Answer:
15%
Explanation:
Calculation to determine would be the break-even interest rate (BEIR)
Using this formula
Break-even interest rate (BEIR)= After tax IRR on total investment / (1- Tax rate)
Let plug in the formula
Break-even interest rate (BEIR)=9% / (1-0.40)
Break-even interest rate (BEIR)=9%/0.60
Break-even interest rate (BEIR)= 15%
Therefore would be the break-even interest rate (BEIR), at which the use of leverage is neither favorable nor unfavorable is 15%
1A.) Assume a simple economy where only burgers are traded. In a year, 100 burgers are traded at the rate of $5 per burger. Assume two scenarios:
a. The economy has $100 in the form of 20 pieces of $5 bills.
b. The economy has $100 in the form of 100 pieces of $1 bills.
Calculate the velocity of money for both situations.
1B.) For a country A, the GDP growth rate is 8 percent and inflation is 4 percent. If the velocity of money remains constant, what is the change in real money balances?
Answer:
a. 5
b. 5
1B. 8%
Explanation:
a. MV = PY
Money Supply * Velocity of money = Price level * Real GDP
100 * V = 5 * 100
100V = 500
V = 5
b. Velocity = 5
It will not change because the money supply for both questions is the same = $100.
1.B. Change in real money balances = 8%
The change in real money balances will be the same as the GDP growth rate if velocity is constant.
Assume that a $1,000,000 par value, semiannual coupon US Treasury note with three years to maturity has a coupon rate of 3%. The yield to maturity (YTM) of the bond is 11.00%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note:$960,214.55$504,112.64$680,151.97$800,178.79
Answer: $800,178.79
Explanation:
This is a semi-annual coupon bond so convert rate and period to semi annual rates.
Coupon payment = 3% * 1,000,000 * 1/2 years
= $15,000
YTM = 11%/2 = 5.5%
Number of periods = 3 years * 2 = 6 semi annual periods
Value of Bond = Present value of coupon payments + Present value of par
= 15,000 * ( 1 - ( 1 + 5.5%)⁻⁶) / 5.5%) + 1,000,000 / (1 + 5.5%)⁶
= 74,932.9546296555 + 725,245.8330245964
= $800,178.79
AAA Advertising hires Christopher as a photographer to take photographs of products for AAA’s use in its advertising campaigns. Christopher is to use his own DSLR camera. Christopher will have an office at AAA but only needs to come in 10 hours a week, of his own choosing. Christopher will work under a supervisor who will tell him exactly what photos to take and how many of each product. He will be paid a flat $2,000 salary every other week, regardless of how much work he does. 1) What is Christopher’s employment status with AAA, is he an employee or independent contractor? 2) Discuss each of the applicable factors used to determine whether a worker is an independent contractor or employee.
Answer:
Christopher is an Employee
Explanation:
1) Christopher is an Employee because he is been paid a flat rate regardless of the amount of work he puts in, also he is directly supervised, has an office in AAA and also he must put in 10 hours of work per week
2) Factors that makes a worker an independent contractor or an Employee includes
level of instruction; If the company or its representative directs the worker on how, when and where a job can be done this indicates that the worker is an employee work schedule: An independent contractor is totally in control of his time and determines the amount of hours to put in but if the work schedule is determined by the company then it will be an employee arrangement form of payment ; Hourly, weekly and monthly payments are mostly used for employees ,most independent contractors collect their pay once a task is completed by themprofit or loss : Employees do not share in the profit or loss of the organization since they are paid a flat rate.22. An employment contract is an agreement between the manager and top management designed to provide incentives for the manager to act: Group of answer choices Consistently with that of other managers. Independently to achieve the manager's objectives. Independently to achieve top management's objectives. Independently to achieve the customer's objectives.
Answer:
Independently to achieve top management's objectives.
Explanation:
A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.
There are different types of contract in business and these includes: fixed-price contract, cost-plus contract, bilateral contract, implies contract, unilateral contract, adhesion contract, unconscionable contract, option contract, express contract, etc.
Hence, an employment contract is an agreement between the manager and top management designed to provide incentives for the manager to act independently to achieve top management's objectives because they are playing a fiduciary duty or role.
