Nicola borrows 50000 dollars from a bank that charges interest at an annual rate of 8 percent, compounded monthly. Calculate the monthly payment that Nicola would have to make in order for the loan to be paid off after exactly 25 years. (Give your answer, in dollars, to the nearest cent. You should not include the dollar sign or any commas in your answer.)

Answer: Option (A) is correct

Explanation:

Here in the given case, in the context of supply change, the corporation did go wrong on part of adaptability. Adaptability is known as a feature of a process or of a system. This term has been utilized in several different discipline and organization operations. According to Gronau and Andresen, adaptability in organizational management can be referred to as ability to bring changes to oneself or something in order to fit the changes occurring.

Answer:

1) Net sales: Income statement

2) Assets: Balance Sheet

3) Cash generated by operating activities: Cash flow statement

4) Retained earnings change: Retained earning statement

5) Total debt: Balance Sheet

6) Company performance: Income statement

7) Dividend: Retained earnings

8) Cash generation and spending: Cash flow statement

9) Financial position: Cash flow, Balance sheet, Income statement

The mutual fund that has the lowest standard deviation also has the highest rate of return consistency. The solution is (C), thus.

The least unpredictable Mutual Fund C has a 4% standard deviation. This indicates that its returns are the most stable and least likely to change drastically.

Mutual Fund A, Mutual Fund B, and Mutual Fund D all have standard deviations of 8%, 6%, and 9%, respectively. As a result, the returns from all of these funds are more likely to fluctuate dramatically than those from Mutual Fund C.

Mutual Fund C is the mutual fund investment that has produced the highest consistent returns.

Hence, the correct option is C, Co-joined Investments.

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Mutual Fund C is the most consistent mutual fund investment in terms of rate of return as it has the lowest standard deviation, which indicates less variability in its returns.

Among the four mutual funds (A, B, C, and D) that all had the same mean rate of return of 12% over the last 10 years, the mutual fund with the most consistent rate of return would be the one with the lowest standard deviation. The standard deviation is a measure of the dispersion of returns around the mean return, where a lower standard deviation indicates less variability and thus more consistency in the rate of return.

Therefore, Mutual Fund C, with the lowest standard deviation of 4%, is the most consistent in terms of rate of return. Comparatively, Mutual Fund D has the highest standard deviation of 9%, making it the riskiest in terms of return variability.

Answer: Followers of the efficient market hypothesis believe that "C) investors react quickly and accurately to new information.".

Explanation: The efficient market hypothesis states that the current price of an asset in the market reflects all available information that exists (historical, public and private). It considers that any news or future event that may affect the price of an asset, will make the price adjust so quickly, that it is impossible to obtain an economic benefit from it.

This adjustment happens so fast because investors act quickly and accurately in the face of new information.

The efficient market hypothesis posits that investors react quickly and accurately to new information, implying all available information is already factored into stock prices. Thus, it suggests focusing on diverse investments to match the market's performance rather than attempting to beat it.

Followers of the efficient market hypothesis believe that investors react quickly and accurately to new information (option C). This hypothesis suggests that the stock market is always correctly priced because it assumes all relevant information about each stock is already incorporated into its price, leaving no room for above-average, risk-adjusted returns through stock selection or market timing. This theory suggests that instead of trying to 'beat the market', investors should focus on creating a diversely balanced portfolio, such as through index funds, to match the market's performance. This removes the pressure of trying to predict which stocks will perform better than others.

A common visual representation of this theory is the random walk hypothesis, which depicts price changes in the stock market as a random walk and implies that the past movement or trend of a stock price or market cannot be used to predict its future movement.

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Final answer:

To prepare the current assets section of Chin Company's balance sheet, the assets are listed from most liquid to least liquid: cash, debt investments, accounts receivable, supplies, and prepaid insurance.

Explanation:

Preparation of the Current Assets Section

To prepare the current assets section of the balance sheet for Chin Company, we should list the assets in order of liquidity. Liquidity refers to how quickly an asset can be converted into cash without losing value. In the given list, cash is the most liquid asset, followed by cash equivalents and investments, then accounts receivable, and finally, the least liquid of the current assets are the prepaid expenses and supplies.

Here is how the current assets section would look:

Summing up these amounts, we have the total current assets. It's important to note that although supplies have a monetary value, they are not cash equivalents and are not as liquid as the other assets listed above, hence they are placed after accounts receivable.

