Answer:
A 4.3 years
B. The company shouldn't carry out the project because the payback period is greater than the preferred payback period.
Explanation:
Payback period calculates the amount of time it takes to recover the amount invested in a project from its cumulative cash flows.
Payback period = amount invested / cash flows
$546,000 / $127,000 = 4.3 years
The company shouldn't carry out the project because the payback period is greater than the preferred payback period.
I hope my answer helps you
For all parts of this question, assume the following: The CAPM holds. The riskless rate of return is 5%. The market portfolio has expected rate of return of 15% and standard deviation of 20%. 1. Burger Inc. stock has an expected rate of return of 4% per year and standard deviation of 30%. Linda Belcher says, "No rational person would hold a risky asset expected to return less than the riskless rate! It must be mispriced." Is Linda correct? Explain. 2. Consider the following data on two stocks whose returns have a correlation of 0.2 with each other: Expected Return Standard Deviation Walmart 5% 12% Tesla 20% 35% Bob Belcher owns $25,000 worth of Walmart stock, $10,000 worth of Tesla stock, and no other investments. a) Compute expected rate of return (% per year), and standard deviation of Bob’s portfolio. b) Mr. Belcher says he cannot tolerate any more standard deviation than her portfolio has now. Given this risk tolerance, is he maximizing her expected return? If he is, explain why? If he is not, explain how she should invest to maximize expected return (give a specific trading and investment strategy).
Answer 1:
The CAPM model shows that the points (return and stdv) which are below the capital market line are in infeasible reason. This means no investor, be it risk-taking or risk-neutral, won't invest in such portfolios.
If a risk free asset is giving a return of 5%, then no one would go for an asset with 30% stdv (risky asset) to get 4% return. Hence, Linda is right.
Answer 2:
Out of 35000 of available funds, 25000 (71.43%) are invested in Walmart and 28.57% are invested in tesla.
Expected return = W1*R1 +W2*R2 where W1 and W2 are the weights and R1 and R2 are the expected returns from each stocks.
hence, the expected return of the portfolio = 0.7143*5% + 0.2857*20%= 9.2858%
portfolio variance = (W1S1)^2 + (W2S2)^2 + 2*W1W2S1S2Cor, where S1 and S2 are stdv of portfolio and Cor is the correlation between these stocks
stdv of portfolio
=( (0.7128*0.12)^2 + (0.2857*0.35)^2 + 2*0.7128*0.2857*0.12*0.35*0.2)^0.5 = 14.4%
If he wants to retain the same stdv, we need to find corresponding expected return on Capital market line, which is 12% return.
12% >= W1'*5% + W2'*20%
W1'= 1- W2'
12% = 5% - 5%*W2' +W2'*20%
W2 =
0.466 = 16333
Hence, he should invest 16333 in Tesla and remaining in Walmart
Answer:
Explanation:
If a risk free asset is giving a return of 5%, then no one would go for an asset with 30% standard deviation (risky asset) to get 4% return. Hence, Linda is right.
2. Out of 35000 of available funds, 25000 (71.43%) are invested in Walmart and 28.57% are invested in tesla.
Expected return = W1*R1 +W2*R2 where W1 and W2 are the weights and R1 and R2 are the expected returns from each stocks.
hence, the expected return of the portfolio = 0.7143*5% + 0.2857*20%= 9.2858%
portfolio variance = (W1S1)^2 + (W2S2)^2 + 2*W1W2S1S2Cor, where S1 and S2 are standard deviation of portfolio and Cor is the correlation between these stocks
standard deviation of portfolio =( (0.7128*0.12)^2 + (0.2857*0.35)^2 + 2*0.7128*0.2857*0.12*0.35*0.2)^0.5 = 14.4%
12% >= W1'*5% + W2'*20%
W1'= 1- W2'
12% = 5% - 5%*W2' +W2'*20%
W2 = 0.466 = 16333
Hence, he should invest 16333 in Tesla and remaining in Walmart
kindly check the attached image below for the graphical presentation of the explanation to the question
A firm is offered trade credit terms of 2/8, net 45 days. The firm does not take the discount. It pays after 58 days. What is the effective annual cost (EFF%) of not taking this discount
Answer: 15.89%
Explanation:
Since no discounts were taken, this company made your job a whole lot easier because if we are for instance assuming a 365 day year then you simply take the base period of payments which is 58 days in this scenario and divide by 365.
So it would come out like,
= 58/365
= 15.89%
If you need any clarification just drop a comment. Cheers.
For an organization to be successful, its leaders must be fully aware of their environment. What are the primary internal and external organizational considerations for the development of a global strategic plan?In your opinion, which 3 considerations have the most impact and why?
Answer:
“Internal organisation considerations for the development of a strategic plan include workforce strengths and weaknesses, financial considerations and organisational culture”.
