The carrying value of the bonds on the date of issue can be calculated using the present value formula. The formula calculates the present value of the bond's future cash flows, which include the stated interest payments and the principal repayment at maturity.
Explanation:The carrying value of the bonds on the date of issue can be calculated using the present value formula.
The formula calculates the present value of the bond's future cash flows, which include the stated interest payments and the principal repayment at maturity.
In this case, the bond has an annual interest payment of $8,000 (100,000 x 8%). S
ince the bond matures in 10 years, the total interest payments over the life of the bond would be $80,000 (8,000 x 10).
The principal repayment at maturity is the face value of the bond, which is $100,000.
To calculate the carrying value of the bond on the date of issue, we need to discount the future cash flows using the stated interest rate of 8%.
The discounting factor for each year can be calculated by dividing 1 by (1 + interest rate) raised to the power of the number of years.
Since the bond pays interest once per year on December 31, the carrying value on the date of issue is the present value of the interest payments plus the present value of the principal repayment.
Revenue and Cash Receipts Journals Transactions related to revenue and cash receipts completed by Sycamore Inc. during the month of March 20Y8 are as follows: Mar. 2. Issued Invoice No. 512 to Santorini Co., $715. Mar. 4. Received cash from CMI Inc., on account, for $180. Mar. 8. Issued Invoice No. 513 to Gabriel Co., $250. Mar. 12. Issued Invoice No. 514 to Yarnell Inc., $630. Mar. 19. Received cash from Yarnell Inc., on account, $480. Mar. 20. Issued Invoice No. 515 to Electronic Central Inc., $135. Mar. 28. Received cash from Marshall Inc. for services provided, $100. Mar. 29. Received cash from Santorini Co. for Invoice No. 512 of March 2. Mar. 31. Received cash from McCleary Co. for services provided, $55. Prepare a single-column revenue journal and a cash receipts journal to record these transactions. Enter the transactions in chronological order.
Answer:
Single Column revenue journal is given below
Explanation:
Single Column Revenue Journal
Date No. Account Dr A/c Receivable Dr / Fee earned Cr
Mar.2 512 Santorini Co. $ 715
Mar.8 513 Gabriel Co. $250
Mar.12 514 Yarnell Co. $ 630
Mar.20 515 Electronic Central Inc. $135
Cash Receipts Journal
Date No Accounts Cr Fee earned A.c Rec. Cr Cash Dr
Mar.4 CMI $ 180 $ 180
Mar.19 Yarnell Co. $ 480 $ 480
Mar.28 Fee Earned $ 100 $100
Mar.28 Santorini Co. $715 $ 715
Mar.31 Fee Earned $75 $75
Harrison, Inc. acquires 100% of the voting stock of Rhine Company on January 1, 2010, for $400,000 cash. A contingent payment of $16,500 will be paid on April 15, 2011, if Rhine generates cash flows from operations of $27,000 or more in the next year. Harrison estimates that there is a 20% probability that Rhine will generate at least $27,000 next year, and uses an interest rate of 5% to incorporate the time value of money. The fair value of $16,500 at 5%, using a probability-weighted approach, is $3,142.
When recording consideration transferred for the acquisition of Rhine on January 1, 2010, Harrison will record a contingent performance obligation in the amount of:
a) $628.40. b) $2,671.60. c) $3,142.00. d) $13,358.00. e) $16,500.00.
Answer:
c) $3,142.00
Explanation:
The recording of the contingent performance obligation should be recorded at $3,142 which should be equal to the fair value of $16,500 at 5% using the probability-weighted approach
Moreover, at the time of payment, the journal entry is
Contingent performance obligation Dr $3,142
Loss from revaluation of contingent performance obligation $13,358
To Cash A/C $16,500
(Being the cash paid is recorded)
With regards to social welfare, oligopolists forming a cooperative alliance is : Group of answer choices bad because because prices are too high and output is too low bad because output is too high and prices are too high good because it leads to less disagreement and lower prices and more variety good because forming a cooperative alliance closely resembles a perfectly competitive outcome
Answer:
With regards to social welfare, oligopolists forming a cooperative alliance is bad because because prices are too high and output is too low.
Explanation:
Oligopoly is a market structure with a small number of firms controlled by few producers thereby reducing competition.
The firms that come together to form an oligopolistic alliance need to see the benefits of collaboration over costs of economic competition, then agree to not compete and instead agree on the benefits of co-operation.
With regards to social welfare, oligopolists forming a cooperative alliance is , either explicitly or tacitly, to restrict output and/or fix prices, in order to achieve above normal market returns thereby increasing the prices of commodity.
Fran promises to pay Tim $700 for a new scooter for her own use. After Tim delivers the scooter, Fran refuses to pay Tim. Tim may recover the money under the doctrine of _____.
Answer: Promissory estoppel
Explanation:
Because Fran promised that he will pay $700 to Tim for that new scooter and he did not do it, Tim can get back his money with the doctrine of Promissory estoppel contract law.
