Answer:
The budgeted $ amount is $13,680.88
Explanation:
The purchasing power parity formula gives us an idea what an exchange spot rate would be in future period using the below formula:
Future spot rate=current spot rate*(1+US inflation)/(1+French inflation)
current spot rate=$1.3620
US inflation rate is 2.50%
French inflation is 3.50%
Future spot rate=$1.3620*(1+2.5%)/(1+3.5%)
future spot rate=$1.3488
The weekly cost of vacation would also be adjusted for inflation rate in France as follows:
Adjusted price=9800*(1+3.5%)=10143
Hence the cost of the one week rental would be 10143 multiplied by the future spot exchange rate of 1.3488 i.e $ 13,680.88 (10143*1.3488)
The following transactions were completed by the company.
a. The company completed consulting work for a client and immediately collected $6,000 cash earned.
b. The company completed commission work for a client and sent a bill for $4,500 to be received within 30 days.
c. The company paid an assistant $1,650 cash as wages for the period.
d. The company collected $2,250 cash as a partial payment for the amount owed by the client in transaction b.
e. The company paid $800 cash for this period's cleaning services.
Prepare the impact of each transaction on individual items of accounting equation.
Answer:
a.
Assets : Increase by $6,000
Liabilities : No effect
Equity : Increase by $6,000
b.
Assets : Increase by $4,500
Liabilities : No effect
Equity: Increase by $4,500
c.
Assets : Decrease $1,650
Liabilities : No effect
Equity : Decrease $1,650
d.
Assets : Increase $2,250, Decrease $2,250
Liabilities ; No effect
Equity: No effect
e.
Assets : Decrease $800
Liabilities : No effect
Equity : Decrease $800
Explanation:
a.
Recognize Revenue and Assets of Cash
b.
Recognize Revenue and Assets in Trade Receivable
c.
Recognize an expense and de-recognize the Assets of Cash
d.
Recognize Assets in Cash and de-recognize Assets in Accounts Receivables.
e.
Recognize an Expense and de-recognise the Assets in Cash
Fast Auditors prepared audited financial statements for Mega Company's registration statement in compliance with the 1933 Securities Act. John bought stock in Mega Company. It was discovered that the financial statements prepared for the registration statement contained some important omissions. John sued Fast Auditors to recover his investment when Mega Company turned out to be a bad investment. What must John prove to recover from Fast Auditors
Answer:
As per the Securities Act of 1933, John must prove only that the registration statement contained some important omissions
Explanation:
The Securities Act of 1933 also known as the "Truth in Securities" law. This law requires that companies have to submit information to the investors about the securities being offered for public sale.
It was the first major federal securities law passed.
President Roosevelt stated that the law was aimed at correcting some of the wrongdoings included insider trading, the sale of fraudulent securities, and other wrongdoings that some financial institutions and professional stock traders engaged in.
In the given question,
John must prove only that the registration statement contained some important omissions as per the Securities Act of 1933
Suppose there are 1.000 identical firms producing diamonds. Let the total cost function for each firm be given by C(q, w) = q2 + wq, where q is the firm's output level and w Ls the wage rate of diamond cutters. If w = 10, what will be the firm's (short-run) supply curve? What is the industry's supply curve? How many diamonds will be produced at a price of $20 each? How many more diamonds would be produced at a price of $21? Suppose the wage of diamond cutters depend on the total quantity of diamonds produced. and suppose the form of this relationship is given by w = 0.002Q where Q represents total industry output, which is 1,000 times the output of the typical firm. In this situation, show that the firm's marginal cost (and short-run supply) curve depend on Q. What is the industry supply curve (in the long-run)? How much will be produced at a price of $20? How much more will be produced at a price of $21? What do you conclude about he shape of the short-run supply curve?
Answer:
For the price of $20 = $3,333.33
For the price of $21 = $3,500
Kindly go through the explanation for the other answers required.
Explanation:
(a)
C = q2 +wq = q2 + 10q
Firm's short run supply curve is its marginal cost (MC) schedule.
MC = dC / dq = 2q + 10
So, supply curve is: p = 2q + 10
Or,
q = (p - 10) / 2 = 0.5p - 5
Total industry supply, Q = 1,000 x q = 500p - 5,000
p = (Q + 5,000) / 500 [Industry supply curve]
When p = 20, Q = 500 x 20 - 5,000 = 5,000 [Number of diamonds supplied]
When p = 21, Q = 500 x 21 - 5,000 = 5,500
So, when P = 21, 500 more diamonds will be supplied.
(b)
(i)
If w = 0.002Q then
w = 0.002 x (1000q) [Since Q = 1000q]
w = 2q
C = q2 +wq = q2 + (2q)q = 3q2
So, MC = dC / dq = 6q
MC = 6 x (Q / 1000)
So, MC depends on Q.
(ii)
Long run supply schedule is when price = MC
p = 6q = 6 x (Q / 1000)
p = 3Q / 500 [Long run industry supply schedule]
(iii) When p = 20, Q = p x (500/3) = 20 x 500 / 3 = 3,333.33
(iv) When p = 21, Q = p x (500 / 3) = 21 x 500 / 3 = 3,500
(v) Short run supply curve is the positive part of MC.
p = 6q
Therefore, the SR supply curve is a straight line from origin, sloping upwards.