The Jamison Company's inventory was destroyed on July 4, 2016, when its warehouse caught on fire early in the morning. Inventory was totally destroyed. The accounting records, which were located in a fireproof vault, contained the following information: Sales (1/1/16 through 7/3/16)$240,000 Purchases (1/1/16 through 7/3/16)180,000 Inventory (1/1/16)45,000 Gross profit ratio25% of cost Using the gross profit method, what is the estimated cost of the inventory that was destroyed by the fire
Answer:
$15,000
Explanation:
With regards to the above information, the estimated cost of inventory that was destroyed by fire is computed as
= [Sales - (Purchases + Inventory)]
Given that;
Sales 1/1/16 through 7/3/16 = $240,000
Purchases 1/1/16 through 7/3/16 = $180,000
Inventory 1/1/16 = $45,000
= [$240,000 - ($180,000 + $45,000)]
= $240,000 - $225,000
= $15,000
In a paragraph of 250 words or less, please discuss areas of outstanding achievements. Give examples such as scholarships, leadership roles, major projects, work experience, etc. Outstanding achievements will be reviewed by all selected major choices to which you apply.
Explanation:
Writing a scientific article at the university can be a remarkable and relevant achievement as this article seeks to find solutions to problems faced by today's society. An example is a scientific project in the area of environmental management that seeks to develop explanations and solutions applicable to companies for the implementation of environmental programs and certifications, it is a project that will contribute to the reduction of impacts to the environment and to the valorization of local communities and producers. .
However, it is necessary that the environmental management project presents solutions that benefit both the organization and the environment in fact, as organizations as profitable entities will implement some social and environmental benefit program if it is legally necessary or bring strategic and competitive benefits.
A trade secret is a formula, device, process, method, or compilation of information that, when used in___________ , gives the owner an advantage over _______who do not know the ________information. In addition to considering the competitive advantage, a court will consider whether the information was , ________and___________ (and/or expensive) to obtain, when determining whether something is a trade secret. Another important consideration is whether the company made to __________protect it.
Fill in the blanks with words that would best complete the passage.
a. difficult
b. extraordinary efforts
c. interesting
d. the public domain
e. employees
f. commercial
g. reasonable efforts
h. desirable
i. conceal
j. readily available
Answer:
Business; competitors; secret; readily available; difficult; reasonable efforts.
Explanation:
A trade secret is a formula, device, process, method, or compilation of information that, when used in business, gives the owner an advantage over competitors who do not know the secret information.
In addition to considering the competitive advantage, a court will consider whether the information was, readily available and difficult (and/or expensive) to obtain, when determining whether something is a trade secret. Another important consideration is whether the company made reasonable efforts to protect it.
For example, the recipe and ingredients used in the manufacturing of popular soft drinks and alcoholic beverages is a trade secret that isn't known to many people around the world.
A company issued 5%, 20-year bonds with a face amount of $100 million. The market yield for bonds of similar risk and maturity is 4%. Interest is paid semiannually. At what price did the bonds sell
Answer:
The bond was sold at $1,136.78.
Explanation:
Annual coupon = Bond face value * Coupon rate = $1000 * 5% = $50
Annual coupon discount factor = ((1 - (1 / (1 + r))^n) / r) .......... (1)
Where;
r = semi-annul interest rate = 4% / 2 = 2%, or 0.02
n = number of period = 20 years * Number of semiannuals in a year = 20 * 2 = 40 semi-annuals
Substituting the values into equation (1), we have:
Annual coupon discount factor = ((1-(1/(1 + 0.02))^40)/0.02) = 27.3554792407382
Present value of coupon = (Annual coupon * Annual coupon discount factor) / 2 = ($50 * 27.3554792407382) / 2 = $683.886981018455
Present value of the face value of the bond = Face value / (1 + r)^n = $1,000 / (1 + 0.02)^40 = $452.890415185236
Therefore, we have:
Price of bond = Present value of coupon + Present value of the face value of the bond = $683.886981018455 + $452.890415185236 = $1,136.77739620369
Approximating to 2 decimal places, we have:
Price of bond = $1,136.78
Therefore, the bond was sold at $1,136.78.
