Answer:
Check the following calculations
Explanation:
If Lars makes 24 boxes of cookies,
how many bags of sugar will he use? Answer- Lars will use 24 bags of of suger.
Will he use peanut or soybean oil ? Answer - Yes. He will use peanut & soybean oil
How many canisters - 24 number of canisters of peanut oil & 48 number of canisters of soybean oil
The minimum cost of producing 24 boxes of cookies. = 24(5+9+2x19) = 24(52) = $1,248
(b) Suppose the price of soybean oil decreases by $1 and the price of peanut oil increases by $1. How will these changes affect the ?
minimum cost of producing 24 boxes of cookies = 24[5+(9+1)+2x(19-1)] = 24 [51]= $ 1,224.
Lars's cookie production employs a mathematical model to determine the number of ingredients needed to make 24 boxes of cookies, considering the costs of sugar, peanut oil, and soybean oil. A price change in peanut and soybean oil will impact the minimum cost of production. The calculation involves finding the minimum of two functions and adjusting for price changes.
Explanation:To solve Lars's cookie production cost, we must find the minimum of two expressions: su (bags of sugar), and po + 2so (canisters of peanut oil and twice the canisters of soybean oil). Given that Lars wants to make 24 boxes of cookies, we have y = min{su, po + 2so} = 24. Assuming he uses only one type of oil for simplicity, and that oil is either peanut oil (po) or soybean oil (so), we can write two separate equations: su = 24 and po + 2so = 24.
We then calculate the minimum cost of producing 24 boxes of cookies using the given ingredient prices: $5 per bag of sugar, $9 per canister of peanut oil, and $19 per canister of soybean oil.
If the price of soybean oil decreases by $1 (to $18) and the price of peanut oil increases by $1 (to $10), these changes will affect the minimum cost of producing 24 boxes of cookies. The new costs for oils will potentially make soybean oil a more attractive option, depending on the quantities needed, hence, adjusting the formula for calculating the minimum cost.
Last year, Pat spent $10 a day on miscellaneous things like downloading apps, buying music, and eating out. If Pat had invested that $3650 in a well-diversified investment paying a real return of 7 percent, compounded annually, how much would Pat have in 10 years?
Answer:
Pat would have $7,180.1 in 10 years
Explanation:
Data provided in the question:
Principal or amount of money deposited, P = $3650
Interest rate = 7%
Time, t = 10 years
for compounded annually, n = 1
Now,
The Future value (A) using compounding is given by the formula as:
[tex]A = P \left( 1 + \frac{r}{n} \right)^{\Large{n \times t}}[/tex]
on substituting the respective values, we get
Amount after 10 years = $3650 × (1 + 0.07)¹⁰
or
Amount after 10 years = $3650 × 1.967151
or
Amount after 10 years = $7,180.1
Pat would have $7,180.1 in 10 years
Using the compound interest formula, Pat's investment of $3650 at a 7% annual return, compounded annually for 10 years, would grow to approximately $7,225.22.
Explanation:If Pat had invested $3650 in a well-diversified investment with a real return of 7 percent, compounded annually, after 10 years, the investment would grow according to the formula for compound interest: A = P(1+r/n)^(nt), where P is the principal amount, r is the annual interest rate (in decimal form), n is the number of times that interest is compounded per year, t is the time the money is invested for in years, and A is the amount of money accumulated after n years, including interest.
In this case, Pat's initial investment (P) is $3650, the annual interest rate (r) is 7% or 0.07, the interest is compounded annually which makes n = 1, and the time frame (t) is 10 years. Substituting these values into the compound interest formula, we get: A = 3650(1 + 0.07/1)^(1*10).
This simplifies to: A = 3650(1.07)^10. Calculating the value, Pat's investment would grow to approximately $7,225.22 in 10 years.
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A fall in the price level: Multiple Choice reduces the value of money in peoples' pockets, so people buy less goods. reduces the value of money in peoples' pockets, so people buy more goods. increases the value of money in peoples' pockets, so people buy more goods. increases the value of money in peoples' pockets, so people buy less goods.
Answer:
increases the value of money in peoples' pockets, so people buy more goods.
Explanation:
According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
If price level falls, the value of money rises as a consumer would be able to buy the same basket of goods at a reduced price. This would induce a consumer to buy more goods.
A rise in price levels reduces the value of money in peoples' pockets, so people buy less goods.
I hope my answer helps you.
A machine that cost $400,000 has an estimated residual value of $40,000 and an estimated useful life of four years. The company uses straight-line depreciation. Calculate its book value at the end of year 3What is the Book Value?A machine that cost $400,000 has an estimated residual value of $40,000 and an estimated useful life of 20,000 machine hours. The company uses units-of-production depreciation and ran the machine 3,000 hours in year 1, 8,000 hours in year 2, and 6,000 hours in year 3.Calculate its book value at the end of year 3.A machine that cost $400,000 has an estimated residual value of $40,000 and an estimated useful life of four years. The company uses double-declining-balance depreciation.Calculate its book value at the end of year 3.