Final answer:
Explanation of short-run and long-run supply curves in Economics.
Explanation:
(a)
C = q2 +wq = q2 + 10q
Firm's short run supply curve is its marginal cost (MC) schedule.
MC = dC / dq = 2q + 10
So, supply curve is: p = 2q + 10
Or
q = (p - 10) / 2 = 0.5p - 5
Total industry supply, Q = 1,000 x q = 500p - 5,000
p = (Q + 5,000) / 500 [Industry supply curve]
When p = 20, Q = 500 x 20 - 5,000 = 5,000 [Number of diamonds supplied]
When p = 21, Q = 500 x 21 - 5,000 = 5,500
So, when P = 21, 500 more diamonds will be supplied.
(b)
(i)
If w = 0.002Q then
w = 0.002 x (1000q) [Since Q = 1000q]
w = 2q
C = q2 +wq = q2 + (2q)q = 3q2
So, MC = dC / dq = 6q
MC = 6 x (Q / 1000)
So, MC depends on Q.
(ii)
Long run supply schedule is when price = MC
p = 6q = 6 x (Q / 1000)
p = 3Q / 500 [Long run industry supply schedule]
(iii) When p = 20, Q = p x (500/3) = 20 x 500 / 3 = 3,333.33
(iv) When p = 21, Q = p x (500 / 3) = 21 x 500 / 3 = 3,500
(v) Short run supply curve is the positive part of MC.
p = 6q
Therefore, the SR supply curve is a straight line from origin, sloping upwards
An advertisement for the Honda Civic Hybrid featured gas mileage in the subheading (49 city/51 highway). The copy also noted that owners of this automobile may be eligible for a clean-fuel tax deduction. At the time this ad appeared, gas was more than $3.00 per gallon, which made the information important to consumers. This is an example of which type of appeal
Answer:
Utilitarian appeal
Explanation:
Utilitarian appeal: The term "utilitarian appeal" is described as one of the rhetorical or psychological strategies that are responsible for emphasizing or signifying the benefits associated with some of the services or products related or connected to its "practical functionality". However, the utilitarian appeal is considered as a "rational appeal" instead of an "emotional appeal".
In the question above, the given statement represents "utilitarian appeal".
Suppose that your colleague has accidentally spilled coffee on his laptop and the file containing your firm\'s cost data has been damaged. Use your knowledge of cost functions to save the day (and your friend\'s job) by determining the missing cost data. (Source Sapling Learning) Cost Schedule Output Marginal Cost Total Fixed Cost Total Variable Cost Total Cost Average Fixed Cost Average Variable Cost Average Total Cost 0 ----- ------- ----- ---- 1 $50 2 $74 3 $105 4 $50 $360 The total cost when producing zero units of output is $___________.Please only input the numerical answer without the $ sign. If your answer is $400 please input 400.
Final answer:
The total cost at zero production is the fixed costs. Referring to the example of The Clip Joint barber shop, where fixed costs are $160 per day, we infer that this would be the total cost at zero production for any business in a similar scenario.
Explanation:
The total cost when producing zero units of output is essentially the fixed costs, since there are no variable costs incurred at that level of production. Drawing from the provided example of The Clip Joint barber shop, we understand that fixed costs are the costs that do not change, regardless of the level of production. Hence, at zero production, the total cost would be equal to the fixed costs alone.
According to the details given in the scenario with the barber shop, where the fixed costs amount to $160 per day, we can determine that this is also the case for the laptop spill scenario. The fixed costs represent the vertical intercept of the total cost curve, which is the cost incurred when output is zero.
Therefore, even though the file with cost data has been damaged, using the knowledge of cost functions and the example of The Clip Joint, the fixed costs can be extracted.
Which of the following is included in the U.S. financial account? transactions involving trade between nations. interest payments for overseas stock purchases. net transfer payments. foreign aid payments. foreign stock purchases by Americans.
Answer:
The correct answer is letter "D": foreign stock purchases by Americans.
Explanation:
The U.S. financial account is part of the Balance of Payments of the country that reflects the domestic assets owned by foreigners and the foreign assets owned by Americans. In case the U.S. financial account increases, it means there are more foreigners owning assets locally than Americans owning assets abroad. If the account decreases, there are more Americans owning assets abroad than foreigners owning assets in the U.S.
Therefore, foreign stock purchases by Americans will be included in the U.S. financial account.
In a limited partnership, who is automatically authorized to borrow money
Answer:
Easy pewsy
Explanation:
Get money
Buy Hella designer
In a limited partnership, general partners are automatically authorized to borrow money.
What is a partnership?When two or more two people come up with the objective to manage the operation of a business by making an alliance by sharing capital for investment and profit or loss of the organization. The collaboration is said to be a partnership.
The general partners and limited partners are mainly two types of partners present in a limited partnership. The general partners are in charge of administering the firm and making commercial decisions.
The general partners have the authority to run the partnership and are also automatically authorized to borrow money on its behalf. This means that the general partners can obtain loans or other sources of finance.