Both __________ and __________ affect the awareness and motivation of a firm to undertake actions and responses. a. first-mover advantages; corporate size b. market commonality; resource similarity c. management capabilities; competitive analysis d. speed of management decisions; management actions
Answer:
b. market commonality; resource similarity
Explanation:
The two things that can impact the awareness and the motivation so that the firm could take the actions and responses is that the market commodity where the company deals with and the similarity of the resources. These two things would be required that can impact the awareness and the motivation level of the firm
hence, the option b is correct
The expected return on a portfolio: Group of answer choices can be greater than the expected return on the best performing security in the portfolio. can be less than the expected return on the worst performing security in the portfolio. is independent of the performance of the overall economy. is limited by the returns on the individual securities within the portfolio. is an arithmetic average of the returns of the individual securities when the weights of those securities are unequal.
Answer:
is limited by the returns on the individual securities within the portfolio
Explanation:
Portfolio is simply defined as a list of securities showing how much is (or will be) invested in each of them.
The expected return on a portfolio is calculated as the weighted average of the expected returns on the securities that the portfolio involves. The weight of each security is the a Portion or a fraction of wealth invested in that security. Expected return on a portfolio of N securities is: rp= sum (Xr).
Expected Return is usually based on anticipated income and anticipated capital appreciation.
Liberty Corporation was authorized to issue 300,000 shares of $5 par value common stock. Liberty issued 60,000 shares of common stock on January 15, 2020, at $15 per share. Required a. Record the entry on June 30, 2020, for purchase of 6,600 common shares for the treasury at $18 per share. b. Record the entry on September 20, 2020, for sale of 2,400 treasury shares at $21 per share. c. Record the entry on November 3, 2020, for sale of 1,500 treasury shares at $17 per share.
Answer:
Liberty Corporation
Journal Entries:
January 15, 2020:
Debit Cash $900,000
Credit Common stock $300,000
Credit Additional Paid-in Capital $600,000
To record the issue of 60,000 shares of common stock at $15 per share.
a) June 30, 2020:
Debit Treasury Stock $33,000
Debit Additional Paid-in Capital $85,800
Credit Cash $118,800
To record the purchase of 6,600 treasury shares at $18 per share.
b) September 20, 2020:
Debit Cash $50,400
Credit Treasury Stock $12,000
Credit Additional Paid-in Capital $38,400
To record the sale of 2,400 treasury shares at $21 per share.
c) November 3, 2020:
Debit Cash $25,500
Credit Treasury Stock $7,500
Credit Additional Paid-in Capital $18,000
To record the sale of 1,500 treasury shares at $17 per share.
Explanation:
a) Data and Analysis:
Authorized common stock share capital of 300,000 at $5 = $1,500,000
January 15, 2020: Issued 60,000 shares at $15 per share:
Cash $900,000 Common stock $300,000 Additional Paid-in Capital $600,000
June 30, 2020: Purchased 6,600 for the treasury shares at $18 per share:
Treasury Stock $33,000 Additional Paid-in Capital $85,800 Cash $118,800
September 20, 2020: Sale of 2,400 treasury shares at $21 per share:
Cash $50,400 Treasury Stock $12,000 Additional Paid-in Capital $38,400
November 3, 2020: Sale of 1,500 treasury shares at $17 per share:
Cash $25,500 Treasury Stock $7,500 Additional Paid-in Capital $18,000
Glenville Company has the following information for April:
Cost of direct materials used in production $48,000
Direct labor 59,000
Factory overhead 37,000
Work in process inventory, April 1 40,000
Work in process inventory, April 30 40,000
Finished goods inventory, April 1 29,000
Finished goods inventory, April 30 18,000
Required:
For April, determine the cost of goods manufactured.
Answer:
cost of goods manufactured= $144,000
Explanation:
Giving the following information:
Cost of direct materials used in production $48,000
Direct labor 59,000
Factory overhead 37,000
Work in process inventory, April 1 40,000
Work in process inventory, April 30 40,000
To calculate the cost of goods manufactured, we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 40,000 + 48,000 + 59,000 + 37,000 - 40,000
cost of goods manufactured= $144,000
Assume that a business has $50000 of current assets and $40000 of current liabilities. What is the company’s current ratio?
