Sommer, Inc., is considering a project that will result in initial aftertax cash savings of $1.9 million at the end of the first year, and these savings will grow at a rate of 1 percent per year indefinitely. The firm has a target debt-equity ratio of .75, a cost of equity of 13 percent, and an aftertax cost of debt of 5.8 percent. The cost-saving proposal is somewhat riskier than the usual project the firm undertakes; management uses the subjective approach and applies an adjustment factor of 2 percent to the cost of capital for such risky projects. What is the maximum initial cost the company would be willing to pay for the project? (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to the nearest whole dollar amount, e.g., 1,234,567.)

Answer:

Sample size = 384.16 ≈ 385

If we increase the order size to 25,000, there will be no change in the sample size as sample size is independent of the number of orders

Explanation:

Data provided in the question:

Number of sales order received  per day = 2500

Confidence level = 95%

Certainty factor for 95% certainty = 1.96

Now,

Sample size = [tex]0.25\times(\frac{\textup{Certainty factor}}{\textup{1 -Desired accuracy}})^2[/tex]

on substituting the respective values, we get

Sample size = [tex]0.25\times(\frac{\textup{1.96}}{\textup{1 - 0.95}})^2[/tex]

or

Sample size = 384.16 ≈ 385

If we increase the order size to 25,000, there will be no change in the sample size as sample size is independent of the number of orders

Answer:

future value  =  240.076 = 240.08

so correct option is  $240.08

Explanation:

given data

present value = $125

rate = 8.5 % = 0.085

time = 8 year

to find out

future value

solution

we get here future value that is express as

future value  = present value × [tex](1+r)^{t}[/tex]    ...........................1

here r is rate and t is time period

put here value in equation 1

future value  = present value × [tex](1+r)^{t}[/tex]    

future value  = $125 × [tex](1+0.085)^{8}[/tex]    

future value  =  240.076 = 240.08

so correct option is  $240.08

Answer:

The first two solutions are attached in the excel document.

The answer and procedures of the exercise are attached in a microsoft excel document.  

Explanation:

Solution 3:

Amount at which purchase on February 1 be recorded if the net method were used = $9,100*90%*97% = $7,944

Answer:

A) 47.83%

Explanation:

The computation of the return is shown below:

= (Supernova price per share - owned purchase price per share) ÷ (owned purchase price per share) × 100

= ($34 per share - $23 per share) ÷ ($23 per share) × 100

= ($11 per share) ÷ ($23 per share) × 100

= 47.83%

Simply we take the difference per share and then divide it by the owned purchase price per share so that the accurate rate of return can be computed

Answer:

option (A) 5

Explanation:

Data provided in the question:

Total fixed cost = $40,000

Selling price = $250 per unit

Average variable cost = $150

Output = 500 units

Now,

Firm's degree of operating leverage

= {output × ( Selling price - Variable cost )} ÷ {output × ( Selling price - Variable cost )-Total fixed cost}

on substituting the respective values, we get

= [tex]\frac{500\times( 250 - 150 )}{500\times(250 - 150 ) - 40,000}[/tex]

= 50,000 ÷ [ 50,000 - 40,000 ]

= 50,000 ÷ 10,000

= 5

Hence,

The correct answer is option (A) 5

Answer:

A. When a company has durable competitive assets that are central to its strategy and superior to those of rival firms.

Explanation:

A sustainable competitive advantage is basically the strength to hold on sustainably no matter what.

Answer:

D

Explanation:

Penetration pricing strategy is setting an initial low price in other to gain market share and switch consumers from competitors. As a new entrant into the market with Low cost production, penetration pricing  strategy should be introduced.

Answer:

Recommendation: Do not support such rule

Explanation:

This type of budget rules restrain governments from employing taxes and transfers as automatic stabilizers. This due to the fact that these rules tend to bring deficits and surpluses.

Answer:

$8 million

Explanation:

There are total 4 sources involved.

But the government grants are reduced from the cost of the the project. It is not recorded as other financing sources.

Also the earnings from bond proceeds shall not be considered for the other financing sources, as that is mere use of income.

Use of general fund in these capital projects will account for such other financing sources.

Cash received from issue of bonds for this project will also account for such capital fund.

Thus, total other financing sources = $1 million + $7 million = $8 million

In this scenario, the amount to be reported as 'Other financing sources' in the Capital Projects Fund totals $8.1 million, which is the sum of the transfer from the General Fund ($1 million), the bond proceeds ($7 million), and the earnings from temporary investments ($100,000).

