Answer:
45.67%
Explanation:
Calculation to determine the remaining margin in the account
First step is to calculate the 1 year price
1 year price=1900 shares*$58 per share
1 year price = $110,200
Second step is to calculate the Equity
Margin requirement is 50% so equity = 50%*$110,200
Margin requirement is 50% so equity =$55,100
Third step is to calculate the 1 year later price increase of 60
1 year later price increase to 60
$1900 shares*$60 per share =114,000
Fourth step is to calculate the Dividend
Dividend =$3.50 *1900
Dividend=$6,650
Now let calculate the Margin
Margin = $55,100/($114,000+$6,650)
Margin =$55,100/$120,650
Margin= 45.67%
Therefore the remaining margin in the account is 45.67%
Petty Cash Fund Entries
Journalize the entries to record the following:
Check No. 12-375 is issued to establish a petty cash fund of $500.
The amount of cash in the petty cash fund is now $40. Check No. 12-476 is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $212; miscellaneous selling expense, $156; miscellaneous administrative expense, $61. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $500, record the discrepancy in the cash short and over account.)
Petty Cash Fund Entries
Journalize the entries to record the following:
Check No. 12-375 is issued to establish a petty cash fund of $500.
The amount of cash in the petty cash fund is now $40. Check No. 12-476 is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $212; miscellaneous selling expense, $156; miscellaneous administrative expense, $61. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $500, record the discrepancy in the cash short and over account.)
a. Journalize the entry to establish the petty cash fund. If an amount box does not require an entry, leave it blank.
b. Journalize the entry to replenish the petty cash fund. If an amount box does not require an entry, leave it blank.
Answer:
A. Dr Petty cash fund $500
Cr Cash $500
B. Dr Office supplies expenses $212
Dr miscellaneous selling expense $156
Dr miscellaneous administrative expense $61
Dr Cash short and over 31
Cr Petty cash fund $460
Dr Petty cash fund $460
Cr Cash $460
Explanation:
A. Preparation of the journal entry to establish the petty cash fund.
Dr Petty cash fund $500
Cr Cash $500
(To establish the petty cash fund)
B. Preparation of the journal entry to replenish the petty cash fund.
Dr Office supplies expenses $212
Dr miscellaneous selling expense $156
Dr miscellaneous administrative expense $61
Dr Cash short and over 31
($500-$212+$156+61+$40)
Cr Petty cash fund $460
($212+$156+$61+$31)
(To replenish the petty cash fund)
Dr Petty cash fund $460
($212+$156+$61+$31)
Cr Cash $460
has a standard of 2 direct labor hours per unit. The standard wage rate of each worker is $32.50 per hour. In July, the company produced 4,770 units and paid workers $190,000 for a total of 8,940 direct labor hours. Compute the direct labor efficiency variance.
Answer:
$130 Favourable
Explanation:
Given the above information,
Standard hours = 2 × 4770 = 9,540
Actual hours = 8,940
Standard rate = $32.50
Then, Direct labor efficiency variance is computed as
= ( Standard hours allowed for production - Actual hours taken) × Standard rate per direct labor hour
= [(2 × 4,770) - 8,940] × $32.50
= [9,540 - 8,940] × $32.50
= 600 × $32.50
= $130 Favourable
In a closed economy, saving and investment must be equal, but this is not the case in an open economy. In the following problem, you will explore how saving and investment are connected to the international flow of capital and goods in an economy. Before delving into the relationship between these various components of an economy, you will be asked to recall some relationships between aggregate variables that will be useful in your analysis.
Recall the components that makeup GDP. National income (Y) equals total expenditure on the economy's output of goods and services. Thus, where C= consumption, I= investment, G =government purchases, X=exports, M =imports, and NX= net exports.
