Answer:
1. Accrued interest payable: f. Current liabilities
2. Franchise: e. Other assets (intangible asset)
3. Accumulated depreciation: c. Property, plant, and equipment (contra asset account)
4. Prepaid insurance, for 2017: a. Current assets
5. Bonds payable, due in 10 years: g. Long-term liabilities
6. Current maturities of long-term debt: f. Current liabilities
7. Note payable, due in three months: f. Current liabilities
8. Long-term receivables: b. Investments
9. Restricted cash, will be used to retire bonds in 10 years: b. Investments
10. Supplies: a. Current assets
11. Machinery: c. Property, plant, and equipment
12. Land, in use: c. Property, plant, and equipment
13. Deferred revenue: f. Current liabilities
14. Copyrights: e. Other assets (intangible asset)
15. Preferred stock : h. Paid-in capital
16. Land, held for speculation: b. Investments
17. Cash equivalents: a. Current assets
18. Wages payable: f. Current liabilities
You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 5% and a risky portfolio, P, constructed with two risky securities, X and Y. The optimal weights of X and Y in P are 60% and 40%, respectively. X has an expected rate of return of 14%, and Y has an expected rate of return of 10%. If you decide to hold 25% of your complete portfolio in the risky portfolio and 75% in the Treasury bills, then the dollar values of your positions in X and Y, respectively, would be __________ and _________.
Answer:
For X $150
For Y $100
Explanation:
The computation of optimal weight of X and Y in risky portfolio is shown below:-
Risk portfolio = Complete portfolio × Weight of risky portfolio
= $1,000 × 25%
= $250
So, Optimal weight of X and Y in risky portfolio will be
For X in dollars = Risk portfolio × Optimal weight percentage of X
= $250 × 60%
= $150
For Y in dollars = Risk portfolio × Optimal weight percentage of Y
= $250 × 40%
= $100
Therefore for computing the Optimal weight of X and Y in risky portfolio we simply multiply the risk portfolio with optimal percentage of X and in the similar way of Y.
Ben attended a workshop hosted by SCORE, a SBA organization that counsels small-business owners on developing a good vision statement. In that workshop the speakers discussed how an organization's vision needs to describe ________.
Answer:
what the company wants to become, and its long-term direction and strategic intent
Explanation:
Vision statement is a long term road map of the direction a business needs to take in order to achieve its set goals and objectives. It usually undergoes little revision.
However the short term operational processes are constantly reviewed to make the business better align with long term goals as stated in the vision statement.
In this scenario where the vision statement of small businesses are being formulated the speakers will discuss what the company wants to become, and its long-term direction and strategic intent
Assuming Net Income for the year is $250,000, what is the net operating cash flows given the following information:
Increase in Salaries Payable $19,500
Depreciation Expense $6,000
Increase in Prepaid Rent $29,000
Loss on sale of asset $1,350
Increase in Accounts Payable $29,000
Increase in Inventory $61,000
a) $338,650
b) $215,850
c) $244,850
d) $250,850
Answer:
Operating Cash Flows $215,850
Explanation:
Calaculation of Net operating Cash flow
Net Income$250,000
Adjustments for noncash effects:
Depreciation Expense 6,000
Loss on sale of asset 1,350
Changes in current assets and current liabilities:
Increase in Salaries Payable 19,500
Increase in Prepaid Rent(29,000)
Increase in Accounts Payable 29,000
Increase in Inventory(61,000)
Operating Cash Flows $215,850
On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $100,000 face value, four-year term note that had an 8 percent annual interest rate. The note is to be repaid by making annual cash payments of $30,192 that include both interest and principal on December 31 of each year. Brown used the proceeds from the loan to purchase land that generated rental revenues of $52,000 cash per year.
Prepare an amortization schedule for the four-year period.
