Answer:
6.85%
Explanation:
Mean = 575,234
Standard deviation = 10,245
Project will be successful when PV > 560,000
For not getting success, PV < 560,000
P (X < 560,000) = P (Z < (560,000-575,234)/10,245)
P (X < 560,000) = P (Z < -1.48697)
P (X < 560,000) = 0.0685
P (X < 560,000) = 6.85%
Therefore, the chance that the project will NOT succeed is 6.85%
Dragon makes all sales on account, subject to the following collection pattern: 30% are collected in the month of sale; 60% are collected in the first month after sale; and 10% are collected in the second month after sale. If sales for June, July, and August were $120,000, $160,000, and $220,000, respectively, what were the firm's budgeted collections for August and the company's budgeted receivables balance on August 31?
Answer: $174000
Explanation:
The firm's budgeted collections for August and the company's budgeted receivables balance on August 31 would be calculated as:
= (30% × $220,000) + (60% × $160,000) + (10% × $120,000)
= (0.3 × $220,000) + (0.6 × $160,000) + (0.1 × $120,000)
= $66000 + $96000 + $12000
= $174000
Vaughn Company made a purchase of merchandise on credit from Ivanhoe Company on August 8, for $8900, terms 2/10, n/30. On August 17, Vaughn makes the appropriate payment to Ivanhoe. The entry on August 17 for Vaughn Company is: Accounts Payable 8900 Purchase Returns and Allowances 178 Cash 8722 Accounts Payable 8900 Cash 8900 Accounts Payable 8722 Cash 8722 Accounts Payable 8900 Inventory 178 Cash 8722
Answer:
Accounts Payable 8900 Inventory 178 Cash 8722
Explanation:
The journal entry is shown below:
Accounts payable $8,900
To inventory $178 ($8,900 × 2%)
To Cash $8,722
(Being the payment is recorded)
Here the account payable is debited as it decreased the liabilities and the inventory and cash is credited as it also decreased the assets
Therefore the last option is correct
Determine the type of activity for each of the scenarios described below Received cash dividends from investments in securities. [ Select ] Collected accounts receivable from customers. [ Select ] Issued bonds payable for cash. [ Select ] Paid wages to employees. [ Select ] Issued stock for cash. [ Select ] Sold equipment for cash. [ Select ] Paid cash dividends. [ Select ] Purchases of land for cash. [ Select ]
Answer:
Scenarios Type of activity
Received cash dividends from OPERATING Activity
investments in securities.
Collected accounts receivable OPERATING Activity
from customers.
Issued bonds payable for cash. FINANCING Activity
Paid wages to employees. OPERATING Activity
Issued stock for cash. FINANCING Activity
Sold equipment for cash. INVESTING Activity
Paid cash dividends. FINANCING Activity
Purchases of land for cash. INVESTING Activity
In 2010, the $471 billion deficit on the U.S. current account was offset by a surplus of $255 billion on financial account. This difference is the result of:_________.
A. budget deficit.
B. statistical discrepancy.
C. trade deficit.
D. national debt.
Answer:
B. statistical discrepancy.
Explanation:
Since it is mentioned that the $471 million represents the deficit in the US current account i.e. counterbalanced by a surplus of $255 billion
So here the difference represents the statistical discrepancy
Therefore as per the given situation, the correct option is B
And, the rest of the options are wrong
In September 2008, the stock market fell sharply and continued to perform poorly due to the financial crisis. How did this change impact GDP in the economy?
Answer:
Many people's wealth is held in stocks and as the price of stocks collapsed, they lost wealth.
Imagine that this happened to you. One day you are rich and that affects your spending habits. In a matter of few days or weeks, you lose a large portion of your wealth. So now, you are less rich or even poor. So your spending habits will be altered, i.e. you will spend less.
If you consider the economy as a whole, aggregate demand will fall, resulting in a decrease of aggregate supply, and an overall decrease of the GDP.
Last year's sales revenues at Coffee Connection were $27,000, and the cost
of sales was $24,840. What was Coffee Connection's gross profit margin last
year, expressed as a percentage?
