Answer:
FV = $9745.02838 rounded off to $9745.03
Explanation:
To calculate the amount of money in account after five years, we will use the formula for future value of cash flow. The formula is as follows,
FV = Present value * (1+i)^t
Where,
i is the annual interest ratet is the time in yearsAs we have annual interest rate of 8.1% but it is compounded daily, we will use 8.1%/365 in our formula to get daily rates. Move over as the compounding is done daily, we will take 365*5 days instead of 5 years.
So,
FV = 6500 * [1+(8.1%/365)]^(5*365)
FV = $9745.02838 rounded off to $9745.03
A company that maintains its books and records under IFRS is applying the revaluation model to a certain fixed asset. In previous years, the value of the asset had declined. In the current year, however, the asset has appreciated in value by an amount that is greater than the cumulative decrease that had occurred previously. How will the company report the asset on the year-end balance sheet for the current year
Answer: See explanation
Explanation:
The revaluation model is when the fixed asset of a business or an organization is carried at its revalued amount.
Based on the question asked, the asset will be valued based on the new fair value with regards to the increase. It should be noted that the remainder recognized will then be recognized in the other comprehensive income.
Which type of layout features departments or other functional groupings in which similar activities are performed
Answer:
Process-oriented.
Explanation:
A functional (departmental) organizational structure is a type of structure used to organize staffs by dividing them into various departments based on their skill set, roles or functions and knowledge.
These departments which are vertically structured may include, finance, IT, sales and marketing, research and development, customer service etc. Also, the various departments are headed by a functional manager who are saddled with the responsibility of overseeing, managing and reporting to the executive management.
Similarly, a type of layout in the manufacturing process that features departments or other functional groupings in which similar activities are performed is generally referred to as being process-oriented.
One of the main advantages of a process-oriented layout is that it mitigates or reduces difficulties associated with material flow variability for a product.
A constant return of scale indicates that a firm is producing its ______ at a ______ ATC, which also shows that the firm is _______.
Answer:
The question is incomplete, the options are missing. The options are the following:
A) input, constant, lack of competitiveness
B) output, lower, doing well
C) output, constant, doing well
D) output, higher, doing well
E) input, lower, lack of competitiveness
And the correct answer is the option C: output, constant, doing well.
Explanation:
To begin with, in the microeconomics theory when it comes to the term of "constant return of scale" it refers to the situation in where a company is producing its output at a constant average total cost indicating that is doing well due to the fact that the costs are still covered by the earings that the company is having so that means that it could still keep on working for the next period. The term of return of scale focus on the changes donde in the inputs and how that affects the outputs and the earning regarding that base.
On January 1, 2022, Concord Company issued $2,800,000 face value, 7%, 10-year bonds at $3,006,070. This price resulted in a 6% effective-interest rate on the bonds. Concord uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on each January 1.
(a) Prepare the journal entries to record the following transactions.
i. The issuance of the bonds on January 1, 2022.
ii. Accrual of interest and amortization of the premium on December 31, 2022.
iii. The payment of interest on January 1, 2023.
iv. Accrual of interest and amortization of the premium on December 31, 2023.
Answer:
Concord Company
Journal Entries:
i. The issuance of the bonds on January 1, 2022:
Debit Cash $3,006,070
Credit Bonds Payable $2,800,000
Credit Bonds Premium $206,070
To record the issuance of bonds at premium.
ii. Accrual of interest and amortization of the premium on December 31, 2022:
Debit Interest expense $180,364
Debit Premium Amortization $15,636
Credit Interest Payable $196,000
To accrue interest and record premium amortization.
iii. The payment of interest on January 1, 2023:
Debit Interest Payable $196,000
Credit Cash $196,000
To record payment of interest.
iv. Accrual of interest and amortization of the premium on December 31, 2023:
Debit Interest expense $179,426
Debit Premium Amortization $16,574
Credit Interest Payable $196,000
To accrue interest and record premium amortization.
