17. Sue and Andrew form SA general partnership. Each person receives an equal interest in the newly created partnership. Sue contributes $29,000 of cash and land with an FMV of $74,000. Her basis in the land is $39,000. Andrew contributes equipment with an FMV of $31,000 and a building with an FMV of $52,000. His basis in the equipment is $27,000, and his basis in the building is $39,000. How much gain must the SA general partnership recognize on the transfer of these assets from Sue and Andrew
Answer:
SA General Partnership
The amount of gain that SA General Partnership must recognize on the transfer of these assets from Sue and Andrew is:
= $52,000.
Explanation:
a) Data and Calculations:
Contributions by partners
Sue Andrew Partner's Partnership
FMV FMV Basis Gain/(Loss)
Cash $29,000 $29,000
Property:
Land 74,000 39,000 $35,000
Equipment 31,000 27,000 4,000
Building 52,000 39,000 13,000
Total property $74,000 $83,000 $134,000 $52,000
Partner's' basis $103,000 $83,000 $134,000 $52,000
Absorption and Variable Costing Comparisons Red Arrow Blueberries manufactures blueberry jam. Because of bad weather, its blueberry crop was small. The following data have been gathered for the summer quarter of last year: Beginning inventory (cases) 0 Cases produced 8,000 Cases sold 7,000 Sales price per case $ 115 Direct materials per case $ 25 Direct labor per case $ 40 Variable manufacturing overhead per case $ 10 Total fixed manufacturing overhead $ 192,000 Variable selling and administrative cost per case $ 2 Fixed selling and administrative cost $ 38,000 Functional Income Statement Contribution Income Statement Ending Inventory Analysis (a) Prepare a functional income statement for the quarter using absorption costing. (Round answers to the nearest dollar. Do not use negative signs with your answers, EXCEPT if you calculate a net loss.) RED ARROW BLUEBERRIES Functional (Absorption Costing) Income Statement For the Summer Quarter (Last Year) Sales Answer 805,000 Cost of goods sold: Variable costs Answer 616,000 Fixed costs Answer 192,000 Goods available Answer 808,000 Ending inventory Answer 99,000 Answer 693,000 Gross profit Answer 112,000 Operating expenses: Variable selling and administrative Answer 14,000 Fixed selling and administrative Answer 38,000 Answer 52,000 Net income (loss) Answer 60,000
Answer:
Red Arrow Blueberries
RED ARROW BLUEBERRIES Functional (Absorption Costing) Income Statement For the Summer Quarter (Last Year)
Sales $805,000
Cost of goods sold:
Variable costs 600,000
Fixed costs 192,000
Goods available 792,000
Ending inventory 99,000 693,000
Gross profit 112,000
Operating expenses:
Variable selling & administrative 14,000
Fixed selling and administrative 38,000
Total operating expenses 52,000
Net income (loss) 60,000
Explanation:
a) Data and Calculations:
Beginning inventory (cases) 0
Cases produced 8,000
Cases sold 7,000
Ending inventory (cases) 1,000 (8,000 - 7,000)
Sales price per case $ 115
Direct materials per case $ 25
Direct labor per case $ 40
Variable manufacturing overhead per case $ 10
Total fixed manufacturing overhead $ 192,000
Variable selling and administrative cost per case $ 2
Fixed selling and administrative cost $ 38,000
Variable costs:
Direct materials per case $ 25
Direct labor per case $ 40
Variable manufacturing
overhead per case $ 10
Total variable cost per case $ 75
Total variable costs = $600,000 ($75 * 8,000)
Ending cost of
1. The manager of a restaurant found that the cost to produce 100 cups of coffee is $11.02, while the cost to produce 400 cups is $40.12. Assume the cost is C(x)is a linear function of x, the number of cups produced a. Find the formula for C(x) b. What is the fixed cost c. Find the total cost of producing 1000 cups d. Find the total cost of producing 1001 cups e. What is the marginal cost of any cup and what does this mean to the manager
Answer:
a. C(x) = 0.097x + 1.32
b. Fixed cost = $1.32
c. the total cost of producing 1000 cups is $98.32.
d. The total cost of producing 1001 cups is $98.417.
e. The marginal cost of any cup is $0.097. It means to produce one additional cup of coffee, the manager has to spend $0.097.
