Cooperton Mining just announced it will cut its dividend from $4.01 to $2.57 per share and use the extra funds to expand. Prior to the​ announcement, Cooperton's dividends were expected to grow at a 3.4% ​rate, and its share price was $50.07. With the planned​ expansion, Cooperton's dividends are expected to grow at a 4.7% rate. What share price would you expect after the​ announcement? (Assume that the new expansion does not change​ Cooperton's risk.) Is the expansion a good​ investment?

Answers

Answer 1

Answer:

$34.35

The price has fallen from $50.07 to $34.35 which means that Expansion will not be a good option.

Explanation:

Computation for the share price to expect after the announcement

Using this formula

Ke = [ D1 / P0 ] +g

Where,

D1 =$4.01

P0 = $50.07

g =3.4%

Let plug in the formula

Ke = [ D1 / P0 ] +g

Ke= [ $4.01 / $50.07] + 0.034

Ke= 0.0800+ 0.034

Ke= 0.1140

Second step is to find the Price after Expansion using this formula

P0 = D1 / [ Ke - g ]

Where,

D1=$2.57

Ke=0.1140

g=4.7%

Let plug in the formula

P0= $ 2.57 / [ 0.1140 - 0.047 ]

P0=$2.57/0.067

P0=$ 34.35

Based on this calculation, we can see that the price has fallen from $50.07 to $34.35 which means that Expansion will not be a good option.

Therefore the share price that you would expect after the​ announcement will be $34.35


Related Questions

Panner, Inc., owns 30 percent of Watkins and applies the equity method. During the current year, Panner buys inventory costing $126,000 and then sells it to Watkins for $180,000. At the end of the year, Watkins still holds only $26,400 of merchandise. What amount of gross profit must Panner defer in reporting this investment using the equity method

Answers

Answer:

The gross profit that will be deferred is $2376

Explanation:

The cost of inventory = $126000

Selling price of inventory (revenue) = $180000

The remaining inventory with Watkins = $26400

Gross profit percentage = (revenue – cost) / revenue

Gross profit percentage = (180000 – 126000) / 180000 = 0.3 or 30%

Remaining value = $26400 × 30% = 7920

Ownership = 7920 × 30% = $2376

The gross profit that will be deferred is $2376

Justin hires Miguel to sell his baseball glove for $560. As part of their contract, Justin will pay him $100 to conduct the sale. Justin is a _______________________. Group of answer choices

Answers

Answer: Factee

Explanation:

This is a factorage transaction in which Justin will pay Miguel to act as an intermediary who will sell the baseball glove and receive a commission. That commission is known as a Factorage.

In a Factorage transaction, the intermediary being paid to sell the product is considered to be the Factor and the person who will pay for the product to be sold is the Factee. Justin in this scenario is paying for the baseball glove to be sold and so is the Factee.

Use the following information for Jett Co. to answer the following question: 2015 2014 Sales 1,200 1,000 COGS 850 700 Operating Expenses 200 200 Income Taxes 30 35 Jett Co.'s average tax rates for 2015 and 2014 are: A. 15.5% and 10.0% B. 20.0% and 35.0% C. 25.8% and 35.4%. D. 31.4% and 36.8%.

Answers

Answer:

B. 20.0% and 35.0%

Explanation:

Jett Co.'s Average tax rates for 2015 = Income taxes paid / Taxable income

When, Taxable Income = Sales - Cost of goods sold - Operating expenses

= $1,200 - $850 - $200

= $150

Hence, Jett Co.'s Average tax rates for 2015 = $30 / $150

= 20%

Jett Co.'s Average tax rates for 2014 = Income taxes paid / Taxable income

When Taxable Income = Sales - Cost of goods sold - Operating expenses

= $1,000 - $700 - $200

= $100

Hence,  Jett Co.'s Average tax rates for 2014 = $35 / $100

= 35%

Lincoln Park Co. has a bond outstanding with a coupon rate of 5.66 percent and semiannual payments. The yield to maturity is 6.3 percent and the bond matures in 16 years. What is the market price if the bond has a par value of $2,000?

