Invenco, Inc, is experiencing a substantial backlog, and the firm's management is considering two courses of action. The first is to arrange subcontracting that it could cost $5 million to establish the logistics and quality control mechanism. If demand for new products is low, the company expects to receive $8 million in revenues with the subcontracting approach. On the other hand, if demand is high, it expects $15 million in revenues with the subcontracting approach. The second option is to build a plant at a cost of $8 million. Were demand to be low, the company would expect $10 million in revenues with the plant. If demands are high the company estimates that the discounted revenues would be $20 million. In either case, the probability of demand being high is .60, and the probability of it being low is .40. Not constructing a new factory would result in no additional revenue being generated because the current factories cannot produce these new products. Construct a decision tree to help Invenco make the best decision. What is the expected net profit for building a plant?

Answer:

"While budgeted costs refer to the cost, at standard, for the total number of budgeted units. "

Explanation:

The first sentence would be the correct one

The budget consist of get the revenues and costs for the business using the standard measurement for one unit.

Please be more clear in future questions, thank you =)

Answer:

The given statement is True. Online Aggregators are more comprehensive than the home listing service that real estate agents use.

Explanation:

Online aggregators are the programs or sites in the digital space which collects related items of content and link them and show them through their sites or programs.

Online aggregators puts the most relevant information that people are looking for. They link different aspects with each other to help people take decisions, like in this question, regarding the real estate.

Real Estate agents don't tell certain information to the client due to some laws or some insecurities of loosing the clients, but online aggregators make each and everything clear and even finds links between the choices of homes and display them on their sites. For example, an online aggregator may list the houses that are near to schools, hospitals, community service centers and also put the ranking of those schools and other services in that area, they tell the crime rate in that area, security, etc. But all such things are usually kept hidden by the real estate agents due to some overly restricted codes in their agreement of the licence from the government.

It is true!

Further Explanation:

Online aggregators:

A substance aggregator is an individual or association that assembles web content (or potentially at times applications) from various online hotspots for reuse or resale.  

online aggregators more extensive than the home posting administration:

Online Aggregators are more exhaustive than the home posting administration that realtors use. Clarification: Online aggregators are the projects or locales in the computerized space which gathers related things of substance and connection them and show them through their destinations or projects.  

Aggregators:

In the computerized fund environment, aggregators work as the paste that enables substances to like organizations, governments and benefactors effectively associate with an assortment of installment stages like portable cash administrations or banks and the clients who pay by means of those administrations.  

The reason for an aggregator:

A substance aggregator is an individual or association that assembles Web content (as well as at times applications) from various online hotspots for reuse or resale.  

Aggregator model:  

An aggregator model is a type of E-Commerce in which a site does not store or distribution center its own merchandise, yet rather gathers, or totals, data on a few products and ventures and combinations them into a solitary stage.

Subject: business

Level: college

Keywords: online aggregators, online aggregators more extensive than the home posting administration, Aggregators, The reason for an aggregator, Aggregator model.

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Answer:

$22,300

Explanation:

Assuming that the net income that is stated here was after the payment of all debt obligations (e interest payment and preference share dividends) then this is all income that belongs to shareholders. This income can either be distributed as dividends or retained in the business  for future projects and would increase the value of equity in the balance sheet.

Out of the $30,300 net income, if only $8,000 was retained this year then the implication is that the difference between $30,300 and $8,000 was payed out as dividends.

[tex]Dividends paid =$30,300-$8,000 = $22,800[/tex]

Final answer:

The dividends distributed were calculated to be $22,300, which is the difference between the net income of $30,300 and the ending retained earnings of $8,000.

Explanation:

If there was no beginning retained earnings and the net income is $30,300, with ending retained earnings being $8,000, the dividends paid can be calculated as follows:

Dividends = Beginning Retained Earnings + Net Income - Ending Retained Earnings

Since the beginning retained earnings are $0, we can simplify the equation to:

Dividends = $0 + $30,300 - $8,000

Dividends = $30,300 - $8,000

Dividends = $22,300

Therefore, the amount of dividends that were distributed is $22,300.

Answer:

He should provide catered food for homeless on weekly basis.

Explanation:

Impromptu catering was founded by Dominic, who is an emerging entrepreneur in the catering business. He is famous for his deadlines which provides catering and decoration services in less than a 24 hour deadline. The company has grown to 150% in just one year. Dominic gives his success credit to the strategies of prominent social entrepreneur which he studied over the years. So he should also do something unique that would make him demonstrate or exemplify the social entrepreneurship model. So he should provide catered food to the homeless people on weekly basis. This would set an example for others as well.

