Answer:
1. Open Market Operations - A central bank purchasing existing bonds.
When the central bank purchases existing bonds, this is an expansionary monetary policy because by buying bonds they are putting money back into people's hands by paying them for the bonds.
2. Reserve Requirement - An increase in the percentage of deposits that banks must keep on hand.
When the Central bank increases the reserve requirement, it means that banks should keep a larger percentage of deposits kept with them. This is a contractionary Monetary Policy because the banks will have less money to loan out to the public.
3. Discount Rate - An increase in the interest rate that a central bank charges commercial banks for loans.
The Central bank loans money to commercial banks using the discount rate. Should they increase this rate, banks would find it more expensive to borrow from them and reduce borrowing. This means that they would then not have a lot of money to loan out making this a contractionary monetary policy.
4. Quantitative Easing - A central bank purchasing a large quantity of longer-term Treasury bonds.
Quantitative Easing refers to the Government buying a large quantity of longer-term treasury bonds to increase money supply so that rates would fall and people can borrow more money to boost the economy. This policy is not usually done and indeed is considered unconventional.
Using the post-closing trial balance, calculate the total assets, liabilities, and equity, and enter those amounts in the basic accounting equation.
SMART TOUCH LEARNING
Post-Closing Trial Balance December 31, 2016
Balance
Account Title Debit Credit
Cash 32900
Accounts Receivable 6300
Office Supplies 400
Prepaid Insurance 10900
Prepaid Rent 10,900
Furniture 38,700
Accumulated Depreciation-- 13100
Furniture Accounts Payable 17500
Salaries Payable 2600
Utilities Payable 1300
Interest Payable 1700
Unearned Revenue 33200
Common Stock 8400
Retained Earnings 22300
Total 1001,00 100100
Answer:
Assets= Liabilities + Owner's Equity
87,000= 56,300 + 30,700
87,000= 87000
Explanation:
SMART TOUCH LEARNING
Balance Sheet
Cash 32900
Accounts Receivable 6300
Office Supplies 400
Prepaid Insurance 10900
Prepaid Rent 10,900
Furniture 38,700
Accumulated Depreciation-- 13100
Total Assets $ 87,000
Furniture Accounts Payable 17500
Salaries Payable 2600
Utilities Payable 1300
Interest Payable 1700
Unearned Revenue 33200
Total Liabilities $ 56,300
Common Stock 8400
Retained Earnings 22300
Owner's Equity / Retained Earnings $30,700
Total Liabilities and Owner's Equity $ 87,000
The accounting equation is
Assets= Liabilities + Owner's Equity
87,000= 56,300 + 30,700
87,000= 87000
32900+ 6300+400 + 10900+ 10900+25600 = 17500 + 2600 + 1300 + 1700 + 33200 + 8400 22300
The total of Assets of a company are always equal to the total Liabilities and Owner's Equity.
Adding the assets we get $ 87,000 which is the same as the total of Liabilities and Owner's Equity.
The deadweight loss of the profit-maximizing monopoly is identified by what area?
Answer:
area BCA
Explanation:
The deadweight loss of the profit-maximizing monopoly is recognize by area BCA.
Under the deadweight loss of monopoly More is produced under ideal or perfect competition than under monopoly, and deadweight loss is refer to as the amount that buyers value the added or additional output over and above the opportunity costs of producing the additional output.
When a monopoly maximizes profit, the deadweight loss will be larger if demand is in elastic because there will be a reasonable margin of price to marginal cost.
Data from the financial statements of Crafty Crafts and Hobbies, Inc. are presented below (in millions): Crafty Crafts Hobbies, Inc. Total liabilities, 2016 $31,957 $25,461 Total liabilities, 2015 36,104 30,046 Total assets, 2016 46,186 32,872 Total assets, 2015 46,514 35,208 Net sales, 2016 161,466 81,702 Net income, 2016 1,040 1,766 To the nearest hundredth of a percent, what is the 2016 return on assets ratio for Crafty Crafts
Answer:
Crafty Crafts:
Return on Assets Ratio = Net Income/Average Assets x 100
= $1,040/46,350 x 100
= 2.2%
Explanation:
a) Data
Crafty Crafts Hobbies, Inc.
