ABC Industries is a division of a major corporation. Data concerning the most recent year appears below: Sales $ 18,150,000 Net operating income $ 1,125,300 Average operating assets $ 4,900,000 The division's return on investment (ROI) is closest to:

Answer:

The given statement is FALSE.

Explanation:

It will only be till sustainable growth rate that the firm will not require external financing. The debt /ratio demands resources to sustain the operation, which are not powered by the profit margin.

Answer:

Please see attachment

Explanation:

Please see attachment

This answer deals with how tariffs and subsidies affect the welfare of a small country. Tariffs increase prices and reduce welfare, while subsidies promote domestic production and consumption, increasing welfare. The optimal production subsidy aligns the marginal social benefit with the marginal cost of production.

The subject of this question is economics, focusing on the impact of tariffs and subsidies on the welfare of a small country. The concepts used in this scenario include demand and supply curves, world price, tariffs, and social benefits.

To calculate the total effect on welfare, we first need to understand how tariffs and subsidies impact price, quantity demanded and supplied, and the overall equilibrium in the market.

(a) A tariff of 5 per unit raises the price from 10 (world price) to 15. Plugging this into the supply (S= 20 +10 P) and demand (D = 400- 5 P) equations gives the new quantities. The change in consumer and producer surplus implies the welfare effect of the tariff.

(b) A production subsidy of 5 per unit effectively reduces the cost of production. This shifts the supply curve down by the amount of the subsidy, leading to an equilibrium with a lower price and higher quantity than before. The change in consumer and producer surplus from this new equilibrium gives the welfare impact.

(c) A subsidy improves welfare more than a tariff as it encourages domestic production without raising the price for consumers. Therefore, unlike tariffs, subsidies stimulate both consumption and production, resulting in a greater gain in welfare.

(d) The optimal production subsidy can be derived by setting the marginal social benefit equal to the marginal cost of production. Solving for the price in the supply function, then comparing it with the world price plus the subsidy, we can determine the optimal subsidy level.

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Answer:

The answer is develop a flowchart. Letter A

Explanation:

The first step in process flow analysis is to develop a flowchart

Answer:

The correct answer is B.

Explanation:

Giving the following information:

How much would $100, growing at 5% per year, be worth after 75 years?

We need to use the following formula:

FV= PV*(1+i)^n

FV= 100*(1.05)^75= $3,883.27

Answer:

deduction = 0 in 2015

Deduction = $ 15000  in 2016  

balance = $20000

it is carried forward to the year 2017

Explanation:

given data

partnership interest = $40,000

partnership loss = $35,000

partnership income =  $15,000

to find out

How much may Kay deduct in 2015 and 2016

solution

we can say that Loss is  adjust or deduct against Profit of Kay when it  makes profit during a year

so as that  Kay make loss in 2015 and  no profits during that year to adjust those loses against

so deduction = 0 in 2015

but

in 2016

Kay income = $ 15000

Kay adjust loss of previous year against this income to extent of income available

so Deduction = $ 15000  in 2016  

and after that

here balance after deducting the passive loss is

balance = $35000 - $15000

balance = $20000

it is carried forward to the year 2017

Answer:

C. 86.17%

Explanation:

The computation of the expected dividend payout ratio is shown below:

Expected dividend pay out ratio = 100 - {(capital budget × equity ratio) ÷ (net income}  × 100

= 100 - {($83,000,000 × 30%) ÷ ($180,000,000} × 100

= 100 - (24,900,000 ÷ $180,000,000) × 100

= 100 - 13.83%

= 86.17%

All other information which is given is not relevant. Hence, ignored it

The expected dividend payout ratio for Yellow Duck Distribution Company is calculated by deducting the equity portion of the capital budget from net income and then dividing by net income to find the ratio. The payout ratio comes to 86.17%, making option C the correct answer.

Considering the case of Yellow Duck Distribution Company and its expected net income and capital budget, to find its expected dividend payout ratio under a strict residual dividend policy it is necessary to perform a calculation. The company needs to finance its capital budget proportionally with debt and equity according to its capital structure. With a capital budget of $83,000,000 and a 30% equity target, the equity portion of the capital budget would be 30% of $83,000,000, equal to $24,900,000. Since the company generates $180,000,000 in net income and will use $24,900,000 of this for capital budget financing, the amount available for dividends is the residual, in this case, $180,000,000 - $24,900,000 = $155,100,000. To calculate the dividend payout ratio, we divide the dividends by the net income: $155,100,000 / $180,000,000 = 86.17%. Therefore, option C is the correct answer.

Answer:

16,000

Explanation:

The net income change will be a $56,000 increase due to the special order.

The net income change as a result of the special order will be a $56,000 increase.

