The representative​ firm's total revenue ​(TR​) for selling the​ profit-maximizing level of output is

Answers

Answer 1

Answer: $787.50

Explanation:

Firms maximise their profit levels at the point where Marginal Revenue equals Marginal Cost because at this point any increase in Cost will not bring about more additional revenue.

The point where MR = MC is point A where sales are 225 units and price is $3.50.

The Total Revenue = Price * Quantity

= 225 * 3.50

= $787.50

The Representative Firm's Total Revenue (TR) For Selling The Profit-maximizing Level Of Output Is

Related Questions

The celebration of key accomplishments by chest bumps and the push-up contests reflected what level of organizational culture at Uber during former CEO Kalanick’s tenure?
A. observable artifacts
B. hierarchy
C. enacted values
D. espoused values

Answers

Answer:

Uber's Organizational Culture during former CEO Kalanick's tenure:

A. observable artifacts

Explanation:

Observable artifacts are the visible cultural manifestations prevalent in an organization, through which the organization's culture is expressed in tangible terms.  A culture of casualness will become visible in the dress code and how people address one another by first names or surnames.  Even the way products are displayed and offices are furnished reflect observable artifacts of an organization's deeper culture of acceptance and openness.

According to Ryan Grey Smith—the owner of Modern Shed—for the first five years, the big goal for his company is to: a.diversify operations. b.have more employees. c.start a subsidiary company. d.be more accessible to people.

Answers

Answer: d.be more accessible to people.

Explanation:

Ryan Grey Smith and his wife, Ahna Holder founded Modern Shed in 2005 after recognising business potential when a client decided that getting a prefabricated shed instead of a house extension was cheaper.

According to Mr. Smith, the big goal the company came up with was to be as accessible to people as possible by being flexible enough to adapt to whatever requirements that people had of them so that they could build on that and maximise their output.

Garrison Company adds direct materials at the beginning of the process and adds conversion costs throughout the process. The following data represents data in the Shaping Department ​WIP, April 1 7 comma 000 units Transferredminusin costs in​ WIP, April 1 ​$79,940 Direct materials​ (100%) in​ WIP, April 1 ​$24,420 Conversion costs ​(55​%) in​ WIP, April 1 ​$23,400 Units transferredminusin 49 comma 000 Transferredminusin costs during April ​$550,900 Units completed 46 comma 000 April direct materials cost ​$155,500 April conversion costs ​$239,250 ​WIP, April 30 10 comma 000 units ​(100% for materials and 40​% for conversion​ costs) What are the equivalent units for conversion​ costs?

Answers

Answer:

Equivalent Units for conversion = 50,000 units

Cost per equivalent unit for conversion = $5.253

Explanation:

​WIP, April 1                                               = 7,000 units

Transferred-costs in​ WIP, April 1            = ​$79,940

Direct materials​ (100%) in​ WIP, April 1   = ​$24,420

Conversion costs ​(55​%) in​ WIP, April 1  = ​$23,400

Units transferred                                      = 49,000

Transferred costs during April                = ​$550,900

Units completed                                       = 46,000

April direct materials cost                        =​$155,500

April conversion costs ​                             =$239,250

WIP, April 30                                              =10,000 units

100% for materials and 40​% for conversion​ costs

Required = Equivalent Units for conversion cost?

Solution

Equivalent Units for conversion = 100% of units completed + 40% of units in work in process

Equivalent Units for conversion = (46000 x 100%) + ( 10,000 x 40%)

Equivalent Units for conversion = 46,000 + 4000

Equivalent Units for conversion = 50,000 units

Cost per equivalent unit for conversion = Total conversion cost/Equivalent unts for conversion

Cost per equivalent unit for conversion = (23,400+239,250) /50,000units

Cost per equivalent unit for conversion = $5.253

If sales are $400,000, variable costs are 75% of sales, and operating income is $40,000, what is the operating leverage

Answers

Answer:

operating leverage= 0.17

Explanation:

Giving the following information:

Sales= $400,000

Variable costs= 75% of sales

Operating income= $40,000

To calculate the operating leverage, we need to use the following formula:

operating leverage= fixed costs/total costs

Fixed costs= (400,000*0.25) - 40,000= 60,000

Total costs= 400,000*0.75 + 60,000= 360,000

operating leverage= 60,000/360,000

operating leverage= 0.17

Control is the mechanism for making sure the other three managerial functions--planning, organizing, and leadership--are operating smoothly.
A. True
B. False

Answers

Answer:

True.

Explanation:

Control is the mechanism for making sure the other three managerial functions such as planning, organizing, and leadership are operating smoothly.

