Answer:
a. $408,334.39
b. $3,457.40
Explanation:
r = rate per period = 8% = 0.08
P = Initial Value of Gift = $10,000
t = time = 30 - 5 = 25, As received after 5 years.
[tex]A = P (1 + r)^{t}[/tex]
[tex]A = $10,000 (1 + 0.08)^{25}[/tex]
[tex]A = $10,000 x 1.08^{25}[/tex]
A = $10,000 x 6.8485
A = $68,484.75
[tex]FV of annuity = P [\frac{(1 + r)^{n} - 1}{r} ][/tex]
P = Periodic Payment = $3,000
a.
n = number of periods = 30
[tex]FV of annuity = 3,000 [\frac{(1 + 0.08)^{30} - 1}{0.08} ][/tex]
[tex]FV of annuity = 3,000 [\frac{(1.08)^{30} - 1}{0.08} ][/tex]
[tex]FV of annuity = 3,000 [\frac{10.0627 - 1} {0.08} ][/tex]
[tex]FV of annuity = 3,000 [\frac{9.0627} {0.08} ][/tex]
FV of annuity = $3,000 x 113.2832
FV of annuity = $339,849.63
Accumulated value of money can be calculated as follows;
$68,484.75 + $339,849.63
$408,334.39
b.
If they wish to retire with $800,000 savings, they need to save additional amount of money every year to provide additional amount of money, as follows;
$800,000 - $68,484.75
$731,515.24
The extra annual savings can be calculated as follows;
[tex]731,515.24 = P [\frac{(1 + 0.08)^{30} - 1 }{0.08} ][/tex]
$731,515.24 = P x 113.28
Divide the above equation by 113.28 we get;
[tex]P = \frac{731,515.24}{113.28}[/tex]
P = $6,457.40
They are already paying $3,000, So the extra saving they need make every year is calculated as follows;
$6,457.40 - $3,000
$3,457.40
Crane Company, organized in 2019, has set up a single account for all intangible assets. The following summary discloses the debit entries that have been recorded during 2020.
1/2/20 Purchased patent (9-year life)
$387,900
4/1/20 Purchase goodwill (indefinite life)
341,000
7/1/20 Purchased franchise with 10-year life; expiration date 7/1/30
421,000
8/1/20 Payment of copyright (5-year life)
145,200
9/1/20 Research and development costs
211,000
$1,506,100
Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
Make the entry as of December 31, 2020, recording any necessary amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
Reflect all balances accurately as of December 31, 2020.
Use straight-line amortization
select an intangible asset
FranchisesCopyrightsResearch and development costsPatentsGoodwill
$enter a dollar amount
select an intangible asset
Research and development costsGoodwillFranchisesCopyrightsPatents
$enter a dollar amount
select an intangible asset
FranchisesResearch and development costsPatentsCopyrightsGoodwill
$enter a dollar amount
select an intangible asset
CopyrightsFranchisesResearch and development costsPatentsGoodwill
$enter a dollar amount
Answer:
Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles.
Dr Patents 387,900 Cr Intangible assets 387,900Dr Goodwill 341,000 Cr Intangible assets 341,000Dr Franchises 421,000 Cr Intangible assets 421,000Dr Copyright 145,200 Cr Intangible assets 145,200Dr Research and development expense 211,000 Cr Intangible assets 211,000
Make the entry as of December 31, 2020, recording any necessary amortization:
Dr Patents 387,900 Cr Intangible assets 387,900Dr Amortization expense 43,100 Cr Accumulated amortization - Patents 43,100Dr Goodwill 341,000 Cr Intangible assets 341,000Dr Franchises 421,000 Cr Intangible assets 421,000Dr Amortization expense 42,100 Cr Accumulated amortization - Franchises 43,100Dr Copyright 145,200 Cr Intangible assets 145,200Dr Amortization expense 29,040 Cr Accumulated amortization - Copyright 29,040
*R&D costs are expenses, they are not amortized.
Reflect all balances accurately as of December 31, 2020. Use straight-line amortization .
Patents $344,800Goodwill $341,000Franchises $378,900Copyright $116,160For each of the following items, calculate the amount of revenue or expense that should be recognized on the income statement for Pelkey Co. for the year ended December 31, 2019:Required:a. Cash collected from customers during the year amounted to $874,000, and accounts receivable increased by $47,700. How much were sales on account for the year ended December 31, 2019?
Answer:
$921,700
Explanation:
Sales on account for the year ended December 31, 2019 is the cash collected from customers during the year and the increase in the accounts receivable. This can be calculated as follows:
Sales on account = $874,000 + $47,700 = $921,700
Therefore, sales on account for the year ended December 31, 2019 were $921,700.
Use the following selected 2016 balance sheet and income statement information for Home Garden Supply Co. (in millions) to compute the gross profit percentage to the nearest hundredth of a percent. Net income Gross profit on sales Average total assets Sales Tax rate on operating profit $69,960 $700,400 $360,600 $1,356,504 35% Select one: A. 9.99% B. 33.56%
Answer:
C.51.63%
Explanation:
Gross profit percentage = Gross profit/ Net sales ×100
Gross profit $700,400
Net sales $1,356,504
Hence ;
$700,400/$1,356,504 ×100
=51.63%
Therefore the gross profit percentage is
51.63%
The operating profit margin for Green Thumb Garden Center, calculated as operating income divided by sales, is approximately 44.5%, making option A. 44.50% correct.
To compute the operating profit margin, we use the formula:
Operating Profit Margin = (Operating Income / Sales) * 100.
