Answer:
4% (exactly 4.4%)
Explanation:
A taxable bond is a debt security whose return to the investor is subject to taxes at the local, state or federal level, or some combination thereof. An investor trying to decide whether to invest in a taxable bond or tax-exempt bond should consider what s/he will have left in income after taxes are taken.
Step 1:
Find the reciprocal of your tax rate,
(1-22%) = 1-0.22 = 0.78
Step two:
Divide this into the yield on the tax-free bond to find out the tax-equivalent yield.
3.5/0.78 = 4.4 ~ 4%
To make the yield equivalent to a municipal bond with a 3.5% interest rate, a taxable bond would have to offer an interest rate of approximately 4.49% for someone in a 22% tax bracket.
Explanation:To find the interest rate that a taxable bond would have to offer to make its yield equivalent to that of a municipal bond with an interest rate of 3.5% for someone in a 22% tax bracket, we can use the formula:
Taxable Bond Yield = Municipal Bond Yield / (1 - Tax Rate)
Plugging in the values, we get:
Taxable Bond Yield = 3.5% / (1 - 0.22) = 4.49%
Therefore, a taxable bond would have to offer an interest rate of approximately 4.49% to have an equivalent yield to a municipal bond with a 3.5% interest rate for someone in a 22% tax bracket.
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Assume that Andretti Company has sufficient capacity to produce 120,150 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 35% above the present 89,000 units each year if it were willing to increase the fixed selling expenses by $140,000. What is the financial advantage (disadvantage) of investing an additional $140,000 in fixed selling expenses?
To find the profit-maximizing quantity for Doggies Paradise Inc., we calculate and graph total revenue, total cost, marginal revenue, and marginal cost, then identify the output level where marginal revenue equals marginal cost.
Explanation:The question addresses the concept of profit maximization in the context of a perfectly competitive firm, Doggies Paradise Inc., in the field of business economics. To determine the profit-maximizing quantity, we need to analyze the total revenue, total cost, and marginal costs associated with different levels of output. To achieve this, we create a table with columns for output level, total revenue, marginal revenue, total cost, and marginal cost, and then plot these relationships on a graph to visually identify the point where marginal cost equals marginal revenue, which indicates the profit-maximizing level of output.
Using the provided information, we can calculate that for each unit sold at $72, the marginal revenue will be $72 as well since the price remains the same for each additional unit sold in perfect competition. Total revenue is simply the price multiplied by the quantity sold. The marginal cost for each unit is the difference in total variable cost for each additional unit produced. The total cost at each level of output is calculated by adding the fixed costs to the total variable costs. Once calculated, we can then sketch the total revenue and total cost curves, as well as the marginal revenue and marginal cost curves, to visually analyze the profit-maximizing quantity.
Exercise 24-3 Payback period computation; straight-line depreciation LO P1 A machine can be purchased for $140,000 and used for five years, yielding the following net incomes. In projecting net incomes, straight-line depreciation is applied, using a five-year life and a zero salvage value. Year 1 Year 2 Year 3 Year 4 Year 5 Net income $ 9,500 $ 23,500 $ 64,000 $ 35,500 $ 94,000
Answer:
Year 1 Year 2 Year 3 Year 4 Year 5 Net income $ 9,500 $ 23,500 $ 64,000 $ 35,500 $ 94,000
Explanation:
look p1 a machine
As of December 31, 2021, Warner Corporation reported the following:
Cash dividends payable $20,000
Treasury stock 600,000
Paid-in capital—share repurchase 20,000
Common stock and other paid-in capital accounts 4,000,000
Retained earnings 3,000,000
What was shareholders' equity as of December 31, 2021?
Answer:
$6,240,000
Explanation:
Stockholders Equity Includes the Add-in-capital par value, Add-in-capital excess value of Common and Preferred, Net income accumulated value and dividends.
Stockholders' equity
Common Stock and Paid-in-capital common $4,000,000
Retained Earning $3,000,000
Treasury Stock ($600,000)
Paid-in capital—share repurchase $20,000
Total stockholders' equity $6,420,000
Treasury stock is the repurchased stock, which is a contra equity account. It need to be deducted from the equity
Final answer:
Shareholders' equity for Warner Corporation as of December 31, 2021, was calculated by adding common stock and other paid-in capital accounts to retained earnings and then subtracting treasury stock and cash dividends payable, resulting in total equity of $6,380,000.
Explanation:
To calculate the shareholders' equity of Warner Corporation as of December 31, 2021, we need to sum up the common stock, additional paid-in capital, and retained earnings, and then subtract any treasury stock and dividends payable. Cash dividends payable and treasury stock are subtracted because they represent obligations of the company and are not part of equity. Paid-in capital related to share repurchases would typically already be included in the treasury stock figure and would also not be part of equity.
Here is the calculation:
Common stock and other paid-in capital accounts: $4,000,000Retained earnings: $3,000,000Treasury stock: -$600,000Cash dividends payable: -$20,000Shareholders' Equity = (Common stock and other paid-in capital accounts) + (Retained earnings) - (Treasury stock) - (Cash dividends payable).
Shareholders' Equity = $4,000,000 + $3,000,000 - $600,000 - $20,000 = $6,380,000.
Thus, the shareholders' equity for Warner Corporation as of December 31, 2021, was $6,380,000.
Elsa participates in an investigation into possible violations of the Civil Rights Act of 1964 at Fabrication Foundry, Inc., where she works. As a result, Elsa’s employer demotes her. Elsa can file a a. harassment complaint. b. retaliation claim. c. constructive discharge claim. d. disparate-impact discrimination clai
Answer:
The correct answer is letter "D": disparate-impact discrimination claim.
Explanation:
A disparate-impact discrimination claim is one filed because there is a presumed act of unintentional discrimination at work. This could be the result of requesting employees with certain abilities which disfavors a sector of the workforce of the firm. The company has to prove the feature requested for the job position is necessary for the regular development of the activities if such position.
