Answer:
Jordan Enterprises
1) The impairment loss = $110,000.
2) Journal Entry to record the impairment loss:
Debit Broadcast License Impairment Loss $110,000
Credit Accumulated Impairment Loss $110,000
Explanation:
a) Data and Calculations:
Broadcast license original cost (book value) = $786,000
Market value of similar broadcast license = 676,000
Impairment loss = $110,000
b) US GAAP defines impairment loss as the decrease in an asset's net carrying value. This means that impairment loss arises when the book or net carrying value is greater than the future estimated cash flows or the market value of the asset.
In June 2000, the SEC brought civil charges against seven top executives of Cendant Company. The SEC alleged that these officials had, among other things, inflated income by more than $100 million through improper use of company reserves. These proceedings were a result of a longstanding investigation by the SEC of financial fraud that started back in the 1980s. In your opinion, in which stage of the criminal litigation process is this case? Why?
Answer:
First stage
Explanation:
Filing of criminal charges against an offender is usually the first stage in a criminal litigation process. The investigation carried out by SEC is a preliminary process and may not be counted as First stage.
The criminal litigation process is made up seven ( 7 ) process and the investigative part of the process is to Identify the civil charges
Akers Company sold bonds on July 1, 20X1, with a face value of $100,000. These bonds are due in 10 years. The stated annual interest rate is 6% per year, payable semiannually on June 30 and December 31. These bonds were sold to yield 8%. By July 1, 20X2, the market yield on these bonds had risen to 10%.
Required:
What was the bonds' market price on July 1 20x2?
Answer:
$76,620.83
Explanation:
According to the scenario, computation of the given data are as follows
Future Value (FV) = $100,000
Rate of interest = 10% yearly
Rate of interest (Rate) = 10%÷ 2 = 5% semiannually
Number of period (Nper) = 9 × 2 = 18
Face value = $100,000
Payment (pmt) = $100,000 × (6%÷2) = $3,000
By putting the value in excel present value formula, we get,
PV = $76,620.83
Attachment is attached below
When converting net income to net cash provided (used) by operating activities under the indirect method increases in accounts receivable and increases in accrued liabilities are deducted. decreases in accounts payable and decreases in inventory are deducted. decreases in accounts receivable and increases in prepaid expenses are added. decreases in inventory and increases in accrued liabilities are added.
Answer:
Decrease in inventory and increases in accrued liabilities are added.
Explanation:
Murray Motor Company wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay dividends (D1) of $1.30 per share, and the current price of its common stock is $40 per share. The expected growth rate is 5 percent. a. Compute the cost of retained earnings (Ke). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
Jerry is working on a research project about the effectiveness of social media marketing. He found some sources with information relevant to his project, and he’s trying to determine which ones are credible. Which THREE sources should he select to use for his project?
A.
a journal article titled “Marketing Strategies: Social Media” by a university professor
B. an article titled “Tips for Effective Social Media Marketing” on a government agency website
C. a social media post promoting a new product launched by a reputable business
D. a business magazine article titled “Why Social Media Marketing Works” by a journalist
E. a blog post titled “My Social Media Marketing Success” by an unknown author
Answer: A. a journal article titled “Marketing Strategies: Social Media” by a university professor
B. an article titled “Tips for Effective Social Media Marketing” on a government agency website
D. a business magazine article titled “Why Social Media Marketing Works” by a journalist.
Explanation:
When conducting a research, it is important for one to use good and credible sources.
Since Jerry is working on a research project about the effectiveness of social media marketing, the three sources that should be selected are:
A. journal article titled “Marketing Strategies: Social Media” by a university professor
B. an article titled “Tips for Effective Social Media Marketing” on a government agency website
D. A business magazine article titled “Why Social Media Marketing Works” by a journalist.
Option C should not be selected as it's a social media post and isn't regarded as a credible source. Also, option E should not be selected as it's a blog and the post is by an unknown author.
Therefore, the correct options are A, B and D.
Answer:
1,2, and 4
Explanation:
I took the test and got a 100
Required information: Analyzing income effects from eliminating departments.
Suresh Co. expects its five departments to yield the following income for next year.
