Answer:
Earnings per share is $3.21
Explanation:
The calculation of weighted average number of shares to be used in EPS computation is provided thus:
Initial shares 670,000*1.04*12/12 696,800.00
share issued in February 51,000*1.04*10/12 44,200.00
shares repurchased 4000*6/12 (2,000.00)
Weighted average number of shares 739,000.00
earnings attributable to common stock=net income-preferred shares dividends
net income is $2,450,000
preferred shares dividends is $76,000
earnings attributable to common stock=$2,450,000-$76,000
=$2,374,000.00
Earnings per share =earnings attributable to common stock/Weighted average number of shares
Earnings per share=$2,374,000.00/739,000.00
=$3.21
Dow's earnings per share (EPS) for the year ended December 31, 2021 is $3.44. This was determined by first calculating the weighted average number of shares outstanding throughout the year (including new issues and those retired), adjusting for the stock dividend, and then dividing the company's net income (minus dividends paid to preferred shareholders) by this adjusted count.
Explanation:To calculate Dow's earnings per share (EPS), we first need to compute the weighted average number of shares outstanding for the year. Starting with 670,000 shares, Dow issued 51,000 new shares on February 28th which are thus in circulation for about 10 months (or 10/12 of the year), and retired 4,000 shares on July 1st that are out for about 6 months (or 6/12 of the year).
The weighted average number of outstanding shares is therefore: 670,000+(51,000*10/12)-(4,000*6/12)=717,500.
Now, we also need to account for the 4% common stock dividend issued on May 15. Because a stock dividend does not change the overall value of the company, the number of actual shares increases but the EPS is calculated as if no such dividend was issued.
Thus, our adjusted weighted number of average shares is: 717,500/1.04=689,904.
The net income of the company was $2,450,000, but we need to subtract the dividends paid to the preferred shareholders: $2,450,000 - $76,000 = $2,374,000.
Finally, we can calculate the EPS: $2,374,000 / 689,904 = $3.44 (rounded to two decimals).
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Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson Co. issued $1,200,000 of 10-year, 12% bonds on May 1 of the current year at face value, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions for the current year. Refer to the Chart of Accounts for exact wording of account titles. May 1 Issued the bonds for cash at their face amount. Nov. 1 Paid the interest on the bonds. Dec. 31 Recorded accrued interest for two months.
When Thomson Co. issued $1,200,000 of bonds, they made a journal entry debiting Cash and crediting Bonds Payable. Interest payments are recorded by debiting Interest Expense and crediting Cash, and accrued interest is recorded by debiting Interest Expense and crediting Interest Payable.
A company like Thomson Co. can raise funds for operations or expansion by issuing bonds, which are debt securities. On May 1, Thomson Co. issued $1,200,000 of 10-year, 12% bonds at face value, meaning the bonds were sold for exactly what they are worth, and not at a premium or discount. To Journalize the issuance of the bonds, the entry on May 1 would be to debit Cash for $1,200,000 and credit Bonds Payable for $1,200,000, reflecting the receipt of cash in exchange for the obligation to pay back the bondholders in the future.
On November 1, when the first interest payment is due, Thomson Co. will make a payment of 12% annual interest on $1,200,000 for six months (from May to November), which equals $72,000 in interest (1,200,000 x 0.12 x 6/12). The entry to record this interest payment would be to debit Interest Expense for $72,000 and credit Cash for $72,000.
Finally, on December 31, Thomson Co. needs to record the accrued interest for two months (November and December), which amounts to $24,000 (1,200,000 x 0.12 x 2/12). The journal entry for the accrued interest would be to debit Interest Expense for $24,000 and credit Interest Payable for $24,000. This ensures that the financial statements reflect the expense incurred during the current year, even though the payment will be made the next year.
Indicate whether each of the following transactions represents an increase in net exports, a decrease in net exports, an increase in net capital outflow, or a decrease in net capital outflow for the United States.
a. An American buys a Sony TV.
b. An American investor buys a controlling share in a South Korean electronics firm.
c. The Sony pension fund buys a bond from the U.S. Treasury.
d. A South Korean tourist buys some Sunkist oranges from an American farmer.
Answer: a. Decrease in Net Exports
b. Increase in Net Capital
c. Decrease in Net Capital.
d. Increase in Net Exports
Explanation:
a. A Decrease in Net Exports
Net Exports is Exports - Imports. In buying a Television from a foreign company, the American has imported the good. This will reduce Net Exports by the aforementioned formula.
b. An INCREASE in NET CAPITAL OUTFLOW
This is essentially Capital being invested in other countries. It increases when more is invested in other countries as opposed to less.
c. A DECREASE in NET CAPITAL OUTFLOW.
As previously stated, Net Capital Outflow increases when a country invests more in another country. Since we are looking at it from the perspective of the USA, Sony, which is not an American company, buying into such capital is considered a Decrease in Net Capital Outflow as money is coming into the US.
d. An INCREASE in NET EXPORTS
Here, a foreigner is buying goods in the USA. That translates to Export. And by the Net Export Equation, Net Exports will rise.
If you need any clarification do react or comment.
Net exports decrease when an American buys a Sony TV, while it increases when a South Korean tourist buys Sunkist oranges. Net capital outflow increases with purchase of a share in a South Korean company by an American and decreases when Sony pension fund buys a U.S. Treasury bond.
