To calculate the size of each payment from the annuity, use the present value formula. The size of each payment from the annuity should be approximately $388.88.
Explanation:To calculate the size of each payment from the annuity, we need to use the present value formula. The present value of the annuity is given as $46,000. The interest rate is 3.75% per year, compounded monthly. The annuity will be paid for 9 1/4 years, which is a total of 111 months.
Using the present value formula:
Present Value = Payment * (1 - (1 + interest rate/number of periods)^(-number of periods))) / (interest rate/number of periods)Plugging in the values, we have: 46000 = Payment * (1 - (1 + 0.0375/12)^(-111))) / (0.0375/12)Solving for Payment, we find that the size of each payment from the annuity should be approximately $388.88.
The size of each payment should be approximately [tex]\$144.81.[/tex]
The correct size of each payment from the annuity is given by the formula for the present value of an ordinary annuity:
[tex]\[ P = \frac{PV}{\frac{1 - (1 + r)^{-n}}{r}} \][/tex]
where:
[tex]\( P \)[/tex] is the size of each payment,
[tex]\( PV \)[/tex] is the present value of the annuity,
[tex]\( r \)[/tex] is the monthly interest rate, and
[tex]\( n \)[/tex] is the total number of payments.
Given:
[tex]\( PV = \$46,000 \)[/tex]
The annual interest rate is [tex]\( 3.75\% \)[/tex],
Interest is compounded monthly, so the monthly interest rate [tex]\( r \)[/tex] is [tex]\( \frac{3.75\%}{12} \)[/tex],
The annuity makes payments for [tex]\( 9\frac{1}{4} \)[/tex] years, which is [tex]\( 9 + \frac{1}{4} = 9.25 \) years,[/tex]
There are [tex]12[/tex] payments per year, so the total number of payments [tex]\( n \)[/tex] is [tex]\( 9.25 \times 12 \).[/tex]
First, we calculate the monthly interest rate:
[tex]\[ r = \frac{3.75\%}{12} = \frac{0.0375}{12} = 0.003125 \][/tex]
Next, we calculate the total number of payments:
[tex]\[ n = 9.25 \times 12 = 111 \][/tex]
Now we can plug these values into the annuity formula:
[tex]\[ P = \frac{46000}{\frac{1 - (1 + 0.003125)^{-111}}{0.003125}} \][/tex]
Solving this equation:
[tex]\[ P = \frac{46000}{\frac{1 - (1 + 0.003125)^{-111}}{0.003125}} \][/tex]
[tex]\[ P = \frac{46000}{\frac{1 - (1.003125)^{-111}}{0.003125}} \][/tex]
[tex]\[ P = \frac{46000}{317.6051} \][/tex]
[tex]\[ P = 144.81 \][/tex]
Joel wants to buy his best friend a home audio system for his birthday. He visits a few electronic stores and looks at different brands of audio systems and compares their prices. He finally purchases a wireless Bluetooth home audio system from a store that offers good quality within a reasonable price. In the context of product classifications, Joel's purchase falls under the category of _____.
Answer: Shopping products
Explanation:
A shopping product is a type of product which equires consumer research and the comparison of different brands. Shopping products are items that are less frequently bought by the consumer hence the consumer compare several available brands in the market.
Consumers need planning, time and efforts before a final decision is taken on whether to purchase the product or not.
For example, considering the audio system that Joel wants to buy, he analyzed available brands firstly in the market taking the price and quality into consideration after which a wireless bluetoth home audio system was chosen and paid for. Examples of shopping product are washers, fridge, television etc.
Answer:
shopping products
Explanation:
The difference in operating income under absorption costing and variable costing is $ 33,000 . The 2017 operating income under absorption costing is greater than the operating income under variable costing because _________ As a result, under absorption costing, a portion of the fixed overhead remained in inventory and led to a lower cost of goods sold than under the other method.
Answer:
an increase in inventory units.
Explanation:
Absorption costing values units of inventory and production using full cost per unit. Full cost per unit includes variable cost and a portion of fixed production overheads. The fixed production overhead are charged to cost units using predetermined overhead absorption rate.
Whenever there is an increase in inventory in the course of the accounting period , a portion of overhead which has been charged to the closing inventory units would be carried forward to the following accounting period. The impact of this is that the cost of goods sold under absorption costing would be lower than that of variable costing unit, therefore making the profit under the former method to be greater
Arthur is a 30 percent partner in the CAR Partnership. At the beginning of the tax year, Arthur's basis in the partnership interest was $60,000, including his share of partnership liabilities. During the current year, CAR reported net ordinary income of $40,000. In addition, CAR distributed $5,000 to each of the partners ($15,000 total). At the end of the year, Arthur's share of partnership liabilities increased by $20,000. Arthur's basis in the partnership interest at the end of the year is:a. $60,000.b. $120,000.c. $87,000.d. $75,000.e. None of these choices are correct.