Y= _____
Also, national saving is the income of the nation that is left after paying for _____. Therefore, national saving (S) equals:
S=_____
Rearranging the previous equation and solving for Y yields, Y= _____ Plugging this into the original equation showing the various components of GDP results in the following relationship:
S=_____
Answer:
Y = C + I + G + NX
S = Y - C
S = I + G + NX
Explanation:
National Income Y = C + I + G + NX ; {where consumption, investment, government purchases, net exports ie exports - imports are corresponding expenditure of households, firms, government, rest of the world}
National Saving (S) is income (Y) left after paying for consumption (C) . So, S = Y - C
Using above equations, Y = C + S , Y = C + I + G + NX
C + S = C + I + G + NX
So, S = I + G + NX
You wish to earn a return of 13% on each of two stocks, X and Y. Stock X is expected to pay a dividend of $3 in the upcoming year while Stock Y is expected to pay a dividend of $4 in the upcoming year. The expected growth rate of dividends for both stocks is 7%. The intrinsic value of stock X______
a. cannot be calculated without knowing the market rate of return
b. will be greater than the intrinsic value of stock Y
c. will be the same as the intrinsic value of stock Y
d. will be less than the intrinsic value of stock Y
e. none of the above is a correct answer.
Answer: D. will be less than the intrinsic value of stock Y
Explanation:
Based on the information given above, the intrinsic value of Stock X will be calculated thus:
D1 = Dividend in next year = $3
g = growth rate = 7%
r = = 13%
Therefore, intrinsic value of Stock X will be:
= D1 / (r-g)
= 3 / (13% - 7%)
= 3/6%
= 3 / 0.06
= $50
Therefore, the intrinsic value of stock X is $50.
Intrinsic value of Stock Y will b calculated thus:
D1 = $4
g = 7%
r = 13%
Intrinsic value of Stock Y will be:
= D1 / (r-g)
= 4 / (13% - 7%)
= 4/6%
= 4 / 0.06
= 66.67
Intrinsic value of Stock Y is $66.67
Therefore, the intrinsic value of Stock X will be less than the intrinsic value of Stock Y
A firm that uses a functional structure will typically have efficient top-down and bottom-up communication, but Group of answer choices dual reporting relationships typically blur lines of authority. the top management team may fail in their coordination and control efforts of functional-level employees. communication may be hampered among the horizontal, distinct organizational functions. career paths and professional development are limited.
Answer:
communication may be hampered among the horizontal, distinct organizational functions.
Explanation:
In the case when the firm want to use the functional structure that contains top-down, bottom -up communication but the communication might be hampered between the horizontal and different organizational functions as the functional areas would permit the top-down and bottom-up communication but not the horizontal and cross functional communication
Therefore the above shows the answer
A functional structure categorizes the department of the company based on the expertise area. It may hamper communication between administrative positions.
What is Functional structure?In a company, various teams and departments are established based on their roles and expertise. The functional organization establishes those departments to work as a functional unit.
This allows the increased efficiency, growth, and flexibility. The operational speed and clarity become high and productivity increases.
On the other hand, the functional structure of an organization can be disadvantageous as it can lead to segregation, territorial disputes, lack of coordination, misunderstanding, and hampered communication.
Therefore, option C. communication can be hampered by functional structure.
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Company Z is just starting to make a brand new product it has never made before. It has completed two units so far. The first unit took 19 hours to complete and the next unit took 15 hours. Based only on this information, what would be the estimate of the learning percentage in this process
Answer:
the learning percentage is 78.95%
Explanation:
The computation of the learning percentage is shown below;
= The next unit ÷ first unit
= 15 hours ÷ 19 hours
= 78.95%
We simply divided the two items with each other so that the correct percentage could arrive
hence, the learning percentage is 78.95%
For 20Y2, Macklin Inc. reported a significant increase in net income. At the end of the year, John Mayer, the president, is presented with the following condensed comparative income statement:
Macklin Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
20Y2 20Y1
Sales $910,000 $700,000
Cost of goods sold 441,000 350,000
Gross profit $469,000 $350,000
Selling expenses $139,150 $115,000
Administrative expenses 99,450 85,000
Total operating expenses $238,600 $200,000
Income from operations $230,400 $150,000
Other income 65,000 50,000
Income before income tax $295,400 $200,000
Income tax expense 65,000 50,000
Net income $230,400 $150,000
Required:
Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year.
Answer: Check attachment
Explanation:
From the comparative income statement, we can see that the net income for 20Y2 is $230,400 while that of 20Y1 is $150,000.
We can deduce that the net Income has increased from 20Y1 to 20Y2. Also, the net sales have also increased. Kindly check the attachment for the comparative income statement prepared.