Answer: $130,000
$205,600
$50,000
Explanation:
Depreciation expense using the straight line depreciation method = (Original cost of asset - Salvage value) / useful life
Depreciation expense = ( $400,000 - $40,000) / 4 = $90,000
Net book value for year 1 =$400,000 - $90,000 = $310,000
Net book value for year two = $310,000 - $90,000 = $220,000
Net book value for year 3 = $220,000 - $90,000 = $130,000
Deprecation expense using the unit of production method = [ (Original cost of asset - Salvage value) / total estimated productive capacity] × actual productive use of asset
($400,000 - $40,000) / 20,000 = $18
Depreciation expense for year 1 = $18 × 3000 =$54,000
Net book value for year 1 = $400,000 - $54,000 = $346,000
Depreciation expense for year 2 = $18 × 1800 = $32,400
Net book value for year two = $346,000 - $32,400 = $313,600
Depreciation expense for year 3 = $18 × 6000 = $108,000
Net book value for year three = $313,600 - $108,000 = $205,600
In the double declining method = 2 × (1/number of years ) =2 × (1÷4) = 0.5
Deprecation expense using the double declining method = 0.5 × net book value
Depreciation expense for year 1 = 0.5 × $400,000=$200,000
Net book value for year 1 = $400,000 -$200,000=$200,000
Depreciation expense for year two = $200,000 × 0.5 = $100,000
Net book value for year two = $200,000 - $100,000 = $100,000
Depreciation expense for year 3 = $100,000 × 0.5 =$50,000
Net book value for year three = $100,000 - $50,000 = $50,000
The book value at the end of year 3 using straight-line depreciation is $130,000. Using units-of-production depreciation, it's $94,000, and using double-declining-balance depreciation, it's $50,000.
To calculate the book value of the machine at the end of year 3, we'll address each depreciation method separately.
Straight-Line Depreciation
A machine costs $400,000 with an estimated residual value of $40,000 and an estimated useful life of four years. The annual depreciation expense using the straight-line method is:
Annual Depreciation Expense = (Cost - Residual Value) / Useful Life
Annual Depreciation Expense = ($400,000 - $40,000) / 4 = $90,000
After three years, the total depreciation is:
Total Depreciation = Annual Depreciation Expense * Number of Years
Total Depreciation = $90,000 * 3 = $270,000
The book value at the end of year 3 is:
Book Value = Cost - Total Depreciation
Book Value = $400,000 - $270,000 = $130,000
Units-of-Production Depreciation
A machine costs $400,000 with an estimated residual value of $40,000 and an estimated useful life of 20,000 machine hours. The company uses units-of-production depreciation and ran the machine 3,000 hours in year 1, 8,000 hours in year 2, and 6,000 hours in year 3. The depreciation expense per machine hour is:
Depreciation Expense per Hour = (Cost - Residual Value) / Total Estimated Hours
Depreciation Expense per Hour = ($400,000 - $40,000) / 20,000 = $18
Total hours used in three years is 3,000 + 8,000 + 6,000 = 17,000 hours. The accumulated depreciation is:
Accumulated Depreciation = Depreciation Expense per Hour * Total Hours
Accumulated Depreciation = $18 * 17,000 = $306,000
The book value at the end of year 3 is:
Book Value = Cost - Accumulated Depreciation
Book Value = $400,000 - $306,000 = $94,000
Double-Declining-Balance Depreciation
A machine costs $400,000 with an estimated residual value of $40,000 and an estimated useful life of four years. The depreciation rate for the double-declining-balance method is:
Depreciation Rate = 2 / Useful Life
Depreciation Rate = 2 / 4 = 50%
Year-by-year depreciation calculations:
Year 1: Depreciation = $400,000 * 50% = $200,000; Year-end Book Value = $400,000 - $200,000 = $200,000
Year 2: Depreciation = $200,000 * 50% = $100,000; Year-end Book Value = $200,000 - $100,000 = $100,000
Year 3: Depreciation = $100,000 * 50% = $50,000; Year-end Book Value = $100,000 - $50,000 = $50,000
The book value at the end of year 3 is $50,000.
In our lecture about Strategic fit, we learned that a company's competitive strategy defines the set of customer needs that it seeks to satisfy through its products and services, and its supply chain strategy determines the nature of procurement and transportation of materials as well as the manufacture and distribution of the product.
Answer:
The approach is correct but it is necessary to complete the competitive advantage, with the addition that to meet the needs of the client, it is necessary to differentiate from the competition and that is what makes an advantage in the market. Example: Shampoo companies for men, being specialized for men's hair care, have a competitive advantage in the market for these products where the target is usually women.
In relation to the supply chain, the important thing is to obtain maximum efficiency in each of the processes. Example: That the time in elaboration of the products is the best in the market.
Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land six years ago for $4.6 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent these facilities from a competitor instead. If the land were sold today, the company would net $4.9 million. The company wants to build its new manufacturing plant on this land; the plant will cost $12.1 million to build, and the site requires $730,000 worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project?
Answer:
$17,730,000
Explanation:
The computation of the proper cash flow amount is shown below:
= Land sale value + new manufacturing plant on this land + grading cost before it is suitable for construction
= $4,900,000 + $12,100,000 + $730,000
= $17,730,000
We simply added the land sale value, new manufacturing plant on this land, and the grading cost before it is suitable for construction so that the correct amount can come
All other information which is given is not relevant. Hence, ignored it
Walgreens Boots Alliance’s Sales, Cost of Goods Sold, and Gross Profit
The following information was summarized from the consolidated balance sheets of Walgreens Boots Alliance, Inc. and Subsidiaries (the company created with the combination of Walgreens and Boots Alliance) as of August 31, 2015 and 2014 and the consolidated statements of earnings for the years ended August 31, 2015 and 2014. All amounts are from Walgreens Boots Alliance’s 2015 Form 10-K.
