Answer:
Zonk Company
The number of shares that needs to be sold is:
= 1,842,569 shares.
Explanation:
a) Data and Calculations:
Amount needed to fund a new project = $47,500,000
Selling price per share = $27.90
Proceed per share after underwriter's spread = $26.132 ($27.80 * (1 - 0.06)
Underwriters spread per share = 6% * $27.80 = $1.668
Direct flotation costs = $650,000
Number of shares to float = ($47,500,000 + $650,000)/$26.132
= 1,842,569 shares
Expanded Proof:
Proceeds from share issue = $51,223,418 (1,842,569 * $27.80)
less underwriter's spread = 3,073,405 (1,842,569 * $1.668)
Net proceeds before flotation $48,150,013
less direct flotation costs = 650,000
Funds raised = $47,500,013
Use the following Balance Sheet and Income Statement data of Bronson Corporation to calculate its debt to total assets ratio as of December 31, 2017:
Current assets $9,000 Net income $70,000
Current liabilities 4,000 Common stock 10,000
Average assets 28,000 Total liabilities 6,000
Total assets 30,000 Retained earnings 20,000
Write your response rounded to the nearest whole number only.
Answer:
20 %
Explanation:
The Debt to Total Assets ratio is used to measure financial risk, the higher the ratio the more financial risk there is.
Debt to Total Assets ratio = Total debt / Total Assets x 100
therefore,
Debt to Total Assets ratio = $6,000 / $30,000 x 100 = 20 %
thus,
The debt to total assets ratio as of December 31, 2017: 20 %
onsider the following scenario. Inflation in Argentina pushes the price of Argentine wine up 25%. Inflation in the United States pushes the price of California wine up 10%. If the exchange rate remains constant, the U.S. demand for wine from Argentina a. decreases. b. increases. c. remains constant. d. California wine is better than Argentine wine, so there never is a U.S. demand for wine from Argentina.
Answer:
If the exchange rate remains constant, the U.S. demand for wine from Argentina
a. decreases.Explanation:
Since the inflation rate in Argentina is much higher than the inflation rate in the United States, the price of Argentinean wine will increase in its domestic currency, the Argentinean peso. If the exchange rate is fixed, then Argentinean wine will become more expensive. As a good becomes more expensive, its demand tends to decrease.
Financial institutions act as intermediaries between suppliers and demanders of funds. They accept savers' deposits and invest them in such things as business loans or mortgages. This process is called:_____
Answer:
The correct answer is: Intermediation.
Explanation:
To begin with, in the financial and business field the process in where the financial institutions act in the middle of money's lenders and money's borrowers is known basically as intermediation. This term consists of the simple action of matching those who needs money with those who are willing to lend money in order to obtain a profit from that lending. Therefore that when the banks, for example, accept the money of people who are saving it decides to use that money to put it in circulation in another activity in the economy in order to make the money grow.
84,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual value of $3,300. Using the straight-line method, the book value at December 31, 2021, would be:
Answer:
$67,860
Explanation:
Depreciation = Cost - Residual amount ÷ Useful life
= ($84,000 - $3,300) ÷ 5
= $16,140
Book Value = Cost - Accumulated depreciation
therefore,
Book Value = $84,000 - $16,140
= $67,860
thus
The book value at December 31, 2021, would be: $67,860
Taylor Company neglected to amortize the discount on outstanding ten-year bonds payable. What is the effect of the failure to record discount amortization on interest expense and bond carrying value, respectively
Answer:
Taylor Company
The negligence to amortize the discount on outstanding ten-year bonds payable is the understatement of interest expense for each year. This means that the interest expense will be the same for each year instead of increasing by the amortized discount amount. The same applies to the bond carrying value, which will remain the same throughout the period.
Explanation:
The discount on bonds payable is an additional interest expense, which is written off yearly over the bonds' maturity period through amortization. It increases the amount of the periodic interest payment by the amortized discount.
On November 10 of the current year, Flores Mills sold carpet to a customer for $7,700 with credit terms 2/10, n/30. Flores uses the gross method of accounting for sales discounts. What is the correct entry for Flores on November 17, assuming the correct payment was received on that date
Answer:
Flores Mills:
The correct entry for Flores on November 17 using the gross method of accounting for sales discounts is as follows:
Journal Entry
November 17:
Debit Cash $7,546
Debit Cash Discounts $154
Credit Accounts Receivable $7,700
To record the receipt of cash from a customer on account, including 2% discounts allowed for payment within 10 days.
