The 6.5 percent preferred stock of Spotted Cow Brewery is selling for $42 a share. What is the firm's cost of preferred stock if the tax rate is 35 percent and the par value per share is $100
Answer:
the cost of the preferred stock of the firm is 0.1548 or 15.48%
Explanation:
The computation of the cost of the preferred stock of the firm is shown below:
But before that the preference dividend is
= $100 × 6.5%
= $6.50
Now the cost of the preferred stock is
= Dividend ÷ current price of the preferred stock
= $6.50 ÷ $42
= 0.1548 OR 15.48%
hence, the cost of the preferred stock of the firm is 0.1548 or 15.48%
Hamix Co. is evaluating a new 4-year project. The equipment necessary for the project will cost $3,550,000 and can be sold for $720,000 at the end of the project. The asset is in the 5-year MACRS class. The depreciation percentage each year is 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, and 11.52 percent, respectively. The company's tax rate is 35 percent. What is the aftertax salvage value of the equipment?
Answer:
3845y6374556439
Explanation:
Which economic goal is encroached upon when the government taxes your wages in order to provide unemployment
benefits to help those out of work?
A. economic equity
B. economic stability
C. economic freedom
D. economic efficiency
Apple’s Steve Jobs and Tim Cook have different leadership styles. Steve Jobs’ leadership is characterized as ___________ , whereas Tim Cook uses the ___________ style of leadership.
Answer: autocratic; democratic.
Explanation:
Steve Jobs has an autocratic leadership style. This is a type of leader whom dictates policies, controls all activities and decides on the goals that are to be achieved. Such leader has the full control of the team and doesn't consider the input from the subordinates.
On the other hand, Tim Cook uses a democratic leadership style. This is when the leader allows the subordinates participates and values their input. There's brainstorming which helps innovation and us required for decision making.
In the current year, the not-for-profit organization (NFP) How to Read Government Financial Reports received both cash of $1,000 and pledges of $2,000 to be used for teaching citizens how to read government financial reports. During the year the organization spent $1,500 teaching citizens to read financial statements. Assuming the NFP has a policy of spending its restricted resources first, in the current year what amount of contributions can be reclassified as unrestricted
Answer:
$ 1,000
Explanation:
When the NFP organizations spends any amount of money for the purpose of an external donor that is intended, the expense is reported as the decrease in the unrestricted of net assets.
In the context, it is given that cash received = $ 1000
Pledges to be used for the teaching citizens for the financial reports = $ 2,000
Amount spent by the organization = $ 1500
Therefore, as per the policy of the spending in the restricted resources, the amount of contributions in the current year that can be reclassified as unrestricted amount = $ 1,000.00
Tamiko prefers to buy bottled water instead of soda because water provides
more health benefits. What would an economist call her choice?
O A. Opportunity costs
O B. Variable rates
C. Taxation benefits
D. Recession mentality
Yasmin Company manufactures luggage sets. Yasmin sells its luggage sets to department stores. Yasmin expects to sell 1,750 luggage sets for $210 each in January and 2,000 luggage sets for $210 each in February. All sales are cash only. Prepare the sales budget for January and February.
Answer:
January = $367,500
February = $420,000
Explanation:
The Sales Budget shows the Estimated Revenue for a Particular Period.
Estimated Revenue = Units Sold x Unit Price
therefore,
January = $367,500
February = $420,000
What are the implications of CIC’s approach to staffing project teams? Is the company using project teams as training grounds for talented fast-trackers, or as dumping grounds for poor performers?
Answer:
CIC's methodology to projects team employment is based on functional structure. It gathers team individuals from several departments. They grant team players very little influence. They are not permitted to review the effectiveness of task team participants however, operational heads are permitted to do so.
Training under this approach is a very positive thing and should be welcomed by the individuals. It gives the the candidates to enhance their skill and become appropriate for the job environment.
Use the following information to perform the calculations below (using the indirect method).
Net income $650,000 Beginning accounts payable $121,000
Depreciation expense 96,000 Ending accounts payable 159,000
Beginning accounts receivable 423,200 Purchase of long-term assets 610,000
Ending accounts receivable 446,000 Issuance of long-term debt 263,000
Beginning inventory 520,000 Issuance of stock for cash 188,000
Ending inventory 577,000 Issuance of stock for long-term assets 113,000
Beginning prepaid insurance 41,600 Purchase of treasury stock 67,500
Ending prepaid insurance 50,000 Sale of long-term investment at cost 57,500
Required:
a. Calculate the amount of cash flows from operating activities.
b. Calculate the amount of cash flows from investing activities.
