Answer: All of the Above
Explanation:
The Clayton Act of 1914 was passed to curb unfair business practices as well as to protect the rights of labour.
Some practices that were prohibited when they led to less competition include,
- A firm acquiring a major percentage of the stocks of a competing firm because this could signify an amalgamation of efforts on the part of both firms and they could therefore have some control over Pricing.
-A director from one business sitting on the board of a competing firm because this could lead to cooperating or Corperate espionage.
- A buyer is forced to buy multiple products from a producer in order to get a desired product is expressly forbidden.
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
If Negan Corp. common stock is valued at $40 per share, dividends are paid quarterly and expected to grow quarterly by 1.2% forever, and the next dividend is due in 3 months and expected to be $3, then what is the expected annual return on Negan Corp. stock?
Answer:
= 33.37%
Explanation:
The computation of expected annual return is given below:-
Price of common stock today = Dividend next year ÷ (Required rate of return - Growth rate)
= $42 = $3 ÷ (required rate of return - 1.2%)
= (required rate of return -1.2%) = 0.071429
= (required rate of return - 1.2%) = 7.1429%
Required rate of return = 8.3429%
Expected of Annual Return = Required rate of return × Quarterly
= 8.3429% × 4
= 33.3716%
or
= 33.37%
So, for computing the expected of annual return we simply multiply the required rate of return with quarterly.
In a general partnership: no partner can be held legally responsible for decisions since the partnership itself is a legal entity. each partner is held responsible for an agreement/decision made by any one of the partners. partners can be held responsible only for decisions they make personally. no decision is binding unless all partners agree to it in writing.
Answer:
Each partner is held responsible for an agreement/decision made by any one of the partner.
Explanation:
Partnership can be defined as a business agreement between two or more individuals. This individuals share ownership of the business and as such are responsible for managing the activities of the company. The profit gotten from the company are shared among the business partners.
General partnership is a form of partnership in which all the partners involved contribute significantly to the daily activities of the organization.
General partnership is very easy to establish and it does not require any form of taxes on profits generated from the business.
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
Auditing standards don't specifically discuss the audit procedures that should be applied to a client's pension-related financial statement amounts. Identify five audit procedures that would be relevant to those items. For each audit procedure that you list, identify the related audit objective.
Answer:
Explanation:
(a). Audit Procedure (b) . Audit Objective
1.a Take note of trading/order paperwork with the pension (b). Existence of investment/accounts.
2a. Movement of funds within accounts. (b. Examine plan document for investment objectives
3a.make sure that investments agree with plan objectives and allowed risk level (b. Take note of current investment holdings
4a. Make sure that funds are held at updated market fair value(mark to market) (b. Take note of contracts, meeting minutes etc. Confirm that purchases/sales have been approved and falls into plan polices
5a. Extra examination of any significant plan holdings (b. Verify existence and appropriate value . This is important if the plan invest in non-public assets , example is assets are private, equity.
Auditing pension-related financial statement amounts involves a variety of procedures including reviewing actuarial assumptions, verifying plan assets, analyzing contributions and payments, examining regulatory compliance, and assessing disclosures to ensure accuracy, valuation, completeness, existence, compliance, and appropriate presentation and disclosure.
Audit standards may not specify procedures for every situation, including those involving pension-related financial statement amounts. However, auditors can apply various procedures tailored to addressing those items effectively. Below are five audit procedures relevant to pension-related amounts, along with their related audit objectives.
Review of Actuarial Assumptions and Calculations: Evaluate the appropriateness of assumptions used in pension calculations, such as discount rates, expected return on plan assets, and demographic factors. Objective: Accuracy and valuation.Verification of Plan Assets: Inspect the plan's investment to confirm existence and determine whether the valuation complies with relevant standards. Objective: Existence and valuation.Analysis of Plan Contributions and Payments: Examine transaction records for contributions to and payments from the pension plan to ensure they are correctly recorded and authorised. Objective: Completeness and occurrence.Examination of Regulatory Compliance: Assess compliance with laws and regulations governing pension plans. Objective: Compliance.Assessment of Disclosures: Review the financial statement disclosures related to the pension plan for completeness and accuracy. Objective: Presentation and disclosure.Each of these procedures addresses a different aspect of auditing pension-related amounts, ensuring a thorough assessment of the pension plan's financial presentation.