Explanation:
a) Data and Analysis:
November 10: Accounts Receivable $7,700 Sales Revenue $7,700
with credit terms 2/10, n/30.
November 17: Cash $7,546 Cash Discounts $154 Accounts Receivable $7,700
Cosmo breaks his fly rod while fly fishing in a remote area of Colorado. He goes to the local fly shop to buy a new rod, expecting to pay a considerable mark-up over the price he would pay at home in California. To his surprise, the price is exactly the same as at home. This is most likely due to
Answer:
Uniform pricing policy
Explanation:
Uniform pricing policy exists when a particular product has a uniform price across different markets and locations.
This was implemented by some businesses because of negative reactions from customers that resulted in decrease in sand in the long term.
When uniform price is used customers are confident prices will be the same anywhere.
In the given scenario Cosmos goes to the local fly shop to buy a new rod, expecting to pay a considerable mark-up over the price he would pay at home in California. To his surprise, the price is exactly the same as at home.
This is an example of uniform pricing.
The opposite of this is differential pricing where discrimination plays a part in product price
the month-end bank stataement of der torossian incorporated shows a balance of 36,500, deposits in transit are 6500 outstanding checks are 12000. there also shows a credit memo of 1,000 for the interest income collected on a note recievable. the adjusted balance per bank at month end is
Answer:
$31,000
Explanation:
Calculating the adjusted balance per bank at month end.
Details Amount
Unadjusted Balance $36,500
Add: Deposits in Transit $6,500
Less: Outstanding Checks $12,000
Adjusted Balance $31,000
Your grandmother would like to share some of her fortune with you. She offers to give you money under one of the following scenarios (you get to choose): 1. $8,750 a year at the end of each of the next seven years 2. $48,750 (lump sum) now 3. $99,350 (lump sum) seven years from now Calculate the present value of each scenario using a 6% interest rate. Which scenario yields the highest present value
Answer:
The most profitable option is the third one.
Explanation:
Escenario 1:
$8,750 a year at the end of each of the next seven years
First, we need to calculate the future value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual payment
FV= {8,750*[(1.06^7) - 1]} / 0.06
FV= $73,446.08
Now, the present value:
PV= FV / (1 + i)^n
PV= 73,446.08 / 1.06^7
PV= $48,845.78
Escenario 2:
Lump-sum= $48,750
Escenario 3:
$99,350 (lump sum) seven years from now
PV= 99,350 / 1.06^7
PV= $66,073.42
The most profitable option is the third one.
What is an advantage of using Excel’s built-in templates to create invoices?
a The setting and data heading are already made and the data just needs to be inserted.
b A built-in template cannot be modified in any way, so the file’s look will be consistent.
c Only one invoice template is available, so it will be easy to learn how to use a template.
d Templates take a lot of time to set up initially, but then they save time for future applications.
Answer:
A. The setting and data heading are already made and the data just needs to be inserted.
Explanation:
here's your answer..
arget Profit Scrushy Company sells a product for $150 per unit. The variable cost is $110 per unit, and fixed costs are $200,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $50,000. a. Break-even point in sales units fill in the blank 1 units b. Break-even point in sales units if the company desires a target profit of $50,000 fill in the blank 2 units
Answer:
Results are below.
Explanation:
Giving the following information:
Selling price per unit= $150
The variable cost is $110 per unit, and fixed costs are $200,000.
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 200,000 / (150 - 110)
Break-even point in units= 5,000 units
Now, the desired profit is $50,000:
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (200,000 + 50,000) / 40
Break-even point in units= 6,250
Why south African post office taking private courier companies to court
Answer:
the south Africa post office (SAPO)
Moss County Bank agrees to lend the Wildhorse Co. $650000 on January 1. Wildhorse Co. signs a $650000, 6%, 9-month note. What is the adjusting entry required if Wildhorse Co. prepares financial statements on June 30
Answer:
Debit : Interest charge $26,000
Credit : Note Payable $26,000
Explanation:
The interest charge for the 6 months expired on the note is the adjustment required.