Total liabilities, 2016 $31,957 $25,461
Total liabilities, 2015 36,104 30,046
Total assets, 2016 46,186 32,872
Total assets, 2015 46,514 35,208
Net sales, 2016 161,466 81,702
Net income, 2016 1,040 1,766
b) Average Assets:
Crafty Crafts = (2016 + 2015 assets)/2 = ($46,186 + 46,514)/2 = $46,350
c) The Return on Assets Ratio: This financial performance ratio shows how much of the earnings is generated from the assets of the company in a particular period. It shows the efficiency of management to generate profit from the assets. Usually, the average assets value is used to even the variations over the period.
6. ABC Company announced today that it will begin paying annual dividends next year. The first dividend will be $0.10 a share. The following dividends will be $0.20, $0.30, $0.40, and $0.50 a share annually for the following 4 years, respectively. After that, dividends are projected to increase by 2.0 percent per year. How much are you willing to pay to buy one share of this stock today if your desired rate of return is 8.0 percent
Answer:
The amount willing to pay to buy one share is $6.92.
Explanation:
The announcement by company to pay annual dividend = $0.10
2nd year divident amount = $0.20
3rd year divident amount = $0.30
4th year divident amount = $0.40
5th-year divident amount = $0.50
The increase in dividend = 2 percent.
The desired rate of return = 8%
Value after year 5 = (D5 × Growth rate) / (Required rate-Growth rate)
=(0.5 × 1.02) / (0.08-0.02)
=8.5
Therefore, the current value = Future dividend and value × Present value of discounting factor(rate%,time period)
=0.1/1.08 + 0.2/1.08^2 + 0.3/1.08^3 + 0.4/1.08^4 + 0.5/1.08^5 + 8.5/1.08^5
=$6.92.
Perteet Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows:
Average Cost per Unit
Direct materials $6.70
Direct labor $3.25
Variable manufacturing overhead $1.60
Fixed manufacturing overhead $3.00
Fixed selling expense $0.70
Fixed administrative expense $0.40
Sales commissions $0.50
Variable administrative expense $0.55
If 4,000 units are produced, the total amount of manufacturing overhead cost is closest to:__________
a. $28,000
b. $14,800
c. $21,400
d. $18,100
Answer:
Total overhead cost= $21,400
Explanation:
Giving the following information:
When it produces and sells 5,000 units, its average costs per unit are as follows:
Variable manufacturing overhead $1.60
Fixed manufacturing overhead $3.00
First, we need to calculate the total fixed manufacturing overhead:
Fixed overhead= 3*5,000= $15,000
Now, we can calculate the total overhead cost for 4,000 units.
Total overhead cost= total variable cost + total fixed cost
Total overhead cost= 1.6*4,000 + 15,000
Total overhead cost= $21,400
The journal entry to record the transfer of 1,600 units of part number 1177 with a value of $2.50 each, to work in process is Group of answer choices Work in Process 4,000 Materials 4,000 Work in Process 4,000 Factory Overhead 4,000 Work in Process 4,000 Cash 4,000 Materials 4,000 Work in Process 4,000
Answer:
The correct option is:
Work in Process 4,000 Materials 4,000
Explanation:
The total cost of the part= $2.50*1,600 units
The total cost of the part=$4,000
Going by the rule of the double which requires receiving account to debited while giving account is credited, we debit work-in-process with $4,000 while materials(inventory in the balance sheet) is credited with the same amount of $4,000.
What is the purpose of internal controls? Managers utilize internal controls as a basis of employee performance reviews. Internal controls are used by managers as a way to reduce outstanding customer balances. Companies use strong internal controls to guarantee that loss is eliminated. To help managers know if the business is receiving the assets and services it has paid for.
Answer:
Companies use strong internal controls to guarantee that loss is eliminated.
Explanation:
Internal controls can be defined as the policies, set of rules, and procedures implemented or put in place by an organization to protect its assets, boost efficiency, enhance financial accountability, enforce adherence to company policies and prevent fraudulent behaviors among the employees.
The purpose of internal controls is that companies use strong internal controls to guarantee that loss is eliminated as there's an accurate and reliable accounting system.
An internal control involves the timely use of both internal and external sources of auditing or financial reporting and as such enhance the maintenance of accurate and proper financial records which would also improve their operational efficiency.
