Your Competitive Intelligence team reports that a wave of product liability lawsuits is likely to cause Digby to pull the product Daze entirely off the market this year. Assume Digby scraps all capacity and inventory this round, completely writing off those assets and escrowing the proceeds to a settlement fund, and assume these lawsuits will have no effect on any other products of Digby or other companies. Without Digby's product Daze how much can the industry currently produce in the Core segment? Consider only products primarily in the Core segment last year. Ignore current inventories. Figures in thousands
8,464
4,630
8,635
7,485
4,047
9,614
9,260
Answers
Answer:
The total capacity of the market in core products less the Digby's Deft is 10860 thousand units.
Explanation:
In order to completely answer the question, the complete question is found online. This question was missing some table attachments which are attached with it.
From the table, it is first noted that the core products are listed which are as below:
AxeBoltBuzzDeft DimNow as mentioned in the question, deft is to be ignored so the remaining options are:
AxeBoltBuzzDimNow the capacities of these are included which are found from the table and are as follow:
Axe=2050
Bolt=1040
Buzz=1040
Dim=1300
So the total capacity of 1 shift is
Axe+Bolt+Buzz+Dim=2050+1040+1040+1300=5430 units
As there are two shifts running so the total capacity is 5430x2=10860
So the total capacity of market in core products less the Digby's Deft is 10860 thousand units.
Related Questions
You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 10 percent, -10 percent, 17 percent, 22 percent, and 10 percent. Suppose the average inflation rate over this period was 1.5 percent and the average T-bill rate over the period was 3 percent.
a. What was the average real return on Crash-n-Burn's stock?
b. What was the average nominal risk premium on Crash-n-Burn's stock?
Answers
Answer:
Crash-n-Burn Computers
a. The average real return on Crash-n-Burn's stock is:
= 8.3%
b. The average nominal risk premium on Crash-n-Burn's stock is:
= 6.8%
Explanation:
a) Data and Calculations:
Average inflation rate = 1.5%
Average T-bill rate = 3%
Returns on stock:
Year 1 = 10%
Year 2 = -10%
Year 3 = 17%
Year 4 = 22%
Year 5 = 10%
Total returns = 49%
Average returns = Total returns/number of years
= 9.8% (49%/5)
Average real returns
= Average returns on the stock minus the inflation rate
= 8.3% (9.8% - 1.5%)
Average nominal risk premium = return on the stock minus the return on the T-bill
= 9.8% - 3%
= 6.8%
Marketing and distributing the company's product are categorized as
Answers
Answer:
thye are categorized as a channel
Explanation:
When donating non-cash items to a charity, which of the following is not
recommended?
Donating the items locally
Donating the items to non-local charities
Considering selling the items and donating cash instead
Determining whether or not the items you wish to donate are useful
Answers
Answer:
Considering selling the items and donating cash instead
Answer:
Considering selling the items and donating cash instead.
plz mark as brainliest if you want!
challenges faced when dealing with labour issues
Answers
Answer:
A huge number of work forces of our country remain partially or wholly unemployed throughout the year or some part of the season. This has led to the problems like disguised unemployment, seasonal unemployment, general unemployment and educated unemployment.
Machinery purchased for $150,000 by Tom Brady Co. in 2010 was originally estimated to have a life of 12 years with a salvage value of $24,000 at the end of that time. Depreciation has been recorded for 7 years on this basis. In 2017, it is determined that the total estimated life should be 15 years with a salvage value of $18,000 at the end of that time. Assume straight-line depreciation.
Instructions:
Determine the depreciation expense for 2017.
Answers
Answer:
$7,312.50
Explanation:
The computation of the depreciation expense for 2017 is shown below:
Book Value is
= Cost - Accumulated Depreciation
= $150,000 - {[($150,000 - $24,000) ÷ 12 ] × 7y}
= $150,000 - [($126,000 ÷ 12 ) × 7]
= $150,000 - ($10,500 × 7)
= $150,000 - $73,500
= $76,500
Now the depreciation expense for 2017 :
= ($76,500 - $18,000) ÷ (15 - 7) years
= $58,500 ÷ 8 years
= $7,312.50
Oering's Furniture Corporation is a Virginia-based manufacturer of furniture. In a recent year, it reported the following activities:
Net income $5,135
Purchase of property, plant, and equipment 1,071
Borrowings under line of credit (bank) 1,117
Proceeds from issuance of stock 11
Cash received from customers 37,164
Payments to reduce long-term debt 46
Sale of marketable securities 219
Proceeds from sale of property and equipment 6,894
Dividends paid 277
Interest paid 90
Purchase of treasury stock (stock repurchase) 2,583
Required:
Based on this information, present the cash flows from investing and financing activities sections of the cash flow statement. (List cash outflows as negative amounts.)