In accounting for government funds, the amounts reported as Other financing sources in a Capital Projects Fund typically include transfers from other funds, proceeds from long-term debt (bonds), and interest earned on temporary investments.

In your case, the state is funding the construction of an office building with: a transfer of $1 million from the General Fund (1), a grant of $2 million from the federal government (2), bond proceeds of $7 million (3), and earnings of $100,000 from temporary investment of bond proceeds (4).

The grant from the federal government would not typically be classified as 'Other financing sources' for the Capital Projects Fund. Instead, it would be classified as revenue. Therefore, the total amount to be reported as Other financing sources in the Capital Projects Fund would be the sum of items 1, 3, and 4: $1 million + $7 million + $100,000 = $8.1 million.

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Answer:

The company's turnover rounded to the nearest tenth: C) 9.5

Explanation:

Asset turnover helps investors understand how effectively companies are using their assets to generate sales. Asset turnover is calculated by using following formula:

Asset Turnover =  Total Sales or Revenue/ Average Total Assets  

where:

Average Total Assets = (Beginning Assets + Ending Assets )/2 = (Assets at the beginning of year  +Assets at end of year )/2

In the House of Orange:

Average Total Assets = ($84,000 + $90,000)/2 = $87,000

Asset Turnover = $826,650/$87,000 = 9.5

Final answer:

The company's turnover is found by dividing sales by average operating assets. Sales were $826,650 and the average operating assets were $87,000, resulting in a turnover of approximately 9.5 when rounded to the nearest tenth.

Explanation:

To find the company's turnover, we need to use the formula for asset turnover ratio, which is calculated by dividing sales by average operating assets. For the House of Orange, the sales were $826,650, and the average operating assets are the average of the beginning and end of year assets, which are $84,000 at the beginning and $90,000 at the end. Thus, the average operating assets are calculated as ($84,000 + $90,000) / 2 = $87,000.

Now, we use the sales and average operating assets to find the turnover: Turnover = Sales / Average Operating Assets = $826,650 / $87,000 ≈ 9.506, which rounded to the nearest tenth is 9.5. So, the correct answer would be (C) 9.5.

Answer:

b. based on corruption based on competitiveness

Explanation:

Competing globally and enhancing a nation’s position internationally are characteristically linked to the welfare of citizens. In fact, in today’s world, improving the welfare of citizens has become a priority for responsible governments and those which aspire to be global actors.

Liberalization, globalization of business, and access to information have induced governments in many parts of the world to demonstrate to their constituencies that they are responsive and committed to fostering a healthy economy.

The project's annual free cash flow, considering the impact on the other project and the 40% marginal tax rate, is $2.6 million.

The subject pertains to the determination of the annual free cash flow of a project. Free cash flow is calculated by subtracting cash expenses, tax, and the impact on revenues from other projects from the total revenue it produces.

Here's how it's done:

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To calculate the annual free cash flow, you subtract cash expenses and opportunity costs from revenue, add non-cash expenses, then subtract taxes on the remaining amount. The annual free cash flow for the project is $4 million.

In order to calculate the free cash flow for the project, we need to account for the operating cash flows, changes in net working capital, and expenditures. The operating cash flows can be derived from the project's revenue, expenses, and taxes. Depreciation is non-cash, so we add it back after deducting taxes. Additionally, the reduction in cash revenue from an existing project is considered an opportunity cost and must be subtracted to reflect the true incremental cash flows from the project.

Here is the step-by-step calculation:

The annual free cash flow of the project is $4 million.

Answer:

$2,300

Explanation:

Assuming that the requirements for qualified plan awards are otherwise satisfied, each award by itself would be excluded from income.

The excludable amount or deduction is $1,600 out of total amount of awards.

Total amount of awards = Design + Graphic + Employee  of the year

                                         = $1,340 + $1,775 + $785

                                          = $3,900

Taxable awards = Total amount of awards – Excludable amount

                            = $3,900 – $1,600

                             = $2,300

However, because the $3,900 total value of the awards is more than $1,600, Keren must include $2,300 in his taxable income.

Answer:

$184.67 each month

Explanation:

Giving the following information:

Howard is saving for a long holiday. He deposits a fixed amount every month in a bank account with an EAR of 11.8​%. If this account pays interest every month then how much should he save from each monthly paycheck in order to have $ 15,000 in the account in five ​years' time?