Answers

Answer:

Market price of Bond = $1872.135629 rounded off to $1872.14

Explanation:

To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = 2000 * 0.0566 * 1/2 = $56.6

Total periods (n)= 16 * 2 = 32

r = 6.3% * 1/2 = 3.15% or 0.0315

The formula to calculate the price of the bonds today is attached.

Bond Price = 56.6 * [( 1 - (1+0.0315)^-32) / 0.0315]  +  2000 / (1+0.0315)^32

Bond Price = $1872.135629 rounded off to $1872.14

Given the following cash flows for a capital project, calculate its payback period and discounted payback period. The required rate of return is 8 percent.
Year
0 1 2 3 4 5
Glass Flows $51100 $13150 $16050 $23900 $12400 $3050
The discounted payback period is:________.
a. 0.39 year longer than the payback period.
b. 0.64 year longer than the payback period.
c. 0.76 years longer than the payback period.
d. 0.25 years longer than the payback period.

Answers

Answer:

c. 0.76 years longer than the payback period.

Explanation:

Payback period calculates how long it takes to recover the amount invested in a project from its cumulative cash flows.

the amounted invested in the project = $-51100

In year 1, the amount recovered = $-51,100 + $13150 = $-37,950

In year 2, the amount recovered =  $-37,950 + $16050 = $-21,900

In year 3, the amount recovered =  $-21,900 + $23900 = $2000

the amount invested is recovered in 2 + 21,900 / 23900 = 2.92 years

Discounted payback period calculates how long it takes to recover the amount invested in a project from its cumulative cash flows.

discounted cash flows

$13150 / 1.08 = $12,175.93

$16050 / 1.08^2 = $13,760.29

$23900 / 1.08^3 = $18972.59

$12400 / 1.08^4 = $9114.37

the amount is recovered in 3 + 6191.19 / 9114.37 = 3.68 years

the discounted payback is longer than the payback period by 3.68 years - 2.92 years = 0.76 years

Nichols Enterprises has an investment in 31,500 bonds of Elliott Electronics that Nichols accounts for as a security available for sale. Elliott bonds are publicly traded, and The Wall Street Journal quotes a price for those bonds of $10 per bond, but Nichols believes the market has not appreciated the full value of the Elliott bonds and that a more accurate price is $23 per bond. Nichols should carry the Elliott investment on its balance sheet at:

Answers

Answer: $315,000

Explanation:

From the question, we are informed that Nichols Enterprises has an investment in 31,500 bonds of Elliott Electronics that Nichols accounts for as a security available for sale. Elliott bonds are publicly traded, and The Wall Street Journal quotes a price for those bonds of $10 per bond, but Nichols believes the market has not appreciated the full value of the Elliott bonds and that a more accurate price is $23 per bond.

To get the amount that Nichols should carry on the balance sheet as Elliott investment, we multiply the bond invested by the price per bond. This will be:

= 31,500 × $10

= $315,000

In a duopoly game we observe the following payouts: if the two firms collude they will each earn $50,000. If one firm cheats then he earns $60,000 and the other firm earns -$10,000. If both firms cheat then they each earn zero economic profit. In this game what is the Nash equilibrium?

Answers

Answer:

the Nash equilibrium for both players is to collude

Explanation:

A duopoly is when there are two firms operating in an industry.

Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.

Dominant strategy is the best option for a player regardless of what the other player is playing.

Nash equilibrium is the best outcome for players where no player has an incentive to change their decisions.

 the Nash equilibrium for both players is to collude because it is the best outcome for both players. if, a player cheats, there is a chance that the other player would cheat and both firms would end up earning a zero economic profit

Based on the various payoffs to be made, the Nash Equilibrium for this game would be that both firms should collude.

The Nash Equilibrium is the outcome that would be most beneficial for both firms to stay in. If either of them leave, they would incur losses.