Hence, internal controls if properly executed helps to increase operational efficiency, protect and safeguard assets, provides accurate financial information, prevents fraudulent or unlawful behaviors, timeliness of financial records and reporting.
Answer: To help managers know if the business is receiving the assets and services it has paid for.
Explanation:
Squirrel Tree Services reports the following amounts on December 31.
Assets Liabilities and Stockholders’ Equity
Cash $ 8,300 Accounts payable $ 11,500
Supplies 2,400 Salaries payable 4,100
Prepaid insurance 4,100 Notes payable 26,000
Building 78,000 Common stock 40,000
Retained earnings 11,200
In addition, the company reported the following cash flows.
Cash Inflows Cash Outflows
Customers $ 96,000 Employee salaries $ 40,000
Borrow from the bank (note) 38,000 Supplies 22,000
Sale of investments 35,800 Dividends 15,500
Purchase building 98,000
Required:
1. Prepare a balance sheet.
2. Prepare a statement of cash flows. (Cash outflows and decreases in cash should be indicated by a minus sign.)
1. The preparation of the balance sheet is shown below.
2. The preparation of the cash flow statement is shown below.
1. Balance sheet:Squirrel Tree Services
Balance Sheet
For the year ended 31st December
Assets Amount Liabilities Amount
Cash $8,300 Accounts payable $11,500
Supplies $2,400 Salary payable $4,100
Prepaid insurance $4,100 Notes payable $26,000
Building $78,000
Total liabilities $41,600
Common stock $40,000
Retained earning $11,200
Total stockholder
equity $51,200
Total liabilities and
Total assets $92,800 stockholder equity $92,800
B. Cash flow statement:
Squirrel Tree Services
Cash flow
For the year ended 31st December
Particulars Amount
Cash flow from operating activities
Cash inflow from customers $96,000
Cash outflow for salaries ($40,000)
Cash outflow for supplies ($22,000)
Net cash flow from operating activities $34,000
Cash flow from investing activities
Sale of investment $35,800
Purchase of building ($98,000)
Net cash flow from investing activities ($62,200)
Cash flow from financing activities
Borrow from bank $38,000
Dividends ($15,500)
Net cash flow financing activities $22,500
Net increase in cash ($5,700)
Beginning cash of the year $15,200
Ending cash of the year $9,500
Working note
we deduct the cash inflow from cash outflow and add cash to reach the beginning cash of the year.
Learn more about the balance sheet here: https://brainly.com/question/24531985
A job cost sheet of Fugate Company is given below.
Job Cost Sheet
Date Direct Materials Direct Labor Manufacturing Overhead
5/10 1,330
12 1,120
15 550 825
22 480 720
24 1,000
27 1,870
31 670 1,005
Cost of completed job:
Direct materials.
Direct labor.
Manufacturing Overhead.
Total cost.
Unit cost.
Requried:
a. What is the predetemined manufacturing overhead rate?
b. What are the total cost and the unit cost of the completed job?
c. Prepare the entry to record the completion of the job.
Answer:
A.Direct material 5,320
Direct labour 1,700
Manufacturing overhead 2,550
B. Total cost 9,570
Unit cost 6.38
C. Dr Finished goods inventory account 9,570
Cr Work in Process inventory account 9,570
Explanation:
A. Calculation for the predetemined manufacturing overhead rate
Date Direct material Direct Labour Manufacturing Overhead
5/10 1,330
12 1,120
15 550 825 825
22 480 720 720
24 1,000
27 1,870
31 670 1,005
Total 5,320 1,700 2,550
B. Calculation for the total cost and the unit cost of the completed job
Cost of Completed job :
Direct material 5,320
Direct Labour 1,700
Manufacturing Overhead 2,550
Total Cost 9,570
Unit Cost = Total Cost / Number of units
Unit cost = 9,570/1,500
Unit cost = 6.38
C.Therefore when a job is fully completed, thebFinished goods inventory account will be
debited with the correspondent credit of Work in progress account.
