Answer:
D.whene the fed buys Treasury bonds,there are more bonds on
Answer:
C. When the Fed buys Treasury bonds, it increases the amount of deposits in people's bank account.
Explanation:
Trust me
Standard Direct Materials Cost per Unit Crazy Delicious Inc. produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (1,800 bars) are as follows: Ingredient Quantity Price Cocoa 480 lbs. $0.30 per lb. Sugar 150 lbs. $0.60 per lb. Milk 120 gal. $1.20 per gal. Determine the standard direct materials cost per bar of chocolate. If required, round to the nearest cent. $fill in the blank 1 per bar
Answer:
Crazy Delicious Inc.
The standard direct materials cost per bar of chocolate is:
= $0.21.
Explanation:
a) Data and Calculations:
A batch of chocolate = 1,800 bars
Ingredient Quantity Price Total Cost
Cocoa 480 lbs. $0.30 per lb. $144.00
Sugar 150 lbs. $0.60 per lb. 90.00
Milk 120 gal. $1.20 per gal. 144.00
Total standard materials costs $378.00
Standard direct materials cost per bar $0.21 ($378/1,800)
b) The standard direct materials cost per bar is computed as the dividend of total direct material costs per batch divided by the batch quantity.
The Diamond Outlet has current earnings per share of $1.96 and an expected earnings growth rate of 2.2 percent. The required return on the stock is 13 percent and the current book value per share is $12.70. What is the current market value of this stock
Answer:
the current market value of this stock is $15.96
Explanation:
given
current earnings = $1.96 per share
growth rate = 2.2 percent
return on the stock = 13 percent
current book value = $12.70 per share
solution
first we get here return on equity that is
return on equity = [ current earning per share × ( 1 + growth ) ] ÷ book value per share ....................1
return on equity = [tex]\frac{1.96 + (1+0.022)}{12.70}[/tex]
return on equity =15.77 %
and
now we get here payout ration that is
growth rate = retention ration × ROE ....................2
put here value
2.2% = (1 - payout ratio ) × 15.77
payout ratio = 86.05 %
and
now we get here current dividend per share that is
current dividend per share = current earning per share × payout ratio ...........3
put here value
current dividend per share = 1.96 × 86.05 %
current dividend per share = $1.6865
and
now we get here current market value
current market value = [ current dividend per share × ( 1 + growth ) ] ÷ [ required return - growth rate] ....................1
current market value = [Text]\frac{1.6865 \times (1+0.022)}{0.13-0.022}[text]
current market value = [tex]\frac{1.6865 \times (1+0.022)}{0.13-0.022}[/tex]
current market value = $15.96
Steve King and Chelsy Stevens formed a partnership, dividing income as follows: Annual salary allowance to King of $128,250. Interest of 7% on each partner's capital balance on January 1. Any remaining net income divided to King and Stevens, 1:2. King and Stevens had $75,000 and $81,000, respectively, in their January 1 capital balances. Net income for the year was $225,000. How much is distributed to King and Stevens
Answer:
King and Stevens Partnership
King Stevens Total
Distributions $162,110 $62,890 $225,000
Explanation:
a) Data and Calculations:
Annual salary allowance to King = $128,250
Interest rate on capital = 7%
Income sharing ratio = 1:2 King and Stevens
Net income for the year = $225,000
Capital balances = $75,000 King and $81,000 Stevens
King Stevens Total
Capital $75,000 $81,000 $156,000
Net income $225,000
Annual salary 128,250 0 (128,250)
Interest on capital 5,250 5,670 (10,920)
Share of profits 28,610 57,220 (85,830)
Capital, ending $237,110 $143,890 $381,000
Distributions $162,110 $62,890 $225,000
Josh is an HR Manager at RoxCom LLC. He is responsible for conducting performance appraisals for all entry-level employees in his organization. He implements a guided self-appraisal system using management by objectives (MBO). As part of the process, he reviews the job description and the key activities that constitute each employee's job. What is most likely to be Josh's next step?