Skip and Trace decide to start a business. They sign a partnership agreement providing that Skip will contribute $6,000 toward the necessary $10,000 in start-up capital and Trace will contribute $4,000. If the agreement is silent as to management and profits, Skip should receive:
Answer: 50% of the profit and share equal management.
Explanation:
Since the agreement is silent as to management and profits, Skip should receive 50% of the profit and share equal management.
It should be noted that when profit sharing and the management related isn't defined, profits and management will be divided equally among the partners. Therefore, in this case, profit will be shared equally.
Management team of Wolverine Corp. is considering the purchase of a new piece of equipment. They believe that new equipment is more efficient and would result in cost savings. Management estimates that the cost savings from the new equipment would result in an annual increase in net income of $200,000. The new equipment will have an initial cost of $1,200,000 and have an 8 year life. The salvage value of the new equipment is estimated to be $200,000. The hurdle rate is 10%. Ignore income taxes.
a. What is the accounting rate of return?
b. What is the payback period?
c. What is the net present value?
d. What would the net present value be with a 15% hurdle rate?
Answer:
Wolverine Corp.
a. The accounting rate of return = 50%
b. The payback period = 6 years ($200,000 * 6)
c. The net present value = ($39,600)
d. The net present value at 15% = ($237,200)
Explanation:
a) Data and Calculations:
Initial investment cost in new equipment = $1,200,000
Annual incremental net income from cost savings = $200,000
Salvage value of the new equipment = $200,000
Estimated useful life of equipment = 8 years
Hurdle rate = 10%
a. Accounting rate of return = (($200,000 * 8 + $200,000) - $1,200,000)/$1,200,000
= ($1,800,000 - $1,200,00)/$1,200,000
= $600,000/$1,200,000 * 100 = 50%
NPV at 10% hurdle rate:
Initial investment = $1,200,000 * 1 = $1,200,000
Annual incremental savings:
= $200,000 * 5.335 = $1,067,000
Salvage value = $200,000 * 0.467 93,400
Total benefits $1,160,400
NPV = ($39,600)
NPV at 15% hurdle rate:
Initial investment = $1,200,000 * 1 = $1,200,000
Annual incremental savings:
= $200,000 * 4.487 = $897,400
Salvage value = $200,000 * 0.327 65,400
Total benefits $962,800
NPV = ($237,200)
Which best describes the future growth potential of the Marketing, Sales, and Service career cluster?
Growth is expected to decline.
Growth is expected to grow less quickly than average.
Growth is expected to be about average.
Growth is expected to grow much more quickly than average.
Answer:
I believe your answer is D
Explanation:
Growth is expected to grow much more quickly than average is best describes the future growth potential of the Marketing, Sales, and Service career cluster. Hence, option D is correct.
What is growth potential marketing?The development of new product lines, the use of more effective marketing strategies, or other strategies that transform a company from a specialized market to a greater volume operation can all be used to determine an organization's potential for growth.
The pace of growth that an economy may sustain over the medium term without experiencing excessive inflation is known as potential growth. The advanced countries' potential growth has decreased in recent decades as a result of slower increases in the labor force, capital stock, and productivity.
From technical-based marketing to anticipation marketing, there will be a mental shift. This will allow marketers to foresee what consumers will want and then incorporate that information into automation processes. This fresh perspective will now only improve productivity.
Thus, option D is correct.
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a customer comes into your store and makes a large purchase, which she pays in full. Which of these should you provide to her? A. A receipt B. A purchase order C. An Installment plan D. An invoice
Answer:
A receipt
Explanation:
All the other choice wouldn't apply since layaway is a form of payment per month, installment plan has nothing to do with the question so that eliminated, and invoice and purchase order wouldn't be it since it wouldn't sound right
A customer enters in a shop and makes a substantial purchase, pay in whole then receipt in accounting shall be issued to that customer. Option A is correct.
What is a Receipt in Accounting?
An accounting document that a company gives to a customer as evidence of full or partial payment toward a good or service is known as a payment receipt, also known as a receipt for payment.
The following details regarding the transaction are commonly given on payment receipts: Business name.
