1. Dougie’s Donuts most recent free cash flow (FCF) was $225 million; the FCF is expected to grow at a constant rate of 4%. The firm’s WACC is 12.55%, and it has 15 million shares of common stock outstanding. The firm has $75 million in short-term investments, which it plans to liquidate and distribute to common shareholders via a stock repurchase; the firm has no other non-operating assets. It has $545 million in debt and $50 million in preferred stock. a. What is the value of operations? b. Immediately prior to the repurchase, what is the intrinsic value of equity? c. Immediately prior to the repurchase, what is the intrinsic stock price? d. How many shares will be repurchased? How many shares will remain after the repurchase? e. Immediately after the repurchase, what is the intrinsic value of equity? The intrinsic stock prices.

Answer: a. Decrease in Net Exports

b. Increase in Net Capital

c. Decrease in Net Capital.

d. Increase in Net Exports

Explanation:

a. A Decrease in Net Exports

Net Exports is Exports - Imports. In buying a Television from a foreign company, the American has imported the good. This will reduce Net Exports by the aforementioned formula.

b. An INCREASE in NET CAPITAL OUTFLOW

This is essentially Capital being invested in other countries. It increases when more is invested in other countries as opposed to less.

c. A DECREASE in NET CAPITAL OUTFLOW.

As previously stated, Net Capital Outflow increases when a country invests more in another country. Since we are looking at it from the perspective of the USA, Sony, which is not an American company, buying into such capital is considered a Decrease in Net Capital Outflow as money is coming into the US.

d. An INCREASE in NET EXPORTS

Here, a foreigner is buying goods in the USA. That translates to Export. And by the Net Export Equation, Net Exports will rise.

If you need any clarification do react or comment.

Net exports decrease when an American buys a Sony TV, while it increases when a South Korean tourist buys Sunkist oranges. Net capital outflow increases with purchase of a share in a South Korean company by an American and decreases when Sony pension fund buys a U.S. Treasury bond.

Here are the transactions and their impact:

https://brainly.com/question/37531629

#SPJ12

Answer:

the best option is number 1, sell the jackets to a secondhand store at $8 will yield $40,960 in profits

Explanation:

the previous manufacturing costs can be considered sunk costs because they  cannot be recovered, so we must analyze the options to determine which one yields the highest profit.

option 1

sell 5,120 jackets to secondhand stores at $8 each, profit = $40,960

option 2

disassemble the jackets and sell them at $12 each, profit = $61,440 - $32,200 (disassembling costs) =  $29,240

option 3

rework the jackets, profit = ($45 x 2,900) - $101,700 = $28,800

the best option is number 1, sell the jackets to a secondhand store at $8 will yield $40,960 in profits

Answer:

Option (b) is correct.

Explanation:

Given that,

Income from operations = $400,000

Total service department charges = $200,000

The income from operations already takes into account the service department charges which means that it is already deducted. Hence, if we add the total service department charges to the income from operations then we can get the income from operations before service department charges.

So, the income from operations before service department charges is as follows:

= Income from operations + Total service department charges

= $400,000 + $200,000

= $600,000

Answer:

Not change

Decrease

Explanation:

A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply.

The bakery cannot change its price because it operates in a perfectly competitive market.

Instead the bakery would reduce cost by decreasing its level of production.

I hope my answer helps you

Zoe's Bakery will increase its price and decrease its level of production, as the short-term response in a perfectly competitive market leads to only a partial offset of the higher costs.

Zoe's Bakery operates in a perfectly competitive industry where an increase in variable costs leads to a leftward shift in the cost curves, which includes the average total cost, average variable cost, and marginal cost curves. In response to increased costs, to maximize profits, Zoe's Bakery will increase its price and decrease its level of production. This is because, in the short run, firms in perfectly competitive markets can only increase prices to partially offset the higher costs—prices rise, but by less than the increase in cost per unit. This could result in economic losses, potentially causing firms to exit the market in the long run. As a consequence, the price may eventually increase by the full amount of the increase in production cost to reach a new equilibrium.