Answer:
Development of perfomance standards.
Explanation:
Based on the information in the question above, Josh's next step would likely be to develop the performance standards to be implemented in the guided self-assessment system using management by objectives.
The MBO is a management strategy used in organizations so that there is continuous improvement in processes and organizational performance in the internal and external environment, so in a self-assessment system guided by the MBO it is necessary to develop performance standards so that there is a parameter of the sought-after ideal of employee performance, so that self-assessment is guided by such standards. In this type of strategic management, it is necessary to share the objectives throughout the organization, so that they are clear, precise and shared as part of the organizational culture.
An individual taxpayer reports the following items for the current year: Ordinary income from Partnership A, operating a movie theater in which the taxpayer materially participates $70,000 Net loss from Partnership B, operating an equipment rental business in which the taxpayer does not materially participate (9,000) Rental income from building rented to a third party 7,000 Short-term capital gain from sale of stock 4,000 What is the taxpayer’s adjusted gross income for the year?
Answer:
$74,000
Explanation:
Calculation to determine the taxpayer’s adjusted gross income for the year
Taxpayer’s adjusted gross income=Net loss from Partnership B+Capital gain from sale of stock
Let plug in the formula
Taxpayer’s adjusted gross income=$70,000+ $4,000
Taxpayer’s adjusted gross income=$74,000
Therefore the taxpayer’s adjusted gross income for the year is $74,000
Not all the items in your office supply store are evenly distributed as far as demand is concerned, so you decide to forecast demand to help plan your stock. Past data for legal-sized yellow tablets for the month of August are. Week 1 280 Week 2 380 Week 3 580 Week 4 680 a. Using a three-week moving average, what would you forecast week 5 to be
Answer: 547 yellow tablets
Explanation:
The three-week moving average would use the average of the tablets in the last three weeks before the 5th weeks to calculate the average for the 5th week.
= (Week 2 + Week 3 + Week 4) / 3
= (380 + 580 + 680) / 3
= 1,640 / 3
= 546.7
= 547 yellow tablets
bRamapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Product Number of Units Direct Labor Hours Per Unit Machine Hours Per Unit Blinks 1,048 4 7 Dinks 2,236 5 6 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $82,200. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $102,000. Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Dinks is
Answer:
Ramapo Company
The factory overhead allocated per unit of Dinks is:
= $56.94.
Explanation:
a) Data and Calculations:
Product Number of Units Direct Labor Machine
Hours Per Unit Hours Per Unit
Blinks 1,048 4 7
Dinks 2,236 5 6
Fabrication Assembly
Estimated overhead $82,200 $102,000
Machine hours:
Blinks 7,336
Dinks 13,416
Total machines hours 20,752
Direct Labor hours:
Blinks 4,192
Dinks 11,180
Total machines hours 15,372
Total factory overhead Blinks Dinks
Fabrication department $29,058 $53,142
Assembly department 27,816 74,184
Total allocated overhead $56,874 $127,326
Units produced 1,048 2,236
Factory overhead per unit $54.27 $56.94 ($127,326/2,236)
Managers make assumptions in CVP analysis. These assumptions include:__________
a) constant total fixed costs. constant total variable costs.
b) constant fixed cost per unit.
c) constant sales volume.
d) constant variable cost per unit.
e) constant selling price per unit.
Answer:
constant variable cost per unit.
constant total fixed cost
constant selling price per unit
Explanation:
Cost-volume-profit (CVP) analysis is a way to found out if the variable and fixed cost should be changed so how it effects the profit of the firm. Also company could applied cost volume profit analysis in order to see how much units they required to sell in order to have break even or reach to the specific minimum profit margin
So in this, the total fixed cost, selling price per unit, and the variable cost per unit should be constant
Inventory balances for the Jameson Company in October 2018 are as follows:
October 1, 2018 October 31, 2018
Raw materials $27,000 $21,000
Work in process 48,000 37,200
Finished goods 108,000 90,000
During October, purchases of direct materials were $36,000. Direct labor and factory overhead costs were $60,000 and $84,000, respectively. What are the total manufacturing costs added to production in the period?