Answer:
c. $87,000
Explanation:
The computation of the Arthur's basis in the partnership interest at the end of the year is shown below:
= His share of partnership liabilities + net operating income share + increased share in liabilities - distributed amount
= $60,000 + $12,000 + $20,000 - $5,000
= $87,000
Net operating income share is
= $40,000 × 30%
= $12,000
We simply applied the above formula
Tomas and Saturn are partners who share income in the ratio of 3:1. Their capital balances are $80,000 and $120,000, respectively. Income Summary has a credit balance of $30,000. What is Tomas's capital balance after closing Income Summary to the capital accounts?
Answer:
$102,500
Explanation:
Credit balance of $30,000 in income summary is PROFIT.
Which will be distributed among Tomas and Saturn in 3:1 ratio.
Tomas will get 3/4 * $30,000 = $22,500 as profit
After closing income summary to capital his capital balance will be
$22,500 + $80,000 = $102,500
Mulherin's stock has a beta of 1.2, its required return is 10%, and the risk-free rate is 4%. What is the required rate of return on the market? (Answer: %, Hint: First, find the market risk premium.)
Answer:
9%
Explanation:
The formula is Ra=Rf+(Rm-Rf)Ba
Ra=10%
Ba=1.2
Rf=4%
Rm=?
Ra=Rf+(Rm-Rf)*Ba
10%=4%+(Rm-4%)*1.2
10%=4%+1.2Rm-4.8%
10%+4.8%=4%+1.2Rm
14.8%-4%=1.2Rm
Rm= 10.8%/1.2
Rm=9%
Prepare an amortization schedule for a three-year loan of $84,000. The interest rate is 9 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan
An amortization schedule can be created by calculating annual payments using the annuity formula, and noting down interest and principal repayment proportions. The total interest paid is calculated by multiplying the annual payment with the number of years and subtracting the original loan amount.
Explanation:From the given information, the annual payment for the three-year loan of $84,000 at 9% interest rate can be calculated using an annuity formula. The annual payment can be calculated using the formula A = P * [ r(1 + r)^n ] / [ (1 + r)^n - 1], where P is the loan amount ($84,000), r is the rate of interest (9% or 0.09), and n is the number of years (3). After calculating an annual payment, an amortization schedule can be formed, showing the proportions of principal repayment and interest in each payment.
Each year, the interest portion of the payment would decrease while the principal repayment would increase.
Total interest paid over the life of the loan would be obtained by multiplying the annual payment by the number of years, and subtracting the original loan amount. The presented tables must be an illustration rather than a direct answer to the question as some values do not match the given parameters. Please disregard the irrelevant information provided.
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Yzer Inc. asked for volunteers from its employees to help with yard work on its premises prior to a grand reopening. Barton Rodr, a salaried programmer who received no additional pay, suffered a heart attack while doing the lawn work. He sought workers' compensation benefits, but Yzer denied he was working as an employee at the time of the injury, claiming that it had not occurred during the course and scope of his employment. Should Rodr recover workers' compensation benefits
Answer: Yes he should.
Explanation:
Barton Rodr was a salaried programmee who was working for Yzer at the time of the accident.
He decided to volunteer to help his company with yard work for it's grand reopening.
Whilst helping, he sustained an injury and notified his employers of his intention to seek workers compensation benefits. In doing so, he has satisfied one of the requirements for claiming such.
His employer then refused to grant him workers compensation as it says that he was not working at the time.
This is untrue as Barton Rodr was working at the time of the incident. Even though he was volunteering for the company, it does not mean that he was a volunteer because he was not an ordinary person but rather an employee of the firm.
According to the law, workers compensation arises in the line of duty to the employer. The only deviation is where the employee is doing something purely personal or for another entity. Barton Rodr in this instance was still serving his employer even though it was outside the office.
It is important to note that what Mr. Rodr was doing was in the interest of his employer and he was still an employee when the incident happened.
These 2 facts alone entitle him to workers compensation benefits.
New tire retreading equipment, acquired at a cost of $110,000 on September 1 at the beginning of a fiscal year, has an estimated useful life of four years and an estimated residual value of $7,500. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected. In the first week of the fourth year, on September 6, the equipment was sold for $18,000. Required: 1. Determine the annual depreciation expense for each of the estimated four years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by (a) the straight-line method and (b) the double-declining-balance method.
Answer:
See explanation section.
Explanation:
See the image.
This detailed answer calculates the annual depreciation expense using both the straight-line and double-declining-balance methods for a tire retreading equipment costing $110,000 over four years. Both methods are explained step-by-step with examples. The final gain on sale of the equipment is also calculated.
To determine the annual depreciation expense using the straight-line method:
Calculate the annual depreciation expense: (Cost - Residual Value) / Useful Life = ($110,000 - $7,500) / 4 = $25,625 per year.
