Answer:
$25,000
Explanation:
Computation for the cash flows from operations using the indirect method.
Cash flow from operating activities
Net income $18,000
Adjustment to reconcile net income to net cash flow from operating activities
Change in Current assets and liabilities
Less Account receivable increase ($9,000)
Inventory decrease $11,000
Prepaid insurance decrease $4,000
Account payable increase $6,000
Less Taxes payable decrease ($5,000)
Net cash flow from operating activities $25,000
Therefore the cash flows from operations using the indirect method will be $25,000
Toyota manufactures in Japan most of the vehicles it sells in the United Kingdom. The base platform for the Toyota Tundra truck line is ¥1,650,000. The spot rate of the Japanese yen against the British pound has recently moved from ¥197/£ to ¥190/£. How does this change the price of the Tundra to Toyota's British subsidiary in British pounds?
Answer and Explanation:
The computation of the change in price is shown below:
Original import price
= 1,650,000 ÷ 197
= 8375.63
The new import price is
= 1,650,000 ÷ 190
= 8,684.21
Now the percentage change in price is
= (8,684.21 - 8375.63) ÷ 8375.63
= 3.68%
This would be equal to the percentage change in the Japanese yen as the price of the truck remains unchanged
Stone Company reported $100,000,000 of revenues on its 20X8 income statement. During the year ended December 31, 20X8, Stone made sales of $8,000,000 to external customers in Western Europe. In addition, Stone made sales of $10,000,000 to the U.S. government and $4,000,000 of sales to various state governments. In the footnotes to its financial statements for 20X8, in reporting enterprisewide disclosures, Stone is required to disclose: Segment Reporting the Revenue Identity of Each Major Customer A) Yes No
Answer:
with all that money can't they just get somebody to do it for them
Explanation:
What is known as the price at which a seller projects that a buyer will buy a product?
A. Target price
B. Selling price
C. Perfect price
D. Profit price
The price at which a seller projects that a buyer will buy a product is called the Perfect price.
What is a perfect price?Perfect price is also known as pure price discrimination. The Perfect price is the price at which a seller believes a buyer will purchase a thing.
It is an economic theory in which a company can charge the greatest price that customers are willing to pay for each of its items while still leaving no consumer surplus.
Therefore, option C is correct.
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You are looking at a one-year loan of $13,000. The interest rate is quoted as 9.6 percent plus three points. A point on a loan is 1 percent (one percentage point) of the loan amount. Quotes similar to this one are common with home mortgages. The interest rate quotation in this example requires the borrower to pay three points to the lender up front and repay the loan later with 9.6 percent interest.
Required:
What rate would you actually be paying here?
Answer: 10.3%
Explanation:
The borrower is to pay 3 points on the loan to get it which means that the effective total they are getting is:
= 13,000 * ( 1 - 3%)
= $12,610
The borrower will also have to pay an interest of 7% so the total to pay back is:
= 13,000 * ( 1 + 7%)
= $13,910
Interest actually paid:
= Amount to paid back / Amount to be received - 1
= (13,910 / 12,610) - 1
= 10.3%
The management of National Inc. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2022, the accounting records show these data.
Inventory, January 1 (10,000 units) $35,000
Cost of 120,000 units purchased 468,500
Selling price of 98,000 units sold 750,000
Operating expenses 124,000
Units purchased consisted of 35,000 units at $3.70 on May 10; 60,000 units at $3.90 on August 15; and 25,000 units at $4.20 on November 20. Income taxes are 28%.
Required:
Prepare comparative condensed income statements for 2022 under FIFO and LIFO.
Answer:
National Inc.
Comparative condensed income statements for 2022
FIFO LIFO
Sales $750,000 750,000
Less Cost of Sales ($371,200) ($394,500)
Gross Profit $378,800 $355,500
Less Expenses
Operating expenses ($124,000) ($124,000)
Operating Profit $254,800 $231,500
Income tax expense ($71,344) ($64,820)
Net Income (Loss) $183,456 $166,680
Explanation:
FIFO
Assumes that the units to arrive first will be sold first. Therefore, the Cost of Goods Sold will be based on the earlier (old) prices.