To calculate the change in net income, we first need to determine the additional revenue from the special order, which is 1,000 units * $56 = $56,000. Then, we subtract the variable cost of the additional units, 1,000 units * $40 = $40,000. Therefore, the net income increase will be $56,000 - $40,000 = $16,000.

Answer:

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Explanation:

Please see attachment .

Answer:

If minimizing the risk is important according to the solver report the way of investing is A=41.9% ,B=15.34% and C =42.76%

Explanation:

Please see attachment

Answer:

$ 138.121  

Explanation:

The annuity formula is as follows:

Annuity : Annuity * ((1-1/(1+r)^t)/r    where

r : Rate of return

t : Quantity of years of the annuity.

Annuity : ( ( 1- 1/ (1+0,05) ^ 25 ) / 0,05   = ( 1 - 0,295 ) / 0,05 =  14,09

$9,800 * 14,09 =  $ 138,121

Answer:

The answer is letter A.

Explanation:

No, because the relevant cost of the new machine is $10,000 more than the cost of the old machine.

Final answer:

After calculating the relevant costs for both keeping the old machine and purchasing the new machine, Chris Co. will save $80,000 over the next four years by purchasing the new machine. Thus, the company should replace the old machine.

Explanation:

To determine whether Chris Co. should replace the old machine, we need to calculate the relevant costs of keeping the old machine versus purchasing and operating the new one over the next four years. We'll ignore sunk costs like the purchase price of the old machine and focus only on the cash flows that will actually be affected by the decision from now on.

The old machine can be sold for $50,000, which is a cash inflow. It costs $20,000 annually to operate, totaling $80,000 over the next four years. The new machine costs $80,000 and will have a $10,000 salvage value in four years. The operational costs of the new machine are 50% less than the old machine, which would be $10,000 annually ($20,000 / 2), totaling $40,000 over the next four years.

The total cost for keeping the old machine for the next four years (ignoring the book value since it's a sunk cost and non-cash expense): sale of old machine - cost of operation = $50,000 - $80,000 = -$30,000.

The total cost for purchasing and operating the new machine: cost of new machine + operational costs - salvage value = $80,000 + $40,000 - $10,000 = $110,000.

The net savings by replacing the old machine: cost of keeping old machine - cost of new machine = -$30,000 - $110,000 = $80,000.

Since the cost of replacing the machine is $80,000 less than keeping the old one, the answer is (d) Yes, because the relevant cost of the new machine is $20,000 less than the cost of the old machine.

Answer:

$131,180; 21.53%

Explanation:

The controllable margin and the return on investment for 2017 are as follows:

Controllable Margin = Sales - Variable cost - Controllable fixed cost

                                 = $567,200 - $340,320 - $95,700

                                  = $131,180

Return on investment = Controllable Margin ÷ Average operating assets

                                     = $131,180 ÷ $609,100

                                     = 0.2153

                                     = 21.53%

Answer:

$165.90

Explanation:

The computation of the standard cost of one unit of product is shown below:

Direct material per unit = 2.10 pounds × $6.36 per pound = $13.36

Direct labor per unit = 5.26 hours × $10 per hour = $52.6

Manufacturing overhead per unit = 5.26 hours × $19 per direct labor hour = $99.94

The total would be $165.90 which reflect the standard cost of one unit of product I-Tal

Answer:

A. Disagree. Checking accounts represent something that the bank owes to the owner of the account. It is a bank liability.

Explanation:

Given the definitions of liabilities and assets, it is also important to distinguish the point of view when discussing whether a specific item is an asset or liability.

Since a checking account represents money bank users deposit into the bank, that means that the bank owes the money deposited to the bank customer.

Similarly, a car loan is a bank asset. It is an essential bank product representing the money lent to someone. That means bank users owe the bank in that case. Although the bank doesn't possess the loan money after providing someone with a loan, the loan money will be returned to the bank after some time (representing the key asset characteristic).

Answer:

D. has its profits taxed as personal income.

Explanation:

Characteristics of a sole proprietorship :

1. It Is Owned by one person

2. The onwer has an unlimited liability.

3. It doesn't usually have an unlimited life. It usually ends with the death of the owner.

4. Profits are taxed as personal income. 

5. It is very easy to form. It requires little legal cost.

Answer:

B. Fraud will be eliminated.

Explanation:

Controls when established provides the quality of assurance that the procedures are followed properly, regarding each and every accounting transactions.

There is an inbuilt rate of fraud in any business, which is unavoidable irrespective of any controls established.

Thus, controls do not assure elimination of fraud, but yes the effective implementation of control makes the fraud difficult to occur, as the controls set a standard procedure of doing an act.