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Three-year Treasury securities currently yield 6%, while 4-year Treasury securities currently yield 6.5%. Assume that the expectations theory holds. What does the market believe the rate will be on 1-year Treasury securities three years from now
Market expectations indicate that the 1-year Treasury securities rate will be higher than 6.5% in three years.
According to the expectations theory in finance, if the one-year Treasury securities yield is lower than the two-year Treasury securities yield, it suggests expectations of increasing interest rates. Given that the three-year Treasury securities yield 6% and the four-year Treasury securities yield 6.5%, we can infer that the market believes the rate on 1-year Treasury securities three years from now will be higher than 6.5%.
Assume that a $1,000,000 par value, semiannual coupon US Treasury note with four years to maturity has a coupon rate of 3%. The yield to maturity (YTM) of the bond is 11.00%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note: $634,624.76 $895,940.83 $746,617.36 $470,368.94 Based on your calculations and understanding of semiannual coupon bonds, complete the following statement: The T-note described in this problem is selling at a .
Answer:
$746,617.36
Explanation:
Using a financial calculator, input the following to calculate the price of the US Treasury note. I'm using Texas Instruments BA II Plus model;
Face value of the bond ; FV = 1,000,000
Semiannual coupon payment; PMT = Coupon rate * Face value ;
PMT= (3%/2) *1,000,000 = 15,000
Time to maturity of the note ; N = 4*2 = 8
Semiannual interest rate; I/Y = 11% /2 = 5.5%
then compute the Present value of bond or price; CPT PV = $746,617.36
The value of the $1,000,000 semiannual coupon US Treasury note with a coupon rate of 3% is (A) $634,624.76 given a YTM of 11%. This bond is selling at a discount compared to its par value of $1,000,000.
To calculate the value of the treasury note, we need to use the present value formula for each cash flow. This bond pays a semiannual coupon of 3% annual coupon rate, which means $30,000 every six months on a $1,000,000 par value bond. The yield to maturity (YTM) is 11%, which is 5.5% per six months.
Steps to Calculate:
Calculate the semiannual coupon payment:Using these calculations, the bond's value is approximately $634,624.76. Therefore, the T-note described in this problem is selling at a discount.
Why do people often want to insure fully against uncertain situations even when the premium paid exceeds the expected value of the loss being insured against? A. Assuming risk-averse individuals, the decrease in utility from a loss is greater than the increase in utility from a gain because of diminishing marginal utility. B. Assuming the consumer's objective is to maximize expected utility, one must conclude that people are not always rational. C. Assuming risk-averse individuals, the decrease in utility from a loss is greater than the increase in utility from a gain because of increasing marginal utility. D. Assuming the consumer's objective is to maximize expected utility, only if they are extremely risk averse is it rational for them to pay a higher premium to avoid a loss.
Answer:
A. Assuming risk-averse individuals, the decrease in utility from a loss is greater than the increase in utility from again because of diminishing marginal utility.
Explanation:
Risk-averse people have declining marginal utility, and this means that the pain of a loss increases at an increasing rate as the size of the loss increases.
The independent cases are listed below that includes all items relevant to operating activities: Case A Case B Case C Sales revenue $ 71,000 $ 61,000 $ 102,000 Cost of goods sold 38,000 29,000 68,200 Depreciation expense 10,600 2,600 26,600 Salaries and wages expense 5,600 13,600 8,600 Net income 16,800 15,800 (1,400 ) Accounts receivable increase (decrease) (1,000 ) 4,600 3,600 Inventory increase (decrease) 2,600 0 (3,600 ) Accounts payable increase (decrease) 0 3,100 (1,000 ) Salaries and wages payable increase (decrease) 1,800 (2,600 ) 1,000 Compute cash flows from operating activities using the direct method. (Amounts to be deducted should be indicated with a minus sign.)
Final answer:
To calculate cash flows from operating activities using the direct method, adjust sales revenue for changes in accounts receivable, subtract adjusted costs of goods sold and salaries, and make additional adjustments for changes in inventory and accounts payable.
Explanation:
Calculating Cash Flows from Operating Activities
To compute the cash flows from operating activities using the direct method, we follow these steps for each case:
Begin with sales revenue and adjust for the change in accounts receivable to find cash collected from customers.Subtract the cost of goods sold and adjust for the inventory and accounts payable changes to find cash paid to suppliers.Subtract the salaries and wages expense and adjust for the change in salaries and wages payable to find cash paid to employees.Subtract any other operating expenses, adjusting for any associated changes in liabilities or assets that affect cash.However, in these particular cases, the only expenses we are given are for cost of goods sold, depreciation, and salaries and wages. Since depreciation expense doesn't affect cash, only cases with changes in receivables, inventory, and accounts payable will have adjustments.
Note that in a real-world scenario, there might be other adjustments necessary for items such as other operating expenses, interest paid, and income taxes paid.
Here's how the calculation would look for Case A (as an example):
Cash collected from customers = Sales revenue - Increase in accounts receivable = $71,000 - ($-1,000) = $72,000
Cash paid to suppliers = Cost of goods sold - Increase in inventory + Increase in accounts payable = $38,000 - $2,600 + $0 = $35,400
Cash paid to employees = Salaries and wages expense - Increase in salaries and wages payable = $5,600 - $1,800 = $3,800
These computations would repeat for each case, and the subtotal of these amounts would give the cash flows from operating activities for that case.
