Answer:
2.95% and 2.87%
Explanation:
The computation of the approximate real rate and the estimated real interest rate is shown below:
The Approximate real rate is
= Historic annual nominal risk free rate - Annual inflation rate
= 5.71% - 2.76%
= 2.95%
And, the estimated real interest rate is
= (1 + historical annual nominal risk free rate) ÷ (1 + annual inflation rate) - 1
= (1 + 0.0571) ÷ (1 + 0.0276) - 1
= 2.87%
We simply applied the above formulas so that each one could be determined
Data for 2021 were as follows: PBO, January 1, $243,000 and December 31, $278,000; pension plan assets (fair value) January 1, $186,000, and December 31, $233,000. The projected benefit obligation was underfunded at the end of 2021 by:
Answer:
$45,000
Explanation:
Computation for the projected benefit obligation
December 31 PBO($278,000)
December 31 Plan assets 233,000
Funded status($45,000)
Therefore the projected benefit obligation was underfunded at the end of 2021 by: $45,000
Q
In the Metropolis forecast example, we are using cash as a plug number. To keep the examis
simple, we assume that the cash is not sitting in an interest-bearing bank account. Imagine the
cash were in an interest-bearing account, meaning the company would earn interest revenue
based on the cash balance. How would this affect your forecast and forecasting process?
Answer:
Consider average cash balance that was at the end of previous month and estimate the current month average cash balance and add or less any major increment that makes the forecasting realistic.Use excel or other softwares for forecasting purposes as it automatically adjusts the worksheet if corrections or additions are included in the computation.Explanation:
The interest earned would be calculated at the end of every day on the cash balance that the company holds in the interest-bearing bank account.
The cash balance would be adjusted to reflect realistic assumptions were made because unrealistic assumptions makes the forecasting unreasonable and meaningless. The first step is to take the previous month end average cash balance and add in it the current month average balance. This will give us the current month cash balance that will be based on realistic assumptions. Use the excel sheets to take affects of estimated cash and other factors that will change due to the change in the cash balances. Excel will take account of all the factors adjusted in the forecasting sheet and adjust these factor's effects within seconds.
Jewel Service anticipates the following sales revenue over a five-month period: The company's sales are 40% cash and 60% credit. Its collection history indicates that credit sales are collected as follows: How much cash will be collected in January? In February? In March? For the quarter in total? Complete the cash budget to determine how much cash will be collected in January, February, March and for the quarter in total. (Round your answers to the nearest whole dollar.)
Answer:
I looked up the missing information, hopefully it's the same as your question. If not you can adjust the answer.
Its collection history indicates that credit sales are collected as follows:
25% in the month of the sale 50% in the month after the sale 15% two months after the sale 10% are never collectedsales revenue:
November $16,100 December $10,400 January $15,600 February $12,400 March $14,400Jewel Services
Cash Collections budget
For the months of January, February, and March
cash collected from sales January February March Quarter
from November sales $2,415 $2,415
from December sales $5,200 $1,560 $6,760
from January sales $3,900 $7,800 $2,340 $14,040
from February sales $3,100 $6,200 $9,300
from March sales $3,600 $3,600
Total $11,515 $12,460 $12,140 $36,115
Capital budgeting is the process of planning and controlling investments in assets that are expected to produce cash flows for one year or less. This statement is: False True
Answer:
false
Explanation:
Capital budgeting is the process taken to evaluate and determine the profitability of an investment. capital budgeting can be done for projects that have cash flows of more than one year
capital budgeting methods include :
Net present value
internal rate of return
accounting rate of return
payback period
Sales revenue for a sporting goods store amounted to $528,000 for the current period. All sales are on account and are subject to a sales tax of 11?%.
Which of the following would be included in the journal entry to record the sales? transaction?
A. A debit to Accounts Receivable for $ 586,080.
B. A credit to Accounts Receivable for $528,000.
C. A debit to Sales Tax Payable for $58,080.
D. A debit to Sales Revenue for $ 528,000.
Answer:
The answer is A. A debit to Accounts Receivable for $ 586,080
Explanation:
Sales tax is an additional amount of money one pays based on a percentage of the selling price of goods and services that are purchased.
The sales tax amount will be added to sales revenue to form the total bill.
Sales revenue ----------------- $528,00
Sales tax -------------------------- 11%
Sales tax amount
$528,00 x 0.11
= $58,080
Therefore, total bill is:
$528,00 + $58,080
=$586,080.