Dominic can model his impromptu catering company on social entrepreneurship by adopting sustainable practices, fair employment, charitable contributions, and possibly a 'One for One' model to create social value alongside business growth.

Focusing on key principles such as sustainable sourcing, equitable employment practices, and contributing to social causes, Dominic's impromptu catering business could align with the ethos of companies like The Body Shop, Ben & Jerry's, and Newman's Own. These companies have successfully merged commercial success with a steadfast commitment to social impact, with initiatives like using natural and responsibly sourced ingredients, maintaining a fair pay scale, and donating profits to charity. Following the example of TOMS Shoes, Dominic could also consider a 'One for One' model, where for every event catered, his company provides a healthy meal to those in need, thereby turning every business transaction into a moment of social contribution.

Moreover, Dominic should consider transparency, ensuring that his customers are aware that while his business is for-profit, it operates with a strong commitment to social values. By embodying these qualities and engaging in activities that carry out substantial social change, Dominic's venture could serve as a paradigm of social entrepreneurship, thus redefining the landscape of catering services with a socially responsible business model.

Answer:

Given:

Firm with an average Price/Earning-Growth(PEG) ratio of 1.6, the stock price is Overpriced, because it has Price/Earning-Growth(PEG) ratio of 1.

where;

PEG = [tex]\frac{Price/Earning}{Earning\:Grtowth\:Rate}[/tex]

Price/Earning ration = [tex]\frac{Share Price}{Earning per share}[/tex]

Reason: It can be stated that a PEG ratio of less than 1 denotes that the stock is a good investment since it is below its “fair value.”

If a PEG ratio is greater than 1 this will further means that stock is relatively expensive,and overpriced.

Therefore, the correct option is (b) Overpriced, because it has Price/Earning-Growth(PEG) ratio of 1.

Answer:

Given:

Monopolist earns = $60 million

The opportunity cost of funds = 18 %

The monopolist will earn = $20 million after another firm enters the market

The present value of the monopolist’s current and future earnings if entry occurs can be computed using the following formula:

[tex]\Pi_{MD} = Earning Annualy + \frac{Earning After firm enters}{Opportunity cost}[/tex]

[tex]\Pi_{MD} = \Pi_{M} + \frac{\Pi_{D}}{i}[/tex]

[tex]\Pi_{MD} = 60 + \frac{20}{0.18}[/tex]

[tex]\Pi_{MD} = 171.1[/tex]

The present value of the monopolist’s is $171.1 million

If the monopolist can earn $35 million indefinitely by limit pricing,then the present value of the monopolist’s current earnings:

[tex]\Pi_{MD} = \Pi_{M} + \frac{\Pi_{D}}{i}[/tex]

[tex]\Pi_{MD} = 60 + \frac{35}{0.18}[/tex]

[tex]\Pi_{MD} = 254.4[/tex]

∴ If the monopolist can earn $35 million indefinitely by limit pricing, then they should do so.

Final answer:

The present value of the monopolist’s earnings when entry occurs is the $60 million for the first year plus the discounted value of the $20 million annual profit thereafter. When compared to the present value of $35 million annual profits indefinitely achieved through limit pricing, the monopolist can make a strategic decision by comparing the present values of both scenarios.

Explanation:

To solve for the present value of the monopolist's current and future earnings with another firm entering the market, we must discount the future profits to the present value using the opportunity cost of funds, in this case, 18%. The monopolist earns $60 million initially and $20 million annually thereafter. The present value of earning $60 million indefinitely is calculated by dividing $60 million by the opportunity cost rate, which is $60 million / 0.18. However, since entry occurs, we calculate the present value of the first year's profit of $60 million plus the perpetuity starting from the second year at $20 million annually, discounted by the 18% rate.

The first year's profit is:

PVfirst year = $60 million

The perpetuity starting from the second year is:

PVsecond year onwards = $20 million / 0.18

The total present value when another firm enters the market is:

PVtotal = PVfirst year + PVsecond year onwards / (1 + 0.18)

In the case of limit pricing, the monopolist would earn $35 million indefinitely. To calculate the present value of these earnings:

PVlimit pricing = $35 million / 0.18

To decide if the monopolist should pursue limit pricing, we compare the present value of earnings with limit pricing to that of earning $60 million initially and $20 million thereafter when there is entry.

Answer:

Explanation:

Journal Entry : The journal entry is a recording of transactions which have two sides i.e. debit side and credit side. Debit side records all expenditures and losses, whereas credit side records income and gains.

