Your boss is considering a 5-year investment project. If the project is accepted, it would require an immediate spending of $678 to buy all necessary production equipment. This equipment would be sold at the end of the project and bring your company estimated $144 in sale proceeds after taxes (or after-tax salvage value). Your boss's consulting team estimated that the annual after-tax profits (or operating cash flows) would equal $173. The team also recommends immediately setting aside $58 in cash to cover any unforeseen expenses. The required annual rate of return is 8.1%.
Calculate the Net Present Value of this proposed investment project. (Do NOT use "S" in your answer. Increase decimal places for any intermediate calculations, from the default 2 to 6 or higher. Only round your answer to TWO decimal places. For example, 1,000,23 or -1,000.23) Focus E- 17 786 words English (United States)

Answers

Answer 1

Answer:

$50.47

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Cash flow in year 0 = - ($678 +  $58 ) = -736

Cash flow in year 1 - 4 = $173

Cash flow in year 5 = $173 + $144

I = 8.1

NPV = 50.47

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  


Related Questions

how to vote correctly? explain your answer​

Answers

Make sure you don’t let anyone else see who you are voting for don’t be rude go for who you thing is right

Carts Corporation
is trying to determine how long it takes for one product to pass through the production process. The following information was gathered regarding how many days the product spent in various production activities:
Activity Number of Days
Inspection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Storage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Assembly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Handling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Painting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Packaging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
a. Which of the above activities are value-added?
b. What is Carts' total cycle time?
c. Determine Carts' manufacturing efficiency ratio.
d. If Carts implements a total quality management program and a just-in-time inventory system, which of the above activities could be eliminated? What would be the change in Carts' manufacturing efficiency ratio?

Answers

Answer:

Following are the solution to the given points:

Explanation:

For point a:

[tex]\text{Value added activities = Assembly and Paintings}[/tex]  

For point b:

[tex]Activity \ \ \ \ \ \ \ \ \ \ \ \ \ Number \ of \ days \\\\[/tex]

[tex]Inspection \ \ \ \ \ \ \ \ \ \ \ \ \ 4 \\\\ Storage\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 3\\\\ Assembly\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 5\\\\ Handling \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2\\\\ Painting \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 3\\\\ Packaging \ \ \ \ \ \ \ \ \ \ \ \ \ 1\\\\ Total \ cycle\ time \ \ \ \ \ 18\ days[/tex]

For point c:

[tex]\text{Efficiency ratio of production} = \frac{\text{time added value}}{\text{total cycle time}} \\\\[/tex]

[tex]\text{VAT = 5 days assembled + 3 days in paint = 8 days in painting}[/tex]

[tex]= \frac{8}{18} \\\\ = 44.44\%[/tex]

For point d:

In inspection, TQM will cut back 4 days

JIT reduces storage time by 3 days.

Reduction total = 7 days

Retrofiled The total time of the cycle[tex]= 18 \ days - 7 \ days = 11\ days[/tex]

Revised efficiency of production [tex]=\frac{8 \ days}{ 11\ days} =72.73\%[/tex]

The value added activities are assembly and paintings, the total chart's time is 18 days, the manufacturing ratio is 44.44% and the revised value of efficiency is 72.73%.

For point A:

What are value added activities?

Value Added Activities are those activities that modify the product from raw material into finished goods that the customer is willing to pay for.

Hence, the value added activities are assembly and paintings.

For point B:

The chart of the total cycle time is given in the image below:

For option C:  

[tex]\text{Production Efficiency Ratio}=\dfrac{\text{Time Value Added}}{\text{Sum of Time Cycle}}\\\\\text{Value Added Time(VAT)}= \text{Assembled 5 Days}+\text{Days in Paint}\\\\=8\text{Days}\\\\=\dfrac{8}{18}= 44.44\%.[/tex]

For option D:

Time Quantity Management = 4 days,

Just-in-time Inventory Shortage Time= 3 days,

Reduction Total = 7 days,

[tex]\text{Total Time of cycle}=\text{18 days - 7 days}\\\\=11\text{days}[/tex]

