Answer:
interest expense per coupon payment (every 6 months) = $153,000
Explanation:
In this case, since the bonds were sold at par, the interest expense and the actual cash payments are the same (no premium or discount would be amortized). To calculate the interest payment we just multiply the bonds' face value x annual interest rate x 1/2 (semiannual coupons) = $3,400,000 x 9% x 1/2 = $153,000
On October 5, Ivanhoe Company buys merchandise on account from Pharoah Company. The selling price of the goods is $5,240, and the cost to Pharoah Company is $3,180. On October 8, Ivanhoe Company returns defective goods with a selling price of $640 and a scrap value of $310. Record the transactions on the books of Pharoah Company, assuming a perpetual approach. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit choose a transaction date enter an account title to record credit sales Inventory enter a debit amount enter a credit amount enter an account title to record credit sales Accounts Payable enter a debit amount enter a credit amount (To record credit sales) enter an account title to record cost of goods sold on account Accounts Payable enter a debit amount enter a credit amount enter an account title to record cost of goods sold on account Inventory enter a debit amount enter a credit amount (To record cost of goods sold on account) choose a transaction date enter an account title to record credit granted for receipt of returned goods Accounts Receivable enter a debit amount enter a credit amount enter an account title to record credit granted for receipt of returned goods Sales Revenue enter a debit amount enter a credit amount (To record credit granted for receipt of returned goods) enter an account title to record scrap value of goods returned enter a debit amount enter a credit amount enter an account title to record scrap value of goods returned enter a debit amount enter a credit amount (To record scrap value of goods returned)
Answer:
From Pharaoh's point of view:
October 5, merchandise sold on account to Ivanhoe Company
Dr Accounts receivable 5,240
Cr Sales revenue 5,240
Dr Cost of goods sold 3,180
Cr Inventory 3,180
October 8, defective merchandise is returned
Dr Sales returns and allowances 640
Cr Accounts receivable 640
Dr Inventory 310
Cr Cost of goods sold 310
From Ivanhoe's point of view:
October 5, merchandise sold on account from Pharaoh Company
Dr Inventory 5,240
Cr Accounts payable 5,240
October 8, defective merchandise is returned
Dr Accounts payable 640
Cr Inventory 640
When a company constructs a building, the cost of the building includes materials and labor but not design fees, building permits, or insurance during construction.
a. True
b. False
Answer:
False.
Explanation:
Construction costs can be defined as the overall costs associated with the development of a built asset, project or property. The construction costs is classified into two (2) main categories and these are;
1. Operational costs: these include the costs on daily basis during the construction process such as rent, wages, sales, utility bills, maintenance and repair fees etc.
2. Capital costs: these include the costs incurred in the acquisition of the property such as commissions, insurance, property acquisition, materials, inflation, fittings, equipment, labor etc.
Hence, when a company constructs a building, the cost of the building includes materials and labor as well as the design fees, building permits, or insurance during construction.
If Tamarisk, Inc. realizes a loss of $9400 on a cash sale of office equipment having a book value of $93600, the total amount reported in the cash flows from investing activities section of the statement of cash flows is
Answer:
The total amount reported in the cash flows from investing activities section of the statement of cash flows is $84,200.
Explanation:
Cash flow from Investing Activities involve the Purchase and or sale of Capital Investments in the business.
The only cash item from Investing Activity for Tamarisk, Inc in the sale of office equipment is the Proceeds or Selling Price that it received in the sale transaction.
Calculation of the Sale Proceeds :
Hint : Open an Office Equipment Disposal T - Account
Office Equipment Disposal T - Account
Debit :
Book Value $93,600
Totals $93,600
Credit :
Profit and Loss $9,400
Proceeds (Balancing figure) $84,200
Totals $93,600
Conclusion :
The total amount reported in the cash flows from investing activities section of the statement of cash flows is $84,200.
In your opinion, can exchange rate volatility be managed? Why or why not? Explain your answer.
The correct answer to this open question is the following.