Answer: Please see below
Explanation: Amortization for the four year period is given as
FOR 2018
Principal Balance = $100,000
cash payment for dec 31st= #30,182
Applied to interest== 8% of 100000= 0.08 x100,000=8000
Applied to Principal = cash payment -interest= 30192-8000= $22, 192
Principal balance at end of period=Principal Balance--applied to Principal
= 100,000 - 22,192=$ 77, 808
FOR 2019
Principal Balance = $77,808
cash payment for dec 31st= $30,182
Applied to interest== 8% of 77,808= 0.08 x77,808 =$6225
Applied to Principal = cash payment -interest= 30192-6225= $23,967
Principal balance at end of period=Principal Balance--applied to Principal
= 77,808 - 23,967=$ 53,841
FOR 2020
Principal Balance = $53,841
cash payment for dec 31st= $30,182
Applied to interest== 8% of 53,841= 0.08 x53,841 =$4307
Applied to Principal = cash payment -inbterst= 30192-4307= $25,885
Principal balance at end of period=Principal Balance--applied to Principal
= 53,841- 25,885= $27,956
FOR 2021
Principal Balance = $27,956
cash payment for dec 31st= $30,182
Applied to interest== 8% of 27,956= 0.08 x27,956 =$2236
Applied to Principal = cash payment -interest= 30192-2236= $27,956
Principal balance at end of period=Principal Balance--applied to Principal= 27,956- 27,956=0
Seymour Clothing Co. manufactures a variety of clothing types for distribution to several major retail chains. The following costs are incurred in the production and sale of blue jeans:Required:Identify each cost listed below as variable costs, fixed costs, or mixed cost.a. Shipping boxes used to ship orders b. Consulting fee of $200,000 paid to industry specialist for marketing advice c. Straight-line depreciation on sewing machines d. Salesperson's salary, $10,000 plus 2% of the total sales e. Fabric f. Dye g. Thread h. Salary of designers i. Brass buttons j. Legal fees paid to attorneys in defense of the company in a patent infringement suit, $50,000 plus $87 per hour k. Insurance premiums on property, plant, and equipment, $70,000 per year plus $5 per $30,000 of insured value over $8,000,000 l. Rental costs of warehouse, $5,000 per month plus $4 per square foot of storage used m. Supplies n. Leather for patches identifying the brand on individual pieces of apparel o. Rent on plant equipment, $50,000 per year p. Salary of production vice president q. Janitorial services, $2,200 per month r. Wages of machine operators s. Electricity costs of $0.10 per kilowatt-hour t. Property taxes on property, plant, and equipment
Answer:
a. Variable cost
b. Fixed cost
c. Fixed cost
d. Mixed cost
e. Variable cost
f. Variable cost
g. Variable cost
h. Fixed cost
i. Variable cost
j. Mixed cost
k. Mixed cost
l. Mixed cost
m. Variable cost
n. Variable
o. Fixed cost
p. Fixed cost
q. Fixed cost
r. Variable cost
s. Variable cost
t. Fixed cost
Explanation:
Note the following categories of costs:
Variable cost: This are cost that are subject to change such cost includes purchase cost of supplies, bills based on usage, hourly wages expenses.
Fixed cost: are generally recognisable cost that are stable over time, such as rent, salary, specific expense that have a fixed price etc.
From the overall analysis of the cost of Seymour Clothing Co. it is noticed that most of their expenses are variable in nature with less of mixed and fixed expenses (cost).
Suppose that the total benefit to any one person (all people are identical) of a fireworks display is , where g is the dollar amount of fireworks(thus the marginal cost of $1 worth of fireworks is $1). Also suppose that each person in a town pays an equal share of the cost of the display. Does adding more people to the town make each person better off(in terms of net benefits derived from fireworks displays)? If so, by exactly how much?
Answer: The answer is provided below
Explanation:
As g is a constant, the addition of more people to the town will decrease per person cost of firework display. Therefore, adding more people to the town will make each person better off.
The net benefit is also equal to the total benefit each person gets (2√g) minus cost of per person of the firework display which is (g/h), where h is the number of people that are in the town.