Explanation:Here are the transactions and their impact:
An American buys a Sony TV. This is an import and would decrease net exports for the United States.An American investor buys a controlling share in a South Korean electronics firm. This would increase net capital outflow as money is leaving the U.S and going to South Korea.The Sony pension fund buys a bond from the U.S. Treasury. This would decrease net capital outflow, as money is entering the U.S. from abroad.A South Korean tourist buys some Sunkist oranges from an American farmer. This would increase net exports as this is an export from the U.S to South Korea.Learn more about Net Exports and Net Capital Outflow here:https://brainly.com/question/37531629
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Wall-E makes 2 products, frames and hangers. Frames have a contribution margin per unit of $6.00 and hanger has a contribution margin per unit of $11.00. Wall-E has annual fixed costs of $290,000 units. Assume that frames and hangers are sold in a 3:1 mix (3 frames are sold for each hanger). How many units of each must be sold to break-even
Answer:
Break-even point (units)=40,000 units
Explanation:
Giving the following information:
Frames have a contribution margin per unit of $6.00 and hanger has a contribution margin per unit of $11.00. Wall-E has annual fixed costs of $290,000 units.
We need to calculate the break-even point in units for the whole company.
Break-even point (units)= Total fixed costs / Weighted average contribution margin ratio
Weighted average contribution margin ratio= (6*0.75) + (11*0.25)
Weighted average contribution margin ratio= 7.25
Break-even point (units)= 290,000/7.25
Break-even point (units)=40,000 units
MoveIt Corporation is the world’s leading express-distribution company. In addition to the world’s largest fleet of all-cargo aircraft, the company has more than 54,000 ground vehicles that pick up and deliver packages. Assume that MoveIt sold a delivery truck for $26,000. MoveIt had originally purchased the truck for $43,000 and had recorded depreciation for three years.
1.Calculate the amount of gain or loss on disposal, assuming that Accumulated Depreciation was
(a) $17,000,
(b) $12,000, and
(c) $19,000
2.Using the following structure, indicate the effects on disposal of the truck, assuming that Accumulated Depreciation was (a) $17,000, (b) $12,000, and (c) $19,000.
3.Prepare the journal entry to record the disposal of the truck, assuming that Accumulated Depreciation was (a) $17,000, (b) $12,000, and (c) $19,000.
The gain or loss on disposal is calculated by subtracting the net book value (cost less accumulated depreciation) from the sale price of the asset. Depending on the amount of accumulated depreciation, the MoveIt Corporation would record a break-even, a loss, or a gain on the sale of its delivery truck.
Explanation:Calculating Gain or Loss on Disposal:
To calculate the gain or loss on the disposal of the delivery truck, we need to consider the truck's original cost, the accumulated depreciation, and the sale price. The formula for calculating gain or loss is:
Sale Price - (Original Cost - Accumulated Depreciation) = Gain or Loss
For (a) $17,000 in accumulated depreciation: $26,000 - ($43,000 - $17,000) = $0 (no gain or loss)For (b) $12,000 in accumulated depreciation: $26,000 - ($43,000 - $12,000) = -$5,000 (loss)For (c) $19,000 in accumulated depreciation: $26,000 - ($43,000 - $19,000) = $2,000 (gain)Journal Entry for Disposal of the Truck:
The journal entry varies based on the accumulated depreciation and whether there was a gain or loss:
For (a) $17,000 accumulated depreciation, the entry would balance with no gain or loss accounted for.For (b) $12,000 accumulated depreciation, the loss of $5,000 would be recorded.For (c) $19,000 accumulated depreciation, a gain of $2,000 would be recorded.Wood Company makes two types of chairs. One of the chairs is a rocking chair. The other is a straight-back chair. Both chairs are made by hand. Wood Company uses a companywide overhead rate that is based on direct labor hours to assign overhead costs to the two products. If Wood Company automates the production of straight-back chairs and continues to use direct labor hours as a companywide allocation basis:
a. rocking chairs will be undercosted
b. there should be no impact on unit cost
c. straight back chairs will be overcosted
d. rocking chairs will be overcosted.
Answer:
d. rocking chairs will be overcosted.
Explanation:
Since in the given situation, if the company automates the production of straight-back chairs so the direct hours of straight back chairs will be decreased and the rocking chairs would remain constant and we assume that overall overhead remain the same
In addition, Overall Direct working hours would minimize the proportion of Direct rocking chair working hours in total direct working hours. As a result, the overhead allocation to the Rocking chair would also increase on the basis of Direct Labor hours than before. And it would overcoat the rocking chairs.
Hence, the correct option is d.
Automating the production of straight-back chairs at Wood Company and continuing to use direct labor hours as a companywide allocation basis will result in the overcosting of rocking chairs. The correct option is d.
Explanation:If the Wood Company automates the production of straight-back chairs and continues to use direct labor hours as a companywide allocation basis, the most likely impact would be to overcost the rocking chairs.
This is so because by automating the production of straight-back chairs, the direct labor hours for these chairs will decrease drastically, whereas the direct labor hours for the handmade rocking chairs remain the same.
As a result, a larger portion of the overheads based on direct labor hours will be assigned to the rocking chairs, making them appear more costly than they actually are. Hence, option 'd. rocking chairs will be overcosted' is the correct one. The correct option is d.
