Answer:
$75 per unit
Explanation:
the unit level cost is equivalent to the variable cost = $45 per unit
product level costs and facility level costs are fixed costs
additional costs = $15,000 / 500 units = $30 per unit
Minimum selling price = $45 + $30 = $75 per unit
At this price, the company will be indifferent regarding whether to accept or reject the special order.
The type of legal system and the level of corruption in a country have been found to be: significant determinants of the rate of economic growth in a country. important topics for political discussion, but not economic explanations of growth. unrelated to the rate of economic growth in a country. important variables explaining the Golden Rule level of capital
Answer:
significant determinants of the rate of economic growth in a country.
Explanation:
A legal system can be defined as the system of principles, regulations and rules established by legislature, that is adopted in a community, society or country to regulate the actions of its citizens, members or employees.
Thus, it is a tool used by the judiciary, lawyers, individuals, organizations, and even government to ensure everybody is well behaved, non-criminal and civil in their actions. Therefore, a legal system creates the foundation for ethical behavior.
In circumstances where there are aberration, the legal system enforces an appropriate law as a punishment and penalty for wrongdoings or misdeeds.
Hence, the type of legal system and the level of corruption in a country have been found to be significant determinants of the rate of economic growth in a country because if the level of corruption is high and the legal system isn't functional by appropriately sentencing corrupt individuals or officials in a country, the economy of such a country would be impacted negatively.
On January 1, 2020, Mehan, Incorporated purchased 15,000 shares of Cook Company for $150,000 giving Mehan a 15% ownership of Cook. The fair value of the 15% investment was the same as the carrying value of the investment when, on January 1, 2021, Mehan purchased an additional 25,000 shares (25%) of Cook for $300,000. This last purchase gave Mehan the ability to apply significant influence over Cook. The book value of Cook on January 1, 2020 was $1,000,000. The book value of Cook on January 1, 2021, was $1,100,000. Any excess of cost over book value for this second transaction is assigned to a database and amortized over four years. Cook reports net income and dividends as follows. These amounts are assumed to have occurred evenly throughout the years: Net Income Dividends 2020 $200,000 $50,000 2021 225,000 50,000 2022 250,000 60,000 On April 1, 2022, just after its first dividend receipt, Mehan sells 10,000 shares of its investment How much of Cook's net income did Mehan report for the year 2022?
a) $72,500
b) $81.250.
c) $59 250.
d) $75,000,
e) 61.750.
Answer: b) $81.250.
Explanation:
Cook Net income was $250,000 in 2022.
In the first quarter of 2022 (Jan to March), Mehan owned 40% of Cook as they had purchased 15% and then 25%.
Share of net income is:
= 250,000 * 40% * 3/12 months
= $25,000
In the remaining months, they owned 30% of Cook because the 10,000 shares sold were 10% of equity as 15,000 shares are 15%.
Their share of net income would be:
= 250,000 * 30% * 9/12 months
= $56,250
Total income recognized:
= 25,000 + 56,250
= $81,250
Dawls Corporation reported stockholders' equity on December 31 of the prior year as follows:
Common stock, $5 par value, 1,000,000 shares
authorized 500,000 shares issued $2,500,000
Contributed capital In excess of par, common stock 1,000,000
Retained earnings 3,000,000
The following selected transactions occurred during the current year.
Feb. 15 The board of directors declared a 5% stock dividend to stockholders of record on March 1, payable March 20. The stock was selling for $8 per share.
March 9 Distributed the stock dividend.
May 1 A cash dividend of $.30 per share was declared by the board of directors to stockholders of record on May 20, payable June 1.
June 1 Paid the cash dividend.
Aug. 20 The board decided to split the stock 4-for-1, effective on September 1.
Sept. 1 Stock split 4-for-1.
Dec. 31 Earned a net income of $800,000 for the current year.
Required:
Prepare a statement of retained earnings as of December 31 of the current year.