Create a table to show each year's depreciation, accumulated depreciation, and book value:
Year 1: Depreciation: $25,625; Accumulated: $25,625; Book Value: $84,375Year 2: Depreciation: $25,625; Accumulated: $51,250; Book Value: $58,750Year 3: Depreciation: $25,625; Accumulated: $76,875; Book Value: $33,125Year 4: Depreciation: $25,625; Accumulated: $102,500; Book Value: $7,500For the double-declining-balance method:
Calculate the annual depreciation rate: (2 / Useful Life) = 50%.
Apply the rate to the book value at the beginning of each year:
Year 1: Depreciation: $110,000 * 50% = $55,000; Accumulated: $55,000; Book Value: $55,000Year 2: Depreciation: $55,000 * 50% = $27,500; Accumulated: $82,500; Book Value: $27,500Year 3: Depreciation: $27,500 * 50% = $13,750; Accumulated: $96,250; Book Value: $13,750Year 4: Depreciation: ($13,750 - $7,500) = $6,250; Accumulated: $102,500; Book Value: $7,500The equipment sold in the fourth year for $18,000 results in a gain of $10,500 because the book value was $7,500.
Crane uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were $378000 ($582000), purchases during the current year at cost (retail) were $1815000 ($3060000), freight-in on these purchases totaled $117000, sales during the current year totaled $2760000, and net markups (markdowns) were $60000 ($96000). What is the ending inventory value at cost
Answer:
$524,520
Explanation:
The computation of the ending inventory at cost is shown below:
Particulars Cost Retail
Beginning Inventory $378,000 $582,000
Purchases $1,815,000 $3,060,000
Freight In $117,000
Net Mark ups $60,000
Total $2,310,000 $3,702,000 (62%)
Net Mark Downs -$96,000
Sales -$2,760,000
Ending Inventory $2,310,000 $846,000
So, at 62%, the ending inventory is
= $846,000 × 62%
= $524,520
The buffer in a bad-news message is a
a. statement completely unrelated to the bad news so that receivers will not know that bad news is coming.
b. hint that good news will follow.
c. denial of the requested action.
d. statement that reduces shock or pain and encourages the receiver to continue reading.
Answer:
Option D is correct one.
The buffer in a bad-news message is a statement that reduces shock or pain and encourages the receiver to continue reading
Explanation:
A buffer is often used in a business communication in delivering a bad or negative news. To lessen the impact of the negative news and bring the reader into a positive frame of mind before he or she actually gets to the bad news. Its beneficial to have buffer to lessen the impact.
Bonnie and Clyde each own one-third of a fast-food restaurant, and their 13-year-old daughter owns the other shares. Both parents work full-time in the restaurant, but the daughter works infrequently. Neither Bonnie nor Clyde receives a salary during the year, when the ordinary income of the S corporation is $180,000. An IRS agent estimates that reasonable salaries for Bonnie, Clyde, and the daughter are $30,000, $35,000, and $10,000, respectively. What adjustments would you expect the IRS to impose upon these taxpayers?
Answer:
Net income = $180,000
- salaries = ($30,000 + $35,000 + $10,000 = $75,000)
adjusted net income = $105,000
the adjusted net income must now be divided equally between the 3 partners:
Bonnie: $35,000Clyde: $35,000daughter: $35,000Their yearly gross income:
Bonnie: $35,000 + $30,000 = $65,000Clyde: $35,000 + $35,000 = $70,000daughter: $35,000 + $10,000 = $45,000total taxable income = $65,000 + $70,000 + $45,000 = $180,000
Final answer:
The IRS may adjust Bonnie and Clyde's salaries based on reasonable compensation guidelines, potentially reducing the S corporation's taxable income. They may also face penalties and interest if their salaries are deemed unreasonably low.
Explanation:
The IRS may adjust the taxpayers' salaries based on reasonable compensation guidelines. In this case, Bonnie and Clyde's salaries may be increased to match the estimated reasonable salaries of $30,000 and $35,000 respectively. If their salaries are adjusted, it would reduce the ordinary income of the S corporation, resulting in lower taxable income.
In addition, the IRS may also impose penalties and interest if they determine that the salaries were unreasonably low or not in line with industry standards. This is to prevent taxpayers from manipulating their income by taking a low salary and receiving a larger share of the profits as distributions.
It's important for Bonnie and Clyde to ensure that their salaries are set at a reasonable level to avoid any potential issues with the IRS.
Which of the following is a fixed cost? Multiple Choice A cost that is $28.00 per unit when production is 70,000, and $17.50 per unit when production is 112,000. A cost that is $28.00 per unit when production is 70,000, and $56.00 per unit when production is 112,000.
Answer:
The fixed cost is: A cost that is $28.00 per unit when production is 70,000, and $17.50 per unit when production is 112,000.
Explanation:
A fixed cost is a cost that remains fixed or constant, in total, over any activity level in the short run. Another attribute of the fixed cost is that per unit fixed cost falls as activity level rises. Using this attribute we can say that the cost which is $28 per unit at 70000 units and falls to $17.5 per unit when production increases to 112000 units is the fixed cost.