Cost of Sales = 10,000 x $3.50 + 35,000 x $3.70 + 53,000 x $3.90 = $371,200
LIFO
Assumes that the units to arrive last will be sold first, Hence the Cost of Goods Sold will be based on the later (new) prices.
Cost of Sales = 25,000 x $4.20 + 60,000 x $3.90 + 15,000 x $3.70 = $394,500
Partial-Year Depreciation Sandblasting equipment acquired at a cost of $42,000 has an estimated residual value of $6,000 and an estimated useful life of 10 years. It was placed in service on October 1 of the current fiscal year, which ends on December 31, 20Y5. a. Determine the depreciation for 20Y5 and for 20Y6 by the straight-line method. Depreciation 20Y5 $fill in the blank 1 20Y6 $fill in the blank 2 b. Determine the depreciation for 20Y5 and for 20Y6 by the double-declining-balance method.
Answer:
A. Depreciation expense in 20Y5 = $900
Depreciation expense in 20Y6 = $3,600
B. Depreciation expense in 20Y5 = $2800
Depreciation expense in 20Y6 =$7840
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($42,000 - $6,000) / 10 = $3,600
The depreciation expense would be $3600 each year except in 20Y5. when the equipment was used from October to December which is 3 months
Depreciation expense in 20Y5 = 3/12 x $3600 = $900
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life) = 2/10 = 0.2
Depreciation expense in 20Y5 = 0.2 x $42,000 = $8,400
But the equipment was only used for 3 months, so we would divide the figure above by 3
$8400 / 3 = $2800
Depreciation expense in 20Y5 = $2800
Depreciation expense in 20Y6 = book value in the beginning of 20Y6 x depreciation expense
Book value = cost of the asset - depreciation expense in 20Y5
$42,000 - $2800 = $39,200
Depreciation expense in 20Y6 = $39,200 x 0.2 = $7840
PLEASE HELP!!
1) What are some other forms of currency in existence now?
2) Can you think of other examples of currency?
-from Kamps video
Bitcoin, Equal Dollars, Ithaca Hours, Starbucks Stars, Amazon Coins, Sweat.
During 2016, Bramble Corporation spent $178,560 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2016, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $30,000 related to the patent were incurred as of October 1, 2016.
Prepare all journal entries required in 2016 and 2017 as a result of the transactions above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit 2016 (To record research and development expenses)
Answer:
See the journal entries below.
Explanation:
The journal entries will look as follows:
Date Description Debit ($) Credit ($)
2016 Research and Development Expense 178,560
Cash 178,560
(To record research and development costs.)
Patents 30,000
Cash 30,000
(To record legal expenses.)
Patent Amortization Expense 750
Patents [($30,000 / 10) * (3/12)] 750
(To record patent amortization for 2016.)
2017 Patent Amortization Expense 3,000
Patents ($30,000 / 10) 3,000
(To record patent amortization for 2017.)
20:21
Date d’envoi de votre message : Aujourd’hui, à 20:21
During 2021, its first year of operations, Pave Construction provides services on account of $120000. By the end of 2021, cash collections on these accounts total $90000. Pave estimates that 20% of the uncollected accounts will be uncollectible. In 2022, the company writes off uncollectible accounts of $5400. Required: 1. Record the adjusting entry for uncol
Answer:
A. December 31, 2021
Dr Bad debt expense $6,000
Cr Allowance for uncollectible accounts $6,000
B. 12/31
Dr Allowance for Uncollectible accounts $5,400
Cr Account receivable $5,400
C. $24,000
Explanation:
A. Preparation of journal entry to record the adjustment for uncollectible accounts on December 31 2021
December 31, 2021
Dr Bad debt expense $6,000
Cr Allowance for uncollectible accounts $6,000
($120000-$90000*20%)
(Being to record the adjustment for uncollectible accounts)
B. Preparation of the journal entry to Record the write offs of accounts receivables in 2022
12/31
Dr Allowance for Uncollectible accounts $5,400
Cr Account receivable $5,400
(Being to Record the write offs of accounts receivables)
