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Related Questions
All of the following are potential exchanges between the fan and the event EXCEPT
Ticket purchases
Purchase of ancillary products
Purchase of sponsor products
Referrals
Answers
Answer:
Purchase of sponsor products
Explanation:
How do the McDonald brothers propose to control the involvement Ray Kroc would have in their business?
Answers
The following information pertains to Carla Vista Company.
1. Cash balance per bank, July 31, $7,738.
2. July bank service charge not recorded by the depositor $48.
3. Cash balance per books, July 31, $7,774.
4. Deposits in transit, July 31, $3,110.
5. $2,426 collected for Carla Vista Company in July by the bank through electronic funds transfer. The collection has not been recorded by Carla Vista Company.
6. Outstanding checks, July 31, $696.
Required:
Prepare a bank reconciliation.
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l Englehard purchases a slurry-based separator for the mining of clay that costs $700,000 and has an estimated useful life of 10 years, a MACRS-GDS property class of 7 years, and an estimated salvage value after 10 years of $75,000. It was fi nanced using a $200,000 down payment and a loan of $500,000 over a period of 5 years with interest at 10%. Loan payments are made in equal annual amounts (principal plus interest) over the 5 years. a. What is the amount of the MACRS-GDS depreciation taken in the 3rd year
Answers
Answer:
The amount of the MACRS-GDS depreciation taken in the 3rd year is $122,430.
Explanation:
The amount of the MACRS-GDS depreciation taken in the 3rd year can be calculated as follows:
Cost of the slurry-based separator = $700,000
Third year depreciation rate for a MACRS-GDS property class of 7 years from the MACRS-GDS table = 17.49%
MACRS-GDS depreciation in the 3rd year = $700,000 * 17.49% = $122,430
Therefore, The amount of the MACRS-GDS depreciation taken in the 3rd year is $122,430.
Soprano Corporation allocates administrative costs on the basis of staff hours. Short-run monthly usage and anticipated long-run monthly usage of staff hours for Operating Departments 1 and 2 follow. Department 1 Department 2 Total Short-run usage (hours) 80,000 120,000 200,000 Long-run usage (hours) 90,000 110,000 200,000 If Soprano uses dual-cost accounting procedures and fixed administrative costs total $1,000,000, the amount of fixed administrative costs to allocate to Department 1 would be:
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Answer:
$850,000
Explanation:
Total Hours of Department 1=$80,000+$90,000
=$170,000/$200,000*1000,0000
Which pathway includes the most self-employed workers?
Banking Services
Insurance Services
Financial and Investment Planning
Business Financial Management
Answers
Answer:
The Answer is B
Explanation:
Im sure its B
The purpose of cascading the balanced scorecard throughout the organization is: _____________
a. To help all employees think about, discuss, and implement the corporate strategy.
b. To ensure strict hierarchical control of the organization.
c. To customize the organizational mission and goals for every employee.
d. To create detailed performance measures for each employee
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Answer:
b. To ensure strict hierarchical control of the organization.
The purpose of cascading the balanced scorecard is b. To ensure strict hierarchical control of the organization.
What is cascading?Cascading is a term that describes the positions in an organization and how an organization is been set up from higher heirachy to lower heirachy.
Therefore, with cascading, hierarchical control of the organization can be checked and be monitored.
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Discount loan. Up-Front Bank uses discount loans for all its customers who want one-year loans. Currently, the bank is providing one-year discount loans at . What is the effective annual rate on these loans? If you were required to repay at the end of the loan for one year, how much would the bank have given you at the start of the loan? If you were required to repay $ at the end of the loan for one year, how much would the bank have given you at the start of the loan?
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Complete Question:
Discount loan. Up-Front Bank uses discount loans for all its customers who want one-year loans. Currently, the bank is providing one-year discount loans at 7.9%. What is the effective annual rate on these loans? If you were required to repay $205,000 at the end of the loan for one year, how much would the bank have given you at the start of the loan? If you were required to repay $205,000 at the end of the loan for one year, how much would the bank have given you at the start of the loan? $Џ (Round to the nearest dollar.)
Answer:
Up-Front Bank
a. The effective annual rate on these loans = 8.58%
b. The amount would have given $188,805.
