Answer:
1. The margin for Alyeska Services Company: 27.37%
2. The turnover for Alyeska Services Company= 49.45%
3. The return on investment (ROI) for Alyeska Services Company = 13.54%
Explanation:
Please find the below for detailed explanations and calculations:
1. The margin for Alyeska Services Company = Net operating income / Sales = 4,900,000/17,900,000 = 27,37%;
2. The turnover for Alyeska Services Company= Sales / Average operating income = 17,900,000/36,200,000 = 49.45%;
3. The return on investment (ROI) for Alyeska Services Company = Net operating income/Average operating income= 4,900,000/36,200,000= 13.54%
At 13000 direct labor hours, the flexible budget for indirect materials is $26000. If $28400 are incurred at 13400 direct labor hours, the flexible budget report should show the following difference for indirect materials:
$2400 favorable.
$2400 unfavorable.
$1600 favorable.
$1600 unfavorable.
Answer:
Variance will be $1600 ( unfavorable )
So option (d) will be the correct option
Explanation:
We have given indirect labor hours = 13000
And the flexible budget for indirect material = $26000
So indirect material cost [tex]=\frac{flexible\ budget\ for\ indirect\ material}{indirect\ labor\ hour}=\frac{$26000}{13000}=2\ per\ direct\ labor\ hour[/tex
Budgeted Cost = 13400×2 = 26800
Actual Cost is given = $28400
So variance = $28400-$26800 = $1600 ( unfavorable )
So option (d) will be the correct option
When a perfect competitive industry is in long-run equilibrium,
a. Firm have no incentive to enter o exit the industry.
b. Market price is equal to minimum long-run average cost.
c. Each firm earns a normal return.
d. Both a ande
e. All of the above
Answer:
e. All of the above
Explanation:
A perfect competition is characterised by many buyers and sellers of identical products. Firms in a perfect competition are price takers.
In the long run, a perfect competitive firm produces where:
Price = marginal cost = marginal revenue = average long run cost. Producing at this point eliminates all forms of economic profit. Therefore, the firm earns only normal profit.
In the long run , there is zero economic profit, therefore, there would be no incentive for firms to enter into the market.
Fisher Co. acquired all of the outstanding preferred shares for $148,000 and 60% of the common stock for $1,281,000. Fisher believed that one of Bast's buildings, with a twelve-year life, was undervalued on the company's financial records by $70,000. Required: What is the amount of goodwill to be recognized from this purchase?
Answer:
$ 659000
Explanation:
Please see attachment
You own a portfolio that is 25 percent invested in Stock X, 40 percent in Stock Y, and 35 percent in Stock Z. The expected returns on these three stocks are 10 percent, 13 percent, and 15 percent, respectively What is the expected return on the portfolio? (Do not include the percent sign (%). Round your answer to 2 decimal places
Answer:
12.95%
Explanation:
Expected return of portfolio (rP) = wX*rX + wY*rY +wZ*rZ
wX= weight of X =25% or 0.25 as a decimal
rX = return of X = 10% or 0.10 " "
wY = weight of Y =40% or 0.40 " "
rY = return of Y = 13% or 0.13 " "
wZ = weight of Z = 35% or 0.35 " "
rZ = return of Z = 15% or 0.15 " "
Next, plug in the numbers to the above formula;
(rP) = (0.25*0.10) +(0.40*0.13) +(0.35 * 0.15)
= 0.025 + 0.052 + 0.0525
= 0.1295
Therefore expected return of portfolio = 12.95%
Final answer:
The expected return on the portfolio, which is comprised of three stocks with different weights and expected returns, is calculated to be 12.95 when rounded to two decimal places.
Explanation:
The expected return on the portfolio can be calculated by multiplying the weight of each stock by its respective expected return and then summing these products. Here's the formula and calculation:
Expected return on Stock X = Weight of Stock X * Expected return of Stock X = 0.25 * 10 = 2.5%Expected return on Stock Y = Weight of Stock Y * Expected return of Stock Y = 0.40 * 13 = 5.2%Expected return on Stock Z = Weight of Stock Z * Expected return of Stock Z = 0.35 * 15 = 5.25%To find the portfolio's expected return, add the expected returns of the individual stocks:
Expected return on the portfolio = Sum of individual expected returns = 2.5% + 5.2% + 5.25% = 12.95%The expected return on the portfolio, rounded to two decimal places, is 12.95.
Universal Containers would like to remove data silos and connect their legacy CRM together with their ERP and with Salesforce. Most of their sales team has already migrated to Salesforce for daily use, although a few users are still on the old CRM until some functionality they require is completed. Which two techniques should be used for smooth interoperability now and in the future? (Choose 2 answers)
From the options the two techniques that should be used for smooth interoperability now and in the future are
a. Specify the legacy CRM as the system of record during transition until it is removed from operation and fully replaced by Salesforce.
b. Work with stakeholders to establish a Master Data Management plan for the system of record for specific objects, records, and fields.
