Answer:
(a) Increase in cash = $50,200
(b) Total Assets = Liabilities and Stockholders' Equity = $298,900
Explanation:
Note: There are errors as date and name inconsistency in the requirements in this question. The requirements are therefore correctly stated before answering the question as follows:
(a) Prepare a statement of cash flows for the year 2020 for Ayayai Inc.
(b) Prepare the balance sheet as it would appear as of December 31, 2020.
The explanation of the answer is now provided as follows:
(a) Prepare a statement of cash flows for the year 2020 for Ayayai Inc.
Note: See part (a) of the attached excel file for the statement of cash flows for the year 2020 for Ayayai Inc.
In the attached excel file, we have:
Increase in cash = $50,200
(b) Prepare the balance sheet as it would appear as of December 31, 2020.
Note: See part (b) of the attached excel file for the balance sheet as it would appear as of December 31, 2020.
In the attached excel file, we have:
Total Assets = Liabilities and Stockholders' Equity = $298,900
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $469,930 and direct labor hours would be 46,993. Actual factory overhead costs incurred were $523,248, and actual direct labor hours were 54,505. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year
Answer:
Overapplied overhead= $21,802
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 469,930 / 46,993
Predetermined manufacturing overhead rate= $10 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 10*54,505
Allocated MOH= $545,050
Finally, the over/under allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 523,248 - 545,050
Overapplied overhead= $21,802
Identification of Audits and Auditors. Audits may be characterized as (a) financial statement audits, (b) compliance audits, (c) economy and efficiency audits, and (d) program audits. The work can be done by independent (external) auditors, internal auditors, or governmental auditors (including IRS auditors and federal bank examiners). Following is a list of the purpose or products of various audit engagements. [Students may need to refer to Chapter 1.]
a. Analyze proprietary schools’ spending to train students for oversupplied occupations.
b. Determine the fair presentation in conformity with GAAP of an advertising agency’s financial statements.
c. Study the Department of Defense’s expendable launch vehicle program.
d. Determine costs of municipal garbage pickup services compared to comparable service subcontracted to a private business.
e. Audit tax shelter partnership financing terms.
f. Study a private aircraft manufacturer’s test pilot performance in reporting on the results of test flights.
g. Periodically have U.S. comptroller of currency examine a national bank for solvency.
h. Evaluate the promptness of materials inspection in a manufacturer’s receiving department.
i. Report on the need for the states to consider reporting requirements for chemical use data.
j. Render a public report on the assumptions and compilation of a revenue forecast by sports stadium/racetrack complex.
Required:
Prepare a three-column schedule showing (1) each of the engagements listed, (2) the type of audit (financial statement, compliance, economy and efficiency, or program), and (3) the
kind of auditors you would expect to be involved.
Answer:
Audit Engagements Type of Audit Kind of Auditors
a. Economy and efficiency Governmental auditors
b. Financial statement audit External auditors
c. Economy and efficiency Governmental auditors
d. Economy and efficiency Internal auditors
e. Compliance audit Governmental auditors
f. Compliance audit Internal auditors
g. Compliance audit Governmental auditors
h. Economy and efficiency Internal auditors
i. Program audit Governmental auditors
j. Financial statement audit External auditors
Explanation:
a) Data and Analysis:
Types of audit:
(a) financial statement audits = check conformity with standards.
(b) compliance audits = ensure that laid-down rules are being followed.
(c) economy and efficiency audits = resource and process improvement.
(d) program audits = performance analysis to determine effective achievement of goals.
Kind of auditors:
1. independent (external) auditors = independent consultants
2. internal auditors are company employees
3. governmental auditors (including IRS auditors and federal bank examiners)
4. The real interest rate is 3 percent, and the nominal interest rate is 5 percent. What is the anticipated rate of inflation? 1
pt.
Southern Tours is considering acquiring Holiday Vacations. Management believes Holiday Vacations can generate cash flows of $218,000, $224,000, and $238,000 over the next three years, respectively. After that time, they feel the business will be worthless. If the desired rate of return is 14.5 percent, what is the maximum Southern Tours should pay today to acquire Holiday Vacations?