Net benefits =2√g-(g/h)
Therefore, as h increases, "g/h" decreases and net benefits will increase.
If we then derivative net benefits with its respect to h ,we then get how much the net benefit will change.
∆net benefits/∆h=+g/h²
What is a summary jury trial?
A. An abbreviated trial that leads to a nonbinding jury verdict.
B. An unabbreviated trial that leads to a binding jury verdict.
C. An unabbreviated trial that leads to a nonbinding jury verdict.
D. An abbreviated trial in which only a few witnesses are called to the stand.
E. Both an abbreviated trial that leads to a nonbinding jury verdict and an abbreviated trial in which only a few witnesses are called to the stand.
Answer:i say E
Explanation:
Because no matter what you would still have to attend the jury trial
The Friendly Sausage Factory (FSF) can produce hot dogs at a rate of 4,500 per day. FSF supplies hot dogs to local restaurants at a steady rate of 310 per day. The cost to prepare the equipment for producing hot dogs is $60. Annual holding costs are 45 cents per hot dog. The factory operates 295 days a year.
a. Find the optimal run size. (Do not round intermediate calculations. Round your answer to the nearest whole number) Optimal run size
b. Find the number of runs per year.(Round your answer to the nearest whole number) Number of runs
c. Find the length (in days) of a run. (Round your answer to the nearest whole number) Run length (in days)
Answer:
a. The Optimal run size is 5,086 hot dogs
b. The Number of runs per year is 18
c. The Run length is 1 day
Explanation:
a. According to the given data we have the following:
Daily production, p = 4500 per day
Daily demand, u = 310 per day
Number of working days in a year, Tyear = 295 days
Annual demand, D = Daily demand x number of working days; D = 310 x 295; D = 91450
Setup cost, S = $60
Annual holding cost, H = $0.45 per hot dog
So, Optimal run-size can be calculated as follows:
Q* = √ 2 x annual demand x Setup cost / holding cost per unit per year x √daily production / daily production - daily demand
Q* = √2DS / H x √p / p-u
Q* = (√ 2 x 91450 x 60 / 0.45) x (√ 4500 / 4500 - 310)
Q* = (√24386667) x (√1.07)
Q* = (4938.29) x (1.03)
Q* = 5086.44 = 5,086
Therefore, Optimal run size is 5,086 hot dogs
b) The Number of runs per year can be calculated as follows:
Cycle time = Q / u
Cycle time = 5086 / 310 = 16 days
Number of runs = Tyear / cycle time
Number of runs = 295 / 16 = 18
The Number of runs per year is 18
c) The Run length or run time can be calculated as follows:
Run time = Q / p
Run time = 5086 / 4500
Run time = 1.13 = 1
Run length is 1 day
Stark Company, a 90% owned subsidiary of Parker, Inc., sold land to Parker on May 1, 2017, for $80,000. The land originally cost Stark $85,000. Stark reported net income of $200,000, $180,000, and $220,000 for 2017, 2018, and 2019, respectively. Parker sold the land purchased from Stark in 2017 for $92,000 in 2019. Both companies use the equity method of accounting. What is gain or loss to the consolidated entity in 2019
Answer:
Loss of $7,000
Explanation:
Computation of gain or loss to be reported in the consolidated net income during 2019
Total gain recognized by Intel- entity transactions. =>. $12,000
($92,000–$80,000)
Less; loss on transaction from Stark to Parker =>. $15,000
($85,000–&60,000)
Total gain to be reported in the consolidated net income during 2019 =>. $7,000
Good strategy combined with good strategy execution: Select one: a. Offers a guarantee for avoiding periods of weak financial performance b. Are the two best signs that a company is a true industry leader c. Signal that a company has a superior business model d. Are the most trustworthy signs of good management
Answer:
d. Are the most trustworthy signs of good management
Explanation:
The strategy refers to the planning through which the company could able to accomplish its goals and objectives within the prescribed time set by the company
The goods strategy mostly achieved the company targets within the standard time set by the company. And if the combination of both the good strategy and execution of the good strategy leads to the sign of good management i.e become trustworthy.
hence, the last option is correct
The purpose of many business messages is to make a request or to reply to previously received communication.