Answers
Answer:
Cash flows from investing activities
Purchase of property, plant, and equipment (1,071)
Sale of marketable securities 219
Proceeds from sale of property and equipment 6,894
Net Cash from investing activities 6,042
Cash flows from financing activities
Borrowings under line of credit (bank) 1,117
Proceeds from issuance of stock 11
Payments to reduce long-term debt (46)
Dividends paid (277)
Purchase of treasury stock (stock repurchase) (2,583)
Net Cash used by financing activities
Explanation:
The cash flows from investing and financing activities sections of the cash flow statement are presented as above.
An even numbered card is chosen randomly from a set of cards labeled with the numbers 1 through 8. A second even numbered card is chosen after the first card is replaced. Are these dependent or independent events?
a.
dependent
b.
independent
Answers
Answer:
independent. This is a fun question. I never thought about how I would explain it before.
Explanation:
Can you think of anything that might influence the second even card being drawn?
Let's make the question a whole lot easier. Suppose you have a coin and it's a fair one just coming from the mint. Suppose you toss it and you get either heads or tails. Can you think of a reason why you should get the same thing again or put another way, can you guess what you are going to get next?If you can't then the tosses are independent of each other. You haven't replaced anything, like once you get a tails, you weight the coin so you can never get tails again. That would be a dependent event.If you can guess consistently, you better submit a written paper to a math journal.Now go back your your question. You replaced the card. The odds are the same as for the first toss. Is there anything that has changed your mind about being able to guess.
You can't guess, so the events are independent.
On January 1, 2019, the ledger of Whispering Winds Corp. contains the following liability accounts.
Accounts Payable $56,000
Sales Taxes Payable 8,800
Unearned Service Revenue 16,100
During January, the following selected transactions occurred.
Jan. 5 Sold merchandise for cash totaling $20,520, which includes 8% sales taxes.
12 Performed services for customers who had made advance payments of $11,500. (Credit Service Revenue.)
14 Paid state revenue department for sales taxes collected in December 2018 ($8,800).
20 Sold 900 units of a new product on credit at $50 per unit, plus 8% sales tax.
21 Borrowed $22,500 from Girard Bank on a 3-month, 8%, $22,500 note.
25 Sold merchandise for cash totaling $12,420, which includes 8% sales taxes.
Required:
Journalize the January transactions.
Answers
Answer:
Whispering Winds Corp.
Journal Entries:
Jan. 5 Debit Cash $20,520
Credit Sales Revenue $19,000
Credit Sales Taxes Payable $1,520
To record the sale of goods for cash, including 8% sales tax.
Jan. 12 Debit Unearned Service Revenue $11,500
Credit Service Revenue $11,500
To record service revenue earned.
Jan. 14 Debit Sales Tax Payable $8,800
Credit Cash $8,800
To record the payment of December Sales Taxes.
Ja. 20 Debit Accounts Receivable $48,600
Credit Sales Revenue $45,000
Credit Sales Taxes Payable $3,600
To record the sale of goods on credit, including sales tax of 8%.
Jan. 21 Debit Cash $22,500
Credit 8% Notes Payable (Girard Bank) $22,500
To record the borrowing of cash for a 3-month, 8%, note.
Jan. 25 Debit Cash $12,420
Credit Sales Revenue $11,500
Credit Sales Taxes Payable $920
To record the sale of goods for cash, including 8% sales tax.
Explanation:
a) Data and Calculations:
Liability account balances:
Accounts Payable $56,000
Sales Taxes Payable 8,800
Unearned Service Revenue 16,100
Analysis of January transactions:
Jan. 5 Cash $20,520 Sales Revenue $19,000 Sales Taxes Payable $1,520
Jan. 12 Unearned Service Revenue $11,500 Service Revenue $11,500
Jan. 14 Sales Tax Payable $8,800 Cash $8,800
Ja. 20 Accounts Receivable $48,600 Sales Revenue $45,000 Sales Taxes Payable $3,600
Jan. 21 Cash $22,500 8% Notes Payable (Girard Bank) $22,500 a 3-month, 8%, note.