Explanation:
a. Find a formula for C(x)
Slope = (High cost - Low cost) / (High units - Low units) = (40.12 - 11.02) / (400 - 100) = 29.10/300 = 0.097
Using the equation form:
y = bx + a .......................... (1)
Where, using the high cost and high units:
y = cost = C(x) = $40.12
b = Slope = 0.097
x = units = 400
a = Fixed cost = ?
Substituting the values into equation (1) and solve for a, we have:
40.12 = (0.097 * 400) + a
40.12 = 38.80 + a
a = 40.12 - 38.80
a = 1.32
Therefore, we have:
C(x) = 0.097x + 1.32
b. What is the fixed cost?
From part a above, we have:
a = Fixed cost = $1.32
c. Find the total cost of producing 1000 cups
This implies that x = 1000
Substituting x = 1000 into the cost function C(x) = 0.097x + 1.32, we have:
C(1000) = (0.097 * 1000) + 1.32 = $98.32
Therefore, the total cost of producing 1000 cups is $98.32
d. Find the total cost of producing 1001
This implies that x = 1001
Substituting x = 1001 into the cost function C(x) = 0.097x + 1.32, we have:
C(1001) = (0.097 * 1001) + 1.32 = $98.417
Therefore, the total cost of producing 1001 cups is $98.417
e. What is the marginal cost of any cup and what does this mean to the manager.
The marginal cost of any cup is $0.097.
The meaning of the marginal cost to the manager is that to produce one additional cup of coffee, he has to spend $0.097.
Consider the case of Bogdan Enterprises:
At the present time, Bogdan Enterprises does not have any preferred stock outstanding but is looking to include preferred stock in its capital structure in the future. Bogdan has found some institutional investors that are willing to purchase its preferred stock issue provided that it pays a perpetual dividend of $10 per share. If the investors pay $110.22 per share for their investment, then Bogdan's cost of preferred stock (rounded to four decimal places) will be:________.
a. 8.6165%
b. 9.0700%
c. 8.163090
d. 9.5235%
Answer:
b. 9.0700
Explanation:
Calculation to determine Bogdan's cost of preferred stock will be:
Using this formula
Cost of preferred stock = Annual dividend / Current price
Let plug in the formula
Cost of preferred stock = $10.00 / $110.22
Cost of preferred stock = 0.0907*100
Cost of preferred stock = 9.0700%
Therefore Bogdan's cost of preferred stock will be:9.0700%
Read the excerpt from The Federal Farmer.
Instead of being thirteen republics, under a federal head, [the Federalists’ plan] is clearly designed to make us one [unified] government. . . . Whether such a change can ever be [made] in any manner; whether it can be [made] without convulsions and civil wars; whether such a change will not totally destroy the liberties of this country—time only can determine.
–The Federal Farmer
What best summarizes the point of view the excerpt expresses?
Under one unified government, people will be robbed of their freedoms.
The Federalists prefer thirteen republics to one unified government.
One unified government probably will not lead to disruptions and civil wars.
Time will tell if a unified government can be a success or a failure.
Answer:
D. Time will tell if a unified government can be a success or a failure.
Explain
Just took the test, trust me <3
Southern Atlantic Distributors began operations in January 2021 and purchased a delivery truck for $40,000. Southern Atlantic plans to use straight-line depreciation over a four-year expected useful life for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2021, 30% in 2022, and 20% in 2023. Pretax accounting income for 2021 was $300,000, which includes interest revenue of $40,000 from municipal governmental bonds. The enacted tax rate is 25%.
Assuming no differences between accounting income and taxable income other than those described above:
Required:
What Southern Atlantic's 2021 net income?