Answer:
Dawls Corporation
A Statement of Retained Earnings as of December 31 of the current year:
Retained earnings, Jan. 1 $3,000,000
Current year's net income 800,000
Stock dividend (125,000)
Cash dividend (157,500)
Retained earnings, Dec. 31 $3,517,500
Explanation:
a) Data and Calculations:
Common stock, $5 par value, 1,000,000 shares
authorized 500,000 shares issued $2,500,000
Contributed capital In excess of par, common stock 1,000,000
Retained earnings 3,000,000
Total equity $6,500,000
b) Analysis:
Feb. 15 Stock Dividends $125,000 (25,000 * $5) 25,000 shares(500,000 * 5%)
May 1 Cash Dividends $157,500 (525,000 * $0.30)
Dec. 31 Net income $800,000
c) Statement of Stockholders' Equity as of December 31
Common stock, $1.25 par value, 4,000,000 shares
authorized 2,100,000 shares issued $2,625,000
Contributed capital In excess of par, common stock 1,000,000
Retained earnings 3,517,500
Total equity $7,142,500
In finance, equity involves the purchase of assets that may or may not be associated with loans or other liabilities. For accounting reasons, equity is calculated by subtracting liabilities from the amount of property.
Dawls Corporation
A Statement of Retained Earnings as of December 31 of the current year:
Retained earnings, Jan. 1 $3,000,000
Current year's net income 800,000
Stock dividend (125,000)
Cash dividend (157,500)
Retained earnings, Dec. 31 $3,517,500
Working Notes:
a) Data and Calculations:
Common stock, $5 par value, 1,000,000 shares
authorized 500,000 shares issued $2,500,000
Contributed capital In excess of par, common stock 1,000,000
Retained earnings 3,000,000
Total equity $6,500,000
b) Analysis:
Feb. 15 Stock Dividends $125,000[tex](25,000 \times \$5)[/tex] 25,000 shares[tex](500,000 \times5\%)[/tex]
May 1 Cash Dividends $157,500 [tex](525,000 \times \$0.30)[/tex]
Dec. 31 Net income $800,000
c) Statement of Stockholders' Equity as of December 31
Common stock, $1.25 par value, 4,000,000 shares
authorized 2,100,000 shares issued $2,625,000
Contributed capital In excess of par, common stock 1,000,000
Retained earnings 3,517,500
Total equity $7,142,500
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what are the financial resources of netflix
Netflix Inc. (NFLX) is a media company that offers consumers the ability to buy movie and TV entertainment services. Though the company has since adapted to a largely subscription-based model allowing customers to watch streaming television and movies online, Netflix still offers its original DVD service. Since the fourth quarter 2019, Netflix operates as a single business segment, no longer reporting across domestic streaming, international streaming, and domestic DVD segments.1 In recent years, competition in the streaming media business has grown fierce, with companies including The Walt Disney Co. (DIS), Amazon.com Inc. (AMZN), and Apple Inc. (AAPL) launching services to rival Netflix.on:
Use the following information to answer the next two questions: On January 1, 2018, Jimbo Enterprises purchased new equipment for its training center. The equipment cost $220,000. Jimbo paid $25,000 down and is required to pay the rest in semiannual installments for the next 8 years. Jimbo's cost of borrowing is 4%.
Required:
a. What is the amount of the semiannual payment Jimbo will make every six months?
b. What is the total amount of interest expense Jimbo will pay over the life of the loan?
Answer:
total loan (PV) = $220,000 - $25,000 = $195,000
n = 8 x 2 = 16
rate = 4% / 2 = 2%
FV = 0
Using a financial calculator, the payment = $14,361.77
Total amount of money paid during the 8 years = $229,788.39
Total interests paid = $229,788.39 - $195,000 = $34,788.39
Suppose there are a large number of men who used to work or seek work who now no longer do either. Other things the same, this makes a. the number of people unemployed rise but does not change the labor force. b. the number of people unemployed rise but makes the labor force fall. c. both the number of people unemployed and the labor force fall. d. the number of people unemployed fall but does not change the labor force.
Answer: c. both the number of people unemployed and the labor force fall.
