Answer:
Velcro World
1. Prefered stock issued = 5,800,000
2. Common stock issued = 28,000,000
3. Average price of preferred stock = $38
4. Net income for the year = $66
5. Average cost per share of the treasury stock acquired = $30
Explanation:
a) Data and Calculations:
VELCRO WORLD
Balance Sheet (partial)
($ and shares in thousands)
Stockholders' equity:
Preferred stock, $1 par value $ 5,800
Common stock, $1 par value 28,000
Additional paid-in capital 1,028,600
Total paid-in capital 1,062,400
Retained earnings 286,000
Treasury stock, 12,000 (360,000)
Total stockholders' equity $ 988,400
1. Prefered stock issued = 5,800,000
2. Common stock issued = 28,000,000
3. Additional paid in capital = 1,028,600,000
less common stock (part) 812,000,000 ($29 * 28,000,000)
Preferred stock (part) 216,600,000
add Preferred stock 5,800,000
Total preferred stock value 222,400,000
Average price = 222,400,000/5,800,000 = $38
4. Retained earnings at the end = $286,000,000
add dividends paid during the year 30,000,000
Retained earnings at the beginning = $250,000,000
Net income for the year = $66,000,000
$66
5. Average cost per share of the treasury stock acquired = $360,000,000/12,000,000 = $30
In its first year of operations, Crane Company recognized $29,500 in service revenue, $6,100 of which was on account and still outstanding at year-end. The remaining $23,400 was received in cash from customers. The company incurred operating expenses of $15,500. Of these expenses, $12,010 were paid in cash; $3,490 was still owed on account at year-end. In addition, Crane prepaid $2,300 for insurance coverage that would not be used until the second year of operations.
1. Calculate the first year's net earnings under the cash basis of accounting, and the first year's net earnings under the accrual basis of accounting. 2. Which basis of accounting (cash or accrual) provides more useful information for decision-makers?
Answer: See explanation
Explanation:
1. Calculate the first year's net earnings under the cash basis of accounting, and the first year's net earnings under the accrual basis of accounting.
The first year's net earnings under the cash basis of accounting will be:
Service revenue = $23400
Less: Expenses = $14310
Net income = $9090
The first year's net earnings under the accrual basis of accounting will be:
Service revenue = $29500
Less: Expenses = $15500
Net income = $14000
2. Which basis of accounting (cash or accrual) provides more useful information for decision-makers?
It should be noted that the accrual basis of accounting gives decision makers more useful information. This is due to the fact that the decision makers will probably want to know the revenue and the expenses that were incurred for a particular period and every other necessary details.
if a co worker asks for help with something but you're busy finishing a task, what should you say? A I have to finish this but I'm happy to help when I'm finished B I can't help you today C I'm busy can you ask someone else
Answer:
A
Explanation:
it shows that you still value the co worker and are still willing to help so its up to them if they wait then that means its something you can do whatever that might be but if said co worker moves on to another for help that means that they couldn't wait or it was something that needed two people, a trivial task.
how personality affect on performance of company
Personality affects all aspects of a person's performance, even how he reacts to situations on the job. This can lead to increased productivity and job satisfaction, helping your business function more efficiently.
Answer:
Personality affects all aspects of a person's performance, even how he reacts to situations on the job. Not every personality is suited for every job position, so it's important to recognize personality traits and pair employees with the duties that fit their personalities the best. This can lead to increased productivity and job satisfaction, helping your organization to function more efficiently. Personality can be seen as the motor which drives behavior. It's consistent over time and across situations, and has been proven to predict our success at work over the course of 50 or more years. The most widely accepted model of personality-the 'Big Five' model-uses five distinct scales to describe personality: conscientiousness (the extent to which one is dependable and persistent), emotional stability(one's calmness and self-control), extraversion (a measure of sociability, ambition and narcissism), agreeableness (the extent to which one is cooperative and altruistic), and openness to experience (a measure of creativity and novelty-seeking) Personality Personality is so widely studied concept by the psychologists that "personality psychology" is taken as a separate discipline of psychology.
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Brushy Mountain Mining Company's ore reserves are being depleted, so its sales are falling. Also, its pit is getting deeper each year, so its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 6% per year. What is the value of Brushy Mountain's stock (in dollars) if the company is expected to pay $4.40/share in dividend at t
The question is incomplete. The complete Question is,
Brushy Mountain Mining Company's coal reserves are being depleted, so its sales are falling. Also, environmental costs increase each year, so its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 4% per year. If D0 = $2 and rs = 17%, what is the estimated value of Brushy Mountain's stock?
Answer:
P0 = $9.1428 rounded off to 9.14
This answer is for the question above. Change the values and use the same formula if the values differ
Explanation:
The constant growth model of dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under constant growth DDM is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 * (1+g) is the dividend expected in Year 1 or next year
g is the constant growth rate in dividends
r is the discount rate or required rate of return
P0 = 2 * (1-0.04) / (0.17 + 0.04)
P0 = $9.1428 rounded off to 9.14
Present Value of Ordinary Annuity Period/Rate 5% 6% 7% 8% 9% 10 7.7217 7.3601 7.0236 6.7101 6.4177 11 8.3064 7.8869 7.4987 7.1390 6.8052 12 8.8633 8.3838 7.9427 7.5361 7.1607 13 9.3936 8.8527 8.3577 7.9038 7.4869 Knowledge Check 01 Clean Tel, Inc. is considering investing in an 11-year project with annual cash inflows of $1,000,000. These cash inflows have an initial investment of $7,139,000. At what discount rate would this present value be the same as the initial investment
Answer:
The discount rate of 8% for 11 year period provides the present value of annual cash flows to be equal to the initial investment.