A company reports basic earnings per share of $5.10, cash dividends per share of $2.05, and a market price per share of $65.55. The company's dividend yield equals:
Answer:
3.13%
Explanation:
The dividend yield refers to the payment by a company to its shareholders for their shareholding divided by current stock price of the company. This is usually expressed as a percentage and can be calculated for this question as follows:
Dividend yield = Dividends per share (DPS) ÷ Market price per share (MPS) = $2.05 ÷ $65.55 = 0.0313, or 3.13%.
Answer:
The company's dividend yield equals: 3.13%
Explanation:
Let's recall the formula of the dividend yield:
Dividend yield = Annual dividend/Current stock price
Replacing with the values provided, we have:
Dividend yield = 2.05/65.55
Dividend yield = 0.0313
Dividend yield = 3.13%
Interpretation:
Dividend yield is a way to compare the level of attractiveness of any dividend-paying stock. It shows an investor the yield he/she can expect on an annual basis by purchasing a stock.
Free Corporation had the following transactions occur in the current year: 1. Cash sale of merchandise inventory. 2. Sale of delivery truck at book value. 3. Sale of Xanthe common stock for cash. 4. Issuance of a note payable to a bank for cash. 5. Sale of a security held as an available-for-sale investment. 6. Collection of loan receivable.
Answer:
The requirement was to determine of the listed items would feature under investing activities in cash flows Statement
The correct option is A,3
Explanation:
Sales of truck at book value is a cash inflow under the investing activities the same way purchase of truck would a cash outflow under investing activities.
The sale of security held a an available-for-sale investment is an investing activities inflow same way purchase of such investment would be an investing activities outflow.
Collection of loan receivable is also an investing activities inflow,the loan would have been treated as an outflow when it was made initially.
The following inventory information was taken from the records of Kleinfeld Inc.: Historical cost $12,000 Replacement cost $7,000 Expected selling Price $9,000 Expected selling cost $500 Normal profit margin 50% of price Assume that subsequent to your adjustment the expected selling price increases to $13,000 (all the rest of the facts are the same). What adjustment to inventory should be made under IAS 2 after this event? Question 37 options: Inventory should be increased (debited) by $3,500. Inventory should be increased (debited) by $4,000. No adjustment should be made to inventory once it is written down. Inventory should be increased (debited) by $1,000.
Answer:
Inventory should be increased (debited) by $3,500.
Explanation:
According to the IAS 2, the inventory value should be lower of historical cost or net realizable value
The historical cost is $12,000
And, the net realizable value is
= $9,000 - $500
= $8,500
Since as we can see the lower value is $8,500 but due to increase in realizable value, the historical cost would remain the same i.e $12,000
So the inventory should be increased or debited by $3,500 i.e
= $12,000 - $8,500
= $3,500
Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $ 1 comma 000, and a coupon rate of 7.7 % (annual payments). The yield to maturity on this bond when it was issued was 5.7 %. What was the price of this bond when it was issued?
Answer:
The correct answer is $1,149.32.
Explanation:
According to the scenario, the computation of the given data are as follows:
Face value FV = $1,000
Coupon rate = 7.7%
So, Payment = 7.7% × $1,000 = $77
YTM (rate ) = 5.7%
Time period = 10 years
So, we can calculate the present value by using financial calculator:
The attachment is attached.
So, PV = $1,149.32
McGregor argues that ___ is self-fulfilling. If management expects little from its workers, little is what they’ll get.
Theory X
Theory Y
Theory A
Theory B
McGregor argues that theory Y is self fulfilling. If management expects little from its workers, little is what they will get.
Explanation:
The Theory Y states that most of the people wants to work and they are self sirected and motivated , creative in undergoing their individual goals. These people use their full potential to make decisions. This theory is mainly applied to small business owners, and independent professionals.
The managers are often self fulfilling. These employees take full responsibility for their work and to create a quality product. They perform the task and wait for the managers approval. The work is efficient and productive based on company standards.
Company H345's cost formula for its wages and salaries is $2,280 per month plus $348 per birth. For the month of August, the company planned for activity of 118 births, but the actual level of activity was 116 births. The actual wages and salaries for the month was $44,120. The wages and salaries in the planning budget for August would be closest to:
Answer:
The wages and salaries in the planning budget for August would be closest to: $46,824
Explanation:
The planning Budget is Based on the Actual level of Activity for this question,This is known as flexing the budget.