(a) The entry which Bridgeport should make is shown below:

Cash A/c  Dr                                          $294                

Bank charge expense Dr ($300 × 2%) = 6

To Sales Revenue                                                 $300

(b) The entry which Sarasota should make, given a service charge of 2% on the amount of receivables sold is shown below:

Cash A/c  Dr                                                   $74,480                  

Bank charge expense Dr ($76,000 × 2%) = $1,520

To Accounts Receivable                                          $76,000

Bridgeport Restaurant will record a debit to Cash for the amount received after the bank fee ($294) and a debit to Bank Service Charge Expense ($6) with a credit to Sales Revenue ($300). Sarasota Company will record a debit to Cash for the amount received after the service charge ($74,480), a credit to Accounts Receivable ($76,000), and a debit to Loss on Sale of Receivables ($1,520).

In the case of Bridgeport Restaurant, the entry in their books will reflect a debit (increase) to Cash for the amount received after deduction of the 2% bank fee. This would be $294 [(100% - 2%) x $300]. The restaurant will also make a credit (increase) to Sales Revenue for $300. Lastly, they'll record a debit (increase) to Bank Service Charge Expense for the $6 fee [$300 x 2%].

As for the Sarasota Company, when they sell their accounts receivable of $76,000, they'll record a debit (increase) to Cash for the amount they receive after the service charge has been subtracted. This would be $74,480 [(100% - 2%) x $76,000]. They'll also have to record a credit (decrease) to Accounts Receivable for $76,000 to clear that balance. Lastly, a debit (increase) to Loss on Sale of Receivables will be recorded for the amount of the service charge, which is $1,520 [$76,000 x 2%].

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Answer:

Ending Inventory under LIFO $3,270

Explanation:

[tex]\left[\begin{array}{cccc}Month&Purchase&Sales&Remaining\\January&10&-6&4\\February&20&-5&15\\May&15&-9&6\\September&12&-8&1\\November&10&-13&0\\Total&67&-41&26\\\end{array}\right][/tex]

First: in LIFO you always start from the bottom line

subtracting the sales figure for each period.

Notice in nomvember the sales are greater than the amount purchased, so we decrease the september units by the diference

[tex]\left[\begin{array}{cccc}Month&Units&Cost&Subtotal\\January&4&120&480\\February&15&125&1,875\\May&6&130&780\\September&1&135&135\\November&0&140&0\\Total&26&-&3,270\\\end{array}\right][/tex]

Final answer:

Using the Periodic LIFO inventory valuation method, the value of the Cost of Goods Sold (COGS) is $4995. This is calculated by taking the cost of the most recent inventory purchases and working backward until all units sold are accounted for.

Explanation:

To calculate the Cost of Goods Sold (COGS) using the Periodic LIFO method, we need to match the most recent unit costs with the units sold. Under LIFO, the last items purchased are the first ones sold. We know there were 26 units in ending inventory on December 31. We must assume the sales were made right before the year ended, leaving the most recently purchased inventory to be sold last.

Let's calculate COGS step-by-step:

Begin with the most recent purchases and work backward until we account for the total number of units sold.

November: 10 units at $140 each

September: 8 units at $135 each

May: 9 units at $130 each

February: 5 units at $125 each

January: 6 units at $120 each

Now, calculate the value of the COGS:

November (10 units x $140) + September (8 units x $135) + May (9 units x $130) + February (5 units x $125) + January (6 units x $120)

COGS = ($1400) + ($1080) + ($1170) + ($625) + ($720)

COGS = $4995

In this case, the value of cost of goods sold is $4995 using the Periodic LIFO method.

The second-year cash flow from financing activities for Globo-Che Co. was -$377 million. This was calculated using the cash flow formula and the provided cash flows from operations, investing, and the change in cash.

To find the cash flow from financing activities for Globo-Chem Co., we need to use the formula for cash flow, which is: Cash Flow from Operations + Cash Flow from Investing + Cash Flow from Financing = Change in Cash. We know the cash flow from operations ($1,053 million), the cash flow from investing (-$576 million), and the change in cash ($280 million - $180 million = $100 million).

Applying these values to the formula: $1,053 million - $576 million + Cash Flow from Financing = $100 million. Solving for Cash Flow from Financing, we get: Cash Flow from Financing = $100 million - $1,053 million + $576 million = -$377 million. Thus, the cash flow due to financing activities in the second year of Globo-Chem Co.'s operation was -$377 million.

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Answer:

Cash debit 1,200

Note Receivable debit 2,800

Account Receivable credit 4,000

Explanation:

The accounting will reflect the receipt of cash and the note at their principal.