A. 9%
B. 27%
C. 92%
D. 8%
Answer: it’s 8%
Explanation:
just took the test
Pepe, Incorporated acquired 60% of Devin Company on January 1, 2018. On that date Devin sold equipment to Pepe for $45,000. The equipment had a cost of $120,000 and accumulated depreciation of $66,000 with a remaining life of 9 years. Devin reported net income of $300,000 and $325,000 for 2018 and 2019, respectively. Pepe uses the equity method to account for its investment in Devin.What is the consolidated gain or loss on equipment for 2018
Answer: $9000
Explanation:
Based on the values given in the question, the consolidated gain or loss on equipment for 2018 would be calculated as:
Cost of equipment = $120,000
Less accumulated depreciation = $66,000
Less: Amount Devin sold equipment to Pepe = $45,000
Consolidated loss= $120,000 - $66000 - $45000
= $9000
Kellogg Co. (K) recently earned a profit of $2.22 earnings per share and has a P/E ratio of 19.35. The dividend has been growing at a 6 percent rate over the past few years. If this growth rate continues.
Required:
a. What would be the stock price in four years if the P/E ratio remained unchanged?
b. What would the price be if the P/E ratio declined to 16 in four years?
Answer and Explanation:
The computation is shown below:
The following formula should be used
= P/E ratio × EPS × (1 + growth rate)^n umber of years
a. The stock price in four years is
= $19.35 × $2.22 × (1 + .06)^4
= $54.23
b. The stock price in four years in the case when the P/E ratio fall to 16
= $16 × $2.22 × (1 + .06)^4
= $44.84
We simply applied the above formula so that the correct price could come
And, the same is to be considered
Which of the following scenarios BEST illustrates the role of money as a medium of exchange?
A
Jane writes a $600 check to pay her rent.
B
Jane has a $500 balance on her credit card.
C
Jane puts 5% of her income into savings each month.
D
Jane uses her investments as collateral for a business loan.
Answer:it’s A
Explanation: I just took a test with this question
Scenarios that best illustrates the role of money as a medium of exchange is Jane writes a $600 check to pay her rent. Option (a) is correct.
What do you mean by Exchange?Giving or receiving something in exchange for another is known as an exchange.
As a means of exchange, money makes transactions for goods and services easier. Producers trade money for the products they sell to wholesalers. Retailers then sell the goods to consumers in exchange for money from wholesalers, who in turn sell their products to them.
The first function of money is that it is a medium of trade, which implies that it works as a go-between for buyers and sellers. The accountant now trades accounting services for money instead of shoes when they were first introduced.
Therefore, Option (a) is correct. Scenarios that best illustrates the role of money as a medium of exchange is Jane writes a $600 check to pay her rent.
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Bramble Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 4 boxtops from Bramble Frosted Flakes boxes and $2. The company estimates that 60% of the boxtops will be redeemed. In 2021, the company sold 809000 boxes of Frosted Flakes and customers redeemed 352000 boxtops receiving 88000 bowls. If the bowls cost Bramble Company $4 each, how much liability for outstanding premiums should be recorded at the end of 2021
Answer: $66700
Explanation:
Number of boxtops that was sold = 809000
Estimated boxtops to be redeemed = 809,000 × 60% = 485400
Less: Boxtops received = 352000
Estimated boxtops not received yet = 133400
The number of boxtops that will be needed per bowl will then be:
= 133400 / 4
= 33350
Therefore, liability for outstanding premiums that should be recorded at the end of 2021 would be:
= 33350 × ($4 - $2)
= 33350 × $2
= $66700
Journalize Period Payroll The payroll register of Castilla Heritage Co. indicates $1,860 of social security withheld and $465 of Medicare tax withheld on total salaries of $31,000 for the period. Federal withholding for the period totaled $5,270. Retirement savings withheld from employee paychecks were $2,500 for the period. Provide the journal entry for the period's payroll. If an amount box does not require an entry, leave it blank.