Given:
Operating Income = $554,840 million
Sales = $1,248,552 million
Substitute these values into the formula:
Operating Profit Margin = (554,840 / 1,248,552) * 100.
Calculate the result:
Operating Profit Margin ≈ 44.5%.
Therefore, the operating profit margin for Green Thumb Garden Center is approximately 44.5%. The closest option is A. 44.50%, so the correct answer is A. 44.50%.
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Complete question below:
Use the following selected 2022 balance sheet and income statement information for Green Thumb Garden Center (in millions) to compute the operating profit margin to the nearest hundredth of a percent. Net income Operating income Sales Cost of goods sold Average total assets $50,940 $554,840 $1,248,552 $693,712 $420,300 Select one: A. 44.50% B. 49.21%
Match the phrase (or word) on the left with the numbered description on the right. Phrase Description A. SARA 1. This process describes the organization and the prediction of the order in which risks will occur. 2. This acronym represents the standard ways in which people and organizations can attempt to deal with risks. 3. This phrase emphasizes the fact that managing risk is the most important part of any project. 4. This phrase includes the processes of identifying, prioritizing, planning for, recognizing and mitigating risks. 5. This phrase represents the continuation of an organization, including continuing operations after a detrimental event, such as a hurricane or the loss of a key employee. 6. This phrase is a result of systematic ordering of risks based on their likelihood of occurrence and the impact of their occurrence. 7. This phrase represents the process of identifying and compiling all the risks associated with a project, process or organization. B. Business Continuity C. Risk Management D. Risk Inventory E. Risk Priority
Answer:
The phrase questions on the left such as SARA, Business continuity, Risk Management, Risk inventory, Risk priority are all matched with the phrase description on the right, and explained below in the explanation section.
Explanation:
Solution
SARA: this refers to the standard ways in which people and organisation can attempt to deal with risk
Business continuity: The phrase represent the continuation of an organisation including continuing operations after detrimental event such as hurricane or the loss of a key employee.
Risk management: this phrase refers to the process of compiling and identifying all the risk involved with a project process or organisation.
Risk inventory: this phrase is a result of systematic ordering of risk based on the likelihood of occurrence and the impact of their occurrence.
Risk priority: the phrase includes the processes of identifying, prioritising planning for organising and mitigating risk.
On January 1, 2021, the Coldstone Corporation adopted the dollar-value LIFO retail inventory method. Beginning inventory at cost and at retail were $200,000 and $282,450, respectively. Net purchases during the year at cost and at retail were $693,600 and $856,000, respectively. Markups during the year were $11,000. There were no markdowns. Net sales for 2021 were $846,000. The retail price index at the end of 2021 was 1.05. What is the inventory balance that Coldstone would report in its 12/31/2021 balance sheet
Coldstone Corporation's inventory balance for the 12/31/2021 balance sheet, using the dollar-value LIFO retail inventory method, and adjusting for the retail price index, is $204,757.50.
Explanation:To calculate the inventory balance for Coldstone Corporation, we apply the dollar-value LIFO retail inventory method. We need to convert the Ending Inventory at retail to cost by using the retail price index. The steps involved are as follows:
Calculate the cost-to-equal ratio at the beginning of the year by dividing Beginning Inventory at Cost ($200,000) by Beginning Inventory at Retail ($282,450). This gives us a ratio of 0.7085.Next, we add Net Purchases at Cost to Beginning Inventory at Cost to get the Cost of Goods Available for Sale. This is $200,000 + $693,600 = $893,600.Net Purchases at Retail are added to Beginning Inventory at Retail and Markups to get Goods Available for Sale at Retail. This is $282,450 + $856,000 + $11,000 = $1,149,450.Deduct Net Sales from Goods Available at Retail to find the Ending Inventory at Retail. So, $1,149,450 - $846,000 = $303,450.Finally, we adjust the Ending Inventory at Retail to reflect year-end prices by applying the retail price index (1.05). So, $303,450 / 1.05 = $289,000.Lastly, multiply the adjusted Ending Inventory at Retail by the Cost-to-Retail Ratio to get the Ending Inventory at Cost, which is $289,000 × 0.7085 = $204,757.50.Therefore, the inventory balance that Coldstone would report in its 12/31/2021 balance sheet is $204,757.50.
The inventory balance that Coldstone would report in its 12/31/2021 balance sheet, after rounding to the nearest dollar, is: $235,710
To calculate the inventory balance that Coldstone would report on its 12/31/2021 balance sheet using the dollar-value LIFO retail inventory method, we need to follow these steps:
1. Calculate the cost of the ending inventory at retail by multiplying the beginning inventory at retail by the retail price index:
Ending Inventory at Retail = Beginning Inventory at Retail × Retail Price Index
Ending Inventory at Retail = $282,450 × 1.05
Ending Inventory at Retail = $296,522.50
2. Calculate the cost of the ending inventory at cost by using the cost-to-retail ratio applied to the ending inventory at retail:
Cost-to-Retail Ratio = (Beginning Inventory at Cost + Net Purchases at Cost) / (Beginning Inventory at Retail + Net Purchases at Retail)
Cost-to-Retail Ratio = ($200,000 + $693,600) / ($282,450 + $856,000)
Cost-to-Retail Ratio = $893,600 / $1,138,450
Cost-to-Retail Ratio = 0.7847 (approximately)
Ending Inventory at Cost = Ending Inventory at Retail × Cost-to-Retail Ratio
Ending Inventory at Cost = $296,522.50 × 0.7847
Ending Inventory at Cost = $232,845.98 (approximately)
3. Adjust the ending inventory at cost for the markup on ending inventory:
Markup on Ending Inventory = Markups × (Ending Inventory at Cost / (Beginning Inventory at Cost + Net Purchases at Cost))
Markup on Ending Inventory = $11,000 × ($232,845.98 / $893,600)
Markup on Ending Inventory = $11,000 × 0.2604 (approximately)
Markup on Ending Inventory = $2,864.40 (approximately)
Adjusted Ending Inventory at Cost = Ending Inventory at Cost + Markup on Ending Inventory
Adjusted Ending Inventory at Cost = $232,845.98 + $2,864.40
Adjusted Ending Inventory at Cost = $235,710.38 (approximately)
Road Rage is a sports goods manuifactruing company based and founded in Plutonia. The company operates a subsidiary in Bradford, marketing products that are customized to appeal to the people of Bradford. In this case, Road Rage is following the ____________ model.
