ZNet co. is a web based retail company. The company reports the following for the past year. The company's CEO believes that sales for next year will increase by 10% and both profit margin and the level of average invested assets will be the same as for the past year
1. Compute return on investment for 20172. Compute profit margin for 20173. If the CEO's forecast is correct, what will return on investment equal for 2018?4. If the CEO's forecast is correct, what will investment turnover equal for 2018?

Answer:

$1.56

Explanation:

Lets assume the dividend paid for year zero is $1. The growth for the first  3 years is 25% which is given in the question. Now we will find the value of the Projected dividend for year 2 using the compounding formula, as under:

The Projected dividend for year 1 = $1 * (1 + 25%)^ 2 years = $1.56

Answer:

they are the interface between the brand and the customer

Explanation:

Based on the information provided within the question it can be said that the personnel in SuperCuts are the interface between the brand and the customer. The personnel are the ones that interact on a daily basis with the shoppers and provide all the information that they need regarding the SuperCut's brand in order to generate sales.

Answer and Explanation:

The Journal entries are shown below:-

Interest expense Dr, $316,800

Premium on bonds payable Dr, $19,200 ($96,000 ÷ 5)

            To Interest payable $336,000    ($4,800,000 × 7%)

(Being interest expense and bond premium amortization is recorded)

Here we debited the interest expenses and premium on bonds as it increased the expenses and we credited the interest payable as it also increased the liabilities

Answer:

c. The contribution margin per gallon of throughput for each product

Explanation:

contribution margin per gallon = Revenue per gallon - variable cost per gallon.

Contribution margin would enable the company to know the amount each product earns in excess after variable cost has been subtracted from revenue.

the product with the highest contribution margin should be considered.

Answer:

Optimum

Explanation:

The Classical approach to decision making is specific on making decisions to achieve required outcome. Under this approach, decisions are rationl and geared towards one stable and sustainable goal. The most appropriate decision possible in light of what is believed to be the most desirable consequences for the organization is the Optimum. The decision maker always makes decisions based on what is the best interests of that organization.

Answer:

Cereal

Explanation:

Process operations system which is also known as either process manufacturing or process production can be defined as the way of producing a product in mass, by making use of mass production method and this product are often produce in a continuous flow.

Therefore CEREAL is the products that is most likely to be produced in a process operations system because the production of Cereal is mostly carried out or produce in a process operations system.

Answer: 3,200 units

Explanation:

The Units transferred out during the year will be those that were inherited from the previous period as well as those started during the year less the closing inventory still in progress.

The formula to calculate the units is therefore;

= Opening inventory + Started during the year - Closing Inventory

= 500 + 3,000 - 300

= 3,200 units

Answer and Explanation:

The journal entries are shown below:

1. Salaries expense Dr $1,560,000

          To Social security tax payable  $93,600

          To Medicare tax payable $23,400

          To Federal income tax withheld payable $312,000

          To Salaries payable $1,131,000

(Being the payroll is recorded)

For recording this we debited the salary expense as it increased the expenses and credited all payable as it also increased the liabilities

2. Payroll tax expense Dr $132,600

          To Social security tax payable  $93,600

          To Medicare tax payable $23,400

          To State unemployment tax payable ($260,000 × 5.4%) $14,040

          To Federal unemployment tax payable ($260,000 × 0.6%) $1,560

(being the payroll tax expense is recorded)

For recording this we debited the payroll expense as it increased the expenses and credited all payable as it also increased the liabilities

Answer:

A. Total two-year interest cost under long term fixed-rate plan is $195,800; while total two-year interest cost under short term variable-rate is $176,220.