[tex]\text{Revised Efficiency Production}=\frac{\text{8 days}}{\text{11 days}}\\\\\\=72.73\%.[/tex]

Learn more about value-added, refer:

https://brainly.com/question/22241921

Gundy Company expects to produce 1,213,200 units of Product XX in 2020. Monthly production is expected to range from 80,000 to 114,000 units. Budgeted variable manufacturing costs per unit are: direct materials $5, direct labor $7, and overhead $11. Budgeted fixed manufacturing costs per unit for depreciation are $6 and for supervision are $1. In March 2020, the company incurs the following costs in producing 97,000 units: direct materials $515,000, direct labor $670,000, and variable overhead $1,073,000. Actual fixed costs were equal to budgeted fixed costs. Prepare a flexible budget report for March. (List variable costs before fixed costs.)

Answers

Answer:

Gundy Company

Flexible Budget Report for March 2020:

                                      Actual Budget   Flexible Budget   Variance

Direct materials                 $515,000        $485,000           $30,000  U

Direct labor                         670,000           679,000               9,000  F

Variable overhead           1,073,000         1,067,000               6,000  U

Actual fixed costs              679,000           679,000                       0  None

Total costs incurred    $2,937,000       $2,910,000           $27,000  U

Explanation:

a) Data and Calculations:

Expected production of Product XX in 2020 = 1,213,200 units

Monthly production range = 80,000 to 114,000 units

Budgeted variable manufacturing costs per unit are:

Direct materials      $5

Direct labor             $7

Overhead              $11

Total variable       $23

Fixed manufacturing costs per unit:

Depreciation are   $6

Supervision are     $1

Total fixed costs   $7

Total costs =       $30

March 2020 costs incurred for 97,000 units:

Direct materials        $515,000

Direct labor              $670,000

Variable overhead $1,073,000

Actual fixed costs      679,000

Total costs incurred $2,937,000

Flexible Budget Report for March 2020:

                                      Actual Budget   Flexible Budget   Variance

Direct materials                 $515,000        $485,000           $30,000  U

Direct labor                         670,000           679,000               9,000  F

Variable overhead           1,073,000         1,067,000               6,000  U

Actual fixed costs              679,000           679,000                       0  None

Total costs incurred    $2,937,000       $2,910,000           $27,000  U

On September 30, 2018, Corso Steel acquired a patent from Thermo Steel. The agreement specified that Corso will pay Thermo $1,000,000 immediately and then another $1,000,000 on September 30, 2020. An interest rate of 8% reflects the time value of money for this type of loan agreement.
What amount of interest expense, if any, would Corso record on December 31, 2019, the company’s fiscal year end?
a. $68,687.
b. $80,000.
c. $60,000.
d. $69,959.

Answers

Answer: $69,959

Explanation:

The amount of interest expense, that Corso will record on December 31, 2019, the company’s fiscal year end will be calculated thus:

First, we calculate the present value of payment which will be made on September 30,2020 and this will be:

= $1000000 × 0.857339

= $857339

Then, the interest expense on December 31,2018 will be:

= $857339 × 8%/12 × 3

= $17147

Therefore, the Interest expense on December 31,2019 will be:

= ($857339 + $17147) × 8%

= $874486 × 0.08

= $69959

Money is neutral in:___________
A. the short run, since it cannot alter the real aggregate output or price level in the short run.
B. both the short and long run, since it cannot alter price levels or aggregate output in the long and short run.
C. the long run, since it only affects the price level, but not aggregate output or interest rates.
D. the short run, since it cannot alter the price levels or interest rate in the short run.

Answers

Answer:

C

Explanation:

Money neutrality is a theory which submits that money supply only affect nominal variable and not real variables.

Nominal variables include price, wages and exchange rate

real variables include employment and real GDP

Money is only neutral in the long run and not in the short run because of money illusion. Money illusion causes economic agents to respond to money supply changes.