Road Rage is a sports goods manufacturing company based and founded in Plutonia. The company operates a subsidiary in Bradford, marketing products that are customized to appeal to the people of Bradford. In this case, Road Rage is following the Domestic model
Explanation:
In Domestic Model the products and services of the company are customized as per the requirement of the domestic environment, Thus the customers may prefer domestic companies over other foreign companies.
For example : The American theme parks.The company customized the rides, attractions, and food offerings based on the location (like in Florida ,Europe they all have different themes)of the theme park.Thus giving the the park a local reception from the public.
Hence we can say that Road Rage is a sports goods manufacturing company based and founded in Plutonia. The company operates a subsidiary in Bradford, marketing products that are customized to appeal to the people of Bradford. In this case, Road Rage is following the Domestic model
M7-7 to M7-9 Calculating Cost of Goods Available for Sale, Ending Inventory, Sales, Cost of Goods Sold, and Gross Profit under Periodic FIFO, LIFO, and Weighted Average Cost [LO 7-3] [The following information applies to the questions displayed below.] The following are the transactions for the month of July. Units Unit Cost Unit Selling Price July 1 Beginning Inventory 50 $ 10 July 13 Purchase 250 13 July 25 Sold (100 ) $ 15 July 31 Ending Inventory 200 M7-9 Calculating Cost of Goods Available for Sale, Ending Inventory, Sales, Cost of Goods Sold, and Gross Profit under Periodic Weighted Average Cost [LO 7-3] Calculate cost of goods available for sale and ending inventory, then sales, cost of goods sold, and gross profit, under weighted average cost. Assume a periodic inventory system is used. (Round "Cost per Unit" to 2 decimal places and your final answers to nearest whole dollar amount.)
Answer:
Date Units Unit Cost Unit Selling Price
July 1 Beginning Inventory 50 $ 10
July 13 Purchase 250 13
July 25 Sold (100 ) $ 15
July 31 Ending Inventory 200
Cost of Goods Available for sale= 250 units at $ 13+ 50 units at $ 10
= 3250 + 500= $3750
FIFO Ending Inventory $ 2600
200 units at $ 13= $ 2600
Sales 100At $ 15= $1500
FIFO Cost Of Goods Sold $ 1150
50 units at $ 10= $ 500
50 units at $ 13= $ 650
LIFO Ending Inventory $ 2450
50 units at $ 10= $ 500
150 units at $ 13= $ 1950
Sales 100 at $ 15= $1500
LIFO Cost Of Goods Sold $ 1150= Cost of Goods Available for Sale Less LIFO Ending Inventory = 3750- 2450= $ 1300
100 units at $ 13= $ 1300
Weighted Average Ending Inventory 12.5 * 200= $ 2500
Total Cost/ total units= 3750/300= 12.5
Weighted Average Cost Of Goods Sold $ 1150= Cost of Goods Available for Sale Less Weighted Average Ending Inventory = 3750- 2500= $ 1250
Weighted Gross Profit= Sales Less Weighted Cost Of Goods Sold= $ 1500- $ 1250= $ 250
Calculation for cost of goods available for sale and ending inventory, sales, cost of goods sold, and gross profit, under weighted average cost.
•Cost of goods available for sale $3,750
•Ending inventory $2,500
•Sales $1,500
•Cost of goods sold $1,250
•Gross profit $250
Cost of goods available for sales:
Beginning Inventory 50×$10=$500
July 13 Purchases 250×$13=$3,250
Goods Available for Sale 300 $3,750
Gross sales $1,500
(100×$15)
Cost of goods sold $1,250
($3,750/300×100)
Gross profit $250
($1,500-$1,250)
Ending inventory=($3,750/300×200)
Ending inventory=$2,500
Inconclusion:
•Cost of goods available for sale $3,750
•Ending inventory $2,500
•Sales $1,500
•Cost of goods sold $1,250
•Gross profit $250
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Who controls the supply for coffee shops and based on what factors
Answer:
Jeff controls the supply for coffee shops, based on the cost and wages.
Explanation:
Market prices control coffee shop supply, which is also influenced by other factors such as input and production costs, as well as technological advancements.
What is supply?The supply function denotes the amount of a particular good or service that producers are willing to offer in the market at various price levels.
According to the law of supply, there is a direct relationship between price and quantity supplied (ceteris paribus, hence, given that the rest remains equal). When the price of coffee rises, so does the amount that producers are willing to offer. Furthermore, other factors influence the quantity supplied because variations in those factors shift the supply curve:
Input prices: as input prices rise, production costs fall and suppliers are willing to offer more output. The supply curve shifts right.Technology advancements enable more efficient production, and sellers are willing to produce and offer a greater volume of output in the markets. The supply curve shifts to the right.Therefore, market prices, along with other factors controls the supply for coffee shops.