Calculation of Planning budget for August based on 116 births
Wages and Salaries = $2,280 + $348×116 births
= $46,824
How would you define the geographic and product markets of large healthcare organizations such as the Mayo Clinic, Cleveland Clinic, Kaiser Permanente, and Johns Hopkins? What are the barriers that keep new competitors from entering those markets? (Showalter, 20170222, p. 496) Showalter, S. (20170222). The Law of Healthcare Administration, Eighth Edition, 8th Edition [VitalSource Bookshelf version]. Retrieved from vbk://9781567938791 Always check citation for accuracy before use.
Geographic markets for products are limited to a greater or lesser extent by the cost of transporting the product and legal barriers, such as those imposed by entry regulation that may prohibit trade among jurisdictions. Transportation costs of shipment between two areas may create a differential in prices in the two areas.
Explanation
The health costs in these organisations are also too high which can only be borne by the elite class, thereby giving them a position of monopoly power in the healthcare market.One must define first the market for the product of interest and second, the geographic market in which trade in the product occurs.
For both product and geographic market definitions, two types of substitutability are relevant:
Demand substitutability
Supply substitutability
Demand substitutability depends upon the extent to which consumers of the good or service are able to switch to substitutes for that good or service in response to a price increase.
In contrast, supply substitutability depends upon the extent to which existing providers could expand output, and/or firms not currently producing the good or service could enter the market for that good or service. In specific applications, the product market is defined first.
Then, given a definition of product, the geographic area over which commerce in the product takes place is examined.
When the cost of transportation is high relative to cost of production, geographic markets tend to be small; the converse holds true when relative transportation cost is low.
Choosing which percent rule to apply depends on the comparative risks of under- or overstating the size of the market.
Barriers for new competitors are:
Price: A successful company with a large market share may be able to charge prices substantially higher than what customers would be willing to pay if they had more options. If a competitor tries to enter the market, the established company can often afford to lower its own prices below what the competitor can match.
Contractual: Some barriers to entry may be illegal and may violate antitrust regulation. A new competitor entering the same market could find it difficult or impossible to get its products into any stores and negotiation with existing distributors for prices.
Location: Companies with the ability to operate in any part of the world can create a barrier to competition by locating manufacturing facilities in places with much lower labor costs or regulatory requirements.
Regulatory: Regulations are intended to serve the public good by promoting better safety and environmental standards or promoting competition.
The geographic market of large healthcare organizations refers to their operational regions, while the product market includes the range of healthcare services they offer. Barriers to entry for new competitors include high start-up costs, regulatory requirements, and established reputations.
Explanation:The geographic market of large healthcare organizations like the Mayo Clinic, Cleveland Clinic, Kaiser Permanente, and Johns Hopkins can be defined as the region or area in which these organizations operate and provide healthcare services. These organizations usually have a national or even international presence, serving patients from different parts of the country or even around the world.
The product market of these healthcare organizations refers to the range of healthcare services and products they offer. This can include medical treatments, surgeries, diagnostic services, preventive care, specialized clinics, and research initiatives.
Barriers that keep new competitors from entering these markets include:
High start-up costs and capital requirements: Establishing large healthcare organizations requires significant financial investments in infrastructure, technology, equipment, and skilled personnel.Regulatory requirements and compliance: Healthcare organizations need to comply with various regulations and licensing requirements imposed by government agencies at local, state, and national levels.Established reputation and brand recognition: Large healthcare organizations like Mayo Clinic, Cleveland Clinic, Kaiser Permanente, and Johns Hopkins have built strong reputations and brand recognition over the years, making it difficult for new competitors to gain trust and attract patients.Learn more about Barriers to Entry here:https://brainly.com/question/35090304
#SPJ3
Plan B: Produce at a constant rate of 1 comma 300 units per month, which will meet minimum demands. Then use subcontracting, with additional units at a premium price of $80 per unit. Subcontracting capacity is limited to 900 units per month. Evaluate this plan by computing the costs for January through August.