(millions of dollars) 2015 2014
Accounts receivable, net $6,849 3,218
Cost of sales 76,520 54,823
Inventories 8,678 6,076
Net sales 103,444 76,392
1. Calculate the gross profit ratios for Walgreens Boots Alliance for 2015 and 2014 If required, round the percentage to one decimal place.
Walgreen's 2015 gross profit ratio: %
Walgreen's 2014 gross profit ratio: %
Answer:
a. 26%
b. 28.2%
Explanation:
Consider the following formula:
Gross profit ratio = Net sales - Cost of sales / Net sales
Walgreen's 2015 gross profit ratio: (103444-76520)/103444
26.0%
Walgreen's 2014 gross profit ratio: (76392-54823)/76392
28.2%
Final answer:
The gross profit ratio for Walgreens Boots Alliance was 26.0% for 2015 and 28.2% for 2014, calculated by subtracting the cost of sales from net sales and dividing by net sales for each respective year.
Explanation:
To calculate the gross profit ratio for Walgreens Boots Alliance for the years 2015 and 2014, we need to subtract the cost of sales from net sales for each year, and then divide the result by net sales. The formula is: Gross Profit Ratio = (Net Sales - Cost of Sales) ÷ Net Sales.
For 2015:
Gross Profit = Net Sales - Cost of Sales = $103,444 million - $76,520 million=$26,924 million.
Gross Profit Ratio = $26,924 million ÷ $103,444 million = 0.2602 or 26.0% (rounded to one decimal place).
For 2014:
Gross Profit = Net Sales - Cost of Sales = $76,392 million - $54,823 million=$21,569 million.
Gross Profit Ratio = $21,569 million ÷ $76,392 million = 0.2824 or 28.2% (rounded to one decimal place).
Suppose Nicholas Ltd. just issued a dividend of $.60 per share on its common stock. The company paid dividends of $.35, $.40, $.45 and $.50 per share in the last four years. If the stock currently sells for $10, what is your best estimate of the company's cost of equity capital?
Answer:
Growth rate (g) = n-1√(Latest dividend) - 1
Earliest dividend
= 4-1√($0.50/0.35) -1
= 3√(1.4286) -1
= 0.1263 = 12.63%
Cost of equity(Ke) = Do(1+g)/Po + g
= $0.60(1+0.1263)/$10 + 0.1263
= $0.60(1.1263)/$10 + 0.1263
= 0.0068 + 0.1263
= 0.1331 = 13.31%
Explanation:
In this case, we need to calculate growth rate using dividend growth model as calculated above. Then, we will calculate cost of equity of the firm on the ground that dividend has been paid.
The country of Pepperland exports steel to the Land of Submarines. Information for the quantity demanded (Qd) and quantity supplied (Qs) in each country, in a world without trade, are given in the tables below. Pepperland Price Qd Qs 60 230 180 70 200 200 80 170 220 90 150 240 100 140 250 Land of Submarines Price Qd Qs 60 430 310 70 420 330 80 410 360 90 400 400 100 390 440a) What would be the equilibrium price and quantity in each country in a world without trade? Pepperland: Price = $ , Quantity = Land of Submarines: Price = $ , Quantity = b) What would be the equilibrium price and quantity in each country if trade is allowed to occur? Price = $ , Quantity = c) How much steel will Pepperland export without a quota? units If the Land of Submarines imposes an anti-dumping import quota of 30, will it benefit or injure consumers and producers in each country. Land of Submarines: It will consumers and producers. Pepperland: It will consumers and producers. e) Will your answer to part d change if The Land of Submarines increases the import quota to 70? (Yes, No, or No effect)
Answer:
Please see attachment
Explanation:
Please see attachment
Barin Retail Outlets incorrectly recorded inventory in 2016. Rather than recording ending inventory as $960,000, Barin's accounting manager entered $690,000, understating ending inventory by $270,000. Barin's controller discovered the error in 2018. Prepare the journal entry necessary to correct the inventory error, ignoring any income tax effects.
Answer:
Please see attachment
Explanation:
Please see attachment
Workplace conflict has increased in the world today because:
Select one:
a.
the workplace is dominated by people whose behavioral styles are compatible.
b.
workers tend to share similar experiences and expectations.
c.
workers have less decision-making latitude.
d.
the workplace has flatter chains of command.
Answer:
The correct answer is letter "C": workers have less decision-making latitude.
Explanation:
Nowadays, most of the decision making is given to high executives. Companies assign that labor to them because it is believed that their level of specialization will allow them to make better decisions. Though, most workers are set aside by doing this generating conflict among organizations since employees' goals are not being taken into consideration.
Final answer:
Workplace conflict has increased due to changes in organizational structures, such as flatter chains of command, which can lead to increased potential for conflict as individuals navigate the dynamics of collaborative work within diverse teams.
Explanation:
The increase in workplace conflict in the world today may be attributed to several underlying factors. Modern work environments often involve flat organizational structures, a shift in management styles towards more collaborative and less hierarchical systems, and the integration of diverse work teams. These changes have led to a decrease in decision-making latitude as individuals adapt to group-based approaches which demand consensus and collective agreement. Furthermore, with the advent of the information age and the increasing demand for employees to engage in more thinking and decision-making tasks, the potential for friction increases when individual autonomy clashes with the necessity for teamwork.