Answer:

A) X Demand fall 15% ; B) X Demand fall 32% ; C) X Demand fall 8% ; D) X Demand rise 4% . 2] Price (Y) rise 5%

Explanation:

Elasticity is the responsive change in demand of a good, due to any factor affecting it.

Elasticity = % change in demand / % change in factor affecting demand       So, % change in demand = % change in factor  x Elasticity

Given : Price Elasticity =  -3 , Income Elasticity = 1 , Advertising Elasticity = 2 , Cross Price Elasticity = -4

A) Price of good decrease by 5% : So, Demand would change by 5 x price elasticity, 5 x -3 i.e - 15% (demand fall)  

B) Price of good Y increase by 8% : So, X's Demand would change by 8 x -4 i.e - 32 % (demand fall)  

C) Advertising decreased by 4% : So, X's demand would change by -4 x 2 i.e - 8% (demand fall)  

D) Income increase by 4% : So, X's demand would change increase by 4 x 1 i.e 4% (demand rise)

2.  Cross Price Elasticity = 4 ; Desired change in quantity = 20% increase

Elasticity ( 4 ) = desired % change in demand (20%) / % change in Y price

% change in Y price = 20 / 4 = 5 % (price rise)

If the elasticity is 1.4, advise lowering the price; if it is 0.6, raise the price; if it is 1, maintain the price. Gasoline price elasticity of supply affects UPS and FedEx. The income elasticity of bread consumption is -0.307, making bread an inferior good.

If the elasticity of demand for the company's product is 1.4, the company should lower the price. This is because the decrease in price will be offset by the increase in the amount of the product sold, resulting in higher total revenue. If the elasticity were 0.6, the company should raise the price. Increasing the price will offset the decrease in the number of units sold, leading to higher total revenue. If the elasticity is 1, the total revenue is already maximized, and the company should maintain its current price level.

The gasoline price elasticity of supply refers to the percentage change in quantity supplied as a result of a given percentage change in the price of gasoline. For a company like UPS or FedEx, this means that if the price of gasoline increases, the company's supply of transportation services will become less elastic. This could lead to higher costs for the company and possibly a decrease in their ability to meet customer demand.

To calculate the income elasticity of bread consumption, we use the formula: (Change in Quantity / Average Quantity) / (Change in Income / Average Income). In this case, the change in quantity consumed is -8 (30 - 22), the average quantity is 26 (30 + 22 / 2), the change in income is 13000 (38000 - 25000), and the average income is 31500 (25000 + 38000 / 2). Plugging these values into the formula, we get (-8 / 26) / (13000 / 31500) = -0.307. Since the income elasticity is negative, bread is an inferior good.

Answer:

a) A bailment was not created between Meaux and the Sisters of Charity.  This answer is supported by the two requirements for a bailment to be made, stated in answer b) below.

b) A bailment is the temporary transfer of physical control of an item of personal property from the bailor to the bailee.  It is not a transfer of ownership.

For a bailment to be made, there must be physical control of the bailed item and intention to control on the part of the bailee.  Items kept in the lock are not under the custody of the Sisters of Charity and they did not have any intention to safeguard them; no wonder the rule and warning sign.

Explanation:

The alleged bailee, the Sisters of Charity, did not have any intention to control and there was no way they could have known what Meaux deposited in the lock.  That was why the rules of the health and wellness center clearly declared that the Center was not responsible for lost or stolen items and went further with a sign that "we cannot assure the safety of your valuables."

These rule and sign are good warnings which Meaux should have taken into consideration before enrolling as a member of the center and also before bringing his expensive Rolex watch and cash to the center.

That the Sisters of Charity kept the master key for locks was for the interest of the Center patrons when they lost or forgot their keys.