Answer:
1. Dr Income tax expense $43,000
Cr Deferred tax liability $2,500
Cr Income tax payable $40,500
2. $157,000
Explanation:
1. Preparation of the Journal entry to record income taxes in 2021
First step is to record income taxes in 2021
TAX RATE % TAX $ RECORDED AS
Pre-tax accounting income $200,000
Less Permanent difference ($28,000)
Income subject to Taxation
$172,000 ×25% $43,000 Income tax expense
Less Temporary difference
($10,000) ×25% - $2,500 Deferred tax liability
Income taxable in current year
$162,000 ×25% $40,500 Income tax payable
Calculation for Temporary difference
Depreciation in 2021 as per taxation=$40,000×50%
Depreciation in 2021 as per taxation=$20,000
Depreciation as per straight line=$40,000/4
Depreciation as per straight line=$10,000
Using this formula to calculate the Temporary difference
Temporary difference=Depreciation as per straight line-Depreciation in 2021 as per taxation
Let plug in the formula
Temporary difference=$20,000-$10,000
Temporary difference=$10,000
Preparation of Southern Atlantic Distributors JOURNAL ENTRY
Dr Income tax expense $43,000
Cr Deferred tax liability $2,500
Cr Income tax payable $40,500
(Being to record income tax expense)
2. Calculation for Southern Atlantic Distributors Net income
Income before income taxes $200,000
Less Income tax expense
Deferred tax liability ($2,500)
Income tax payable ($40,500)
Net income $157,000
($200,000-$2,500-$40,500)
Therefore 2021 Net income is $157,000
hope this help
Joe is a self-employed electrician who operates his business on the accrual method. This year Joe purchased a shop for his business, and for the first time at year-end he received a bill for $4,500 of property taxes on his shop. Joe didn't pay the taxes until after year-end but prior to filing his tax return. Which of the following is a true statement?
a. If he elects to treat the taxes as a recurring item, Joe can accrue and deduct $4,500 of taxes on the shop this year.
b. The taxes are a payment liability.
c. The taxes would not be deductible if Joe's business was on the cash method.
d. Unless Joe makes an election, the taxes are not deductible this year.
e. All of the choices are true.
Answer:
Jeo (Self-employed Electrician)
The true statement is:
c. The taxes would not be deductible if Joe's business was on the cash method.
Explanation:
Since Joe did not pay the property taxes this year, it will not be deductible if he were on the cash method. But the property taxes of $4,500 will be deductible because Joe operates on the accrual method. The difference between the cash and accrual methods is that using the cash method, Joe's business expenses are recognized when they are paid. But with an accrual method, Joe's business expenses are recognized when incurred and not when paid is made.
Assume you sell for $100,000 a 10 percent ownership stake in a future payment one year from now of $1.5 million. A. What are you saying about the implied return for the 10 percent owner
Explanation:
zoo M id - 9038735228 pwd -97cEeT only for Interested girls
The implied return which is the rate of return will be 50%.
Based on the information given, the dollar return will be:
= $1,500,000 × 10%
= $1,500,000 × 0.1
= $150,000.
The implied return will now be:
= ($150000 - $100000) / $100000 × 100
= 50000/100000 × 100
= 0.5 × 100
= 50%
Therefore, the implied return is 50%.
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TB MC Qu. 01-134 Mustang Corporation reports... Mustang Corporation reports the following for the month of April: Finished goods inventory, April 1$30,200 Finished goods inventory, April 30 24,600 Total cost of goods manufactured 114,500 The cost of goods sold for April is: Multiple Choice $169,300. $108,900. $59,700. $120,100.
Answer:
COGS= $120,100
Explanation:
Giving the following information:
Finished goods inventory, April 1$30,200
Finished goods inventory, April 30 24,600
Total cost of goods manufactured 114,500
To calculate the COGS, we need to use the following formula:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 30,200 + 114,500 - 24,600
COGS= $120,100
Journalize the following transactions in the accounts of Arizona Interiors Company, a Restaurant Supply Company that uses the allowance method of accounting for uncollectible receivables:
May 1. Sold merchandise on account to Taiwan Palace Co., $13,400. The cost of the merchandise sold was $9,600.
Aug. 30. Received $2,800 from Taiwan Palace Co. and wrote off the remainder owed on the sale of May 1 as uncollectible.
Dec. 8. Reinstated the account of Taiwan Palace Co. that had been written off on August 30 and received $10,600 cash in full payment.
Answer:
May 1
Dr Cost of merchandise sold $9,600
Cr Merchandise inventory $9,600
Aug. 30
Dr cash $2,800
Dr Allowance for doubtful accounts $10,600
Cr accounts receivable-peking palace co $13,400
Dec. 8
Dr Accounts receivable - peking palace co $10,600
Cr Allowance for doubtful accounts $10,600
Explanation:
Preparation of the journal entries in the accounts of Arizona Interiors Company
May 1
Dr Cost of merchandise sold $9,600
Cr Merchandise inventory $9,600
Aug. 30
Dr cash $2,800
Dr Allowance for doubtful accounts $10,600
($13,400-$2,800)
Cr accounts receivable-peking palace co $13,400
Dec. 8
Dr Accounts receivable - peking palace co $10,600
Cr Allowance for doubtful accounts $10,600
Fiona is a manager who believes in Theory Y of leadership. What does she assume about her employees according to this theory?