Answer:
Total manufacturing costs added to production $186,000
Explanation:
The computation of the total manufacturing cost to be added is given below:
Raw materials,beginning $27,000
Add: Purchases of direct materials $36,000
Less: Raw materials,ending -$21,000
Direct materials used $42,000
Direct labor $60,000
Factory overhead costs $84,000
Total manufacturing costs added to production $186,000
Which of the following statements is the most correct?
a. A borrower's long-term debt typically has a higher interest rate than its short-term debt.
b. Debt that is infrequently traded (less liquid) typically has a lower interest rate than similar but highly traded debt.
c. Variable (floating) rate debt is more prevalent when long-term borrowing rates are low.
d. Variable (floating) rate debt should never be used by healthcare providers because it is too risky.
e. Fixed interest rate debt is more prevalent when long-term borrowing rates are high.
Answer:
A
Explanation:
i think it has been explain according to the option
Factory overhead costs may include all of the following EXCEPT: Group of answer choices selling costs. indirect labor costs. factory rent. indirect material costs.
Answer:
selling costs
Explanation:
Factory overhead costs are the cost associated with running a manufacturing facility. Factory overhead is also known as manufacturing overhead or work overhead.
Examples of factory overhead include
indirect labor costs
factory rent
indirect material costs.
depreciation of plants and machinery
Sales and administrative cost
Denny Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $130,000 and would have a ten-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $16,000 per year to operate and maintain, but would save $46,000 per year in labor and other costs. The old machine can be sold now for scrap for $13,000. The simple rate of return on the new machine is closest to (Ignore income taxes.):
Answer:
The simple rate of return on the new machine is closest to 14.53%.
Explanation:
Assuming a straight-line depreciation method, we have:
Annual deprecation = Cost of the new machine / Useful life = $130,000 / 10 = $13,000
Net annual benefit = Annual saving - Annual operating and maintenance cost - Annual deprecation = $46,000 - $16,000 - $13,000 = $17,000
Net investment = Cost of the new machine - Scrap value of the old machine = $130,000 - $13,000 = $117,000
Simple rate of return on the new machine = Net annual benefit / Net investment = $17,000 / $117,000 = 0.1453, or 14.53%
Therefore, the simple rate of return on the new machine is closest to 14.53%.
is an important factor when
According to your reading material,
looking at your market and its needs.
a.
b.
location
capital
insurance
timing
d.
Answer:
Explanation:
insurance
According to your reading material, insurance Is an important factor when looking at your market and its needs. Option C is the correct answer.
While factors like location, capital, and timing are important considerations, insurance is also a crucial factor to take into account when assessing your market and its needs. Insurance provides protection and risk management for your business, its assets, and potential liabilities. Option C is the correct answer.
Having appropriate insurance coverage helps safeguard your business against unexpected events, such as accidents, property damage, legal claims, or disruptions to operations. It provides financial protection and peace of mind, allowing you to focus on meeting your market's needs without the constant worry of potential losses. Insurance coverage can vary depending on the nature of your business and industry. Common types of insurance include general liability insurance, property insurance, professional liability insurance, and workers' compensation insurance.
Learn more about Insurance here:
https://brainly.com/question/30291521
#SPJ2
The complete question is, " According to your reading material, ______ Is an important factor when looking at your market and its needs.
a. location
b. capital
c. insurance
d. timing"
You purchased a zero-coupon bond one year ago for $280.83. The market interest rate is now 9 percent. Assume semiannual compounding. If the bond had 15 years to maturity when you originally purchased it, what was your total return for the past year
Answer:
3.82%
Explanation:
Calculation to determine total return for the past year
First step is to find the price of the bond today.