Explanation:
a) Data and Calculations:
January 1, 2022:
Face value of bonds issued = $2,800,000
Proceeds from the bonds issue 3,006,070
Bonds Premium = $206,070
Coupon interest rate = 7%
Effective interest rate = 6%
Bonds maturity period = 10 years
Payment of annual interest = each January 1
December 31, 2022:
Interest expense = $180,364 ($3,006,070 * 6%)
Cash payment = $196,000 ($2,800,000 * 7%)
Amortization of premium $15,636 ($196,000 - $180,364)
Bonds' fair value = $2,990,434 ($3,006,070 - $15,636)
December 31, 2023:
Interest expense = $179,426 ($2,990,434 * 6%)
Cash payment = $196,000 ($2,800,000 * 7%)
Amortization of premium $16,574 ($196,000 - $179,426)
Bonds' fair value = $2,973,860 ($2,990,434 - $16,574)
Analysis:
i. The issuance of the bonds on January 1, 2022:
Cash $3,006,070 Bonds Payable $2,800,000 Bonds Premium $206,070
ii. Accrual of interest and amortization of the premium on December 31, 2022:
Interest expense $180,364 Premium Amortization $15,636 Interest Payable $196,000
iii. The payment of interest on January 1, 2023:
Interest Payable $196,000 Cash $196,000
iv. Accrual of interest and amortization of the premium on December 31, 2023:
Interest expense $179,426 Premium Amortization $16,574 Interest Payable $196,000
Explain how the GDP and the interest rate are related to the transactions demand and asset demand for money.
Answer:
Transaction demand rises as income or GDp rises and falls as income or DP falls. Also high interest rate causes more to be left as asset, thereby reducing money demand
Explanation:
1. Asset demand for money is money that is kept aside for a person holding it to earn interest on. A high interest rate on money asset reduces the demand for money. This increased rate of interest is the opportunity cost of having money as assets. It has a negative relationship with interest rate of an economy.
2. Transaction money is that which is used for the day to day expenditure. This has a positive relationship with GDP. It increases as income or GDP increases and falls as it falls.
Assume that you invest 5 percent of your salary and receive the full 5 percent match from East Coast Yachts. What EAR do you earn from the match
Answer:
The EAR you earn from the match is 100%.
Explanation:
Since a full 5 percent match will be received if 5 percent of your salary is invested, this implies that 100% will be earned by you from the match up to 5%.
For example, if 5 percent of your salary that you put in is $200, the East Coast Yachts will match the $200. This indicates that effective annual return (EAR) earned by you from the match is 100%.
Therefore, the EAR you earn from the match is 100%.
Consider two firms producing smartphones. Firm A uses a highly automated robotics process, while Firm B uses human workers on an assembly line and pays overtime when there is heavy production demand. Firm A and B have a similar amount of financial leverage. Which firm will have a higher beta
Answer:
The firm that will have a higher beta is:
Firm B.
Explanation:
The question here is which firm is more volatile. Since they have a similar amount of financial leverage, Firm B which uses more human workers on its assembly line and pays overtime will appear to be more volatile than Firm A with a highly automated robotics process. Firm B faces risks of labor strikes and other vagaries associated with the use of more labor than the market.
McBurger, Inc., wants to redesign its kitchens to improve productivity and quality. Three designs, called designs K1, K2, and K3, are under consideration. No matter which design is used, daily production of sandwiches at a typical McBurger restaurant is for 500 sandwiches. A sandwich costs $1.20 to produce. Non-defective sandwiches sell, on the average, for $2.50 per sandwich. Defective sandwiches cannot be sold and are scrapped.
The goal is to choose a design that maximizes the expected profit at a typical restaurant over a 300-day period. Designs K1, K2, and K3 cost $100,000, $130,000, and $150,000, respectively. Under design K1, there is a .80 chance that 90 out of each 100 sandwiches are non-defective and a .20 chance that 70 out of each 100 sandwiches are non-defective. Under design K2, there is a .85 chance that 90 out of each 100 sandwiches are non-defective and a .15 chance that 75 out of each 100 sandwiches are non-defective. Under design K3, there is a .90 chance that 95 out of each 100 sandwiches are non-defective and a .10 chance that 80 out of each 100 sandwiches are non-defective.
The expected profit level of design K1 is $____.
