Answer:
The answer is : $970,000
Explanation:
To calculate this, we have to calculate the amounts collected from the month of sale(November) and the amount receivable from the other months and add them together. This is shown below as follows:
From October sales ($1000000): 50% is collected in the following month(October)
∴ 50% of 1,000,000 = 0.5 × 1,000,000 = $500,000
From November sales (940,000): 50% receivable in the month of sale
= 50% of 940,000 = $470,000
Therefore Accounts receivable at the end of November
= 470,000 + 500,000 = $970,000
The slope of an isocost line ________ and equals the negative of ________. Select one: a. is constant; the ratio of the marginal products b. decreases as we move down the line; the ratio of the marginal products c. is constant; the ratio of input prices d. increases as we move down the line; the ratio of input prices
Final answer:
The slope of an isocost line is constant and equals the negative of the ratio of input prices. This slope does not change as we move down the line, highlighting that the expenditure on inputs remains constant.
Explanation:
The slope of an isocost line is constant and equals the negative of the ratio of input prices. An isocost line represents all combinations of inputs that a firm can purchase for a given total cost. As the price of one input increases, the isocost line becomes flatter, indicating a shift towards a more intensive use of the other, relatively cheaper input. Notably, isocost lines do not change slope as we move along them because they represent constant expenditure levels; therefore, the slope remains the same regardless of the quantities of inputs.
Cost minimization requires the tangency between an isoquant and an isocost line, signifying that the input price ratio must equal the marginal rate of technical substitution (MRTS), which is the amount of one input required to replace a decrease in another input while holding output constant. This also implies that the marginal rate of technical substitution (the slope of the isoquant) must equal the negative of the ratio of input prices (the slope of the isocost line) at the point of tangency for efficient production.
Three critical factors have combined to accelerate the ecological crisis facing the world community and to make sustainable development more difficult. Explain and discuss these three factors.
Answer:
1-population explosion
2- world poverty and income inequality
3- rapid growth of many development nations
Explanation:
This is an issue that must be analyzed according to a historical context in the world.
The industrial revolution was a milestone in the world with regard to the population explosion, this was due to technological innovations that occurred after the industrial revolution, as there were different labor relations, difference in the way of man producing and greater availability of food.
From then on, the rural exodus begins, with people migrating from the countryside to urban areas, in order to obtain greater job opportunities.
The industrial revolution has revolutionized the world until today, since then a capitalist context has emerged, where there is the enrichment of entrepreneurs and the insertion of large companies in developing countries and consequently the increase in income inequality and poverty.
So these are the three factors that integrated were combined to accelerate the ecological crisis of the global community and hinder sustainable development, because in the eagerness of industrial development and income generation, combined with the population's desire for production, sustainable development was a factor that could mean a barrier to production and rampant consumerism.
During 2020, Kate Holmes Co.'s first year of operations, the company reports pretax financial income at $250,000. Holmes's enacted tax rate is 45% for 2020 and 20% for all later years. Holmes expects to have taxable income in each of the next 5 years.The effects on future tax returns of temporary differences existing at December 31, 2020, are summarized:Future Years 2021 2022 2023 2024 Future taxable- (deductible)amounts:Installment Sales 32,000 ### 32,000 Depreciation 6,000 ### 6,000 6,000 Unearned Rent (50,000) ###Compute Taxable Income for 2020.
Final answer:
Kate Holmes Co.'s taxable income for 2020 is $250,000, the same as the reported pretax financial income, since the future taxable or deductible amounts from installment sales, depreciation, and unearned rent do not affect the current year's taxable income. The income tax expense for the year is calculated at a tax rate of 45%, which equates to $112,500.
Explanation:
To compute taxable income for Kate Holmes Co. for the year 2020, we need to consider the pretax financial income and apply the current tax rate as well as account for any temporary differences that will affect future tax liabilities. The pretax financial income reported by the company is $250,000. The enacted tax rate for 2020 is 45%.
However, there are temporary differences to consider, which consist of future taxable or deductible amounts arising from installment sales, depreciation, and unearned rent. For calculating the current year's taxable income, we look at the temporary differences that will reverse in the current year:
Future taxable amounts from installment sales would add to the taxable income in the future years and not affect the taxable income for 2020.Similarly, additional depreciation expenses would reduce taxable income in future years, but for 2020, we only consider the currently enacted tax rate and reported pretax financial income.Unearned rent represents income received but not earned in 2020, meaning it will be taxable when it is earned in future years.Therefore, the taxable income for Kate Holmes Co. in 2020 is the reported pretax financial income of $250,000, since none of the temporary differences listed will reduce or increase the taxable income for 2020.
The income tax expense at the enacted tax rate of 45% on the taxable income of $250,000 would be:
Income Tax Expense = Taxable income × Tax rate
Income Tax Expense = $250,000 × 0.45
Income Tax Expense = $112,500
This expense would be reported on the company's income statement for 2020.
The following information relates to the operations of Cruz Manufacturing during the current year: Raw materials used $ 20,000 Direct labor wages 60,000 Sales salaries and commissions 50,000 Depreciation on production equipment 4,000 Rent on manufacturing facilities 30,000 Packaging and shipping supplies 6,000 Sales revenue 190,000 Units produced and sold 10,000 Selling price per unit $ 20.00 Based on this information, what is the company's cost of goods sold?