Answer:

A. $8,000

Explanation:

For computing the amount of depreciation expenses, first, we need to find out the depreciation expense per unit which is shown below:-

Depreciation expense per unit = (Total acquisition cost - Salvage value) ÷ Total units

= ($33,000 - $3,000) ÷ 60,000

= $30,000 ÷ 60,000

= 0.50 per unit

Amount of depreciation expenses = Actual Machine produced × Depreciation expense per unit

= 16,000 × 0.50

= $8,000

Therefore for computing the depreciation expenses we simply multiply the actual machine produced with depreciation expense per unit.

Answer:

a. Total manufacturing cost $37,000

b. Unit product cost $37

Explanation:

Total Cost = Sum of all manufacturing costs

Total manufacturing cost -

direct materials                                  $10,000

direct labor                                         $12,000

overhead ($12,000×125%)                 $15,000

Total                                                    $37,000

Unit Product Cost = Total Cost / Number of Units

                             =  $37,000/ 1,000 units

                             = $37

Answer:

a. Total manufacturing cost is $37,000

b. Unit product cost is $37 per unit

Explanation:

The total manufacturing cost is the sum of the direct and indirect costs. The indirect costs are also known as overheads.

Given that the job cost sheet for Job 313 includes $10,000 in direct materials cost and $12,000 in direct labor cost,

Total direct cost = $10,000 + $12,000

= $22,000

Also given that the Company assigns overhead cost to Jobs on the basis of 125% of direct labor cost

Total overheads = 125% * $12,000

= $15,000

Hence total manufacturing cost

= $22,000 + $15,000

= $37,000

Given that 1,000 units were produced,

Unit cost = $37,000/1000

= $37 per unit

Answer:

Break-even point (dollars)= $600,000

Explanation:

Giving the following information:

Selling price per unit= $10

Variable costs per unit= $4

Fixed costs= $120,000

Desired profit= $240,000

To determine the sales level to achieve the desired profit, we need to use the break-even point in dollars formula:

Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio

Break-even point (dollars)= (120,000 + 240,000) / [(10 -4)/10]

Break-even point (dollars)= 360,000/ 0.6

Break-even point (dollars)= $600,000

Answer:

$67.6

Explanation:

MV=D1/(Ke-g)

D1=4.19

g=4.2%

Ke=10.4%

MV=4.19/(10.4%-4.2%)

MV=$67.6

Answer:

A. A only

Explanation:

U.S. Generally Accepted Accounting Principles (GAAP) does not allow property, plant, and equipment to be written up or revalued. If the fair value of PP&E falls below the book value and the amount is material then a company must write down the asset to fair value.

Since under US GAAP, once PPE is written, it can not be reversed. as Company B is indicated to have reversed the write down while company A did not. It therefore means that Company A only is reporting under US GAAP.

Final answer:

Company A is most likely to report under US GAAP because US GAAP does not permit reversal of PP&E write-downs, and higher COGS reported by Company A could be indicative of using the LIFO method, permitted under US GAAP when prices rise.

Explanation:

The question asks which of the two companies, A or B, most likely reports under US GAAP, given that:

Under US GAAP, reversing a write-down of PP&E (property, plant, and equipment) is not permitted once it is recorded. Moreover, if prices rise throughout the year and inventory valuation methods remain constant, COGS (Cost of Goods Sold) would typically increase under the last-in, first-out (LIFO) method which is allowed under US GAAP. This premise leads to the conclusion that Company A, which did not reverse the PP&E write-down and potentially follows LIFO accounting (assuming it led to higher COGS), is the one that most likely reports under US GAAP. Therefore, the correct answer is A. A only.

Answer:

10%

Explanation:

The actual return that an investor earn on a bond until its maturity is called the Yield to maturity. It is a long term return which is expressed in annual rate.