The expected Profit leve of design K2 is___.The expected profit level of design k3 is___.
Answer:
McBurger, Inc.
The expected profit level of design K1 is $_42,500__.
The expected Profit level of design K2 is_19,063__.
The expected profit level of design k3 is_20,625__.
Explanation:
a) Data and Calculations:
Daily production units at a typical McBurger restaurant = 500 sandwiches
Yearly production units =150,000 (500 * 300)
Unit production cost of a sandwich = $1.20
Selling price of non-defective sandwich = $2.50
Design K1 Design K2 Design K3
Calculation of non-defective units:
0.80 * 90/100 * 150,000 108,000
0.20 * 70/100 * 150,000 21,000
0.85 * 90/100 * 150,000 114,750
0.15 * 75/100 * 150,000 16,875
0.90 * 95/100 * 150,000 128,250
0.10 * 80/100 * 150,000 12,000
129,000 131,625 140,250
Sales Revenue $322,500 $329,063 $350,625
Production cost (180,000) (180,000) (180,000)
Cost of design (100,000) (130,000) (150,000)
Expected profit $42,500 $19,063 $20,625
Sales revenue = Non-defective sandwiches * $2.50
Product cost = Production units * $1.20
Expected profit = Sales Revenue - (Product cost + Design cost)
Sales $3,400,000 $2,100,000 Contribution margin $1,500,000 $900,000 Divisional segment margin $1,000,000 $300,000 Net operating income last year for SegR-1882 Corporation was $550,000. In last year's income statement segmented by division, what were SegR-1882's total common fixed expenses
Answer: $750,000
Explanation:
Based on the information given, in last year's income statement segmented by division, SegR-1882's total common fixed expenses will be calculated thus:
Note that Net operating income = Total segment margin - Common fxed expenses
Therefore, Common fixed expense = Net operating income - Total segment margin
Common fixed expenses:
= $1,300,000 - $550,000
= $750,000
Therefore, common fixed expenses is $750,000
Note that total segment margin = $1,000,000 + $300,000 = $1,300,000
A mixed economic system incorporates aspects of both centralized command and control and a decentralized pricing mechanism. Does the United States have a mixed economic system? Explain your answer.
Answer: Yes. The United States has a mixed economic system.
Explanation:
A mixed economic system has the features of both capitalism and socialism. It consists of both the private enterprises as well as the public enterprises.
The United States has a mixed economic system. Most of the industries that can be found in the United States are privately owned while some are owned by the government. Also, the government regulates the private companies.
The private companies have some freedom which enables them to make profit but their activities are still checkmated by the government.
what is the positive impact of Commerce subject on our society?
Answer:
E-commerce facilitates the fundamental movement of goods from suppliers to customers. They offer an ideal commerce development to do digital business and improve the global presence. E-commerce has altered the workflow of the business
Bramble Corp. has the following costs when producing 100000 units: Variable costs $600000 Fixed costs 900000 An outside supplier is interested in producing the item for Bramble. If the item is produced outside, Bramble could use the released production facilities to make another item that would generate $200000 of net income. At what unit price would Bramble accept the outside supplier’s offer if Bramble wanted to increase net income by $140000?
Answer:
Bramble Corp.
Unit price at which Bramble would accept the outside supplier's offer
= $14.40
Explanation:
a) Data and Calculations;
Production capacity in units = 100,000
Variable costs = $600,000
Fixed costs = 900,000
Total costs = $1,500,000
Target net income 140,000
Total revenue = $1,640,000
Alternative income (200,000)
Differential revenue $1,440,000 ($1,640,000 - $200,000)
Unit price at which Bramble would accept the outside supplier's offer =
$14.40 ($1,440,000/100,000)
There are two reasons that an industry prefers self-regulation to government regulation: cost and flexibility. True False
Answer:
True.
Explanation:
In general, the vast majority of industrial entrepreneurs prefer self-regulation over government regulation. This is so due to two fundamental factors: on the one hand, the maintenance costs of the government regulatory system are paid for through taxes, which means that the higher the regulations, the higher the taxes that each company must pay, while the self-regulation should not spend. more money than that of the control systems, without allocating sums of money to the government; and on the other, flexibility, that is, the possibility of adapting the processes, systems and needs of each company to the necessary regulations, being able to optimize costs and processes.