We need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

n= 5*12= 60

i= 0.118/12= 0.00983

FV= 15,000

A=(15,000*0.00983)/[(1.00983^60)-1]= $184.67

Howard should save $184.67 from each monthly paycheck.

To calculate how much Howard should save from each monthly paycheck, we need to use the formula for future value of an ordinary annuity:

FV = P * ((1 + r)^n - 1) / r

Where FV is the future value, P is the monthly deposit, r is the monthly interest rate (which is 11.8% divided by 12), and n is the number of months (which is 5 years times 12 months). Rearranging the formula to solve for P, we get:

P = FV * r / ((1 + r)^n - 1)

Plugging in the values, the calculation is:

P = $15000 * (0.118 / 12) / ((1 + (0.118 / 12))^(5 * 12) - 1) = $184.67

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Answer:

The false statement is letter "D": A BOM cannot be referenced on other bills of material.

Explanation:

A Bills of Material or BOM is a complete list including raw material, pieces and components and the quantity of each one of them that is necessary to produce or repair a product. Usually, for complementary goods, the BOM of one of them can be referenced in the BOM of another so opportunities for reducing costs can be identified.

The false statement regarding a bill of material is that a BOM cannot be referenced on other bills of material. In fact, subassemblies can have their own BOMs, which are included in the BOMs of more complex assemblies. Hence, correct option D.

The statement D. A BOM cannot be referenced on other bills of material is not true regarding a bill of material (BOM). It is quite common in complex manufacturing processes for a BOM to reference other BOMs, especially when various subassemblies are involved in creating a final product. This hierarchical structure allows for more efficient material tracking and inventory management. Therefore, subassemblies can indeed have their own BOMs, which are referenced in the BOM of a more complex assembly.

A Bill of Material (BOM) serves several critical functions in manufacturing and production:

A BOM lists the quantity of each component required to make one unit of a product, ensuring accurate material planning.

It includes a hierarchy of components along with a descriptive list, organizing the components in a way that reflects their relationships within the product.

In the food-service industry, BOMs take the form of portion-control standards, specifying the amount of each ingredient used in a dish to maintain consistency and control costs.

Answer:

The interest expense of $2,765.94 is recorded in the annual income statement.

Explanation:

As the interest is paid semiannually, so the first interest will be in June, it is computed by using the method of effective interest rate :

Interest expense = Amount × Rate / 2

=$69,058 × 0.04 / 2

= $1,381.16

Now, Computing the amount of the above interest expense that amortizes the bond discount as:

= Face value × issued at 3% / 2

= 80,000× 0.03 / 2

= $1,200

= $1,381.16 - $1,200

= $181.16

The difference is added to the carrying value of the bond which is:

= Difference amount + Carrying amount

= $181.16+ $69,058

= $69,239.16

The interest for 6 months ending on December 31 is computed as:

= $69,239.16 ×0.04 / 2

= $1,384.78

Total interest expense at 12/31/12 would be:

= June 30 expense + December 31 expense

= $1,381.16 + $1,384.78

= $2,765.94

The interest expense Lyle's Limeade would record in the December 31, 2021, annual income statement, based on its bond issued at discount, would be $2,789.94.

Lle's Limeyade issued a 3% bond whose face value is $80,000. However, this bond was sold for less than its face value at $69,058, meaning that the bond was issued at a discount. This happens when the market interest rate (4% in this case) is higher than the bond's coupon interest rate (3%). Interest expense for a bond issued at a discount is calculated using the market interest rate at the time the bond was issued multiplied by the bond's book value at the beginning of the year.

Since the interest is paid semiannually, you would use 2% (4%/2) as the rate for each 6-month period. Therefore, if this bond was issued on January 1, 2021, the interest expense recorded in the December 31, 2021, annual income statement would be the sum of the interest expenses of the two 6-month periods in 2021.

The interest for the first six months would be $69,058 (book value at beginning of 2021) * 2% = $1,381.16. Then, the book value at the beginning of the second period would be $69,058 (initial book value) + $1,381.16 (first period interest) = $70,439.16. So, the interest expense for the second six months is $70,439.16 * 2% = $1,408.78.

So, the total interest expense that would be recorded in the December 31, 2021, annual income statement would be $1,381.16 (first six months interest) + $1,408.78 (second six months interest) = $2,789.94.

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Answer:

The most appropriate technique to teach the workforce would be "Cognitive Reappraisal".

Explanation:

"Cognitive Reappraisal" is a technique for managing emotions that involves an individual, realizing and accepting he has no control over a situation, and then choosing to think about the situation in a way which helps to create a positive emotional response rather than a negative one.