The structure and culture are significant in light of the fact that they furnish the organization with the capacity change and prevail through the changing states of the organization. Regardless of whether the arrangement fits into the organization's way of life and whether the authoritative structure can alter or adjust to the change may influence the chance of following a particular vital course spread out by the organization. To deal with workforce gives the organization must think about the qualities and shortcomings of the workforce when they are making the vital arrangement. A workforce with various abilities will respond distinctive to the adjustments in the key arrangement. Workers that are imaginative and enhanced will adjust and assume responsibility for the new vital arrangement while untalented representatives will react to the new arrangement in an altogether different way. During the upper hand phase of arranging, the organization must recognize key chances. This can appear as innovation, licenses, elite agreements, the area of the organization, and in any event, having the associations the organization similarly as with others. At last, is the money related circumstance of the organization, which should be considered before beginning the key getting ready for the organization. Right now, you should consider how much cash the organization needs to acquire the objectives of the key arrangement. At that point the objectives ought to be set that are viewed as reachable by the organization.
As I would like to think, the budgetary thought would be the most significant stage. After all there would be no compelling reason to get ready for an adjustment in the activity of the organization if there was no money related sponsorship to help such a change.
The essential outside hierarchical contemplation in building up a vital arrangement are the chances, dangers, and patterns. These segments are a piece of the SWOTT Analysis. Long haul arranging, observing and looking into industry patterns, defining objectives, executing strategy, methods, and checking and exploring impacts of activities are for the most part approaches to achieve a key arrangement. The most significant thought relies upon the SWOTT Analysis. The market, contenders, and assets are continually evolving. Given the aftereffects of these changes, the thought might be modified. On the off chance that I needed to make a theory with regards to what the most significant thought would be in the present climate, I would state the economy! It is the thing that enables a business to succeed or fall flat.
Ford Motor Company has been attacked by its own sustainability committee for failing to do enough to cut vehicular greenhouse gas emissions. According to the committee's 2005 report, "Ford has failed to define a goal for reducing global emissions from the company's products." The report called for the company to set clear targets to improve fuel economy and to cut factory emissions. This committee wants Ford to establish emission control ____.
Answer:
Standard
Explanation:
The committee wants Ford to establish emission control standard.
Emission standard is a legal requirement that governs all forms of air pollutants which are released by a company's product into the atmosphere. Quantitative limits are set on specific air pollutants that have permission to be released at specific time periods.
Sustainability means addressing the current demands without compromising the generations' ability to meet their own.
We require social and economic resources due to organic resources. Environmentalism isn't the only aspect of sustainability.
The correct word for the blank is Standard
An environmental regulation is a governmental requirement that covers all types of air pollutants discharged into the environment by a specific product. Quantitative limitations are established for specific air pollutants that are allowed to be discharged for specific timeframes.
It is necessary to control the air pollutants and adapt the environment-friendly methods for the production and manufacturing of the goods and services for the fullfillment of the customer in the market at the prevailing demand of the goods and services.
To know more about the emission standard, refer to the link below:
https://brainly.com/question/9912932
In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $247,000 of the fixed manufacturing expenses and $208,000 of the fixed selling and administrative expenses are avoidable if product L07E is discontinued. The financial advantage (disadvantage) for the company of eliminating this product for the upcoming year would be:
Answer:
($140,000)
Explanation:
The computation of financial advantage (disadvantage) for the company is shown below:-
If product LO7E is discontinued then $247,000 and $208,000 would contribute to savings and loss of contribution equals $595,000 ($990,000-$ 395,000)
Financial advantage/Disadvantage = Fixed manufacturing expenses + Fixed selling and administrative expenses - Contribution
= $247,000 + $208,000 - $595,000
= ($140,000)
Therefore for computing the financial advantage (disadvantage) for the company we simply applied the above formula.
The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows. Common stock—$20 par value, 150,000 shares authorized, 64,000 shares issued and outstanding $ 1,280,000 Paid-in capital in excess of par value, common stock 424,000 Retained earnings 548,000 Total stockholders’ equity $ 2,252,000 On February 5, the directors declare a 2% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock’s market value is $36 per share on February 5 before the stock dividend. 1. Prepare entries to record both the dividend declaration and its distribution.
Answer:
Feb 05
Dr Retained earnings $46,080
Cr Common stock dividend distributable $25,600
Cr Paid-in capital in excess of par value, Common stock $20,480
Journal entries Feb 28
Dr Common stock dividend
distributable$25,600
Cr Common stock, $20 par value $25,600
Explanation:
TVX Company
Journal entries
Feb 05
Dr Retained earnings $46,080
Cr Common stock dividend distributable $25,600
Cr Paid-in capital in excess of par value, Common stock $20,480
Journal entries Feb 28
Dr Common stock dividend
distributable$25,600
Cr Common stock, $20 par value $25,600
Feb. 5
Shares to be issued: 64,000 shares × 2% = 1,280 shares
Retained earnings: (1,280 shares × $36) = $46,080
Common stock dividend distributable: 1,280 shares × $20 per share = $25,600
U.S. Products operates two divisions with the following sales and expense information for the month of May: North Division: Sales $240,000; Operating income $72,000, Operating assets $600,000. South Division: Sales $160,000; Operating income $80,000, Operating assets $800,000. U.S. Products expects a minimum return of 10% should be earned from all investments. North Division’s return on investment for May is:
Answer:
12%
Explanation:
The income earned over on the investment made in the business is known as the return on Investment. it is calculated by dividing net income for the period with the total investment made in the business.
In this question we have operating income and operating asset to calculate the return on investment.