This is basically because the controls establish the strict rules to be followed while accounting for transactions which states the clear picture of fair practice of accounting.

Controls are not designed to provide assurance thatFraud will be eliminated. "The correct answer is B.

Controls in an organization are designed to ensure that various aspects of operations are conducted effectively and efficiently. Here's the rationale behind each option:

A. Transactions are executed in accordance with management's authorization. Controls are indeed designed to ensure that transactions are executed according to management's authorization. This is to prevent unauthorized transactions and ensure that all actions taken are within the scope of management's directives.

B. Fraud will be eliminated. While controls are designed to reduce the risk of fraud, they cannot guarantee that fraud will be completely eliminated. Fraud can be perpetrated by individuals who are skilled at circumventing controls, or it can be due to collusion among employees. Therefore, controls can mitigate but not entirely eliminate the risk of fraud.

C. Access to assets is permitted only in accordance with management's authorization. Controls are designed to ensure that access to assets is restricted and only granted to authorized personnel. This helps in safeguarding the assets and preventing unauthorized use or theft.

D. The recorded accountability for assets is compared with the existing assets at reasonable intervals. Controls include regular reconciliations and physical counts of assets to ensure that the recorded accountability matches the actual assets on hand. This is to detect any discrepancies that might indicate theft, loss, or errors in record-keeping.

In summary, while controls can significantly reduce the risk of unauthorized transactions, unauthorized access to assets, and discrepancies in asset records, they cannot ensure the complete elimination of fraud. Hence, the statement that controls are not designed to provide assurance that fraud will be eliminated is correct."

Answer:

$275,000

Explanation:

The computation of the total overhead cost is shown below:

= Variable overhead cost + fixed overhead cost

where,

Variable overhead cost equals to

= (Total estimated overhead cost ÷ fixed direct labor hour hours) × flexible budget labor hours

= ($200,000 ÷ 40,000) × 37,000

= $185,000

And, the fixed overhead is $90,000

ow put these values to the above formula

So, the value would be equal to

= $185,000 + $90,000

= $275,000

Answer:

Robin and Linda have a different type of leadership skill

Explanation:

Robin has met the qualification for the path-goal of the company. She has the type of leadership that may work when employee morale is high.

Linda has met the qualification of transformational leadership. She treats the employee as complete human beings, consider emotions and perspective. She builds motivation by providing a clear vision. She also has a leadership skill ability to solve complex problems.

Both of them may help Maria to lead the company. Robin will help her utilize the task-oriented approach. Linda will help demonstrate a relationship-oriented style to the employee. These two orientations could be structured to support one another.

Robin has a rigid, research-oriented approach that demotivates her team due to a lack of budget transparency, while Linda is a supportive problem solver who may overburden herself with tasks and faces issues with insufficient budget information from finance.

Robin, the first manager, has a research-focused background and serves as a support to a division handling behavioral health services. Her approach is described as organized and motivated; however, it tends to be rigid, viewing issues in a "black and white" manner. This particular perspective causes her staff to feel demotivated. Additionally, Robin doesn't share budget details with her team, leading to allocation challenges among her staff.

Linda, the second manager, possesses significant experience in social science research and evaluation. Linda is acknowledged for her problem-solving skills and her capacity to organize and evaluate family services. Although recognized for her abilities and support for her team, she sometimes overextends herself by taking on too much work. Linda has expressed difficulty in receiving necessary budget information from the finance department, which hampers her ability to manage her department effectively.

Both managers are navigating the challenges of a high-turnover environment, which includes managing overworked staff and insufficient information flow from the finance department. Efforts to address budget communication and staff burnout could improve management and staff satisfaction. Understanding these dynamics within the organization is crucial for devising strategies that address staff welfare and service delivery effectiveness.

Answer:

C) 12.51%

Explanation:

Initial stock price = $59

Selling price = $66

Dividends paid = $0.38

The total return on the investment is the the sum of the dividend yield and the capital  gains yield on the investment:

[tex]R= DY +CGY\\R=\frac{dividends}{initial\ price}+ \frac{final\ price-initial\ price}{initial\ price} \\R=\frac{0.38}{59}+ \frac{66-59}{59}\\R=0.1251 = 12.51\%[/tex]

The return on the investment is 12.51%

To calculate the total return on the investment, the capital gains and dividends received are combined. The total earnings of $7.38, divided by the initial $59 investment and converted to a percentage, yield a total return of 12.51%.