Answer:
Details Debit Credit
Salary Expense $31,000
Social Security Tax Payable $1,860
Medicare Tax Payable $ 465
Federal Withholding Tax Payable $5,270
Retirement Savings/ Contribution Payable $2,500
Salary Payable $41,095
TEN POINTS! Fairfield is a small, rural town in the countryside of Pennsylvania. The three biggest stores there are a natural foods shop, a sporting goods shop, and an organic bakery. Which two shops are most likely in competition with each other? The natural foods shop and the sporting goods shop The natural foods shop and the organic bakery The organic bakery and the sporting goods shop They are all in equal competition
Answer:
The Natural Foods Shop and The Bakery
Explanation:
These two stores sell like goods (food) while the sporting goods doesn't sell food
Answer:
the natural food shop and the bakery
Kim's Bridal Shoppe has 10,200 shares of common stock outstanding at a price of $36 per share. It also has 215 shares of preferred stock outstanding at a price of $87 per share. There are 520 bonds outstanding that have a coupon rate of 5.5 percent paid semiannually. The bonds mature in 17 years, have a face value of $1,000, and sell at 93 percent of par. What is the capital structure weight of the common stock?
Answer:
26.43 %
Explanation:
The Capital Structure is based on the Market Weight of the Sources of Finance as shown below :
Equity market value = Number of shares × price/share
Equity market value = 10,200 × $36
Equity market value = $367,200
Current debt value = Number of bonds × price/bond
Current debt value = 520 × (1930)
Current debt value = $1,003,600
Preferred stock value = Number of shares × price/share
Preferred stock value = 215 × $87
Preferred stock value = $18,705
Total capital = Common equity value + Debt value + Preferred stock value
Total capital = $367,200 + $1,003,600 + $18,705
Total capital = $1,389,505
Weight of Equity = Equity value / Total capital
Weight of Equity = $367,200 / $1,389,505
Weight of Equity = 26.43 %
The buck store is considering a project that will require additional inventory of 216,000 and will increase accounts payable by 181,000. accounts receivable are currently 525,000 and are expected to increase by 9% if this project is accepted. what is the projects initial cash flow for net working capital?
a. -$82,250b. -$12,250c. $12,250d. $36,250e. $44,250
Answer:
a. -$82,250
Explanation:
Calculation for what is the projects initial cash
flow for net working capital
Initial cash flow=-$216,000 + $181,000 - ($525,000 *0.09)
Initial cash flow=-$216,000 + $181,000 - $47,250
Initial cash flow = - $82,250
Therefore the projects initial cash
flow for net working capital will be - $82,250
An investor is bearish on a particular stock and decided to buy a put with a strike price of $44. Ignoring commissions, if the option was purchased for a price of $.93, what is the break-even point for the investor
Answer:
$43.07
Explanation:
Strike price of Put Option = $44
Option purchased price = $0.93
Break-even point for the investor = [Strike price - Put Option purchased price}
= $44 - $0.93
= $43.07
Therefore, the Break-even point for the investor is $43.07
Exeter has a materials standard of 1 pound per unit of output. Each pound has a standard price of $25 per pound. During July, Exeter paid $138,000 for 5,040 pounds, which it used to produce 4,780 units. What is the direct materials price variance?
Answer:
$19,595 unfavorable
Explanation:
The computation of direct material price variance is shown below;
= (Actual price - Standard price) × Actual quantity used
Given that;
Actual price = $138,000/4,780 units
= $28.87 × 1 pound
= $28.87 per pound
Actual quantity used = 4,780 units
Standard price = $25 per pound
= ($28.87 per pound - $25 per pound) × 4,780 units
= ($3.87 per pound) × 5,040 pounds
= $19,595 unfavorable
The direct material price variance is unfavorable because actual price is more than standard price.
A firm has an equity multiplier of 1.57, an unlevered cost of equity of 14 percent, a levered cost of equity of 15.6 percent, and a tax rate of 40 percent. What is the cost of debt
Answer:
10.45 %
Explanation:
Calculation for What is the cost of debt
Using this formula
Levered cost of equity=Unlevered cost of equity+Equity multiplier(1-Tax rate)(Unlevered cost of equity-Cost of debt)
Let plug in the formula
.156 = .14 + .57(1 −.21)(.14 − Cost of debt )
.156 = .14 + .57(.79)(.14 − Cost of debt )
Cost of debt= .1045 *100
Cost of debt= 10.45%
Note that equity multiplier of 1.57 -1 will give us .57
Therefore the cost of debt will be 10.45%
Nikoto Steel Co. budgeted manufacturing costs for 50,000 tons of steel are:Fixed manufacturing costs $50,000 per monthVariable manufacturing costs $12.00 per ton of steelNikoto produced 40,000 tons of steel during March. How much is the flexible budget for total manufacturing costs for March?a) $520,000b) $650,000c) $480,000d) $530,000
Answer:
d) $530,000
Explanation:
The computation of the total manufacturing cost for the march month is shown below
= Fixed manufacturing cost + (produced tons × variable manufacturing cost per ton)
= $50,000 + (40,000 Tons × $12.00 per ton)
= $50,000 + $480,000
= $530,000
hence, the total manufacturing cost for the march month is $530,000
Therefore the correct option is d.