Explanation:
Join the legacy CRM and Deal for interested parties are two techniques.
Indicate the conventional CRM as the record system throughout the transition up to Sales force’s removal and replacement.
Creates a comprehensive data management strategy for tracking processes for certain objects, databases, and areas, for stakeholders
What's a legacy process when it comes to CRM?
An old system mostly based on a customer-server in-house design. The application functions on a SQL Server or Oracle interface. There are one or more different application servers for Windows 2000 or 2003.
MDM (Master Data Management) is used in the sector as a tool for identifying and handling an organization's important data to provide, by data management, a single event of reference. The mastered data can include lookup tables — the collection of allowable values and quantitative data supporting decision-making.
Final answer:
The answer explains two techniques for achieving smooth interoperability between different systems.
Explanation:
Techniques for Smooth Interoperability:
Application Programming Interfaces (APIs): APIs can enable communication and data exchange between different systems, allowing Universal Containers to integrate Salesforce, the legacy CRM, and the ERP system seamlessly.
Middleware: Middleware software can act as a bridge between disparate systems, helping in the smooth flow of data and processes across the organization.
By utilizing APIs and Middleware, Universal Containers can achieve interoperability between Salesforce, the legacy CRM, and the ERP system, ensuring smooth data flow and connectivity.
Mullineaux Corporation has a target capital structure of 60 percent common stock, 15 percent preferred stock, and 25 percent debt. Its cost of equity is 10 percent, the cost of preferred stock is 4 percent, and the pretax cost of debt is 6 percent. The relevant tax rate is 35 percent. What is the company’s WACC?
Answer:
7.58%( Approximately).
Explanation:
Please see attachment
Sisters Corp. expects to earn $6 per share next year. The firm’s ROE is 15% and its plowback ratio is 60%. The firm’s market capitalization rate is 10%. a. Calculate the price with the constant dividend growth model. (Do not round intermediate calculations.)
Answer:
Stock price = $240.
Explanation:
Here,
Plowback ratio is the ratio which estimates the amount of money a company retains after paying the dividend to the stockholders.
To calculate the stock price, the plowback ratio is the growth rate for the firm.
Here, Expected earn, D1 = $6; ROE = 15% = 0.15; Plowback Ratio = 60% = 0.60; Market capitalization rate, K = 10% = 0.10.
We know,
Stock price = [tex]D_{1} / (K - g)[/tex]
Stock price = [tex]\frac{D_{1} (1 - plowback ratio)}{Market capitalization rate - (ROE * plowback ratio)}[/tex]
Stock price = [tex]\frac{6 (1 - 0.60)}{0.10 - (0.15*0.60)}[/tex]
Stock price = $2.4/0.01 = $240
Using the Gordon Growth Model with the provided earnings, ROE, plowback ratio, and market capitalization rate, the calculated stock price for Sisters Corp. is $240 per share.
Explanation:The question pertains to calculating the price of a company's stock using the constant dividend growth model, a concept in finance.
Firstly, we determine the growth rate of dividends which can be calculated as the product of the return on equity (ROE) and the plowback ratio. In this instance, the growth rate is 15% (ROE) multiplied by 60% (plowback ratio), giving us 9%.
Since Sister Corp. expects to earn $6 per share next year, we can use the Gordon Growth Model. According to this model, the price of a stock is the dividend per share divided by the market capitalization rate minus the growth rate, which is:
P = D / (k - g)
Where P is the price, D is the dividend per share, k is the market capitalization rate, and g is the growth rate.
As the firm plows back 60%, it will pay out 40% (100% - 60%) as dividends. The dividends per share thus would be $6 * 40% = $2.4.
Substituting the values into the equation:
P = $2.4 / (0.10 - 0.09)
P = $240
The price of the stock would be $240 per share using the constant dividend growth model.
Ace Company purchased a machine valued at $328,000 on August 1. The equipment has an estimated useful life of six years or 2.5 million units. The equipment is estimated to have a salvage value of $9,000. Assuming the straight-line method of depreciation, what is the amount of depreciation expense that needs to be recorded at the end of the first year?
A. $53,167
B. $22,778
C. $22,153
D. $56,167
E. $54,667
Answer:
A. $53,167
Explanation:
The computation of the depreciation expense under the straight-line method is shown below:
= (Original cost - residual value) ÷ (useful life)
= ($328,000 - $9,000) ÷ (6 years)
= ($319,000) ÷ (6 years)
= $53,167
In this method, the depreciation is same for all the remaining useful life.
The estimated useful life in units is used in units of production method. Hence, it is ignored here.
Why should a company tie its budget to the overall goals of the company?