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1. One healthcare organization is pursuing a business strategy of differentiating its service product through providing excellent customer service. What HR metrics do you recommend to reinforce this business strategy? Why?
Answer:excellent customer service can make or mar business
Explanation:
Quick response: ability to respond to clients enquiries or complaint or even suggestion and most especially on time sensitive issues.
Know your customers: interact with your clients, remember their names and your previous discussion with them so that when you see them again you can continue if it warrants it.
Try to satisfy your customers: Do all possible best to satisfy your customers, with that he/she can refer you to someone else when been treated well. In the long run it builds happy customers.
Answer:
quick and polite responsecustomer satisfactionknow your customerExplanation:
The provision of excellent customer service to customers/clients or even to potential customers is one huge way a firm can win the patronage of a potential customer or make a customer return for goods and services in the future.
The healthcare organization having identified the strategy of provision of excellent customer service would have to employ Good metrics to make this strategy work efficiently and such metrics include
quick and polite response : responding quickly and politely to customers is very vital in getting the attention of customer/client and it also makes the customer to feel he or she is a valued customer Customer satisfaction: when a customer connects to the firm ensuring that the customers' problems and enquirers are attended to until the customer is satisfied is very vital Know your customer : a brief introduction between the customer and the customer service personnel is very important because it helps understand your customer better and how to serve him/her betterHoffman, Inc. adjusts its books each month but closes its books at the end of the year. The trial balance at March 31 before adjustments is as follows: Debit Credit Cash $ 10,940 Accounts Receivable 9,640 Supplies 1,320 Prepaid Insurance 3,200 Equipment 27,000 Accumulated Depreciation: Equipment $ 10,800 Unearned Service Revenue 6,600 Capital Stock 5,300 Retained Earnings 23,500 Dividends 1,580 Service Revenue Earned 17,190 Salaries Expense 7,900 Utilities Expense 410 Rent Expense 1,400 $ 63,390 $ 63,390 According to service contracts, $4,830 of the Unearned Service Revenue has been earned in March. The amount of Service Revenue Earned to be reported in the March income statement is:
Answer:
$22,020
Explanation:
Given, (Before Adjustment)
Unearned Service Revenue $6,600
Service revenue $17,190
The adjusting entry to record the expired unearned revenue is
Debit Unearned Service Revenue $4,830
Credit Service revenue $4,830
Therefore, the amount of Service Revenue Earned to be reported in the March income statement is as follows:
Service revenue before adjustments = $17,190
Unearned Service Revenue earned in March = $4,830
Service revenue after adjustment = $22,020
Final answer:
The total Service Revenue Earned to be reported for Hoffman, Inc. for March is $22,020, which includes the initial $17,190 from the trial balance and an additional $4,830 recognized from the Unearned Service Revenue.
Explanation:
The student asked about the Service Revenue Earned to be reported in the income statement for Hoffman, Inc. at the end of March. Initially, the trial balance shows Service Revenue Earned of $17,190. According to the adjustments needed, $4,830 of the Unearned Service Revenue has been recognized as earned during March. Therefore, we need to add this amount to the initial Service Revenue Earned to determine the total revenue to be reported.
To calculate, we add $17,190 and $4,830:
Service Revenue Earned (initial amount): $17,190Plus: Amount of Unearned Service Revenue earned in March: $4,830Total Service Revenue Earned for March: $22,020The total Service Revenue Earned that should be reported in the income statement for March is $22,020.
Do It! Review 11-3a Incorrect answer. Your answer is incorrect. Try again. Riverbed Corp has 3,300 shares of 7%, $103 par value preferred stock outstanding at December 31, 2017. At December 31, 2017, the company declared a $123,500 cash dividend. Determine the dividend paid to preferred stockholders and common stockholders under each of the following scenarios. 1. The preferred stock is noncumulative, and the company has not missed any dividends in previous years. The dividend paid to preferred stockholders $Entry field with incorrect answer now contains modified data The dividend paid to common stockholders $Entry field with incorrect answer now contains modified data 2. The preferred stock is noncumulative, and the company did not pay a dividend in each of the two previous years. The dividend paid to preferred stockholders $Entry field with incorrect answer now contains modified data The dividend paid to common stockholders $Entry field with incorrect answer now contains modified data 3. The preferred stock is cumulative, and the company did not pay a dividend in each of the two previous years. The dividend paid to preferred stockholders $Entry field with incorrect answer now contains modified data The dividend paid to common stockholders $Entry field with incorrect answer now contains modified data Click if you would like to Show Work for this question: Open Show Work
Answer and Explanation:
1. The preferred stock is non-cumulative, and in previous years, the company has not skipped any dividends.
Dividend paid to preferred shareholders = Shares × Par value preferred stock × Shares percentage
= 3300 × $103 × 7%
= $23,793
Dividend paid to common shareholders = Cash dividend - Dividend paid to preferred shareholders
= $123,500 - $23,793
= $99,707
2. The preferred stock is non-cumulative, and in both of the two previous years, the company did not pay a dividend.
Dividend paid to preferred shareholders = Shares × Par value preferred stock × Shares percentage
= 3300 × $103 × 7%
= $23,793
Dividend paid to common shareholders = Cash dividend - Dividend paid to preferred shareholders
= $123,500 - $23,793
= $99,707
3. The preferred stock is cumulative, and in both of the two previous years the company did not pay a dividend.
Dividend paid to preferred shareholders = Shares × Par value preferred stock × Shares percentage × Number of years
= 3,300 × $103 × 7% × 3
= $71,379
Dividend paid to common shareholders = Cash dividend - Dividend paid to preferred shareholders
= $123,500 - $71,379
= $52,121
Suppose the daily market demand for meat in a small town is given by
Qd = 5/3p^2
where Qd is the quantity demanded (pounds of meat), and p is the price per pound of meat.