P1= $1,000 / [1+(9%/2)]
P1= $1,000 / 1+.045
P1= $1,000 / 1.045
P1= $291.57
Now let determine the total return for the past year using this formula
R=Bond price today - Bond price one year ago/Bond price one year ago
Let plug in the formula
R= ($291.57 – $280.83) / $280.83
R=$10.74/$280.83
R= .0382*100
R=3.82%
Therefore total return for the past year is 3.82%
A company's overhead rate is 60% of direct labor cost. Using the following incomplete accounts, determine the cost of direct materials used.
Goods in process inventory:
Beginning balance $100,800
D.M.
D.L.
O.H. F.G.
Ending balance $131,040
Answer: $113,120
Explanation:
Direct material used = Total cost of manufacturing - Direct labor - Factory overhead
Total cost of manufacturing = Ending WIP + Cost of manufacturing - Beginning WIP
= 131,040 + 324,800 - 100,800
= $355,040
Direct labor = Factory overhead * 100/60
= 90,720 * 100/60
= $151,200
Direct materials used = 355,040 - 151,200 - 90,720
= $113,120
Notes Receivable differ from Accounts Receivable in that Notes Receivable: Multiple Choice generally charge interest from the day they are signed to the day they are collected. do not have to be created for every new transaction, so they are used more frequently. are generally considered a weaker legal claim. are noncurrent assets.
Answer: generally charge interest from the day they are signed to the day they are collected.
Explanation:
Accounts Receivable show that a customer is owing a certain amount of money for goods that they took on credit. The customer gets to pay back a maximum of the amount of goods they actually bought because no interest is charged.
This changes with the Notes Receivable. These accrue interest from the day they are signed such that the customer will then pay the value of the notes receivable as well as the interest that it accrues on the day it is collected.
Notes Receivables are usually used by customers who are unable to pay off the accounts receivables within a certain period and so opt for a note receivable avenue instead.
Rhiannon Corporation has bonds on the market with 17.5 years to maturity, a YTM of 6.4 percent, a par value of $1,000, and a current price of $1,037. The bonds make semiannual payments. What must the coupon rate be on these bonds
Answer:
6.75%
Explanation:
The calculation of the coupon rate is given below:
Given that
PV = $1,037
FV = $1,000
YTM = 6.4% ÷ 2 = 3.2%
NPER = 17.5 × 2 = 35
The formula should be
=PMT(RATE,NPER,-PV,FV,TYPE)
After applying the above formula, the pmt should be $33.77
Annual pmt is
= $33.77 × 2
= $67.55
Now the coupon rate is
= 67.55 ÷$1,000
= 6.75%
The biggest advantage of business blogs is that they Group of answer choices are the primary method of internal business communications. provide anytime access to digital audio and video files containing corporate training, marketing, and informational messages. have the potential to reach a vast, far-flung audience. can safeguard against hackers and rival companies.
Answer:
have the potential to reach a vast, far-flung audience
Explanation:
A business blog (b-blog) is the blog that could be published and it can be either involved the communication of the company done internally or the same should be posted at the internet
So the advantage of writing the business blogs is that it could be reached to the general audience at the fastest way so that everyone could be familiar with the performance and other things about the company
Gamma Inc. manufactures Product X using a single raw material. The standard quantity of input for the month of February was 3,000 units of raw material for 1,000 units of Product X. The actual output for the month of February was 1,300 units. Compute the standard quantity of raw material for actual output (SQ) of Product X.
Answer: 3900 units
Explanation:
The standard quantity of raw material for actual output (SQ) of Product X will be calculated thus:
Standard quantity of raw material per unit will be calculated as the standard quantity of input for February divided by the standard units that was produced in February. This will be;
= 3000/1000
= 3 per unit
Then, the standard quantity of raw material for actual output will be:
= Actual output x Standard quantity of raw material per unit
= 1300 units x 3 per unit
= 3900 units
Determine the tax basis of the business asset acquired in each of the following cases:
Required:
a. Firm L paid $5,950 cash plus $416 sales tax plus a $500 installation charge for a satellite dish.
b. TTP Inc. acquired inventory in exchange for 800 shares of TTP common stock listed on Nasdaq at $212 per share on the date of exchange.
c. Firm Q acquired machinery in exchange for architectural drawings rendered by Firm’s Q’s junior partner. The partner spent 20 hours on the drawings, and his hourly billing rate is $350.
d. Company C purchased equipment by paying $2,000 cash at date of purchase and financing the $18,000 balance of the price under a three-year deferred payment plan.