Journal entry
May.31
Dr Finished goods inventory account 9,570
Cr Work in Process inventory account 9,570
Elliott Company produces large quantities of a standardized product. The following information is available for its production activities for March. Units Costs Beginning work in process inventory 2,000 Beginning work in process inventory Started 20,000 Direct materials $ 2,500 Ending work in process inventory 5,000 Conversion 6,360 $ 8,860 Status of ending work in process inventory Direct materials added 168,000 Materials—Percent complete 100 % Direct labor added 199,850 Conversion—Percent complete 35 % Overhead applied (140% of direct labor) 279,790 Total costs to account for $ 656,500 Ending work in process inventory $ 84,110 Prepare a process cost summary report for this company showing costs charged to production, unit cost information, equivalent units of production, cost per EUP, and its cost assignment and reconciliation. Use the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)
Answer: kindly check attached picture
Explanation:
Production activities for MARCH:
Beginning work in process inventory = 2000
Units started in March = 20,000
Therefore, total units to account for :
(2,000 + 20,000) units = 22,000 units
Total units transferred out :
Total units to account for - Ending work in process:
(22,000 - 5,000) units = 17,000 units
Check attached picture for further explanation
a. Prepare a cost of goods manufactured statement for January.
b. Determine the cost of goods sold for January.
Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows:
Inventories January 1 January 31
Materials $314,000 $276,800
Work in process 216,000 239,800
Finished goods 163,200 189,000
January 31
Direct labor $567,000
Materials purchased during the month 606,600
Factory overhead incurred during the month:
Indirect labor 60,520
Machinery depreciation 32,000
Heat, light, and power 12,200
Supplies 8,220
Property taxes 8,880
Miscellaneous costs 16,460
Answer:
a.Cost OF Goods Manufactured $ 1324,680
b.Cost OF Goods Sold 1298,880
Explanation:
Sandusky Manufacturing Company
Cost of Goods Manufactured Statement
For the Month Ended January 31
Materials Inventories Beginning $314,000
Add Materials purchased during the month 606,600
Less Materials Inventories January 31 Ending $276,800
Total Materials Used $ 643,800
Direct labor $567,000
Factory overhead incurred during the month: $ 138280
Indirect labor 60,520
Machinery depreciation 32,000
Heat, light, and power 12,200
Supplies 8,220
Property taxes 8,880
Miscellaneous costs 16,460
Total Manufacturing Costs 1349,080
Add Work in process Beginning 216,000
Cost OF Goods Available For Manufacture $ 1565,080
Less Work in process Ending 239,800
Cost OF Goods Manufactured $ 1325,280
The Cost OF Goods Manufactured Statement is obtained by the following formula
Cost OF Goods Manufactured = Materials used+ direct labor+ FOH + WIP Beginning - WIP Ending.
Sandusky Manufacturing Company
Cost of Goods Sold Statement
For the Month Ended January 31
Cost OF Goods Manufactured $ 1325,280
Add Finished goods Beginning 163,200
Cost OF Goods Available For Sale 1488,480
Less Finished goods Ending 189,000
Cost OF Goods Sold 1299,480
The Cost OF Goods Sold Statement is obtained by the following formula
Cost OF Goods Sold = Cost OF Goods Manufactured+ FG Beginning - FG Ending.
A firm sells peanuts in a perfectly competitive market. Upon increasing production output from 60 packages to 75 packages, the total revenue increased from $300to $375. What was the marginal revenue of this increase in production
Answer:
$5
Explanation:
The computation of marginal revenue is shown below:-
Marginal revenue = Change in total revenue ÷ Change in output
= ($375 - $300) ÷ (75 - 60)
= $75 ÷ 15
= $5
The marginal revenue could be computed by dividing the change in total revenue from the change in output so that the increased in production could come
Abburi Company's manufacturing overhead is 55% of its total conversion costs. If direct labor is $58,500 and if direct materials are $29,200, the manufacturing overhead is:
Answer:
$71,500
Explanation:
The computation of manufacturing overhead is shown below:-
We assume conversion cost = x
Conversion cost = Labor cost + manufacturing overhead
x = $58,500 + 0.55x
x = $58,500 ÷ 0.45
= $130,000
Now the manufacturing overhead is
= Conversion cost × maufacturing overhead percentage
= $130,000 × 55%
= $71,500
We simply applied the above formula
According to the liquidity premium theory of the term structure of interest rates, if the one-year bond rate is expected to be 4%, 5%, and 6% over each of the next three years, what is the interest rate on a three-year bond if the liquidity premium on a three-year bond is 0.5%
Answer:
Interest rate on the a three year bond =5.5%
Explanation:
one-year bond rate expected = 4%, 5%, 6% for the next three years
liquidity premium on a three year bond = 0.5%
number of years = 3
The interest rate on the a three year bond can be calculated as
= liquidity premium + ( summation of bond rates for the next three years/number of years )
= 0.5 + ( (4+5+6)/3)
= 0.5 + ( 15/3)
= 0.5 + 5 = 5.5%
Customer service representatives (CSRs) often conceal their frustration when serving an irritating customer. This behavior from the CSRs is an example of
Answer:
emotional labor
Explanation:
This form of behavior or concealment of their frustrations demonstrated by the CSRs is an example of emotional labor. When in a workplace, employees are expected to conceal their emotions and instead display compassion to an ill patient, patience and understanding with an angry customer, or even enthusiasm in a long and boring meeting, even if they are fake reactions. These are all forms of emotional labor.