Answer:
The company's current ratio is 1.25.
Explanation:
The current ratio is calculated by dividing the current assets by the current liabilities:
current assets=$50000
current liabilities=$40000
current ratio=$50000/$40000
current ratio=1.25
According to this, the answer is that the company's current ratio is 1.25.
from the video "the best stats you've ever seen "
what are some of the variables that rosling's graphs analyze? why are these factors important?
Answer:
michael jackson it about life
Explanation:
Following is the stockholders’ equity section from the The Coca-Cola Company 2017 balance sheet. (All amounts in millions except par value.)
The Coca-Cola Company Shareowners' Equity December 31, 2017
Common stock-$0.25 par value; authorized-11,200 shares; issued-7,040 shares $1,760
Capital surplus 15,864
Reinvested earnings 60,430
Accumulated other comprehensive income (loss) (10,305)
Treasury stock, at cost-2,781 shares (50,677)
Equity attributable to shareowners of The Coca-Cola Company $17,072
Required:
a. Compute the number of shares outstanding.
b. At what average price were the Coca-Cola shares issued? Round answer to two decimal places.
Answer and Explanation:
a. The computation of the no of shares outstanding is shown below:
No. of shares outstanding is
= shares issued - shares held as treasury stock
= 7,040 shares - 2,781 shares
= 4,259 shares
b. The average price is
= (Common Stock value + Capital Surplus) ÷ No. of shares issued
=($1,760 + $15,864) ÷ 4259 shares
= $4.14
One reason critics think advertising is wasteful is that: a. advertising is silent about things like product quality. b. businesses use deceptive methods of advertising which is harmful for consumers. c. large sums of money are spent on advertising that produces no consumer benefit. d. most ads are distasteful and send the wrong messages to consumers.
Answer:
c. large sums of money are spent on advertising that produces no consumer benefit
Explanation:
Critics consider advertising to be a waste because they believe that there is a large amount of financial resources being spent on advertising that will not be converted into benefits for the consumer, that is, they believe that it is a lot of money spent on communication marketing that it should be spent on product development, for example, in the form of converting investments into physical benefits that add greater value to the product and greater satisfaction for the consumer.
But a company that wants to become competitive and well positioned in the market, must allocate financial resources so that both things can be carried out, because advertising is extremely necessary to attract and retain potential consumers, since there is currently a great offer of them products available on the market and the company needs to develop a strategy that attracts consumers to its product, which can occur through well-developed advertising that generates consumer engagement and identification with the offered product.
Marigold Corp. incurs the following costs to produce 10100 units of a subcomponent: Direct materials $8484 Direct labor 11413 Variable overhead 12726 Fixed overhead 16200 An outside supplier has offered to sell Marigold the subcomponent for $2.85 a unit. If Marigold could avoid $3000 of fixed overhead by accepting the offer, net income would increase (decrease) by $838. $(3364). $6838. $(5929).
Answer:
The effect on net income is an increase by $6838.
Explanation:
Analysis of Accepting Special Offer
Savings :
Direct materials $8,484
Direct labor $11,413
Variable overhead $12,726
Fixed Overheads $3,000 $35,623
Total Savings
Costs :
Purchase Price ( $2.85 x 10,100 units) ($28,785)
Effect on Net Income $6,838
Note : We have considered the avoidable component of fixed costs in this calculation. Ignore common fixed costs (unavoidable) since they are irrelevant for decision making.
Conclusion :
The effect on net income is an increase by $6838.
Scenario: You are in the market for a new car. You do not have a trade-in, but you have saved $3,000 toward a down payment. You currently earn $3,750.00 gross monthly income, of which 28% is withheld for various deductions. You have heard of the 20% rule of thumb, but want to limit your payments to no more than 18% of your net monthly income because of other debt commitments. You currently have a credit score of 685. You expect to drive the car an average 15,000 miles per year. You're considering purchasing a used-rather than new car. This strategy offers several advantages.