As organizations opt for flatter chains of command, employees are expected to form collegial relationships not only with their co-workers but also with their managers, altering the traditional dynamics and potentially increasing the likelihood of conflict. Nonetheless, while conflict can indicate issues within a team or organization, it also offers opportunities for growth, learning, and innovation if handled constructively. Thus, the correct answer to the question would be option d: the workplace has flatter chains of command.
All of the following arguments are presented in favor of inflation targeting EXCEPT
(A) it would reduce the lags inherent in monetary policy.
(B) it would provide an anchor for inflationary expectations.
(C) it would draw attention to what the central bank can achieve in practice.
(D) it would promote accountability by providing a yardstick by which policy can be measured.
Answer:
The correct answer is letter "A": it would reduce the lags inherent in monetary policy.
Explanation:
Inflation targeting is a monetary policy in which the central bank sets a specific target for medium-term inflation and declares the target for inflation. The idea is that maintaining price stability is the best that monetary policy can do to support the economy in the long run.
Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 60,000 parts is $160,000, which includes fixed costs of $50,000 and variable costs of $110,000. The company can buy the part from an outside supplier for $3.00 per unit, and avoid 30% of the fixed costs. If Harvey Automobiles makes the part, how much will its operating income be?
Answer:
$55,000
Explanation:
The computation of the change in operating income is shown below:
= Buying cost - making cost
where,
Buying cost = Cost of producing parts × outside supplier per unit
= 60,000 parts × $3
= $180,000
And, the making cost would be
= Variable cost + fixed cost × given percentage
= $110,000 + $50,000 × 30%
= $110,000 + $15,000
= $125,000
So, the operating income would be
= $180,000 - $125,000
= $55,000
On small projects, the cost management plan may be as simple as ensuring accurate estimates are made, securing the funding, and developing cost reporting procedures to ensure that the money is spent correctly. True False
Answer:True
Explanation:
The first in a project is making an estimate of the project, a wrong estimate will lead to the failure of the project for this does not only determined the viability of the project but also help in providing adequate liquidity.
Availability of needed fund gives the optimism than the project will be completed and a follow up to ensure money spent adds value to the project as estimated will ensure successful completion of the project.
Suppose an increase in the monetary base of $300,000 increases the quantity of money by $600,000. Calculate the money multiplier.
Answer:
Calculate the money multiplier.MM : 2
Explanation:
The money multiplier is the number of times that the monetary base is used in the economy, it's calculated as follows:
Money Supply = Monetary Base * Money Multiplier
Money Multiplier = Money Supply / Monetary Base
Money Multiplier = 600 / 300 = 2
The Money Supply is affected by the reserve of money that the banks keeps as required reserves and excess reserves, so, total reserves, it means less money to spent or lent.
The money multiplier used in this instance is 2.
What is Money Multiplier?
This refers to the number of times in which the monetary base is used in an economy,
Hence,e to find the money multiplier, we would:
Money Supply = Monetary Base * Money Multiplier Money Multiplier = Money Supply / Monetary Base Money Multiplier = 600 / 300 = 2Read more about money multiplier here:
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An increase in the price of oranges would lead to
an increased supply of oranges.
a reduction in the prices of inputs used in orange production.
an increased demand for oranges.
a movement up and to the right along the supply curve for oranges.
Answer:
a movement up and to the right along the supply curve for oranges.
Explanation:
The supply curve exhibits the price and quantity.
Quantity on the x axis that reflects the quantity supplied.
Price on the y axis that reflects the price at which the particular commodity is offered.
Accordingly, when there is increase in prices of orange the y axis will move upward, also as there is increase in price the suppliers would supply more at the price, accordingly x axis will also grow.
Accordingly the supply graph will move upward in the right direction.
An increase in the price of oranges results in a movement up and to the right along the supply curve, indicating a higher quantity supplied at a higher price. Other factors, such as changes in supply or demand, would shift their respective curves. Understanding these distinctions helps in analyzing market behaviors.
An increase in the price of oranges leads to a specific reaction in the market, described by the law of supply and demand. If the price of oranges rises, there will be a movement up and to the right along the supply curve, indicating a higher quantity supplied at a higher price. This movement is caused by producers' motivation to supply more due to the higher potential profit.
Other options listed, such as an increase in supply of oranges or a reduction in input prices, would result in a rightward shift of the supply curve, not merely a movement along it. Similarly, an increase in demand for oranges would shift the demand curve to the right, leading to higher equilibrium prices and quantities.
Key Observations:
An increase in price causes movement along the supply curve.Change in supply (curve shift) is influenced by factors like weather and technology.Change in demand reflects consumer preferences and needs.FancyTrends Inc., a handbag manufacturing company, assembles handbags in an assembly line using 10 workstations. The target output for an 8 hour workday is 120 bags. The sum of the task times is 30 minutes/bag. The cycle time is 4 minutes/bag. The assembly-line efficiency is _____.