Answer:
$519,799.59
Explanation:
Discount rate = R = 14.50%
Year Cash flows Discount factor PV of cash flows
1 218,000.00 0.873362 190,393.0131
2 224,000.00 0.762762 170,858.6793
3 238,000.00 0.666168 158,547.9011
Total of PV = NPV = $519,799.59
Note:
Df = 1/(1+R)^Year
PV of cash flows = Cash flows x Df
what are the intermediaries of netflix
Some recent financial statements for Smolira Golf Corp. follow.
SMOLIRA GOLF CORP.
2014 and 2015 Balance Sheets
Assets Liabilities and Owners’ Equity
2014 2015 2014 2015
Current assets Current liabilities
Cash $ 24,236 $26,000 Accounts payable $25,084 $29,000
Accounts receivable 14,348 17,100 Notes payable 19,000 12,700
Inventory 27,892 29,000 Other 13,471 18,300
Total $ 66,476 $72,100 Total $ 57,555 $60,000
Long-term debt $ 88,000 $99,000
Owners’ equity
Common stock and paid-in surplus $45,000 $45,000
Accumulated retained earnings 219,616 233,000
Fixed assets
Net plant and equipment $343,695 $364,900 Total $264,616 $278,000
Total assets 410,171 $437,00 Total liabilities and owners’ equity
$410,171 $437,000
SMOLIRA GOLF CORP.
2015 Income Statement
Sales $ 392,640
Cost of goods sold 257,000
Depreciation 48,800
Earnings before interest and taxes $86,840
Interest paid 16,200
Taxable income $70,640
Taxes (40%) 28,256
Net income $ 42,384
Dividends $ 29,000
Retained earnings 13,384
Find the following financial ratios for Smolira Golf Corp. (use year-end figures rather than average values where appropriate): (Enter your profitability ratio answers as a percent rounded to 2 decimal places, e.g., 32.16. Round the remaining answers to 2 decimal places, e.g., 32.16.)
Short-term solvency ratios: 2014 2015
a. Current ratio times times
b. Quick ratio times times
c. Cash ratio times times
Asset utilization ratios:
d. Total asset turnover times
e. Inventory turnover times
f. Receivables turnover times
Long-term solvency ratios: 2014 2015
g. Total debt ratio times times
h. Debt–equity ratio times times
i. Equity multiplier times times
j. Times interest earned times
k. Cash coverage ratio times
Profitability ratios:
I. Profit margin %
m. Return on assets %
n. Return on equity %
Answer:
Smolira Golf Corp.
Short-term solvency ratios: 2014 2015
a. Current ratio 1.15 times 1.20 times
b. Quick ratio 0.67 times 0.72 times
c. Cash ratio 0.42 times 0.43 times
Asset utilization ratios:
d. Total asset turnover times 0.90 times
e. Inventory turnover times 9.03 times
f. Receivables turnover times 24.97 times
Long-term solvency ratios: 2014 2015
g. Total debt ratio times times 0.35 times 0.36 times
h. Debt–equity ratio times times 0.55 times 0.57 times
i. Equity multiplier times times 0.65 times 0.64 times
j. Times interest earned times 5.36 times
k. Cash coverage ratio times 1.50 times
Profitability ratios:
I. Profit margin % = 10.79%
m. Return on assets % = 9.70%
n. Return on equity % = 15.25%
Explanation:
a) Data and Calculations:
SMOLIRA GOLF CORP.
2014 and 2015 Balance Sheets
Assets
2014 2015
Current assets
Cash $24,236 $26,000
Accounts receivable 14,348 17,100
Inventory 27,892 29,000
Total current assets $ 66,476 $72,100
Fixed assets
Net plant &
equipment $343,695 $364,900
Total assets 410,171 $437,000
Liabilities and equity
Current liabilities:
Accounts payable $25,084 $29,000
Notes payable 19,000 12,700
Other current liabilities 13,471 18,300
Total $ 57,555 $60,000
Long-term debt $ 88,000 $99,000
Total $145,555 $159,000
Owners’ equity:
Common stock and
paid-in surplus $45,000 $45,000
Accumulated
retained earnings 219,616 233,000
Total liabilities and
owners’ equity $410,171 $437,000
SMOLIRA GOLF CORP.