Explanation:
Unemployed people in an economy refers to those who do not have work but are actively seeking work. As the men above who did not have work are no longer seeking it, they do not qualify to be classified as unemployed any longer which would lead to a fall in the unemployment rate.
The labor force includes both unemployed and employed people in the economy. As the number of people who were classified as unemployed has reduced, so also will the labor force.
Erik is acting in a single agency capacity in a transaction. What does this mean?
29) Sheldon Company is trying to decide which one of two contracts it will accept. The costs and revenues associated with each are listed below: Contract A Contract B Contract Revenue $ 200,000 $ 260,000 Materials 10,000 10,000 Labor 88,000 120,000 Depreciation on Equipment 8,000 10,000 Cost Incurred for Consulting Advice 1,500 1,500 Allocated Portion of Overhead 5,000 3,000 The equipment was purchased last year and has no resale value. Which of these amounts is relevant for the selection of one contract over another
Answer:
So, the relevant cash flows are Revenue, materials and labour cost.
Explanation:
A relevant cashflow is that which is future cash cost/revenue which arises as a direct consequence of a decision. For a cost or revenue to be considered a relevant cashflow it must satisfy the following conditions:
1) Futuristic 2).Cash based 3)Incremental
Relevant cash flows for the contracts are set down below:
$ $
Revenue 200,000 260,000
Materials (10,000) (10,000)
Labor (88,000) (120,000)
Net cash flow 102,000 130,000
Depreciation is not a cash item, the consulting advice fee is already a sunk cost. Apportioned overhead is also not a direct cost but sunk
So, the relevant cash flows are Revenue, materials, labour
At the beginning of the month, the Forming Department of Martin Manufacturing had 29,000 units in inventory, 40% complete as to materials, and 15% complete as to conversion. During the month the department started 98,000 units and transferred 100,000 units to the next manufacturing department. At the end of the month, the department had 27,000 units in inventory, 90% complete as to materials and 60% complete as to conversion. How many units did the Forming Department start and complete in the current month
Answer:
71,000 units.
Explanation:
Units started and completed = Units Completed - Units in Opening Inventory
therefore
Units started and completed = 100,000 units - 29,000 units = 71,000 units
thus,
Units started and completed in the current month for the Forming Department is 71,000 units.
Worldwide Electronics is a global manufacturing firm that produces televisions, monitors, and other consumer electronic equipment. It is organized geographically with four divisions (North America, South America, Europe and Africa, and Asia-Pacific). Manufacturing is organized by product line and shipped to the divisions. That is, televisions, for example, are produced in a single plant and then shipped to the four global divisions for sale.
Required:
Match the following executives to the responsibility center that best represents their likely decision-making authority. Responsibility Center Executive
1. JH Green, Corporate Personnel Officer
2. Kalya Borodina, Sales Manager, Peru
3. Jay Smith, Chief Executive Office
4. Andres Goya, Vice-President, South America S en Chan, Mexico City Plant Manager Cost center Discretionary cost center Investment center Profitcenter Revenue center
Answer:
Explanation:
1. JH Green, Corporate Personnel Officer - Discretionary cost center
2. Kalya Borodina, Sales Manager, Peru - Revenue center
3. Jay Smith, Chief Executive Office - Investment center
4. Andres Goya, Vice-President, South America - Profit center
5. Irene Chan, Mexico City Plant Manager - Cost center
Which precaution should you take while working on a computer?
A.
Hold the connecting wires and not plugs when connecting and disconnecting.
B.
Maintain a cool temperature to avoid sweating.
C.
Keep all the screws you remove in a container because you want to use them on any device.
D.
Leave wires loose because they allow proper circulation of air.
Answer:
D.
Leave wires loose because they allow proper circulation of air.
