Answers
Answer:
Explanation:
From the question, we are informed that Zoey Bella Corp. has a payroll of $10,000 for a five-day workweek. Its employees are paid each Friday for the five-day workweek.
Assuming the year ends on Thursday which is 31st December, the salary expense that will be accrued on Thursday, December 31st will be:
= $10,000/5 × 4
= $2000 × 4
= $8000
It should be noted that Monday to Thursday is 4 days which was used in the calculation.
Kindly check the attached file for the adjusting entry.
Related Questions
Currently, a U.S. trader notes that in the 6-month forward market, the Japanese yen is selling at a premium (that is, you receive more dollars per yen in the forward market than you do in the spot market), while the British pound is selling at a discount. Which of the following statements is correct?
a) If interest rate parity holds among the three countries, the United States should have the highest 6-month interest rates and Britain should have the lowest rates.
b) If interest rate parity holds among the three countries, the United States should have the highest 6-month interest rates and Japan should have the lowest rates.
c) If interest rate parity holds among the three countries, Japan should have the highest 6-month interest rates and Britain should have the lowest rates.
d) If interest rate parity holds, 6-month interest rates should be the same in the U.S., Britain, and Japan.
e) If interest rate parity holds among the three countries, Britain should have the highest 6-month interest rates and Japan should have the lowest rates.
Answers
Answer:
Hence correct answer is option e) If interest rate parity holds among the three countries, Britain should have the highest 6-month interest rates and Japan should have the lowest rates.
Explanation:
Bonner Corp.'s sales last year were $345,000, and its year-end total assets were $355,000. The average firm in the industry has a total assets turnover ratio (TATO) of 2.4. Bonner's new CFO believes the firm has excess assets that can be sold so as to bring the TATO down to the industry average without affecting sales. By how much must the assets be reduced to bring the TATO to the industry average, holding sales constant? Use the year-end balance in your calculations. Select the correct answer. a. $211,325 b. $211,175 c. $211,101 d. $211,250 e. $211,026
Answers
Answer:
d. $211,250
Explanation:
The TATO is the ratio of sales to assets:
TATO = sales/assets
Filling in the desired numbers, we can find the desired level of assets:
2.4 = 345,000/assets
assets = 345,000/2.4 = 143,750
Starting with assets of 355,000 the reduction necessary to bring assets down to 143,750 is ...
$355,000 -143,750 = $211,250 . . . . matches choice D
Sebastian purchases two pieces of equipment for $189,000. Appraisals of the equipment indicate that the fair market value of the first piece of equipment is $132,300 and that of the second piece of equipment is $207,900. What is Sebastian's basis in these two assets? If required, round your interim calculations to two decimal places. Use rounded amounts in subsequent computations. If required, round final answers to the nearest dollar. Sebastian's basis for the first piece of equipment is $ and $ for the second piece of equipment.
Answers
Answer:
Sebastian basis in first piece of assets is $73,500 and second piece of assets is $115,500
Explanation:
Calculation of the total fair market value
Total fair market value = Fair market value of first piece of equipment + Fair market value of second piece of equipment
Total fair market value = $132,300 + $207,900
Total fair market value = $340,200
Therefore, the total fair market value is $340,200.
Calculation of Sebastian “S” basis in assets:
“S” basis in assets in first piece of assets = Fair market value of first piece of equipment / Total fair market value * Purchase cost
= $132,300 / $340,200 * $189,000
= $73,500
“S” basis in assets in second piece of assets = Fair market value of second piece of equipment / Total fair market value * Purchase cost
= $207,900 / $340,200 * $189,000
= $115,500
“S” basis in first piece of assets is $73,500 and second piece of assets is $115,500.
Which of the following statements is CORRECT?
a. The present value of a 3-year, $150 ordinary annuity will exceed the present value of a 3-year, $150 annuity due.
b. If a loan or investment has annual payments, then the effective, periodic, and nominal rates of interest will all be different.
c. An investment that has a nominal rate of 6% with semiannual payments will have an effective rate that is smaller than 6%.
d. The proportion of the payment that goes toward interest on a fully amortized loan increases over time.
e. If a loan has a nominal annual rate of 8%, then the effective rate will never be less than 8%.