What I think about exchange rate volatility is that investors have to learn to manage this volatility because it is part of the stock market on a daily basis. Indeed, it is the nature of the game. Managing foreign exchange or FX, as it is also known, is of the utmost importance in this globalized world of investments. The price of goods and products that are exported such as iron, steel, or any other commodity has been very volatile in recent years, that is why investors and countries have to hire experts to manage their operations. One of the resources that can help investors regarding this issue is to mitigate the uncertainty with futures or currency forwards.
On January 1, 20X6, Pumpkin Corporation acquired 70 percent of Spice Company's common stock for $210,000 cash. The fair value of the noncontrolling interest at that date was determined to be $90,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:______.
Pumpkin Spice Cash 50,000 15,000 Accounts Receivable 70,000 25,000 Inventory 30,000 20,000 Land 150,000 80,000 Buildings and Equipment 250,000 200,000 Less: Accumulated Depreciation -70,000 -20,000 Investment in Spice Co. 210,000 Total Assets 690,000 320,000 Accounts Payable 40,000 10,000 Bonds Payable 150,000 40,000 Common Stock 300,000 90,000 Retained Earnings 200,000 180,000 Total Liabilities and Equity 690,000 320,000 At the date of the business combination, the book values of Spice's assets and liabilities approximated fair value except for inventory, which had a fair value of $30,000, and land, which had a fair value of $95,000. 1. what amount of total inventory will be reported in the consolidated balance sheet prepared immediately after the business combination?
Answer:
Total inventory in consolidated balance = $60,000
Explanation:
In the consolidated balance sheet, we record the sum of both parent and subsidiary assets. Here pumpkin and spice both have an inventory of $30,000.
Total inventory in consolidated balance = Pimpkin's Inventory + fair value of Spice's inventory
Total inventory in consolidated balance = $30,000 + $30,000
Total inventory in consolidated balance = $60,000
Ross Island Co. issues 10,000 shares of no-par value preferred stock for cash at $120 per share. The journal entry to record the transaction will consist of a debit to Cash for $1,200,000 and a credit (or credits) to:
Answer:
Please see answer below
Explanation:
The journal entry to record the issuance of 10,000 shares of no-par value preferred stock for cash at $120 per shares has a debit to cash and a credit to preferred stock for $1,200,000 ( 10,000 shares × issue price of $120 per share )
If a firm has a levered beta of .9 and a debt to equity ratio of 1, what is the unlevered beta assuming a tax rate of 30%? (Round to the nearest hundredth)
Answer:
Unlevered beta = 0.53
Explanation:
Beta is a measure of systematic risk. Systematic risk is further divided into business and financial.
Business risk and financial risk. Business risk is that associated with the nature of the business operations that causes variability in the operating income of the business.
This is measured by the unlevered beta where the company has no debt finance.
Financial risk, on the other hand, is associated with use of debt finance . A company that uses a form of debt would face such risk . The systematic risk of such business would be measured using the levered beta.
The formula below shows the relationship:
βa = βe × Ve/ (Ve + Vd(1-T) )
βa -Unlevered beta
βe - Levered beta
Ve- Equity weight
Vd- Debt weight
T- Tax rate
DATA
βe- 0.9
βa- ?
Ve- 1
Vd- 1
T- 0.3
βa = 0.9 × 1/(1 + 1×(1-0.3)=0.529
βa - 0.53
Unlevered beta = 0.53
In the Schedule of Cost of Goods Manufactured and Cost of Goods Sold, the cost of goods manufactured is computed according to which of the following equations?
A. Cost of goods manufactured = Total manufacturing costs + Beginning finished goods inventory – Ending finished goods inventory.
B. Cost of goods manufactured = Total manufacturing costs + Beginning work in process inventory – Ending work in process inventory.
C. Cost of goods manufactured = Total manufacturing costs + Ending work in process inventory – Beginning work in process inventory.
D. Cost of goods manufactured = Total manufacturing costs + Ending finished goods inventory – Beginning finished goods inventory.