Answer:
B
Explanation:
100% on PLATO
On January 1, 2018, Tiffany Academy instituted a defined benefit pension plan for its employees. The annual service cost for each year of 2018 and 2019 was $600,000. The interest rate used to determine the projected benefit obligation is 10%. Both the actual and the expected return on plan assets are 8% for both years. Tiffany funded the plan in the amount of $400,000 each January 1, beginning on January 1, 2018. What net pension liability should Tiffany report in its balance sheet for the year ended December 31, 2019
Answer:
$593,440.00
Explanation:
Calculation to determine What net pension liability should Tiffany report in its balance sheet for the year ended December 31, 2019
First step is to Compute the Interest Cost for 2019
Balance of Projected benefit Obligation on January 1, 2019 600,000.00
Interest Cost for 2019 (600000*10%) 60,000.00
Second step is to Balance of Plan assets on January
Beginning Balance of Plan Assets as on Jan 1, 2018 $
Funding on Jan 1, 2018 400,000.00
Asd Actual return on December 31, 2018 (400000*8%) 32,000.00
Balance of Plan assets on December 31,2018 432,000.00
Add Current Funding on Jan 1, 2019 400,000.00
Balance of Plan assets on January 1, 2019 832,000.00
Third step is to Compute the Actual return for 2019
Actual return on December 31, 2019 (832000*8%) 66,560.00
Now let Compute The PENSION EXPENSE for the year 2019 $
Service cost 600,000.00
Add Interest cost (600000*10%) 60,000.00
Less Expected return on the plan assets (66,560.00)
(832000*8%)
Pension Expense for the year ended December 31, 2019 593,440.00
Therefore the net pension liability that Tiffany should report in its balance sheet for the year ended December 31, 2019 is $593,440.00
what is the yearly salary or hourly wage of a librarian?
Answer
$23–43per hour
Librarian
United States
$34k–78kper year
Librarian
Chicago, IL
Explanation:
On July 1, 2020, Riverbed Inc. made two sales.
1. It sold land having a fair value of $912,330 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,435,565. The land is carried on Riverbed's books at a cost of $597,200.
2. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $401,660 (interest payable annually).
Riverbed Inc. recently had to pay 8% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to borrow money at 12% interest.
Record the two journal entries that should be recorded by Agincourt Inc. for the sales transactions above that took place on July 1, 2014.
Answer:
Riverbed Inc.
Journal Entries:
1. Debit 0% 4-year Promissory Notes Receivable $1,435,565
Credit Land $597,200
Credit Gain on Sale of Land $315,130
Credit Interest Revenue $523,235
To record the sale of land in exchange for a note with face value of $1,435,565
2. Debit 3% 8-year Promissory Note Receivable $401,660
Credit Service Revenue $162,224
Credit Interest Revenue $239,436
To record the rendering of service in exchange for a note with face value of $401,660.
Explanation:
a) Data and Analysis:
July 1, 2020:
1. 0% 4-year Promissory Notes Receivable $1,435,565 Land $597,200 Gain on Sale of Land $315,130 Interest Revenue $523,235
From an online financial calculator, the PV and Interest:
N (# of periods) 4
I/Y (Interest per year) 12
PMT (Periodic Payment) 0
FV (Future Value) 1435565
Results
PV = $912,330
Total Interest $523,235
Gain on Sale of Land:
Fair value of the land = $912,330
Book value of the land 597,200
Gain on sale of land = $315,130
2. 3% 8-year Promissory Note Receivable $401,660 Service Revenue $162,224 Interest Revenue $239,436
From an online financial calculator, the PV and Interest:
N (# of periods) 8
I/Y (Interest per year) 12
PMT (Periodic Payment) 0
FV (Future Value) 401660
Results
PV = $162,224
Total Interest $239,436
Mr. Jernigan owns a piece of land on which he grows corn. Corn production annually requires $ in seed, $ in fertilizer, and $ in pesticides. Mr. Jernigan uses his own labor to grow the corn and therefore hires no workers. If Mr. Jernigan did not use his time to grow corn, he would instead be able to sell insurance, earning $ per year. Suppose another farmer has just offered to pay Mr. Jernigan rent of $ per year for use of the land. If Mr. Jernigan refuses to rent the land to another farmer, then what will be his accounting costs from farming corn himself on his land? What will be his economic costs?