Bastille Corporation prepares monthly cash budgets.
Here are relevant operating budgets for 2017:
January February
Sales $360,000 $400,000
Purchases 120,000 130,000
Salaries 84,000 81,000
Administration expenses 72,000 75,000
Selling expenses 79,000 88,000
All sales and purchases are on account.
Budgeted collections and disbursement data are given below.
All other expenses are paid in the month incurred.
Administrative expenses include $1,000 of depreciation per month.
Other data:
1. Collections from customers: January $326,000; February $378,000.
2. Payments for purchases: January $110,000; February $135,000.
3. Other receipts: January - collection of December 31, 2016 notes receivable $15,000; February - proceeds from sale of securities $4,000.
4. Other disbursements: February $10,000 cash dividend.
The company's cash balance on January 1, 2017 is expected to be $46,000. The company wants to maintain a minimum cash balance of $40,000.
Required:
Prepare a cash budget for January and February.
Answer and Explanation:
The Preparation of the cash budget for January and February is prepared below:-
Bastille Corporation
Cash budget
for the month of January and February
Particulars January February
Beginning cash balance $46,000 $43,000
Add: Receipts
Customer collection $326,000 $378,000
Notes receivable collection $15,000 $0
Sale of marketable securities 0 $4,000
Total receipts $341,000 $382,000
Total cash available $387,000 $425,000
Less:
Cash payments during the
year
Purchases $110,000 $135,000
Salaries $84,000 $81,000
Administrative expenses $71,000 $74,000
Selling expenses $79,000 $88,000
Dividends 0 $10,000
Disbursement total $344,000 $388,000
Excess of cash
available $43,000 $37,000
Financing
Borrowings 0 $3,000
Repayments 0
Ending cash balance $43,000 $40,000
Note: February beginning balance is the balance of ending cash balance.
On January 2, 20X5, Park Co. purchased 10 percent of Sky, Inc.'s outstanding common shares for $400,000. Park is the largest single shareholder in Sky, and Park's officers are a majority on Sky's board of directors. As a result, Park is able to exercise significant influence over Sky. Sky reported net income of $500,000 for 20X5, and paid dividends of $150,000. In its December 31, 20X5, balance sheet, what amount should Park report as investment in Sky?
Answer:
The answer is $435,000
Explanation:
Initial Investment-----------------$400,000
Park Co's share of Sky's net income(10% x $500,000) --- $50,000
Park Co's share of Sky's dividend (10% x $150,000) ---------------------- ($15,000)
Reported Investment--------- $435,000
Therefore, Park's balance sheet
will report $435,000 as the investment in Sky's in the year ended December 31, 20X5.
Which of the following products is most likely to be produced in a process operations system?
A. Airplanes
B. Cereal Bridges
C. Designer bridal gowns
D. Custom cabinets
Answer:
Cereal
Explanation:
Process operations system which is also known as either process manufacturing or process production can be defined as the way of producing a product in mass, by making use of mass production method and this product are often produce in a continuous flow.
Therefore CEREAL is the products that is most likely to be produced in a process operations system because the production of Cereal is mostly carried out or produce in a process operations system.
Between any two countries trading two products, where each country has a comparative advantage in producing one of these two products, we know that the regulated trade is always better than the free trade.
a. True
b. False
Answer:
False.
Explanation:
In Economics, comparative advantage is referred to as the advantage of a country enjoyed by producing one of the two goods. In this case, the other country also entertains the comparative advantage by producing other products. However, it cannot be said that regulated trade is better than free-trade.