Jan. 25 Cash $12,420 Sales Revenue $11,500 Sales Taxes Payable $920
A subsidiary of Porter Inc., a U.S. company, is located in France. The functional currency of this subsidiary is the dollar. The subsidiary acquired inventory on credit on November 1, 2020, for 200,000 Euro. The inventory was sold on January 17, 2021 for E250,000. The subsidiary paid for the inventory on January 31, 2021. Currency exchange rates between the dollar and the Euro were as follows:
November 1, 2019 E1=1.32
December 31, 2019 E1=1.30
January 17, 2020 E1= 1.21
October 1, 2018 E1=1.35
December 31, 2018 E1=1.15
The inventory balance for this inventory in Porter's consolidated balance sheet at December 31, 2019 was _________
Answers
Answer:
$0
Explanation:
According to the scenario, computation of the given data are as follows,
Date of acquire = November 1,2020
Inventory sold on date = January 17,2021
Payment for inventory = January 31,2021
So, inventory balance for the given inventory in Porter's consolidated balance sheet on December 31,2019 was $0, because there was no transaction done on or before December 31,2019.
Wildhorse Co. had the following assets on January 1, 2022. Useful Life (in years) Item Cost Purchase Date Useful Life (in years) Salvage Value Machinery $68,000 Jan. 1, 2012 10 $ 0 Forklift 27,000 Jan. 1, 2019 5 0 Truck 33,400 Jan. 1, 2017 8 3,000 During 2022, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $11,700. The truck was discarded on December 31. Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Answers
Solution :
Journal Entry
Date Account and Explanation Debit Credit
1 Jan,2022 Accumulated depreciation-machine $ 68,000
Machine $ 68,000
30 June, Depreciation expense, [tex]$\left(\frac{27000}{5} \times \frac{6}{12}\right)$[/tex] $ 2700
2022 Accumulated depreciation- Forklift $ 2700
30 June, Cash $ 11,700
2022 Accumulated depreciation- Forklift, $ 18,900
[tex]$\left(\frac{27000}{5} \times 3.5 \right)$[/tex]
Gain on sale of forklift $ 3600
Forklift $ 27000
31 Dec, Depreciation expense, [tex]$\left( \frac{33400-3000}{8}\right)$[/tex] $ 3800
2022 Accumulated depreciation - Truck $ 3800
31 Dec, Accumulated depreciation - Truck, $ 22800
2022 [tex]$\left( \frac{33400-3000}{8} \times 6\right)$[/tex]
Loss on disposal of truck $ 10600
Truck $ 33400
a. Describe an important decision in your academic or personal life that you will have to make in the near future.
b. Using the five-step decision-making approach , analyze your decision and conclude with your "best" choice.
Answers
Explanation:
a. Describe an important decision in your academic or personal life that you will have to make in the near future.
An important decision for all people is to choose which professional career to follow, since there are people with different skills, which can cause some difficulty in choosing which academic course to follow.
It is essential that the student does research on the professions that are most consistent with their profile, it is important to read about the functions of each profession, take vocational tests, talk to other professionals, etc., so that their decision is more effective.
b. Using the five-step decision-making approach , analyze your decision and conclude with your "best" choice.
1- Identify your goals: In choosing a professional career, identifying your life goals is essential to set more achievable goals and stay focused.
2- Gather information: The more you research about the career options you intend to pursue, the easier it will be to understand the aspects that will lead to a successful decision. It is important to gather information from different sources, through internet searches, books, conversations with other workers, etc.
3- Check the consequences: This step is important for the individual to be able to see his decision in a broad sense, from the positive and negative aspects that every profession has, and thus analyze whether he will be able to deal with all of them in the best way.
4- Make the decision: In the penultimate stage the decision is made, so far you have already gathered essential information that will lead you to the decision. In the example of career choice, the decision is extremely important and can impact a person's entire life, so it is common for doubts and uncertainties to arise from the decision.
5- Evaluation of the decision: This is the step that will assist in the realization of a good decision, as in the correction of problems and development of skills that contribute to make your decision the best possible and in line with your objectives.
has any questions or problems.
4. It is the development of an ongoing connection between a company and its customers. The
relationship involves marketing communications, sales support, technical assistance and
customer service
Answers
Answer:
Customer relationship management (CRM).
Explanation:
CRM is an acronym for customer relationship management and it typically involves the process of combining strategies, techniques, practices and technology so as to effectively and efficiently manage their customer data in order to improve and enhance customer satisfaction. Therefore, these employees are saddled with the responsibility of ensuring the customer are satisfied and happy with their service at all times.