Answer:
$21,000
$55,000
Explanation:
Here is the complete question :
Mr. Jernigan owns a piece of land on which he grows corn. Corn production annually requires $6,000 in seed, $9,000 in fertilizer, and $6,000 in pesticides. Me. Jernigan uses his own labor to grow the corn and therefore hires no workers. If Mr. Jernigan did not use his time to grow corn, he would instead be able to sell insurance, earning $35,000 per year.
Suppose another farmer has just offered to pay Mr Jernigan rent of $20,000 per year for use of this land.
If Mr. Jernigan refuses to rent the land to another farmer, then what will be his accounting costs from farming corn himself on this land? What will be his economic costs?
Accounting cost or explicit cost includes the amount expended in running the business. Accounting cost is used in calculating accounting profit. They include :
cost of the seed cost of fertilizer cost of pesticidesAccounting cost = $6,000 + $9,000+ $6,000 = $21,000
Economic cost or implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives. Economic costs and accounting cost is used in calculating economic profit. Economic cost include :
amount he would have earned selling issuance amount he would have earned if he rented out the landEconomic cost = $35,000 + $20,000 = $55,000
The federal funds rate is the interest rate that banks charge each other.
T or f
Answer: F
Explanation: The fed funds rate is the interest rate that depository institutions—banks, savings and loans, and credit unions—charge each other for overnight loans. The discount rate is the interest rate that Federal Reserve Banks charge when they make collateralized loans—usually overnight—to depository institutions.
Pearson Motors has a target capital structure of 45% debt and 55% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 8%, and its tax rate is 25%. Pearson's CFO estimates that the company's WACC is 12.50%. What is Pearson's cost of common equity
Answer:
the cost of equity is 17.82%
Explanation:
The computation of the cost of equity is shown below:
As we know that
WACC = weight of debt × cost of debt × (1 - tax rate) + weight of equity × cost of equity
12.50% = 0.45 × 8% × (1 - 0.25) + 0.55 × cost of equity
12.50% = 2.7% + 0.55 × cost of equity
9.8% = 0.55 × cost of equity
So, the cost of equity is 17.82%
g It is claimed that 1800 gallons of water are needed to produce one pound of beef, i.e., to grow the crops that feed the cattle and to provide the animals with drinking water. This water _______. Group of answer choices is permanently removed from the water cycle remains in the water cycle, but is forever polluted and thus no longer available for potable water usage remains in the water cycle and can be cleaned for future water usages None of these
Answer: remains in the water cycle and can be cleaned for future water usages.
Explanation:
Water never really leaves the earth as it just renters the water cycle where it can be cleaned and used fir future demand.
The water that was used to water the plants, will be lost to the atmosphere through evapotranspiration where it will condense and fall back as rain eventually.
The water the cattle drank will come back into the water cycle as urine and sweat where it can then be cleaned and used again for future demand. For instance, we are still drinking water that was drunk by dinosaurs.
On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $14,000. Jarden prepares a schedule of its December 31 accounts receivable by age.
Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible
$840,000 Not yet due 1.25%
336,000 1 to 30 days past due 2.00
67,200 31 to 60 days past due 6.50
33,600 61 to 90 days past due 32.75
13,440 Over 90 days past due 68.00
Required:
Prepare the adjusting entry to record bad debts expense.
Answer:
Jarden Co
Adjusting Entry
December 31:
Debit Bad Debts Expense $27,731
Credit Allowance for Doubtful Accounts $27,731
To record bad debts expense.
Explanation:
a) Data and Calculations:
Allowance for Doubtful Accounts, unadjusted credit balance = $14,000
Accounts Age of Accounts Expected % Uncollectible
Receivable Receivable Uncollectible Allowance
$840,000 Not yet due 1.25% $10,500 ($840,000*1.25%)
336,000 1 to 30 days past due 2.00 6,720 ($336,000*2%)
67,200 31 to 60 days past due 6.50 4,368 ($67,200*6.5%)
33,600 61 to 90 days past due 32.75 11,004 ($33,600*32.75%)
13,440 Over 90 days past due 68.00 9,139 ($13,440*68%)
$1,290,240 $41,731
T-account:
Allowance for Doubtful Accounts
Account Titles Debit Credit
Beginning balance $14,000
Bad Debts Expense 27,731
Ending balance $41,731
Stagflation is when there is a BLANK shock that causes high levels of both inflation and unemployment.