According to given data

It is assumed that face value of the bond is $1,000

Coupon Payment = C = $1,000 x 10.3% = $103 annually = $51.5 semiannually

Price of the Bond = P = $1,000 x 102% = $1,020

Numbers of period = n = (17-2) years x 2 = 30 periods

Use Following Formula to calculate YTM

Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

Yield to maturity = [ $51.5 + ( $1,000 - $1,020 ) / 30 ] / [ ($1,000 + $1,020 ) / 2 ]

Yield to maturity = $50.83 / $1,010 = 0.0503 = 5.03% = 5% per Semiannual

Yield to maturity  = 5% x 2 = 10% annually

Yield to maturity = 3.56% semiannually OR 7.12% annually

Answer:

The answer is 10.04%

Explanation:

Yield-to-maturity (YTM) is the of return an investor is expecting from its bonds.

The payment is semiannual.

Number of years, N is 30 years[(7 years - 2 years) x 2]

YTM = ?

Present Value(PV) = $102(102% of $100)

Coupon payment (PMT) = $5.15[(10.3percent ÷ 2) x $100]

Future Value(FV) = $100

Using Financial calculator, we have:

5.02percent

This is for semiannual

Therefore, annual YTM will be:

5.02 percent x 2

10.04%

Answer: $1,766.67

Explanation:

Alright then.

First we will calculate the Earnings after tax by using the retained earnings and dividends as dividends are shared after tax.

After tax profit = Retained Earnings + Dividends.

= 510 + 184

= $694

Now we add the tax back. That looks something like,

694 = (1 - T) * x

x = 694/1 - T

x = 694 / 1 - 0.4

x = 1156.66666667

Earnings before tax was $1,156.67

Now we add the Interest back to get EBIT

= 1,156.67 + 610

= $1,766.67

$1,766.67 was the company's EBIT.

If you need any clarification do react or comment.

The company's EBIT (Earnings Before Interest and Taxes) for Smashed Pumpkins Co. is $1766.67.

To calculate the company's EBIT (Earnings Before Interest and Taxes), we need to consider the dividends, interest, increase in retained earnings, and the tax rate provided.

First, we calculate the net income after taxes by adding the increase in retained earnings ($510) to the dividends paid ($184), giving us $694.

Next, to find the pre-tax income, we divide the net income after taxes by (1 - tax rate). With a tax rate of 40%, this gives us a pre-tax income of $694 / (1 - 0.4) = $1156.67.

Finally, we can determine the EBIT by adding the interest incurred ($610) to the pre-tax income, which results in an EBIT of $1156.67 + $610 = $1766.67.

This calculation assumes all other operating expenses are already included in the sales and depreciation figures and that there are no other income or expenses to consider.

Answer:

1. The number of Shares of Preferred Stock issued was

88000/20 =  4400  

2. Number of shares outstanding was

4400 - 1000=   3400  

3. Average issue price of the preferred stock was

(88000+10340)/4400= 22.35  

4. Average issue price of the common stock was

(478400/5200)=  92

5. The treasury stock transaction decreased stock equity by  9100  

6. The treasury stock cost (9100/1000)=    9.1  

7. Total stockholder Equity is     589,640

Stockholders Equity        

Capital stock        

Preferred stock   88000    

paid in capital in excess of par  10340    

Common stock   478400    

total paid in capital   576740    

Retained Earnings   22000    

total paid in capital & Retained earnings 598740    

less Treasury stock   -9100    

total Stockholders Equity  589640

Chemfast Corporation has issued 5,400 preferred shares, with 4,400 shares outstanding. The average issue price is $22.87 for preferred and $102.00 for common stock, while the treasury stock transaction decreased equity by $9,600.

Let's break down the provided data regarding Chemfast Corporation's stockholders' equity to answer the questions:

1. The number of shares of preferred stock issued was:

To find the number of issued preferred shares, use the par value:

Total amount of Preferred Stock / Par Value = $108,000 / $20 = 5,400 shares.

2. The number of shares of preferred stock outstanding was:

Issued shares minus treasury shares:

5,400 issued shares - 1,000 treasury shares = 4,400 outstanding shares.

3. The average issue price of the preferred stock was (per share):

Average issue price includes additional paid-in capital:

(Total Preferred Stock + Additional Paid-in Capital) / Number of issued shares = ($108,000 + $15,390) / 5,400 = $22.87 per share.