This ultimately implies that, customer relationship is focused on developing an ongoing connection between a business firm (organization) and all of its customers, as well as potential customers. The fundamentals of customer relationship is based on improving marketing communications, sales support, technical assistance and customer service so as to bring satisfaction to the customers.
Hence, the degree of satisfaction received by customers throughout their lifecycle is largely dependent on customer relationship management.
Choose one of the management or leadership theories (you may know of one not listed below) and three of the characteristics listed below. You want to research what details for each characteristic you chose applies to the selected management or leadership theory. You should write at least 100-word minimum for each characteristic.
Management and leadership theories include :_____.
a. Contingency theory
b. Systems theory
c. Chaos theory
d. Theory X and Theory Y
e. Human relations theory
f. Transactional leadership theory
g. Transformational leadership theory
h. Path-goal theory
i. Charismatic leadership theory
j. Situational leadership theory.
Different types of characteristics to consider for each management or leadership theory are :_______.
a. Traits
b. Values, integrity and moral development
c. Confidence and optimism
d. Skills and expertise
e. Behavior
f. Influence tactics
g. Attributes about followers
h. Beliefs and assumptions.
Answers
Explanation:
Theory: d. Theory X and Theory Y
Characteristics:
a. Traits
b. Values, integrity, and moral
h. Beliefs and assumptions.
The Theory X and Theory Y management theory was developed by Douglas McGregor. According to McGregor, there are two types of managers;
theory X: who takes pride in viewing his employees in a negative sense, that assuming they unmotivated and do not like work, hence believes they should be forced to work.theory Y: this manager has a positive view of his employees. He is the direct opposite of theory X manager since he believes his employees are happy to work. In other words, he believes his employees are self-motivated.Ice House Industries, Inc. has three operating departments: Cooking, Churning and Freezing. Indirect factory costs for the current period were Administrative, $560,000 and Maintenance, $98,000. Administrative costs are allocated to operating departments based on the number of workers and maintenance costs are allocated to operating departments based on square footage occupied.
cooking depart churning depart freezing depart
number of employees 2,940 employees 4,900 employees 1,960 employees
square feet occupied 33,250 Sq Ft 38,000 Sq Ft 23,750 Sq Ft
1. Based on the above data, determine the administrative cost allocated to each operating department of Ice House Industries, Inc.
(A) Cooking: $168,000 Churning: $280,000 Freezing: $112,000
(B) Cooking: $186,666 Churning: $186,666 Freezing: $186,666
(C) Cooking: $112,000 Churning: $280,000 Freezing: $168,000
(D) Cooking: $280,000 Churning: $112,000 Freezing: $168,000
(E) Cooking: $219,333 Churning: $219,333 Freezing: $219,333
A. Choice A
B. Choice B
C. Choice C
D. Choice D
E. Choice E
2. Based on the above data, determine the maintenance cost allocated to each operating department of Ice House Industries, Inc.
(A) Cooking: $219,333 Churning:$219,333 Freezing: $219,333
(B) Cooking: $230,00 Churning: $263,200 Freezing:$164,500
(C) Cooking: $33,250 Churning: $38,000 Freezing:$23,750
(D) Cooking: $32,666 Churning: $32,666 Freezing:$32,666
(E) Cooking:$34,300 Churning: $39,200 Freezing:$24,500
A. Choice A
B. Choice B
C. Choice C
D. Choice D
E. Choice E
Answers
Answer:
1. (A) Cooking: $168,000 Churning: $280,000 Freezing: $112,000
2. (E) Cooking:$34,300 Churning: $39,200 Freezing:$24,500
Explanation:
The computation is shown below:
a. For administrative cost allocated to each operating department is
Cooking
= $560,000 × 2,940 ÷ (2,940 + 4,900 + 1,960)
= $168,000
Churning
= $560,000 × 4,900 ÷ (2,940 + 4,900 + 1,960)
= $280,000
Freezing
= $560,000 × 1,960 ÷ (2,940 + 4,900 + 1,960)
= $112,000
b. For maintenance cost allocated to each operating department is
Cooking
= $98,000 × 33,250 ÷ (33,250 + 38,000 23750)
= $34,300
Churning
= $98,000 × 38,000 ÷ (33,250 + 38,000 23750)
= $39,200
And, for freezing
= $98,000 × 23,750 ÷ (33,250 + 38,000 23750)
= $24,500
est County Bank agrees to lend Cullumber Company $496000 on January 1. Cullumber Company signs a $496000, 6%, 6-month note. What entry will Cullumber Company make to pay off the note and interest at maturity assuming that interest has been accrued to June 30? Interest Payable 7440 Notes Payable 496000 Interest Expense 7440 Cash 510880 Interest Expense 14880 Notes Payable 496000 Cash 510880 Notes Payable 510880 Cash 510880 Notes Payable 496000 Interest Payable 14880 Cash 510880
Answers
Answer:
Dr Notes Payable $496,000
Dr Interest Payable $14,880
Cr Cash $510,880
Explanation:
Preparation of the journal entry that Cullumber Company will make to pay off the note and interest at maturity assuming that interest has been accrued to June 30
Dr Notes Payable $496,000
Dr Interest Payable $14,880
($496000*6%*6/12)
Cr Cash $510,880
($496,000+$14,880)
(To record note and interest at maturity)
You have $100 you have $100 to invest. If you can earn 12% interest, about how long does it take for your $100 investment to grow to $200? Suppose the interest rate is just half that, at 6%. At half the interest rate, does it take twice as long to double your money? Why or why not? How long does it take
Answers
Answer:
8.33333 years ;
Yes, the time doubles.