2015 Income Statement
Sales $ 392,640
Cost of goods sold 257,000
Depreciation 48,800
Earnings before
interest and taxes $86,840
Interest paid 16,200
Taxable income $70,640
Taxes (40%) 28,256
Net income $ 42,384
Dividends $ 29,000
Retained earnings 13,384
Short-term solvency ratios: 2014 2015
a. Current ratio times times $ 66,476/$ 57,555 $72,100/$60,000
1.15 times 1.20 times
Current assets/Current liabilities
b. Quick ratio times times $38,584/$57,555 $43,100/$60,000
0.67 times 0.72 times
= (Current assets- Inventory)/Current liabilities
c. Cash ratio times times $24,236/$57,5555 $26,000/$60,000
0.42 times 0.43 times
Cash ratio = Cash/Current liabilities
Asset utilization ratios:
d. Total asset turnover times = Sales/Total asset = $ 392,640/$437,000 = 0.90 times
e. Inventory turnover times = Cost of goods sold/Average Inventory = $257,000/$28,446 = 9.03 times
f. Receivables turnover times = Sales/Average Receivable = $392,640/$15,724 = 24.97 times
Long-term solvency ratios: 2014 2015
g. Total debt ratio times times = Total Debt/Total Assets
= $145,555/$410,171 $159,000/$437,000
= 0.35 times 0.36 times
h. Debt–equity ratio times times
= $145,555/$264,616 $159,000/$278,000
= 0.55 times 0.57 times
i. Equity multiplier times times
= $264,616/$410,171 $278,000/$437.000
= 0.65 times 0.64 times
= Equity/Assets
j. Times interest earned times $86,840/$16,200
= 5.36 times
= EBIT/Interest Expense
k. Cash coverage ratio times = $24,236/$16,200 = 1.50 times
Profitability ratios:
I. Profit margin % = Net income/Sales = $42,384/$392,640 * 100 = 10.79%
m. Return on assets % = Net income/Assets
= $42,384/$437,000 * 100 = 9.70%
n. Return on equity % = Net income/Equity
= $42,384/$278,000 * 100
= 15.25%
Towne Snow Removal's cost formula for its vehicle operating cost is $1,470 per month plus $399 per snow-day. For the month of November, the company planned for activity of 13 snow-days, but the actual level of activity was 9 snow-days. The actual vehicle operating cost for the month was $5,230. The vehicle operating cost in the flexible budget for November would be closest to:
Answer: $5061
Explanation:
The vehicle operating cost in the flexible budget for November would be calculated as:
= Fixed cost + (Variable cost per unit × Quantity)
= $1470 + ($399 × 9)
= $1470 + $3591
= $5061
Therefore, the vehicle operating cost in the flexible budget for November would be closest to $5061.
Statement of Owner's Equity Zack Gaddis owns and operates Gaddis Advertising Services. On January 1, 20Y3, Zack Gaddis, Capital had a balance of $186,000. During the year, Zack invested an additional $9,300 and withdrew $65,100. For the year ended December 31, 20Y3, Gaddis Advertising Services reported a net income of $89,800.
Prepare a statement of owner's equity for the year ended December 31, 20Y3. Use the minus sign to indicate negative values.
Answer:
Zack Gaddis
Statement of owner's equity for the year ended December 31, 20Y3
Capital Retained Earnings Total
Beginning of the Year :
Opening Balance $186,000 - $186,000
During the year :
Additional Capital $9,300 - $9,300
Drawings ($65,100) - ($65,100)
Net Income - $89,800 $89,800
At the end of the year $130,200 $89,800 $220,000
Explanation:
The statement of owner's equity for the year ended December 31, 20Y3 is prepared as above.
The four primary areas of U.S. legislation dealing with human resource management concern labor relations, compensation and benefits, health and safety, and equal employment opportunity.
a. True
b. False
Answer: True
Explanation:
The statement that the four primary areas of the U.S. legislation deals with the human resource management concern labor relations, the compensation and benefits, the health and safety, and also equal employment opportunity" is true.