Control is basically one of the key functions of the management in an organization and as such it is an essential goal-oriented function of managers or supervisors or the top executives working in an organization.

Generally, it is a management strategy that is being used to set predetermined standards and checking for compliance or accuracy among employees with these standards and requirements. Also, if the standards aren't followed by the employees, control is used to detect the errors and eventually to take corrective actions so as to achieve organizational goals, objectives, mission and vision.

Hence, the purpose of control by management is to minimize deviation from standards by the employees working in an organization and to ensure that their actions or activities are in tandem with the stated goals of an organization. Also, if an organization wishes to attain greater heights, remain competitive or have a competitive advantage over industry rivals it is very important that it's managers use control effectively.

In a nutshell, control is a strategic function that regulates, guides and protects the activities of an organization.

Orwell building supplies' last dividend was $1.75. Its dividend growth rate is expected to be constant at 34.00% for 2 years, after which dividends are expected to grow at a rate of 6% forever. Its required return (rs) is 12%. What is the best estimate of the current stock price? Select the correct answer. a. $49.93 b. $49.39 c. $48.85 d. $47.77 e. $48.31

Answers

Answer:

Price of the stock today = $48.85 and option c is the correct answer.

Explanation:

The current price of the stock can be computed using the two stage dividend growth model of the DDM approach. The DDM or dividend discount model values a stock based on the present value of the expected future dividends from the stock.

The formula for the price of the stock today using the two stage growth model is attached.

Price of the stock today = 1.75 * (1+0.34) / (1+0.12) + 1.75 * (1+0.34)^2 / (1+0.12)^2 + [ (1.75 * (1+0.34)^2 * (1+0.06)) / (0.12 - 0.06) ] / (1+0.12)^2

Price of the stock today = $48.85

Globalization is supposed to provide diversification benefits that domestic sectors in US can not. Find three examples where foreign events led to major set-backs in US stock markets and Discuss why those events affected the US markets.

Answers

Answer:

Three examples of situations in which events abroad, due to globalization, affected the stock markets in the United States were:

-The confrontation between Saudi Arabia and Russia over the price of oil, started on March 8, 2020, caused the price of said good to drop by 35% and the shares of major companies in that market such as Exxon Mobil, Chevron or Shell fell in the same proportion.

-The emergence of the coronavirus as a global pandemic in China and Europe generated the speculation of many investors, who began to invest in pharmaceuticals such as Pfizer, Glaxo or Abbott, increasing the value of their shares.

-Brexit, by which the United Kingdom has separated from the European Union, the second largest economy in the world and whose main external partner is the United States, has caused a drop in European markets that has indirectly affected the American stock markets, by involve abrupt movement of the shares of major European companies such as Shell or Volkswagen in American stock exchanges.

White Supplies' total material costs are $30,000 and total conversion costs are $20,000. Equivalent units of production for materials are 10,000, and 5,000 for conversion costs.
Compute the unit costs for materials, conversion costs, and total manufacturing costs for the month.
COSTS
Unit costs Materials Conversion Costs Total
Costs incurred
Equivalent units
Unit costs

Answers

Answer:

                                                Material                      Conversion cost

Cost per unit                        $3 per unit                               $4 per unit

Explanation:

Cost per equivalent  unit is computed by dividing the the total cost of each  expenditure type by its the total total equivalent units.

Equivalent is a notional whole unit which represent incomplete and is used t to apportion cost between work in progress and completed work

The cost per equivalent units= total cost of expenditure type / total equivalent units

                                       Material                      Conversion cost

Total cost                           30,000                           20,000

Equivalent units               10,000                              5,000

Cost per unit                 $30,000/10000                      $20,000/5000

                                   = $3 per unit                               $4 per unit

                                              Material                      Conversion cost

Cost per unit                        $3 per unit                               $4 per unit

The following information is for employee William Heedy for the week ended March 15.
Total hours worked: 48
Rate: $16 per hour, with double time for all hours in excess of 40
Federal income tax withheld: $200
United Fund deduction: $50
Cumulative earnings prior to current week: $6,400
Tax rates:
Social security: 6% on maximum earnings of $106,800
Medicare tax: 1.5% on all earnings; on both employer and employee
State unemployment: 4.2% on maximum earnings of $7,000; on employer
Federal unemployment: 0.8% on maximum earnings of $7,000; on employer Federal unemployment: 0.8% on maximum earnings of $7,000; on employer.
1. What is WIlliam's total earnings?
a. $640.00
b. $896.00
c. $256.00
d. $900,00
2. What is WIlliam's total deductions?
a. $200.00
b. $50.00
c. $317.20
d. $250.00
3. What is William's net pay?
a. $578.80
b. $640.00
c. $580.00
d. $600.00
4. What is the employers FICA based on Williams pay?
a. $70.00
b. $67.20
c. $20.40
d. $0
5. What is the employers Federal Unemployment based on Williams pay?
a. $0
b. $13.44
c. $7.00
d. $4.80

