Answer:
the factors of production
Answer:
the factors of production
Explanation:
Since a cell phone is a private good, if Neha chooses to spend $300 on a cell phone, Neha would get $300 of benefit from the cell phone and Teresa wouldn't receive any benefit from Neha's choice. If Neha still spends $300 on a cell phone and Teresa chooses to contribute $300 to the public park, Neha would still receive the $270 of benefit from Teresa's generosity. In other words, if Neha decides to keep the $300 for a cell phone and Teresa decides to contribute the $300 to the public project, then Neha would receive a total benefit of $300 $270
Answer:
In other words, if Neha decides to keep the $300 for a cell phone and Teresa decides to contribute the $300 to the public project, then Neha would receive a total benefit of:
$570.
Explanation:
Neha has, in this situation, maximized his benefits to the detriment of the public good. This is an illustration of the tragedy of the commons. The tragedy of the common is an economic problem that explains the loss that the society incurs when some persons like Neha neglect to contribute to the common good because they are solely concentrated on pursuing their individual goals for personal gains.
The foundation of good performance management is and choosing the best method(s) for measuring it. Use your knowledge of the balanced scorecard to answer the following question. The balanced scorecard supports four key components of organizational success. Three of the components are customer perceptions, financial performance, and internal business processes. What is the fourth
Answer:
4th is learning and growth
Explanation:
The balanced scorecard creates a balance in the company through the strategic goals of the organization and they represent four areas that have been identified by the Norton and Kaplan. They are financial perspective, internal business processes, learning and growth along customer precipitation. The fourth component of learning and growth signifies that the company needs to evolve constantly and needs to grow in order to survive.RapidMeal Co. has two restaurants that are open 24 hours per day. Fixed costs for the two restaurants together totals $450,000 per year. Service varies from a cup of coffee to full meals. The average sales check for each customer is $8.00. The average cost of food and other variable costs for each customer is $3.20. The income tax rate is 30%. Target net income is $105,000.
a. Determine the revenues needed to obtain the target net income.
b. How many sales checks are needed to (a) earn a net income of $105,000 and (b) to break even?
c. Determine net income if the number of sales checks is 150,000.
Answer:
a) 1000000 , b) 125000 & 93750 , c) 270000
Explanation:
Target Net profit = 105000
Let profit before tax be p
So, p - 30%p = 105000
0.70p = 105000
p = 150000
Total Net profit = Total revenue - Total cost
Average net profit = Average revenue - average cost. Let no. of customers, or sales checks =x
Total profit / x = 8 - (450000/ x + 3.2)
150000/ x = 8 - 3.2 - 450000/x
150000/x = 4.8 - 450000/x
x (no. of customers needed) = 125000 [b]
a] Total revenue needed = Average revenue x no. of customers needed
= 125000 x 8 = 1000000
b] Customers needed for break even {where TR = TC}
8x = 450000 + 3.2x
x = 93750
c] Net Income if sales checks is 150000 = TR - TC
= 150000 (8) - 450000 - 3.2 (150000) = 1200000 - 450000 - 480000
= 270000
A bank receives a deposit for $50,000. If the bank has a 10 percent reserve
requirement, approximately how much money could this initial deposit
eventually add to the economy?
Answer:
$500,000
Explanation:
ap ex
A bank having a 10 percent reserve requirement will add $500,000 to the economy on receiving $50,000 as a initial deposit.
Reserve requirements are the sums of money that a bank must have in reserve in order to cover liabilities in the event of an unexpected withdrawal. Reserve requirements are a technique used by the central bank to influence interest rates by increasing or decreasing the money supply in the economy.
According to the question, reserve requirement is 10%, and the initial deposit is $50,000.
Therefore, $50,000+$50,000×10/100 will result in the money that could be added to the economy, which is $500,000.
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The purposes of managerial accounting are to provide useful information to aid in:____.a. reviewing past activities.b. determining costs of products and services.c. determining costs of employee wages and salaries.d. comparing actual to planned results.
Answer:
The purposes of managerial accounting are to provide useful information to aid in:____.
d. comparing actual to planned results.
Explanation:
Managerial accounting identifies, measures, analyzes, and communicates financial information to help management achieve organizational goals. It provides data for planning, organizing, directing, and controlling an organization. In addition to identifying past information trends, it is able to make future predictions that aid management decision-making.