Explanation:
Using the table of present value of annuity provided, we can check the rate and time period which is return the present value of cash flows from the project to be equal to initial Investment.
We are told that the Project's life is expected to be 11 Years. Thus using the 11 year period from the table we can see the following rates,
11 Year Period
Rate = 5% , Annuity Factor = 8.3064
Rate = 6% , Annuity Factor = 7.8869
Rate = 7% , Annuity Factor = 7.4987
Rate = 8% , Annuity Factor = 7.1390
Rate = 9% , Annuity Factor = 6.8052
We know that the annual cash flows from the project is $1,000,000 and we know the Initial Outlay is $7,139,000.
Multiplying the annual cash flow from the above annuity factors for each rate we can see which rate provides the present value of annual cash flows to be equal to initial outlay.
Rate = 5% , Present value = 8.3064 * 1000000 = $8,306,400
Rate = 6% , Annuity Factor = 7.8869 * 1000000 = $7,886,900
Rate = 7% , Annuity Factor = 7.4987 * 1000000 = $7,498,700
Rate = 8% , Annuity Factor = 7.1390 * 1000000 = $7,139,000
Rate = 9% , Annuity Factor = 6.8052 * 1000000 = $6,805,200
From the above calculation we can see that the rate of 8% provides the present value of annual cash flows to be equal to the initial investment.
Free Flight Corporation, located in Denver, Colorado, produces bicycle accessories, including bicycle helmets which requires a rigid, crushable foam. During the quarter ending June 30, the company manufactured 3,800 helmets, using 2,736 kilograms of foam. The foam cost the company $18,058. According to the standard cost card, each helmet should require 0.66 kilograms of foam, at a cost of $7.00 per kilogram.
Required:
1. What is the standard quantity of kilograms of foam (SQ) that is allowed to make 3,800 helmets?
2. What is the standard materials cost allowed (SQ * SP) to make 3,800 helmets?
3. What is the materials spending variance?
4. What is the materials price variance and the materials quantity variance?
(For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.)
1. Standard quantity of kilograms allowed
2. Standard cost allowed for actual output
3. Materials spending variance
4. Materials price variance
Materials quantity variance
Answer:
1. Standard quantity of kilograms allowed 2508kg
2. Standard cost allowed for actual output $17,556
3. Materials spending variance $502 Unfavorable
4. Materials price variance $1094Favorable
Materials quantity variance $1596 unfavorable
Explanation:
1. Calculation to determine the standard quantity of kilograms of foam
Standard quantity of kilograms allowed = 0.66*3800
Standard quantity of kilograms allowed =2508kg
2. Calculation to determine the standard materials cost allowed
Standard cost allowed for actual output = 2508kg *7
Standard cost allowed for actual output=$17,556
3. Calculation to determine the materials spending variance using this formula
Material spending variance = Standard cost - Actual cost
Let plug in the formula
Material spending variance= $17,556- $18,058
Material spending variance= $502 Unfavorable
4. Calculation to determine the materials price variance and the materials quantity variance
Material price variance = (7- $18,058/2,736)*2,736
Material price variance = $1094Favorable
Material quantity variance =(2508kg-2,736)*7
Material quantity variance= $1596 unfavorable
Therefore:
1. Standard quantity of kilograms allowed 2508kg
2. Standard cost allowed for actual output $17,556
3. Materials spending variance $502 Unfavorable
4. Materials price variance $1094Favorable
Materials quantity variance $1596 unfavorable
S14-12 Book Value versus Market Value [LO3] Dinklage Corp. has 7 million shares of common stock outstanding. The current share price is $68, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $70 million, a coupon rate of 6 percent, and sells for 97 percent of par. The second issue has a face value of $40 million, a coupon rate of 6.5 percent, and sells for 108 percent of par. The first issue matures in 21 years, the second in 6 years. Both bonds make semiannual payments. a. What are the company's capital structure weights on a book value basis
Answer:
A. .6627
B. .1892
Explanation:
A. Calculation to determine the company's capital structure weights on a book value basis
First step is to calculate the book value weights of equity
Book value weights of equity = $7,000,000($8)
Book value weights of equity = $56,000,000
Second step is to calculate the Book value weights of debt
Book value weights of debt = $70,000,000 + 40,000,000
Book value weights of debt = $110,000,000
Third step is to calculate the total value of the company
Total value = $56,000,000 + 110,000,000
Total value = $166,000,000
Fourth step is to calculate the book value weights of equity and debt
Book value weights of equity and debt = $56,000,000/$166,000,000
Book value weights of equity and debt = .3373
Now let calculate capital structure weights on a book value basis using this formula
Capital structure weights on a book value basis= 1 - Book value weights of equity and debt
Let plug in the formula
Capital structure weights on a book value basis=1-.3373
Capital structure weights on a book value basis= .6627
Therefore the company's capital structure weights on a book value basis is .6627
B. Calculation to determine the company's capital structure weights on a market value basis
First step is to calculate the Market Value of Equity
Market Value of Equity = 7,000,000($68)
Market Value of Equity = $476,000,000
Second step is to calculate the Market Value of debt
Market Value of debt = .97($70,000,000) + 1.08($40,000,000)