If both firms decide to collude and one cheats, the other firm would cheat as well to avoid making a loss which would lead to both of them making zero economic profit.

Both firms will therefore collude so as to make $50,000 a piece.

In conclusion, the Nash Equilibrium is collusion between the two firms.

Find out more at https://brainly.com/question/7141724.

Bogart Company is considering two alternatives. Alternative A will have revenues of $147,400 and costs of $103,400. Alternative B will have revenues of $188,200 and costs of $121,600. Compare Alternative A to Alternative B showing incremental revenues, costs, and net income.

Answers

Answer:

B is better than A

Explanation:

Here, we want to compare “A” to “B”. It means if B’s amount is higher than A’s amount, it should be positive; If B’s amount is lower than A’s amount, it should be negative.

Net income for each alternative = Revenues – Costs

Since the net income is positive, B is better than A.

Please check attachment for for actual tabular calculations

Suppose the price level and value of the U.S. Dollar in year 1 are 1 and $1, respectively. Instructions: Round your answers to 2 decimal places. a. If the price level rises to 1.55 in year 2, what is the new value of the dollar

Answers

Answer: $0.65

Explanation:

The Price Level and the value of a currency are inversely related because inflation erodes the value of the currency. Therefore if the price level increases, the value of the currency drops. The reverse is true.

The formula therefore is is;

New Value = [tex]\frac{1}{Price Level}[/tex]

New Value = [tex]\frac{1}{1.55}[/tex]

New Value = 0.6452

New Value = $0.65

A machine can be purchased for $140,000 and used for five years, yielding the following net incomes. In projecting net incomes, straight-line depreciation is applied, using a five-year life and a zero salvage value.
Year 1 Year 2 Year 3 Year 4 Year 5
Net income $ 9,500 $ 23,500 $ 64,000 $ 35,500 $ 94,000
Compute the machine’s payback period (ignore taxes). (Round your intermediate calculations to 3 decimal places and round payback period answer to 3 decimal places.)
Year Net Income Depreciation Net Cash Flow Cumulative Cash Flow
0 $ (140,000) $ (140,000)
1 $ 9,500
2 23,500
3 64,000
4 35,500 0
5 94,000 0
Payback period =

Answers

Answer:

2.554 years

Explanation:

Payback period calculates the amount of time it takes to recover the amount invested in a project from its cumulative cash flows.

to derive cash flow from net income, add depreciation back

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

$140,000 / 5 = $28,000

depreciation expense each year would be $28,000

cash flow in year 1 = $9500 +  $28,000 = $37,500

cash flow in year 2= $23,500 + $28,000 =$51,500

cash flow in year 3 =$64,000 + $28,000 = $92,000

cash flow in year 4 =$35,500 + $28,000 = $63,500

cash flow in year 5 =$94,000 + $28,000 = $122,000

in year 1, the amount recovered = $-140,000 + $37,500 = $-102,500

in year 2, the amount recovered = $-102,500 + $51,500 = $-51,000

in year 3, the amount recovered =  $-51,000 + $92,000 = $41,000

the amount invested is recovered in 2 years + 51,000 / 92,000 = 2.554 years

You experiment by offering free warranties for your product in market A but not in market B. Sales in A rise from 240 to 360 units per week while sales in B rise from 410 to 430. The Difference-in-difference estimate of the effect of the free warranty is:

Answers

Answer:

Difference in difference estimate = 50 - 5% = 45 %

Explanation:

a) Data and Calculations:

                           Market A          Market B

Sales                       240                   410

Sales rise                360                   430

Rise difference       120                     20

Percentage of rise  50%                    5%

120/240 x 100 = 50%

20/41 x 100 = 4.878% or 5%

Therefore, the Difference in difference estimate = 50 - 5% = 45 %

One can then say that the free warranties in market A brought about a difference in difference of 45% in Market A when compared to the no warranties in Market B.  This can be seen from the presented data.  Sales in A rose from 240 units to 360 units, an increase of 120 units or 50%.  Sales in market B only rose from 410 to 430, an increase of 20 units or 5%.  This difference in difference estimator shows the effect of the free warranty on market A and market B.  This means that the firm could do better by introducing the free warranties for its product in market B, all things being equal.

