Answer:
$267,400
Explanation:
Calculation to determine What amount should Stallman report as its December 31 inventory?
Using this formula
December 31 inventory=Goods costing on hand+Goods purchased+FOB shipping point
Let plug in the formula
December 31 inventory=$225,000+$20,400+$22,000
December 31 inventory=$267,400
Therefore the amount that Stallman should report as its December 31 inventory is $267,400
Calculate the current price of a $1,000 par value bond that has a coupon rate of 6 percent, pays coupon interest annually, has 27 years remaining to maturity, and has a current yield to maturity (discount rate) of 15 percent. (Round your answer to 2 decimal places and record without dollar sig
Answer: $413.81
Explanation:
Price of a bond = Present value of coupon payments + Present value of face value
Coupon is a constant payment so is an annuity.
Coupon = 6% * 1,000 = $60
Price of bond = Present value of annuity + Present value of face value
= (Coupon * Present value interest factor of annuity (PVIFA), 27 periods, 15%) + (Face value / (1 + rate) ^ number of periods)
= (60 * 6.514) + (1,000 / (1 + 15%)²⁷
= $413.81
Chance, Inc. sold 5,000 units of its product at a price of $172 per unit. Total variable cost per unit is $131, consisting of $92 in variable production cost and $39 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing.
Answer:
$400,000
Explanation:
Computation for the manufacturing margin for the company under variable costing
Using this formula
Manufacturing margin= Sales - Total variable production cost
Let plug in the formula
Manufacturing margin=( 5,000*$172)- (5,000*$92)
Manufacturing margin=$860,000-$460,000
Manufacturing margin= $400,000
Therefore the manufacturing margin for the company under variable costing is $400,000
ing using a calculator) Jesse Pinkman is thinking about trading cars. He estimates he will still have to borrow $ to pay for his new car. How large will Jesse's monthly car loan payment be if he can get a -year ( equal monthly payments) car loan from the university's credit union at an APR of percent compounded monthly?
Answer:
Monthly car loan payment = $414 (Approx.)
Explanation:
Missing information;
Amount borrow = $29,000
NUmber of payment = 7 year x 12 = 84
Rate = 5.3% yearly = 0.053 / 12 monthly
Find:
Monthly car loan payment
Computation:
PV = $29,000
N = 84
r = 0.053/12
FV = 0
PV = (PMT/r)[1 – 1/(1 + r)ⁿ] + FV/(1 + r)ⁿ
29,000 = [PMT/(0.053/12)][1 – 1/(1 + 0.053/12)^84] + 0
PMT = 413.98
Monthly car loan payment = $414 (Approx.)
Nut and Bolt guy Inc, sells nuts, bolts, fasteners and other related equipment. The CFO projects that net FCF for the next three years will be $11,000, $12,500 and $16,000, respectively. After that, the cash flows are expected to increase by 4.5 percent annually. What is the value of the firm if the WACC is 12.2%?
Answer:
$184791
Explanation:
The calculation of the value of the firm is given below:
Year Future Cash Flow PVF at 12.2% PV of Cash Flow
1 11000 0.891 9801
2 12500 0.794 9925
3 16000 0.708 11328
Total 31054
Present Value of Terminal Value
= [16000 × (1 + 0.045) ÷ 0.122 - 0.045] × 0.708
= [16720 ÷ 0.077] × 0.708
= 153737
Now
value of Firm = 31054 + 153737
= $184791
Inga invested part of her $6000 savings in common stock and the rest in rare stamps. At the end of the year, she realized a gain of 9% on the stock and 12%on the stamps. If her savings now amounts to $6615, how much did she invest in stamps
Answer:
The amount Inga invested in stamps is $2,500.
Explanation:
Let x represents the amount invested in common stock. Therefore, we have:
Amount invested in common stock = x
Amount invested in stamps = 6000 - x
Rc = Rate of gain from common stock = 9%, or 0.09
Rs = Rate of gain from common stock = 12%, or 0.12
Amount of saving now = $6615
Therefore, we have
Amount of saving now = (x * (1 + Rc)) + ((6000 - x) * (1 + Rs)) ………….. (1)
Substituting all the relevant values into equation (1) and then solve for x, we have:
6615= (x * (1 + 0.09)) + ((6000 - x) * (1 + 0.12))
6615 = (x * 1.09) + ((6000 - x) * 1.12)
6615 = 1.09x + (6720 - 1.12x)
6615 = 1.09x + 6720 - 1.12x
6615 - 6720 = 1.09x - 1.12x
-105 = -0.03x
x = -105/-0.03
x = 3,500
Therefore, we have:
Amount invested in stamps = 6000 - x = $6,000 - $3,500 = $2,500
Therefore, the amount Inga invested in stamps is $2,500.