Money is neutral only in the long run

THESE ARE TRUE OR FALSE!! PLEASE HELP ASAP!!
1. A letter of application is just a general business letter.
- 2. Getting a position interview is the main purpose of a letter of application.
3. It is important that a letter of application be businesslike and courteous.
– 4. It is not necessary to include a personal data sheet if you have a well-written and complete
letter of application.
5. It is a good idea to restrict yourself to just one good source of job leads.
6. Completing the position application form is not very important in the job-search process.
7. Some employers use ability tests to find out how well job applicants can do certain job
tasks.
8. Being dressed very informally for a position interview lets the employer know that you are
"cool" and will get along well with everybody.
9. A positive attitude toward work has many benefits.
10. When you leave a job, you should exit as soon as possible.

Answers

1. False
2. False
3. True
4. False
5. false
6. False
7. True
8. False
9. True
10. False

Kemper Company's balance sheet and income statement are shown below (in millions of dollars). The company and its creditors have agreed upon a voluntary reorganization plan. In this plan, each share of the $5 preferred will be exchanged for one share of $1.00 preferred with a par value of $25 plus one 9% subordinated income debenture with a par value of $75. The $9 preferred issue will be retired with cash. The company's tax rate is 30 percent.
Balance Sheet prior to Reorganization (in millions
Current Assets 400 Current liabilities 350
Net fixed assets 450 Advance payments 20
$5 preferred stock, $100 par value (1,000,000) shares 100
$9 preferred stock, no par, callable at 100 (160,000 shares) 30
Common stock, $0.10 par value (10,000,000) shares 50
Retained earnings 300
Total assets 850 Total claims 850

a. Construct the pro forma balance sheet after reorganization takes place. Show the new preferred at its par value.
b. Construct the pro forma income statement after reorganization takes place. How does the recapitalization affect net income available to common stockholders?

Answers

Answer:

Kemper Company

a. Pro forma Balance Sheet after Reorganization (in millions)

Current Assets                            400      

Net fixed assets                          450      

Total assets                                 850

Current liabilities                         350

Advance payments                       20

9% subordinated Debenture,

$75 par value (1,000,000)           75

$1 preferred stock, $25 par value

(1,000,000) shares                       25

Common stock, $0.10 par value

(10,000,000) shares                   50

Retained earnings                     300

b. Pro forma Income Statement after Reorganization (in millions)

Retained earnings                300

Income tax                              128.6 ($300/(1 - 0.3) - $300)

add $5 preferred dividend      5

$9 preferred dividend             1.44

Less: 9% debenture interest (6.75)

Income before taxes        $428.29

Income tax                           128.49

Income after taxes           $299.80

Preferred dividend                  1.00

Retained earnings           $298.80

The recapitalization reduces the net income available to common stockholders by $0.2 million.

Explanation:

a) Data and Calculations:

Kemper Company

Balance Sheet prior to Reorganization (in millions

Current Assets                            400      

Net fixed assets                          450      

Total assets                                 850

Current liabilities                         350

Advance payments                       20

$5 preferred stock, $100 par value

(1,000,000) shares                      100

$9 preferred stock, no par,

callable at 100 (160,000 shares) 30

Common stock, $0.10 par value

(10,000,000) shares                   50

Retained earnings                     300

Total assets 850 Total claims  850

Transaction Analysis:

$5 preferred stock, $100 par value (1,000,000) shares $100 $1 Preferred stock, $25 par value (1,000,000) shares $25 9% subordinated Debenture, $75 par value (1,000,000) $75

$9 preferred stock, no par, callable at 100 (160,000 shares) 30 Cash $30

Total assets 850 Total claims  850

Aztec Company sells its product for $160 per unit. Its actual and budgeted sales follow

Units Dollars
April (actual) 4,500 720,000
May (actual) 2,200 352,000
June (budgeted) 5,000 800,000
July (budgeted) 4,000 799,000
August (budgeted) 3,000 600,000