Explanation:
a) Data and Calculations:
Discount on loans = 7.9%
Effective annual rate on the loans = 7.9%/(100% - 7.9%)
= 7.9%/92.1%
= 0.0858
= 8.58%
b) Amount to be repaid to the bank = $205,000
Amount given after the discount is deducted = $205,000 * 0.921
= $188,805
Amount deducted as interest = $16,195 ($205,000 * 7.9%)
Check:
Effective interest rate = $16,195/$188,805 * 100 = 8.58%
c) Up-Front Bank's discount loan does not require the payment of interest or any other charges. Instead, these are deducted upfront from the face amount of the loan before it is given out. The implication is that the receiver of the loan receives less than the face value. In determining the effective interest rate, the discount amount is divided by the actual loan amount received, multiplied by 100.
can you please help me on how to write a formal Email
Answers
Answer:
It's just like writing a letter!
Explanation:
You don't add the date, here's a format to go by:
Dear {Recipient},
{Body paragraph}
Thanks/Best Regards/Sincerely,
{Your name}
EXMAPLE:
To: (email)
Subject: Ice Cream
Email: Father and Mother, I was wondering if you would consider buying me ice cream. I understand I haven't been a good 5 - year - old, but may you consider the benefits of buying me ice cream?
Thank you,
5 - year - old
Exercise 10-2 Recording bond issuance at par, interest payments, and bond maturity LO P1 Brussels Enterprises issues bonds at par dated January 1, 2019, that have a $2,700,000 par value, mature in four years, and pay 6% interest semiannually on June 30 and December 31. 1. Record the entry for the issuance of bonds for cash on January 1. 2. Record the entry for the first semiannual interest payment and the second semiannual interest payment. 3. Record the entry for the maturity of the bonds on December 31, 2022 (assume semiannual interest is already recorded).
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Answer:
June 30 Bond Interest Expense Dr $81000
Cash Cr $81000
(6%/2*$2,700,000)
December 31 Bond Interest Expense Dr $81000
Cash Cr $81000
Bonds Payable Dr $2,700,000
Cash Cr $2,700,000
Explanation:
Record the entry for the first semiannual interest payment and the second semiannual interest payment.
June 30 Bond Interest Expense Dr $81000
Cash Cr $81000
(6%/2*$2,700,000)
December 31 Bond Interest Expense Dr $81000
Cash Cr $81000
Record the entry for the maturity of the bonds on December 31, 2022 (assume semiannual interest is already recorded).
Bonds Payable Dr $2,700,000
Cash Cr $2,700,000
In 2021, due to a change in marketing forecasts, Barney Corporation reduced the projected life of its patent for producing round dice. The cumulative patent amortization prior to 2021 would have been $18 million higher had the new life been used. Barney's tax rate is 25%. Barney's retained earnings as of December 31, 2021, would be:
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Answer: unaffected
Explanation:
We should note that a retrospective adjustment isn't necessarily needed when there's an alternation to a accounting estimate.
With regards to this Barney's retained earnings as of December 31, 2021, would neither be understated or overstated but would be unaffected.
Brodrick Company expects to produce 20,000 units for the year ending December 31. A flexible budget for 20,000 units of production reflects sales of $400,000; variable costs of $80,000; and fixed costs of $150,000. Assume that actual sales for the year are $480,000 (26,000 units), actual variable costs for the year are $112,000, and actual fixed costs for the year are $145,000. Prepare a flexible budget performance report for the year. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.)
Answers
Answer: Check attachment
Explanation:
The flexible budget performance report for the year has been solved and attached.
Note that the selling price per unit was calculated as:
= 400,000 /20,000
= $20 per unit
Therefore, total sales was gotten as:
= 26000 × $20
= $520,000
Variable cost per unit was calculated as:
= 80,000/20,000
= $4 per unit
Then, total cost was:
= $4 × 26,000
= $104,000
Check attachment for further details.
Jallouk Corporation has two different bonds currently outstanding. Bond M has a face value of $30,000 and matures in 20 years. The bond makes no payments for the first six years, then pays $2,400 every six months over the subsequent eight years, and finally pays $2,700 every six months over the last six years. Bond N also has a face value of $30,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. The required return on both these bonds is 6% compounded semi-annually. What are the current price of bond M and bond N?
