using the LIFO method? a. $1,805 b. $1,575 c. $3,815 d. $1,685
Answer: $1,575
Explanation:
When using Last In First Out (LIFO) method of inventory valuation, it is assumed that the most current goods purchased are the ones to be sold first. This means that the remaining inventory are the earlier ones purchased.
25 units remain at the end of the year. These will therefore come from;
The 10 units of beginning Inventory at $60 each
The remaining 15 units will come from the first purchase at $65 each.
Amount of Inventory = (10 * 60) + (15 * 65)
= 600 + 975
= $1,575
I have attached the complete question.
High-Low Cost Estimation and Profit Planning Comparative 2007 and 2008 income statements for Dakota Products Inc. follow: DAKOTA PRODUCTS INC. Comparative Income Statements For Years Ending December 31, 2007 and 2008 2007 2008 Unit sales 5,000 8,000 Sales revenue $60,000 $96,000 Expenses (64,000) (76,000) Profit (loss) $(4,000) $20,000 (a) Determine the break-even point in units. Answer units (b) Determine the unit sales volume required to earn a profit of $5,000. Answer
Answer:
(a)
5,500 units
(b)
6,125 units
Explanation:
First, we need to calculate the per unit selling price.
2007 2008
Unit sales 5,000 8,000
Sales revenue $60,000 $96,000
Selling Price $12 $12
Now we need th separate the vairbale and fixed cost from total expense using high low method
Variable cost = ( Higher activity Expense - Lower activity Expense ) / ( Higher activity - Lower activity )
Variable cost = ( $76,000 - $64,000 ) / ( 8,000 units - 5,000 units )
Variable cost = $12,000 / 3,000 units = $4 per unit
Fixed cost = $76,000 - ( $4 x 8,000 units ) = $44,000
Contribution Margin = Selling Price - Variable cost = $12 - $4 = $8
(a)
Breakeven Point = Fixed Cost / Contributin margin per unit
Breakeven Point = $44,000 / $8 = 5,500 units
(b)
Target sales = ( Fixed cost + Desired Profit ) / Contribution margin per unit
Target sales = ( $44,000 + $5,000 ) / $8 = 6,125 units
For the past year, Momsen, Ltd., had sales of $46,967, interest expense of $4,088, cost of goods sold of $17,184, selling and administrative expense of $12,051, and depreciation of $6,850. If the tax rate was 35 percent, what was the company's net income
Answer:
The Net Income is $4416.1
Explanation:
The net income is calculated as follows,
Sales $46967
Less:Cost of sales (17184)
Gross Profit 29783
Less:Expenses
Selling & Admin exp (12051)
Depreciation exp (6850)
Interest exp (4088)
Net income before ta 6794
tax expense (2377.9)
Net Income 4416.1
You are hoping to have $10,000 in your account 7 years from today in order to go on a reindeer expedition in Lapland. If your current balance is $6,000, what APR (compounded monthly) would be required if you are to have $10,000 in your account in 7 years?
Answer:
APR= 7.32%
Explanation:
The APR is computed as shown below:
Future value = Present value (1 + r/ m)^nm
Future value = 10,000
Present value= 6,000
n=7
m=12
$ 10,000 = $ 6,000 (1 + r / 12 )^12 x 7
$ 10,000 = $ 6,000 (1 + r / 12 )^84
($ 10,000 / $ 6,000)^ 1 / 84 - 1 = r / 12
1.006099786 - 1 = r / 12
0.006099786 x 12 = r
r=0.006099786 x 12
r = 7.32%
APR= 7.32%
How can the firm best motivate and select service employees who, because the service is delivered in real time, become a critical part of the product itself?
Answer:
The product will not reach the customer or you may not get a good reputation without the employee being effiecient in the job if you list the delivery time in real time, thus leaving your business with an unpopular local opinion and review of your product and delievery.
Explanation:
A customer enters your facility and discusses their most recent hunt. This was strictly a friendly, non-
professional conversation. According to your book, which of the following would you consider this use of
time in your business environment as?