Interest charge = $650000 x 6% x 6/9 = $26,000
therefore,
the adjusting entry required if Wildhorse Co. prepares financial statements on June 30 is :
Debit : Interest charge $26,000
Credit : Note Payable $26,000
Diehl Corporation manufactures a variety of parts for use in its product. The company has always produced all of the necessary parts for its product, including all of the electronic circuits. The company sells 16,000 units of its product per year. An outside supplier has offered to sell electronic circuits to the company for a cost of $35 per unit. To evaluate this offer, the company has gathered the following information relating to its own cost of producing the electronic circuits internally:
Per Unit 16,00 Unit per Year
Direct materials $16 $256,000
Direct labor 12 192,000
Variable manufacturing overhead 3 48,000
Fixed manufacturing overhead, traceable 3* 48,000
Fixed manufacturing overhead, allocated 6 96,000
Total cost $40 $640,000
One-third supervisory salary, two-thirds depreciation of special equipment (no resale value).
Suppose that if BuyorM-1509 purchases the electronic circuits, the division supervisor position could be eliminated. Fixed manufacturing overhead will be allocated to other products made by the company. Also, the company could use the freed production capacity to launch a new product. The segment margin of the new product would be $210,000 per year. How much would be the financial advantage of buying 21,000 electronic circuits from the outside supplier?
a. $80,000.
b. $132,000.
c. $112,000.
d. $96,000.
Answer: $112000
Explanation:
The financial advantage of buying 21,000 electronic circuits from the outside supplier will be:
Previous cost = $640000
Less: Purchases 16000×35 = $560000
Add: Additional benefit = $16000
Less: Fixed cost = $96000
Less: Depreciation = 2/3 × $48000 = $32000
Financial advantage = $112000
Menlove Corporation has provided the following cost data for last year when 100,000 units were produced and sold:
Raw materials $200,000
Direct labor 100,000
Manufacturing overhead 200,000
Selling and administrative expense 150,000
All costs are variable except for $100,000 of manufacturing overhead and $100,000 of selling and administrative expense. If the selling price is $10 per unit, the net operating income from producing and selling 110,000 units would be:
a. $450,000
b. $385,000.
c. $405,000.
d. $605,000
Answer:
Net operating income= $405,000
Explanation:
First, we need to calculate the unitary variable cost:
Total variable cost= 650,000 - 100,000 - 100,000= $450,000
Unitary variable cost= 450,000 / 100,000
Unitary variable cost= $4.5
Total fixed cost= 100,000 + 100,000= $200,000
Now, the net operating income for 110,000 units:
Sales= 10*110,000= 1,100,000
Total variable cost= 110,000*4.5= (495,000)
Total contribution margin= 605,000
Total fixed cost= 200,000
Net operating income= $405,000
Hammerhead Inc. uses practical capacity as the denominator to set the cost of supplying capacity and for the current period the budgeted cost per unit of supplying capacity was $42. Practical capacity was set at 10,000 units with theoretical capacity at 14,000 units. During the period, only 4,000 units were produced while the master budget assumed that the company would produce 9,000 units. What is the value of the manufacturing resources NOT used during the period
Answer:
the value of the manufacturing resources not used is $252,000
Explanation:
The computation of the value of the manufacturing resources not used is shown below
= (practical capacity - number of units produced) × budgeted cost per unit of supplying capacity
= (10,000 units - 4,000 units) × $42
= 6,000 units × $42
= $252,000
Hence, the value of the manufacturing resources not used is $252,000
The internal rate of return for a project will increase if: the initial cost of the project can be reduced. the total amount of the cash inflows is reduced. each cash inflow is moved such that it occurs one year later than originally projected. the required rate of return is reduced. the discount rate is increased.
Answer:
the initial cost of the project can be reduced
Explanation:
As we know that the internal rate of return is the return where the net present value comes to zero or we can say that the initial investment would be equivalent to the present value of annual cash inflows
In the case when the internal rate of return is rise up so the initial investment or initial cost would be decreased
Therefore the first option is correct
Bill thought he had received the best deal on his new car. Shortly after the purchase, Bill started to notice certain disadvantages of his new car as he learned more about other cars available. Bill is experiencing ________.a. postpurchase cultureb. selective perceptionc. information evaluationd. postpurchase cognitive dissonancee. purchase decision
Answer:
cognitive dissonance
Explanation:
Cognitive dissonance defines the situation where it includes the attitudes i.e. conflicted, behaviors, etc. It generated the mental discomfort feeling that would result in change in the attitude, belief, etc in order to decreased the discomfort also at the same time it would restore the balance
Therefore as per the given situation, it is cognitive dissonance
List four natural resources that you think would go into the production of the following products
Answer:
sorry I think u got yr question incomplete..