Presented below is information for Blossom Company for the month of January 2022. Cost of goods sold $270,000 Rent expense $35,000 Freight-out 6,800 Sales discounts 7,800 Insurance expense 13,000 Sales returns and allowances 12,000 Salaries and wages expense 45,000 Sales revenue 431,000. Prepare an incomestatemnt using the multi-step format.
Answer and Explanation:
The preparation of the multi-step income statement is shown below:
Blossom Company
Income Statement
For the Month January 2022
Revenues
Sales revenue $431,000
Less:
Sales discount -$7,800
Sales return -$12,000
-$19,800
Net Sales $411,200
Less: Cost of goods sold -$270,000
Gross Profit $141,200
Less: Operating expenses:
Freight out -$6,800
Insurance expense -$13,000
Salaries and wages expense -$45,000
Rent expense -$35,000
Total Operating expenses -$99,800
Operating Income $41,400
We simply deduct the expenses from the gross profit so that the operating income could arrive
aint John Industries uses the percentage of credit sales method to estimate Bad Debt Expense. The company reported net credit sales of $500,000 during the year. Saint John has experienced bad debt losses of 3% of credit sales in prior periods. At the beginning of the year, Saint John has a credit balance in its Allowance for Doubtful Accounts of $4,000. No write-offs or recoveries were recorded during the year. What amount of Bad Debt Expense should Saint John recognize for the year
Answer:
$15,000
Explanation:
Bad Debt Expense for the year=$500,000*3%=$15,000
As per %of Sales Method, the Relevant % of sales is recorded bad debt expense. Therefore the opening balance of allowance for doubtful accounts given in the question is irrelevant.
The journal entry will be;
Bad Debt expense Dr.$15,000
Allowance for Doubtful Accounts Cr.$15,000
Answer:
$15,000
Explanation:
When we are estimating bad debts as a percentage of credit sales then bad debt expense to be recognised each year is calculated by the formula
Total Credit Sales x Percentage of bad debts
As per data given in the question the Total Credit Sales = $500,000 and Percentage of bad debts is 3%.
Therefore Bad debt expenses to be recognised for the year by Saint John Industries would be
$500,000 x 3%
$15,000.
The Journal Entry to record the above transaction is
Bad Debt Expense $15,000
Allowance for Doubtful Accounts $15,000
Main Street Ice Cream Company uses a plantwide allocation method to allocate overhead based on direct labor-hours at a rate of $2 per labor-hour. Strawberry and vanilla flavors are produced in Department SV. Chocolate is produced in Department C. Sven manages Department SV and Charlene manages Department C. The product costs (per thousand gallons) follow:
Strawberry Vanilla Chocolate
Direct labor (per 1,000 gallons) $ 766 $ 841 $ 1,141
Raw materials (per 1,000 gallons) 816 516 616
Required: .
1. If the number of hours of labor per 1,000 gallons is 60 for strawberry, 70 for vanilla, and 100 for chocolate, compute the total cost of 1,000 gallons of each flavor using plantwide allocation. (Omit the "$" sign in your response.)
Answer:
$1,702 , $1,497, and $1,957
Explanation:
The computation of the total cost is shown below:
Particulars Strawberry Vanilla Chocolate
Direct Labor $766 $841 $1,141
Direct Material $816 $516 $616
Overhead $120 $140 $200
(60 × 2) (70 × 2) (100 ×2)
Total Cost $1,702 $1,497 $1,957
We simply added the direct labor cost, direct material cost and the overhead cost so that the total cost could come
Project team members can identify who should be notified of task completion status by checking the:Select one:a. Control accountb. Linear responsibility chartc. Statement of workd. Monthly joint review report
Answer:
The correct answer is letter "B": Linear responsibility chart.
Explanation:
A Linear Responsibility Chart (LRC) is, just like its name indicates, a chart where all the participants of a project are in a hierarchical order so subordinates will know who to report and what the command structure of the group is. LRCs display the function of the main representatives of the plan to be carried out so they are helpful to create correct lines of communication and coordination during the development of the project.
Fabulous Frames Frame Shop wants to know the effect of different inventory costing methods on its financial statements. Inventory and purchases data for June are:
Units Unit Cost Total Cost
Jun 1 Begining inventory 2,200 $ 13.00 $28, 600
4 Purchase 1,700 $ 13.40 22,780
9 Sale (1900)
Required:
1. If Fabulous Frames Frame Shop uses the FIFO method, the cost of the ending inventory will be _________.
A. $ 25,000.
B. $ 26, 680.
C. $ 22, 780.
D. $ 24, 700.
If Fabulous Frames Frame Shop uses the FIFO method, the cost of the ending inventory will be:
B. $26680
"FIFO (First-In-First-Out)"First In, First Out (FIFO) is an bookkeeping strategy in which resources acquired or obtained to begin with are arranged of to begin with.
FIFO accept that the remaining stock comprises of things acquired last.