Answers
Answer:
e. If a loan has a nominal annual rate of 8%, then the effective rate will never be less than 8%.
Explanation:
As we know that
EAR = (1 + r ÷ n)^n -1
where,
EAR = Effective annual rate
r = interest rate
n = number of years
By applying the above formula we know that the effective annual rate should always be greater than the normal annual rate
Hence, the correct option is e.
Therefore all other options would be wrong
Floral Beauty, Inc., is a large floral arrangements store located in Asheville Mall. Bridal Lilies, which are a specially created bunch of lilies for bridal bouquets, cost Floral Beauty $19 each. There is an annual demand for 22,000 Bridal Lilies. The manager of Floral Beauty has determined that the ordering cost is $85 per order, and the carrying cost, as a percentage of the unit cost, is 14%. Floral Beauty is now considering a new supplier of Bridal Lilies. Each lily would cost only $17.50, but to get this discount, Floral Beauty would have to buy shipments of 2,000 Bridal Lilies at a time. Should Floral Beauty use the new supplier and take this discount for quantity buying?
a. What is the total annual inventory cost (including purchase cost) for the current supplier?
b. What is the annual holding cost for the new supplier (when purchasing 3,000 each order)?
c. What is the total annual inventory cost (including purchase cost) for the new supplier (when purchasing 3,000 each order)?
d. What should Floral Beauty do?
Answers
Answer:
a) Total annual inventory cost (including purchase cost) for the current supplier = $421,154
b) Annual holding cost for the new supplier (when purchasing 3,000 each order) = $3,675
c) Total annual inventory cost = $389,298
d) Since the total cost has reduced, Flora Beauty should choose the new supplier option.
Explanation:
Annual demand, D = 22,000
Unit cost, C = $19
Ordering cost, K = $85
Unit carrying cost, h = 14% of C
h = 0.14*19 = $2.66
(a) Total annual inventory cost for the current supplier, [tex]T_c[/tex]
[tex]T_c = (D*C) + (\frac{Q'h}{2} ) + \frac{DK}{Q'}[/tex]...........(1)
Economic order quantity,Q'
[tex]Q' = \sqrt{2DK/2.66} \\Q' = \sqrt{2*22000*85/2.66}\\Q' = 1186 units[/tex]
Su bstitute Q' and other parameters into Tc
[tex]T_c = (D*C) + (\frac{Q'h}{2} ) + \frac{DK}{Q'}[/tex]
[tex]T_c = (22000*19) + \frac{1186*2.66}{2} + \frac{2000*85}{1186} \\T_c = \$421,154[/tex]
(b)
Q = 3000
C = $17.50
h = 0.14*17.50 = 2.45
Annual holding cost for the new supplier = (Q/2)*h = (3000/2)*2.45 = $3,675
(c)
Total annual inventory cost = (D*C) + (Q/2)*h + (D/Q)*K
Total annual inventory cost = (22000*17.5) + (3000/2)*2.45 + (22000/3000)*85
Total annual inventory cost for the new supplier = $389,298
d)
Since the total cost has reduced, Flora Beauty should choose the new supplier option.
In the development of a SFAS matrix, the first step is to:____________.
A) enter the ratings of how the company's management is responding to each of the strategic factors.
B) calculate the weighted scores.
C) list the most important EFAS and IFAS items.
D) indicate short-term goals for the duration.
E) enter the weights for all of the internal factors.
Answers
Answer:
its A
Explanation:
I promise trust me
When organizations, in an attempt to prevent _____ asks customers to not enter characters but instead select them one by one from boxes, intruders may counter with
Answers
Answer: a. keyloggers, screen scrapers
Explanation:
When organizations, in an attempt to prevent keyloggers asks customers to not enter characters but instead select them one by one from boxes, intruders may counter with screen scrapers
Keyloggers is a program that allows another person to record the keys struck on a keyboard without the person typing knowing. The person recording can them compile the information to find out very confidential information. By asking customers to select characters this can be mitigated.