Entry field with correct answer
There will never be any cost overruns.
It will ensure that the company will always reach its profit targets.
People will always receive their expected bonuses.
By doing so, people have clear guidance of the priorities and focus on them exclusively, while spending less time arguing about the details or insignificant items.
Answer:
By doing so, people have clear guidance of the priorities and focus on them exclusively, while spending less time arguing about the details or insignificant items.
Explanation:
There is a chain of achieving ultimate goals, in which goals are set for long run, and further are divided in some short term goals.
The short term goals are aligned with budgets and in this circle or chain of connections the budgets are ultimately synchronized with the goals of the company.
These provide for targeting the goals, set objectives and policies which are followed, and avoiding any discrepancies, as that could occur while achieving the goals.
Which statement describes the market interest rate?
a) It is the contractual interest rate used to determine the amount of cash interest paid by the borrower.
b) It is the rate stated on the bond certificate that determines the value at which bonds will sell.
c) It is listed in the bond indenture.
d) It is the rate investors demand for loaning funds.
Answer:
The correct answer is letter "D": It is the rate investors demand for loaning funds.
Explanation:
The market interest rate us the current interest offered on cash deposits which are determined by their supply and demand according to their duration, amount, and the type of security offered. The market interest rate is mostly used in bank deposits but it can also be implemented in some other type of assets such as corporate bonds.
The example of Dennis Bakke, CEO of AES, in which he and his team took responsibility for employees who lied to the EPA about water quality at the plant, suggests that for an ethical organization, it is necessary to do more than just take strong punitive action against those who act contrary to the company-established expected behavior.
A. True
B. False.
Answer:
B. False.
Explanation:
Whenever there is delegation of authority, and segregation of work there is involvement of various people in completing a job. The accountability of person increases. As it is not limited to the work done, but also of the monitoring the work of junior. This clearly impacts the involvement and importance of individuals in business.
Accordingly the company creates the ethical accountability also, at major level, and not only the individual but others are also responsible.
In the decision support system (DSS) environment, the _____ focuses on how a DSS is implemented and usually addresses questions about data storage, user access, response time, and security measures.
a. user
b. model builder
c. managerial designer
d. technical designer
Answer:
d. technical designer
Explanation:
In a decision support system, the technical designer is responsible for the implementation of the DSS and handle issues like data storage, file structuring, response time and security measures.
Model builders are responsible for providing specifications for the model.
Managerial designers are responsible for defining management issues and providing the requirements of what the model should do.
Users are not involved in the development or implementation of the DSS.
Therefore, the answer is d. technical designer
At the end of the year, the deferred tax asset account had a balance of $12.8 million attributable to a cumulative temporary difference of $32 million in a liability for estimated expenses. Taxable income is $38.0 million. No temporary differences existed at the beginning of the year, and the tax rate is 40%.Prepare the journal entry(s) to record income taxes assuming it is more likely than not that one-fourth of the deferred tax asset will not ultimately be realized.NOTE:These are the correct entries, I am just missing the values (DTA is NOT zero):Debit: Income Tax Expense ______Debit Deferred Tax Asset _____Credit: Income Tax Payable 15.2Debit: Income Tax Expense _______Credit: Valuation Allowance - Deferred Tax Asset _______
Answer:
Please see attachment.
Explanation:
Please see attachment.
"For Whitehair Company, beginning inventory is $12,000 and ending inventory is $15,000. Yearend account balances are: Freight-In $1,100 Purchases 50,000 Purchase Discounts 800 Purchase Returns and Allowances 1,250 Sales Discounts 2,500 Sales Returns and Allowances 3,600"Whitehair's Cost of Goods Purchased is $46,050. $49,050. $47,950. $51,100.
Answer:
$49,050
Explanation:
Given that,
beginning inventory = $12,000
ending inventory = $15,000
Freight-In = $1,100
Purchases = 50,000
Purchase Discounts = 800
Purchase Returns and Allowances = 1,250
Sales Discounts = 2,500
Sales Returns and Allowances = 3,600
Cost of goods purchased:
= purchases - purchase discounts - purchase returns & allowances + freight
= 50,000 - 800 - 1,250 + 1,100
= $49,050
Please answer the questions about cartels and the specific case of OPEC. Which statement is generally true of cartels? Cartels never stick to their agreed‑upon quotas. Cartels usually raise prices by expanding output. Cartels collude to raise prices and profits. In the United States, cartel members can legally meet to set prices. Which statement is true of OPEC? OPEC includes only nations from the Middle East. OPEC agreements are enforced by international law. OPEC sets production quotas in order to restrict supply. The United States is a leading member of OPEC.