Dept. M Dept. N Dept. O Dept. P Dept. T Total
Sales $66,000 $38,000 $59,000 $45,000 $31,000 $239,000
Expenses
Avoidable 11,300 38,200 23,300 15,500 40,500 128,800
Unavoidable 53,000 14,400 4,500 31,200 11,900 115,000
Total expenses 64,300 52,600 27,800 46,700 52,400 243,800
Net income (loss) $1,700 $(14,600) $31,200 $(1,700) $(21,400) $(4,800)
Re-compute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios.
1) Management eliminates departments with sales dollars that are less than avoidable expenses.
2) Management eliminates departments with expected net losses.
Answer and Explanation:
The computation and the preparation is presented below:
1.
Particulars Dept. M Dept. N Dept. O Dept. P Dept. T Total
Sales $66,000 $59,000 $45,000 $170,000
Expenses
Avoidable $11,300 $23,300 $15,500 $50,100
Unavoidable $53,000 $14,400 $4,500 $31,200 $11,900 $115,000
Total expense $64,300 $14,400 $27,800 $46,700 $11,900 $165,100
Net income
or loss $1,700 -$14,400 $31,200 -$1,700 -$11,900 $4,900
2.
Particulars Dept. M Dept. N Dept. O Dept. P Dept. T Total
Sales $66,000 $59,000 $125000
Expenses
Avoidable $11,300 $23,300 $34,600
Unavoidable $53,000 $14,400 $4,500 $31,200 $11,900 $115,000
Total expense $64,300 $14,400 $27,800 $31,200 $11,900 $149,600
Net income
or loss $1,700 -$14,400 $31,200 -$31,200 -$11,900 -$24,600
The following information pertains to Lightning Inc., at the end of December: Credit Sales $ 20,000 Accounts Payable 10,000 Accounts Receivable 11,800 Allowance for Uncollectible Accounts 400 credit Cash Sales 20,000 Lightning uses the aging method and estimates it will not collect 7% of accounts receivable not yet due, 20% of receivables up to 30 days past due, and 46% of receivables greater than 30 days past due. The accounts receivable balance of $11,800 consists of $7,500 not yet due, $2,300 up to 30 days past due, and $2,000 greater than 30 days past due. What is the appropriate amount of Bad Debt Expense
Answer:
The appropriate amount of Bad Debt Expense is $3,345.20.
Explanation:
The appropriate amount of Bad Debt Expense can be calculated as follows:
Bad debt expense = (Percentage of accounts receivable not yet due it will not collect * Accounts receivable not yet due) + (Percentage of receivables up to 30 days past due it will not collect * Amount of receivables up to 30 days past due) + (Parentage of receivables of receivables greater than 30 days past due it will not collect * Amount of receivables greater than 30 days past due) - Allowance for Uncollectible Accounts (credit) ……………………… (1)
Substituting the relevant values into equation (1), we have:
Bad debt expense = (7% * $7,500) + (20% + $2,300) + (46% * $2,000) - $400 = $3,345.20
Therefore, the appropriate amount of Bad Debt Expense is $3,345.20.
Cominsky Company purchased a machine on July 1, 2018, for $28,000. Cominsky paid $200 in title fees and county property tax of $125 on the machine. In addition, Cominsky paid $500 shipping charges for delivery, and $475 was paid to a local contractor to build and wire a platform for the machine on the plant floor. The machine has an estimated useful life of 6 years with a salvage value of $3,000.
Determine the depreciation base of Cominsky’s new machine. Cominsky uses straight-line depreciation.
Depreciation base $
Entry field with incorrect answer now contains modified data
Answer:
$26,300
Explanation:
Depreciation Base is the total amount charged to expenses over an asset's useful life.
In Straight line method of Depreciation:
Depreciation Base = (Cost of Asset - Salvage Value)
Cost of Asset $28,000 + $200 + $125 + $500 + $475
Cost of Asset = $29,300
Depreciable Base = $29,300 - $3,000
Depreciable Base = $26,300
Which is NOT a reason companies integrate horizontally?
A To expand internationally.
B Tobe in control of the resources used in the production process.
C To expand brand equity across new product lines.
D To increase production capacity.