Galvatron Metals has a bond outstanding with a coupon rate of 6.1 percent and semiannual payments. The bond currently sells for $947 and matures in 23 years. The par value is $1,000 and the company's tax rate is 40 percent. What is the company's aftertax cost of debt

Answers

The price would be 0000100

A company earned $7,605 in net income for October. Its net sales for October were $19,500. Its profit margin is:

Answers

Answer: 39%

Explanation:

From the question, we are informed that company earned $7,605 in net income for October and that its net sales for October were $19,500.

To calculate its profit margin, we have to divide the net income by the net sales. This will be:

= 7605/19500

= 0.39

= 39%

On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of Sales Company for $350,000. On that date. Sales Company's stockholders' equity consisted of common stock, $100,000; other contributed capital, $40,000; and retained earnings, $140,000. Pert Company paid more than the book value of net assets acquired because the recorded cost of Sales Company's land was significantly less than its fair value.
During 2014 Sales Company earned $148,000 and declared and paid a $50,000 dividend. Pert Company used the partial equity method to record its investment in Sales Company.
Required:
1. Prepare the investment-related entries on Pert Company's books for 2014.
2. Prepare the working paper eliminating entries for a working paper on December 31, 2014.

Answers

Answer and Explanation:

The journal entries are shown below:

a. For investment related entries

Investment in sales Dr $350,000

          To cash $350,000

(being the investment is recorded)

Investment in sales Dr ($148,000 × 85%) $125,800

          To Subsidiary income $125,800

(Being the investment in sales is recorded)

Cash Dr $42,500

      To Dividend income $42,500

(Being the dividend income is recorded)

b. For work paper eliminating entries

Equity income ($148,000 × 85%) $125,800

      To Dividend $42,500

      To investment in sales $83,300

(Being the equity income is recorded)

Common stock Dr $100,000

Other contributed capital Dr $40,000

Retained earnings Dr $140,000

Difference between implied and book value Dr $131,765 (Bal figure)

          To Investment in S Company $350,000

          To Non controlling interest $61,765  ($350,000 ÷ 0.85 × 0.15)

(Being the consolidated items are recorded)

Land Dr $131,765

         To Difference between implied and book value Dr $131,765

(Being the land is recorded)

Working note:

Particulars         Parent share    Non-conrolling interest   Total value

Purchase price

& implied value  $350,000       $61,765                            $411,765

Less:

Book value          -$238,000    -$42,000                          -$280,000

Difference

amount                $112,000          $19,765                           $131,765

Less:

Land value           -$112,000        -$19,765                         -$131,765

Balance                 $0                    $0                                  $0                    

A bond has a $1,000 par value, 20 years to maturity, and pays a coupon of 5.5% per year, annually. The bond is callable in ten years at $1,075. If the bond’s yield to maturity is 5.89% per year, what is its yield to call? Question 13 options: A) 5.87% B) 6.57% C) 6.11% D) 6.43% E) 6.68%

Answers

Answer:

6.68% , option E is correct

Explanation:

The price of the bond can be computed using the below formula for bond price calculation:

bond price=face value/(1+r)^n+coupon*(1-(1+r)^-n)/r

face value is $1000

r is the yield to maturity which is 5.89%

coupon=face value*coupon rate=1000*5.5%=55

n is the number of coupons the bond would pay which is 11 coupons over 20 years

bond price=1000/(1+5.89%)^20+55*(1-(1+5.89%)^-20)/5.89%

bond price=$ 954.87  

The yield on the call can be determined using excel rate function as further explained below:

=rate(nper,pmt,-pv,fv)

nper is the number of coupons the bond would pay before being called in ten years' time i.e 10 coupons

pmt is the is the amount of  annual coupon=$1000*5.5%=$55

pv is the current price of $954.87  

fv is the call price which is $1,075

=rate(10,55,-954.87,1075)=6.68%

Constanza, who is single, sells her current personal residence (adjusted basis of $262,500) for $735,000. She has owned and lived in the house for 30 years. Her selling expenses are $36,750. What is Constanza’s realized and recognized gain? Constanza’s realized gain is $ and her recognized gain would be $ .