Answer
The answer and procedures of the exercise are attached in the attached image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Final answer:
Cartels generally collude to restrict supply and raise prices, an action that is illegal for companies within the U.S. but practiced internationally by entities like OPEC. OPEC, which is not exclusively Middle Eastern, has maintained its cartel-like behavior through both economic and non-economic factors over decades.
Explanation:
When discussing cartels and their characteristics, it's generally true that cartels collude to raise prices and profits by agreeing upon quotas or output levels to restrict supply in the market. This collusion typically results in higher prices for consumers. For example, within the United States, it would be illegal for companies to sign contracts to act as a cartel to set prices, as collusion violates antitrust laws. In the international context, the Organization of Petroleum Exporting Countries (OPEC) is a notable example of a cartel-like entity that sets production quotas to control supply and thus influence global oil prices. However, the effectiveness of such international agreements is questionable because they are not legally enforceable under international law. This means if a member country like Nigeria decides to undermine the agreement by selling more oil at lower prices, other members like Saudi Arabia have no legal recourse to force compliance.
As for OPEC, it includes members from around the world, not only the Middle East, with countries like Venezuela, Nigeria, and Ecuador being part of this cooperative. Despite the challenges, OPEC has managed to exist for over four decades, due in part to economic as well as non-economic factors. These may include geopolitical influence, the need for cooperation amongst oil-rich countries, and perhaps a mutual understanding of the benefits that come from presenting a united front in the oil market.
The original marketing strategy of McDonald's in BrazilSelect one:a. promoted a beer with lunch.b. completely changed the menu to include Brazilian favorites.c. tried to Americanize Brazilian eating habits.d. took into consideration the Brazilian habit of eating hot foods, like hamburgers, on the beach.e. focused on the Sunday evening dinner market.
Answer:
c. tried to Americanize Brazilian eating habits
Explanation:
McDonald's is an American brand that popularize the eating burgers, that represents the american culture.
McDonald's has a culture of selling american and the country version of burgers where the outlet is located. But it do not sell the local dish in its food chain.
Accordingly in Brazil also the McDonald's was selling huge variety of burgers and was trying to create an American habit among the people of Brazil.
Thus, it was developing the eating habits of the people of Brazil in American way.
"Inverting the pyramid" refers to:
A. The type of groupthink that usually occurs when people are more concerned with pleasing organizational leaders than serving clients.
B. People's frustrated reaction when they feel they are not getting good service.
C. A type of servant leadership in which clients and front-line personnel are at the top of the organizational hierarchy.
D. All of the above.
Answer:
C. A type of servant leadership in which clients and front-line personnel are at the top of the organizational hierarchy.
Explanation:
Inverting the pyramid is a management theory in which employees are empowered and have freedom to make decisions. They do not have to rely on top-down management where decisions are only made at the top and then passed down.
This type of management gives high consideration to opinions of employees and also clients.
Answer:
C. A type of servant leadership in which clients and front-line personnel are at the top of the organizational hierarchy.
Explanation:
The inverted pyramid its a way of approaching a company's chart that places de CEO in the bottom of the hierarchy and the customers on top.
The most remarkable advantage about this type of organization is that the communication between member of the organizations is maximized and the team becomes flexible and responsive.
This employee oriented focus adds value to the customer's happiness with the company and importance to the customer-employee interaction.
Buffet Company was organized in January 2014 and has 1,000 shares of $200 par value, 10 percent, cumulative preferred stock outstanding and 3,000 shares of $1 par value common stock outstanding. Dividends declared and paid each year are $10,000 in 2014, $15,000 in 2015, and $75,000 in 2016. During 2016, the dividends that must be paid to the preferred and common stockholders, respectively, total _____.$35,000 and $40,000Other Types of and Reasons for Issuing Preferred Stock 01Nonparticipating preferred stockhas a feature that limits dividends to a maximum amount each year. After preferred stockholders receive this maximum amount, the common stockholders receiveany and all additional dividends.Participating preferred stockhas a feature allowing preferred stockholders to share with common stockholders in any dividends paid in excess of the percent or dollar amount stated on the preferred stock. This participation feature does not apply until common stockholders receive dividends equal to the preferred stock's dividend percent. Corporations rarely issue participating preferred stock.Convertible preferred stockgives holders the option to exchange their preferred shares for common shares at a specified rate.Callable preferred stockgives the issuing corporation the right to purchase (retire) this stock from its holders at specified future prices and dates. The amount paid to call and retire a preferred shareis its call price and is set when the stock is issued. The call price normally includes the stock's par value plus a premium giving holders additional return on their investment. When the issuing corporation calls and retires a preferred stock, the terms of the agreement often require it to pay the call price and any dividends in arrears.Other Types of and Reasons for Issuing Preferred Stock 02Corporations issue preferred stock for several reasons. One is to raise capital without sacrificing control. For example, suppose a company's organizers have $100,000 cash to invest and organize a corporation that needs $200,000 of capital to start. If they sell $200,000 worth of common stock (with $100,000 to the organizers), they would have only 50 percent control and need to negotiate extensively with other stockholders in making policy. However, if they issue $100,000 worth of common stock to themselves and sell outsiders $100,000 of 8 percent, cumulative preferred stock with no voting rights, they retain control.A second reason to issue preferred stock is to boost the return earned by common stockholders. Let's suppose the corporation's organizers expect to earn an annual after-tax income of $24,000. If
Answer:
$20,000 and 55,000
Explanation:
$20,000(preferred stock holders) and 55,000 (common stockholders).
working:
annual payment to preferred stock holders = 1,000 shares * $200 * 10% =>$20,000.