Answer:
the company's cost of goods sold is $120,000
Explanation:
Note : all units produced are sold (10,000)
Therefore Cost of goods sold is equal to Cost of Goods Manufactured
Calculation of Cost of Goods Manufactured
Raw materials used 20,000
Direct labor wages 60,000
Depreciation on production equipment 4,000
Rent on manufacturing facilities 30,000
Packaging and shipping supplies 6,000
Total 120,000
Answer: $114,000
Explanation:
To calculate the Cost of Goods sold we would first needs to know Product Costing in Manufacturing firms.
The formula for which is,
Product Costing = (Materials cost + Labor costs + Overhead costs) ÷ Number of units produced
It is important to calculate this because when multiplied by the number of units SOLD, you get Cost of goods sold.
Calculating therefore would be,
Product Costing = 20,000 + 60,000 + (4,000 + 30,000) depreciation and rent on manufacturing facilities ÷ 10,000 units produced
= $11.40 per unit
Now we can calculate the Cost of goods sold by,
Cost of goods sold = Number of units sold × Product Costing in Manufacturing Companies
Cost of goods sold = 10,000 units sold × 11.40
= $114,000
The company's cost of goods sold is $114,000.
The exchange rate at the beginning of a year between the Indian Rupee (R) and the U.S. dollar is R43.125/$. The annual inflation rates in India and in the United States are 19 percent and 3 percent respectively. What would be the new exchange rate at the end of the year? R37.327/$ R0.0267/$ R49.8224/$ $37.327/R
Answer:
The correct answer is R49.8224/$.
Explanation:
According to the scenario, the computation of the given data are as follows:
Exchange rate at beginning = R43.125/$
Inflation rate in India = 19%
Inflation rate in U.S. = 3 %
So, we can calculate the New exchange rate by using following formula:
New exchange rate = Beginning exchange rate × (Inflation A ÷ Inflation B)
= R 43.125 × (1.19 ÷ 1.03)
= R 49.8224/$
Judy, looks after Kaelyn's four-year-old twins so Kaelyn can go to work (she drops off and picks up the twins from Judy's home every day). Since Judy is a relative, Kaelyn made sure, for tax purposes, to pay her mother the going rate for child care ($6,360 for the year). What is the amount of Kaelyn's child and dependent care credit if her AGI for the year was $36,60
Answer:
$1,440
Explanation:
Judy is not a dependent relative of Kaelyn, therefore the expenditures are qualified up to $6,000 (for two qualifying persons).
Thus the applicable percentage is 24%.
($6,000×24%)
=$1,440 allowable credit
Therefore the amount of Kaelyn's child and dependent care credit if her AGI for the year was $36,600 will be $1,440
Data pertaining to a company's joint production for the current period follows: L M Quantities produced 200 lbs. 150 lbs. Market value at split-off point $ 8 /lb. $ 16 /lb. Compute the cost to be allocated to Product M for this period's $660 of joint costs if the value basis is used. Multiple Choice $264. $396. $330. $1,364. $796.
Answer:
Joint cost value based = $396
Explanation:
Given:
Company L M
Quantities produced 200 lbs 150 lbs
Market value $8/lb $16/lb
Total joint cost = $660
Computation:
Market value of L = 200 lbs × $8/lbs
Market value of L = $1,600
Market value of M = 150 lbs × $16/lbs
Market value of M = $2,400
Total market value = Market value of L + Market value of M
Total market value = $1,600 + $2,400
Total market value = $4,000
Joint cost value based = $660 × ($2,400 / $4,000)
Joint cost value based = $396
Which of the following would, generally, indicate an improvement in a company's financial position, holding other things constant? a. The EBITDA coverage ratio increases. b. The current and quick ratios both decline. c. The total assets turnover decreases. d. The TIE declines. e. The DSO increases.
Answer:
The correct answer is letter "A": The EBITDA coverage ratio increases.
Explanation:
The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) ratio is an accounting indicator that measures the profitability of a company. It is calculated by subtracting the costs of goods sold and administrative expenses from the firm's income. The EBITDA is typically used to value the capacity for generating benefits of an entity considering only its productive activity because it indicates the returns obtained from the direct exploitation of the business.
Therefore, if the EBITDA of a firm increases it is because its financial position has possibly increased.
Final answer:
An increase in the EBITDA coverage ratio typically suggests an improvement in a company's financial position by indicating better earnings relative to its operating costs. Other options such as declining liquidity ratios, asset turnover, and ability to cover interest expenses generally signify financial weakness.
Explanation:
Among the given options, an increase in the EBITDA coverage ratio would generally indicate an improvement in a company's financial position, holding other things constant. This ratio measures a company's ability to pay off its operating expenses, not including taxes, interest, depreciation, and amortization with its operating profit. A higher EBITDA coverage ratio suggests the company is generating sufficient earnings to cover its operating costs, which is a positive sign of financial health. Option A
In contrast, declining current and quick ratios imply weakening short-term liquidity, a decrease in total assets turnover indicates less efficiency in using assets to generate revenue, a decline in the TIE (times interest earned) suggests a decrease in the ability to cover interest expenses, and an increase in the DSO (days sales outstanding) implies slower collection of receivables, potentially affecting cash flow.