Employees should be managed properly and given the necessary conditions for them to thrive and succeed. The health and safety of workers is vital and should be adequately taken care of. Also, their benefits and compensation should be regularly reviewed and looked into in order to motivate workers and maximize productivity.
B. Federal Reserve Chair Jerome Powell has hinted that a long run inflation rate target of 2% is the guide he uses for monetary policy in the long run Appealing to the Quantity Theory of Money, Rep. Doro Green advises Chair Powell to therefore set a money growth rate target of 2% to achieve this long run inflation goal. i.) If the Chair takes the Representative's advice, he_________achieve his long run inflation goal because__________ A. Will not; economic growth is positive in the long run. B. Will not; velocity growth is positive in the long run. C. will real economic growth is positive in the long run. D. Wil; velocity growth is positive in the long run.Why might we have reason to believe that Representative Green received the backing of those in the banking industry in the latest election? Explain with reference to your conclusion above about the results of Chair Powell's taking Representative Green's advice. ii) If Chair Powell takes Representative Green's advice, inflation in the long run will bethan expected, transferring wealth from :________.A. Lower; creditors to debtors B. Higher; debtors to creditors C. Higher; creditors to debtors D. Lower; debtors to creditors
Answer:
will, real economic growth is positive in the long run.
Lower; creditors to debtors.
Explanation:
Theory of money is the economical view that the inflation is dependent on the money supply in the country. When the money supply is higher then inflation will be lowered and purchasing power of the consumer will be high. When inflation is set to a minimum possible rate then real economic growth will be positive in the long run and negative in the short run.
Ivanhoe Company reports the following operating results for the month of August: sales $392,000 (units 4,900), variable costs $247,000, and fixed costs $96,000. Management is considering the following independent courses of action to increase net income.
1. Increase selling price by 10% with no change in total variable costs or units sold.
2. Reduce variable costs to 57% of sales.
3. Reduce fixed costs by $22,000.
Which course of action wiIl produce the highest net?
Answer:
The best course of action is to increase the selling price by 10%.
Explanation:
Giving the following information:
sales $392,000 (units 4,900)
variable costs (247,000)
fixed costs (96,000)
Current net income= 49,000
First, we need to calculate the unitary selling price and variable cost:
Selling price= 392,000 / 4,900= $80
Unitary variable cost= 247,000 / 4,900= $50.41
Now, we will calculate the impact on net income of each variation:
Increasing selling price by 10%:
Selling price= 80*1.1= $88
Effect on income= 8*4,900= $39,200 increase
Reduce variable costs to 57% of sales.
Unitary variable cost= 80*0.57= $45.6
Effect on income= (50.41 - 45.6)*4,900= $23,569 increase
Reduce fixed costs by $22,000.
Effect on income= $22,000 increase
An order has been received from an overseas customer for 3700 units to be delivered this month at a special discounted price. This order would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $2.90 less per unit on this order than on normal sales. Direct labor is a variable cost in this company. Suppose there is not enough idle capacity to produce all of the units for the overseas customer and accepting the special order would require cutting back on production of 1550 units for regular customers. The minimum acceptable price per unit for the special order is closest to:
Answer: $88.62
Explanation:
First find the costs associated with the order.
= Direct material + Direct labor + Variable manufacturing overhead + Variable selling expense + Contribution margin lost from cutting back production for regular customers
Contriution margin lost from cutting production = Selling price - Direct material - Direct labor - Variable manufacturing overhead - Variable selling expense
= 120.10 - 51.10 - 9.80 - 5.20
= $54
= (3,700 * 51.10) + (3,700 * 9.80) + (3,700 * 2.80) + ((5.20 - 2.90) * 3,700) + ( 54 * 1,550)
= $327,900
Price per unit = 327,900 / 3,700
= $88.62
Item13 Time Remaining 45 minutes 57 seconds00:45:57 Item 13 Time Remaining 45 minutes 57 seconds00:45:57 The world's largest manufacturer of peppermint candy canes was located in Albany, Georgia, until it could no longer afford to buy the sugar needed for its operation. It moved its manufacturing business to Mexico where there are no restrictions (like those that exist in the United States) on the amount of sugar that can be brought into the nation. The business moved to Mexico because of __________ established by the U.S. government.