Furthermore receipt contains details about your transaction, including the date, what you bought, how you paid, and how much you spent. If you paid sales tax, it is most likely also indicated on the receipt. Receipts serve as proof of the transaction. They give the seller crucial accounting and tax information.
Thus seller issue a cash receipt on receiving of full payment.
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a 12- year bond with a par value of 1,000 and interest rate of 12 percent interst (6percent semiannyally). The current maret price of the bond is $700. This bonds expected rate of return will be g
Answer:
18.34 %
Explanation:
Bond holders usually expect to receive a rate that is offered on the market for similar bonds. this rate is the same as the Bond Yield and can be determined using financial calculator as follows ;
PV = - $700
FV = 1,000
N = 12
PMT = 1,000 x 12 % = $120
P/YR = 1
I/YR = ??
Inputting the values in the financial calculator as set above gives a required rate (I/YR ) for similar bonds of 18.34 %
Over/Under: Alpha failed to record AJEs for $500 interest earned from a note receivable and $700 interest incurred from a note payable. None of the interest will be paid or received until next year. This has what effect on assets, liabilities, and net income
Answer:
Alpha
The effects on assets, liabilities, and net income are as follows:
Assets are understated by $500
Liabilities are understated by $700
Net income is overstated by $200
Explanation:
a) Data and Calculations:
Interest earned from a note receivable = $500
Interest incurred from a note payable = $700
Failure to record these has the following effects:
Assets are understated by $500 (< $500)
Liabilities are understated by $700 (< $700)
Net income is overstated by $200
b) Adjusting Journal Entries (AJEs) ensure that the accounts are up-to-date in accordance with the accrual concept of financial accounting. The accrual concept requires that transactions affecting a financial period must be reported in the affected period. This implies that expenses incurred must be recognized in the period they are incurred and not when cash is paid. Similarly, revenue earned must be recognized in the period they are earned and not when cash is received.
To improve your odds of winning, it is recommended that you play a blackjack b slot machines c roulette d powerball
Answer:
a blackjack
hope this helps
have a good day :)
Explanation:
Consider the following. Joe is deciding whether to go to college full time. If he does not attend college, he will continue to work at his current job. At which Joe earns $14,000 annually. He estimates that tuition and fees at the local public college will be about $10,000 per year and that he can graduate in four years if he does not work. He estimates he will earn about $600,000 more in his working lifetime with a college degree than without one.
Required:
a. What will be Joe’s opportunity cost of four years of college?
b. What will be his net benefits (benefits minus costs)?
c. Should he make the investment in education?
Answer:
a. What will be Joe’s opportunity cost of four years of college?
the opportunity cost of going to college is the money that he will lose by not being able to work = $14,000 x 4 = $56,000
b. What will be his net benefits (benefits minus costs)?
net benefits minus costs = $600,000 - $56,000 - $40,000 = $494,000
c. Should he make the investment in education?
Yes, he should. The net benefits of going to college are positive, meaning that going to college will increase Joe's wealth.
ack purchased 200 shares of Apple stock earlier this month at the price of $210 per share. Apple stock is trading at $218 today and will pay a dividend of $2/share with tomorrow being the ex-date. Jack faces an ordinary income tax rate of 35% and a capital gain tax rate of 18.8%. How much unrealized capital gains will he have after the dividend payment
Answer:
The amount of unrealized capital gains he will have after the dividend payment is $1,200.
Explanation:
Apple stock price per share today = $218
Dividend per share = $2
Apple stock ex-date price per share = Apple stock price per share today - Dividend per share = $218 - $2 = $216
Unrealized capital gains = Number of Apple stock shares purchased * (Apple stock ex-date price per share - Price per share at which Apple stock shares were purchased) = 200 * ($216 - $210) = 200 * $6 = $1,200
Therefore, the amount of unrealized capital gains he will have after the dividend payment is $1,200.