Market Value of debt = $111,100,000
Third step is to calculate the total market value of the company
Total market value = $476,000,000 + 111,100,000
Total market value = $587,100,000
Fourth Step is to calculate the market value weights of equity and debt
Market value weights of equity and debt = $476,000,000/$587,100,000
Market value weights of equity and debt = .8108
Now let calculate capital structure weights on a market value basis
Using this formula
Capital structure weights on a market value basis = 1 - Market value weights of equity and debt
Let plug in the formula
Capital structure weights on a market value basis =1-.8108
capital structure weights on a market value basis = .1892
Therefore the company's capital structure weights on a market value basis is .1892
Saul is a manager at Holden Apparels Inc. and is friends with the company's CEO. This privilege gives Saul the information that Holden Apparels is in the midst of talks to take over a leading rival. Saul buys stocks of Holden with the expectation that its stocks will appreciate. But the deal falls through and the stocks of Holden depreciate in the following months. Are Saul's actions unethical
Answer:
D) Yes, because it is unethical to trade stocks based on insider information
irrespective of the final outcome.
Explanation:
THIS ARE THE OPTIONS FOR THE QUESTION;
A) Yes, because it is illegal and unethical for Saul to possess any kind of insider
information.
B) No, because Saul did not make any profits from trading stocks using this
information.
C) No, because Saul did not ask the CEO to disclose such information to him.
D) Yes, because it is unethical to trade stocks based on insider information
irrespective of the final outcome.
From the question,we are told about Saul who is a manager at Holden Apparels Inc. and is friends with the company's CEO. This privilege gives Saul the information that Holden Apparels is in the midst of talks to take over a leading rival. Saul buys stocks of Holden with the expectation that its stocks will appreciate. But the deal falls through and the stocks of Holden depreciate in the following months. In this case, Saul's actions are unethical
because it is unethical to trade stocks based on insider information irrespective of the final outcome. Stock trading can be regarded as buying as well as selling of shares in a specific company. Unethical behavior in stock market are actions that falls outside morally right practice/trading in stock market. Unethical trading of stock could be a process of purchasing shares in particular firm that engages herself in some questionable operational as well as recruitment activities. In some cases it should be noted that stocks trading could be unethical as a result of trader engaging in trading because they are getting information from insider in order to influence their trading.
assess the way in which a business would benefit from a low interest rate 6 mark
Answer:
one way that a business would benefit from a low intrest rate is that there will be more customer because the borrowing rate is low
Explanation:
On January 1, 2021 Rastell Co signed a long term finance lease for an office building. The terms of the lease required Rastall to pay 16,000 annually beginning December 31, 2021 and continuing each year for 16 years. On January 1, 2021 the present value of the lease payments is 151, 146 discounted at the 7% interest rate implicit in the lease In Rastall’s December 31, 2021, balance sheet, the lease payable should be:
a. $109,200
b. $112,679
c. $221,000
d. $95,679
Answer:
$145,726
Explanation:
Note: The options to this question belongs to another question entirely and that is attached as picture. So, the correct answer is not among the 4 options
Interest expense = Present value of lease payment * Interest rate
Interest expense = $151,146 * 7%
Interest expense = $10,580.22
Particulars Amount
Present value of lease payment $151,146
Add: Interest expense $10.580
Less: Annual Payments ($16,000)
Lease Payable on December 31, 2021 Balance Sheet $145,726
A coal-fired power plant can produce electricity at a variable cost of $0.07 per kilowatt-hour when running at its full capacity of 30 megawatts per hour, $0.16 per kilowatt-hour when running at 20 megawatts per hour, and $0.24 per kilowatt-hour when running at 10 megawatts per hour. A gas-fired power plant can produce electricity at a variable cost of $0.12 per kilowatt-hour at any capacity from 1 megawatt per hour to its full capacity of 5 megawatts per hour. The cost of constructing a coal-fired plant is $70 million, but it costs only $14 million to build a gas-fired plant.
Required:
a. Consider a city that has a peak afternoon demand of 80 megawatts of electricity. If it wants all plants to operate at full capacity, what combination of coal-fired plants and gas-fired plants would minimize construction costs?
b. How much will the city spend on building that combination of plants?
c. What will the average cost per kilowatt-hour be if you average over all 80 megawatts that are produced by that combination of plants?
Answer:
a-The construction of 2 coal-fired plants and 4 gas-fired plants will have minimum construction costs.
b-Total construction cost is $196 Million.
c-The average cost is $0.0825 per killowatt-hour.
Explanation:
a
In order to estimate the best combination of the two, consider the following linear programming model
[tex]30X+5Y\leq80\\X\geq0\\Y\geq0[/tex]
with minimizing function as [tex]70X+14Y[/tex]
This yeilds in the optimum solution of 2 coal fired plants and 4 gas fired plants with minimum construction costs.