Answer:
75%
Explanation:
Given that,
No. of workstations used = 10
Target output for an 8 hour workday = 120 bags
Sum of the task times = 30 minutes/bag
Cycle time = 4 minutes/bag
Assembly-line efficiency:
= Sum of the task times ÷ (Number of work stations × Cycle time)
= 30 ÷ (10 × 4 )
= 30 ÷ 40
= 0.75
= 75%
Therefore, The assembly-line efficiency is 75%.
Final answer:
The assembly-line efficiency of FancyTrends Inc. is calculated using the provided task times, cycle time, and the number of workstations and is found to be 75%.
Explanation:
The student has provided information about an assembly line at FancyTrends Inc., a handbag manufacturing company, and is seeking to calculate the assembly-line efficiency. The assembly-line efficiency can be calculated by dividing the sum of the individual task times by the product of cycle time and the number of workstations. Using the information provided: The sum of the task times is 30 minutes per bag, the cycle time is 4 minutes per bag, and there are 10 workstations. Thus, efficiency can be found using the following formula:
E = (Sum of task times) / (Cycle time × Number of workstations)
E = (30 minutes/bag) / (4 minutes/bag × 10 workstations)
E = 30 / 40
E = 0.75 or 75%
Therefore, the assembly-line efficiency of FancyTrends Inc. is 75%.
On January 1, 20X5, Blaugh Co. signed a long-term lease for an office building. The terms of the lease required Blaugh to pay $10,000 annually, beginning December 30, 20X5 and continuing each year for 30 years. The lease qualifies as a finance lease. On January 1, 20X5, the present value of the lease payments is $112,500 at the 8% interest rate implicit in the lease. In Blaugh's December 31, 20X5 balance sheet, the finance lease liability should be
Answer
The answer and procedures of the exercise are attached in the following image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Final answer:
The finance lease liability for Blaugh Co. in its December 31, 20X5 balance sheet should be $111,500. This accounts for one lease payment of $10,000 and the accrued interest at 8% on the present value of the lease payments since the beginning of the year.
Explanation:
The question involves calculating the finance lease liability in the balance sheet for Blaugh Co. at the end of the year 20X5. On January 1, 20X5, the present value of the lease payments was $112,500 at an 8% interest rate. Since the lease payments begin on December 30, 20X5, Blaugh Co. would have made one lease payment of $10,000 by the end of 20X5. After making the first lease payment, the balance of the lease liability needs to be adjusted to reflect this payment.
Before the payment, the lease liability stands at $112,500. To find the lease liability at the end of 20X5, we must consider the interest accrued and the payment made. The interest for the year is calculated on $112,500 at 8%, which amounts to $9,000 ($112,500 x 0.08). On December 30, 20X5, the payment of $10,000 is made, which is more than the accrued interest, therefore reducing the lease liability. Subtracting the lease payment from the sum of the initial liability and the interest accrued gives us the new lease liability:
Initial lease liability: $112,500
Accrued interest for 20X5 (at 8% of $112,500): $9,000
Total before payment: $121,500
Lease payment made on December 30, 20X5: $10,000
Finance lease liability on December 31, 20X5: $111,500 ($121,500 - $10,000)
Wen, a consumer researcher, is conducting a research on the buying behavior of the Hispanics. As part of her study, she calculates a consumer’s buying power by relating it to the consumer’s income. The consumer attributes that Wen employs in her research can best be described as _____?
Answer:
demographics.
Explanation:
Demographic attributes refer to the particular characteristics common to a particular regional population. In a demographic survey factors such as gender, race, age and income are analyzed.
Demographic data help to understand peculiar characteristics of a given population, through the data it is possible to understand if the individual characteristics of a participant are relevant to configure as a representative sample of the population, in order to assist in the generalization and development of policies and research. Market
A company's old machine, which cost $45,000 and had accumulated depreciation of $34,500, was traded in on a new machine of like purpose having an estimated 20-year life with an invoice price of $55,000. The company also paid $48,000 cash, along with its old machine to acquire the new machine. The value of new machine should be recorded at:
Answer:
Total Value of New Machine = $58500
Explanation:
given data
old machine cost = $45,000
accumulated depreciation = $34,500
invoice price = $55,000
cash paid = $48,000
to find out
new machine should be recorded
solution
we get here first value of Old Machine after Depreciation is
value of Old Machine after Depreciation = Old Machine Value-Depreciation .............1
put here value
value of Old Machine after Depreciation = $45,000 - $34,500
value of Old Machine after Depreciation = $10500
and
Total Value of New Machine = Cash Paid + Balance Value of Old Machine .......2
Total Value of New Machine = $48,000 + $10500
Total Value of New Machine = $58500
At the end of the current year, the following information is available for both Pulaski Company and Scott Company. Pulaski Company Scott Company Total assets $ 860,000 $ 440,000 Total liabilities 360,000 240,000 Total equity 500,000 200,000 Required: 1. Compute the debt-to-equity ratios for both companies
Answer:
ratio = 1.2 : 1
Explanation:
given data
Pulaski company scott company
Total assets 860,000 440,000
total liabilities 360,000 240,000
total equity 500,000 200,000
to find out
Compute the debt-to-equity ratios for both companies
solution
we get here debt-equity ratio that is express as
debt-equity ratio = [tex]\frac{Debt}{equity}[/tex]
here we get
Pulaski company = [tex]\frac{total\ liabilities}{equity}[/tex]
Pulaski company = [tex]\frac{360000}{500000}[/tex]
ratio are = 1.2 : 1
The debt-to-equity ratio is calculated by dividing a company's total liabilities by its stockholders' equity. For Pulaski Company, the ratio is 0.72 and for Scott Company, it is 1.2.