OA. Employees have to be reprimanded for bad ideas.
O B. Employees are self-motivated in their work.
O C. Employees need constant supervision.
OD. Employees are always ready to leave the company.
Answer:
OB. Employees are self-motivated in their work.
Explanation:
PLATO
Employees are self-motivated in their work Employees are self-motivated in their work.
What is Theory Y of leadership?Theory Y of leadership is the theory in which a manager assumes that they have self-motivated employees in the company.
In this, manager gives them responsibility and allowed them to take their own decision for the company. They also make initiatives something by their own.
Thus, option B is correct.
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The following information is available from the accounting records of Manahan Co. for the year ended December 31, 2019: Net cash provided by financing activities $ 116,000 Dividends paid 18,300 Loss from discontinued operations, net of tax savings of $38,133 114,400 Income tax expense 25,568 Other selling expenses 14,600 Net sales 645,000 Advertising expense 47,600 Accounts receivable 58,400 Cost of goods sold 367,650 General and administrative expenses 142,100 Required: a. Calculate the operating income for Manahan Co. for the year ended December 31, 2019.
Answer:
See below
Explanation:
a. Operating income statement for the year ended December 31, 2019
Net sales $645,000
Less: Cost of goods sold ($367,650)
Gross profit $277,350
Less: Expenses
Selling, general, administrative expenses ($142,100)
Other selling expenses ($14,600)
Advertising expense ($47,600)
Operating income $73,050
b.
Operating income $73,050
Less:
Income tax expense ($25,568)
Income from continuing operations before taxes $47,482
Loss from discontinued operations, net of savings $38,133 ($14,400)
Net income $33,082
A firm currently sells $1,500,000 annually of an expensive product line. That firm is considering a similar, less expensive, discount line, and projects sales of $300,000. The discount line is expected to reduce sales of the expensive product line to $1,320,000. What is the incremental revenue associated with the discount product line?
Answer:
$120,000
Explanation:
Calculation to determine the incremental revenue associated with the discount product line
First step is to calculate the lost revenue due to erosion
Lost revenue due to erosion=$1,500,000-$1,320,000
Lost revenue due to erosion=$180,000
Now let calculate the Incremental revenue
Using this formula
Incremental revenue=Discount line revenue -Lost revenue due to erosion
Let plug in the formula
Incremental revenue=$300,000-$180,000
Incremental revenue = $120,000
Therefore the incremental revenue associated with the discount product line is $120,000
g Suppose that the economy is producing at its potential level of output and full employment. An economic stimulus which includes increases in government spending will ____________. Select the correct answer below: cause stagflation raise inflationary pressures cause a permanent increase in output not have any effect, as the economy is already at maximum productione
Answer:
Suppose that the economy is producing at its potential level of output and full employment. An economic stimulus which includes increases in government spending will ____________.
raise inflationary pressures.
Explanation:
Inflationary pressures increase when an economy has reached its full employment and potential GDP levels with the introduction of some economic stimulus, through increased government spending, for example. This situation will cause demand and prices to increase. The money available will be too much for the goods available. While producers try to increase production, they cannot exceed their capacity since they have already attained full capacity.
There are two routes for driving from A to B. One is freeway, and the other consists of local roads. The benefit of using the freeway is constant and equal to 3.6, irrespective of the number of people using it. Local roads get congested when too many people use this alternative, but if not enough peoople use it, the few isolated drivers run the risk of becoming victims of crimes. Suppose that when a fraction of x of the population is using the local roads, the benefit of this mode to each driver is given by:
1 + 8x – 9x²
Required:
a. Draw a graph showing the benefits of the two driving routes as functions of x, regarding x as a continuous variable between 0 and 1.
b. Identify all possible equilibrium traffic patterns from your graph in part (a). Which equilibria are stable? Which ones are unstable? Explain.
c. What value of x maximizes the total benefit to the whole population?