The interest of the note will ge accrued with the past of time. Currently no interest was earned, so we don't have to post anything related to the interest of the note.

We just write-off the account receivable of the customer and declare how we settle.

Answer:

The correct answer would be option A, $96600.

Explanation:

Gross profit is the amount of profit which a company earns after deducting all the costs which incurred in the making and sale of the products of the company.  

Gross profit can be found out by the following formula:

Gross Profit = Total Sales - Cost of Goods Sold

Total Sales will be Sales Revenue - Sales Return - Sales Discounts

So here total sales revenue will be = 293000 - 26600 - 11200

= 255200

Total sales Revenue: 255200

Cost of goods Sold = 158600

Gross Profit = 255200 - 158600

Gross Profit = $96600

1. Cash received from the sale of equipment is $39,400. 2. Depreciation expense recorded on equipment in 2017 is $110,000. 3. Cost of new equipment purchased in 2017 is $185,000.

1. The cash received from the sale of equipment can be determined by calculating the difference between the book value of the equipment and the loss on the sale. In this case, the book value of the equipment is $43,000 and the loss on the sale is $3,600. Therefore, the cash received would be $43,000 - $3,600 = $39,400.

2. The depreciation expense recorded on equipment during 2017 can be calculated by taking the difference in the accumulated depreciation of equipment between 2017 and 2016. In this case, the accumulated depreciation in 2017 is $106,000 and in 2016 it is $216,000. Therefore, the depreciation expense for 2017 would be $216,000 - $106,000 = $110,000.

3. The cost of new equipment purchased by Anders during 2017 can be determined by taking the difference in the net plant assets (equipment and buildings) between 2017 and 2016. In this case, the net plant assets in 2017 is $89,000 (equipment) + $286,000 (buildings) = $375,000, and in 2016 it is $69,000 (equipment) + $121,000 (buildings) = $190,000. Therefore, the cost of new equipment purchased during 2017 would be $375,000 - $190,000 = $185,000.

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Anders Company received $39,400 from the sale of equipment. A total depreciation expense of $72,000 was recorded on equipment during 2017. The cost of new equipment purchased in 2017 was $135,000.

Given the information in the comparative balance sheets and additional details of the equipment sale, we can answer the following questions:

How much cash did Anders receive from the sale of equipment?

The book value of the equipment sold was $43,000, and it was sold at a loss of $3,600. The cash received is the book value minus the loss, which can be calculated by:

43,000 - 3,600 = $39,400

How much depreciation expense was recorded on equipment during 2017?

The accumulated depreciation on equipment decreased from 2016 to 2017, suggesting that some assets were removed (in this case, sold). To find out how much was for depreciation apart from the disposition of equipment, we add the accumulated depreciation related to the sold equipment (original cost $225,000 minus book value $43,000) to the ending accumulated depreciation:

225,000 - 43,000 = 182,000

Then, the increase in depreciation is the beginning accumulated depreciation minus the ending accumulated depreciation, including the adjustment for sold equipment:

216,000 - (106,000 + 182,000) = $72,000.

What was the cost of new equipment purchased by Anders during 2017?

To find the cost of new equipment purchased, we start with the beginning equipment cost, subtract the cost of equipment sold, add the ending equipment total, and then subtract the original equipment cost total:

285,000 - 225,000 + 195,000 - 285,000 = $135,000.

Answer: Option B

Explanation: Studying the external factors that influence the operations of the organization is called external environment analysis.

A. Scanning in external activity refers to identifying the threats and opportunities in the environment.

C. Monitoring refers to keeping track of external factors that can affect operations.

D. Assessing involves analyzing the current trends in  various kinds of relevant factors such as political, economical etc.

.

Decrypting in simple words means decoding a data that has been saved in a code language. This is not a part of external environment analysis.  

Decrypting is not an activity used in the external environmental analysis process; instead, scanning, monitoring, and assessing are the typical activities involved.

The external environmental analysis typically involves scanning the environment to identify early signals of potential changes in the environment, monitoring those changes over time to assess their impact, and assessing to determine the timing and importance of the changes for the organization's strategies and their management.

Answer: Option D

Explanation: Short term investments can be defined as the liquid investments that are expected to be sold or be converted into cash within a particular time period, generally a year or operating cycle of the company. Primary examples are commercial paper and US treasury bills.

These are generally used to have cash availability at  short term notice in the entity or for some future project funding investment. For bad debt buffering specific provisions are made.

Businesses hold short-term securities as a substitute for cash and as a temporary repository for cash for specific purposes, but not typically as a buffer against bad debt losses.