Explanation:The debt-to-equity ratio is a financial ratio indicating the relative proportion of shareholders'equity and debt used to finance a company's assets. This ratio is calculated by dividing a company's total liabilities by its stockholders' equity. For Pulaski Company, using the provided information, the debt-to-equity ratio would be: 360,000 / 500,000 = 0.72. For Scott Company, the debt-to-equity ratio would be: 240,000 / 200,000 = 1.2. This means Pulaski Company uses 72% debt to every dollar of equity, while Scott Company uses 120% debt to every dollar of equity in its capital structure.
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A firm must decide whether to make a compo- nent part in-house or to contract it out to an in- dependent supplier.
Manufacturing the part requires a nonrecoverable investment in special- ized assets.
The most efficient suppliers are lo- cated in countries with currencies that many foreign exchange analysts expect to appreciate substantially over the next decade.
What are the pros and cons of (a) manufacturing the compo- nent in-house and (b) outsourcing manufacturing to an independent supplier?
Which option would you recommend? Why?
Answer: Manufacturing in-house gives a guarantee of supply, improved skills in manufacturing and ensures continuity of business.
In house manufacturing may not be comparatively cost effective as there may be other firms who can produce cheaper and may require additional unrecoverable capital expenditure which may be back breaking to the firm.
Outsourcing manufacturing may be cheaper and equally save the company sunk cost in experimentation procedures towards producing a new product.
However outsourcing manufacturing may not guarantee continuous supply due difficulty or competition from the company taken up the outsource contract and firm losses opportunity to diversify into new products which may be beneficial on the long run.
In house manufacturing is a better option for it guarantee continuous supply, it provides shield from shocks of international trade obstacles like currency devaluation or political instability, it provides additional skills and products for diversification, increase turnover and finally continuous existence.
James Company has 1,400 shares of $100 par preferred stock, which were issued at par. It also has 29,000 shares of common stock outstanding, and its total stockholders' equity equals $615,600. The book value per common share is:
Answer:
$16.4
Explanation:
Given: Preferred stock= 1400 shares of $100
Total share outstanding= 29000
Total shareholder´s equity= $615600.
Now, calculating the book value per shares.
Formula; Book value per shares= [tex]\frac{(Total\ equity-preferred\ equity)}{Total\ shares\ outstanding}[/tex]
Preferred stock= [tex]1400 shares \times \$ 100= \$ 140000[/tex]
∴ Preferred stock= $140000.
Book value per shares= [tex]\frac{(615600-140000)}{29000} = \frac{475600}{29000}[/tex]
∴ Book value per share= $16.4
Consider planned aggregate expenditure model: planned investment, I = $60 billion; government spending G = $50 billion; Taxes are equal to $60 billion; the consumption function, C(Y-T)= $80 billion + .75(Y-T).
a. What is the equilibrium level of output?
b. If output in the economy started at 600 billion, what would happen to inventories and output?
c. At the equilibrium level of output: what are total consumption and savings?
d. If taxes decreased to $50 billion, what would be the new level of equilibrium output? Calculate the tax multiplier?
e. If taxes stayed at $60 billion but government spending increased to $60 billion, what would be the new level of equilibrium output? Calculate the government spending multiplier? How would your answers change to c, d, and e if the consumption function were instead C(Y-T)= $80 billion + 0.80(Y-T).
Answer:
The answer is (a) Y = 520, (b) Y = 2,720, (c) (I) Y = 560, (II) Y = 560, (d) (I) Y = 560, (II) M = 3, (e) (I) Y = 560, (II) Government Multiplier = 40billion, (III) Y = 700
(a)
Explanation:
(a)
Given that
Y = I + G + ca + 0.75 ( Y - T)
Where ca = autonomous consumption, Y - T = disposable income
Substitute into the equation
Y = 60 + 50 + 80 + 0.75 ( Y - 60)
Rearrange the equation
Y - 0.75Y = 60 + 50 + 80 - 60
Factor out the variable Y
(1 - 0.75) Y = 190 - 60
Simplify
0.25Y = 130
Divide both sides by 0.25
0.25Y/0.25 = 130/0.25
Y = 520
(b)
Y = C + I + G
Since the value of output depends on the household's intention to consume
Substitute into the equation
Y = 80 + 0.75 + 600
Rearrange the equation
Y - 0.75Y = 80 + 600
Factor out the variable Y
(1-0.75)Y = 680
Simplify
0.25Y = 680
Divide both sides by 0.25
0.25Y /0.25 = 680/0.25
Y = 2,720
(c)I
Y = C + I
Y = 80 + 60
Rearrange the equation
Y - 0.75Y = 80 + 60
Factor out the variable Y
(1-0.75)Y = 80 + 60
Simplify
0.25Y = 140
Divide both sides by 0.25
0.25Y /0.25 = 140/0.25
Y = 560
(II)
Equilibrium condition S = I
C = 80 + 0.75Y =60
Rearrange the equation
Y - 0.75Y = 80 + 60
Factor out the variable Y
(1-0.75)Y = 80 + 60
Simplify
0.25Y = 140
Divide both sides by 0.25
0.25Y /0.25 = 140/0.25
Y = 560
(d)(I)
Y = I + G + ca + 0.75 (Y -T )