Exercise 24-3 Payback period computation; straight-line depreciation LO P1 A machine can be purchased for $140,000 and used for five years, yielding the following net incomes. In projecting net incomes, straight-line depreciation is applied, using a five-year life and a zero salvage value. Year 1 Year 2 Year 3 Year 4 Year 5 Net income $ 9,500 $ 23,500 $ 64,000 $ 35,500 $ 94,000
Answer:
Year 1 Year 2 Year 3 Year 4 Year 5 Net income $ 9,500 $ 23,500 $ 64,000 $ 35,500 $ 94,000
Explanation:
look p1 a machine
Several years ago, Westmont Corporation developed a comprehensive budgeting system for planning and control purposes. While departmental supervisors have been happy with the system, the factory manager has expressed considerable dissatisfaction with the information being generated by the system. A report for the company's Assembly Department for the month of March follows: Assembly Department Cost Report For the Month Ended March 31 Actual Results Planning Budget Variances Machine-hours 25,000 30,000 Variable costs: Supplies $ 7,800 $ 8,400 $ 600 F Scrap 25,200 27,000 1,800 F Indirect materials 75,800 88,500 12,700 F Fixed costs: Wages and salaries 71,500 68,000 3,500 U Equipment depreciation 98,000 98,000 – Total cost $ 278,300 $ 289,900 $ 11,600 F After receiving a copy of this cost report, the supervisor of the Assembly Department stated, "These reports are super. It makes me feel really good to see how well things are going in my department. I can’t understand why those people upstairs complain so much about the reports." For the last several years, the company’s marketing department has chronically failed to meet the sales goals expressed in the company’s monthly budgets.
Answer:
Explanation:
Solution:
1.
These reports seems not be the correct tool to calculate the performance. These reports compared to the main performance against the budgeted / planned sales level and budget or standard are not adjusted for under achievement of sales. If sales are less then variable cost should also be incurred less and its not wise to compare the main cost for lower sale volumes against budgeted expenses against higher sales revenue.
2.
The budget figure or benchmark figures for the variable expenses should be adjusted for actual level of revenue and then actual expenses incurred should be compared and variance should be calculated
3.
Revised performance report: Planning Adjusted Actual Budget budget result Variance Machine hours 40000 35000 Variable cost: 32000 28000 29700 1700 (A) Supplies scrap 20000 17500 19500 2000 (A) Indirect
balance sheet showed total assets of $60 million, total liabilities (including preferred stock) of $45 million, and 1,000,000 shares of common stock outstanding. Next year, Flintstone is projecting that it will have net income of $1.5 million. If the average P/E multiple in Flintstone's industry is 15, what should be the price of Flintstone's stock
Answer:
The price per share should be $22.5
Explanation:
The price earnings multiple or P/E tells us how much price the investors are willing to pay for $1 earnings of the company.
We first need to calculate the earnings per share of the company.
Earnings per share = Net Income / Number of outstanding common shares
Earnings per share = 1500000 / 1000000 = $1.5 per share
Using the P/E for the industry, the price per share of Flintstone should be,
P/E = Price per share / Earnings per share
15 = Price per share / 1.5
15 * 1.5 = Price per share
Price per Share = $22.5
Answer:
$22.5
Explanation:
Price earning ratio determines the ratio of price of a share by the earning per share . It measures the times value which a investor pays for each $1 earning of the shares.
Earning per share = Net income / Outstanding number of shares
Earning per share = $1,500,000 / 1,000,000 = $1.5 per share
As we have the PE ratio and Earning per share, we have to calculate the Market price of the stock using following formula
Price Earning Ratio = Market Price of Stock / Earning Per share
15 = Market Price / $1.5
Market Price = 15 x $1.5 = $22.50
Lopez Company has a single employee, who earns a salary of $192,000 per year. That employee is paid on the 15th and last day of each month. On January 15, Lopez is subject to the following payroll taxes: FICA–Social Security Taxes (at 6.2% of the first $118,500 each employee earns in the calendar year), FICA–Medicare Taxes (at 1.45%), FUTA (at 0.6% of the first $7,000 each employee earns in the calendar year), and SUTA (at 5.4% of the first $7,000 each employee earns in the calendar year). The journal entry to record the employer's payroll tax expense and related liabilities would include a debit to:
The employer's payroll tax expense on January 15th would include the monthly allocation of the annual FICA-Social Security Tax, the single month's FICA-Medicare Tax, and the single month's FUTA and SUTA taxes.
Explanation:The employee's annual salary at Lopez Company is $192,000, which means the monthly salary is $192,000/12 = $16,000. Given that Social Security tax applies to the first $118,500 of an employee's annual earnings, the Social Security tax for this employee would be $118,500 * 6.2% = $7,347 for the year, or $612.25 per month. The Medicare tax rate is applied to all earnings, so it is $16,000 * 1.45% = $232 per month. In terms of FUTA and SUTA, both taxes only apply to the first $7,000 of an employee's annual earnings, so the employer's liability for these taxes will be entirely covered in the first month of the year at rates of 0.6% (FUTA) and 5.4% (SUTA). Therefore, on January 15th, the employer's payroll tax expense would incur a debit to Payroll Tax Expense of the sum of all these monthly taxes.
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Assume that Andretti Company has sufficient capacity to produce 120,150 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 35% above the present 89,000 units each year if it were willing to increase the fixed selling expenses by $140,000. What is the financial advantage (disadvantage) of investing an additional $140,000 in fixed selling expenses?
To find the profit-maximizing quantity for Doggies Paradise Inc., we calculate and graph total revenue, total cost, marginal revenue, and marginal cost, then identify the output level where marginal revenue equals marginal cost.
Explanation:The question addresses the concept of profit maximization in the context of a perfectly competitive firm, Doggies Paradise Inc., in the field of business economics. To determine the profit-maximizing quantity, we need to analyze the total revenue, total cost, and marginal costs associated with different levels of output. To achieve this, we create a table with columns for output level, total revenue, marginal revenue, total cost, and marginal cost, and then plot these relationships on a graph to visually identify the point where marginal cost equals marginal revenue, which indicates the profit-maximizing level of output.