The construction of 2 coal-fired plants and 4 gas-fired plants will have minimum construction costs.
b
The construction cost is as follows
Number of coal-fired plants=2
Number of gas-fired plants=4
Total Cost=(Cost of 1 Coal-Fired Plant*Number of coal-fired plants)+(Cost of 1 Gas-Fired Plant*Number of gas-fired plants)
[tex]\text{Total Cost}=(70\times 2)+(14\times4)\\\text{Total Cost}=140+56\\\text{Total Cost}=\$196 \text{Million}[/tex]
Total construction cost is $196 Million.
c
Average Cost of Electrici[tex]\text{Average Cost}=\text{Fraction of Coal-Fired}\times\text{Cost of Coal-Fired}+\text{Fraction of Gas-Fired}\times\text{Cost of Gas-Fired}\\\text{Average Cost}=\text{0.75}\times\text{0.07}+\text{0.25}\times\text{0.12}\\\text{Average Cost}=\$0.0525+\$0.03\\\text{Average Cost}=\$0.0825[/tex]ty production is given by estimating the share of electricity produced by coal-fired plants and gas-fired plants
Total energy=80 MW
Energy produced by Coal-Fired Plants at full capacity=2*30=60 MW
Energy produced by Gas-Fired Plants at full capacity=4*5=20 MW
Fraction of Coal-Fired Plants is given as
[tex]\dfrac{\text{Coal-Fired Share}}{\text{Total Energy}}=\dfrac{60}{80}=0.75[/tex]
Fraction of Gas-Fired Plants is given as
[tex]\dfrac{\text{Gas-Fired Share}}{\text{Total Energy}}=\dfrac{20}{80}=0.25[/tex]
Cost of Producing KW-hr by Coal-Fired Plant is $0.07
Cost of Producing KW-hr by Gas-Fired Plant is $0.12
So
[tex]\text{Average Cost}=[\text{Fraction}_{Coal-Fired}\times\text{Cost per KW-hr}_{Coal-Fired}]+[\text{Fraction}_{Gas-Fired}\times\text{Cost per KW-hr}_{Gas-Fired}]\\\text{Average Cost}=(0.75\times0.07)+(0.25\times0.12)\\\text{Average Cost}=(0.0525)+(0.03)\\\text{Average Cost}=\$0.0825[/tex]The average cost is $0.0825 per killowatt-hour.
What are some tasks commonly performed in Facility and Mobile Equipment Maintenance jobs? Check all that apply.
testing vehicles to identify problems
cleaning vehicles and equipment
analyzing the flow of traffic
communicating with customers
steering and navigating vehicles
documenting information
Answer:
A,B,D,F
is correct
Explanation:
can anyone share important questions on Managerial Information Systems??
i need it for preparing
for my exams
Explanation:
(1) designing systems that are competitive and efficient; (2) understanding the system requirements of a global business environment; (3) creating an information architecture that supports the organization's goals; (4) determining the ...
State income taxes paid$2,000 Mortgage interest on her personal residence9,000 Points paid on purchase of her personal residence1,000 Deductible contributions to her IRA3,000 Uninsured realized casualty loss (in a Federal disaster area)6,000 Tax preparation fees for her prior year income tax return400 What amount may Jordan claim as itemized deductions on her current-year income tax return
Answer:
The amount Jordan may claim as itemized deductions on her current-year income tax return is $12,900.
Therefore, the correct answer is b.$12,900.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Jordan Johnson is single and has adjusted gross income of $50,000 in the current year. Additional information is as follows:
State income taxes paid $2,000
Mortgage interest on her personal residence 9,000
Points paid on purchase of her personal residence 1,000
Deductible contributions to her IRA 3,000
Uninsured realized casualty loss (in a Federal disaster area) 6,000
Tax preparation fees for her prior year income tax return 400
What amount may Jordan claim as itemized deductions on her current-year income tax return?
a.$12,000
b.$12,900
c.$13,300
d.$15,900
b. $12,900.
Explanation of the answer is now given as follows:
The allowable deduction for personal casualty loss that occurs in a Federal disaster area has a limit to the amount by which it is higher than $100 floor and 10% of AGI which is calculated as follows:
Uninsured realized casualty loss (in a Federal disaster area) - $100 = $6,000 - $100 = $5,900
Deductible uninsured realized personal casualty loss (in a Federal disaster area) = $5,900 - ($50,000 * 10%) = $900
Therefore, we have:
Itemized deductions for the current year = State income taxes paid + Mortgage interest on her personal residence + Points paid on purchase of her personal residence + Deductible uninsured realized personal casualty loss (in a Federal disaster area) = $2,000 + $9,000 + $1,000 + $900 = $12,900
Therefore, the amount Jordan may claim as itemized deductions on her current-year income tax return is $12,900.
The correct answer is b.$12,900.