All sales are on credit. Recent experience shows that 28% of credit sales are collected in the month of the sale, 42% in the month after the sale, 27% in the second month after the sale, and 3% prove to be uncollectible. The product's purchase price is $110 per unit, 60% of purchases made in a month is paid in that month and the other 40% is paid in the next month. The company has the policy to maintain an ending monthly inventory of 18% of the next month's unit sales plus a safety stock of 180 units. The April 30 and May 31 actual Inventory levels are consistent with this policy. Selling and administrative expenses for the year are $1,584,000 and are paid evenly throughout the year In cash. The company's minimum cash balance at the month-end is $120,000. This minimum is maintained, If necessary, by borrowing cash from the bank. If the balance exceeds $120,000, the company repays as much of the loan as It can without going below the minimum. This type of loan carries an annual 13% interest rate. On May 31, the loan balance is $39,500, and the company's cash balance Is $120,000

Required:
a. Prepare a schedule that shows the computation of cash collections of its credit sales (accounts receivable) in each of the months of June and July.
b. Prepare a schedule that shows the computation of budgeted ending inventories (in units) for April, May, June, and July.
c. Prepare the merchandise purchases budget for May, June, and July. Report calculations in units and then show the dollar amount of purchases for each month.
d. Prepare a schedule showing the computation of cash payments for product purchases for June and July.
e. Prepare a cash budget for June and July, including any loan activity and interest expense. Compute the loan balance at the end of each month.

Answers

Answer:

a. Total cash collections are as follows:

June = $605,760

July = $715,580

b.  Ending units are as follows:

April = 623 units

May = 1,295 units

June = 1,055 units

July = 815 units

c-1. Units purchased are as follows:

May = 2,872 units

June = 4,760 units

July = 2,130 units

c-2. Purchases amount are as follows:

May = $315,920

June = $523,600

July = $234,300

d. Cash payments for product purchases are as follows:

June = $440,528

July = $350,020

e. Loan Balance End of Month are as follows:

June = $1,324,163

July = $2,226,541

Explanation:

Note: See the attached excel file for requirements a, b, c, d, and e.

In the attached excel file under requirement e, the following calculations is made:

June additional loan = Minimum required cash balance - June Preliminary cash balance = $110,000 - (-$1,169,663) = $110,000 + $1,169,663 = $1,279,663

July additional loan = Minimum required cash balance - July Preliminary cash balance = $110,000 - (-$792,378) = $110,000 + $792,378 = $902,378

During 2016, its first year of operations, Baginski Steel Corporation reported a net operating loss of $375,000 for financial reporting and tax purposes. The enacted tax rate is 40%.
Required:
1. Prepare the journal entry to recognize the income tax benefit of the net operating loss. Assume the weight of available evidence suggests future taxable income sufficient to benefit from future deductible amounts from the net operating loss carryforward.
2. Show the lower portion of the 2016 income statement that reports the income tax benefit of the net operating loss.

Answers

Answer:

1. Debit Deferred Tax Liability for $150,000; and Credit Income Tax Benefit -Operating Loss for $150,000.

2. See part 2 below for how it is shown.

Explanation:

1. Prepare the journal entry to recognize the income tax benefit of the net operating loss.

Income tax benefit = Net operating loss * Tax rate = $375,000 * 40% = $150,000

The journal entry will look as follows:

Particulars                                                 Debit ($)         Credit ($)    

Deferred Tax Liability                               150,000

Income Tax Benefit - Operating Loss                            150,000

(To record the income tax benefit)                                                      

2. Show the lower portion of the 2016 income statement that reports the income tax benefit of the net operating loss.

This can be shown as follows:

Baginski Steel Corporation

Income Statement

For the Year Ended 2016

Details                                                 $              

Net operating loss                       (375,000)

Income tax benefit                      150,000  

Net loss                                      (225,000)  

For what reason might keeping an accounts payable subsidiary ledger be unnecessary for a business? A. if the business is very small B. if the business processes invoices for payment. C. if the business pays only on account D. if the business has more customers then vendors

Answers

Answer:

A. if the business is very small

Explanation:

Subsidiary ledgers are maintained to support the entries in the main ledger. They give more details of the individual items in the main ledger.

They are usually used when a company has large sales volumes to make sure transactions are accurate.