Screen Scrapers on the other hand are more lethal because they record that is being displayed on a screen and transmit it to another person thereby enabling them to see what the target is doing even if they select characters from boxes.
Two partners, Small and Big, form a partnership in which Small invested $40,000 and Big invested $60,000 for a total capital of $100,000. But Small devotes more time to the business and earns more from the firm. They have agreed to share the profits as follows:
1. The first $20,000 is allocated on the partner's capital balances.
2. The next $30,000 is allocated based on service: Small gets $20,000, and Big gets $10,000.
3. Any remaining profits are allocated equally.
4. The partnership's net income is $100,000.
Requried:
a. What is Small's portion of the net income?
b. What is Big's portion of the net income? Make the entry for this allocation.
c. What would be the right parts to the journal entry for this question?
Answers
Answer:
a. What is Small's portion of the net income?
$53,000b. What is Big's portion of the net income? Make the entry for this allocation.
Big's portion = $47,000Dr Income Summary 47,000 Cr Big, capital 47,000c. What would be the right parts to the journal entry for this question?
Debit Income summary and credit capital accountsExplanation:
partnership's net income $100,000
first $20,000
Small $8,000Big $12,000next $30,000
Small $20,000Big $10,000Remaining $50,000
Small $25,000Big $25,000total Small = $53,000
total Big = $47,000
A bank has excess reserves of $1 million and makes a new loan for $500,000. If the bank faces a 10% required reserve ratio, by how much could the money supply increase when the loan is made
Answers
Answer:
With a 10% required reserve ratio, the money supply could increase by $500,000/r when the loan is made.
This equals $5,000,000 ($500,000/0.1) where r = 10%
Explanation:
a) The money multiplier is the amount of money that banks generate with each dollar of reserves. Reserves is the amount of deposits that the Federal Reserve requires banks to hold and not lend.
b) The formula for the money multiplier is simply 1/r, where r = the reserve ratio.
c) The reserve ratio, also known as Cash Reserve Ratio, is the percentage of deposits which commercial banks are required to keep as cash according to the directions of the central bank. It is used by the central bank to control the supply of money in the economy. When the central bank wants to increase the money supply, it lowers the reserve ratio and vice versa.
d) According to wikipedia.com, "the money supply is the total value of money available in an economy at a point of time." It is usually defined as currency in circulation plus demand deposits. It is the demand deposits that give commercial banks the ability to create money using the reserve ratio.
Suppose you decide to deposit $24,000 in a savings account that pays a nominal rate of 12%, but interest is compounded daily. Based on a 365-day year, how much would you have in the account after four months? (Hint: To calculate the number of days, divide the number of months by 12 and multiply by 365.)
Answers
Answer:
The total amount after four-month is 24982.08 dollars.
Explanation:
The amount to deposit in savings account = $24000
Nominal interest rate = 12%
Daily rate = 12 /365= .03288%
The interest is compounded daily and a number of months = 4 months.
We have to calculate the total amount after the four months. The calculation is given below:
Number of days in 4 months = 4 × 365/12 = 121.66 (rounded to 122)
Amount in account = Amount deposited × (1+i)^n
= 24000 × (1+.0003288)^122
= 24000 × (1.0003288)^122
= 24000 × 1.04092
= 24982.08 dollars
Joseph contributed $25,750 in cash and equipment with a tax basis of $14,800 and a fair market value of $19,500 to Berry Hill Partnership in exchange for a partnership interest.a. What is Joseph’s tax basis in his partnership interest?b. What is Berry Hill’s basis in the equipment?