Explanation:
Investment amount = principal = $100
Interest rate, r = 12%
Time taken for investment to grow to $200
Using the simple interest formula :
A = P(1 + rt) ; t = time taken ; A = final amount = $200
200 = 100(1 + 0.12t)
200 = 100 + 12t
200 - 100 = 12t
100 = 12t
t = 100 / 12
t = 8.333 years
Time taken, if rate, r = 6%
200 = 100(1 + 0.06t)
200 = 100 + 6t
200 - 100 = 6t
100 = 6t
t = 100 / 6
t = 16.6666 years
12. On December 1, 2017, Vaughn Manufacturing acquired new equipment in exchange for old equipment that it had acquired in 2014. The old equipment was purchased for $222000 and had a book value of $88270. On the date of the exchange, the old equipment had a fair value of $97000. In addition, Vaughn paid $292000 cash for the new equipment, which had a list price of $392000. The exchange lacked commercial substance. At what amount should Vaughn record the new equipment for financial accounting purposes?
Answers
Answer:
$389,000
Explanation:
Calculation to determine what amount should Vaughn record the new equipment for financial accounting purposes
Equipment Amount
Old Equipment Fair Value $97,000
Cash paid $292,000
Total $389,000
($97,000+$292,000)
Therefore The amount that Vaughn should record the new equipment for financial accounting purposes is $389,000
Carla Vista Company reports the following operating results for the month of August: sales $385,000 (units 5,500), variable costs $250,000, and fixed costs $94,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 10% with no change in total variable costs or units sold. 2. Reduce variable costs to 56% of sales. Compute the net income to be earned under each alternative. 1. Net Income $ 2. Net Income $ Which course of action will produce the higher net income
Answers
Answer and Explanation:
The computation is shown below:
1.
Selling Price = Sales ÷ Units Sold
Current Selling Price = $385,000 ÷ 5500
= $70
Now
Expected Selling Price per unit = $70 + ($70× 10%)
= $77
Now
Expected Sales = 5500 × $77
= $423,500
Now
Net Income = Sales - Variable Cost - Fixed Cost
= $423,500 - $250,000 - $94,000
2.
Sales = $385000
Variable cost = $385,000 × 56% = $215,600
Sales $385,000
Less: variable cost -$215,600
Contribution Margin $169,400
Les: fixed cost -$94,000
Net Income $75,400
As we can see that if there is an increase in Selling Price by 10% so it would produce highest Net Income.
On January 1, 2021, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year period ending December 31, 2024, at which time possession of the leased asset will revert back to Aqua. The equipment cost Aqua $414,430 and has an expected economic life of five years. Aqua expects the residual value at December 31, 2024, to be $52,000. Negotiations led to Maywood guaranteeing a $73,000 residual value. Equal payments under the lease are $104,000 and are due on December 31 of each year with the first payment being made on December 31, 2021. Maywood is aware that Aqua used a 7 % interest rate when calculating lease payments. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 6 Required: 1. & 2. Prepare the appropriate entries for Maywood on January 1, 2021 and December 31, 2021, related to the lease. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.)