True or false? if false explain. An internally held public debt is like a debt of the left hand owed to the right hand.
Answer:True
Explanation: AN internally held debt is like a debt of the left hand owned to the right hand. This is a true statement. Left hand and right hand is ib the same body. Similarly,internal debit is taken from public of one's own nation. Just like things are in left hand or right hand, it remains in same person. Similarly, internal debit is borrowed from the people of the nation itself and is held within the nation.
Happy Trails, a bicycle rental company, is considering purchasing three additional bicycles. Each bicycle would cost them $249.66. At the end of the first year the increase to their revenues would be $140 per bicycle. At the end of the second year the increase to their revenues again would be $140 per bicycle. Thereafter, there are no increases to their revenues. At which of the following interest rates is the sum of the present values of the additional revenues closest to the price of a bicycle?
a. 5 percent.
b. 6 percent.
c. 7 percent.
d. 8 percent.
Answer:
D
Explanation:
We are to determine the IRR of the purchase
The internal rate of return is a capital budgeting method that is used to determine the profitability of a project.
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
Cash flow in Y0 = -249.66
Cash flow in Y1 = 140
Cash flow in Y2 = 140
IRR = 8
To determine IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button
three (3) State taxes and briefly describe each
Vaughn Manufacturing is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $24 and Vaughn would sell it for $51. The cost to assemble the product is estimated at $14 per unit and the company believes the market would support a price of $61 on the assembled unit. What decision should Vaughn make?
Answer:
Sell before assembly, The company will be better off by $4 Per Unit
Explanation:
Calculation to determine what decision should Vaughn make
PROFIT BEFORE ASSEMBLY
Profit = Sale price - Cost price
Profit= $51 - $24
Profit= $27 Per Unit
PROFIT AFTER ASSEMBLY
First step is calculate the Cost of Assembled Product
Cost of Assembled Product =$24 + $14
Cost of Assembled Product= $38 Per Unit
Now let determine the profit
Profit = Sale price - Cost price
Profit= $61 - $38
Profit = $23 Per Unit
Now let Determine what decision should Vaughn make
Hence, the Profit by selling assembled product is LOWER than selling the Unassembled product by :
$27 Per Unit - $23 Per Unit
= $4 Per Unit
Therefore the decision that Vaughn should make is: Sell before assembly, The company will be better off by $4 Per Unit
What’s the best major among these and why plz .
Business management
Business marketing
Business banking
Answer:
With a strong focus on your employability, our MSc Strategic Business Management is for those wanting an in-depth knowledge and a critical understanding of the key aspects of strategic business and management in a global context. Whether you are a manager, consultant, analyst, or want to pursue a career as an entrepreneur, this one year postgraduate degree helps develop the most important concepts and real world practical models to enhance your career in a rapidly changing work environment.
Explanation:
Business Degree In Marketing
Business Or Marketing Degree
Degree In Marketing
Degree In Marketing Salary
Degree In Marketing Management
Bachelor Degree In Marketing
Degree In Fashion Marketing
Master Degree In Marketing
Bs Degree In Marketing
Masters Degree In Marketing
Online Degree In Marketing
Graduate Degree In Marketing
Degree In Internet Marketing
American Corp. is currently an all-equity firm that has 22,000 shares of stock outstanding with a market price of $27 a share. The current cost of equity is 12 percent and the tax rate is 35 percent. The firm is considering adding $225,000 of debt with a coupon rate of 6.25 percent to its capital structure. The debt will sell at par. What will be the levered value of the equity
Answer: $447,750
Explanation:
The value of a levered firm is calculated as:
= (Number of shares outstanding * Market price) + (Debt * tax rate)
= (22,000 * 27) + (225,000 * 35%)
= $672,750
Equity = Value of levered firm - Debt
= 672,750 - 225,000
= $447,750
type of power based on manager's ability to influence employees with something of value to them.
