Placid Lake Corporation acquired 90 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2020, when Scenic had a net book value of $640,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $7,000 per year.

Placid Lake's 2021 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $540,000. Scenic reported net income of $350,000. Placid Lake declared $170,000 in dividends during this period; Scenic paid $64,000. At the end of 2021, selected figures from the two companies' balance sheets were as follows:

Placid Lake Scenic
Inventory $380,000 $114,000
Land 840,000 440,000
Equipment (net) 640,000 540,000

During 2020, intra-entity sales of $195,000 (original cost of $90,000) were made. Only 30 percent of this inventory was still held within the consolidated entity at the end of 2020. In 2021, $330,000 in intra-entity sales were made with an original cost of $83,000. Of this merchandise, 40 percent had not been resold to outside parties by the end of the year.

Required:
a. What is consolidated net income for Placid Lake and its subsidiary?
b. If the intra-entity sales were upstream, how would consolidated net income be allocated to the controlling and interest?
c. If the intra-entity sales were downstream, how would consolidated net income be allocated to the controlling and interest?

Answers

Answer 1

Answer:

See the attached excel file for all the calculation related parts a, b, and c.

From the attached excel file, we have:

a. Consolidated net income for Placid Lake and its subsidiary is $815,700.

b-1. Noncontrolling interest share of consolidated net income is $27,570.

b-2. Placid Lakes share of consolidated net income is $788,130.

c-1. Noncontrolling interest share of consolidated net income is $34,300.

c-2.  Placid Lakes share of consolidated net income is $781,400.

Explanation:

Note: See the attached excel file for all the calculation related parts a, b, and c.


Related Questions

Time Warner Inc. is a leading media and entertainment company with businesses in television networks, filmed entertainment, and publishing. The company's recent annual report contained the following information (dollars in millions):

Net loss $(13,402 )
Depreciation, amortization, and impairments 34,790
Decrease in receivables 1,245
Increase in inventories 5,766
Decrease in accounts payable 445
Additions to equipment 4,377

Required:
a. Based on this information, compute cash flow from operating activities using the indirect method.
b. What were the major reasons that Time Warner was able to report a net loss but positive cash flow from operations? Why are the reasons for the difference between cash flow from operations and net income important to financial analysts?

Answers

Answer and Explanation:

a. The cash flow from operating activities using the indirect method is

Net loss $(13,402 )

Add: Depreciation, amortization, and impairments $34,790

Add: Decrease in receivables $1,245

Less: Increase in inventories -$5,766

Less: Decrease in accounts payable -$445

Net cash flow from operating activities $16,442

b. The reasons for net loss but positive cash flow from operations are

Change in current assets, liabilities, depreciation

ANd, the reasons for having a difference is that the operating activities records the cash payment & cash receipt related to operating activities and the rest of things would be ignored

Jeff, a 52% owner of an S corporation, has a stock basis of zero at the beginning of the year. Jeff's basis in a $10,000 loan made to the corporation and evidenced by a corporate note has been reduced to zero by pass-through losses. During the year, his net share of the corporate taxable income is $11,000. At the end of the year, Jeff receives a $15,000 cash distribution.
Discuss the tax effects of the distribution.

Answers

Answer:

See below

Explanation:

In order to restore any reduction in loan basis, only the net increase is applied in line with section 1367(b)(Adjustment to basis of stocks of shareholders).

What this means is that there is no net increase regarding the information given above I.e ($11,000 - $15,000).

We can safely conclude that there is $11,000 tax free income since the stock basis has been increased by $11,000. There is also a $4,000 capital gain.

Assume that Jones Co. will need to purchase 100,000 Singapore dollars (S$) in 180 days. Today's spot rate of the S$ is $.50, and the 180-day forward rate is $.53. A call option on S$ exists, with an exercise price of $.52, a premium of $.02, and a 180-day expiration date. A put option on S$ exists, with an exercise price of $.51, a premium of $.02, and a 180-day expiration date. Jones has developed the following probability distribution for the spot rate in 180 days: The probability that the forward hedge will result in a higher payment than the options hedge is ____ (include the amount paid for the premium when estimating the U.S. dollars required for the options hedge).