C. Calculation for the net realizable value of accounts receivable.
Total accounts receivable $30,000
($120,000-$90,000)
Less: Allowance for uncollectible accounts ($6,000)
Net realizable value $24,000
Therefore the net realizable value of accounts receivable will be $24,000
Assume that your father is now 40 years old, that he plans to retire in 20 years, and that he expects to live for 25 years after he retires, that is, until he is 85. He wants a fixed retirement income that has the same purchasing power at the time he retires as $75,000 has today. (He realizes that the real value of his retirement income will decline year-by-year after he retires.) His retirement income will begin the day he retires, 20 years from today, and he will then receive 24 additional annual payments. Inflation is expected to be 4% per year from today forward; he currently has $200,000 saved; and he expects to earn a return on his savings of 7% per year, annual compounding. To the nearest dollar, how much must he save during each of the next 20 years (with deposits being made at the end of each year) to meet his retirement goal
Answer:
Explanation:
People deserve a break, Just give them time.
Sunland Company is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $24 and Sunland would sell it for $62. The cost to assemble the product is estimated at $26 per unit and the company believes the market would support a price of $87 on the assembled unit. What decision should Sunland make
Answer: Sell before assembly, the company will be better off by $1 per unit.
Explanation:
To solve the above question, we need to calculate the incremental profit or loss first. This will be:
= After assembling sales value - Unassembled unit sales value - Coat if further processing
= $87 - $62 - $26
= -$1
Since there is an incremental loss of $1, then the correct answer is "Sell before assembly, the company will be better off by $1 per unit".
When international companies choose a place for production facilities, ___________, ___________, and ___________ factors are all important considerations on the strategic decision of where production should occur. country-specific, technological, product local government, environmental, product federal government, environmental, logical
The factors that international companies consider in choosing a place for locating their production facilities are country-specific, technological, and product factors.
An international company is located in more than one country. It may have production facilities in more than one country with its headquarters at the home country.
Such an international company usually considers some factors to determine where production facilities should be located. Some of the factors relate to the specific countries under consideration.
Another factor considered is the maturity of technological advancement in the countries that it is considering. This shows the importance of technology in aiding production, improving efficiency, and increasing the company's profitability.
The company should also review the level of product demand in the local market, the availability of raw materials, and the level of skilled manpower for production activities.
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Braxton Enterprises currently has debt outstanding of million and an interest rate of . Braxton plans to reduce its debt by repaying million in principal at the end of each year for the next five years. If Braxton's marginal corporate tax rate is , what is the interest tax shield from Braxton's debt in each of the next five years?
Answer:
Interest tax shield in year 0 = $1.155 million
Interest tax shield in year 1 = $0.924 million
Interest tax shield in year 2 = $0.693 million
Interest tax shield in year 3 = $0.462 million
Interest tax shield in year 4 = $0.231 million
Interest tax shield in year 5 = 0
Explanation:
Here is the complete question :
Braxton Enterprises currently has debt outstanding of $55 million and an interest rate of 6%. Braxton plans to reduce its debt by repaying $11 million in principal at the end of each year for the next five years. If Braxton's marginal corporate tax rate is 35%, what is the interest tax shield from Braxton's debt in each of the next five years?
interest tax shield is a reduction in tax paid as a result of interest paid on debt
interest tax shield = (debt amount x interest rate x tax rate)
Interest tax shield in year 0 = $55 million x 0.06 x 0.35 = $1.155 million
Debt in year 1 = $55 million - 11million = $44 million
Interest tax shield in year 1 = $44 million x 0.06 x 0.35 = $0.924 million
Debt in year 2 = $44 million - 11million = $33 million
Interest tax shield in year 2 = $33 million x 0.06 x 0.35 = $0.693 million
Debt in year 3 = $33 million - 11million = $22 million
Interest tax shield in year 3 = $22 million x 0.06 x 0.35 = $0.462 million
Debt in year 4 = $22 million - $11 million = $11 million
Interest tax shield in year 4 = $11 million x 0.06 x 0.35 = $0.231 million
Debt in year 5 = $11 million - $11 million = 0
Interest tax shield in year 5 = 0 x 0.06 x 0.35 = 0
Yong performs research, and creates models for proposed road improvement projects. Her job title is best described as . Roberta analyzes roads to find ways to improve their safety. Her job title is best described as . Timothy checks aircrafts to make sure they meet standards and regulations. His job title is best described as .