(note these are non cumulative , deficient dividends paid in previous years will not carry forward to current year, like in case of cumulative preferred stock).
remaining amount is the dividends to common stock holders in 2016:
=>$75,000 total dividends paid -$20,000 paid to preferred stock holders.
=>$55,000.
Tami Strand’s regular hourly wage rate is $10, and she receives an hourly rate of $20 for work in excess of 40 hours. During a January pay period, Tami works 50 hours. Tami’s federal income tax withholding is $88, and she has no voluntary deductions. Assume that the FICA tax rate is 7.65%. Prepare a tabular summary for Tami’s employer to record (a) Tami’s pay for the period and (b) the payment of Tami’s wages. Use January 15 for the end of the pay period and the payment date. (Round answers to 2 decimal places, e.g. 15.25. If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)
Answer:
wages expense 600.00 debit
wages income tax payable 88.00 credit
FICA tax payable 45.90 credit
wages payable 466.10 credit
--to record accrued wages for Tami Strand's--
wages payable 466.10 debit
cash 466.10 credit
--to record payment to Tami Strand's--
Explanation:
Tami wages for the week:
40 hours x $10 rate = 400 dollars
10 hours x $20 rate = 200 dollars
total wages for the week 600 dollars
FICA tax: 600 x 7.65% = 45.9
gross pay 600.00 dollars
income tax witholding 88.00 dollars
FICA tax 45.90 dollars
net pay: 466.10 dollars
Yakov orders 40 cases of mescal from a Mexican distributor at a price of $90 per case. 2. A U.S. company sells 200 spark plugs to a Korean company at $5.00 per spark plug. 3. Charles, a U.S. citizen, pays $1,500 for a laptop he orders from Microell (a U.S. company).Complete the following table by indicating how the combined effects of these transactions will be reflected in the U.S. national accounts for the current year.Hint: Be sure to enter a "0" if none of the transactions listed are included in a given category and to enter a minus sign when the balance is negative. Amount (Dollars)Consumption Investment Government Purchases Imports Exports Net Exports Gross Domestic Product (GDP)
Answer:
Please see attachment
Explanation:
Please see attachment
Here is the completed table:
Amount (in dollars)
Consumption $5,100.00
Investment 0
Government spending 0
Export $1,000
Import $-3,600
Net export $-2,600
GDP $2500
What is the value of GDP?
Gross domestic product is the sum of final goods and services produced in an economy in a given period.
GDP calculated using the expenditure approach = Consumption spending by households on durable and non durable goods + Investment spending + Government spending + Net export
Net export = exports – imports
Consumption spending = $1500 + ($90 x 40) = $5,100Export = (200 x $5) = $1,000Import = ($90 x 40) = $-3,600 Net export = $-3600 + $1000 = $-2,600GDP = $5100 - 2600 = $2,500To learn more about GDP, please check: https://brainly.com/question/15225458
Supply Club, Inc., sells a variety of paper products, office supplies, and other products used by businesses and individual consumers. During July 2018 it started a loyalty program through which qualifying customers can accumulate points and redeem those points for discounts on future purchases. Redemption of a loyalty point reduces the price of one dollar of future purchases by 20% (equal to 20 cents). Customers do not earn additional loyalty points for purchases on which loyalty points are redeemed. Based on past experience, Supply Club estimates a 60% probability that any point issued will be redeemed for the discount. During July 2018, the company records $216,000 of revenue and awards 200,000 loyalty points. The aggregate stand-alone selling price of the purchased products is $216,000. Eighty percent of sales were cash sales, and the remainder were credit sales.
Required:
1. Prepare Supply Club’s journal entry to record July and August sales.
2. During August, customers redeem loyalty points on $96,000 of merchandise. Seventy-five percent of those sales were for cash, and the remainder were credit sales. Prepare Supply Club’s journal entry to record those sales. (Do not round intermediate calculations. If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.)
The answer provides detailed journal entries for recording July and August sales, including cash and credit sales as well as loyalty points redemption.