Explanation:
Oil, coal, natural gas, metals, stone and sand are natural resources. Other natural resources are air, sunlight, soil and water. Animals, birds, fish and plants are natural resources as well.
stay safe healthy and happy.Suppose that Under Armor and Nike are the sole producers of a particularly comfortable athletic shoe. The two firms currently charge the same price for their products. If neither firm reduces the price of its particularly comfortable athletic shoe, each firm earns $30 million in profit. If both firms reduce their prices, then each firm will earn $8 million in profit. If one firm reduces its price and the other does not, then the firm that reduces price will earn a profit of $70 million while the other firm will earn a profit of $2 million. Assuming that collusion is not a possibility, the Nash equilibrium occurs when ____________
a. Nike will reduce its price and Under Armor will maintain its current price
b. both firms will reduce their price.
c. Under Armor will reduce its price and Nike will maintain its current price
d. both firms will maintain their current price.
Answer:
b. both firms will reduce their price.
Explanation:
The Nash equilibrium is a decision-making theorem that lies inside the game theory where the player could attain the expected result by not deviating to the beginning strategy. In this, the strategy of the each player is optimal at the time when the other player decisions are relevant
So as per the given situation, both the firm should decrease their price
hence the option b is correct
Assume that at the end of 2020, Clampett, Incorporated (an S corporation) distributes property (fair market value of $40,000, basis of $5,000) to each of its four equal shareholders (aggregate distribution of $160,000). At the time of the distribution, Clampett, Incorporated, has no corporate earnings and profits and J.D. has a basis of $50,000 in his Clampett, Incorporated, stock. What is J.D.'s stock basis after the distribution
Answer:
$45,000
Explanation:
Calculation to determine J.D.'s stock basis after the distribution
Using this formula
J.D.'s stock basis=Original basis+distributive share of the gain on the distribution -Distribution
Let plug in the formula
J.D.'s stock basis=$50,000+($40,000-$5,000)-$40,000
J.D.'s stock basis= $50,000 + $35,000 − $40,000
J.D.'s stock basis= $45,000
Therefore J.D.'s stock basis after the distribution
is $45,000
Colorado Business Tools manufactures calculators. Costs incurred in making 9,940 calculators in February included $29,350 of fixed manufacturing overhead. The total absorption cost per calculator was $10.70.
Required:
a. Calculate the variable cost per calculator.
b. The ending inventory of pocket calculators was 750 units higher at the end of the month than at the beginning of the month. By how much and in what direction (higher or lower) would operating income for the month of February be different under variable costing than under absorption costing?
c. Express the pocket calculator cost in a cost formula.
Answer and Explanation:
The computation is shown below:
a)
Fixed manufacturing overhead per unit is
= $29,350 ÷ 9,940
= $2.95 per unit
Now
Variable cos per calculator is
= $10.70- $2.95
=$ 7.75 per calculator
b)Variable costing income will be lower by
= 750 units × $2.95
= $2,213
= Fixed cost + n × variable cost per calculator
c) The Cost formula (y) is
= $29,350 + 7.75 x
3. An investor shorts 100 shares when the share price is $20 and closes out the position six months later when the share price is $18.2. The shares pay a dividend of $0.2 per share during the six months. How much does the investor gain or lose (losses are indicated by a negative sign and profits by a plus sign)
Answer:
$160
Explanation:
Calculation to determine How much does the investor gain or lose
Investor gain =[($20-$18.2)*100 Shares]- ($0.2*100 shares)
Investor gain=($1.8*100 shares)-($0.2*100 shares)
Investor gain=$180-$20
Investor gain=$160
Therefore The amount that the investor gain is $160
Exercise 24-08 a The following direct materials and direct labor data pertain to the operations of Skysong Company for the month of August. Costs Actual labor rate $15 per hour Actual materials price $190 per ton Standard labor rate $14.50 per hour Standard materials price $193 per ton Quantities Actual hours incurred and used 4,600 hours Actual quantity of materials purchased and used 1,700 tons Standard hours used 4,650 hours Standard quantity of materials used 1,680 tons (a) Compute the total, price, and quantity variances for materials and labor
Answer:
Total materials variance = $1,240 favorable
Materials price variance = $5,100 favorable
Materials quantity variance = $3,860 unfavorable
Total labor variance = $1,575 unfavorable
Labor price variance = $2,300 unfavorable
labor quantity variance = $725 favorable
Explanation:
Materials Variances
Total materials variance = Standard Cost - Actual Cost
= ($193 x 1,680) - ($190 x 1,700)
= $324,240 - $323,000
= $1,240 favorable
Materials price variance = (Standard Price - Actual Price) x Actual Quantity
= ($193 - $190) x 1,700
= $5,100 favorable
Materials quantity variance = (Standard Quantity - Actual Quantity) x Standard Price
= (1,680 - 1,700) x $193
= $3,860 unfavorable
Labor Variances
Total labor variance = Standard Cost - Actual Cost
= ($14.50 x 4,650) - ($15 x 4,600)
= $67,425 - $69,000
= $1,575 unfavorable
Labor price variance = (Standard rate- Actual rate) x Actual hours
= ($14.50 x $15) x 4,600
= $2,300 unfavorable
labor quantity variance = (Standard hours - Actual hours ) x Standard rate
= (4,650 - 4,600) x $14.50
= $725 favorable
BC County opens a solid waste landfill that it expects to fill to capacity gradually over a 40-year period. At the end of the first year, it is 6 percent filled. At the end of the second year, it is 15 percent filled. Currently, the cost of closure and postclosure is estimated at $1 million. None of this amount will be paid until the landfill has reached 90 percent of its capacity.