Yong performs research, and creates models for proposed road improvement projects. Her job title is best described as
✔ Transportation Planner
Roberta analyzes roads to find ways to improve their safety. Her job title is best described as
✔ Traffic Technician
Timothy checks aircrafts to make sure they meet standards and regulations. His job title is best described as
✔ Aviation Inspector
A job title defines the description of the responsibilities of the position. For all of the above statements, the job title that best describes them is as follows:
What do you mean by job title?A job title refers to a position that is associated with a specific set of responsibilities.
Young performs research and creates models for proposed road improvement projects. Her job title is best described as Transportation Planner. Roberta analyzes roads to find ways to improve their safety. Her job title is best described as Traffic Technician. Timothy checks aircraft to make sure they meet standards and regulations. His job title is best described as Aviation Inspector.
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Seven years ago, Paul purchased residential rental real estate that he has been depreciating as MACRS property over 27.5 years. This year, when his adjusted basis in the property was $250,000, Paul transferred the property to the newly formed PLA partnership in exchange for a one-third interest in the partnership. PLA incurred $10,000 of transfer taxes and fees related to the property. How will PLA treat the property?
a. PLA will take the rental real estate at a basis of $250,000 and the $10,000 taxes and fees at $10,000 and depreciate each over 27.5 years
b. PLA will take the rental real estate at a basis of $260,000 and depreciate it over 27.5 years.
c. PLA will take the rental real estate at a basis of $250,000 and the $10,000 of taxes and fees will be treated as a new depreciable property
d. PLA will take the rental real estate at a basis of $260,000 and depreciate it over the remaining 20 years.
Answer:
c. PLA will take the rental real estate at a basis of $250,000 and the $10,000 of taxes and fees will be treated as a new depreciable property
Explanation:
According to the rule, the adjusted basis of Paul is of $250,000 and it should be depreciated for the predicted remaining life i.e. 20 years
While on the other hand, the $10,000of transfer taxes and fees would be treated as a new purchase of an asset and would be depreciated for 27.5 years
Therefore as per the given situation, the option c is correct
The company budgeted for production of 2,800 units in April, but actual production was 2,900 units. The company used 21,200 liters of direct material to produce this output. The company purchased 19,100 liters of the direct material at $1.60 per liter. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for April is:
Answer:
the material quantity variance is $1,350 unfavorable
Explanation:
The computation of the material quantity variance is given below:
Materials quantity variance is
= (Actual quantity × Standard price) - (Standard quantity × Standard price)
= (21,200 × $1.50) - [(2,900 × 7) × 1.5]
= $31,800 - $30,450
= $1,350 Unfavourable
Hence, the material quantity variance is $1,350 unfavorable
The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda $ 180,000 Adams 160,000 Fergie 150,000 Gomez 140,000 Total capital $ 630,000 Answer each of the following independent questions: Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $183,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners
Answer:
Goodwill Calculation
Amount paid to Fergie $183,000
Less: Fergie Capital $150,000
Goodwill $33,000
Fergie's share is 20% in Goodwill. Total Goodwill = $33,000 / 20% = $165,000
Calculation of Capital Balance After Fergie's retirement
Pineda Adams Fergie Gomez Total
Opening Balance $180,000 $160,000 $150,000 $140,000 $630,000
Add: Goodwill $49,500 $49,500 $33,000 $33,000 $165,000
(Distributed - 3:3:2:2)
Less: Amount Paid - - ($183,000) - ($183,000)
Balance $229,500 $209,500 - $173,000 $612,000
Department C is the first stage of Cohen Corporation's production cycle. The following equivalent unit information is available for conversion costs for the month of September:
Beginning work-in-process inventory (20% complete) 82000
Started in September 1410000
Completed in September and transferred to Department D 1220000
Ending work-in-process inventory (80% complete) 272000
Using the FIFO method, the equivalent units for the conversion cost calculation are:_______.