Answer:
B
Explanation:
The cost of goods manufactured calculates the total production cost of manufactured goods in a particular period
Your company has assigned one of its vice presidents to function as your project sponsor. Unfortunately, your sponsor refuses to make any critical decisions, always "passing the buck" back to you. What should you do
Explanation:
In this case, the best thing to do is to try to see the challenge of dealing with the lack of critical decision making by the project sponsor, as an opportunity to make the project progress smoothly and reach its best potential.
For this, the ideal is to respect the costs and the deadlines, without exceeding the budgets and the time necessary to carry out the tasks.
The good relationship between the team is also essential for there to be the necessary fluidity for the project to take place organically and as planned. It is also necessary to be attentive to the project's indicators, since monitoring and control are essential to observe the progress of the achievement of goals and the overall performance of the project's progress.
Bermuda Triangle Corporation (BTC) currently has 390,000 shares of stock outstanding that sell for $102 per share. Assume no market imperfections or tax effects exist. Determine the share price and new number of shares outstanding if: (Do not round intermediate calculations. Round your price per share answers to 2 decimal places, e.g., 32.16, and shares outstanding answers to the nearest whole number, e.g., 32.) a. BTC has a five-for-three stock split. b. BTC has a 10 percent stock dividend. c. BTC has a 37.0 percent stock dividend. d. BTC has a four-for-seven reverse stock split.
Answer and Explanation:
The computation of each points is shown below:-
a. BTC has a five-for-three stock split is
New price = Old price × Split ratio
= 102 × 3 ÷ 5
= 61.2
New shares outstanding = old shares outstanding ÷ Split ratio
= 390,000 × 5 ÷ 3
= 650,000
b. BTC has a 10 percent stock dividend is
New price = Old price ÷ (1 + Stock dividend)
= 102 ÷ (1 + 0.1)
= 92.73
New shares outstanding = Old shares outstanding × (1 + Stock dividend)
= 390,000 × (1 + 0.1)
= 429,000
c. BTC has a 37.0 percent stock dividend is
New price = Old price ÷ (1 + Stock dividend)
= 102 ÷ (1 + 0.37)
= 74.45
New shares outstanding = Old shares outstanding × (1 + Stock dividend)
= 390,000 × (1 + 0.37)
= 534,300
d. BTC has a four-for-seven reverse stock split is
New price = Old price × Split ratio
= 102 × (7 ÷ 4)
= 178.5
New shares outstanding = Old shares outstanding ÷ Split ratio
= 390,000 × (4 ÷ 7)
= 222,857.14
Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. The journal entry to record June production activities for direct material usage is:
Direct materials used $87,000
Direct labor used 160,000
Predetermined overhead rate (based on direct labor) 155%
Goods transferred to finished goods 432,000
Cost of goods sold 444,000
Credit sales 810,000
a. Debit Accounts Receivable $810,000; credit Cost of Goods Sold $810,000.
b. Debit Accounts Receivable $810,000; credit Sales $366,000; credit Finished Goods Inventory $444,000.
c. Debit Cost of Goods Sold $444,000; credit Sales $444,000.
d. Debit Finished Goods Inventory $444,000; debit Sales $810,000; credit Accounts Receivable $810,000; credit Cost of Goods Sold $444,000.
e. Debit Accounts Receivable $810,000; credit Sales $810,000; debit Cost of Goods Sold $444,000; credit Finished Goods Inventory $444,000.
Answer:
e. Debit Accounts Receivable $810,000; credit Sales $810,000; debit Cost of Goods Sold $444,000; credit Finished Goods Inventory $444,000.
Explanation:
During the sale for the period, the Cost of Sales of $444,000 has to be removed from the Finished Goods Inventory as :
Cost of Goods Sold $444,000 (debit)
Finished Goods Inventory $444,000 (credit)
At the Same time, the Sales Revenue and Accounts Receivable have to be recognized at $810,000 as
Accounts Receivable $810,000 (debit)
Sales Revenue $810,000 (credit)
The combined effect gives us option e : Debit Accounts Receivable $810,000; credit Sales $810,000; debit Cost of Goods Sold $444,000; credit Finished Goods Inventory $444,000.