Orchid Biotech Company is evaluating several development projects for experimental drugs. Although the cash flows are difficult to forecast, the company has come up with the following estimates of the initial capital requirements and NPVs for the projects. Given a wide variety of staffing needs, the company has also estimated the number of research scientists required for each development project (all cost values are given in millions of dollars).
Project Number Initial Capital Number of Research Scientists NPV
I $10 2 $10.1
II 15 3 19.0
III 15 4 22.0
IV 20 3 25.0
V 30 12 60.2
Required:
a. Suppose that Orchid has a total capital budget of $60 million. Calculate the profitability index for each project. How should Orchid prioritize these projects?
b. Suppose that Orchid currently has 12 research scientists and does not anticipate being able to hire more in the near future. How should Orchid prioritize these projects?
Answer:
I. 2.01
II. 2.27
III. 2.47
IV. 2.25
V. 3.01
Order of priority = V, III and II
b. Order of priority = IV, II, III, I, V
Explanation:
profitability index = 1 + (NPV / Initial investment)
I. 1 + ($10.1 / $10) = 2.01
II. 1 + (19 / 15) = 2.27
III. 1 + (22/15) = 2.47
IV. 1 + (25/20) = 2.25
V. 1 + (60.2 / 30) = 3.01
If the firm has a total capital budget of $60 million, it should only choose its most profitable projects within the budget
The most profitable is project V with a cost of $30 million. Then project III with a cost of $15 million. Then project II with a cost of $15 million.
Order of priority = V, III and II
b. to determine order of priority, divide NPV / number of research assistant
1. 10.1 / 2 = 5.05
2. 19 / 3 =6.3
III. 22 / 4 = 5.5
IV. 25 / 3 = 8.3
V. 60.2 / 12 = 5.02
Order of priority = IV, II, III, I, V
In year 1, Kelley estimates bad debt expense of $10,000 for financial reporting purposes. The amount of bad debts deductible on the tax return was $2,000. The difference will be deducted on the tax return in the following year. The income tax rate is 40%. What is the balance in the deferred tax asset account at the end of year 1
Answer: $3,200
Explanation:
The following information can be deduced from the question:
Bad debt expense = $10,000
Bad debts deductible on tax return = $2000
Income tax rate = 40%
Therefore, the balance in the deferred tax asset account at the end of year 1 will be calculated thus:
= 40% x ($10,000 - $2,000)
= 0.4 × $8000
= $3,200
Perhaps you think it will be easy to make responsible decisions regarding auto loans in your future . But , decision making can be tricky when you're considering your dream car. Follow the directions on the sheet to complete the activity
Answer:
From this worksheet, I have noticed that following directions to receive your dream car is tricky as well as fun
;)
Given Table 12-6 below, fill in the values for saving. Assume taxes = $800.
Table 12-6
National Income
$11,400
11,800
12,200
12,600
Consumption
$7,500
7,800
8,100
8,400
What are the savings .
Answer:
Savings = National Income - Consumption - Taxes
Explanation:
Savings are the part of income that is not spent or paid in taxes. So it can be calculated by subtraction consumption from the national income.
National Income (Y) = C+ T + S
Therefore,
S= Y - C - T
That is the part of income that is not spent or paid in taxes is called savings.
National Income Consumption Taxes Savings
$11,400 $7,500 $800 $3,100
$11,800 $7,800 $800 $3,200
$12,200 $8,100 $800 $3,300
$12,600 $8,400 $800 $3,400
Pharma Company produces various medicines in capsule form. At the beginning of the month of March, it had 5,000 units that were 40% complete. These were assigned costs of $150,000. During the month, it completed 55,000 units and has 20,000 units that are 50% completed. It had production costs during the month of $600,000. Complete all five steps of a production report using the weighted average method. Complete all five steps of a production report using the FIFO method.