Familiarize yourself with the organization of these messages so you can communicate your purpose and achieve a positive outcome.
Read the scenario, and then answer the question.
The office manager asks you for advice on how to structure a request message with numerous questions.
What advice would you give?
Put a question mark after a disguised command.
Ask easy yes or no questions.
Place the most important question first or begin with a summary.
Read the following request message, and then answer the question.
To: Customer Support
From: Helen Martin
Subject: Warranty Information for Netbook Computer
Dear Customer Service,
I need this information by noon tomorrow at the latest. My team has an important presentation to give, and my netbook crashed while we were working on the presentation. I can’t find the warranty information anywhere. So I have a few questions.
Where is my warranty information? How long does it normally take to repair these machines? Do I have to mail the netbook to you, or can I bring it to your local repair shop?
Will you please answer these questions in a timely manner? Thank you in advance for your help.
Regards,
Helen Martin
What is the best revision for the opening of this message?
My team has an important presentation to give, and my netbook crashed while we were working on the presentation. I have to get it repaired soon.
My netbook computer crashed, and I have a few questions regarding repair and warranty information.
I need my questions answered quickly. My netbook crashed, and I can’t find the warranty information anywhere.
In addition to making requests, you will have to respond to requests in the business world.
Answer:
The best revision is :
My team has an important presentation to give, and my netbook crashed while we were working on the presentation. I have to get it repaired soon.
Explanation:
The best revision is :
My team has an important presentation to give, and my netbook crashed while we were working on the presentation. I have to get it repaired soon.
because this includes a summary of the issue encountered this highlights the importance of netbook to be repaired soon as the presentation must be due in a near future and then finally asking for a repair which is mentioned to be required soon.
Morris Company applies overhead at 20% of direct labor costs. Actual overhead costs for the year totaled $380,000, and actual direct labor costs totaled $1,800,000. At year-end, the balance in the Factory Overhead account is a:
Answer:
$20,000 debit balance
Explanation:
Overhead is meant to absorbed at 20% of direct labor costs
absorbed overhead=20%*direct labor costs
direct labor costs is $1,800,000
absorbed overhead as a percentage of labor costs=20%*$1,800,000=$360,000
Balance in factory overhead account=actual overhead-overhead absorbed
actual overhead is $380,000
balance in factory overhead account=$380,000-$360,000=$20,000
The balance in factory overhead account is $20,000 debit balance since the amount absorbed is less than actual,an additional cost of $20,000 needs to be recognized
Use the following information to prepare the September cash budget for PTO Co. The following information relates to expected cash receipts and cash payments for the month ended September 30.Beginning cash balance, September 1, $40,000.Budgeted cash receipts from sales in September, $255,000.Raw materials are purchased on account. Purchase amounts are August (actual), $80,000; and September (budgeted), $110,000. Payments for direct materials are made as follows: 65% in the month of purchase and 35% in the month following purchase.Budgeted cash payments for direct labor in September, $40,000.Budgeted depreciation expense for September, $4,000.Other cash expenses budgeted for September, $60,000.Accrued income taxes payable in September, $10,000.Bank loan interest payable in September, $1,000.
Answer and Explanation:
According to the scenario, the presentation of the September cash budget is presented below:
September Cash Budget for PTO Co.
Particulars Amount ($)
Opening cash balance 40,000
Add - Cash receipts 225,000
Total cash receipts 265,000
Less - Cash paid for raw material in august (80,000 × 35%) -28,000
Less - Cash paid for raw material in September (110,000 × 65%) -71,500
Less - Direct labor -40,000
Less - Cash expenses -60,000
Less - Income tax paid -10,000
Less- Bank interest -1,000
Ending cash balance 54,500
We simply added the cash receipts as it increased the cash balance and deduct all cash payments as it decreased the cash balance
You are reviewing the accounting records of Cathy's Antiques, Inc. owned by Cathy Miller. You have uncovered the following situations. Compose a memo to Ms. Miller that cites the appropriate accounting principle and the suggested action for each separate situation.