Using the provided information, we can calculate that for each unit sold at $72, the marginal revenue will be $72 as well since the price remains the same for each additional unit sold in perfect competition. Total revenue is simply the price multiplied by the quantity sold. The marginal cost for each unit is the difference in total variable cost for each additional unit produced. The total cost at each level of output is calculated by adding the fixed costs to the total variable costs. Once calculated, we can then sketch the total revenue and total cost curves, as well as the marginal revenue and marginal cost curves, to visually analyze the profit-maximizing quantity.
The movie theater in your neighborhood charges lower ticket prices to senior citizens than to other patrons. Assuming that this pricing strategy increases the profits of the movie theater, we can conclude that senior citizens must have ________ for movie tickets than other patrons. greater demand lower demand more elastic demand less elastic demand
Answer:
More elastic
Explanation:
Demand is elastic if a small change in price has a greater effect on the quantity demanded.
Demand is inelastic if a small change in price has little or no effect on quantity demanded.
The senior citizens have an elastic demand because when price was reduced, the profits earned by the theatre increased. This means the Quanitity demanded of movie tickets increased.
If demand were inelastic and prices were reduced, profits would fall.
I hope my answer helps you
CT Stores has debt with a book value of $325,000 and a market value of $319,000. The firm's equity has a book value of $526,000 and a market value of $684,000. The tax rate is 21 percent and the cost of capital is 11.2 percent. What is the market value of this firm based on MM Proposition I without taxes
Answer:
$1,003,000
Explanation:
Market Value of firm=Market value of equity+ market value of debt
=684,000+319,000
=$1,003,000
In order to package one of their products, Acme Box Co. needs to construct a box whose bottom side has length 3 times its width. The material used to build the top and bottom of the box cost $10 per square foot, while the material used to build the four sides of the box cost $6 per square foot. The box must have a volume of 50 cubic feet. (a) In terms of the length ` of the bottom, the width w of the bottom and the height h of the box (all measured in feet), write a formula for the cost C (in dollars) to construct a box of length `, width w and height h. (b) Given the other conditions specified in the problem, express C as a function of a single variable. (c) Determine the dimensions of the box that minimize the cost. Be sure to justify that you have found dimensions that produce the minimum cost. (You’ll be fired if you submit the maximum cost to your boss!) To the nearest dollar, how much will it cost to build the box at these dimensions?
Answer:
(a)Total Cost, C=20LW+12LH+12WH
(b)[tex]C(W)=\dfrac{60W^3+800}{W}[/tex]
(c)W=1.88ft, L=5.64 ft and H=4.72 ft.
[tex]Minimum \:cost, C\approx \$638 $ (to the nearest dollar)$[/tex]
Explanation:
Given the dimensions of the box to be L,W and H.
(a)
The material for the top and bottom of the box cost $10 per square footThe material used to build the four sides of the box cost $6 per square foot.Area of Top and Bottom=2LWCost of Top and bottom=$10 X 2LW=20LWArea of four Sides =2(LH+WH)Cost of Four Sides =$6*2(LH+WH)=12(LH+WH)Total Cost, C=20LW+12LH+12WH(b)The bottom side has length 3 times its width.
L=3W
Volume of the box=50 cubic feet.
[tex]Volume,V=LWH=3W^2H[/tex]
[tex]3W^2H=50\\H=\dfrac{50}{3W^2}[/tex]
Substituting L=3W and [tex]H=\dfrac{50}{3W^2}[/tex] into the cost function C.
C=20LW+12LH+12WH
[tex]C=20LW+12LH+12WH\\=20*3W*W+12*3W*\dfrac{50}{3W^2}+12W*\dfrac{50}{3W^2}\\=60W^2+\dfrac{600}{W}+\dfrac{200}{W}\\=\dfrac{60W^3+600+200}{W}\\C(W)=\dfrac{60W^3+800}{W}[/tex]
(c)The minimum cost occurs at the point where the derivative of the cost function equals zero.
[tex]If\:C(W)=\dfrac{60W^3+800}{W}\\C'(W)=\dfrac{120W^3-800}{W^2}=0\\120W^3-800=0\\120W^3=800\\W^3=\frac{800}{120}\\ W=1.88[/tex]
Recall:
[tex]L=3W=5.64 feet\\H=\dfrac{50}{3W^2}=\dfrac{50}{3(1.88)^2}=4.72 ft[/tex]
The dimensions of the box that minimize the cost are W=1.88ft, L=5.64 ft and H=4.72 ft.
Cost of the box at these dimension
[tex]C(W)=\dfrac{60W^3+800}{W}\\C(1.88)=\dfrac{60(1.88)^3+800}{1.88}\approx \$638 $ (to the nearest dollar)$[/tex]
To the nearest dollar, it will cost approximately $388 to build the box with dimensions that minimize the cost.
Let's break down the problem step by step:
a) The cost C (in dollars) to construct the box can be expressed as a formula based on the dimensions of the box.
Let's denote:
- Length of the bottom = L (measured in feet)
- Width of the bottom = W (measured in feet)
- Height of the box = H (measured in feet)
The area of the top and bottom of the box is L * W, and the area of the four sides is 2 * (L + W) * H.
The total cost C can then be expressed as:
[tex]\[ C = 2 * (L * W * 10) + 2 * (L + W) * H * 6 \][/tex]
b) Expressing C as a function of a single variable involves using the given volume constraint. Since the volume V of the box is 50 cubic feet, we have:
[tex]\[ V = L * W * H = 50 \]\[ H = \frac{50}{L * W} \][/tex]
Substitute the expression for H into the cost formula:
[tex]\[ C(L, W) = 2 * (L * W * 10) + 2 * (L + W) * \frac{50}{L * W} * 6 \][/tex]
Simplify to get the cost as a function of a single variable.
c) To minimize the cost, we can take the derivative of C(L, W) with respect to one of the variables (L or W), set it equal to zero, and solve for the critical point.