Answers
Answer:
um
Explanation:
Write a short paragraph describing how segmentation could make your marketing efforts more effective. In your response to your manager, provide at least one specific example of how using segmentation could more effectively reach customers. In addition, describe at least two specific action steps you would suggest taking in order to effectively segment your customers.
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Explanation:
Market segmentation consists of directing the business strategy to satisfy the desires and needs of a specific audience.
The use of segmentation can make marketing efforts more effective because the company finds out the profile of its customer, its needs, its income, its location, and in this way develops or improves its products and services in order to satisfy its customers. potential. An example of market segmentation is demographic segmentation that, through data, identifies consumer information such as age, income, gender to improve the product's strategy.
For demographic segmentation to be effective, it is necessary for companies to conduct market research in order to delimit their audience and then determine communication from the data and information found, in order to attract and retain consumers to increase their positioning and profitability. in the market.
A bicameral legislature is made up of how many bodies?
O one
O two
O three
O four
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Answer:
two
Explanation:
A bicameral legislature is made up of two bodies. Thus, option B is the correct option.
What is a bicameral legislature?A bicameral legislature, which is distinguished by having two distinct assemblies, chambers, or houses, is one that practices bicameralism. Unicameralism, in which all members discuss and vote as a single body, is distinct from bicameralism. Bicameralism will be used by about 40% of national legislatures throughout the world as of 2022, compared to 60% at the national level and significantly more at the subnational level for unicameralism.
The techniques used to elect or choose the members of the two chambers sometimes varied from jurisdiction to jurisdiction. This frequently results in the membership of the two chambers being significantly different. Primary legislation frequently has to be approved by majorities in both houses of the legislature in order to be passed. If this is the case, the legislature may be seen as the epitome of bicameralism.
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1. $7,000 of merchandise inventory was ordered on September 2, 20092. $3,000 of this merchandise was received on September 5, 20093. On September 6, 2009, an invoice dated September 4, 2009, with terms of 3/10, net 30 for $3,250 which included a $250 prepaid freight cost, was received.4. On September 10, 2009, $800 of the merchandise was returned to the seller.Based on the above information, what would be recorded as the cash payment if the invoice is paid within the discount period
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Answer:
The cash payment to be recorded is:
= $2,376.50.
Explanation:
a) Data and Calculations:
September 2, 2009: Merchandise order = $7,000
September 5, 2009: Merchandise received = $3,000
September 6, 2009: Freight-in 250
Terms of trade 3/10, net 30
September 10, 2009: Return of merchandise (800)
Total value of merchandise = $2,450
Cash discount (3% of $2,450) = 73.50
Cash payment = $2,376.50
b) The trade terms of 3/10, net 30 means that a discount of 3% is allowed when payment is made within 10 days of the purchase date or on or before September 11, 2009. This amounts to $73.50. Therefore, the net amount to be paid is $2,376.50 after deducting the calculated discount amount.
The Consumer Electronics Show (CES) reports that the HP Spectre laptop computer starts at $994.00 for a base configuration. The model displayed at its recent show costs $1,353, $118 more than the comparable 13-inch Apple MacBook Air. If Computers-R-Us buys the HP Spectre at the show with 3/15, net 30 terms on August 26, how much does it need to pay on September 9
Answers
Answer: $1312.41
Explanation:
The following information can be depicted from the question:
Cost of HP Spectre laptop = $1353
Credit terms = 3/15, net 30
Therefore, since discount allowed is 3%, the complement of the discount rate will be:
= 100% - 3%
= 97%
Therefore, amount needed to pay will be:
= Listed price × Complement of discounts rate
= $1353 × 97%
= $1353 × 0.97
= $1312.41
Therefore, the amount needed to pay is $1312.41
Given the description of the firm below, decide whether it applies to monopolistic competition, perfect competition, or both.
a. a firm that produces with excess capacity in the long run
b. a firm that has market power
c. a firm that sets greater than marginal
d. a firm that earns zero economic profit in the long
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Answer:
Perfect Competition
d. a firm that earns zero economic profit in the long
In the long run, firms will keep entering and exiting the market in a perfect competition such that there will be no economic profit to be gained.