4. The average issue price of the common stock was (per share):

Total Common Stock / Number of issued shares = $632,400 / 6,200 = $102.00 per share.

5. The treasury stock transaction increased (decreased) stockholders' equity by:

The purchase of treasury stock decreases equity:

-$9,600 (since no shares have been sold).

6. The treasury stock cost (per share):

Cost of treasury stock / Number of treasury shares = $9,600 / 1,000 = $9.60 per share.

7. Total stockholders' equity is:

Summing up all components:

(Preferred Stock + Additional Paid-in Capital, Preferred + Common Stock + Retained Earnings) - Treasury Stock = ($108,000 + $15,390 + $632,400 + $32,000) - $9,600 = $778,190.

Answer:

The entries are made as follows;

Explanation:

Service Revenue             Dr.$4,350

Income Summary            Cr.$4,350

(To close revenue account)

Income Summary

Supplies expense         Dr.$910

Insurance Expense       Dr.$540

Salaries and Wages Expense Dr.$1,770

Income Summary                                         Cr.$3,220

(To close expenses)

Income Summary (4,350-3,220)   Dr.$1,130

Retained Earnings                         Cr.$1,130

Closing journal entries are made to temporary accounts like revenue and expense accounts. For Wildhorse Co., debit Service Revenue and credit Income Summary for the amount of revenue. Debit the total of all expenses to Income Summary and credit each individual expense. Lastly, debit Income Summary for the balance of net income and credit Retained Earnings.

In closing the books for Wildhorse Co. on January 31, 2022, you group accounts into two categories: revenues and expenses. First, close revenues to Income Summary. The entry is a debit to Service Revenue for $4,350 and a credit to Income Summary for $4,350. Second, close the expense accounts. Debit Income Summary for the summed value of Supplies Expense ($910), Insurance Expense ($540), and Salaries and Wages Expense ($1,770), which totals $3,220, and then credit each expense individually. The balance in the Income Summary (representing net income) is $1,130 which is the difference between Service Revenue ($4,350) and total expenses ($3,220). Finally, close Income Summary and Retained Earnings. Debit Income Summary for $1,130 and credit Retained Earnings for $1,130.

https://brainly.com/question/33762472

#SPJ3

Complete Questions:

Suppose that the federal administration plans to fight a deep ongoing recession with a nationwide plan of increasing infrastructure. Congress approves it and adjusts the budget accordingly to put the plan in motion immediately. Aggregate demand spending components include consumption (C), investment (I), government (G), and exports (X) minus imports (M). Analyze what the aggregate demand and aggregate supply model predicts about the infrastructure plan to answer the following three questions.

1. What happens to the level of G

(a. it can increase (+), b. decrease (-) or c. stay constant (0)).

2. What likely happens to the aggregate demand curve?

a. The curve shifts to the left (A decrease in AD)

b.  The curve shifts to the right (An increase in AD)

c. The curve remains in the same spot

3. What likely happens to the level of unemployment?

a. unemployment decreases

b. unemployment remains the same

c. unemployment increases

Answer:

1. option a

2. option b

3. option a

Explanation:

1. Level of government spending will increase.Option A.

2. It will shift to the right. Option B.

3. Unemployment will decrease. Option A. This is because as AD increases firms will employ more workers to produce more output. Thus, unemployment will decrease.

Final answer:

Increasing government infrastructure spending boosts the government spending component of aggregate demand, expected to shift the aggregate demand curve rightward and stimulate the economy. This can alleviate unemployment and possibly lead to increased productivity and lower costs for businesses.

Explanation:

When the federal administration decides to combat a deep, ongoing recession by increasing infrastructure spending, we are discussing changes within the realm of macroeconomics, specifically looking at the aggregate demand and aggregate supply (AD-AS) model.

According to the AD-AS model, government spending (G) is a crucial component of aggregate demand, which also includes consumption (C), investment (I), and net exports (X-M, which is exports (X) minus imports (M)).