North division
Return on Investment = (Operating Income / Operating Assets) x 100
Return on Investment = ( $72,000 / $600,000 ) x 100 = 12%
The North Division's return on investment (ROI) for the month of May is 12%, calculated by dividing the operating income by the operating assets and then multiplying by 100.
The student has asked for the calculation of the return on investment (ROI) for the North Division of U.S. Products for the month of May. To calculate this, we use the formula: ROI = (Operating Income / Operating Assets) × 100. For the North Division, this calculation would be: ROI = ($72,000 / $600,000) × 100, which simplifies to ROI = 0.12 × 100 = 12%. Therefore, the North Division's return on investment for May is 12%.
Suppose when the price of a cookie is $2.50, the quantity demanded is 50, and when the price is $1, the quantity demanded is 200. Using the midpoint method, the price elasticity of demand is:
Answer:
The price elasticity of demand is -1.40
Explanation:
E = [Q2-Q1/(Q2+Q1/2)]/[P2-P1/(P2+P1/2)]
= [200-50/(200+50/2)] / [1-2.5/(1+2.5/2)]
= [150/125]/[1.5/1.75]
= 1.2/0.8571
= -1.4 0
the price elasticity of demand is -1.40
Your company, which transports medical equipment to emerging nations, is conducting a political risk analysis before signing a contract to transport equipment within a South American country.
1. Which of the following findings in the political risk analysis would indicate that the company should NOT sign the contract?
a. Potential nationalization of invested assets
b. Devaluation of the country's currency
c. Uncertain prices for critical commodities
d. High government debt
The transports medical equipment to emerging nations, is conducting a political risk analysis before signing a contract to transport equipment within a South American country for the following reason which is,
b. Devaluation of the country's currency
Explanation:
In devaluation of the country's currency, the monetary authority formally gets a lower exchange rate out of the national currency in contrast to the foreign currency's reference.Company which transports medical equipment to emerging nations, which conducts a political risk analysis before signing a contract to transport equipment within a South American country, findings in the political risk analysis would indicate that the company should NOT sign the contract because of the Devaluation of the country's currency.A country devalues its currency can impact on its deficit because of the high demand of cheaper exports.Countries uses it devaluation of currencies as to achieve economic policy. The weaker currency compare to the rest of the world can really increase exports, reduce trade deficits and also reduce the cost of interest payments.In a political risk analysis for a company transporting medical equipment, potential nationalization of invested assets, devaluation of the country's currency, uncertain prices for critical commodities, and high government debt would all suggest high risks that may warrant not signing a contract.
Explanation:Conducting a political risk analysis is crucial for businesses looking to operate in foreign countries, especially when the business involves the transport of critical commodities like medical equipment. The findings of such an analysis that would indicate a high risk, suggesting that a company should potentially NOT sign the contract, would include potential nationalization of invested assets. Such a scenario implies that the government could take control of a company's assets without fair compensation, which would cause substantial losses. Devaluation of the country's currency implies a risk of loss in revenue and profitability for the business. It can make repatriation of profits difficult and introduces currency risk into the company's operations. Furthermore, uncertain prices for critical commodities can lead to supply chain disruptions and cost fluctuations, which negatively impact business planning and budgeting. Lastly, high government debt might signal a risk of economic instability or fiscal policy changes that could unfavorably impact business operations.
E-85 __________A) was an international summit of 85 nations that met to restrict greenhouse gas emissions B) was an international summit of 85 nations that met to restrict CFC use C) is an ethanol-gasoline mixtureD) was an international summit of 85 nations that met to determine vehicle fuel efficiency standards E) is an isotope of uranium used to generate electricity
Answer:
C. Is an ethanol-gasoline mixture
Explanation:
E-85 is a designation used to represent a combination of ethanol and gasoline. It indicates an ethanol content of 85% and a gasoline content of 15%. Most countries with cold temperatures practice this mixture of ethanol with gasoline, because, ethanol makes it hard for the engines of vehicles to crank.
A major agricultural produce used in the production of ethanol is corn which undergoes fermentation. Some countries who use E-85 as a source of fuel include; the United States, as well as Sweden.
8-8 Outsourcing (LO 3) The Outland Company manufactures 1,000 units of a part that could be purchased from an outside supplier for $12 each. Outland's costs to manufacture each part are as follows:
Direct materials $ 2
Direct labor 3
Variable manufacturing overhead 4
Fixed manufacturing overhead 8
Total $17
All fixed overhead is unavoidable and is allocated based on direct labor. The facilities that are used to manufacture the part have no alternative uses.
Calculate relevant cost to make Relevent cost to make.
Answer:
relevant cost to make are $9.00
Explanation:
Consider the avoidable costs only because they are relevant for this decision.
Direct materials $2 .00
Direct labor $3 .00
Variable manufacturing overhead $4 .00
Total $9.00
The relevant cost to make the part is $9 per unit, which includes direct materials, direct labor, and variable manufacturing overhead.
The question asks to calculate the relevant cost to make a part in the context of Outsourcing decisions. When considering outsourcing, only variable costs and avoidable fixed costs are relevant. Since the fixed manufacturing overhead is unavoidable and there are no alternative uses for the facilities, the fixed cost is not relevant to this decision.
To calculate the relevant cost to make the part, we add the direct materials, direct labor, and variable manufacturing overhead: $2 (direct materials) + $3 (direct labor) + $4 (variable manufacturing overhead) = $9. Therefore, $9 per unit is the relevant cost to make the part.