To support our answer, we can calculate the total cost at both these activity levels:
Total cost = 28 * 70000 = $1960000
Total cost = 17.5 * 112000 = $1960000
Answer:
Choice A cost that is $28.00 per unit when production is 70,000, and $17.50 per unit when production is 112,000
Explanation:
Fixed cost is cost that does not vary with production.
It is the same no matter the level of output.
Examples of fixed cost is rent.
To determine which cost is fixed cost, find the total fixed cost.
For choice A : $28.00 × 70,000 = $1,960,000
$17.50 x 112,000 = $1,960,000
The total cost is the same for each unit of output, therefore, choice a is a fixed cost.
For choice B : $28 × 70,000 = $1,960,000
$56.00 x 112,000 = $6,272,000
The total varies, so one can conclude that choice B contains variable cost.
I hope my answer helps you
Cookie Monster Inc. produces cookies using two inputs, cookie dough and chocolate chips. The firm’s production function is given by Q(D,C) = D^2C, MPD = 2DC, MPC = D^2, where Q denotes the quantity of cookies per day, D the batches of cookie dough per day, and C the cups of chocolate chips per day. Assume that the price of a batch of cookie dough is $2 and the price of a cup of chocolate chips is $1.
a) How much dough and chocolate chips should the firm use to maximize pro- duction if it has a fixed budget of $900 to spend on production?
b) What is the maximum number of cookies it can produce with $900?
2. Cookie Monster Inc. produces cookies using two inputs, cookie dough and chocolate chips. The firm’s production function is given by Q(D,C)=DC, MPD =C, MPC =D, where Q denotes the quantity of cookies per day, D the batches of cookie dough per day, and C the cups of chocolate chips per day. Assume that the price of a batch of cookie dough is $1 and the price of a cup of chocolate chips is $3.
a) How much dough and chocolate chips should the firm use to produce 300 cookies at minimum cost?
b) What is the minimum cost of producing 300 cookies?
Answer:
1.
(a) Number of dough and chocolate chips = 300
(b) Maximum number of cookies = 27000000
2.
(a) Number of dough and chocolate chips = 10
(b) Minimum cost of production = $60
Explanation:
See the attached file for the calculation
The D.J. Masson Corporation needs to raise $400,000 for 1 year to supply working capital to a new store. Masson buys from its suppliers on terms of 3/10, net 75, and it currently pays on the 10th day and takes discounts. However, it could forgo the discounts, pay on the 75th day, and thereby obtain the needed $400,000 in the form of costly trade credit. What is the effective annual interest rate of this trade credit
Answer:
67.44%
Explanation:
The computation of Annualized rate is shown below:-
Annualized rate = (Discount percentage ÷ 100 - Discount percentage) × 365 ÷ (credit period - discount period)
(3% ÷ (100% - 75) × (365 ÷ (75 - 10))
= (3% ÷ 25) × (365 ÷ (75 - 10))
= 12% × 5.62
= 67.44%
Therefore for computing the annualized rate we simply applied the above formula.
The Masson Corporation is using trade credit as a form of financing by foregoing discounts from its suppliers. The effective annual interest rate of this trade credit is approximately 17.0769%, calculated by dividing the 3% discount by the period it covers (65 days), then extrapolating to a full year.
Explanation:The Masson Corporation is considering foregoing the discount of its suppliers to raise money for working capital. By taking this action, they are effectively using trade credit as a form of financing. To calculate the effective annual interest rate of this trade credit, we need to consider the cost of giving up the discount.
The discount offered is 3%, which is forgone if paid on the 75th day, rather than on the 10th day. The discount period is 65 days (75-10), and the trade credit is extended for 310 days (365 - 65).
The interest for the period of the trade credit could be viewed as being the 3% discount that is being given up. Therefore, the interest paid for the period of trade credit (65 days) is 3%. The annual interest rate can then be calculated by dividing the total discount by the discount period, and then extrapolate this figure to cover a year (365 days).
Therefore, the effective annual interest rate is 3/(65/365) = 17.0769%,approximately.
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Ornaments, Inc., is an all-equity firm with a total market value of $542,000 and 20,700 shares of stock outstanding. Management believes the earnings before interest and taxes (EBIT) will be $76,400 if the economy is normal. If there is a recession, EBIT will be 20 percent lower, and if there is a boom, EBIT will be 30 percent higher. The tax rate is 35 percent. What is the EPS in a recession
Answer: $1.92
Explanation:
First we would need to calculate the EBIT in a Recession.
Question says that EBIT in a Recession is 20% lower than normal.
Calculating therefore we have,
= 76,400 * ( 1 - 0.2)
= 76,400 (0.8)
= $61,120
EBIT in a Recession is $61,120.
Now we have to account for taxes assuming no interest payments.
Taxes are 35%.
= 61,120 ( 1 - 0.35)
= $39,728
This is the after tax earnings in a Recession.