Answer:
a) attached below
b) stable equilibria = x = 0.1 , x = 0.8
unstable equilibria = other value except 0.1 , 0.8
c) 0.5 , 0.6
Explanation:
Benefit of using the local roads = 1 + 8x - 9x^2
Benefit of using the free way = 3.6
a) Attached below is the required graph
b) Determine The possible equilibrium traffic patterns from the graph
stable equilibria : x = 0.1 , x = 0.8 ( this id because at these given value the benefits of using either routes is equal )
unstable equilibria : every other value of X except 0.1 and 0.8
c) Determine the value of x that maximizes the total benefit to the population
The value of X that maximizes the total benefit to the population = 0.5 and 0.6
attached below is the detailed solution
A candy store has fixed expenses (rent, utilities, etc.) that total to $40,000/year. The company also has two full time employees with salaries of $20,000/year. There is also a part time employee who earns $12,000 per year, with the potential to earn a $4,000 bonus if sales exceed $100,000 within the year. If the candy can be made for $5/box and is sold for $8/box, what is the minimum number of boxes that must be sold each year to break even?
Answer:
Break-even point in units= 25,333.33 = 25,333
Explanation:
Giving the following information:
Total fixed cost= 40,000 + 20,000 + 12,000 + 4,000= $76,000
Selling price per unit= $8
Uniitary variable cost= $5
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 76,000 / (8 - 5)
Break-even point in units= 25,333.33 = 25,333
Simplify what the mass of a 450 centimeter3 block of silicon if the density of silicon is 2.336 grams/centimeter3
Answer:
asdasd
Explanation:
adsasd ada sdasdasd ada dasdadastsdfs tstsdf esf
Jenks Company developed the following information about its inventories in applying the lower-of-cost-or-net-realizable-value (LCNRV) basis in valuing inventories: Product Cost NRV A $115,000 $125,000 B $95,000 $75,000 C $175,000 $180,000 After Jenks applies the LCNRV rule, the value of the inventory reported on the balance sheet would be:
Answer:
$365,000
Explanation:
The computation of the inventory reported on the balance sheet is shown below:
Product Cost NRV Lower cost
A $115,000 $125,000 $115,000
B $95,000 $75,000 $75,000
C $175,000 $180,000 $175,000
Total $365,000
Describing Tasks for Mechanical Engineers
Click this link to view O*NET's Tasks section for Mechanical Engineers. Note that common tasks are listed toward
the top, and less common tasks are listed toward the bottom. According to O*NET, what are some common tasks
Mechanical Engineers perform? Check all that apply.
O assisting drafters in developing the structural design of products
researching and designing mechanical products, equipment, systems, and processes
O observing and recording information about the movement of planets
reading and interpreting blueprints and technical drawings
O examining samples of plants and animals under microscopes
O analyzing the political history of a nation
Answer:
A,B,D
Explanation:
Answer:
A. designing, implementing, maintaining, or improving electrical instruments and equipment
C. preparing technical drawings
D. operating computer-assisted engineering or design software
Groundcover, Inc. had never had a treasury stock transaction prior to 2016. It experienced the following treasury stock transactions during 2016: 4/1/2016:Reacquired 1,000 shares of its own $5 par common stock, originally sold at $12 a share, for $10 a share. This was the first time that Groundcover had reacquired its own stock. 4/8/2016:Reissued 400 shares at $8 a share. 5/2/2016:Reissued 500 shares at $13 a share. 5/10/2016:Retired the remaining 100 shares. Assume the cost method is used. Refer to Exhibit 15-9. The entry to record the reissuance of 400 shares on 4/8/2016 would include a
Answer:
Groundcover, Inc.
Journal Entry to record the reissuance of 400 shares on April 8, 2016 would include (using the cost method):
Apr. 8 Debit Cash $3,200
Credit Treasury Stock $3,200
To record the reissuance of 400 shares at $8 a share.
Explanation:
a) Data and Analysis:
Apr. 1 Treasury Stock $10,000 Cash $10,000
Apr. 8 Cash $3,200 Treasury Stock $3,200
May 2 Cash $6,500 Treasury Stock $6,500
b) There are two methods for recording Treasury Stock transactions. One is the cost method. This method ignores the par value and the difference between the par value and the cost. It uses the cost to record the repurchase and resale of treasury shares. The second method is the par value method. This method differentiates the par value and cost for both repurchase and resale of treasury stock shares. The differences are recorded in the Additional Paid-in Capital account so that only the par values are recorded in the Treasury account.