1
Answer: Time spent
Explanation:
From the question, we are informed that a customer enters a facility and discusses their most recent hunt. We are further informed that it was strictly a friendly, non-professional conversation.
This will be consider as time spent in a business environment. Good customers relationship is needed for the success of every organization. Therefore, in this case, it'll be termed time spent.
Suppose the borrowing rate rB=10% compounded annually. However, the lending rate (or equivalently, the interest rate on deposits) is only 8% compounded annually. Compute the difference between the upper and lower bounds on the price of an perpetuity that pays A=10,000\$ per year.
Answer: $25,000
Explanation:
From the question, we are told that the borrowing rate rB=10% compounded annually and the lending rate (or equivalently, the interest rate on deposits) is only 8% compounded annually.
The upper bounds on the price of an perpetuity that pays $10,000 per year will be:
= $10,000/10%
= $10,000/0.1
= $100,000
The lower bounds on the price of an perpetuity that pays $10,000 per year will be:
= $10,000/8%
= $10,000/0.08
= $125,000
The difference between the upper and lower bounds will now be:
= $125,000 - $100,000
= $25,000
The following transactions are for Kingbird Company.1. On December 3, Kingbird Company sold $450,000 of merchandise to Blossom Co., on account, terms 1/10, n/30. The cost of the merchandise sold was $310,000.2. On December 8, Blossom Co. was granted an allowance of $22,000 for merchandise purchased on December 3.3. On December 13, Kingbird Company received the balance due from Blossom Co.Instruction:Prepare the journal entries to record these transactions on the books of Mack Company. Mack uses a perpetual inventory system.
Answer:
Kingbird Company or Mack Company
Journal Entries:
Dec. 3:
Debit Accounts Receivable (Blossom Co.) $450,000
Credit Sales Revenue $450,000
To record the sale of goods on account, terms 1/10, n/30.
Debit Cost of Goods Sold $310,000
Credit Inventory Account $310,000
To record the cost of goods sold.
Dec. 8:
Debit Sales Allowance $22,000
Credit Accounts Receivable (Blossom Co.) $22,000
To record the allowance granted.
Dec. 13:
Debit Cash Account $423,720
Debit Cash Discount $4,280
Credit Accounts Receivable (Blossom Co.) $428,000
To record the settlement of account.
Explanation:
Journal entries are used to record transactions that occur on a daily basis. They are usually the first set of records made in the accounting books. They show the accounts to be debited and the accounts to be credited. Each transaction is usually debited in one account and credited in another to reflect the double entry system of accounting and to keep the accounting equation in balance.
1. Calculate the straight-line and sum-of-years-digits depreciation schedules for a $450 video camera that will have a salvage value of $50 after five years of use.
Answer:
Explanation:
Hey
Assume that a technological breakthrough lowers the cost of manufacturing automobiles. As a result of this event, we could reasonably expect:
Answer:
a shift right in the supply for automobiles
Explanation:
Since in the question it is mentioned that due to the breakthrough of technologies it lowers the cost of manufacturing automobiles so ultimately it rise the producers profitability that results in more production of automobiles.
Therefore there is a rise in the supply of automobiles that shift the supply curve in rightward
So, the fifth option is correct
Knowledge Check 01 On March 15, Viking Office Supply agrees to accept $1,200 in cash along with a $2,800, 60-day, 15 percent note from one of its customers to settle his $4,000 past-due account. Prepare the March 15 entry for Viking Office Supply by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answer:
Viking Office Supply
Debit Accounts Receivable $4,000
Credit Allowance for Uncollectible Accounts $4,000
To revise the write-off of past-due account.
Debit Cash Account $1,200
Debit 15% Notes Receivable $2,800
Credit Accounts Receivable $4,000
To record the cash receipt and notes settlement.
Explanation:
Since the account is past-due, it must have been written off as uncollectible expense. To revise this entry, a credit is made to the Allowance for Uncollectible Accounts and a debit to the Accounts Receivable.
Then a debit to the Cash Account in the sum of $1,200 and a debit to the Notes Receivable account for $2,800 and a credit to the Accounts Receivable.