Earnings Per Share (EPS) is simply Earnings divided by No. of shares
= $39,728/20,700
= $1.92
The EPS in a recession is $1.92
You are a game designer, what is your job description? Group of answer choices develops and maintains programs and tools designed to provide security to a network integrates and expands the company’s initiatives for mobile users designs games and translates designs into a program or app using an appropriate application development language develops and directs an organization’s mobile strategy, including marketing and app development
Answer:
Designs games and translates designs into a program or app using an appropriate application development language
Explanation:
A game designer is a person that takes care of creating new games. This job involves developing ideas for new games, creating concepts, designing prototypes and the final versions of the game for different platforms and devices. According to this, the answer is that the job description of a game designer is designing games and translating designs into a program or app using an appropriate application development language.
Complexion Care Inc., a U.S.-based skin care firm, was the first in the industry to identify the growth potential of Thailand and made huge investments in its economy. As a result, the firm was able to build brand loyalty and gain experience in that country's business practices. In this situation, Complexion Care Inc. has benefited from a first-mover advantage forward integration. unrelated differentiation. deregulation. privatization.
Answer: First-Mover Advantage
Explanation:
The FIRST MOVER is a SERVICE, PRODUCT or COMPANY that gains a COMPETITIVE ADVANTAGE by getting to a market first.
Advantages of this include being able to establish Strong Brand and Customer Loyalty before competitors come into the market and the opportunity of extra time to perfect marketing and production strategies to fully capitalise on market share.
First movers are usually followed by competitors immediately but more often than not, the first mover has established such a strong market share and a solid enough customer base that it maintains the majority of the market.
Alpha company makes units that each requires 2 pounds of material at $3 per pound. Alpha is planning that 500 and 700 units will be built in May and June, respectively. Alpha keeps material on hand at 20% of the next month's production needs. Use this information to determine: (Round & enter final answers to: the nearest whole dollar for total dollar answers, nearest penny for unit costs or nearest whole number for units) 1. Raw Material Costs for May's Production 2. Total Cost of May's Raw Materials Purchases
Answer:
The correct answer for 1. is $3,000 and for 2. $3,240.
Explanation:
1).
Total cost of raw material for may production = Raw material unit × Required pound × Raw material price per pound
= 500 × 2 pounds × $3 per pound
= $3,000
2).
Particular April May June
Units of Raw Material 500 700
Required Pound 2 2
Need of Raw Material (Units × pounds) 1,000 1,400
Add. Ending Inventory Desired 200 280
Total of Required Raw Material (1,000+280) 1,280
Less- April ending Raw Material 200
Purchase Raw Material ( 1,280 - 200) 1,080
Per Pound Price of Raw Material $3
Total cost of Purchased Raw Material (1080 × 3) $3,240
Note : Ending inventory for April = 1,000 × 20 % = 200
Ending inventory for May = 1,400 × 20% = 280
Briefly explain the nature of a perfectly competitive firm. Briefly discuss the effects of new entrants into a perfectly competitive market on existing firms that have profits in the short run.
Answer:
Explanation:
The nature of perfect competition is that there exist a large number of firms in an industry. However their products are identical from one seller to another, and sellers are referred to as price takers.
Perfect competition refers to a
situation whereby there are many sellers in the firm, and the entering and exiting of the firm is easy and accessible.
In the perfect competitive firm, the firms in the competitive market has no control in changing the supply and demand of the market.
Perfectly competitive firm can be described as price taker, i.e it must accept the equilibrium price at which it sells it's goods.
The effects of new entrants into a perfectly competitive market on existing firms that have profits in the short run will shift the demand curve of each individual downward, this will now makes the price to fall, and also the average revenue and marginal revenue curve. In addition the productivity of firms in the market will be proportional to their optimal level of production.
Answer:
Perfectly competitive firm means that there are many buyers (consumers) and sellers (producers) in the market and none of the companies can control the pricing (they are price takers).
Explanation:
Characteristics of a perfectly competitive firm.
1. Many buyers and sellers
2.No transaction cost
3. As for new entrants into the market, there are no barriers for them to enter the market
4.Products are undifferentiated ( identical )
5. There is perfect information concerning the pricing of the good
Examples of perfectly competitive firms
1. Foreign exchange markets
The currency is undifferentiated, it's identical in all trading platforms.
If you are a trader you have access to many buyers and sellers.
Information about the prices are available and accurate.
Gena Manufacturing Company has a fixed cost of $263,000 for the production of tubes. Estimated sales are 153,800 units. A before tax profit of $126,114 is desired by the controller. If the tubes sell for $24 each, what unit contribution margin is required to attain the profit target
2.530 units contribution margin is required to attain the profit target
Solution:
Given,
Fixed cost = $263,000
Estimated sales are 153,800 units
Tax profit of $126,114
Now,
(Fixed cost + desired profit) ÷ Contribution margin per unit
= Units necessary to earn desired profit ($263,000 + $126,114 ) ÷ ($153,800 - $24)
= $389,114 ÷ $153,776
= 2.530 units
BobCat Inc. has cash of $22,000, accounts receivable of $78,000, inventory of $62,000, prepaid insurance 8,000 and land of $90,000. The company has only one current liability account- salary payable of $64,000, what is working capital
Answer:$106000
Explanation:
Calculation of current assets
Cash 22000
Accounts receivable 78000
Inventory 62000
Prepaid insurance 8000
Total current assets 170000
Given
Current Liabilities = 64000
Working capital = current assets - current liabilities
=170000 - 64000
Working capital of Bob Cat Inc is $106000
Here land is a fixed asset hence cannot be included in working capital. Current assets are the assets which can be liquidated quickly into cash. Current liabilities are the liabilities which will be paid of immediately.