Answers
Answer:
a. Joseph’s tax basis in his partnership interest=$40,550
b. Joseph contributed equipment with a tax basis of $14,800, therefore, Berry Hill’s basis in the equipment is $14,800
Explanation:
a. In order to calculate Joseph’s tax basis in his partnership interest we would have to make the following calculation:
Joseph’s tax basis in his partnership interest=amount contributed in cash+tax basis equipment
According to given data:
amount contributed in cash=$25,750
equipment tax basis =$14,800
Therefore, Joseph’s tax basis in his partnership interest=$25,750+$14,800
Joseph’s tax basis in his partnership interest=$40,550
Joseph's tax basis in his partnership interest is $40,550
b. According to the given data Joseph contributed equipment with a tax basis of $14,800, therefore, Berry Hill’s basis in the equipment is $14,800
Tru-U stock is selling for $41 a share. A 6-month call on Tru-U stock with a strike price of $45 is priced at $1.60. Risk-free assets are currently returning .29 percent per month. What is the price of a 6-month put on Tru-U stock with a strike price of $45?
Answers
Answer:
$4.82
Explanation:
Calculation for the price of the 6-month put on Tru-U stock
To find the price of a 6-month put on Tru-U stock with a strike price of $45 we are going to use Put-call parity formula to calculate it
Using this formula
Put-call parity: S + P = C + PV(E) P
Let plug in the formula
Put-call parity= $1.60 + ($45 / 1.0029^⁶) - $41 = Put-call parity=$1.60+($45/1.01752)-$41
Put-call parity=$1.60+(44.22517)-$41
Put-call parity=$45.82517-$41
Put-call parity=$4.82
Therefore the price of a 6-month put on Tru-U stock with a strike price of $45 will be $4.82
As a financial manager for WillPower, Inc, you have the following information: a) The company follows a residual dividend policy; b) The total capital budget for next year is likely to be $8,000,000; c) The forecasted level of earnings next year is $8,000,000; d) The target or optimal capital structure is a debt ratio of 40%;
Answers
Answer:
a. Amount funded with equity is $4,800,000
b. Dividend is $3,200,000
c. Dividend Payout ratio is 40.00%
Explanation:
Note: This question is incomplete, and the complete one is as follows:
As a financial manager for WillPower, Inc, you have the following information: a) The company follows a residual dividend policy; b) The total capital budget for next year is likely to be $8,000,000; c) The forecasted level of earnings next year is $8,000,000; d) The target or optimal capital structure is a debt ratio of 40%;
Please answer the following questions:
a. What will be the amount funded with equity for the project ? (Keep the answer to a whole number. Example of answer format: $1,000,000)
b. Compute the amount of the dividend . (Keep the answer to a whole number. Example of answer format: $1,000,000)
c. Compute the dividend pay-out ratio . (Keep the answer to two decimals. Example of the answer format: 55.55%)
The following are therefore the explanation of the answers to the question:
a. What will be the amount funded with equity for the project ? (Keep the answer to a whole number. Example of answer format: $1,000,000)
Given that the target or optimal capital structure is a debt ratio of 40%, this implies that there will be 40% debt finance and 60% (100% - 40%) equity finance. Therefore, we have:
Amount funded with equity = Total capital budget for next year * Percentage of equity finance = 8,000,000 * 60% = $4,800,000
b. Compute the amount of the dividend. (Keep the answer to a whole number. Example of answer format: $1,000,000)
Since the company follows a residual dividend policy, it implies that the earnings available are employed to finance capital expenditure budget first before dividends are paid to the shareholders.
Since amount funded with equity is $4,800,000 as obtained in part a, it implies that this must be deducted first from the forecasted level of earnings next year to obtain the residual that will be paid as dividend as follows:
Dividend = Forecasted level of earnings next year - Amount funded with equity = $8,000,000 - $4,800,000 = $3,200,000
c. Compute the dividend pay-out ratio . (Keep the answer to two decimals. Example of the answer format: 55.55%)
Dividend payout ratio refers to the percentage of the earnings or net income of a company that is paid by the company to its shareholders as dividend. This can therefore be calculated
Dividend Payout ratio = Dividend / Earnings = $3,200,000 / $8,000,000 = 0.40, or 40.00%
Therefore, WillPower, Inc is expected to pay 40% of its earnings as dividend to its shareholders.