You sold two EUR futures contract at the closing price on 3/01. Each EUR futures contract requires the delivery of EUR125,000. Suppose, the initial and maintenance margin for each EUR futures contract are $1,500 and $1,000, respectively. Assume that you do not withdraw from your margin account during this period, but that you do meet your margin calls if you get any
Date 3/01 3/02 3/03 3/04
EUR Spot Price $1.3579 $1.3527 $1.3588 $1.3580
July EUR Futures Contract Price $1.3750 $1.3782 $1.3827 $1.3713
The profit / loss posted to your account at the close of 3/02 is ______
Answer:
What
Explanation:
If you have PhP 5,000.00, which of the following investment alternatives would provide the greatest ending wealth for your one-year investment?
7/10 percent compounded annually
7/10 percent compounded semi-annually
72/100 percent simple interest
7/10 percent compounded quarterly
NO FILES AND CHAIN MESSAGE OR ELSE I'LL REPORT YOUR ACCOUNT.
Answer:
7/10 percent compounded quarterly
Explanation:
The formula for calculating future value:
FV = P (1 + r/m)^mn
m = number of compounding
FV = Future value
P = Present value
R = interest rate
N = number of years
Simple interest = principal x time x interest rate
1. 5000 x (1.007) = 5035
2. 5000 x (1 + 0.007/2)^2 = 5035.06
5000 x (1 + 0.007/4)^4 = 5035.09
The 1-year, 2-year. 3-year,and 4-year risk-free zero rates are 4%, 4.5%, 4.75%, and 5% with continuous compounding. What is the forward rate for the one year period beginning in two years
Answer:
5.25%
Explanation:
Mathematically, investing at the 3-year risk-free zero rate should be the same as investing at a 2-year risk-free zero rate and one-year forward rate beginning in two years as shown thus
(1+S3)^3=(1+S2)^2*(1+y2y1)^1
S3=4.75%
S2=4.5%
y2y1=unknown
(1+4.75%)^3=(1+4.5%)^2*(1+y2y1)
1+y2y1=(1+4.75%)^3/(1+4.5%)^2
y2y1=((1+4.75%)^3/(1+4.5%)^2)-1
y2y1=5.25%
Journalize the following transactions, using the allowance method of accounting for uncollectible receivables
Mar. 17: Received $2,700 from Keith MacPhearson and wrote off the remainder owed of $6,370 as uncollectible.
Mar. 17 July 29: Reinstated the account of Keith MacPhearson and received $6,370 cash in full payment.
Answer:
Journal entry
Date Account & Explanation Debit Credit
Mar 17. Cash $2,700
Allowance for doubtful accounts $6370
Account receivable $9,070
Jul 29 Account receivable $6,370
Allowance for doubtful accounts $6,370
(To record amount reinstated)
Cash $6,370
Account receivable $6,370
(To record amount received)
Roger must create a feasibility study to see how the money from the investor could be spent to best enhance the business's money-making potential. He knows there are several things that should go in the plan, but some are unnecessary. Which of the following does NOT belong in the feasibility study?
Answer: quality plan
Explanation:
A feasibility study is used to know if a project is feasible and therefore worth undertaking or not. It is an analysis that takes into consideration of all the factors that are relevant to the project into account. These factors include the technical, economic, legal, political factors etc in order to ascertain if the project will be successful.
The option that doesn't belong in the feasibility study is the quality plan. This isn't part of the feasibility study and therefore is the correct option. Other options belong in the feasibility study.
Quality plan: A feasibility study is used to know if a project is possible and therefore worth undertaking or not.
Who is Investor
It is an analysis that takes into consideration all the elements that are relevant to the project into account. These characteristics include the technical, economic, legal, political factors, etc. to ascertain if the assignment will be successful.
When The option that doesn't belong in the feasibility study is the quality plan. This isn't part of the feasibility study and therefore is the correct option. Other choices belong in the feasibility study.
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Jiminy's Cricket Farm issued a 30-year, 6.5 percent semiannual bond 9 years ago. The bond currently sells for 108.5 percent of its face value. The book value of this debt issue is $151 million. In addition, the company has a second debt issue, a zero coupon bond with 13 years left to maturity; the book value of this issue is $97 million, and it sells for 62.4 percent of par. The company’s tax rate is 21 percent.
1) what is the total book value of debt?
2) what is the total market value of debt?
3) what is the after tax cost of the 6.5 percent coupon bond?
4) what is the after tax cost of the zero coupon bond?
5) What is the after tax cost of debt?