Delivery of stock index futures a. is never made. b. requires delivery of 1 share of each stock in the index. c. is made by a cash settlement based on the index value. d. is made by delivering 100 shares of each stock in the index.e. is made by delivering a value-weighted basket of stocks.
Answer: c. is made by a cash settlement based on the index value
Explanation:
Stock index futures are settled by cash sort of like index options.
This means that there is no delivery of the actual underlying asset at the end of the contract.
The cash / profit is determined by the starting and ending prices of the futures contract.
Lilliput is a country that has closed borders and does not import or export any goods or services; hence, they do not worry about trade with other countries. Total spending for the federal government of Lilliput for the last fiscal year was $ 1.06 billion. The country collected $ 1.05 billion in taxes during this same fiscal year. Assume government transfers were zero. Based on this information, what is Lilliput's budget balance
Answer:
The formula to calculate the Budget Balance is
Government Income - Government Expenditure
in this case
$1.05 billion - $1.06 billion = - 0.01 billion or - $100 million
Explanation:
A budget balance is reached when a government expenditures are equal to it's income.
In this case, since the country's only source of income it is slightly less than than what is required to run the government, it has a budget deficient.
Since the country does not export or trade with outside countries, the government will need to take out a loan to make up for this deficient.
The stockholders’ equity section of Jun Company’s balance sheet as of April 1 follows. On April 2, Jun declares and distributes a 15% stock dividend. The stock’s per share market value on April 2 is $10 (prior to the dividend). Common stock—$5 par value, 465,000 shares authorized, 245,000 shares issued and outstanding $ 1,225,000 Paid-in capital in excess of par value, common stock 580,000 Retained earnings 878,000 Total stockholders' equity $ 2,683,000 Prepare the stockholders’ equity section immediately after the stock dividend.
The new stockholders' equity section of the Jun Company's balance sheet, after declaring and distributing a 15% stock dividend, has a common stock value of $1,408,750, a paid-in capital in excess of par value (common stock) value of $763,750, retained earnings value of $694,250, leading to a total stockholders' equity value of $2,866,750.
Explanation:First, we need to determine the number of shares that the stock dividend will create. A 15% stock dividend on 245,000 shares equals 36,750 new shares (0.15 * 245,000). These shares have a par value of $5, so the total par value of the new shares is $183,750 (36,750 * $5).
Next, we calculate the market value of the new shares. They are worth $10 each, therefore the total market value is $367,500 (36,750 * $10). This value is divided into two parts: par value ($183,750, which we already calculated) and additional paid-in capital ($183,750) which is the market value minus the par value.
So, the new stockholders' equity section would look like this:
Common stock—$5 par value, 465,000 shares authorized, 281,750 shares issued and outstanding: $1,408,750 (Previous Common stock value: $1,225,000 + New Par value: $183,750)Paid-in capital in excess of par value, common stock: $763,750 (Previous: $580,000 + Additional Paid-in Capital: $183,750)Retained earnings: $694,250 (Previous: $878,000 - Market value of stock dividend: $183,750)Total stockholders' equity: $2,866,750Learn more about Stockholders' Equity here:https://brainly.com/question/31982519
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Chubbs Inc.’s manufacturing overhead budget for the first quarter of 2017 contained the following data.
Variable Costs
Fixed Costs
Indirect materials $11,100 Supervisory salaries $36,700
Indirect labor 11,000 Depreciation 6,100
Utilities 7,700 Property taxes and insurance 7,400
Maintenance 5,500 Maintenance 4,900
Actual variable costs were indirect materials $14,800, indirect labor $9,200, utilities $9,300, and maintenance $5,200. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $8,400. The actual activity level equaled the budgeted level.
All costs are considered controllable by the production department manager except for depreciation, and property taxes and insurance.
(a) Prepare a manufacturing overhead flexible budget report for the first quarter. (List variable costs before fixed costs.)
(b) Prepare a responsibility report for the first quarter.