B. Short-term variable-rate plan is less costly.

Explanation:

A. Determine the total two-year interest cost under each plan.

This can be determined for each of the plan as follows:

For Long term fixed-rate plan

Total two-year interest cost under long term fixed-rate plan = Amount required * Interest rate per year * Number of years = $890,000 * 11% * 2 = $195,800

For Short term variable-rate

First year interest cost under short term variable-rate = Amount required * First year interest rate = $890,000 * 7.25% = $64,525

Second year interest cost under short term variable-rate = Amount required * Second year interest rate = $890,000 * 12.55% = $111,695

Total two-year interest cost under short term variable-rate = First year interest cost + Second year interest cost = $64,525 + $111,695 = $176,220

Therefore, we have:

                                                         Interest Cost

Long term fixed-rate plan                   $195,800

Short term variable-rate                      $176,220

B. Which plan is less costly?

Since the total two-year interest cost under short term variable-rate of  $176,220 is less than $195,8000 total two-year interest cost under long term fixed-rate plan, the Short-term variable-rate plan is therefore less costly.

Answer:

The answer is ' a profit of $14 million

Explanation:

Revenue = $24 million

Total expenses = $10 million

Profit(loss) = Revenue minus total expenses

$24 million - $10 million

Profit = $14 million.

It is a profit because revenue is greater than total expenses. Adventure Enterprises will report a loss if reported total expenses was greater than reported revenue

Answer:

P/E Ratio = 12x or 12 times

Explanation:

We know that the P/E ratio is calculated by dividing the price per share by the earnings per share or EPS.

P/E = Price per share / Earnings per share

We already have EPS. We need to calculate the price per share.

It is given that book value per share is $20 and the market to book ratio is 1.2x or 1.2 times. Using the formula for market to book ratio, we calculate the market price per share to be,

M/B = Market price per share / Book value per share

1.2 = Market price per share / 20

20 * 1.2 = Market price per share

Market price per share = $24

So, P/E ratio = 24 / 2

P/E Ratio = 12x or 12 times

Answer:

Crafty Crafts:

Return on Assets Ratio = Net Income/Average Assets x 100

= $1,040/46,350 x 100

= 2.2%

Explanation:

a) Data

                                       Crafty Crafts          Hobbies, Inc.

Total liabilities, 2016            $31,957               $25,461

Total liabilities, 2015              36,104                 30,046

Total assets, 2016                 46,186                 32,872

Total assets, 2015                 46,514                 35,208

Net sales, 2016                    161,466                  81,702

Net income, 2016                    1,040                    1,766

b) Average Assets:

Crafty Crafts = (2016 + 2015 assets)/2 = ($46,186 + 46,514)/2 = $46,350

c) The Return on Assets Ratio: This financial performance ratio shows how much of the earnings is generated from the assets of the company in a particular period.  It shows the efficiency of management to generate profit from the assets.  Usually, the average assets value is used to even the variations over the period.

Answer:

The amount willing to pay to buy one share is $6.92.

Explanation:

The announcement by company to pay annual dividend = $0.10

2nd year divident amount = $0.20

3rd year divident amount = $0.30

4th year divident amount = $0.40

5th-year divident amount = $0.50

The increase in dividend = 2 percent.

The desired rate of return = 8%

Value after year 5 = (D5 × Growth rate) / (Required rate-Growth rate)

=(0.5 × 1.02) / (0.08-0.02)

=8.5

Therefore, the current value = Future dividend and value × Present value of discounting factor(rate%,time period)

=0.1/1.08 + 0.2/1.08^2 + 0.3/1.08^3 + 0.4/1.08^4 + 0.5/1.08^5 + 8.5/1.08^5

=$6.92.

Answer:

Jayhawk Corporation

Transaction Assets = Liabilities Stockholders' Equity

1. Issue common stock in exchange for cash. Increase= No effect + Increase

2. Purchase business supplies on account. Increase =  Increase + No effect

3. Pay for legal services for the current month. Decrease = No effect +  Decrease

4. Provide services to customers on account. Increase = No effect +  Increase

5. Pay employee salaries for the current month. Decrease = No effect +  Decrease

6. Provide services to customers for cash. Increase = No effect +  Increase

7. Pay for advertising for the current month. Decrease = No effect +  Decrease

8. Repay loan from the bank. Decrease = Decrease +  No effect

9. Pay dividends to stockholders. Decrease = No effect +  Decrease

10. Receive cash from customers in (4) above. Increase + Decrease = No effect +  No effect

11. Pay for supplies purchased in (2) above. Decrease = Decrease + No effect

Explanation:

The accounting equation states that Assets are equal to Liabilities Plus Equity.  This equation remains true for every business transaction, which affects two accounts on either side of the equation.  This keeps the equation in equilibrium or balance with each given transaction.  It is from this equation that the double entry system of accounting was developed and is based.