Super Clinics offers one service that has the following annual cost and utilization estimates: Variable cost per visit $ 10 Annual direct fixed costs $50,000 Allocation of overhead costs $20,000 Expected utilization 1,000 visits What price per visit must be set if the clinic wants to make an annual profit of $10,000 on the service? A. $ 70 B. $ 80 C. $ 90 D. $100 E. $110
Answer:
C. $ 90
Explanation:
Number of visits = 1,000
Variable cost = $10 × 1,000 = $10,000
Fixed cost = $50,000
Overhead cost = $20,000
Required profit = $10,000
So,Total Cost = Variable Cost+ Fixed Cost+ Overhead Cost
= $10,000 + $50,000 + $20,000
= $80,000
Now, Price per Visit = (Total Cost+ Required Profit) ÷ Number of visits
= ($80,000 + $10,000) ÷ 1,000
= $90,000 ÷ 1,000
= $90
Crane, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 200 pressure gauges were produced, and overhead costs of $72,750 were estimated. An analysis of estimated overhead costs reveals the following activities. Activities Cost Drivers Total Cost 1. Materials handling Number of requisitions $30,000 2. Machine setups Number of setups 23,750 3. Quality inspections Number of inspections 19,000 $72,750 The cost driver volume for each product was as follows. Cost Drivers Instruments Gauges Total Number of requisitions 375 625 1,000 Number of setups 175 300 475 Number of inspections 225 250 475
Answer:
Requirement: Determine the overhead rate for each activity "Materials handling, Machine setups, Quality inspections"
Materials handling overhead rate = Total cost / Cost driver volume
Materials handling overhead rate = $30,000 / 1,000
Materials handling overhead rate = $30
Machine setups overhead rate = Total cost / Cost driver volume
Machine setups overhead rate = $23,750 / 475
Machine setups overhead rate = $50
Quality inspections overhead rate = Total cost / Cost driver volume
Quality inspections overhead rate = $19,000 / 475
Quality inspections overhead rate = $40
rr Co. adopted the dollar-value LIFO inventory method on December 31, Year 12.Farr's entire inventory constitutes a single pool. On December 31, Year 12, the inventorywas $480,000 under the dollar-value LIFO method. Inventory data for Year 13 are asfollows:12/31/13 inventory at year-end prices$660,000Relevant price index at year end (base year Year 12)110Using dollar value LIFO, Farr's inventory at December 31, Year 13 isa.$528,000.b.$612,000.c.$600,000.d.$660,000
Answer:
b. $612,000
Explanation:
Dec 31, 2013 inventory = $660,000
Value of Dec 31, 2013 inventory at base year (2012) prices = $660,000/110*100 = $600,000
The real-dollar quantity increase in inventory = ($600,000 - $480,000) = $120,000
Value of this real dollar quantity increase in inventory at Dec 31, 2013 prices= $120,000 * 110/100 = $132,000 (LIFO layer to the Dec 31, 2012 inventory)
Value of Dec 31, 2013 inventory = Dec 31, 2012 inventory + The value of LIFO layer formed
Value of Dec 31, 2013 inventory = $480,000 + $132,000
Value of Dec 31, 2013 inventory = $612,000
g Earnings per share Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow: 20Y5 20Y6 Net income $1,687,000 $2,632,000 Preferred dividends $40,000 $40,000 Average number of common shares outstanding 90,000 shares 120,000 shares a. Determine the earnings per share for 20Y5 and 20Y6. Round to two decimal places. 20Y5 20Y6 Earnings per Share $fill in the blank 1 $fill in the blank 2 b. Is the change in the earnings per share from 20Y5 to 20Y6 favorable or unfavorable
Answer:
a) EPS
2005 Earnings per share=$18.3
2005 Earnings per share=$21.6
b) EPS Variance = $3.3 favorable
Explanation:
Earnings per share(EPS) is the total earnings attributable to ordinary shareholders divided by the number of units of common stock
Earnings attributable to ordinary shareholders= Net income after tax - preference dividend
Earnings per share = (Net income after tax - preference dividend)/Number of shares
2005 Earnings per share = $1,687,000- $40,000/90,000 shares=$18.3
2006 Earnings per share=($2,632,000- $40,000)/120,000 shares=$21.6
2005 Earnings per share=$18.3
2006 Earnings per share=$21.6
EPS Variance
Comparing the EPS the Earning per share in 2006 is higher than that of 2005. Hence, the variance = 21.6-18.3= $3.3 favorable
EPS Variance = $3.3 favorable
The Ring Division of A1d-Y6z Company reported the following information for May: selling price per unit .................... $35 variable costs per unit ................... $12 turnover .................................. 2.50 residual income ........................... $229,600 margin .................................... 22% units sold ................................ 40,000 Calculate the number of units the Ring Division needed to sell in May in order for the residual income in May to be $505,600.