Answers

Answer:

1. b. $896.00

2. c. $317.20

3. a. $578.80

4. b. $67.20

5. d. $4.80

Explanation:

1. WIlliam's total earnings

40 hours at $16 = $640

8 hours at $32 = $256

Total                  = $896

2. WIlliam's total deductions

Income Tax                                        $200

United Fund deduction                     $50

Social security tax (6% * $896)         $3.76

Medicare tax (1.5% * $896)                $13.44

Total                                                    $317.20

3. William's net pay

= Total earnings - Total deductions

= $896 - $317.20

= $578.80

Cash Paid is $578.80

4. Employers FICA based on Williams pay

Social Security and Medicare taxes = 7.5% * $869 = $67.20

5. Employers Federal Unemployment based on Williams pay

Federal unemployment tax = 0.8% * $600 = $4.80

The Don't Tread on Me Tire Company had Retained Earnings at December 31, 2015 of $200,000. During 2016, the company had revenues of $400,000 and expenses of $350,000, and the company declared and paid dividends of $11,000. Retained earnings on the balance sheet as of December 31, 2016 will be:

Answers

Answer:

$239,000

Explanation:

The computation of the ending retained earning balance is shown below:

As we know that

Ending retained earnings = beginning retained earnings + net income - dividend paid

where,

Net income is

= Revenues - expenses

= $400,000 - $350,000

= $50,000

And, the other items values would remain the same

So, the ending balance is

= $200,000 + $50,000 - $11,000

= $239,000

A company borrowed $10,000 by signing a 180-day promissory note at 9%. The total interest due on the maturity date is: (Use 360 days a year.)

Answers

Answer:

$450

Explanation:

Calculation for the total interest due on the maturity date

Using this formula

Total interest=(Amount borrowed × Percentage of promissory note ×1/2)

Let plug in the formula

Total interest =$10,000 x 0.09x 1/2

Total interest= $450

Therefore the total interest due on the maturity date will be $450

According to question: The total interest due on the maturity date is $450

What is Interest due?

Interest due refers to the dollar amount required to pay the interest cost of the loan for the payment on period. When Most loan payments are structured so that each payment covers the interest charged on the loan for the period, Then the interest due, as well as reduces the principal balance of the loan.

Now the Calculation for the total interest due on the maturity date

We are using this formula that is:

The Total interest is=

(Amount borrowed × Percentage of promissory note ×1/2)

Then Let plug in the formula

The Total interest is =$10,000 x 0.09x 1/2

After that Total interest is = $450

Thus. the total interest due on the maturity date will be $450

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A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 410 units. Ending inventory at January 31 totals 150 units. Units Unit Cost Beginning inventory on January 1 370 $ 3.60 Purchase on January 9 80 3.80 Purchase on January 25 110 3.90 Required: Assume the perpetual invent

Answers

Answer:

Cost of ending inventory using:

LIFO = $540

FIFO = $581

weighted average = $553.13

Explanation:

                                                                     Units           Unit Cost

Beginning inventory on January 1                370               $3.60

Purchase on January 9                                   80               $3.80

Purchase on January 25                                110               $3.90

Sales on January 26, the company sells 410 units.

Ending inventory 150 units

Cost of ending inventory using:

LIFO = 150 x $3.60 = $540

FIFO = (110 x $3.90) + (40 x $3.80) = $581

weighted average = ($2,065 / 560) x 150 units = $553.13

Assume you sell short 1,000 shares of common stock at $35 per share, with initial margin at 50%. What would be your rate of return if you repurchase the stock at $25 per share

Answers

Answer:

57.14%

Explanation:

Calculation for the rate of return if you repurchase the stock at $25 per share

First step is to calculate for the profit on stock

Using this formula

Profit on stock =( Sales amount of Common stock per share- Repurchased stock per share)*(Share of common stock)

Let plug in the formula

Profit on stock = ($35 - $25)(1,000)

Profit on stock=$10*10,000

Profit on stock = $10,000

Second step is to calculate for the initial investment

Using this formula

Initial investment= (Sales amount of Common stock per share*Share of common stock×Percentage of the initial margin

Let plug in the formula

Initial investment = ($35)(1,000)(.5)