Sheila, a widow, makes out a will leaving one-half of her property equally to two of her adult children, Mark and Paula. The other one-half of her peoperty she is leaving to her neighbor Ned. Her third adult child, Elmo was left nothing. Sometime later a court declares Sheila mentally incompetent. Sheila dies 6 months after that. Mark, paula and Elmo now seek to invalidate the will.
1. What legal arguments may be used to invalidate the will?
A. Sheila was unable to understand what she was signing when she signed the will.
B. Sheila is not permitted to disinherit any of her children.
C. Either of these arguments are legally valid.
D. neither of these arguments are legally valid.
2. If the will is deemed to be invalid how would Sheila's estate be distributed?
a. one third each to Elmo, Mark and Paula.
b. 50% to Elmo. 25% each to Mark and Paula.
c. 25% to Ned, Mark Paula and Elmo.
d. 100% to the government.
Answer:
1. A.
2. a.
Explanation:
1. In this scenario, the only legal argument that they can make would be that Sheila was unable to understand what she was signing when she signed the will. Even though the bar for mental incompetence when dealing with a Will is extremely low, they can still dispute the will under this claim. Mainly due to the fact that she was declared Mentally Incompetent by a court judge, thus giving the claim much more validity and possibility of being accepted by the court.
2. If the court accepts this claim then the entirety of Sheila's estate will be distributed evenly among her next of kin, which in this case would be her children. Therefore, the estate will be divided evenly, one third each to Elmo, Mark and Paula, who are all of Sheila's adult children.
The management of Lanzilotta Corporation is considering a project that would require an investment of $280,000 and would last for 6 years. The annual net operating income from the project would be $114,000, which includes depreciation of $31,000. The scrap value of the project's assets at the end of the project would be $25,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.)
Answer:
3.37 years
Explanation:
Calculation to determine what The payback period of the project is closest to
First step is to calculate the Net Cash inflow for the year
Net Cash inflow for the year =$114,000-$31,000
Net Cash inflow for the year =83,000
Now let calculate the Payback period
Using this formula
Payback period=investment/Net Cash inflow for the year
Let plug in the formula
Payback period=$280,000/83,000
Payback period=3.37 years
Therefore The payback period of the project is closest to 3.37 years
Toshovo Computer owns four production plants at which computer workstations are produced. The company can sell up to 40,000 computers per year at a price of $1500 per computer. For each plant, the production capacity, the production cost per computer, and the fixed cost of operating a plant for a year are given in the file P06_56.xlsx . Determine how Toshovo can maximize its yearly profit from computer production.
Question Completion:
Toshovo computer data
Plant 1 Plant 2 Plant 3 Plant 4
Plant fixed cost $6,000,000 $5,000,000 $3,000,000 $2,000,000
Cost per computer $1,000 $900 $800 $750
Capacity 15,000 10,000 12,000 8,000
Answer:
Toshovo Computer
Toshovo can maximize its yearly profits from computer production by producing at full capacity at Plants 4, 3, and 2. At Plant 1, it should produce only 10,000.
It can also decide to double its capacity at Plants 4 and 3 and eliminate its Plants 1 and 2 with high fixed costs.
Explanation:
a) Data and Calculations:
Estimated number of computers per year = 40,000
Price per computer = $1,500
Toshovo computer data
Plant 1 Plant 2 Plant 3 Plant 4
Plant fixed cost $6,000,000 $5,000,000 $3,000,000 $2,000,000
Cost per computer $1,000 $900 $800 $750
Fixed cost per unit 400 500 250 250
Total costs per unit $1,400 $1,400 $1,050 $1,000
Selling price per unit $1,500 $1,500 $1,500 $1,500
Profit per unit $100 $100 $450 $500
Capacity 15,000 10,000 12,000 8,000
Plants Units to be Profit
Produced Per Unit
Plant 1 8,000 $500
Plant 2 12,000 $450
Plant 3 10,000 $100
Plant 4 10,000 -$100
Total produced 40,000
Examine Alexa’s skill in ordering drinks from Starbucks
Answer:
Just say, "Alexa, open Starbucks." Alexa will then tell you what your usual order is, how much it costs and for which store the order will be placed. You will then need to confirm or cancel the order. You can also say things like: "Alexa, tell Starbucks to start my usual order."
Explanation:
I hope this helps.