Answer:
Pharma Company
1. Weighted Average method:
Weighted Average Method:
Equivalent units of production:
Started and completed this period 55,000
Ending WIP 10,000
Total equivalent unit produced = 65,000
Total cost of production:
Beginning WIP = $150,000
Current period 600,000
Total cost = $750,000
Cost per equivalent unit = $11.54 ($750,000/65,000)
Cost assigned to:
Units completed = 55,000 * $11.5385 = $634,617
Ending WIP = 10,000 * $11.5385 = 115,385
Total cost of production = $750,002
Cost Reconciliation:
Beginning WIP = $150,000
Completed units 600,000
Total costs = $750,000
Ending WIP = 115,385
Cost assigned to
production 634,617
2. FIFO method:
Explanation:
a) Data and Calculations:
Units Completion % Cost
Beginning WIP = 5,000 2,000 (40%) $150,000
Current completion (WIP) 3,000 (60%)
Completed 55,000 55,000 (100%) 600,000
Ending WIP 20,000 10,000 (50%)
Weighted Average Method:
Equivalent units of production:
Beginning WIP 3,000
Started and completed this period 55,000
Ending WIP 10,000
Total equivalent unit produced = 68,000
Total cost of production:
Current period 600,000
Cost per equivalent unit = $8.82 ($600,000/68,000)
Cost assigned to:
Beginning WIP =
Units completed
Beginning WIP = $150,000
= 3,000 * $8.82 = $26,460
= 55,000 * $8.82 = 485,100
Ending WIP:
= 10,000 * $8.82 = 88,200
Total cost of production = $749,760
Cost Reconciliation:
Beginning WIP (40%) = $150,000
WIP completed (60%) 26,460
Completed units 485,100
Ending WIP = 88,200
Total cost = $749,760
2. In 2016; the cost of a market basket of goods was $2,000. In 2018, the cost of the same market basket of goods was
$2,100. Use the price index formula to calculate the price index for 2018 if 2016 is the base year. Show your work. 2
pts
Answer:
105
Explanation:
base year = 2016
cost of market basket of goods in base year = $2,000
CPI for base year = 100
year 2018
cost of market basket of goods in 2018 = $2,100
CPI for 2018 = (cost of basket of goods in 2018 / cost of basket of goods in base year) x 100 = ($2,100 / $2,000) x 100 = 105
Kaplan Consulting applies overhead to client accounts based on direct labor hours. For the month of October, the company estimated overhead costs to be $9,000 based on estimated direct labor hours of 1,000. The company actually incurred 900 direct labor hours and $7,200 of overhead. If Kaplan uses a normal costing system, how much overhead was applied in October
Answer:
the overhead applied is $8,100
Explanation:
The computation of the overhead applied is shown below:
But before that the predetermined overhead rate is
= $9,000 ÷ 1,000 direct labor hours
= $9 per direct labor hour
Now the applied overhead is
= 900 direct labor hours × $9
= $8,100
Hence, the overhead applied is $8,100
Sue and Andrew form SA general partnership. Each person receives an equal interest in the newly created partnership. Sue contributes $11,000 of cash and land with an FMV of $56,000. Her basis in the land is $21,000. Andrew contributes equipment with an FMV of $13,000 and a building with an FMV of $34,000. His basis in the equipment is $9,000, and his basis in the building is $21,000. How much gain must the SA general partnership recognize on the transfer of these assets from Sue and Andrew
Answer: $0
Explanation:
There is no gain to be recognized when assets are being transferred between living individuals or entities due to this falling under the Carryover basis.
This carryover basis of the asset will in general, be the same basis as the cost or basis of the asset.
There will therefore be a $0 gain to the SA General Partnership. Gains will be calculated if the partnership wants to dispose of the assets.
Doug and Sue Click file a joint tax return and decide to itemize their deductions. The Clicks' income for the year consists of $90,000 in salary, $2,000 interest income, and $800 long-term capital loss. The Clicks' expenses for the year consist of $1,500 investment interest expense. Assuming that the Clicks' marginal tax rate is 35 percent, what is the amount of their investment interest expense deduction for the year
Answer:
$1,500
Explanation:
Based on the information given we were told that the expenses for the year was the amount of $1,500 which represent the investment interest expense which simply means that the amount of their INVESTMENT INTEREST EXPENSE deduction for the year will be the amount of $1,500 which is INVESTMENT INTEREST EXPENSE amount.
Therefore the amount of their investment interest expense deduction for the year will be $1,500
Oak Ridge Steel Company has two departments, Casting and Rolling. In the Rolling Department, ingots from the Casting Department are rolled into steel sheet. The Rolling Department received 60,700 tons from the Casting Department. During July, the Rolling Department completed 74,500 tons, including 19,300 tons of work in process on July 1. The ending work in process inventory on July 31 was 5,500 tons.
Required:
How many tons were started and completed during July?