Answer and Explanation:
a. The preparation manufacturing overhead flexible budget report is shown below:-
Manufacturing overhead flexible budget report
Budget Actual Favorable (unfavorable)
Variable costs
Indirect materials $11,100 $14,800 $3,700 U
Indirect labor $11,000 $9,200 $1,800 F
Utilities $7,700 $9,300 $1,600 U
Maintenance $5,500 $5,200 $300 F
Total variable cost $35,300 $38,500 $3,200 U
Fixed expense
Supervisory salaries $36,700 $36,700 0
Depreciation $6,100 $6,100 0
Property ,taxes $7,400 $8,400 $1,000 U
Maintenance $4,900 $4,900 0
total fixed expense $55,100 $56,100 $1,000 U
total controllable cost $90,400 $94,600 $4200 U
b. The preparation of Manufacturing overhead Responsibility report is shown below:-
Controllable costs Budget Actual Favorable(unfavorable)
Indirect materials $11,100 $14,800 $3,700 U
Indirect labor $11,000 $9,200 $1,800 F
Utilities $7,700 $9,300 $1,600 U
Maintenance $10,400 $10,100 $300 F
Supervisory salaries $36,700 $36,700 0
Total $76,900 $80,100 $3200 U
The following information relates to the Magna Company for the upcoming year, based on 402,000 units. Amount Per Unit Sales $ 8,844,000 $ 22.00 Cost of goods sold 5,628,000 14.00 Gross margin 3,216,000 8.00 Operating expenses 422,100 1.05 Operating profits $ 2,793,900 $ 6.95 The cost of goods sold includes $1,320,000 of fixed manufacturing overhead; the operating expenses include $112,000 of fixed marketing expenses. A special order offering to buy 62,000 units for $13.80 per unit has been made to Magna. Fortunately, there will be no additional operating expenses associated with the order and Magna has sufficient capacity to handle the order. How much will operating profits be increased if Magna accepts the special order
Answer:
$143,356
Explanation:
The computation of the increased in the operating income if the special order is accepted is
Sales (62,000 units × $13.80) $855,600
Less: cost of goods sold -$664,418
($5,628,000 - $1,320,000) ÷ 402,000 units × 62,000 units
Less: Operating expenses -$47,826
($422,100 - $112,000) ÷ 402,000 units × 62,000 units
Operating income $143,356
We simply deduct the operating expenses and the cost of goods sold from the sales revenue so that the increase in operating income could come
5. Taxpayer ("T"), a cash basis individual taxpayer, lent money to each of his two daughters ("D1" and "D2") on January 1 of the current yer. T lent $50,000 to D1 and $110,000 to D2. T did not charge any interest on the loans. D1 was 19 years old and used the $50,000 to open a brokerage account which invested in stocks. D1 had $300 of net investment income during the year. D 2 was 26 years old and used the loan to renovate her personal house. D2 had no investment income during the year. The applicable federal rate "AFR" is a 5% annual rate. The loans were outstanding for the entire year. What amount of income, if any, will T include on T’s individual income tax return as a result of the loan to
Answer:
Explanation:
Taxpayer T, a cash basis individual taxpayer, loaned cash to his 2 little girls D1, $ 50,000 dollars which he used to open an investment fund and put resources into stocks. D2 $ 110,000 utilized the advance to redesign her own home. He did not charge any enthusiasm on Loan.
As per IRS, if an individual offers advance to his family, he ought to satisfy the accompanying.
1)The credit ought to be legitimate and enforceable i.e it ought to be recorded as a hard copy.
2) He should charge an enthusiasm for that advance. Else it is a considered blessing.
Since T, did not satisfied both the previously mentioned, the credit given by him to both the girls is an esteemed blessing.
As per IRS, an individual can give an endowment of $ 15,000 for every Persons in a specific year. He can give ito any number of people. Be that as it may, on the off chance that you give more than $ 15,000 in real money or advantages for an individual in a year he have to record a blessing government form i.e, IRS Form 709.
On the off chance that he did not charged any enthusiasm on the credit , that sum is likewise a regarded blessing and blessing expense form should be documented if the all out endowments per individual surpasses $15000.
Some other Gift charge rules are:
You don't need to stress over family credits being liable to blessing charge rules if:
You loan a kid $10,000 or less, and the kid doesn't utilize the cash for ventures, for example, stocks or bonds.
You loan a youngster $100,000 or less, and the kid's net venture pay isn't more than $1,000 for the year.
Investigation:
T has given a credit of $ 50,000 to D1 which is more than $ 10,000 and is put resources into Shares. Subsequently it is considered blessing and he have to record a blessing assessment form
T has given a credit of $ 110,000 to D2 which is more than $ 100,000 and henceforth is considered blessing and need to record a blessing government form
Intrigue isn't charged on credits by T , so it is additionally a considered pay
Given Applicable Federal Rate is 5%
on D1 credit $50,000 *5% = 2500
on D2 credit $ 110,000 *5% = 5500
All out considered blessing to D1 = $ 50,000 + $ 2500 = $52,500
All out considered blessing to D2 = $110,000 + $ 5500 =$ 115,500
Thus, the advances given to D1 and D2 does exclude from T's individual annual Tax return. It is regarded blessing and he have to document blessing assessment form under structure 709 where he should make reference to all the subtleties of presents for every individual
Blessing Tax return doesn't implies he owes Gift Tax. There is $11.58 million of life time Gift charge exclusion. On the off chance that you surpass $ 11.58 million, at that point just you have to cover blessing charge. For wedded the exception of $ 11.58 each for the two mates.