Initial investment= $17,500

The rate of return will be :

Profit on stock / Initial investment

Rate of return=$10,000/$17,500

Rate of return= 57.14%

Therefore what would be your rate of return if you repurchase the stock at $25 per share will be 57.14%

A $1000 par value bond with 5 years to maturity and a 6% coupon has a yield to maturity of 8%. Interest is paid semiannually. Calculate the current price of the bond. Group of answer choices $1579.46 $918.89 $789.29 $1000.00 $743.29

Answers

Answer:

$918.89

Explanation:

For computing the current price of the bond we need to apply the present value formula i.e to be shown in the attachment

Given that,  

Future value = $1,000

Rate of interest = 8%  ÷ 2 = 4%

NPER = 5 years × 2 = 10 years

PMT = $1,000 × 6% ÷ 2 = $30

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the current price of the bond is $918.89

Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 25 percent for the next 3 years, with the growth rate falling off to a constant 6 percent thereafter. If the required return is 12 percent and the company just paid a $1.30 dividend. what is the current share price

Answers

Answer:

$36.81

Explanation:

Div₀ = $1.30

Div₁ = $1.625

Div₂ = $2.03125

Div₃ = $2.5390625

Div₄ = $2.6914 at a constant g of 6%

first we need to determine the terminal value in year 3:

P = $2.6914 / (12% - 6%) = $44.86

the current stock price, P₀ = $1.625/1.12 + $2.03125/1.12² + $2.5390625/1.12³ + $44.86/1.12³ = $1.45 + $1.62 + $1.81 + $31.93 = $36.81

What is the effect on real GDP of a ​$175 billion change in planned investment if the MPC is 0.50​? ​$ nothing billion. ​(Enter your response rounded to the nearest whole​ number.)

Answers

The effect on real GDP of a $175 billion in the case when there is a change in the planned investment should be $350 billion.

Calculation of the effect on real GDP:


As we know that

Multiplier = 1 ÷ (1 - MPC)
= 1 ÷ 1-0.50
= 2

Now

Change in GDP = Multiplier × Change in investment
= 2 × 175
= $350 billion

Therefore for computing the Change in GDP we simply applied the above formula i.e of Multiplier and the change in gross domestic product (GDP)

Hence, The effect on real GDP of a $175 billion in the case when there is a change in the planned investment should be $350 billion.

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Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2016. The units have a list price of $600 each, but Thomas was given a 30% trade discount. The terms of the sale were 2/10, n/30.1. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2016, assuming that the gross method of accounting for cash discounts is used. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)2. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2016, assuming that the gross method of accounting for cash discounts is used. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)3.1 Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2016, assuming that the net method of accounting for cash discounts is used. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)3.2 Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2016, assuming that the net method of accounting for cash discounts is used. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answers

Answer:

1)

November 17, 100 units sold to Thomas Company on account, credit terms 2/1, n/30

Dr Accounts receivable 42,000

    Cr Sales revenue 42,000

November 26, invoice collected from Thomas Company

Dr Cash 41,160

Dr Sales discounts 840

    Cr Accounts receivable 42,000

2)

November 17, 100 units sold to Thomas Company on account, credit terms 2/1, n/30

Dr Accounts receivable 42,000

    Cr Sales revenue 42,000

December 15, invoice collected from Thomas Company

Dr Cash 42,000

    Cr Accounts receivable 42,000

3)

November 17, 100 units sold to Thomas Company on account, credit terms 2/1, n/30

Dr Accounts receivable 41,160

    Cr Sales revenue 41,160

November 26, invoice collected from Thomas Company

Dr Cash 41,160

    Cr Accounts receivable 41,160

4)

November 17, 100 units sold to Thomas Company on account, credit terms 2/1, n/30

Dr Accounts receivable 41,160

    Cr Sales revenue 41,160

December 15, 2016, invoice collected from Thomas Company

Dr Accounts receivable 840

    Cr Sales discounts forfeited 840

Dr Cash 42,000

    Cr Accounts receivable 42,000

You purchased a share of SPCC for $100 and expect to receive a dividend of $5 in one year. If you expect the price after the dividend is paid to be $110, what total return will you have earned over the year

Answers

Answer:

The answer is 15%

Explanation:

(P1 - Po) / Po + D

Where P1 is the price of the share at the end of the year

Po is the price of the share at the beginning of the year

D is the Dividend receceived

P1 is $110

Po is $100

And Dividend is 5%

($110 - $100) / $100 + 5 %

$10/100 + 5%

10% + 5%

= 15%

The total return will you have earned over the year for the purchase of a share of SPCC is 15%

The difference between actual hours times the actual pay rate and actual hours times the standard pay rate is the labor _________________ variance.