How would you define the geographic and product markets of large healthcare organizations such as the Mayo Clinic, Cleveland Clinic, Kaiser Permanente, and Johns Hopkins? What are the barriers that keep new competitors from entering those markets? (Showalter, 20170222, p. 496) Showalter, S. (20170222). The Law of Healthcare Administration, Eighth Edition, 8th Edition [VitalSource Bookshelf version]. Retrieved from vbk://9781567938791 Always check citation for accuracy before use.
Geographic markets for products are limited to a greater or lesser extent by the cost of transporting the product and legal barriers, such as those imposed by entry regulation that may prohibit trade among jurisdictions. Transportation costs of shipment between two areas may create a differential in prices in the two areas.
Explanation
The health costs in these organisations are also too high which can only be borne by the elite class, thereby giving them a position of monopoly power in the healthcare market.One must define first the market for the product of interest and second, the geographic market in which trade in the product occurs.
For both product and geographic market definitions, two types of substitutability are relevant:
Demand substitutability
Supply substitutability
Demand substitutability depends upon the extent to which consumers of the good or service are able to switch to substitutes for that good or service in response to a price increase.
In contrast, supply substitutability depends upon the extent to which existing providers could expand output, and/or firms not currently producing the good or service could enter the market for that good or service. In specific applications, the product market is defined first.
Then, given a definition of product, the geographic area over which commerce in the product takes place is examined.
When the cost of transportation is high relative to cost of production, geographic markets tend to be small; the converse holds true when relative transportation cost is low.
Choosing which percent rule to apply depends on the comparative risks of under- or overstating the size of the market.
Barriers for new competitors are:
Price: A successful company with a large market share may be able to charge prices substantially higher than what customers would be willing to pay if they had more options. If a competitor tries to enter the market, the established company can often afford to lower its own prices below what the competitor can match.
Contractual: Some barriers to entry may be illegal and may violate antitrust regulation. A new competitor entering the same market could find it difficult or impossible to get its products into any stores and negotiation with existing distributors for prices.
Location: Companies with the ability to operate in any part of the world can create a barrier to competition by locating manufacturing facilities in places with much lower labor costs or regulatory requirements.
Regulatory: Regulations are intended to serve the public good by promoting better safety and environmental standards or promoting competition.
The geographic market of large healthcare organizations refers to their operational regions, while the product market includes the range of healthcare services they offer. Barriers to entry for new competitors include high start-up costs, regulatory requirements, and established reputations.
Explanation:The geographic market of large healthcare organizations like the Mayo Clinic, Cleveland Clinic, Kaiser Permanente, and Johns Hopkins can be defined as the region or area in which these organizations operate and provide healthcare services. These organizations usually have a national or even international presence, serving patients from different parts of the country or even around the world.
The product market of these healthcare organizations refers to the range of healthcare services and products they offer. This can include medical treatments, surgeries, diagnostic services, preventive care, specialized clinics, and research initiatives.
Barriers that keep new competitors from entering these markets include:
High start-up costs and capital requirements: Establishing large healthcare organizations requires significant financial investments in infrastructure, technology, equipment, and skilled personnel.Regulatory requirements and compliance: Healthcare organizations need to comply with various regulations and licensing requirements imposed by government agencies at local, state, and national levels.Established reputation and brand recognition: Large healthcare organizations like Mayo Clinic, Cleveland Clinic, Kaiser Permanente, and Johns Hopkins have built strong reputations and brand recognition over the years, making it difficult for new competitors to gain trust and attract patients.Learn more about Barriers to Entry here:https://brainly.com/question/35090304
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Several years ago, Westmont Corporation developed a comprehensive budgeting system for planning and control purposes. While departmental supervisors have been happy with the system, the factory manager has expressed considerable dissatisfaction with the information being generated by the system. A report for the company's Assembly Department for the month of March follows: Assembly Department Cost Report For the Month Ended March 31 Actual Results Planning Budget Variances Machine-hours 25,000 30,000 Variable costs: Supplies $ 7,800 $ 8,400 $ 600 F Scrap 25,200 27,000 1,800 F Indirect materials 75,800 88,500 12,700 F Fixed costs: Wages and salaries 71,500 68,000 3,500 U Equipment depreciation 98,000 98,000 – Total cost $ 278,300 $ 289,900 $ 11,600 F After receiving a copy of this cost report, the supervisor of the Assembly Department stated, "These reports are super. It makes me feel really good to see how well things are going in my department. I can’t understand why those people upstairs complain so much about the reports." For the last several years, the company’s marketing department has chronically failed to meet the sales goals expressed in the company’s monthly budgets.
Answer:
Explanation:
Solution:
1.
These reports seems not be the correct tool to calculate the performance. These reports compared to the main performance against the budgeted / planned sales level and budget or standard are not adjusted for under achievement of sales. If sales are less then variable cost should also be incurred less and its not wise to compare the main cost for lower sale volumes against budgeted expenses against higher sales revenue.
2.
The budget figure or benchmark figures for the variable expenses should be adjusted for actual level of revenue and then actual expenses incurred should be compared and variance should be calculated
3.
Revised performance report: Planning Adjusted Actual Budget budget result Variance Machine hours 40000 35000 Variable cost: 32000 28000 29700 1700 (A) Supplies scrap 20000 17500 19500 2000 (A) Indirect
Mobility Partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchairs. A local bicycle manufacturing firm, Trailblazers, Inc., offered to sell these rear wheel assemblies to Mobility. If Mobility makes the assembly, its cost per rear wheel assembly is as follows (based on annual production of 1,800 units):
Direct materials $25
Direct labor 53
Variable overhead 16
Fixed overhead 47
Total $141
Trailblazers offered to sell the assembly to Mobility for $110 each. The total order would amount to 2,000 rear wheel assemblies per year, which Mobility's management will buy instead of make if Mobility can save at least $10,000 per year. Accepting Trailblazers's offer would eliminate annual fixed overhead of $40,000.