Answers
Answer: See explanation
Explanation:
The appropriate entries for Maywood on January 1, 2021 and December 31, 2021, related to the lease goes thus:
January 1, 2021:
Debit Right of use asset $368291
Credit Lease payment $368291
December 31, 2021:
Debit Ammortization expense $92073
Credit Rights of use asset $92073
Debit Interest expense $25780
Debit Lease payable $78220
Credit Cash $104000
The working to the above entries has been attached
Freedom Inc. has 40 employees within Denver City and County. All of the employees worked a predominant number of hours within the city. The employees earned $8.30 per hour and worked 160 hours each during the month. The employer must remit $4.00 per month per employee who earns more than $500 per month. Additionally, employees who earn more than $500 per month must have $5.75 withheld from their pay.
What is the employee and company Occupational Privilege Tax for these employees? (Round your answers to 2 decimal places.)
Answers
Answer:
the employee and company Occupational Privilege Tax for these employees is $92.00 and $64.00 respectively
Explanation:
The computation of the employee and company Occupational Privilege Tax for these employees is shown below:
The Total amount with held from employees is
= 16 × $5.75
= $92.00
And, the total amount to be paid by the employer is
=16 × $4.00
= $64.00
hence, the employee and company Occupational Privilege Tax for these employees is $92.00 and $64.00 respectively
The same is relevant
Masterson, Inc., has 4.4 million shares of common stock outstanding. The current share price is $89.50, and the book value per share is $11.25. The company also has two bond issues outstanding. The first bond issue has a face value of $81 million, a coupon rate of 5.1%, and sells for 96.5% of par. The second issue has a face value of $53 million, a coupon rate of 5.8%, and sells for 106.5% of par. The first issue matures in 25 years, the second in 9 years. The most recent dividend was $4.28 and the dividend growth rate is 5.3%. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semi-annual payments. The tax rate is 21%.
a. What are the company's capital structure weights on a book value basis?
b. What are the company's capital structure weights on a market value basis?
c. Which are more relevant, the book or market value weights?
Answers
Answer:
Masterson, Inc.
1. The company's capital structure weights on a book value basis are:
Book Value Weights:
Equity = 0.27 or 27%
Debts = 0.73 0r 73%
2. The company's capital structure weights on market value basis are:
Market Value Weights:
Equity = 0.75 or 75%
Debts = 0.25 or 25%
3. The market value weights of Masterson's common stock and debts are more relevant because they represent a more current valuation of the equity and the debts. It is easier to calculate the book value weights since the information is more readily available within the entity than the information on market weights.
Explanation:
a) Data and Calculations:
Equity Units Total Value
Outstanding common stock 4.4 million shares
Current share price $89.50 $393.8 million
Book value per share $11.25 $49.5 million
Debt Units Total Value
First bond:
Face value 81,000 $81 million
Market value 81,000 $78.165 million
Coupon rate = 5.1% $4.131 million p.a.
Second bond:
Face value 53,000 $53 million
Market value 53,000 $54.445 million
Coupon rate = 5.3% $2,809 million p.a.
Total book value of bonds 134,000 $134 million
Total market value of bonds 134,000 $132.61 million
Capital structure Equity Bonds Total
Book value $49.5 million $134 million $183.5 million
Market value $393.8 million $132.61 million $526.41 million
Book Value Weights:
Equity = $49.5/$183.5 = 0.27 or 27%
Debts = $134/$183.5 = 0.73 0r 73%
Market Value Weights:
Equity = $393.8/$526.41 = 0.75 or 75%
Debts = $132.61/$526.41 = 0.25 or 25%
Consider the following statements about the step-down method of service department cost allocation: I. Under the step-down method, all service department costs are eventually allocated to production departments. II. The order in which service department costs are allocated is important. III. After a service department's costs have been allocated to other departments, no costs are re-circulated back to that service department. Which of the above statements is (are) correct?
a. I, II, and III.
b. I only.
c. I and II.
d. II only.
e. I and III.
Answers
Answer:
The correct statements under the step-down method are:
a. I, II, and III.
Explanation:
The step-down method of allocating the costs of service departments is one of the three methods in use. The others include the direct method and the reciprocal method. With the direct method, service departments' costs are directly allocated to the production departments without any allocation to a service department. The reciprocal method is much more involved, using formulas and calculations. The step-down method allocates the service departments' costs to all the other service and production departments, except itself. This step is eventually followed until all the service departments' costs have been allocated to the production departments.