Answers

Answer:

"Labor price variance " is the correct choice.

Explanation:

The variation throughout the labor rate represents the distance between real as well as anticipated labor costs. These were measured by taking the difference, based upon the number of additional hourly wages, between some of the real labor amount charged as well as the minimum amount.Absolute variation in the labor rate is equivalent to absolute variation in the price of the commodity.

A multinational automobile manufacturer issues a public statement that the company's vehicle emissions tests had been falsified to meet environmental compliance standards over recent years using software specifically designed for that purpose. Following the news, the CEO is replaced, vehicle sales plummet, and the company's stock price sharply declines. Which of the following has the company incurred?
a) visible but not intangible costs
b) only visible and internal administrative costs a
c) internal administrative costs but not visible costs
d) internal administrative costs but not intangible costs
e) visible and intangible costs

Answers

Answer:

a) visible but not intangible costs

Explanation:

Based on the information provided within the question regarding the scenario it can be said that the company incurred visible and intangible costs. They have incurred intangible costs because their reputation and credibility was badly damaged due to the public statement, while they also suffered visible costs due to the sharp drop in customers and share prices.

Virginia owns 100% of Goshawk Company. In the current year, Goshawk Company sells a capital asset (held for three years) at a loss of $40,000. In addition, Goshawk has a short-term capital gain of $18,000 and net operating income of $90,000 during the year. Virginia has no recognized capital gain (or loss) before considering her ownership in Goshawk.

Complete each lettered item below, outlining how much of the capital loss may be deducted for the year and how much is carried back or forward.

a. If Goshawk is a proprietorship, only $ _________ long-term capital loss can be deducted in the current year. The remaining $ ___________net capital loss is carried ___________ and then ____________Correct 3 of Item 1.

b. If Goshawk is a C corporation, only $ __________long-term capital loss can be deducted in the current year. The remaining $ ___________ net capital loss is carried ______________ and then _____________ of Item 2.

Answers

Answer:

a)  If Goshawk is a proprietorship, only $21000 long-term capital loss can be deducted in the current year. The remaining $19000 net capital loss is carried forward and then carried back

b)  If Goshawk is a C corporation, only $ 18000 long-term capital loss can be deducted in the current year. The remaining $22000 net capital loss is carried back and then forward of Item 2.

Explanation:

The gain or loss on the sale of a property is said to be the difference between between the realized value of goods and its adjusted basis. When there is a gain the realized value would be greater than the adjusted basis, while when there's loss the realized value would be less than the adjusted basis.

A) In this case, if Goshawk is a proprietorship, only $21,000 of the $40,000 long-term capital loss can be deducted in the current year. The loss will offset the short-term capital gain of $18,000 first; then, an additional $3,000 of the loss may be utilized as a deduction against ordinary income. The remaining $19,000 net capital loss is carried forward to next year and years thereafter until completely deducted. The capital loss carryover retains its character as long term.

B) If Goshawk is a C corporation, $18,000 short term capital gain can be set off for long term capital loss. Then the remaining $22,000($40,000 - $18,000) will be carried backwards

Which one of the following is not a factor that influences a business's control environment? a. personnel policies b. management's philosophy and operating style c. organizational structure d. proofs and security measures

Answers

Answer:

d. Proofs and security measures.

Explanation:

A business control environment are those policies and procedures that assist management in directing the business operations towards achieving it's goals. The aim is to protect the company's assets from misuse by member of staff and also ensure that the business information is accurate and up to date.

Top management create a business control environment to ensure that the policies and procedures guiding each business units are adhered to by members of staff. A business control environment otherwise known as internal control is influenced by it's personnel policies, Management's philosophy and operating style and also it's organizational structure.