Monopolistic Competition
a. a firm that produces with excess capacity in the long run
b. a firm that has market power
c. a firm that sets price greater than marginal cost.
Monopolistic competition has excess capacity in the long run because their prices are set at a higher level than the marginal revenue. They are therefore producing more goods than they are selling leading to excess capacity.
Monopolistic competition has some form of market power as well because they get to set their own prices.
Economists argue that the pace of economic growth: Determines the size of the population of a nation over the long term. Determines the standard of life of a nation over the long term. Determines the military capability of a nation over the long term. Determines the unemployment rate of a nation over the long term. Determines the environmental health of a nation over the long term.
Answers
Answer: Determines the standard of life of a nation over the long term.
Explanation:
Economists believe that the economic growth of a country determines the standard of living of its people over the long term which is why measures such as GDP per capita exist.
They argue that if the economy is growing, more wealth will be created for citizens to access and the higher production of goods and services will give citizens more choice on what to buy to be able to improve their standard of living.
Exercise 07-7 Manufacturing: Direct labor and factory overhead budgets LO P1 Addison Co. budgets production of 2,850 units during the second quarter. Other information is as follows: Direct labor Each finished unit requires 6 direct labor hours, at a cost of $9 per hour. Variable overhead Applied at the rate of $11 per direct labor hour. Fixed overhead Budgeted at $640,000 per quarter. 1. Prepare a direct labor budget. 2. Prepare a factory overhead budget.
Answers
Answer:
See below
Explanation:
1. Total Direct labor
Addison Co.
Direct labor budget for second quarter
Budgeted production units 2,850
Direct labor hour per one unit 6
Total direct labor hours needed 17,100
Cost per one direct labor $9
Total direct labor $153,900
2. Total factory overhead budget
Addison Co. Factory overhead for second quarter
Total direct labor hours needed 17,100
Variable rate per direct labor hour $11
Budgeted variable overhead $188,100
Budgeted fixed overhead $640,000
Total factory overhead $828,100
The grouping of living things according to similar characteristics is
Answers
Answer:
see the explanation
Explanation:
A species can be defined as a group of organisms with similar features, and these organisms are capable of breeding and produce fertile offspring. You are probably aware of the fact that horses and donkeys belong to the same kingdom, phylum, class, order, family as well as genus but they are from different species.
Bob lives in Miami and runs a business that sells guitars. In an average year, he receives $793,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $430,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $15,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Bob does not operate this guitar business, he can work as a financial advisor, receive an annual salary of $50,000 with no additional monetary costs, and rent out his showroom at the $15,000 per year rate. No other costs are incurred in running this guitar business.
Identify each of Bob’s costs as either an implicit cost or an explicit cost of selling guitars.
a. The wholesale cost for the guitars that Bob pays the manufacturer
b. The wages and utility bills that Bob pays
c. The salary Bob could earn if he worked as a financial advisor
d. The rental income Bob could receive if he chose to rent out his showroom
Answers
Answer and Explanation:
The identification of each transaction as an explicit cost or implicit cost is as follows
a. It is an explicit cost as the cost would be paid to the factors of production
b. It is also an explicit cost as the cost would be paid to the factors of production
c. It is an implicit cost as it is considered to be the hidden cost
d. It is also an implicit cost as it is considered to be the hidden cost
Leto Company manufactures a certain type of alloy. The alloy undergoes a hardening process. The hardening unit is operating at full capacity and is a production constraint. The unit contribution margin and the number of hours of hardening treatment used by the alloy are as follows: Unit selling price$96.80 Unit variable cost(23.50) Unit contribution margin$73.30 Hardening treatment hours per unit5 hrs. Assuming Leto produces 2,300 units of the alloy, calculate the unit contribution margin per production constraint hour.
Answers
Answer:
Leto Company
The unit contribution margin per production constraint hour is:
= $0.00637.
Explanation:
a) Data and Calculations:
Unit selling price = $96.80
Unit variable cost = (23.50)
Unit contribution margin = $73.30
Hardening treatment hours per unit = 5 hours
Units of alloy produced = 2,300
Total hours spent on hardening treatment = 11,500 (5 * 2,300)
Contribution margin per production constraint hour = Unit contribution margin/Total hours spent on hardening treatment
= $0.00637 ($73.30/11,500)
b) The unit contribution margin per production constraint hour shows the contribution margin that is made per unit of the production constraint. The production constraint is the limited input resources that are available for production. It is a product of the units of the alloy that Leto produces and the number of hours required to produce one unit.