In 1985, a given Japanese imported automobile sold for 1,476,000 yen, or $8,200. If the car still sold for the same amount of yen today but the current exchange rate is 144 yen per dollar, what would the car be selling for today in U.S. dollars?
Answer:
The car will be selling for $10250 today
Explanation:
To calculate the selling price of the car in dollars today, we have to convert the value of 1476000 yen into dollars based on the exchange rate between dollars and yen today. It is known that the car will be sold for the same amount of yen today for which it was sold in 1985 and this amount is 1476000 yen.
We know that 1 dollar equals 144 yen.
Thus, let x be the number of dollars that equal 1476000 yen today.
x = 1476000 / 144
x = $10250
The car will be sold for $10250 today
g "A company with an operating income of $88,000 and a contribution margin ratio of 70% has a margin of safety of: "
Answer:
$125,714
Explanation:
Calculation for A company margin of safety
Using this formula
Margin of safety =Operating net income ÷contribution margin ratio
Let plug in the formula
Margin of safety =$88,000 ÷ 0.70
Margin of safety= $125,714
Therefore A company margin of safety will be $125,714
g on january 1 playa company acquires 90 percent ownership in seaside corporation for 180,000 the fair value of noncontrolling interest what will be the amount of consolidated net assets that would be reported
The question is incomplete, the complete question is:
On January 1, Playa Company acquires 90 percent ownership in Seaside Corporation for $180,000. The fair value of the noncontrolling interest at that time is determined to be $20,000. Seaside reports net assets with a book value of $200,000 and fair value of $200,000. Playa Company reports net assets with a book value of $480,000 and a fair value of $525,000 at that time, excluding its investment in Seaside. What will be the amount of consolidated net assets that would be reported immediately after the combination?
Answer:
$680,000
Explanation:
Since Playa Company owns 90% of Seaside Corporation, it is considered Seaside's parent company and it must include all of Seaside's assets when it presents its consolidated balance sheet.
Total net assets reported = $480,000 (Playa's net assets at book value) + $200,000 (Seaside's net assets) = $680,000
Job-Order Costing and Decision Making [LO2-1, LO2-2, LO2-3]
Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:
Machine-hours required to support estimated production 225,000
Fixed manufacturing overhead cost $ 4,275,000
Variable manufacturing overhead cost per machine-hour $ 2.00
Required:
1. Compute the plantwide predetermined overhead rate.
2. During the year, Job P90 was started, completed, and sold to the customer for $3,700. The following information was available with respect to this job:
Direct materials 1,702
Direct labor cost $ 1,221
Machine-hours used 84
Compute the total manufacturing cost assigned to Job P90.
Answer:
a. $21 per machine hours
b. $4,855
Explanation:
a. The computation of the plantwide predetermined overhead rate is shown below:
Plantwide predetermined overhead rate is
= Variable overhead cost rate per machine hour + Fixed overhead cost rate per machine hour
= $2 + (fixed manufacturing overhead cost ÷ Estimated machine hours)
= $2 + ($4,275,000 ÷ 225,000 machine hours)
= $2 + $19
= $21 per machine hour
b. Now the total manufacturing cost assigned is
Particulars Amount
Direct material $1,702
Direct labor $1,221
Variable manufacturing overhead $168
(84 × $2)
Total variable cost $3,091
Add:
Fixed manufacturing overhead
(84 × $21) $1,764
Total manufacturing cost assigned
to Job P90 $4,855
Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land 10 years ago for $5 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent these facilities from a competitor instead. If the land were sold today, the company would net $9.6 million. The company wants to build its new manufacturing plant on this land; the plant will cost $15.2 million to build, and the site requires $960,000 worth of grading before it is suitable for construction.
What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project?
Cash Flow amount $ _____
Answer:
$25,760,000
Explanation:
The net amount of decrease and increase of cash a business or individual owns.