However in small businesses there no need for subsidiary ledger in a small company.

Accounts payable subsidiary ledger shows details of amounts owed to suppliers by a business.

When the business is very small there will be no need for this.

A company is considering the purchase of new equipment for $480,000. The projected after-tax net income is $80,000 per year after deducting $160,000 of annual depreciation expense. The equipment has a useful life of 3 years and no salvage value. What is the payback period for the new equipment?
a. 2 years.
b. 3 years.
c. 4 years.
d. 5 years.
e. 6 years.

Answers

Answer:

a. 2 years.

Explanation:

Annual cash flow = After-tax net income + Depreciation

Annual cash flow = $80,000 + $160,000

Annual cash flow = $240,000

Payback Period = Cost of Project / Annual cash Flow

Payback Period = $480,000 / $240,000

Payback Period = 2 years

So, the payback period for the new equipment is 2 years.

accounting is the language of business​

Answers

The answer is to your problem is yes

The following transactions occurred during July:

a. Received $1,090 cash for services provided to a customer during July.
b. Issued common stock for $5,800 cash.
c. Received $940 from a customer in partial payment of his account receivable which arose from sales in June.
d. Provided services to a customer on credit, $565.
e. Borrowed $7,900 from the bank by signing a promissory note.
f. Received $1,440 cash from a customer for services to be performed next year.

Required:
What was the amount of revenue for July?

Answers

Answer:  

$1,655

Explanation:

Revenue results from transactions with customers. We recognize revenue when services or goods have been transferred to customers not as when they are paid.

Calculation of Revenue for July :

Transaction a              $1,090

Transaction d                $565

Total Revenue            $1,655

therefore,

The amount of revenue for July is  $1,655.

The net income for Bramble Corp. for 2022 was $264,300. For 2022, depreciation on plant assets was $65,600, and the company incurred a loss on disposal of plant assets of $30,300.

Required:
Compute net cash provided by operating activities under the indirect method, assuming there were no other changes in the company’s accounts.

Answers

Answer:

$360,200

Explanation:

Indirect method reconciles the Net Income to Cash from operating cashflows.

Cash flow from operating activities

Net Income                                                           $264,300

Adjust for non- cash items :

Depreciation                                                          $65,600

Loss on disposal of plant asset                            $30,300

Net Cash Provided by Operating Activities      $360,200

thus,

net cash provided by operating activities is $360,200

You are evaluatig an equity investment in a public company called Corona Corp (ticker: COR). You expect the company will pay a $2.00 dividend per share at the end of next year and that dividends will grow at a constant rate of 5% annually in the future. You require a 13% return on investments in equity. Based on these assumptions, what is the fair value of a share of COR stock today?

Answers

Answer:

$25

Explanation:

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

2/ 0.13 - 0.08 = $25

Which of the following allows an individual to gain from unexpected inflation?

Answers

What allows an individual to gain from unexpected inflation are stocks

Thornton Industries began construction of a warehouse on July 1, 2021. The project was completed on March 31, 2022. No new loans were required to fund construction. Thornton does have the following two interest-bearing liabilities that were outstanding throughout the construction period:
$3,000,000, 12% note
$7,000,000, 7% bonds
Construction expenditures incurred were as follows:
July 1, 2021 $ 700,000
September 30, 2021 990,000
November 30, 2021 990,000
January 30, 2022 930,000
The company’s fiscal year-end is December 31.
Required:
Calculate the amount of interest capitalized for 2021 and 2022.
Calculate the amount of interest capitalized for 2021. (Do not round the intermediate calculations. Round your percentage answers to 1 decimal place (i.e. 0.123 should be entered as 12.3%).)
Date Expenditure Weight Average
July 1, 2021 x =
September 30, 2021 x =
November 30, 2021 x =
Accumulated expenditures
Amount Interest Rate Capitalized Interest
Average accumulated expenditures x % x =
2021
Date Expenditure Weight Average
January 1, 2022 x =
January 30, 2022 x =
Amount Interest Rate Capitalized Interest
Average accumulated expenditures x x =