Answers

Answer:

10%

Explanation:

Based on the information given The PROBABILITY that the FORWARD HEDGE will tend to result in a higher payment than the OPTIONS HEDGE is 10% which indicate or means that Jones will pay the amount of $48,000 calculated as ( $.48 *$100,000) which is lower or lesser than the amount of $58,000 calculated as ( $.53 *$100,000) that was been paid with the forward hedge.

_____ Web sites are dedicated to employment opportunities with a given city, state, or country.


Education

Industry

Government

Corporate

Answers

Answer:

the answer is government

what is contract theory

Answers

Answer:

the study of how people and organizations construct and develop legal agreements. It analyzes how parties with conflicting interests build formal and informal contracts, even tenancy.

Answer:

Contract theory is the study of how people and organizations construct and develop legal agreements. ... Contract theory draws upon principles of financial and economic behavior as different parties have different incentives to perform or not perform particular actions

Explanation:

Social contract theory, nearly as old as philosophy itself, is the view that persons' moral and/or political obligations are dependent upon a contract or agreement among them to form the society in which they live

Dinkins Inc. is considering disposing of a machine with a book value of $50,000 and an estimated remaining life of five years. The old machine can be sold for $15,000. A new machine with a purchase price of $150,000 is being considered as a replacement. It will have a useful life of five years and no residual value. It is estimated that variable manufacturing costs will be reduced from $70,000 to $45,000 if the new machine is purchased.
Determine the net differential increase or decrease in cost for the entire five years for the new equipment.

Answers

Answer:

$10,000 increase

Explanation:

The computation of the net differential increase or decrease in cost for the entire five years for the new equipment is as follows:

Particulars                     Keep the    Replace the   Effect on Cost  

                                   old mach.    new mach.  

Cost of 5 years             350,000     225000                     -125000.00  

Investment in new machine 0            150000.00                150000.00  

Salvage value of old machine 0    -15000.00                 -15000.00  

Increase in cost               350,000        360000.00            10000.00

Why do governments usually support and regulate natural monopolies?

A two or more firms are cost-prohibitive

B competition makes prices lower in a natural monopoly

C owners of natural monopolies do not know how to manage them efficiently

D itis difficult to keep up with advancing technology

Answers

Answer:

c

Explanation:

A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.

An example of a monopoly is a utility company

A natural monopoly occurs due to the high start-up costs or a large economies of scale.

Natural monopolies are usually the only company providing a service in a particular region. there is no competition in a natural monopoly so prices tend to be high. government intervenes in a monopoly to ensure that customers are treated fairly  

Waterways has discovered that a small fitting it now manufactures at a cost of $1.00 per unit could be bought elsewhere for $0.83 per unit. Waterways has fixed costs of $0.20 per unit that cannot be eliminated by buying this unit. Waterways needs 474,000 of these units each year. If Waterways decides to buy rather than produce the small fitting, it can devote the machinery and labor to making a timing unit it now buys from another company. Waterways uses approximately 500 of these units each year. The cost of the unit is $13.26. To aid in the production of this unit, Waterways would need to purchase a new machine at a cost of $2,369, and the cost of producing the units would be $10.00 a unit. Without considering the possibility of making the timing unit, evaluate whether Waterways should buy or continue to make the small fitting. The company should (buy/Make) the fitting. Incremental cost / (savings) will be ____________$

Answers

Answer:

Particulars                           Make              Buy                Incremental cost

Manufacturing cost         $474,000                                     $474,000

Purchase                                                   $393,420           ($393,420)

                                                              (474,000*$0.83)

Fixed Cost                                                 $94,800             ($94,800)

                                                               (474,000*$0.20)

Total relevant cost           $474,000        $488,220         ($14,220)

Conclusion: The company should make the fitting and the incremental savings will be $14,220

Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, $20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.

Required:
Prepare the stockholders’ equity section of the balance sheet for Stahl Company.