Suppose this market is served by a profit-maximizing monopolist (that is, there is only one butcher in this town). Suppose also that the price charged per pound of meat is $0.50. The monopolist's marginal cost must be _______.
In a monopoly market, a profit-maximizing monopolist sets the price equal to the marginal cost. Given that he's charging $0.50 per pound of meat, his marginal cost must therefore be $0.50.
Explanation:The given demand function is Qd = 5/3p^2. Here, Qd represents the quantity of meat demanded at a given price p. The monopolist, being the only butcher in the town, is a profit-maximizer and therefore sets his price equal to his marginal cost (MC). When the price per pound of meat is $0.50, we can substitute p into the demand function to find the quantity of meat demanded at this price. However, for a monopolist, the marginal cost of production remains constant. So, based on the conditions provided in your question, the monopolist's marginal cost must be $0.50 because a profit-maximizing monopolist sets price equal to marginal cost.
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Suppose you believe that Du Pont's stock price is going to decline from its current level of $ 83.30 sometime during the next 5 months. For $ 412.33 you could buy a 5-month put option giving you the right to sell 100 shares at a price of $ 76 per share. If you bought a 100-share contract for $ 412.33 and Du Pont's stock price actually changed to $ 82.09 at the end of five months, your net profit (or loss) after behaving rationally on the decision to exercise the option would be ______?
Answer:
A loss of $1021.33
Explanation:
The first step is to calculate the net profit.
The profit = The current stock price - drop in stock price
$76- $82.09 = -6.09
Profit / loss = -6.09
The second step is to calculate the total gross profit
The total gross profit/loss = Outstanding shares * Profit
100 shares * - 6.09 = -$609
The total gross profit = -$609
Therefore the Net profit or loss
Net profit=Total gross profit -Contract price
= -609- 412.33
= -1021.33 (loss)
A the end of five months, your net profit (or loss) after behaving rationally on the decision to exercise the option would be a loss -$1021.33
Given the following: 2013 2012 2011
Sales: $400,000 $450,000 $470,000
Gross Profit: $100,000 $130,000 $140,000
Net Income: $300,000 $220,000 $330,000
Conduct a trend analysis of sales in 2013 to the nearest percent. The base year is 2011.
Answer: 85%
Explanation:
The bolt-making industry currently consists of 20 producers, all of whom operate with the identical short-run total cost curves �(�) = 16 + �), where q is the annual output of a firm. The market demand for bolts is �- = 110 − � (assume that the industry is perfectly competitive). a. What is the firm's short-run supply curve? b. What is the short-run market supply curve? c. Determine the short-run equilibrium price and quantity in this industry. d. What is each firm’s profit? e. What is the aggregate producer surplus?
Answer:
Check the explanation
Explanation:
Suppose that there are PO producers. All have an identical short run total cost curves [tex]C(q) = 16 + F^{2}[/tex]
Here, q is the annual output of a firm
firm's short run supply curve is the marginal cost above the average variable cost.
Marginal cost is the change in total cost due to change in quantity.
the perfect competitive market for profit maximixing output, price is equal to marginal cost.
kindly check the below attached images for further explanation.
In a perfectly competitive bolt-making industry, the analysis involves deriving the short-run supply curve, market supply curve, determining the short-run equilibrium price and quantity, calculating each firm's profit, and determining the aggregate producer surplus.
The analysis of the bolt-making industry operating under perfect competition requires understanding the short-run supply curve, market supply curve, and determining the short-run equilibrium. To address these queries:
a. The firm's short-run supply curve is derived from its marginal cost (MC) equation. Since the total cost (TC) given is TC(q) = 16 + q, differentiating it w.r.t. q gives MC = 1. This means the supply curve is perfectly elastic at MC.
b. The short-run market supply curve, with 20 identical producers, is simply 20 times the individual supply for a given price, assuming all firms have the same MC.
c. To find the short-run equilibrium price and quantity, equate the market demand and supply. The demand equation QD = 110 - P intersects with the supply at this equilibrium. Solving this with the supply equation leads to the equilibrium values.
d. Each firm's profit is calculated by subtracting total costs from total revenue, where total revenue is P*q and TC is given by the TC(q) equation.
e. The aggregate producer surplus, in a perfectly competitive market, is the area above the supply curve and below the equilibrium price up to the quantity produced.
Sparrow Corporation (a calendar year, accrual basis taxpayer) had the following transactions in 2019, its second year of operation: Taxable income $330,000 Federal income tax liability paid 69,300 Tax-exempt interest income 5,000 Business meals expense (total) 3,000 Premiums paid on key employee life insurance 3,500 Increase in cash surrender value attributable to life insurance premiums 700 Proceeds from key employee life insurance policy 130,000 Cash surrender value of life insurance policy at distribution 20,000 Excess of capital losses over capital gains 13,000 MACRS deduction 26,000 Straight-line depreciation using ADS lives 16,000 Section 179 Expense elected in 2018 25,000 Dividends received from domestic corporations (less than 20% owned) 35,000 Sparrow uses the LIFO inventory method, and its LIFO recapture amount increased by $10,000 during 2019. In addition, Sparrow sold property on installment during 2018. The property was sold for $40,000 and had an adjusted basis at sale of $32,000. During 2019, Sparrow received a $15,000 payment on the installment sale. Finally, assume that no additional first-year depreciation was claimed.a. Indicate whether each item (or part of the item) is "Added" to, "Deducted" from taxable income, or "No effect" when computing current E& P.
b. Sparrow Corporation's current E & P is $ .........