To find the proper cash flow amount used as the initial investment in fixed assets, use the following:
Calculation of initial investment outflow = cost of land + cost of plant + grading cost
= $9,600,000 + 15,200,000, + $960,000
= $25,760,000
Calculation of initial investment outflow = $25,760,000
Therefore the initial investment outflow is $25,760,000
Victor Rumsfeld Inc.'s dividend policy is under review by its board. Its projected capital budget is $2,000,000, its target capital structure is 60% debt and 40% equity, and its forecasted net income is $600,000. If the company follows a residual dividend policy, what total dividends, if any, will it pay out? Select the correct answer. a. $7,560 b. $1,890 c. $0 d. $5,670 e. $3,780
Answer:
The residual dividend is -$200,000, therefore If the company follows a residual dividend policy the total dividends will be $0
Explanation:
In order to calculate the total dividends, if any, will it pay out, we would have to calculate first the residual dividend a follows:
residual dividend=forecasted net income-(percentage equity*capital budget)
According to the given data we have the following:
forecasted net income=$600,000
percentage equity=40%
capital budget=$2,000,000
Therefore, residual dividend=$600,000-(40%*$2,000,000)
residual dividend=-$200,000
The residual dividend is -$200,000, therefore If the company follows a residual dividend policy the total dividends will be $0
You are developing the project charter for a new project. Which of the following
is NOT part of the enterprise environmental factors?
✓
A) Lessons learned from previous projects
B) The work authorization system
C) Government and industry standards that affect your project
D) Knowledge of which departments in your company typically work on projects
Answer: A) Lessons learned from previous projects
Explanation:
Enterprise Environmental Factors (EEF) refers to all environmental factors that have a say in whether a project is successful or not. They include both internal factors such as company infrastructure, knowledge and capability (departments with the knowledge on project design and implementation) and internal project authorization systems as well as external factors such as Government standards and market conditions.
Lessons learned from previous projects, while important, are not included in this list and are not Enterprise Environmental Factors.
If workers leave a country to seek out better opportunities in another country, then this will move the original economy up along a stationary short-run aggregate supply curve. move the original economy down along a stationary short-run aggregate supply curve. shift the short-run aggregate supply curve of the original country to the left. shift the short-run aggregate supply curve of the original country to the right.
Answer: Shift the short-run aggregate supply curve of the original country to the left.
Explanation:
Workers are an input in the production of goods and services. If workers in an economy reduce in number, this would mean that there would be less workers able to produce goods and services in the country. This will invariably lead to a decrease in the amount of goods and services supplied and when there is a decrease in supply, the Short-Run Aggregate Supply curve will shift to the left to reflect this.
Home equity line interest. Sean and Amy Anderson have a home with an appraised value of $180,000 and a mortgage balance of only $90,000. Given that an S&L is willing to lend money at a loan-to-value ratio of 75 percent, how big a home equity credit line can Sean and Amy obtain? How much, if any, of this line would qualify as tax-deductible interest if their house originally cost $100,000?
Answer:
$135,000
$75,000
Explanation:
Home value = $180,000
Loan to Value ratio = 75%
Formula: Maximum loan amount = Home value x loan to value ratio
Maximum loan amount = $180,000 x 75%
Maximum loan amount = $135,000
If the value of house is $100,000 then,
$100,000 x 75% = $75,000
$75,000 would qualify as Tax deductible interest
A lumber mill is capable of producing 10,000 board feet of lumber per day when run ten hours per day with minimal breaks. Over the past year, forestry legislation has reduced the availability of raw materials, so the mill has produced an average of 4,575 board feet per day. What is the utilization of the plant
Answer:
45.75%
Explanation:
When asking for the utilization of the plant, the question is basically referring to how much of its full potential is the plant currently operating at. Therefore this can be calculated by dividing its current output (4,575) by its maximum output (10,000) like so...
4,575 / 10,000 = 0.4575
Now we multiply that by 100 in order to get the percentage.
0.4575 * 100 = 45.75%
Therefore the current utilization of the plant is 45.75%
HK Goods Inc. is a large conglomerate that operates only in its home country. The company competes in industries like the consumer electronics, health care, hotel, airlines, education, and steel industries. Which of the following diversification strategies does this best illustrate?
A. Process diversification
B. Product diversification
C. Geographic diversification
D. Market diversification
Answer:
B. Product diversification
Explanation:
Based on this information it seems that HK Goods Inc. is following the diversification strategy known as product diversification. This strategy revolves around selling the same or different variations of a product but in various different markets. Which is what HK Goods Inc. is doing by competing in a large variety of markets such as consumer electronics, health care, hotel, airlines, education, and steel industries, but still selling the same base product in only one geographical location.