Answer:
The complete question has been attached for proper cross reference
Subcontracting costs amounts to $210,000 for the 8 months
Volumes subcontracted are
Mar 400
Apr 509
May 700
Jun 700
July 400
Aug 100
Total 2,800
Inventory holding cost is $4,000. Only inventory in hand was 200 units in January
Explanation:
Kindly refer to the attached document for a complete presentation of results
The welding department supplies parts to the final assembly line. Management decides to implement a kanban system and has collected the following data: • The daily demand is 2000 units. • The production lead time is 4 days (this includes processing time, transport time, and waiting time). • Management has decided to have 1 day of safety stock. • One container fits 400 units. How many kanban containers will be needed to support this system?
Answer:
25 containers
Explanation:
The computation of the number of kanban containers required is shown below:
= (Lead time demand + Safety stock) ÷ Container size
where,
Lead time demand is
= 2,000 units × 4 days
= 8,000 units
Container size = 400 units
Safety Stock is
= 1 day × 2,000 units
= 2,000 units
So, the number of kanban containers required is
= (8,000 units + 2,000 units) ÷ (400 units)
= 25 containers
We simply applied the above formula
Haberdashery Company has a beginning Work-in-Process Inventory of 37,000 units (40% complete). During the period, 122,000 units were started and the ending Work-in-Process Inventory consisted of 32,000 units (80% complete). What are the equivalent units for conversion costs using weighted-average process costing
Answer:
152,600 units
Explanation:
Weighted average costing adds the value of beginning inventory in the period cost to calculate the average cost per unit.
According to this method the equivalent units formula is as follow
Equivalent Units = Unit completed and transferred to Finished goods + Units in Work in Process x Completion percentage
Units Completed in the period = 37,000 + 122,000 - 32,000 = 127,000
Equivalent Units = 127,000 + (32,000 x 80%) = 152,600 units
What is Free Cash Flow to the Firm (FCFF) primarily used for?
Estimating cash flow available to the firm's finance org.
Estimating cash flow available to shareholders only.
Estimating cash flow available to invest in firm-specific projects.
Estimating cash flow available to creditors and shareholders.
Answer: Estimating cash flow available to creditors and shareholders.
Explanation: Free cash flow to the firm (FCFF) is the cash available to shareholders and bondholders (creditors to the bond issuer) after depreciation expenses, taxes, working capital, and investments are accounted for and paid. It is a measurement of a company's profitability after all expenses and reinvestments and thus is useful in comparing and analyzing a company's financial health. Positive free cash flow to firm value indicates that the company has cash remaining after expenses while a negative value indicates that the firm has not generated enough revenue to cover its costs and investment activities.
On December 31, 2020, Dow Steel Corporation had 670,000 shares of common stock and 37,000 shares of 7%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $470,000 and $76,000 to common and preferred shareholders, respectively, on December 15, 2021.
On February 28, 2021, Dow sold 51,000 common shares. In keeping with its long-term share repurchase plan, 4,000 shares were retired on July 1. Dow's net income for the year ended December 31, 2021, was $2,450,000. The income tax rate is 25%.
Required:
Compute Dow's earnings per share for the year ended December 31, 2021. (Do not round intermediate calculations. Enter your answers in thousands. Round "Earnings per share" answer to 2 decimal places.)
Answer:
Earnings per share is $3.21
Explanation:
The calculation of weighted average number of shares to be used in EPS computation is provided thus:
Initial shares 670,000*1.04*12/12 696,800.00
share issued in February 51,000*1.04*10/12 44,200.00
shares repurchased 4000*6/12 (2,000.00)
Weighted average number of shares 739,000.00
earnings attributable to common stock=net income-preferred shares dividends
net income is $2,450,000
preferred shares dividends is $76,000
earnings attributable to common stock=$2,450,000-$76,000
=$2,374,000.00
Earnings per share =earnings attributable to common stock/Weighted average number of shares
Earnings per share=$2,374,000.00/739,000.00
=$3.21
Dow's earnings per share (EPS) for the year ended December 31, 2021 is $3.44. This was determined by first calculating the weighted average number of shares outstanding throughout the year (including new issues and those retired), adjusting for the stock dividend, and then dividing the company's net income (minus dividends paid to preferred shareholders) by this adjusted count.
Explanation:To calculate Dow's earnings per share (EPS), we first need to compute the weighted average number of shares outstanding for the year. Starting with 670,000 shares, Dow issued 51,000 new shares on February 28th which are thus in circulation for about 10 months (or 10/12 of the year), and retired 4,000 shares on July 1st that are out for about 6 months (or 6/12 of the year).