Philadelphia Acoustics builds innovative speakers for music and home theater systems. Identify each cost as variable (V), fixed (F), or mixed (M), relative to number of speakers produced and sold 1. Units of production depreciation on routers used to cut wood enclosures. 2. Wood for speaker enclosures. 3. Patents on crossover relays. 4. Total compensation to salesperson who receives a salary plus a commission based on meeting sales goals 5. Crossover relays . 6. Straight-line depreciation on manufacturing plant . 7. Grill cloth. 8. Cell phone costs of salesperson 9. Glue 10. Quality inspector's salary
The costs associated with Philadelphia Acoustics' production and sales operation can be classified into variable, fixed, and mixed categories based on their dependence on the quantity of speakers produced and sold.
Explanation:According to their relation to the number of speakers produced and sold, the costs for Philadelphia Acoustics can be categorized as follows:
Units of production depreciation on routers used to cut wood enclosures - This is considered a variable cost (V) because it changes with the level of output.Wood for speaker enclosures - This is also a variable cost (V) as the more speakers manufactured, the more wood is required.Patents on crossover relays represents a fixed cost (F) because it does not change with units produced.Total compensation to salesperson who receives a salary plus a commission based on meeting sales goals - This is a mixed cost (M) as it involves a fixed element (salary) and variable factor (commission).Crossover relays - These costs are variable (V) because they shift according to production.Straight-line depreciation on manufacturing plant - This is a fixed cost (F) because it does not change regardless of the manufacturing quantities.Grill cloth - This is a variable cost (V) because it changes along with production.Cell phone costs of salesperson - This can be seen as mixed cost (M) since it contains fixed (basic rates) and variable costs (additional charges).Glue - This is considered a variable cost (V) because it varies with the quantity of products.Quality inspector's salary - This is a fixed cost (F) because it remains the same, irrespective of the output.Learn more about Cost Classification here:https://brainly.com/question/33447487
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In summary, the costs are classified as follows: 1. V, 2. V, 3. F, 4. M, 5. V, 6. F, 7. V, 8. F, 9. V, 10. F.
The costs identified relative to the number of speakers produced and sold are as follows:
1. Units of production depreciation on routers used to cut wood enclosures: Variable (V)
- This cost varies with the number of units produced because depreciation is allocated based on the usage of the router.
2. Wood for speaker enclosures: Variable (V)
- The amount of wood used directly correlates with the number of speaker enclosures produced.
3. Patents on crossover relays: Fixed (F)
- Patent costs are generally fixed over a certain period and do not change with the number of units produced.
4. Total compensation to salesperson who receives a salary plus a commission based on meeting sales goals: Mixed (M)
- The salary portion is fixed, while the commission is variable, depending on sales volume.
5. Crossover relays: Variable (V)
- The cost of crossover relays will vary with the number of speakers produced as each speaker will require these components.
6. Straight-line depreciation on manufacturing plant: Fixed (F)
- Depreciation on the manufacturing plant is a fixed cost that does not change with the production volume of speakers.
7. Grill cloth: Variable (V)
- The grill cloth is used in each speaker, so the cost varies with the number of speakers produced.
8. Cell phone costs of salesperson: Fixed (F)
- The cell phone cost for the salesperson is typically a fixed expense, as it is not directly tied to the number of units sold.
9. Glue: Variable (V)
- The amount of glue used will vary with the number of speakers produced, as it is a direct material cost.
10. Quality inspector's salary: Fixed (F)
- The salary of the quality inspector is a fixed cost, as it does not change with the production volume.
In summary, the costs are classified as follows: 1. V, 2. V, 3. F, 4. M, 5. V, 6. F, 7. V, 8. F, 9. V, 10. F.
Mykha's company makes jewelry from doll shoes. She increases production but finds that her costs continue to rise while profits decrease. What letter on the graph represents Mykha's situation?
A
B
C
D
Answer:
D
Explanation:
Point D is the letter on the graph represents Mykha's situation. As costs continue to rise while profits decrease.
What is cost-push inflation?Cost-push When production costs rise and the overall supply of products and services declines, inflation has taken place. For instance, it's feasible that the owner of a firm will simply shut down the operation if low-paid workers at the facility organize a union and demand higher salaries.
Thus, option D is correct.
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The manager of the student center cafeteria is introducing pizza as a menu item. The pizza is ordered frozen from a local pizza establishment and baked at the cafeteria. She anticipates a weekly demand of 10 pizzas. The cafeteria is open 45 weeks per year. The ordering cost is $15 and the holding cost is $0.40 per pizza per year. What is the optimal number of pizzas she should order
Answer:
From the information given, the number of pizzas is 450 pizzas.
Explanation:
If the cafeteria is open 45 wks a year and they anticipate 10 pizzas per week, then they need 450 pizzas.
[tex]45*10[/tex]