Answer:
Value(ending inventory) = Units (ending inventory) × Cost per unit
= (2600 × 122)
= $ 317,200
Explanation:
Given :
Beginning inventory = 300
Units produced = 15,000
Units sold ($300 per unit) = 12,700
Variable costs per unit:
Direct materials = $20
Direct labor = $60
Variable overhead = $12
Fixed costs:
Fixed overhead per unit produced = $30
Fixed selling and administrative = $140,000
Units in ending inventory = Units in beginning inventory + Units produced - Units sold ($300 per unit)
= $300 + $15000 - $12700
= $2600
Cost per unit = Variable costs per unit + Fixed costs
= (Direct material + Direct labor + Variable overhead) + Fixed overhead per unit produced
= ($20 + $60 + $12) + $30
= $122
Value of ending inventory = Units in ending inventory × Cost per unit
= (2600 × 122)
= $ 317,200
A university is trying to determine what price to charge for tickets to football games. At a price of $24 per ticket, attendance averages 40 comma 000 people per game. Every decrease of $3 adds 10 comma 000 people to the average number. Every person at the game spends an average of $6.00 on concessions. What price per ticket should be charged in order to maximize revenue? How many people will attend at that price?
Answer: Price per ticket should be charged in order to maximize revenue is $15.
70000 people will attend at this price.
Explanation:
Let 'x' represent the decrease .
Using the given information,
Price per ticket = 24 - 3x
Average no. of people that watch the game = 40000 + 10000x
Additional money spent by every person = 6(40000 + 10000x)
Revenue [R(x)] = Price per ticket [tex]\times[/tex] Average no. of people that watch the game + Additional money spent
Revenue [R(x)] = (24 - 3x)[tex]\times[/tex](40000 + 10000x) + 6(40000 + 10000x)
On solving the above equation we get ,
Revenue [R(x)] = -30000[tex]x^{2}[/tex] + 180000x + 1200000
In order to find the critical point we'll differentiate the following with respect to x;
R'(x) = -60000x + 180000
∵ R'(x) = 0
x = 3
Thus, the price per ticket that should be charged in order to maximize revenue is (24 - 3[tex]\times[/tex]3 = 24 - 9 = $15)
People that will attend at this price = (40000 + 10000[tex]\times[/tex]3) = 70000
Activity-Based Costing: Selling and Administrative Expenses Jungle Junior Company manufactures and sells outdoor play equipment. Jungle Junior uses activity-based costing to determine the cost of the sales order processing and the customer return activity. The sales order processing activity has an activity rate of $20 per sales order, and the customer return activity has an activity rate of $100 per return. Jungle Junior sold 2,500 swing sets, which consisted of 750 orders and 80 returns. a. Determine the total sales order processing and customer return activity cost for swing sets. $ b. Determine the per-unit sales order processing and customer return activity cost for swing sets. Round your answer to the nearest cent. $ per unit
Answer: (a.) Sales order processing = $ 15000
Customer return activity = $8000
(b.) Per-unit sales order processing = $ 6
Per-unit customer return activity cost for swing sets = $ 9.20
Explanation:
Total activity cost is given as :
Total activity cost = Sales order processing + Customer return activity
∵ Sales order processing = No. of sales order × Activity rate
Sales order processing = 750×20 = $15000
∵ Customer return activity = No. of sales return × Activity rate
Customer return activity = 80×100 = $8000
∴ Total activity cost = $15000 + $8000 = $23000
Now,
Sales order processing = $15000
No. of outdoor equipment sold = 2500
Sales order processing per unit = $15000 ÷ $2500 = $6
Customer return activity = $8000
No. of outdoor equipment sold = $2500
Customer return activity cost for swing sets = $8000 ÷ $2500 = 3.20
∴Total activity cost = $6 + $3.20 = $9.20
Final answer:
The total sales order processing and customer return activity cost for swing sets is $23,000. The per-unit cost is $9.20 when rounded to the nearest cent.
Explanation:
To determine the total sales order processing and customer return activity cost for swing sets, we can multiply the number of each activity by their respective activity rates. For sales order processing, with a rate of $20 per sales order, and 750 orders, the calculation would be 750 orders × $20/order = $15,000. For customer returns, with an activity rate of $100 per return, and 80 returns, the calculation would be 80 returns × $100/return = $8,000. Adding the two costs together, the total activity cost for swing sets is $15,000 + $8,000 = $23,000.
To determine the per-unit sales order processing and customer return activity cost for swing sets, we divide the total activity cost by the number of units sold. With a total activity cost of $23,000 and 2,500 swing sets sold, the per-unit cost is $23,000 ÷ 2,500 units = $9.20 per unit (rounded to the nearest cent).