Answers

Answer:

Stahl Company

Stockholders' Equity section of the balance sheet

As of December 31, 2019

Authorized shares:

Common Stock, 600,000 at $2 par value

6%, Preferred Stock, 80,000 at $20 par value

Issued shares:

Common stock, 75,000 at $2 par value        $150,000

6% Preferred stock, 5,000 at $20 par value   100,000

Additional Paid-in Capital, Common stock      975,000

Additional Paid-in Capital, 6% Preferred stock 25,000

Retained earnings, December 31, 2019          500,000

Total equity                                                   $1,750,000    

Explanation:

a) Data and Calculations:

Authorized shares:

Common Stock, 600,000 at $2 par value

6%, Preferred Stock, 80,000 at $20 par value

Issued shares:

Cash $1,125,000 Common stock $150,000 Additional Paid-in Capital, Common stock (75,000 * $13) $975,000

Cash $125,000 6% Preferred stock, $100,000 Additional Paid-in Capital, 6% Preferred stock $25,000 ($5 * 5,000)

Retained earnings, December 31, 2019 = $500,000  

Suppose we want to estimate the effects of alcohol consumption (alcohol) on college grade point average (cGPA). In addition to collecting information on grade point averages and alcohol usage, we also obtain attendance information (say, percentage of lectures attended, called attend). A standardized test score (say, SAT) and high school GPA (hsGPA) are also available
(i) Should we include attend along with alcohol as explanatory variables in a multiple regression model? (Think about how you would interpret beta-alcohol.)
(ii) Should SAT and hsGPA be included as explanatory variables? Explain.

Answers

Answer: See explanation

Explanation:

(i) Should we include attend along with alcohol as explanatory variables in a multiple regression model? (Think about how you would interpret beta-alcohol.)

No. We should not include attend along with alcohol as explanatory variables in a multiple regression model. This is due to the fact that a high degree of negative correlation exists between attend along with alcohol and including both of them will bring about multi collinearity.

(ii) Should SAT and hsGPA be included as explanatory variables? Explain.

Yes. SAT and hsGPA should be included as explanatory variables. This is important to overcome bias of the model.

When Should we include Attend along with alcohol as explanatory variables in a multiple regression model

(i) So according to me, my answer will be No. We should not include Attend along with alcohol as explanatory variables in multiple factors of the regression model. This is due to the fact that is a high degree of negative correlation exists between the attend also, along with alcohol, and including both of them will bring about multicollinearity.

(ii) When the variables  of SAT AND hsGPA my answer will be Yes. SAT and HSDPA should be included as explanatory variables. This is most important to overcome the bias of the model.

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Coronado Industries reported revenue of $1650000 in its accrual basis income statement for the year ended June 30, 2021. Additional information was as follows: Accounts receivable June 30, 2020 $405000 Accounts receivable June 30, 2021 521000 Uncollectible accounts written off during the fiscal year 16000 Under the cash basis, Coronado should report revenue of

Answers

Answer:

$1,518,000

Explanation:

Prepare a Total Accounts Receivable T Account to determine the revenue received in cash, which is the revenue to be reported under the Cash Basis.

Total Accounts Receivable T Account

Debit  :

Beginning Balance                                      $405000

Revenue                                                     $1650000

Total                                                         $2,055,000

Credit :

Cash (Balancing figure)                            $1,518,000

Uncollectible accounts written off               $16000

Ending Balance                                           $521000

Total                                                         $2,055,000

Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current year, ABC has net income of $325,000 after deducting Robert’s $100,000 salary. In addition to his compensation, ABC pays Robert dividends of $250,000. What is Robert’s qualified business income? Would your answer to part (a) change if you determined that reasonable compensation for someone with Robert’s experience and responsibilities is $200,000? Why or why not

Answers

Answer and Explanation:

a. The calculation of the robert qualified business income is shown below:

Since robert is the sole shareholder and CEO of the ABC Inc and earned the income of $325,000 after subtracting the deduction of $100,000 salary

Also their is a dividend of $250,000

But the qualified business income should be equivalent to the net income i.e. $325,000

b. In the case when there is $200,000 so the net income would be decreased by $100,000

Now the qualified business income is

= $325,000 - $100,000

= $225,000

A review of current distribution procedures reveals that the Valley Voice employs 100 truck drivers to drop off bundles of newspapers to 1,300 teenagers who deliver papers to individual homes. The drivers are paid an hourly wage while the teenagers receive 4 cents for each paper they deliver.