This kind of contract law can help him because they did not make a legal contract and this can stop someone from going back on a promise that is given to other person and with that contract, a person who did not fulfilled the promise must recover all the damages.
Answer: Promissory estoppel
Explanation: Because Fran promised that he will pay $700 to Tim for that new scooter and he did not do it, Tim can get back his money with the doctrine of Promissory estoppel contract law.
This kind of contract law can help him because they did not make a legal contract and this can stop someone from going back on a promise that is given to other person and with that contract, a person who did not fulfilled the promise must recover all the damages.
Silicon Valley in California is the world center for the computer and semiconductor industry and has many of the world's major computer and semiconductor companies located close to each other, thus offering the location-specific advantage of Group of answer choices. a. a multipoint competition. b. an oligopolyc. a first mover. d. externalities
Answer:
The correct answer is D. externalities.
Explanation:
An externality is defined as that situation or group of situations that determine that a service good is not reflected at its real market price. In this example, the computer industry is so close that they do not know for sure the benefits they have when offering their goods, and it becomes an advantage in the sense that due to its close location it is possible to establish agreements to manage prices and not enter into direct market competition.
Go to the Office of the Comptroller of the Currency Web site. Find the most recent levels of futures, forwards, options, swaps, and credit derivatives using the following steps:Click on "Publications." From there, click on "Other Publications/Reports."Then, click on "Quarterly Report on Bank Derivatives Activities."Click on the most recent date, and download the latest report. The tables containing the data are at the bottom of the document.Then, discuss the following: How have these values increased since 2015?Use charts or tables to illustrate the difference between the numbers.2–3 pages (body of paper, not including charts/table)
Answer and explanation:
The notional sums extraordinary of credit subordinates expanded $163.1 billion (3.9 percent), to $4.3 trillion, in the second from last quarter of 2018 (see table 10). Contracts referencing sub-investment grade firms expanded $57.0 billion and contracts referencing speculation evaluation firms expanded $105 billion in the second from last quarter (see chart 14 in the informative supplement). Credit subsidiaries extraordinary stayed well beneath the pinnacle of $16.4 trillion in the main quarter of 2008 (see chart 1 in the informative supplement). As appeared in figure 5, credit default swaps are the overwhelming item, at $3.9 trillion (89.4 percent) of all credit subordinate notional sums.
Credit subordinate contracts referencing venture grade substances with developments from one to five years spoke to the biggest fragment of the market at 45.8 percent of all credit subsidiary notional sums. Contracts of all tenors that reference speculation grade substances are 71.2 percent of the market.
Check the attached file for representing Pie chart
The notional sum for the 79 banks that net sold credit assurance (i.e., accepted credit hazard) was $2.1 trillion, down $68.4 billion (3.4 percent) from the second quarter of 2018 (see table 12 in the index). The notional sum for the 60 banks that net bought credit security (i.e., supported credit hazard) was $2.2 trillion, $94.7 billion lower (4.4 percent) than in the second quarter of 2018
Safeguarded U.S. business banks and reserve funds affiliations detailed exchanging income of $4.3 billion in the final quarter of 2015, $1.0 billion lower (19.6 percent) than the past quarter, and $0.2 billion lower (4.3 percent) than a year sooner
• Credit introduction from subordinates diminished in the final quarter of 2015. Net current credit introduction (NCCE) diminished $49.7 billion, or 11.2 percent, to $395.0 billion.
• Trading hazard, as estimated by Value-at-Risk (VaR), declined in the final quarter of 2015.
Normal VaR over the main five vendor banking organizations diminished $28 million, or 7.8 percent, to $329 million
• Credit subordinates, which spoke to 3.9 percent of all out subsidiaries notionals, declined 14.8 percent from the past quarter to $7.0 trillion
• Notional subordinates fell $11.1 trillion, or 5.8 percent, to $181.0 trillion, the most reduced level since the principal quarter of 2008. Notionals have declined in every one of the previous five quarters
• Derivative contracts stayed amassed in financing cost items, which spoke to 76.5 percent of complete subordinate notional sums.
The Office of the Comptroller of the Currency's (OCC) quarterly report on bank exchanging and subordinates exercises depends accessible if the need arises report data given by all guaranteed U.S. business banks, reserve funds affiliations and trust organizations (all things considered, banks), reports recorded by U.S. monetary holding organizations, and other distributed information. Starting in the principal quarter of 2012, reserve funds affiliations announced their money related outcomes in the call reports. Thus, their exchanging also, subordinates movement is currently incorporated into the OCC's quarterly subsidiaries report.
A sum of 1,410 safeguarded U.S. business banks and investment funds affiliations detailed subordinates exercises toward the finish of the final quarter of 2015, five less than the past quarter. A little gathering of enormous monetary establishments keeps on ruling subsidiaries movement in the U.S. business banking framework. During the final quarter of 2015, four enormous business banks spoken to 90.8 percent of the all out financial industry notional sums and 83.2 percent of industry NCCE.