Journal Entry for July and August Sales:
Cash Sales: Debit Accounts Receivable $173,000, Debit Sales Revenue $173,000, Credit Loyalty Points $13,000, Credit Sales Revenue $160,000.
Credit Sales: Debit Accounts Receivable $43,000, Debit Sales Revenue $43,000, Credit Loyalty Points $3,000, Credit Sales Revenue $40,000.
Journal Entry for Loyalty Points Redemption in August:
Cash Sales: Debit Loyalty Points $19,200, Credit Sales Revenue $16,000, Credit Discounts on Sales $3,200.
Credit Sales: Debit Accounts Receivable $4,800, Debit Discounts on Sales $960, Credit Sales Revenue $5,760.
Lisa Laskowski Company reports the following information at the fiscal year end of December 31, 2017:Common Stock, $0.10 par value per share $88 millionPaid-in Capital in Excess of Par Common $500 millionRetained Earnings $700 millionTotal Stockholders' Equity $1,288 millionWhat was the average selling price for the common stock issued? (Round your final answer to the nearest cent.)A. $0.57 per share.B.$0.80 per share.C.$0.10 per share.D. $0.67 per share.
Answer:
Aveerage selling of common stock is $0.67 per share
Explanation:
GIVEN DATA:
Common stock - par value is $0.10/ share
Retained earning is $700 million
common stock $88 million
paid in capital = $500
sum of stock holder equity $1288 million
Total capital paid is = (88 + 500) million = $588 million
therefore
Average selling price is[tex]= \frac{588}{880} = $0.67[/tex]per share
where [tex][ \frac{88}{0.1} = 880][/tex]
So, Aveerage selling of common stock is $0.67 per share
Kieso Company borrowed $760,000 for six months. The annual interest rate on the loan was 9%. Kieso's fiscal year ends on December 31. Kieso borrowed the $760,000 one month prior to the start of its current fiscal year and paid back the $760,000 plus interest five months into its current fiscal year. In regards to this loan, how much interest expense, if any, would Kieso report at the end of its last fiscal year? At the end of its current fiscal year?
Answer:
1.The interest expense Kieso reported at the end of its last fiscal year: $5,700
2. The interest expense Kieso reported at the end of its curent fiscal year: $28,500
Explanation:
The interest amount Kieso Company had to pay for the loan:
($760,000 x 9%)/12 x 6 = $34,200
In Kieso's fiscal year ends on December 31, the company had borrowed the $760,000 for one month. Following the Accrual basis, Kieso would report at the end of its last fiscal year the interest expense for 1 month:
$34,200/6 = $5,700
At the end of its current fiscal year, the company would report the interest expense for remainder months (5 months):
$34,200/6 x 5 = $28,500
Campbell Corporation uses the retail method to value its inventory. The following information is available for the year 2021: Cost Retail Merchandise inventory, January 1, 2021 $ 220,000 $ 283,000 Purchases 588,000 864,000 Freight-in 11,000 Net markups 23,000 Net markdowns 4,300 Net sales 830,000 Required: Determine the December 31, 2021, inventory by applying the conventional retail method using the information provided.
Answer:
$335,700; $234,990
Explanation:
Under cost:
Goods available for sale:
= Beginning inventory + Purchases + Freight in + Net mark ups - Net markdowns
= 220,000 + 588,000 + 11,000 + 0 - 0
= $819,000
Under Retail:
Goods available for sale:
= Beginning inventory + Purchases + Freight in + Net markups - Net markdowns
= 283,000 + 864,000 + 0 + 23,000 - 4,300
= $1,165,700
Cost to retail ratio = $819,000 ÷ (283,000 + 864,000 + 0 + 23,000)
= $819,000 ÷ $1,170,700
= 0.7
Estimated ending inventory at retail:
= Goods available for sale(Retail) - Net sales
= $1,165,700 - $830,000
= $335,700
Estimated ending inventory at cost:
= Estimated ending inventory at retail × Cost to retail ratio
= $335,700 × 0.7
= $234,990
To determine the December 31, 2021, inventory using the conventional retail method, calculate the cost of goods available for sale and the retail value of goods available for sale. Then, use the cost-to-retail ratio to determine the ending inventory.
Explanation:To determine the December 31, 2021, inventory using the conventional retail method, we need to calculate the cost-to-retail ratio. The cost-to-retail ratio is calculated by dividing the cost of goods available for sale by the retail value of goods available for sale. In this case, the cost of goods available for sale is the sum of the beginning inventory and purchases, and the retail value of goods available for sale is the sum of the beginning retail value and net markups. Once we have the cost-to-retail ratio, we can determine the ending inventory by multiplying it by the retail value of goods available for sale.