Required:
a. Prepare a schedule that shows the differential costs on the 2,000 rear wheel assemblies order.
b. Should Mobility make rear wheel assemblies or buy them from Trailblazers?
Answer:
a. The preparation of schedule that shows the differential costs is shown below:-
b. Decision : Make
Explanation:
Particulars Make the Buy from Differential
Wheels trailblazers cost
Offer of
trailblazer $220,000 $220,000 Higher
(2,000 × $110)
Material cost $50,000 $50,000 Lower
($25 × 2,000)
Labor cost $106,000 $106,000 Lower
($53 × 2,000)
Variable
overhead $32,000 $32,000 Lower
($16 × 2,000)
Fixed
overhead $94,000 $54,000 $40,000 Lower
($47 × 2,000) ($94,000 - $40,000)
Total cost $282,000 $274,000 ($8,000) Lower
Working Note:-
1) Fixed overhead applied = $47 × 2,000 = $94000
Decision : Make
Total saving from accepting the accepting the offer of trailblazer = $8,000
Cost saving required to accept the offer of trailblazer = $10,000
Decision - Make (Since actual savings are less than savings required by $2,000)
Lopez Company has a single employee, who earns a salary of $192,000 per year. That employee is paid on the 15th and last day of each month. On January 15, Lopez is subject to the following payroll taxes: FICA–Social Security Taxes (at 6.2% of the first $118,500 each employee earns in the calendar year), FICA–Medicare Taxes (at 1.45%), FUTA (at 0.6% of the first $7,000 each employee earns in the calendar year), and SUTA (at 5.4% of the first $7,000 each employee earns in the calendar year). The journal entry to record the employer's payroll tax expense and related liabilities would include a debit to:
The employer's payroll tax expense on January 15th would include the monthly allocation of the annual FICA-Social Security Tax, the single month's FICA-Medicare Tax, and the single month's FUTA and SUTA taxes.
Explanation:The employee's annual salary at Lopez Company is $192,000, which means the monthly salary is $192,000/12 = $16,000. Given that Social Security tax applies to the first $118,500 of an employee's annual earnings, the Social Security tax for this employee would be $118,500 * 6.2% = $7,347 for the year, or $612.25 per month. The Medicare tax rate is applied to all earnings, so it is $16,000 * 1.45% = $232 per month. In terms of FUTA and SUTA, both taxes only apply to the first $7,000 of an employee's annual earnings, so the employer's liability for these taxes will be entirely covered in the first month of the year at rates of 0.6% (FUTA) and 5.4% (SUTA). Therefore, on January 15th, the employer's payroll tax expense would incur a debit to Payroll Tax Expense of the sum of all these monthly taxes.
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Tina's Apple Company would like to manufacture and market a new packaging. Tina's has sold an issue of commercial paper for $1,500,000 and maturity of 90 days to finance the new project. Compute the annual interest rate on the issue of commercial paper if the value of the commercial paper at maturity is $1,650,000 (assuming 360 days in a year).
Answer:
40%
Explanation:
Tina's Apple Company would like to manufacture and market a new packaging. Tina's has sold an issue of commercial paper for $1,500,000 and maturity of 90 days to finance the new project. Compute the annual interest rate on the issue of commercial paper if the value of the commercial paper at maturity is $1,650,000 (assuming 360 days in a year).
Interest paid = $1,650,000 - 1,500,000
= $150,000
Annual interest rate = ($150,000/$1,500,000) (360/90)
= 40%
Which of the following would, generally, indicate an improvement in a company's financial position, holding other things constant? a. The EBITDA coverage ratio increases. b. The current and quick ratios both decline. c. The total assets turnover decreases. d. The TIE declines. e. The DSO increases.
Answer:
The correct answer is letter "A": The EBITDA coverage ratio increases.
Explanation:
The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) ratio is an accounting indicator that measures the profitability of a company. It is calculated by subtracting the costs of goods sold and administrative expenses from the firm's income. The EBITDA is typically used to value the capacity for generating benefits of an entity considering only its productive activity because it indicates the returns obtained from the direct exploitation of the business.
Therefore, if the EBITDA of a firm increases it is because its financial position has possibly increased.
Final answer:
An increase in the EBITDA coverage ratio typically suggests an improvement in a company's financial position by indicating better earnings relative to its operating costs. Other options such as declining liquidity ratios, asset turnover, and ability to cover interest expenses generally signify financial weakness.
Explanation:
Among the given options, an increase in the EBITDA coverage ratio would generally indicate an improvement in a company's financial position, holding other things constant. This ratio measures a company's ability to pay off its operating expenses, not including taxes, interest, depreciation, and amortization with its operating profit. A higher EBITDA coverage ratio suggests the company is generating sufficient earnings to cover its operating costs, which is a positive sign of financial health. Option A
In contrast, declining current and quick ratios imply weakening short-term liquidity, a decrease in total assets turnover indicates less efficiency in using assets to generate revenue, a decline in the TIE (times interest earned) suggests a decrease in the ability to cover interest expenses, and an increase in the DSO (days sales outstanding) implies slower collection of receivables, potentially affecting cash flow.
During 2020, Kate Holmes Co.'s first year of operations, the company reports pretax financial income at $250,000. Holmes's enacted tax rate is 45% for 2020 and 20% for all later years. Holmes expects to have taxable income in each of the next 5 years.The effects on future tax returns of temporary differences existing at December 31, 2020, are summarized:Future Years 2021 2022 2023 2024 Future taxable- (deductible)amounts:Installment Sales 32,000 ### 32,000 Depreciation 6,000 ### 6,000 6,000 Unearned Rent (50,000) ###Compute Taxable Income for 2020.