Jun 1 : Beginning Inventory : 2200 units x $13 = $28600
Jun 4 : Purchases : 1700 units x $13.4 = $22780
Total units : 2200 + 1700 = 3900 units
Sales : 1900 units
Cost of Goods Sold =Sales*Total Units
Cost of Goods Sold=1900 x $13
Cost of Goods Sold= $24700
Ending inventory:
(2200 - 1900) x $13 = $3900
1700 x $13.4 = $22780
Ending inventory : $3900 + $22780
Ending inventory= $26,680
Thus, the correct answer is B.
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If Fabulous Frames Frame Shop uses the FIFO method, the cost of the ending inventory will be $24,700. The correct option is D. $ 24, 700.
1. Calculate the remaining units and total cost after the sale on June 9 using the FIFO method:
- Beginning inventory units = 2,200
- Purchase units = 1,700
- Sale units = 1,900
- Remaining units = Beginning inventory units + Purchase units - Sale units = 2,200 + 1,700 - 1,900 = 2,000 units
- Calculate the remaining total cost:
- Beginning inventory cost = $28,600
- Purchase cost = $22,780
- Remaining cost = Beginning inventory cost + Purchase cost - Cost of units sold = $28,600 + $22,780 - (1,900 * $13.00) = $51,380 - $24,700 = $26,680
2. Therefore, if Fabulous Frames Frame Shop uses the FIFO method, the cost of the ending inventory will be $24,700.
The Sarbanes-Oxley Act of 2002 requires that the key company officials certify the financial statements. Certification means that the company CEO and CFO must sign a statement indicating:
a. they have read the financial statements.
b. they are not aware of any false or misleading statements (or any key omitted disclosures).
c. they believe that the financial statements present an accurate picture of the company's financial condition.
d. All of the above
Answer:
The correct answer is d. All of the above .
Explanation:
The statement that a financial statement is certified must confirm that management and its chief financial officer guarantee that the information meets the quality and compliance criteria of the US GAAP, this means that they were prepared in accordance with current regulations and faithfully reflect the economic information of the company (all operations
Answer:
D
Explanation:
All of the above
The Sarbanes-Oxley Act of 2002 requires that the key company officials certify the financial statements. Certification means that the company CEO and CFO must sign a statement indicating: they have read the financial statements, they are not aware of any false or misleading statements (or any key omitted disclosures), and they believe that the financial statements present an accurate picture of the company's financial condition.
Shady Acres neighborhood has had 103 homes sold last year out of 560 homes in the area. Sunny Hills neighborhood has had 87 homes sold with 400 total homes. Windy Woods neighborhood has had 150 homes sold with 800 total homes. Still Waters neighborhood has had 145 homes sold with 625 total homes. All are in the same general price range in well-kept areas of the city. Which neighborhood would be the best farm area based on likely reward-to-effort ratios?
Answer:
Still Waters
Explanation:
Shady Acres neighborhood has had 103 homes sold last year out of 560 homes in the area. Sunny Hills neighborhood has had 87 homes sold with 400 total homes. Windy Woods neighborhood has had 150 homes sold with 800 total homes. Still Waters neighborhood has had 145 homes sold with 625 total homes. All are in the same general price range in well-kept areas of the city.
Which neighborhood would be the best farm area based on likely reward-to-effort ratios?
For each of the neighborhoods, the sales associate should determine the turnover index. This is by dividing the number of sales per year by the total number of homes in the neighborhood.
This neighborhoods will have a turnover ratio of 23.2
(145 sales ÷ 625 total homes)
This is the highest of the four neighborhoods (Shady Acres,Sunny Hills,Windy Woods,Still Waters neighborhoods) analyzed.
Each project team member had a backup that could fill in at a moment's notice should another team member fall by the wayside. The project was able to mitigate risks in this fashion thanks to an aggressive:
Featherbedding program.
Duplication program.
Mentoring program.
Cross-training program.
Answer:
Cross-training program.
Explanation:
Cross-training program: It is an employee training program on different skills and departments to keep them trained and informed about other job functions, which help the organization in the time of crisis. In the current competitive market, employees are hired, those can be cross-trained into different job responsibilities which will mitigate the risk of scarcity of resources at times. This also makes the employee effective and skillful. This training program is well known in the world of sports.
Answer:
cross train
Explanation:
Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing.
Current Machine New Machine
Original purchase cost $15,230 $25,080
Accumulated depreciation $ 6,800 _
Estimated annual operating costs $24,950 $19,560
Useful life 5 years 5 years
If sold now, the current machine would have a salvage value of $8,490. If operated for the remainder of its useful life, the current machine would have zero salvage value. The new machine is expected to have zero salvage value after 5 years.
Prepare an incremental analysis. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Answer:
The incremental cost is ($10,360)
Explanation:
Analysis of total cost over the 5 year period
Retain Old Machine Buy New Machine
Variable / Incremental Operating
Costs
Old Machine 124,750
New Machine 97,800
Old Machine Book Value
Retain: Annual depreciation 8,430
Buy : Lump sum written off 8,430
Old Machine Disposal (8,490)
Purchase Cost of New Machine 25,080
Total Cost 133,180 122,820
The use of new machine will result in lower cost for the next 5 years.The incremental cost is ($10,360)
Which T&D evaluation method involves monitoring and measuring a firm's internal processes, such as operations, and then comparing the data with information from companies that excel in those areas? behavioral change benchmarking return on investment onboarding
Answer:
The correct answer is Benchmarking.