a. 1,421,200
b. 1,220,000
c. 1,203,600
d. 1,355,600
e. None of the above
Answer:
The correct option is a. 1,421,200.
Explanation:
Note: See the attached excel file for the calculation of the equivalent units for the conversion cost calculation.
In the attached excel file, the following working is used:
Units started and completed = Completed in September and transferred to Department D - Beginning work-in-process inventory = $1,220,000 - $82,000 = $1,138,000
From the attached excel file, we have:
Total equivalent units = $1,421,200
Therefore, the correct option is a. 1,421,200.
By the time you turn 30 years old, what insurance do you expect to have?
Phone Insurance
Renter's Insurance
Homeowner's Insurance
Health Insurance
Life Insurance
Car Insurance
honestly you would need all of them because they are very important to have as you get older
hich of the following constitutes a proposal of actions required by an
hieve its objectives?
A. Financial resources
B. Leading
C. Organising
D. Planning
Answer:
not sure but i think the answer is c)
Explanation:
Answer:
B
Explanation:
Lower property taxes
It is enough to describe the proposed business as a sole proprietorship in the business description
section. True or False?
It is enough to describe a proposed business as a sole proprietorship in the business description section alone. Therefore, it's logically true.
A sole proprietorship simply refers to a form of business where there's only one owner who controls the business. Such a person bears the profit and the loss of the company alone.
It should be noted that it is enough to describe a proposed business as a sole proprietorship in the business description section alone. This is because it's usually a small business and owned by one person.
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The Paralympic committee’s marketing team developed a mass-communication TV spot to raise awareness of the Paralympic brand. This type of TV spot is an example of ________.
A- Advertising
B- Guerilla marketing
C- Digital Marketing
The Rosa model of Mohave Corp. is currently manufactured as a very plain umbrella with no decoration. The company is considering changing this product to a much more decorative model by adding a silk-screened design and embellishments. A summary of the expected costs and revenues for Mohave's two options follows:
Rosa Umbrella Decorated Umbrella
Estimated demand 22,000 units 22,000 units
Estimated sales price $24.00 $34.00
Estimated manufacturing cost per unit
Direct materials $14.50 $16.50
Direct labor 3.50 6.00
Variable manufacturing overhead 2.50 4.50
Fixed manufacturing overhead 5.00 5.00
Unit manufacturing cost $25.50 $32.00
Additional development cost $10,000
Required:
1. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations.
2. Should Mohave add decorations to the Rosa umbrella?
3-a. Suppose that the higher price of the decorated umbrella is expected to reduce estimated demand for this product to 20,000 units. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations.
3-b. Should Mohave add decorations to the Rosa umbrella?
Answer:
Mohave Corp.
1. The increase in profit if Mohave sells the Rosa Umbrella with the additional decorations is:
= $67,000.
2. Mohave should add the decorations to the Rosa Umbrella. It makes some profits unlike when the Umbrella is without decorations.
3a. The increase in profit if Mohave sells the Rosa Umbrella with the additional decorations is:
= $63,000.
3b. Mohave should still add the decorations to the Rosa Umbrella. It makes some profits unlike when the Umbrella is without decorations.