Jason's mother would like him to go to college, so in June he enrolls at the local university. He also quits his job and tells his mother his plans to take classes. His mother says, "I'm so happy that you are going to college that I want to pay for your books." Jason then sends her a bill for $485. Jasonâs mother's promise is:
a. unenforceable, because it is a unilateral contract.
b. unenforceable, because his mother is not getting any legal benefit for her promise to pay for his books.
c. enforceable, because Jason is giving up the right to do something else.
d. enforceable, because Jason returned to college.
Answer:
b. unenforceable, because his mother is not getting any legal benefit for her promise to pay for his books.
Explanation:
Note, Jason's mother only made a declaration or "promise" to give without any benefit derived from the actions of the other party (Jason).
Her statement in no way shows any legal benefit or considered been offered by the other party in return for payment.
Remember too that Jason's mother wholeheartedly or voluntarily offered to pay for his books because she was happy, and in this same way she can decide not to do so because no legal benefit was received in return.
Answer:
B. unenforceable, because his mother is not getting any legal benefit for her promise to pay for his books.
Explanation:
Hope this helps
Using the free cash flow valuation model to price an IPO - Assume that you have an opportunity to buy the stock of CoolTech, Inc., an IPO being offered for $12.50 per share. Although you are very much interested in owning the company, you are concerned about whether it is fairly priced. To determine the value of the shares, you have decided to apply the free cash flow valuation model to the firm's financial data that you've developed from a variety of data sources. The key values you have compiled are summarized in the following table.
Free cash flow
Year (t) FCFt Other data
2016 $ 700,000 Growth rate of FCF, beyond 2019 to infinity 5 2%
2017 800,000 Weighted average cost of capital 5 8%
2018 950,000 Market value of all debt 5 $2,700,000
2019 1,100,000 Market value of preferred stock 5 $1,000,000
Number of shares of common stock outstanding 5 1,100,000
a. Use the free cash flow valuation model to estimate CoolTech's common stock value per share.
b. Judging on the basis of your finding in part a and the stock's offering price, should you buy the stock?
c. On further analysis, you find that the growth rate in FCF beyond 2019 will be 3% rather than 2%. What effect would this finding have on your responses in parts a and b?
Answer:
a. Estimated CoolTech's common stock value per share = $11.77
b. Since the Stock's offering price of $12.50 is higher than the estimated CoolTech's common stock value per share of $11.77, you should NOT buy the stock because it is currently overvalued.
c. Since the Stock's offering price of $12.50 is lower than the estimated CoolTech's common stock value per share of $14.41, you should buy the stock because it is currently undervalued.
Explanation:
Note: The data in this question are merged together and contain some errors. See the attached pdf for the complete sorted correct question.
The explanation of the answers is now given as follows:
a. Use the free cash flow valuation model to estimate CoolTech's common stock value per share.
Note: See part a of the attached excel file for the estimation of CoolTech's common stock value per share (in bold red color).
From the attached excel file, we have:
Estimated CoolTech's common stock value per share = $11.77
b. Judging on the basis of your finding in part a and the stock's offering price, should you buy the stock?
Stock's offering price = $12.50
Estimated CoolTech's common stock value per share = $11.77
Since the Stock's offering price of $12.50 is higher than the estimated CoolTech's common stock value per share of $11.77, you should NOT buy the stock because it is currently overvalued.
c. On further analysis, you find that the growth rate in FCF beyond 2019 will be 3% rather than 2%. What effect would this finding have on your responses in parts a and b?
Note: See part b of the attached excel file for the estimation of CoolTech's common stock value per share (in bold red color).
Stock's offering price = $12.50
From the attached excel file, we have:
Estimated CoolTech's common stock value per share = $14.41
Since the Stock's offering price of $12.50 is lower than the estimated CoolTech's common stock value per share of $14.41, you should buy the stock because it is currently undervalued.
Question 4 of 10 How does the Consumer Credit Protection Act require lenders to be honest in their dealings? O A. It requires borrowers under the age of 18 to have a co-signer. B. It was the first of all statues restricting lending institutions. C. It says the APR not exceed the monthly interest rate for all loans. O D. It forces lenders to disclose all charges to the borrower. SUBMIT
Answer:
The answer is D ( It forces lenders to disclose all charges to the borrower.)