The OCC and different directors have inspectors on location at the biggest banks to assess
ceaselessly the credit, advertise, operational, notoriety, and consistence dangers of bank subordinates exercises. Notwithstanding the OCC's on location supervisory exercises, the OCC works with other budgetary administrators and significant market members to address framework, clearing, and margining issues in over-the-counter (OTC) subordinates. Exercises incorporate advancement of destinations and achievements for more grounded exchange handling and improved market straightforwardness over every OTC subsidiary classes, relocation of certain very fluid items to clearinghouses, and necessities for posting and gathering edge. Office of the Comptroller of the cash.
Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate are as follows: Standard Hours Standard Rate per Hour Standard Cost 27 minutes $5.80 $2.61 During August, 9,565 hours of direct labor time were needed to make 19,700 units of the Jogging Mate. The direct labor cost totaled $54,521 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 19,700 Jogging Mates? 2. What is the standard labor cost allowed (SH × SR) to make 19,700 Jogging Mates? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhead rate is $4.10 per direct labor-hour. During August, the company incurred $43,999 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month.
1. The standard labor hours allowed to make 19,700 Jogging Mates is approximately 9198.33 hours. 2. The standard labor cost allowed to make 19,700 Jogging Mates is approximately $53,344.33. 3. The labor spending variance is approximately -$1,176.67. 4. The labor rate variance is $0 and the labor efficiency variance is $1,176.67. 5. The variable overhead rate variance is $0 and the variable overhead efficiency variance is approximately -$1,516.60.
Explanation:1. The standard labor hours allowed (SH) to make 19,700 Jogging Mates can be calculated by multiplying the number of units produced by the standard labor time per unit:
Standard labor hours allowed = Number of units produced × Standard labor time per unit
Standard labor-hours allowed = 19,700 units × 27 minutes / 60 minutes per hour = 9198.33 hours
Therefore, the standard labor hours allowed to make 19,700 Jogging Mates is approximately 9198.33 hours.
2. The standard labor cost allowed (SH × SR) to make 19,700 Jogging Mates can be calculated by multiplying the standard labor hours allowed by the standard rate per hour:
Standard labor cost allowed = Standard labor hours allowed × Standard rate per hour
Standard labor cost allowed = 9198.33 hours × $5.80 per hour = $53,344.33
Therefore, the standard labor cost allowed to make 19,700 Jogging Mates is approximately $53,344.33.
3. The labor spending variance can be calculated by subtracting the actual labor cost from the standard labor cost allowed:
Labor spending variance = Standard labor cost allowed - Actual labor cost
Labor spending variance = $53,344.33 - $54,521 = -$1,176.67
Therefore, the labor spending variance is approximately -$1,176.67.
4. The labor rate variance can be calculated by multiplying the actual hours of direct labor by the difference between the actual rate per hour and the standard rate per hour:
Labor rate variance = Actual hours of direct labor × (Actual rate per hour - Standard rate per hour)
Labor rate variance = 9,565 hours × ($5.80 per hour - $5.80 per hour) = $0
Therefore, the labor rate variance is $0.
The labor efficiency variance can be calculated by subtracting the standard labor cost allowed from the actual labor cost:
Labor efficiency variance = Actual labor cost - Standard labor cost allowed
Labor efficiency variance = $54,521 - $53,344.33 = $1,176.67
Therefore, the labor efficiency variance is $1,176.67.
5. The variable overhead rate variance can be calculated by multiplying the actual hours of direct labor by the difference between the actual variable overhead rate and the budgeted variable manufacturing overhead rate:
Variable overhead rate variance = Actual hours of direct labor × (Actual variable overhead rate - Budgeted variable manufacturing overhead rate)
Variable overhead rate variance = 9,565 hours × ($4.10 per hour - $4.10 per hour) = $0
Therefore, the variable overhead rate variance is $0.
The variable overhead efficiency variance can be calculated by subtracting the standard hours allowed from the actual hours of direct labor and multiplying by the budgeted variable manufacturing overhead rate:
Variable overhead efficiency variance = (Actual hours of direct labor - Standard hours allowed) × Budgeted variable manufacturing overhead rate
Variable overhead efficiency variance = (9,565 hours - 9198.33 hours) × $4.10 per hour = -$1,516.60
Therefore, the variable overhead efficiency variance is approximately -$1,516.60.
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Stock Investment Transactions On September 12, 3,600 shares of Aspen Company are acquired at a price of $45.00 per share plus a $180 brokerage commission. On October 15, a $1.20-per-share dividend was received on the Aspen Company stock. On November 10, 1,440.00 shares of the Aspen Company stock were sold for $38 per share less a $72 brokerage commission. When required, round final answers to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Prepare the journal entries for the original purchase, the dividend, and the sale under the cost method.