The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.80 on December 31, 20Y2.
Marshall Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 20Y2 and 20Y1
1 20Y2 20Y1
2 Retained earnings, January 1 $3,704,000.00 $3,264,000.00
3 Net income 600,000.00 550,000.00
4 Total $4,304,000.00 $3,814,000.00
5 Dividends:
6 On preferred stock $10,000.00 $10,000.00
7 On common stock 100,000.00 100,000.00
8 Total dividends $110,000.00 $110,000.00
9 Retained earnings, December 31 $4,194,000.00 $3,704,000.00
Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
1 20Y2 20Y1
2 Sales $10,850,000.00 $10,000,000.00
3 Cost of goods sold 6,000,000.00 5,450,000.00
4 Gross profit $4,850,000.00 $4,550,000.00
5 Selling expenses $2,170,000.00 $2,000,000.00
6 Administrative expenses 1,627,500.00 1,500,000.00
7 Total operating expenses $3,797,500.00 $3,500,000.00
8 Income from operations $1,052,500.00 $1,050,000.00
9 Other revenue 99,500.00 20,000.00
10 $1,152,000.00 $1,070,000.00
11 Other expense (interest) 132,000.00 120,000.00
12 Income before income tax $1,020,000.00 $950,000.00
13 Income tax expense 420,000.00 400,000.00
14 Net income $600,000.00 $550,000.00
Marshall Inc.
Comparative Balance Sheet December 31, 20Y2 and 20Y1
1 20Y2 20Y1
2 Assets
3 Current assets:
4 Cash $1,050,000.00 $950,000.00
5 Marketable securities 301,000.00 420,000.00
6 Accounts receivable (net) 585,000.00 500,000.00
7 Inventories 420,000.00 380,000.00
8 Prepaid expenses 108,000.00 20,000.00
9 Total current assets $2,464,000.00 $2,270,000.00
10 Long-term investments 800,000.00 800,000.00
11 Property, plant, and equipment (net) 5,760,000.00 5,184,000.00
12 Total assets $9,024,000.00 $8,254,000.00
13 Liabilities
14 Current liabilities $880,000.00 $800,000.00
15 Long-term liabilities:
16 Mortgage note payable, 6% $200,000.00 $0.00
17 Bonds payable, 4% 3,000,000.00 3,000,000.00
18 Total long-term liabilities $3,200,000.00 $3,000,000.00
19 Total liabilities $4,080,000.00 $3,800,000.00
20 Stockholders' Equity
21 Preferred 4% stock, $5 par $250,000.00 $250,000.00
22 Common stock, $5 par 500,000.00 500,000.00
23 Retained earnings 4,194,000.00 3,704,000.00
24 Total stockholders' equity $4,944,000.00 $4,454,000.00
25 Total liabilities and stockholders' equity $9,024,000.00 $8,254,000.00
Determine the following measures for 20Y2 round to one decimal place, including percentages, except for pre-share amounts):
1. Working Capital
2. Current ratio
3. Quick ratio
4. Accounts receivable turnover
5. Number of days' sales in receivables
6. Inventory turnover
7. Number of days' sales in inventory
8. Ratio of fixed assets to long-term liabilities
9. Ratio of liabilities to stockholders' equity
10. Times interest earned
11. Asset turnover
12. Return on total assets
13. Return on stockholders' equity
14. Return on common stockholders' equity
15. Earnings per share on common stock
16. Price-earnings ratio
17. Dividends per share of common stock
18. Dividend yield

Answers

Answer:

Marshall Inc.

Ratios:

1. Working Capital  = Current assets - Current liabilities

= $2,464,000 - 880,000 = $1,584,000

2. Current ratio  = Current Assets/Current Liabilities

= $2,464,000/880,000 = 2.8 : 1

3. Quick ratio  = (Current Assets - Inventory)/Current Liabilities

= ($2,464,000 - 420,000)/880,000

= $2,044,000/880,000 = 2.3 : 1

4. Accounts receivable turnover  = Average Accounts Receivable / Net Sales

= $542,500/10,850,000 = 0.05 times

Average receivables = ($585,000 + 500,000)/2 = $542,500

5. Number of days' sales in receivables  = Days in the year/Accounts receivable turnover

= 365/0.05 = 7,300 days

6. Inventory turnover  = Cost of goods sold / Average Inventory

= $6,000,000/400,000 = 15 times

Average Inventory = (Beginning inventory + Ending inventory) / 2

= ($420,000 + 380,000)/2 = $400,000

7. Number of days' sales in inventory  = Number of days in a year divided by Inventory turnover ratio = 365 /15 = 24.3 days

8. Ratio of fixed assets to long-term liabilities  = Fixed Assets/Long-term Liabilities = $5,760,000/3,200,000 = 1.8 : 1

9. Ratio of liabilities to stockholders' equity  = Total Liabilities/Stockholders' equity = $4,080,000 / $4,944,000 = 0.83 or 80%

10. Times interest earned  = Earnings before Interest and Taxes / Interest Expense = $1,152,000/132,000 = 8.7 times

11. Asset turnover  = Sales Revenue / Average Total Assets

= $6,000,000/$8,639,000 = 0.7 or 70%

Average Total Assets = Beginning total assets + Ending total assets, all divided by 2

= ($9,024,000 + 8,254,000)/2 = $8,639,000

12. Return on total assets  = EBIT/Average Total Assets

= $1,152,000/$8,639,000 = 13%

13. Return on stockholders' equity  = Earnings after tax/Shareholders' equity = $600,000/$4,944,000 x 100 = 12%

14. Return on common stockholders' equity  = EAT/Common Shareholders' Equity = $600,000 - 10,000/($4,944,000 - 250,000) x 100

= 12.6%

15. Earnings per share (EPS) on common stock  = Net Income divided by the number of outstanding common shares = $600,000/100,000 = $6 per share.