By encouraging its sales representatives to freely talk to their managers about the changing customer needs, RST Global increased its responsiveness to customers. Which of the following is most likely to be the factor that helped RST achieve this?
Low information richness
Overload of information
High perceptual bias
Good communication
Effective electronic trail
Answer: GOOD COMMUNICATION
Explanation:
A. The capacity of data to carry potential information is called information richness. As the sales representative were the mediums and the topic was need of customers there is no scope that information will be low in richness.
B. If there would be an information overload there could not have been an increase in responsiveness.
C. The information was presented by sales representatives who gets in direct contact with customers so there is a very little chance that the information would be on perceptual basis.
D. Free and effective communication between managers and sales representatives helps to transmit complete message with all perspectives cleared . Thus, helping in succeed.
E. In this problem there is an effective internal organizational communication and not an electronic trail.
Seeking to lower overall costs, a South Korean car manufacturer sources many of the parts for its cars from other Asian countries. This practice demonstrates the:
globalization of production.
globalization of markets.
emergence of global institutions.
regulation of the environment.
rivalry between countries.
Answer:
Seeking to lower overall costs, a South Korean car manufacturer sources many of the parts for its cars from other Asian countries. This practice demonstrates the: globalization of production. - first choice
Jethroe Co. reported a retained earnings balance of $200,000 at December 1, 2018. In June 2019, Jethroe discovered that merchandise costing $50,000 had not been included in inventory in its 2018 financial statements. Jethroe has a 35% tax rate. What amount should Jethroe report as adjusted beginning retained earnings in its statement of retained earnings at December 31, 2019?
Answer:
Adjusted opening balance of retained earnings in its statement of retained earnings at December 31, 2019 = $232,500
Explanation:
Provided inventory of $50,000 not included in stock of the year 2018, which means closing inventory is understated with the same amount for the year 2018, which concludes profit of the year 2018 are understated with the same amount.
Now if that amount is added to closing inventory then profits for the year 2018 will increase net profit will increase by $50,000 - Taxes @35%
Net profit understated = $50,000 - ($50,000 X 35%) = $32,500
Balance of retained earnings at year end will be $200,000 + $32,500 = $232,500
Thus adjusted opening balance of retained earnings in its statement of retained earnings at December 31, 2019 = $232,500
To calculate the adjusted beginning retained earnings, subtract tax expense from net income by adjusting for the merchandise cost.
Explanation:The amount that Jethroe Co. should report as adjusted beginning retained earnings in its statement of retained earnings at December 31, 2019 can be calculated by subtracting the tax expense from the net income.
First, calculate the net income by subtracting the merchandise cost of $50,000 that was not included in the 2018 financial statements.Next, calculate the tax expense by multiplying the net income by the tax rate of 35%.Finally, subtract the tax expense from the net income to find the adjusted beginning retained earnings.For example, if the net income after adjusting for the merchandise cost is $250,000, then the tax expense would be $87,500 (35% of $250,000). Therefore, the adjusted beginning retained earnings would be $162,500 ($250,000 - $87,500).
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On 1/2/20X6, ALPHA acquired 100 shares of CHARLIE Corporation stock at $20 per share, 200 shares of DELTA Corporation stock at $40 per share, and 100 shares of ECHO Corporation stock at $30 per share. All of these shares were purchased as trading securities. The market price per share of these securities at the end of 20X6 and 20X7, respectively, are:
company 12/31/x6 12/31/x7
charlie $8 $22
delta. $38 $34
echo. $34 $30
What is the balance sheet amount for trading securities at the end of 20x7?
Answer:
The balance sheet amount for trading securities will be 12,000
Explanation:
The trading securities are valued at fair value, their diference through dates will generate Other Comprehensive Income.
For the matter of valuation, the gain/loss is not relevant. We just need to multiply market value with the number of shares to get the total for each company, then we add them to get the total for trading securities.
[tex]\left[\begin{array}{cccc}-&shares&market \:price& subtotal\\CHARLIE&100&22&2200\\DELTA&200&34&6800\\ECHO&100&30&3000\\Total&400&-&12000\\\end{array}\right][/tex]
The balance sheet amount for trading securities will be 12,000
It is estimated that in 2007, Mexico had a population of 110 million and GDP of $1 trillion. In 2006, Mexico's population was 104 million and GDP was $839 billion. Per GDP person ________ by ________ between 2006 and 2007 in Mexico.
Per capita GDP in Mexico increased by 12.7% from $8,067.31 in 2006 to $9,090.91 in 2007.