The impact whether the transaction increases, decreases, or has no effect on assets, liabilities, and stockholders' equity is explained below:

1. Issue common stock in exchange for cash. Increase= No effect + Increase

2. Purchase business supplies on account. Increase =  Increase + No effect

3. Pay for legal services for the current month. Decrease = No effect +  Decrease

4. Provide services to customers on account. Increase = No effect +  Increase

5. Pay employee salaries for the current month. Decrease = No effect +  Decrease

6. Provide services to customers for cash. Increase = No effect +  Increase

7. Pay for advertising for the current month. Decrease = No effect +  Decrease

8. Repay loan from the bank. Decrease = Decrease +  No effect

9. Pay dividends to stockholders. Decrease = No effect +  Decrease

10. Receive cash from customers in (4) above. Increase + Decrease = No effect +  No effect

11. Pay for supplies purchased in (2) above. Decrease = Decrease + No effect

Learn more: https://brainly.com/question/13981855?referrer=searchResults

Answer:

Included in GDP :

b. the commission paid to the seller of a previously owned collectors skateboard

c. a new building for tony hawk industries

g. new skateboard you buy for your niece

Not Included in GDP :

a. a used skateboard you buy for your brother

d. used copy of the tony hawk video game

e. previously owned collectors skateboard

f. ticket for the X games bought from a person on a street corne

h. Wheels used to produce a skateboard that will be sold new

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

When exports exceeds import there is a trade deficit and when import exceeds import, there is a trade surplus.  

Items not included in the calculation off GDP includes:  

1. services not rendered to oneself

2. Activities not reported to the government  

3. illegal activities

4. sale or purchase of used products

5. sale or purchase of intermediate products

the following items aren't included in the calculation of GDP because they are used items and were included in the year they were produced. adding them to GDP would be regarded as double counting

a. a used skateboard you buy for your brother

d. used copy of the tony hawk video game

e. previously owned collectors skateboard

h. Wheels used to produce a skateboard that will be sold new aren't included in the calculation of GDP because it an intermediate product used in the production of skateboards.

ticket for the X games bought from a person on a street corner aren't included in the calculation of GDP because they have already been paid for.

Answer:

A)                                    Journal entries

Date                           Account Titles                 Debit           Credit

Dec 31, 2014    No Journal Entry  

Dec 31,2015  Notes Payable                         $1,500

                        (44,000 – 42,500)

                        Unrealized Holding Gain/Loss                        $1,500

                        (Net Income)

Dec 31,2016    Unrealized Holding Gain/Loss    $3,500

                        (Net Income)

                        Notes Payable                                                   $3,500

                        (38,000 – 36,000 + 1,500)  

B)  The note will be reported at the fair value of notes payable as on 31 December 2015. Therefore, the note will get reported at $42,500 in the Fallen's 2015 balance sheet.

C) Fallen's 2016 net income will get reduced by $3,500 (refer to journal entry 3) as any change in fair value will be reported as an adjustment to the net income for the respective year.

D) Since, the general market interest rates have been stable over the period and similar risk investment in the year 2016, the changes in fair value indicate that Fallen's creditworthiness has improved.

Answer:

a. When must Janine recognize the income from the $17,360 advance payment for services if she uses the cash method of accounting?

Cash method of accounting recognizes revenues and expenses when they are received or paid for.

b. When must Janine recognize the income from the $17,360 advance payment for services if she uses the accrual method of accounting?

c. Suppose that instead of services, Janine received the payment for a security system (inventory) that she will deliver and install in year 2. When would Janine recognize the income from the advance payment for inventory sale if she uses the accrual method of accounting and she uses the deferral method for reporting income from advance payments? For financial accounting purposes, she reports the income when the inventory is delivered.