On June 30, 2017, Wisconsin, Inc., issued $200,200 in debt and 19,300 new shares of its $10 par value stock to Badger Company owners in exchange for all of the outstanding shares of that company. Wisconsin shares had a fair value of $40 per share. Prior to the combination, the financial statements for Wisconsin and Badger for the six-month period ending June 30, 2017, were as follows:
Wisconsin Badger
Revenues $(1,050,000) $-402,000
Expenses 732,000 293,000
Net income $(318,000) $-109,000
Retained earnings, 1/1 $(810,000) $-223,000
Net income (318,000) -109,000
Dividends declared 103,000 0
Retained earnings, 6/30 $(1,025,000) $-332,000
Cash $72,000 $86,000
Receivables and inventory 460,000 252,000
Patented technology (net) 928,000 328,000
Equipment (net) 726,000 648,000
Total assets $2,186,000 $1,314,000
Liabilities $(531,000) $-512,000
Common stock (360,000) -200,000
Additional paid-in capital (270,000) -270,000
Retained earnings (1,025,000) -332,000
Total liabilities and equities $(2,186,000) $-1,314,000
Wisconsin also paid $36,200 to a broker for arranging the transaction. In addition, Wisconsin paid $47,800 in stock issuance costs. Badger’s equipment was actually worth $780,000, but its patented technology was valued at only $299,200. What are the consolidated balances for the following accounts?
Net Income 281,800
Retained Earnings 1/1/15 810,000
Patented Technology 1,227,200
Goodwill
Liabilities 1,243,200
Common Stock 553,000
Additional Paid-In Capital 801,200
Answers
Answer:
Wisconsin, Inc.
The consolidated balances for the following accounts are:
Net Income $427,000
Retained Earnings $1,134,000
Patented Technology $1,227,200
Goodwill ($511,800)
Liabilities $1,243,200
Common Stock $553,000
Additional Paid-In Capital $270,000
Explanation:
a) Data and Calculations:
Wisconsin Badger
Revenues $(1,050,000) $-402,000
Expenses 732,000 293,000
Net income $(318,000) $-109,000
Retained earnings, 1/1 $(810,000) $-223,000
Net income (318,000) -109,000
Dividends declared 103,000 0
Retained earnings, 6/30 $(1,025,000) $-332,000
Cash $72,000 $86,000
Receivables and inventory 460,000 252,000
Patented technology (net) 928,000 328,000
Equipment (net) 726,000 648,000
Total assets $2,186,000 $1,314,000
Liabilities $(531,000) $-512,000
Common stock (360,000) -200,000
Additional paid-in capital (270,000) -270,000
Retained earnings (1,025,000) -332,000
Total liabilities and equities $(2,186,000) $-1,314,000
Goodwill = Purchase price Minus (Fair value of assets Less Liabilities)
Purchase price:
Debt = $200,200
Stock = 193,000
Total $393,200
Fair value of assets:
Cash $86,000
Accounts receivable 252,000
Equipment 780,000
Patented technology 299,200
Assets fair value $1,417,200
Liabilities $512,000
Net assets $905,000
Net Income = $427,000 ($318,000 + $109,000)
Retained Earnings = $1,134,000 ($1,025,000 + 109,000)
Patented technology = $1,227,200 ($928,000 + 299,200)
Negative goodwill = $511,800 ($393,200 - $905,000)
Liabilities = $1,243,200 ($531,000 + 512,000 + 200,200)
Common Stock = $553,000 ($360,000 + 193,000)
Additional Paid-in Capital = $270,000
The financial statements for Wisconsin and Badger for the six-month period ending June 30, 2017:
a) Data and Calculations:
Wisconsin Badger
Revenues $(1,050,000) $-402,000
Expenses 732,000 293,000
Net income $(318,000) $-109,000
Retained earnings, 1/1 $(810,000) $-223,000
Net income (318,000) -109,000
Dividends declared 103,000 0
Retained earnings, 6/30 $(1,025,000) $-332,000
Cash $72,000 $86,000
Receivables and inventory 460,000 252,000
Patented technology (net) 928,000 328,000
Equipment (net) 726,000 648,000
Total assets $2,186,000 $1,314,000
Liabilities $(531,000) $-512,000
Common stock (360,000) -200,000
Additional paid-in capital (270,000) -270,000
Retained earnings (1,025,000) -332,000
Total liabilities and equities $(2,186,000) $-1,314,000
Working notes:
The consolidated balances for the following accounts are:
Net Income $427,000 Retained Earnings $1,134,000 Patented Technology $1,227,200 Goodwill ($511,800) Liabilities $1,243,200 Common Stock $553,000 Additional Paid-In Capital $270,000Goodwill = Purchase price Minus (Fair value of assets Less Liabilities)