Kano International Publishing, headquartered in Berlin, Germany, is a leading global publisher of scientific, technical, and medical journals and books for researchers in academia, scientific institutions, and corporate R&D departments. For print publications, assume that Kano owns a Didde press (now manufactured by Graphic Systems Services) that was acquired at an original cost of $330,000. It is being depreciated on a straight-line basis over a 20-year estimated useful life and has a $43,000 estimated residual value. At the end of the prior year, the press had been depreciated for a full five years. At the beginning of January of the current year, a decision was made, on the basis of improved maintenance procedures, that a total estimated useful life of 25 years and a residual value of $83,000 would be more realistic. The accounting period ends December 31.Required:a. Compute the amount of depreciation expense recorded in the prior year.b. Compute the book value of the printing press at the end of the prior year.c. Compute the amount of depreciation that should be recorded in the current year.d. Prepare the adjusting entry for depreciation at December 31 of the current year.
Answers
Answer:
a. Compute the amount of depreciation expense recorded in the prior year.
$71,750b. Compute the book value of the printing press at the end of the prior year.
$258,250c. Compute the amount of depreciation that should be recorded in the current year.
$8,762.50d. Prepare the adjusting entry for depreciation at December 31 of the current year.
December 31, 202x, depreciation expenseDr Depreciation expense 8,762.50 Cr Accumulated depreciation - Didde press 8,762.50Explanation:
depreciation expense per year of Didde press = ($330,000 - $43,000) / 20 years = $14,350 per year
accumulated depreciation = 5 years x $14,350 = $71,750
net book value = $258,250
adjusted useful life of 25 years, 20 remaining
new residual value of $83,000
depreciation expense per year = ($258,250 - $83,000) / 20 years = $8,762.50 per year
Yuhu manufactures cell phones and is developing a new model with a feature (aptly named Don't Drink and Dial) that prevents the phone from dialing an owner-defined list of phone numbers between the hours of midnight and 6:00 A.M. The new phone model has a target price of $380. Management requires a 25% profit on new product revenues.
Required:
a. Calculate the amount of desired profit.
b. Calculate the target cost.
Answers
Answer:
1. $95
2. $285
Explanation:
1) Calculate the desire profit of the company
25% profit on Product revenue
Desired Profit=Target price*25%
=380 * 0.25
= $95
The desire profit of the company is $95
2) Calculate the target cost
Total Sales Price $380
Less: Desired profit ($95)
Target cost $285
J.C Coats Inc. carefully develops standards for its coat making operation. Its specifications call for 2 square yards of wool per coat. The budgeted price of wool is $50 per square yard. The actual price for the wool was $38 and the usage was only 1.6 yards of wool per coat. What would be the standard cost per output for the wool?
Answers
Answer:
$100 per coat
Explanation:
Standard ;
Wool required = 2 yard square per coat
Budgeted price = $50 per square yard
Therefore,
We will need to multiply the total direct material quantity per unit for its unitary cost in order to arrive at the standard cost per unit.
Total standard cost per coat = Wool per coat × Cost per square yard,
= 2 × $50
= $100 per coat
Kyle accepted a job at Brenton Manufacturing. During his training, he was told that defective and poor-quality products were unacceptable, and the goal is to manufacture goods that met 100 percent of standards. What methodology does this company use
Answers
Answer:
TQM (Total quality management)
Explanation:
Total Quality Management is process by which all members of an organisation take part in improving products, services, processes, and the culture of the workplace.
The aim of TQM is to achieve long term success of the business through customer satisfaction.
Kyle was made to understand that defective and poor-quality products were unacceptable, and the goal is to manufacture goods that met 100 percent of standards.
This is a TQM strategy that ensures customer is always satisfied with the company's product.