The journal entry to record June production activities for direct material usage is Debit Accounts Receivable $810,000; credit Sales $810,000; debit Cost of Goods Sold $444,000; credit Finished Goods Inventory $444,000. Thus, the appropriate answer choice is option (e).
Merchandise refers to as finished goods and products that have been purchased and are prepared for sale.
During the sale for the period, the Cost of Sales of $444,000 has to be removed from the Finished Goods Inventory as :
Cost of Goods Sold $444,000 (debit)
Finished Goods Inventory $444,000 (credit)
At the Same time, the Sales Revenue and Accounts Receivable have to be recognized at $810,000 as:
Accounts Receivable $810,000 (debit)
Sales Revenue $810,000 (credit)
Therefore, the combined effect gives us option e.
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The structural unemployment rate is 1.7 percent, the frictional unemployment rate is 2.6 percent, and the economy's current unemployment rate is 3.9 percent. The economy is in:_______.
a. long-run equilibrium.
b. a recessionary gap producing more than Natural Real GDP.
c. a recessionary gap producing less than Natural Real GDP.
d. an inflationary gap producing Natural Real GDP.
e. an inflationary gap producing more than Natural Real GDP.
Answer:
a. long-run equilibrium.
Explanation:
In the circumstances that the structural unemployment rate is 1.7 percent, the frictional unemployment rate is 2.6 percent, and the economy's current unemployment rate is 3.9 percent. Then we can say that the economy is in a long-run equilibrium.
Structural unemployment can be defined as an involuntary unemployment that arises as a result of the incompatibility between a worker's skills set and requisite skills an employer seeks from the workers or due to technological changes.
Frictional unemployment is a form of unemployment which is voluntary because employees which to change jobs or move to another better job.
Hence, the economy is in a long-run equilibrium because the rate of unemployment has become constant, thus, prices and wages will be adjusted in order to reach wages equilibrium level.
What's the answer to this question?
Apr. 20 Purchased $40,250 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 10%, $35,000 note payable along with paying $5,250 in cash. July 8 Borrowed $80,000 cash from NBR Bank by signing a 120-day, 9%, $80,000 note payable. ___?___ Paid the amount due on the note to Locust at the maturity date. ___?___ Paid the amount due on the note to NBR Bank at the maturity date. Nov. 28 Borrowed $42,000 cash from Fargo Bank by signing a 60-day, 8%, $42,000 note payable. Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank.
Prepare journal entries for all the preceding transactions
Answer:
Tyrell Co.
Journal Entries:
April 20:
Debit Inventory $40,250
Credit Accounts Payable (Locust) $40,250
To record purchase of merchandise on credit, terms n/30.
May 19:
Debit Accounts Payable (Locust) $40,250
Credit 10% Notes Payable (Locust) $35,000
Credit Cash Account $5,250
To record the 90-day, 10% Notes Payable and payment of cash.
July 8:
Debit Cash Account $80,000
Credit 9% Notes Payable (NBR Bank) $80,000
To record the signing of a 120 day 9% bank note payable.
August 18:
Debit 10% Notes Payable (Locust) $35,000
Debit Interest Expense $875
Credit Cash Account $35,875
To record payment at maturity.
November 7:
Debit 9% Notes Payable (NBR Bank) $80,000
Debit Interest Expense $2,400
Credit Cash Account $82,400
To record payment at maturity.
Nov 28:
Debit Cash Account $42,000
Credit 8% Notes Payable (Fargo Bank) $42,000
To record the issue of 60-day, 8% note payable.
Dec. 31:
Debit Interest Expense $560
Credit Interest on Notes Payable $560
To accrue interest expense for one month.
Explanation:
Journal entries are used to initially record business transactions of Tyrell Co. as above. They show the two or more accounts involved in each transaction. The accounts that receive values are debited, while the others are credited. This also balances the accounting equation based on each transaction.