A ________ is an example of a first-line manager.
Answer:
shift manager, I believe
Explanation:
office manager is an example of a first line manager
Which functions do investment companies perform for their investors? Check all that apply: Asset management Diversification and divisibility Investment advice Lower transaction costs Record keeping
Answer: All of the above
Explanation:
Investment companies such as mutual and closed end funds work to increase the investments of investors by providing superior asset management services. By investing in many different sectors, they give the investors diversification and divisibility benefits which reduce risk to the investor.
Because these investment companies invest for a lot of people, they are able to buy in bulk which lowers transaction costs per investor. They also have to keep records of all these transactions so they provide the benefit of record keeping as well.
The functions that can be attributed to investment companies to their investors are;
Asset management Diversification divisibility Investment advice Lower transaction costs Record keepinginvestment companies are those companies that are responsible management Diversification and divisibility Investment advice to their clients.
Therefore, all the provided options are correct.
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Ed is taking off from work for four hours this afternoon and going to a baseball game. The ticket to the game costs $25 and it costs $15 to park at the stadium. Ed earns $15 an hour at his job. Ed's opportunity cost of going to the ball game is: Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices $25. $100. $60. $50.
Answer: $100
Explanation:
Opportunity cost is the benefit that we forgo when another option is chosen thereby leaving out something else. Based on the information given, Ed's opportunity cost of going to the ball will be calculated as the addition of the income that's lost when he takes some time off from his work and the expenses that he incurs on the base ball game. This will be:
= ( 4 × $15) + $25 + $15
= $60 + $40
= $100
The opportunity cost is $100.
At its present level of operations, a small manufacturing firm has total variable costs equal to 75 percent of sales and total fixed costs equal to 15 percent of sales. Based on variable costing, of sales change by $1.00, income will change by
Answer:
$0.25
Explanation:
The change in operating income as a result of the change in sales by $1.00 is equivalent to the additional contribution margin, computed as follow;
Additional sales
$1
Less:
Additional Variable costs ($1 × 75%)
($0.75)
Increase in operating income
$0.25
The amount left over after subtracting variable costs is the contribution margin.
Here, the total fixed cost remains unchanged hence will not be affected due to increase in sales. The fixed costs remains at 15% of sales at the present level of operations. The fixed costs as a percentage of sales will be some value less than 15% after the $1.00 increase in sales value.
The amount of the change in the operating income if sales change by $1 is $0.10.
First step is to calculate the total cost
Total cost= (Total variable costs × Sales) + (Total fixed costs × Sales)
Total cost=(75%×$1.00) + (15%×$1.00)
Total cost=$0.75+$0.15
Total cost=$0.90
Second step is to calculate the change in operating income
Change in operating income = Sales - Total cost
Change in operating income =$1.00-$0.90
Change in operating income =$0.10
Inconclusion the amount of the change in the operating income if sales change by $1 is $0.10.
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Helix Company produces several products in its factory, including a karate robe. The company uses a standard cost system to assist in the control of costs. According to the standards that have been set for the robes, the factory should work 780 direct labor-hours each month and produce 3,900 robes. The standard costs associated with this level of production are as follows:
Total Per Unit of Product
Direct materials $ 78,624 $ 20.16
Direct labor $ 12,870 3.30
Variable manufacturing overhead
(based on direct labor-hours $ 2,340 0.60
$ 24.06
During April, the factory worked only 755 direct labor-hours and produced 4,000 robes. The following actual costs were recorded during the month:
Total Per Unit of Product
Direct materials (14,000 yards) $ 84,000 $ 21.00
Direct labor $ 14,000 3.50
Variable manufacturing overhead $ 7,200 1.80
$ 26.30
At standard, each robe should require 3.2 yards of material. All of the materials purchased during the month were used in production.
Required:
1. Compute the materials price and quantity variances for April: (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)
Materials price variance $ (Click to select)UFNone
Materials quantity variance $ (Click to select)NoneFU
2. Compute the labor rate and efficiency variances for April: (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Do not round your intermediate calculations. Round your final answers to the nearest dollar.)