Debit increases an asset(accounts receivable) while credit decreases an asset(accounts receivable).
Since the accounts receivable will increase, it will be on debit side.
If actual overhead incurred during a period exceeds applied overhead, the difference will be a credit balance in the Factory Overhead account at the end of the period.
True or False
Answer:
faslee
Explanation:
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Gaines Corporation invested $126,000 to acquire 26 comma 000 shares of Owens Technologies, Inc. on March 1, 2018. On July 2, 2019, Owens pays a cash dividend of $ 3.25 per share. The investment is classified as equity securities with no significant influence. Which of the following is the correct journal entry to record the transaction on July 2, 2019?
a. Cash 78,000
Equity Investments 78,000
b. Cash 78,000
Retained Equipment 78,000
c. Equity Investments 78,000
Cash 78,000
d. Cash 78,000
Dividend Revune 78,000
Answer:
Cash Dr, $84,500
Dividend revenue $84,500
Explanation:
The Journal entry is shown below:-
Cash Dr, $84,500 (26,000 × $3.25)
To Dividend revenue $84,500
(Being dividend is recorded)
To record the dividend, we debited the cash as it increased the assets and we credited the dividend revenue as it also increased the revenue
Therefore the above entry is the right and the same is not given in the option.
Which of the following is a reason cash flows may differ from accounting income? The total number of units sold will be different for accounting income and cash flows. Depreciation is a tax-deductible expense but is not a cash outlay. Which of the following best describes incremental cash flows? They are the difference between the cash flows the firm will have if it accepts the project versus the cash flows it will have if it rejects the project. Incremental cash flows are not relevant because they will occur whether or not the project is accepted.
Answer:
1. Depreciation is a tax-deductible expense but is not a cash outlay.
2. They are the difference between the cash flows the firm will have if it accepts the project versus the cash flows it will have if it rejects the project.
Explanation:
1. Depreciation as a non-cash outlay is removed from the Net Income when it is calculated for tax purposes. However, when calculating the Net Cash-flow, it is added back because the Cash-flow statement deals with how much actual money the business has and because depreciation does not actually take any money, it would need to be added back in the cash-flows as opposed to Accounting income where it is removed.
2. Incremental Cash-flows get their name from the fact that they will add income to a firm. This cash-flow comes if the company accepts a project as opposed to rejecting it and the cash they get from this increases their cash-flow making it incremental.
With an increase in product advertising of $50 million you expect to increase sales by 10,000 units. If unit grow margin is $4,800, will the additional advertising increase product contribution?
Answer:
Income will decrease by $2,000,000.
Explanation:
Giving the following information:
Advertising increase= $50,000,000
Units increase= 10,000 units
Unit contribution margin= $4,800
To calculate the total effect on income, we need to use the following formula:
Effect on income= total contribution margin - increase in fixed costs
Effect on income= 10,000*4,800 - 50,000,000
Effect on income= $2,000,000 decrease
Income will decrease by $2,000,000.
What must be the price of a $ 2 comma 000 bond with a 5.8% coupon rate, annual coupons, and 30 years to maturity if YTM is 10.1 % APR?
Answer:
Price of bond= $1,196
Explanation:
The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
Value of Bond = PV of interest + PV of RV
The value of bond would be worked out as follows:
Step 1
Calculate the PV of interest payments
Annual interest payment
= 5.8% × 2,000× = 116
PV of interest payment
A ×(1- (1+r)^(-n))/r
A- 116
r- annual yield 5.8%
n = 30
= 116 × (1-(1.101)^(-30)/0.101
= 1084.465
Step 2
PV of redemption Value
PV = $2000 × (1.101)^(-30)
= 111.53
Step 3
Price of bond
= 111.53 + 1084.465159 = 1195.99
Price of bond= $1,196
A company’s perpetual preferred stock pays an annual dividend of $2.10 per share. The preferred stock’s market value is $36.04 per share and the company’s tax rate is 30%. If the flotation costs for preferred stock are 6%, what is the company’s annual cost of new preferred stock financing? Question 4 options: 1) 5.87% 2) 7.25% 3) 6.54% 4) 6.20% 5) 5.41%
Answer:
6.20%
Explanation:
The company’s annual cost of new preferred stock financing is the annual dividend payable on the preferred stock divided by the net price of the stock
annual dividend is $2.10
net price=market price*(1-flotation cost %)
net price=$36.04 *(1-6%)
net price=$ 33.88
company’s annual cost of new preferred stock financing=$2.10/$33.88
company’s annual cost of new preferred stock financing==6.20%
"Which of the following statements are TRUE regarding the rights agent? I The rights agent usually handles the mechanics of a rights offering II The rights agent is usually the existing transfer agent of the issuer III The rights agent issues the additional shares upon presentation of the rights certificates with payment"
Answer:
I, II, and III
I The rights agent usually handles the mechanics of a rights offering
II The rights agent is usually the existing transfer agent of the issuer
III The rights agent issues the additional shares upon presentation of the rights certificates with payment
Explanation:
Aright is defined as an offering to existing shareholders to purchase more shares. Usually there is a proportion of original shares the shareholder can now purchase. For example 1 to 5 shares means the shareholder can buy one share for every 5 old shares owned.