First National Bank charges 14.1 percent compounded monthly on its business loans. First United Bank charges 14.4 percent compounded semiannually. Calculate the EAR for First National Bank and First United Bank. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) EAR First National % First United %
Answer:
For First National Bank = 15.05%
For first United bank = 14.92%
Explanation:
The computation of EAR for First National Bank and First United Bank is shown below:-
Effective annual rate EAR = (( 1 + i ÷ n)^n) - 1
as
I indicates the annual interest rate
n indicates the number of the compounding period
For First National Bank
Annual interest rate i = 14.1%
Effective annual rate EAR is
= ((1 + 0.141 ÷ 12)^12) - 1
= 1.1505 - 1
= 0.1505
or
= 15.05%
For first United bank
Effective annual rate EAR is
= (( 1+ 0.144 ÷ 2)^2) - 1
= 1.1492 -1
= 0.1492
or
= 14.92%
Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On August 31, the company’s records show the following selected accounts and amounts for the month of August.
Cash $25,330 Dividends $5,960
Accounts receivable 22,330 Consulting fees earned 26,970
Office supplies 5,210 Rent expense 9,510
Land 43,980 Salaries expense 5,580
Office equipment 19,970 Telephone expense 840
Accounts payable 10,730 Miscellaneous expenses 490
Common stock 101,500
Required:
Use the above information to prepare an August 31 balance sheet
Answer:
Help Today
Balance Sheet
For the month ended August 31, 202x
Assets:
Cash $25,330
Accounts receivable $22,330
Office supplies $5,210
Land $43,980
Office equipment $19,970
Total assets: $116,820
Liabilities and stockholders' equity:
Accounts payable $10,730
Common stock $101,500
Retained earnings $4,590
Total liabilities and stockholders' equity: $116,820
Explanation:
Income statement:
Consulting fees earned $26,970
Rent expense $9,510
Salaries expense $5,580
Telephone expense $840
Miscellaneous expenses $490
Net income $10,550
Retained earnings = net income - dividends = $10,550 - $5,960 = $4,590
A company is considering the purchase of new equipment for $57,000. The projected annual net cash flows are $23,400. The machine has a useful life of 3 years and no salvage value. Management of the company requires a 8% return on investment. The present value of an annuity of 1 for various periods follows:
Periods Present value of an annuity of 1 at 12%
1 0.8929
2 1.6901
3 2.4018
What is the net present value of this machine assuming all cash flows occur at year-end?
a. $30,000
b. $4,500
c. $(4,736)
d. $34,500
e. $82,862
Answer:
Net Present Value = $3,304.069
Explanation:
To determine whether or not the investment was right, we will need to determine the net present value of the investment (NPV).
The NPV is the difference between the present value PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite.
NPV of an investment(NPV)
NPV = PV of Cash inflows - PV of cash outflow
The cash inflow is an annuity.
PV of annuity= A× 1 -(1+r)^(-n)/r
A- Annual cash flow ,- 23,400 r - discount rate - 8%, number of years- 3
Present Value of cash inflow =23,400 × (1- (1.08)^(-3)/0.08 = 60,304.06
Initial cost = 57,000
Net Present Value = 60,304.06 - 57,000 = 3,304.069
Net Present Value = $3,304.069
Kindly note that a discount rate of 8% was used as it is the opportunity cost of capital for the investment.
Prepare journal entries to record the following four separate issuances of stock.
1. A corporation issued 8,000 shares of $20 par value common stock for $192,000 cash.
2. A corporation issued 4,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $33,000. The stock has a $1 per share stated value.
3. A corporation issued 4,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $33,000. The stock has no stated value.
4. A corporation issued 2,000 shares of $75 par value preferred stock for $183,000 cash.
Answer:
1.
DR Cash $192,000
CR Common stock. $160,000
CR Paid-in capital in excess of par value - Common stock $32,000
Working
Common Stock = $20 * 8,000
= $160,000
Paid-in capital in excess of par value - Common stock = 192,000 - 160,000
= $32,000
2
DR Organization expenses $33,000
CR Common stock, $4,000
CR Paid-in capital in excess of stated value - common stock $29,000
Working
Common Stock = 1 * 4,000
= $4,000
Paid-in capital in excess of stated value, common stock = 33,000 - 4,000
= $29,000
3
DR Organization expenses $33,000
CR Common stock $33,000
4
DR Cash $183,000
CR Preferred stock $150,000
CR Paid-in capital in excess of par value - preferred stock $33,000
Working
Preferred Stock = 75 * 2,000
= $150,000
Paid-in capital in excess of par value - preferred stock = 183,000 - 150,000
= $33,000
All of the following are items typically included in the job specification EXCEPT ________. educational requirements required compensation physical capabilities personality traits g
Answer:
Required compensation.