Businesses hold short-term securities for a couple of key reasons. A. As a substitute for cash and B. As a temporary repository for cash being accumulated for a specific purpose are both correct answers. Holding short-term securities is a liquidity management strategy. These securities are easily convertible to cash, providing businesses with flexibility to cover short-term expenses or opportunities. It is not typically done as a buffer against bad debt losses, which is more associated with accounting practices and credit risk management.

Answer:

The old machine should be retained.

Explanation:

[tex]\left[\begin{array}{cccc}&continue&replace&Differential\\Proceeds \: from \: sale&0&27,200&27,200&Cost:&&&&purchase&0&-407,400&-407,400&manufacturing\:cost&-4,480,700&-4,422,600&58,100&Total \:cost&-4,480,700&-4,830,000&-349,300&Net&-4,480,700&-4,802,800&-322,100&\end{array}\right][/tex]

The old machine should be retained.

The differential analisys shows cost will increase 322,100 if replaced.

The sale from the old machine is an income for the relacement alternative.

the cost of the new machine is an expense

the value of the 7 years of manufacturing cost show a cost saving for 58,100

this savings, along with the proceeds from the old machine, doesn't cover the acquisition of the new machine. It is a bad investment.

Based on the cost-benefit analysis, purchasing the new machine is more cost-efficient for the Bryant Company over a span of seven years. The total cost of keeping the old machine is higher than replacing it with a new one by $111,700.

The question is asking whether the Bryant Company should replace an existing factory machine or continue to use it based on its book value, potential sale value, and the cost and benefits of a new machine. To resolve this, we need to conduct a cost-benefit analysis.

First, let's calculate the total cost of keeping the old machine: over 7 years, the remaining depreciation is the book value which is $90,800, plus, the annual manufacturing cost which is $640,100 multiplied by 7 years, equals to about $4,570,500.

Second, let's calculate the cost of replacing it with a new one: the new machine will cost $407,400, plus $27,200 (the net loss from selling the old machine), plus the new manufacturing costs (annual $631,800 multiplied by 7 years) which is about $4,458,800.

The difference between the two options (keeping the old machine and buying a new machine) is $4,570,500 - $4,458,800 = $111,700. This shows that buying a new machine is more cost-efficient by $111,700 over 7 years.

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Final answer:

Using a normal costing system, Financial Planning Partners Inc. will show that the year-end accounting records have applied $336,000 in indirect costs for the year after calculating the predetermined overhead rate and applying it to the actual direct labor hours worked.

Explanation:

To calculate the year-end accounting records for indirect costs using a normal costing system, we need to calculate the predetermined overhead rate (POR) and then apply it to the actual direct labor hours (dlh) worked during the year.

Step 1. Calculate the predetermined overhead rate:

Budgeted indirect costs: $300,000

Budgeted direct labor-hours: 50,000 dlh

Predetermined overhead rate (POR) = Budgeted indirect costs ÷ Budgeted direct labor-hours

POR = $300,000 ÷ 50,000 dlh

POR = $6 per dlh

Step 2. Apply the POR to the actual direct labor hours:

Actual direct labor-hours: 56,000 dlh

Applied indirect costs = POR × Actual dlh

Applied indirect costs = $6 per dlh × 56,000 dlh

Applied indirect costs = $336,000

Therefore, the year-end accounting records will show that the company applied $336,000 in indirect costs for the year.

Answer: Amount should be recorded for each sale are as follows:

Explanation:

(a) The amount should be recorded for the list price of $3,400 and trade discounts of 20 percent and 10 percent are as follows:

List price = $3400

Less 20% trade discount on $3400 = 20% × 3400 = ($680)

Balance = $2720

Less 10% trade discount on $2720 =10% × 2720 = ($272)

The amount recorded for sales = 2720 - 272 = $2448

(b) The amount should be recorded for the list price of $4,100 and trade discounts of 20 percent and 10 percent are as follows:

List price = $4,100

Less 20% trade discount on $4100 = 20% × 4100 = ($820)

Balance = $3280

Less 10% trade discount on $3280 =10% × 3280 = ($328)

The amount recorded for sales = 3280 - 328 = $2952

(c) The amount should be recorded for the list price of $2,450 and trade discounts of 30 percent and 20 percent are as follows:

List price = $2450

Less 30% trade discount on $2450 = 30% ×2450 = ($735)

Balance = $1715

Less 20% trade discount on $1715 = 20% × 1715 = ($343)

The amount recorded for sales = 1715 - 343 = $1372

1. The amount recorded for the sale with a list price of $3,400 and trade discounts of 20% and 10% is $2,448.

2. The amount recorded for the sale with a list price of $4,100 and trade discounts of 20% and 10% is $2,952.

3. The amount recorded for the sale with a list price of $2,450 and trade discounts of 30% and 20% is $1,372.

To calculate the amount recorded for each sale after applying the trade discounts, we need to apply the discounts sequentially to the list prices provided.