Answers

Solution :

The interest capitalization for 2021

Date                  Expenditure  x   Weight      =      Average

1 July,2021         700,000              6/12                350,000

30 Sept,2021     990,000              3/12               247,500

30 Nov, 2021     990,000              1/12                 82,500

Total                  2,680,000                                   680,000

                                               Amount  x interest rate  = Capitalization interest

Average total expenditure   680,000       8.50%                    57,800

The weighted average interest rate

[tex]$=\frac{3,000,000 \times 12\% + 7,000,000 \times 7\%}{3,000,000+7,000,000}$[/tex]

= 8.5 %

Balance as on 1st Jan, 2022 = [tex]$2,680,000+57,800 = 2,737,800$[/tex]

The interest Capitalized for 2022

Date                  Expenditure  x   Weight      =      Average

1 Jan,2022          2,737,800          12/12              2,737,800

30 Jan, 2022      930,000             11/12               852,500

Accumulated      3,667,800                                 3,590,300

expenditures

                                               Amount  x interest rate  = Capitalization interest

Average accumulated            3,590,000       8.50%                    305,175.5

expenditure  

On May 13, 2020, Otto, Parker and Quentin bought a parcel of land as tenants in common. The deed provided that Otto owned 1/2 the property and Parker and Quentin each owned 1/4 each. If Quentin dies, the property will be divided as follows:

a. Otto 1/2. Parker 1/2
b. Otto 5/8, Parker 3/8
c. Otto 1/3, Parker 1/3, Quentin's heirs 1/3
d. Otto 1/2. Parker 1/4, Quentin's heirs 1/4

Answers

Answer:D. Otto 1/2. Parker 1/4, Quentin's heirs 1/4

Explanation:

Based on the information given in the question, if Quentin dies, the property will be divided as Otto 1/2. Parker 1/4, Quentin's heirs 1/4.

When a tenant in common dies, it should be noted that their share of a property will be passed to their legal heir and thesame percentage of ownership will be shared by the co-owners. Hence the correct option is D

Dennis sells short 100 shares of ARC stock at $152 per share on January 15, 2020. He buys 200 shares of ARC stock on April 1, 2020, at $190 per share. On May 2, 2020, he closes the short sale by delivering 100 of the shares purchased on April 1
a. What are the amount and nature of Dennis’s loss upon closing the short sale?
b. When does the holding period for the remaining 100 shares begin?
c. If Dennis sells (at $27 per share) the remaining 100 shares on January 20, 2017, what will be the nature of his gain or loss?

Answers

Answer: See explanation

Explanation:

a. What are the amount and nature of Dennis’s loss upon closing the short sale?

Sales consideration = $100 × $152 = $15200

Less: Closing Value of Short sales = 100 × $190 = $19000

Short term capital loss = $3800

b. When does the holding period for the remaining 100 shares begin?

The holding period for the remaining 100 shares begin on May 2, 2020, which was when the short sale was closed.

c. If Dennis sells (at $27 per share) the remaining 100 shares on January 20, 2017, what will be the nature of his gain or loss?

Sales consideration = 100 × $27 = $2700

Less: Base value = $19000

Short term capital loss = $16300

Firm ABC sells 1000 units of widgets for $10 per unit per-week. Per-week it pays its employees $1500, rent $2000, materials $1000, and the owner gives himself a salary of $3000 per week. The owner left his job as an engineer making $5000 per-week to start his business. In addition, he would be making an interest of $200 per week on his savings which he withdrew to start the business.
a. The firm's accounting profit per week is equal to $6500
b. The firm's explicit cost is smaller than its implicit cost per week
c. The firm's economic profit per week is equal to $300
d. The firm's economic loss per week is equal to $700

Answers

Answer:

C

Explanation:

In the trade-off theory, debt levels chosen to balance interest tax shield against the costs of financial distress imply:________

a. an interior optimum (firm value maximizing) debt ratio
b. that investors are irrational, since they require lower returns the hgher the risk
c. that a firm would use little to no debt
d. that a firm would borrow as much as possible

Answers

Answer:

a) an interior optimum (firm value maximizing) debt ratio

Explanation:

Trade off Theory is about capital structure of an economic unit. It mentions about the benefit of debt - ie tax saving, as interest on debt is tax deductible; & cost of debt - bankruptcy & insolvency risk, due to fix interest cost.