The marginal product of labor can be defined as the change in a. profit divided by the change in labor. b. output divided by the change in labor. c. labor divided by the change in output. d. labor divided by the change in total cost.
Answer:
The correct answer is b. output divided by the change in labor.
Explanation:
The marginal product means the additional units of production that are added to the total production when the labor is increased by 1 unit and is a measure of production efficiency.
Goodwin Ross Mid Cap Growth is a fund that lets its investors buy ownership in a market basket that contains different securities. The fund's market basket has a composition that is similar to the composition of the Dow Jones Industrial Average stock index. In this scenario, Goodwin Ross MidCap Growth is a(n) _____.
Answer:
exchange-traded fund
Explanation:
Goodwin Ross Mid Cap Growth is an investment company that offer their clients different set of portfolios to invest their clients’ money. According to the information the Goodwin Ross Mid Cap Growth is an exchange-traded fund company that invests in different portfolios such as stocks, commodities and bonds in the financial market similar to the composition of the Dow Jones.
Olive Corp. currently makes 20,000 subcomponents a year in one of its factories. The unit costs to produce are: Per unit Direct materials $ 12 Direct labor 8 Variable manufacturing overhead 12 Fixed manufacturing overhead8 Total unit cost #40 An outside supplier has offered to provide Olive Corp. with the 20,000 subcomponents at a $36 $36 per unit price. Fixed overhead is not avoidable. What is the maximum price Olive Corp. should pay the outside supplier?
a. $32
b. $36
c. $40
d. $44
Answer:
a. $ 32
Explanation:
Computation of purchase price
The company can make the components with a variable cost which is as follows:
Direct Materials per unit $ 12
Direct Labour per unit $ 8
Variable Manufacturing overhead per unit $ 12
Total Variable Cost per unit $ 32
Since the fixed manufacturing overhead shall not be reduced, the maximum price that can be paid is the internal variable costs.
So the maximum purchase price is $ 32
Olive Corp. should only take into account variable costs—direct materials, direct labor, and variable overhead—which come to $32—while deciding whether to create or buy. Unavoidable fixed overhead expenses are not taken into account. Therefore, Olive Corp. should not pay the outside provider more than $32. The correct option is a.
Explanation:Olive Corp. must decide whether to make a make or purchase decision. The subcomponent can be produced internally for a total cost of $40 per unit. The supplier is offering a price of $36. Olive Corp. will pay fixed manufacturing overhead even if it chooses to buy from the supplier because it is an unavoidable expense.
As a result, it need to be disregarded when figuring out the highest amount Olive Corp. should have to pay. The unit cost without fixed overhead as a result. The correct option is a.
Learn more about or Buy here:https://brainly.com/question/33875171
#SPJ11
Blur Corp. has an expected net operating profit after taxes, EBIT(1 – T), of $7,600 million in the coming year. In addition, the firm is expected to have net capital expenditures of $1,140 million, and net operating working capital (NOWC) is expected to increase by $10 million. How much free cash flow (FCF) is Blur Corp. expected to generate over the next year?
Answer:
Free cash flow (FCF) for next year = $ 6,450 million
Explanation:
Free cash flow represents the amount that is left to all the providers of capital after the payment of all all operating expenses, working capital and investment in fixed asset expenditures.
It is computed as cash flow made from operation less capital expenditures
For Blur Communications
The Free cash flow
= EBIT (1-T) - increase in capital expenditure - increase in working capital
= 7600 - $1,140 - 10
= $ 6,450 million
Free cash flow (FCF) for next year = $ 6,450 million
Answer:
$6,450,000
Explanation:
Free cash flow (FCF) can be defined as the money or cash that remained after the company might have pay for its operating expenses as well as capital expenditures which is why companies, organisation, business owner or individual make use of FREE CASH FLOW to understand the profitability of their business.
Blur Corp
FCF = NOPAT – Net investment in operating capital
= $7,600M – (1,140+10)
= $7,600M - $1,150
=$6,450,000
Therefore Blur Corp is expected to generate free cash flow (FCF) of $6,450,000 over the next year.
Indicate whether each of the following audit procedures is a test of controls, a substantive test, or dual-purpose test. Next, indicate the financial statement assertion most closely related to each audit procedure.a. Vouch recorded sales invoices to supporting shipping documents. b. Inspect recorded sales invoices for credit approval. c. Vouch recorded sales invoices prices to the approved price list. d. Send confirmations to all customers regarding accounts receivable. e. Recalculate the arithmetic accuracy of the recorded sales invoices. f. Compare the shipment date of record sales invoices with the invoice record date. g. Trace recorded sales invoices to posting in the general ledger control account and in the correct customer's account. h. Select a sample of shipping documents from the shipping shipping department file and trace shipments to recorded sales invoices. i. Scan recorded sales invoices and shipping documents for missing numbers in sequence. j. Vouch sales invoices and shipping documents. k. Evaluate the adequacy of the allowance for doubtful accounts.