Let's differentiate C(L, W) with respect to L:
[tex]\[ \frac{dC}{dL} = 20W - \frac{600}{W^2} \][/tex]
Setting the derivative equal to zero:
[tex]\[ 20W - \frac{600}{W^2} = 0 \][/tex]
Solving for W:
[tex]\[ 20W = \frac{600}{W^2} \]\[ W^3 = 30 \]\[ W = \sqrt[3]{30} \approx 3.11 \text{ feet} \][/tex]
Similarly, differentiate C(L, W) with respect to W and solve for L:
[tex]\[ \frac{dC}{dW} = 20L - \frac{600}{L^2} \]\[ 20L - \frac{600}{L^2} = 0 \]\[ L^3 = 30 \]\[ L = \sqrt[3]{30} \approx 3.11 \text{ feet} \][/tex]
So, the dimensions that minimize the cost are approximately L = W = 3.11 feet. To find the minimum cost, substitute these values into the cost formula:
[tex]\[ C(L, W) = 2 * (3.11 * 3.11 * 10) + 2 * (3.11 + 3.11) * \frac{50}{3.11 * 3.11} * 6 \]\[ C(L, W) = 192.20 + 196.23 \]\[ C(L, W) \approx 388.43 \text{ dollars} \][/tex]
Therefore, to the nearest dollar, it will cost approximately $388 to build the box with dimensions that minimize the cost.
Divine Apparel has 2,200 shares of common stock outstanding. On October 1, the company declares a $0.50 per share dividend to stockholders of record on October 15. The dividend is paid on October 31.
Required:
a. Record all transactions on the appropriate dates for cash dividends.
Answer:
October 1
Dr Dividends 1,100
Cr Dividends payable 1,100
October 15
No journal entry required 0
No journal entry required 0
October 31
Dr Dividends payable 1,100
Cr Cash 1,100
Explanation:
Divine Apparel
General Journal
October 1
Dr Dividends 1,100
Cr Dividends payable 1,100
October 15
No journal entry required 0
No journal entry required 0
October 31
Dr Dividends payable 1,100
Cr Cash 1,100
Dividends: 2,200 shares × $0.50 = $1,100
Dividends Payable: 2,200 shares × $0.50 = $1,100
Horton Industries’ shareholders’ equity included 100 million shares of $1 par common stock and a balance in paid-in capital—excess of par of $900 million. Assuming that Horton retires shares it reacquires (restores their status to that of authorized but unissued shares), by what amount will Horton’s total paid-in capital decline if it reacquires 2 million shares at $8.50 per share?
Answer:
The common stock would decline by $2 million
The paid in capital in excess of par would decline by $15 million
The share capital would decline by $17 million
Explanation:
The balance in common stock would decline by the par value of the 2 million shares reacquired in the year,that is 2 million*$1=$2,000,000
However balance in the paid-in share capital in excess of par would decline by $7.5 for each of the 2 million shares reacquired i.e 2 million *$7.5=$15,000,000
However the total reduction in share capital of Horton Industries is the sum of the reduction in common stock of $2 million and the reduction in paid-in capital in excess of par of $15 million i,e $17 million
Final answer:
The decline in Horton Industries' total paid-in capital after reacquiring 2 million shares at $8.50 per share would be $15 million, calculated by the excess of the repurchase price over the par value multiplied by the number of shares reacquired.
Explanation:
The subject matter in question refers to Horton Industries’ shareholders’ equity and its decrease as a result of the company reacquiring its own shares. Calculating the decline in total paid-in capital involves considering the number of shares repurchased and the price paid for each share.
Horton Industries plans to reacquire 2 million shares at $8.50 per share. The shares have a par value of $1, meaning that each share has $7.50 ($8.50 - $1 par value) attributed to paid-in capital—excess of par. Multiplying this excess by the number of shares gives us the total decline in paid-in capital, which is $15 million (2 million shares x $7.50).
Therefore, when Horton reacquires the 2 million shares at $8.50 per share, the total paid-in capital will decline by $15 million.
On March 1, 2021, Beldon Corporation purchased land as a factory site for $60,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2021. Costs incurred during this period are listed below: Demolition of old building $ 4,000 Architect’s fees (for new building) 12,000 Legal fees for title investigation of land 2,000 Property taxes on land (for period beginning March 1, 2021) 3,000 Construction costs 500,000 Interest on construction loan 5,000 Salvaged materials resulting from the demolition of the old building were sold for $2,000. Required: Determine the amounts that Beldon should capitalize as the cost of the land and the new building.
Answer:
The amount that Beldon should capitalize as the cost of the land is $64,000 and as the cost of the new building is $517,000.
Explanation:
Capitalized cost of land
Purchase price $60,000
Demolition of old building $4,000
Less: Sale of materials $2,000 $2,000
Legal fees for title investigation $2,000
Total cost of land $64,000
Capitalized cost of building :
Construction costs $500,000
Architect's fees $12,000
Interest on construction loan $5,000
Total cost of building $517,000
Therefore, The amount that Beldon should capitalize as the cost of the land is $64,000 and as the cost of the new building is $517,000.
The costs capitalized for the land and new building by Beldon Corporation are $67,000 and $517,000, respectively.