1. For the first sale:

  List price = $3,400

  Trade discounts: 20% and then 10%

  Calculation:

  Step 1: Apply the first discount of 20%:

  Discounted price after 20% = $3,400 - (0.20 * $3,400) = $3,400 - $680 = $2,720

  Step 2: Apply the second discount of 10% to the discounted price:

  Final price after 10% = $2,720 - (0.10 * $2,720) = $2,720 - $272 = $2,448

Therefore, the amount recorded for the first sale is $2,448.

2. For the second sale:

  List price = $4,100

  Trade discounts: 20% and then 10%

  Calculation:

  Step 1: Apply the first discount of 20%:

  Discounted price after 20% = $4,100 - (0.20 * $4,100) = $4,100 - $820 = $3,280

  Step 2: Apply the second discount of 10% to the discounted price:

  Final price after 10% = $3,280 - (0.10 * $3,280) = $3,280 - $328 = $2,952

Therefore, the amount recorded for the second sale is $2,952.

3. For the third sale:

  List price = $2,450

  Trade discounts: 30% and then 20%

  Calculation:

  Step 1: Apply the first discount of 30%:

  Discounted price after 30% = $2,450 - (0.30 * $2,450) = $2,450 - $735 = $1,715

  Step 2: Apply the second discount of 20% to the discounted price:

  Final price after 20% = $1,715 - (0.20 * $1,715) = $1,715 - $343 = $1,372

Therefore, the amount recorded for the third sale is $1,372.

In each case, the calculation involves subtracting the percentage discount from the list price sequentially. This approach reflects how trade discounts are applied in practice to determine the final recorded amount for each sale in a wholesale transaction.

Answer:

Support - Staff

Explanation:

In the past, Human Resources (HR) was treated as a support - staff function with only an indirect link to corporate strategy. Today, HR is being embedded in organizational strategy.

Answer:  An unearned revenue

Explanation: When any individual or entity receives money from customers for such service which has not been performed yet, then such income is termed as unearned revenue.

Unearned revenue is considered to be the liability of the recipient and and asset for the payee.

So from the above explanation we can conclude that right option is unearned revenue.

Answer:

The cost of land is $408,500.

Explanation:

For calculating the amount of cost of land . Following things is need to be considered.

1. Cash Paid - $ 65,000

2. Notes Payable - $330,000

3. Property tax - $2,500

4. Title Insurance - $6,000

5. Land leveling cost   - $ 5,000

Other costs are irrelevant because it is not related to the land.

The cost of land includes those cost which is related to the land. It can be any transactions, any tax or anything. Whether the cost is additional also, but it should be associated to the land.

So,

Cost of land = Cash paid + notes payable + property tax + title insurance + land leveling cost  

= $ 65,000 + $330,000 + $2,500 + $6,000 + $ 5,000

= $408,500

Hence, the cost of land is $408,500.

Answer:

70,400 accounted for Cost of Goods Sold

Explanation:

1 - 25% sales - 20% admin = 1 - 45% = 55% factory

160,000 x 55% = 88,000 accounted for Goods Produced

88,000 x 80% sold = 70,400 accounted for Cost of Goods Sold

88,000 x 20% inventory = 18,600 account through Finished Goods Inventory

To calculate the net cash provided by operating activities, both the net income and adjustments for non-cash transactions and changes in working capital are considered. The companies net cash provided by operating activities is $133,400.

To calculate the net cash provided or used by operating activities in a company, we need to consider both net income and adjustments for non-cash transactions and changes in working capital.

In this company’s case, the net income is $122,000.

The adjustments for non-cash transactions include a depreciation expense of $34,000 (which increases net cash flow because it is a non-cash expense) and a gain on the sale of plant assets of $8,000 (which reduces net cash flow because it is a non-cash gain).

The changes in working capital are calculated by subtracting the increase in current assets and the decrease in current liabilities. Here, accounts receivable decreased by $10,200 (which increases cash flow), merchandise inventory increased by $22,000 (which decreases cash flow), prepaid expenses increased by $7,000 (which decreases cash flow), and accounts payable increased by $4,200 (which increases cash flow).

