Answer: 2.8 years
Explanation:
Assume that the number of years it will take for both alternatives to be equal is "t". The breakeven point can be found by equating the fixed cost formulas of both alternatives.
First alternative:
= 1,000 + (1.50 * 5,000 units) * t
Second alternative:
= 15,000 + (0.5 * 5,000) * t
1,000 + 7,500t = 15,000 + 2,500t
7,500t - 2,500t = 15,000 - 1,000
5,000t = 14,000
t = 14,000 / 5,000
t = 2.8 years
3. At the beginning of trading on April 20, an open-end mutual fund with 7,000 shares outstanding owned 4,000 shares of Allstate and 6,000 shares of The Hartford. During the day, an investor bought 150 shares of the mutual fund. The fund manager bought 140 shares of Allstate with the proceeds from the sale of the mutual fund shares. At the end of trading on April 20, Allstate was selling for $125.10 and The Hartford was selling for $68.35. What was the mutual fund's net asset value (NAV) at the end of trading on April 20
Answer:
$129.79
Explanation:
Assets of mutual funds
Shares of Allstate = Total Shares * Selling Price
Shares of Allstate = [4000 + 140] * $125.10
Shares of Allstate = $517,914.
Shares of Hartford = Total Shares * Selling Price
Shares of Hartford = 6000 * $68.35
Shares of Hartford = $410,100.
Net Asset Value = Shares of Allstate + Shares of Hartford
Net Asset Value = $517,914 + $410,100
Net Asset Value = $928,014
Numbers of shares outstanding = 7,000 + 150
Numbers of shares outstanding = 7,150
Net Asset Value per Share = Net Asset Value / Numbers of shares outstanding
Net Asset Value per Share = $928,014/7,150
Net Asset Value per Share = $129.79
So, the mutual fund's net asset value (NAV) at the end of trading on April 20 is $129.79.
razell Corporation offers a two-year warranty on its products. The warranty program was expected to cost Brazell 4% of net sales. Net sales in 2020 were $201 million. Fifteen percent of the units sold were returned in 2020 and repaired or replaced at a cost of $5.00 million. The amount of warranty expense on Brazell's 2020 income statement is:
Answer:
$8,040,000
Explanation:
Net sales made under warranty in 2020 = $201 million
Warranty Cost = 4%
Calculation of Warranty expense on Brazell's 2020 income statement:
= Net sales made under warranty in 2020 * Warranty Cost
= $201 million * 4%
= $8,040,000
So, the amount of warranty expense on Brazell's 2020 income statement is $8,040,000.
An asset was purchased for $12,000. The asset's estimated useful life was 5 years and its residual value was $2,000. Straight-line depreciation was used. How much gain or loss is reported if the asset is sold for $400 at the end of the fifth year
Answer:
$1,600 loss
Explanation:
Profit = Proceeds - Carrying Amount
where,
Carrying Amount = Cost - Accumulated depreciation
Accumulated depreciation calculation :
Note the Company uses straight line method.
Depreciation expense = (Cost - Residual) ÷ Estimated Useful Life
therefore,
Depreciation expense = ($12,000 - $2,000) ÷ 5
= $2,000
Accumulated depreciation :
At the end of fifth year we would have used the asset for 5 years.
Accumulated depreciation is the total of depreciation after 5 years.
This would be $10,000 ($2,000 x 5)
thus,
Carrying Amount = $12,000 - $10,000 = $2,000
therefore
Profit = $400 - $2,000
= - $1,600
Under the ________ leadership style, decision-making power is centralized in the leader. Leaders do not entertain any suggestions or initiatives from subordinates. The ______ management is effective for quick decision making but is generally not successful in fostering employee engagement or maintaining worker satisfaction.
Answer:
Autocratic; autocratic.
Explanation:
A leader can be defined as an individual who is saddled with the responsibility of controlling, managing and maintaining a group of people under him or her.
Some types of power expressed by leaders are referent power, coercive, etc.
An autocratic leadership style accords a centralized decision-making power to the leader. Thus, they do not have to entertain any suggestions or initiatives from their subordinates.