Answer:

Teller's break-even point in sales dollars for 2012 is $400,000

Explanation:

The formula to compute the break even point in dollars is shown below:

Break even point (in dollars) = (Fixed expenses) ÷ (contribution ratio)

where,

Fixed expense is $120,000

And, the contribution ratio equals to

= (Contribution per unit)  ÷ (sales per unit) × 100

where,

Contribution is = Selling price - variable cost per unit

                        = $300 - $210

                        = $90 per unit

Now put the values to the above formula

So, the ratio would be

= ($90 per unit) ÷ ($300 per unit) × 100

= 30%

Now put the values to the above formula

So, the value would be

= $120,000 ÷ 30%

= $400,000

Answer:

Using the straight-line method, the book value at December 31, 2018 would be $53.760

Explanation:

                2018 2019 2020 2021 2022

Cost      67200 53.760 40.320 26.880 13.440

Dep-Acu      13.440 13.440 13.440 13.440 13.440

Book Value53.760 40.320 26.880 13.440 0

Answer:

payback period: 5.35 years

Explanation:

the payback period will be the time at which the project pays itself

it disregard the time value of money

the formula is:

[tex]\frac{investment}{cash \: flow} = payback[/tex]

as the fist cashflow are not regular we subtract them

1,450,000 - 305,000 - 290,000 = 855,000

and now we apply the formula

855,000 / 255,000 = 3,35294

we currently are on year 2 and we need 3.35294 more years

so the payback will occur at:

2 + 3.35 = 5.35

Answer:

(C) input prices; Supply decreases

Explanation:

The input prices are all the cost Anonio inccurs to produce a pizza.

The pepperoni will be part of his input price.

The lowest price at which Antonio can sale a pizza is determinate by his cost.

Now Antonio need to sell their pizzas for more cash. So this increase generated a supply decrease.

A market comprised of a downward-sloping demand curve that intersects an upward-sloping supply curve is said to be stable because at any price other than equilibrium, forces in the market move price towards the equilibrium.

Economic forces must be in balance for there to be economic equilibrium. Economic variables essentially hold true to their equilibrium values in the absence of outside influences. Market equilibrium is another name for economic equilibrium.

The set of economic factors (often price and quantity) that the economy is driven toward by supply and demand is known as its economic equilibrium.

Any number of elements, including interest rates or total consumer spending, can be included in the definition of the phrase "economic equilibrium."

The point of equilibrium denotes an idealized state of rest where all hypothetically necessary economic transactions have already taken place, given the initial conditions of all pertinent economic variables.

The trade of products and services can take place in a market, which is a gathering place for interested parties. Buyers and sellers are typically the parties engaged.

The market might be actual, like a physical store where people interact in person, or it could be virtual, like an online market, where there is no face-to-face interaction between buyers and sellers.

Markets might be real-world, like a physical store, or digital, like an online merchant. The black market, auction market, and financial market are more examples. Prices for products and services are set by markets based on supply and demand.

Hence, option D is the correct answer

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Answer:

Ans. the break even point is 58 people, or a ravenue of $14,500

Explanation:

Hi, first we need to add up all fixed costs and expenses (Room rental+Advertising) and find the contribution margin (Price - Variable costs). The math to this is as follows.

[tex]Break EvenPoint(units)=\frac{Fixed Costs}{(Price-VariableCost)}[/tex]

[tex]Break EvenPoint(units)=\frac{11000}{(250-60)}=58 people[/tex]

[tex]BreakEvenPoint(Dollars)=58persons*\frac{250}{person} =14500[/tex]

Based on the various costs to be incurred by Golden Age Retirement Planners, the breakeven number of people will be 58 people.