Answer:
a) cash flow from operating activities
net income $650,000
adjustments:
depreciation expense $96,000
accounts payable $38,000
accounts receivable -$22,800
inventory -$57,000
prepaid insurance -$8,400
net cash flow from operating activities $695,800
b) cash flow from investing activities
Sale of long term investments $57,500
Purchase of long term assets -$610,000
Long term assets exchanged for common stocks $113,000
net cash flow from investing activities -$439,500
Retro Rides, Incorporated, operates two divisions: (1) a Management Division that owns and manages classic automobile rentals in Miami, Florida and (2) a Repair Division that restores classic automobiles in Clearwater, Florida. The Repair Division works on classic motorcycles, as well as other classic automobiles. The Repair Division has an estimated variable cost of $60.50 per labor-hour and has a backlog of work for automobile restoration. They charge $80.00 per hour for labor, which is standard for this type of work. The Management Division complained that it could hire its own repair workers for $62.00 per hour, including leasing an adequate work area. What is the minimum transfer price per hour that the Repair Division should obtain for its services, assuming it is operating at capacity?
A) $28.50.
B) $30.00.
C) $39.00.
D) $48.00.
Answer:
D) $48
Explanation:
The minimum transfer price for the Repair division will be the variable cost which is standard for the same type of work. In the given scenario the price is $80 which is the maximum transfer price while $48 will be the minimum transfer price for Repair division.
Is the transportation model an example of decision making under certainty or decision making under uncertainty
Answer: Transportation model is an example of decision making under certainty
Explanation:
Decision under certainty means the person taken those decision can predict the outcome. Transportation model is a certain model, everyone getting involved with transportation understand the cost, the route, the destination of where they are involving themselves into. It is a fixed process and not one which takes the user by surprise
You are considering the purchase of a $ par value bond with a coupon rate of % (with interest paid semiannually) that matures in years. If the bond is priced to yield %, what is the bond's current price?
Answer:
$885.65
Explanation:
Missing word "You are considering the purchase of a $1,000 par value bond with an 6.5% coupon rate (with interest paid semiannually) that matures in 12 years. If the bond is priced to provide a required return of 8%, what is the bond’s current price?"
Rate = 8% / 2
Nper = 12 * 2 = 24
Pmt = 1,000 * 6.5% / 2 = 32.5
FV = 1,000
Bond's current price = PV(rate, nper, pmt, fv)
Bond's current price = PV(8%/2, 24. 32.5, 1000)
Bond's current price = $885.65
So, the bond's current price is $885.65
Price skimming works best for which type of product?
A perfectly elastic demand curve implies that the firm Select one: a. The demand curve for a purely competitive firm is downsloping, but the demand curve for a purely competitive industry is perfectly elastic. b. The demand curves are perfectly elastic for both a purely competitive firm and a purely competitive industry. c. The demand curves are downsloping for both a purely competitive firm and a purely competitive industry. d. The demand curve for a purely competitive firm is perfectly elastic, but the demand curve for a purely competitive industry is downsloping.
Answer: d. The demand curve for a purely competitive firm is perfectly elastic, but the demand curve for a purely competitive industry is downsloping.
Explanation:
In a purely competitive market, all the firms are selling the same product so there is a lot of competition. The market sets the price in this industry at the point where quantity demanded equals quantity supplied and the demand curve for the whole industry is downward sloping.
When it comes to the demand curve for the individual firm however, it is elastic because price is not set by the firm. This perfectly elastic demand shows that if the firm tries to sell at a price that is different from the market, quantity demanded from that firm would change by infinity because people would prefer the market price.