A rights agent is a person or entity that is responsible for maintaining records on behalf of rights holders.
When rights are issued, a rights agent is handles sales to shareholders, he is usually the initial transfer agent for the issuing company, and he issues the additional shares when payment and rights certificates are presented.
Alpha can produce either 18 oranges or 9 apples an hour, while Beta can produce either 16 oranges or 4 apples an hour. If the terms of trade are established as 1 apple for 4 oranges, then: Group of answer choices
Answer:
But if they both work together in a way that Alpha produces only apples Beta produces only oranges then they would benefit from trade.
Explanation:
Then alpha should produce only 9 apples an hour, while Beta can produce either 16 oranges or 4 apples an hour.
If Alpha produces oranges there will be a loss because he produces less oranges. But Beta 's choice will not affect the trade.
There are no incentives for Beta to specialize and trade with Alpha.
But if they both work together in a way that Alpha produces only apples Beta produces only oranges then they would benefit from trade.
Both Bond Sam and Bond Dave have 7 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has six years to maturity, whereas Bond Dave has 19 years to maturity.
a) If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Sam and Bond Dave? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
b) If rates were to suddenly fall by 2 percent instead, what would be the percentage change in the price of Bond Sam and Bond Dave? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
a. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Sam and Bond Dave?
Bond Sam's price will change by -9.12%Bond Dave's price will change by -18.05%b. If rates were to suddenly fall by 2 percent instead, what would be the percentage change in the price of Bond Sam and Bond Dave?
Bond Sam's price will change by 10.26%Bond Dave's price will change by 24.35%Explanation:
Bond Sam
9% / 2 = 4.5% semiannual payments
6 years to maturity = 12 payments
present value = future value = 1000
PV of face value = 1,000 / (1 + 4.5%)¹² = $589.66PV of coupon payments = 35 x 9.11858 (PV annuity factor, 4.5%, 12 periods) = $319.15new market price = $589.66 + $319.15 = $908.81
if interest increases by 2%, present value (market value) will decrease by $91.19 ⇒ 9.12% decrease
if market interest rates decrease by 2%:
5% / 2 = 2.5% semiannual payments
6 years to maturity = 12 payments
present value = future value = 1000
PV of face value = 1,000 / (1 + 2.5%)¹² = $743.56PV of coupon payments = 35 x 10.25776 (PV annuity factor, 2.5%, 12 periods) = $359.02new market price = $743.56 + $359.02 = $1,102.58
if interest decrease by 2%, present value (market value) will increase by $102.58 ⇒ 10.26% increase
Bond Dave
9% / 2 = 4.5% semiannual payments
19 years to maturity = 38 payments
present value = future value = 1000
PV of face value = 1,000 / (1 + 4.5%)³⁸ = $187.75PV of coupon payments = 35 x 18.04999 (PV annuity factor, 4.5%, 38 periods) = $631.75new market price = $187.75 + $631.75 = $819.50
if interest increases by 2%, present value (market value) will decrease by $180.50 ⇒ 18.05% decrease
if market interest rates decrease by 2%:
5% / 2 = 2.5% semiannual payments
6 years to maturity = 12 payments
present value = future value = 1000
PV of face value = 1,000 / (1 + 2.5%)³⁸ = $391.28PV of coupon payments = 35 x 24.3486 (PV annuity factor, 2.5%, 38 periods) = $852.20new market price = $391.28 + $852.20 = $1,243.48
if interest decrease by 2%, present value (market value) will increase by $243.48 ⇒ 24.35% increase
The Donut Stop acquired equipment for $11,000. The company uses straight-line depreciation and estimates a residual value of $2,200 and a four-year service life. At the end of the second year, the company estimates that the equipment will be useful for four additional years, for a total service life of six years rather than the original four. At the same time, the company also changed the estimated residual value to $1,200 from the original estimate of $2,200.