Furthermore, this leadership style is very much effective for making decisions quickly but it's generally not successful in facilitating or enhancing employee engagement with management or maintaining worker satisfaction.
Consumer mobility refers to the idea that consumers like to find the same products everywhere. An example of a company that sells products everywhere in the world because its customers are all over the world is:
Group of answer choices.
a. McDonald's Restaurants.
b. Intercontinental Hotels.
c. Fuji Film.
d. All of the above
e. None of the above
Answer:
d. All of the above
Explanation:
A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.
Consumer mobility can be defined as an idea or situation in which consumers of goods and services like to find the same products they have interest in everywhere i.e across the world.
In this context, some example of a company that sells its products everywhere in the world due to the fact that its customers are found all over the world are: McDonald's Restaurants, Intercontinental Hotels, Apple Inc., Microsoft Inc., and Fuji Film.
During the past year, Arther Anderson Services paid $360,800 in interest along with $48,000 in dividends. The company issued $230,000 of stock and $200,000 of new debt. The company reduced the balance due on the old debt by $225,000. What is the amount of the cash flow to creditors
Answer: $385800
Explanation:
The amount of the cash flow to creditors will be calculated thus:
Begining total liabilities = $225000
Ending total liabilities = $200000
Interest = $360800
Cash flow to creditors will be:
= Begining total liabilities - Ending total liabilities + Interest
= $225000 - $200000 + $360800
= $385800
Tranquility, Inc. has common shares with a price of $18.37 per share. The firm paid a dividend of $1.50 yesterday. If dividends are expected to grow at 9 percent for three years and then at 2 percent thereafter, what is the implied cost of common equity capital for Tranquility
Answer:
11.9981%( approx. 12.00% when rounded to 2 decimal places)
Explanation:
Based on the fact that the current share price is the present value of future dividends and the terminal value of dividends beyond year 3, we can determine the implied cost of common equity capital for Tranquility using the dividend discount model as shown thus:
Current dividend=$1.50
Years 1-3, dividend grows at 9% each year
Year 1 dividend=$1.50*(1+9%)=$1.635
Year 2 dividend=$1.635*(1+9%)=$1.78215
Year 3 dividend=$1.78215*(1+9%)=$1.942544
Terminal value=Year 3 dividend*(1+terminal growth rate)/(cost of equity-terminal growth rate)
terminal growth rate=2%
cost of equity is unknown, let us assume it is K
Terminal value=$1.942544*(1+2%)/K-2%
Terminal value=$1.981395/K-0.02
share price=$1.635/(1+K)^1+$1.78215/(1+K)^2+$1.942544/(1+K)^3+$1.981395/(K-0.02)/(1+K)^3
we need the value of K that gives the share price as $18.37
let us try try 11%
share price=$1.635/(1+11%)^1+$1.78215/(1+11%)^2+$1.942544/(1+11%)^3+$1.981395/(11%-0.02)/(1+11%)^3
share price=$20.44(close to $18.37, not exact)
After series of trials, I got 11.9981%
share price=$1.635/(1+11.9981%)^1+$1.78215/(1+11.9981%)^2+$1.942544/(1+11.9981%)^3+$1.981395/(11.9981%-0.02)/(1+11.9981%)^3
share price=$18.37
This year Andrews achieved an ROE of 30.2%. Suppose management takes measures that increase Asset turnover (Sales/Total Assets) next year. Assuming Sales, Profits, and financial leverage remain the same, what effect would you expect this action to have on Andrews's ROE
Answer:
The answer is " Andrews ROE increases."
Explanation:
Please find the complete question in the attached file.
Using formula:
[tex]\text{ROE = Profit Margin} (\frac{Profit}{Sales}) \times \text{Total Asset Turnover} (\frac{Sales}{Assets}) \times \text{Equity Multiplier} (\frac{Assets}{Equity})[/tex]
As total asset sales (sales/assets) decline whereas other items remain constant, ROE decreases. Or we could assume that growth of asset turnover would result in increased ROE, culminating in much more sales per unit of asset held by the firm.