Answer and Explanation:
According to the scenario, journal entries for the given data are as follows:
Journal Entries
Sep. 12 Stock investment in Aspen company A/c Dr. $162,180 (3,600×$45)+$180
To Cash A/c $162,180
( Being purchase is recorded)
Oct. 15 Cash A/c Dr. $4320 (3,600×$1.2)
To Revenue from dividend A/c $4320
( Being dividend revenue is recorded )
Nov. 10 Cash A/c Dr. $54,648 (1,440×$38)-$72
Loss due to sale of investment A/c Dr. $10,224 ($64,872 - $54,648)
To Investment in Aspen company investment A/c $64,872 (1,440× $45)+$72
( Being sale is recorded)
Pier Company incurred $150,000 of research and development costs in its laboratory to develop a new product. It spent $20,000 in legal fees for a patent granted on January 2, 2020. On July 31, 2020, Pier paid $15,000 for legal fees in a successful defense of the patent. What is the total amount that should be debited to Patents through July 31, 2020? Select one: a. $150,000 b. $185,000 c. $170,000 d. $35,000 e. $20,000
Answer:
$35,000
Explanation:
Data provided
Legal fee for Granted = $20,000
Legal fee for Defend = $15,000
The computation of total amount that should be debited to Patents is shown below:-
Total amount Debited to Patents = Legal fee for Granted + Legal fee for Defend
= $20,000 + $15,000
= $35,000
Therefore for computing the Total amount Debited to Patents we simply applied the above formula.
Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing. Current Machine New Machine Original purchase cost $14,700 $25,500 Accumulated depreciation $6,500 _ Estimated annual operating costs $24,900 $19,800 Remaining useful life 5 years 5 years If sold now, the current machine would have a salvage value of $10,400. If operated for the remainder of its useful life, the current machine would have zero salvage value. The new machine is expected to have zero salvage value after 5 years. Prepare an incremental analysis to determine whether the current machine should be replaced.
Solution and Explanation:
The following is the incremental analysis :
Particulars Retain machine Replace machine Net income
Increase / (Decrease)
Operating costs $124500 $99000 25500
($124500 - $99000)
New machine costs - 25500 (25500)
Salvage value (Old) 10400 10400
Total $124500 $114100 $10400 Working notes:
Operating cost of retain machine is calculated by multiplying the estimated operating costs of old machine with the number of years. ($24900 multiply with 5 years = $124500).
Operating cost of replace machine is calculated by multiplying with the estimated operating costs of new machine with the number of years ($19800 multiply with 5 years = $99000).
CONCLUSION: using the old machine or the current machine costs higher than the purchasing of the new machine. Therefore, it is advised to replace the old machine with a new machine to save the cost.
The total Net income is $10400 it is recommended to replace the old machine with a new machine to preserve the cost.
Calculation of Net income:The following is incremental analysis are :
Particulars Retain machine Replace machine Net income
Increase / (Decrease)
Operating costs $124500 $99000 25500
($124500 - $99000)
New machine costs - 25500 (25500)
Salvage value (Old) 10400 10400
Total $124500 $114100 $10400
Working notes:
The operating cost of the retaining machine is calculated by reproducing the calculated operating costs of the old machine by the number of years. ($24900 multiply with 5 years = $124500).
The operating cost of substituting the machine is calculated by multiplying the calculated operating costs of the new machine by the number of years ($19800 multiplied by 5 years = $99000).
CONCLUSION: When using the old machine or the current machine costs are higher than the purchase of the new machine. Thus, it is advised to replace the old machine with a new machine to save the cost.
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In the London market, Rolls-Royce stock closed at £0.875 per share. On the same day, the British Pound sterling to the U.S. dollar spot exchange rate was £0.6366/$1.00. Rolls Royce trades as an ADR in the OTC market in the United States. Five underlying Rolls-Royce shares are packaged into one ADR. If the Rolls Royce ADRs were trading at $5.75 when the underlying shares were trading in London at £0.875, ignoring transaction costs, the arbitrage trading profit would be A. $0.00. B. $1.12. C. $2.12. D. $3.12.
Answer:
B. $1.12
Explanation:
The computation of arbitrage trading profit is shown below:-
Euro Share price = £0.875
Spot rate R = £0.6366/$1.00
1 ADR Share price in US = $5.75
1 ADR = 5 share of shares
Now, The actual price of 1 ADR P1 = 5 × Euro Share price ÷ Share price in US
= 5 × £0.875 ÷ £0.6366
= $6.87
Therefore, The Arbitrage profit = Actual price - trading price
= Actual price - Price in US
= $6.87 - $5.75
= $1.12
Therefore for computing the arbitrage trading profit we simply applied the above formula.
Xion Co. budgets a selling price of $81 per unit, variable costs of $34 per unit, and total fixed costs of $280,000. During June, the company produced and sold 11,800 units and incurred actual variable costs of $361,000 and actual fixed costs of $295,000. Actual sales for June were $985,000. Prepare a flexible budget report showing variances between budgeted and actual results. List variable and fixed expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance)
The flexible budget report shows variances between the budgeted and actual results for Xion Co. The variances for variable and fixed expenses are calculated separately. The variable expenses had an unfavorable variance of $1,000, while the fixed expenses had a favorable variance of $15,000.