Final answer:
Kate Holmes Co.'s taxable income for 2020 is $250,000, the same as the reported pretax financial income, since the future taxable or deductible amounts from installment sales, depreciation, and unearned rent do not affect the current year's taxable income. The income tax expense for the year is calculated at a tax rate of 45%, which equates to $112,500.
Explanation:
To compute taxable income for Kate Holmes Co. for the year 2020, we need to consider the pretax financial income and apply the current tax rate as well as account for any temporary differences that will affect future tax liabilities. The pretax financial income reported by the company is $250,000. The enacted tax rate for 2020 is 45%.
However, there are temporary differences to consider, which consist of future taxable or deductible amounts arising from installment sales, depreciation, and unearned rent. For calculating the current year's taxable income, we look at the temporary differences that will reverse in the current year:
Future taxable amounts from installment sales would add to the taxable income in the future years and not affect the taxable income for 2020.Similarly, additional depreciation expenses would reduce taxable income in future years, but for 2020, we only consider the currently enacted tax rate and reported pretax financial income.Unearned rent represents income received but not earned in 2020, meaning it will be taxable when it is earned in future years.Therefore, the taxable income for Kate Holmes Co. in 2020 is the reported pretax financial income of $250,000, since none of the temporary differences listed will reduce or increase the taxable income for 2020.
The income tax expense at the enacted tax rate of 45% on the taxable income of $250,000 would be:
Income Tax Expense = Taxable income × Tax rate
Income Tax Expense = $250,000 × 0.45
Income Tax Expense = $112,500
This expense would be reported on the company's income statement for 2020.
The slope of an isocost line ________ and equals the negative of ________. Select one: a. is constant; the ratio of the marginal products b. decreases as we move down the line; the ratio of the marginal products c. is constant; the ratio of input prices d. increases as we move down the line; the ratio of input prices
Final answer:
The slope of an isocost line is constant and equals the negative of the ratio of input prices. This slope does not change as we move down the line, highlighting that the expenditure on inputs remains constant.
Explanation:
The slope of an isocost line is constant and equals the negative of the ratio of input prices. An isocost line represents all combinations of inputs that a firm can purchase for a given total cost. As the price of one input increases, the isocost line becomes flatter, indicating a shift towards a more intensive use of the other, relatively cheaper input. Notably, isocost lines do not change slope as we move along them because they represent constant expenditure levels; therefore, the slope remains the same regardless of the quantities of inputs.
Cost minimization requires the tangency between an isoquant and an isocost line, signifying that the input price ratio must equal the marginal rate of technical substitution (MRTS), which is the amount of one input required to replace a decrease in another input while holding output constant. This also implies that the marginal rate of technical substitution (the slope of the isoquant) must equal the negative of the ratio of input prices (the slope of the isocost line) at the point of tangency for efficient production.
The following information relates to the operations of Cruz Manufacturing during the current year: Raw materials used $ 20,000 Direct labor wages 60,000 Sales salaries and commissions 50,000 Depreciation on production equipment 4,000 Rent on manufacturing facilities 30,000 Packaging and shipping supplies 6,000 Sales revenue 190,000 Units produced and sold 10,000 Selling price per unit $ 20.00 Based on this information, what is the company's cost of goods sold?
Answer:
the company's cost of goods sold is $120,000
Explanation:
Note : all units produced are sold (10,000)
Therefore Cost of goods sold is equal to Cost of Goods Manufactured
Calculation of Cost of Goods Manufactured
Raw materials used 20,000
Direct labor wages 60,000
Depreciation on production equipment 4,000
Rent on manufacturing facilities 30,000
Packaging and shipping supplies 6,000
Total 120,000
Answer: $114,000
Explanation:
To calculate the Cost of Goods sold we would first needs to know Product Costing in Manufacturing firms.
The formula for which is,
Product Costing = (Materials cost + Labor costs + Overhead costs) ÷ Number of units produced
It is important to calculate this because when multiplied by the number of units SOLD, you get Cost of goods sold.
Calculating therefore would be,
Product Costing = 20,000 + 60,000 + (4,000 + 30,000) depreciation and rent on manufacturing facilities ÷ 10,000 units produced
= $11.40 per unit
Now we can calculate the Cost of goods sold by,
Cost of goods sold = Number of units sold × Product Costing in Manufacturing Companies
Cost of goods sold = 10,000 units sold × 11.40
= $114,000
The company's cost of goods sold is $114,000.
The movie theater in your neighborhood charges lower ticket prices to senior citizens than to other patrons. Assuming that this pricing strategy increases the profits of the movie theater, we can conclude that senior citizens must have ________ for movie tickets than other patrons. greater demand lower demand more elastic demand less elastic demand
Answer:
More elastic
Explanation:
Demand is elastic if a small change in price has a greater effect on the quantity demanded.
Demand is inelastic if a small change in price has little or no effect on quantity demanded.
The senior citizens have an elastic demand because when price was reduced, the profits earned by the theatre increased. This means the Quanitity demanded of movie tickets increased.
If demand were inelastic and prices were reduced, profits would fall.
I hope my answer helps you
In economics, what is the meaning of the phrase 'the tragedy of the commons?' Goods that are not rivalrous but are excludable are under‐produced by private markets, often with consequences that reduce social welfare. People will overuse or misuse a common resource that is not excludable but is rivalrous. It serves the common good to produce items that are neither rivalrous nor excludable, but profit‑maximizing firms will not produce such products. In market economies products are often similar and common, so the government must actively attempt to create variety in goods and services. In decisions involving intellectual property rights, policy-makers must compromise in order to reach common ground among competing interest groups.
Answer:
People will overuse or misuse a common resource that is not excludable but is rivalrous.
Explanation:
The tragedy of the commons occurs when due to lack of regulation, either self-imposed, or imposed by a central authority, leads to the excessive use of a common good, that does not exclude users from its enjoyment, but that is rivalrous: the use of one user prevents the use of another user, and can lead to depletion.