Answer:
a. A Cost basis is best:
= Every cost necessary to set up and use the satellite dish:
= Purchase price + Sales tax + Installation tax
= 5,950 + 416 + 500
= $6,866
b. Here the best basis to use is the Fair Market Value of the stock that was exchanged for the inventory:
= (800 * 212)
= $169,600
c. Use Fair Market Value of services rendered by junior partner:
= 20 * 350
= $7,000
d. Use the total payment requirement:
= Cost at purchase date + Balance to be paid
= 2,000 + 18,000
= $20,000
Which of the following approaches for calculating the market value of a property involves estimating the dollar value associated with replacing the property new, as well as determining the loss in value due to physical, functional, and external obsolescence?
a. income approach
b. sales comparison approach
c. cost approach
d. Investment approach
Answer:
c. cost approach
Explanation:
The cost approach is a real estate valuation method in which the price estimated regarding the buyer that have to pay for the property and the same is equivalnet to the cost for creating a buidling.
Here the property value should be equivalent to the land cost also add the construction cost and minus the depreciation expense
So as per the given situation, it is the cost approach that determined the market value of the property
Collegiate Publishing Inc. began printing operations on March 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month, and all applicable costs except factory overhead have been recorded on the related cost sheets. In addition to the materials and labor charged directly to the jobs, $7,500 of indirect materials and $11,800 of indirect labor were used during the month. The cost sheets for the four jobs entering production during the month are as follows, in summary form:
Job 301
Direct materials $10,000
Direct labor 8,000
Factory overhead 6,000
Total $24,000
Job 302
Direct materials $20,000
Direct labor 17,000
Factory overhead 12,750
Total $49,750
Job 303
Direct materials $24,000
Direct labor 18,000
Factory overhead â
Job 304
Direct materials $14,000
Direct labor 12,000
Factory overhead â
Required:
Journalize the Jan. 31 summary entries
.
Answer:
Collegiate Publishing Inc.
Journal Entries:
Debit Finished Goods Inventory $73,750
Credit Work in Process:
Job 301 $24,000
Job 302 $49,750
To record the transfer of completed jobs to Finished Goods Inventory.
Debit Work in Process:
Job 303 $24,000
Job 304 $14,000
Credit Raw materials $38,000
To record raw materials used in production.
Debit Work in Process:
Job 303 $18,000
Job 304 $12,000
Credit Payroll $30,000
To record direct labor incurred in production.
Debit Manufacturing Overhead $19,300
Credit Raw materials $7,500
Credit Payroll $11,800
To record manufacturing overhead costs for indirect materials and labor.
Explanation:
a) Data and Calculations:
Indirect materials = $7,500
Indirect labor = $11,800
Job Cost Sheets: Job 301 Job 302 Job 303 Job 304
Direct materials $10,000 $20,000 $24,000 $14,000
Direct labor 8,000 17,000 18,000 12,000
Factory overhead 6,000 12,750
Total $24,000 $49,750
Summary Entries:
Finished Goods Inventory $73,750 Work in Process: Job 301 $24,000 Job 302 $49,750
Work in Process: Job 303 $24,000 Job 304 $14,000 Raw materials $38,000
Work in Process: Job 303 $18,000 Job 304 $12,000 Payroll $30,000
Manufacturing Overhead $19,300 Raw materials $7,500 Payroll $11,800
The Jan. 31 summary journal entries are:
a. Dr Work in process $68,000
($10,000+$20,000+$24,000+$14,000)
Dr Factory Overhead $ 7,500
Cr Materials $75,500
($68,000+$7,500)
(To record material used)
b. Dr Work in process $55,000
($8,000+$17,000 +$18,000+$12,000)
Dr Factory Overhead $11,800
Cr Wages Payable $66,800
($55,000+$11,800)
(To record labor used)
c. Dr Work in process $41,250
($55,000×75%)
Cr Factory Overhead $41,250
(To record overhead applied)
Job 301:( $6,000/$8,000=75%)
Job 302:($12,750/$17,000=75%)
d. Dr Finished Goods $73,750
Cr Work in process $73,750
($24,000+$49,750)
(To record goods completed)
Learn more here:
https://brainly.com/question/15058578
multinational company specialised food processing sector ? case study
Answer:
yes its good multitional objects where not eating
Because the statement of cash flows provides information about an organization's operating profitability and use of operating cash flow, analysis of the statement of cash flows can provide information about the financial viability of the organization.
a. True
b. False
Answer:
a. True
Explanation:
A statement of cash flows is also known as cash flow statement and it is a financial statement which is used to illustrate how changes in income and various account of the balance sheet affect cash and cash equivalents.
The statement of cash flows is also used by financial experts or accountants to breakdown the cash-flow analysis into;
1. Cash-flow from operating activities: it represents cash-flow and transactions from operational business activities such as employee salary, sales of goods etc.
2. Cash-flow from investing activities: it represents the cash flow from investment such as proceeds from the sale of plant, equipments etc.
3. Cash-flow from financing activities: it represents the cash flow from debt or equity. Typically, it's the costs used in a financing a business.
In Financial accounting, the purposes of the statement of cash flows are to;
A. Predict the future cash flows of a business.
B. Evaluate management decisions.
C. Determine the ability of a business firm to pay debts and dividends.
Basically, the statement of cash flows provides financial information about an organization's operating profitability and how it use its operating cash flow. Thus, an analysis of the statement of cash flows can provide relevant informations about how financially viable an organization is.
Suppose a firm has an annual expenses of $170,000 in wages and salaries, $75,000 in materials, $60,000 in rental expense, and $5,000 in interest expense on capital. The owner-manager does not choose to pay himself, but he could receive income of $30,000 by working elsewhere. The firm earns revenues of $420,000 per year.
1. What are the annual economic costs for the firm described above?
$310,000.
$320,000.
$340,000.
$400,000.
2. What is the economic profit for the firm described above?
$10,000.
$20,000.
Loss of $80,000.
$80,000.
3. To receive a normal profit the firm described above would have to:
Reduce expenses by $10,000.
Earn $80,000 more in revenue.
Earn $80,000 less in revenue.
Earn $310,000 more in revenue.
Answer:
1. The annual economic costs for the firm described above is:
= $340,000.
2. The economic profit for the firm described above is:
= $80,000.
3. To receive a normal profit the firm described above would have to:
None of the above.
Explanation:
a) Data and Calculations:
Wages and salaries expenses = $170,000
Cost of materials = $75,000
Rental expense = $60,000
Interest expense on capital = $5,000
Total expenses = $310,000
Opportunity cost = $30,000
Total costs = $340,000
Revenue per year = $420,000
1. The annual economic costs for the firm described above is:
= $340,000 ($310,000 + $30,000).
2. The economic profit for the firm described above is:
= $80,000 ($420,000 - $340,000).
3. To receive a normal profit the firm described above would have to:
None of the above.
The normal profit = $110,000 ($420,000 - $310,000)
A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period, unprocessed wheat was purchased for $120,000, and the following quantities of product and sales revenues were produced.
Product Pounds Price per Pound
Feed 100,000 $ 0.70
Flour 50,000 2.20
Starch 20,000 1.00
How much of the $120,000 cost should be allocated to flour if the value basis is used?
a) $24,500.
b) $84,000.
c) $66,000.
d) $70,000.
e) $200,000.
Answer:
c) $66,000.