Explanation:The flexible budget report shows variances between the budgeted and actual results for Xion Co. Given that the company budgeted a selling price of $81 per unit, variable costs of $34 per unit, and total fixed costs of $280,000, the actual results for June were 11,800 units sold, actual variable costs of $361,000, and actual fixed costs of $295,000. The actual sales for June were $985,000. Let's calculate the variances:
Variable Expenses:
Total budgeted variable costs = Budgeted units x Budgeted variable cost per unit = 11,800 x $34 = $401,200
Total actual variable costs = Actual units x Actual variable cost per unit = 11,800 x $34 = $400,200
Variance = Total actual variable costs - Total budgeted variable costs = $400,200 - $401,200 = -$1,000 (unfavorable variance)
Fixed Expenses:
Total budgeted fixed costs = $280,000
Total actual fixed costs = $295,000
Variance = Total actual fixed costs - Total budgeted fixed costs = $295,000 - $280,000 = $15,000 (favorable variance)
Therefore, the variable expenses had an unfavorable variance of $1,000, and the fixed expenses had a favorable variance of $15,000.
Baird Company has a choice of two investment alternatives. The present value of cash inflows and outflows for the first alternative is $135,000 and $104,000, respectively. The present value of cash inflows and outflows for the second alternative is $310,000 and $267,500, respectively. Required Calculate the net present value of each investment opportunity. (Negative amounts should be indicated by a minus sign.) Calculate the present value index for each investment opportunity. (Round "PVI" to 2 decimal places.) Indicate which investment will produce the higher rate of return.
Answer:
Investment A:
NPV = $31,000
PVI = 1.298
Investment B:
NPV = $42,500
PVI = 1.1588
Investment A should produce a higher return as it has a higher present value index
Explanation:
INVESTMENT A:
Present value of cash inflows = $135,000
Present value of cash outflows = $104,000
Net present value (NPV) = (present value of inflows - present value of outflows)
NPV = $135,000 - $104,000
NPV = $31,000
PRESENT VALUE INDEX(PVI) = (present value of cash inflow ÷ present value of cash outflow)
PVI = ($135,000/$104,000)
PVI = 1.298
INVESTMENT B:
INVESTMENT A:
Present value of cash inflows = $310,000
Present value of cash outflows = $267,500
Net present value (NPV) = (present value of inflows - present value of outflows)
NPV = $310,000 - $267,500
NPV = $42,500
PRESENT VALUE INDEX(PVI) = (present value of cash inflow ÷ present value of cash outflow)
PVI = ($310,000/$267,500)
PVI = 1.159
Assume that interest rate parity holds. The U.S. five‑year interest rate is 5% annualized, and the Mexican five‑year interest rate is 8% annualized. Today’s spot rate of the Mexican peso is $.20. What is the approximate five‑year forecast of the peso’s spot rate if the five‑year forward rate is used as a forecast?
Answer:
Using equation
F=P(1+i)^n
n=5
using u.s forecast i=0.05
p=$0.2
F=0.2(1+0.05)^5
F=$0.255
Using mexican forecast,we will have
i=0.08
F=$0.2938
Taking average approximate forecast=0.2938+0.255/2=$0.2744
The operations of Bridgeton Corporation are divided into the Adams Division and the Carter Division. Projections for the next year are as follows: Adams Division Carter Division Total Sales$575,000 $342,000 $917,000 Variable costs 199,000 157,000 356,000 Contribution margin$376,000 $185,000 $561,000 Direct fixed costs 171,000 143,000 314,000 Segment margin$205,000 $42,000 $247,000 Allocated common costs 82,000 66,000 148,000 Operating income (loss)$123,000 $(24,000) $99,000 Operating income for Bridgeton Corporation as a whole if the Carter Division were dropped would be:
Answer:
$57,000
Explanation:
The computation of the operating income for Bridgeton Corporation dropped by
= Sales of Adams division - variable cost of Adams division - direct fixed cost of Adams division - allocated common cost of Adams division - allocated common cost of Carter Division
= $575,000 - $199,000 - $171,000 - $82,000 - $66,000
= $57,000
Since we have to determine the reduced operating income so we take the total of allocated common stock and rest of the items are taken from Adams division
Vegas Company has the following unit costs: Variable manufacturing overhead $ 40 Direct materials 35 Direct labor 34 Fixed manufacturing overhead 27 Variable marketing and administrative 22 Vegas produced and sold 13,000 units. If the product sells for $190, what is the operating profit under full absorption costing?
Answer:
$702,000
Explanation:
The computation of operating profit is shown below:-
Direct material = $35
Direct labor = $34
Variable manufacturing Overheads = $40
Fixed manufacturing overheads = $27
Product cost in units = Direct material + Direct labor + Variable manufacturing Overheads + Fixed manufacturing overheads
= $35 + $34 + $40 + $27
= $136
Total expenses = 13,000 × $136
= $1,768,000
Sales revenue = 13,000 × $190
= $2,470,000
So total operating profit = Total expenses - Sales revenue
= $1,768,000 - $2,470,000
= $702,000
Therefore, in this method we ignore the variable marketing and administrative cost in the question for determining the operating profit.