Answer:
Quota
Explanation:
The world's largest manufacturer of peppermint candy canes moved its manufacturing business from Albany, Georgia to Mexico as there are no restrictions on the amount of sugar that can be brought into this nation (like those that exist in the United States.
The business moved to Mexico because of Quota established by the U.S. government.
The journal entry to record the transfer of partially completed work in process to the next process in process costing is a(n): Multiple choice question. increase in assets and an increase in liabilities decrease in assets and a decrease in liabilities decrease in one asset and an increase in another asset increase in assets and an increase in equity
Answer:
decrease in one asset and an increase in another asset increase.
Explanation:
Work-in-process inventories can be defined as a number of partially completed goods which are still in the process of being transformed into finish products that meets the needs of consumers.
Generally, the work-in-process inventories include the following raw materials cost, direct labor cost and factory overhead cost.
These category of products are only partially completed and as such are waiting for further processing, still undergoing fabrication or kept in a buffer storage.
A journal entry involves the process of keeping the records of business transactions made by an organization.
The journal entry is used by bookkeepers and accountants. Ideally, it is important that a journal has all of following informations; date, reference number, debit balance, credit balance and transaction description.
Hence, the journal entry to record the transfer of partially completed work in process to the next process in process costing is a decrease in one asset and an increase in another asset increase.
In Question 7, suppose the maintenance supervisor has complained that trainees are having difficulty trouble shooting problems with the new electronics system. They are spending a great deal of time on problems with the system and coming to the supervisor with frequent questions that show a lack of understanding. The supervisor is convinced that the employees are motivated to learn the system, and they are well qualified. What do you think might be the problems with the current training program
Answer:
Since the employees are unable to understand the process properly, and they are well qualified, the problem is that the information and techniques used during the training program are not sufficient. Maybe the trainees are given unclear messages or the information is incomplete. The training program must be revised and technical issues should be explained better or in a different way.
The following is a list of accounts and adjusted amounts for Rollcom, Inc., for the fiscal year ended September 30, 2018. The accounts have normal debit or credit balances.
Accounts Payable $39,100
Accounts Receivable 66,500
Accumulated Depreciation 21,500
Cash 80,300
Common Stock 94,800
Equipment 90,700
Income Tax Expense 10,500
Notes Payable (long-term) 1,500
Office Expenses 6,300
Rent Expense 164,200
Retained Earnings 99,900
Salaries and Wages Expense 128,700
Sales Revenue 325,600
Supplies 35,200
Prepare the closing entry required at September 30, 2018.
Answer:
30-Sep-18
Dr Sales revenue 325,600
Cr Income tax expense 10,500
Cr Office expenses 6,300
Cr Rent expense 164,200
Cr Salaries and wages expense 128,700
Retained earnings $15,900
Explanation:
Preparation of the closing entry required at September 30, 2018
30-Sep-18
Dr Sales revenue 325,600
Cr Income tax expense 10,500
Cr Office expenses 6,300
Cr Rent expense 164,200
Cr Salaries and wages expense 128,700
Retained earnings $15,900
(325,600-10,500-6,300-164,200-128,700)
(To record closing entries)
Congratulations! You were the 10th caller on the KMTH morning show and you just won $3,000.00. After you calm down, you decide to put the money into a bank account so that you will have even more money for a trip to Europe. Snurling Bank tells you that they will pay 9% per year compounded monthly. How much money will you have for your trip in 5 years
Answer:
$4,697.04
Explanation:
In simple words , this question requires us to find the Future Value in 5 years time. We compound the Present Value using the effective interest rate to determine the Future Value of an investment.
PV = $3,000.00
P/YR = 12
N = 5 x 12 = 60
I = 9 %
PMT = $0
FV = ?
Using a Financial calculator to enter the parameters as above the Future Value (FV) is $4,697.04
therefore,
In 5 years time, you will have $4,697.04.