16. Price-earnings ratio  = Market price of shares/EPS = $82.80/$6 = 13.8

17. Dividends per share of common stock  = Dividends/Common Stock shares = $100,000/100,000 shares = $1

18. Dividend yield = Dividend per share / Market price per share = $1/$82.80 = 1.2%

Explanation:

1. Working Capital  is the difference between current assets and current liabilities.

2. Current ratio  is a liquidity ratio of current assets over current liabilities.

3. Quick ratio  is the current ratio modified with the subtraction of inventory.

4. Accounts receivable turnover  is an accounting measure that shows how quickly customers pay for the credit sales.

5. Number of days' sales in receivables  measures the number of days it takes a company to collect its credit sales.  It is a function of the number of days in a year divided by the accounts receivable turnover ratio.

6. Inventory turnover  is a ratio showing how many times a company has sold and replaced its inventory during a given period.

7. Number of days' sales in inventory  is the result of dividing the days in the period by the inventory turnover formula.  It shows the number of days inventory is held before being sold.

8. Ratio of fixed assets to long-term liabilities  shows how much of long-term liabilities is represented in fixed assets.

9. Ratio of liabilities to stockholders' equity  is a financial leverage ratio that shows the relationship between liabilities and stockholders' equity.

10. Times interest earned  (TIE) ratio measures the ability of a company to settle its debt obligations based on its current income.  To calculate the TIE number, take the Earnings before interest and taxes (EBIT) and  divide by the total interest expense.

11. Asset turnover  is a ratio of sales over average assets, which shows company's efficiency in using assets to generate sales.

12. Return on total assets  measures the percentage of earnings before interest and taxes over the average total assets.  It can  be obtained by multiplying profit margin with total asset turnover.

13. Return on stockholders' equity  is a financial ratio that is calculated by dividing a company's earnings after taxes (EAT) by the total shareholders' equity, and then multiplying the result by 100.

14. Return on common stockholders' equity  measures the ratio of earnings after taxes less Preferred Stock Dividend over the common shareholders' equity.

15. Earnings per share on common stock  is the ratio of earnings divided by the number of outstanding common stock shares.  It measures the earnings per share that the company has generated for the common stockholders.

16. Price-earnings ratio  is a ratio of the market price of shares over the earnings per share.  It is used to determine if a company's share is overvalued or undervalued.

17. Dividends per share of common stock  is the dividend paid divided by the number of outstanding common stock.

18. Dividend yield is the ratio of the dividend per share over the market price per share.

Gilchrist Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the machine-hours for the upcoming year at 35,900 machine-hours. The estimated variable manufacturing overhead was $4.80 per machine-hour and the estimated total fixed manufacturing overhead was $945,606. The predetermined overhead rate for the recently completed year was closest to:

Answers

Answer:

Predetermined manufacturing overhead rate= $31.14 per machine-hour

Explanation:

Giving the following information:

Estimated machine-hour= 35,900 machine-hours

Estimated variable overhead= $4.80 per machine-hour

Total fixed manufacturing overhead was $945,606.

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (945,606/35,900) + 4.8

Predetermined manufacturing overhead rate= $31.14 per machine-hour

Assume that both the supply and demand of bottled water rise in the summer but that supply increases more rapidly than demand. What can you conclude about the directions of the impacts on the equilibrium price and quantity

Answers

Answer:

there would be a rightward shift of the demand and supply curve.

there would be a rise in equilibrium quantity and an indeterminate effect on equilibrium price.

Explanation:

if the supply and demand of bottled water rises, there would be a rightward shift of the demand and supply curve.

a rise in the demand leads to a rise in price and quantity.

a rise in supply leads to a rise in quantity and a fall in price

the combined effect would lead to a rise in quantity and an indeterminate effect on price.

QUCIK!! How do you merge an excel sheet with a word document??