The operating profit under full absorption costing is $161.54.
Explanation:To calculate the operating profit under full absorption costing, we need to consider the total manufacturing costs and the total marketing and administrative costs. The total manufacturing costs per unit can be calculated by adding the variable manufacturing overhead, direct materials, direct labor, and fixed manufacturing overhead. The total manufacturing costs per unit are $((40 + 35 + 34 + 27) / 13000) = $6.46.
The total marketing and administrative costs per unit are given as $22. To calculate the operating profit, we subtract the total costs per unit from the selling price per unit:
Operating Profit = Selling Price per Unit - (Total Manufacturing Costs per Unit + Total Marketing and Administrative Costs per Unit)
Operating Profit = $190 - ($6.46 + $22) = $190 - $28.46 = $161.54.
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Bennett Co. has a potential new project that is expected to generate annual revenues of $266,600, with varlable costs of $146,000, and fixed costs of $62,800. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $27,000. The annual depreciation is $26,200 and the tax rate is 40 percent. What is the annual operating cash flow? а.$45,160b. $84,000 c. $183.416 d.$41.280 e. $131,080
Answer:
a.$45,160
Explanation:
The answer is attached.
Answer:
а.$45,160
Explanation:
Bennett Co Annual Operating Cash Flow
Operating Cash Flow =
Annual revenues $266,600
Less: Variable costs ($146,000)
Fixed costs ($62,800)
Balance $57,800
Tax rate[ (1-0.4) × $57,800] $34,680
Add depreciation (40%×$26,200) $10,480
Operating Cash Flow $45,160
Therefore the ANNUAL OPERATING CASH FLOW is $45,160
You own a stock portfolio invested 20 percent in Stock Q, 30 percent in Stock R, 35 percent in Stock S, and 15 percent in Stock T. The betas for these four stocks are .79, 1.23, 1.13, and 1.36, respectively. What is the portfolio beta?
Answer:
The portfolio beta is 1.13
Explanation:
Portfolio bet is the average beta calculated on the basis of weightage of each investment. The beta of every investment is multiplied with the weightage of each investment in a portfolio. The all the value is added to get the portfolio beta
Portfolio Beta = ( Stock Q beta x Stock Q Weightage) + ( Stock R beta x Stock R Weightage) + ( Stock S beta x Stock S Weightage) + ( Stock T beta x Stock T Weightage)
Portfolio Beta = ( 0.79 x 20% ) + ( 1.23 x 30% ) + ( 1.13 x 35% ) + ( 1.36 x 15% )
Portfolio Beta = 0.158 + 0.369 + 0.396 + 0.204 = 1.127
Portfolio beta is 1.13
Cartels often dissolve because a. their members often set a time limit as to how long the cartel should exist. b. their members often cheat on the cartel agreements because they have incentive to. c. their members often find that they do not earn as high profits from the cartel as they had hoped to. d. firms in a cartel face different costs than firms outside a cartel. e. none of the above
Answer:
B-Their members often cheat on the cartel agreements because they have incentive to.
Explanation:
Cartels dissolve because there is an incentive to cheat and produce goods by maximizing their own profits as the maximization of profits of cartels doesn't imply the maximization of profits of individual firms.
Job enlargement: is a systematic approach to help an organization modify its core processes to achieve more efficient results. aims at greater productivity through reduced application of mental and physical effort. involves adding challenges or new responsibilities to employees' current jobs. involves moving employees through a series of job assignments in one or more functional areas.
Job enlargement: involves adding challenges or new responsibilities to employees' current jobs.
Explanation:Job enlargement is a job plan manner wherein there is an expansion in the quantity of tasks correlated with a specific job. The description of job enlargement is appending extra activities within the equivalent level to a current role.
This indicates that a person will do more further, various activities in their contemporary job. One of the essential aspects of enlargement is that it expands the range of the job horizontally. This executes the job more diverse, building a wider spectrum of activities.
Joshua borrowed $500 on January 1, 2017, and paid $25 in interest. The bank charged him a service charge of $15. He paid it all back at once on December 31, 2017. What was the APR?
Joshua's Annual Percentage Rate (APR) for his loan in 2017 was 8%. This is calculated by adding the interest ($25) and the service charge ($15) to get the total charges ($40), dividing this amount by the loan amount ($500), and then multiplying by 100%.
Explanation:The question concerns the calculation of the APR, or Annual Percentage Rate, for a loan. In this case, Joshua borrowed $500 in 2017 and paid $25 in interest, plus a $15 service charge. The total charge he paid for this loan over one year is $25 + $15 = $40.
To calculate the APR, you would divide the total charges by the amount borrowed, then multiply by 100% to get a percentage. So in this case, it would be ($40/$500) * 100% = 8%. Therefore, Joshua's APR for the loan was 8%.