Combining all these factors, the calculation becomes:  

Net income + Depreciation - Gain on Sale + Decrease in Accounts Receivable - Increase in Inventory - Increase in Prepaid Expenses + Increase in Accounts Payable

 = $122,000 + $34,000 - $8,000 + $10,200 - $22,000 - $7,000 + $4,200 = $133,400

Therefore, the company’s net cash provided by operating activities amounts to $133,400.

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Answer:

deduction available would be $4131.11

Explanation:

Here in the question we have to take out what is the maximum amount that Stanford can deduct for investigating expenses.

First of all it is important to know that the deductions in investigation expenses would be allowed only when Stanford would purchase that business( restaurant or bakery), but here it is told that the Stanford has purchased bakery not restaurant , so therefore there will be no deductions for investigation expenses related to the restaurant .

But since he has purchased bakery the deduction of only $5000 is allowed to him . Here the deduction is taken on basis of dollar for dollar expense in amount which is in excess of $50,000. So the calculation of it would be like this -

amount in excess of $50,000 = $51,400 - $50,000

                                                  = $ 1400

Now subtracting this amount from $5000, to see how much amount would be deducted now and how much would remain for to be amortized over next 180 months.

$5000 - $1400

= $3600   ( amount which will be deductible now)

now subtracting this from $51,400,

$51,400 - $3600 = $47,800

$47,800 is the amount that will be left over to be amortized over next 180 months, as PER MONTH AMOUNT WILL BE

$47,800 / 180

= 265.55

and there are only 2 months left for year to be over, so

$265.55 x 2 = $ 531.11

Now the total deduction would be =

$3600 + $531.11

= $4131.11

Stanford's $33,000 investigation cost for the failed restaurant acquisition is a sunk cost and immediately expensed. The $51,400 cost for the successful bakery acquisition can be capitalized and added to the basis of the bakery.

In business accounting and taxation, certain acquisition-related costs are treated differently. The $33,000 that Stanford spent on investigating the restaurant acquisition, which was not completed, is considered a sunk cost and is not recoverable or capitalized, but rather, it typically is expensed in the current period. On the other hand, the $51,400 spent investigating the bakery acquisition, which was completed, can be capitalized and added to the basis of the property (i.e., the bakery). Therefore, that cost is not immediately deducted but rather will affect the calculation of gain or loss when the property is eventually disposed of.

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Answer:

52.12

Explanation:

The present value of an annuity of $9.05 for 9 years at a 10% will be $52.12

So the current share price of Burnett Corp must be $52.12 to fullfil the requirement of a 10% return

Answer:

The answer is $52.12.

Explanation:

We apply the dividend discount model to come up with the price for share.

The price for share under the dividend discount model is the present value of all its future dividend discounted at the required rate of return.

As the share has 9 annual equal dividend payments of $9.05 each year and the required rate is 10%, we have the price of the share is calculated by applying the annuity formula as:

(9.05/0.1) * [1 - 1.1^(-9) ] = $52.12.

So, the current share price is $52.12.

Answer:

Billy's mom increases his weekly allowance by $ 55 . As a result, Billy increases the number of apps he downloads on his smartphone.

If with increase in income demand increases, the good will be a normal good. Thus, apps that billy downloads are normal goods.

Susan gets a 15 percent performance bonus at work. She can finally stop eating so many frozen pizzas and eat something more tasty. Frozen pizzas are: Inferior goods

Here with increase in income, the demand for a commodity falls, the so called commodity is a inferior good. Thus, in this case frozen pizzas are inferior goods.

Mike is an appliance salesman. Refrigerator sales in his store have fallen and so has his commission. Mike decides to switch from name brand cereal to generic cereal. Generic cereal is: Inferior goods

If there is a fall in income and thus demand increases, the good is inferior. Thus, in this case generic cereal is an inferior good.

Hair stylist Molly loses a few of her clients. Molly cuts back on the number of smoothies she buys during the week. Smoothies are: Normal goods

If there is a decrease in income and thus demand falls, the good is normal. Thus, smoothies as commodity in this case will be refereed to as normal goods.

Final answer:

Smartphone apps are normal goods, frozen pizzas are inferior goods, generic cereal is a normal good, and smoothies are inferior goods.

Explanation:

According to the information provided, we can determine if a good is a normal good or an inferior good by analyzing the relationship between income and quantity consumed.

Answer:

The market price of the security will be $42.86 when the Beta doubles and all other variables remains constant.