1.In August, a check for $500 was written to Wee Day Care Center. This amount represents child care for her son Brandon.
2.Cathy plans a Going out of Business Sale for May, since she will be closing her business for a month-long vacation in June. She plans to reopen July 1 and will continue operating Cathy's Antiques indefinitely.
3.Cathy received a shipment of pine furniture from Quebec, Canada. The invoice was stated in Canadian dollars.
4. Joseph Clark paid $1,500 for a dining table. The amount was recorded as revenue. The table will be delivered to Mr. Clark in six weeks.
Answer and Explanation:
The accounting principles and the suggestions are shown below:
a. Business Entity Concept:
In this given situation, the amount of $500 should be refunded to the business or it can be recognized as the withdrawal amount by Cathy Miller. The suggestion is that She should use a personal check for paying daycare in the future for her son
b. Going Concern Concept:
Since the business is closed for month-long vacation in the month of June. As Cathy's Antiques is not closing the business for permanent. As she plans for reopening on July 1. The suggestion is that she should hold an inventory decline sale or for other relevant sales.
c. Monetary Unit Concept:
The invoice should be restated in the united states for the purpose of accounting
d. Revenue Recognition Concept:
The revenue should be recognized when it is realized or earned. As the table is not delivered so the revenue should not be recognized.
The amount of $1,500 should be recorded for an account like deposits received from the customers until the delivering of the table is not done
Examine the relationship between total spending by government and consumers in a nation and the location of the countries gdp on the business cycle
Answer and Explanation:
Consumer as well as government overall expenditure seems to be a significant determinant of economic growth during a market. Unless the overall spending increases, the demand changes positively.Hence, just before the total individual and corporate expenditure in something like a firm increases, it demonstrates that perhaps the country's affairs cycle is going to expand, and then when total expenditure drops significantly, it illustrates that the financial sector's business period is going via compression.So that it is the right answer.
Considerable research has documented that in many product categories, consumers are unable to distinguish among brands when given blind tests (i.e. taste or use of the products without labels). Such products include cigarettes, beer, liquors, and cosmetics. Nonetheless, even when prices are similar, consumers have strong preferences for specific brands of these products. This strong brand preference is characteristic of:
Answer:
brand loyalty
Explanation:
Brand loyalty: The term "brand loyalty" is determined as the propensity of specific consumers to "continuously purchase" a particular brand's products over some other brand's products. However, a specific consumer's behavioral patterns are responsible for demonstrating that he or she will continue to purchase products from the same company that has been fostered a "trusting relationship".
In the question above, the given statement represents brand loyalty.
Answer:
Probably brand loyalty
Explanation:
Sara King and Ray Lee are copartners in Kingslee Company. The partnership agreement provides for (1) salary allowances of $6,000 to King and $4,000 to Lee, (2) interest allowances of 10% on capital balances at the beginning of the year, and (3) dividing the remainder equally. Capital balances on January 1 were King $30,000, and Lee $20,000. In 2017, partnership net income is $20,000. The division of net income to Sara King partner.
A. Prepare a schedule showing the distribution of net income.
B. Journalize the allocation of net income.
Answer: Please see below for answer
Explanation:
A)Schedule for The distribution of income
Net income = $20,000
the division of net income
Sara King Ray Lee Total
salary allowance $6,000 $4000 $10,000
interest on each capital partner"s allowance
10% of 30,000 for Sara $3000
10% of 20000 for Ray $2000
total interest allowance $5,000
Total $9,000 $6,000 $15,000
Remaining income = $20,000 -$15,000 =$5,000
Sara = 50% x 5,000 2,500
Ray = 50% x 5,000 $2500
Total remainders $5,000
Total $11,500 $8,500 $20,000
b)Journal for allocation of net income to partners capital
Account Debit Credit
Income summary $20,000
Sara King $11,500
Ray lee $8,500
The two processes that must occur before moving forward to planning the project are:
a. Collect requirements and define scope
b. Train project manager and select project
c. Identify project deliverables and prepare scope statement
d. Identify stakeholders and develop project charter
Answer:
Two processes before moving forward to planning the project are:
d. Identify stakeholders and develop project charter.