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(Defining capital structure weights) In August 2015 the capital structure of the Emerson Electric Corporation (EMR) (measured in book and market values) was as follows: ($ Millions) Book Value Market Value Short-term debt $2 comma 600 $2 comma 600 Long-term debt 4 comma 246 4 comma 246 Common equity Modifying 8 comma 051 with underline Modifying 35 comma 711 with underline Total capital Modifying $ 14 comma 897 with double underline Modifying $ 42 comma 557 with double underline What weights should Emerson use when computing the firm's weighted average cost of capital?
Answer:
0.1609 and 0.8391
Explanation:
The computation of the weight required to compute the firm's weighted average cost of capital is shown below:
For Weight of debt
= (Short-term debt + Long-term debt) ÷ (Total Capital )
= ($2,600 + $4,246) ÷ ($42,557)
= 0.1609
For weight of equity
= Common Equity ÷ Total Capital
= $35,711 ÷ $42,557
= 0.8391
We simply divide the debt with its total capital so that the weight of capital structure could arrive
You work for a small startup company that just hired five new employees, doubling its number of team members. In preparation for the new employees’ first day in the office, you add five new user accounts to your CRM (customer relationship management) software subscription, a service that is hosted in the cloud. What aspect of cloud computing has worked to your advantage?
Answer:
Rapid elasticity.
Explanation:
Cloud computing is defined as an on demand available computer service, that focuses on data storage.and computing. It is not managed by the user.
Rapid elasticity is the ability to scale the services being used by an entity in cloud computing. There is ability to scale up or scale down on cloud service usage.
In this instance there was a scaling up when you added five new user accounts to your CRM (customer relationship management) software subscription, a service that is hosted in the cloud.
The estimated regression equation for a model involving two independent variables and 10 observations follows. Here SST = 6,724.125, Interpret the regression coefficients in this estimated regression equation Group of answer choices A one-unit increase in x1 will lead to a 0.5906 unit increase in y, when x2 is held constant. A one-unit increase in x2 will lead to a 0.498 unit decrease in y, when x1 is held constant.
Answer:
Given data in the problem statement is
SST=6724.125
incremental in x1=0.5906
Incremental in x2=0.498
no of observations=10
This is the model of clustering in unsupervised machine learning as model will interpret this model as true or false only.
This is a partial adjusted trial balance of Wildhorse Co.. WILDHORSE CO. Adjusted Trial Balance January 31, 2022 Debit Credit Supplies $780 Prepaid Insurance 1,620 Salaries and Wages Payable $1,040 Unearned Service Revenue 710 Supplies Expense 910 Insurance Expense 540 Salaries and Wages Expense 1,770 Service Revenue 4,350 Prepare the closing entries at January 31, 2022.
Answer:
The entries are made as follows;
Explanation:
Service Revenue Dr.$4,350
Income Summary Cr.$4,350
(To close revenue account)
Income Summary
Supplies expense Dr.$910
Insurance Expense Dr.$540
Salaries and Wages Expense Dr.$1,770
Income Summary Cr.$3,220
(To close expenses)
Income Summary (4,350-3,220) Dr.$1,130
Retained Earnings Cr.$1,130
Closing journal entries are made to temporary accounts like revenue and expense accounts. For Wildhorse Co., debit Service Revenue and credit Income Summary for the amount of revenue. Debit the total of all expenses to Income Summary and credit each individual expense. Lastly, debit Income Summary for the balance of net income and credit Retained Earnings.
Explanation:In closing the books for Wildhorse Co. on January 31, 2022, you group accounts into two categories: revenues and expenses. First, close revenues to Income Summary. The entry is a debit to Service Revenue for $4,350 and a credit to Income Summary for $4,350. Second, close the expense accounts. Debit Income Summary for the summed value of Supplies Expense ($910), Insurance Expense ($540), and Salaries and Wages Expense ($1,770), which totals $3,220, and then credit each expense individually. The balance in the Income Summary (representing net income) is $1,130 which is the difference between Service Revenue ($4,350) and total expenses ($3,220). Finally, close Income Summary and Retained Earnings. Debit Income Summary for $1,130 and credit Retained Earnings for $1,130.
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Assume that in January 2017, Vivendi announced a €1.2 billion bond issuance. The bonds have a coupon rate of 6.75% payable semiannually. Assume the bonds have been assigned credit ratings of BBB (stable outlook) by Standard and Poor's, Baa2 (stable outlook) by Moody's, and BBB (stable outlook) by Fitch. Which of the following is not true? A. The yield on these bonds would have been lower if Standard and Poor's, Moody's, and Fitch had assigned higher credit ratings. B. The periodic interest payment will be €40.50 million. C. The coupon rate on these bonds would have been higher if Standard and Poor's, Moody's, and Fitch had assigned lower credit ratings. D. The periodic interest expense will depend on the bond's yield. E. None of the above
Answer:
C. The coupon rate on these bonds would have been higher if Standard and Poor's, Moody's, and Fitch had assigned lower credit ratings
Explanation:
Assume that in January 2017, Vivendi announced a €1.2 billion bond issuance. The bonds have a coupon rate of 6.75% payable semiannually. Assume the bonds have been assigned credit ratings of BBB (stable outlook) by Standard and Poor's, Baa2 (stable outlook) by Moody's, and BBB (stable outlook) by Fitch.
Which of the following is not true? The coupon rate on these bonds would have been higher if Standard and Poor's, Moody's, and Fitch had assigned lower credit ratings.