Nathan Akpan is planning to invest in a seven-year bond that pays annual coupons at a rate of 7 percent. It is currently selling at $927.23. What is the current market yield on this bond
Answer:
Cost of debt= 8.34%
Explanation:
The yield to maturity to Maturity can be used to work out the cost of debt using the formula below:
YM =( C + F-P/n) ÷ ( 1/2× (F+P))
C- annual coupon,
F- face value ,
P- current price,
n- number of years to maturity
YM - Yield to maturity
C- 7%× 1000 =70 , P= 927.23, F- 1000
AYM = 70 + (1000-927.23)/7÷ 1/2× (1000+927.23)
= 80.39571429 ÷ 963.615
= Yield to maturity = 8.34%
Cost of debt= 8.34%
The correct statement will be that the current market yield on such a bond having an annual coupon rate of seven percent and selling for $927.23 will be around 8.34%.
Calculation of market yield can be done by applying the values available in the information given above to the appropriate formula for calculation of market yield.
Market yieldThe computation of market yield can be done with the help of the following formula,[tex]\rm Market\ Yield= \dfrac{Coupon\ rate\ + Face\ Value- Current\ Price}{\dfrac{1}{2}\ x\ Face\ value\ + Current\ Price}\\ [/tex]Applying the available values to the given formula, [tex]\rm Market\ Yield= \dfrac{\dfrac{(0.07\ x\ 1000)}{7}}{\dfrac{1}{2}\ x\ (1000+927.23)}\\ \\\\ \rm Market\ Yield= \dfrac{80.39}{963.61}\\ \\\\ \rm Market\ Yield= 0.0834[/tex]So, the cost of debt is computed as 8.34%.Hence, the market yield of the bond with 7% coupon rate and market current price of $927.23 is 8.34%.
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Bustillo Incorporated is working on its cash budget for March. The budgeted beginning cash balance is $54,000. Budgeted cash receipts total $138,000 and budgeted cash disbursements total $133,000. The desired ending cash balance is $78,000. To attain its desired ending cash balance for March, the company needs to borrow:____.
Answer:
$19,000
Explanation:
Calculation to determine To attain its desired ending cash balance for March, the company needs to borrow
First step is to calculate the Actual ending cash balance
Using this formula
Actual ending cash balance = Beginning cash balance + Cash receipts −Cash disbursements
Let plug in the formula
Actual ending cash balance= $54,000 + $138,000 −$133,000
Actual ending cash balance= $59,000
Now let calculate the Amount borrowed
Using this formula
Amount borrowed = Desired ending cash balance −Actual ending cash balance
Let plug in the formula
Amount borrowed = $78,000 −$59,000
Amount borrowed= $19,000
Therefore To attain its desired ending cash balance for March, the company needs to borrow $19,000
When total imports of exceed export, then the balance is to be
Answer:
Negative
Explanation:
which of the following would be the most effective email subject line
2010 budget
Talking ‘bout the big bucks
Input needed for 2010 budget planning
Projected expenses
The title of “input needed for 2010 budget” will be an appropriate subject for composing an email.
How to compose an email?The subject is the first and foremost part of composing an email that can also be considered as a title for the contents and main body of the email. It gives an idea regarding what are the contents of the email matter.
Hence, option C holds true regarding composing the subject of the email.
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Potts company uses a job costing system and had the following data available for 20X9.
Cost of raw materials purchased on account $ 75,000
Cost of raw materials requisitioned(includes
$2,000 of indirect materials) $ 43,000
Direct labor cost incurred $ 75,000
Manufacturing overhead costs incurred $ 95,000
Cost of goods completed $ 226,750
Cost of goods sold $ 138,000
Raw materials inventory, Jan. 1, 20X9 $ 15,000
Work in process inventory, Jan. 1, 20X9 $ 32,000
Finished goods inventory, Jan. 1, 20X9 $ 31,000
Pre-determined manufacturing overhead rate 125% (as a percent of direct labor cost)
Refer to Case 1.