Answer:
1092749
Explanation:
the answer came by adding all the value of the equation
In 1974, the price level for Pacifica was 100, the price level for Atlantica was also 100, and in the foreign exchange market 1 Pacifica pound was equal to 1 Atlantica mark. In 2003, the price level in Pacifica had risen to 280 and the price level in Atlantica had risen to 360. a. According to PPP, what should the pound-mark exchange rate be in 2003
Answer: 0.78 pound mark exchange rate
Explanation:
The Purchasing power parity (PPP) is typically used to make comparison between the currencies of different countries' currencies and also used in comparing their standards of living.
According to PPP, the pound-mark exchange rate in 2003 will be calculated as:
= 280/360
= 0.78
The break-even point is the sales level at which a company: (Check all that apply.) Multiple select question. has a profit of $0. total sales equals total cost. incurs a loss. has a profit equal to fixed costs. contribution margin equals variable costs.
Answer:
has a profit of $0
Explanation:
Breakeven quantity are the number of units produced and sold at which net income is zero
Breakeven quantity = fixed cost / price – variable cost per unit
Breakeven price = (fixed cost / quantity sold) + variable price per unit
A borrower is interested in comparing the monthly payments on two otherwise equivalent 30 year FRMs. Both loans are for $100,000 and have a 7% interest rate. Loan 1 is fully amortizing, where as Loan 2 has negative amortization with a $120,000 balloon payment due at the end of the life of the loan. How much higher is the monthly payment on loan 1 versus loan 2
Answer:
The monthly payment in Loan 1 is higher than in loan 2 by:
(665.30 - 566.94) = $98.36
Explanation:
Solution:
Comparison of Loan 1 and Loan 2 in terms of monthly payments.
For the first loan, we have to calculate equal monthly payments with the following details:
Principal = $ 100,000,
Monthly Interest rate = 7/12 = 0.58% ,
Term = 360 months
Use the PV = C (1 - (1+r)-n ) / r ,
where PV = Principal, r = monthly rate, n = 360 and
find C (EMI) = $665.30
NOTE: (Excel function is used: PMT(rate, year, PV) formula for convenience)
For Loan 2, we have to understand a few things.
The original loan principal is $ 100,000,
but you are allowed to do a balloon payment of $ 120000 at the end of 30 years.
The present value of the Balloon payment can be deducted from the principal to find out the monthly cash payments to be done.
The monthly payments will of course be lower since a lump sum balloon payment is done at the end.
The calculation is similar to the above. In this scenario, the Monthly payment comes out to be $ 566.94
Hence,
The monthly payment in Loan 1 is higher than in loan 2 by:
(665.30 - 566.94) = $98.36
Appliance Apps has the following costs associated with its production and sale of devices that allow appliances to receive commands from cell phones. Beginning Inventory 0 Units Produced 25,000 Units Sold 20,000 Selling Price per Unit $144 Variable Sales and Administration Expenses $5 Fixed Sales and Administration Expenses $975,000 Direct Material Cost per Unit $25 Direct Labor Cost per Unit $11 Variable Manufacturing Overhead Cost per Unit $2 Fixed Manufacturing Overhead Cost per Month $977,500 Prepare an income statement under the absorption method. If an amount box does not require an entry, leave it blank.
Answer:
Appliance Apps
Income statement under the absorption method.
Sales $2,880,000
Less Cost of Sales
Beginning Inventory 0
Add Cost of Goods Manufactured $1,927,500
Less Ending Inventory ($385,500) ($1,542,000)
Gross Profit $1,338,800
Less Expenses
Variable Sales and Administration Expenses $100,000
Fixed Sales and Administration Expenses $975,000 ($1,075,000)
Net Income $263,000
Explanation:
Units in Ending Inventory
Beginning Inventory 0
Add Units Produced 25,000
Available for Sale 25,000
Less Units Sold 20,000
Ending Inventory 5,000
Absorption Cost calculations
Product Cost = $77.10
Cost of Goods Manufactured = $1,927,500
Ending Inventory = $385,500
four importance of Engineering
Explanation:
Engineering is a profession in which scientific knowledge and mathematics is used and experimented with to develop ways that benefit mankind, making it extremely important to society for several reasons.