Explanation:

Given information -       Current market price    = $60

                                      Risk free rate                 = 6%

                                      Expected rate of return = 10%

                                      Market risk premium      = 8%

In this question we have to find the market price of the security when beta doubles it self, the formula which we can use to take out the market price is,

 \frac{DIVIDEND}{NEW\:EXPECTED\:RATE\: OF\: RETURN}

But here we have to first find out both the dividend and new expected rate of return and it is also told here that beta doubles itself but we don't know what the initial beta is, so lets take out what beta is , using formula for expected rate of return

Expected rate of return = Risk free rate + Beta x Market risk premium

                 10%               = 6% + Beta x 8%

                 4%                 = Beta x 8%

           Beta                  = 4% / 8%

           Beta                  = 1% / 2%    = .01 / .02 = .5

Now doubling the beta = .5 x 2 = 1

Putting this value of beta in the expected rate of return formula to calculate the new expected rate of return,

New expected rate of return = 6% + 1 x 8%

                                                = 14%

Now we just have to find the dividend , which we can by using formula of

Market price =  \frac{DIVIDEND}{\:EXPECTED\:RATE\: OF\: RETURN}

$60               = Dividend / 10%              (10% = .1)

$60 x .1          = Dividend

$6                  = Dividend

Now we have both dividend and new market rate of return and we just have to put these values in the formula

 \frac{DIVIDEND}{NEW\:EXPECTED\:RATE\: OF\: RETURN}

New market price = $6 / 14%            (14% = .14)

                              = $6 / .14

                              = $42.86

Answer: $42.85 per share

Explanation:

Given that,

The market price of a security(P) = $60 per share

expected rate of return(ERR) = 10%

the market risk premium(MRP) = 8%

risk-free rate(RFR) = 6%

ERR = RFR + Beta × (MRP)

10 = 6 + Beta(8)

Beta = [tex]\frac{4}{8}[/tex]

= 0.5

In this question, it is given that constant dividend paid in perpetuity

current market price per share, P = [tex]\frac{DPS}{ERR}[/tex]

Where, DPS - dividend per share

60 × 0.1 = DPS

$6 per share = DPS

If beta doubles then,

Beta = 0.5 × 2

= 1

∴ Required rate of return = 6 + 1 × 8

= 14%

So, market price of security = [tex]\frac{DPS}{Required rate of return}[/tex]

= [tex]\frac{6}{0.14}[/tex]

= $42.85 per share

Answer:

Supply curve for loanable funds would shift, leading to a fall in the equilibrium interest rate.

Explanation:

If the people are convinced that saving is important and start saving more, the  supply of loanable funds will increase. As a result the supply curve will shift to the right. This shift in the supply curve will be accompanied with a decline in the equilibrium interest rate.

So, the correct answer is: supply; downwards.

Answer:

The correct option is C) place utility

Explanation:

Place utility is the utility which is created for a product by making that product available to near by locations of the customers so that they can easily get access to those products. Same strategy is being applied in the question by E-gadgets , who are making their stores available to such locations , where their customers ( upper middle class and wealthy neighborhoods) can get access to the products easily( less than 15 minutes in the given case).

Answer: 12.6 %

Explanation: The rate of growth that a company expects to maintain for a long term is called sustainable growth rate. It is denoted by G. Sustainable

growth rate helps the analysts to determine at what stage the company is in its life cycle.

.

FORMULA :-

GROWTH = Retention ratio *  return on equity

                 = ( 1 - Dividend payout ratio) * return on equity

                 [tex]= (1-\frac{5}{50} \%) * 14 \%[/tex]

                 = 0.9 * 0.14

                = 12.6 %

The expected growth rate of Arts and Crafts Inc.'s dividends is calculated using the Gordon Growth Model. Taking into account the current price of stock, the expected dividend, and the required rate of return, the growth rate comes out to be 4%.

To find the expected growth rate of the company’s dividends, the formula to use is the Gordon Growth Model. This model is as follows:

P = D / (r - g)

Where:
P represents the price of the stock today ($50 in this case),
D represents the expected dividend ($5 in this case),
r represents the required rate of return (14% in this case), and
g represents the rate of growth.

First, rearrange the formula to solve for g:

g = r - (D / P)

Then you substitute the given numbers:

g = 0.14 - (5 / 50)
g = 0.14 - 0.10
g = 0.04, or 4%

So, the expected growth rate of Arts and Crafts Inc.'s dividends is 4%.

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Answer:

The direct labor rate variance is negative 16,500

Explanation:

8,000 units at 2hours per unit = 16,000 hours x $12 per hour = $192,000 standart cost for the job

actual 15,000 hours and $196,200 total labor cost

labor cost per hour = 196,200/15,000 = 13.1 actual rate per hour

( standar rate - actual rate ) x actual hours = rate variance

(12 - 13.1) x 15,000 = -1.1 x 15,000 = -16,500