The weighted average number of outstanding shares is therefore: 670,000+(51,000*10/12)-(4,000*6/12)=717,500.
Now, we also need to account for the 4% common stock dividend issued on May 15. Because a stock dividend does not change the overall value of the company, the number of actual shares increases but the EPS is calculated as if no such dividend was issued.
Thus, our adjusted weighted number of average shares is: 717,500/1.04=689,904.
The net income of the company was $2,450,000, but we need to subtract the dividends paid to the preferred shareholders: $2,450,000 - $76,000 = $2,374,000.
Finally, we can calculate the EPS: $2,374,000 / 689,904 = $3.44 (rounded to two decimals).
Learn more about Earnings per Share here:https://brainly.com/question/32586753
#SPJ3
During 2013, Company A has the following transactions involving its common and preferred stock:
Issued 20,000 shares of $8 par common stock for $26 a share; brings total shares outstanding to 50,000 shares
Issued 6,000 shares of $100 par, 6%, cumulative preferred stock for $150 per share
When market value of the common stock reached $15 a share, Company A declared a 3-for-1 stock split, reducing the par value to $188 per share
The following is required:
Prepare a journal entry for each transaction.
Answer:
Explanation:
Issued 20,000 shares of $8 par common stock for $26 a share; brings total shares outstanding to 50,000 shares
Bank A/c………Dr. 520000
To Share Capital A/c. 160000
To Paid in excess of par 360000
Issued 6,000 shares of $100 par, 6%, cumulative preferred stock for $150 per share
Bank A/c………Dr. 900000
To Preferred Stock A/c. 600000
To Paid in excess of par. 300000
When the market value of the common stock reached $15 a share, company A declared a 3-for-1 stock split reducing the par value to $188 per share.
Share Capital (par value at 8) 400000
To Share Capital (par value at 2.67)
400000
As of December 31, 2021, Warner Corporation reported the following:
Cash dividends payable $20,000
Treasury stock 600,000
Paid-in capital—share repurchase 20,000
Common stock and other paid-in capital accounts 4,000,000
Retained earnings 3,000,000
What was shareholders' equity as of December 31, 2021?
Answer:
$6,240,000
Explanation:
Stockholders Equity Includes the Add-in-capital par value, Add-in-capital excess value of Common and Preferred, Net income accumulated value and dividends.
Stockholders' equity
Common Stock and Paid-in-capital common $4,000,000
Retained Earning $3,000,000
Treasury Stock ($600,000)
Paid-in capital—share repurchase $20,000
Total stockholders' equity $6,420,000
Treasury stock is the repurchased stock, which is a contra equity account. It need to be deducted from the equity
Final answer:
Shareholders' equity for Warner Corporation as of December 31, 2021, was calculated by adding common stock and other paid-in capital accounts to retained earnings and then subtracting treasury stock and cash dividends payable, resulting in total equity of $6,380,000.
Explanation:
To calculate the shareholders' equity of Warner Corporation as of December 31, 2021, we need to sum up the common stock, additional paid-in capital, and retained earnings, and then subtract any treasury stock and dividends payable. Cash dividends payable and treasury stock are subtracted because they represent obligations of the company and are not part of equity. Paid-in capital related to share repurchases would typically already be included in the treasury stock figure and would also not be part of equity.
Here is the calculation:
Common stock and other paid-in capital accounts: $4,000,000Retained earnings: $3,000,000Treasury stock: -$600,000Cash dividends payable: -$20,000Shareholders' Equity = (Common stock and other paid-in capital accounts) + (Retained earnings) - (Treasury stock) - (Cash dividends payable).
Shareholders' Equity = $4,000,000 + $3,000,000 - $600,000 - $20,000 = $6,380,000.
Thus, the shareholders' equity for Warner Corporation as of December 31, 2021, was $6,380,000.
Many people have argued that an income tax should be "marriage neutral," that is, two people should pay the same total tax whether they are married or they are single. Suppose Amanda earns nothing, Ben earns $60,000, and Cathy and Dylan each earn $30,000. They are all single. Amanda pays no tax because she has no income. If they all live in a country that has a progressive income tax, which will be higher: the tax that Ben pays or the sum of the taxes Cathy and Dylan pay?
Answer:
Ben would pay more in taxes.
Explanation:
A progressive income tax increases the tax rate as the taxpayer earns more money.