Answer:
incentive or reward
Explanation:
incentive pay, time and a half pay for overtime are examples
Suppose a chair manufacturer is producing in the short run (with its existing plant and equipment). The manufacturer has observed the following levels of production corresponding to different numbers of workers:
Number of Workers Number of Chairs
1 10
2 18
3 24
4 28
5 30
6 28
7 25
a. Calculate the marginal and average product of labor for this production function.
b. Does this production function exhibit diminishing returns to labor
Answer:
(a)
MP = TPn - TPn-1
AP = TP/Q
No. of workers No. of chairs MP AP
1 10 - 10
2 18 8 9
3 24 6 8
4 28 4 7
5 30 2 6
6 28 - 2 4.6
7 25 -3 3.5
(b) Yes, this production function exhibits diminishing returns to labor. As we increase the number of laborers, the output per worker falls. we will see that the AP is falling with the rise parturient.
Suppose potential income is $80 billion, actual income is $40 billion, and expenditures don't vary with income. If the actual budget deficit is $8 billion and the marginal tax rate is 20 percent, the cyclical deficit:________
a) is $4 billion.
b) is $8 billion.
c) cannot be determined from the given information.
d) is between zero and $8 billion.
XYZ has two divisions: South and West. Overall net operating income is $26,900. South Division's segment margin is $42,800 and West Division's segment margin is $29,900. What is the amount of the common fixed expense not traceable to the individual divisions?
a. $45,800.
b. S56800.
с.$69,700.
d. $72,700.
Answer:
a. $45,800.
Explanation:
The computation of the common fixed expense not traceable is given below
Combined segment margin of two divisions ($42,800 + $29,900) $72,700
Less: net income -$26,900
Non traceable fixed cost $45,800
Hence, the amount of the common fixed expense not traceable to the individual divisions is $45,800
Therefore the option a is correct
A bicycle repair company conducted segmentation research and then targeted their direct mail coupons for a first bike tune-up to that identified customer segment. What basic question did targeting and segmentation answer for the company
Answer:
Who am I trying to reach?
Explanation:
Targeting and segmentation is the process by which a company focuses marketing activities regarding a particular product to a defined customer profile.
Certain criteria like income, age, location, culture and so on can be used as a basis for segmentation.
Basically the question that segmentation and targeting answers is - Who am I trying to reach?
In the given scenario the bicycle repair company conducted segmentation research and then targeted their direct mail coupons for a first bike tune-up to that identified customer segment.
So they answered who they want to sell to.
he preemptive right is important to shareholders because it a. protects bondholders, and thus enables the firm to issue debt with a relatively low interest rate. b. allows managers to buy additional shares below the current market price. c. protects the current shareholders against a dilution of their ownership interests. d. is included in every corporate charter.
Answer:
c. protects the current shareholders against a dilution of their ownership interests.
Explanation:
In the case when the preemptive right should be significant for the shareholders so it basically protect the present shareholders that are opposed to the dilution with respective to the ownership interest
Therefore the option c is correct
And, the other options seems wrong
Assume the marginal tax rate is 10% for the first $20,000 of taxable income, 25% for taxable income from $20,001 to $50,000, and 35% for taxable income above $50,000. If Mr. Smith had taxable income of $80,000, how much tax does he owe
Answer:
the tax amount is $20,000
Explanation:
The computation of the tax amount is given below:
= 10% of $20,000 + ($50,000 - $20,001) × 25% + ($80,000 - $50,000) × 35%
= $2,000 + $7,499.75 + $10,500
= $19,999.75
= $20,000
hence, the tax amount is $20,000
The same should be considered and relevant too
If the U.S. economy is producing at a level that is substantially less than potential GDP and the government's budget deficits are increasing aggregate demand, then ____________________________ is not much of a danger.
Answer:
an inflationary increase in the price level.
Explanation:
Monetary policy can be defined as the actions (macroeconomic policies) adopted and undertaken by the central bank of a particular country to control the money supply and interest rates so as to boost or enhance economic growth. The central bank uses monetary policies to manage inflation, economic growth through long-term interest rates and level of unemployment in a country.
In order to boost economic growth, a monetary policy is implemented to increase money supply (liquidity). Also, it is used to prevent inflation by reducing money supply.