The question is asking us to calculate the change in per capita GDP in Mexico between the years 2006 and 2007. To do this, we need to divide the GDP of each year by the population for that year and then find the percentage increase.
Calculate per capita GDP for 2007: $1 trillion / 110 million = $9,090.91.
Calculate the change in per capita GDP: ($9,090.91 - $8,067.31) / $8,067.31 = 0.127 or 12.7%.
The per capita GDP increased by 12.7% between 2006 and 2007 in Mexico.
The per GDP person in Mexico grew by $1,023.60 between 2006 and 2007.
In 2006, Mexico's per capita GDP = GDP/Population = $839 billion / 104 million = $8,067.31.
In 2007, Mexico's per capita GDP = GDP/Population = $1 trillion / 110 million = $9,090.91.
Per GDP person grew by 9,090.91 - 8,067.31 = $1,023.60 between 2006 and 2007 in Mexico.
On July 1 of year 1, Elaine purchased a new home for $665,000. At the time of the purchase, it was estimated that the property tax bill on the home for the year would be $13,300 ($665,000 × 2%). On the settlement statement, Elaine was charged $6,650 for the year in property taxes and the seller was charged $6,650. On December 31, year 1 Elaine discovered that the real property taxes on the home for the year were actually $14,300. Elaine wrote a $14,300 check to the local government to pay the taxes for that calendar year (Elaine was liable for the taxes because she owned the property when they became due). What amount of real property taxes is Elaine allowed to deduct for year 1? (Assume not married filing separately.)
Answer:
The amount of real property taxes that Elaine is allowed to deduct for year 1 is $7150.
Explanation:
Elaine started living in the new home from July, which means that she has been living there for 6 months ( as per current date). But at the time when she purchased the house the total amount of property tax was $13,300 and now it is $14,300.
Since last 6 months she has been living in that home, and current property tax is $14,300 , that means now she is allowed a 50% deduction on the property taxes ,
$14,300 / 2 = $7150
Therefore Elaine is allowed $7150 as amount of deduction on property tax.
You are the CEO of a company that has to choose between making a $100 million investment in either Russia or Poland. Both investments promise the same long-run return, so your choice of which investment to make is driven by considerations of risk. Assess the various risks of doing business in each of these nations. Which investment would you favor and why?
Answer: When assessing the risks of investment, one should consider the political, economic, and legal risks of doing business in either Russia or Poland. The risk in Russia would probably be considered higher than the risk in Poland since Poland has been a member state of the European Union since 1 May 2004, with the Treaty of Accession 2003 signed on 16 April 2003 in Athens as the legal basis for Poland's accession to the EU.
Poland has already gained benefits and stability offered by the EU. Russia, by contrast, is still many years away from even being in a position to be considered by the EU for membership.
Explanation: A diligent investor wouldn't put a penny in a risky country.
As a CEO of a company, one must decide to invest an amount like $100 million in Poland, if given an opportunity to choose between Russia and Poland, because this investment will result in less chances of being a risky investment.
What is the significance of an investment risk?An investment risk can be referred to or considered as the risk that is associated with the loss of capital, partly or wholly, while being involved in a monetary engagement into classes of investments. Risk assessment is an essential tool of identifying and reducing the risks associated with investments.
In the condition given above, the investment risks in Russia will be higher than in Poland. This is because Russia is a country with higher fluctuations in its economies over a longer period of time, and thus, Poland investment will be less risky.
Therefore, the significance regarding investment risks has been aforementioned.
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An elderly client who has a documented history of dementia is intermittently alert and can currently tell you her name. Who should sign the client's informed consent for an invasive diagnostic procedure?
Answer:
The person who should sign client's informed consent for an invasive diagnostic procedure should be either relative( can be husband/wife/child) or a friend who has an durable power of attorney for healthcare of the client.
Explanation:
Dementia can be said as a group of condition where a person is suffering by impairment of at least two brain functions ,like memory loss and un able to make decisions on there own behalf. If a person is suffering from this condition , then someone else who has the authority to make decisions for that persons well being will sign the consent for the invasive diagnostic procedure.
Which of the following statements is FALSE? A. Emergency plans ensure that all resources can be obtained through internal sources within the jurisdiction. B. Emergency plans delineate roles and responsibilities. C. Emergency plans clarify how functions and activities are to be coordinated and how they complement one another. D. Emergency plans communicate what should happen, why it is done, and what to expect from it.
Answer: the one that is false is A. Emergency plans ensure that all resources can be obtained through internal sources within the jurisdiction.
A. Emergency plans ensure that all resources can be obtained through internal sources within the jurisdiction. the statements is FALSE.
What is jurisdiction of the court?To have jurisdiction, a court must have authority over the subject matter of the case and. the court must be able to exercise control over the defendant, or the property involved must be located in the area under the court's control.