a. Collect requirements and define scope
Explanation:
Project Planning is an important first step to executing a project to achieve desired objectives. But, before the proper project planning is started, there are processes that make planning projects easier and smoother. First, the stakeholders must be identified to enable the development of project charter. A project charter describes a project, identifies the objects, how the objectives and the project will be carried out, and the stakeholders. Second, project requirements must be collected. These help to define the scope of the project.
As of December 31, 2020, the equipment had a salvage value of $4,000 and is expected to produce 100,000 additional units over its remaining useful life. Urithiru uses an activity-based depreciation method and the equipment produced 24,000 units in 2021. At December 31, 2021, the fair value of the equipment is $16,000 and the undiscounted expected future net cash flow is $18,000.
How much impairment loss or loss recovery would be recognized at 12/31/2021?
Answer:
Hi, the question you have provided has missing information, however important principles are explained below :
Impairment loss is the excess of Carrying Amount of an asset over its Recoverable Amount.
Carrying Amount
Carrying Amount = Cost - Accumulated Depreciation
The question has missing information on the cost of the equipment.
However the formula to calculate depreciation is :
Depreciation Expense = (Cost - Salvage Value) × Activity during the year / Estimated Total Activity
Recoverable Amount
Is the higher of :
Fair Value less Costs to sale or,Value in use (discounted expected future net cash flow)The question provided an undiscounted expected future net cash flow of $18,000 which needs to be discounted using the company`s cost of capital to get the Value in use.
Then determine the recoverable amount.
Test for Impairment
If Carrying Amount > Recoverable Amount, then the asset is impaired
Journal Entry
Debit : Impairment loss expense with the amount of impairment (the excess)
Credit : Accumulated Impairment loss with the amount of impairment (the excess)
If an economy’s GDP falls, then it must be the case that the economy’s Group of answer choices income and saving fall. income and market value of all production both fall. income falls and market value of all production rises income rises and market value of all production falls.
Answer: Income and saving fall
Explanation:
A fall or contraction in the Gross Domestic Product (GDP) of a nation leads to business earnings decreasing and by extension the wages of people as businesses would have to cut back.
As people's income falls, they will have to consume more of their income in order to afford their needs and wants. This will leave less of their income remaining for Savings so these fall as well.
At the end of the current year, $59,500 of fees have been earned but have not been billed to clients. a. Journalize the adjusting entry to record the accrued fees. If an amount box does not require an entry, leave it blank. b. If the cash basis rather than the accrual basis had been used, would an adjusting entry have been necessary?
Answer:
a.
Cash $59,500 (debit)
Deferred Revenue $59,500 (credit)
Being Fees Earned But not Billed to Customers
b.
Yes adjusting entry would be necessary. Because there has been movement of cash
Explanation:
The Accrual Principle states that transactions are recorded as they occur not as they are paid.
The Effect of the transaction in the question is to Increase the Assets of Cash while Recognizing the Liability that the company has to the customer in Deferred Revenue.
At the later date when the Company Bills the Clients, the Deferred Revenue would be Eliminated and the Revenue Account be Recognized.
Platt Company produces one product, a putter called PAR-putter. Platt uses a standard cost system and determines that it should take one hour of direct labor to produce one PAR-putter. The normal production capacity for this putter is 100,000 units per year. The total budgeted overhead at normal capacity is $500,000 comprised of $200,000 of variable costs and $300,000 of fixed costs. Platt applies overhead on the basis of direct labor hours. During the current year, Platt produced 85,000 putters, worked 89,000 direct labor hours, and incurred variable overhead costs of $160,000 and fixed overhead costs of $300,000.