Part U16 is used by Mcvean Corporation to make one of its products. A total of 16,500 units of this part are produced and used every year. The company's Accounting Department reports the following costs of producing the part at this level of activity: Per Unit Direct materials $ 3.60 Direct labor $ 8.20 Variable manufacturing overhead $ 8.70 Supervisor's salary $ 4.10 Depreciation of special equipment $ 2.50 Allocated general overhead $ 7.70 An outside supplier has offered to make the part and sell it to the company for $27.50 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including the direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the part were purchased instead of produced internally. In addition, the space used to make part U16 could be used to make more of one of the company's other products, generating an additional segment margin of $28,500 per year for that product. The annual financial advantage (disadvantage) for the company as a result of buying part U16 from the outside supplier should be:
Answer:
Financial disadvantage = 45,750
Explanation:
First of all, we need to sort out the data given in this question.
Data Given:
Per Unit Direct materials = $ 3.60
Direct labor = $ 8.20
Variable manufacturing overhead = $ 8.70
Supervisor's salary = $ 4.10
Depreciation of special equipment = $ 2.50
Allocated general overhead = $ 7.70
Offer by outside supplier = $27.50
So,
Cost of making = [(3.60+8.20+8.70+2.50)*16,500]+28,500 (Opportunity cost)
Cost of Making = (23*16,500)+28,500
Cost of Making = 408,000
Cost of buying = 16,500*27.50
Cost of buying = 453,750
Financial disadvantage = Cost of making - Cost of buying
Financial disadvantage = 453,750 - 408,000
Hence,
Financial disadvantage = 45,750
Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $8.6 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent facilities elsewhere. The land would net $11.4 million if it were sold today. The company now wants to build its new manufacturing plant on this land; the plant will cost $22.6 million to build, and the site requires $1,010,000 worth of grading before it is suitable for construction.
Required:
What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars (e.g., 1,234,567).)
Answer:
$35,010,000
Explanation:
Calculation for the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project
Cash flow = $11.4 million + $22.6 million + $1,010,000
Cash flow = $35,010,000
Therefore the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project is $35,010,000
Which of the following is not an important factor to assess when identifying appropriate precedent transactions?
Answer:
how to answer that ?????
The factor that is not important for the identification of precedent transactions is Accretive/dilutive effect of the transaction on the acquirer. Thus, option 2nd is correct.
What is precedent transaction?Precedent transaction refers to the valuation process of the price being paid for the similar companies in the past is taken into account as a gauge of a valuation of company's value.
An estimation of a share's value in the event of an acquisition is produced through precedent transaction analysis. It is the limitation of the precedent transaction that past cost may not reflect the prevailing conditions of the market.
Therefore, it can be concluded that The accretive or dilutive effect of the acquisition on the acquirer is a criterion that is not crucial for identifying prior transactions. Hence, option 2nd is correct.
Learn more about Precedent transaction here:
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Your question is incomplete, but most probably the full question was...
Which of the following is not an important factor to assess when identifying appropriate precedent transactions?
1) Transaction rationale
2) Accretive/dilutive effect of the transaction on the acquirer
3) Transaction size
4) Industry & financial characteristics
Thomas entered a four-year sales-type lease with a lessee. The lease is for equipment with a fair value of $40,000, a cost of $34,000, and a residual value of $7,000. The lease has an implicit rate of 6%. The present value factor of a single sum for four periods at 6% is .79209, and the present value factor of an ordinary annuity for four periods at 6% is 3.46511. What amount of gross profit will Thomas report if the lease has a(n) Guaranteed Residual Value Unguarantee
Answer: $6,000 for both guaranteed and unguaranteed residual value.