The theory depicts the debt level, which is best to - balance interest tax shield against the costs of financial distress imply, which implies that it seeks a balance between benefit & cost of debt.

So, the theory finds the best interior optimum (firm value maximising) debt equity ratio.

Choose the term that best matches the description given.

Goals that include some details are called

specific goals
realistic goals
planning goals

Answers

Specific Goals are goals that are specific, and example would be “I want to go to the beach and meditiate” so you would make it specific by saying in detail how you would get there like “sub” goals. Realistic Goals is when you have a goal that can be achieved. I’m not sure what a planning goal is.

A non-governmental not-for-profit university in California charges its students tuition of $10,000,000. However, financial aid grants total $2,200,000. In addition, the school receives a $1,000,000 grant restricted for faculty salaries. Of this amount, $300,000 is spent appropriately this year. On the statement of activities, the school reports three categories: (1) revenues and support, (2) net assets released from restrictions, and (3) expenses. Which of the following is not true?
A. In the unrestricted net assets, the revenues and support should total $1.14 million.
B. Unrestricted net assets shows the $160,000 as a direct reduction to the tuition revenue balance.
C. Unrestricted net assets should recognize expenses of $24,000.
D. Unrestricted net assets should show an increase of $24,000 for net assets reclassified.

Answers

Answer:

b. In the unrestricted net assets, the revenues and support should total $10,000,000.

Explanation:

Based on the information given the statements that is NOT true will be "IN THE UNRESTRICTED NET ASSETS, THE REVENUES AND SUPPORT SHOULD TOTAL $10,000,000 reason been that in a non-governmental not-for-profit school the the financial grant that was provided by the school will reduce the tuition revenue which therefore means that the FINANCIAL SUPPORT OR GRANTS REVENUES AND SUPPORT should total only the amount of $7,800,000 calculated as ($10,000,000-$2,200,000).

he following labor standards have been established for a particular product: Standard labor-hours per unit of output 10.1 hours Standard labor rate $ 13.90 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 7,900 hours Actual total labor cost $ 106,650 Actual output 1,100 units
What is the labor efficiency variance for the month?
a. $47,779 F
b. $47,779 U
c. $43,335 F
d. $44,619 F

Answers

Answer:

d. $44,619 Favorable

Explanation:

Given the above information, labor efficiency variance is computed as;

= (Standard quantity - Actual quantity) × Standard rate

Standard quantity = 10.1 × 1,100 = 11110

Actual quantity = 7,900

Standard rate = $13.9

Then,

Labor efficiency variance =

(11,110 - 7,900) × $13.90

= (3,210) × $13.90

= $44,619 favorable

Grouper Company purchased an electric wax melter on April 30, 2020, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase.

List price of new melter $21,804
Cash paid 13,800
Cost of old melter (5-year life, $966 salvage value) 15,456
Accumulated Depreciation-old melter (straight-line) 8,694
Secondhand fair value of old melter 7,176

Required:
Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Sage’s fiscal year ends on December 31, and depreciation has been recorded through December 31, 2020.

Answers

Answer and Explanation:

The journal entries are shown below;

a. the exchange has commercial substance

Depreciation expense (($15,456 - $966) ÷ 5 × 4 ÷ 12 ) $966

         To Accumulate depreciation $966

(being depreciation expense is recorded)

New Melter ($13,800 + $7,176) $20,976

accumulated depreciation ($8,694 + $966) $9,660

      To loss on sale of melter $1,380

      To old melter $15,456

      To cash $13,800

(being equipment exchange is recorded)

b. The exchange lacks commercial substance

Depreciation expense (($15,456 - $966) ÷ 5 × 4 ÷ 12 ) $966

         To Accumulate depreciation $966

(being current depreciation expense is recorded)

New Melter ($13,800 + $7,176) $20,976

accumulated depreciation ($8,694 + $966) $9,660

      To loss on sale of melter $1,380

      To old melter $15,456

      To cash $13,800

(being equipment exchange is recorded)

guns has decided to organixe

Answers

Answer:

why wont people stop thinking about guns and help your community out let god get into your hangs its not about guns its about communication helping love this outside world is to enjoy the whole world

I agree with person on top!