A classical example of the tragedy of the commons is what happens with global maritime fish stocks. The global stock of fish is virtually non-excludable as long as a person or firm has the means necessary to exploit it: a ship, a net, workers, and so on.
Howerver, the global stock of fish can be depleted, as is the case in some areas of the world. This depletion prevents current and future users from catching and consuming fish.
The Tragedy of the Commons refers to the overuse or depletion of a common resource due to individuals acting in their own interest rather than the common good. However, the situation can be managed better when beneficiaries are in immediate proximity to the resource. This issue is particularly challenging at international levels where beneficiaries are scattered.
Explanation:The Tragedy of the Commons is an economic theory that describes the situation in which individuals deplete a shared resource by acting in their own best interest, contrary to the common good, leading to resource depletion. This theory is primarily associated with common goods, which are not excludable but may be finite, like forests, water, and fisheries. This is because no one owns them, no one directly bears the cost of depletion, resulting in overuse and misuse of the resources.
It is worth mentioning the work of Elinor Ostrom, the first woman to receive the Nobel Prize in Economics, who provided an alternative viewpoint to this theory. According to Ostrom, when beneficiaries of a resource are in its immediate vicinity, they are more likely to manage the resource effectively without external influence. They can develop communication and cooperation mechanisms that prevent depletion of the resource.
However, in international systems, where beneficiaries are often scattered across different territories, it's more challenging to manage these resources. The international system has difficulties in convincing individual members to take responsibility for solving collective problems, which, in turn, exacerbates the Tragedy of the Commons.
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The exchange rate at the beginning of a year between the Indian Rupee (R) and the U.S. dollar is R43.125/$. The annual inflation rates in India and in the United States are 19 percent and 3 percent respectively. What would be the new exchange rate at the end of the year? R37.327/$ R0.0267/$ R49.8224/$ $37.327/R
Answer:
The correct answer is R49.8224/$.
Explanation:
According to the scenario, the computation of the given data are as follows:
Exchange rate at beginning = R43.125/$
Inflation rate in India = 19%
Inflation rate in U.S. = 3 %
So, we can calculate the New exchange rate by using following formula:
New exchange rate = Beginning exchange rate × (Inflation A ÷ Inflation B)
= R 43.125 × (1.19 ÷ 1.03)
= R 49.8224/$
CT Stores has debt with a book value of $325,000 and a market value of $319,000. The firm's equity has a book value of $526,000 and a market value of $684,000. The tax rate is 21 percent and the cost of capital is 11.2 percent. What is the market value of this firm based on MM Proposition I without taxes
Answer:
$1,003,000
Explanation:
Market Value of firm=Market value of equity+ market value of debt
=684,000+319,000
=$1,003,000
Three critical factors have combined to accelerate the ecological crisis facing the world community and to make sustainable development more difficult. Explain and discuss these three factors.
Answer:
1-population explosion
2- world poverty and income inequality
3- rapid growth of many development nations
Explanation:
This is an issue that must be analyzed according to a historical context in the world.
The industrial revolution was a milestone in the world with regard to the population explosion, this was due to technological innovations that occurred after the industrial revolution, as there were different labor relations, difference in the way of man producing and greater availability of food.
From then on, the rural exodus begins, with people migrating from the countryside to urban areas, in order to obtain greater job opportunities.
The industrial revolution has revolutionized the world until today, since then a capitalist context has emerged, where there is the enrichment of entrepreneurs and the insertion of large companies in developing countries and consequently the increase in income inequality and poverty.
So these are the three factors that integrated were combined to accelerate the ecological crisis of the global community and hinder sustainable development, because in the eagerness of industrial development and income generation, combined with the population's desire for production, sustainable development was a factor that could mean a barrier to production and rampant consumerism.
You were hired by a small business as the project manager of a project involving a market analysis. This project will determine whether the company goes ahead with the large scale manufacturing of a brand new product. The activities of the project are described below, with their respective durations:
ID Description Duration (2 weeks) Predecessor
A Survey designed 2 None
B Pilot 1 A
C Data collection 3 A
D Data Processing 1 B, C
E Analyze survey Results 2 D
F Analyze market trends 3 D
G Demographics 2 E
H Report and Presentation 2 F, G
Draw a project network with this information.
Answer:
Explanation:
check the attached files
Consider that you own the following position at the beginning of the year: 200 shares of US Bancorp at $29.89 per share, 300 shares of Micron Technology at $13.31 per share, and 250 shares of Hilton Hotels at $24.11 per share. During the year, US Bancorp and Hilton Hotels both paid a dividend of $1.39 and $0.16, respectively. At the end of the year, the stock prices of US Bancorp, Micron, and Hilton Hotels were $36.19, $13.12, and $34.90, respectively. What are the dollar and percentage return of the stocks and the return of the portfolio
Answer:
Dollar return of US Bancorp = $7.69
Explanation:
A Dollar return of US Bancorp = $36.19 - $29.89 + $1.39 = $7.69
Total Dollar return of US Bancorp = $7.69 * 200 = $1,538
Percentage return of US Bancorp percentage return = ($7.69/$29.89) * 100 = 25.72%
B Dollar loss of Hilton Hotels = $13.12 - $13.31 = - $0.19
Total Dollar loss of Hilton Hotels = - $0.19 * 300 = - $57.00
Percentage loss of Hilton Hotels = (-$0.19/$13.31) * 100 = 1.43%
C Dollar return of Hilton Hotels = $34.90 - $24.11 + $0.16 = $10.95
Total Dollar return of Hilton Hotels = $10.95 * 250 = $2,737.50
Percentage return of Hilton Hotels = ($10.95/$24.11) * 100 = 45.42%
On March 1, 2021, Beldon Corporation purchased land as a factory site for $60,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2021. Costs incurred during this period are listed below: Demolition of old building $ 4,000 Architect’s fees (for new building) 12,000 Legal fees for title investigation of land 2,000 Property taxes on land (for period beginning March 1, 2021) 3,000 Construction costs 500,000 Interest on construction loan 5,000 Salvaged materials resulting from the demolition of the old building were sold for $2,000. Required: Determine the amounts that Beldon should capitalize as the cost of the land and the new building.