Explanation:
Benchmarking is a strategy that consists of establishing a benchmark in the market in order to implement best practices within our own organization. This strategy establishes a "model to follow" to adapt to the market and to be able to grow in the short term, for which reason the process or group of processes must be studied in depth in order to determine if it is applicable to our organizational performance.
SGA Consulting had a FCFE of $3.2M according to the just released financial statement and has 3.2M shares outstanding. SGA's required return on equity is 13%, and WACC is 11.5%. If FCFE is expected to grow at 8.5% forever, the intrinsic value of SGA's shares is
Answer:
The value of Equity is $77.16 million and the value per share is $24.11
Explanation:
The FCFE or free cash flow to equity can be used to calculate the intrinsic value of a company using the discounted cash flow approach. As the growth rate in FCFE is constant, the terminal value of the future FCFEs can be calculated as follows,
Value of Equity = FCFE * (1+g) / r - g
Value of Equity = 3.2 * (1+0.085) / (0.13 - 0.085)
Value of Equity = $77.16 million
The intrinsic value per share = 77.16 / 3.2 = $24.11 per share
The intrinsic value of a share of SGA Consulting is calculated as $19.23 per share using the Gordon Growth Model, which uses the Free Cash Flow to Equity (FCFE), the growth rate, and the required return on equity.
Explanation:The intrinsic value of SGA's shares can be calculated using the Gordon Growth Model, which is used to determine the intrinsic value of a stock based on a future series of dividends that grow at a constant rate. Given that the Free Cash Flow to Equity (FCFE) is $3.2 million, the growth rate ('g') is 8.5%, and the required return on equity ('k') is 13%. The formula is as follows: Value = FCFE * (1 + g) / (k - g).
Substituting the given values in, we get: Value = 3.2M * (1 + 0.085) / (0.13 - 0.085) = $61.54M
To find the value per share, we simply divide this value by the number of shares outstanding - 3.2M. So, Value per share = 61.54M / 3.2M = $19.23 per share
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Burton Corp. is growing quickly. Dividends are expected to grow at a rate of 28 percent for the next three years, with the growth rate falling off to a constant 7.4 percent thereafter. If the required return is 16 percent and the company just paid a dividend of $3.45, what is the current share price
Answer:
current share price = $70.53
Explanation:
Share Price:
A share price is the amount it would cost to buy one share in a company.
Formula:
share price = future dividends * Present value of discount factor(16%, time period)
As the company just paid a dividend of $3.45 and dividends are expected to grow at a rate of 28 percent for the next three years so
Dividend for 1st year = (3.45*1.28) = $4.416
Dividend for 2nd year = (4.416*1.28) = $5.65248
Dividend for 3rd year = (5.65248*1.28) = $7.2351744
Now we need to calculate the value for 3rd year.
Formula:
Value after 3rd year = (Dividend for year 3*growth rate) / (required rate-growth rate)
Therefore by putting the values in the above formula, we get
Value after 3rd year = (7.2351744 * 1.074) / (0.16 - 0.074)
Value after 3rd year = $90.35555007
Therefore by putting the values in the share price formula, we get
current share price = 4.416 / 1.16 + 5.65248 / 1.16^2 + 7.2351744/1.16^3 + 90.35555007 / 1.16^3
current share price = $70.53
Maria spends all of her money on paperback novels and beignets. In 2011 she earned $27.00 per hour, the price of a paperback novel was $9.00, and the price of a beignet was $3.00.
1. Which of the following give the nominal value of a variable?
Check all that apply.
O The price of a beignet is $3.00 in 2011.
O Maria's wage is $27.00 per hour in 2011.
O The price of a beignet is 0.33 paperback novels in 2011.
2. Which of the following give the real value of a variable?
Check all that apply.
O The price of a paperback novel is 3 beignets in 2011.
O Maria's wage is 9 beignets per hour in 2011.
O The price of a paperback novel is $9.00 in 2011.
3. Suppose that the Fed sharply increases the money supply between 2011 and 2016. In 2016, Maria's wage has risen to $54.00 per hour. The price of a paperback novel is $18.00 and the price of a beignet is $6.00. In 2016, the relative price of a paperback novel is ______(6$, 18$, 3 Beignets, .33 Beignets)________.
4. Between 2011 and 2016, the nominal value of Maria's wage ______ (increases/decreases/remains the same)____ and the real value of her wage______ (increases/decreases/reamins the same)_______.
Answer:
1. The price of a beignet is $3.00 in 2011 and Maria's wage is $27.00 per hour in 2011.
2. The price of a paperback novel is 3 beignets in 2011 and Maria's wage is 9 beignets per hour in 2011.
3. 3 Beignets
4. increases and remains the same
Explanation:
1. Nominal value is the value of a product based on the money of the day that we see. The price of a beignet is $3.00 in 2011 and Maria's wage is $27.00 per hour in 2011 are the values of the product and wage quoting the money of the day.
2. The real value of a varaible is the value in terms of the value of some other goods. In this case Paperback and Maria's wage are valued in terms of beignets.