First find the fixed costs:

= Cost of room + Cost of advertising

= 1,000 + 10,000

= $11,000

The breakeven point is:

= Fixed costs / (Charge - Variable cost)

= 11,000 / (250 - 60)

= 57.9

= 58 people

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Answer:

[tex]q_1=\frac{a-m}{2b}-\frac{q_2}{2}[/tex]

Explanation:

Note that Total Costs are given by fixed costs (F) and marginal costs (m) that depend on the production level of the firm

[tex]CT_i=F+mq_i[/tex]

for i=1,2. The market demand is given by

[tex]p=a-bQ[/tex]

where [tex]Q=q_1+q_2[/tex] is the total production, so it's the sum of each firms production

Firm 1 will maximize it's own profits

[tex]max\,\Pi_1=p=(a-b(q_1+q_2))q_1-F-mq_1[/tex]

The first order conditions (take derivative of the profit with respect to [tex]q_1[/tex] are given by

[tex]a-2 b q_1-b q_2-m=0[/tex]

Then the best-response function for Firm 1 will be

[tex]q_1=\frac{a-m}{2b}-\frac{q_2}{2}[/tex]

and the solution for Firm 2 would be symmetric.

Note that only marginal costs are relevant for getting the best-response function, so adding fixed costs (F) don't change the results

Answer:

B. C = D

Explanation:

C= Total Capital of the partnership before the admission of a new partner

D= Total capital of the partnership after the admission of the new partner

The purchase occurs outside the partnership (but with the partners approvals)

The partnership will only credit the new partner and debit the seller partner by the amount they agree on.

The partnership received no assets and therefore his capital remains at same value.

If a new partner purchases an interest in capital directly from the old partners, the correct statement is C = D.

If a new partner purchases an interest in capital directly from the old partners, the correct statement is C = D. This means that the total capital of the partnership before the admission of the new partner is equal to the total capital of the partnership after the admission of the new partner. It also implies that the amount of capital credited to the new partner is equal to the amount of tangible assets contributed by the new partner into the partnership.

Answer:

Statement II and III

Explanation:

For Statement I

We know that in a perfect competitive market the profit is maximum where either Marginal Revenue = Marginal Cost, or the Price + Marginal Cost is the point defining the profit.

Therefore, firm having to exercise maximum power in market will produce more up till Marginal Revenue > Marginal Cost.

Therefore, statement I is false.

Statement II

For the time till when the marginal revenue is more than the marginal cost, more and more goods shall be produced to increase the quantum of profit.

as this will assure no losses up to the time where MR>MC.

Thus, statement II is true.

Statement III

If there is no cost of production then entire amount received for a good will be profit, accordingly till the time the marginal revenue does not fall to 0 the goods shall be supplied to consumers, as the entire amount received will be profit with no cost associated.

Thus, statement III is also True.

Answer:

overrated

Explanation:

The expected vale of the stock is below their current market value.

This means the expected earnings and dividends of the company are going to decrease in the following months. Or that other stocks semes more profitable, making this stock price going down:

This may occurs because, the price earings of this stock (times the Earings per share pays the market price is greater than other stock. Investor will move from a stock with a P/E of 20 to another which P/E is % as their return in investment will be higher.

Answer:

Bad debt expense $5.125

Explanation:

Initial Balance    

Accounts Receivable  $ 43.000  

Allowance for Uncollectible Accounts   $ 1.250

Entry    

Allowance for Uncollectible Accounts  $ 775  

Accounts Receivable   $ 775

New Balance    

Accounts Receivable  $ 42.225  

Allowance for Uncollectible Accounts   $ 475

Entry Adjustment

Bad debt expense  $ 5.125  

Allowance for Uncollectible Accounts   $ 5.125

END Balance    

Accounts Receivable  $ 42.225  

Allowance for Uncollectible Accounts   $ 5.600

The correct answer is c. The bad debt expense for 2016 would be: $5125

To calculate the bad debt expense for 2016, we need to follow these steps:

1. Determine the beginning balance of the Allowance for Uncollectible Accounts:

- Beginning balance: $1,250

2. Account for the write-offs during the year:

- Accounts written off: $775

3. Determine the required ending balance of the Allowance for Uncollectible Accounts:

- Required ending balance: $5,600

4. Calculate the Bad Debt Expense:

- The bad debt expense is the amount needed to adjust the allowance account to the required ending balance after considering the beginning balance and the write-offs.

Step-by-Step Calculation:

1. Beginning Balance of Allowance for Uncollectible Accounts:

Beginning Balance = $1,250

2. Less: Write-offs during the year:

Write-offs = $775

3. Balance after write-offs:

Adjusted Balance = $1,250 - $775 = $475

4. Required Ending Balance:

Required Ending Balance = $5,600

5. Calculate the Bad Debt Expense:

Bad Debt Expense = Required Ending Balance - Adjusted Balance

Bad Debt Expense = $5,600 - $475 = $5,125

Therefore, the bad debt expense for 2016 would be: 5125

Therefore, the correct option is c. 5125 .