Answer:
The audit procedures whether controls, a substantive test, or dual-purpose test and the Financial statement assertion of the following procedures are given in the explanation below:
Explanation:
1.Vouch recorded sales invoices to supporting shipping documents.----
-----Dual-purpose/occurence and existence
2)Inspect recorded sales invoices for credit approval-----Test of controls/valuation and occurence
3) Vouch recorded sales invoices prices to the approved price list.
--Test of Controls/accuracy
4. Send confirmations to all customers regarding accounts receivable.
----Substantive test/existence
5) Recalculate the arithmetic accuracy of the recorded sales invoices.-----dual-purpose/accuracy and valuation
6) Compare the shipment date of record sales invoices with the invoice record date.-----dual-purpose/cut-off and completeness
7.)Trace recorded sales invoices to posting in the general ledger control account and in the correct customer's account-----dual-purpose/completeness
8)Select a sample of shipping documents from the shipping shipping department file and trace shipments to recorded sales invoices-------------dual purpose/completeness
9)Scan recorded sales invoices and shipping documents for missing numbers in sequence-----test of controls/completeness
10)Vouch sales invoices and shipping documents.-----Dual-purpose/occurence and existence
11.) Evaluate the adequacy of the allowance for doubtful accounts.
----Substantive/Valuation
The procedures are tests that auditors perform to ensure that the financial statements of a company are presented fairly in all material respects. They fall into three categories: tests of controls, substantive tests, and dual-purpose tests, and relate to a specific financial statement assertion such as accuracy, existence, completeness, etc.
Explanation: a. Vouch recorded sales invoices to supporting shipping documents. This is a dual-purpose test, and it pertains to the financial statement assertions of accuracy and completeness.
b. Inspect recorded sales invoices for credit approval. This is a test of controls, relating to the financial statement assertion of rights and obligations.
c. Vouch recorded sales invoices prices to the approved price list. This is a substantive test, closely related to the financial statement assertion of accuracy.
d. Send confirmations to all customers regarding accounts receivable. This is a dual-purpose test, related primarily to the financial statement assertion of existence.
e. Recalculate the arithmetic accuracy of the recorded sales invoices. This is a substantive test, related mainly to the financial statement assertion of accuracy.
f. Compare the shipment date of record sales invoices with the invoice record date. This is a dual-purpose test related to the financial statement assertions of cutoff and completeness.
g. Trace recorded sales invoices to posting in the general ledger control account and in the correct customer's account. This is an example of a dual-purpose test relating to the financial assertion of completeness.
h. Select a sample of shipping documents from the shipping department file and trace shipments to recorded sales invoices. This is a dual-purpose test and pertains to the financial statement assertions of completeness and accuracy.
i. Scan recorded sales invoices and shipping documents for missing numbers in sequence. This is a dual-purpose test concerned with the financial statement assertion of completeness.
j. Vouch sales invoices and shipping documents. This is a dual-purpose test, related primarily to the financial statement assertion of existence and accuracy.
k. Evaluate the adequacy of the allowance for doubtful accounts. This is a substantive test related to the financial statement assertion of valuation.
https://brainly.com/question/33968555
#SPJ3
DL and MOH budget: The Production Department of Top of The World Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 10,700 9,700 11,700 12,700 Each unit requires 0.25 direct labor-hours and direct laborers are paid $14.00 per hour. In addition, the variable manufacturing overhead rate is $2.00 per direct labor-hour. The fixed manufacturing overhead is $67,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $16,000 per quarter. a. Calculate the company’s total estimated direct labor cost for each quarter of the upcoming fiscal year and for the year as a whole. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the estimated number of units produced. b. Calculate the company’s total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the upcoming fiscal year and for the year as a whole.
Answer and Explanation:
a. The computation of the total estimated direct labor cost is shown below:
Particulars 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year
Units to be produced 10,700 9,700 11,700 12,700 44,800
Multiply Direct labor hour per unit 0.25 0.25 0.25 0.25 0.25
Total Direct labor hour required 2675 2425 2925 3175 11200
Multiply Direct labor rate per hour $14 $14 $14 $14 $14
Estimated Direct labor cost $37,450 $33,950 $40,950 $44,450 $156,800
b. The total estimated manufacturing cost and the cash disbursement is shown below:
Particulars 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year
Units to be produced 10,700 9,700 11,700 12,700 44,800
Direct labor hour per unit 0.25 0.25 0.25 0.25 0.25
Multiply Total Direct labor hour required 2675 2425 2925 3175 11200
Variable manufacturing overhead rate $2 $2 $2 $2 $2
Estimated Variable manufacturing overhead cost $5,350 $4,850 $5,850 $6,350 $22,400
Add: Fixed manufacturing overhead $67,000 $67,000 $67,000 $67,000 $268,000
Total estimated manufacturing overhead $72,350 $71,850 $72,850 $73,350 $290,400
Less: depreciation $16,000 $16,000 $16,000 $16,000 $64,000
Cash disbursement for manufacturing overhead $56,350 $55,850 $56,850 $57,350 $226,400
We simply applied the above format to find out the manufacturing overhead, cash disbursement, and the direct labor cost
After several profitable years running her business, Ingrid decided to acquire the assets of a small competing business. On May 1 of year 1, Ingrid acquired the competing business for $378,000. Ingrid allocated $63,000 of the purchase price to goodwill. Ingrid’s business reports its taxable income on a calendar-year basis. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
Answer:
question
1. how much amortization expense on the goodwill can Ingrid deduct in year 1, year 2, year 3?