Explanation:
Job Specification provides details about the job as well as education, experiences and traits required to perform the job. Job Specification does not however disclose the required compensation as this follows agreement with successful candidates taking into account both the employer and employee circumstances.
The job specification does not provide the compensation.
What is job specification:
It gives the details related to the job also the education, experience are needed for performing the job. Moreover, the job specification provides the type of the job that the employee need to do perform. In additonal to this, it does not disclose the compensation requirement
Therefore, the second option is correct.
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The Sunflower, Inc makes and sells tasty hamburgers for $8 per unit with a unit variable cost of $6. All sales are for cash and the variable costs are paid immediately. The company has budgeted the following data for November:
Sales 20000 units
Cash,Beginning Balance $34,000
Selling and administratie(of which depreciation $5,000) $53,000
If necessary, the company will borrow cash from a bank on the first day of November. Assume that the borrowing can be made in any (exact) amount, but bears interest at 2% per month. The November interest will be paid in cash during November. What is the closest amount of cash that must be borrowed on November 1 to cover all cash disbursements and to obtain the desired November 30 cash balance?
Answer:
Amount to be borrowed is around $7,140
Explanation:
All the sales are cash sales
Total number of units produced and sold 20,000 units
Selling price is $8
Cash receipt on account on sales is 20,000 * $8 = $160,000
Variable cost per unit is $6
Total number of units produced and sold = 20,000 unit
Cash to be paid is $20,000 * $8 = $120,000
Calculation of Ending cash balance without considering Loan amount
Particulars Amount$ Amount$
Beginning Cash 34,000
Cash receipts on sales 160,000
Total cash available 194,000
Less: Cash disbursement 120,000
Variable cost
Selling and administrative 53,000
Less: Depreciation -5,000 48,000
Ending cash balance 26,000
Ending cash balance without considering loan amount is $26,000
Required cash balance is $33,000
Rate of interest of 2% per month
Amount to be taken as loan is: (Required cash balance - Available cash balance)* 102%
= ($33,000 - $26,000) * 102%
= $7,140
Amount to be borrowed is around $7,140
A state has strict laws stating that all employees, including part-time workers, must be compensated with employer-provided health benefits. Which of the following could result from this legislation?
1. More workers will be hired "informally" and be paid surreptitiously in cash.
2. Wages will decrease.
3. Unemployment will increase.
4. Any of the above could result from the legislation.
Answer: Any of the above could result from the legislation
Explanation:
From the question, we are informed that a state has strict laws stating that all employees, including part-time workers, must be compensated with employer-provided health benefits.
The likely effect of this law is that there will be a reduction on wages as employer's will try as much as possible to reducce cost incurred due to the health related compensation. Also, unemployment will increase and more workers will be hired "informally" and be paid surreptitiously in cash. This is because the cost of the employers will increase and they may need to lay some workers off.
Oriole Company had $197,000 of net income in 2019 when the selling price per unit was $152, the variable costs per unit were $90, and the fixed costs were $571,800. Management expects per unit data and total fixed costs to remain the same in 2020. The president of Oriole Company is under pressure from stockholders to increase net income by $99,200 in 2020.
Required:
a. Compute the number of units sold in 2019.
b. Compute the number of units that would have to be sold in 2020 to reach the stockholders’ desired profit .
c. Assume that Oriole Company sells the same number of units in 2020 as it did in 2019. What would the selling price have to be in order to reach the stockholders’ desired profit level?
Answer:
Instructions are below.