The complete question  is:

On December 31, 2015, Coolwear Inc. had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $43,000 and $1,250, respectively. During 2016, Coolwear wrote off $775 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $5,600 at December 31, 2016. Bad debt expense for 2016 would be:

a. $7400

b. $2400

c. $5100

d. $950

Answer:

The partial labor and capital productivity figures for the parent and subsidiary is 5.03 units per hour, 1.37 units per hour and, 1.68 units per hour, 4.20 units per hour

Explanation:

The computation of the partial labor for the parent and subsidiary is calculated by applying the formula which is shown below:

= Sales ÷  Labor (hours)

For U.S = 100,080 units ÷  19,880 hours = 5.03 units per hour

For LDC = 20,500 units ÷  14,880  hours = 1.37 units per hour

The computation of the capital productivity for the parent and subsidiary is calculated by applying the formula which is shown below:

= Sales ÷ Capital equipment (hours)

For U.S = 100,080 units ÷  59,400 hours = 1.68 units per hour

For LDC = 20,500 units ÷  4,880  hours = 4.20 units per hour

Answer:

B) Climate of trust

Explanation:

The problem seems to be Climate of trust. This fundamental factor allows teams to perform better than the sum of the performance of each of its members. Through an environment of trust, each member is supported and coached by other team members making individual improvements and increasing synergies within the team. A climate of trust is not exempt from criticism, but this criticism is understood as a helping tool rather than an instrument of personal harm. Finally, a climate of trust allows that errors and mistakes become a useful source of learning.

Answer:

What proportion should she invest in the risky portfolio, P, and what proportion in the risk-free asset?

W1: Risky Porfolio = 17%

W2: Risk Free Asset = 83%

E(Rp): Rate of Return: 6%

E(Rp) = W1 *R1 +   W2*R2

E(Rp) = 17%*16% + 83%*4% = 6%

Explanation:

To find the proportion of investment on each assets it''s necessary to applied the following equation:

E(Rp) = W1 *R1    +   W2*R2

To find W2 we define it as (1-w1) and then then the equation it's solved.

Where :

E(Rp) = Expected Return

W1 : Proportion of Risky Portfolio

R1 : Expected return of Risky Portfolio

W2: Proportion of Risk Free Asset

R2 : Expected return of Risk Free Asset

a. The proportion she should invest in the risky portfolio  P  is 0.17, and the proportion in the risk-free asset is  0.83. b. Standard deviation of the portfolio of the rate of return on her portfolio is 0.0433. c. 1. First client is more risk averse.

Let's address each part of the question step by step.

Given information:

- Expected return of the risky portfolio,  E([tex]r_P[/tex]) = 16%

- Standard deviation of the risky portfolio,  [tex]\sigma_P[/tex] = 26%

- Risk-free rate,  [tex]r_f[/tex] = 4%

- Required expected rate of return on the overall portfolio,  [tex]E(r_{\text{portfolio}}) = 6\%[/tex]

- Standard deviation constraint for the second client,  [tex]\sigma_{\text{portfolio}} \leq 23\%[/tex]

Part (a): Proportions to invest

Let  x  be the proportion invested in the risky portfolio  P , and  1 - x  be the proportion invested in the risk-free asset.

To achieve an expected return of 6% on the overall portfolio, we use the formula for the expected return of a portfolio:

[tex]E(r_{\text{portfolio}}) = x \cdot E(r_P) + (1 - x) \cdot r_f[/tex]

Substitute the given values:

[tex]0.06 = x \cdot 0.16 + (1 - x) \cdot 0.04[/tex]

Solve for  x :

0.06 = 0.16x + 0.04 - 0.04x

0.06 - 0.04 = 0.12x

0.02 = 0.12x

[tex]x = \frac{0.02}{0.12}[/tex]

x = 0.1667

So, the proportion she should invest in the risky portfolio  P  is 0.17, and the proportion in the risk-free asset is  0.83.