She will recognize revenue only after the merchandise is delivered.

d. Suppose that instead of services, Janine received the payment for the delivery of inventory to be delivered next year. When would Janine recognize the income from the advance payment for sale of goods if she uses the accrual method of accounting and she uses the full-inclusion method for advance payments?

Under this system, advanced payments are considered revenue on the year that they were received.

Answer:Of the $40,000 distribution, ....$28,000....................... is taxed as a dividend and $12,000...................represents a return of capital.

Explanation:

we will first compute dividend income for Holly

Loss  from  operations in the year =$36,000

Loss accrued till October 1st, since it accrues ratably  

January - September= 9 months

36,000 x 9/12 = $27,000                                                

But E&P at start of the year = $55,000

Therefore, E&P at October 1st = $55,000- $27,000 = $28,000

The remaining balance. $28,000 after the losses accrued have been deducted will be treated as dividend income

From the statement, the total cash distributed to Holly is $40,000,

$28,000 as calculated from above Is taxed as a dividend and $12,000 ( $40,000- $28,000) represents a return of capital.

Answer:

d. 12.6%

Explanation:

Rollins Corporation will receive $100 - ($100 x 5% flotation costs) = $100 - $5 = $95 net for each preferred stock issued

Since it will have to pay $12 on preferred dividends, the cost of preferred stocks = preferred dividend per preferred stock / net amount received per preferred stock = $12 / $95 = 0.1263 = 12.6%

Flotation costs are costs that a corporation incurs when issuing new stocks or bonds, and they include legal fees, underwriting fees, etc.

Answer:

d. 12.6

Explanation:

Answer:

a. True

Explanation:

The macro-enviromental forces that impact an industry are: demographic, economic, political, ecological, socio-cultural, and technological.

In this case, we can see the socio-cultural macro-enviromental force at play, and perhaps also the demographic macro-enviromental force.

If consumers have become more selective and better informed about their purchases, it is most likely because they have change their culture or social status. Such a change in consumer behaviour can have great impact on an industry: it can boost some goods, while make other decline or disappear.

Such a change can also respond to demographic shift: for example, as consumers age, they tend to become more selective, so a good that used to be favored by a young population, might not be so anymore when that young population grows older.

Answer:

The Allowance for Uncollectible Accounts at December 31, 2017 is $10,430

Explanation:

In order to calculate the Allowance for Uncollectible Accounts at December 31, 2017 we would have to make the following calculation:

Allowance for Uncollectible Accounts at December 31, 2017=Estimated Allowance 1-30 days+Estimated Allowance 31-60 days+Estimated Allowance 61-90 days+Estimated Allowance over 90 days

Estimated Allowance 1-30 days=Balance*% Uncollectible

Estimated Allowance 1-30 days=$152,000*1%=$1,520

Estimated Allowance 31-60 days=$87,000*2%=$1,740

Estimated Allowance 61-90 days=$50,000*3%=$1,500

Estimated Allowance over 90 days=$27,000*21%=$5,670

Allowance for Uncollectible Accounts at December 31, 2017=$1,520+$1,740+$1,500+$5,670

Allowance for Uncollectible Accounts at December 31, 2017=$10,430

Answer:

$135,000

$75,000

Explanation:

Home value = $180,000

Loan to Value ratio = 75%

Formula: Maximum loan amount = Home value x loan to value ratio

Maximum loan amount = $180,000 x 75%

Maximum loan amount = $135,000

If the value of house is $100,000 then,

$100,000 x 75% = $75,000

$75,000 would qualify as Tax deductible interest

Answer:

a) c. $4.34

b) b. $4.10

Explanation:

a) Find Farewell's diluted earnings per share for 2021.