Magnolia, Inc. manufactures bedding sets. The budgeted production is for 31,600 comforters this year. Each comforter requires 7 yards of material. The estimated January 1 beginning inventory is 4,980 yards with the desired ending balance of 4,200 yards of material. If the material costs $3.10 per yard, determine the materials budget for the year.
Answers
Answer:
$683,302
Explanation:
The computation of the materials budget for the year is shown below:-
Total Material required = Budgeted production units × Material Required per unit
= 31,600 × 7
= 221,200
Material to be purchased (Yards) = Total Material required + Desired Ending material inventory - Beginning Material inventory
= 221,200 + 4,200 - 4,980
= 220,420
Cost of Material to be purchased = Material to be purchased (Yards) × Price Per yard
= 220,420 × $3.10
= $683,302
What is the price of a perpetual bond that pays a $45 per year into perpetuity, and has a 3.5% yield to maturity (YTM)
Answers
Answer:
Price =$1,285.71
Explanation:
A perpetual bond is that which pays a fixed amount of interest income for the foreseeable future. It issuer does not always have an obligation for redemption under the terms of loan contract.
The price of perpetual bond can be determined as the present value of a perpetuity. An perpetuity is an annuity that pays a fixed amount of cash flow for a certain number of years
PV = A/r
PV- price of bond- ?
A- annual interest - 45
r- Yield to maturity- 3.5%
Price = 45/0.035=1,285.714
Price =$1,285.71
Determine the uniform annual value for the cash flow below at an interest rate of 11% per year.
Year 0 1 2 3 4 5 6 7 8 9
Cash Flow, 0 $ 30,000 30,000 30,000 30,000 45,000 45,000 45,000 45,000 45,000
a. $38,474
b. $37,744
c. $36,595
d. $39,595
Answers
Answer:
$36,595
Explanation:
The computation of the uniform annual value is shown below:;
Before that we need to find out the present worth which is
= $30,000 × (P/A , 11%, 4) + $45,000 × (P/A , 11%, 4) × (P/F , 11%, 4)
= $30,000 × (3.1025) + $45,000 × (3.69590) (0.65873)
= $202,630.51
Now the annual worth is
= Present value × (A/P, 11%,9)
= $202,630.51 × 0.18060
= $36,595
The nominal interest rate is 9 percent in Brazil and 6 percent in Japan. Applying the international Fisher effect, the Brazilian real should
Answers
Answer:
appreciate by 3%
Explanation:
the international fischer effect states that the difference between the nominal interest rate of two countries is equal to the changes in the exchange rate of their currencies.
the country with the lower interest rate appreciates by the difference between the exchange rate.
9% - 6% = 3%
the Brazilian real should appreciate by 3%
Net credit sales = $400,000 Net income = $100,000 Average total assets = $80,000 Average accounts receivable = $20,000 What is the average collection period in days (rounded to the nearest whole day)?
Answers
Answer:
73 days
Explanation:
average collection period = number of days in a period / receivables turnover
receivables turnover = revenue / average receivables = $100,000 / $20,000 = 5
average collection period = 365 / 5 = 73 days
I hope my answer helps you
The core CPI looks at the price changes of a market basket without Select one: a. luxury goods b. taxes c. food and energy d. imported goods
Answers
Answer:
The correct answer is the option C: food and energy.
Explanation:
On the one hand, the concept known as "Consumer Price Index" or CPI is refered to the measure that is basically used in economics in order to obtain the variation of prices in general that happens in a certain period of time, so that means that it focus in calculating the inflation of an economy by examinating the weighted average of prices of a basket of predetermined goods.
On the other hand, the "Core CPI" calculates the inflation in the costs of goods and services of a predetermined basket by does not include the ones from the food an energy sectors.
The project manager should schedule the post-project evaluation meeting with the customer or sponsor for a time when the customer is in a position to
Answers
Answer:
b. really determine whether the project met expectations and achieved the anticipated results.