Part (b): Standard deviation of the portfolio

To find the standard deviation  [tex]\sigma_{\text{portfolio}}[/tex] of the overall portfolio:

[tex]\sigma_{\text{portfolio}} = \sqrt{x^2 \cdot \sigma_P^2}[/tex]

Substitute  x = 0.1667  and  [tex]\sigma_P[/tex] = 0.26 :

[tex]\sigma_{\text{portfolio}} = \sqrt{0.1667^2 \cdot 0.26^2} \\\\ \sigma_{\text{portfolio}} = \sqrt{0.02779} \\\\ \sigma_{\text{portfolio}} = 0.1667 \times 0.26 \\\\ \sigma_{\text{portfolio}} = 0.043342[/tex]

part (c): To determine which client is more risk-averse based on the given information, let's analyze the situation:

Given data:

- Expected return of the risky portfolio [tex]E(r_P) = 16\%[/tex]

- Standard deviation of the risky portfolio [tex]\sigma_P = 26\%[/tex]

- Risk-free rate  [tex]r_f[/tex] = 4%

Client 1:

Client 1 wants an expected rate of return on the overall portfolio equal to 6%. This means the client will allocate part of their investment to the risky portfolio and part to the risk-free asset.

Let  w  be the proportion invested in the risky portfolio.

The expected return on the complete portfolio  E([tex]r_c[/tex])  is given by:

[tex]E(r_c) = w \cdot E(r_P) + (1 - w) \cdot r_f[/tex]

Substituting the given values:

[tex]6\% = w \cdot 16\% + (1 - w) \cdot 4\%[/tex]

Solving for w :

0.06 = 0.16w + 0.04 - 0.04w

0.06 - 0.04 = 0.12w

0.02 = 0.12w

[tex]w = \frac{0.02}{0.12} \\\\ w = \frac{1}{6}[/tex]

So, Client 1 will invest [tex]\frac{1}{6}[/tex]  or approximately 16.67% of their total investment budget in the risky portfolio.

Client 2:

Client 2 wants the highest possible return but with a constraint on the standard deviation of the portfolio, which should not exceed 23%.

Given the information provided, we know that Client 2 is willing to accept a maximum standard deviation of 23%.

Risk Aversion Comparison:

To determine which client is more risk-averse, we typically consider the preference for risk in relation to the expected return. Client 1 is satisfied with a lower expected return (6%) and will allocate a smaller portion of their investment to the risky portfolio compared to Client 2, who seeks the highest possible return but with a constraint on risk (standard deviation).

Since Client 1 is willing to accept a lower expected return (6%) and allocates a smaller portion to the risky portfolio, it indicates a higher level of risk aversion compared to Client 2, who seeks maximum return while maintaining a risk constraint.

Therefore, Client 1 is more risk-averse.

Based on the choices provided:

- First client (Client 1) is more risk averse.

The complete question is:

Consider the following information about a risky portfolio that you manage and a risk-free asset: E(rP) = 16%, σP = 26%, rf = 4%. a. Your client wants to invest a proportion of her total investment budget in your risky fund to provide an expected rate of return on her overall or complete portfolio equal to 6%.

a. What proportion should she invest in the risky portfolio, P, and what proportion in the risk-free asset? (Round your answers to 2 decimal places.)

b. What will be the standard deviation of the rate of return on her portfolio? (Do not round intermediate calculations. Round your answer to 1 decimal place.)

c. Another client wants the highest return possible subject to the constraint that you limit his standard deviation to be no more than 23%. Which client is more risk averse? multiple choice. 1. First client 2. Second client

Answer:

A) labor productivity= 20 units per hours

B) labor productivity=  22.5 units per hours

C) %of productivity increase=  12.5%

Explanation:

Giving the following information:

Carbondale Casting produces cast bronze valves on a 10-person assembly line.

160 valves are produced during an 8-hour shift.

A) labor productivity= number of unit/number of hours= 160/8= 20 units per hours

B) labor productivity= number of unit/number of hours= 180/8= 22.5 units per hours

C) %of productivity increase= (22.5/20)-1= 0.125= 12.5%

a. The labor productivity of the line is 2 valve per hour shift.

b. The increase production to 180 units per 8-hour shift is 2.25 valve per hour shift.

c. The percentage of productivity increase is 12.5%.

a. Labor productivity:

Labor productivity=16 valves/ 8 hour shift

Labor productivity=

b. New labor productivity:

New labor productivity=18 valves/ 8 hour shift

New labor productivity=2.25 valve per hour shift

c. Percentage of productivity increase:

Percentage of productivity increase=0.25/2

Percentage of productivity increase=12.5%

Inconclusion the labor productivity of the line is 2 valve per hour shift.

