Asonia Co. will pay a dividend of $3.90, $8.05, $10.90, and $12.65 per share for each of the next four years, respectively. The company will then close its doors. If investors require a return of 11 percent on the company's stock, what is the stock price

Answer:

d. rocking chairs will be overcosted.

Explanation:

Since in the given situation, if the company automates the production of straight-back chairs so the direct hours of straight back chairs will be decreased and the rocking chairs would remain constant and we assume that overall overhead remain the same

In addition, Overall Direct working hours would minimize the proportion of Direct rocking chair working hours in total direct working hours. As a result, the overhead allocation to the Rocking chair would also increase on the basis of Direct Labor hours than before. And it would overcoat the rocking chairs.

Hence, the correct option is d.

Automating the production of straight-back chairs at Wood Company and continuing to use direct labor hours as a companywide allocation basis will result in the overcosting of rocking chairs. The correct option is d.

If the Wood Company automates the production of straight-back chairs and continues to use direct labor hours as a companywide allocation basis, the most likely impact would be to overcost the rocking chairs.

This is so because by automating the production of straight-back chairs, the direct labor hours for these chairs will decrease drastically, whereas the direct labor hours for the handmade rocking chairs remain the same.

As a result, a larger portion of the overheads based on direct labor hours will be assigned to the rocking chairs, making them appear more costly than they actually are. Hence, option 'd. rocking chairs will be overcosted' is the correct one. The correct option is d.

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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.

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Answer:

Strategic management can be defined as the correct management of the resources of a certain organization, whose objective is to achieve the proposed goals. This means having very clear business objectives, analyzing the competition, internally analyzing the internal organization, having clear strategies and having them carried out by the administration in the business organization.

In order to achieve the established objectives, certain aspects must be taken into account, such as the business culture, the skills of all employees and the organizational structure of the company. Companies that do not conform to these characteristics may have some difficulties and problems to achieve business success.

Lower-level managers or employees can have a significant influence in establishing and implementing business strategies, although in the end, top management is responsible for applying business strategies.

Organizational leaders need to be responsible for learning from past strategies and examining their business environment, in search of other strategies. Excellent strategic management is paramount to have an overall perspective, both internal and external.

Explanation:

Strategic management is essential for organizational success, encompassing planning, execution, and monitoring of strategies to meet goals and missions. It ensures financial and management stability, fosters strategic thinking, and enhances the ability to handle pressure and challenges in the business environment.

Strategic management is a comprehensive approach to planning, implementing, monitoring, and analyzing an organization's strategies to achieve its goals and fulfill its mission. It serves as a fundament for decision-making processes, directing organizations towards sustainable growth and competitive advantage.

The importance of strategic management lies in its capacity to guide companies through a constantly changing business environment. By analyzing the organization's overall financial position and comparing it to peer organizations, strategic management provides insights into how operations and policies can be adjusted to strengthen financial positions and manage liabilities effectively.

Moreover, strategic management emphasizes the importance of keeping management issues in perspective. It provides strategies to prevent or remedy problems, ensuring that management challenges do not derail the organization's objectives. The integration of management and organization, along with a detailed financial plan, further illustrates how strategic decisions underpin the structural and financial stability of a company.

In conclusion, strategic management is critical to the success of any organization as it encompasses planning, executing, and monitoring strategies essential for meeting goals and fulfilling the mission. This structured approach not only addresses financial and managerial aspects but also emphasizes strategic thinking and the ability to work under pressure, making it indispensable for surviving and thriving in today's complex business world.

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:

The answer is $A. $900 U.

Explanation:

We have the: Total overhead variance = Overhead applied - Actual overhead in which:

+ Overhead applied = Standard hours x Overhead application rate = 3,000 x 8 = $24,000;

+ Actual overhead = Variable overhead + fixed overhead = 15,800 + 9,100 = $24,900

=> Total overhead variance = Overhead applied - Actual overhead = 24,000 - 24,900 = 900 Unfavorable as the actual overhead is bigger than the overhead applied ( planned cost is lower than actual cost incurred).

So, the answer is A.

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:

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:

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 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:

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:

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:

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

THE RETURN ON INVESTMENT FOR GERRY WILL BE

Explanation:

TO CALCULATE RETURN ON INVESTMENT :

PURCHASE VALUE WILL BE TAKEN AS $30×100= 3000

DIVIDEND =$0.30×100

                = $30

INTEREST PAID = $ 45

SALE PRICE = $34*100

                    = $3400

TOTALRETURN WILL BE CALCULATED AS SALES MINUS PURCHASE AND ADDING DIVIDEND AND SUBTRACTING INTEREST PAID WHICH IS = $3400-$3000+$30-$45= $385

NOW WE WILL CALCULATE CAPITAL INVESTMENT WHICH IS =[tex]\frac{TOTAL RETURN}{CAPITAL INVESTMENT}[/tex] = [tex]\frac{385}{2100}[/tex] × 100=18.33%

OUR ACTUAL CAPITAL INVESTMENT IS 70%×3000 = $2100.