Answers

Answer:

Realized gain $435,750

Recognized gain$ 185,750

Explanation:

Calculation for Constanza’s realized and recognized gain

The realized gain will be calculated as :

Amount realized $698,250

($735,000 − $36,750)

Less the Adjusted basis ($262,500)

Realized gain $435,750

Constanza’s Recognised gain

Realized gain $435,750

Less Section 121 exclusion ($250,000)

Recognized gain$ 185,750

Therefore Constanza’s realized gain is $435,750 and her recognized gain would be $186,750 .

When a country produces on its production possibilities curve, then this country's unemployment is expected to be at one of its lowest rates, however, prices in this country are not expected to be relatively low.

a. True
b. False

Answers

Answer:

TRUE

Explanation:

the production possibility curve shoes the number of goods that can be produced in an economy when its resources are fully employed.

if a country produces on its production possibilities curve, it means that its resources are fully employed and so unemployment would be at its lowest.

Barb Campbell owns an entertainment company which has increased both its profits and revenues over an extended period of time. Barb's firm is experiencing:

Answers

Answer:

sustained growth

Explanation:

Based on this information it seems that Barb's firm is experiencing sustained growth. This term refers to the realistically attainable amount of growth that a company can have without running into problems. If a business grows way too fast it will not be able to fund that growth, but if they do not grow enough then they will amass debt and fail. Sustainable Growth is usually the goal for new companies.

The balanced scorecard approach relies not only on financial performance measures, but includes customers, internal business processes, and organizational learning and growth.
a. True
b. False

Answers

Answer:

Explain: false

A 30 year $1,000 par 4 3/4% Treasury Bond is quoted at 95-11 - 95-15. The note pays interest on Jan 1st and Jul 1st. A customer buys 1 bond at the ask price. What is the current yield, disregarding commissions

Answers

Answer:

4.98%

Explanation:

Calculation for the current yield

First step

Since the the bond was purchased at 95 +15/32nds this means that we have to find the bond percentage.

Calculated as

Bond Percentage = 95 + 15/32nds

Bond percentage =95.46875%

Second step is to multiply the bond percentage by $1,000

95.46875% *$1,000

= $954.6875

The last step is to find the current yield

Current yield=$47.50 /$954.6875

Current yield = 4.98%

Therefore the current yield will be 4.98%

Lindon Company is the exclusive distributor for an automotive product that sells for $34.00 per unit and has a CM ratio of 30%. The company’s fixed expenses are $193,800 per year. The company plans to sell 21,600 units this year. Required: 1. What are the variable expenses per unit? (Round your "per unit" answer to 2 decimal places.) 2. What is the break-even point in unit sales and in dollar sales? 3. What amount of unit sales and dollar sales is required to attain a target profit of $91,800 per year? 4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3.40 per unit. What is the company’s new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of $91,800?

Answers

Answer:

1. $23.80

2. Break even Point (units) = 19,000 units and Break even Point (dollars) = $646,000

3. Unit sales to attain a target profit = 28,000 units and Dollar sales to attain a target profit = $952,000

4. Break even Point (units) = 28,500 units, Break even Point (dollars) = $969,000 and Dollar sales to attain a target profit = $1,428,000.

Explanation:

Variable Cost % = 100% - 30%

                           = 70%

Thus, variable expenses per unit = $34.00 × 70%

                                                       = $23.80

Break even Point is the level of activity where a firm makes neither a profit nor a loss.