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Answer:

g = 16%

dividends yield:

Year 1 4.60%

Year 3: 4.78%

expected rate of return:

year 1 20.6%

year 3 20.78%

Explanation:

grow rate:

D1 /D0 = g

1.16/1.00 - 1 = 0.16

1.3456/1.16 - 1 = 0.16

the grow rate is 16%

dividend yield:

dividends/stock price =  dividend yield

1/21.7 = 0,0460 = 4.60%

1.3456/28.15 = 0,04780 = 4.78%

expected rate of return:

dividend yield + grow rate

4.60% + 16% = 20.6%

4.78% + 16% = 20.78%

The growth rate in dividends is calculated to be 7.71% using the given dividends details. The expected dividend yield is found to be 4.61% by dividing the annual dividend payment by the stock’s price. Subsequently, the expected total return, which sums up the dividend yield and the dividend growth rate, is 12.32%.

First off, to calculate the growth rate in dividends, we'd need to understand that it's the percentage increase in the amount of dividends from one year to the next. The average growth rate, g, is then calculated as: g = [(D2/D1)^(1/2)-1] * 100 where D2 is dividend in year 2, D1 is dividend in year 1. So, g = [($1.16/$1.00) ^ (1/2) - 1] * 100 = 7.71%.

To calculate the expected dividend yield, you take the annual dividend payment and divide it by the stock's price. Therefore, the dividend yield for the first year would be: Dividend yield = D1 / P = $1.00 / $21.70 = 4.61%.

Lastly, the expected total rate of return, often used to compare the performance of different investments, is the sum of the expected dividend yield and the dividend growth rate. So, in this case, Expected total return = Expected dividend yield + Dividend growth rate = 4.61% + 7.71% = 12.32%. As such, the expected total return is 12.32% if the market is in equilibrium.

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Answer:

The correct answer is option A.

Explanation:

Structural unemployment is the type of unemployment that arises because of mismatch in skills that the workers possess and the skills that the employers want.  

In the given example, Dora is unemployed because she does not have the skills required to work in industries other than a textile mill. This is an example of structural unemployment.  

Marsha's case is an example of cyclical unemployment as it caused due to recession.  

Alan and Jim's cases are examples of frictional unemployment. Both of them remained unemployed for a short time when moving from one job to another.

In the provided options, Dora's case where she lost her job when the textile mill closed and doesn't possess the skills for another industry, resulting in her being unemployed for over a year, is an example of structural unemployment. Structural unemployment is due to the mismatch of skills between unemployed individuals and those needed for available jobs.

The example of structural unemployment in the options provided is: A. Dora lost her job when the textile mill closed. She does not have skills to work in another industry and has been unemployed for over a year.

Structural unemployment occurs when a labor market is unable to provide jobs for everyone who wants one because there is a mismatch between the skills of the unemployed and the skills needed for the available jobs. In Dora's case, the industry she was employed in closed down, and she does not possess the skills necessary to secure another job in a different industry. This leads to a long term unemployment scenario because she can't transfer her skills to another industry or job. This is a classic example of structural unemployment.

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Answer:

Gross profit would be $86.000

Explanation:

Gross Margin income statement  

Sales $ 190.000

Sales Discount -$ 5.000

Sales Return &  Allowances -$ 6.000

Cost of Goods -$ 93.000

Gross Profit $ 86.000

Gross Profit does not take operating expenses into account.

Answer:

10,970,000 x 21% = 2,303,700‬ income tax expense

10,755,000 x 21% = 2,258,55‬0 income tax payable

Explanation:

permanent difference:

sale of fixed asset          (117,000-73,500)       43,000

tax-exempt life insurance proceeds.            (258,000)

total                                                                  (215,000)

temporary difference ( which generates tax liability or benefit )

 170,000 bad debt expense

(300,000) higher tax depreciation

 (130,000) deferred tax liability

The taxable income will be for

10,840,000

-   215,000 permanent difference

+    130,000   temporary difference

10,755,000

Then, we apply the 21% corporate tax rate which is the income tax rate for 2019

10,755,000 x 21% = 2,258,55‬0 income tax payable

The accounting income tax expense will be calculate based on the temporary difference only:

10,840,000 + 130,000 = 10,970,000 x 21% = 2,303,700‬ income tax expense

Answer:

Net income = $ 150500

Return on assets = 20.07 %

Explanation:

Net income = (annual sales)*7%

                    = $ 2150000*7%

                    = $ 150500

return on assets = [net income*100]/[assets to support expansion]

                           = (150500)(100)/(750000)

                           = 20.07 %

Therefore, the Net income for the year is $ 150500 and the Return on assets for the year is 20.07 %.