Answer:
1 151 million 2 97 million
3 22.785 million 4 20.37 million 5 76.63 million
The controller of Carla Vista Production has collected the following monthly expense data for analyzing the cost behavior of electricity costs.
Total Electricity Costs Total Machine Hours
January $2,650 200
February 3,100 320
March 3,570 450
April 4,750 695
May 3,160 500
June 4,910 750
July 4,130 630
August 3,810 580
September 5,060 680
October 4,390 610
November 3,290 320
December 8,920 770
(a) Determine the fixed and variable cost components using the high-low method.
(b) What electricity cost does the cost equation estimate for a level of activity of 450 machine hours?
(c) What electricity cost does the cost equation estimate for a level of activity of 750 machine hours?
Answer:
Results are below.
Explanation:
Giving the following information:
January $2,650 200
February 3,100 320
March 3,570 450
April 4,750 695
May 3,160 500
June 4,910 750
July 4,130 630
August 3,810 580
September 5,060 680
October 4,390 610
November 3,290 320
December 8,920 770
To calculate the variable and fixed components using the high-low method, we need to use the following formulas:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (8,920 - 2,650) / (770 - 200)
Variable cost per unit= $11
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 8,920 - (11*770)
Fixed costs= $450
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 2,650 - (11*200)
Fixed costs= $450
Now, the total cost if the machine hours equals 450:
Total cost= 11*450 + 450= $5,400
Finally, 750 hours:
Total cost= 11*750 + 450= $8,700
Indicate how each of the following transactions affects U.S. exports, imports, and net exports.
Effect On...
Transaction U.S. Exports U.S. Imports U.S. Net Exports
A French historian spends a semester touring
museums and historic battlefields in the United States.
Your parents go on a trip to Japan in late March
for the Cherry Blossom season.
Your auntie purchases a Panasonic camera.
The student bookstore at Yale University sells
books published by Cambridge University Press.
A European family goes to Disney World in
Florida for vacation.
Answer:
export import net export
1. increases unchanged increases
2. unchanged increases decreases
3. unchanged increases decreases
4. unchanged increases decreases
5. increases unchanged increases
Explanation:
export would comprise of goods and services produced in the US that are been sold to foreign countries
Import would comprise of foreign produced goods and services that are been sold in the US
Net export would increase when export occurs and decrease when import occurs
Net export = exports – imports
When the French historian visits the US museum and the European family visits Disney, they are enjoying US services, thus export increases and net export increases
The purchase of books from Cambridge in UK, Panasonic camera and the visit to Japan constitutes import. These increases import and reduces net export
When applying for the FAFSA, which of the following is not true?
Answer:
it provides early admission
Explanation:
thats my answer
When applying for FAFSA, the following is not true : The earliest one can apply and submit for FAFSA is January 1st of each year.
FAFSAFAFSA stands for Free Application for Federal Students Aid.
FAFSA is financial aid eligibility form for the students of United States of America. The FAFSA provides aids such as federal grants, loans, federal students aid, etc. to the college students.
The earliest one can submit for FAFSA is 1st of October every year.
FAFSA can be filled online or on paper.
Both dependent and independent students can fill for FAFSA.
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Why wages differ
For each of the scenarios in the following table, indicate the most likely reason for the difference in earnings.
Scenario
Differences in Human Capital
Compensating Differential
Differences in Natural Ability
Labor Unions
An economics consulting firm hires Rina, a recent PhD graduate in economics, and pays her an annual wage of $76,000. It also hires Bob, a recent master's degree graduate in economics, and pays him an annual wage of $64,000.
Major league baseball pitchers earn more than minor league baseball pitchers.
Two automotive technicians have the same amount of schooling and work experience, but earn different wages. The first works the day shift for an auto manufacturer factory for an annual wage of $53,000 per year, and the second works the night shift for the same company for an annual wage of $64,000 per year.
Answer:
Scenario Differences In Human Capital Compensating Differential Differences In Natural Ability Labor Unions An Economics Consulting Firm Hires Rina, A Recent PhD Graduate In Economics, And Pays Her An ... For each of the scenarios in the following table, indicate the most likely reason for the difference in earnings.