Explanation:
A post-project evaluation meeting is usually held after a project must have been executed, and its purpose is to get feedback from the customer regarding the project. A time period is usually left for the customer to observe the project so as to determine if it met his expectations. The time period could be short or long, depending on the magnitude of the project in question.
During the post-project evaluation meeting, the customer is interviewed by the contractor so as to determine his level of satisfaction or reservations with respect to the project. If he is unsatisfied with the project, the contractor should listen patiently to know areas of improvement. However, if he is satisfied, the contractor could request future jobs from him or even use him as a reference for prospective customers.
The owner of a building supply company has requested a cash budget for June. After examining the records of the company, you find the following:
A. Cash balance on June 1 is $736.
B. Actual sales for April and May are as follows:
April May
Cash sales $10,000 $18,000
Credit sales 28,900 35,000
Total sales $38,900 $53,000
C. Credit sales are collected over a three-month period: 40% in the month of sale, 30% in the second month, and 20% in the third month. The sales collected in the third month are subject to a 2% late fee, which is paid by those customers in addition to what they owe. The remaining sales are uncollectible.
D. Inventory purchases average 64% of a month's total sales. Of those purchases, 20% are paid for in the month of purchase. The remaining 80% are paid for in the following month.
E. Salaries and wages total $11,750 per month, including a $4,500 salary paid to the owner.
F. Rent is $4,100 per month.
G. Taxes to be paid in June are $6,780.
The owner also tells you that he expects cash sales of $18,600 and credit sales of $54,000 for June. No minimum cash balance is required. The owner of the company doesn't have access to short-term loans.
Prepare a cash budget for June. Include supporting schedules for cash collections and cash payments. Round calculations and final answers to the nearest dollar.
Answers
Answer and Explanation:
The Preparation of the cash budget for June is prepared below:-
Cash Budget
For the month of June
Particulars Amount
Begining cash $736
Add:
Collections:
Cash sales $18,600
Credit sales
Current month $21,600 ($54,000 × 30%)
May credit $10,500 ($35,000 × 30%)
Credit sales of April $5,896 (explained in note 1)
Total cash available $57,332
Less: Disbursement
Purchase of inventory
Current month $9,293 (explained in note 2)
($46,464 × 20%)
Prior month $27,136 (explained in note 2)
($33,920 × 80%)
Salary $11,750 (explained in note 3)
Rent $4,100
Taxes $6,780
Need's total -$1,727
Excess for cash available
over needs
Note:-
1. Amount which is received in June is
= $28,900 × 20%
= $5,780
Late fees = $5,780 × 2%
= $116
June receipts is
= $5,780 + $116
= $5,896
2. Purchase of inventory is
= $53,000 × 64%
= $33,920
Total sales = Cash + Credit sales
= $72,600
Puchase of inventory = $72,600 × 64%
= $46,464
3. Entirely amount is taken of salaries and wages if it paid or not.
Suppose the transfers of pillars to the Lantern Division cut into sales to outside customers by 14,000 units. Further suppose that an outside supplier is willing to provide the Lantern Division with basic pillars at $1.27 each. If the Lantern Division had chosen to buy all of its pillars from the outside supplier instead of the Pillar Division, the change in net operating income for the company as a whole would have been:
Answers
Complete question:
The Pillar Division of the Gothic Building Company produces basic pillars which can be sold to outside customers or sold to the Lantern Division of the Gothic Company. Last year, the Lantern Division bought all of its 25,000 pillars from Pillar at $2.00 each. The following data are available for last year's activities of the Pillar Division:
Capacity in units 320,000 pillars
Selling price per pillar to outside customers $2.05
Variable costs per pillar $1.20
Fixed costs, total $155,000
The total fixed costs would be the same for all the alternatives considered below.
Suppose the transfers of pillars to the Lantern Division cut into sales to outside customers by 20,000 units. Further suppose that an outside supplier is willing to provide the Lantern Division with basic pillars at $1.92 each. If the Lantern Division had chosen to buy all of its pillars from the outside supplier instead of the Pillar Division, the change in net operating income for the company as a whole would have been:
$2,000 decrease.