3. The relative price of paperback is valued in terms of beignets. So if a beignet costs $6 and a paperback novel is $18. The relative price of a paperback novel will be three times the cost of beignet, since a beignet costs $6.
4. Between 2011 and 2016, the nominal value of Maria's wage increases and the real value of her wage remains the same.
Use the following corporate bond quote information to answer the questions that follow. Since this is a corporate bond,
assume the company makes semi-annual coupon payments and also assume the bond matures on today’s date in its
maturity year.
Bond Cur. Yld. Vol. Close Net Chg.
Doh! 9 ½ 18 9.0 5 105 1/2 - 1/4
Doh! 8 ½ 21 9.4 10 90 1/4 -1/2
1. How much would each bond cost you to buy today if its face value is $1000?
2. How much would each bond cost you yesterday if its face value were $1000?
3. What is each bond’s yield to maturity?
4. What is each bond’s expected capital gains yield today?
5. Now imagine you purchased each bond today at the current price. A year later the yield to maturity for each
bond falls by one percentage point. What is your total rate of return for each bond?
6. Now imagine the same scenario in #5 (the last question) except the yield to maturity for each bond increases
one percentage point for each bond a year later. What is your total rate of return for each bond?
7. Which bond do you prefer in #5, and what type of risk are you more exposed to if you choose this particular
bond?
8. Which bond do you prefer in #6, and what type of risk are you more exposed to if you choose this particular
bond?
Answer:
Check the explanation
Explanation:
Bond Cur.Yld. Vol. Close Net Chg.
Doh! 9 ½ 18 9.0 5 105 1/2 - 1/4
Doh! 8 ½ 21 9.4 10 90 1/4 -1/2
1. As given in question:
Closing Price of the first bond: =105.5*10
=1055
Closing Price of the second bond: =90.25*10
=902.5
2. Yesterday's price for first bond: =(105.5+0.25)*10
=1057.5
Yesterday's price for second bond: =(90.25+0.5)*10
=907.5
3. kindly check the attached image below to see the solution to question 3
4. Capital Gain Yield for first bond =(P1-P0)/P0
=(1055-1057.5)/1057.5
=-0.236%
Starcrest Publishing is one of many companies that will take demographic information about your child and publish a story written about that child. The story is already written, and a computer is used to insert the relevant information into the spaces left blank-such as the child's name, his address, his age, his grandparents' name, etc.
Starcrest Publishing uses:
A. just-in-time production.
B. mass customization.
C. individualized production.
D. niche manufacturing.
E. production-to-order.
Starcrest Publishing uses mass customization.
Explanation:
Mass customization is an advertising and marketing strategy that blends the versatility and functionality of personalized goods with low unit costs associated with mass production.
Many product customization titles like made-to-order or built-to-order.
Market customization helps the consumer to customize the aspects of the company while holding prices similar to those of market-produced goods.
For certain instances, the product elements are interchangeable. Such versatility helps the consumer to mix-and-match choices to produce a semi-custom finished product.
Starcrest Publishing uses mass customization by taking standard story templates and inserting personalized details to create unique books for each customer.
The correct option is 'B'.
Starcrest Publishing is employing a production strategy known as mass customization. This is a process where a company uses technology, like a computer system, to produce personalized products for customers on a large scale. The company takes predetermined, standardized story templates and customizes them with individual details such as a child's name, address, and age to create a unique product for each customer.
This approach differs from just-in-time production, which focuses on producing goods to meet demand exactly when needed to reduce inventory costs. It is not strictly individualized production, which would imply a completely unique product created for a single customer.
Nor is it niche manufacturing, which would focus on serving specific segments of the market with specialized products. Lastly, production-to-order is a broader term that mass customization falls under, but it lacks the specificity regarding the customization aspect.
A loan of $300,000 is taken out which requires an annual interest payment of 4.6% of the borrowed amount of money (in market dollars). No principal payments are made, only interest is paid. Inflation is 2% per year. What will be the value of interest payment at the end of fourth year in real dollars
Answer:
$13,800
Explanation:
Loan Payment = $300,000
Annual Interest rate includes the real interest and inflation effect in it. As 2% is already included in the calculation of 4.6% so, we will charge 4.6% to the principal amount.
Interest Payment = $300,000 x 4.6% = $13,800
As the payment is made each year, so there is no compounding effect to the interest payment and Interest payment will remain constant every year. The value of Interest payment at the end of fourth year is $13,800.
Journalize all transactions for Jo Jo Music. Round all amounts to the nearest dollar. (For notes stated in days, use a 360-day year.) (Round your final answers to the nearest whole dollar. Record debits first, then credits. Exclude explanations from journal entries.)
Dec. 6 Received a $ 9,000?, 90?-day, 12?%note in settlement of an overdue accounts receivable from Concord Sounds.
Dec. 31: Made an adjusting entry to accrue interest on theConcord Sounds note.
Dec 31: Made a closing entry for interest revenue.
Mar.6: Collected the maturity value of the Concord Sounds note. (Prepare a single compound journal entry.)
Jun. 30: Loaned $ 11,000 cash to Main Street Music, receiving a six-month, 12% note.