What are the 4 types of jurisdiction?The 5 Types of Jurisdiction That May Apply to Your Criminal Case
Subject-Matter Jurisdiction.Territorial Jurisdiction.Personal Jurisdiction.General and Limited Jurisdiction.Exclusive / Concurrent Jurisdiction.To learn more about jurisdiction, refer
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MC Qu. 21 Milton Company has three departments occupying... Milton Company has three departments occupying the following amount of floor space: Department 1 24,000 sq. ft. Department 2 11,800 sq. ft. Department 3 34,000 sq. ft. How much store rent should be allocated to Department 2 if total rent is equal to $109,000? (Do not round your intermediate calculations, round final answer to nearest whole dollar amount.) Multiple Choice $34,000
Answer:
The store rent should be allocated to Department 2 is $18,430
Explanation:
For calculating the allocation of rent in Department 2. Following computation is required which is shown below:
1. First we have to calculate Total floor space Square feet value which is equals to
= Department 1 + Department 2 + Department 3
= 24,000 + 11,800 + 34,000
= 69,800
Thus, the total floor space is 69,800
Now calculate the per square rent which = total rent ÷ total square feet
= $109,000 ÷ 69,800
= 1.56 per square rent
After that, multiply the per square rent with department 2 floor space
= 11,800 × 1.56
= $18,430
Thus, the store rent should be allocated to Department 2 is $18,430
Prepare journal entries to record each of the following sales transactions of a merchandising company. The company uses a perpetual inventory system and the gross method. Apr. 1 Sold merchandise for $3,000, with credit terms n/30; invoice dated April 1. The cost of the merchandise is $1,800. Apr. 4 The customer in the April 1 sale returned $300 of merchandise for full credit. The merchandise, which had cost $180, is returned to inventory. Apr. 8 Sold merchandise for $1,000, with credit terms of 1/10, n/30; invoice dated April 8. Cost of the merchandise is $700. Apr. 11 Received payment for the amount due from the April 1 sale less the return on April 4.
Answer:
Given:
Apr. 1 Sold merchandise for $3,000, with credit terms n/30; invoice dated April 1. The cost of the merchandise is $1,800.
Apr. 4 The customer in the April 1 sale returned $300 of merchandise for full credit. The merchandise, which had cost $180, is returned to inventory.
Apr. 8 Sold merchandise for $1,000, with credit terms of 1/10, n/30; invoice dated April 8. Cost of the merchandise is $700.
Apr. 11 Received payment for the amount due from the April 1 sale less the return on April 4.
The journal entries prepared to record the sales transactions of the merchandising company, using the perpetual inventory system and the gross method are as follows:
Apr. 1 Debit Accounts Receivable $3,000
Credit Sales Revenue $3,000
To record the sale of goods, credit terms n/30Debit Cost of goods sold $1,800
Credit Inventory $1,800
To record the cost of goods sold.Apr. 4 Debit Sales Returns $300
Credit Accounts Receivable $300
To record the return of goods.Debit Inventory $180
Credit Cost of goods sold $180
To record the cost of goods returned.Apr. 8 Debit Accounts Receivable $1,000
Credit Sales Revenue $1,000
To record the sale of goods, credit terms of 1/10, n/30Debit Cost of goods sold $700
Credit Inventory $700
To record the cost of goods sold.Apr. 11 Debit Cash $2,700
Credit Accounts Receivable $2,700
To record the receipt of cash from customers.Data Analysis:
Apr. 1 Accounts Receivable $3,000 Sales Revenue $3,000
credit terms n/30
Cost of goods sold $1,800 Inventory $1,800
Apr. 4 Sales Returns $300 Accounts Receivable $300
Inventory $180 Cost of goods sold $180
Apr. 8 Accounts Receivable $1,000 Sales Revenue $1,000
credit terms of 1/10, n/30
Cost of goods sold $700 Inventory $700
Apr. 11 Cash $2,700 Accounts Receivable $2,700
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The next dividend payment by Company A, will be $1.92 per share. The dividends are anticipated to maintain a growth rate of 6 percent forever. If the stock currently sells for $38 per share, what is the required return?
Answer: 11.05 %
Explanation: Required return can be defined as the measure of profitability of business in relation to its different types of securities such as equity, preference and debt.