In this case, Ben would be taxed as earnings $60,000 which is probably a much higher tax rate than the applicable one for $30,000. If we use the current tax brackets for 2020, Ben would fall under the 22% tax bracket while both Cathy and Dylan would fall under the 12% tax bracket. Obviously Ben would pay much more in taxes.
A company is considering the following alternatives:
Revenues: Alternative 1 $240,000 & Alternative 2 $240,000
Variable costs: Alternative 1 $120,000 & Alternative 2 $140,000
Fixed costs: Alternative 1 $70,000 & Alternative 2 $70,000
Required:
1. Which of the following are relevant in choosing between the alternatives?
A) Revenues
B) Variable costs and fixed costs
C) variable costs
D) Fixed costs
Answer:
The answer is C.
Explanation:
Variable cost is a relevant cost. Variable cost varies with the output i.e the total number of units produced. For example in a perfect competitive market, for a firm to be able to operate its revenue/profit must cover variable costs. Also, its revenue is dependent on the number of units produced which is directly proportional to variable cost.
Fixed cost is fixed and it is not a relevant cost in making decision. It is a sunk cost. Whether a business produces or not, fixed cost will be incurred.
Oaktree Company purchased new equipment and made the following expenditures: Purchase price $ 45,000 Sales tax 2,200 Freight charges for shipment of equipment 700 Insurance on the equipment for the first year 900 Installation of equipment 1,000 The equipment, including sales tax, was purchased on open account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Prepare the necessary journal entries to record the above expenditures. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer and Explanation:
The journal entries are shown below:
1. Equipment($45,000 + $2,200 + $700 + $1,000) $48,900
To Accounts payable $47,200 ($45,000 + $2,200)
To Cash $1,700
(Being the equipment is purchased on cash and credit)
Since the equipment is purchased so it would be debited and the other two accounts i.e account payable and the cash is credited
2.Prepaid insurance $900
To Cash $900
(Being the payment is recorded)
Since there is a prepaid insurance and the same is increased in assets so it would be debited and the cash is paid so it would be credited
Ivanhoe, Inc. received the following information from its pension plan trustee concerning the operation of the company's defined-benefit pension plan for the year ended December 31, 2021. 1/1/21 12/31/21 Accumulated benefit obligation 3600000 1660000 Net (gains) and losses $ 6670000 $ 148000 Projected benefit obligation 1450000 6855000 Pension assets (at fair value) 0 4036000 The service cost component of pension expense for 2021 is $523000 and the amortization of prior service cost due to an increase in benefits is $113000. The settlement rate is 11% and the expected rate of return is 7%. What is the amount of pension expense for 2021
Final answer:
The amount of pension expense for 2021 is $795,500.
Explanation:
The amount of pension expense for 2021 can be calculated using the following formula:
Pension Expense = Service Cost + Interest Cost - Actual Return on Plan Assets + Amortization of Prior Service Cost
Given the information provided, the service cost component of pension expense for 2021 is $523,000 and the amortization of prior service cost is $113,000. The interest cost can be calculated by multiplying the projected benefit obligation at the beginning of the year by the settlement rate. The actual return on plan assets can be calculated by multiplying the pension assets at the beginning of the year by the expected rate of return.
Let's calculate each component:
Interest Cost = 1,450,000 * 0.11 = $159,500
Actual Return on Plan Assets = 0 * 0.07 = $0
Substituting the values into the formula:
Pension Expense = $523,000 + $159,500 - $0 + $113,000 = $795,500
Mobility Partners makes wheelchairs and other assistive devices. For years it has made the rear wheel assembly for its wheelchairs. A local bicycle manufacturing firm, Trailblazers, Inc., offered to sell these rear wheel assemblies to Mobility. If Mobility makes the assembly, its cost per rear wheel assembly is as follows (based on annual production of 1,800 units):
Direct materials $25
Direct labor 53
Variable overhead 16
Fixed overhead 47
Total $141
Trailblazers offered to sell the assembly to Mobility for $110 each. The total order would amount to 2,000 rear wheel assemblies per year, which Mobility's management will buy instead of make if Mobility can save at least $10,000 per year. Accepting Trailblazers's offer would eliminate annual fixed overhead of $40,000.
Required:
a. Prepare a schedule that shows the differential costs on the 2,000 rear wheel assemblies order.
b. Should Mobility make rear wheel assemblies or buy them from Trailblazers?