1. Which of the following is not an advantage of purchasing a used car?
A. The reduced down payment required for the purchase.
B. A lack of knowledge and confidence in the mechanical condition of the car.
C. The price of the automobile.
D. Avoidance of the vehicle's significant decrease in value due to depreciation.
2. Which of the following will directly affect the final cost of a new car if you elect to purchase the vehicle?
A. The amount of the trade-in on an existing vehicle (if applicable).
B. The color of the vehicle.
C. The extent to which you dress up when you negotiate the purchase.
D. The amount of any rebate or incentives associated with the purchase of the new vehicle.
E. The period or term of any loan used to finance the purchase.
3. Alternatively, after seeing several television commercials suggesting the benefits of leasing a new automobile, you’ve started thinking about the phenomenon of leasing. Which of the following statements regarding leasing is true?
A. If you select to use a closed-end lease, then you’ll be free from any final payment. That’s why they call it a walkaway lease.
B. Leasing can result in lower monthly payments than would be incurred if you purchased the vehicle.
C. Customary end-of-term charges on a lease can include a disposition fee, an early termination charge, and an excess mileage charge.
D. If you use an open-end lease, you’ll be required to pay the difference between the vehicle’s projected residual value and its actual market value.
E. Leases work best for people who want to drive a vehicle for years and years, and drive at least 30,000 miles every year.
4. A lease payment is based on four variables. Which of the following is not one of these variables?
A. The money, or lease, factor.
B. The vehicle’s residual value.
C. The closed-end premium.
5. Being upside down in a loan is the same as having:____.
A. Negative equity.
B. A negative interest rate.
6. Complete the following table to determine your desired maximum monthly payment.
Gross income (monthly) $
Deductions (dollar amount) $
Take-home pay $
Percentage allotted for car payment %
Maximum monthly payment $
7. You have decided to purchase a new car and have negotiated the price. A four-year loan is resulting in payments of $586.00 per month. How might you get your monthly payment down to your desired monthly goal?
A. Shop for a loan with a higher interest rate.
B. Extend the term of the loan from four to five years.
C. Shorten the term of the loan from four to three years.
D. Shop for a loan with a lower interest rate.
8. A good credit score is an important factor when buying a car because it allows you to (1)____obtain financing terms, and (2)_____afford a expensive or better vehicle for the same loan amount.
Answer:
Market for a New Car
1. A disadvantage of purchasing a used car:
B. A lack of knowledge and confidence in the mechanical condition of the car.
2. D. The amount of any rebate or incentives associated with the purchase of the new vehicle.
3. B. Leasing can result in lower monthly payments than would be incurred if you purchased the vehicle.
4. C. The closed-end premium.
5. Being upside down in a loan is the same as having:____.
A. Negative equity.
6. Gross income (monthly) $3,750
Deductions (dollar amount) $1,050
Take-home pay $2,700
Percentage allotted for car payment 18%
Maximum monthly payment $486
7. Using the savings towards a down payment can help reduce the monthly payment to $486 from $586.
Explanation:
a) Data and Calculations:
Savings towards down payment = $3,000
Gross monthly income = $3,750
Withholdings = 28% 1,050 ($3,750 * 28%)
Net after withholdings $2,700
Payment for car
limited to 18% $486
Net after car payment $2,214
What is a planned economy regulated by?
Explanation:
The government regulates the interactions between producers and consumers.