Answer:
52,000 units
Explanation:
Selling price = $35*40,000 = $1,400,000
Variable cost = $12 * 40,000 = $480,000
Contribution margin = $1,400,000 - $480,000 = $920,000
Fixed cost = Residual income + Contribution
Fixed cost = $920,000 - $229,600
Fixed cost = $690,400
Sales to earn residual income = [Fixed cost + Desired profit] / Contribution per unit
Sales to earn residual income = [$690,400 + $505,600] / $35 - $12
Sales to earn residual income = $1,196,000 / $23
Sales to earn residual income = 52,000 units
Borges Machine Shop, Inc. has a 1-year contract for the production of 200,000 gear housings for a new off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient dedicated machine (DM). The cost data follow:
General Purpose Flexible Manufacturing Dedicated
Equipment System Machine
GPE FMS DM
Annual contracted units 200,000 200,000 200,000
Annual fixed cost $100,000 $200,000 $500,000
Per unit variable cost $15 $14 $13
Which process is best for this contract?
Answer:
FMS
Explanation:
The computation is shown below;
For GPE
Given that
Annual contracted unit(Q) = 200000 units
Fixed cost (FC) = $100000
Variable cost (VC) = $15
Now
Total cost = FC + (Q × VC)
= 100000 + (200000 × 15)
= 100000 + 3000000
= $3100000
For FMS
Given that
Annual contracted unit(Q) = 200000 units
Fixed cost (FC) = $200000
Variable cost (VC) = $14
Total cost = FC + (Q × VC)
= 200000 + (200000 × 14)
= 200000 + 2800000
= $3000000
For DM
Given that
Annual contracted unit(Q) = 200000 units
Fixed cost (FC) = $500000
Variable cost (VC) = $13
Total cost = FC + (Q × VC)
= 500000 + (200000 × 13)
= 500000 + 2600000
= $3100000
So for this type of contract FMS is best as it contains the lowest total cost.
One thousand adults live in Milltown. Every day, they all leave work at 4:30 p.m., arrive home at exactly 5:00 p.m., and go to bed at 9:00 p.m. Three fundraisers, Alpha, Beta, and Charlie, have targeted Milltown's population. To get a donation, they must call Milltown's residents after they get home from work but before they go to bed. Because the charities raising the funds are identical, the first to call a willing donor will get the donation. Beta's manager has decided that the best time to call is 7:00 p.m. because it is exactly halfway between 5:00 p.m. and bedtime. Which of the following is true?
a. Alpha and Charlie will also make calls at 7:00 p.m.
b. Beta's manager did not choose wisely.
c. Alpha and Charlie will divide up the rest of the market, with one choosing to call at 6:00 p.m. and the other at 8:00 p.m.
d. Beta is certain to generate the most donations.
Answer:
b. Beta's manager did not choose wisely.
Explanation:
If you know that you are competing with identical charities, calling later will only result in fewer donations. The calls should start at 5 PM, and probably the three fundraisers will start calling at the same time. The only advantage that they can have depends on reaching the adults first, so the time of the calls is important.
"Minimum wage laws cause unemployment because the legal minimum wage is set" 9) A) above the market wage, causing labor demand to be greater than labor supply. B) below the market wage, causing labor demand to be greater than labor supply. C) too low. D) below the market wage, causing labor demand to be less than labor supply. E) above the market wage, causing labor demand to be less than labor supply.
Answer: E) above the market wage, causing labor demand to be less than labor supply.
Explanation:
Minimum wage simply refers to the lowest wage that employers can pay their workers. Minimum wage is a form of price floor which means that it's typically higher than the equilibrium or market wage.
In this case, since it's higher than the market wage, there'll be an increase in the supply of labor as those that are unemployed will be willing to work duw to the increase in the wage rate.
On the other hand, there'll be a reduction in the demand for labor as employers typically will want to reduce cost and won't be interested in employing more workers.