Sparrow Corporation's current E&P is calculated by adjusting its taxable income with specific items, including tax-exempt interest, business meals, life insurance, capital losses, MACRS, Section 179 expense, dividends, LIFO recapture, and installment sales. These adjustments are necessary because tax rules and E&P calculations differ.
Explanation:The calculation of Sparrow Corporation's current Earnings and Profits (E&P) requires adjusting its taxable income for specific items that are treated differently for tax and E&P purposes. Below are the adjustments:
Tax-exempt interest income: No effect on E&P because it is already excluded from taxable income.Business meals expense: Deducted for tax purposes but only 50% deductible for E&P calculations.Premiums paid on key employee life insurance: Added back to E&P because they are not deductible for tax purposes.Proceeds from key employee life insurance policy: No effect on E&P as life insurance proceeds are generally excluded from both taxable income and E&P.Excess of capital losses over capital gains: Added back to E&P to the extent that losses exceed gains, since only realized gains and losses are considered for E&P.MACRS deduction: Deducted for tax purposes but for E&P, depreciation is computed using the straight-line method.Section 179 Expense elected in 2018: No effect on current year E&P.Dividends received from domestic corporations: Deducted for tax purposes with a dividends-received deduction; for E&P purposes, the dividend amount is generally included in E&P but with a related deduction.LIFO recapture: Added to E&P because this adjustment ensures that E&P reflects income computed under the FIFO inventory method.Installment Sale: The profit portion of the installment payment received is included in E&P for the year received.To calculate current E&P for Sparrow Corporation, each of these items must be considered in combination with the corporation's taxable income.
Coronado, Inc. makes high-quality swimsuits. During the year, the company produced 785 suits, using 1,069 yards of material, and the company purchased 925 yards of material for $4,784. The direct materials standard for the swimsuits allows 1.28 yards of material at a standard price of $4 per yard Calculate Coronado's direct materials quantity variance for the year. ( variance is zero, select "Not Applicable" and enter O for the amounts Round answer to O decimal places, e.g. 15.)
Answer:
Actual Quantity Standard quantity Standard rate
1069 1004.8 $ 4
(785 * 1.28)
Direct Material
Quantity Variance= (Standard quantity - Actual quantity) * standard price
(1004.8 - 1069) * $4
$ (256.80) unfavorable
Hence,
Direct Material Quantity Variance = $257 unfavorable
1. Nome Co. sponsors a defined benefit plan covering all employees. Benefits are based on years of service and compensation levels at the time of retirement. Nome determined that, as of September 30, year 2, its accumulated benefit obligation was $380,000, and its plan assets had a $290,000 fair value. The projected benefit obligation on September 30, year 2, was $400,000. In its September 30, year 2 balance sheet, what amount should Nome report as pension liability? $380,000 $110,000 $400,000 $ 90,000
Answer:
$110,000
Explanation:
There is pension liability for a corporation when the the projected benefit obligation (PBO) is greater than the fair value of plan assets. Therefore, pension liability is obtained by simply deducting the fair value of plan assets from the PBO as follows:
Pension liability = $400,000 - $290,000 = $110,000
Therefore, Nome should report $110,000 as pension liability in its September 30, year 2 balance sheet.
Michael's, Inc., just paid $2.25 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 4.9 percent. If you require a rate of return of 9.1 percent, how much are you willing to pay today to purchase one share of the company's stock?
Final answer:
Using the Gordon Growth Model, an investor who requires a 9.1% rate of return would be willing to pay $53.57 for a share of Michael's, Inc. stock, expecting future dividends to grow at a rate of 4.9 percent.
Explanation:
To determine the value of Michael's, Inc. stock given the dividend payment and growth rate, we will use the Gordon Growth Model. This model is used in financial analysis to determine the present value of a stock based on a future series of dividends that grow at a constant rate. Given that Michael's, Inc. paid an annual dividend of $2.25 and announced that future dividends will be increasing by 4.9%, and the investor requires a 9.1% rate of return, the calculation is as follows:
Present value of stock = Dividend per share / (Required rate of return - Growth rate)
Present value of stock = $2.25 / (0.091 - 0.049)
Present value of stock = $2.25 / 0.042
Present value of stock = $53.57
Therefore, an investor would be willing to pay $53.57 today for one share of Michael's, Inc. stock, expecting the dividends to increase at a constant rate of 4.9 percent.
Meat Packers, Incorporated (MPI) preserves and packages various kinds of meats for transportation to grocery stores. To prepare and transport each meat package to a grocery store, the firm must purchase $40 in raw meat and pay $90 in wages for labor and $80 in fuel costs. In addition, the firm rents a factory for $14 comma 000 per month and makes $3 comma 000 in monthly payments on meat packaging equipment. Suppose the firm prepares and transports 2 comma 000 packages of meat per month. What are the firm's fixed and variable costs of production in a given month? The firm's fixed cost of production is $ nothing, and its variable cost of production is $ nothing. (Enter numeric responses using integers.)