Answer:
a. The preparation of schedule that shows the differential costs is shown below:-
b. Decision : Make
Explanation:
Particulars Make the Buy from Differential
Wheels trailblazers cost
Offer of
trailblazer $220,000 $220,000 Higher
(2,000 × $110)
Material cost $50,000 $50,000 Lower
($25 × 2,000)
Labor cost $106,000 $106,000 Lower
($53 × 2,000)
Variable
overhead $32,000 $32,000 Lower
($16 × 2,000)
Fixed
overhead $94,000 $54,000 $40,000 Lower
($47 × 2,000) ($94,000 - $40,000)
Total cost $282,000 $274,000 ($8,000) Lower
Working Note:-
1) Fixed overhead applied = $47 × 2,000 = $94000
Decision : Make
Total saving from accepting the accepting the offer of trailblazer = $8,000
Cost saving required to accept the offer of trailblazer = $10,000
Decision - Make (Since actual savings are less than savings required by $2,000)
The following stockholders’ equity accounts, arranged alphabetically, are in the ledger of Sarasota Corp. at December 31, 2022.
Common Stock ($2 stated value) $2,400,000
Paid-in Capital in Excess of Par Value—Preferred Stock 67,500
Paid-in Capital in Excess of Stated Value—Common Stock 1,575,000
Preferred Stock (5%, $100 par, noncumulative) 900,000
Retained Earnings 2,001,000
Treasury Stock (18,000 common shares) 108,000
Prepare the stockholders’ equity section of the balance sheet at December 31, 2022.
Answer and Explanation:
The preparation of the stockholder equity section of the balance sheet is presented below:
Stockholders' equity
Paid in capital
Capital stock
5% preferred stock, $100 par value, noncumulative, 9,000 shares are issued and outstanding $900,000
Common stock, no par, $2 stated value, $2,400,000
Total capital stock $3,300,000 (A)
Additional paid in capital
Paid-in Capital in Excess of Par Value $67,500
Paid-in Capital in Excess of Stated Value - Common Stock $1,575,000
Total additional paid in capital $1,642,500 (B)
Total paid in capital $4,942,500 (A + B)
Add: Retained earnings $ 2,001,000
Total paid in capital and retained earnings $6,943,000
Less: Treasury stock (18,000 common shares) $(108,000)
Total stockholders' equity $6,835,500
Stockholders' equity
Paid in capital
Capital stock
5% preferred stock, $100 par value, noncumulative, 9,000 shares are issued and outstanding $900,000
Common stock, no par, $2 stated value, $2,400,000
Total capital stock $3,300,000 (A)
Additional paid-in capital
Paid-in Capital - in Excess of Par Value $67,500
Paid-in Capital in Excess of Stated Value - Common Stock $1,575,000
Total additional paid in capital $1,642,500 (B)
Total paid in capital $4,942,500 (A + B)
Add: Retained earnings $ 2,001,000
Total paid in capital & retained earnings $6,943,000
Less: Treasury stock (18,000 common shares) $(108,000)
Total stockholders' equity $6,835,500
Learn more: brainly.com/question/8645356
Miles Company, a wholesaler, budgeted the following sales for the indicated months: June July August Sales on account $2700000 $2760000 $2850000 Cash sales 270000 300000 390000 Total sales $2970000 $3060000 $3240000 All merchandise is marked up to sell at its invoice cost plus 20%. Merchandise inventories at the beginning of each month are at 30% of that month's projected cost of goods sold. The cost of goods sold for the month of June is anticipated to be $2079000. $2376000. $2475000. $2284615.
Answer:
$2475000
Explanation:
The computation of the cost of goods sold for the June month is shown below:
As it is given that total sales of June is $2,970,000
And, the marked up is cost plus 20%
So based on the above information, the cost of goods sold is
= $2,970,000 × 100 ÷ 120
= $2,475,000
Therefore, all the other information which is given is not relevant. Hence, ignored it
The cost of goods sold for the month of June can be calculated by finding 70% of the projected cost of goods sold. The projected cost of goods sold for June is $2079000, so 70% of that is $1455300.
Explanation:The cost of goods sold for the month of June can be calculated by finding 70% of the projected cost of goods sold. The projected cost of goods sold for June is $2079000, so 70% of that is $2079000 x 0.7 = $1455300. This is the cost of goods sold for the month of June.