An increase in government spending, in an effort to improve infrastructure, directly increases the G component of aggregate demand. This is expected to shift the aggregate demand curve to the right, indicating a higher total planned expenditure in the economy at every price level.

This shift to the right suggests a stimulation in total spending, which includes higher employment and production levels, potentially helping to alleviate unemployment and lift the economy out of recession.

Moreover, this additional spending typically results in a multiplier effect, as the initial government spending leads to increased incomes for businesses and workers involved in infrastructure projects, who then increase their consumption spending, possibly leading to further increases in aggregate demand.

The impact on aggregate supply might be less immediate, but over the long term, improved infrastructure can reduce costs for businesses and improve productivity, which can shift the aggregate supply curve to the right as well.

Answer:

Preferred stock dividends is $71,100

Common stock dividends is $48,900

Explanation:

The cumulative preferred stockholders would be paid prior year dividends as well as the current year's,hence would be entitled to two years' dividends with remnant thereafter being paid to common stockholders.

preferred stock dividends=79,000*$5*9%=$35,550

The preferred stock dividends per year is $35,550,which means that they would get $71,100 (dividends for two years).

Common stock dividends=$120,000-$71,100 =$48,900

The rationale for preferred stocks receiving arrears of dividends is because of the cumulative nature which entitles them to arrears of dividends

Answer:

Explanation:

Amount paid as a preferred dividend

preferred dividend = previous year dividend + current year dividend

   {number of share × par value             +   {number of share × par value

    × preferred dividend percentage}          × preferred dividend percentage}

  {79,000 shares  × $5 each × 9%}  +   {79,000 shares  × $5 each × 9%}

 $35,550 + $35,550  = $71,100

the amount paid as preferred dividend is $71,100

Amount paid as common stock dividend = Total cash dividend paid - preferred dividend = $120,000 - $71,100

       $48,900

the amount paid as common stock dividend is $48,900

Answer:

$831,600

Explanation:

The budget must account for all of the production of the first quarter and 20% of the production of the second quarter, the number of boots considered in the budget is:

[tex]b= 48,000 +0.20*39,000\\b=55,800\ boots[/tex]

Assuming that each boot uses exactly 2kg of raw material and that the company has 19,200 kg on hand, the amount of raw material still required is:

[tex]m = 2*55,800-19,200\\m=92,400\ kg[/tex]

If the cost per kg is $9, then the budgeted materials purchases cost for the first quarter is:

[tex]C=92,400*\$9\\C=\$831,600[/tex]

The budgeted materials purchases cost is $831,600.

The gain or loss on disposal is calculated by subtracting the net book value (cost less accumulated depreciation) from the sale price of the asset. Depending on the amount of accumulated depreciation, the MoveIt Corporation would record a break-even, a loss, or a gain on the sale of its delivery truck.

Calculating Gain or Loss on Disposal:

To calculate the gain or loss on the disposal of the delivery truck, we need to consider the truck's original cost, the accumulated depreciation, and the sale price. The formula for calculating gain or loss is:

Sale Price - (Original Cost - Accumulated Depreciation) = Gain or Loss

Journal Entry for Disposal of the Truck:

The journal entry varies based on the accumulated depreciation and whether there was a gain or loss:

Answer: Please see explanation column for answers

Explanation:

A) Amount refund owed to customer=

Sale of item - discount on item

=$28000- ($28000 x 2%) = $27,440

B)Journal of the entries made by the seller to record  refund

Dr Sales Returned and allowances - $28,000

Cr Sales Discount $560

Cr Cash $27,440

c)  Journal of the entries made by the seller to record  return of merchandise

Cr Merchandise Inventory-$16,800

Dr Cost of Merchandise  Sold -$16,800

Answer:

The amount of refund owed to customer is the amount of cash $27,440 received from the customer.