The journal entry to record the total materials placed into production would include which of the following?
A) debit to manufacturing overhead for $41,000
B) debit to work in process for $43,000
C) debit to work in process for $41,000
D) credit to manufacturing overhead for $2.000
Refer to Case 2.
The journal entry to record the actual manufacturing overhead costs incurred would include which of the following?
A) debit to manufacturing overhead $95,000
B) debit to work in process for 93.750
B) credit to work in process $95,000
C) credit to manufacturing overhead $93,750
Answer:
1. C) debit to work in process for $41,000
2. A) debit to manufacturing overhead $95,000
Explanation:
1. The materials that were placed into production are:
= Cost of raw materials requisitioned - indirect materials
= 43,000 - 2,000
= $41,000
This will be debited to the Work in Progress as it is a direct cost.
2. Manufacturing overhead for the period is $95,000 and this will go to the manufacturing overhead account as a debit because it is an expense.
Machine A costs $850,000 and would produce cash flows of $220,000 per year for the first two years, $350,000 per year for the next two years, and $150,000 in the final year. Machine B costs $650,000 and would produce cash flows of $250,000 per year for the first two years, $200,000 the following year, $150,000 in its fourth year, and $140,000 in its final year. Your required return is 11%. What is the IRR of buying machine A?
Answer:
The answer is "15.61%"
Explanation:
Please find the solution file in the attachment.
Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for $33 per pound and costs $29 per pound to produce. Product C would sell for $56 per pound and would require an additional cost of $24 per pound to produce. What is the differential cost of producing Product C
Answer:
Differential cost Product C= $24 per pound
Explanation:
Giving the following information:
Product C would sell for $56 per pound and would require an additional cost of $24 per pound to produce.
The first cost of product B will remain constant whether Product C is made or not. Therefore, it is not an incremental cost.
Differential cost= incremental cost
Differential cost Product C= $24 per pound
Wenjing purchases a bond for $2,000 with 12 remaining $40 quarterly coupon payments. The bond broker who sells her the bond reassures her that she will earn a return of 3% per quarter but does not disclose the bond's par value. What par value would result in the return the bond broker promises
Answer:
Wenjing
The par value that would result in the return the bond broker promises is:
= $1,333.
Explanation:
a) Data and Calculations:
Bond amount paid = $2,000
Quarterly coupon payments = $40
Remaining coupon payments = 12
Bond maturity period = 3 years (12/4)
Promised returns per quarter = 3%
Par value of bond = Quarterly premium/Quarterly returns in percentage = $1,333 ($40/0.03)
Check: 3% of $1,333 = $40
This implies that the bond's annual interest rate = 12% (3% * 4)
To discourage producing for inventory, management can ________.
A) discourage using nonfinancial measures such as units in ending inventory compared to units in sales
B) evaluate performance over a quarterly period rather than a single year
C) incorporate a carrying charge for inventory in the internal accounting system
D) implement absorption costing across all departments
Answer:
incorporate a carrying charge for inventory in the internal accounting system
Explanation:
Inventory
This is simply known as the stock of items that is kept aside by an organization to meet internal or external customer demand. It type s includes: Raw Material, work in progress (WIP), maintenance/repair/operating supply (MRO), finished good etc.
The reasons organizations holds Inventory includes
1. Meet anticipated customer demand
2. To protect against stockouts
3. Take advantage of economic order cycles
4. Maintain independence of operations
5. Guard against price increases, etc.
The objective of inventory control is to handle overstocking or Understocking and also a major challenge is to maintain a good balance between inventory investment and customer service.
Which government agency oversees &
provides information on identity theft?
O Department of the Treasury
O Federal Communications Commission
O Major League Baseball
O Federal Trade Commission
The advantage of using a safe deposit box at a financial institution is that it is protected by the financial institution’s security system, which usually provides greater protection than the security systems of a private home. Group of answer choices False True
Answer:
True
Explanation:
The biggest advantage of keeping deposits at financial institutions is that they receive more protection in comparison to the security systems of a private home. Hence, the given statement is true.