Turkey is considering an alternative method of distributing the papers, which he says has worked in other cities the size of Flower Mound (where the Valley Voice is published). Under the new system, the newspaper would retain 20 truck drivers to transport papers to five distribution centers around the city. The distribution centers are operated by independent contractors who would be responsible for making their own arrangements to deliver papers to subscribers’ homes. The 20 drivers retained by the Valley Voice would receive the same hourly rate as they currently earn, and the independent contractors would receive 20 cents for each paper delivered.

Required:
1. What payroll information does Turkey need in order to make a decision about adopting the alternative distribution method?
2. Assume the following information:

a. The average driver earns $42,000 per year.
b. Average employee income tax withholding is 15 percent.
c. The social security tax is 6.2 percent of the first $122,700 of earnings.
d. The Medicare tax is 1.45 percent of all earnings.
e. The state unemployment tax is 5 percent, and the federal unemployment tax is 0.6 percent of the first $7,000 of earnings.
f. Workers’ compensation insurance is 70 cents per $100 of wages.
g. The paper pays $300 per month for health insurance for each driver and contributes $250 per month to each driver’s pension plan.
h. The paper has liability insurance coverage for all teenage carriers that costs $100,000 per year.

3. Prepare a schedule showing the costs of distributing the newspapers under the current system and the proposed new system. Based on your analysis, which system would you recommend to Turkey?
4. What other factors, monetary and nonmonetary, might influence your decision?

Answers

Question Completion:

The Valley Voice is a local newspaper that is published Monday through Friday. It sells 90,000 coples dally. The paper is currently in a profit squeeze, and the publisher, Tom Turkey, Is looking for ways to reduce expenses.

Answer:

Valley Voice

1. It needs to know the total costs incurred under the old system and the new system.

2. See schedules below showing the costs under the two distribution systems.

3. The old system wins under economic considerations, especially given the fact that the publisher is currently experiencing profit squeeze.

4. If the amount paid per paper to the independent contractors can be renegotiated downwards, this may change the decision.  With the new arrangement, will more papers be sold each day?  Labor practices and laws do not favor the use of teenagers as workers.  Will the company face some penalties or sanctions as a result?  What about the bad publicity that the paper will face as a backlash following the use of teenagers?  There are other considerations.

Explanation:

a) Data and Calculations:

Number of copies daily = 90,000

Number of copies yearly = 32,850,000 (90,000 * 365 days)

Average annual salary of a driver = $42,000

Total annual salary of drivers = $4,200,000

Average employee income tax withholding = 15%

Social security tax = 6.2% of the first $122,700 of earners

Medicare tax = 1.45% all earnings

State Unemployment tax = 5%

Federal Unemployment tax  = 0.6% of the first $7,000 of earnings

Workers' compensation insurance = 0.7% ($0.70 per $100 of wages)

Health insurance for each driver = $3,600 ($300 * 12)

Pension Plan = $3,000 ($250 * 12)

Liability insurance coverage for all teenage carriers = $100,000 per year

Total cost under the old system:

Total annual salary of drivers ($42,000 * 100)         $4,200,000

Social security tax = 6.2% of the first $122,700 =              7,607

Medicare tax = 1.45% all earnings =                                 60,900

State Unemployment tax = 5%                                       105,000 (1/2)

Federal Unemployment tax  = 0.6% of the first

$7,000 of earnings ($700,000 * 0.6%)                            4,200

Workers' compensation insurance = 0.7%

($0.70 per $100 of wages)  ($4,200,000 * 0.7%)         29,400

Health insurance for each driver = $3,600 * 100

($300 * 12)                                                                    360,000

Pension Plan = $3,000 ($250 * 12) $3,000 * 100       300,000

Liability insurance coverage

for all teenage carriers = $100,000 per year             100,000

Payment to teenage carriers ($0.04 * 32,850,000) 1,314,000

Total payroll cost                                                      $6,481,100

Total cost under the new arrangement:

Total annual salary of drivers ($42,000 * 20)         $840,000

Social security tax = 6.2% of the first $122,700 =          7,607

Medicare tax = 1.45% all earnings =                              12,180

State Unemployment tax = 5%                                    21,000 (1/2)

Federal Unemployment tax  = 0.6% of the first

$7,000 of earnings ($700,000 * 0.6%)                       4,200

Workers' compensation insurance = 0.7%

($0.70 per $100 of wages)  ($840,000 * 0.7%)          5,880

Health insurance for each driver = $3,600 * 20

($300 * 12)                                                                 72,000

Pension Plan = $3,000 ($250 * 12) $3,000 * 20     60,000

Payment to contractors ($0.20 * 32,850,000)  6,570,000

Total payroll cost                                               $7,592,867

On October 1, 2021, the Allegheny Corporation purchased equipment for $148,000. The estimated service life of the equipment is 10 years and the estimated residual value is $5,000. The equipment is expected to produce 260,000 units during its life.Required:Calculate depreciation for 2021 and 2022 using each of the following methods. Partial-year depreciation is calculated based on the number of months the asset is in service.

Answers

Answer:

Missing word: "1. Straight line.  2. Double-declining balance. Depreciation rate(20%)"

1. Straight line depreciation

Annual Depreciation = Cost - Salvage / Estimated Useful Life (years)

Annual Depreciation = $143,000 / 10

Annual Depreciation = $14,300

Depreciation Expenses = Annual Depreciation * Fraction of Year

2021: Depreciation Expenses = 14300 * 3/12

Depreciation Expenses = $3575

2022: Depreciation Expenses = 14300 * 12/12

Depreciation Expenses = $14,300

2. Double-declining balance

Depreciation Expense = Beginning of period Book value * Depreciation rate(%) * Fraction of Year

2021: Depreciation Expense  = $148000 * 20% 3/12

Depreciation Expense = $7400

Book Value = Beginning of period Book value - Accumulated Depreciation

Book Value = $148000 - $7400

Book Value = $140,600

2022: Depreciation Expense = $140,600 * 20% * 12/12

Depreciation Expense = $35,520

Book Value = Beginning of period Book value - Accumulated Depreciation

Book Value = $140,600 - $35,520

Book Value = $105,080

The company owns 9,000 acres of timberland purchased two years ago at a cost of $1,400 per acre. At the time of purchase, the land without the timber was valued at $400 per acre. In the current year, the company built fire lanes and roads, with a life of 30 years, at a cost of $84,000. Every year, the company sprays to prevent disease at a cost of $3,000 per year and spends $7,000 to maintain the fire lanes and roads. During the current year, the company selectively logged and sold 700,000 board feet of timber, of the estimated 3,500,000 board feet. Next year, the company will plant new seedlings to replace the trees cut at a cost of $100,000. What is the cost of timber sold related to depletion during the current year

Answers

Answer:

See below

Explanation:

First, we will calculate the depreciation expenses

Depreciation expense = Cost / life = $84,000 / 30 = $2,800 per year

Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below:

Standard Quantity or Hours Standard Price or Rate Standard Cost
Direct materials 7.90 pounds $2.10 per pound $16.59
Direct labor 0.50 hours $5.00 per hour $2.50

During the most recent month, the following activity was recorded:

a. 14,850.00 pounds of material were purchased at a cost of $2.00 per pound.
b. All of the material purchased was used to produce 1,500 units of Zoom.
c. 600 hours of direct labor time were recorded at a total labor cost of $4,200.

Required:
1. Compute the materials price and quantity variances for the month.
2. Compute the labor rate and efficiency variances for the month.

Answers

Answer:

Results are below.