Dr sales returned and allowances       $28,000

Cr Cash                                                                  $27,440

Cr sales discount                                                    $560

Return of merchandise:

Dr merchandise inventory                      $16,800

Cr Cost of merchandise sold                                $16,800

Explanation:

The entries passed initially that need to be reversed now are:

The discount on the sale is 2% of $28,000=$560 debit to sales discount

Cash received from the customer =$28000-$560=$27,440 debit to cash account

Actual amount debited to sales is $28,000 credit to sales account

Upon return of the merchandise,the merchandise inventory is debited and cost of merchandise sold is credited with cost of merchandise at $16,800

Answer:

a time period in which output prices can change in response to supply and demand but in which all input prices have not yet been able to completely adjust

Explanation:

Answer:

Correct option is D

$ 22,923

Explanation:

According to International Accounting standards (IAS) 16 property plan and equipment (PPE), the cost of an asset is the purchase cost plus other costs of bringing it to the intended working conditions.

So we will add the purchase cost to the cost of delivery, tax and installation.

The purchase cost less discount = (100-2)% × 21,500= $21,070

The cost of the equipment =  $21,070 + 320 + 350 + 1183

                                             =$ 22,923

Answer:

Net income                               105,000

Explanation:

Income statement for North Segment

                                                     $

Revenue                                   660,000

variable cost                            ( 383,000)

Contribution                            277,000

Fixed expenses                        (79,000)

income before allctd. cost    198000

Allocated fixed cost                 (93,000)

Net income                               105,000

Final answer:

The segment margin for the North business segment is $198,000, calculated by subtracting the variable and traceable fixed expenses from the sales revenues for that segment.

Explanation:

To calculate the segment margin for the North business segment of Bondi Corporation, we need to subtract all expenses that can be directly attributed to the segment from its sales revenues. This would include both variable and traceable fixed expenses specific to the North segment.

Here's how we calculate the segment margin:

Note that the common fixed expenses allocated to the North segment are not included in the segment margin calculation. They are considered when calculating the net income for the entire company.

Answer and Explanation:

The Journal entry with their narrations is shown below:-

1. Cash  Dr,                          $43,000

   To Notes Payable                            $43,000

(Being Cash is recorded)

2. Interest expenses Dr,    $215

($43,000 × 6% ÷ 12)

Notes payable Dr,            $616.31

       To Cash                                            $831.31

(Being  Interest expenses is recorded)

3. Interest expenses Dr,    $211.92

($43,000 - $616.31) × 6% ÷ 12)

Notes payable Dr,            $619.39

       To Cash                                            $831.31

(Being Interest expenses is recorded)

Therefore we have recorded the issuance of the installment note payable and the first two monthly payments.

The issuance of the installment note payable and the first two instalments by Tropical Paradise can be recorded using journal entries. The issuance results in a 'Cash' debit and 'Notes Payable' credit worth $43,000. Payments result in 'Interest Expense' and 'Notes Payable' debits and a 'Cash' credit, where the amount reflects the payment towards interest and principal.

Tropical Paradise's decision to borrow and subsequent payments can be recorded via journal entries. The issuance of the installment note payable would result in journal entry namely 'Cash' (Debit $43,000) and 'Notes Payable' (Credit $43,000). This represents the increase in cash by the loan amount and the establishment of the liability to pay this sum back to the bank.

Upon making the first monthly payment of $831.31, Tropical Paradise would make another journal entry: 'Interest Expense' (Debit $215) and 'Notes Payable' (Debit $616.31) to reflect the payment of some of the principal and interest, and 'Cash' (Credit $831.31) to show the reduction in available cash from making the payment. These entries would be repeated for the second payment as well.