Judge made laws are known as
7. You are considering the possibility of replacing an existing machine that has a book value of $500,000, a remaining depreciable life of five years, and a salvage value of $300,000. The replacement machine will cost $2 million and have a ten-year life. Assuming that you use straight-line depreciation and that neither machine will have any salvage value at the end of the next ten years, how much would you need to save each year to make the change (the tax rate is 40 percent)
Answer:
$221344.48
Explanation:
Book value of existing machine = $500,000
remaining depreciable life = 5 years
salvage value = $300,000
cost of replacement machine = $2 million
depreciable life = 10 years
Tax rate = 40 %
Difference in the cost of new machine and salvage value of existing machine
= 2,000,000 - 300,000 = $1,700,000
Calculate the depreciation tax benefit of new machine = ( 500,000 / 5 ) * 0.4 = $40,000
next calculate the present value of this tax benefit
= $40000,PVAF(1.10,5years)^5 ------- ( 1 )
where the Annuity of 5 years at 10% = 1/(1.10)5 = 3.7907)
Insert value into equation 1 (to calculate the present value of the tax benefit
= 40000*3.79078676 = $1,51,631.47 ( present value of tax benefit )
Determine the Annual depreciation tax advantage of the new machine
= (2,000,000/10)*0.40 = $80,000
Determine present value of this annuity
= $80,000,PVAF(1.10,10years)^10 ------ ( 2 )
where the Annuity of 5 years at 10% = 1/(1.10)^10 ) = 6.144567
Insert value into equation2 ( to calculate the present value of this annuity )
= 80000 * 6.144567 = $491565.36
Therefore the Net cost of the new machine will be
= $491565.36 - $151631.47 - $1,700,000 = $1,360,066
Annual savings on the new machine in 10 years
= 1,360,066 / 6.144567 = $221344.48
you are required to write a report and in this report you are to consider the importance of understanding the business environment
Answer:
The understanding of its business environment helps an organization to make realistic plans and ensure their effective implementation. It also helps thebusiness enterprise in identification of opportunities and threats.
Explanation:
I am not sure if this is what you wanted
Provide an example of two companies that have built in effective co-opetition. Briefly explain the benefit of the relationship describe one job that once existed but today is obsolete or slowly becoming obsolete because of technology provide an exampled of two companies that have built a strategic alliance. Briefly explain the benefits of the relationship.
Answer:
Microsoft and Apple, Samsung and sony.
Explanation:
Samsung electronics and sony formed an agreement in 2004 for use of shared knowledge and resources in designing flat television screens. A strategic alliance is a collaboration or a synergy where each partner gets the benefits of the alliance. Jobs such as travel agencies, cashiers, textile workers. A strategic alliance consists of healthy behavior, long terms goals, and better customer satisfaction.A US company makes furniture and uses large amounts of exotic woods. How will quotas on imported wood affect he price of the product and the
marketing plans?
Answer: See explanation
Explanation:
A quota is simply referred to as a limited quantity of a product that can either be produced in a country or imported or exported under official controls. A quota is usually done to limit importation of goods and encourage local production.
Since the US company makes use of large amount of exotic goods which are usually imported, this will bring about a reduction in the supply of furniture as there'll be decrease in wood.
This will hence lead to an increase in price of the available furniture. This will certainly have a negative effect on the marketing plan of the company.
Item4 3 points eBookHintPrintReferencesItem 4 Spotter Corporation reported the following for June in its periodic inventory records. Date Description Units Unit Cost Total Cost June 1 Beginning 12 $ 8 $ 96 11 Purchase 38 9 342 24 Purchase 20 11 220 30 Ending 24 Required: Calculate the cost of ending inventory and the cost of goods sold under the (a) FIFO, (b) LIFO, and (c) weighted average cost methods.
Answer:
a. FIFO
cost of ending inventory = $256
cost of goods sold = $402
b. LIFO
cost of ending inventory = $204
cost of goods sold = $454
c. Weighted average cost
cost of ending inventory = $225.60
cost of goods sold = $432.40
Explanation:
Periodic method means cost of sales and inventory balance are determined at the end of the period.
Step 1 : Units Sold
Units Sold = Units available for Sale - Units in Inventory
= (12 + 38 + 20) - 24
= 46
Step 2 : FIFO
FIFO assumes that the units to arrive first, will be sold first.
cost of ending inventory = 20 x $11 + 4 x $9 = $256
cost of goods sold = 12 x $8 x 34 x $9 = $402
Step 3 : LIFO
LIFO assumes that the units to arrive last, will be sold first.
cost of ending inventory = 12 x $9 + 12 x $8 = $204
cost of goods sold = 20 x $11 x 26 x $9 = $454
Step 4 : Weighted average cost
Weighted average cost method calculates a new unit cost with every purchase made. this unit cost is then used to calculated cost of sale and ending inventory.