Therefore, the correct option is E
Labeau Products, Ltd., of Perth, Australia, has $21,000 to invest. The company is trying to decide between two alternative uses for the funds as follows:
Invest in Invest in
Project X Project Y
Investment required $ 21,000 $ 21,000
Annual cash inflows $ 8,000
Single cash inflow at the end of 6 years $50,000
Life of the project 6 years 6 years
The company’s discount rate is 18%.
Required:
Determine the net present values. (Any cash outflows should be indicated by a minus sign.
Answer:
Project X = $6,980.82
Project Y = - $2,478.42
Explanation:
The Present value is the price today of future cash flows and is calculated as follows :
Project X
($21,000) CF 0
$8,000 CF 1
$8,000 CF 2
$8,000 CF 3
$8,000 CF 4
$8,000 CF 5
$8,000 CF 6
I/YR = 18%
Therefore, NPV is $6,980.82
Project Y
($21,000) CF 0
$0 CF 1
$0 CF 2
$0 CF 3
$0 CF 4
$0 CF 5
$50,000 CF 6
I/YR = 18%
Therefore, NPV is - $2,478.42
oneycutt Co. is comparing two different capital structures. Plan I would result in 39,000 shares of stock and $108,000 in debt. Plan II would result in 33,000 shares of stock and $324,000 in debt. The interest rate on the debt is 7 percent. a. Ignoring taxes, compare both of these plans to an all-equity plan assuming that EBIT will be $160,000. The all-equity plan would result in 42,000 shares of stock outstanding. What is the EPS for each of these plans
Answer:
All equity plan:
EPS = $160,000 / 42,000 = $3.81
Plan I:
EPS = [$160,000 - ($108,000 x 7%)] / 39,000 = $152,440 / 39,000 = $3.91
Plan II:
EPS = [$160,000 - ($324,000 x 7%)] / 33,000 = $137,320 / 33,000 = $4.16
Plan II is better since the resulting EPS is higher than the other alternatives.
Wildhorse Co. had the following assets on January 1, 2022. Useful Life (in years) Item Cost Purchase Date Useful Life (in years) Salvage Value Machinery $68,000 Jan. 1, 2012 10 $ 0 Forklift 27,000 Jan. 1, 2019 5 0 Truck 33,400 Jan. 1, 2017 8 3,000 During 2022, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $11,700. The truck was discarded on December 31. Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Solution :
Journal Entry
Date Account and Explanation Debit Credit
1 Jan,2022 Accumulated depreciation-machine $ 68,000
Machine $ 68,000
30 June, Depreciation expense, [tex]$\left(\frac{27000}{5} \times \frac{6}{12}\right)$[/tex] $ 2700
2022 Accumulated depreciation- Forklift $ 2700
30 June, Cash $ 11,700
2022 Accumulated depreciation- Forklift, $ 18,900
[tex]$\left(\frac{27000}{5} \times 3.5 \right)$[/tex]
Gain on sale of forklift $ 3600
Forklift $ 27000
31 Dec, Depreciation expense, [tex]$\left( \frac{33400-3000}{8}\right)$[/tex] $ 3800
2022 Accumulated depreciation - Truck $ 3800
31 Dec, Accumulated depreciation - Truck, $ 22800
2022 [tex]$\left( \frac{33400-3000}{8} \times 6\right)$[/tex]
Loss on disposal of truck $ 10600
Truck $ 33400
The Foundational 15 (Static) [LO13-2, LO13-3, LO13-4, LO13-5, LO13-6] Skip to question [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $120 and $80, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 100,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $ 30 $ 12 Direct labor 20 15 Variable manufacturing overhead 7 5 Traceable fixed manufacturing overhead 16 18 Variable selling expenses 12 8 Common fixed expenses 15 10 Total cost per unit $ 100 $ 68 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Foundational 13-1 (Static) Required: 1. What is the total amount of traceable fixed manufacturing overhead for each of the two products
Answer:
Cane Company
Total traceable fixed manufacturing overhead:
Alpha = $1,600,000
Beta = $1,800,000
Explanation:
a) Data and Calculations:
Alpha Beta
Selling price per unit $120 $80
Direct materials $ 30 $ 12
Direct labor 20 15
Variable manufacturing overhead 7 5
Traceable fixed manufacturing overhead 16 18
Variable selling expenses 12 8
Common fixed expenses 15 10
Total cost per unit $ 100 $ 68
Total traceable fixed manufacturing overhead:
Alpha = $1,600,000 ($16 * 100,000)
Beta = $1,800,000 ($18 * 100,000)
How much interest (to the nearest dollar) would be saved on the following loan if the condominium were financed for 15 rather than 30 years? A $256,000 condominium bought with a 30% down payment and the balance financed for 30 years at 3.05%
Answer:
The interest saved is $49569.228 or $49569.