Suppose RCS Enterprises had an additional $500,000 of depreciation expense in 2016, then the dollar impact of this change in depreciation expense on earnings (E), cashflow from operating activities (OCF) and on end-of-year cash balance (CB) will be, respectively:
a. E increase $395,000; OCF increase $105,000 and CB increase $105,000
b. E decrease $395,000, OCF decrease $105,000 and CB decrease $105,000
c. E decrease $395,000, OCF increase $105,000 and CB increase $105,000
d. E increase $395,000, OCF decrease $105,000 and CB increase $105,000
Answer:
c. E decrease $395,000, OCF increase $105,000 and CB increase $105,000
Explanation:
Since there is an additional depreciation expense of $500,000 in the year 2016 so it would reduce the earnings also the depreciation expense would be added back in the operating section of the cash flow statement. So it incresae the operating cash flow also it would increase the year end cash balance
Therefore the option c is correct
Classic Limo, Inc., provides limousine service to Tri-Cities airport. The price of the service is fixed at a flat rate for each trip and most costs of the providing the service are stable for each trip. Marc Pence, the owner, budgets income by estimating two factors that fluctuate with the economy: the fuel cost associated with each trip and the number of customers who will take trips. Looking at next year, Marc develops the following estimates of contribution margin (price less variable cost of the trip, including fuel) and for the estimated number of customers. Although Marc understands that it is not strictly true, he assumes that the cost of fuel and the number of customers are independent. In addition to the costs of a ride, Marc estimates that other service costs are $50,000 plus $5 for each customer (ride) in excess of 6,000 rides. Annual administrative and marketing costs are estimated to be $25,000 plus 10 percent of the contribution margin.
Required:
Using the above information, construct an Excel spreadsheet to prepare an analysis of the possible operating income for Classic Limo, Inc., similar to that in Exhibit 13.15 on page 558 of the textbook. You must submit this part of the assignment as an Excel file and utilize formulas for all calculations. You will be graded on the answers provided, formulas/calculations, and presentation. If you would like feedback on this part of the assignment before submitting, please email your spreadsheet to me at least 48 hours prior to the due date.
Answer:
Poor $(14,250)
Fair $26,250
Excellent $87,000
Poor $6,000
Fair $60,000
Excellent $141,000
Poor $44,250
Fair $138,750
Excellent $280,500
Explanation:
Prepare of an analysis of the possible operating income for Classic Limo, Inc.,
Contribution MarginA Numbers of CustomersB Total Contribution MarginC=A*B Service costsD Marketing & AdminE=25,000+(C*10%) Operating Profit / (Loss)F=C-D-E
Poor $15* 4,500= $67,500- $50,000- $31,750 =$(14,250)
Fair $25 *4,500= $112,500 -$50,000 -$36,250 =$26,250
Excellent $40* 4,500=$180,000-$50,000-$43,000=$87,000
Poor $15*6,000=$90,000-$50,000-$34,000=$6,000
Fair $25*6,000=$150,000-$50,000-$40,000=$60,000
Excellent $40*6,000=$240,000-$50,000-$49,000=$141,000
Poor $15*10,500=$157,500-$72,500-$40,750=$44,250
Fair $25*10,500=$262,500-$72,500-$51,250=$138,750
Excellent $40*10,500=$420,000-$72,500-$67,000=$280,500
CALCULATION FOR SERVICE COST
Service costs=$50,000+($10,500-$6,000)*5
Service costs=$50,000+($4,500*5)
Service costs=$50,000+$22,500
Service costs=$72,500
CALCULATION FOR Marketing & AdminE=25,000+(C*10%)
$25,000+(Total Contribution margin *10%)
Poor $25,000+($67,500*10%)=$31,750
Fair $25,000+($112,500*10%)=$36,250
Excellent$25,000+($180,000*10%)=$43,000
Poor $25,000+($90,000*10%)=$34,000
Fair $25,000+($150,000*10%)=$40,000
Excellent $25,000+($240,000*10%)=$49,000
Poor $25,000+($157,500*10%)=$40,750
Fair $25,000+($262,500+10%)=$51,250
Excellent $25,000+($420,000*10%)=$67,000
Therefore the possible operating income for Classic Limo, Inc.,are
Poor $(14,250)
Fair $26,250
Excellent $87,000
Poor $6,000
Fair $60,000
Excellent $141,000
Poor $44,250
Fair $138,750
Excellent $280,500
Can someone help me please
Answer: $1,955
Explanation:
First remove the deductible of $800 from the amount:
= 3,100 - 800
= $2,300
The Insurance company will then pay 85% of this amount:
= 85% * 2,300
= $1,955