2. In lieu of the original facts, assume that Ingrid purchase only a phone list with a useful life of 5 years for $16,500.
How much amortization expense on the phone list can Ingrid deduct in year 1, year 2 and year 3?
Explanation:
The explanation is shown in the file attached. Thank you i hope it helps
Ingrid's decision to acquire a competing business is a common business strategy. She allocated a part of the price to goodwill, representative of intangible advantages like reputation or customer relationships. The business's taxable income is reported on a calendar-year basis.
Explanation:Ingrid's business decision about acquiring a competing business is a part of a strategy often seen in the business field. Her allocation of $63,000 of the purchase price to goodwill represents an intangible asset that exists in many businesses. Goodwill typically represents things like a company's reputation or customer relationships which don't have physical value but can greatly contribute to a company's profitability.
The fact that Ingrid's business reports its taxable income on a calendar-year basis is an aspect that has an impact on how the business manages its finances, including the depreciation of assets for example.
Learn more about business acquisition here:https://brainly.com/question/33477251
#SPJ3
A company has employed two workers A and B whose productivities are 20 units and 15 units respectively. The wage for A is K12 whilst B’s is K8. Are these two employees optimally employed?
Neakanie Industries sells specialized mountain bikes. Each specialized bike purchased includes free maintenance service for 12 months. The price of the specialized bike is $1,400. When sold separately, a maintenance contract is $600 and a comparable but non-specialized bike is $1,000. What amount of revenue will Neakanie recognize at the date of sale for each bike?
$875 is the amount of revenue that will be recognized.
Explanation:
Entire price for specialized bike will be appropriated in the ratio of individual prices of the non- specialized bikes and the maintenance contract.
The following calculation is made to calculate the revenue from the sale of a bike:
= 1400 multiply with (1000 divide by 1600)
After solving the above equation we get,
= $875 will be recognized by Neakanie at the date of sale.
Hence, the correct option will be with an amount of $875
Note: a maintenance contract is $600 and a comparable but non-specialized bike is $1,000 when added sums to $1600 amount.
On the day his son was born, a father decided to establish a fund for his son's college education. The father wants the son to be able to withdraw $4000 from the fund on his 18th birthday, again on his 19th birthday, again on his 20th birthday, and again on his 21st birthday. If the fund earns interest at 9% per year, compounded annually, how much should the father deposit at the end of each year, up through the 17th year?
Answer:
The amount of deposit is 369.77 dollars
Explanation:
We can calculate the amount of deposit using present value and the number of payment periods, which is 17. It tells us about the value of our future income as measured in today's dollars. Future value for all four years is 1600 dollars. Formula for present value is future value/(1+interest rate)^number of periods. In this case it will be 1600/1.09^17 or 1600/4.327 equals 369.77.
To solve the problem, we use the formula for the future value of an ordinary annuity. By plugging the given values into the formula, we can find out how much the father needs to deposit each year for 17 years to ensure his son can withdraw $4000 per year for his college education from 18 to 21 years.
Explanation:The problem can be solved using the formula of the future value of an ordinary annuity. An annuity is a series of equal payments made at equal intervals. The future value formula is
FV=P*[((1+r)^t-1)/r]
where FV is the future value of the annuity, P is the amount of each payment, r is the interest rate, and t is the number of periods.
Since the son has to withdraw the amount from 18 to 21 years, that's 4 years in total, and the amount to be withdrawn is $4000 per year. We already know the value for FV (4*4000= $16000). We can plug the values into the formula and solve for P (the amount the father needs to deposit each year):
P = FV/((1+r)^t-1)/r).
Given that the father will make a deposit for 17 years and the interest rate is 9% compounded annually, we find P by using the interest rate as a decimal (0.09).
Learn more about Future Value of Annuity here:https://brainly.com/question/34939079
#SPJ3
A company has employed two workers A and B whose productivities are 20units and 15units respectively. The wage for A is k12 whilst B's is k8. Are these two employees optimally employed?
Answer:
no
Explanation:
In order to achieve optimal employment level, the ratio of productivity between employees must be equal to the ratio between their wages, e.g. an employee who is 25% more productive, should earn 25% more.
In this case, the productive ratio is 15:20 or 3:4, while the wage ratio is 8:12 or 2:3. Since the wage ratio is lower than the productivity ratio (2:3 < 3:4), the two employees are not optimally employed.
Gavin invested $40,000 in the Jason and Kelly Partnership for ownership equity of $40,000. Prior to the investment, land was revalued to a market value of $363,000 from a book value of $174,000. Jason and Kelly share net income in a 1:2 ratio. a. Provide the journal entry for the revaluation of land. If an amount box does not require an entry, leave it blank.
Answer:
A.
Dr Land $189,000
Cr Jason, Capital $63,000
Cr Kelly, Capital $126,000
B.
Dr Cash $40,000
Cr Gavin, Capital $40,000
Explanation:
A.
Dr Land ($363,000-$174,000) $189,000
Jason, Capital (1/3×189,000) $63,000
Kelly, Capital(1/2×189,000) $126,000
B.
Dr Cash $40,000
Cr Gavin, Capital $40,000
To record the revaluation of land, debit the Land account by $189,000 and credit the Land Revaluation Surplus account by the same amount, which reflects the increase in the land's market value.