Explanation:
Total price of Condominium=$256,000
Downpayment=30% of total price=30%x$256,000= 76800
Amount Financed=Total Payment-Downpayment
Amount Financed=256000-76800=179200
Annual Interest rate=3.05%
Monthly interest rate =[tex]\frac{3.05\%}{12}[/tex]=0.25146%
The montly installment is calculated as follows:
[tex]M=\dfrac{P}{\dfrac{1-\left(\dfrac{1}{1+\dfrac{r}{100}}\right)^{nt}}{\dfrac{r}{100}}}[/tex]
Here
M is the montly installmentP is the amount financedr is the montly rate in percentagen is the number of yearst is the number of months in a yearCase 1 when the number of years is 30.
So the equation becomes
[tex]M=\dfrac{P}{\dfrac{1-\left(\dfrac{1}{1+\dfrac{r}{100}}\right)^{nt}}{\dfrac{r}{100}}}\\\\M=\dfrac{179200}{\dfrac{1-\left(\dfrac{1}{1+\dfrac{0.25146}{100}}\right)^{30*12}}{\dfrac{0.25146}{100}}}\\\\M=\dfrac{179200}{\dfrac{1-\left(\dfrac{1}{1+0.0025146}\right)^{30*12}}{0.0025146}}\\\\M=\dfrac{179200}{\dfrac{1-\left(\dfrac{1}{1.0025146}\right)^{30*12}}{0.0025146}}\\\\M=\dfrac{179200\times {0.0025146}}{1-\left(\dfrac{1}{1.0025146}\right)^{30*12}}\\M=\dfrac{450.61632}{0.59510 }\\M=\$757.2087[/tex]
So the total amount paid in installments is
[tex]T=M\times n\times t[/tex]
So the equation becomes
[tex]T=M\times n\times t\\T=757.2087\times 30\times 12\\T=\$272595.132[/tex]
So the interest is given as
[tex]I=T-P\\I=272595.132-179200\\I=\$93395.132[/tex]
So a total interest of $93395.132 is paid when the amount is financed for 30 years.
Case 2 when the number of years is 15.
So the equation becomes
[tex]M=\dfrac{P}{\dfrac{1-\left(\dfrac{1}{1+\dfrac{r}{100}}\right)^{nt}}{\dfrac{r}{100}}}\\\\M=\dfrac{179200}{\dfrac{1-\left(\dfrac{1}{1+\dfrac{0.25146}{100}}\right)^{15*12}}{\dfrac{0.25146}{100}}}\\\\M=\dfrac{179200}{\dfrac{1-\left(\dfrac{1}{1+0.0025146}\right)^{15*12}}{0.0025146}}\\\\M=\dfrac{179200}{\dfrac{1-\left(\dfrac{1}{1.0025146}\right)^{15*12}}{0.0025146}}\\\\M=\dfrac{179200\times {0.0025146}}{1-\left(\dfrac{1}{1.0025146}\right)^{15*12}}\\M=\dfrac{450.61632}{0.36368 }\\M=\$1239.0328[/tex]
So the total amount paid in installments is
[tex]T=M\times n\times t[/tex]
So the equation becomes
[tex]T=M\times n\times t\\T=1239.0328\times 15\times 12\\T=\$223025.904[/tex]
So the interest is given as
[tex]I=T-P\\I=223025.904-179200\\I=\$43825.904[/tex]
So a total interest of $43825.904 is paid when the amount is financed for 15 years.
The savings on interest if the condominium is financed for 15 years is given as
[tex]S=I_{30}-I_{15}\\S=93395.132-43825.904\\S=49569.228[/tex]
The interest saved is $49569.228 or $49569.
In 2001, HP acquired Compaq. The merger had an impact on two different markets: desktop PCs and servers. Pre-merger market shares in the desktop PC market were as follows: Dell, 13; Compaq, 12; HP, 8; IBM, 6; Gateway, 4. Pre-merger market shares in the servers market were as follows: IBM, 26; Compaq, 16; HP, 14; Dell, 7. Source: Bank of America report, October 2001. Data for 2001Q2.