Break even Point (units) = Fixed Cost / Contribution per unit

                                        = $193,800 / ($34.00 ×30%)

                                        = $193,800 / $10.20

                                        = 19,000 units

Break even Point (dollars) = Fixed Cost / CM Ratio

                                           = $193,800 / 0.30

                                           = $646,000

Unit sales to attain a target profit = (Fixed Cost + Target Profit) / Contribution per unit

                                                       = ($193,800 + $91,800) / $10.20

                                                       = 28,000

Dollar sales to attain a target profit = (Fixed Cost + Target Profit) / CM Ratio

                                                       = ($193,800 + $91,800) / 0.30

                                                       = $952,000

When variable expenses reduce by $3.40 per unit.

Break even Point (units) = Fixed Cost / Contribution per unit

                                        = $193,800 / ($34.00 - $23.80 - $3.40 )

                                        = $193,800 / $6.80

                                        = 28,500 units

Break even Point (dollars) = Fixed Cost / CM Ratio

                                           = $193,800 / ($6.80/ $34.00)

                                           = $969,000

Dollar sales to attain a target profit = (Fixed Cost + Target Profit) / CM Ratio

                                                       = ($193,800 + $91,800) / 0.20

                                                       = $1,428,000

Meginnis Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.20 Direct labor $ 3.75 Variable manufacturing overhead $ 1.65 Fixed manufacturing overhead $ 2.60 Fixed selling expense $ 0.50 Fixed administrative expense $ 0.40 Sales commissions $ 1.50 Variable administrative expense $ 0.50 If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to

Answers

Answer:

$53,700

Explanation:

Direct manufacturing cost = (Direct material per unit + Direct labor per unit) * Units produced

=($5.20 + $3.75) * 6,000 units

=$8.95 * 6,000

=$53,700

The total amount of direct manufacturing cost incurred is closest to $53,700

g The aggregate supply curve shifts A. rightward if the money wage rate falls. B. leftward if the aggregate demand curve shifts leftward. C. rightward if potential GDP decreases. D. leftward if potential GDP increases. E. rightward if the money wage rate rises.

Answers

Answer:

The correct option to the question above is option A "rightward if the money wage rate falls."

Explanation:

The aggregate supply curve is a graphical illustration of how the total quantity of goods and services is available for a given price and time.

When the aggregate supply curve shifts to the right, it increases. While, when the aggregate supply curve shifts to the left, it decreases.

An increase in the aggregate supply curve shows a fall in price, which makes a high price level resulting in a greater supply of real GDP.

Money wages is the amount of money paid in wages. Money wages is indirectly proportional to real wages. The aggregate supply curve decreases if the money wage rate increases and the aggregate supply curve increases when the money wage rate falls.

Aggregate supply is affected by GDP. When A GDP decreases, it also decreases aggregate supply.

To reduce product development time, Caterpillar connected its engineering and manufacturing divisions with its active suppliers, distributors, overseas factories, and customers, through ________.

Answers

Answer: an extranet

Explanation:

An extranet is a private network that is controlled that gives access to vendors, suppliers, partners, vendors or a group of customers that are authorized.

Therefore, to reduce product development time, Caterpillar connected its engineering and manufacturing divisions with its active suppliers, distributors, overseas factories, and customers, through an extranet.

On June 10, 20X8, Playoff Corporation acquired 100 percent of Series Company's common stock. Summarized balance sheet data for the two companies immediately after the stock acquisition are as follows:
Playoff Corp. Series Company
Item Book Value Fair Value
Cash $ 15,000 $ 5,000 $ 5,000
Accounts Receivable 30,000 10,000 10,000
Inventory 80,000 20,000 25,000
Buildings & Equipment (net) 120,000 50,000 70,000
Investment in Series Stock 100,000
Total $ 345,000 $ 85,000 $ 110,000
Accounts Payable $ 25,000 $ 3,000 $ 3,000
Bonds Payable 150,000 25,000 25,000
Common Stock 55,000 20,000
Retained Earnings 115,000 37,000
Total $ 345,000 $ 85,000 $ 28,000
Required:
a. Prepare the consolidating entries required to prepare a consolidated balance sheet immediately after the acquisition of Series Company shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
b. Record the excess value (differential) reclassification entry.