Oct. 2: Received a $ 9,000, 60-day,12% note for a sale to Salem Sounds. Ignore Cost of Goods Sold.
Dec. 1: Salem Sounds dishonored its note at maturity. (Prepare a single compound journal entry.)
Dec. 1: Wrote off the receivable associated with Salem Sounds. (Use the allowance method.)
Dec. 30: Collected the maturity value of the Main Street Music note. (Prepare a single compound journal entry.)
Answer: Please refer to Explanation
Explanation:
The following is a compound journal. I shall record the accounts that need to be debited first and then the account to be credited.
Dec 6
DR Notes Receivable - Concord Sounds $9,000
CR Accounts Receivable - Concord Sounds $9,000
(To record note received as settlement)
Dec 31
DR Interest Receivable (9,000 * 12% * ((25 days since Dec 6)/360) $ 75
CR Interest Revenue $75
(To record accrued interest)
Dec 31
DR Interest Revenue $75
CR Cash $75
(To record closing entry on interest revenue)
Mar 6
DR Cash $9,270
CR Notes Receivable - Concord Sounds $9,000
CR Interest Receivable $75
CR Interest Revenue (9,000 * 12% * 65/360) $195
(To record Collected note)
Jun 30
DR Notes Receivable - Main Street Music $11,000
CR Cash $11,000
(To record Note Received)
Oct 2
DR Notes Receivable - Salem Sounds $9,000
CR Sales Revenue - Salem Sounds $9,000
(To record Note Received)
Dec 1
DR Accounts receivable - Salem Sounds $9,180
CR Notes Receivable $9,000
CR Interest Receivable (9,000 * 12% * 60/360) $180
Dec 1
DR Allowance for Bad Debt $9,180
CR Accounts Receivable - Salem Sounds $9,180
(To record receivable written off)
Dec 30
DR Cash $11,660
CR Notes Receivable - Main street Music $11,000
CR Interest Revenue (11,000* 12% * ( 6 months / 12) ) $660
(To record collection of Note - MS)
The journal entries record a series of transactions including receiving notes, making adjustments, accruing interest, closing entries, loaning cash, receiving dishonored notes, writing off receivables and collecting maturity values.
Explanation:Jo Jo Music's transactions can be journalized as follows:
Dec. 6: Debit Notes Receivable for $9,000 and credit Accounts Receivable for $9,000. Dec. 31: Debit Interest Receivable for $90 ([$9,000 x 12% x 25/360]) and credit Interest Revenue for $90. Dec 31: Debit Income Summary for $90 and credit Interest Revenue for $90. Mar. 6: Debit Cash for $9,090 (maturity value of the note [$9,000 + $90]) and credit Notes Receivable for $9,000 and Interest Receivable and Revenue for $90. Jun. 30: Debit Notes Receivable for $11,000 and credit Cash for $11,000. Oct. 2: Debit Notes Receivable $9,000 and credit Sales for $9,000. Dec. 1: Debit Accounts Receivable for $9,000 and credit Notes Receivable for $9,000. The dishonored note is treated as an Account Receivable. Dec. 1: Debit Allowance for Doubtful Accounts for $9,000 and credit Accounts Receivable for $9,000. Dec. 30: Debit Cash for $11,660 (maturity value of the note [$11,000+($11,000 x 12% x 6/12)]) and credit Notes Receivable for $11,000 and Interest Revenue for $660. Learn more about Journal Transactions here:https://brainly.com/question/30273292
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If the monthly sales volume required to break even is $190,000 and monthly fixed costs are $55,900, the contribution margin ratio is closest to: Select one: a. 29% b. 71% c. 340% d. 23%
Answer:
a. 29%
Explanation:
Given that
Contribution margin = $55,900
Sales = $190,000
The computation of contribution margin ratio is shown below:-
Contribution margin ratio = Contribution margin ÷ Sales
= $55,900 ÷ $190,000
= 29%
Therefore for computing the contribution margin ratio we simply divide sales by contribution margin ratio.
Gibbs Corporation produces industrial robots for high-precision manufacturing. The following information is given for Gibbs Corporation. Per Unit Total Direct materials $440 Direct labor $310 Variable manufacturing overhead $ 77 Fixed manufacturing overhead $1,983,600 Variable selling and administrative expenses $ 59 Fixed selling and administrative expenses $ 605,340 The company has a desired ROI of 19%. It has invested assets of $66,330,000. It anticipates production of 3,420 units per year. Collapse question part (a) Compute the cost per unit of the fixed manufacturing overhead and the fixed selling and administrative expenses. Fixed manufacturing overhead $ per unit Fixed selling and administrative expenses $ per unit
Answer:
Fixed manufacturing overhead per unit = $580 per unit.
Fixed selling and administrative expenses per unit = $177 per unit.
Explanation:
Units of production anticipated = 3,420
Fixed manufacturing overhead per unit = Fixed manufacturing overhead ÷ Units of production anticipated = $1,983,600 ÷ 3,420 = $580 per unit.
Fixed selling and administrative expenses per unit = Fixed selling and administrative expenses ÷ Units of production anticipated = $605,340 ÷ 3,420 = $177 per unit.