(a) Determine the value of HHI in each market before the merger.
(b) Assuming market shares of each firm remain constant, determine the value of HHI after the merger.
(c) Considering the values determined above and the DoJ merger guidelines, was the Department of Justice right in allowing the merger to take place?
Answer:
HP and Compaq
Value of HHI Desktop PC Servers
a) Before the merger 429 1,177
b) After the merger 621 1,616
c) Considering the HHI values determined in the various markets above (before and after the merger) and the DoJ merger guidelines, the DoJ seems to be right in allowing the merger to take place with respect to the desktop PC market as the 200 basis point mark was not reached. This is not the same with respect to the servers market, where the combined value of HP Compaq exceeds the 200 basis point mark.
Explanation:
a) Data and Calculations:
Pre-merger market shares in the desktop PC and servers markets:
Desktop PC Servers
Market Market
Dell, 13 7
Compaq, 12 16
HP, 8 14
IBM, 6 26
Gateway, 4 0
HHI in the desktop PC market = 13² + 12² + 8² + 6² + 4²
= 169 + 144 + 64 + 36 + 16
= 429
HHI in the servers market = 7² + 16² + 14² + 26² + 0² =
= 49 + 256 + 196 + 676
= 1,177
After the merger:
Desktop PC Servers
Market Market
Dell, 13 7
HP Compaq 20 30
IBM, 6 26
Gateway, 4 0
HHI in the desktop PC market = 13² + 20² + 6² + 4²
= 169 + 400 + 36 + 16
= 621
HHI in the servers market = 7² + 30² + 26² + 0²
= 40 + 900 + 676
= 1,616
Value of HHI Desktop PC Servers
a) Before the merger 429 1,177
b) After the merger 621 1,616
Market power of Compaq and HP in the desktop PC market before the merger = 208/429 = 48.5% (144 + 64)/429
Market power of HP Compaq in the desktop PC market after the merger = 400/621 = 64.4%
Increase in basis point (HHI) = 192 (621 = 429)
Market power of Compaq and HP in the servers market before the merger = 452/1,177 = 38.4% (256 + 196)/1,177
Market power of HP Compaq in the servers market after the merger = 900/1,616 = 55.7%
Increase in basis point (HHI) = 439 (1,616 - 1,1177)
Bramble Corp. purchased land as a factory site for $1305000. Bramble paid $121000 to tear down two buildings on the land. Salvage was sold for $8400. Legal fees of $5340 were paid for title investigation and making the purchase. Architect's fees were $47000. Title insurance cost $3900, and liability insurance during construction cost $4200. Excavation cost $15480. The contractor was paid $4400000. An assessment made by the city for pavement was $9900. Interest costs during construction were $251000.
1. The cost of the land that should be recorded by Wilson Co. is:_____.
a. $989,880
b. $980,480
c. $996,280
d. $986,880
The cost of the building should be recorded by Wilson Co. is:_____.
a. 2,804,840
b. 2,813,200
c. 2,803,800
d. 3,014,240
Answer:
Part 1
$1,422,940
Part 2
$331,480
Explanation:
cost of the land calculation
Purchase Price $1305000
Cost to tear down building $121000
Sale of Salvages ($8400)
Leagl fees $5340
Total $1,422,940
The cost of the land that should be recorded by Wilson Co. is: $1,422,940
cost of the building calculation
Architect's fees $47000
Insurance $3900
Liability insurance $4200
Excavation cost $15480
city for pavement $9900
Borrowing Costs $251000
Total $331,480
The cost of the building should be recorded by Wilson Co. is $331,480
An analysis of stockholders' equity of Hahn Corporation as of January 1, 2020, is as follows: Common stock, par value $20; authorized 100,000 shares; issued and outstanding 90,000 shares $1,800,000 Additional Paid-in capital 900,000 Retained earnings 760,000 Total $3,460,000 During 2020, the company entered into the following transactions: Acquired 2,500 shares of its stock for $75,000. Sold 2,000 treasury shares at $35 per share. Sold the remaining treasury shares at $20 per share. Assuming no other equity transactions occurred during 2020, what should Hahn report at December 31, 2020, as total additional paid-in capital?