Fill in the BLANK:
employment
low
demand
supply
Answer:Supply
Explanation:
Stagflation is described as a situation in which an economy has both an increase in inflation and a stagnation in economic production. Stagflation was first recognized in the 1970s when an oil shock produced fast inflation and high unemployment in many developed economies.
So, Option D is correct as Due to a combination of rising prices and decreased output, a supply shock can generate stagflation.
The other options are incorrect as:
Option A is incorrect as employment shock is not what causes a high level of inflation and unemployment.
Option B is incorrect as a High level of inflation and unemployment is not caused by Low shock.
Option C is incorrect as A demand shock is a sudden, unanticipated incident that briefly raises or diminishes sales volume or service.
Thus Option D is the correct shock that causes high inflation and unemployment.
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33) Daily Company has been using the same machines to make its name-brand clothing for the last five years. A cost efficiency consultant has suggested that production costs may be reduced by purchasing more technologically advanced machinery. The old machines cost the company $100,000. The old machines presently have a book value of $60,000 and a market value of $6,000. They are expected to have a five-year remaining life and zero salvage value. The new machines would cost the company $50,000 and have operating expenses of $9,000 a year. The new machines are expected to have a five-year useful life and no salvage value. The operating expenses associated with the old machines are $15,000 a year. The new machines are expected to increase quality, justifying a price increase and thereby increasing sales revenue by $5,000 a year. Select the true statement. A. The company will be $12,000 better off over the five-year period if it replaces the old equipment. B. The company will be $11,000 better off over the five-year period if it replaces the old equipment. C. The company will be $36,000 better off over the five-year period if it replaces the old equipment. D. The company will be $20,000 better off over the five-year period if it keeps the old equipment.
Answer:
Daily Company
B. The company will be $11,000 better off over the five-year period if it replaces the old equipment.
Explanation:
a) Data and Calculations:
Old Machines:
Cost of old machines = $100,000
Book value = $60,000
Market value = $6,000
Operating expenses per year = $15,000 (Total = $75,000)
Remaining useful life = 5 years
Salvage value = $0
New Machines:
Cost of new machines = $50,000
Operating expenses per year = $9,000 (Total = $45,000)
Estimated useful life = 5 years
Salvage value = $0
Incremental Cash Flows:
Old Machines New Machines
Cost of machines ($50,000)
Operating expenses ($75,000) (45,000)
Sale of old machines 6,000
Sales revenue increase 25,000
Net cash outflows $75,000 $64,000
Overall benefit = $11,000 (reduced net cash outflows from $75,000 to $64,000)
After graduation, you decide to go into a partnership in an office supply store that has existed for a number of years. Walking through the store and stockrooms, you find a great discrepancy in service levels. Some spaces and bins for items are completely empty; others have supplies that are covered with dust and have obviously been there a long time. You decide to take on the project of establishing consistent levels of inventory to meet customer demands. Most of your supplies are purchased from just a few distributors that call on your store once every two weeks. You choose, as your first item for study, computer printer paper. You examine the sales records and purchase orders and find that demand for the past 12 months was 5,000 boxes. Using your calculator you sample some days' demands and estimate that the standard deviation of daily demand is 10 boxes. You also search out these figures:
Cost per box of paper: $11.
Desired service probability: 98 percent.
Store is open every day.
Salesperson visits every two weeks.
Delivery time following visit is three days.
Using your procedure, how many boxes of paper would be ordered if, on the day the salesperson calls, 60 boxes are on hand?