Economists sometimes describe the balance of trade as the balance of payments, because:___________
a. they are mistaking the flow of goods with the flow of money
b. each category of the current account balance involves a corresponding flow of payments in the same direction
c. each category of the current account balance involves a corresponding flow of payments in the opposite direction
d. its financial capital outflows are equal to the inflows
Answers
Answer: b. each category of the current account balance involves a corresponding flow of payments in the same direction
Explanation:
For every purchase made or sales that sold, a corresponding payment needs to be made or received.
The balance of payment therefore allows for us to be able to figure out the amount that was traded because it would be the payment received less receives.
Sparkle Metallurgy, Inc. has two service departments (Human Resources and Building Maintenance) and two production departments (Machining and Assembly). The company allocates Building Maintenance cost on the basis of square footage and Human Resources cost on the basis of employees. It believes that Building Maintenance provides more service than Human Resources. The square footage and employees in each department follow. Square Footage Employees Human Resources 4,000 10 Building Maintenance 10,000 15 Machining 15,000 40 Assembly 21,000 60 Assuming use of the step-down method, which of the following choices correctly denotes the number of square feet and employees over which the Building Maintenance cost and Human Resources cost would be allocated (i.e., spread)?
a. 19,000.
b. 44,000.
c. 50,000.
d. 63,000.
Answers
Answer:
B.40,000 square feet
Explanation:
Calculation to correctly denotes the number of square feet and employees over which the Building Maintenance cost and Human Resources cost would be allocated
Employees Human Resources 4,000
Machining 15,000
Assembly 21,000
Number of square feet 40,000
(4,000+15,000+21,000)
Therefore the number of square feet and employees over which the Building Maintenance cost and Human Resources cost would be allocated is 40,000
A synchronous decrease in energy prices and an increase in government spending will result in:
A) increases in output and a decrease in the price level in the long run.
B) Increase in short run aggregate supply and in aggregate demand
C) Increase in long run aggregate supply and a rightward shift in aggregate demand
D) A leftward shift in short run aggregated supply
E) Decrease aggregate demand and increase short run aggregate supply
Answers
Answer:
B) Increase in short run aggregate supply and in aggregate demand
Explanation:
In the case when there is a rise in the government spending so it would be increases aggregate demand. As AD curve shifts to the rightward, that rise the level of the price and increase in GDP.
On the other hand, if there is a decreasing in energy prices so it decreased the production cost, which rise aggregate supply. As AS curve shifts rightward, due to this it decrease the price level and increase the GDP.
So, The net impact is a definite increase in GDP, but the impact on price level is non-certain. As price level of the short run is non-certain, so we are not able to predict long run impacts.
A synchronous decrease in energy prices and an increase in government spending will result in "increases in output and a decrease in the price level in the long run". The correct option is A.
A synchronous decrease in energy prices reduces production costs for businesses which is leading to an increase in short-run aggregate supply.
At the same time, an increase in government spending stimulates economic activity and boosts aggregate demand. As a result, both short-run aggregate supply and aggregate demand increase.
In the short run, this combination of factors can lead to an expansion in output and potentially a decrease in the price level due to the downward pressure on production costs.
Therefore, the correct option is A.
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Marin Company’s general ledger indicates a cash balance of $22,340 as of September 30, 2021. Early in October Marin received a bank statement indicating that during September Marin had an NSF check of $1,500 returned to a customer and incurred service charges of $45. Marin also learned it had incorrectly recorded a check received from a customer on September 15 as $500 when in fact the check was for $550.
Required:
Calculate Marin’s correct September 30, 2016, cash balance.
Answers
Answer:
See below
Explanation:
With regards to the above, Marin's correct September 30, 2016 cash balance is computed below;
Balance as per cash book
$22,340
Add: Error in recording cash receipt
($550 - $500)
$50
Less: Bank service charge
($45)
Less: NSF check
($1,500)
Corrected cash book
$20,845
On May 3, 2020, Sweet Company consigned 70 freezers, costing $450 each, to Remmers Company. The cost of shipping the freezers amounted to $890 and was paid by Sweet Company. On December 30, 2020, a report was received from the consignee, indicating that 35 freezers had been sold for $740 each. Remittance was made by the consignee for the amount due after deducting a commission of 6%, advertising of $200, and total installation costs of $330 on the freezers sold.
Required:
a. Compute the inventory value of the units unsold in the hands of the consignee.
b. Compute the profit for the consignor for the units sold.
c. Compute the amount of cash that will be remitted by the consignee.