Answers

Answer:

a. Consolidating Journal Entries:

Description                             Debit      Credit

June 10, 20X8:

Cash                                      $5,000

Accounts receivable             10,000

Inventory                              25,000

Building & Equipment         70,000

Unrealized Gain on fair value            $25,000

Accounts payable                                   3,000

Bonds payable                                     25,000

Investment in Series Stock                100,000

Excess Value (differential) 43,000

To record consolidating entries in the consolidated parent.

Goodwill                             43,000

Excess Value (differential)                  43,000

To record the reclassification of the excess value as Goodwill on acquisition.

Explanation:

a) Summarized balance sheet data

                                   Playoff Corporation             Series Company

Item                                                                    Book Value   Fair Value

Cash                                      $ 15,000               $ 5,000          $ 5,000

Accounts Receivable              30,000                 10,000            10,000

Inventory                                 80,000                 20,000           25,000

Buildings & Equipment (net) 120,000                 50,000           70,000

Investment in Series Stock   100,000

Total                                   $ 345,000              $ 85,000       $ 110,000

Accounts Payable              $ 25,000                 $ 3,000          $ 3,000

Bonds Payable                     150,000                  25,000          25,000

Common Stock                     55,000                  20,000

Retained Earnings               115,000                   37,000

Total                                $ 345,000                $ 85,000       $ 28,000

b) Consolidated entries are made for assets and liabilities acquired of the subsidiary using fair values.  An unrealized gain on fair value account is created to account for the differences in fair values.  Any excess or differential after consolidation and above the fair values is regarded as Goodwill arising from the acquisition.

The following is information for Palmer Co.:
2017 2016 2015
Cost of goods sold $643,825 $426,650 $391,300
Ending inventory 97,400 87,750 92,500
Required:
(a) Use the above information to compute inventory turnover for 2016, and its days' sales in inventory at December 31, 2016.
Numerator / Denominator = Ratio
Inventory turnover $426,650 / $90,125 = 4.7 times
Days' sales in inventory ?
(b) Use the above information to compute inventory turnover for 2017, and its days' sales in inventory at December 31, 2017.
Numerator / Denominator = Ratio
Inventory turnover $643,825 / $92,575 = 7.0times
Days' sales in inventory ?

Answers

Answer:

a.

i. 4.7 times

ii. 77.1 days

b

i. 7 times

ii. 52.1 days

Explanation:

Inventory turnover = cost of goods sold / average inventory

average inventory for 2016 = ( 87,750 + 92,500 ) / 2 = $90,125

Inventory turnover $426,650 / $90,125 = 4.7 times

Days' sales in inventory = 365 / inventory turnover = 77.1 days

for 2017

inventory turnover = cost of goods sold / average inventory

average inventory for 2017 = ( 97,400 + 87,750 ) / 2 = $92,575

Inventory turnover $643,825 / $92,575 = 7.0 times

Days' sales in inventory = 365 / inventory turnover = 52.1 days

Danaher Woodworking Corporation produces fine furniture. The company uses a job-order costing system in which its predetermined overhead rate is based on capacity. The capacity of the factory is determined by the capacity of its constraint, which is an automated lathe. Additional information is provided below for the most recent month: Estimates at the beginning of the month: Estimated total fixed manufacturing overhead $ 36,400 Capacity of the lathe 400 hours Actual results: Actual total fixed manufacturing overhead $ 36,400 Actual hours of lathe use 380 hours Required: a. Calculate the predetermined overhead rate based on capacity. b. Calculate the manufacturing overhead applied. c. Calculate the cost of unused capacity.

Answers

Answer:

a. Calculate the predetermined overhead rate based on capacity.