Use the formula below:

Diluted EPS = (Net income after tax - preferred dividend) / diluted common stock

[tex]= \frac{2,500,000 - (50,000*100*0.06)}{500,000+(200,000 - ((29*10,000)/30))}[/tex]

[tex] = \frac{2,500,000 - 300,000}{500,000 + (200,000 - 193,333)} [/tex]

[tex] = \frac{220,000}{506,667} [/tex]

[tex] = 4.34 [/tex]

Diluted EPS = $4.34 per share

b) stock options = 5,000

Value in current shares = 500,000/12 = $4,167

Diluted shares = 5000 - 4167 = 833

Use the formula below to find the diluted earnings per share:

Diluted EPS = Net income/share outstanding

[tex]= \frac{269,915}{50,000 +(20,000-5,000) + 833)}[/tex]

[tex] = \frac{269,915}{50,000 + 15,000 + 833} [/tex]

[tex] = \frac{269,915}{65,833} [/tex]

[tex] = 4.10 [/tex]

Diluted EPS = $4.10 per share

Answer: A) Lessons learned from previous projects

Explanation:

Enterprise Environmental Factors (EEF) refers to all environmental factors that have a say in whether a project is successful or not. They include both internal factors such as company infrastructure, knowledge and capability (departments with the knowledge on project design and implementation) and internal project authorization systems as well as external factors such as Government standards and market conditions.  

Lessons learned from previous projects, while important, are not included in this list and are not Enterprise Environmental Factors.

Answer:

A $1,650

Explanation:

The computation of amount reported as Merchandise Inventory on the balance sheet is shown below:-

Merchandise inventory = Ending merchandise inventory × Units purchased

= 11 × $150

= $1,650

Therefore for computing the Merchandise Inventory we simply applied the above formula and have not considered the replacement cost as it is not relevant.

Answer:

The yield to call will be 6%.

Explanation:

Yield to call (YTC) refers to the return a bondholder will receive in the event that he holds the bond until the call date which is sometime before the maturity date.

The YTC can be calculated using the following formula:

YTC = (C + (CP - P) / t) / ((CP + P) / 2) .......................... (1)

Where:

YTC = YTW = yield to call or yield to worst = ?

C = Annual coupon interest payment = Bond interest rate * Bond face value = 8% * $100 = $8.00

CP = Callable price of the bond = $104

P = Current price of the bond = $120

t = time in years remaining until the call date = 20 - 4 = 16 years

Substituting the values into equation (1), we have:

YTC = ($8 + ($104 - $120) / 16) / (($104 + $120) / 2)

YTC = $7 / $112 = 0.06, or 6%.

Therefore, the yield to call will be 6%.

Answer:

September 1, petty cash fund is established

Dr Petty cash fund 230

    Cr Cash 230

September 10, petty cash expenses

Dr Supplies expense 53

Dr Postage expense 80

Dr Cash short and over 16

    Cr Petty cash fund 149

September 10, petty cash is replenished

Dr Petty cash fund 149

    Cr Cash 149

September 15, petty cash fund in increased

Dr Petty cash fund 90

    Cr Cash 90

Answer:

The maximum money created is $50000

Explanation:

The given reserve requirement ratio is = 20 percent

The injection of cash = $10000

So,  first, we have to find the money multiplier and then multiply with the injected amount.

Since  the reserve requirement is 20 percent  so  the money multiplier =  1/ 20 = 0.5 or 5.

The Fed can create the maximum money = 10,000 x 5 = 50,000

Answer:

1. The Journal Entry for the above will be as follows;

a.

DR Work in Progress - Assembly $31,700

DR Work in Progress - Finishing $ 18,800

CR Raw Materials $50,500

Working

Finishing Department used remainder = 50,500 - 31,700

= $18,800

b.

DR Work in Progress - Assembly $38,300

DR Work in Progress - Finishing $ 26,700

CR Factory Wages $65,000

Working

Finishing Department used remainder = 65,000 - 38,300

= $65,000

Answer:

Option B

Explanation:

In simple words, A cash cow refers to one of the 4 dimensions (quadrants) throughout the growth-share vector, BCG matrix describing a business, line of products, or enterprise with significant market share inside a mature field.

A cash cow is described as a reference to a company, commodity, or asset that will generate continuous investment returns throughout its lifetime until it is purchased and paying off.

The term refers to a company that is equally low-maintenance too. Modern days cash cows need minimal capital investment to have consistently sufficient cash flow that can be distributed within a company to other departments. They 're lower - risk projects, potentially high profits.