The journal entry to record the revaluation of land in the Jason and Kelly Partnership due to its increase in market value from $174,000 to $363,000 is:
Debit Land account: $189,000 (which is $363,000 - $174,000)Credit Land Revaluation Surplus account: $189,000This reflects an increase in the asset's value on the balance sheet and recognizes the unrealized gain in equity.
Bramble Corp. uses the FIFO method for internal reporting purposes and LIFO for external reporting purposes. The balance in the LIFO Reserve account at the end of 2017 was $318000. The balance in the same account at the end of 2018 is $486000. Bramble’s Cost of Goods Sold account has a balance of $2300000 from sales transactions recorded during the year. What amount should Bramble report as Cost of Goods Sold in the 2018 income statement?
Answer:
$2,468,000
Explanation:
LIFO reserve = “Allowance to Reduce Inventory to LIFO” = the difference between the inventory method used for internal reporting purposes and LIFO.
LIFO effect = the change in the Allowance balance from one period to the next = the adjustment that companies must make to the accounting records.
Dr Cost of Goods Sold $168,000
($486,000- $318,000)
Cr Allowance to Reduce Inventory to LIFO $168,000
$2,300,000 +$168,000 =$2,468,000
Therefore the amount that Bramble should report as Cost of Goods Sold in the 2018 income statement is $2,468,000
Goode Inc.'s stock has a required rate of return of 13.50%, and it sells for $15.00 per share. Goode's dividend is expected to grow at a constant rate of 7.50%. What was the last dividend, D0?
Answer:
The last dividend = $0.84
Explanation:
We know,
Current stock price, [tex]P_{0}[/tex] = [tex]D_{1}[/tex] ÷ ([tex]r_{s} - g[/tex])
Given,
Market rate of return, [tex]r_{s}[/tex] = 13.50% = 0.135
Growth rate, g = 7.50% = 0.075
Expected dividend, [tex]D_{1}[/tex] = [tex]D_{0}[/tex] × (1 + g)
Thus we have to determine [tex]D_{0}[/tex] as it is the current year dividend or most recent dividend.
Current stock price, [tex]P_{0}[/tex] = $15
Putting the values into the above formula, we can get,
$15 = [[tex]D_{0}[/tex] × (1 + g)] ÷ [([tex]r_{s} - g[/tex])]
or, $15 = [[tex]D_{0}[/tex] × (1 + 0.075)] ÷ (0.135 - 0.075)
or, $15 = ([tex]D_{0}[/tex] × 1.075) ÷ 0.06
or, $15 = [tex]D_{0}[/tex] × 17.9167
or, [tex]D_{0}[/tex] = $15 ÷ 17.9167
Therefore, the last dividend [tex]D_{0}[/tex], = $0.84
Using the Gordon Growth Model, substituting the given values into the formula P0 = D0 * (1 + g) / (k - g), and solving for D0, we find that the last dividend paid by Goode Inc. was approximately $0.8372 per share.
To find the last dividend (D0) paid by Goode Inc., we can use the Gordon Growth Model (also known as the Dividend Discount Model). This model relates the current stock price (P0), the dividend growth rate (g), and the required rate of return (k) to calculate the last dividend paid. The formula for the Gordon Growth Model is P0 = D0 * (1 + g) / (k - g).
We know that Goode Inc. sells for $15.00 per share (P0), has a required rate of return of 13.50% (k), and the dividends are expected to grow at 7.50% (g). Substituting these values into the formula and solving for D0 gives us:
$15.00 = D0 * (1 + 0.075) / (0.135 - 0.075)
Multiplying both sides by (0.135 - 0.075) and then dividing by (1 + 0.075) yields:
D0 = $15.00 * (0.135 - 0.075) / (1 + 0.075)
D0 = $15.00 * 0.06 / 1.075
D0 = $0.8372 approximately
The last dividend paid by Goode Inc. was therefore approximately $0.8372 per share.
A survey of 200 public universities indicated that the 25th percentile of the yearly tuition cost of the universities was $4600 and the 75th percentile was $7300. The minimum value was $2000, the median was $6000, and the maximum was $10,000. Use this information to construct a boxplot for the yearly tuition costs.
Answer:
Explanation:
The boxplot for the yearly tuition costs has been attached as a file.
To construct a boxplot for the yearly tuition costs, use the five-number summary provided. Draw a number line with the values marked and create a boxplot where the box represents the interquartile range and the line inside the box is the median. Values outside the whiskers are outliers.
Explanation:To construct a boxplot for the yearly tuition costs based on the given information, we can use the five-number summary. The five-number summary consists of the minimum value, the 25th percentile, the median, the 75th percentile, and the maximum value. In this case, the minimum value is $2000, the 25th percentile is $4600, the median is $6000, the 75th percentile is $7300, and the maximum value is $10000.
The boxplot can be drawn on a number line, with the minimum value on the left, the maximum value on the right, and the other values marked in between. The box represents the interquartile range (the distance between the 25th and 75th percentiles), while the line inside the box represents the median. Any values outside the whiskers (lines extending from the box) are considered outliers.