Explanation:

To calculate the direct material price and quantity variance, we need to use the following formulas:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (2.1 - 2)*14,850

Direct material price variance= $1,485 favorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (7.9*1,500 - 14,850)*2.1

Direct material quantity variance= $6,300 unfavorable

To calculate the direct labor efficiency and rate variance, we need to use the following formulas:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Direct labor time (efficiency) variance= (1,500*0.5 - 600)*5

Direct labor time (efficiency) variance= $750 favorable

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor rate variance= (5 - 7)*600

Direct labor rate variance=  $1,200 unfavorable

Actual rate= 4,200/600= $7

Swifty Company manufactures and sells three products. Relevant per unit data concerning each product are given below. Product A B C Selling price $9 $14 $18 Variable costs and expenses $6 $12 $15 Machine hours to produce 2 1 2 Compute the contribution margin per unit of limited resource (machine hours) for each product. (Round contribution margin per unit to 2 decimal places, e.g. 1.50.) Product A Product B Product C Contribution margin per unit of limited resource $ $ $ Assuming 3,000 additional machine hours are available, which product should be manufactured

Answers

Answer:

Product A = 1.50

Product B =  2

Product C =  1.50

Explanation:

Contribution margin = (price - variable cost) /  total number of hours

Product A = ($9 - $6) / 2 = 1.50

Product B = ($14 - $12) / 1 = 2

Product C = ($18 - $15) / 2 = 1.50

Product B would be produced because its contribution margin is the highest

Replenishing the Petty Cash Fund
illustration: On March 15 Zhu Ltd's petty cash custodian
requests a check for NT$2,610. The fund contains NT$390
cash and petty cash receipts for postage NT$1,320, freight-out
NT$1,140, and miscellaneous expenses NT$150. The journal
entry is:

Answers

Answer:

Explanation:

Postage expense.           1320

freight out.                       1140

miscellaneous exp.           150

          Cash.                                          2610

to replenish petty cash account

note that pettty cash is only debited or credited when you are increasing Or decreasing the petty cash fund. This entry appears to be only replenishing the petty cash account.

Lunar coast Incorporated issued BBB bonds two years ago that provided a yield to maturity of 12.5
percent. Long-term risk-free government bonds were yielding 8.5 percent at that time. The current
risk premium on BBB bonds versus government bonds is half of what it was two years ago. If the riskfree long-term government bonds are currently yielding 7.8 percent, then at what rate should Lunar
coast expect to issue new bonds

Answers

Answer:

"9.80%" is the appropriate solution.

Explanation:

The given values are:

Yield to maturity,

= 12.5%

Risk free gov. bond,

= 8.5%

Long terms gov. bond,

= 7.8%

Now,

The current speed between bonds such as BBB as well as government will be:

= [tex]\frac{12.5-8.5}{2}[/tex]

= [tex]\frac{4}{2}[/tex]

= [tex]2.00 \ percent[/tex]

hence,

The expected rate will be:

= [tex]7.8+2.00[/tex]

= [tex]9.80 \ percent[/tex]

The stockholders’ equity section of Velcro World is presented here.
VELCRO WORLD
Balance Sheet (partial)
($ and shares in thousands)
Stockholders' equity:
Preferred stock, $1 par value $ 5,800
Common stock, $1 par value 28,000
Additional paid-in capital 1,028,600
Total paid-in capital 1,062,400
Retained earnings 286,000
Treasury stock, 12,000
Common shares (360,000)
Total stockholders' equity $ 988,400
Based on the stockholders' equity section of Velcro World, answer the following questions. Remember that all amounts are presented in thousands.
1. How many shares of preferred stock have been issued? (Enter you answer in total number of shares, not in thousands.)
2. How many shares of common stock have been issued? (Enter you answer in total number of shares, not in thousands.)
3. If the common shares were issued at $30 per share, at what average price per share were the preferred shares issued?
4. If retained earnings at the beginning of the period was $250 million and $30 million was paid in dividends during the year, what was the net income for the year? (Enter your answer in million (i.e., 5,000,000 should be entered as 5).)
5. What was the average cost per share of the treasury stock acquired?