Labor rate variance $ (Click to select)NoneFU
Labor efficiency variance $ (Click to select)UNoneF
3. Compute the variable manufacturing overhead rate and efficiency variances for April: (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)
Variable overhead rate variance $ (Click to select)UFNone
Variable overhead efficiency variance $ (Click to select)NoneUF
Answer and Explanation:
The computation is shown below;
1
Material price variance= (Standard Price-Actual Price) × Actual Qty
= (20.16 ÷ 3.2 - 84000 ÷ 14000) × 14000
= $4200 Favorable
Material Quantity variance= (Standard Qty -Actual Qty ) ×Standard Price
= (4000 ×3.2 - 14000) ×6.3
= $7560 Unfavorable
2
Labour rate variance= (Standard Rate-Actual Rate) ×Actual Hour
= (12870 ÷ 780-14000 ÷ 755) ×755
= $1542.50 Unfavorable
Labour efficiency variance= (Standard Hour -Actual Hour ) × Standard Rate
= (780 × 4000 ÷ 3900 - 755) × 16.50
= $742.50 Favorable
3
Variable Overhead rate variance= (Standard Rate-Actual Rate) × Actual Hour
= (2340 ÷ 780-7200 ÷ 755) × 755
= $4935 Unfavorable
Variable Overhead efficiency variance= (Standard Hour -Actual Hour ) × Standard Rate
= (780 × 4000 ÷ 3900 - 755) × 3
= $135 Favorable
You can determine a company’s cash situation by analyzing the cash flow statement. The cash flow statement also helps determine whether the company (1) is generating enough cash from its operations to make new investments and pay dividends or (2) will need to generate cash by issuing new debt or selling its assets. A firm has $100 million in revenues. Does that mean it has generated a cash flow of $100 million?
Answer:
A firm that has $100 million in revenues does not mean that the firm has generated a cash flow of $100 million.
Explanation:
The revenue could be on account, in which case, the firm has literally not generated any cash flow, but decreased the cash flow instead. To increase the cash flow by $100 million as a result of revenue, this particular firm needs to collect the amount from its customers in cash. Cash flow is generated when cash is received and not when services or goods are sold.
what is the major source of competition for motor carrier?
Answer: The major source of competition for motor carrier is intermodal in nature.
The major source competition for motor carriers is railroad. This is because rail system is quicker than motor carriers and has been used widely. Railroads do not cover all geographical zones but they have been a trend in several regions.
Explanation:
A fast-food restaurant buys hamburger buns from a national bakery supplier. The daily usage of buns at the restaurant is normally distributed with an average of 160 and standard deviation of 10. It takes 4 days for the supplier to deliver. The purchasing agent at the restaurant has established a 99.7% service level.
a) The Safety Stock and Reorder Point for the restaurant (in whole numbers). A fast-food restaurant buys hamburger buns from a local bakery. To estimate its costs, the restaurant assumes now those buns are used at the constant rate of 100 per day and are purchased at $0.025 per bun. It costs $1 for each order placed and the annual inventory holding cost per unit is 25% of the unit purchase cost.
b) How much should be ordered each time to minimize the restaurant’s total annual costs?c) And what is the length of order cycles (i.e. time between orders) in days? Assume the restaurant operates 360 days per year.