In this problem we can compute return on equity by using following formula :-
[tex]cost\:of\:equity\:=\:\frac{expected\:dividend}{current\:price}+growth[/tex]
[tex]cost\:of\:equity\:=\:\frac{1.92}{38}+0.06[/tex]
11.05%
The 2017 balance sheet of Kerber’s Tennis Shop, Inc., showed long-term debt of $1.87 million, and the 2018 balance sheet showed long-term debt of $2.21 million. The 2018 income statement showed an interest expense of $255,000. What was the firm’s cash flow to creditors during 2018? (A negative answer should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)
Final answer:
The firm's cash flow to creditors for the year 2018 is calculated by adding the year's interest expense to the change in long-term debt, resulting in a cash flow to creditors of $595,000.
Explanation:
The question is asking to calculate the firm's cash flow to creditors for the year 2018. To do this, we need to consider two main components: the change in long-term debt and the interest expense. The change in long-term debt is found by subtracting the 2017 long-term debt from the 2018 long-term debt. In this case, it is $2.21 million minus $1.87 million, which equals $0.34 million. The interest expense for the year is given as $255,000. The cash flow to creditors is the sum of these two amounts, which represents the total cash that the firm has paid to its creditors over the year.
To calculate the cash flow to creditors, we use the formula Cash Flow to Creditors = Interest Expense + (Long-Term Debtend of year - Long-Term Debtstart of year). When we plug in the numbers we get: $255,000 + ($2.21 million - $1.87 million) = $255,000 + $340,000 = $595,000. Therefore, the cash flow to creditors for the year 2018 is $595,000.
Final answer:
The firm's cash flow to creditors during 2018 is calculated by subtracting the increase in long-term debt from the interest expense, which equates to $255,000 - $340,000, resulting in a cash flow to creditors of -$85,000.
Explanation:
The firm's cash flow to creditors during 2018 is calculated by considering the change in long-term debt and the interest expense. First, we determine the amount of new debt incurred by subtracting the long-term debt at the start of the year from the long-term debt at the end of the year. The change in long-term debt is $2,210,000 - $1,870,000 = $340,000. Next, we consider the interest expense, which is a cash outflow to creditors. The total cash flow to creditors is then the interest paid minus the net increase in long-term debt.
Interest expense for 2018 was $255,000. So, the cash flow to creditors is the interest paid plus any repayments of principal on the debt, which can be assumed as the net increase in the debt from the previous year assuming no other transactions affecting long-term debt.
Therefore, the cash flow to creditors can be calculated as:
Cash flow to creditors = Interest expense + (Long-term debt at the start of the year - Long-term debt at the end of the year)
Cash flow to creditors = $255,000 + ($1,870,000 - $2,210,000)
Cash flow to creditors = $255,000 - $340,000
Cash flow to creditors = -$85,000
The negative sign indicates that the firm paid out more in long-term debt repayments and interest than it borrowed during the year, resulting in a net cash outflow to creditors.
The process whereby Starbucks works to provide satisfying jobs, a positive work environment, and fair compensation and benefits is called human resource management (HRM). True or False
Answer:
The answer is True.
Explanation:
When Starbucks chose to focus on improving these aspects at work, Starbucks is engaging in human resources management initiatives that put employee first. There are many form of human resources management activities; those mentioned in the question include impacts through efforts made in the these HRM subfield: compensation and benefit, job design, and organizational culture.
The Kaiser Medical Foundation claims that the cost to rehabilitate a football player following a head injury is at most $28,500. To test this claim a researcher surveys the medical billing records of 45 football players who were treated for head injuries. The average cost for rehabilitation in this randomly selected sample is $30,885 with a standard deviation of $1,123. Is the actual cost of rehabilitation at most $28,500 as Kaiser claims?
Answer: t-statistic > t-critical, we reject the null hypothesis.
Therefore, we conclude that kaiser claim is valid.
Explanation:
In this question,
Null hypothesis, [tex]H_{0}[/tex] : Actual cost of rehabilitation is greater than $28,500
Alternative Hypothesis, [tex]H_{a}[/tex] : Actual cost of rehabilitation at most $28,500
the medical billing records of 45 football players, n = 45
\bar{X} ⇒ average cost for rehabilitation = $30,885
[tex]H_{0}[/tex]: u > 28500 ⇒ Kaiser claims is not valid
[tex]H_{a}[/tex]: u ≤ 28500 ⇒ Kaiser claims is valid
t - statistic = [tex]\frac{\bar{X} - u}{\frac{SD}{\sqrt{n} } }[/tex]
= [tex]\frac{30885 - 28500}{\frac{1123}{\sqrt{45} } }[/tex]
= 14.25
From the t- distribution, with degree of freedom = n-1 ⇒ 45-1 = 44 and level of significance 0.05
t-critical value = 1.6802
So,
t-statistic > t-critical, we reject the null hypothesis.
Therefore, we conclude that kaiser claim is valid.