The stockholders' equity section on the December 31, 2012, balance sheet of Chemfast Corporation reported the following amounts:
Contributed Capital
Preferred Stock (par $20; authorized 10,000 shares, ? issued, of which 1,000 shares are held as treasury stock) $108,000
Additional Paid-in Capital, Preferred 15,390
Common Stock (no-par; authorized 20,000 shares, issued and outstanding 6,200 shares) 632,400
Retained Earnings 32,000
Treasury Stock, 1,000 Preferred shares at cost 9,600
Assume that no shares of of treasury stock have been sold in the past. Complete the following statements (Amounts to be deducted should be indicated by a minus sign. Round "per share values" to 2 decimal places.)
1. The number of shares of preferred stock issued was?
2. The number of shares of preferred stock outstanding was?
3. The average issue price of the preferred stock was? (per share)
4. The average issue price of the common stock was? (per share)
5. The treasury stock transaction increased (decreased) stockholders? equity by?
6. The treasury stock cost? (per share)
7. Total stockholders' equity is?
Answer:
1. The number of Shares of Preferred Stock issued was
88000/20 = 4400
2. Number of shares outstanding was
4400 - 1000= 3400
3. Average issue price of the preferred stock was
(88000+10340)/4400= 22.35
4. Average issue price of the common stock was
(478400/5200)= 92
5. The treasury stock transaction decreased stock equity by 9100
6. The treasury stock cost (9100/1000)= 9.1
7. Total stockholder Equity is 589,640
Stockholders Equity
Capital stock
Preferred stock 88000
paid in capital in excess of par 10340
Common stock 478400
total paid in capital 576740
Retained Earnings 22000
total paid in capital & Retained earnings 598740
less Treasury stock -9100
total Stockholders Equity 589640
Chemfast Corporation has issued 5,400 preferred shares, with 4,400 shares outstanding. The average issue price is $22.87 for preferred and $102.00 for common stock, while the treasury stock transaction decreased equity by $9,600.
Let's break down the provided data regarding Chemfast Corporation's stockholders' equity to answer the questions:
1. The number of shares of preferred stock issued was:
To find the number of issued preferred shares, use the par value:
Total amount of Preferred Stock / Par Value = $108,000 / $20 = 5,400 shares.
2. The number of shares of preferred stock outstanding was:
Issued shares minus treasury shares:
5,400 issued shares - 1,000 treasury shares = 4,400 outstanding shares.
3. The average issue price of the preferred stock was (per share):
Average issue price includes additional paid-in capital:
(Total Preferred Stock + Additional Paid-in Capital) / Number of issued shares = ($108,000 + $15,390) / 5,400 = $22.87 per share.
4. The average issue price of the common stock was (per share):
Total Common Stock / Number of issued shares = $632,400 / 6,200 = $102.00 per share.
5. The treasury stock transaction increased (decreased) stockholders' equity by:
The purchase of treasury stock decreases equity:
-$9,600 (since no shares have been sold).
6. The treasury stock cost (per share):
Cost of treasury stock / Number of treasury shares = $9,600 / 1,000 = $9.60 per share.
7. Total stockholders' equity is:
Summing up all components:
(Preferred Stock + Additional Paid-in Capital, Preferred + Common Stock + Retained Earnings) - Treasury Stock = ($108,000 + $15,390 + $632,400 + $32,000) - $9,600 = $778,190.
Gerry bought 100 shares of stock for $30.00 per share on 70% margin. Assume Gerry holds the stock for one year and that his interest costs will be $45 over the holding period. Gerry also received dividends amounting to $0.30 per share. Ignoring commissions, what is his percentage return on invested capital if he sells the stock for $34 a share?
THE RETURN ON INVESTMENT FOR GERRY WILL BE
Explanation:
TO CALCULATE RETURN ON INVESTMENT :
PURCHASE VALUE WILL BE TAKEN AS $30×100= 3000
DIVIDEND =$0.30×100
= $30
INTEREST PAID = $ 45
SALE PRICE = $34*100
= $3400
TOTALRETURN WILL BE CALCULATED AS SALES MINUS PURCHASE AND ADDING DIVIDEND AND SUBTRACTING INTEREST PAID WHICH IS = $3400-$3000+$30-$45= $385
NOW WE WILL CALCULATE CAPITAL INVESTMENT WHICH IS =[tex]\frac{TOTAL RETURN}{CAPITAL INVESTMENT}[/tex] = [tex]\frac{385}{2100}[/tex] × 100=18.33%
OUR ACTUAL CAPITAL INVESTMENT IS 70%×3000 = $2100.
The percentage return is 18.33%.
The calculation is as follows:Amount invested is
= 30 × 100 × 70%
= $2,100
Now
Total return is
= (100 × 0.3) + 100 × (34 - 30) - 45
= 385
Now finally
Return on invested capital is
= 385 ÷ 2100
= 18.33%
Therefore we can conclude that the percentage return is 18.33%.
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Dayton has forecast sales to be $214,000 in February, $279,000 in March, $298,000 in April, and $314,000 in May. The average cost of goods sold is 60% of sales. All sales are made on credit and sales are collected 50% in the month of sale, 30% the month following and the remainder two months after the sale. What are budgeted cash receipts in May?