Explanation:
The computation is shown below:
The value allocated is as follows:
Feed (100,000 × 0.7)=70,000
Flour (50,000 × 2.2)=110,000
Starch (20,000 × 1)=20,000
Total 200,000
Now allocation to the flour is
= (110,000 ÷ 200,000 × 120,000)
= $66,000
hence, the option c is correct
Mr. and Mrs. Nunez attended one of your sales presentations. They’ve asked you to come to their home to clear up a few questions. During the presentation, Mrs. Nunez feels tired and tells you that her husband can finish things up. She goes to bed. At the end of your discussion, Mr. Nunez says that he wants to enroll both himself and his wife. What should you do?
Answer: As long as she is able to do so, only Mrs. Nunez can sign her enrollment form. Mrs. Nunez will have to wake up to sign her form or do so at another time.
Explanation:
Following the information given in the question, since Mr. Nunez says that he wants to enroll both himself and his wife, as long as she is able to do so, only Mrs. Nunez can sign her enrollment form. Mrs. Nunez will have to wake up to sign her form or do so at another time.
It should be noted that it's not appropriate for Mr Nunez to sign the enrollment form for her wife. The wife should be the one doing so in order to in order to make sure that she agrees to the terms of the form and her signature will officially make it enforceable.
At the beginning of the year, Shinedown, Corp., had a long-term debt balance of $46,880. During the year, the company repaid a long-term loan in the amount of $12,805. The company paid $4,890 in interest during the year, and opened a new long-term loan for $11,290. How much is the ending long-term debt account on the company's balance sheet
Answer:
Shinedown, Corp.
The ending long-term debt account on the company's balance sheet is:
= $45,365.
Explanation:
a) Data and Calculations:
Beginning long-term debt balance = $46,880
Repayment of a long-term loan = (12,805)
New long-term loan opened = 11,290
Ending balance of long-term debt = $45,365
Interest payment during the year = $4,890
b) The long-term debt account does not include the interest payment during the year. If any interest is not paid, the amount will be taken as a current liability and not a long-term debt.
Biochemical Corp. requires $690,000 in financing over the next three years. The firm can borrow the funds for three years at 9.25 percent interest per year. The CEO decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. Assume interest is paid in full at the end of each year.
a. Determine the total interest cost under each plan.
Interest Cost
Long-term fixed-rate $
Short-term variable-rate $
b. Which plan is less costly?
Short-term variable-rate plan
Long-term fixed-rate plan
Answer:
a. We have:
Interest cost of long-term fixed-rate = $191,475
Interest cost of short-term variable-rate = $192,51
b. Long-term fixed rate plan is less costly
Explanation:
a. Determine the total interest cost under each plan.
Interest cost of long-term fixed-rate = Amount required to be borrowed * Fixed interest rate per year * Number of years = $690,000 * 9.25% * 3 = $191,475
Interest cost of short-term variable-rate = (Amount required to be borrowed * First year interest rate) + (Amount required to be borrowed * Second year interest rate) + (Amount required to be borrowed * Third year interest rate) = ($690,000 * 7.50%) + ($690,000 * 12.15%) + (($690,000 * 8.25%) = $192,510
b. Which plan is less costly?
Since the $191,475 interest cost of long-term fixed-rate is less than $192,510 interest cost of short-term variable-rate, this implies that long-term fixed rate plan is less costly.
g is considering eliminating the fruit product line. If this line is eliminated, Orange Company will be able to eliminate $74,000 of total fixed costs. By how much would this business decision increase operating income
The business decision increase the operating income by $16,000
Calculation of impact of net operating income:
The following formula should be used:
= Contribution margin lost + fixed cost savings
= -$58,000 + $74,000
= $16,000
Since fruit product contributed $58,000 so here we eliminated it due to this it has a loss of $58,000 for the orange company
Therefore we can conclude that that the business decision increase the operating income by $16,000
Learn more about the: operating income here: brainly.com/question/13872434