What is a financial institution?Also known as the banking institutions, financial institutions or FI is a kind of business entity that provides and deals in various types of financial monetary transactions. Basically, a financial institution is a company that deals in the activities such as deposits, loans, investments, and currency exchange. The customers of these institutions are the individuals and businesses who need them.
There are some common types of financial institutions, they are commercial banks, brokerage firms, insurance companies, and investment banks. In the given types of institutions, there are sub-categories also. They are central banks, retail and commercial banks, internet banks, credit unions, savings, and loans associations, investment banks, and many more.
Thus, the given statement is correct.
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A company with 100,000 authorized shares of $7 par common stock issued 46,000 shares at $16. Subsequently, the company declared a 2% stock dividend on a date when the market price was $30 per share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend
Answer:
$27,600
Explanation:
Amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend:
= Shares issued * Percentage of stock dividend * Market price
= 46,000 shares * 2% * $30
= 46000*0.02*$30
= $27,600
Russell Container Corporation has a $1,000 par value bonds outstanding with 30 years to maturity. The bind carries an annual interest payment of $105 and is currently selling for $880 per bond. Russell Corp. is in a 40 percent tax bracket. The firm wishes to know what the after-tax cost of a new bind issue is likely to be. The yield to maturity on the new issue will be the same as the yield to maturity on the old issue because the risk and maturity date will be similar.
a) Compute the yield to maturity on the old issue and use this as the yield for the new issue.
b) Make the appropriate tax adjustment to determine the after-tax cost of debt.
Answer: here is the answer
Explanation: 1gtv/76hg
Kate fell asleep with a candle lit by her bed. She was sleeping on a mattress manufactured by the United Mattress Co. The candle fell from her nightstand and dropped onto the mattress where she slept. The mattress caught fire and Kate was severely burned. The mattress was a cheap no-frills model. It had been treated with some chemical additives to make it partially flame-resistant, but only to the extent of slowing the speed at which the fabric caught fire. It is possible to make mattresses fully flame-proof, but the process is an expensive one, so expensive that it would have taken the price of this mattress out of the "budget" range. The mattress bore a label indicating "flame resistant." During a discussion with the sales manager Kate asked about whether it was safe, and indicated she sometimes kept a candle by the bed. The sales manager said it was "the best mattress on the market." Kate wants to file a lawsuit against United Mattress Co. Can Kate sue based on negligence? Can Kate sue based on breach of warranty?
Answer:
1. Kate cannot sue United based on negligence, which is the duty of care. United was not negligent and owed no duty of care in this instance to Kate.
2. Kate can rather sue based on a breach of warranty. There was a warranty (a written specific guarantee) on the mattress label, which indicated that it was "flame resistant."
Explanation:
A warranty, in this case, involves the written statement or claim by United Mattress Co. that the mattress was "flame resistant." United could have limited its liability for breach of a warranty by indicating clearly that the mattress could only slow the flaming process instead of just resisting flame. By making the onerous claim that the mattress was "flame resistant," United was exposing itself to liability claims by Kate, who was clearly negligent in putting a candle near her mattress while sleeping.
Retrenching to a narrower diversification base Group of answer choices is a strategy best reserved for companies in poor financial shape. is directed at improving long-term performance by building stronger positions in a smaller number of core businesses. is an attractive strategy option for revamping a diverse business lineup that lacks strong cross-business financial fit. is usually the most attractive long-run strategy for a broadly diversified company confronted with recession, high interest rates, mounting competitive pressures in several of its businesses, and sluggish growth. is sometimes an attractive option for deepening a diversified company's technological expertise and supporting a faster rate of product innovation.
Answer:
is directed at improving long-term performance by building stronger positions in a smaller number of core businesses.
Explanation:
Retrenching to narrower positions is a strategy that can be helpful to build strong market positions in a few core business areas before diversifying the firm's portfolio of goods and services even more.
This strategy is recommended to smaller firms, firms that are not in financial great shape, or firms that have tried to take a position in many markets at the same time, and have had a hard time to adapt to some of them.