Explanation:Beldon Corporation can capitalize the costs related to the purchase and preparation of land and the construction of the new building. The cost of the land includes the purchase price of $60,000, demolition costs for the existing building ($4,000), legal fees for title investigation ($2,000), and property taxes from the purchase date March 1, 2021 ($3,000). However, the $2000 from the sale of salvaged materials should be deducted from the land cost resulting in a final capitalized land cost of $67,000.
The capitalized cost of the new building includes the construction costs of $500,000, architect's fees ($12,000), and interests on the construction loan ($5,000). This results in a total capitalized building cost of $517,000.
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On January 1 you deposit 100000 On March 1, the balance is 102000 and you withdraw 50000. On May 1 the balance is 52500 and you deposit 50000. At the end of the year the balance is 111000. Find the time weighted and dollar weighted yields
Answer:
Dollar weighted yield 21.09%
Time weighted yield 11.52%
Explanation:
Dollar weigthed:
Date Capital Weight Subtotal
Jan 1st 100,000 1 100,000
March 1st -50,000 0.83 -41,666.66667
May 1st 50,000 0.67 33,333.33333
Dec 31th 91,666.66667
Average capital: 91,666.67
Return: 111,000
Rate: 111.000 / 91.667 - 1 = 0,21090
Time weighted:
102,000 / 100,000 -1 = 0.02 from Jan 1st to March 1st
Then 52,500 / 52,000 -1 = 0,0096 From March 1st to May 1st
Finally 111,000 / 102,500 -1 = 0.082926 From May 1st to Dec 31th
weighted Return:
1.02 x 1.0096 x 1.082926 - 1 = 0,115189 = 0.1152 = 11.52%
Bailey Company has $200,000 of accounts receivable on December 31. The unadjusted balance of its Allowance for Doubtful Accounts is a debit of $9,000. An aging of its accounts receivable suggests that $12,000 of its receivables will be uncollectible. The amount that should be debited to Bad Debt Expense and credited to Allowance for Doubtful Accounts in the year-end adjusting entry is
a. $3,000
b. $21,000
c. $9,000
d. $14,000
e. $23,000
Answer:
b. $21,000
Explanation:
When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
Where a debit that had previously been determined to have gone bad gets settled, debit cash and credit bad debt expense.
The amount that should be debited to Bad Debt Expense and credited to Allowance for Doubtful Accounts in the year-end adjusting entry is the sum of the debit balance in the Allowance for Doubtful Accounts and the amount suggested by the aging of receivables.
= $9,000 + $12,000
= $21,000
Final answer:
The correct amount to be debited to Bad Debt Expense and credited to Allowance for Doubtful Accounts for the year-end adjusting entry is $21,000. This amount corrects the previous debit balance and accounts for the current period's estimated uncollectible receivables.
Explanation:
To calculate the rightful amount to be debited to Bad Debt Expense and credited to Allowance for Doubtful Accounts, we first need to address the existing debit balance of $9,000 in the allowance account. This unusual debit balance suggests that previously, the amount of bad debts that occurred were greater than what was anticipated and provided for. Therefore, it is necessary to eliminate this debit balance and also set up the appropriate allowance for the current period's anticipated uncollectable receivables, which is estimated to be $12,000. Therefore, the adjusting entry must first remove the existing $9,000 debit balance in the Allowance for Doubtful Accounts and then add the additional $12,000 that is expected to be uncollectable, resulting in a total entry to Bad Debt Expense of $21,000 ($9,000 to cancel out the debit balance + $12,000 for current period estimation). The journal entry would look like this:
Debit Bad Debt Expense: $21,000Credit Allowance for Doubtful Accounts: $21,000This action will leave the correct credit balance in the Allowance for Doubtful Accounts and accurately reflect anticipated uncollectable accounts receivable.
The following information is available for Robstown Corporation for 20Y8:
Inventories January 1 December 31
Materials $77,600 $93,600
Work in process 109,000 96,700
Finished goods 112,000 109,900
December 31
Advertising expense $ 69,000
Depreciation expense-office equipment 23,000
Depreciation expense-factory equipment 14,000
Direct labor 186,700
Heat, light, and power-factory 5,900
Indirect labor 24,860
Materials purchased 123,200
Office salaries expense 75,800
Property taxes-factory 4,005
Property taxes-office building 12,600
Rent expense-factory 6,375
Sales 862,000
Sales salaries expense 135,000
Supplies-factory 3,500
Miscellaneous costs-factory 4,620
Prepare the 20Y8 statement of cost of goods manufactured.
Answer:
Cost Of Goods Manufactured 363560
Explanation:
Robstown Corporation
Statement of Cost of Goods Manufactured.
For the year 20Y8:
Inventories January 1 Materials $77,600
Add Materials purchased 123,200
Less December 31 Materials $93,600
Materials Used $ 107,200
Direct labor 186,700
Factory Overhead 57360
Indirect labor 24,860
Heat, light, and power-factory 5,900
Depreciation expense-factory equipment 14,000
Rent expense-factory 6,375
Property taxes-factory 4,005
Supplies-factory 3,500
Miscellaneous costs-factory 4,620
Total Manufacturing Costs $ 351260
Add Work in process Beginning 109,000
Cost Of Goods Available for Manufacture 460260
Less Work in process Ending 96,700
Cost Of Goods Manufactured 363560
We add the Direct Material used Direct Labor And FOH to get the total manufacturing costs.
When we add the given figures according to the format of the Cost of Goods manufactured Statement we get the cost of goods manufactured.
The cost of goods sold statement is shown to show the difference between the cost of goods manufactured and cost of goods sold statement.
Robstown Corporation
Statement of Cost of Goods Sold.