Answer:
Total variable cost= $420,000
Total fixed costs= $17,000
Explanation:
Giving the following information:
Variable cost per unit:
Direct material= $40
Direct labor= $90
Unitary variable overhead= $80
Fixed costs:
Rent= $14,000 per month
Equipment= $3,000
Production= 2,000 packages
Total variable cost= unitary cost* production in units
Total variable cost= 210*2,000= $420,000
Total fixed costs= $17,000
Suppose that three firms make up the entire tire manufacturing industry. One has a 50% market share, and the other two have a 25% market share each. The Herfindahl index of this industry is . A new firm, Tread Tough, enters the tire manufacturing industry and immediately captures a 15% share of the market. This would cause the Herfindahl index for the industry to . The largest possible value of the Herfindahl index is 10,000 because: An industry with an index higher than 10,000 is automatically regulated by the Justice Department An index of 10,000 corresponds to 100 firms with a 1% market share each An index of 10,000 corresponds to a monopoly firm with 100% market share
Answer: 2700
Explanation:
Given data
The Herfindahl Index of the industry is
HI = 50^2 + 25^2 + 25^2 = 3,750.
when another firms joins the market, this would cause a decrease in the Herfindahl Index.
new firm ( tread tough) enters the market with a 15% of the share market this would affect the largest shareholder there by causing a reduction in his shares to 35%.
the total HI would now be
HI = 35^2 + 25^2 + 25^2 + 15^2 = 2700.
The Herfindahl Index can never be more than 10,000, as this would represent a 100% market monopoly from a single company. In a perfect monopoly HI is 100^2 = 10,000.
Sales Tax Cobb Baseball Bats sold 45 bats for $50 each, plus an additional state sales tax of 6%. The customer paid cash.Required: Prepare the journal entry to record the sale. If an amount box does not require an entry, leave it blank.a. blank.
b. Cash
c. Sales
d. Revenue Sales
e. Tax Payable
Answer:
Cobb Baseball
Journal Entry
Sr No Particulars Debit Credit
Cash 2385Dr
Sales 2250Cr
Tax Payable 135Cr
Explanation:
45 bats for $ 50= 45*50= 2250
Tax = 6 %of 2250 = $135
total cash received = $2250 + 135 = $2385
The tax payable is the liability of the company to pay tax. The sales are made of $ 2250 and the cash received is $ 2385 including the tax of 6 %.
Usually the sales tax is included in the sales price of an item. But some companies collect it separately and treat it in a separate account.
A 12-year bond of a firm in severe financial distress has a coupon rate of 12% and sells for $920. The firm is currently renegotiating the debt, and it appears that the lenders will allow the firm to reduce coupon payments on the bond to one-half the originally contracted amount. The firm can handle these lower payments. What are the stated and expected yields to maturity of the bonds? The bond makes its coupon payments annually.
Answer:
13.37% ; 7.01%
Explanation:
The computation of the stated and expected yields to maturity of the bonds is shown in the attachment below:
For stated yield, we use the RATE formula i.e
Given that,
Present value = $920
Assuming figure - Future value or Face value = $1,000
PMT = 1,000 × 12% = $120
NPER = 12 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the stated yield is 13.37%
Now for expected yield, we also use the RATE formula i.e
Given that,
Present value = $920
Assuming figure - Future value or Face value = $1,000
PMT = 1,000 × 12% ÷ 2 = $60
NPER = 12 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the expected yield is 7.01%
Final answer:
The stated yield to maturity (YTM) for the bond was based on the full coupon rate of 12%, but after renegotiating the debt and halving the coupon payments, the expected YTM is calculated to be 6.944%.
Explanation:
We need to calculate the stated and expected yield to maturity (YTM) for a 12-year bond, which has a coupon rate of 12% and currently sells for $920. Post-renegotiation, the coupon payments will be halved. To find the stated YTM, we would typically use the coupon payments, face value, and current price of the bond. However, since the coupon payments are expected to change, we need to recalculate.
Originally, the annual coupon payment was 12% of $1000, which is $120. After renegotiating, the coupon payment will be half of this, so $60 per year. With 12 years to maturity and a current price of $920, we can use the formula for YTM for bonds with annual coupons:
YTM Calculation:
YTM = (C + ((F - P) / n)) / ((F + P) / 2)
C = Annual coupon payment ($60 after renegotiation)F = Face value of the bond ($1000)P = Current price of the bond ($920)n = Number of years to maturity (12)Plugging in the values, we calculate the expected YTM:
YTM = ($60 + (($1000 - $920) / 12)) / (($1000 + $920) / 2)
= ($60 + $6.67) / $960
= $66.67 / $960
= 0.06944 or 6.944%
The expected yield to maturity is 6.944%, whereas the originally stated YTM before renegotiation would have been based on the full coupon amount and the current price.
The quality control manager at a computer manufacturing company believes that the mean life of a computer is 80 months, with a standard deviation of 10 months. If he is correct, what is the probability that the mean of a sample of 73 computers would be less than 83.28 months? Round your answer to four decimal places.
Final answer:
To find the probability that the mean of a sample of 73 computers would be less than 83.28 months, we can use the z-score formula.
Explanation:
To find the probability that the mean of a sample of 73 computers would be less than 83.28 months, we can use the z-score formula.
First, we calculate the standard error using the formula:
Standard Error = Standard Deviation / Square Root of Sample Size
Standard Error = 10 / √73 = 1.170
Next, we calculate the z-score using the formula:
z = (Sample Mean - Population Mean) / Standard Error
z = (83.28 - 80) / 1.170 = 2.800
Using a standard normal distribution table or a calculator, we can find the probability that z is less than 2.800.