Required:
Calculate how much the donut stop should record each year for depreciation in years 3 to 6?
Answer:
$1350
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
depreciation expense under the initial assumptions
($11,000 - $2,200) / 4 = $2200
Accumulated depreciation at the end of year 2 = $2200 x 2 = $4400
Book value at the beginning of year 3 = $11,000 - $4400 = $6600
Depreciation expense using the new assumptions
($6600 - $1200) / 4 = $1350
Journalizing issuance of stock—at par and at a premium
Colorado Corporation has two classes of stock: common, $3 par value; and preferred $30 par value.
Requirements
Journalize Colorado’s issuance of 4,500 shares of common stock for $6 per share.
Journalize Colorado’s issuance of 4,500 shares of preferred stock for a total of $135,000.
Answer:
a.
Cash 27000 Dr
Common Stock 13500 Cr
Paid in capital in excess of par-Common stock 13500 Cr
b.
Cash 135000 Dr
Preferred Stock 135000 Cr
Explanation:
a.
When we issue stock at premium, we always record the amount received from such issuance of stock at full. So, the cash account will be debited for 4500 * 6 = 27000
However, we record the common stock issued at par value and the remaining is credited under the reserve account which is Paid in capital in excess of par.
Thus the common stock will be credited by its par value of 4500 * 3 = 13500 and the remaining 4500 * 3 will be credited to the Paid in Capital account.
b.
The par value of the preferred stock is 4500 * 30 = 135000
Thus the preferred stock is issued at par and we simply debit the cash received from the issue and credit the preferred stock.
Prior to the first month of operations ending October 31 Marshall Inc. estimated the following operating results:
Sales (20,000 x $71) $1,420,000
Manufacturing costs (20,000 units):
Direct materials 852,000
Direct labor 202,000
Variable factory overhead 94,000
Fixed factory overhead 112,000
Fixed selling and administrative expenses 30,500
Variable selling and administrative expenses 36,800
The company is evaluating a proposal to manufacture 22,400 units instead of 20,000 units, thus creating an Inventory, October 31 of 2,400 units. Manufacturing the additional units will not change sales, unit variable factory overhead costs, total fixed factory overhead cost, or total selling and administrative expenses.
Required:
a. Prepare an estimated income statement, comparing operating results if 20,000 and 22,400 units are manufactured in the absorption costing format.
b. What is the reason for the difference in income from operations reported for the two levels of production by the absorption costing income statement?
Answer:
a.
Estimated income statement, comparing operating results if 20,000 and 22,400 units are manufactured
20,000 22,400
Sales (20,000 x $71) $1,420,000 $1,420,000
Less Cost of Goods Sold ($1,260,000) ($1,248,000)
Opening Stock $ 0 $0
Add Cost of Goods Manufactured $1,260,000 $1,397,760
Less Closing Stock $0 ($149,760)
Gross Profit $160,000 $172,000
Less Expenses
Selling and administrative expenses
Fixed ($30,500 ) ($30,500 )
Variable ($36,800) ($36,800)
Net Income / (Loss) $92,700 $104,700
a. Reasons
Variable Production Costs have increased for the Manufacture of 22,400 units.
Fixed assets have been deferred in Inventory for the Manufacture of 22,400 units.
Explanation:
Cost of Goods Manufactured
Manufacturing costs (20,000 units):
Direct materials 852,000
Direct labor 202,000
Variable factory overhead 94,000
Fixed factory overhead 112,000
Total 1,260,000
Cost of Goods Manufactured
Manufacturing costs (22,400 units):
Direct materials (852,000 / 20,000 × 22,400) = $954,240
Direct labor (202,000 / 20,000 × 22,400) = $226,240
Variable factory overhead (94,000 / 20,000 × 22,400) = $105,280
Fixed factory overhead = $112,000
Total = $1,397,760
Closing Inventory = $1,397,760 / 22,400 × 2,400
= $149,760
The estimated net income in the manufacturing of 22,400 units is more than the income of 20,000 units by applying the method of absorption costing.
What do you mean by Absorption costing?Absorption costs, sometimes referred to as “total costs,” are a management method of taking into account all the costs associated with producing a particular product.