Unit Cost = Total Costs ÷ Units available for sale
= (12 x $8 + 38 x $9 + 20 x $11 ) ÷ (12 + 38 + 20)
= $9.40
cost of ending inventory = Units in Inventory x Unit Cost
= 24 x $9.40
= $225.60
cost of goods sold = Units Sold x Unit Cost
= 46 x $9.40
= $432.40
The Mighty Music Company produces and sells a desktop speaker for $100. The company has the capacity to produce 50,000 speakers each period. At capacity, the costs assigned to each unit are as follows: Unit level costs $ 45 Product level costs $ 15 Facility level costs $ 5 The company has received a special order for 500 speakers. If this order is accepted, the company will have to spend $15,000 on additional costs. Assuming that no sales to regular customers will be lost if the order is accepted, at what selling price will the company be indifferent between accepting and rejecting the special order
Answer:
$75
Explanation:
Calculation to determine what selling price will the company be indifferent between accepting and rejecting the special order
Using this formula
Selling price between accepting and rejecting the special order= ( Additional cost ÷ Units sold number) + Unit level Cost
Let plug in the formula
Selling price between accepting and rejecting the special order= ( $15,000 ÷ 500 ) + $45
Selling price between accepting and rejecting the special order= $30 + $45
Selling price between accepting and rejecting the special order= $75
Therefore The selling price that the company will be indifferent between accepting and rejecting the special order is $75
Beck Manufacturing reports the following information in T-account form for 2019. Raw Materials Inventory Begin. Inv. 11,600 Purchases 57,000 Avail. for use 68,600 DM used 48,000 End. Inv. 20,600 Work in Process Inventory Begin. Inv. 16,000 DM used 48,000 Direct labor 31,100 Overhead 57,000 Manuf. costs 152,100 Cost of goods manuf. 138,200 End. Inv. 13,900 Finished Goods Inventory Begin. Inv. 17,200 Cost of goods manuf. 138,200 Avail. for sale 155,400 Cost of Goods Sold 136,500 End. Inv. 18,900 Required: 1. Prepare the schedule of cost of goods manufactured for the year. 2. Compute cost of goods sold for the year.
Answer:
Beck Manufacturing
1. Schedule of the Cost of Goods Manufactured for the year:
Beginning WIP Inventory 16,000
Direct Materials used 48,000
Direct labor 31,100
Overhead applied 57,000
Total manufacturing costs 152,100
Less Ending WIP Inventory 13,900
Cost of goods manufactured 138,200
2. Cost of goods sold for the year:
Beginning Finished Goods 17,200
Cost of goods manufactured 138,200
Goods available for sale 155,400
Less Ending Finished Goods 18,900
Cost of Goods Sold 136,500
Explanation:
a) Data and Calculations:
T-account form for 2019.
Raw Materials Inventory
Account Title Debit Credit
Begin. Inv. 11,600
Purchases 57,000
DM used 48,000
End. Inv. 20,600
Avail. for use 68,600 68,600
Work in Process Inventory
Account Title Debit Credit
Begin. Inv. 16,000
DM used 48,000
Direct labor 31,100
Overhead 57,000
Cost of goods manuf. 138,200
End. Inv. 13,900
Manuf. costs 152,100 152,100
Finished Goods Inventory
Account Title Debit Credit
Begin. Inv. 17,200
Cost of goods
manufacture 138,200
Cost of Goods Sold 136,500
End. Inv. 18,900
Avail. for sale 155,400 155,400
The management of Mitchell Labs decided to go private in 2002 by buying all 3.30 million of its outstanding shares at $17.50 per share. By 2006, management had restructured the company by selling off the petroleum research division for $13.50 million, the fiber technology division for $9.25 million, and the synthetic products division for $23 million. Because these divisions had been only marginally profitable, Mitchell Labs is a stronger company after the restructuring. Mitchell is now able to concentrate exclusively on contract research and will generate earnings per share of $1.40 this year. Investment bankers have contacted the firm and indicated that if it reentered the public market, the 3.30 million shares it purchased to go private could now be reissued to the public at a P/E ratio of 12 times earnings per share.