An inflationary gap, also referred to as an expansionary gap in economics, is typically used for measuring the difference between the gross domestic product (GDP) and the current level of Real Gross Domestic Products that exists when a country's economy is gauged at a full employment rate. Consequently, this situation causes the price of goods and services to go up with a low income level among the people living in the country.
A budget deficit is the amount by which spending exceeds income.
All other factors held constant or all things being equal (ceteris paribus), an increase in government's budget deficit drives the interest rate up.
Generally, when there's a deficit in government budget, they resort to issuing more bonds or borrowing money from creditors. These creditors are likely to be sceptical about the government's ability to repay the debt and as such would increase the interest rate.
Hence, an inflationary increase in the price level of goods and services is not much of a danger if the U.S. economy is producing at a level that is substantially less than potential gross domestic product (GDP) and the aggregate demand is being increased by government's budget deficits.
When considering buying a new carpet that costs $3000, Regina was told there was a rebate of 10 percent. How would this affect Regina's purchase?
a) she would get back 10% of her $3000.
b) she would be less likely to buy this carpet.
c) she would have to pay 10% more money in addition to the $3000.
d) she would not have to pay taxes over 10% of the purchase price.
Answer: a) she would get back 10% of her $3000.
Answer: She would get back 10 percent of her $3000.
If the State of California raised the average state consumer sales tax rate from 9.25 percent to 15 percent, then this sales tax will have its heavist impact on and raise the marginal cost curves for California businesses.
a. True
b. False
Answer: False
Explanation:
Consumer sales tax is not charged to businesses but rather to the customers through a business. The tax would therefore increase the prices of goods and services for consumers and not the businesses.
The businesses would therefore not see their marginal cost curves increase. They could still be affected however, by Californians demanding less goods and services because it is now more expensive for them on account of the new sales tax.
Cucina Corp. signed a new installment note on January 1, 2018, and deposited the proceeds of $50,000 in its bank account. The note has a three-year term, compounds 5 percent interest annually, and requires an annual installment payment on December 31. Cucina Corp. has a December 31 year-end and adjusts its accounts only at year-end. Required:
Question Completion:
Required:
1.Use an online application, such as the loan calculator with annual payments at mycalculators.com, to generate an amortization schedule. Enter that information into an amortization schedule with the following headings: Year, Beginning Notes Payable, Interest Expense, Repaid Principal on Notes Payable, and Ending Notes Payable.
2.Prepare the journal entries on (a) January 1, 2018, and December 31 of (b) 2018, (c) 2019, and (d) 2020.
3.If Cucina Corp.’s year-end were March 31, rather than December 31, prepare the adjusting journal entry it would make for this note on March 31, 2018?
Answer:
Cucina Corp.
1. Annual Amortization Schedule
Year Beginning Interest Expense Repaid Principal Ending Notes
Notes Payable on Notes Payable Payable
1 $50,000.00 $2,140.23 $15,842.25 $34,157.68
2 $34,157.68 $1,329.68 $16,652.80 $17,504.84
3 $17,504.84 $477.71 $17,504.77 $0.00
2. (a) January 1, 2018
Debit Cash $50,000
Credit Installment Note Payable $50,000
To record the issuance of the installment note.
December 31 of
(b) 2018
Debit Interest Expense $2,140.23
Debit Installment Note Payable $15,842.25
Credit Cash $17,982.48
To record the first installment repayment, including interest.
(c) 2019
Debit Interest Expense $1,329.68
Debit Installment Note Payable $16,652.80
Credit Cash $17,982.48
To record the second installment repayment, including interest.
(d) 2020
Debit Interest Expense $477.71
Debit Installment Note Payable $17,504.77
Credit Cash $17,982.48
To record the third and final installment repayment, including interest.
3. (b) 2018
Debit Interest Expense $625
Credit Interest Payable $625
To accrue interest expense for the year ($50,000 * 5% * 3/12)
Explanation:
a) Data and Calculations:
Installment note payable obtained on January 1, 2018 = $50,000
Period of note payable = 3 years
Interest rate = 5% compounded annually
Annual interest payment = December 31
Your company buys a computer system from IBM for $3 million and pays IBM $200,000 to install the computer system. The $3 million is on credit and your company pays $100,000 of interest on the loan in the current year. The acquisition cost of the computer system at the end of the current year will be
Answer:
$3.2 million
Explanation:
Calculation to determine what The acquisition cost of the computer system at the end of the current year will be
Using this formula
Acquisition cost=Purchase price+ Installation cost
Let plug in the morning
Acquisition cost= $3 million +$200,000
Acquisition cost=$3.2 million
Therefore The acquisition cost of the computer system at the end of the current year will be $3.2 million
Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $3,500 from sales $201,000, variable costs $175,000, and fixed costs $29,500. If the Big Bart line is eliminated, $20,000 of fixed costs will remain. Prepare an analysis showing whether the Big Bart line should be eliminated.
Answer:
Net Income Analysis
Continue Eliminate Increase/Decrease
Sales 201,000 0 201,000
Less: Variable cost 175,000 0 175,000
Contribution margin 26,000 0 26,000
Less: Fixed expenses 29,500 20,000 9,500
Net Income -3,500 20,000 -16,500
Therefore, the Big Bart line should not be continued.
A project has an initial cost of $44,000. Expected cash flows as a result of this project are projected as follows. Calculate the payback period for this project. Assume a discount rate of 9%.
Answer:
3.5 year
Explanation:
The computation of the payback period is given below:
Year Cash Inflow Cumulative Cash Inflow
1 $10,000 $10,000
2 $10,000 $20,000
3 $15,000 $35,000
4 $18,000 $53,000
Now the payback period is
= 3 year + ($53,000 - $44,000) ÷ $18,000
= 3 year + 0.5
= 3.5 year
The first three cars I bought all fell apart around 50,000 miles. It was called planned obsolescence and no one seemed to care until companies entered the market and promised 70,000, then 80,000, and finally 100,000 warranties. What sets a great car apart from a good one now is not the quality, which is assumed, but performance, safety and fuel economy. A car that can achieve all three is highly sought after. In the automotive market, performance, safety and fuel economy are sterling examples of:
Answer:
Order Winners
Explanation:
Order winners basically mean the winning attributes that customers will seek in order to successfully buy a product.
This is in fact because a customer's decision in buying a product is based on the value for money, so things such as price, availability, performance, and design are things to be considered by customers before deciding on the product.
As in the case above, the winning attributes in making a car great are performance, safety, and fuel economy. If such is found in a car then it would lead the car to be highly sought by the customers.
Why do mortgage brokers normally have no risk in the mortgage process? A. The broker usually does not loan the money. B. The mortgage broker doesn't sell you the property.
C. The mortgage broker simply brings the home buyer and the lender together. D. All of the above
Answer
D, all of the above.
Explanation:
The discount rate is a. the rate at which the Fed lends to banks. b. the rate at which public banks lend to other public banks. c. the percentage difference between the face value of a Treasury bond and what the Fed pays for it. d. the percentage of deposits banks hold as excess reserves.
Answer:
a. the rate at which the Fed lends to banks
Explanation:
The discount rate is the interest rate that are applied for measuring the present value of future cash flows
It is the rate where the federal reserve would lends to the financial insituation or bank
So as per the given options, the option a is correct
And, the other options should be considerd as wrong or incorrect
Rev. Elvin Snider is the ordained minister at Crossroads United Methodist Church. His salary on his Form W-2 is $20,000. He also receives a $12,000 housing allowance. His housing costs for the year are $14,000. What is Rev. Snider's self-employment income?
Answer: $32000
Explanation:
It should be noted that ministers or clergymen can exclude the home rental value or housing cost from the calculation of the gross income
Rev. Snider's self-employment income
Therefore, in this case, Rev. Snider's self-employment income will be:
Salary = $20,000
Add: Housing allowance = $12000
Total = $32000
Chad is the founder of a firm producing self-driving vehicles. Because the industry is so new and chaotic, Chad favors a top-down strategic planning approach in which he exerts strong control over all aspects of the business, from product development and design to manufacturing and marketing. What is wrong with this scenario
Answer:
a. The self-driving vehicle industry is changing too much for the top- down approach to be effective.
Explanation:
The top-down strategic planning approach involves the company goals and their subdivisions. The aim is to gradually move from the top to down in a specific hierarchy. This approach lies on higher authority and in contrast the bottom-up strategy favors decision making that gives complete staff a voice.