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Kasravi Co. had net income for 2021 of $600000. The average number of shares outstanding for the period was 200000 shares. The average number of shares under outstanding options, at an option price of $30 per share is 12000 shares. The average market price of the common stock during the year was $36. What should Kasravi Co. report for diluted earnings per share for the year ended 2021
Answer: $2.97
Explanation:
Net income = $600,000
Number of shares outstanding or eighred average shares= 200,000
Average market price of common stock = $36
Proceeds if 12000 shares is issued at option price of $30
Proceeds = 12000 × $30 = $36,000
Shares assumed purchased = (Proceeds ÷ Market share price)
Shares assumed purchased ($36,000 ÷ $36) = 10000 shares.
Incremental share issued (12000 - 10000) = 2000 shares
Diluted EPS = (Net income ÷ Average Weighted shares + incremental share issued))
Diluted EPS = ($600,000 ÷ (200,000+2000))
Diluted EPS = $600,000 ÷ 202,000
Diluted EPS = $2.97
Coachlight Inc. has a periodic inventory system. The company purchased 205 units of inventory at $9.50 per unit and 310 units at $10.50 per unit. What is the weighted average unit cost for these purchases of inventory? (Round your final answer to two decimal places.)
Answer:
Weighted average cost per unit = $10.10
Explanation:
We know,
Under weighted average unit cost, the cost for purchased inventory = Total inventory costs ÷ total inventory in units
Given,
Total inventory in units = 205 + 310 = 515 units
Total inventory costs = (205 units × $9.50) + (310 units × $10.50)
= $1,947.50 + $3,255 = $5,202.50
Therefore,
Weighted average cost per unit = $5,202.50 ÷ 515 units
Weighted average cost per unit = $10.10
Therefore, the company will use this cost per unit to determine cost of goods sold and ending inventory.
Mountain High Ice Cream Company transferred $65,000 of accounts receivable to the Prudential Bank. The transfer was made without recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10%. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $5,500) less a 3% fee (3% of the total factored amount). Required: Prepare the journal entry to record the transfer on the books of Mountain High assuming that the sale criteria are met. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Check the explanation
Explanation:
DR Cash
DR Loss on sale of receivables
DR Receivable from factor
CR Accounts receivable
Debit Credit
1 Cash 58500 =65000*(1-10%)
Loss on sale of receivables 2200
Receivable from factor 3800 =5500-(65000*2%)
Accounts receivable 60000
Kindzi Co. has preferred stock outstanding that is expected to pay an annual dividend of $4.67 every year in perpetuity. If the required return is 4.54 percent, what is the current stock price
Kindzi Co. has preferred stock outstanding that is expected to pay an annual dividend of $4.67 every year in perpetuity. If the required return is 4.54 percent- The current stock price is $102.86
Explanation:
From the question the below mentioned information is given
Annual Dividend = $4.67
The required return =$4.54%=$0.0454
Let assume the current stock price be x
Current stock price= Annual Dividend/return required
x=$4.67/$0.0454=102.86
Therefore the current stock price is $102.86
Kindzi Co. has preferred stock outstanding that is expected to pay an annual dividend of $4.67 every year in perpetuity. If the required return is 4.54 percent- The current stock price is $102.86
On December 31, 2018, a company had assets of $28 billion and stockholders' equity of $20 billion. That same company had assets of $56 billion and stockholders' equity of $18 billion as of December 31, 2019. During 2019, the company reported total sales revenue of $21 billion and total expenses of $19 billion. What is the company's debt-to-assets ratio on December 31, 2019
Answer: 0.68
Explanation:
The Debt-to-Assets ratio is a leverage ratio in financial Analysis that is intended to show how much of the company's assets are funded by debt.
It is calculated by dividing the Company's entire debt by it's Total Assets.
We have the Assets as at the 31st of December 2019 as well as the Equity. Now we need to find debt.
Remember the Accounting Equation,
Assets = Equity + Liability
So,
Liability = Assets - Equity
= 56 billion - 18 billion
= $38 billion.
Using the Debt-to-Assets ratio formula then we have,
= Debt /Assets
= 38/56
= 0.67857142857
= 0.68
0.68 is the company's debt-to-assets ratio on December 31, 2019.
Suppose the daily demand for soda is given by P = 4 – (2/3)Q and the daily supply of soda is given by P = 1 + (1/3)Q, where P is the dollar price of a can of soda and Q is the number of cans of soda (in thousands).a. Sketch the demand curve and the supply curve.Instructions: Use the tools provided to draw the demand and supply curves. Plot each end point (4 points total).b. How many cans of soda are bought and sold each day? What is the equilibrium price of soda?i. Equilibrium quantity: ____ cansii. Equilibrium price: $ ____ per canc. What is the price elasticity of demand for soda at the equilibrium price?d. What is the price elasticity of supply for soda at the equilibrium price?e. If the price of one of the inputs used to make soda increases, then what will happen to consumers' total expenditure on soda?i. It will decrease.ii. it will remain unchangediii. It will increase.