Learn more about Cost of goods sold here:https://brainly.com/question/33405095
#SPJ3
"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
Assume again that Andretti Company has sufficient capacity to produce 120,150 Daks each year. A customer in a foreign market wants to purchase 31,150 Daks. If Andretti accepts this order it would have to pay import duties on the Daks of $3.70 per unit and an additional $18,690 for permits and licenses. The only selling costs that would be associated with the order would be $2.40 per unit shipping cost. What is the break-even price per unit on this order? (Round your answers to 2 decimal places.)
Final answer:
The break-even price per unit for Andretti Company's order of 31,150 Daks, after accounting for import duties, permits and licenses, and shipping, is $6.70, rounded to two decimal places.
Explanation:
To calculate the break-even price per unit for the Andretti Company's order of 31,150 Daks, we need to consider both fixed costs and variable costs associated with this order. Fixed costs include import duties ($3.70 per unit) and the cost for permits and licenses ($18,690). Variable costs consist of the shipping cost ($2.40 per unit).
The total fixed costs are $18,690 (permits and licenses) + ($3.70 × 31,150 units in import duties) = $18,690 + $115,255 = $133,945. The total variable costs are $2.40 × 31,150 units = $74,760. To find the break-even price per unit, we add the fixed and variable costs and divide by the number of units. So, the break-even price per unit is ($133,945 + $74,760) ÷ 31,150 units = $208,705 ÷ 31,150 units = $6.70 per unit (rounded to two decimal places).
The break-even price per unit for the order is approximately $6.70.
The break-even price per unit for the order is calculated by considering all the additional costs associated with the order and dividing them by the number of units in the order. The additional costs include the import duties and the shipping costs per unit, as well as the fixed costs for permits and licenses.
First, we calculate the total variable costs for the order:
- Import duties: $3.70 per unit for 31,150 units = $3.70 * 31,150
- Shipping costs: $2.40 per unit for 31,150 units = $2.40 * 31,150
Next, we add the fixed costs for permits and licenses:
- Fixed costs: $18,690
Now, we sum the total variable costs and the fixed costs to find the total additional costs:
- Total variable costs = Import duties + Shipping costs
- Total additional costs = Total variable costs + Fixed costs
Finally, we divide the total additional costs by the number of units to find the break-even price per unit:
- Break-even price per unit = Total additional costs / Number of units
Let's perform the calculations:
- Import duties = $3.70 * 31,150 = $115,355
- Shipping costs = $2.40 * 31,150 = $74,760
- Total variable costs = $115,355 + $74,760 = $190,115
- Total additional costs = $190,115 + $18,690 = $208,805
- Break-even price per unit = $208,805 / 31,150 units = $6.70 per unit
Martinez Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $165,800 Allowance for Doubtful Accounts $3,730 Sales Revenue (all on credit) 840,900 Sales Returns and Allowances 52,650 Prepare the journal entry to record bad debt expense assuming Martinez Company estimates bad debts at (a) 5% of accounts receivable and (b) 5% of accounts receivable but Allowance for Doubtful Accounts had a $1,380 debit balance.
Answer:
a. Debit Bad debt expense $4,560
Credit Allowance for doubtful debt $4,560
Being entries to recognize bad debt expense
b. Debit Bad debt expense $9,670
Credit Allowance for doubtful debt $9,670
Being entries to recognize bad debt expense
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.
Net sales
= $840,900 - $ 52,650
= $788,250
Allowance for doubtful debt
= 5% * $165,800
= $8,290
a. the difference to be posted
= $8,290 - $3,730
= $4,560
b. the difference to be posted
= $8,290 + $1,380
= $9,670
You expect KT industries (KTI) will have earnings per share of $ 6 $6 this year and expect that they will pay out $ 1.25 $1.25 of these earnings to shareholders in the form of a dividend. KTI's return on new investments is 13 13% and their equity cost of capital is 14 14%. The value of a share of KTI's stock is closest to:
Answer:
$8.93
Explanation:
The payment made to the stockholders is known as dividend.
Price of the stock can be determined by calculating the present value of all future expected dividends using cost of capital.
In this question $1.25 per share dividend is paid and rate of return / cost of capital is 14%, so price of stock will be calculated as follow.
Price of the share = Dividend / Cost of Capital = $8.93
Price of the share = $1.25 / 14% = $8.93