Denny Co. sells major household appliance service contracts for cash. The service contracts are for a one-year, two-year, or three-year period. Cash receipts from contracts are credited to Unearned Service Revenues. This account had a balance of $900,000 at December 31, 2011 before year-end adjustment. Service contracts still outstanding at December 31, 2011 expire as follows:
Service contracts still outstanding at December 31, 2011 expire as follows:
During 2012 $190,000
During 2013 $285,000
During 2014 $125,000
What amount should be reported as Unearned Service Revenues in Denny's December 31, 2011 balance sheet?
a. $900,000
b. $600,000
c. $1,500,000
d. $300,000
Answer:
b. $600,000
Explanation:
Amount to be reported = Outstanding service contracts for 2012, 2013 and 2014
=$190,000 + $285,000 + $125,000
=$600,000
$600,000 should be reported as unearned service revenues in Denny's Co. December 31, 2015 balance sheet.
On January 1, James Industries leased equipment to a customer for a four-year period, at which time possession of the leased asset will revert back to James. The equipment cost James $700,000 and has an expected useful life of six years. Its normal sales price is $700,000. The residual value after four years, guaranteed by the lessee, is $100,000. Lease payments are due on December 31 of each year, beginning with the first payment at the end of the first year. Collectibility of the remaining lease payments is reasonably assured, and there are no material cost uncertainties. The interest rate is 5%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Calculate the amount of the annual lease payments
Guaranteed Residual Value
Table or calculator function: n=?, i=?
Amount ot be recovered (fair value) $?
Guaranteed residual value $?
Amount to be recovered through periodic lease payments $?
Lease Payment
Table or calculator function: PVAD of $1 ?
n=?, i=?
Amount of fair value recovered each lease payment (Lease Payments $?)
* I would like to make sure the answer is correct. Please provide step by step calculate and explain.
Answer:
- $700,000
- 82,270
- $617,730
- present value of $1: n=4, i=5%
- the present value of an ordinary annuity of $1: n=4, i=5%
Explanation:
Amount to be recovered (fair value): $700,000
Less: Present value of the residual value ($100,000 x .82270*): 82,270
Amount to be recovered through periodic lease payments: $617,730
Lease payments -: end of each of the next four years: ($617,730 ÷ 3.54595**) $174,207
* present value of $1: n=4, i=5%
** present value of an ordinary annuity of $1: n=4, i=5%
Why do you think Red Lobster relies so much on Internet surveys to track customer opinions, preferences, and criticisms
Answer:
Red Lobster is a seafood restaurant chain from the United States that has about 719 restaurants around the world and I consider that this chain relies on internet surveys to track customer opinions, preferences, and criticisms because it allows them to identify changes in consumers and on their preferences in a way that helps them to respond quickly before any issue affects the brand.
A fruit company sells oranges for 32 cents a pound plus $7.50 per order for shipping. If an order is over 100 pounds, shipping cost is reduced by $1.50. This program is supposed to ask the user for the number of pounds of oranges and then print the cost of the order, but it is all mixed up! Can you put the lines in the right order?
Answer:
def cost_of_order(amount):
cost = amount * 32
if amount <= 100:
print (cost + 7.50)
else:
print(cost + 7.50 - 1.50)
cost_of_order(10)
Explanation:
This question requires we write a code to get the cost of the order. The total cost of the order including the shipping cost . Let us use function to solve this and the code will be written in python .
def cost_of_order(amount):
The first line of code depict a function we declared and called it cost_of_order. The parameter is amount which is the weight of the oranges ordered in pounds.
cost = amount * 32
Now the cost of the orange will be the product of the weight in pounds and the price of each pound. The actual price of the product will be 32 multiply by the amount in pounds.
if amount <= 100:
This simply means if the amount in pounds of the orange is less or equal to 100 the next line of code we run
print (cost + 7.50)
This block of code will run if the amount of orange in pounds is less than or equals to 100. Remember the amount in pounds must be over 100 before the cost of shipping will be deducted by $ 1.50 . Therefore, the cost will be added to $7.50 and printed.
else:
this simply means otherwise
print(cost + 7.50 - 1.50)
This line of code will be printed if the amount in pounds is over 100. Notice that $1.50 is reduced from the usual cost(including the shipping cost)
cost_of_order(10)
We call the function at this stage with the parameter which is the amount in pounds.