Answer:
The amount that Beldon should capitalize as the cost of the land is $64,000 and as the cost of the new building is $517,000.
Explanation:
Capitalized cost of land
Purchase price $60,000
Demolition of old building $4,000
Less: Sale of materials $2,000 $2,000
Legal fees for title investigation $2,000
Total cost of land $64,000
Capitalized cost of building :
Construction costs $500,000
Architect's fees $12,000
Interest on construction loan $5,000
Total cost of building $517,000
Therefore, The amount that Beldon should capitalize as the cost of the land is $64,000 and as the cost of the new building is $517,000.
The costs capitalized for the land and new building by Beldon Corporation are $67,000 and $517,000, respectively.
Explanation:Beldon Corporation can capitalize the costs related to the purchase and preparation of land and the construction of the new building. The cost of the land includes the purchase price of $60,000, demolition costs for the existing building ($4,000), legal fees for title investigation ($2,000), and property taxes from the purchase date March 1, 2021 ($3,000). However, the $2000 from the sale of salvaged materials should be deducted from the land cost resulting in a final capitalized land cost of $67,000.
The capitalized cost of the new building includes the construction costs of $500,000, architect's fees ($12,000), and interests on the construction loan ($5,000). This results in a total capitalized building cost of $517,000.
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The welding department supplies parts to the final assembly line. Management decides to implement a kanban system and has collected the following data: • The daily demand is 2000 units. • The production lead time is 4 days (this includes processing time, transport time, and waiting time). • Management has decided to have 1 day of safety stock. • One container fits 400 units. How many kanban containers will be needed to support this system?
Answer:
25 containers
Explanation:
The computation of the number of kanban containers required is shown below:
= (Lead time demand + Safety stock) ÷ Container size
where,
Lead time demand is
= 2,000 units × 4 days
= 8,000 units
Container size = 400 units
Safety Stock is
= 1 day × 2,000 units
= 2,000 units
So, the number of kanban containers required is
= (8,000 units + 2,000 units) ÷ (400 units)
= 25 containers
We simply applied the above formula
Horton Industries’ shareholders’ equity included 100 million shares of $1 par common stock and a balance in paid-in capital—excess of par of $900 million. Assuming that Horton retires shares it reacquires (restores their status to that of authorized but unissued shares), by what amount will Horton’s total paid-in capital decline if it reacquires 2 million shares at $8.50 per share?
Answer:
The common stock would decline by $2 million
The paid in capital in excess of par would decline by $15 million
The share capital would decline by $17 million
Explanation:
The balance in common stock would decline by the par value of the 2 million shares reacquired in the year,that is 2 million*$1=$2,000,000
However balance in the paid-in share capital in excess of par would decline by $7.5 for each of the 2 million shares reacquired i.e 2 million *$7.5=$15,000,000
However the total reduction in share capital of Horton Industries is the sum of the reduction in common stock of $2 million and the reduction in paid-in capital in excess of par of $15 million i,e $17 million
Final answer:
The decline in Horton Industries' total paid-in capital after reacquiring 2 million shares at $8.50 per share would be $15 million, calculated by the excess of the repurchase price over the par value multiplied by the number of shares reacquired.
Explanation:
The subject matter in question refers to Horton Industries’ shareholders’ equity and its decrease as a result of the company reacquiring its own shares. Calculating the decline in total paid-in capital involves considering the number of shares repurchased and the price paid for each share.
Horton Industries plans to reacquire 2 million shares at $8.50 per share. The shares have a par value of $1, meaning that each share has $7.50 ($8.50 - $1 par value) attributed to paid-in capital—excess of par. Multiplying this excess by the number of shares gives us the total decline in paid-in capital, which is $15 million (2 million shares x $7.50).
Therefore, when Horton reacquires the 2 million shares at $8.50 per share, the total paid-in capital will decline by $15 million.
"In the economy of OKC in 2008, consumption was $3000, GDP was $5500, government purchases were $1000, imports were $2000, and investment was $1000. What were OKC’s exports in 2008?"
Answer:
Expert will be equal to $2500
Explanation:
We have given consumption = $3000
GDP is given $5500
Government purchase = $1000
Import = $2000
There is an investment of $1000
We have to find the export
We know that GDP is given by
GDP = consumption + investment + government purchase + export- import
5500 = 3000+1000+1000+export - 1000
Export = $2500
So expert will be equal to $2500
The following stockholders’ equity accounts, arranged alphabetically, are in the ledger of Sarasota Corp. at December 31, 2022.
Common Stock ($2 stated value) $2,400,000
Paid-in Capital in Excess of Par Value—Preferred Stock 67,500
Paid-in Capital in Excess of Stated Value—Common Stock 1,575,000
Preferred Stock (5%, $100 par, noncumulative) 900,000
Retained Earnings 2,001,000
Treasury Stock (18,000 common shares) 108,000
Prepare the stockholders’ equity section of the balance sheet at December 31, 2022.