Engineering encompasses a whole range of industries that could include on-site, practical construction work as well as evaluating safety systems from an office
You are comparing replacing the current lab, which has a cost function of 400,000 + 15*Volume, with an automated lab that has a cost function of 500,000 + 10*Volume. Doing so would reduce the error rate from 1.5 percent to 1 percent. Your volume is expected to be 45,000 tests per year.
a. You should keep the current lab because its fixed costs are smaller.
b. You should adopt the automated lab because its total costs and error rate are smaller.
c. You should keep the current lab because its total costs and error rate are about the same.
d. None of the above
Answer: b. You should adopt the automated lab because its total costs and error rate are smaller.
Explanation:
You should adopt the lab that gives the lowest cost and this is the automated lab because it will have a lower cost due to its lower error rate.
Cost with Automated lab = 500,000 + 10 * 45,000
= $950,000
Cost with current lab = 400,000 + 15 * 45,000
= $1,075,000
Automated lab has a lower cost for the expected volume so should be adopted.
what are the proffesional values
Answer:
The values include “service, access equality, respect, confidentiality and privacy, protection of intellectual property rights, literacy, technical literacy, stewardship, and professional and social obligations”
The Swenson Corporation has a standard costing system. The following data are available for June: Actual quantity of direct materials purchased 35,000 pounds Standard price of direct materials $4 per pound Material price variance $7,000 unfavorable Material quantity variance $4,200 favorable The actual price per pound of direct materials purchased in June is:
Answer:
Actual price= $4.2 per pound
Explanation:
Giving the following information:
Actual quantity of direct materials purchased 35,000 pounds
Standard price of direct materials $4 per pound
Material price variance $7,000 unfavorable
To calculate the actual price, we need to use the direct material price variance formula:
Direct material price variance= (standard price - actual price)*actual quantity
-7,000 = (4 - actual price)*35,000
-7,000= 140,000 - 35,000actual price
35,000actual price= 147,000
Actual price= $4.2 per pound
Assume the following information for Windsor Corp. Accounts receivable (beginning balance) $140,000 Allowance for doubtful accounts (beginning balance) 11,490 Net credit sales 938,000 Collections 915,000 Write-offs of accounts receivable 5,900 Collections of accounts previously written off 2,000 Uncollectible accounts are expected to be 7% of the ending balance in accounts receivable.Prepare the entries to record sales and collections during the period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer:
Windsor Corp.
Journal Entries:
Debit Accounts Receivable $938,000
Credit Sales Revenue $938,000
To record sales on account.
Debit Cash $915,000
Credit Accounts Receivable $915,000
To record cash collected from customers.
Debit Allowance for Doubtful Accounts $5,900
Credit Accounts Receivable $5,900
To record uncollectible accounts written off.
Debit Accounts Receivable $2,000
Credit Allowance for Doubtful Accounts $2,000
To reinstate previously written off accounts.
Debit Bad Debts Expenses $3,407
Credit Allowance for Doubtful Accounts $3,407
To record bad debts expense and bring the Allowance for doubtful accounts to a balance of $10,997, being 7% of the accounts receivable ending balance.
Explanation:
a) Data and Analysis:
T-accounts:
Accounts receivable
Accounts Titles Debit Credit
Beginning balance $140,000
Sales revenue 938,000
Cash $915,000
Allowance for doubtful a/cs 5,900
Allowance for
doubtful accounts 2,000
Cash 2,000
Balance 157,100
Totals $1,080,000 $1,080,000
Allowance for Doubtful Accounts:
Accounts Titles Debit Credit
Beginning balance $11,490
Accounts receivable 5,900
Accounts receivable 2,000
Bad Debts Expense 3,407
Balance 10,997
Totals $16,897 $16,897
Allowance = $10,997 (7% of $157,100)
Dr. Yuan opens a lab. The lab has an initial cost of $100,000. Expected net cash flow is $24,000 in the first year, growing by 15% per year. Net cash flow is revenue less expenses. Assume the lab has a 6 yr life and there is no scrap value for the lab.
Later that same year, Dr. Bhat opens a similar lab in the strip mall less than two miles away from Dr. Yuan. Dr. Yuan estimates her net cash flow in the first year will be considerably less than her initial estimate. She estimates it will be $16,000. All else equal, what happens to the NPV of Dr. Yuan’s lab?
a) The NPV decreases, but is still positive. Dr. Yuan can still expect a positive return on her investment.
b) The IRR decreases, but is still positive. Dr. Yuan can still expect a positive return on her investment.
c) The IRR decreases, and becomes negative. Dr. Yuan should expect a loss on this investment.
d) The IRR and the NPV decrease. Dr. Yuan can still expect a positive return on her investment.