You are considering an investment in Justus Corporation’s stock, which is expected to pay a dividend of $2.25 a share at the end of the year and has a beta of 0.9. The risk-free rate is 4.9%, and the market risk premium is 5%. Justus currently sells for $46.00 a share, and its dividend is expected to grow at some constant rate, g. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years? (That is, what is ?)
The stock price at the end of year three can be predicted, given constant growth, through the Gordon Growth Model formula, but due to the absence of a defined growth rate in the problem, a definitive future stock price can’t be calculated.
Explanation:Understanding the future price of a stock involves considering dividends and the capital gain you could get by selling the stock at a higher price than you paid for it. Justus Corporation's stock currently sells for $46.00 a share and is expected to pay a dividend of $2.25 a share at the end of the year. The rate at which these dividends increase (g) is constant, but unknown.
Under the assumption of market equilibrium, the price of the stock can be computed using the Gordon Growth Model. This model suggests that the present value of a stock is the dividend to be received one year from now divided by the required rate of return minus the constant dividend growth rate (g).
The required rate of return is the risk-free rate plus beta times the market risk premium, which equates to 4.9% + 0.9 * 5% = 9.4%. This required return can be used to predict the stock price at the end of year three using the rearranged Gordon Growth Model formula: Price = Dividend/(Required rate of return - g). Without the growth rate (g), it's not possible to calculate a definitive future stock price.
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Gabat Inc. is a merchandising company. Last month the company's merchandise purchases totaled $67,000. The company's beginning merchandise inventory was $19,000 and its ending merchandise inventory was $22,000. What was the company's cost of goods sold for the month?
Answer:
$64,000 COST OF GOODS SOLD
Explanation:
Beginning Inventory + Purchase = Ending Iventory + Cost of Goods Sold
The first two represent the available goods for sale
(what we had plus we we bring during the period)
The second part is what happened:
How much we sold and how much we keep to next cycle.
Posting in the formula the know values:
67,000 + 19,000 = 22,000 + COGS
67,000+19,000 - 22,000 = COGS
Solving for the unknow values
64,000 = cogs
On August 1, 2018, Towson Corp., declared a 5% stock dividend on its common stock when the market value of the common stock was $19 per share. The balance in the common stock account, before the stock dividend was declared, was $800,000. The par value of all common stock is $10. What is the total dollar amount credited to additional paid in capital - common stock on August 1, 2018?
Answer:
Additional Paid-in credited by 360,000
Explanation:
Retained Earnings 760,000
Common Stock 800,000 x 5% x 10 = 400,000
Additional Paid-In 800,000 x 5% x 9= 360,000
Answer:
The dollar amount credited to common stock is $40,000
The dollar amount credited to additional paid in capital - common stock is $36,000
Explanation:
Before stock dividend is declared, there is 80,000 stocks outstanding ( that is, Common stock account balance/par value per stock = 800,000/10)
=> Stock to be distributed as dividend = 80,000 * 5% = 4,000 stocks
As the stock dividend is 5%, this is a small stock dividend => stock dividend is to be recorded at market value.
We have the entries:
Dr Retained Earnings 76,000
Cr Common stock dividend distributable 40,000
Cr Additional paid-in capital - common stock 36,000
So:
The dollar amount credited to common stock is $40,000
The dollar amount credited to additional paid in capital - common stock is $36,000
The Supply/Demand equilibrium price is __________ with an equilibrium quantity of _________. PRICE Column 1 Quantity Column 2 Quantity $5 11 92 $6 36 68 $7 50 50 $8 73 37 $9 88 26 $10 102 9 A. $7; 50 units B. $8; 110 units C. $5; 11 units D. $7; 100 units
Answer:
a) price of $7 and quantity of 50 units
Explanation:
According to what I'm understanding of the table you got the following:
[tex]\left[\begin{array}{ccc}Price&Supply&Demand\\5&11&36\\6&36&68\\7&50&50\\7&73&37\\...&....&...\end{array}\right][/tex]
The equilibrium will be when both forces meet in this case, it is clear that it is happening at a price equal to $7 which generates a supply of 50 units and a demand for 50 units. Both have the same value so it is equilibrium
Cameroon Corp. manufactures and sells electric staplers for $16 each. If 10,000 units were sold in December, and management forecasts 4% growth in sales each month, the dollar amount of electric stapler sales budgeted for February should be:Multiple Choice$179,978$166,400$173,056$160,000$187,177
Answer:
February sales = $173,056
Explanation:
units sold x sales price = sales revenue
10,000 x 16 = 160,000
Then we will apply the growth rate like compounding interest, because the growth accumulated over time:
[tex]December\:Sales * (1+ growth)^{time} = February\:Sales [/tex]
time will be how many months past from December to February.