Answer:
Thus, from the calculations below;
The safety stock = 55
The reorder point = 695
quantity required to be ordered in order to reduce and minimize total annual cost for the restaurant = 3394 buns
The order cycles length = 34 days
Explanation:
From the given information:
The average demand (d) = 160
The standard deviatiion [tex]\sigma_d[/tex] = 10
Lead time = 4 days
Service level = 99.7% = 0.997
From the Standard Normal Curve; the z value at 99.7% = 2.75
The annual demand (D) = 36000
Ordering cost = $1
Unit purchased Cost = $0.025
The holding cost for the annual inventory = 25% of 0.025 = 0.00625
The reorder point can be determined by using the formula:
[tex]= \bar d \times Lead \ time +z\times \sigma_d \times \sqrt{LT}[/tex]
[tex]\mathbf{ = 160\ \times4+2.75 \times10 \times\sqrt{4}}[/tex]
= 695
The safety stock SS = [tex]z \times \sigma_d \times \sqrt{LT}[/tex]
[tex]= 2.75 \times 10 \times \sqrt{4}[/tex]
= 55
The economic order quality = [tex]\sqrt{2 \times D \times \dfrac{ordering \ cost }{annua l\ holding \ cost}}[/tex]
[tex]= \sqrt{2 \times 36000 \times \dfrac{1 }{0.00625}}[/tex]
=3394.11
The order cycle length = [tex]\dfrac{EOQ}{D}\times 360[/tex]
[tex]= \dfrac{3394.11}{36000}\times 360[/tex]
= 33.94
≅ 34 days
The following is the adjusted trial balance for Stockton Company. Stockton Company Adjusted Trial Balance December 31 Cash 5,649 Accounts Receivable 2,468 Prepaid Expenses 660 Equipment 14,231 Accumulated Depreciation 2,782 Accounts Payable 1,745 Notes Payable 4,564 Common Stock 1,000 Retained Earnings 8,538 Dividends 783 Fees Earned 8,977 Wages Expense 2,286 Rent Expense 765 Utilities Expense 426 Depreciation Expense 267 Miscellaneous Expense 71 Totals 27,606 27,606 Determine the net income (loss) for the period. a.Net income $4,379 b.Net loss $4,379 c.Net loss $5,162 d.Net income $5,162
Answer:
Stockton Company
The net income (loss) for the period is:
= d. Net income $5,162
Explanation:
Stockton Company Adjusted Trial Balance December 31
Cash 5,649
Accounts Receivable 2,468
Prepaid Expenses 660
Equipment 14,231
Accumulated Depreciation 2,782
Accounts Payable 1,745
Notes Payable 4,564
Common Stock 1,000
Retained Earnings 8,538
Dividends 783
Fees Earned 8,977
Wages Expense 2,286
Rent Expense 765
Utilities Expense 426
Depreciation Expense 267
Miscellaneous Expense 71
Totals 27,606 27,606
Income Statement
For the year ended December 31
Fees Earned 8,977
Wages Expense 2,286
Rent Expense 765
Utilities Expense 426
Depreciation Expense 267
Miscellaneous Expense 71 3,815
Net income 5,162
The purpose or objectives of competition policy
Answer:
to encourage creativity
On 1/29, General Electric bought supplies in the amount of $1,500. What account is debited and what account is credited in the required journal entry for General Electric on 1/29? (Select ALL that apply)
Answer: Debit Supplies
Credit Cash
Credit Accounts payable.
Explanation:
The journal entry is an act of making records of the transactions in an organization which shows the debit and credit balances of the company.
Based on the information given, since General Electric bought supplies in the amount of $1,500, the journal entry will be:
Debit Supply $1500
Credit Cash / Accounts Payable $1500
The systematic examination of the relationships among selling prices, volume of sales and production, costs, and profits is termed: Group of answer choices contribution margin analysis cost-volume-profit analysis budgetary analysis gross profit analysis
Answer:
cost-volume-profit analysis
Explanation:
Cost-volume-profit analysis also known as breakeven analysis can be defined as a financial accounting method or technique used for determining the number of units a business firm must sell at a specific price so as to cover all of its costs. It is a concept that allow business owners or financial experts to determine and know what they need to sell either on a monthly or annual (yearly) basis, in order to be able to cover the costs of doing the business.
Basically, it helps us to determine the amount of revenue required for the smooth operation of a business, amount of money needed to cover both fixed and variable costs. Using the breakeven analysis, production costs can be categorized as;
1. Variable costs: these are costs that usually change with respect to changes in the level of production or output. Examples are direct labor, maintenance of equipment or machines, raw materials costs etc.
2. Fixed costs: these are the costs which are not directly related to the level of production or not affected by the quantity of output in an organization. Examples are rent, depreciation, administrative cost, research and development costs, marketing costs etc.