Where ca = autonomous consumption, Y - T = disposable income
Substitute into the equation
Y = 60 + 50 + 80 + 0.75 (Y -50)
Rearrange the equation
Y - 0.75Y = 60 + 50 + 80 - 50
Factor out the variable Y
(1-0.75)Y = 190 - 50
Simplify
0.25Y = 140
Divide both sides by 0.25
0.25Y /0.25 = 140/0.25
Y = 560
(II)
Tax Multiplier = -MPC/(1-MPC)
Because there is a decrease in tax,then the multiplier will be positive, because there is now more money in the circular flow
M= MPC /(1-MPC )
M = 0.75/(1-0.75)
0.75/0.25
= 3
The tax multiplier is 3
(e)(I)
Y = I + G + ca + 0.75 (Y -T)
Substitute into the equation
Y = 60 + 60 + 80 + 0.75 (Y -60)
Rearrange the equation
Y-0.75Y = 60 + 60 + 80 - 60
Factor out the variable Y
(1-0.75)Y = 200 - 60
Simplify
0.25Y =140
Divide both sides by 0.25
0.25Y /0.25 = 140/0.25
Y = 560
(II)
K = ▲Y/▲G
K= 1/1-MPC
K = 1/1-0.75
K = 1/0.25
K = 4
K = ▲Y/▲G
▲G = (60-50) =10
4 = ▲Y/10
Cross multiply
▲Y = 4 × 10
▲Y = 40 billion
(e)(III)
How would the answer change, if consumption function were
C (Y -T )=80billion + 0.80 (Y -T )
Y = I + G + ca + 0.75 (Y -T )
Substitute into the equation
Y = 60 + 50 + 80 + 0.80 (Y -50)
Rearrange the equation
Y - 0.80Y = 60 + 50 + 80 - 50
Factor out the variable Y
(1-0.80)Y = 190 - 50
0.2Y = 140
Divide both sides by 0.2
0.2Y /0.2 = 140/0.2
Y = 700
During the next three months, Shoemaker, Inc. must meet the following demands for shoes:
month 1, 1000 pairs; month 2, 1500 pairs; month 3, 1800 pairs. It takes 1 hour of labor to produce a pair of shoes. During each of the next three months, the following number of regular-time labor hours are available: month 1, 1000 hours, month 2, 1200 hours, month 3, 1200 hours. Each month, the company can require workers to put in up to 400 hours of overtime. Workers are paid only for the hours they work, and a worker receives $4 per hour for regular-time work and $6 per hour for overtime work. At the end of each month, a holding cost of $1.5 per pair of shoes in incurred. Formulate a min-cost network ow problem (MCNFP) that can be used to minimize the total cost incurred in meeting the demand of the next three months. A formulation requires drawing the appropriate network and determining the cij 's, uij 's, bi 's. How would you modify your answer if demand could be backlogged (all demand must still be met by the end of month 3) at a cost of $20/pair/month?
Answer
The answer and procedures of the exercise are attached in athe following images.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Teslum Inc. has a number of divisions, including the Machina Division, a producer of high-end espresso makers, and the Java Division, a chain of coffee shops.
Machina Division produces the EXP-100 model espresso maker that can be used by Java Division to create various coffee drinks. The market price of the EXP-100 model is $950, and the full cost of the EXP-100 model is $475. Required:
1. If Teslum has a transfer pricing policy that requires transfer at full cost, what will the transfer price be?
2. If Teslum has a transfer pricing policy that requires transfer at market price, what would the transfer price be?
3. Now suppose that Teslum allows negotiated transfer pricing and that Machina Division can avoid $135 of selling expense by selling to Java Division.
What is the minimum transfer price?
What is the maximum transfer price?
Answer:
1. $475
2. $950
3. $815
4. $950 per unit
Explanation:
1. If Teslum has a transfer pricing policy that requires transfer at full cost, then,
Transfer price = $475
2. If Teslum has a transfer pricing policy that requires transfer at market price, then,
Transfer price = $950
3. Minimum Transfer price:
= Market price - Selling expense that could be avoided
= $950 - $135
= $815
Maximum transfer price = Market price per unit
= $950 per unit
The transfer pricing policies and negotiation scenarios for Teslum Inc.'s divisions are explained based on full cost and market price guidelines, along with a negotiated transfer pricing case.
The answers to the questions are:
If Teslum Inc. has a transfer pricing policy that requires transfer at full cost, the transfer price will be $475.If Teslum Inc. has a transfer pricing policy that requires transfer at market price, the transfer price will be $950.For negotiated transfer pricing allowing for Machina Division to avoid $135 of selling expense, the minimum transfer price would be $475, and the maximum transfer price would be $815.The loss in efficiency due to market power large or small? Explain. The loss in efficiency due to market power is____________.
A. large because virtually every firm has at least some market power.
B. large because almost every industry is a monopoly with firms that have substantial market power.
C. small because almost every industry is perfectly competitive with firms that have no market power.
D. small because even firms without market power are economically inefficient.
Answer:
The answer is small because the firms with the market power of substantial are rare.
Explanation:
The loss in the efficiency is because of the market power which is small as the firms with the essential or substantial market power are rare in the market.