[tex]160,000* (1.04)^{2} = February\:Sales [/tex]
February sales = 173056
MNO Corporation uses a job-order costing system with a predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data:Total estimated direct labor-hours 50,000Total estimated fixed manufacturing overhead cost $ 285,000Estimated variable manufacturing overhead per direct labor-hour $ 3.80Recently, Job P123 was completed with the following characteristics:Total actual direct labor-hours 20Direct materials $ 710Direct labor cost $ 500The total job cost for Job P123 is closest to: (Round your intermediate calculations to 2 decimal places.)
Answer:
Total cost for Job P123 = $1,400
Explanation:
For Job P123 we have following information
Total labor hours = 20
Direct Materials = $710
Direct Labor cost = $500
Manufacturing Overhead cost = 20 hours X $3.8 per labor hour = $76
Fixed Manufacturing Overhead Cost Allocated to this job =
($285,000 / 50,000 ) X 20 hours = $114
The total cost for Job P123 = $710 + $500 + $76 + $114 = $1,400
Note: Fixed Manufacturing cost is allocated based on number of actual direct labor hours, as the entire activity of the organisation is not provided.
The total cost for Job P123 = $1,400
Helsinki Corporation has the following stockholders' equity information: Common Stock (50,000 shares outstanding, $2 par value) Preferred Stock (10,000 shares outstanding, $20 par value, 4% noncumulative stock) In 2016, Helsinki declared and paid dividends of $4,000 to preferred stockholders. In 2017, Helsinki declared and paid dividends of $20,000. How much of the 2017 dividend was distributed to preferred shareholders?
Answer:
$12,000
Explanation:
Whenever there are Preferred shares, then whenever the dividend is declared firstly it is paid to Preferred stock holders.
Also amount of dividend shall be at the rate specified.
In the given case amount of dividend distributed is $20,000.
Rate of preferred stock = 4%
Dividend for preferred stock = 10,000 [tex]\times[/tex] $20 = $200,000 [tex]\times[/tex] 4% = $8,000
Now provided dividend paid to preferred stock of $4,000 in year 2016
Therefore $4,000 will have to be paid in current year.
Total dividend to be paid to preferred stock = $8,000 + $4,000 = $12,000
Note: In case of non cumulative shares dividend to preference stock is paid in priority and full, it cannot be less than the rate prescribed.
Total dividend to be paid to preferred stock = $8,000 + $4,000 = $12,000
Which of the following statements is CORRECT? Preferred stockholders have a priority over bondholders in the event of bankruptcy to the income, but not to the proceeds in a liquidation. The preferred stock of a given firm is generally less risky to investors than the same firm's common stock. Corporations cannot buy the preferred stocks of other corporations. Preferred dividends are not generally cumulative.
Answer:
(B) The preferred stock of a given firm is generally less risky to investors than the same firm's common stock
Explanation:
(A) preferred shareholders have the rights to company assets first FALSE
(B) the preferred shareholders receive dividends before the common stock, and their dividend can be cumulative over time. So their risk is lower than common stock. TRUE
(C) corporation can purchase the preferred stock of other corporation FALSE
(D) the preferred dividends can be cumulative FALSE
Final answer:
Preferred stockholders have priority over bondholders in bankruptcy. Preferred stock is less risky than common stock.
Explanation:
Preferred stockholders have priority over bondholders in the event of bankruptcy to the income, but not to the proceeds in a liquidation. Preferred stock is generally less risky to investors than common stock, as it pays fixed dividends and enjoys a favored position in case of liquidation.
Kim is thinking of organizing a fundraiser to support a local charity. She has planned to rent a banquet hall and provide the guests with food, entertainment, and various party favors. She has decided to charge $500 a person. After researching around town, Kim has discovered the following costs:
Fixed Costs
Rental fee of banquet hall $150,000Advertising 50,000Entertainment 4,000Variable Costs Per Guest
Food $12Other miscellaneous costs 8How many guests must attend in order for Kim to break even?
Kim must have 425 guests attend her fundraising event in order to break even, considering her total fixed costs of $204,000 and variable costs of $20 per guest with a ticket price of $500 per person.
Explanation:Break-Even AnalysisTo calculate the number of guests needed for Kim to break even on her fundraiser, we need to consider both fixed and variable costs. The fixed costs, which include the rental fee, advertising, and entertainment, total $204,000 ($150,000 + $50,000 + $4,000). The variable costs per guest are the sum of food and miscellaneous costs, which total $20 per guest ($12 for food + $8 for miscellaneous costs). Kim is planning to charge each guest $500.