Generally, basic break-even analysis is typically based on the principle that variable costs and revenues generated by a business firm or organization, increase in direct proportion to the volume of production i.e as the volume of production of a business firm increase, its variable cost and revenue generated also increases.
Hence, a cost-volume-profit analysis is mainly used by businesses or organizations to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.
You have $25,832.81 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $210,000. You expect to earn 10% annually on the account. How many years will it take to reach your goal? Round your answer to two decimal places at the end of the calculations.
Answer: 14 years
Explanation:
The question states that an individual has $25,832.81 in a brokerage account, and plan to deposit an additional $4,000 at the end of every future year until the money in the account totals $210,000 and it's expected to earn 10% annually on the account.
To know the number of years that it'll take to reach the goal, we'll solve this in Excel as:
= =NPER (10%,-4000,-25832.81, 210000).
= 14 years
Therefore, it'll take 14 years to reach the goal.
The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($/SF):Spot............................................ $0.943230-day forward.......................... $0.948190-day forward.......................... $0.9531180-day forward........................ $0.9594a. Was the Swiss franc selling at a discount or premium in the forward market?b. What was the 30-day forward premium (or discount)?c. What was the 90-day forward premium (or discount)?d. Suppose you executed a 90-day forward contract to exchange 100,000 Swiss francs into U.S. dollars. How many dollars would you get 90 days hence?
Answer:
The Wall Street Journal Reports
a. The Swiss franc was selling at a premium in the forward market.
b. The 30-day forward premium was: $0.0049.
c. The 90-day forward premium was: $0.0099.
d. Dollars to receive from a 90-day forward contract is $95,310.
Explanation:
a) Data and Calculations:
Spot and forward rates for the Swiss franc ($/SF):
Spot............................................ $0.9432
30-day forward.......................... $0.9481
90-day forward.......................... $0.9531
180-day forward........................ $0.9594
Premium:
30-day forward.......................... $0.9481
Spot............................................ $0.9432
Premium = $0.0049
90-day forward.......................... $0.9531
Spot............................................ $0.9432
Premium = $0.0099
180-day forward........................ $0.9594
Spot............................................ $0.9432
Premium = $0.0162
Dollars to receive from a 90-day forward contract is $95,310 ($0.9531 * SF 100,000)
Baruch co. has 8% coupon bonds on the market that have 10 years left to maturity. The bonds will make annual payments. If the YTM on these bonds is 6%, what is the current bond price
Answer:
the current bond price is $1,147.20
Explanation:
The computation of the current bond price is shown below:
Given that
NPER = 10
RATE = 6%
PMT = $1,000 × 8% = $80
FV = $1,000
Here we assume the future value be $1,000
The formula is shown below:
= -PV(RATE,NPER,PMT,PV,TYPE)
After applying the above formula, the current bond price is $1,147.20
How will you use the cloud to stay organized
Answer:
Explanation:
Develop a Folder Naming System. Decluttering your cloud space will mean developing a file system and then putting everything in its proper place. ...
Portions of the financial statements for Myriad Products are provided below. MYRIAD PRODUCTS COMPANY Income Statement For the Year Ended December 31, 2021 ($ in millions) Sales $620 Cost of goods sold 217 Gross margin 403 Salaries expense$85 Depreciation expense 72 Amortization expense 5 Interest expense 12 Loss on sale of land 3 177 Income before taxes 226 Income tax expense 113 Net Income $113 MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) Year 20212020Change Cash$108 $104 $4 Accounts receivable 224 238 (14) Inventory 442 454 (12) Accounts payable 150 142 8 Salaries payable 82 90 (8) Interest payable 31 24 7 Income tax payable 21 14 7 Required: Prepare the cash flows from the operating activities section of the statement of cash flows for Myriad Products Company using the indirect method
Answer:
$233 million
Explanation:
Statement of cash flow
Cash flow from operating activity
Particulars Amount ($ in millions)
Net income 113
Adjustment in net income
Depreciation 72
Amortization 5
Loss on sale of land 3
Decrease account receivable 14
Decrease inventory 12
Increase account payable 8
Decrease salary payable (8)
Increase interest payable 7
Increase income tax payable 7 120
Net cash flow from operating activity 233