The interest expense is calculated as the outstanding principal (in these cases, $43,000 and $42,383.69) multiplied by the annual interest rate (6%), divided by the number of periods in the year (12).

https://brainly.com/question/22917325

#SPJ3

Answer and Explanation:

The journal entries are shown below:

a. Investment Dr $200,000

       To Cash $200,000

(Being the acquirement is recorded)

b. Cash Dr $6,000

        To Interest revenue $6,000

(Being the cash is recorded)

The computation is shown below:

= $200,000 × 6% × 6 months ÷ 12 months

= $6,000

c. Cash $67,900    ($70,000 × 97%)

   Loss on sale of investment $2,100

          To Investment $70,000

(Being the cash is recorded)

d. Interest receivable $1,300

           To Interest revenue $1,300

(Being the interest receivable is recorded)

= ($200,000 - $70,000) × 6% × 6 months ÷ 12 months

= $1,300

Answer:

Ervin loan rate is 10.8%

Morten loan rate is 8.80%

Richmond loan rate is 11.00%

Garfield loan rate is  9.50%

Explanation:

The amount to charge to each subsidiary is the weighting of each subsidiary project success rate multiplied by aggregate loan rate.

Ervin subsidiary project success weighting=(93%*4)/(93%+76%+95%+82%)

                                                                       =1.08

the figure 4 represents 4 subsidiaries

Morten subsidiary project success weighting=(76%*4)/(93%+76%+95%+82%)

                                                                       =0.88

Richmond subsidiary project success weighting=(95%*4)/(93%+76%+95%+82%)

                                                                       =1.10

Garfield  subsidiary project success weighting=(82%*4)/(93%+76%+95%+82%)

                                                                       =0.95

Assuming the aggregate loan rate is 10%

Ervin loan rate=10%*1.08

                         =10.8%

Morten  loan rate=10%*0.88

                         =8.80%

Richmond   loan rate=10%*1.10

                         =11.00%

Garfield loan rate=10%*0.95

                              =9.5%

Answer:

Assurance of future profits

Explanation:

Budgeting refers to estimating a future cost or revenue as on today so as to reduce business uncertainty and achieve planned goals. For example, budgeted costs reveal the estimated costs that would be incurred in the near future.

Budgeting is based upon past figures and current trends so as to estimate the future prospects of an activity under consideration. Such an activity reveals the course of action and aids better planning for the future.

For instance, a cash budget reveals the cash surplus or defict which shall arise in the near future and such a budget draws a firm's attention towards the funds it will require in the near future and from what sources those can be raised.

Since budgeting is an estimate and cannot account for unforeseen business events whose indications did not exist at the time of preparing such budgets, it's results cannot guarantee or assure future profits to a business. It's purpose is to reduce uncertainity, it cannot altogether eliminate uncertainity.

Answer:

$125,000

Explanation:

Good worth $250,000-$125,000

=$125,000

The amount that will be reported in the financial statements for the accounts receivable due from Charles Inc is $125,000 due to the fact that On June 10, 2017 goods worth $250,000 where sold to Charles Inc and On June 19, 2017, David received payment for 1/2 of the amount due from Charles Inc which makes us to arrived at $125,000 which is the 1/2 of $250,000 then less the actual amount which is $2,50,000 which in turn make us to arrived at $125,000 as the answer.

(1/2×$250,000)=$125,000

Answer:

Retail Division  $480,000

Commercial Division  $30,000

Explanation:

To measure divisional income consider only those items attributable to a particular division.

Retail Division

Sales                                                                             2,150,000

Less Cost of Sales                                                       (1,300,000)

Controllable Contribution                                              850,000

Less Controllable Fixed Cost :

Selling expenses                                                          (150,000)

Allocated Central Cost (2,750/4,000×$320,000)     (220,000)

Divisional Profit Contribution                                       480,000

Commercial Division

Sales                                                                              1,200,000

Less Cost of Sales                                                        (800,000)

Controllable Contribution                                              400,000

Less Controllable Fixed Cost :

Selling expenses                                                          (150,000)

Allocated Central Cost (1,250/4,000×$320,000)      (220,000)

Divisional Profit Contribution                                         30,000

Answer and Explanation:

The preparation of the sales budget for the month of Jan and Feb is presented below:

Particulars                                       January February

Budgeted luggage sets to be sold    1,850        2,250

Sales price per unit                      $345        $345

Total sales                                     $638,250  $776,250

By multiply the luggage sets with the sales price per unit we can get the total sales and the same is shown above