Explanation:
Gross Profit = Selling price - Cost of sales
Selling price = Fair value - Present value of residual value
= 40,000 - (7,000 * present value factor, 6%, 4 periods)
= 40,000 - (7,000 * 0.79209)
= $34,455.37
Cost of sales = Cost - Present value of residual value
= 34,000 - (7,000 * 0.79209)
= $28,455.37
Gross Profit = 34,455.37 - 28,455.37
= $6,000
alton Corporation is currently selling 104 units of its product. The company is deciding the price that it should charge for a bulk order of 40 units. The variable cost per unit is $200. This order will not involve any additional fixed costs and the company's current sales will not be affected. The company targets a profit of $4,000 on the bulk order. What selling price per unit should the company quote for the bulk order
Answer:
the selling price per unit is $300
Explanation:
The computation of the selling price per unit is shown below;
= Variable cost + profit needed per unit
= $200 + ($4,000 ÷ $40 units)
= $200 + $100
= $300
hence, the selling price per unit is $300
Quantity of Flower A Total Utility Marginal Utility Quantity of Flower B Total Utility Marginal Utility 1 16 16 1 30 30 2 30 14 2 46 16 3 42 12 3 61 15 4 52 10 4 75 14 5 60 8 5 88 13 6 66 6 6 100 12 7 70 4 7 111 11 Your mother needs help deciding how many of two kinds of flowers to purchase for a bouquet she is making. She wants to purchase two kinds of flowers: Flower A and Flower B. If the price of Flower A is $2 and the price of Flower B is $3, how many of Flower A should your mother purchase for her bouquet to maximize her utility if she can spend at most $17 on flowers
Answer:
she should buy 4 As and 3 Bs
Explanation:
utility per dollar
flower A flower B total money spent
1 flower 8 10 $5
2 flowers 7.5 7.67 $10
3 flowers 7 6.78 $15
4 flowers 6.5 $17
total 29 24.45 $17
Patricia and Joe Payne are divorced. The divorce settlement stipulated that Joe pay $550 a month for their daughter Suzanne until she turns 18 in 3 years. Interest is 6% a year. How much must Joe set aside today to meet the settlement? (Do not round intermediate calculations. Round your answer to the nearest cent.)
Answer:
Present Value= $18,079.05
Explanation:
Giving the following information:
Monthly payment= $550
Number of months= 3*12= 36 months
Interest rate= 0.06/12= 0.005
To calculate the lump sum to set aside to pay the settlement, first, we need to calculate the future value:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
FV= {550*[(1.005^36) - 1]} / 0.005
FV= $21,634.85
Now, the present value:
PV= FV / (1+i)^n
PV= 21,634.85 / (1.005^36)
PV= $18,079.05
The Utah Mining Corporation is set to open a gold mine near Provo, Utah. According to the treasurer, Monty Goldstein, "This is a golden opportunity." The mine will cost $3,400,000 to open and will have an economic life of 11 years. It will generate a cash inflow of $575,000 at the end of the first year, and the cash inflows are projected to grow at 8 percent per year for the next 10 years. After 11 years, the mine will be abandoned. Abandonment costs will be $123,000 at the end of year 11.
Required:
What is the IRR for the gold mine? (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))
IRR
%
Answer:
19.07%
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
Cash flow in year 0 = $-3,400,000
Cash flow in year 1 = $575,000
Cash flow in year 2 = $575,000 x 1.08
Cash flow in year 3 = $575,000 x 1.08^2
Cash flow in year 4 = $575,000 x 1.08^3
Cash flow in year 5 = $575,000 x 1.08^4
Cash flow in year 6 = $575,000 x 1.08^5
Cash flow in year 7 = $575,000 x 1.08^6
Cash flow in year 8 = $575,000 x 1.08^7
Cash flow in year 9 = $575,000 x 1.08^8
Cash flow in year 10 = $575,000 x 1.08^9
Cash flow in year 11 = ($575,000 x 1.08^10) - $123,000
IRR = 19.07%
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.
A company reported that its bonds with a par value of $50,000 and a carrying value of $57,000 are retired for $60,000 cash, resulting in a loss of $3,000. The amount to be reported under cash flows from financing activities is: Multiple Choice $(3,000). $(60,000). $(57,000). $7,000. $(7,000).
Answer:
$(60,000)
Explanation:
Based on the information given we were told that the company reported that its bonds with a par value of the amount of $57,000 are retired for the amount of $60,000 as cash which means that The amount to be reported under cash flows from financing activities is:$60,000 which was the amount that was retired for cash.