Direct and indirect costs, such as direct assets, direct employment, rent, and insurance, are calculated using this method.
a) The calculation of the estimated income statement for 22,400 units and 20,000 units is shown in the image below.
b) The reason for the difference in the income from operations for the two production levels is because of the presence of closing inventories, which reduces the cost of goods sold and increases the income from operations.
Working note:
[tex]\rm\,Cost \; of \;Goods \;Manufactured \;=\\Manufacturing \; Costs (20,000 units)= Direct \;Materials \;+ Direct \; Labor + Variable \;factory \;overhead + Fixed \;factory \;overhead\\\\Manufacturing costs (20,000 units)=852,000+202,000+94,000+112,000\\\\Manufacturing costs (20,000 units) = \$1,260,000[/tex]
Cost of manufacturing when 22,400 units are produced:
Manufacturing costs (22,400 units):
[tex]\rm\,Manufacturing \; Costs (22,400 units):\\Direct \; Materials (\dfrac{852,000}{20,000} \times 22,400) = $954,240\\\rm\,Direct \;labor \;\dfrac{202,000}{20,000}\times 22,400 = $226,240\\Variable factory overhead \dfrac{94,000}{20,000 }\times 22,400 = $105,280\\Fixed factory overhead = $112,000[/tex]
[tex]\rm\,Cost \; of \;Goods \;Manufactured \;= Manufacturing \; Costs (22,400 units)= Direct \;Materials \;+ Direct \; Labor + Variable \;factory \;overhead + Fixed \;factory \;overhead\\\\\rm\,Cost \; of \;Goods \;Manufactured \; = 954,240+26,240+105,280+ 112,000\\\\\rm\,Cost \; of \;Goods \;Manufactured \; = \$1,397,760\\\\Closing \,Inventory = \dfrac{\$1,397,760}{22,400}\times 2,400 \\\\Closing \,Inventory = \$149,760[/tex]
Hence, it can be concluded that the estimated net income in the manufacturing of 22,400 units is more than the income of 20,000 units by applying the method of absorption costing.
Refer to the image to know the calculation of Estimated Net Income.
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The Western Capital Growth mutual fund has: Total assets$812,000,000Total liabilities$12,000,000Total number of shares 40,000,000 What is the fund's net asset value (NAV) per share?
Answer:
The fund's net asset value (NAV) per share is $20.
Explanation:
Net Asset Value (NAV) = (Assets - Liabilities) ÷ Number of Shares
= ($812,000,000 - $12,000,000) ÷ 40,000,000
= $20
Conclusion :
The fund's net asset value (NAV) per share is $20.
The following equation summarizes the trend of quarterly sales of condominiums over a long cycle. Sales also exhibit seasonal variation.
Ft = 40 - 6.5t + 2t2
Ft = Unit sales
Where t = 0 the first quarter of last year
Quarter Relative
1 .95
2 .90
3 .45
4 1.70
Prepare a forecast of quarterly sales for next year and the first quarter of the year following that.
Quarter Forecast
1
2
3
4
1
Answer:
Quarter: 1-4, 1. Forecast:
128.92, 146.10, 107.40, 280.67, 282.48
Explanation:
The quarterly sales trend for the quarter is represented by the following equation: 1-4, 1. Forecast
What are representatives?The term representative refers that the person who is serving to represent something as we see there are some diplomats are being there who represent the country, and there is someone who represents the states as there are different peoples who are being there in it. As there are different players as we see, they represent the nation as well.
Quarter: 1-4, 1. Forecast
128.92, 146.10, 107.40, 280.67, 282.48
Therefore, the quarter is represented by the following equation: 1-4, 1. Forecast
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Quarter: 1-4, 1. Forecast:
128.92, 146.10, 107.40, 280.67, 282.48
Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $6.10 dividend every year, in perpetuity. If this issue currently sells for $80.65 per share, what is the required return?
Answer:
7.56%
Explanation:
Calculation for the required return for Smiling Elephant
Using this formula
Required return =D/P0
Where,
D=$6.10
P0=$80.65
Let plug in the formula
Required return =$6.10/$80.65
Required return =0.0756×100
Required return =7.56%
Therefore the Required return for Smiling Elephant Inc will be 7.56%
Massena Corporation reported the following data for the month of February:
Inventories: Beginning Ending
Raw materials (Direct and Indirect) $40000 $24000
Work in process $23000 $17000
Finished goods $50000 $72000
Additional information:
Raw materials purchases $63000
Direct labor cost $73700
Manufacturing overhead $55000
cost actually incurred
Raw materials included in
manufacturing overhead costs
incurred as indirect materials $5000
Manufacturing overhead cost
applied to Work in Process $48000
The adjusted cost of goods sold that appears on the income statement for February is:____
$=
Answer:
$186,700
Explanation:
The computation of adjusted cost of goods sold is shown below:-
Before that we need to do the following calculations
Raw material consumed = Beginning raw material + Raw material purchases - Ending raw materials - Raw materials included in manufacturing overhead costs as indirect materials
= $40,000 + $63,000 - $24,000 - $5,000
= $74,000
Total manufacturing cost = Beginning work in progress + Raw material consumed + Direct labor cost + Manufacturing overhead cost - Ending work in progress
= $23,000 + $74,000 + $73,700 + $48,000 - $17,000
= $201,700
Unadjusted Cost of goods sold = Raw materials + Total manufacturing cost - Ending finished goods
= $50,000 + $201,700 - $72,000
= $179,700
Adjusted COGS = Unadjusted Cost of goods sold + Underapplied overhead
= $179,700 + ($55,000 - $48,000)
= $179,700 + $7,000
= $186,700
For each of the following scenarios, determine if there is an increase or a decrease in supply for the good in italics.
a. The price of silver increases.
b. Growers of tomatoes experience an unusually good growing season.
c. New medical evidence reports that consumption of organic products reduces the incidence of cancer.
d. The wages of low-skill workers, a resource used to help produce clothing, increase.
Answer:
a. The price of silver increases. - Supply Increase
As the price of silver increases, it will make silver more profitable therefore producers will increase production to take advantage of the higher prices to make more profit in total.
b. Growers of tomatoes experience an unusually good growing season. - Supply Increase
If growers of tomatoes experience a good season, it means that there will be more tomatoes to harvest. This will increase the supply of tomatoes.
c. New medical evidence reports that consumption of organic products reduces the incidence of cancer. - Supply Increase.
Supply of organic products will increase as a result of an anticipated and an actual increase in the demand for organic products as more people will buy them to avoid getting cancer.
d. The wages of low-skill workers, a resource used to help produce clothing, increase. - Supply Decrease
When inputs into the production process increase, producers will tend to cut down production to enable them save cost and maintain profitability. If the wages of low-skill workers increase, it will mean that an input is now more expensive so production of clothing will reduce thereby reducing its supply.
Bloomfield Bakers accounts for its investment in Clor Confectionary under the equity method. Bloomfield carried the Clor investment at $150,650 and $165,300 at December 31, 2020, and December 31, 2021, respectively. During 2021 Clor recognized $75,600 of net income and paid dividends of $20,500. Assuming that Bloomfield owned the same percentage of Clor throughout 2021, its percentage ownership must have been: (Round your answer to the nearest whole percent):
Answer:
Suppose that in year 2021, Bloomfield had equal share of percentage of ownership in Clor as they had in previous year i.e 2020, it means that in 2021, the share of percentage that will be held by Bloomfield in Clor will be 26.59%
Explanation:
From the above, we will assume that Bloomfield stake in Clor using equity method and also investment in 2020 was $150,650 and $165,300 in 2021.
Inorder to calculate the percentage , we can make it Y hence we will add amount in 2020 with Y% of (Net income - Dividend declared) inorder to arrive at the total amount in 2021.
Solution.
$150,650 + Y% (75,600 - $20,500) = $165,300
$150,650 + $55,100Y = $165,300
$55,100Y = $165,300 - $150,650
$55,100Y = $14,650
Y% = $14,650/$55,100
Y% = 0.26588
Y = 0.26588 × 100
Y = 26.59
You are thinking of building a new machine that will save you $ 4 comma 000$4,000 in the first year. The machine will then begin to wear out so that the savings decline at a rate of 1 %1% per year forever. What is the present value of the savings if the interest rate is 9 %9% per year?
Answer:
The present value of the savings=$37,064.22
Explanation:
The present value of the savings is the amount that it worths today, this would be done in two stages;
The first stage is to determined the present of the first cash savings as follows:
PV of the first payment = 4,000 × (1.09)^(-1)=3,669.72
Second step is to determine the present value of the declining perpetuity
PV of declining perpetuity. A perpetuity is the series of cash flow occurring for the foreseeable future of years.
A- 4,000, g-negative growth rate = 1%,
interest rate = 9%
PV in year 1 = 4,000× (1-0.09)/(0.09+0.01)
= 36,400
PV in year 0 = 36,400 × (1.09)^(-1) = 33,394.49
The present value of the savings = 33,394.49 + 3,669.72= 37,064.22
The present value of the savings=$37,064.22
Given the agile manifesto 4 values, describe what value would be the easiest and what value would be the hardest for you to implement in your organization and why.
Answer and explanation:
values of agile manifesto are:
1. Individual and interactions over process and tools.
2. Working software over comprehensive documentation.
3. Customer collaboration over contract negotiation.
4. Responding to change over following a plan.
Customer collaboration is by far the easiest to implement given the very fact that we are able to communicate and collaborate with the customers in every step of the way during development ensuring that we produce exactly what the customer wants through continuous feedback
The hardest however is the responding change over plan agile value. This is indeed one of the most important as it ensures a dynamic system in development but not quite easy to implement given the need to make changes to features as at when required while sticking to and modifying plans as needed
Q3) At an output level of 45,000 units, you calculate that the degree of operating leverage is 2.79. If output rises to 48,000 units, what will the percentage change in operating cash flow be
Answer: 18.6%
Explanation:
Degree of operating leverage = % change in Operating cash flow / % change in output
% change in Output
= [tex]\frac{48,000 - 45,000}{45,000}[/tex]
= 6.7%
Degree of operating leverage = % change in Operating cash flow / % change in output
2.79 = % change in Operating cash flow/ 6.7%
% change in Operating cash flow = 2.79 * 6.7%
% change in Operating cash flow = 18.6%
Movements in individual stock prices tend to be Group of answer choices positively correlated positively correlated with inflation negatively correlated positively correlated with changes in interest rates
Answer:
Option A (positively correlated) is the correct choice.
Explanation:
A stock for whom the valuation hasn't adjusted from over timeframe would have a slight Weighted Analysis and perhaps a product where price has plummeted and over timeframe would have a measured Analysis loss.The share price would typically vary considerably as shareholders purchase securities during the business day. Because more customers look to purchase something and decrease as companies began consuming more than just the stock, the stock value will change.The other three choices are not related to the given situation. So that Option A would be the correct one.
Tucker Company makes chairs. Tucker has the following production budget for January - March.
January February March
Units Produced 9666 11971 9743
Each chair produced uses 4 board feet of wood. Management wants ending inventory levels of raw materials to equal 20% gf the production needs (in wood) for the next month.
How many board feet of wood does Tucker need to purchase in February? Round your answer to the nearest whole number.
Answer: 46,101 board feet of wood
Explanation:
Purchases can be calculated using the formula;
Purchases = Total Production Needs + Ending Inventory - Beginning Inventory
Total Production Needs
= Units produced * boards required per unit
= 11,971 * 4
= 47,884 units needed.
Ending Inventory.
This should be 20% of production needs for the next month
= 20% * (9,743 * 4)
= 7,794 units
Beginning Inventory
This will be the ending inventory of January. The ending inventory of January is 20% of February needs.
= 20% * 47,884
= 9,577 units.
Purchases for February = 47,884 + 7,794 - 9,577
= 46,101 board feet of wood
In the month of November, Carla Vista Co. Inc. wrote checks in the amount of $9,565. In December, checks in the amount of $11,465 were written. In November, $8,825 of these checks were presented to the bank for payment, and $10,285 in December. What is the amount of outstanding checks at the end of November? At the end of December?
Checks written in November $9,750
Less: Checks paid by bank in November $8,800
Checks outstanding at the end of November $950
Add: Checks written in December $11,762
Less: Checks paid by bank in December 10,889
Checks outstanding at the end of December $1,823
hope this helps!
- a random freshman
According to the adaptive expectations theory, you are likely to underestimate inflation when the price level is increasing at a_____________ rate and to overestimate inflation when price level is increasing at a___________rate.
a. Increasing
b. Decreasing
c. Constant
Answer: increasing
Explanation:
Adaptive expectations hypothesis is a theory which states that economic agents such as the individuals, firms and the government will look at past events and experiences to make adjustments on future expectations.
According to the theory, one is likely to underestimate inflation when the price level is increasing at an increasing rate and to overestimate inflation when price level is increasing at an increasing rate.