(a) "Fostering a strong credit reputation is an important policy a company should
have in the management of its trade payables". Discuss this statement.
Explanation:
Question : "Fostering a strong credit reputation is an important policy a company should have in the management of its trade payables". Discuss this statement.
Solution :
By saying the statement " fostering a strong credit reputation" means to encouraging a policy for the development of reputation regarding the payment of credit a company is having against trade transaction.
It states that our company can make regular payments against credit which is a good way of establishing and maintaining valuable customer as in the today's market customer's satisfaction is prime objective.
A good trade credit history can mean suppliers treat you as a preferred buyer which in turn results into profit.
Trade credit can do just for many businesses as it not only smooths out the cash flow issues the business might have but also helps in building a strong credit history to show to the lenders.
Supplier can build high credit scores by filing positive report to the credit score bureaus which ultimately results in enhancing the credit scores in the eyes of financial lenders . This is turn helps the company to get easy short term finances.
So, it can be said it is an important policy a company should have for maintaining its trade payables.
a. Cash production costs are budgeted at $6 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses (all paid in cash) amount to $60,000 per month. The accounts payable balance on March 31 totals $96,000, all of which will be paid in April. Prepare a schedule for each month showing budgeted cash disbursements for Edwards Company. b. Assume that all units will be sold on account for $15 each. Cash collections from sales are budgeted at 60% in the month of sale, 30% in the month following the month of sale and the remaining 10% in the second month following the month of sale. Accounts receivable on March 31 totaled $255,000 $(45,000 from February's sales and the remainder from March.) Prepare a schedule for each month showing budgeted cash receipts for Edwards Company.
Answer:
150,000
Explanation:
why did the duck cross the road?
will mark brainiest for right answer!
think hard
Answer:
because it was the chicken's day off
Explanation:
Westland College uses a 10% discount rate and the total cost approach to capital budgeting analysis. Both alternatives are expected to have a useful life of eight years. The working capital would be released for use elsewhere when the project is completed. The net present value of the alternative of overhauling the present system is closest to:
Answer: hello your question is incomplete attached below is the complete question
answer : $(1,236,495). ( A )
Explanation:
Attached below is the Calculation of the net present value of the alternative of overhauling the present system
The value of Net present value = ∑ present value
= -300000 - 200000 - 906950 + 77055 + 93400
= - 1,236,495
what are the examples of veriable costs
Answer:
Common examples of variable costs include costs of goods sold (COGS), raw materials and inputs to production, packaging, wages and commissions, and certain utilities (for example, electricity or gas that increases with production capacity).
Explanation:
A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 0 1 2 3 4 Project S -$1,000 $895.10 $240 $5 $15 Project L -$1,000 $10 $260 $420 $749.71 The company's WACC is 9.0%. What is the IRR of the better project
Answer:
12.3%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
project S
Cash flow in year 0 = -$1,000
Cash flow in year 1 = $895.10
Cash flow in year 2 = $240
Cash flow in year 3 =$5
Cash flow in year 4 =$15
IRR = 12.3%
Project L
Cash flow in year 0 = -$1,000
Cash flow in year 1 = 10
Cash flow in year 2 = $260
Cash flow in year 3 =$420
Cash flow in year 4 = 749.71
IRR = 11.7
S is more profitable because the IRR is higher
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Direct Method Question (2026, Current Period): 2026 2025 A/R 49,000 23,000 Prepaid Insurance 15,000 3,000 Salaries Payable 13,000 5,000 Sales 125,000 63,000 Insurance Expense 20,000 12,000 Salaries Expense 57,000 21,000 What is the second number in the cash event (direct method)
Answer:
$49,000
Explanation:
Missing"Cash Event => Cash Paid for Salaries Second Number => _____ __?___, ______ ______ ______"
Cash paid for salaries (using direct method)
Particulars Amount
Opening salaries payable $5,000
Add: Salaries expense for the current year $57,000
Less: Closing salaries payable $13,000
Cash paid for salaries during current year $49,000