Explanation:
Answer:
hehaba
Explanation:
Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $42,000 and a remaining useful life of 4 years, at which time its salvage value will be zero. It has a current market value of $52,000. Variable manufacturing costs are $33,300 per year for this machine. Information on two alternative replacement machines follows:
Alternative A Alternative B
Cost $121,000 $113,000
Variable manufacturing costs per year $22,500 $10,200
Required:
1. Calculate the total change in net income if Alternative A is adopted. (Cash outflows should be indicated by a minus sign.)
ALTERNATIVE A: INCREASE OR (DECREASE) IN NET INCOME
Cost to buy new machine
Cash received to trade in old machine
Reduction in variable manufacturing costs
Total change in net income $0
2. Calculate the total change in net income if Alternative B is adopted. (Cash outflows should be indicated by a minus sign.)
ALTERNATIVE B: INCREASE OR (DECREASE) IN NET INCOME
Cost to buy new machine
Cash received to trade in old machine
Reduction in variable manufacturing costs
Total change in net income $0
3. Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase?
Chose below:
(a) Keep the manufacturing machine.
(b) Alternative A.
(c) Alternative B.
Answer: Check attachment
Explanation:
1. Calculate the total change in net income if Alternative A is adopted.
The answer is -$25800. Check attachment for further explanation.
2. Calculate the total change in net income if Alternative B is adopted.
The answer is $31400. Check attachment for further explanation.
3. Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase?
The machine should be replaced with alternative B has it generates a change in net income by $31400.
Margaret Lindley paid $15,160 of interest on her $301,600 acquisition debt for her home (fair market value of $501,600), $4,160 of interest on her $30,160 home-equity debt, $1,160 of credit card interest, and $3,160 of margin interest for the purchase of stock. Assume that Margaret Lindley has $10,160 of interest income this year and no investment expenses. How much of the interest expense may she deduct this year
Answer:
Margaret Lindley
Margaret Lindley can deduct $12,320 of the interest expense this year.
Explanation:
a) Data and Calculations:
Interest on $301,600 acquisition debt for her home = $15,160
Fair market value of home = $501,600
Interest on her $30,160 home-equity debt = $4,160
Credit card interest = $1,160
Margin interest expense = $3,160
Interest income received = $10,160
Deductible interest expense:
Interest on debt for her home = $15,160
Interest on home-equity debt = $4,160
Margin interest expense = $3,160
Interest income received = ($10,160)
Deductible interest expense = $12,320
b) Margaret cannot deduct her credit card interest because it is considered as a type of personal consumer finance interest. This type of interest expense is not tax-deductible.
governor of central bank of Nigeria
Answer:
Godwin Emefiele
Explanation:
Governor - Since 6/3/2014. Godwin Emefiele is the Governor of the Central Bank of Nigeria (CBN).
Ahsan Company makes 60,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows: Direct materials $12.60 Direct labor 17.20 Variable manufacturing overhead 4.10 Fixed manufacturing overhead 15.00 Unit product cost $48.90 An outside supplier has offered to sell the company all of these parts it needs for $69.70 a unit. If the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be $319,600 per year. If the part were purchased from the outside supplier, all of the direct labor cost of the part would be avoided. However, $4.30 of the fixed manufacturing overhead cost being applied to the part would continue even if the part were purchased from the outside supplier. This fixed manufacturing overhead cost would be applied to the company's remaining products. How much of the unit product cost of $48.90 is relevant in the decision of whether to make or buy the part? Multiple Choice $44.60 $17.20 $69.70
Answer:
Ahsan Company
Only $44.60 of the unit product cost of $48.90 is relevant in the decision of whether to make or buy the part.
Explanation:
a) Data and Calculations:
Annual units of parts produced = 60,000
Unit product costs:
Direct materials $12.60
Direct labor 17.20
Variable manufacturing overhead 4.10
Fixed manufacturing overhead 15.00
Unit product cost $48.90
Outside supplier's offer price per unit = $69.70
Relevant /avoidable costs:
Direct materials $12.60
Direct labor 17.20
Variable manufacturing overhead 4.10
Fixed manufacturing overhead 10.70
Unit product cost $44.60
Opportunity cost ($319,600/60,000) 5.33
Total avoidable/relevant costs/unit $49.93