The percentage return is 18.33%.

Amount invested is

= 30 × 100 × 70%

= $2,100  

Now

Total return is

= (100 × 0.3) + 100 × (34 - 30) - 45

= 385

Now finally

Return on invested capital is

= 385 ÷ 2100

= 18.33%

Therefore we can conclude that the  percentage return is 18.33%.

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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 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).

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Answer:

A. $297,950

B. $275,000

C. $22,950

D. $1,517,750

E. $1,500,000

F.$26,150

G. $1,517,750

H. $1,500,000

I. $17,750

J. $6,925,550

K. $6,920,000

L. $17,750

Explanation:

The completed budget of Garland has been well scripted and attached for your review.

Answer:

Break-even point (units)=40,000 units

Explanation:

Giving the following information:

Frames have a contribution margin per unit of $6.00 and hanger has a contribution margin per unit of $11.00. Wall-E has annual fixed costs of $290,000 units.

We need to calculate the break-even point in units for the whole company.

Break-even point (units)= Total fixed costs / Weighted average contribution margin ratio

Weighted average contribution margin ratio= (6*0.75) + (11*0.25)

Weighted average contribution margin ratio= 7.25

Break-even point (units)= 290,000/7.25

Break-even point (units)=40,000 units

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:

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:

$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.

Answer:

0.1609 and 0.8391

Explanation:

The computation of the weight required to compute the  firm's weighted average cost of​ capital is shown below:

For Weight of debt

= (Short-term debt + Long-term debt) ÷ (Total Capital )

= ($2,600 + $4,246) ÷ ($42,557)

= 0.1609

For weight of equity

= Common Equity ÷ Total Capital

= $35,711 ÷ $42,557

= 0.8391

We simply divide the debt with its total capital so that the weight of capital structure could arrive

Answer:

May 1, 2020

Dr Cash $477,360

Cr Bonds Payable $468,000

Cr Interest Expense $9,360

July 1, 2020

Dr Interest Expense $14,040

Cr Cash $14,040

Dec 31, 2020

Dr Interest Expense $14,040

Cr Interest Payable $14,040

Explanation:

May 1, 2020

Dr Cash $477,360

Cr Bonds Payable $468,000

Cr Interest Expense $9,360

(Accrued Interest = 468,000 x 6% x 4/12)

July 1, 2020

Dr Interest Expense $14,040

Cr Cash $14,040

(Bond interest expense = $468,000 x 6% x 6/12)

Dec 31, 2020

Dr Interest Expense $14,040

Cr Interest Payable $14,040

Answer:

Rapid elasticity.

Explanation:

Cloud computing is defined as an on demand available computer service, that focuses on data storage.and computing. It is not managed by the user.

Rapid elasticity is the ability to scale the services being used by an entity in cloud computing. There is ability to scale up or scale down on cloud service usage.

In this instance there was a scaling up when you added five new user accounts to your CRM (customer relationship management) software subscription, a service that is hosted in the cloud.

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:

C. The coupon rate on these bonds would have been higher if Standard and Poor's, Moody's, and Fitch had assigned lower credit ratings

Explanation:

Assume that in January 2017, Vivendi announced a €1.2 billion bond issuance. The bonds have a coupon rate of 6.75% payable semiannually. Assume the bonds have been assigned credit ratings of BBB (stable outlook) by Standard and Poor's, Baa2 (stable outlook) by Moody's, and BBB (stable outlook) by Fitch.

Which of the following is not true? The coupon rate on these bonds would have been higher if Standard and Poor's, Moody's, and Fitch had assigned lower credit ratings.

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:

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Answer:

$7,300 loss

Explanation:

The computation of the net foreign exchange gain or loss included in the income statement is shown below:

Since the merchandise purchased value is $62,900

And, the paid amount is $53,200

So, the gain on transaction is

= $62,900 - $53,200

= $9,700

The borrowed amount is $305,000

And, the principal amount is $322,000

So, the loss is

= $305,000 - $322,000

= $17,000 loss

So in this case $7,300 loss is included which is a difference of $9,700 and $17,000

Answer:

Given data in the problem statement is

SST=6724.125

incremental in x1=0.5906

Incremental in x2=0.498

no of observations=10

This is the model of clustering in unsupervised machine learning as model will interpret this model as true or false only.

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

Answer:

The answer is attached;

Explanation: