Answer:
$2.4/share
Explanation:
In order to calculate annual dividend we have to find the price per share first
Price per share = Total Capital raised/Number of shares
Price per share = $20,000,000/1,000,000
Price per share = $20
The annual dividend can be calculated by the following formula
Formula: Expected Return = Annual dividend/ price per share
NOTE: To find Annual dividend we need to adjust the formula accordingly
Annual dividend = Expected Return x Price per share
If Expected return is 12%
Annual dividend = 12% x $20 = $2.4/share
If Expected return is 15%
Annual dividend = 15% x $20 = $3/share
If Expected return is 8%
Annual dividend = 8% x $20 = 1.6/share
If Expected return is 7%
Annual dividend = 7% x $20 = $1.4/share
If Expected return is 6%
Annual dividend = 6% x $20 = $1.2/share
If Expected return is 3%
Annual dividend = 3% x $20 = $0.6/share
A regression analysis was performed to determine the relationship between the costs of a product (y), the time to make the product (x1 ), the number of different materials used (x2), and the amount spent on marketing the product (x3). The estimated regression equation is . What is the estimated cost if the time to make the product is 5 hours, the number of different materials used is 4, and the amount spent on marketing is $100? a. 83 b. 205.4 c. 213 d. 185.4
Answer: d. 185.4
Explanation:
x1 = The time to make the product which is 5 hours
x2 = the number of different materials used which is 4
x3 = the amount spent on marketing the product which is $100
The Regression equation is given as;
y = [tex]83 - 2x_{1} + 0.6x_{2} + 1.1x_{3}[/tex]
Cost = 83 - 2(5) + 0.6(4) + 1.1 (100)
Cost = 83 - 10 + 2.4 + 110
Cost = 185.4
If Treasury bills are currently paying 6.5 percent and the inflation rate is 1.3 percent, what is the approximate and the exact real rate of interest
Answer:
the approximate real interest rate = nominal rate - inflation rate = 6.5% - 1.3% = 5.2%
the exact real interest rate is calculated using the following formula:
(1 + nominal interest rate) = (1 + real interest rate) (1 + expected rate of inflation)
(1 + 0.065) = (1 + real interest rate) x (1 + 0.013)
1 + real interest rate = (1 + 0.065) / (1 + 0.013) = 1.065 / 1.013 = 1.05133
real interest rate = 1.05133 - 1 = 0.05133 = 5.13%
Journalize the following transactions assuming a perpetual inventory system:
May 5
Purchased merchandise from Archie Co., $6,000, terms FOB shipping point, 2/10, n/30.
Prepaid freight costs of $100 were added to the invoice.
May 12
Issued a debit memo to Archie Co. for $2,500 of merchandise returned from purchase on May 5.
May 14
Paid Archie Co. for invoice of May 5, less debit memo of May 12.
Answer:
May 5
Merchandise Inventory $6,000 (debit)
Freight Charges $100 (debit)
Accounts Payable : Archie Co. $6,000 (credit)
Cash $100 (credit)
May 12
Accounts Payable : Archie Co. $2,500 (debit)
Merchandise Inventory $2,500 (credit))
May 14
Accounts Payable : Archie Co. $3,500 (debit)
Discount Received $70 (credit)
Cash $3,430 (credit)
Explanation:
May 5
Recognize the Assets of Merchandise and a Liability : Accounts Payable : Archie Co. as a result of purchase.
Also Recognize the Freight Expenses since this is a F.O.B delivery
May 12
De-recognize the Liability : Accounts Payable - Archie Co. and the Merchandise Inventory asset to the extend of Merchandise returned to Archie Co.
May 14
De-recognize the Liability : Accounts Payable : Archie Co. of $3,500 and the Cash assets to the extend of Payment made to Archie Co less cash discount of $3,430 .
Through which strategy do you believe Lockheed Martin would be most profitable to pursue diversification?
Answer: Related diversification
Explanation:
Here is the complete question:
Lockheed Martin has been a recognized brand in technology for aeronautics and space systems fordecades. The U.S. government is Lockheed Martin’s main customer. Recently, as large-scale military actions have decreased across the globe, the government has been consuming less of Lockheed Martin’sofferings.
As a top of executive of Lockheed Martin, you’ve been asked to consider the opportunities to diversify into new markets in order to remain competitive and continue to increase profits.
Through which strategy do you believe Lockheed Martin would be most profitable to pursue diversification?
Related diversification occurs when a business or an organization expands its activities into similar product lines that to the ones it currently offers.
An example of related diversification is when a computer manufacturer starts making calculators.
By pursuing related diversification, Martin is exploring innovative products which are still within aeronautics scope.
According to the international fisher effect (IFE), the exchange rate percentage change should be approximately equal to the differential in income levels between two countries.
a. True
b. False
The price level increases. The short-run aggregate supply curve will Choose one: A. shift to the right. B. shift to the left. C. remain unchanged.
Answer:
Option C, remain unchanged, is the right answer.
Explanation:
Option C is correct because the increase in the price level will result in the movement along with the given supply curve but in the question, option A says shifts to the right and in option B it says the shift to the left. Therefore these options are wrong. However, the supply curve remains the same because due to an increase in the price level the supply curve does not shift. Therefore option C will be the right option.
Pell Corporation is a company that manufactures computers. Assume that Pell: allocates manufacturing overhead based on machine hours estimated 9,000 machine hours and $ 90, 000 of manufacturing overhead costs actually used 15,000 machine hours and incurred the following actual costs: (click the icon to view the actual costs.) The company allocated manufacturing overhead of $150, 000 using a predetermined overhead rate of $ 10.00 per machine hour. The total actual manufacturing overhead costs are $84. What entry would Pell make to adjust the manufacturing overhead account for overallocated or underallocated overload?
Answer:
Adjusting entry is given below
Explanation:
DATA
Estimated Overhead = $150,000
Actual Overhead = $84,000
Under/Over allocated =?
Solution
Under/Over allocated Overhead = Estimated Overhead - Actual Overhead
Under/Over allocated Overhead = $150,000 - $84,000
Under/Over allocated Overhead = $66,000
We had over-allocated manufacturing overhead with $66,000
To adjust manufacturing Overhead account we should make the following entry
Entry DEBIT CREDIT
Manufacturing Overhead $66,000
Cost of goods sold $66,000
Principal-principal conflicts occur within one class of principals, such as a disagreement among certain majority stockholders and other majority stockholders.
a. True
b. False
Answer: False
Explanation:
The principal to principal conflict typically exists between the two main categories of shareholders, which are the controlling shareholders and the second one which is the minority shareholders
Therefore, the analysis in the question that the principal-principal conflicts occur within one class of principals, such as a disagreement among certain majority stockholders and other majority stockholders is not true.
Even though most corporate bonds in the united states make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of 1000,20 years to maturity, and a coupon rate of 6.6 percent paid annually.
If the yield to maturity is 8.9 percent, what is the current price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
Price of bond = $786.86
Explanation:
The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
Value of Bond = PV of interest + PV of RV
The value of bond would be worked out as follows:
Step 1
Calculate the PV of interest payments
Annual interest payment
= 6.6% × 1,000× 1/2= 33
PV of interest payment = A ×(1- (1+r)^(-n))/r
r- semi-annual yield = 8.9%/2 = 4.45 %
n- 20× 2= 40
PV of interest payment= 33 × (1-(1.0445^(-40)/0.0445 = 611.611
Step 2
PV of redemption Value
PV = RV × (1+r)^(-n)
PV = 1,000 × (1.0445)^(-40) = 175.25
Step 3
Price of bond
Price of bond= 611.611 + 175.25 = 786.862
Price of bond = $786.86
Assume ExxonMobil's price dropped to $35 overnight. Given the dividend growth rate of ExxonMobil of 8.00% and the last annual dividend of $1.70, what is the implied required rate of return necessary to justify the new lower market price of $ 35? What is the implied required rate of return necessary to justify the new lower market price of $ 35?
Answer:
Re = 13.26%
Explanation:
we can use the dividend growth model:
P₀ = Div₁ / (Re - g)
P₀ = $35Div₁ = $1.70 x 1.08 = $1.836g = 8%Re = cost of equity or required rate of return = ?$35 = $1.836 / (Re - 0.08)
Re - 0.08 = $1.836 / $35 = 0.0526
Re = 0.0526 + 0.08 = 0.1326 = 13.26%
"In order to be classified as a _______________, a firm must be owned by the people who run it on a day-to-day basis and cannot have publicly issued stock."
Answer:
private company
Explanation:
a private company is a company whose shares are not sold publicly - they are not traded on the public stock exchange. they also owned by the people who run them and not by managers.
Private firms are not bound by the Securities and Exchange Commission's (SEC) filing requirement.
Based on the HEADLINE article titled "Inflation and the Weimar Republic," which of the following is the best illustration of the wealth effect of inflation?
a. Workers were often paid daily and sometimes two or three times a day.
b. Debtors sought out creditors to pay them in valueless currency.
c. Profits fell as employees demanded frequent wage adjustments.
d. Businessmen traveling around the country found themselves borrowing funds from their customers each stage of the way. The cash they'd allocated for the entire trip barely sufficed to pay the way to the next stop."
Answer: Businessmen traveling around the country found themselves borrowing funds from their customers each stage of the way. The cash they'd allocated for the entire trip barely sufficed to pay the way to the next stop."
Explanation:
Inflation is when there is a general increase in the prices of goods and services on the economy.
The best illustration of the wealth effect of inflation based on the article titled "Inflation and the Weimar Republic," is that businessmen traveling around the country found themselves borrowing funds from their customers each stage of the way. The cash they'd allocated for the entire trip barely sufficed to pay the way to the next stop."
This is because when there is inflation, theee will be rise in price and hence, the money the businessmen wanted to use won't be enough to get meet their needs hence they'll need more funds.
Crystal Apple Sales Company began 2014 with cash of $2,000, inventory of $3,600 (200 crystal apples that cost $18 each), $2,500 of common stock, and $3,100 of retained earnings. The following events occurred during 2014.
1. Crystal Apple purchased additional inventory twice during 2018. The first purchase consisted of 800 apples that cost $20 each, and the second consisted of 1,200 apples that cost $24 each. The purchases were on account.
2. The company sold 2,040 apples for cash at a selling price of $40 each.
3. The company paid $44,800 cash on accounts payable for inventory purchases.
4. Crystal Apple paid $26,000 cash for operating expenses.
5. Assume an income tax rate of 30 percent. Crystal Apple paid income tax expense in cash.
Required:
a. Determine the ending inventory and cost of goods sold using the three different cost flow assumptions: FIFO, LIFO, and Weighted Average.
b. Prepare an income statement, a balance sheet, and a statement of cash flows under each of the three cost flow assumptions.
Answer and Explanation:
a. The computation of ending inventory and cost of goods sold using the three different cost flow assumptions: FIFO, LIFO, and Weighted Average is shown below:-
Cost of goods sold = (200 × $18) + (800 × $20) + (1,040 × (2,040-200-800)
= (200 × $18) + (800 × $20) + (1,040 × $24)
= $3,600 + $16,000 + $24,960
= $44,560
Ending Inventory Under FIFO = (1,200 - 1,040) × (2,040-200-800)
= 160 × $24
= $3,840
Under LIFO method
Cost of goods sold is
= (1,200 × $24) + (800 × $20) + (40 × $18)
= $28,800 + $16,000 + $720
= $45,520
Ending Inventory Under LIFO is
= (200 - 40) × $18
= 160 × $18
= $2,880
Weighted Average cost flow Assumption
Weighted Average cost per apple = Cost of Beginning inventory and purchase ÷ Total apple available
Cost of Beginning inventory and purchases is
= (200 × $18) + (800 × $20) + (1,200 × $24)
= $3,600 + $16,000 + $28,800
= $48,400
Total apples available is
= 200 + 800 + 1,200
= 2,200
Weighted Average cost per apple is
= $48,400 ÷ 2,200
= $22
Cost of goods sold is
= 2,040 × $22
= $44,880
Ending Inventory is
= 160 × $22
= $3,520
b. The Preparation of income statement, a balance sheet, and a statement of cash flows under each of the three cost flow assumptions is prepared below:-
Income Statement Amount
Sales (2,040 × $40) $81,600
Less: Cost of goods sold ($44,560)
Gross Profit $37,040
Less: Operating Expenses ($26,000)
Income before income taxes $11,040
Less: Income tax (30% × $11,280) ($3,312)
Net Income $7,728
Balance Sheet
Assets
Cash $9,488
Inventory $3,840
Total Assets $13,328
Liabilities and Stockholder's Equity
Common Stock $2,500
Retained Earnings $10,828
Total Liabilities and Equity $13,328
Working note
cash = (opening + Sales - Purchases - Operating expenses - Income tax expenses )
= $2,000 + $81,600 - $44,800 - $26,000 - $3,312
= $9,488
Retained earning = (Opening + Net Income)
= $3,100 + $7,728
= $10,828
Statement of Cash Flow
Cash Flow from Operating Activities
Cash Sales $81,600
Payment to Accounts Payable ($44,800)
Operating Expenses ($26,000)
Income tax paid ($3,312)
Net Increase in cash and
cash equivalents $7,488
Add: Opening Cash and
cash equivalents $2,000
Closing Cash and cash equivalents $9,488
LIFO cost flow Assumption
Income Statement
Sales (2,040 × $40) $81,600
Less: Cost of goods sold ($45,520)
Gross Profit $36,080
Less: Operating Expenses ($26,000)
Income before income taxes $10,080
Less: Income tax (30% × $10,080) ($3,024)
Net Income $7,056
Balance Sheet
Assets
Cash $9,776
Inventory $2,880
Total Assets $12,656
Liabilities and Stockholder's Equity
Common Stock $2,500
Retained Earnings $10,156
Total Liabilities and Equity $12,656
Working note:-
Cash = (opening + Sales - Purchases payment - Operating expenses -Income tax expenses)
= $2,000 + $81,600 - $44,800 - $26,000 - $3,024
= $9,776
Retained earning = (Opening + Net Income)
= $3,100 + $7,056
= $10,156
Statement of Cash Flows
Cash Flow from Operating Activities
Cash Sales $81,600
Payment to Accounts Payable ($44,800)
Operating Expenses ($26,000)
Income tax paid ($3,024)
Net Increase in cash and
cash equivalents $7,776
Add: Opening Cash and
cash equivalents $2,000
Closing Cash and cash equivalents $9,776
Weighted Average cost flow Assumption
Income Statement
Sales (2,040 × $40) $81,600
Less: Cost of goods sold ($44,880)
Gross Profit $36,720
Less: Operating Expenses ($26,000)
Income before income taxes $10,720
Less: Income tax (30% × $10,720) ($3,216)
Net Income $7,504
Balance Sheet
Assets
Cash $9,584
Inventory $3,520
Total Assets $13,104
Liabilities and Stockholder's Equity
Common Stock $2,500
Retained Earnings $10,604
Total Liabilities and Equity $13,104
Working note
Cash = opening + Sales - Purchases payment - Operating expenses - Income tax expenses )
= $2,000 + $81,600 - $44,800 - $26,000 - $3,126
= $9,584
Retained earning = (Opening + Net Income)
= $3,100 + $7,504
= $10,604
Statement of Cash Flows
Cash Flow from Operating Activities
Cash Sales $81,600
Payment to Accounts Payable ($44,800)
Operating Expenses ($26,000)
Income tax paid ($3,216)
Net Increase in cash and
cash equivalents $7,584
Add: Opening Cash and
cash equivalents $2,000
Closing Cash and
cash equivalents $9,584
High-Low Method Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 80,000 $25,100,000 92,000 27,206,000 120,000 32,120,000 a. Determine the variable cost per unit a
Answer:
Variable cost per unit= $175.5
Explanation:
Giving the following information:
Units Produced Total Costs
80,000 $25,100,000
92,000 $27,206,000
120,000 $32,120,000
To calculate the variable cost per unit under the high-low method, we need to use the following formula:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (32,120,000 - 25,100,000) / (120,000 - 80,000)
Variable cost per unit= 7,020,000 / 40,000
Variable cost per unit= $175.5
Compute the missing amounts. (Enter the contribution margin ratio to nearest percent, X%.)
A B C
Sales price per unit $200 $4,000 $5,220
Variable costs per unit 80 1,000 2,088
Total fixed costs 73,200 660,000 3,758,400
Target profit 266,760 3,000,000 3,132,000
Calculate:
Contribution margin per unit
Contribution margin ratio
Required units to break even
Required sales dollars to break even
Required units to achieve target profit
Answer:
Contribution margin per unit
A = $120
B = $3,000
C = $3,132
Contribution margin ratio
A = 60%
B = 75%
C = 60%
Units to break even
A = 610 units
B = 220 units
C = 1,200 units
Sales dollars to break even
A = $122,000
B = $880,000
C = $6,264,000
Units to achieve target profit
A = 2,833 units
B = 1220 units
C = 2,200 units
Explanation:
Contribution margin per unit
Contribution margin = Sales - Variable Costs
A B C
Sales price per unit $200 $4,000 $5,220
Variable costs per unit ($80) ($1,000) ($2,088)
Contribution Margin $120 $3,000 $3,132
Contribution margin ratio
Contribution margin ratio = Contribution / Sales × 100
A = $120 / $200 × 100
= 60%
B = $3,000 / $4,000 × 100
= 75%
C = $3,132 / $5,220 × 100
= 60%
Units to break even
Units to break even = Fixed Cost ÷ Contribution margin per unit
A = $73,200 ÷ $120
= 610 units
B = $660,000 ÷ $3,000
= 220 units
C = $3,758,400 ÷ $3,132
= 1,200 units
Sales dollars to break even
Units to break even = Fixed Cost ÷ Contribution margin ratio
A = $73,200 ÷ 60%
= $122,000
B = $660,000 ÷ 75%
= $880,000
C = $3,758,400 ÷ 60%
= $6,264,000
Units to achieve target profit
Units to achieve target profit = Fixed Cost + Target Profit ÷ Contribution margin per unit
A = $73,200 + 266,760 ÷ $120
= 2,833 units
B = $660,000 + 3,000,000 ÷ $3,000
= 1220 units
C = $3,758,400 + 3,132,000 ÷ $3,132
= 2,200 units
you are planning t save for retirement over the next 30 years. To do this, you will invest $850 per month in a stock account and $350 per month in a bond account. The return of the stock account is expected to be 10 percent, and the bond account will pay 6 percent. When you retire, you will combine your money into an account assuming a 25 year withdrawal period? stock account value retirement
Answer:
$13,287.70
Explanation:
The computation of the amount at withdrawal is to be determined by using the excel spreadsheet in which we applied the formulas like future value, PMT
Given that
Time period = 30 years
Withdrawal period = 25 years
Invested amount in stock account = $850
Invested amount in bond account = $350
Return on stock = 10%
Return on bond = 6%
Based on the above information
The withdrawal amount os $13,287.70
Integrated Potato Chips just paid a $2.7 per share dividend. You expect the dividend to grow steadily at a rate of 6% per year.
Required:
a. What is the expected dividend in each of the next 3 years?
b. If the discount rate for the stock is 12%, at what price will the stock sell today?
c. What is the expected stock price 3 years from now?
Answer:
a.
D1 = $2.862 rounded off to $2.86
D2 = $3.03372 rounded off to $3.03
D3 = $3.2157432 rounded off to $3.22
b.
Price today is $47.7
c.
3 years from now the price will be $56.81
Explanation:
a.
The dividend growth is expected to be constant forever. Thus, the dividend for such a stock will be calculated as follows,
Dn = D0 * (1+g)^n
Where,
D0 is the most recently paid dividendg is the constant growth raten is the number of periods/yearsD1 = 2.7 * (1+0.06)^1 = $2.862 rounded off to $2.86
D2 = 2.7 * (1+0.06)^2 = $3.03372 rounded off to $3.03
D3 = 2.7 * (1+0.06)^3 = $3.2157432 rounded off to $3.22
b.
The constant growth model of DDM will be used to calculate the price of the stock today. The formula for the stock price today under this model is,
P0 = D1 / (r - g)
Where,
r is the required rate of return or discount rateP0 = 2.862 / (0.12 - 0.06)
P0 = $47.7
c.
To calculate the price of the stock 3 years from now, we will use the constant growth model. However, instead of using D1, we will use D4 to calculate the P3 or price 3 years from now.
P3 = 2.7 * (1+0.06)^4 / (0.12 - 0.06)
P3 = $56.81
The desired reserve ratio is 3 percent. Robert deposits $3,000 in Bank America. Bank America keeps its minimum desired reserves and lends the excess to Fredrica. How much does Bank America lend to Fredrica?
Answer: $2,910
Explanation:
Bank America is required by law to keep 3% of all deposits as reserves and they can lend the rest which they did to Fredrica.
The amount they lent to Fredrica therefore is;
= 3,000 (1 - 3%)
= 3,000 * 97%
= $2,910
Danaher Woodworking Corporation produces fine furniture. The company uses a job-order costing system in which its predetermined overhead rate is based on capacity. The capacity of the factory is determined by the capacity of its constraint, which is an automated lathe. Additional information is provided below for the most recent month: Estimates at the beginning of the month: Estimated total fixed manufacturing overhead $ 36,400 Capacity of the lathe 400 hours Actual results: Actual total fixed manufacturing overhead $ 36,400 Actual hours of lathe use 380 hours Required: a. Calculate the predetermined overhead rate based on capacity. b. Calculate the manufacturing overhead applied. c. Calculate the cost of unused capacity.
Answer:
a. Calculate the predetermined overhead rate based on capacity.
$91 per lathe hourb. Calculate the manufacturing overhead applied.
$34,580c. Calculate the cost of unused capacity.
$1,820Explanation:
Estimated total fixed manufacturing overhead $36,400
Capacity of the lathe 400 hours
predetermined overhead rate per lathe hour = $36,400 / 400 = $91
actual results:
Actual total fixed manufacturing overhead $36,400
Actual hours of lathe use 380 hours
applied overhead = $91 x 380 lathe hours = $34,580
cost of unused capacity = $36,400 - $34,580 = $1,820
Some companies resort to questionable means to enforce computer use policies. They use surveillance software to monitor employees' IT use. Every activity on the employee's computer is simultaneously tracked and recorded. Everything that the employee sees on their monitor can also be seen on the monitor of the person tracking them. The same software is used to monitor children's online activities and monitor spouses suspected on infidelity. Should employees be treated as undisciplined children of cheating spouses
Answer:
Its appropriate because the company monitors its employee's use of IT system during office time not their personal devices.
Explanation:
If the company is monitoring closely its own IT systems then it is appropriate as the company is keen in increasing the employee productivity during office time. This is also appropriate if the employee is told about the close monitoring because he will not access his personal things which includes payments of utilities and other item using online banking. So this is appropriate as it is not meant to harm the employee and is part of improving employee performance.
Listed below are accounts that appear in financial statements.
Required: Identify the financial statement(s) in which each of the following three accounts would be found. Note: An account may appear in more than one financial statement.
Balance sheet Income statement statement of changes
in retained earning
Dividends
Deffered Revenue
Service Revenue
Answer:
Dividends - Statement of Changes in Retained Earning
Dividends are payments to shareholders from a company's net income. They are derived from the Statement of Changes in Retained Earning because this is where Net Income is sent to. After they are deducted from Retained Earnings, the Earnings form part of Equity.
Differed Revenue - Balance Sheet
Differed Revenue refers to money that was received from a customer or client for goods and/or services that have not yet been delivered. The business will treat them as a liability until they are delivered so they will go under Current Liabilities in the Balance Sheet assuming they are to be fulfilled in 12 months or less which is usually the case.
Service Revenue - Income Statement
These are revenue that the business earns for providing a service when their main source of revenue is by selling goods. It is listed in the Income Statement just after Revenue and is added to Revenue to get Total Revenue.
Southland Company is preparing a cash budget for August. The company has $16,300 cash at the beginning of August and anticipates $124,200 in cash receipts and $133,800 in cash payments during August. Southland Company wants to maintain a minimum cash balance of $10,000. The preliminary cash balance at the end of August before any loan activity is:
Future deductible amounts would be caused by Select one: a. Estimated Expenses and Prepaid Expenses b. Estimated Expenses, but not Prepaid Expenses c. Prepaid Expenses, but not Estimated Expenses d. Neither Estimated Expenses nor Prepaid Expenses
Answer:
The correct answer is:
Estimated Expenses, but not Prepaid Expenses (b.)
Explanation:
An estimated expense is a forecast of the amount of costs that will be incurred in future, to fulfil a transaction. An example might be an amount forecasted to cover a warranty cost for a purchased product under warranty in case a fault develops. Estimated expenses are not debited at the time of projection, but at a certain time in the future, hence they are called Future deductible amounts. On the other hand, Prepaid Expense is a type of expenditure that has not been recorded yet by a company as an expense, but the amount has been paid in advance for the good or service, even though the product has not been consumed at the time of payment.
The negotiated ________ agreement outlines the rights of both parties in the negotiating process, including work hours, wages, employee benefits and grievance procedures.
Answer:
labor-management
Explanation:
Labor-management agreement is when the leaders and the employees of a company make an agreement that has the goal of protecting the rights of the parties involved and define aspects like salaries and working conditions of the employees. According to this, the answer is that the negotiated labor-management agreement outlines the rights of both parties in the negotiating process, including work hours, wages, employee benefits and grievance procedures because this agreement between employees and employers establishes the conditions the employees will receive for their services to avoid disputes and protect the rights of the parties.
Under the constant-money-growth-rate rule, the annual money supply will be constant at the average annual growth rate of:________.
Answer:
real GDP
Explanation:
The above rule was proposed by Milton Friedman that the money supplied by the central bank be increased by constant percentage on annual basis. In other words, constant money growth rate rule suggested money supply growth rate be equal to GDP growth rate annually.
According to Friedman, monetary policy contributes to fluctuation in an economy. He suggested that the best way to stabilize a fluctuating economy is to allow the central bank increase money supply in the long run by a targeted amount annually irrespective of the situation of the economy.
Consider a fast food café of your choice. Apply 4 V’s of Operation. Describe each V as ‘High’, ‘Low’ or ‘Moderate’ with one liner reason.\
Answer:
The classification of the particular question is outlined in the following segment including its clarification.
Explanation:
For both the data analysis, the "Jack throughout the Box" Fast foodservice Business throughout Florida, the US should be regarded. The 4Vs including its cafe's business seem to be about the volume, variety, differences, as well as accessibility including its brand operational activities. The 4V high meaning is large, small to medium-sized in terminology.
Volume: The amount including its corporation that has made the drinks sector profitable in designed to offer the sector people good of profits. In such a product, the need for another quantity is strong regarding the market pricing and therefore profits.Variety: Again for F and B platforms the range of foods the company has seems to be of significant importance. Taking into consideration the need for other sales on either the road carrier as well as selecting the enterprise must have ample choices in their beverages.Variation: Variations throughout the numerous perspectives including its deal in the reduced variety establishments need modifications that fit the Florida information of the product. For a company like Jack throughout the Box, this varying want is medium through business objectives.Visibility: The visibility of something like the company for something like the coffee shop on the roadside that is created to give the company's productivity. The prominence including its company is important for its somewhat cafe, which then in terms of improvement is taken into consideration to have been medium.Baxter Company produces Frisbees using a threeminusstep sequential process that includes molding, coloring and finishing. At what stage would the sets be allocated Manufacturing Overhead?
The options are:
A) When the Frisbees are in WIP InventoryWIP Inventory-Molding
B) When the Frisbees are in WIP InventoryWIP Inventory-Finishing
C) When the Frisbees are in WIP InventoryWIP Inventory-Coloring
D) All of the above
Answer:
D) All of the above
Explanation:
Manufacturing overhead is defined as all manufacturing cost incurred in producing a good that cannot be traced directly to the product in an economically feasible way.
For example processes in Work In Process stage of manufacturing such as labour and utility expenses are manufacturing overhead costs. Work in process is the manufacturing stage where goods are converted from raw goods to partially finished goods.
So all the options given which are on the WIP are correct.
Annual Worth and Capital Recovery Calculations U S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless steel round bars that is expected to cost $13 million now and another $10 million 1 year from now. If total operating costs will be $1.2 million per year starting 1 year from now, and the estimated salvage value of the plant is virtually zero, how much must the company make annually in years 1 through 10 to recover its investment plus a return of 15% per year?
Answer:
$5,601,632
Explanation:
we must first calculate the present value of the required investments and the annual costs:
initial investment = $13,000,000 + $10,000,000/1.1 = $22,090,909
annual costs = $1,200,000 x 5.0188 (PV annuity factor, 15%, 10 periods) = $6,022,560
present value of initial investment + annual costs = $28,113,469
we must calculate an annuity that has a present value = $28,113,469 with a 15% discount rate and 10 years:
annuity = $28,113,469 / 5.0188 = $5,601,631.67 ≈ $5,601,632
Meginnis Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.20 Direct labor $ 3.75 Variable manufacturing overhead $ 1.65 Fixed manufacturing overhead $ 2.60 Fixed selling expense $ 0.50 Fixed administrative expense $ 0.40 Sales commissions $ 1.50 Variable administrative expense $ 0.50 If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to
Answer:
$53,700
Explanation:
Direct manufacturing cost = (Direct material per unit + Direct labor per unit) * Units produced
=($5.20 + $3.75) * 6,000 units
=$8.95 * 6,000
=$53,700
The total amount of direct manufacturing cost incurred is closest to $53,700
Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format segmented income statement as shown: Total Company North South Sales $ 675,000 $ 450,000 $ 225,000 Variable expenses 405,000 315,000 90,000 Contribution margin 270,000 135,000 135,000 Traceable fixed expenses 150,000 75,000 75,000 Segment margin 120,000 $ 60,000 $ 60,000 Common fixed expenses 65,000 Net operating income $ 55,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region. 3. Compute the break-even point in dollar sales for the South region.
Answer:
Piedmont Company
1. Computation of the Companywide break-even point:
Break-even point = Fixed Cost/Contribution per margin
= $215,000/$27 = 7,963 units
2. Computation of the break-even point in dollar sales for the North region:
Break-even point in dollar sales = Fixed Costs/Contribution margin percentage
= $107,500/30% = $358,333
3. Computation of the break-even point in dollar sales for the South region:
= $107,500/60% = $179,1667
Explanation:
a) Data
Piedmont Company Contribution format segmented income statement as shown:
Total Company North South
Sales $ 675,000 $ 450,000 $ 225,000
Variable expenses 405,000 315,000 90,000
Contribution margin 270,000 135,000 135,000
Traceable fixed expenses 150,000 75,000 75,000
Segment margin 120,000 $ 60,000 $ 60,000
Common fixed expenses 65,000 32,500 32,500
Net operating income $ 55,000 $27,500 $27,500
NB: The common fixed expenses must be shared in some way to calculate the break-even points.
b) Total fixed costs:
Company-wide = $215,000 ($150,000 + 65,000)
North = $107,500 ($75,000 + 32,500)
South = $107,500 ($75,000 + 32,500)
c) We assume that the sales unit of 5,000 each for the two regions. Total units = 10,000
d) Contribution per margin:
Company-wide = $270,000/10,000 = $27
North = $135,000/5,000 = $27
South = $135,000/5,000 = $27
e) Contribution margin percentage:
= Contribution/Sales x 100
Company-wide = $270,000/$675,000 x 100 = 40%
North = $135,000/$450,000 x 100 = 30%
South = $135,000/$225,000 x 100 = 60%
f) The break-even point is the quantity of sales that must be achieved for the fixed costs to be fully covered and no profit or loss is recorded. It is the point at which fixed costs are equal to the contribution. The contribution is the difference between the sales value and the variable costs.