Answer:

Rottweiler's Net Capital Spending for 2008: $0,465 million.

Explanation:

December 31, 2007 Net Fixed Assets of $1.875

Dureing 2008 Depreciation Expense of -$0,220

December 31, 2008 Net Fixed Assets of $1.655

Net Capital Spending for 2008                 $0,465 .

December 31, 2008 Net Fixed Assets of $2.120

Answer:

Cost of goods manufactured= $16,129

Explanation:

Total manufacturing cost is the aggregate amount of cost incurred by a business to produce goods in a reporting period.

Generally accepted accounting principles require that the cost of goods sold shall consist of:

the cost of direct materials

the cost of direct labor

the cost of manufacturing overhead

In this exercise:

Cost of goods manufactured:

Direct materials= $7,700

Direct Labor=179hours  * $31=$5,549

Factory overhead= $32*90 hours= $2,880

Total= $16,129

Answer:

The 2019 book-tax difference associated with the stock options is $24,500 unfavorable

Explanation:

The steps to compute the book-tax difference is explained below:

Step 1: First we have to divide the total stock amount by two years so that we can find out the one year amount

Step 2: Then, compute the option amount for 2019, and subtract it from step 1

So, the total stock amount for year 1 equals to

= Issued non qualified stock options ÷ 2 years

= $59,000 ÷ 2

= $29,500

Now, the book difference would equal to

= $29,500 - (1,000 options × $5)

= $29,500 - $5,000

= $24,500 unfavorable

Final answer:

The 2019 book-tax difference for the exercised stock options is negative $24,500. This is calculated by subtracting the tax benefit of $5,000 (1,000 options with a $5 bargain element each) from the book expense of $29,500 recognized for the options that vested in 2019.

Explanation:

The question deals with the calculation of the book-tax difference related to nonqualified stock options exercised by employees of Orange Inc. In 2019, 1,000 options are exercised with a bargain element of $5 each. The bargain element represents the difference between the stock's market value at the time of exercise and the exercise price that employees pay to acquire the stock. To compute the book-tax difference for these exercised options, we need to consider the total taxable benefit received by the employees, which is the bargain element times the number of options exercised ($5 times 1,000 = $5,000). On the book side, if the expense recognized for accounting purposes over the vesting period matches the total value given, we would take half of the $59,000 value recognized in 2018 and the other half in 2019.

The book expense related to these options for 2019 is therefore $29,500 (half of the total $59,000 value). The book-tax difference for 2019 is the difference between the tax benefit and the book expense recognized, which would be the tax benefit of $5,000 subtracted from the book expense of $29,500, resulting in a negative book-tax difference of $24,500 for 2019. This figure represents the amount deducted for accounting purposes that exceeds the tax benefit realized by the employees for the options exercised in 2019.

Answer:

The gross profit is $39,000

Explanation:

The computation of the gross profit is shown below:

= Sales revenue - cost of goods sold

= $104,000 - $65,000

= $39,000

The gross profit always be computed by subtracting the cost of goods sold from the sales revenue. Therefore, we apply this formula to find out the gross profit.

All these items which is shown above will record in the income statement.

Answer:

cash flow provided by operation         260,000

Explanation:

net income                                        200,000

adjustment for non-monetary terms: (A)

depreciation expense       60,000

loss on sale of land            15,000

adjusted net income                         275,000

Change in working capital:

decrease in AR           30,000

Decrease in AP          (45,000) (B)

net change in WC:      (15,000) (C)

cash flow provided by operation         260,000

(A) we must focus on cahs movement so the depreciation and loss on sale which are non-mentary term. This are not related to cash

(B) the decrease in account receivable means we colelct from our customer more.

(C) the decrease in accounts payable represent we use more cash to pay up the suppliers