Explanation:
Giving the following information:
Net income= $197,000
Selling price per unit= $152
Unitary variable cost= $90
Fixed costs= $571,800
Desired profit= 99,200 + 197,000= $296,200
First, we need to calculate the number of units sold:
Contribution margin per unit= 152 - 90= $62
Total contribution margin= net income + fixed costs
Total contribution margin= 197,000 + 571,800= $768,800
Units sold= total contribution margin / unitary contribution margin
Units sold= 768,800/62= 12,400 units
Now, to determine the number of units to be sold, we need to use the following formula:
Break-even point in units= (fixed costs + desired profir) / contribution margin per unit
Break-even point in units= (571,800 + 296,200) / 62
Break-even point in units= 14,000 units
Finally, we need to determine the selling price for 12,400 units and the desired profit of $296,200.
12,400= 868,000 / (selling price - 90)
-1,116,000 + 12,400selling price= 868,000
12,400 selling price = 1,984,000
selling price= $160
A fund earned a net investment income (i.e. Ending Balance Starting Balance + Deposits/Withdrawals)) of 9200 during 1999. The beginning and ending balances of the fund were 100000 and 129200, respectively. A deposit was made at time K during the year. No other deposits or withdraws were made. The fund earned 8% in 1999 using the dollar-weighted method. Determine then date corresponding to time K
(a) April 1 (b) May 1 (c) July 1 (d) Sept. 1 (e) Oct. 1
Answer:________
Answer:
k = April 1 ( A )
Explanation:
Given data :
net investment income : $9200
Beginning balance = $100000
ending balance = $129200
deposit made
no withdrawals
interest earned = 8%
net investment ( $9200) = [ending balance - (starting balance + deposits/withdrawals )]
9200 = 129200 - 100000 - deposits
deposit = 129200 -100000 - 9200 = 20000
8% interest was earned on starting balance
= 8% of $100000 = $8000
interest earned on the deposit made = net income - interest earned on beginning balance = 9200 - 8000 = $1200
using the dollar-weighted method
assuming the deposit was made for Y months
interest earned on deposit = deposit * interest rate * (y/12)
1200 = 20000 * 8% * ( y /12 )
hence ( y/12) = 0.75 hence y = 9 months from December 31
which makes K = April 1
For each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the previous graph to identify its total variable cost. Assume that if the firm is indifferent between producing and shutting down, it will produce.
Price Quantity Total Revenue Fixed Cost Variable Cost Profit
(Dollars per polo) (Polos) (Dollars) (Dollars) (Dollars) (Dollars)
25.00 520,000
40.00 520,000
65.00 520,000
If the firm shuts down, it must incur its fixed costs (FC) in the short run. In this case, the firm's fixed cost is $520,000 per day. In other words, if it shuts down, the firm would suffer losses of $520,000 per day until its fixed costs end (such as the expiration of a building lease).
This firm's __________ that is, the price below which it is optimal for the firm to shut down is:________
Answer:
This firm's Shut down price, That is, the price below which it is optimal for the firm to shut down is $40.
Explanation:
Shut down point is the point at which a firm or business is not able to gain any profit or benefit from the operations. Firm try to stay in the market until they reach the shut down point in business. It is a point where a business revenue just covers the variable expenses.
Carly Corporation issued $200,000 of 30-year, 8% bonds at 106 on January 1, 2016. Interest is payable semiannually on June 30th and December 31st. The straight-line method of amortization is to be used. After 11 years, what is the carrying value of the bonds?
Answer:
$207,600
Explanation:
The journal entry to record the issuance of the bonds:
January 1, 2016
Dr Cash 212,000
Cr Bonds payable 200,000
Cr Premium on bonds payable 12,000
Premium on bonds payable $12,000 / 60 semiannual coupons = $200 amortization per coupon payment
after 11 years, 22 coupons were paid 22 x $200 = $4,400
bonds carrying value after 11 years = $200,000 + $12,000 - $4,400 = $207,600
Bagwell's net income for the year ended December 31, Year 2 was $175,000. Information from Bagwell's comparative balance sheets is given below. Compute the cash paid for dividends during Year 2. At December 31 Year 2 Year 1 Common Stock, $5 par value $500,000 $450,000 Paid-in capital in excess of par 948,000 853,000 Retained earnings 688,000 582,000 A. $95,000. B. $201,000. C. $69,000. D. $79,000. E. $50,000.