$14,000 increase.
$1,000 decrease.
$18,000 decrease.
I tried my best to find the question but was unable to find the exact question, instead I found a symmetry question and its solution is as under:
Answer:
Option D. $18,000 decrease
Explanation:
The decrease in the net operating income that would occur due to purchase of all of the pillars from the outside supplier would cost the additional cost to the company which is opportunity cost per pillar and is calculated by using the following formula:
Opportunity Cost = Variable Cost - Purchasing Cost
Here, the variable cost to manufacture the pillar within the factory is $1.2 per pillar whereas the purchasing cost of pillars from outside supplier is $1.92 per pillar.
By putting values, we have:
Opportunity Cost = $1.2 - $1.92 = $0.72
Now for purchasing 25,000 units from the supplier, the total opportunity cost would be:
Total Opportunity Cost = $0.72 * 25,000 Units Purchased from Outside Supplier = - $18,000
The minus sign shows the decrease in the net operating income.
Myers Corporation's stock currently trades at $40 a share. Investors estimate that the year-end dividend will be $2.00 a share and that its dividend will grow at 5% a year (i.e., D1= $2.00 and g = 5%). The company needs to issue new stock in order to fund its upcoming projects, and investment bankers estimate that the floatation cost will be 4%. What is Myers' cost of new external equity?
a) 10.2%
b) 12.0%
c) 9.6%
d) 11.3%
e) 8.5%
Answers
Answer: 10.2%
Explanation:
The formula to solve this question will be: Re =D1/P0(1 - float) + g
where,
D1 = $2.00
P0 = $40
Float = 4% = 4/100 = 0.04
g = 5% = 5/100 = 0.05
We will then solve Myers' cost of new external equity by slotting the values into the formula written. This will now be:
Re =D1/P0(1 - float) + g
= 2/40(1 - 0.04) + 0.05
= 2/(40 × 0.96) + 0.05
= 2/38.4 + 0.05
= 0.052 + 0.05
= 0.1020
= 10.2%
Myers' cost of new external equity will be 10.2%
According to the expenditure approach, if Y is GDP, C is consumption, I is investment, G is government purchases, and NX is net exports, the national income identity can be written as:
Answers
Answer:
The answer is Y = C + I + G + NX
Explanation:
National income can be represented as: Y = C + I + G + NX
where Y is the national income
C is the consumers' consumption or households' expenses on goods and services
I is the firms' investment. Investment done by businesses on procuring non-current assets used in production
G is the government expenditure.
NX is the net export. Net export is the difference between the total value of export and total value of import in a year.
A divorced woman with 2 young children has just re-entered the workforce part time and earns $3,000 from this work. She collects another $2,400 per year in alimony payments. The woman wishes to make a contribution to an Individual Retirement Account this year. Which statement is TRUE
Answers
Which statement is TRUE
A. No contribution can be made because the woman received alimony payments
B. A contribution can be made based only on the income earned from part-time work
C. A contribution can be made based only on the alimony payments received
D. A contribution can be made based on both the earned income from part-time work and the alimony payments received
Answer:
B. A contribution can be made based only on the income earned from part-time work
Explanation:
According to Individual Retirement Account regulations, contribution can only be made base on earned income and not a court-mandated allowance made to a former spouse by a divorced or legally separated person otherwise known as "Alimony". Alimony is just a means to support life and not a earned income. So, contribution can be made based only on the income earned from part-time work.
The Internal Rate of Return (IRR) represents which of the following: Multiple Choice The discount rate that must be lower than the required rate of return. The discount rate that makes the net present value equal to zero. The discount rate that makes the net present value positive. The discount rate that makes the net present value negative. The discount rate that is affected by the cash flows external to the project.
Answers
Answer:
The discount rate that makes the net present value equal to zero.
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
It is the discount rate that makes the net present value equal to zero.
I hope my answer helps you