Run this code you will get the cost of the order .
During the week ended May 15, 2019, Scott Fairchild worked 40 hours. His regular hourly rate is $15. Assume that all of his earnings are subject to social security tax at a rate of 6.2 percent and Medicare tax at a rate of 1.45 percent. He also has deductions of $32 for federal income tax and $22 for health insurance. What is his gross pay for the week? What is the total of his deductions for the week? What is his net pay for the week?
Answer:
Gross pay = 600
Deductions = 99.9
Net Pay = 500.1
Explanation:
Requirement A:
Gross Pay = 40 hours x $15/hour
Gross Pay = $600
Requirement B:
Security Tax ( 600 x 6.2%) = $37.2
Medicare tax ( 600 x 1.45%) = $8.7
Federal Income = $32
Health Insurance = $22
Total deductions = $99.9
Requirement C :
Net Pay = Gross pay - all deductions
Net Pay = $600 - 99.9
Net Pay = 500.1
Cox Media Corporation pays a coupon rate of 10 percent on debentures that are due in 15 years. The current yield to maturity on bonds of similar risk is 8 percent. The bonds are currently callable at $1,100. The theoretical value of the bonds will be equal to the present value of the expected cash flow from the bonds. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.a. Find the market value of the bonds using semiannual analysis. (Ignore the call price in your answer. Do not round intermediate calculations and round your answer to 2 decimal places.)b. Do you think the bonds will sell for the price you arrived at in part a?
Answer:
a. Find the market value of the bonds using semiannual analysis.
bond's price = PV of maturity value + PV of coupon payments
PV of maturity value = $1,000 / (1 + 4%)³⁰ = $308.32PV of coupon payments = $50 x 17.292 (annuity factor 4%, n = 30) = $864.60bond's price = $1,172.92
b. Do you think the bonds will sell for the price you arrived at in part a?
No, since they are currently callable at $1,100, their market price will be the call price. No investor will risk to pay more for a bond that can be called at a much lower price.
Overton Company has gathered the following information. Units in beginning work in process 20,300 Units started into production 185,700 Units in ending work in process 24,900 Percent complete in ending work in process: Conversion costs 60 % Materials 100 % Costs incurred: Direct materials $103,000 Direct labor $333,306 Overhead $186,200
Required:
a. Compute equivalent units of production for materials and for conversion costs.
b. Determine the unit costs of production.
c. Show the assignment of costs to units transferred out and in process.
Answer:
a. Materials = 206,000 units and Conversion costs = 196,040 units
b. Materials = $0.50 and Conversion costs = $2.65
c. Costs to units transferred out = $570,465 and Costs to units in process = $59,511
Explanation:
a. Calculation of Equivalent Units of Production for Materials and for Conversion costs
Units Completed and Transferred = Units in beginning work in process + Units started into production - Units in ending work in process
= 20,300 + 185,700 - 24,900
= 181,100
Materials
Units Completed and Transferred (181,100 × 100%) = 181,100
Units in Ending Work in Process (24,900 × 100%) = 24,900
Equivalent Units of Production = 206,000
Conversion costs
Units Completed and Transferred (181,100 × 100%) = 181,100
Units in Ending Work in Process (24,900 × 60%) = 14,940
Equivalent Units of Production = 196,040
b. Calculation of the unit costs of production.
Unit costs of production = Total Cost / Equivalent Units of Production
Materials = $103,000 / 206,000
= $0.50
Conversion costs = ($333,306 + $186,200) / 196,040
= $2.65
Total Unit Cost = $0.50 + $2.65
= $3.15
c. Assignment of costs to units transferred out and in process.
Costs to units transferred out = 181,100 × $3.15
= $570,465
Costs to units in process
Materials ($0.50 × 24,900) = $12,450
Conversion costs ($3.15 × 14,940) = $47,061
Total Cost = $59,511