Olsen Company paid or collected during 2020 the following items: Insurance premiums paid $ 30,800 Interest collected 69,800 Salaries paid 280,400 The following balances have been excerpted from Olsen's balance sheets: December 31, 2020 December 31, 2019 Prepaid insurance $ 2,400 $ 3,000 Interest receivable 7,400 5,800 Salaries and wages payable 24,600 21,200 The interest revenue recorded in the income statement for 2020 was
Answer:
See below
Explanation:
Given the above information, first we will calculate the current year expenses paid in the current year
= $280,400 - $21,200
= $259,200
Next is to compute expense of current year not paid
= $259,200 + $24,600
= $283,800
Initiate, Inc. a 501 organization, receives the following revenues and incurs the following expenses. Grant from Gates Foundation 70,000 Charitable contributions received 625,000 Expenses in carrying out its exempt mission 500,000 Net income before taxes of landscaping inc. 400,000 a wholly owned for profit subsidiary Landscaping Inc. remits all of its after tax profits each year to Initiate. Calculate the amount of the Federal income tax, if any, for Initiate for Landscaping.
Answer:
136,000
Explanation:
Calculation to the amount of the Federal income tax, if any, for Initiate for Landscaping.
Based on the information given the amount of $400,000 will be subjected to the corporate income tax rates totaling the amount of $136,000 which is calculated as ($400,000 x 34%).
Therefore the amount of the Federal income tax, if any, for Initiate for Landscaping will be $136,000
Your firm has net income of $357 on total sales of $1,380. Costs are $760 and depreciation is $110. The tax rate is 30 percent. The firm does not have interest expenses. What is the operating cash flow
Answer:
See below
Explanation:
The operating cash flow is computed as seen below
Cost
Midyear on July 31st, the Digby Corporation's balance sheet reported: Total Liabilities of $25.521 million Cash of $2.010 million Total Assets of $41.309 million Total Common Stock of $1.270 million. What were the Digby Corporation's retained earnings
Answer: $14.518 million
Explanation:
Based on he information given, we have to calculate the owner's equity first which will be:
= Assets - Liabilities
= $41.309 million - $25.521 million
= $15.788 million
Since Owners equity is the addition of the total common stock and the retained earnings. Therefore, retained earnings will be:
= Owners equity - Total common stock
= $15.788 million - $1.270 million
= $14.518 million
The retained earning is $14.518 million
What is the decrease in the overall value of an asset called?
A.
depreciation
B.
deceleration
C.
amortization
D.
disinvestment
Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $305,000, variable expenses of $153,600, and traceable fixed expenses of $70,800. The Alpha Division has sales of $615,000, variable expenses of $337,800, and traceable fixed expenses of $132,700. The total amount of common fixed expenses not traceable to the individual divisions is $134,200. What is the company's net operating income
Answer:
$2,000
Explanation:
net operating income = total contribution - common fixed expenses
Example of job analysis template with answers
Jimmy is an employee of Roofing, Inc., which is performing a contract for the federal government. Jimmy learns that Roofing, Inc. has been overcharging for the work. If he publicly reports the fraud, the Whistle-Blower law may protect him from being fired from his job. With respect to the employment-at-will doctrine, this is
Answer:
An exception based on public policy.
Explanation:
Employment at will according to the United States is a doctrine that permits the employer and employee to work together in an indefinite period of time, whereas they are able to terminate their contract with any necessary fair clause.
In many counties around the world, employers always look for reasons to terminate or stop their employees from working, whereas an exception based on public policy negate this doctrine.
Sue purchased a stock for 45 a share, held it for one year received a 2.34 divided and sold the stock for 46.45. what nominal rate of return did she earn?
Answer:
8.4
Explanation:
nominal return - price return + dividend yield
price return = 46.45 /45 - 1 = 3.2%
dividend yield = 2.34 / 45 = 5.2%
Bronks Co. had pension plan assets and PBO of $160,000 on 1/1/19. Service cost for the year was $40,000. It contributed $30,000 during the year and paid benefits of $20,000. The interest rate was 10%. The actual return was $15,000. Compute pension expense, PBO and PA at the end of the year.