Assume instead that Dr. Yuan forms a partnership with Dr. Bhat. They agree to share the $100,000 cost equally and to share the cash flow equally. Because of efficiency gains from longer operating hours, they expect the net cash flow to be $32,000 per year. Assume they expect net cash flow to grow at 15% per year. What is the consequence of the partnership to Dr. Yuan? Please compare the results to the original scenario described in question 13 (Dr. Yan opening the only lab in the area).
a) The NPV decreases, but is still positive. Dr. Yuan can still expect a positive return on her investment.
b) The NPV decreases, and becomes negative. Dr. Yuan should expect a loss on this investment.
c) The IRR decreases, but is still positive. Dr. Yuan can still expect a positive return on her investment.
d) The IRR and the NPV increase. Dr. Yuan can still expect a positive return on her investment
Answer:
d
d
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
NPV and IRR can be calculated with a financial calculator
Dr Yaun's inital strip mall
Cash flow in year 0 = $-100,000
Cash flow in year 1 = $24,000
Cash flow in year 2 = $24,000 x 1.15
Cash flow in year 3 = $24,000 x 1.15^2
Cash flow in year 4 = $24,000 x 1.15^3
Cash flow in year 5 = $24,000 x 1.15^4
Cash flow in year 6 = $24,000 x 1.15^5
I = 10 %
NPV = $46,718,00
IRR = 22.85%
Similar Strip Mall
Cash flow in year 0 = $-100,000
Cash flow in year 1 = $16,000
Cash flow in year 2 = $16,000 x 1.15
Cash flow in year 3 = $16,000 x 1.15^2
Cash flow in year 4 = $16,000 x 1.15^3
Cash flow in year 5 = $16,000 x 1.15^4
Cash flow in year 6 = $16,000 x 1.15^5
I = 10 %
NPV = $2188
IRR = 9.33%
It can be seen that both the IRR and NPV decreases but still remain positive. So, Dr. Yuan can still expect a positive return on her investment.
The partnership
Cash flow in year 0 = $100,000/ 2 =$-50,000
Cash flow in year 1 = $32,000 / 2
Cash flow in year 2 = ($32,000 x 1.15)/2
Cash flow in year 3 = ($32,000 x 1.15^2)/2
Cash flow in year 4 = ($32,000 x 1.15^3)/2
Cash flow in year 5 = ($32,000 x 1.15^4)/2
Cash flow in year 6 = ($32,000 x 1.15^5)/2
I = 10 %
NPV = $47,812
IRR = 34.49%
It can be seen that the NPV and IRR are both higher when compared with the first scenario
To find the NPV 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 NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
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
Kathy is an office manager at a growing law firm that specializes in pursuing awards for accident victims. She is assigned as the head of a problem-solving group to decide on where to locate a new, expanded office downtown. A major decision facing the group is whether to rent space in a sleek, new office building or to renovate space in a former factory building. The space in the old factory building would have brick walls and resemble a large loft.
Answer:
Kathy should seek quotes from various rental space providers.
Explanation:
Kathy should make a decision to rent of renovate the building based on cost. The major criteria for decision making is based on the monetary factors. Rent for the new space will be compared with the renovation cost in order to reach to a final decision.
For an organization with a Liabilities to Fund Balance ratio of 1.90, we can conclude that:
a. for every $1 in restricted fund balance, the entity has $1.90 in debt.
b. for every $1 in total fund balance, the entity has $1.90 in debt.
c. for every $1 in unrestricted fund balance, the entity has $1.90 in debt.
d. for every $1 in total assets, the entity has $1.90 in debt.
Answer: b. for every $1 in total fund balance, the entity has $1.90 in debt.
Explanation:
The Liabilities to Fund Balance ratio enables analysts to know the debt load of the fund. It is also known as the Debt to Net Worth ratio and is calculated by the formula:
= Interest - bearing debt / Total Capital
As shown from the formula, if the ratio is 1.90, it means that for every $1 in the total fund balance, the fund has $1.90 in debt.