Argentina is considering constructing a bridge across the Rio de la Plata to connect its northern coast to the southern coast of Uruguay. If this bridge is constructed, it will reduce the travel time from Buenos Aires, Argentina, to Sao Paulo, Brazil, by over 10 hours and has the potential to significantly improve the flow of manufactured goods between the two countries. The cost of the new bridge, which will be the longest bridge in the world, spanning over 50 miles, will be $700 million. The bridge will require an annual maintenance of $10 million for repairs and upgrades and is estimated to last 80 years. It is estimated that 550,000 vehicles will use the bridge during the first year of operation, and an additional 50,000 vehicles per year until the tenth year. These data are based on an a toll charge of $90 per vehicle. The annual traffic for the remainder of the life of the bridge life will be 1,000,000 vehicles per year. The Argentine government requires a minimum rate of return of 9% to proceed with the project.
(a) Does this project provide sufficient revenues to offset its costs?
(b) What considerations are there besides economic factors in deciding whether to construct the bridge
Answer:
Argentine Bridge Across the Rio de la Plata
a. The project provides sufficient revenues to offset its costs.
b. Non-economic factors deciding the bridge construction include:
Social connections and enhancement of relationships
Reduction of travel time
Infrastructural development
Explanation:
a) Data and Calculations:
Reasons for constructing the bridge:
Connect northern Argentine coast to the southern coast of Uruguay
Reduce travel time from Buenos Aires to Sao Paulo by 10 hours
Improve the flow of manufactured goods between the two countries
Longest bridge in the world, spanning over 50 miles
Cost of the new bridge = $700 million
Annual maintenance cost = 800 million ($10m * 80 years)
Total cost of new bridge $1,500 million
Minimum required rate of return = 9% of $1,500 million ($135 million)
Estimated Revenue from the new bridge:
Vehicles using the bridge:
1st Year to 10th year = 550,000 each
Basic number of vehicles using the bridge = 5,500,000
Additional vehicles per year until tenth year = 50,000
Total additional vehicles = 450,000 (50,000 * 9)
Total number of vehicles using the bridge for the first 10 years = 5,950,000 (5,500,000 + 450,000)
Annual vehicular traffic from 11th year to 80th year = 1 million per year
Total from 11th to 80th year = 70 million ( 1 million * 70)
Overall vehicular traffic throughout the bridge's life = 75,950,000 (70,000,000 + 5,950,000)
Toll charge per vehicle = $90
Total revenue = $6,835,500,000 (75,950,000 * $90)
Akers Company sold bonds on July 1, 20X1, with a face value of $100,000. These bonds are due in 10 years. The stated annual interest rate is 6% per year, payable semiannually on June 30 and December 31. These bonds were sold to yield 8%. By July 1, 20X2, the market yield on these bonds had risen to 10%.
Required:
What was the bonds' market price on July 1 20x2?
Answer:
$76,620.83
Explanation:
According to the scenario, computation of the given data are as follows
Future Value (FV) = $100,000
Rate of interest = 10% yearly
Rate of interest (Rate) = 10%÷ 2 = 5% semiannually
Number of period (Nper) = 9 × 2 = 18
Face value = $100,000
Payment (pmt) = $100,000 × (6%÷2) = $3,000
By putting the value in excel present value formula, we get,
PV = $76,620.83
Attachment is attached below
Hurte-Paroxysm Products, Inc. (HP) of the United States exports computer printers to Brazil, whose currency, the reals (symbol R$) havebeen trading at R$3.40/US$. Exports to Brazil are currently 50,000 printers per year at the reals equivalent of $200 each. A strong rumor exists that the reals will be devalued to R$4.00/$ within two weeks by the Brazilian government. Should the devaluation take place, the exchange rate isexpected to remain unchanged for the foreseeable future. Based on this forecast, HP Products may either (1) maintain the same realprice and sell for fewer dollars, in which case Brazilian volume will not change, or (2) maintain the same dollar price, raise the realprice in Brazil to compensate for the devaluation, and experience a 20% drop in volume. Direct costs in the U.S. are 60% of the U.S. sales price.
Required:
a. What would be the short-run (one-year) impact of each pricing strategy?
b. Which do you recommend?
If HP maintains the same real price and same unit volume, what will be the firm's gross profits?
Answer:
Hurte-Paroxysm Products, Inc. (HP)
The short-run impact of each pricing strategy is as follows:
Alternative 1 Alternative 2
Reduce Price to $170 Maintain Price of $200
Gross profit $2,500,000 $3,200,000
Reduction in Gross Profit $1,500,000 $800,000
b. (2) maintain the same dollar price of $200, raise the real price in Brazil (to R$800 from R$680)to compensate for the devaluation, and experience a 20% drop in volume.
c. If HP maintains the same real price and same unit volume, the firm's gross profits will be $2,500,000.