Answer and Explanation:
The preparation of the stockholder equity section of the balance sheet is presented below:
Stockholders' equity
Paid in capital
Capital stock
5% preferred stock, $100 par value, noncumulative, 9,000 shares are issued and outstanding $900,000
Common stock, no par, $2 stated value, $2,400,000
Total capital stock $3,300,000 (A)
Additional paid in capital
Paid-in Capital in Excess of Par Value $67,500
Paid-in Capital in Excess of Stated Value - Common Stock $1,575,000
Total additional paid in capital $1,642,500 (B)
Total paid in capital $4,942,500 (A + B)
Add: Retained earnings $ 2,001,000
Total paid in capital and retained earnings $6,943,000
Less: Treasury stock (18,000 common shares) $(108,000)
Total stockholders' equity $6,835,500
Stockholders' equity
Paid in capital
Capital stock
5% preferred stock, $100 par value, noncumulative, 9,000 shares are issued and outstanding $900,000
Common stock, no par, $2 stated value, $2,400,000
Total capital stock $3,300,000 (A)
Additional paid-in capital
Paid-in Capital - in Excess of Par Value $67,500
Paid-in Capital in Excess of Stated Value - Common Stock $1,575,000
Total additional paid in capital $1,642,500 (B)
Total paid in capital $4,942,500 (A + B)
Add: Retained earnings $ 2,001,000
Total paid in capital & retained earnings $6,943,000
Less: Treasury stock (18,000 common shares) $(108,000)
Total stockholders' equity $6,835,500
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Bailey Company has $200,000 of accounts receivable on December 31. The unadjusted balance of its Allowance for Doubtful Accounts is a debit of $9,000. An aging of its accounts receivable suggests that $12,000 of its receivables will be uncollectible. The amount that should be debited to Bad Debt Expense and credited to Allowance for Doubtful Accounts in the year-end adjusting entry is
a. $3,000
b. $21,000
c. $9,000
d. $14,000
e. $23,000
Answer:
b. $21,000
Explanation:
When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
Where a debit that had previously been determined to have gone bad gets settled, debit cash and credit bad debt expense.
The amount that should be debited to Bad Debt Expense and credited to Allowance for Doubtful Accounts in the year-end adjusting entry is the sum of the debit balance in the Allowance for Doubtful Accounts and the amount suggested by the aging of receivables.
= $9,000 + $12,000
= $21,000
Final answer:
The correct amount to be debited to Bad Debt Expense and credited to Allowance for Doubtful Accounts for the year-end adjusting entry is $21,000. This amount corrects the previous debit balance and accounts for the current period's estimated uncollectible receivables.
Explanation:
To calculate the rightful amount to be debited to Bad Debt Expense and credited to Allowance for Doubtful Accounts, we first need to address the existing debit balance of $9,000 in the allowance account. This unusual debit balance suggests that previously, the amount of bad debts that occurred were greater than what was anticipated and provided for. Therefore, it is necessary to eliminate this debit balance and also set up the appropriate allowance for the current period's anticipated uncollectable receivables, which is estimated to be $12,000. Therefore, the adjusting entry must first remove the existing $9,000 debit balance in the Allowance for Doubtful Accounts and then add the additional $12,000 that is expected to be uncollectable, resulting in a total entry to Bad Debt Expense of $21,000 ($9,000 to cancel out the debit balance + $12,000 for current period estimation). The journal entry would look like this:
Debit Bad Debt Expense: $21,000Credit Allowance for Doubtful Accounts: $21,000This action will leave the correct credit balance in the Allowance for Doubtful Accounts and accurately reflect anticipated uncollectable accounts receivable.
Data pertaining to a company's joint production for the current period follows: L M Quantities produced 200 lbs. 150 lbs. Market value at split-off point $ 8 /lb. $ 16 /lb. Compute the cost to be allocated to Product M for this period's $660 of joint costs if the value basis is used. Multiple Choice $264. $396. $330. $1,364. $796.
Answer:
Joint cost value based = $396
Explanation:
Given:
Company L M
Quantities produced 200 lbs 150 lbs
Market value $8/lb $16/lb
Total joint cost = $660
Computation:
Market value of L = 200 lbs × $8/lbs
Market value of L = $1,600
Market value of M = 150 lbs × $16/lbs
Market value of M = $2,400
Total market value = Market value of L + Market value of M
Total market value = $1,600 + $2,400
Total market value = $4,000
Joint cost value based = $660 × ($2,400 / $4,000)
Joint cost value based = $396
Kohlman Company began its operations on March 31 of the current year. Projected purchases for the first three months of business are $156,800, $195,200, and $217,600, respectively, for April, May, and June. Admin expenses represent $28,800 of the estimated monthly payments. Seventy-five percent (75%) of the purchases are expected to be paid in the month in which they are purchased. Twenty percent (20%) will be paid in the following month. Five percent (5%) is expected to be uncollectable. The cash payments for the month of April and May are:
a. $185,600 and 224,000
b. $117,600 and 146,600
c. $146,400 and 206,560.
d. $156,800 and 195,000
Answer:
c. $146,400 and 206,560.
Explanation:
Monthly Purchases are as follows;
April =$156,800
May= $195,200
June= $217,600
Since Admin expenses are paid every month,
April =$28,800
May = $28,800
June =$28,800
75% of April purchases will be paid in April . Use these to calculate the payments;
Pmts
April = 75%* $156,800 = $117,600
add Admin expenses to find total cash payments;
APRIL = $117,600+ $28,800 = $146,400
In May,20% of April purchases will be paid , 75% of May purchases will also be paid plus admin expenses. Use these to calculate the payments;
May= (20%* $156,800) + (75% * $195,200) + $28,800
MAY = 31360 +146400 +28800 = $206,560
Divine Apparel has 2,200 shares of common stock outstanding. On October 1, the company declares a $0.50 per share dividend to stockholders of record on October 15. The dividend is paid on October 31.
Required:
a. Record all transactions on the appropriate dates for cash dividends.