Explanation:
a) Data and Calculations:
Rosa Umbrella Decorated Umbrella
Estimated demand 22,000 units 22,000 units
Estimated sales price $24.00 $34.00
Estimated manufacturing cost per unit
Direct materials $14.50 $16.50
Direct labor 3.50 6.00
Variable manufacturing overhead 2.50 4.50
Fixed manufacturing overhead 5.00 5.00
Unit manufacturing cost $25.50 $32.00
Additional development cost $10,000
Total revenue $528,000 $748,000
Total manufacturing cost 561,000 704,000
Additional development costs 10,000
Operating profit ($33,000) $34,000
Increase in profit = $67,000 = ($33,000) - $34,000
Decreased Demand to 20,000:
Total revenue $528,000 $680,000
Total manufacturing cost 561,000 640,000
Additional development costs 10,000
Operating profit ($33,000) $30,000
Increase in profit = $63,000 = ($33,000) - $30,000
Upton Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, Long and Short, about which it has provided the following data: Long Short Direct materials per unit$15.00 $48.80 Direct labor per unit$17.60 $51.20 Direct labor-hours per unit 0.80 2.40 Annual production 40,000 20,000 The company's estimated total manufacturing overhead for the year is $4,547,200 and the company's estimated total direct labor-hours for the year is 80,000. The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Activities and Activity MeasuresEstimated Overhead Cost Direct labor support (DLHs) $3,081,600 Setting up machines (setups) 441,600 Part administration (part types) 1,024,000 Total $4,547,200 Expected Activity Long Short Total DLHs32,000 48,000 80,000 Setups1,220 1,900 3,120 Part types980 2,860 3,840 The unit product cost of product Long under the company's traditional costing system is closest to:
Answer:
Unitary cost= $78.07
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= 4,547,200 / 80,000
Predetermined manufacturing overhead rate= $56.84 per direct labor hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 56.84*0.8= $45.47
Finally, the unitary cost:
Unitary cost= 15 + 17.6 + 45.47
Unitary cost= $78.07
Colbert operates a catering service on the accrual method. In November of year 1, Colbert received a payment of $9,000 for 18 months of catering services to be rendered from December 1st of year 1 through May 31st of year 3. When must Colbert recognize the income if his accounting methods are selected to minimize income recognition?
a. $500 is recognized in year 1, $6,000 in year 2, and $2,500 in year 3.
b. $500 is recognized in year 1 and $8,500 in year 2.
c. $9,000 is recognized in year 3.
d. $2,500 is recognized in year 1 and $6,500 in year 2.
e. $9,000 is recognized in year 1.
Answer:
b) $500 is recognized in year 1 and $8,500 in year 2.
Explanation:
Calculation to determine When must Colbert recognize the income if his accounting methods are selected to minimize income recognition?
Calculation for amount recognized in year 1
Payment in year 1= $9,000 ÷ 18 months
Payment in year 1= $500
Therefore Based on the above calculation the amount recognized in year 1 will be $500
Calculation for the amount recognized in year 2
Payment in year 2 = $9,000 - $500
Payment in year 2= $8,500
Therefore The amount recognized in year 2 will be $8,500
Assume initially that the price of X (the quantity of which is measured on the horizontal axis) is $9 and the price of Y (the quantity of which is measured on the vertical axis) is $4. If the price of X now declines to $6, the budget line will Multiple Choice be unaffected. shift outward on the vertical axis. shift inward on the horizontal axis. shift outward on the horizontal axis.
Answer:
The budget line will shift outward on the horizontal axis.
Explanation:
One of the laws of the demand is that the lower the price of a good, the higher the quantity of that good that is purchased.
From the question, a decline in the price of X from $9 to $6, will lead to an increase in the quantity of X that is bought.
Since the price of Y still remains at $4, if the price of X now declines to $6, the budget line will shift outward on the horizontal axis.