Explanation:
a) Data and Calculations:
Exchange rate = R$3.40/US$
Current exports of printers per year to Brazil = 50,000
US unit price of printer in dollars = $200
Brazil unit price of printer in R$ equivalent = R$680 ($200 * R$3.40)
Unit price of printer in R$ when reals is devalued = R$800 ($200 * R$4.00)
The reduced dollar price with devaluation, when real price is maintained = $170 (R$680/R$4.00)
Before Devaluation of Brazil's Real (R$):
Sales volume 50,000
Sales revenue $10,000,000 (50,000 * $200)
Direct costs 6,000,000 (50,000 * $120)
Gross profit $4,000,000
Alternative 1 Alternative 2
Reduce Price to $170 Maintain Price at $200
Sales volume 50,000 40,000 (50,000 * 80%)
Sales revenue $8,500,000 $8,000,000 ($200 * 40,000)
Direct costs 6,000,000 4,800,000 ($120 * 40,000)
Gross profit $2,500,000 $3,200,000 ($80 * 40,000)
Direct costs = $6m ($120 * 50,000) = $4.8m ($120 * 40,000)
how can technological innovation help a company become globalised
Answer: Technology is the vital force in the modern form of business globalization. ... Technology has helped us in overcoming the major hurdles of globalization and international trade such as trade barrier, lack of common ethical standard, transportation cost and delay in information exchange, thereby changing the market place.
Explanation:
Ringmeup Inc had net income of $126,300 for the year ended December 31, 2013. At the beginning of the year, 44,000 shares of common stock were outstanding. On May 1, an additional 13,000 shares were issued. On December 1, the company purchased 4,500 shares of its own common stock and held them as treasury stock until the end of the year. No other changes in common shares outstanding occurred during the year. During the year, Ringmeup, Inc., paid the annual dividend on the 7,000 shares of 4.75%, $100 par value preferred stock that were outstanding the entire year. Calculate basic earnings per share of common stock for the year ended December 31, 2013
Answer:
$1.78
Explanation:
Basic Earnings Per Share = Earnings attributable to Common Stock Holders / Weighted Average number of shares outstanding at the end of year
Earnings attributable to common stockholders = Net Income - Preferred Stock Dividend paid in the year
Earnings attributable to common stockholders = $126,300 - ($100*4.75%*7,000 Shares)
Earnings attributable to common stockholders = $126,300 - $33,250
Earnings attributable to common stock holders = $93,050
Weighted Average number of shares outstanding at the end of year = (44,000 * 11/12) + [(44,000 - 4,500) * 1/12] + (13,000 * 8/12)
= 40,333.33 + 3,291.67 + 8,666.67
= 52,291.67
Basic Earnings Per Share = $93,050 / 52,291.67 shares
Basic Earnings Per Share = $1.78
The management accountant for Giada's Book Store has prepared the following income statement for the most current year: Cookbook Travel Book Classics Total Sales $63,000 $179,000 $60,000 $302,000 Cost of goods sold 37,000 70,000 23,000 130,000 Contribution margin 26,000 109,000 37,000 172,000 Order and delivery processing 19,000 26,000 9,000 54,000 Rent (per sq. foot used) 3,000 3,000 3,000 9,000 Allocated corporate costs 10,000 10,000 10,000 30,000 Corporate profit $ (6,000) $70,000 $15,000 $79,000 If the cookbook product line had been discontinued prior to this year, the company would have reported ________. the same amount of corporate profits less corporate profits greater corporate profits resulting profits cannot be determined
Answer:
the company would have reported loss
Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. The journal entry to record June production activities for overhead allocation is:
Direct materials used $87,000
Direct labor used 160,000
Predetermined overhead rate (based on direct labor) 155%
Goods transferred to finished goods 432,000
Cost of goods sold 444,000
Credit sales 810,000
a. Debit Factory Overhead $248,000; credit Cash $248,000.
b. Debit Work in Process Inventory $160,000; credit Factory Payroll $160,000.
c. Debit Work in Process Inventory $248,000; credit Factory Overhead $248,000.
d. Debit Work in Process Inventory $160,000; credit Factory Overhead $160,000.
e. Debit Work in Process Inventory $160,000; credit Cash $160,000.
Answer:
c. Debit Work in Process Inventory $248,000; credit Factory Overhead $248,000.
Explanation:
The journal entry to record the overhead allocation is given below:
Work in Process Inventory $248,000 ($160,000 × 155%)
To Factory Overhead $248,000.
(being the overhead allocation is recorded)
here the work in process inventory is debited as it increased the asset and the factory overhead is credited so that the allocation of the overhead could be cone
Therefore the third option is correct
Ester transfers land (basis of $200,000 and fair market value of $355,000) to a controlled corporation in return for stock in the corporation. However, shortly before the transfer, Ester mortgages the land and uses the $25,000 proceeds to meet personal obligations. Along with the land, the mortgage is transferred to the corporation. Ester has a realized gain on the transfer of_____and a recognized gain of_____.
Answer:
Ester will have a realized gain on the transfer of $155,000 and a recognized gain of $25,000
Explanation:
Calculation to determine realized gain on the transfer and recognized gain
Amount realized=($300,000+$25,000)-$200,000
Amount realized=$355,000-$200,000
Amount realized=$155,000
Based on the information given her recognized gain will be $25,000
Zing Coffee Company produces Columbian coffee in batches of 6,500 pounds. The standard quantity of materials required in the process is 6,500 pounds, which cost $6 per pound. Columbian coffee can be sold without further processing for $9 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $12 per pound. The processing into Decaf Columbian requires additional processing costs of $10.230 per batch. The additional processing will also cause a 5% loss of product due to evaporation.
a. Prepare a differential analysis dated October 6, 2014 on whether to sell regular Columbian (Alternative 1) or process further into Decaf Columbian (Alternative 2).
b. Determine the price of Deaf Columbian that would cause neither an advantage nor a disadvantage for processing further and selling Decaf Columbian.