The financial statements for Highland Corporation included the following selected information:
Common stock $ 1,000,000
Retained earnings $ 770,000
Net income $ 1,020,000
Shares issued 100,000
Shares outstanding 77,000
Dividends declared and paid $ 690,000
The common stock was sold at a price of $31 per share.
1. What is the amount o f additional paid-in capital?
2. What was the amount of retained earnings at the beginning of the year?
3. How many shares are in treasury stock?

Answers

Answer:

Highland Corporation

1. The amount of additional paid-in capital is:

= $210,000.

2. The amount of the retained earnings at the beginning of the year is:

= $440,000.

3.  The number of shares in treasury stock is:

= 23,000 shares.

Explanation:

a) Data and Calculations:

Common stock                       $ 1,000,000

Retained earnings                    $ 770,000

Net income                            $ 1,020,000

Shares issued                              100,000

Shares outstanding                       77,000

Dividends declared and paid  $ 690,000

Price of common stock = $31 per share

1. The amount of additional paid-in capital is:

Issued stock = 100,000 * ($31 - $10) = $210,000

2. The amount of the retained earnings at the beginning of the year:

Retained earnings at the ending       $ 770,000

Add dividend                                         690,000

Total available for distribution         $1,460,000

Less Net income                                1,020,000

Retained earnings at the beginning $440,000

3. Treasury stock = 23,000 (100,000 - 77,000)

What’s the answer here please

Answers

I think the answer is b but I could be wrong

The answer is B because it’s talking about leadership, not like following. Which would be a person who would follow the thing that leader does or say but they also still care for themselves.



Hope this helps!

a.) Suppose that South Pangean debt is $100 million and the interest rate it pays on that debt is 4 percent. That means its interest payments must be $ million.
b.) If South Pangean expenditures are $30 million without interest payments, that means its expenditures with interest payments are $ million.

Answers

Answer:

a

$4 million

b.

expenditures with interest payments

Explanation:

a.

The interest payment is the value of debt taken multiplied by the interest rate on the debt.

In other words, the interest payment is computed using the below formula:

annual interest payment=value of debt*interest rate

value of debt=$100 million

interest rate=4%

annual interest payment=$100 million*4%

annual interest payment=$4 million

b.

The expenditures with interest payments are is the expenditures without interest payments plus interest payments determined as $4million above

expenditures with interest payments=expenditures without interest payments+interest payments

expenditures without interest payments=$30 million

interest payments=$4 million

expenditures with interest payments=$30million+$4million

expenditures with interest payments=$34million

The interest amount for the $ 100 million at 4% interest rate has been $4 million. The expenditure of South Pangean with interest has been $34 million.

(a) Interest has been the amount paid to the sum principal amount based on the interest rate.

Annual interest can be calculated as:

Interest = Interest rate [tex]\times[/tex] Principal sum

Interest = 4% [tex]\times[/tex] $100 Million

Interest = [tex]\rm \dfrac{4}{100}[/tex]  [tex]\times[/tex] $100 Million

Interest = $ 4 Million.

(b) The expenditures with interest have been the sum of expenditure and the interest amount.

Expenditure with interest = Expenditure + Interest

Expenditure with interest = $ 30 + $ 4 million

Expenditure with interest = $ 34 million.

For more information about the interest rate, refer to the link:

https://brainly.com/question/14445709

home trade helps in proper utilization of local resources how​

Answers

1. Higher trade volumes

2. Greater opportunities to capitalize on comparative advantages

3. More efficient use of raw materials

4. Stronger economic growth

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