Answer:
C. $69,000
Explanation:
Computation of the cash paid for dividends during Year 2
First step is to calculate the difference in Retained earnings for Year 2 and Year 1
Retained earnings =$688,000-$582,000
Difference in retained earnings =$106,000
Second step is to calculate for the cash paid for dividends during Year 2
Using this formula
Cash paid dividend = Year 2 Net income- Retained earnings difference
Let plug in the formula
Cash paid dividend=$175,000-$106,000
Cash paid dividend =$69,000
Therefore the cash paid for dividends during Year 2 will be $69,000
The value of a listed call option on a stock is lower when: I. The exercise price is higher. II. The contract approaches maturity. III. The stock decreases in value. IV. A stock split occurs.
Answer: a. I, II, and III only
Explanation:
The exercise price refers to the amount that the person who buys the call option will get to buy the underlying stock at. If this price is high, the profit from buying the stock at maturity will be less so the value of the listed call option reduces.
As the contract approaches maturity, the value will decrease because it will be less volatile as it approaches maturity.
The purpose of buying a call option is so that a profit can be made if the underlying stock increases in value. If the stock decreases in value, the allure of the call option decreases so therefore will the value.
A call bond option is termed as the option that implies the bondholder the right to purchase the bonds at the prevailing price in the market. A buyer of a bond call option in the secondary market forecasts a drop in investment substantial rise in bond prices.
The correct option is a. I, II, and III only
Option a. I, II, and III only is correct because The contract value will decline as it reaches maturation because it will become less unpredictable.
The goal of purchasing a call option is to benefit if the price of the underlying stock rises. The attractiveness of the callable bond falls as the price of bitcoin declines, and the worth of the call option reduces as well.
The exercise price is the price where the individual who acquires a call option will be able to acquire the underlying shares. If this price is too high, the benefit from buying the stock at maturity will be too little, diminishing the value of the specified call option.
To know more about the listed call option, refer to the link below:
https://brainly.com/question/4490636
Inflation is a general rise in the level of prices experienced by people in a nation.
Answer:
True.
Explanation:
Inflation is an economic term that can be defined as the increase in the prices of a product on the market in a given period.
It can occur due to several factors, when there is an imbalance between supply and demand, then it is correct to say that when the demand for a product is greater than the supply, there will be an increase in prices and, consequently, inflation.
It can also occur when there are situations of monopoly, which is the pricing of a product controlled by a company.
Another factor that causes inflation is the increase in a company's production costs, which can be caused by factors such as scarcity, or economic crisis.
Uncontrolled inflation has a negative impact on the consumer's life, which starts to lose its purchasing capacity and has its quality of life reduced.
The Mahoney Company failed to accrue Rent Revenue on 12/31/23. The error was discovered on 2/1/24, before any cash was collected and after the 2023 books were closed. On 2/1/24, Mahoney would record:
Answer:
Mahoney would record record on the 2023 books A debit to rent receivables
Explanation:
As error of failure to accrue rent revenue on 12/31/2023 was discovered before closing of books, therefore on 02/01/2024 Mahoney would record on the 2023 books "A debit to rent receivables"
Flapjack Corporation had 7,600 actual direct labor hours at an actual rate of $12.41 per hour. Original production had been budgeted for 1,100 units, but only 950 units were actually produced. Labor standards were 7.0 hours per completed unit at a standard rate of $13.00 per hour. The direct labor time variance is
Answer:
-$12,350 Unfavorable
Explanation:
The computation of direct labor variance is shown below:
Labor time variance = (Standard hours - Actual hours) × standard rate
= (950 × 7.0 - 7,600) × $13
= (6,650 - 7,600) × $13
= -950 × $13
= -$12,350 Unfavorable
Therefore for computing the direct labor variance we simply applied the above formula by considering the given information