1. Compute the pre-determined variable overhead rate and the pre-determined fixed overhead rate.
Variable Overhead Rate
Fixed Overhead Rate
2. Compute the applied overhead for Platt for the year.
Applied Overhead
3. Compute the total overhead variance
Total Overhead Variance
Answer:
Instructions are below.
Explanation:
Giving the following information:
The normal production capacity for this putter is 100,000 units per year. The total budgeted overhead at normal capacity is $500,000 comprised of $200,000 of variable costs and $300,000 of fixed costs.
Platt produced 85,000 putters, worked 89,000 direct labor hours, and incurred variable overhead costs of $160,000 and fixed overhead costs of $300,000.
First, we need to calculate the estimated overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Variable= 200,000/100,000= $2 per direct labor hour
Fixed= 300,000/100,000= $3 per direct labor hour
Total= $5
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 89,000*5= $445,000
Finally, the total overhead variance:
TOTAL OVERHEAD VARIANCE = Actual Factory Overhead - Standard Factory Overhead
TOTAL OVERHEAD VARIANCE= 460,000 - 445,000
TOTAL OVERHEAD VARIANCE = $15,000 unfavorable
Symon's Suppers Co. has announced that it will pay a dividend of $4.39 per share one year from today. Additionally, the company expects to increase its dividend by 4.2 percent annually. The required return on the company's stock is 11.4 percent. What is the current share price?
Answer:
The current share price is $60.97
Explanation:
The values given are
Symon's super corporation is expected to pay a dividend of $4.39
The company expects to increase its dividend by 4.2percent every year
The required return on the company's stock is 11.4 percent
Therefore, the current share price is
= 4.39/( 11.4/100 + 4.2/100 )
= 4.39/( 0.114 - 0.042)
= 4.39/(0.072)
= 60.97
Thus, the current share price is $60.97
A business owner makes 1000 items a day. Each day she spends 8 hours producing those items. If hired, elsewhere she could have earned $250 an hour. The item sells for $15 each. Production occurs seven days a week. If the explicit costs total $150,000 per month, what is her economic profit
Answer:
Economic profit= $214,000
Explanation:
Giving the following information:
Business:
Units= 28,000 a month
Hours= 224 hours
Total cost= 150,000 a month
Selling price per unit= $15
Other work:
Income= $250 an hour
Economic profit includes the opportunity cost.
Economic profit= 28,000*15 - 150,000 - 250*224
Economic profit= $214,000
Gilberto Company currently manufactures 70,000 units per year of one of its crucial parts. Variable costs are $1.80 per unit, fixed costs related to making this part are $70,000 per year, and allocated fixed costs are $35,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $2.90 per unit guaranteed for a three-year period.
Calculate the total incremental cost of making 70,000 and buying 70,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier?
Answer:
The company should continue making the unit. It is cheaper than buying by $7,000.
Explanation:
Giving the following information:
Variable costs are $1.80 per unit
fixed costs= $70,000 per year
Purchasing price per unit= $2.90
I will assume that the fixed costs (not allocated) are avoidable.
First, we need to calculate the total cost of making the unit:
Total cost= 70,000*1.8 + 70,000= $196,000
Buying:
Total cost= 70,000*2.9= $203,000
The company should continue making the unit. It is cheaper than buying by $7,000.
Harry Smith owns a metal- producing firm that is an unregulated monopoly. After considerable experimentation and research, he finds that the firm’s marginal cost curve can be approximated by a straight line, MC= 60 +2Q, where MC is marginal cost (in dollars) and Q is output. The demand curve for the product is P =100 - Q, where P is the product price (in dollars) and Q is output.A. If Smith wants to maximize profit, what output should he choose? B. What price should he charge?