For the year 20Y8:
Cost Of Goods Manufactured 363560
Finished goods Beginning 112,000
Cost Of Goods Available for Sale 475560
Finished goods Ending 109,900
Cost Of Goods Sold 365, 660
The income statement is given to show the difference between FOH items and Selling expenses.
Robstown Corporation
Income Statement .
For the year 20Y8:
Sales 862,000
Cost Of Goods Sold 365, 660
Gross Profit 496,340
Advertising expense $ 69,000
Depreciation expense-office equipment 23,000
Office salaries expense 75,800
Property taxes-office building 12,600
Sales salaries expense 135,000
Net Income $ 180940
Final answer:
To prepare the statement of cost of goods manufactured, we calculate the total manufacturing costs, add the beginning work in process inventory, and subtract the ending work in process inventory to arrive at the cost of goods manufactured for Robstown Corporation for 20Y8, which is $368,460.
Explanation:
The calculation of the statement of cost of goods manufactured for Robstown Corporation for the year 20Y8 includes the total manufacturing costs incurred during the year plus the beginning work in process inventory and subtracting the ending work in process inventory. The total manufacturing costs for Robstown Corporation would include direct materials used, direct labor, and factory overhead. Direct materials used is calculated by adding materials purchased to the beginning inventory of materials and then subtracting the ending inventory of materials. Factory overhead includes all the other costs listed that are related to the production process but not directly tied to the production workers or the materials they use.
Statement of Cost of Goods Manufactured for Robstown Corporation
Direct Materials:Beginning Inventory: $77,600+ Materials Purchased: $123,200– Ending Inventory: $93,600= Direct Materials Used: $107,200Direct Labor: $186,700Factory Overhead:Depreciation Expense-Factory Equipment: $14,000Heat, Light, and Power-Factory: $5,900Indirect Labor: $24,860Property Taxes-Factory: $4,005Rent Expense-Factory: $6,375Supplies-Factory: $3,500Miscellaneous Costs-Factory: $4,620= Total Factory Overhead: $63,260Total Manufacturing Costs: $356,160 (Direct Materials + Direct Labor + Factory Overhead)+ Beginning Work in Process Inventory: $109,000– Ending Work in Process Inventory: $96,700= Cost of Goods Manufactured: $368,460Kohlman Company began its operations on March 31 of the current year. Projected purchases for the first three months of business are $156,800, $195,200, and $217,600, respectively, for April, May, and June. Admin expenses represent $28,800 of the estimated monthly payments. Seventy-five percent (75%) of the purchases are expected to be paid in the month in which they are purchased. Twenty percent (20%) will be paid in the following month. Five percent (5%) is expected to be uncollectable. The cash payments for the month of April and May are:
a. $185,600 and 224,000
b. $117,600 and 146,600
c. $146,400 and 206,560.
d. $156,800 and 195,000
Answer:
c. $146,400 and 206,560.
Explanation:
Monthly Purchases are as follows;
April =$156,800
May= $195,200
June= $217,600
Since Admin expenses are paid every month,
April =$28,800
May = $28,800
June =$28,800
75% of April purchases will be paid in April . Use these to calculate the payments;
Pmts
April = 75%* $156,800 = $117,600
add Admin expenses to find total cash payments;
APRIL = $117,600+ $28,800 = $146,400
In May,20% of April purchases will be paid , 75% of May purchases will also be paid plus admin expenses. Use these to calculate the payments;
May= (20%* $156,800) + (75% * $195,200) + $28,800
MAY = 31360 +146400 +28800 = $206,560
The quantity (in pounds) of a gourmet ground coffee that is sold by a coffee company at a price of p dollars per pound is Q = f(p). (a) What is the meaning of the derivative f '(5)? The rate of change of the price per pound with respect to the quantity of coffee sold. The supply of coffee needed to be sold to charge $5 per pound. The rate of change of the quantity of coffee sold with respect to the price per pound when the price is $5 per pound. The rate of change of the price per pound with respect to the quantity of coffee sold when the price is $5 per pound. The price of the coffee as a function of the supply. What are the units of f '(5)? dollars dollars/pound pounds/(dollars/pound) pounds dollars/(pound/pound) pounds/dollar
(a) When the price is $5 per pound, the derivative f '(5) shows the rate of change in the quantity of coffee sold in relation to the price per pound.
In other words, it explains how, when the price is $5 per pound, the amount of coffee sold will alter in reaction to a little change in price.
If f '(5) is positive, then a rise in price will result in a greater sale of coffee; if it is negative, then an increase in price will result in a smaller sale of coffee.
(b) Pounds/(dollars/pound) are the units of f '(5). By dissecting the units, it can be seen that f'(5) indicates the change in quantity (in pounds) divided by the change in price (in dollars per pound).
The units are therefore pounds divided by (dollars per pound), which can be written as pounds/(dollars/pound).
Thus, this unit indicates the change in the amount of coffee sold in response to a change in the price per pound of one unit, which is precisely what the derivative measures.