Answer:
Zing Coffee Company
a. Differential Analysis:
Sell Regular Process Further Differential Effect
Columbian Into Decaf On Income
(Alternative 1) (Alternative 2) Alternative (2)
Revenues $58,500 $74,100 $15,600
Costs 39,000 49,230 10,230
Income (loss) $19,500 $24,870 $5,370
b. The Price of Decaf Columbian that would cause neither an advantage nor a disadvantage for processing further and selling Decaf Columbian is:
= $11.18 approx.
Explanation:
a) Data and Calculations:
Production batches = 6,500
Standard quantity of materials required in the process = 6,500 pounds
Cost of unit = $6
Total cost = $39,000
Selling price of regular Columbian coffee = $9 per pound
Revenue from regular Columbian coffee = $58,500
Selling price of Decaf Columbian coffee = $12 per pound
Additional processing costs = $10,230 per batch
Total cost after further processing = $49,230 ($39,000 + $10,230)
Loss during further processing = 5% of 6,500 = 325
Total quantity of Decaf Columbian coffee = 6,175
Total Sales revenue = $74,100 ($12 * 6,175)
Differential Analysis:
Sell Regular Process Further Differential Effect
Columbian Into Decaf On Income
(Alternative 1) (Alternative 2) Alternative (2)
Revenues $58,500 $74,100 $15,600
Costs 39,000 49,230 10,230
Income (loss) $19,500 $24,870 $5,370
Price of Decaf Columbian that would cause neither an advantage nor a disadvantage for processing further and selling Decaf Columbian is computed as follows:
Estimated revenue of the Decaf = $68,730 ($19,500 + $49,230)
Estimated selling price = $11.18 ($68,730/6,150)
Shamrock, Inc. issues a $660,000, 10%, 10-year mortgage note on December 31, 2022, to obtain financing for a new building. The terms provide for annual installment payments of $107,412. Prepare the entry to record the mortgage loan on December 31, 2022, and the first installment payment on December 31, 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer: See explanation
Explanation:
The entry to record the mortgage loan on December 31, 2022 will be:
Debit Cash Account $660,000
Credit 10% Mortgage loan payable $660,000
The entry to record the first installment payment on December 31, 2023 will be:
Debit 10% Mortgage loan payable = $41412
Debit Interest Expenses $600,000 × 10% = $60,000
Credit Cash $107412
Placid Lake Corporation acquired 90 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2020, when Scenic had a net book value of $640,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $7,000 per year. Placid Lake's 2021 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $540,000. Scenic reported net income of $350,000. Placid Lake declared $170,000 in dividends during this period; Scenic paid $64,000. At the end of 2021, selected figures from the two companies' balance sheets were as follows:
Placid Lake Corporation Scenic, Inc.
Inventory $350,000 $111,000
Land 810,000 410,000
Equipment (net) 610,000 510,000
During 2019, intra-entity sales of $180,000 (original cost of $84,000) were made. Only 30 percent of this inventory was still held within the consolidated entity at the end of 2019. In 2020, $300,000 in intra-entity sales were made with an original cost of $80,000. Of this merchandise, 40 percent had not been resold to outside parties by the end of the year.
Required:
a. What is consolidated net income for Placid Lake and its subsidiary?
b. If the intra-entity sales were upstream, how would consolidated net income be allocated to the controlling and noncontrolling interest?
c. If the intra-entity sales were downstream, how would consolidated net income be allocated to the controlling and noncontrolling interest?
d. What is the consolidated balance in the ending Inventory account?
Answer:
a. Consolidated net income for Placid Lake and its subsidiary is $823,800.
b-1. Noncontrolling interest share of consolidated net income is $28,380.
b-2. Placid Lakes or controlling interest share of consolidated net income is $795,420. .
c-1. Noncontrolling interest share of consolidated net income is $34,300.
c-2. Placid Lakes or controlling interest share of consolidated net income is $789,500.
d. Consolidated balance in the ending Inventory account is $373,000.
Explanation:
Note: There is a minor error in the question where 2019 is used instead of 2020. This is therefore corrected to avoid confusion before answering the question. The complete question with the correction is therefore presented as follows:
Placid Lake Corporation acquired 90 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2020, when Scenic had a net book value of $640,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $7,000 per year. Placid Lake's 2021 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $540,000. Scenic reported net income of $350,000. Placid Lake declared $170,000 in dividends during this period; Scenic paid $64,000. At the end of 2021, selected figures from the two companies' balance sheets were as follows:
Placid Lake Corporation Scenic, Inc.
Inventory $350,000 $111,000
Land 810,000 410,000
Equipment (net) 610,000 510,000
During 2020, intra-entity sales of $180,000 (original cost of $84,000) were made. Only 30 percent of this inventory was still held within the consolidated entity at the end of 2020. In 2020, $300,000 in intra-entity sales were made with an original cost of $80,000. Of this merchandise, 40 percent had not been resold to outside parties by the end of the year.