Answer:
Pension expense:
= Service cost + Interest on PBO - actual return
= 40,000 + (10% * 160,000) - 15,000
= $41,000
PBO at end of year:
= Beginning PBO+ Service cost + Interest on PBO - Benefits paid
= 160,000 + 40,000 + (10% * 160,000) - 20,000
= $196,000
Pension Assets at end of year:
= Beginning PBO + Return + Contribution - Benefits
= 160,000 + 15,000 + 30,000 - 20,000
= $185,000
how could competition policy undo the wrongs of the past and make south Africa a better place
g On January 1, 2020, Fotso Corporation issued 5 year bonds with a face value of $200,000 and coupon rate of 12% interest, payable semiannually on June 30 and December 31. The market rate of interest at the time of issuance was 14%, and the bonds were issued at a discount of $14,047. Using the effective-interest method, the amount of discount that should be amortized on December 31, 2020, is
Answer:
amortization of bond discount December 31 = $1,087.88
Explanation:
bonds' issue price = $200,000 - $14,047 = $185,953
amortization of bond discount June 30 = ($185,953 x 7%) - ($200,000 x 6%) = $1,016.71
amortization of bond discount December 31 = ($186,969.71 x 7%) - ($200,000 x 6%) = $1,087.88
total interest expense Decmber 31 = $13,087.88
Henri Fayol and his14-principles of management, was a major contributor to which of the following classical approaches: Group of answer choices Systematic Management Scientific Management Bureaucracy Administrative Management Human Relations
Answer:
Administrative Management
Explanation:
The degree of customer contact measuresthe amount of time the customer is separated from the service delivery system.the amount of time the customer is in the service delivery system.the customization abilities of the service system.The content of service-product bundle.
Answer:
the amount of time the customer is in the service delivery system.
Explanation:
In the case when there is a degree of contacting the customer determined that the value of the time that the customer would be in the system that represent the delivery of the service at the time when the service is generally produced or
So as per the given situtaion, the above statement represent the answer
Ingrid Inc. has strict credit policies and only extends credit to customers with outstanding credit history. The company examined its accounts and determined that at January 1, 2019, it had balances in Accounts Receivable and Allowance for Doubtful Accounts of $478,000 and $7,900 (credit), respectively. During 2019, Ingrid extended credit for $3,075,000 of sales, collected $2,715,000 of accounts receivable, and had customer defaults of $4,280. Ingrid performed an aging analysis on its receivables at year end and determined that $6,800 of its receivables will be uncollectible.
Required:
a. Calculate Ingrid's balance in accounts receivable on December 31, 2018, prior to the adjustment.
b. Calculate Ingrid's balance in allowance for doubtful accounts on December 31, 2018, prior to the adjustment.
c. Prepare the necessary adjusting entry for 2018.
Answer:
Ingrid Inc.
a. Ingrid's balance in accounts receivable on December 31, 2018, prior to the adjustment is:
= $833,720.
b. Ingrid's balance in allowance for doubtful accounts on December 31, 2018, prior to the adjustment is:
= $6,800.
c. Adjusting Entry:
Debit Bad Debts Expense $3,180
Credit Allowance for Doubtful Accounts $3,180
To record the bad debts expense for the year and bring the balance of the Allowance for Doubtful Accounts to a credit balance of $6,800
Explanation:
a) Data and Calculations:
January 1, 2019 balances:
Accounts Receivable $478,000
Allowance for Doubtful Accounts $7,900 (credit)
Accounts Receivable $3,075,000 Sales Revenue $3,075,000
Cash $2,715,000 Accounts Receivable $2,715,000
Allowance for Doubtful Accounts $4,280 Accounts Receivable $4,280
Ending balance:
Allowance for Doubtful Accounts $6,800 (Credit)
T-Accounts
Account Titles Debit Credit
Beginning balance $478,000
Sales Revenue $3,075,000
Cash $2,715,000
Allowance for Doubtful Accounts $4,280
Ending balance $833,720
Allowance for Doubtful Accounts
Account Titles Debit Credit
Beginning balance $7,900
Accounts Receivable $4,280
Bad Debts Expense 3,180
Ending balance $6,800
Blue Lite manufactures decorative weather vanes that have a standard materials cost of two pounds of raw materials at $2 per pound. During November 500 pounds of raw materials costing $4 per pound were used in making 450 weather vanes. The materials price and quantity variance are: Group of answer choices
Answer: See explanation
Explanation:
The material price variance will be calculated as:
= (Standard price - Actual price) × Actual quantity of material used
= ($2 - $4) × 500
= -$2 × 500
= $-1000
= $1000 Unfavourable
The material quantity variance will be:
= Standard quantity - Actual quantity) × Standard price
=[(450 × 2) -500] × $2.00
= (900 - 500) × $2.00
= 400 × $2.00
= $800 Favorable