Required:
a. What was the initial cost to Mitchell Labs to go private?
b. What is the total value to the company from (1) the proceeds of the divisions that were sold, as well as (2) the current value of the 3.30 million shares (based on current earnings and an anticipated P/E of 12)?
c. What is the percentage return to the management of Mitchell Labs from the restructuring?
Answer: See explanation
Explanation:
a. What was the initial cost to Mitchell Labs to go private?
This will be calculated as:
= Price per share × Number of shares
= $17.50 × 3.3 million
= $57.75 million
b. What is the total value to the company from (1) the proceeds of the divisions that were sold, as well as (2) the current value of the 3.30 million shares (based on current earnings and an anticipated P/E of 12)?
This will be calculated as:
= $13.5 Million + $9.25 Million + $23 Million + [(12 X $ 1.40) × 3.3 Million]
= $45.75 Million + $55.44 Million
= $101.19 Million
c. What is the percentage return to the management of Mitchell Labs from the restructuring?
This will be calculated as:
= {$101.19 Million - $57.75 Million} /$57.75 Million
= $43.44/$57.75 × 100
= 0.7522 × 100
= 75.22%
e) Wesley Publishing has an office in England that would like the American office to share their
data on profits. What steps should the American office take in order to determine the profits in
pounds for the England office? (2 points)
I
Answer:
He should make sure he has the right profits then he should see how much things are going to cost, and then finalize it.
Explanation:
Sorry y'all I am having troubles with this assignment sorry if I get it wrong
Following is the stockholders’ equity section of the balance sheet for The Procter & Gamble Company along with selected earnings and dividend data. For simplicity, balances for noncontrolling interests have been left out of income and shareholders' equity information.
$ millions except per share amounts 2014 2013
Net earnings attributable to Procter $10,956 $11,797
& Gamble shareholders
Common dividends 5,883 5,534
Preferred dividends 256 233
Basic net earnings per common share $3.82 $4.12
Diluted net earnings per common share $3.66 $3.93
Shareholders' equity:
Convertible class A preferred stock, $1,195 $1,234
stated value $1 per share
Common stock, stated value $1 per share 4,008 4,008
Additional paid-in capital 63,181 62,405
Treasury stock, at cost (shares held: (69,604) (67,278)
2014--1260.8; 2013--1242.6)
Retained earnings 75,349 70,682
Accumulated other comprehensive (9,333) (2,054)
income/(loss)
Other (761) (996)
Shareholders' equity attributable to $64,035 $68,001
Procter & Gamble shareholders
a. Compute the number of common shares outstanding at the end of each fiscal year. Estimate the average number of shares outstanding during 2014. Round to one decimal place.
2014 million
2013 million
2014 Average million
b. Calculate the average cost per share of the shares held as treasury stock at the end of each fiscal year. Round to two decimal places.
2014
2013
c. In 2014, preferred shareholders elected to convert 40 million shares of preferred stock into common stock. Rather than issue new shares, the company granted 40 million shares held in treasury stock to the preferred shareholders. Prepare a journal entry to illustrate how this transaction would have been recorded. (Hint: use the cost per share for 2013 determined in b.) Enter answers in millions. Round to the nearest million.
Description Debit Credit
Preferred stockTreasury stockAdditional paid-in capital
Additional paid-in capital
Preferred stockTreasury stockAdditional paid-in capital
d. Calculate P&G's return on common equity (ROCE) for fiscal 2014. Round to one decimal place.
2014
Answer:
See below
Explanation:
a.
2014 $2,747.2 Million
2013 $2,765.4 Million
2014 Average $2,756.3 Million
Working
2014 4,008.0 - 1,260.8 = $2,747.2
2013 4,008.0 - 1,242.6 = $2,765.4
b.
2014 $54.14
2013 $55.21
c.
Account title
Preferred stock A/c Dr. $40.0
Additional paid in capital A/c Dr. $2,128.4
To Treasury stock A/c Cr. $2,168.4
d.
Net earnings attributable to P and G shareholders
$10,956
Shareholder's equity attributable to P and G shareholders $64,035
ROCE
($10,956 / $64,035) × 100
17.1%