Required:
a. What is consolidated net income for Placid Lake and its subsidiary?
b. If the intra-entity sales were upstream, how would consolidated net income be allocated to the controlling and noncontrolling interest?
c. If the intra-entity sales were downstream, how would consolidated net income be allocated to the controlling and noncontrolling interest?
d. What is the consolidated balance in the ending Inventory account?
Explanation of the answers is now given as follows:
Note: See the attached excel file for all the calculation related parts a, b, and c.
d. What is the consolidated balance in the ending Inventory account?
Unrealized gross profit, 12/31/21 (w.2. in the attached excel file) = $88,000
Consolidated balance in the ending Inventory account = Book value of Placid Lake Corporation Inventory + Book value of Scenic, Inc. Inventory - Unrealized gross profit, 12/31/21 = $350,000 + $111,000 - $88,000 = $373,000
To increase productive capacity, a company is considering a proposed new plant. Which of the following statements is CORRECT? a. When estimating the project's operating cash flows, it is important to include both opportunity costs and sunk costs, but the firm should ignore the cash flow effects of externalities since they are accounted for in the discounting process. b. Since depreciation is a non-cash expense, the firm does not need to deal with depreciation when calculating the operating cash flows. c. The cost of capital used to discount cash flows in a capital budgeting analysis should be calculated on a before-tax basis. d. Capital budgeting decisions should be based on before-tax cash flows. e. In calculating the project's operating cash flows, the firm should not deduct financing costs such as interest expense, because financing costs are accounted for by discounting at the cost of capital. If interest were deducted when estimating cash flows, this would, in effect, "double count" it.
Answer:
e. In calculating the project's operating cash flows, the firm should not deduct financing costs such as interest expense, because financing costs are accounted for by discounting at the cost of capital. If interest were deducted when estimating cash flows, this would, in effect, "double count" it.
Explanation:
Weighted average cost of capital (WACC) is a calculation that takes into consideration all cost associated with capital obtained to finance a company.
This also includes cost such as interest expense.
In the given scenario when calculating the project's operating cash flow it is important to exclude such financing costs since they have been considered in the WACC calculation.
It will be a double deduction if it is considered again in operating cash flow calculation.
MatchPoint Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for March for the two rackets is as follows:
Junior Pro Striker
Production budget 8,100 units 19,500 units
Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows:
Forming Department Assembly Department
Junior 0.25 hour per unit 0.50 hour per unit
Pro Striker 0.30 hour per unit 0.70 hour per unit
The direct labor rate for each department is as follows:
Forming Department $17.00 per hour
Assembly Department $9.00 per hour
Required:
Prepare the direct labor cost budget for March.
Answer:
See below
Explanation:
The preparation of direct labor cost budget for March is seen below;
Particulars Foaming department Assembly department
Production 8,100 units 19,500 units
Hours required
Junior 2,025 4,050
Hours required
Pro 5,850 13,650
Total hours
Department Wise (A) 7,875 17,700
Total Hourly rate (B) $17 $19
Total direct labor cost (A × B) $133,875 $336,300
••Workings
For Junior, it would be :
Foaming
= 0.25 hour per unit × 8,100 units
= 2,025
Assembly
= 0.50 hour per unit × 8,100 units
= 4,050
For Pro, it would be:
Foaming
= 0.30 hour per unit × 19,500 units
= 5,850
Assembly
= 0.70 hour per unit × 19,500 units
= 13,650
You have just been elected to public office and you have been informed that the government does not have money to pay all of its bills.
You have been told that if you were to cut the marginal tax rate, tax revenue would actually increase. Is this true and if so, what would
be the reason for this?
Choose one
Answer:
Yes. But I actually don't know the reason
please if you get the answer, pleasetext me. sorry for bothering you
Vaughn Manufacturing purchased land as a factory site for $1345000. Vaughn paid $116000 to tear down two buildings on the land. Salvage was sold for $8100. Legal fees of $5500 were paid for title investigation and making the purchase. Architect's fees were $46900. Title insurance cost $3900, and liability insurance during construction cost $4200. Excavation cost $15860. The contractor was paid $4300000. An assessment made by the city for pavement was $9500. Interest costs during construction were $260000.
1. The cost of the land that should be recorded by Wilson Co. is:_____.
a. $989,880.
b. $980,480.
c $996,280.
d. $986,880.
2. The cost of the building should be recorded by Wilson Co. is:_____.
a. 2,804,840.
b. 2,813,200.
c. 2,803,800.
d. 3,014,240.
Answer:
Cost of Land = $1,471,800
Cost of Building = $4,626,960
Explanation:
Note: "The options attached to the question are incorrect because its belongs to another question entirely and this can be seen as attached as picture below"
1. Cost of Land = Purchase Value + Cost Incurred to Tear Down two Buildings - Salvage + Legal Fees + Title Insurance Cost + Assessment Cost
Cost of Land = $1345000 + $116000 - $8100 + $5500 + $3900 + $9500
Cost of Land = $1,471,800
2. Cost of Building = Architect's Fees + Liability Insurance Cost + Excavation Cost + Contractor's Payment + Interest Cost
Cost of Building = $46900 + $4200 + $15860 + $4300000 + 260000
Cost of Building = $4,626,960