This technique will help the workforce regulate emotions more effectively.

Answer:

Option B $1.03

Explanation:

First lets calculate present value = cash flow(PVAF, life, rate) where PVAF = present value annuity factor

= 15(PVAF, 10, 5 years)

from the annuity table

Present value = 15 * 3,790 = $56.8618 million

The decrease in Present value will be  $56.8618 million

Decrease in price = present value/number of share = 56.8618/66 = 1.033851 approx $1.03

Final answer:

Aerelon's shares are expected to fall by $1.14 per share due to the crash. This is calculated by determining the present value of the lost free cash flows at a 10% discount rate and dividing by the number of shares outstanding.

Explanation:

To calculate how much Aerelon’s shares are expected to fall in price as a result of the crash, we need to determine the present value (PV) of the loss in free cash flows (FCF). The total loss in FCF is $15 million per year for five years. Using the given equity cost of capital which is 10%, we can discount these future cash flows to the present value. We then divide this total loss in present value by the number of shares outstanding to determine the per-share price impact.

Calculating the Present Value of the Loss in Free Cash Flows:

The formula for the present value of an annuity (a series of equal payments at regular intervals) is PV = FCF × [(1 - (1 + r)^(-t)) / r], where FCF is the annual free cash flow, r is the equity cost of capital, and t is the number of years.

PV = $15 million × [(1 - (1 + 0.10)^(-5)) / 0.10]

PV = $15 million × [(1 - (1 + 0.10)^(-5)) / 0.10]

PV = $15 million × [4.16986]

PV = $62.5479 million

Calculating the Per-Share Price Impact:

The total present value of the loss is divided by the number of shares outstanding to find the per-share impact.

Share price impact = PV / Number of shares

Share price impact = $62.5479 million / 55 million shares

Share price impact = $1.14

Therefore, as a result of the crash, Aerelon’s shares would be expected to fall by $1.14 per share, which corresponds to option C.

Answer:

D. the money in one's pocket

Explanation:

this is so because the financual assets needed fpr a business to produce good and/or services requires money

Answer:

The correct answer is A

Required reserve is $1,300

Excess reserve is $700

Explanation:

Excess reserve is the capital reserve that is held by the financial institutions or the banks in excess or more of what is needed by the creditors, internal controls or the regulators.

So, it is the reserves banks need to keep above the legal requirements.

The required reserve is computed as:

Required reserve = Reserve ratio × Deposits

= 13% × 10,000

= $1,300

Excess reserve is computed as:

Excess reserve = Reserves - Required reserve

= $2,000 - $1,300

= $ 700

Excess reserves are funds that banks hold over and above the legal requirement set by the Federal Reserve. Based on the 13% reserve ratio and the bank's balance sheet, the required reserves are $1,300 and the excess reserves are $700.

In response to your question, the excess reserves are reserves that banks hold in addition to the legal requirement. This means they surpass what's mandated by the Federal Reserve, and is not used for loans or investments. So, option A is correct in stating that excess reserves are the reserves banks keep above the legal requirement.

Looking at the bank's balance sheet with reserves of $2,000 and deposits of $10,000, you can calculate the required and excess reserves. Given that the required reserve ratio is 13%, the required reserves would be 13% of $10,000 which equals $1,300. Since the actual reserves are $2,000, the excess reserves would be $2,000 - $1,300 which equals $700.

So, the bank keeps required reserves of ​$1300 and excess reserves of ​$700.

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Answer:

c. $59,940.

Explanation:

The computation of the recorded cost of the van is shown below:

= Net price - net price × cash discount + sales tax + extra amount paid for special device installed

where,

Net price = $70,000 - $70,000 × 15%

               = $70,000 - $10,500

               = $59,500

And, the other items values would remain the same

Now put these values to the above formula

So, the value would be equal to

= $59,500 - $59,500 × 2% + $930 + $700

= $59,500 - $1,190 + $930 + $700

= $59,940

Final answer:

To find the recorded cost of the van, calculate the net price after discounts, add sales taxes and the cost of the special device. The correct recorded cost of the van is $59,940.

Explanation:

To find the recorded cost of the van, we need to calculate the net price after the discounts and then add the sales taxes and the cost of the special device.

The list price is $70,000.

The dealer grants a 15% reduction, which means a discount of $70,000 * 0.15 = $10,500.

The net price after the 15% reduction is $70,000 - $10,500 = $59,500.