To find the break-even point, we can use the following formula:
Fixed Costs / (Price per Person - Variable Costs per Person) = Break-Even Point
Using this formula, we get $204,000 / ($500 - $20) = $204,000 / $480 = 425 guests. Therefore, Kim must have 425 guests attend her fundraising event to break even.
Suppose Joe and Mike purchase identical houses for $200,000. Joe makes a down payment of $40,000 while Mike only puts down $10,000. Assuming everything else equal, who is more highly leveraged? If house prices in the neighborhood immediately fall by 10 percent (before any mortgage payments are made), what would happen to Joe’s and Mike’s net worth?
Explanation:
Joe and Mike both purchase identical houses which has a net worth of $200,000.
Down Payment made by Joe: $40,000
Down Payment made by Mike: $10,000
Down Payment is the total of his net worth for both individuals.
A) Who is more highly leveraged?
Mike borrowed $190,000 and Joe borrowed $160,000
Mike is more leveraged because he borrows much more to purchase a $200,000 house.
Mike's leverage ratio:
LR = $200,000/$10,000 = 20.
Joe's leverage ratio:
LR = $200,000/$40,000 = 5.
B) If housing prices in the neighborhood immediately fall by 10%, what would happen to Joe'sand Mike's net worth?
ROE = (ROA) (LR)
Mike:
ROE = (-10%) (20) = -200%
Mike will have a decrease of 200% in his net worth. He will surly go bankrupt as the value of his assets are less than the value of the liabilities on him.
Joe:
ROE = (-10%) (5) = -50%
Mike will have a decrease of 50% in his net worth. He still has the worth of his property because his assets are still greater than his liabilities.
The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 20% a year for the next four years and then decreasing the growth rate to 5% per year. The company just paid its annual dividend in the amount of $1.00 per share. What is the current value of one share if the required rate of return is 9.25%?
Answer:
Intrinsic Value = $38.0025
Explanation:
[tex]\left[\begin{array}{ccc}Year&Dividends&Present \: Value\\0&1&-\\1&1.2&1.0984\\2&1.44&1.2065\\3&1.728&1.3252\\4&2.0736&1.4556\\5&51.2301&32.9168\\Intrinsic&Value&38.0025\\\end{array}\right][/tex]
Fist, we calcualte the increase of the dividends, by multipling by (1+growth) 1.20 until year 4.
At year 5 we multiply by 1.05
Because from here the company will have a fixed growth rate, we can apply the dividend growth model
[tex]\frac{divends}{return-growth} = Intrinsic \: Value[/tex]
1.52838/ (0.0925-0.05) = 51.2301
Next we have to bring all these dividends, which are placed in futures date, to present value:
[tex]\frac{Principal}{(1 + rate)^{time} } = PV[/tex]
for example
[tex]\frac{1.728}{(1 + 0.0925)^{3} } = PV[/tex]
PV = 1.3252
Lastly, we add all the PV to get the intrinsic value of the share today.
John Jansen, an employee of Redwood Company, had gross earnings for the month of May of $4,000. FICA taxes are 7.65% of gross earnings (all earnings are subject), federal income taxes amount to $675 for the month, state income taxes are 3% of gross earnings, and Jansen authorized voluntary deductions of $5 per month to the United Way. What is the net pay for John Jansen?
Answer:
The net pay for John Jansen is $2894
Explanation:
For calculating the net pay for John Jansen we have to subtract all the FICA taxes and federal income taxes and also state income taxes, with authorized voluntary deductions also being subtracted from the gross earnings .
Given information - Gross earning = $4000
FICA taxes = 7.65%
Federal income taxes = $675
State income taxes = 3%
Authorized voluntary deductions = $5
One important to remember here is that FICA taxes and State taxes would be calculated on the gross earnings of John
FICA taxes = 7.65% of $4000
= .0765 x $4000
= $306
State taxes = 3% of $4000
= .03 x $4000
= $120
NET PAY = gross earnings - FICA tax - state tax - federal income tax -
authorized voluntary deduction
= $4000 - $306 - $120 - $675 - $5
= $2894
A U.S. exporter has a Thai baht account receivable resulting from an export sale on June 1 to a customer in Thailand. The exporter signed a forward contract on June 1 to sell Thai baht and designated it as a cash flow hedge of a recognized Thai baht receivable. The spot rate was $0.022 on that date, and the forward rate was $0.021. Which of the following did the U.S. exporter report in net income?
a. Discount expense
b. Discount revenue
c. Premium expense
d. Premium revenue
Answer: the correct answer is a. discount expense
Explanation: The spot price is the current price at which a commodity is traded. The exporter will report in its net income a discount because in the future the rate is lower.