Step 1: Calculate the cost of goods available for sale:
$220,000 (beginning inventory) + $588,000 (purchases) = $808,000
Step 2: Calculate the retail value of goods available for sale:
$283,000 (beginning retail value) + $23,000 (net markups) = $306,000
Step 3: Calculate the cost-to-retail ratio:
$808,000 (cost of goods available for sale) / $306,000 (retail value of goods available for sale) = 2.6431 (rounded to four decimal places)
Step 4: Calculate the ending inventory:
$830,000 (net sales) * 2.6431 (cost-to-retail ratio) = $2,190,933 (rounded to the nearest dollar)
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BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $118,500 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 2.9% of the first $7,000 paid to its employee.Gross Pay through August Gross Pay for Septembera. $5,300 $2,600b. 19,000 2,900c. 113,000 8,800
Assuming situation a, prepare the employer's September 30 journal entries to record salary expense and its related payroll liabilities for this employee.
The employee's federal income taxes withheld by the employer are $70 for this pay period. (Round your answers to 2 decimal places.)
Answer:
Taxes to be Withheld From Gross Pay (Employee-Paid Taxes)= @141.2
Explanation:
Taxes to be Withheld From Gross Pay (Employee-Paid Taxes)
September Earnings Subject to Tax
Federal income tax @$70
FICA—Social Security = 800 (@tax rate= 6.20%)= $49.6
FICA—Medicare :800(@tax rate=1.45%)= $11.6
Total taxes withheld : 141.2
Taxes to be Withheld From Gross Pay (Employee-Paid Taxes)= @141.2
In scenario A of BMX Company, the FICA Social Security tax for September is $161.2, FICA Medicare tax is $37.7, and federal income tax is $70, totaling liabilities of $269.9. Since the gross pay through August exceeded $7,000, there will be no FUTA and SUTA tax for September. The company's journal entry would record these amounts as salary expense and related payroll liabilities.
Explanation:To calculate the payroll liabilities, first, let's calculate the September contribution of each tax:
FICA Social Security tax is 6.2% of September's gross pay up to the $118,500 limit. In this case, it would be 6.2% of $2,600 which equals $161.20. FICA Medicare tax is 1.45% of September's gross pay. In this case, it would be 1.45% of $2,600 which equals $37.70.FUTA tax is 0.6% of gross pay up to the first $7,000. The gross pay from January through August has exceeded $7,000 so there will be no FUTA tax for September.SUTA tax is 2.9% of gross pay up to the first $7,000. Again, as the employee has already exceeded this limit, there will be no SUTA tax for September.
Adding these amounts to the federal tax withheld gives a total liabilities of $269.9 (70 + 161.2 + 37.7).
The journal entries as of September 30 will be:
Debit Salary Expense $2,600Credit Social Security Tax Payable $161.20Credit Medicare Tax Payable $37.70Credit Federal Income Tax Payable $70Credit Salaries Payable $2331.1 Learn more about Payroll Liabilities here:https://brainly.com/question/32139674
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You recently were hired as a front line debt collection agent for a debt collection service in Michigan. Your boss assigns you to a fairly new client. That client shares with you several items: account ledgers showing overdue balances, checks that "bounced" or were returned for insufficient funds, and a list of dates of purchases. Most of the purchases were made more than 6 years ago. Michigan has a six year statute of limitations for the collection of debt, meaning that after six years, one cannot successfully bring a lawsuit to recover old debt. You talk to your boss who instructs you to go ahead and contact the debtors with the standard letter that offers to settle the outstanding debt for 75% of the amount owed. The letter also indicated that failure to either accept the settlement offer within 20 days, or pay off the full amount after day 20 but before day 45, would result in the filing of a lawsuit to collect the debt. As a new collection agent, you know that the Fair Debt Collection Practices Act governs behavior in the industry. Explain why this requested behavior may violate the act.
The requested behaviour may violate the act because the Act forbids debt collectors from using unfair or abusive methods to collect debts. The request of this debt collection agency is unjust because Michigan has a six-year statute of limitations on debt collection.
What is the debt collection?Debt collection is a regulated activity that occurs when a creditor hires an outside company to recover past-due payments.
The given requested behaviour of asking the client to “either accept the settlement offer within 20 days, or pay off the full amount after day 20 but before day 45, failing to do so will result in the filing of a lawsuit to collect the debt” violates the Fair Debt Collection Practices Act.
This happened because the Act prohibits debt collectors from using unfair or abusive language to collect the debt.
Therefore, The debt collection agency's request is unjust because Michigan has a six-year statute of limitations on debt collection.
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The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 10 and the daily production rate is 100. What is the number of production runs for this problem?
Answer:
Number of production runs will be 184
Explanation:
We have given setup cost K = $50
Demand = 3650 units
Holding cost h = $12 per unit per year
Daily demand rate = 10
And daily production rate = 100
So [tex]x=\frac{10}{100}=0.1[/tex]
We know that production order quantity is given as\
[tex]=\sqrt{\frac{2KD}{h}\times (1-x)}=\sqrt{\frac{2\times 50\times 3650}{12}\times (1-0.1)}=184[/tex]
So the number of production runs will be 184
The production order quantity model indicates the company should produce approximately 374 units per run. To accommodate the annual demand, this will require about 10 production runs.