Answer:
257 boxes
Explanation:
The computation is given below;
Daily Demand would be
= 5000 ÷ 365
Standard Deviation = 10 boxes
Lead Time = 2 Weeks + 3 Days = 17 Days
Service Level = 0.98
Reorder Point = avg(d) × LT + z × σd × sqrt(LT)
= 5000 ÷ 365 × 17 + 2.05 × 10 × 170.5
= 317
So, the number of boxes should be ordered is
= 317 - 60
= 257 boxes
Southern Corporation has a capital structure of 40% debt and 60% common equity. This capital structure is expected not to change. The firm's tax rate is 34%. The firm can issue the following securities to finance capital investments: Debt: Capital can be raised through bank loans at a pretax cost of 10.0%. Also, bonds can be issued at a pretax cost of 7.0%. Common Stock: Retained earnings will be available for investment. In addition, new common stock can be issued at the market price of $90. Flotation costs will be $4 per share. The recent common stock dividend was $4.79. Dividends are expected to grow at 8% in the future.
Required:
What is the cost of capital if the firm uses bank loans and retained earnings?
Answer:
The cost of capital is 10.89%.
Explanation:
Cost of retained earnings = ((Dividend * (100% + Dividend growth rate)) / Stock price) + Growth rate = ((4.79 * (100% + 8%)) / 90) + 8% = 13.748%
Cost of common stock = Cost of retained earnings = 13.748%
Cost of capital = (Weight of debt * (Cost of debt * (100% - Tax rate))) + (Weight of common stock * Cost of common stock) = (40% * (10% * (100% - 34%))) + (60% * 13.748%) = 10.89%
Therefore, the cost of capital is 10.89%.
In a small, closed economy, national income (GDP) is $400.00 million for the current year. Individuals have spent $150.00 million on the consumption of goods and services. They have paid a total of $200.00 million in taxes, and the government has spent $150.00 million on goods and services this year. Use this information and the national income identity to answer the questions. How much is spent on investment in this economy
Answer: $100 million
Explanation:
National Income (GDP) for a close nation is calculated as:
= Consumption + Investment + Government spending
Making investment the subject would give us:
Investment = GDP - Consumption - Government spending
= 400 - 150 - 150
= $100 million
Schultz Tax Services, a tax preparation business had the following transactions during the month of June:
1. Received cash for providing accounting services, $3,000.
2. Billed customers on account for providing services, $7,000.
3. Paid advertising expense, $800.
4. Received cash from customers on account, $3,800.
5. paid cash dividends, $1,500.
6. Received telephone bill, $220.
7. Paid telephone bill, $220
Based on the information given above, calculate the balance of Cash at June 30. (Hint: Use the following reconciliation.)
Cash, June 1 $25,000
Plus: cash receipts for June ____________
Minus: cash payments for June ____________
Cash, June 30 ____________
Answer:
$29,280
Explanation:
It is important to consider only cash transactions when preparing a Cash Reconciliation.
Schultz Tax Services Cash Reconciliation
Cash, June 1 $25,000
Plus: cash receipts for June
Receipts for Accounting Services $3,000
Receipts from Accounts Receivables $3,800 $6,800
Minus: cash payments for June
Advertising expense paid $800
Dividends paid $1,500
Telephone expense paid $220 ($2,520)
Cash, June 30 $29,280
Conclusion :
The balance of Cash at June 30 is $29,280
A coffee shop buys 2000 bags of their most popular coffee beans each month. The cost of ordering and receiving shipments is $12 per order. Accounting estimates annual carrying costs are $3.60. The supplier lead time is 8 operating days. The shop operates 240 days per year. Each order is received from the supplier in a single delivery. There are no quantity discounts.
Required:
a. What quantity should the shop order with each order?
b. How many times per year will the shop order?
c. How many operating days will elapse between two consecutive orders?
d. What is the reorder point if the company wishes to carry a safety stock of 10 bags?
e. What is the store's minimum total annual cost of placing orders & carrying inventory?