A firm has a tax burden of 0.6, a leverage ratio of 1.2, an interest burden of 0.7, and a return-on-sales ratio of 14%. The firm generates $2.64 in sales per dollar of assets. What is the firm's ROE
Answer:
18.63%
Explanation:
Calculation for the firm's ROE
Using this formula for
ROE=(Tax burden)(Leverage ratio)(Interest burden)(Return-on-sales ratio)(Sales per dollar of assets)
Let plug in the formula
ROE = (.6)(1.2)(.7)(.14)(2.64)
ROE=18.63%
Therefore the firm's ROE is 18.63%
what compiles customer information from a variety of sources and segments the information for different
Answer:
List generator.
Explanation:
List generator compiles customer information from a variety of sources and segments the information for different marketing campaigns.
Basically, this information are used to provide a good, effective and efficient marketing mix.
Generally, a marketing mix is made up of the four (4) Ps;
1. Products: this is typically the goods and services that gives satisfaction to the customer's needs and wants. They are either tangible or intangible items.
2. Price: this represents the amount of money a customer buying goods and services are willing to pay for it.
3. Place: this represents the areas of distribution of these goods and services for easier access by the potential customers.
4. Promotions: for a good sales record or in order to increase the number of people buying a product and taking services, it is very important to have a good marketing communication such as advertising, sales promotion, direct marketing etc.
What are the differences between the five-stage model of team development and the punctuated equilibrium model?
Answer: The five stage model of a team Development include; forming, storming, norming, performing and adjourning, Punctuated Equilibrium, suggest there are no steps, just 2 phases during research.
Explanation:
The five stage model of a team Development include; forming, storming, norming, performing and adjourning.
Forming involves acquittance with the members, understand scope of the project and establish good relationships.
Storming involves members accepting they're part of the project group and resist constraint on individualism.
In norming, the group establishes how they can work together.
Performing is being functional
Adjsuting, the team prepares for high disbandment
Punctuated Equilibrium, suggest there are no steps, just 2 phases during research.
Discretionary costs have two important features. The first feature arises from periodic decisions regarding the maximum amount to be incurred. The second feature is it has no measurable cause-and-effect relationship between output and ________.
a. resources available
b. discrete differences in sales volume
c. market costs
d. resources used
Answer:
d. resources used
Explanation:
Discretionary cost is simply a cost derived from discretionary expenses. It is the cost with which a business or household can do withoit. Discretionary expenses are usually nonessential spending in nature as it is usually wants rather than needs. , Discretionary are simply non-essential expenses. They are expenses for things we don't need e.g eating out, gifts and others.
Using the dividend growth model, explain why a firm would be hesitant to reduce the growth rate of its dividends.
Answer:
If a firm decreases its sustainable growth rate (g), the price of their stock will probably decrease. I will use the following example:
P₀ = Div₁ / (Re - g)
Div₁ = $2Re = 12%g = 5%P₀ = $2 / (12% - 5%) = $28.57
if the growth rate g decreases to 2%, and the rest remains unchanged, then
P₀ = $2 / (12% - 2%) = $20
Brace Corporation uses direct labor-hours as the cost driver in its normal costing system. Brace budgeted that it would use 21,600 direct-labor hours during the year. At the end of the year, actual direct labor-hours for the year were 20,400 hours, the actual manufacturing overhead for the year was $506,920, and Brace had $20,440 of underapplied overhead. The budgeted manufacturing overhead must have been: Round to the nearest dollar.