Explanation:The production order quantity model is used to determine the most cost-effective quantity of units to produce. In this case, the student is asking about the number of production runs, given a specific scenario. First, we need to calculate the Economic Production Quantity (EPQ). The formula for EPQ is: sqrt( (2 × D × S) / H ) × sqrt( (p / (p - d)) ), where D is the annual demand, S is the setup cost, H is the holding cost per unit per year, p is the production rate, and d is the demand rate.
So, substitute the given values into the EPQ formula: sqrt( (2 ×3650 × 50) / 12 ) ×sqrt( (100 / (100 - 10)) ) = 374.17 units. This means the optimal quantity to produce per run is approximately 374 units.
To find the number of production runs, divide the annual demand by the EPQ. So, 3650 / 374.17 = 9.75. Round this up to the nearest whole number, 10. So, the company should have about 10 production runs in a year to meet the annual demand in the most cost-effective way.
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At Nick's Bakery, the cost to make homemade chocolate cake is $3 per cake. As a result of selling three cakes, Nick experiences a producer surplus in the amount of $19.50. Nick must be selling his cakes for
a. $6.50 each.
b. $7.50 each.
c. $9.50 each.
d. $10.50 each.
Answer:
c. $9.50 each.
Explanation:
For computing the selling price, first we have to compute the total price of three cakes which is shown below:
The sale value of three cakes would be
= $3 per cake × 3 cakes
= $9
And, the producer surplus is $19.50
So, the total price of cake equals to
= $9 + $19.50
= $28.50
And, the number of cake is 3
So, the selling price would be
= $28.50 ÷ 3 cakes
= $9.50 each
Final answer:
Nick is selling his homemade chocolate cakes for $9.50 each to experience a producer surplus of $19.50 from selling three cakes. The calculation is based on the difference between the selling price and the production cost, multiplied by the quantity sold. The correct answer is option c.
Explanation:
To calculate the price at which Nick is selling his chocolate cakes, we need to understand the concept of producer surplus. Producer surplus is the difference between what producers are willing to accept for a good versus what they actually receive. Given that the cost to make one cake is $3 and Nick's total producer surplus from selling three cakes is $19.50, let's calculate the selling price per cake.
Since producer surplus is the difference between the selling price and the production cost, multiplied by the quantity sold, we can use the formula:
Producer Surplus = (Selling Price - Cost to Produce) × Quantity Sold
Putting the known values into this formula, we get:
$19.50 = (Selling Price - $3) × 3
Now, we solve for the Selling Price:
$19.50 = 3 × (Selling Price - $3)
$19.50 = 3 × Selling Price - $9
3 × Selling Price = $19.50 + $9
3 × Selling Price = $28.50
Selling Price = $28.50 / 3
Selling Price = $9.50
Nick must be selling his cakes for $9.50 each to experience a producer surplus of $19.50 from selling three cakes, which corresponds to answer choice c.
Elston Company issued $500,000 of eight percent, 20-year bonds at 106 on January 1, 2010. Interest is payable semiannually on July 1 and January 1. Through January 1, 2016, Elston amortized $5,000 of the bond premium. On January 1, 2016, Elston retired the bonds at 103 (after making the interest payment on that date). Prepare the journal entry to record the bond retirement on January 1, 2016.
Answer:
Please see attachment
Explanation:
Please see attachment
Cash flow does not rely on which of the following? Multiple Choice The efficiency of the banking system. The speed at which suppliers and creditors process checks. The payment arrangements of customers. The monetary policy of the Federal Reserve.
Answer:
A
Explanation:
The efficiency of the banking system is not a determinant of cash flows. However, the speed at which customers process checks can lead to either delay or accelleration of receipts and payments thus affecting cash flows. The payment arrangment of customers can impact on cash flows as a longer debtors collection period will lead to decrease in cash inflows and vice versa. Monetary policy can affect cash flows as the tools for monetary policies can affect the cash supply in the economy thereby affecting cash flows either positively or negatively.
Cash flow does not rely on the monetary policy of the Federal Reserve. Option (d) is correct.
The net amount of cash and cash equivalents coming into and going out of a business is referred to as cash flow. Money spent and money received reflect inflows and outflows, respectively.
Fundamentally, a company's capacity to produce positive cash flows—or, more specifically, to maximize long-term free cash flow (FCF)—determines its potential to add value for shareholders. FCF is the cash a company generates from its regular business activities after deducting any funds used for capital expenditures.
Therefore, Option (d) is correct.
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