Answers

Answer:

Velcro World

1. Prefered stock issued = 5,800,000

2. Common stock issued = 28,000,000

3. Average price of preferred stock = $38

4. Net income for the year =                       $66

5. Average cost per share of the treasury stock acquired =  $30

Explanation:

a) Data and Calculations:

VELCRO WORLD

Balance Sheet (partial)

($ and shares in thousands)

Stockholders' equity:

Preferred stock, $1 par value      $ 5,800

Common stock, $1 par value       28,000

Additional paid-in capital         1,028,600

Total paid-in capital                 1,062,400

Retained earnings                     286,000

Treasury stock, 12,000             (360,000)

Total stockholders' equity     $ 988,400

1. Prefered stock issued = 5,800,000

2. Common stock issued = 28,000,000

3. Additional paid in capital = 1,028,600,000

less common stock (part)         812,000,000 ($29 * 28,000,000)

Preferred stock (part)               216,600,000

add Preferred stock                     5,800,000

Total preferred stock value    222,400,000

Average price = 222,400,000/5,800,000 = $38

4. Retained earnings at the end =        $286,000,000

add dividends paid during the year          30,000,000

Retained earnings at the beginning = $250,000,000

Net income for the year =                       $66,000,000

$66

5. Average cost per share of the treasury stock acquired = $360,000,000/12,000,000 = $30

The information in the table is from the statement of cash flows for a company at four different points in time (M, N, O, and P). Negative values are presented in parentheses.
For each point in time, state whether the company is most likely in the introductory phase, growth phase, maturity phase, or decline phase.
Point in Time
M N O P
Net cash provided by
operating activities $(60,000) $30,000 $120,000 $(10,000)
Cash provided by
investing activities (100,000) 25,000 30,000 (40,000)
Cash provided by
financing activities 70,000 (90,000) (50,000) 120,000
Net income (38,000) 10,000 100,000 (5,000)

Answers

Answer: m-introductory phase

n-decline phase

o-maturity phase

p-growth phase

Explanation:

For M, based on the values given, the company is in the introductory phase. This is the product's cycle first stage where a particular product is being launched into the market.

For N, based on the values given, the company is in the decline phase. This is the phase where there's reduction in sales and profits stop.

For O, based on the values given, the company is in the maturity phase. This is the stage of whereby the growth of the sales has started to reduce.

For P, based on the values given, the company is in the growth phase. This is the stage whereby the product gains acceptance among the consumers, and the public as a whole. There'll also be an increase in the sales and revenue.

Communication starts with

Answers

sender

is answer..

........

In a two-player, one-shot simultaneous-move game each player can choose strategy A or strategy B. If both players choose strategy A, each earns a payoff of $400. If both players choose strategy B, each earns a payoff of $200. If player 1 chooses strategy A and player 2 chooses strategy B, then player 1 earns $100 and player 2 earns $600. If player 1 chooses strategy B and player 2 chooses strategy A, then player 1 earns $600 and player 2 earns $100.

Required:
a. Write the above game in normal form.
b. Find each player’s dominant strategy, if it exists.
c. Find the Nash equilibrium (or equilibria) of this game.
d. Rank strategy pairs by aggregate payoff (highest to lowest).
e. Can the outcome with the highest aggregate payoff be sustained in equilibrium? Why or why not?

Answers

Answer:

a) attached below

b)  Player 1 dominant strategy =  when he chooses strategy B

     Player 2 dominant strategy = when he chooses strategy B

c) Strategy A is the Nash equilibrium

d) AA  = $800

   AB , BA = $700

   BB = $400

e) Yes

Explanation:

A) The Game written in Normal form

     attached below

B) Determine each player dominant strategy

Player 1 dominant strategy =  when he chooses strategy B

Player 2 dominant strategy = when he chooses strategy B

C) The Nash Equilibrium of the game is when Both players choose strategy A because when they both choose Strategy they both earn $400 each

D) Ranking strategy pairs from Highest to lowest

   AA  = $800

   AB , BA = $700

   BB = $400

E) The outcome can be sustained

because The Nash equilibrium is the same as the highest ranking strategy pair ( i.e. AA  = $800 )

 

   

TB MC Qu. 08-93 A company has established... A company has established 5 pounds of Material J at $2 per pound as the standard for the material in its Product Z. The company has just produced 1,000 units of this product, using 5,200 pounds of Material J that cost $9,880.The direct materials price variance is: Multiple Choice $520 unfavorable. $400 unfavorable. $120 favorable. $520 favorable. $400 favorable.