Qe 2
Pe 2
Then Demand price elasticity -0.60
the worth elasticity of Supply is 3
(i.) Then it'll decrease
when the demand is quite proportionate to the worth elasticity will overreact to the input price and also their subsequent increase with a discount in consumption.
What is the value elasticity of supply?When the worth elasticity of supply (PES) is the measure of the responsiveness of the amount supplied of a specific good to a change in price that's (PES is = Percentage Change in QS/percentage Change in Price). When The intent of determining the value elasticity of supply is to indicate how a change in price impacts the quantity of a descent that's supplied to consumers.
Then We equalize both to induce the equilibrium quantity (Qe)
Then 4 - 2/3Qe is = 1 + 1/3Qe
After that Qe (2/3 + 1/3) is = 4 - 1
Then Qe = 3
Then we solve for equilibrium price (Pe)
Then Pe = 4 - 2/3 x 3 = 4 - 2 = 2
After that Pe = 1 + 1/3 x 3 = 1 + 1 = 2
Now, The Price elasticity of demand at equilibrium is:
Then variation in quantity / variation in price that is
After that we solve for Q when P = 3 and compare the variation
That is (1.33-3) / (3 - 2) = -1.66/1 = -1.66
Thus, Price elasticity of supply at equilibrium is: ( 6 - 3) / (3 - 2) = 3 / 1 = 3
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When you purchased your house, you took out a 30-year annual-payment mortgage with an interest rate of 6 percent per year (compounded annually). The annual payment on the mortgage is $12,000, paid at the end of each year. You have just made a payment and have now decided to pay the mortgage off by repaying the outstanding balance. What is the payoff amount if you have lived in the house for 12 years (so there are 18 years left on the mortgage)
Answer: $129,931.24
Explanation:
Annuity is a stream of equal cash flows that has a specified number of periods. To get the payoff amount for living in the house for 12 years, we calculate the present value of the annuity.
The payoff amount for living in the house for 12 years is $129,931.24.
Check the attached document for the calculation.
Annual Payments refers to the total amount of payments expected to be paid or received, as applicable, under Material Contract divided by the total number of years the Material Contract is expected to be in effect.
A stream of equal cash flows with a set number of periods is known as an annuity.
We calculate the present value of the annuity to determine the payback amount for living in the house for 12 years. For staying in the house for 12 years, the payment amount is $129,931.24.
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In a Fox News Poll conducted in October 2011, 904 registered voters nationwide answered the following question: "Do you think illegal immigrants who have lived in the United States since they were children should be eligible for legal citizenship, or not?" 63% answered "should be" eligible for legal citizenship with a margin of error of 3% at a 95% level of confidence.
Which of the following statements is correct?
a) We are 95% confident that 63% of all registered voters nationwide will answer "should be."
b) We are 95% confident that between 60% and 66% of all registered voters nationwide will answer "should be."
c) We are 95% confident that between 63% and 66% of all registered voters nationwide will answer "should be."
d) 95% of the 904 registered voters in the sample answered "should be."
Answer:
The correct answer is Option B .
Explanation:
As per the data given in the question,
Eligible for legal citizenship = 63%
Error = 3%
Level of confidence = 95%
Here, the CI is 63% ± 3% , which means 60% to 66% and this indicates that with 95% confidence, the true proportion lies between this interval
This is shown by option B
Hence, option B is correct answer
The correct interpretation of the poll results, with a 63% response rate and a 3% margin of error at a 95% confidence level, is that between 60% and 66% of all registered voters nationwide think illegal immigrants who have lived in the U.S. since they were children should be eligible for legal citizenship.
The question asks to determine which statement accurately interprets the results of a Fox News Poll regarding the opinion of registered voters about whether illegal immigrants who have lived in the U.S. since they were children should be eligible for legal citizenship. The poll found that 63% answered "should be" eligible for legal citizenship, with a margin of error of 3% at a 95% level of confidence.
The correct interpretation of this poll's result is Option b: We are 95% confident that between 60% and 66% of all registered voters nationwide will answer "should be." This is because the margin of error provides a range that is above and below the observed percentage, covering a total of 6 percentage points around the observed value (63% ± 3%). This range indicates where the true percentage of the entire population's opinion is likely to fall 95% of the time.
After combing through the data, you have noticed that firms hiring Fishergraduates earn average abnormal returns of 3% per year over the next few years. You are convinced that this is a genuine profit opportunity and so have decided to trade on it. You have $10,000 to invest and two options: (1) invest all $10,000 in one company that has just hired a Fisher graduate; (2) invest $1,000 in each of ten companies that have just hired Fisher graduates. Which choice is preferable, or does it not matter?
Answer:
option (2)
Explanation:
That's right, but what if all $ 10,000 was invested in a company and it didn't come out much? The probability of earning an extraordinary income increases. It is also dangerous. This is because there is a 50% probability that the company will perform better. Therefore it is advisable to invest 1,000 companies in ten companies. Thereby reducing the risk. Well, diversification not only reduces risk but also increases the chances of profit.