The firms with the power substantial market are the monopoly firms and these firms are very rare. Some competition exists in firms in the market but this competition limit the power of the market by decreasing the dead weight loss and keeping the cost closer to the marginal cost. So, it will result in loss in efficiency.
Note: The correct answer or option is missing. So, providing the correct statement.
Kelley Co. has $2,000,000 of 8% convertible bonds outstanding. Each $1,000 bond is convertible into 30 shares of $30 par value common stock. The bonds pay interest on January 31 and July 31. On July 31, 2017, the holders of $500,000 bonds exercised the conversion privilege. On that date the market price of the bonds was 105 and the market price of the common stock was $36. The total unamortized bond premium at the date of conversion was $112,500. Kelley should record, as a result of this conversion, a
credit of $78,125 to Paid-in Capital in Excess of Par.
Answer:
Explanation:
The journal entry is shown below:
Bonds payable A/c Dr $500,000
Premium on bonds payable A/c Dr $28,125
To Common stock A/c $450,000
To Paid in capital in excess of par A/c $78,125
(Being the conversion of bonds is recorded)
The computation is shown below:
For Premium on bonds payable:
= $500,000 ÷ $2,000,000 × $112,500
= $28,125
For Common stock:
= $500,000 ÷ $1,000 × 30 × $30
= $450,000
And, the remaining balance is credited to paid in capital in excess of par
Final answer:
The present value of a bond is calculated based on the interest payments and principal compared to the discount rate. If the discount rate increases, the present value decreases. The bond's yield or total return factors in interest and capital gains.
Explanation:
When calculating the present value of a simple two-year bond with an interest rate of 8%, we must consider the interest payments and the principal to be received in the future. If the discount rate matches the interest rate (8% in this case), the bond's present value will be equal to its face value because the coupon rate and discount rate cancel each other out. The bond will pay $240 in interest at the end of the first year, and $240 in interest plus the $3,000 principal at the end of the second year. If interest rates rise and the discount rate goes to 11%, the present value of the bond will decrease. The present value of each interest payment and the principal received in the future will be discounted at a higher rate, making them worth less today. The calculations must discount the future cash flows at the new rate of 11% to find the revised present value of the bond. Ultimately, the yield or total return on the bond includes the interest payments and any capital gains (if the bond is sold before maturity at a price different from the purchase price). This yield changes as market interest rates fluctuate, affecting the selling price of bonds on the secondary market.
Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $105,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value. Labor costs would increase $3,200 per year using the gang punch, but raw material costs would decrease $12,250 per year. MARR is 5%/year. a)What is the present worth of this investment?
b)What is the decision rule for judging the attractiveness of investments based on present worth?
c)Should Bailey buy the gang punch?
Answer:
a) Present value of the investment: $198,936
b) if the present worth of the investment which are discounted at MARR rate is positive, the investment is worth investing, while if the present value of the investment is negative, Investor should not invest.
c) As calculated in (a), present value of the investment is $198,936, Bailey should buy the gang punch
Explanation:
Please find detailed of calculation in (a) which is shown as below:
Present value = Present value of saving in raw material - Present value of increase in labor cost - Initial investment = [ (12,250/ 5%) x (1-1.05^-15)] - [ (3,200/ 5%) x (1-1.05^-15)] - 105,000 = $198,936.
Absorption costing and product pricing LO P4 A manufacturer reports the following information on its product. Direct materials cost $ 41.00 per unit Direct labor cost $ 11.10 per unit Variable overhead cost $ 5.10 per unit Fixed overhead cost $ 1.10 per unit Target markup 50 % Compute the target selling price per unit under absorption costing.
Final answer:
To compute the target selling price per unit under absorption costing, we need to consider the total cost per unit. The target selling price can be calculated by adding the target markup percentage to the total cost per unit.
Explanation:
To compute the target selling price per unit under absorption costing, we need to consider the total cost per unit. Total cost per unit can be calculated by summing up the direct materials cost, direct labor cost, variable overhead cost, and fixed overhead cost. Then, we can add the target markup percentage to the total cost per unit to determine the target selling price per unit.
Here is the calculation:
Total cost per unit = Direct materials cost + Direct labor cost + Variable overhead cost + Fixed overhead cost
Total cost per unit = $41.00 + $11.10 + $5.10 + $1.10 = $58.30
Target selling price per unit = Total cost per unit + (Target markup percentage * Total cost per unit)
Target selling price per unit = $58.30 + (0.50 * $58.30) = $87.45
Tami Strand’s regular hourly wage rate is $10, and she receives an hourly rate of $20 for work in excess of 40 hours. During a January pay period, Tami works 50 hours. Tami’s federal income tax withholding is $88, and she has no voluntary deductions. Assume that the FICA tax rate is 7.65%.
Compute Tami Strand’s gross earnings and net pay for the pay period.
Answer:
Gross earnings = $600
Net pay = $466.10
Explanation:
The computation of the gross earnings and the net pay is shown below:
Gross earnings
40 hours × $10 = $400
10 hours × $20 = $200
So, the total = $600
Since tami worked for 50 hours, 10 hours extra so $20 is paid for 1 hours extra. So, for 10 hours it would be $200
Net pay
Gross earnings $600
less: federal income tax withholding -$88
Less: FICA tax rate @7.65% on $600 - $45.90
Net pay $466.10