Required:
What is true for the Year 2 government-wide financial statement?
Answer:
Expense will be $90,000 and liability will be $150,000
Explanation:
Year 2 liability is :
$1,000,000 * 15% = $150,000
Year 1 liability is :
$1,000,000 * 6% = $60,000
Expense for year 2 :
Year 2 liability - Year 1 liability
$150,000 - $60,000 = $90,000
"S Company reported net income for 2021 in the amount of $460,000. The company's financial statements also included the following: Increase in accounts receivable $ 75,000 Decrease in inventory 62,000 Increase in accounts payable 230,000 Depreciation expense 103,000 Gain on sale of land 147,000 What is net cash provided by operating activities under the indirect method?"
Answer:
$633,000
Explanation:
Calculation to determine net cash provided by operating activities under the indirect method
Using this formula
Net cash provided by operating activities=Net income-(+Increase in accounts receivable)-(-Decrease in inventory )+Increase in accounts payable+Depreciation expense -Gain on sale of land
Let plug in the formula
Net cash provided by operating activities=$460,000 -(+$75,000)-(-$62,000) + $230,000 +$103,000 - $147,000
Net cash provided by operating activities=$633,000
Therefore net cash provided by operating activities under the indirect method is $633,000
what is the difference between quantity demand and quantity supply.
Answer:
The distinction between supply and quantity supplied is similar to the difference between demand and quantity demanded. If the market price of a product increases, then the quantity supplied increases, and vice versa.
Explanation:
.....
it my bday hihihihihihhihhi
Answer:
happy birthday dude or girrrrrllll
Fill in the missing amounts.
Crane Company Sheridan Company
Sales revenue $94,200 $enter a dollar amount Sales returns and allowances enter a dollar amount $ 3,000 Net sales 80,200 100,000 Cost of goods sold 54,200 enter a dollar amount Gross profit $enter a subtotal of the two previous amounts 50,000 Operating expenses 14,700 enter a dollar amount Net income $enter a total net income 15,600
Calculate the profit margin and the gross profit rate for each company. (Round answers to 1 decimal place, e.g. 15.5%. )
Crane Company Sheridan Company
Profit margin
Gross profit rate
SHOW LIST OF ACCOUNTS
LINK TO TEXT LINK TO TEXT
Answer:
Find my analysis below
Explanation:
The gross profit rate is the portion of net sales earned as gross profit prior to considering operating expenses as indicated by the formula below:
gross profit rate=gross profit/net sales
The profit margin measures the net income as a percentage of net sales
profit margin=net income/net sales
Crane company Sheridan company
Sales revenue $94,200 $103,000
sales returns and allowance $14,000 $3,000
Net sales $80,200 $100,000
cost of goods sold $54,200 $50,000
Gross profit $26,000 $50,000
Operating expenses $14,700 $34,400
Net income $11,300 $15,600
Gross profit rate=gross profit /net sales 32.4% 50.0%
Profit margin=net income/net sales 14.1% 15.6%
Crane company Sheridan company
Sales revenue 94200 =F5+F4
sales returns and allowance =E3-E5 3000
Net sales 80200 100000
cost of goods sold 54200 =F5-F7
Gross profit =E5-E6 50000
Operating expenses 14700 =F7-F9
Net income =E7-E8 15600
Gross profit rate=gross profit /net sales =E7/E5 =F7/F5
Profit margin=net income/net sales =E9/E5 =F9/F5
which of the following jobs function check accounting in the ledger and financial statements?
Answer:
Audit is the one who check .....