The management of Arkansas Corporation is considering the purchase of a new machine costing $490,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information, use the following data in determining the acceptability in this situation:
Year Income from Operations Net Cash Flow
1 $100,000 $180,000
2 40,000 120,000
3 40,000 100,000
4 10,000 90,000
5 10,000 120,000
The net present value for this investment is:_______
a. $(126,800)
b. $(16,170)
c. $55,200
d. $36,400
Answer:
b. $(16,170)
Explanation:
The net present value of the investment is present value of net cash flows discounted at the company's desired rate of return of 10% minus the initial investment outlay of $490,000 as shown thus:
NPV=($180,000*0.909)+($120,000*0.826)+($100,000*0.751)+($90,000*0.683)+($120,000*0.621)-$490,000
NPV= $473,830-$490,000
NPV= $(16,170)
It is obvious that the correct option in this case is B
Standard quantity 7.0 liters per unit Standard price $ 1.50 per liter Standard cost $ 10.50 per unit The company budgeted for production of 2,800 units in April, but actual production was 2,900 units. The company used 21,200 liters of direct material to produce this output. The company purchased 19,100 liters of the direct material at $1.60 per liter. The direct materials purchases variance is computed when the materials are purchased. The materials quantity variance for April is
Answer:
$1,350U
Explanation:
Calculation to determine what The materials quantity variance for April is
Using this formula
Materials quantity variance=(AQ-SQ)*SP
Let plug in the formula
Materials quantity variance=[21,200 liters-(2,900 units*7.0 liters )*$ 1.50
Materials quantity variance{(21,200-20,300)*$1.50
Materials quantity variance=900*$1.50
Materials quantity variance=$1,350 U
Therefore the Materials quantity variance is $1,350 Unfavorable
Can someone please help me
Answer:
A. $1,178.705
B. $1,753.05
C. $1,474.305
Explanation:
a. Calculation to determine the monthly mortgage payment of $159,500, 25-year loan at 7.5 percent.
Using this formula
Installment=Loan amount/1,000*(Table value 7.5% for 25 years)
Let plug in the formula
Installment=$159,500/$1,000*7.39
Installment=$1,178.705
Therefore the monthly mortgage payment of $159,500, 25-year loan at 7.5 percent will be $1,178.705
b. Calculation to determine the monthly mortgage payment of $217,500, 20-year loan at 7.5 percent.
Using this formula
Installment=Loan amount/1,000*(Table value 7.5% for 20 years)
Let plug in the formula
Installment=$217,500/$1,000*8.06
Installment=$1,753.05
Therefore the monthly mortgage payment of $217,500, 20-year loan at 7.5 percent will be $1,753.05
c. Calculation to determine the monthly mortgage payment of $199,500, 25-year loan at 7.5 percent.
Using this formula
Installment=Loan amount/1,000*(Table value 7.5% for 25 years)
Let plug in the formula
Installment=$199,500/$1,000*7.39
Installment=$1,474.305
Therefore the monthly mortgage payment of $199,500, 25-year loan at 7.5 percent will be $1,474.305
Company A is a manufacturer with sales of $3,400,000 and a 60% contribution margin. Its fixed costs equal $1,600,000. Company B is a consulting firm with service revenues of $3,500,000 and a 25% contribution margin. Its fixed costs equal $410,000. Compute the degree of operating leverage (DOL) for each company. Which company benefits more from a 20% increase in sales.
Answer:
DOL of Company A= 4.63
DOL of Company B=1.88
Company A benefits more from a 20% increase in sales
Explanation:
The degree of operating leverage measures the volatility in the operating profit of a business as result of the proportion of fixed cost to its total costs.
The operating Leverage = Contribution margin/Operating income
Contribution = Contribution % × sales value
Operating income = Contribution - Fixed cost
Company A
Contribution margin= 60%× 3,400,000 = 2,040,000
Operating income = 60%× 3,400,000 - 1,600,000= 440,000
DOL =2,040,000 /440,000 = 4.634
DOL of Company A= 4.63
Company B
Contribution margin= 25%× 3,500,000=875000
Operating income = 875,000 - 410,000 =465000
DOL = 875,000 /465,000 × 100 =1.88
DOL=1.88
If both companies experience an increase of 20%, the corresponding increase in profit would be:
Company A= 4.63× 20= 92.6%
Company B = 1.88 × 20 = 37.6%
Company A benefits more
DOL of Company A= 4.63
DOL of Company B=1.88
Company A benefits more from a 20% increase in sales