Solution :
The optimal order quantity, EOQ = [tex]$\sqrt{\frac{2 \times \text{demand}\times \text{ordering cost}}{\text{holding cost}}}$[/tex]
EOQ = [tex]$\sqrt{\frac{2 \times 2000 \times 12}{3.6}}$[/tex]
= 115.47
The expected number of orders = [tex]$\frac{\text{demand}}{EOQ}$[/tex]
[tex]$=\frac{2000}{115.47}$[/tex]
= 17.32
The daily demand = demand / number of working days
[tex]$=\frac{2000}{240}$[/tex]
= 8.33
The time between the orders = EOQ / daily demand
[tex]$=\frac{115.47}{8.33}$[/tex]
= 13.86 days
ROP = ( Daily demand x lead time ) + safety stock
[tex]$=(8.33 \times 8)+10$[/tex]
= 76.64
The annual holding cost = [tex]$\frac{EOQ}{2} \times \text{holding cost}$[/tex]
[tex]$=\frac{115.47}{2} \times 3.6$[/tex]
= 207.85
The annual ordering cost = [tex]$\frac{\text{demand}}{EOQ} \times \text{ordering cost}$[/tex]
[tex]$=\frac{2000}{115.47} \times 12$[/tex]
= 207.85
So the total inventory cost = annual holding cost + annual ordering cost
= 207.85 + 207.85
= 415.7
Consumer Choice and Demand:
Suppose Karen is planning a trip to Hawaii. Her research indicates that the average price of a hotel room is $250 per night. Karen calls one hotel and they tell her that they are offering a special rate for rooms on the thirteenth floor. Karen is deeply superstitious and knows that staying on the thirteenth floor will cause her to experience negative utility. What is the maximum amount that Karen should pay for a room on the thirteenth floor? Now suppose that Karen books a room at a different hotel, but upon checking in they tell her there are only rooms available on the thirteenth floor. She paid $250 a night for the room and it is non-refundable. However, there is a hotel across the street where she can pay for a room on the tenth floor.
Answer:
She can pay a maximum of $212.50
Explanation:
Average price for hotel room is $250 per night
The hotel is offering a discount of 15% on the hotel room price.
If Karen chooses a room at thirteenth floor she can only pay up to $212 for a room per night.
When Karen has paid $250 for a hotel room she gets to know that there is no availability of a room on the floors below thirteenth floor. The price is non refundable. She can ask the hotel for any extra services which can compensate her stay at thirteenth floor.
explain root mean square speed in the context of gas laws
Answer:
The root-mean-square speed is the measure of the speed of particles in a gas, defined as the square root of the average velocity-squared of the molecules in a gas. ... The root-mean-square speed takes into account both molecular weight and temperature, two factors that directly affect the kinetic energy of a material.
Pet business examples
Hello mate... here's the answer.,...
Answer:
*There are many pet business examples but the few I know are these:- *pet sitting,pet walking , training the dog,pet bakery if u like my answer thank them....
A gourmet coffee shop in downtown Oakland is open 200 days a year and sells an average of 75 pounds of Kona coffee beans a day. Demand can be assumed to be distributed normally with a standard deviation of 15 pounds per day. After ordering (fixed cost = $16/order), beans are always shipped from Hawaii within exactly 4 days. Per-pound annual holding costs for the beans are $4.6. What is the EOQ for Kona coffee beans?
Answer:
EOQ for Kona coffee beans is 323 pounds
Explanation:
Economic Order Quantity (EOQ) is calculated to determine the optimal order quantity for business in order minimise their costs such as warehousing, overstocking and logistics cost. It is calculated using the following formulae:
EOQ = √[(2(setup costs)(demand rate))] / holding costs
Where demand rate is the demand, a company receives for a product each year. In this case the shop opens 200 days a year and sells average 75 pounds of coffee beans a day. Which in total is 15,000 pounds of coffee beans in a year. This is the annual demand for Kona Coffee beans.
The Setup costs also referred to as the Order Cost, is the cost of order per purchase which includes the shipping and handling cost. This is given as $16/order.
Holding cost also referred to as the carrying cost, is the cost for holding the inventory. In the given question, the holding cost is $4.6 per pound.
EOQ = √{(2) (16) (15,000)} / 4.6
EOQ = 323 pounds