Answers

Explanation:

Instead of a mail merge from Excel to Word, you can simply copy and paste the excel sheet from excel to word directly, the worse case is to do some small editing and formatting, or you can decide to keep source formatting all this are prompt you will get to encounter when performing the operation

Since the middle of the 20th century, the international global business system has been shaped by global institutions. Countries have established these institutions to address the global issues that span their borders. The functions of these organizations have been established in international treaties. International businesses need to be aware of the functions of these organizations as they can have a profound impact on trade and commerce.
It is critical for businesses to understand the responsibilities of each organization as well as the rationale for its creation.
Match the description with the correct organization.
1. UN
2. GTO
3. WTO
4. Bretton Woods Institutions
5. GATT
A. The IMF and World Bank were created in 1944 by 44 nations that met to maintain order in the international monetary system and promote economic growth.
B. As much as 70 percent of its work is devoted to establishing higher standards of living, full employment, and conditions of economic and social progress and development.
C. A series of treaties that reduced barriers to trade.
D. Primarily responsible for policing world trade system.
E. Finance ministers and central bank governors of major economies coordinate policy on global financial crises.

Answers

Answer:

1. UN - As much as 70 percent of its work is devoted to establishing higher standards of living, full employment, and conditions of economic and social progress and development.

The United Nations was founded in 1945 as a medium to coordinate human efforts on a global scale. They pursue through their subsidiary organizations, the welfare of humanity amongst other things.

2. GTO - Finance ministers and central bank governors of major economies coordinate policy on global financial crises.

Formed by 20 leading economies, the GTO was formed to combat the effects of the 2008 financial crises.

3. WTO - Primarily responsible for policing world trade system.

WTO regulates trade in the world to make it easier to transact.

4. Bretton Woods Institutions - The IMF and World Bank were created in 1944 by 44 nations that met to maintain order in the international monetary system and promote economic growth.

5. GATT - A series of treaties that reduced barriers to trade.

The General Agreement on Tariff and Trade (GATT) is a treaty between over 140 nations in which they agree to make trade easier by reducing barriers and adhering to Internation best practices.

You find that the bid and ask prices for a stock are $14.25 and $15.45, respectively. If you purchase or sell the stock, you must pay a flat commission of $30. If you buy 100 shares of the stock and immediately sell them, what is your total implied and actual transaction cost in dollars

Answers

Answer:

$180

Explanation:

The bid price of a stock is $14.25

The ask-price of a stock is $15.45

A flat commission of $30 must be paid in the stock

100 shares of stock are bought

Therefore, the total implied and actual transaction costs can be calculated as follows

= Commission+(ask price-bid price)×number of shares

= 30×2+($15.45-$14.25)×100

= 60+ 1.2×100

= 60+120

= $180

Hence the total implied and actual transaction cost is $180

Here are the comparative income statements of Ivanhoe Corporation. IVANHOE CORPORATION Comparative Income Statement For the Years Ended December 31 2022 2021 Net sales $624,100 $523,300 Cost of goods sold 462,100 405,800 Gross Profit 162,000 117,500 Operating expenses 72,300 44,300 Net income $ 89,700 $ 73,200 (a) Prepare a horizontal analysis of the income statement data for Ivanhoe Corporation, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.)

Answers

Answer:

                                      2022         2021         Change     % Change

Net sales                    624,100     523,300      100,800         19.23%

Cost of goods sold    462,100     405,800       56,300         13.87%

Gross profit                162,000       117,500       44,500         37.87%

Operating exp.            72,300       44,300       28,000          63.21%

Net Income                 89,700        73,200        16,500        22.54%

Since we are using the 2021 income statement as base year, any change will be calculated by dividing the total change by the 2021 amount, and then multiply by 100 to get the %.

Gates Appliances has a return-on-assets (investment) ratio of 13 percent. a. If the debt-to-total-assets ratio is 25 percent, what is the return on equity? (Input your answer as a percent rounded to 2 decimal places.) b. If the firm had no debt, what would the return-on-equity ratio be? (Input your answer as a percent rounded to 2 decimal places.)

Answers

Answer:

a. Return on Equity refers to how much income the company earned per dollar of investment. One formula for the Return on Equity is;

Return on Equity = Return on Assets * [tex]\frac{Total Assets}{ 1 - ( Debt/Assets)}[/tex]

Assuming assets are $1 this can be calculated by;

= 13% * [tex]\frac{1}{1 - 0.25}[/tex]

= 17.33%

b. If there is no debt then the Return on Investment will be the same as the return on Equity. However, proving it with the formula gives;

Return on Equity = Return on Assets * [tex]\frac{Total Assets}{ 1 - ( Debt/Assets)}[/tex]

= 13% * [tex]\frac{1}{1 -0}[/tex]

= 13%

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