Answer:
The answer is attached;
Explanation:
Flower Depot, Inc. sells a single product for $10. Variable costs are $4 per unit and fixed costs total $120,000 at a volume level of 10,000 units. What dollar sales level would Flower Depot have to achieve to earn a target profit of $240,000
Answer:
Break-even point (dollars)= $600,000
Explanation:
Giving the following information:
Selling price per unit= $10
Variable costs per unit= $4
Fixed costs= $120,000
Desired profit= $240,000
To determine the sales level to achieve the desired profit, we need to use the break-even point in dollars formula:
Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio
Break-even point (dollars)= (120,000 + 240,000) / [(10 -4)/10]
Break-even point (dollars)= 360,000/ 0.6
Break-even point (dollars)= $600,000
Which of the following is not a result of following a well-designed budgeting process? Multiple Choice Assurance of future profits. Improved performance evaluations. Improved coordination of business activities. Improved communication of management's action plans. Improved decision-making processes.
Answer:
Assurance of future profits
Explanation:
Budgeting refers to estimating a future cost or revenue as on today so as to reduce business uncertainty and achieve planned goals. For example, budgeted costs reveal the estimated costs that would be incurred in the near future.
Budgeting is based upon past figures and current trends so as to estimate the future prospects of an activity under consideration. Such an activity reveals the course of action and aids better planning for the future.
For instance, a cash budget reveals the cash surplus or defict which shall arise in the near future and such a budget draws a firm's attention towards the funds it will require in the near future and from what sources those can be raised.
Since budgeting is an estimate and cannot account for unforeseen business events whose indications did not exist at the time of preparing such budgets, it's results cannot guarantee or assure future profits to a business. It's purpose is to reduce uncertainity, it cannot altogether eliminate uncertainity.
On January 1, 2021, Tropical Paradise borrows $43,000 by agreeing to a 6%, five-year note with the bank. The funds will be used to purchase a new BMW convertible for use in promoting resort properties to potential customers. Loan payments of $831.31 are due at the end of each month with the first installment due on January 31, 2021.
Required:
Record the issuance of the installment note payable and the first two monthly payments.
Answer and Explanation:
The Journal entry with their narrations is shown below:-
1. Cash Dr, $43,000
To Notes Payable $43,000
(Being Cash is recorded)
2. Interest expenses Dr, $215
($43,000 × 6% ÷ 12)
Notes payable Dr, $616.31
To Cash $831.31
(Being Interest expenses is recorded)
3. Interest expenses Dr, $211.92
($43,000 - $616.31) × 6% ÷ 12)
Notes payable Dr, $619.39
To Cash $831.31
(Being Interest expenses is recorded)
Therefore we have recorded the issuance of the installment note payable and the first two monthly payments.
The issuance of the installment note payable and the first two instalments by Tropical Paradise can be recorded using journal entries. The issuance results in a 'Cash' debit and 'Notes Payable' credit worth $43,000. Payments result in 'Interest Expense' and 'Notes Payable' debits and a 'Cash' credit, where the amount reflects the payment towards interest and principal.
Explanation:Tropical Paradise's decision to borrow and subsequent payments can be recorded via journal entries. The issuance of the installment note payable would result in journal entry namely 'Cash' (Debit $43,000) and 'Notes Payable' (Credit $43,000). This represents the increase in cash by the loan amount and the establishment of the liability to pay this sum back to the bank.
Upon making the first monthly payment of $831.31, Tropical Paradise would make another journal entry: 'Interest Expense' (Debit $215) and 'Notes Payable' (Debit $616.31) to reflect the payment of some of the principal and interest, and 'Cash' (Credit $831.31) to show the reduction in available cash from making the payment. These entries would be repeated for the second payment as well.
The interest expense is calculated as the outstanding principal (in these cases, $43,000 and $42,383.69) multiplied by the annual interest rate (6%), divided by the number of periods in the year (12).
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Bankone issued $200 million worth of one-year CD liabilities in Brazilian reals at a rate of 6.50 percent. The exchange rate of U.S. dollars for Brazilian reals at the time of the transaction was $0.305/Br 1. (LG 9-5) Is Bankone exposed to an appreciation or depreciation of the U.S. dollar relative to the Brazilian real? What will be the percentage cost to Bankone on this CD if the dollar depreciates relative to the Brazilian real such that the exchange rate of U.S. dollars for Brazilian reals is $0.325/Br 1 at the end of the year? page 308 What will be the percentage cost to Bankone on this CD if the dollar appreciates relative to the Brazilian real such that the exchange rate of U.S. dollars for Brazilian reals is $0.285/Br 1 at the end of the year?
Answer:
A. The depreciation are been issued in reals and the interest as well as the principle are both being paid in reals. Although $ is actually the problem because that is where all the risk lies due to the fact that It will take more dollars to pay back compared to the real
B)
1.Brazilian = $69,225,000
2.Percentage cost -65.4%
C1. Brazilian $60,705,000
2)Percentage cost - 69.6%.
Explanation:
A. The depreciation are been issued in reals and the interest as well as the principle are both being paid in reals. Although $ is actually the problem because that is where all the risk lies due to the fact that It will take more dollars to pay back compared to the real.
B)
1.Brazilian 200M x (1.065) x 0.325
= $69,225,000
2.Percentage cost = ($69,225,000 - $200,000,000) / 200m
=-$130,775,000/$200,000,000
= -65.4%
C
1. Brazilian 200M x (1.065) x 0.285
= $60,705,000
2)Percentage cost = ($60,705,000 - $200,000,000) / $200M
=-$139,295,000/$200,000,000
= -69.6%.