The subject of this question is the calculation of total return on investment (ROI), which is a concept in finance and investing. To calculate the total return, we consider both the capital gains and any dividends received. The initial investment was $59, and the investment was sold for $66, resulting in a capital gain of $66 - $59 = $7. The investor also received a dividend payment of $0.38. The total earnings are therefore $7 (capital gain) + $0.38 (dividend), which equals $7.38. To find the total return as a percentage, we divide the total earnings by the initial investment and multiply by 100: ($7.38 / $59) × 100 = 12.51%. Therefore, the correct answer is C) 12.51%.

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Answer:

$926,000

Explanation:

For computing the initial cost of the warehouse project, we consider the current value of the land i.e represent the opportunity cost and the land value which is purchased six years ago for $874,500 represent the sunk cost which is not recoverable now. So, this sunk cost is not relevant.

And, the lease cost is also not relevant as the lease period will be ended soon.

All other information which is given is not relevant. Hence, ignored it

Answer:

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Explanation:

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Answer:

Holmes should sell process the product further, because the profit if process further is higher than sell product now.

Explanation:

Net profit if sell product now is $37,500 ( = sales to another manufacturer $97,500 – already spent $60,000)

Sales as in process further/ Incremental Accounting

Sales: $695,125 (=$415 x 1,675 units)

Additional Process costs: $485,570 (=$290 x 1,675 units)

Net profit if process further = total sales $695,125 – already spent $60,000 – additional process cost $485,570 = $149,555, higher than profit $37,500 if sell now.

Answer: (A) and (D)

Explanation:

(A)

Since it is a nationally renowned photography business, it has been running for sometime. Most likely hence, it has been operating as a registered nonprofit organization and the top 10 clients were owners of local charities

(D)

Janice sold the securities to the 40 clients 25 days after filing her registration statement with the Securities and Exchange Commission.

The question says she "decided" to sell those securities on the 5th day after filing her registration statement. It didn't say she sold it on that day.

So, if we sold the securities 25 days after, her court case would be different.

Answer:

Explanation:

The journal entries are shown below:

1. Cash A/c Dr $24,000          (600 shares × $40)

    To Common Stock $600        (600 shares × $1)

    To  Additional Paid-in Capital in excess of par - Common Stock $23,400

(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)

2. Cash A/c Dr $4,400         (100 shares × $44)

    To Common Stock $100      (100 shares × $1)

    To  Additional Paid-in Capital in excess of par - Common Stock $4,300

(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)

Answer:

C) a debit to Merchandise Inventory and a credit to Accounts Payable

Explanation:

The journal entry to record the purchase of inventory on account by using the perpetual inventory system is shown below:

Merchandise Inventory A/c Dr XXXXX

      To Accounts Payable A/c               XXXXX

(Being merchandise is purchase on credit)

Simply we debited the merchandise inventory account and credited the account payable account so that the correct posting can be done.

Answer:

b. an appreciation in Macedonian denars 

a. a depreciation in Canadian dollars

Explanation:

An appreciation of currency means the value of a currency rises in relation to another country's currency.

Depreciation of a currency is when the value of a currency of a county falls in relation to another country's currency.

If there is a decrease in demand for Canadian dollars, the value of Macedonia's currency increases because more of Macedonia's currency is demanded for in relation to Canadian dollars. Therefore, Macedonia's currency would appreciate while Canadian dollars would depreciate.

Answer:

(1) Commodity

(2) Flat

Explanation:

(1) Commodity

If people expect a deep recession coming ahead, they know that fiat (paper) money will lose all its purchasing power. Holding fiat money will not buy them their standard basket of goods & services, so they will prefer to hold commodity money.

(2) Flat

Fiat money is the legal tender money authorized by government, and any country's currency is a fiat money.

Answer

The answer and procedures of the exercise are attached in the following image.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. Is an opinion what contains the image. Judge it like it is.

Answer:Higher income families tend to have more people to support.

Explanation:

Income inequality refers to the differences in income among the populace.

The fact that a family has an high income does not suffice that all the income will be available for his consumption for he may have to give out the less privilege and this will not be captured by the census.

The fact that few move from one to another level of income to another will not disrupt census figure and this hold equally hold for in kind transfer they cannot disrupt census figure and can improve living standard.

Answer:

b) 15.5%

Explanation:

Let U.S. market portfolio be represented by variable "U"

And let Non- U.S. market portfolio be represented by variable "N"

σP = SQRT [ w²U*σ²U + w²N*σ²N + 2*wS* wN*σU*σN*correl. ]

whereby,

w= weight of...

σ² = variance of...

σP=SQRT[0.25²*0.182² + 0.75²*0.171² + 2*0.25* 0.75* 0.182* 0.171* 0.47 ]

σP = SQRT[ 0.002070+ 0.0164 + 0.005485]

= SQRT(0.023955)

= 0.15477 or 15.5%

= As a percentage, the standard deviation of your portfolio is 15.5%