The manager of the main laboratory facility at Center is interested in being able to predict the overhead costs each month for the lab. The manager believes that total overhead varies with the number of lab tests performed but that some costs remain the same each month regardless of the number of lab tests performed. The lab manager collected the following data for the first seven months of the year. Number of Lab Total Laboratory Tests Performed Overhead CostsMonth January 2,700 $22,900February 2,500 $23,500March 3,500 $29,800 April 4,000 $32,500May 4,600 $31,100 June 2,250 $22,000 July 2,000 $19,100 1. Use the high-low method to determine the laboratory's cost equation for total laboratory overhead. Use your results to predict total laboratory overhead if 3,200 lab tests are performed next month.2. Use the high-low method to determine UrbanFit's operating cost equation.
Answer:
Total cost= 9,871 + 4.615*x
x=number of lab tests
Explanation:
To calculate the variable and fixed costs using the high-low method, we need to use the following formulas:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (31,100 - 19,100) / (4,600 - 2,000)
Variable cost per unit= $4.615
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 31,100 - (4.62*4,600)
Fixed costs= $9,871
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 19,100 - (4.615*2,000)
Fixed costs= $9,870
Total cost= 9,871 + 4.615*x
x=number of lab tests
Answer:
you need to use exel to find the awnser
Explanation:
Maxwell Corp. is coming to the market with a new offering of 450,000 shares of stock at $22 to the public. Maxwell will receive $19 per share. The firm has one million shares outstanding and earnings of $6 million before recording the new issue. What is the amount of dilution in earnings per share
Answer:
$1.86
Explanation:
Earnings per Share = Earnings Attributable to Holders of Common Stock ÷ Common Stock Outstanding
Old Earnings Per Share
Earnings per Share = $6,000,000 ÷ 1,000,000 = $6.00
New Earnings Per Share
Earnings per Share = $6,000,000 ÷ 1,450,000 = $4.14
Dilution in earnings per share = $6.00 - $4.14 = $1.86
Communicating Negative News EffectivelyAt some point, everyone will have to deliver bad news. The bad feelings associated with this type of message can be alleviated if the receiver knows the reason for the bad news, feels the news is revealed sensitively, thinks the matter is treated seriously, and believes that the decision is fair. When applying these strategies, make sure to follow the writing process and determine whether to use a direct or an indirect pattern in your message. Read the following scenario:Your company started using shipping company two months ago. During your short relationship with a new the company, you notice that it regularly inflates its shipping rates, fails to meet scheduled deliveries, and loses packages. You decide to write a letter to them ending the business relationship. 1. What are your goals when responding to the previous scenario? A. To encourage follow-up correspondence from the receiver. B. To ensure that the company knows you are angry.C. To convey fairness.D. To avoid creating legal liability for your company.E. To make the receiver understand the bad news.2. Staying calm and using polite language while offering a clear explanation of why the negative message was necessary helps the sender to:___.A. Limit legal liability.B. Be firm in their decision.C. Project a professional image.D. Avoid apologizing.
Answer:
Communicating Negative News Effectively
1. The goals when responding to the previous scenario is:
E. To make the receiver understand the bad news.
2. Staying calm and using polite language while offering a clear explanation of why the negative message was necessary helps the sender to:___
D. Avoid apologizing.
Explanation:
To effectively communicate negative news to a recipient, the sender needs to clarify her goal. The goal is the purpose that she wants to achieve through the communication. There are many goals one can pursue when delivering negative news. They include avoiding further clarification, legal liability, or erroneous admission of guilt, maintaining relationships, reducing tensions, and achieving the intended outcome.
labor force
200 million
Adults in the military
1 million
Population below 16
50 million
Employed adults
180 million
Institutionalized adults
3 million
Not in labor force
40 million
1. What is the total population? 1 pt. (Show your work)
2. How many people are unemployed, and what is the unemployment rate? 2 pts.
3. What is the labor force participation rate? 1 pt.
Answer:
not entirely sure if that's how you are suppose to do it. but that's how I would've done it.