Sabor Inc. is a medical testing laboratory that performs several tests and analyses for hospitals in the area. Four of the tests that it performs require the use of a specialized machine that can supply 14,000 hours per year. Information on the four lab tests is as follows: Test A Test B Test C Test D Charging rate $65 $51 $48 $32 Variable cost $25 $18 $13 $8 Machine hours 3 2 1 0.5 What is the contribution margin per hour of machine time for Test A
Answer:
$13.33
Explanation:
Test A
Charging rate $65
Variable cost ($25)
Contribution margin $40
Contribution margin per machine hour $40/3=$13.33
The contribution margin per hour of machine time for Test A is $13.33.
The contribution margin per hour of machine time for Test A is calculated by subtracting the variable cost per unit from the charging rate per unit and then dividing by the machine hours required for Test A.
First, calculate the contribution margin for Test A:
Contribution Margin for Test A = Charging Rate for Test A - Variable Cost for Test A
Contribution Margin for Test A = $65 - $25
Contribution Margin for Test A = $40
Now, calculate the contribution margin per machine hour for Test A:
Contribution Margin per Machine Hour for Test A = Contribution Margin for Test A / Machine Hours for Test A
Contribution Margin per Machine Hour for Test A = $40 / 3 hours
Contribution Margin per Machine Hour for Test A = $13.33 per hour
The "law of demand" refers to the fact that, other things remaining the same, when the price of a good rises, A. the demand curve shifts leftward. B. there is a movement up along the demand curve to a smaller quantity demanded. C. there is a movement down along the demand curve to a larger quantity demanded. D. the demand curve shifts rightward.
Answer:
B. there is a movement up along the demand curve to a smaller quantity demanded.
Explanation:
Based on the laws of demand, if the price of the good rises the quantity demanded of that good would be reduced keeping other things constant and if the price of the good declines the quantity demanded of that good would be raised keeping other things constant.
It represents the inverse relation between the price and the quantity demanded of the good
Therefore the quantity demanded get decreased with the price
The law of demand states that when the price of a good rises, the quantity demanded decreases. Option B is the correct answer as it describes the movement along the demand curve to a smaller quantity demanded.
Explanation:The law of demand states that when the price of a good rises, the quantity demanded decreases. This means that as the price increases, people are less willing and able to purchase the good.
Option B is the correct answer. When the price of a good rises, there is a movement up along the demand curve to a smaller quantity demanded. This is because the higher price reduces the quantity that consumers are willing to buy.
For example, if the price of a pizza increases, people might choose to buy less pizza or substitute it with a different food item.
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Newhard Company assigns overhead cost to Jobs on the basis of 125% of direct labor cost. The job cost sheet for Job 313 includes $10,000 in direct materials cost and $12,000 in direct labor cost. A total of 1,000 units were produced in Job 313.
Required:
a. What is the total manufacturing cost assigned to Job 313?
b. What is the unit product cost for Job 313?
a. Total manufacturing cost _____
b. Unit product cost _____
Answer:
a. Total manufacturing cost $37,000
b. Unit product cost $37
Explanation:
Total Cost = Sum of all manufacturing costs
Total manufacturing cost -
direct materials $10,000
direct labor $12,000
overhead ($12,000×125%) $15,000
Total $37,000
Unit Product Cost = Total Cost / Number of Units
= $37,000/ 1,000 units
= $37
Answer:
a. Total manufacturing cost is $37,000
b. Unit product cost is $37 per unit
Explanation:
The total manufacturing cost is the sum of the direct and indirect costs. The indirect costs are also known as overheads.
Given that the job cost sheet for Job 313 includes $10,000 in direct materials cost and $12,000 in direct labor cost,
Total direct cost = $10,000 + $12,000
= $22,000
Also given that the Company assigns overhead cost to Jobs on the basis of 125% of direct labor cost
Total overheads = 125% * $12,000
= $15,000
Hence total manufacturing cost
= $22,000 + $15,000
= $37,000
Given that 1,000 units were produced,
Unit cost = $37,000/1000
= $37 per unit
West Corp. issued 17-year bonds 2 years ago at a coupon rate of 10.3 percent. The bonds make semiannual payments. If these bonds currently sell for 102 percent of par value, what is the YTM
Answer:
10%
Explanation:
The actual return that an investor earn on a bond until its maturity is called the Yield to maturity. It is a long term return which is expressed in annual rate.
According to given data
It is assumed that face value of the bond is $1,000
Coupon Payment = C = $1,000 x 10.3% = $103 annually = $51.5 semiannually
Price of the Bond = P = $1,000 x 102% = $1,020
Numbers of period = n = (17-2) years x 2 = 30 periods
Use Following Formula to calculate YTM
Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]
Yield to maturity = [ $51.5 + ( $1,000 - $1,020 ) / 30 ] / [ ($1,000 + $1,020 ) / 2 ]
Yield to maturity = $50.83 / $1,010 = 0.0503 = 5.03% = 5% per Semiannual
Yield to maturity = 5% x 2 = 10% annually
Yield to maturity = 3.56% semiannually OR 7.12% annually
Answer:
The answer is 10.04%
Explanation:
Yield-to-maturity (YTM) is the of return an investor is expecting from its bonds.
The payment is semiannual.
Number of years, N is 30 years[(7 years - 2 years) x 2]
YTM = ?
Present Value(PV) = $102(102% of $100)
Coupon payment (PMT) = $5.15[(10.3percent ÷ 2) x $100]
Future Value(FV) = $100
Using Financial calculator, we have:
5.02percent
This is for semiannual
Therefore, annual YTM will be:
5.02 percent x 2
10.04%
Matthias Corp. had the following foreign currency transactions during 2017:
Purchased merchandise from a foreign supplier on January 20 for the U.S. dollar equivalent of $62,900 and paid the invoice on April 20 at the U.S. dollar equivalent of $53,200.