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Consider that you own the following position at the beginning of the year: 200 shares of US Bancorp at $29.89 per share, 300 shares of Micron Technology at $13.31 per share, and 250 shares of Hilton Hotels at $24.11 per share. During the year, US Bancorp and Hilton Hotels both paid a dividend of $1.39 and $0.16, respectively. At the end of the year, the stock prices of US Bancorp, Micron, and Hilton Hotels were $36.19, $13.12, and $34.90, respectively. What are the dollar and percentage return of the stocks and the return of the portfolio
Answer:
Dollar return of US Bancorp = $7.69
Explanation:
A Dollar return of US Bancorp = $36.19 - $29.89 + $1.39 = $7.69
Total Dollar return of US Bancorp = $7.69 * 200 = $1,538
Percentage return of US Bancorp percentage return = ($7.69/$29.89) * 100 = 25.72%
B Dollar loss of Hilton Hotels = $13.12 - $13.31 = - $0.19
Total Dollar loss of Hilton Hotels = - $0.19 * 300 = - $57.00
Percentage loss of Hilton Hotels = (-$0.19/$13.31) * 100 = 1.43%
C Dollar return of Hilton Hotels = $34.90 - $24.11 + $0.16 = $10.95
Total Dollar return of Hilton Hotels = $10.95 * 250 = $2,737.50
Percentage return of Hilton Hotels = ($10.95/$24.11) * 100 = 45.42%
Elsa participates in an investigation into possible violations of the Civil Rights Act of 1964 at Fabrication Foundry, Inc., where she works. As a result, Elsa’s employer demotes her. Elsa can file a a. harassment complaint. b. retaliation claim. c. constructive discharge claim. d. disparate-impact discrimination clai
Answer:
The correct answer is letter "D": disparate-impact discrimination claim.
Explanation:
A disparate-impact discrimination claim is one filed because there is a presumed act of unintentional discrimination at work. This could be the result of requesting employees with certain abilities which disfavors a sector of the workforce of the firm. The company has to prove the feature requested for the job position is necessary for the regular development of the activities if such position.
"In the economy of OKC in 2008, consumption was $3000, GDP was $5500, government purchases were $1000, imports were $2000, and investment was $1000. What were OKC’s exports in 2008?"
Answer:
Expert will be equal to $2500
Explanation:
We have given consumption = $3000
GDP is given $5500
Government purchase = $1000
Import = $2000
There is an investment of $1000
We have to find the export
We know that GDP is given by
GDP = consumption + investment + government purchase + export- import
5500 = 3000+1000+1000+export - 1000
Export = $2500
So expert will be equal to $2500
Tina's Apple Company would like to manufacture and market a new packaging. Tina's has sold an issue of commercial paper for $1,500,000 and maturity of 90 days to finance the new project. Compute the annual interest rate on the issue of commercial paper if the value of the commercial paper at maturity is $1,650,000 (assuming 360 days in a year).
Answer:
40%
Explanation:
Tina's Apple Company would like to manufacture and market a new packaging. Tina's has sold an issue of commercial paper for $1,500,000 and maturity of 90 days to finance the new project. Compute the annual interest rate on the issue of commercial paper if the value of the commercial paper at maturity is $1,650,000 (assuming 360 days in a year).
Interest paid = $1,650,000 - 1,500,000
= $150,000
Annual interest rate = ($150,000/$1,500,000) (360/90)
= 40%
You were hired by a small business as the project manager of a project involving a market analysis. This project will determine whether the company goes ahead with the large scale manufacturing of a brand new product. The activities of the project are described below, with their respective durations:
ID Description Duration (2 weeks) Predecessor
A Survey designed 2 None
B Pilot 1 A
C Data collection 3 A
D Data Processing 1 B, C
E Analyze survey Results 2 D
F Analyze market trends 3 D
G Demographics 2 E
H Report and Presentation 2 F, G
Draw a project network with this information.
Answer:
Explanation:
check the attached files
In economics, what is the meaning of the phrase 'the tragedy of the commons?' Goods that are not rivalrous but are excludable are under‐produced by private markets, often with consequences that reduce social welfare. People will overuse or misuse a common resource that is not excludable but is rivalrous. It serves the common good to produce items that are neither rivalrous nor excludable, but profit‑maximizing firms will not produce such products. In market economies products are often similar and common, so the government must actively attempt to create variety in goods and services. In decisions involving intellectual property rights, policy-makers must compromise in order to reach common ground among competing interest groups.
Answer:
People will overuse or misuse a common resource that is not excludable but is rivalrous.
Explanation:
The tragedy of the commons occurs when due to lack of regulation, either self-imposed, or imposed by a central authority, leads to the excessive use of a common good, that does not exclude users from its enjoyment, but that is rivalrous: the use of one user prevents the use of another user, and can lead to depletion.
A classical example of the tragedy of the commons is what happens with global maritime fish stocks. The global stock of fish is virtually non-excludable as long as a person or firm has the means necessary to exploit it: a ship, a net, workers, and so on.
Howerver, the global stock of fish can be depleted, as is the case in some areas of the world. This depletion prevents current and future users from catching and consuming fish.
The Tragedy of the Commons refers to the overuse or depletion of a common resource due to individuals acting in their own interest rather than the common good. However, the situation can be managed better when beneficiaries are in immediate proximity to the resource. This issue is particularly challenging at international levels where beneficiaries are scattered.
Explanation:The Tragedy of the Commons is an economic theory that describes the situation in which individuals deplete a shared resource by acting in their own best interest, contrary to the common good, leading to resource depletion. This theory is primarily associated with common goods, which are not excludable but may be finite, like forests, water, and fisheries. This is because no one owns them, no one directly bears the cost of depletion, resulting in overuse and misuse of the resources.
It is worth mentioning the work of Elinor Ostrom, the first woman to receive the Nobel Prize in Economics, who provided an alternative viewpoint to this theory. According to Ostrom, when beneficiaries of a resource are in its immediate vicinity, they are more likely to manage the resource effectively without external influence. They can develop communication and cooperation mechanisms that prevent depletion of the resource.
However, in international systems, where beneficiaries are often scattered across different territories, it's more challenging to manage these resources. The international system has difficulties in convincing individual members to take responsibility for solving collective problems, which, in turn, exacerbates the Tragedy of the Commons.
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