Answer:
1. 10 units
2. 90 dollars
Explanation:
1. Total revenue = P x Q
= (100 - Q) x Q
= 100 - Q^2
Marginal revenue = dTR/dQ
=100 - 2Q
MR = MC
100 - 2Q = 60 + 2Q
100 - 60 = 4Q
40 = 4Q
Q = 10 units
2. Putting price of Q = 10 in the price equation
P = 100 - Q
P = 100 - 10
Price = 90
Anna is separated from her boyfriend, John, while she studies economics and he goes to art school. Even though she wants to call John, Anna is very rational. She realizes that the more she spends on her phone bill, the less money she has left to purchase other goods and services. Anna's demand schedule for phone call to John is given in the table below.
Price (per month) Quantity (Calls per month)
$18 20
14 24
10 28
6 32
2 36
Required:
Using the multipoint curve drawing tool, draw Anna's demand curve for phone calls given the demand schedule above. Properly label your curve.
Answer:
Kindly check attached picture for drawing of Anna demand curve
production generated the following activity in Chopper Chassis Company's Work-in-Process Inventory account: LOADING...(Click the icon to view the activity.) Additionally, Chopper has completed Jobs 142 and 143, with total costs of $ 46 comma 000 and $ 50 comma 000, respectively. Read the requirementsLOADING.... Requirement 1. Prepare the journal entry for production completed in June. (Prepare a single journal entry for this event. Record debits first, then credits. Exclude explanations from any journal entries.) Date Accounts Debit Credit June C
Answer:
Finished Goods : Job 142 $ 46,000 (debit)
Finished Goods : Job 143 $ 50,000 (debit)
Work In Process : Job 142 $ 46,000 (credit)
Work In Process : Job 143 $ 50,000 (credit)
Explanation:
During Production all Costs Incurred are accumulated in the Work In Process Account.
Once the Production is Complete and Jobs are Transferred to Finished Goods, the Costs in Work In Process Account is De-recognized. Consequently Costs are recognized in Finished Goods Inventory for Valuation purposes.
These cost would later form part of Cost of Sales when the Jobs are Finally Sold to the Customer.
A German worker takes 400 hours to produce a car and 2 hours to produce a case of wine. A French worker takes 600 hours to produce a car and X hours to produce a case of wine. For what values of X will gains from trade be possible
Answer and Explanation:
Given that
Number of hours taken to produced a car by German worker is 400 hours
In case of wine he takes 2 hours
And, the Number of hours taken to produced a car by French worker is 600 hours
In case of wine he takes X hours
Based on the above information, the values of X gains from trade is based on the opportunity cost so in this there is a competitive advantage occurs so in this case the values should be other than 3 as 600 hours ÷ hours = 300 hours
Hence, the values should be other than 3
Suppose two factors are identified for the U.S. economy: the growth rate of industrial production, IP, and the inflation rate, IR. IP is expected to be 4% and IR 5%. A stock with a beta of 1 on IP and 0.6 on IR currently is expected to provide a rate of return of 16%. If industrial production actually grows by 5%, while the inflation rate turns out to be 6%, what is your best guess for the rate of return on the stock? (Round your answer to 1 decimal place.)
Answer:
17.6%
Explanation:
According to the scenario, computation of the given data are as follow:-
We can calculate the rate of return on the stock by using following formula:-
Expected Provide Rate of Return = Estimate Rate of Return on the Stock + (Expected IP × Stock with a Beta on IP) + (Expected IR × Stock with a Beta on IR)
Before estimate rate of return on the stock
= 16% = α + (4% × 1) + (5% × 0.6)
= 16% = α + (0.04 × 1) + (0.05 × 0.6)
= 0.16 = α + 0.04 + 0.03
= 0.16 - 0.04 - 0.03 = α
α = 0.09 =9%
Rate of return after the changes
= 9% + (5% × 1) + (6% × 0.6)
= 0.09 + 0.05 + 0.036
= 0.176
= 17.6%
According to the analysis, New rate of return on the stock is 17.6%