On September 1, borrowed the U.S. dollar equivalent of $305,000 evidenced by a note that is payable in the lender's local currency in one year. On December 31, the U.S. dollar equivalent of the principal amount was $322,000.
Required:
In Matthias's 2017 income statement, what amount should be included as a net foreign exchange gain or loss?
Answer:
$7,300 loss
Explanation:
The computation of the net foreign exchange gain or loss included in the income statement is shown below:
Since the merchandise purchased value is $62,900
And, the paid amount is $53,200
So, the gain on transaction is
= $62,900 - $53,200
= $9,700
The borrowed amount is $305,000
And, the principal amount is $322,000
So, the loss is
= $305,000 - $322,000
= $17,000 loss
So in this case $7,300 loss is included which is a difference of $9,700 and $17,000
Partially completed budget performance reports for Garland Company, a manufacturer of light duty motors, follow: Garland Company Budget Performance Report—Vice President, Production For the Month Ended November 30 Plant Actual Budget Over Budget Under Budget Eastern Region $2,409,400 $2,420,000 $(10,600) Central Region 2,998,400 3,000,000 (1,600) Western Region (g) (h) $(i) $(j) $(k) $(l) $(12,200) Garland Company Budget Performance Report—Manager, Western Region Plant For the Month Ended November 30 Department Actual Budget Over Budget Under Budget Chip Fabrication $(a) $(b) $(c) Electronic Assembly 703,200 700,000 3,200 Final Assembly 516,600 525,000 $(8,400) $(d) $(e) $(f) $(8,400) Garland Company Budget Performance Report—Supervisor, Chip Fabrication For the Month Ended November 30 Cost Actual Budget Over Budget Under Budget Factory wages $95,500 $82,000 $13,500 Materials 115,300 120,000 $(4,700) Power and light 49,950 45,000 4,950 Maintenance 37,200 28,000 9,200 $297,950 $275,000 $27,650 $(4,700) a. Complete the budget performance reports by determining the correct amounts for the lettered spaces (a-l) as marked above. a. $ g. $ b. $ h. $ c. $ i. $ d. $ j. $ e. $ k. $ f. $ l. $ b. The budget for the Chip Fabrication Department indicates that the budget overrun was caused by a combination of budget in factory wages, power and light, and maintenance that exceeded a budget in materials.
Answer:
A. $297,950
B. $275,000
C. $22,950
D. $1,517,750
E. $1,500,000
F.$26,150
G. $1,517,750
H. $1,500,000
I. $17,750
J. $6,925,550
K. $6,920,000
L. $17,750
Explanation:
The completed budget of Garland has been well scripted and attached for your review.
The predetermined overhead rate for Weed-B-Gone is $8, comprised of a variable overhead rate of $5 and a fixed rate of $3. The amount of budgeted overhead costs at normal capacity of $240,000 was divided by normal capacity of 30,000 direct labor hours, to arrive at the predetermined overhead rate of $8. Actual overhead for June was $15,800 variable and $9,100 fixed, and standard hours allowed for the product produced in June was 3,000 hours. The total overhead variance is:
A. $900 U.
B. $900 F.
C. $4,900 F.
D. $4,900 U.
Answer:
The answer is $A. $900 U.
Explanation:
We have the: Total overhead variance = Overhead applied - Actual overhead in which:
+ Overhead applied = Standard hours x Overhead application rate = 3,000 x 8 = $24,000;
+ Actual overhead = Variable overhead + fixed overhead = 15,800 + 9,100 = $24,900
=> Total overhead variance = Overhead applied - Actual overhead = 24,000 - 24,900 = 900 Unfavorable as the actual overhead is bigger than the overhead applied ( planned cost is lower than actual cost incurred).
So, the answer is A.
The following materials standards have been established for a particular product: Standard quantity per unit of output Standard price 9.2 grams $14.70 per gram The following data pertain to operations concerning the product for the last month: Actual materials purchased.. Actual cost of materials purchased. Actual materials used in production... Actual output 5,500 grams $76,450 5,100 grams 540 units The direct materials purchases variance is computed when the materials are purchased. Required: a. What is the materials price variance for the month? b. What is the materials quantity variance for the month?
Answer:
Instructions are below.
Explanation:
Giving the following information:
Standard quantity per unit= 9.2 grams
Standard price= $14.70 per gram
Actual materials purchased= 5,500 grams
The actual cost of materials= $76,450
Actual materials used in production= 5,100 grams
Actual output= 540 units
To calculate the direct material variances, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Actual price= 76,450/5,500= $13.9
Direct material price variance= (14.7 - 13.9)*5,500= $4,400 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Standard quantity= 540*9.2= 4,968 grams
Direct material quantity variance= (4,968 - 5,100)*14.7= $1,940.4 unfavorable
Yeaman Company manufactures luggage sets. Yeaman sells its luggage sets to department stores. Yeaman expects to sell 1 comma 850 luggage sets for $ 345 each in January and 2 comma 250 luggage sets for $ 345 each in February. All sales are cash only. Prepare the sales budget for January and February.