At December 31, 2021, MedX Corporation had outstanding 200,000 shares of common stock. Also outstanding were 120,000 shares of preferred stock convertible into 64,000 common shares and $1,800,000 of 10% bonds convertible into 27,000 common shares. MedX's net income for the year ended December 31, 2021, is $1,040,000. The income tax rate is 25%. MedX paid dividends of $2 per share on its preferred stock during 2021. Required: Compute basic and diluted earnings per share for the year ended December 31, 2021, considering possible antidilutive effects
Answer: basic earning per share = $4.00
Diluted Earning per share = $4.04 per share
Explanation:
Based on the information given in the question, the basic and diluted earnings per share for the year ended December 31, 2021, considering possible antidilutive effects will be calculated as:
The Basic earnings per share will be calculated as:
M= (Net income - preferred dividend) / Outstanding common stock
= ($1040000 - ($120000 × 2)) / 200000
= ($1,040,000 × $240,000) / 200,000
= $800000 ) 200000
= $4.00 per share
The weighted average outstanding share for the diluted will be:
= 200,000 + 64000 + 27000
= 291,000 shares
Then, the diluted earnings per share will be:
= (1040000 + 1800000 × 10% × 75%)/291000
= $4.04 per share
Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $100,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value. Labor costs would increase $2,000 per year using the gang punch, but raw material costs would decrease $12,000 per year. MARR is 5 %/year.
A. What is the discounted payback period for this investment? Image for Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more effi ______years
B. If the maximum attractive DPBP is 3 years, what is the decision rule for judging the worth of this investment?
C. Should Bailey buy the gang punch based on DPBP?
Answer:
14.2 years
Do not invest
yes
Explanation:
Discounted payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative discounted cash flows
Cash flow each year = $12,000 - $2,000 = $10,000
Discounted cash flow in year 1 = 10,000 / 1.05 = 9.523.81
Discounted cash flow in year 2 = 10,000 / 1.05^2 = 9,070.29
Discounted cash flow in year 3 = 10,000 / 1.05^3 = 8,638.38
Discounted cash flow in year 4 = 10,000 / 1.05^4 = 8,227.02
Discounted cash flow in year 5 = 10,000 / 1.05^5 = 7,835.26
Discounted cash flow in year 6 = 10,000 / 1.05^6 = 7,462.15
Discounted cash flow in year 7 = 10,000 / 1.05^7 = 7,106.81
Discounted cash flow in year 8 = 10,000 / 1.05^8 = 6,768.39
Discounted cash flow in year 9 = 10,000 / 1.05^9 = 6,446.09
Discounted cash flow in year 10 = 10,000 / 1.05^10 = 6,139.13
Discounted cash flow in year 11 = 10,000 / 1.05^11 = 5846.79
Discounted cash flow in year 12 = 10,000 / 1.05^12 = 5568.37
Discounted cash flow in year 13 = 10,000 / 1.05^13 = 5303.21
Discounted cash flow in year 14 = 10,000 / 1.05^14 =5050.68
Discounted cash flow in year 15 = 10,000 / 1.05^15 = 4810.17
Discounted payback period = [-100,000 + ( discounted cash flows from year 1 to 14) ] + 1013.62/4810.17 = 14.2 years
The cash flows would turn positive between year 14 and 15
If the DPBP is 3 years, the project should not be accepted because the payback period is 14.2 years which is greater than 3 years
Bailey buy the gang punch based on DPBP because the amount invested is recouped with the useful life of the machine
Transacion Transaction Amount
number (Year 2017)
1 Interest paid by a Country B’s corporation on a
bond owned by a Country A’s bank $1’000
2 Interest paid by Country A’s government on a treasury
bills owned by Country C’s government $2’000
3 Country A imports of coffee from Country B $3’000
4 Country A’s citizen donation to a Non-Governmental-
Organization located in Country A $4’000
5 Country A’s sale of Country C’s government bonds $5’000
6 Country B’s export of raw materials to Country C $6’000
Which transactions belong to Country A's current accounts?
a. 3,4, and 5.
b. 3 and 5.
c. 1,2, 3, 4, 5.
d. 1,2,3.
Answer:
d. 1,2,3
Explanation:
Current assets or liability is any transaction which provides benefit or is an obligation for one year. There are transaction related to interest expense and interest receivable in Country A. These transactions are assumed to provide benefit for one year. The import is also considered and incorporated in current account because it will provide monetary value for less than a year.