Purchase price:
Debt = $200,200 Stock = 193,000 Total = $393,200Fair value of assets:
Cash $86,000 Accounts receivable 252,000 Equipment 780,000 Patented technology 299,200 Assets fair value $1,417,200 Liabilities $512,000Net assets $905,000
Net Income = $427,000 ($318,000 + $109,000) Retained Earnings = $1,134,000 ($1,025,000 + 109,000) Patented technology = $1,227,200 ($928,000 + 299,200) Negative goodwill = $511,800 ($393,200 - $905,000) Liabilities = $1,243,200 ($531,000 + 512,000 + 200,200) Common Stock = $553,000 ($360,000 + 193,000) Additional Paid-in Capital = $270,000Know more :
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art of the screening process when choosing which markets to expand to involves gathering information on local markets. One way to gain information is by participating in trade fairs and trade missions. However, companies will often need additional information on markets that require further research. Collecting primary data in foreign markets can present some challenges in researchers especially because of cultural and technical differences between the markets. Identify whether each statement about the research process is most likely associated with cultural differences between markets or technical differences. 1. A number of languages may be spoken in a country and even in countries where only one language is used, a word's meaning can change from one region to the next.
Answers
Answer:
1. Cultural differences between markets.
Explanation:
There are many language across the world. There are even many languages spoken in a single country. People living in one region will speak different language than those who live in other nearby region of the same country. The meanings of many words also changes in different languages. The word of English language have some meaning and same words may have different meaning in other languages.
Money serves three functions in the economy: medium of exchange, unit of account, and store of value. Which of the following statements describes how inflation affects the ability of money to serve as a unit of account? Check all that apply. Inflation causes menu costs. Inflation erodes money's purchasing power. In some countries with hyperinflation, prices are posted in terms of U.S. dollars rather than the local currency, even though the local currency is still used to purchase the good.
Answers
Answer:
Inflation causes menu costs.
In some countries with hyperinflation, prices are posted in terms of U.S. dollars rather than the local currency, even though the local currency is still used to purchase the good.
Explanation:
The inflation that cause menu cost and the hyperinflation would be treated as a unit of account because for menu cost, the seller have to change the cost because of changing in the price
On the other hand, because of the difference in the currencies, inflation would create a problem for measuring the currency units
And, the left one would be represent the store of value as the value of the money would be decrease when the inflation rate is increased
Money has three functions unit if accounts, storm of values and a medium of exchange. Modern economies use flat money that is not a community nor backed by the economy.
The inflation depicts the rise in procs and services and is a reason of the produces of goods and services in the economy. Inflation affects money by reducing the purchasing power of clients.Hence the option B is correct.
Learn more about the serves three functions in the economy: medium of exchange.
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Alamo Power historically allocates IDC for its safety program to generation facilities in Cities A and B based on the number of employees. Last year, $300,000 was distributed and the employee count was 840 in city A and 450 in city B. Implementation of the ABC method took place this year to allocate IDC on the basis of number of accidents. City A reported 345 events and city B had 142 accidents reported.
Determine the allocation based on the number of employees. The allocation based on the number of employees is as follows:
City A:________
City B: _______
Answers
Answer:
Alamo Power
Allocation of IDC cost based on the number of employees:
City A = $195,349
City B = $104,651
Explanation:
a) Data and Calculations:
IDC cost = $300,000
City A City B Total
Employee count 840 450 1,290
Number of accidents 345 142 487
Allocation of IDC cost based on the number of employees:
City A = 840/1,290 * $300,000 = $195,349
City B = 450/1,290 * $300,000 = $104,651
Total cost allocated = $300,000
Allocation of IDC cost based on the number of accidents:
City A = 345/487 * $300,000 = $212,526
City B = 142/487 * $300,000 = $87,474
Straight-Line Depreciation A building acquired at the beginning of the year at a cost of $2,200,000 has an estimated residual value of $400,000 and an estimated useful life of 20 years. Determine the following: (a) The depreciable cost $fill in the blank 1 (b) The straight-line rate fill in the blank 2 % (c) The annual straight-line depreciation $fill in the blank 3
Answers
Answer:
a)
Depreciable Cost = $ 1800000
b)
Straight Line Depreciation Rate = 5%
c)
Depreciation expense per year = $90000
Explanation:
a)
The depreciable cost is the cost that qualifies for depreciation. It is calculated as,
Depreciable Cost = Cost - Salvage Value
Depreciable Cost = 2200000 - 400000
Depreciable Cost = $ 1800000
b)
The straight line depreciation method charges a constant depreciation expense every period. The rate of straight line depreciation can be calculated as follows,
Straight Line Depreciation Rate = Depreciable cost percentage / Estimated useful life
Straight Line Depreciation Rate = 100% / 20
Straight Line Depreciation Rate = 5%
c)
The annual straight line depreciation expense can be calculated as follows,
Depreciation expense per year = Depreciable cost * Straight line depreciation rate
Depreciation expense per year = 1800000 * 0.05
Depreciation expense per year = $90000
Florida Seaside Oil Exploration Company is deciding whether to drill for oil off the northeast coast of Florida. The company estimates that the project would cost $4.24 million today. The firm estimates that once drilled, the oil will generate positive cash flows of $2.12 million a year at the end of each of the next four years. While the company is fairly confident about its cash flow forecast, it recognizes that if it waits two years, it would have more information about the local geology as well as the price of oil. Florida Seaside estimates that if it waits two years, the project would cost $4.59 million. Moreover, if it waits two years, there is a 85% chance that the cash flows would be $2.306 million a year for four years, and there is a 15% chance that the cash flows will be $0.705 million a year for four years. Assume that all cash flows are discounted at a 8% WACC. Will the company delay the project and wait until they have more information
Answers
Answer:
The company will invest now and not delay
Explanation:
In order to determine the better option, we have to determine the Net present value of each of the option.
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
The option with the higher NPV would be chosen
First option
Cash flow in year 0 = $-4.24 million
Cash flow in year 1 = $2.12 million
Cash flow in year 2 = $2.12 million
Cash flow in year 3 = $2.12 million
Cash flow in year 4 = $2.12 million
I = 8%
NPV = 2.78 million
Second option
NPV of the cash flow with $2.306 million a year for four years
Cash flow in year 0 = 0
Cash flow in year 1 = 0
Cash flow in year 2 = $-4.59 million.
Cash flow in year 3 = $2.306
Cash flow in year 4 = $2.306 million
Cash flow in year 5 = $2.306 million
Cash flow in year 6 = $2.306 million
I = 8
NPV = $2.61 million
NPV when cash flows would be $0.705 million
Cash flow in year 0 = 0
Cash flow in year 1 = 0
Cash flow in year 2 = $-4.59 million.
Cash flow in year 3 = $0.705 million
Cash flow in year 4 = $0.705 million
Cash flow in year 5 = $0.705 million
Cash flow in year 6 = $0.705 million
I = 8 %
NPV = -1.93 million
NPV of the second option = (0.85 x $2.61 million) + (0.15 x 0) = $2.22 million
The NPV when cash flows would be $0.705 million is zero because the NPV is negative and thus would not be undertaken.
The company will invest now and not delay because the NPV of not waiting is greater than the NPV of delaying
To find the NPV 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 NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
What to do most careers in Finance deal with?
a) real estate and education
b) assets and liabilities
c) assets and retail
d) real estate and retail
Answers
Answer:
b
Explanation:
B)
Answer: B would be the answer
Explanation: assist and liabilities