The dealer also offers an additional 2% cash discount if payment is made in 30 days. This is a discount of $59,500 * 0.02 = $1,190.

The net price after both discounts is $59,500 - $1,190 = $58,310.

The sales tax is $930, and the cost of the special device is $700.

Therefore, the recorded cost of the van should be $58,310 + $930 + $700 = $59,940.

Therefore, the correct answer is c. $59,940.

Answer:

The answer is in a perfect competition profit is maximized when marginal cost equal marginal revenue and price is equal to average revenue and marginal revenue, while in monopolist profit is maximized when marginal cost is equal to marginal revenue.

Explanation:

The firm in a perfectly competitive market is a price taker,the price in the market is determined by the market forces of demand and supply. The firm has to sell their product at the ruling market price.The demand curve facing the firm in perfectly competitive market is horizontal or perfectly elastic, profit is therefore maximized when the marginal cost is equal to average revenue and marginal revenue. The firm in the market operate at the output level in which the price and marginal revenue is equal to marginal cost. Whatever prices that change the market demand or supply will change the demand curve faced by the firm.The firm cannot do anything to this than to accept the market price and the demand curve.

In a monopoly the demand curve is identical to the demand curve of the firm, because industry demand curve is downward sloping.The monopolist can either set the price or quantity not the two.when one is determined the value of the other will be determined by the demand function. The profit maximization of the monopolist also requires that marginal cost must be equal to marginal revenue just like in the case of perfect completion.when the monopolist equates MR and MC the monopolist determines its output and the market price for the product. The revenue curve is steeper than the demand curve,because the straight line is the market demand. The firm will have to reduce The price of the product if they want to sell more of their product the unit of the product sold is the AR which is equal to the price.Therefore the AR curve of the monopolist and the perfect competition MR and AR are both identical that informed the reason why the marginal revenue curve is steeper than the demand curve for a single price monopolist.

In a perfect competition market, the Marginal Revenue is equal to the price (MR = P), and for monopolist, the marginal revenue is not equal to the price, because changes in quantity of output affects the price.

Marginal revenue (MR) is an increase in the total revenue resulting from an increase in one unit of product. As the price always remains constant in perfect competition, increasing the total revenue from the production of 1 additional unit will be equal to the price.

Therefore, Price = Marginal Revenue (P = MR) in perfect competition.

In a monopoly the demand curve is the same as the firm's demand curve, in that the industry demand curve drops downwards. One owner can set the price or quantity and not both.

If one is determined the price of the other will be determined by the demand function. Increasing the monopolist's profit also requires that the marginal cost should be equal to the marginal revenue as if it were in perfect competition.

The Marginal revenue curve is steeper than the demand curve because a straight line is market demand. The firm will have to lower the Product Price if it wants to sell more of its product a unit of sale sold average revenue equal to the Price.

So the AR curve of AR monopolist and perfect competition MR and AR are both same.

Thus, this is the reason why the marginal revenue curve is steeper than the demand curve in the case of a monopolist.

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Answer:

D.848

Explanation:

Please see attachment

The labor cost per unit has increased by $0.50 while the material cost has decreased by $1.00, leading to a net decrease in total unit cost by $0.50. If half of the new costs/savings are passed to the customers, there will be a net decrease in the selling price by $0.25 per unit. However, due to missing data such as unit selling price and fixed costs, we can't calculate the exact break-even point.

First, let's calculate the impact of labor and material costs changes on the unit cost of product Baker. The labor cost per unit has increased by $0.50 ($2.40 - $1.90) but the material cost per unit has decreased by $1.00 ($6.82 - $5.82) resulting in a net decrease in the total unit cost by $0.50. If Baldwin decides to pass half of the new costs/savings to the customers, this means there will be a net decrease in the selling price by $0.25 per unit.

To calculate the number of units needed to break even, we need to know the unit contribution margin (the selling price per unit - unit variable cost). Since all period costs are said to remain the same, we can use this figure as the fixed cost in our break-even formula. Unfortunately, as important data such as the selling price per unit and fixed costs are missing, it's not possible to solve the break-even point problem.

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Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

Answer:

E. benchmarking

Explanation:

Benchmarking is used to identify internal opportunities for improvement by identifying other organizations that are best at some aspects of your operations, studying and breaking down what makes those organizations perform better and then aiming to implement changes in your company in order to achieve the same standards of the analyzed organizations.

Answer: Medium of exchange

Explanation:

The most essential quality of money lacked by both Fish and Cattle is medium of exchange which implies having an item that will help in determining the rate of exchange for different products. Both cannot be used for this purpose for lack of homogeneity, divisibility, portability etc.