Answers

Answer:

Direct material price variance= $520 favorable

Explanation:

To calculate the direct material price variance, we need to use the following formula:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (2 - 1.9)*5,200

Direct material price variance= $520 favorable

Actual price= 9,880 / 5,200= $1.9

During a(n) _____ interview, all applicants will be asked the exact same questions.


structured

open

inquiry

behavioral

Answers

It is open when u read it with all the options and because open sounds the best

Answer:

structured is the correct answer.

Explanation:

on edge.

"What are the results of a contractionary monetary policy, which intends to slow down the economy, and what are not? You are currently in a sorting module. Turn off browse mode or quick nav, Tab to items, Space or Enter to pick up, Tab to move, Space or Enter to drop. Is a result of a contractionary monetary policy (tight money policy) Is not a result of contractionary monetary policy (tight money policy)"

Answers

Answer:

Contractionary monetary policy usually results in:

lower money supplyhigher interest rateslower inflation rateslower investment rateslower nominal gross domestic producthigher unemploymentdecrease in consumer spendingaggregate demand curve shifts to the left

Answer: It can decrease inflation.

Explanation:

EllaJane Corporation was organized several years ago and was authorized to issue 4,000,000 shares of $50 par value 4% preferred stock. It is also authorized to issue 1,750,000 shares of $1 par value common stock. In its fifth year, the corporation has the following transactions: Mar. 1 Purchased 2,500 shares of its own common stock at $14 per share.
Apr. 10 Reissued 1,250 shares of its common stock held in the treasury for $18 per share.
Jun. 12 Reissued 1,250 shares of common stock at $12 per share.
Journalize the transactions.

Answers

Answer:

          Ellajane Corporation - Journal Entries

Date       Particulars                       Debit         Credit

1-Mar      Treasury Stock              $35,000

                     To Cash                                       $35,000

               (Being 2500 shares of treasury stock purchased at $14 per share)

10-Apr       Cash A/c (1250*$18)    $22,500

                        To Treasury Stock (1250*14)      $17,500

                        To Additional Paid in Capital     $5,000

                 (Being 1250 shares of treasury stock sold at $18 per share)

12-Jun       Cash A/c (1250*12)                      $15,000

                  Additional Paid in Capital A/c   $2,500

                          To Treasury Stock (1250*14)                 $17,500

                   (Being 1250 shares of treasury stock sold at $12 per share)

advantages and disadvantages of proxemics​

Answers

Answer:

Advantages of non-verbal communication are a compliment, substitute, attraction, express, helps physically challenged

You got asked to analyze a 5 year project for your firm. The project produces an annual revenue of $28,500, but requires an annual labor and materials cost of $5,000. To initiate the project your firm must invest $20,000. The salvage value of the project is $5,000 and has a 5 year useful life.
Use straight line depreciation and a 40% income tax rate to compute the after tax cash flows and the IRR for the ATCF of this project.

Answers

Answer:

15,300

72.70%

Explanation:

After tax cash flow = (revenue - cost - depreciation) (1 - tax rate) + depreciation

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

($20,000 - $5,000) / 5 = $3,000

($28,500 - $5,000 - $3000) x (1 - 0.4) + $3000 = $15,300

Terminal year cash flow = after tax cash flow + salvage value

$15,300 + $5,000 = $20,300

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

Cash flow in year 0 = $20,000.

Cash flow in year 1 - 4= $15,300

Cash flow in year 5 = $20,300

IRR = 72.70%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

An airline knows that there are two types of travelers: business travelers and vacationers. For a particular flight, there are 100 business travelers who will pay $600 for a ticket while there are 50 vacationers who will pay $300 for a ticket. There are 150 seats available on the plane. Suppose the cost to the airline of providing the flight is $20,000, which includes the cost of the pilots, flight attendants, fuel, etc.

Required:
a. How much profit will the airline earn if it sets the price of each ticket at $600?
b. How much additional profit can the airline earn by charging each customer their willingness to pay relative to charging a flat price of $600 per ticket?

Answers

Answer: it would be 100 business travlers who will pay 600$ for a ticket

Explanation: well if you do the math 600×100=60,00 and that would pay for the airline expenses and extra the other option wouldnt be enough because it would only add up to 15,000 300×50=15,00 so it would be enough

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