Answer and Explanation:
The preparation of the sales budget for the month of Jan and Feb is presented below:
Particulars January February
Budgeted luggage sets to be sold 1,850 2,250
Sales price per unit $345 $345
Total sales $638,250 $776,250
By multiply the luggage sets with the sales price per unit we can get the total sales and the same is shown above
David Company uses the gross method to record sales made on credit. On June 10, 2017, it sold goods worth $250,000 with terms 2/10, n/30 to Charles Inc. On June 19, 2017, David received payment for 1/2 of the amount due from Charles Inc. David's fiscal year end is on June 30, 2017. What amount will be reported in the financial statements for the accounts receivable due from Charles Inc?
Answer:
$125,000
Explanation:
Good worth $250,000-$125,000
=$125,000
The amount that will be reported in the financial statements for the accounts receivable due from Charles Inc is $125,000 due to the fact that On June 10, 2017 goods worth $250,000 where sold to Charles Inc and On June 19, 2017, David received payment for 1/2 of the amount due from Charles Inc which makes us to arrived at $125,000 which is the 1/2 of $250,000 then less the actual amount which is $2,50,000 which in turn make us to arrived at $125,000 as the answer.
(1/2×$250,000)=$125,000
Ivanhoe Corporation issued $468,000 of 6% bonds on May 1, 2020. The bonds were dated January 1, 2020, and mature January 1, 2023, with interest payable July 1 and January 1. The bonds were issued at face value plus accrued interest. Prepare Ivanhoe’s journal entries for (a) the May 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry
Answer:
May 1, 2020
Dr Cash $477,360
Cr Bonds Payable $468,000
Cr Interest Expense $9,360
July 1, 2020
Dr Interest Expense $14,040
Cr Cash $14,040
Dec 31, 2020
Dr Interest Expense $14,040
Cr Interest Payable $14,040
Explanation:
May 1, 2020
Dr Cash $477,360
Cr Bonds Payable $468,000
Cr Interest Expense $9,360
(Accrued Interest = 468,000 x 6% x 4/12)
July 1, 2020
Dr Interest Expense $14,040
Cr Cash $14,040
(Bond interest expense = $468,000 x 6% x 6/12)
Dec 31, 2020
Dr Interest Expense $14,040
Cr Interest Payable $14,040
The short-run is- a time period in which the prices of output cannot change but in whihc the prices of inputs have time to adjust- a time period in which output prices can change in response to supply and demand but in which all input prices have not yet been able to completely adjust- a time period in which neither the prices of output nor the prices of inputs are able to change- any time period ofless thatn a year
Answer:
a time period in which output prices can change in response to supply and demand but in which all input prices have not yet been able to completely adjust
Explanation:
Short run are the period in that at least one factor in production is fixed, in which the product can be increased by increasing the owners and increasing the number of variable factors such as purchasing more raw materials. Therefore, output may change with the increase in supply and demand.so the correct option is a time period in which output prices can change in response to supply and demand but in which all input prices have not yet been able to completely adjustPrepare a 4–6 page case analysis on the topic of strategic management and why it is critical to the success of an organization in meeting its goals and mission. In your analysis respond to the following question: What is strategic management and why is it critical to the success of an organization in meeting its goals and mission?
Answer:
Strategic management can be defined as the correct management of the resources of a certain organization, whose objective is to achieve the proposed goals. This means having very clear business objectives, analyzing the competition, internally analyzing the internal organization, having clear strategies and having them carried out by the administration in the business organization.
In order to achieve the established objectives, certain aspects must be taken into account, such as the business culture, the skills of all employees and the organizational structure of the company. Companies that do not conform to these characteristics may have some difficulties and problems to achieve business success.
Lower-level managers or employees can have a significant influence in establishing and implementing business strategies, although in the end, top management is responsible for applying business strategies.
Organizational leaders need to be responsible for learning from past strategies and examining their business environment, in search of other strategies. Excellent strategic management is paramount to have an overall perspective, both internal and external.
Explanation:
Strategic management is essential for organizational success, encompassing planning, execution, and monitoring of strategies to meet goals and missions. It ensures financial and management stability, fosters strategic thinking, and enhances the ability to handle pressure and challenges in the business environment.
Explanation:What is Strategic Management and Its Importance?Strategic management is a comprehensive approach to planning, implementing, monitoring, and analyzing an organization's strategies to achieve its goals and fulfill its mission. It serves as a fundament for decision-making processes, directing organizations towards sustainable growth and competitive advantage.
The importance of strategic management lies in its capacity to guide companies through a constantly changing business environment. By analyzing the organization's overall financial position and comparing it to peer organizations, strategic management provides insights into how operations and policies can be adjusted to strengthen financial positions and manage liabilities effectively.
Moreover, strategic management emphasizes the importance of keeping management issues in perspective. It provides strategies to prevent or remedy problems, ensuring that management challenges do not derail the organization's objectives. The integration of management and organization, along with a detailed financial plan, further illustrates how strategic decisions underpin the structural and financial stability of a company.
Key Components of Strategic ManagementAnalysis of the financial and competitive landscape.Development of a strategic vision aligned with the organization's mission.Implementation of strategies through effective organization and management structures.Monitoring and adjusting strategies based on performance and external changes.In conclusion, strategic management is critical to the success of any organization as it encompasses planning, executing, and monitoring strategies essential for meeting goals and fulfilling the mission. This structured approach not only addresses financial and managerial aspects but also emphasizes strategic thinking and the ability to work under pressure, making it indispensable for surviving and thriving in today's complex business world.