Answer:
October 1
Dr Dividends 1,100
Cr Dividends payable 1,100
October 15
No journal entry required 0
No journal entry required 0
October 31
Dr Dividends payable 1,100
Cr Cash 1,100
Explanation:
Divine Apparel
General Journal
October 1
Dr Dividends 1,100
Cr Dividends payable 1,100
October 15
No journal entry required 0
No journal entry required 0
October 31
Dr Dividends payable 1,100
Cr Cash 1,100
Dividends: 2,200 shares × $0.50 = $1,100
Dividends Payable: 2,200 shares × $0.50 = $1,100
In order to package one of their products, Acme Box Co. needs to construct a box whose bottom side has length 3 times its width. The material used to build the top and bottom of the box cost $10 per square foot, while the material used to build the four sides of the box cost $6 per square foot. The box must have a volume of 50 cubic feet. (a) In terms of the length ` of the bottom, the width w of the bottom and the height h of the box (all measured in feet), write a formula for the cost C (in dollars) to construct a box of length `, width w and height h. (b) Given the other conditions specified in the problem, express C as a function of a single variable. (c) Determine the dimensions of the box that minimize the cost. Be sure to justify that you have found dimensions that produce the minimum cost. (You’ll be fired if you submit the maximum cost to your boss!) To the nearest dollar, how much will it cost to build the box at these dimensions?
Answer:
(a)Total Cost, C=20LW+12LH+12WH
(b)[tex]C(W)=\dfrac{60W^3+800}{W}[/tex]
(c)W=1.88ft, L=5.64 ft and H=4.72 ft.
[tex]Minimum \:cost, C\approx \$638 $ (to the nearest dollar)$[/tex]
Explanation:
Given the dimensions of the box to be L,W and H.
(a)
The material for the top and bottom of the box cost $10 per square footThe material used to build the four sides of the box cost $6 per square foot.Area of Top and Bottom=2LWCost of Top and bottom=$10 X 2LW=20LWArea of four Sides =2(LH+WH)Cost of Four Sides =$6*2(LH+WH)=12(LH+WH)Total Cost, C=20LW+12LH+12WH(b)The bottom side has length 3 times its width.
L=3W
Volume of the box=50 cubic feet.
[tex]Volume,V=LWH=3W^2H[/tex]
[tex]3W^2H=50\\H=\dfrac{50}{3W^2}[/tex]
Substituting L=3W and [tex]H=\dfrac{50}{3W^2}[/tex] into the cost function C.
C=20LW+12LH+12WH
[tex]C=20LW+12LH+12WH\\=20*3W*W+12*3W*\dfrac{50}{3W^2}+12W*\dfrac{50}{3W^2}\\=60W^2+\dfrac{600}{W}+\dfrac{200}{W}\\=\dfrac{60W^3+600+200}{W}\\C(W)=\dfrac{60W^3+800}{W}[/tex]
(c)The minimum cost occurs at the point where the derivative of the cost function equals zero.
[tex]If\:C(W)=\dfrac{60W^3+800}{W}\\C'(W)=\dfrac{120W^3-800}{W^2}=0\\120W^3-800=0\\120W^3=800\\W^3=\frac{800}{120}\\ W=1.88[/tex]
Recall:
[tex]L=3W=5.64 feet\\H=\dfrac{50}{3W^2}=\dfrac{50}{3(1.88)^2}=4.72 ft[/tex]
The dimensions of the box that minimize the cost are W=1.88ft, L=5.64 ft and H=4.72 ft.
Cost of the box at these dimension
[tex]C(W)=\dfrac{60W^3+800}{W}\\C(1.88)=\dfrac{60(1.88)^3+800}{1.88}\approx \$638 $ (to the nearest dollar)$[/tex]
To the nearest dollar, it will cost approximately $388 to build the box with dimensions that minimize the cost.
Let's break down the problem step by step:
a) The cost C (in dollars) to construct the box can be expressed as a formula based on the dimensions of the box.
Let's denote:
- Length of the bottom = L (measured in feet)
- Width of the bottom = W (measured in feet)
- Height of the box = H (measured in feet)
The area of the top and bottom of the box is L * W, and the area of the four sides is 2 * (L + W) * H.
The total cost C can then be expressed as:
[tex]\[ C = 2 * (L * W * 10) + 2 * (L + W) * H * 6 \][/tex]
b) Expressing C as a function of a single variable involves using the given volume constraint. Since the volume V of the box is 50 cubic feet, we have:
[tex]\[ V = L * W * H = 50 \]\[ H = \frac{50}{L * W} \][/tex]
Substitute the expression for H into the cost formula:
[tex]\[ C(L, W) = 2 * (L * W * 10) + 2 * (L + W) * \frac{50}{L * W} * 6 \][/tex]
Simplify to get the cost as a function of a single variable.
c) To minimize the cost, we can take the derivative of C(L, W) with respect to one of the variables (L or W), set it equal to zero, and solve for the critical point.
Let's differentiate C(L, W) with respect to L:
[tex]\[ \frac{dC}{dL} = 20W - \frac{600}{W^2} \][/tex]
Setting the derivative equal to zero:
[tex]\[ 20W - \frac{600}{W^2} = 0 \][/tex]
Solving for W:
[tex]\[ 20W = \frac{600}{W^2} \]\[ W^3 = 30 \]\[ W = \sqrt[3]{30} \approx 3.11 \text{ feet} \][/tex]
Similarly, differentiate C(L, W) with respect to W and solve for L:
[tex]\[ \frac{dC}{dW} = 20L - \frac{600}{L^2} \]\[ 20L - \frac{600}{L^2} = 0 \]\[ L^3 = 30 \]\[ L = \sqrt[3]{30} \approx 3.11 \text{ feet} \][/tex]
So, the dimensions that minimize the cost are approximately L = W = 3.11 feet. To find the minimum cost, substitute these values into the cost formula:
[tex]\[ C(L, W) = 2 * (3.11 * 3.11 * 10) + 2 * (3.11 + 3.11) * \frac{50}{3.11 * 3.11} * 6 \]\[ C(L, W) = 192.20 + 196.23 \]\[ C(L, W) \approx 388.43 \text{ dollars} \][/tex]
Therefore, to the nearest dollar, it will cost approximately $388 to build the box with dimensions that minimize the cost.