Using the given values, the boxplot for the yearly tuition costs would be as follows:
Minimum: $200025th percentile: $4600Median: $600075th percentile: $7300Maximum: $10000Learn more about Boxplot here:https://brainly.com/question/38534950
#SPJ12
Rogala Foods Inc. was formed in 2015 with the merger of Grouch Mayer and Tashamo Corporation. The company reported the following rounded amounts for the year ended January 3, 2016 (all amounts in millions):
Debits Credits
Accounts Receivable $ 1,130
Allowance for Doubtful Accounts $ 33
Sales (assume all on credit) 18,400
Required:
Assume Rogala uses 1/4 of 1 percent of sales to estimate its Bad Debt Expense for the year. Prepare the adjusting journal entry required for the year, assuming no Bad Debt Expense has been recorded yet.
Assume instead Rogala uses the aging of accounts receivable method and estimates that $81 of its Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at January 3, 2016, for recording Bad Debt Expense.
Prepare the journal entry for unadjusted balance in Rogala’s Allowance for Doubtful Accounts at January 3, 2016, was a debit balance of $21.
If one of Rogala’s customers declared bankruptcy, what journal entry would be used to write off its $10 balance?
Answer:
1)
Dr. Bad Debt Expense $13
Cr. Allowance for Doubtful Accounts $13
2)
Dr. Bad Debt Expense $48
Cr. Allowance for Doubtful Accounts $48
2)
Dr. Bad Debt Expense $67
Cr. Allowance for Doubtful Accounts $67
4)
Dr. Allowance for Doubtful Accounts $10
Cr. Account receivables $10
Explanation:
Bad debt Expense will be calculated using the percentage of debt loss. The expense will be calculated using the account receivable balance.
Closing Value of the Allowance for Doubtful Accounts will be as follow
Closing Balance = $18,400 x 1% x 1/4 = $46
1) 1/4 of 1 percent of sales
As Allowance for Doubtful Accounts already have credit balance of $33, we need to adjust the remainder to make the closing balance of Allowance for Doubtful Accounts $46 at the year end.
Adjustment Value = $46 - $33 = $13
2) Aging of accounts receivable method
Uncollectible account receivable = $81
As Allowance for Doubtful Accounts already have credit balance of $33, we need to adjust the remainder to make the closing balance of Allowance for Doubtful Accounts $81 at the year end.
Adjustment Value = $81 - $33 = $48
3)
Uncollectible account receivable = $46
As Allowance for Doubtful Accounts already have credit balance of $21, we need to adjust the remainder to make the closing balance of Allowance for Doubtful Accounts $46 at the year end.
Adjustment Value = $46 - $21 = $67
On March 15, American Eagle declares a quarterly cash dividend of $0.060 per share payable on April 13 to all stockholders of record on March 30. Required: Record American Eagle's declaration and payment of cash dividends for its 223 million shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answer in dollars, not in millions (i.e. 5.5 should be entered as 5,500,000).)
Answer:
American Eagle Journal entries
March 15 (Declaration date)
Dr Dividends $13,380,000
Cr Dividends Payable $13,380,000
March 30 (Date of Record)No Entry
April 13 (Payment Date)
Dr Dividends Payable $13,380,000
Cr Cash $13,380,000
Explanation:
March 15 (Declaration date)
Dr Dividends (223 million shares x $0.060)
$13,380,000
Cr Dividends Payable $13,380,000
March 30 (Date of Record)No Entry
April 13 (Payment Date)
Dr Dividends Payable (223 million shares x $0.060) $13,380,000
Cr Cash $13,380,000
g On January 2, Yorkshire Company acquired 34% of the outstanding stock of Fain Company for $400,000. For the year ended December 31, Fain Company earned income of $104,000 and paid dividends of $32,000. Prepare the entries for Yorkshire Company for the purchase of the stock, the share of Fain income, and the dividends received from Fain Company.
Answer:
See the explanation below:
Explanation:
Share of profit of Fain Company = $104,000 * 34% = $35,350
Dividend received = $32,000 * 34% = $10,880
Date Details Dr ($) Cr ($)
Jan. 2 Investment in Fain Company 400,000
Cash 400,000
To record payment for investment in Fain Company
Dec. 31 Investment in Fain Company 35,350
Share of profit of Fain Co. 35,000
To record share of profit in Fain Company
Dec. 31 Cash 10,880
Investment in Fain Company 10,880
To record received from investment in Fain Company
You place an order for 300 units of inventory at a unit price of $135. The supplier offers terms of 3/10, net 60. a-1. How long do you have to pay before the account is overdue? a-2. If you take the full period, how much should you remit?
Answer:
a1. 60 days
a2.Remittance = $40,500
b1- 1 % discount offered
b-2, 10days
b-3 =$40,095 ± 0.1
c-1 Implicit interest $405 ± 0.1%
c-2 Days' credit days=50 days
Explanation:
a1. 60 days
a2.0rder for 300 units of inventory at a unit price of $135
Remittance = 300($135)
Remittance = $40,500
b- 1 % discount offered
b-2, 10days
b-3 Remittance (1- 0.01) $40,500
(0.99)$40,500
Remittance =$40,095 ± 0.1%
c-1 Implicit interest $40,500- $40,095
Implicit interest $405 ± 0.1%
c-2
Days' credit days 60-10
Days' credit days=50 days