Answers
Answer:
A. $16,195
B. $7,621
C. $23,816
Explanation:
a. Computation for the inventory value of the units unsold in the hands of the consignee.
Inventory value of the units unsold
First step is to calculate the Total inventory value
Inventory cost $31,500
(70 * $450)
Add Freight $890
Total inventory value $32,390
($31,500+$890)
Now let calculate the Inventory value of the units unsold
Inventory value of units unsold =($32,390 / 2)
Inventory value of units unsold =$16,195
Therefore the inventory value of the units unsold in the hands of the consignee is $16,195
b. Computation for the profit for the consignor for the units sold
Sales $25,900
(35 * $740)
Less Cost of unit sold ($16,195)
($32,390 / 2)
Less Commission ($1,554)
($25,900 * 6%)
Less Advertising ($200)
Less Installation cost ($330)
Profit for the consignor $7,621
Therefore the profit for the consignor for the units sold will be $7,621
c. Computation for the amount of cash that will be remitted by the consignee.
Sales $25,900
Less Commission ($1,554)
($25,900 * 6%)
Less Advertising ($200)
Less Installation cost ($330)
Cash remitted $23,816
Therefore the amount of cash that will be remitted by the consignee is $23,816
Question 5 of 10 Atax added to the cost of an item bought at a store is ain) O A credit tax 2. income tax c. property tax D sales tax
Answers
A tax added to the cost of an item bought in a store is a sales tax. Thus, option D is correct.
What is a sales tax?A sales tax is a fee that is paid to the government when specified goods and services are sold. Typically, laws permit the vendor to charge the customer the tax at the time of purchase.
Use taxes are typically used to describe taxes on goods and services that consumers pay directly to a governing authority. The sale and use tax is frequently exempted for some goods and services, including food, education, and medical. A sales tax is similar to a value-added tax (VAT) that is levied on products and services. Key distinctions can be found in the comparison with sales tax. The sale of this item is subject to a retail sales tax of 8.5%, which is shown on the cash register receipt.
Therefore, we can conclude that option D is correct.
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Two years ago, you purchased 100 shares of General Mills Corporation. Your purchase price was $53 a share, plus a total commission of $34 to purchase the stock. During the last two years, you have received the following dividend amounts: $1.90 per share for the first year and $2.03 per share the second year. Also, assume that at the end of two years, you sold your General Mills stock for $59 a share minus a total commission of $41 to sell the stock.
Required:
a. Calculate the dividend yield for your General Mills stock at the time you purchased it.
b. Calculate the dividend yield for your General Mills stock at the time you sold it.
c. Calculate the total return for your General Mills investment when you sold the stock at the end of two years.
d. Calculate the annualized holding period yield for your General Mills investment at the end of the two-year period.
Answers
Answer:
Purchase Price $53 * 100 = $5300
Commission = $53
Total Cost $5353
D1 = $1.90 * 100 = 190
D2 = $2.03 * 100 = 203
Sale value of shares $59*100 $5900
Less: Commission $41
Net sale value $5859
a. Dividend yield at the time of purchase:
= D1/P0
= $1.90/$53
= 3.59%
b. Dividend yield at the time of sale:
= D2/P1
= $2.03/$41
= 4.95%
c. Total Return for 2 years = $5859 + $190 + $203 - $5353
Total Return for 2 years = $899
d. Annualized holding period yield = ($899/$5353) * 1/2
Annualized holding period yield = 0.0839716
Annualized holding period yield = 8.40%
The following information pertains to Brian Stone Corporation: Beginning fixed manufacturing overhead in inventory $60,000 Ending fixed manufacturing overhead in inventory 45,000 Beginning variable manufacturing overhead in $30,000 inventory Ending variable manufacturing overhead in inventory 14,250 Fixed selling and administrative costs $724,000 Units produced 5,000 units Units sold 4,800 units What is the difference between operating incomes under absorption costing and variable costing
Answers
Answer:
$15,000
Explanation:
Calculation to determine What is the difference between operating incomes under absorption costing and variable costing
Using this formula
Rifference between operating incomes under absorption costing and variable costing=Beginning fixed manufacturing overhead in inventory -Ending fixed manufacturing overhead in inventory
Let plug in the formula
Diifference between operating incomes under absorption costing and variable costing=$60,000-$45,000
Diifference between operating incomes under absorption costing and variable costing=$15,000
Therefore the difference between operating incomes under absorption costing and variable costingis $15,000