Answer:
total estimated overhead costs for the period= $515,095.2
Explanation:
First, we need to calculate the allocated overhead:
Under/over applied overhead= real overhead - allocated overhead
20,440 = 506,920 - allocated overhead
allocated overhead= $486,480
Now, we can determine the predetermined overhead rate:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
486,480= Estimated manufacturing overhead rate*20,400
Estimated manufacturing overhead rate= 486,480/20,400
Estimated manufacturing overhead rate= $23.847 per direct labor hour
Finally, the estimated overhead for the period:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
23.847= total estimated overhead costs for the period/21,600
total estimated overhead costs for the period= 21,600*23.847
total estimated overhead costs for the period= $515,095.2
How does money function as a medium of exchange?
A. It allows people to more easily buy and sell products
B. It holds its value over time or when transferred.
C It holds its value over time or when transterred
D. It has a value determnined by the government
Answer:
A
Explanation:
Prior to money people bartered goods
The money function as a medium of exchange as it allows people to more easily buy and sell products.
What is a medium of exchange?Any item that is commonly accepted in exchange for goods and services is referred to as a medium of exchange.
Currency or money is the most widely utilized medium of exchange in modern economies, and money serves as a medium of exchange by making it easier for people to buy and sell goods.
Therefore, option A is correct.
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Suppose that Congress enacts a major tax increase. At the same time, the Federal Reserve uses monetary policy in such a way that the combined effect of the tax increase and the monetary policy is that GDP does not change at all. Based on this information, explain clearly what the overall (short-run) effect?
Answer:
Since GDP does not change, it means that Federal Reserve System undertook expansionary monetary policy to counteract the contractionary fiscal policy.
a. Investment - Expansionary monetary policy means fall in interest rate, so investment would rise.
b. The net effect would be that AD curve would not have changed (since output is constant), so price level remains the same.
c. Government would get surplus as government spending is same but tax revenue rose.
Controlling is the process of assuring actual activities conform to planned activities. With an example, discuss five (5) importance of controlling.
Answer:
Controlling is the process of assuring actual activities conform to planned activities with five examples are discussed below in details.
Explanation:
Planning and controlling are intimately associated. Controlling is further pervasive than planning. Controlling benefits managers observe the effectiveness of their planning, formation, and managing activities. It not only assists in maintaining a record on the development of activities but also guarantees that activities adhere to the measures set in approach so that organizational aims are achieved.
Based on the constant demand assumption in the economic order quantity (EOQ) model, the average cycle inventory is: Question 20 options: the order quantity divided by the number of inventory cycles per year. the annual demand divided by the number of inventory cycles per year. half of the order quantity. half of the annual usage.
Answer:
c. half of the order quantity
Explanation:
Based on the constant demand assumption in the economic order quantity (EOQ) model, the average cycle inventory is half of the order quantity
Economic order quantity is a quantity which minimizes the ordering cost and holding cost
Q = EOQ = [tex]\sqrt{2*D*S/ H}[/tex] where D = Demand unit, S = Order cost and H = Holding cost
- Ordering cost and the Holding at EOQ will be same
- Average inventory = Q/2
- Average inventory is the half of the order quantity.
Baker is single and earned $225,200 of salary as an employee in 2018. How much should his employer have withheld from his paycheck for FICA taxes? (Rounded to the nearest whole dollar amount)
A) $11,453
B) $10,861
C) $10,415
D) $15,892
Answer: $11,453
Explanation:
In 2008:
FICA-Social Security tax was payable at 6.2% of a limit of $128,400.
FICA-Medicare tax was payable at 1.45% of the total amount of $225,200.
Additional Medicare tax was payable on any amount in excess of $200,000 at 0.9%.
= (6.2% * 128,400) + (225,200 * 1.45%) + ( (225,200 - 200,000) * 0.9%))
= $11,453
Marin Company's accounts receivable arising from sales to customers amounted to $131000 and $114000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $498000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is
Answer:
$481,000
Explanation:
To determine the cash flows from operating activities, the net Income for the year must be adjusted by non - cash items and changes in working capital items.
Therefore, given a decrease in Accounts Receivable $17,000 ($131000 - $114000) . Then the cash flows from operating activities to be reported on the statement of cash flows is $481,000 ($498000 - $17,000) .