Lacy's Linen Mart uses the average cost retail method to estimate inventories. Data for the first six months of 2021 include: beginning inventory at cost and retail were $88,500 and $139,000, net purchases at cost and retail were $331,000 and $499,000, and sales during the first six months totaled $509,000. The estimated inventory at June 30, 2021, would be:
Answer:
$83,850
Explanation:
Lacy's Linen Mart
Cost Retail
Beginning inventory$88,500 $139,000
Add: net purchases$331,000 $499,000
Goods available for sale$419,500 $638,000
Cost-to-retail percentage
= $419,500÷ $638,000 = 65%
Less: Net sales($509,000)
Estimated ending inventory at retail
($638,000 -$509,000) $ 129,000
Estimated ending inventory at cost(65% x $129,000)$83,850
Therefore the estimated inventory at June 30, 2021, would be $83,850
"In the economy of Wrexington in 2008, consumption was $5000, exports were $100, government purchases were $900, imports were $200, and investment was $1000. What was Wrexington’s GDP in 2008?"
Answer:
The GDP in 2008 was $6800
Explanation:
The GDP or Gross Dividend Product of the country is the total value of the economic activity or the value of goods and services produced in an economy within a country in a certain year.
The formula to calculate the GDP = C + I + G + ( X - M )
Where,
C is the consumptionI is the InvestmentG is the government spendingX is the value of exportsM is the calue of importsThus, GDP = 5000 + 1000 + 900 + ( 100 - 200)
GDP = $6800
The United States is able to experience economic growth to the extent that
A. specialization and trade are encouraged.
B. the government involves itself in the economy.
C. trade is restricted.
D. jobs are protected from outsourcing.
E. consumers are encouraged to buy domestically produced goods
Answer:
The correct answer is the option E: consumers are encouraged to buy domestically produced goods.
Explanation:
To begin with, in order to the economy to grow the country must encourage the consumers to buy more domestically produced goods so that the when the demand increases so does that income of the firms and that impacts in the demand that the companies do as well. Therefore that the country, and that is, the firms and the government, should encourage the increase of consumption from the buyers in order to intend to experience an economic growth.
Answer:
E. Consumers are encouraged to buy domestically produced goods.
Explanation:
When any economy is experiencing growth, the main driver of that is to make sure that the specialization occurs in producing quality goods and services and then trade is encouraged. But since, here we are talking about the already achieved economic growth by the US, now they are only encouraged to buys locally produced goods as now they have the capability and quality to produce the same goods they once imported from other countries.
Hope this clears the concept here.
Good luck.
Randy Inc. produces and sells tablets. The company incurred the following costs for the May: Advertising cost for monthly television ads $ 5,400 Attachable keyboard 19,400 Insurance for delivery truck 540 Factory supervisor's salary 3,450 Marketing manager's salary 3,150 Assembly worker wages 22,000 Miscellaneous soldering material used to seal case 950 Hourly wages for factory security guard 2,100 CEO's salary 7,200 Speakers 5,100 Required: Determine each of the following:
Randy Inc.'s costs include variable costs like attachable keyboards and fixed costs like advertising and salaries. Total cost calculation requires adding both types of costs. Distinguishing between these is crucial for financial analysis.
Explanation:Randy Inc. incurred a range of costs in May associated with the production and sale of tablets. These include both variable costs and fixed costs. Variable costs are those that change with the level of output, such as the cost of attachable keyboards and the miscellaneous soldering materials. Fixed costs, however, do not vary with the level of output and would include costs like advertising, insurance for delivery trucks, and salaries for the factory supervisor, marketing manager, and CEO.
To calculate the total cost, we would aggregate both fixed and variable costs. Here, considering the separation of costs is important to understand how they would impact the company's financials at different levels of production. For example, the assembly worker wages are a direct variable cost as they vary with the number of units produced, whereas the marketing manager's salary is a fixed cost as it does not change with the number of units produced.
Learn more about Cost Calculation here:https://brainly.com/question/31694326
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Suppose Americans suddenly develop a strong taste for Canadian whiskey. What happens to the demand for Canadian dollars in the foreign exchange market? What happens to the value of Canadian dollars in the foreign exchange market? What about U.S. dollars? What happens to the quantity of net exports in Canada, other than whiskey, as a result of your answer in part b? What about the U.S.?
Answer:
A) If there is a sudden spike in the demand for Canadian Whiskey, the demand for Canadian Dollars will shoot upwards in the FX market.
B) When the demand for Canadian dollars does up in the FX market, the forces of demand and supply will force its price to increase in relation to the dollar.
C) If America is not exporting any commodity, or the number of Canadian goods imported into America is less than what it shipped out to them, then there is a trade deficit. Trade deficits if sustained can lead to a weaker currency.
D) Because the export demand for Canadian Whiskey has taken an upward spiral, the number of net exports in Canada will increase. When this happens, the currency is strengthened and so is the Canadian dollar. When the strength of a currency increases, it automatically gives more purchasing power to those holding that currency.
When compared to the U.S. with a consistently lowered net export, the dollar is likely to depreciate in value, thus eroding the spending or purchasing power of the U.S. dollar.
Cheers!
Which category (or type) of consumer products are: (1) relatively expensive, (2) infrequently purchased, and (3) buyers are willing to expend considerable effort in planning and making purchases? Examples: a house, car, furniture, or computer system
Answer:
consumer products provided are categorized thus:
(1) relatively expensive: a computer system
(2) infrequently purchased: A car
(3) buyers are willing to expend considerable effort in planning and making purchases: A house
Explanation:
Consumer products are defined as products that satisfy a consumer's wants or needs. There can be convenient, affordable as well as expensive and infrequently purchased.
Consumer goods are final goods sold to consumers for use. It is usually not used as means for further economic production activity.
Some consumer goods are durable and can last for up to three years or more while some are perishable with expiry dates and must be consumed within a short pace of time.
Finally, consumer goods can be grouped into different categories based on consumer behavior depending on how frequently they are used.