Both items can be allocated by the Government, used in storing value, they are stackable and can both work as units of accounts.

Final answer:

Jack's adjusted gross income (AGI) would be calculated by adding his salary ($167,500) and partnership income ($8,800) to get $176,300, then subtracting deductible alimony payments ($28,300) to arrive at an AGI of $148,000.

Explanation:

To calculate Jack's adjusted gross income (AGI), we must consider all sources of income and allowable deductions. First, we sum up all income sources:

This gives us a total income of $167,500 + $8,800 = $176,300.

Next, we subtract the deductions for AGI Jack is eligible to claim:

However, the moving expenses and interest on loans for qualified tuition costs are not deductible for AGI, as these types of deductions have been suspended or changed in recent tax reforms (unless the moving expenses are for certain members of the Armed Forces). As a result, we do not subtract the $4,300 moving expenses or the $5,000 interest for tuition costs from total income.

Finally, we calculate Jack's AGI:

Total income: $176,300
Minus deductible alimony: $28,300
Adjusted Gross Income (AGI): $148,000

Jack's Adjusted Gross Income (AGI) is calculated by adding his salary and partnership income, and then subtracting allowable deductions like interest on student loans, moving expenses, and alimony. The resulting AGI is $138,700.

Calculation of Adjusted Gross Income (AGI) for Jack

To calculate Jack's Adjusted Gross Income (AGI), we need to consider his total income and then subtract allowable deductions.

Total Income: Jack received a salary of $167,500 and reported an additional $8,800 from a half share of profits from a partnership.

Add these amounts to get the Total Income:

Salary: $167,500

Partnership Income: $8,800

Total Income: $167,500 + $8,800 = $176,300

Deductions:

Interest on qualified student loans: $5,000

Moving expenses: $4,300

Alimony paid (deductible if the divorce occurred before 2019, such as in Jack's case): $28,300

The total deductions are calculated as:

$5,000 + $4,300 + $28,300 = $37,600

Finally, subtract the total deductions from the total income to get the AGI:

AGI = $176,300 - $37,600 = $138,700

Therefore, Jack will report an Adjusted Gross Income (AGI) of $138,700 in his married-joint return

Answer:

Explanation:

The effects of (cash receipt or payment and amount) is shown below:

Retired $190,000 of bonds, on which there was $1,900 of unamortized discount, for $198,000. - cash payment of $198,000

Sold 7,000 shares of $30 par common stock for $69 per share - cash receipts for $483,000     (7,000 shares × $69)

Sold equipment with a book value of $45,100 for $64,900 - cash receipts for $64,900

Purchased land for $417,000 cash - cash payment for $417,000

Purchased a building by paying $85,000 cash and issuing a $100,000 mortgage note payable - cash payment for $85,000

Sold a new issue of $320,000 of bonds at 99 - cash receipts for $316,800 ($320,000 × 0.99)

Purchased 5,400 shares of $20 par common stock as treasury stock at $39 per share - $210,600 (5,400 shares × $39)

Paid dividends of $2.00 per share. There were 33,000 shares issued and 5,000 shares of treasury stock - cash payment for $52,000

(33,000 shares - 5,000 shares) × $2

Answer:

a decrease in the interest rate and a positive increase in the demand will increase the demand that will increase the actual output that will go beyond the potential output and increase the inflation and decrease the unemployment rate.

Explanation:

a decrease in the interest rate and a positive increase in the demand will increase the demand that will increase the actual output that will go beyond the potential output and increase the inflation and decrease the unemployment rate.

Final answer:

The flexible budget performance for July can be analyzed by calculating the revenue and spending variances as well as the activity variances. The revenue variance is -$3,050 and the spending variance is $180. The net operating income activity variance is -$2,852.

Explanation:

The flexible budget performance for July can be calculated by analyzing the revenue and spending variances as well as the activity variances.

(a) Revenue and Spending Variances:

The revenue variance can be calculated by finding the difference between the actual revenue and the flexible budget revenue. In this case, the revenue variance is $16,200 - $19,250 = -$3,050. The spending variances can be calculated by finding the difference between the actual expenses and the flexible budget expenses for each category. The total spending variance is $13,835 - $13,655 = $180.

(b) Activity Variances:

The activity variances can be calculated by finding the difference between the actual results and the planning budget results. The net operating income activity variance is $2,365 - $5,217 = -$2,852.