$91 per lathe hour

b. Calculate the manufacturing overhead applied.

$34,580

c. Calculate the cost of unused capacity.

$1,820

Explanation:

Estimated total fixed manufacturing overhead $36,400

Capacity of the lathe 400 hours

predetermined overhead rate per lathe hour = $36,400 / 400 = $91

actual results:

Actual total fixed manufacturing overhead $36,400

Actual hours of lathe use 380 hours

applied overhead = $91 x 380 lathe hours = $34,580

cost of unused capacity = $36,400 - $34,580 = $1,820

The American car battery industry boasts that its recycling rate now exceeds 95%, the highest rate for any commodity. However, with changes brought about by specialization and globalization, parts of the recycling system are moving offshore. This is particularly true of automobile batteries, which contain lead. The Environmental Protection Agency (EPA) is contributing to the offshore flow with newly implemented standards that make domestic battery recycling increasingly difficult and expensive. The result is a major increase in used batteries going to Mexico, where environmental standards and control are less demanding than they are in the U.S. One in five batteries is now exported to Mexico. There is seldom difficulty finding buyers because lead is expensive and in worldwide demand. While U.S. recyclers operate in sealed, mechanized plants, with smokestacks equipped with scrubbers and plant surroundings monitored for traces of lead, this is not the case in most Mexican plants. The harm from lead is legendary

Answers

The correct answer to this open question is the following.

The question is incomplete. There are parts of the question missing. Indeed, there is no question posted, it is just a statement.

However, we can do research and comment on the following.

We are facing two scenarios here. Both, ethical dilemmas that need to be solved.

1) as an independent auto repair shop owner that tries to safely dispose of a few old batteries each week. (Your battery supplier is an auto parts supplier who refuses to take your old batteries.)

In this case, I would check the original agreement with the supplier to see if there is a clause on old batteries management. If not, I would ask it to help me solve this issue because I am his client and has to take care of me and the environment. Otherwise, I would have to contemplate the option of changing supplier.  

2) I am the manager of a large retailer responsible for the disposal of thousands of used batteries each day.

In this other case, I would follow the Environmental Department rules and regulations to comply with the correct procedures. This means to ask for support and orientation to get all the revisions to work properly. Because I know all the consequences of not recycling correctly or the damage done to humans and the environment. So although it could be more money, and would modernize my equipment to better manage the disposal of batteries. It would be an investment, not an expense.

"Alou Company has 20,000 beginning finished goods units. Budgeted sales units are 160,000. If management desires 15,000 ending finished goods units, what are the required units of production

Answers

Answer:

155,000

Explanation:

The computation of the required units of production is shown below:-

Required units of production = Sales units + Ending finished goods - Beginning finished goods

= 160,000 units + 15,000 units - 20,000  units

= 155,000

Therefore for computing the required units of production we simply applied the above formula.

Sudoku Company issues 7,000 shares of $7 par value common stock in exchange for land and a building. The land is valued at $45,000 and the building at $85,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building.

Answers

Answer:

The journal entry to record this exchange is :

Land  $45,000 (debit)

Buildings $85,000 (debit)

Common Stocks $49,000 (credit)

Share Premium $81,000 (credit)

Explanation:

The price of Common Stock is equivalent to the price required to settle the Market Cost of Land and Buildings.

Also note that the Common Stocks have a par vale of $7, this means that any amount paid in excess of the par value is accounted in the Share Premium Reserve.

The journal entry to record this exchange is :

Land  $45,000 (debit)

Buildings $85,000 (debit)

Common Stocks $49,000 (credit)

Share Premium $81,000 (credit)

The journal entry for recording the issuance of the stock for exchange for the land and building:

Land $45,000  

Building $85,000  

          To Common stock $49,000 (7,000 shares × $7)

          To Premium on issue of common stock  81,000

(Being recording of the  issuance of the stock in exchange for the land and building)

Learn more: brainly.com/question/17429689

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