Answer:
$905,000
Explanation:
Calculation to determine what should Hahn report at December 31, 2020, as total additional paid-in capital
Total Additional Paid-in capital=$900,000 + (2,000 × $5) –[(2,500-2,000)× $10]
Total Additional Paid-in capital=$900,000 + (2,000 × $5) – (500 × $10)
Total Additional Paid-in capital=$900,000 + $10,000-$5,000
Total Additional Paid-in capital = $905,000
Therefore The amount that Hahn should report at December 31, 2020, as total additional paid-in capital is $905,000
Jennifer is preparing for a conference. For that, she needs to access various websites to secure relevant information on various companies participating in the conference. Which software application will enable her to view the websites of all the companies?
A.
Internet
B.
URL
C.
browser
D.
email
E.
malware
Answer:
C. browser
internet is the software and the browser is the application.
Foods Galore is a major distributor to restaurants and other institutional food users. Foods Galore buys cereal from a manufacturer for $20.00 per case. Annual demand for cereal is 200,000 cases, and the company believes that the demand is constant at 800 cases per day for each of the 250 days per year that it is open for business. Average lead time from the supplier for replenishment orders is eight days, and the company believes that it is also constant. The purchasing agent at Foods Galore believes that annual inventory carrying cost is 10 percent and that it costs $40.00 to place an order.
How many cases of cereal should Foods Galore order each time it places an order? What is the total annual inventory cost if you order based on your Economic Order Quantity? (Sum of annual product purchasing cost, holding cost, and ordering cost). What is the total annual inventory cost if Foods Galore orders 10,000 each order at $18 per case? (Sum of annual product purchasing cost, holding cost, and ordering cost)
Answer:
The appropriate solution is:
(a) 2828 cases each time
(b) $4005656.85
(c) $3609800
Explanation:
The given values are:
Annual demand,
D = 200,000 cases
Per case cost,
C = $20
Carrying host,
H = [tex]10 \ percent\times 20[/tex]
= $[tex]2[/tex]
Ordering cost,
S = $40
(a)
The economic order quantity will be:
⇒ [tex]Q^*=\sqrt{(\frac{2DS}{H} )}[/tex]
On substituting the values, we get
[tex]=\sqrt{[\frac{(2\times 200000\times 40)}{2} ]}[/tex]
[tex]=\sqrt{\frac{16000000}{2} }[/tex]
[tex]=2828[/tex]
(b)
According to the question,
The annual ordering cost will be:
= [tex](\frac{D}{Q^*}) S[/tex]
= [tex](\frac{200000}{2828}) 40[/tex]
= [tex]2828.85[/tex] ($)
The annual carrying cost will be:
= [tex](\frac{Q^*}{2})H[/tex]
= [tex](\frac{2828}{2} )2[/tex]
= [tex]2828[/tex] ($)
The annual purchase cost will be:
= [tex]D\times C[/tex]
= [tex]200000\times 20[/tex]
= [tex]4000000[/tex] ($)
Now,
The total inventory cost will be:
= [tex]2828.85+2828+4000000[/tex]
= [tex]4005656.85[/tex] ($)
(c)
According to the question,
Order quantity,
Q = 10000 cases
Per case cost,
C = $18
Carrying cost,
H = [tex]10 \ percent\times 18[/tex]
= [tex]1.8[/tex]
The annual ordering cost will be:
= [tex](\frac{D}{Q} )S[/tex]
= [tex](\frac{200000}{10000} )40[/tex]
= [tex]800[/tex] ($)
The annual carrying cost will be:
= [tex](\frac{Q}{2} )H[/tex]
= [tex](\frac{10000}{2} )1.8[/tex]
= [tex]9000[/tex] ($)
The annual purchase cost will be:
= [tex]D\times C[/tex]
= [tex]200000\times 18[/tex]
= [tex]3600000[/tex]
Now,
The total cost of inventory will be:
= [tex]800+9000+3600000[/tex]
= [tex]3609800[/tex] ($)
Question 3 of 10
A typical point-of-sale display features products that are likely to be
O A. luxury goods
O B. sophisticated electronics
O C. impulse purchases
O D. display samples
SUBMIT
Answer:
C. impulse purchases
Explanation:
I just took the test
it's c. impulse purchases
What does "pivoting" mean in the process of concept development?
Select an answer:
• applying the same concept to a completely different problem
• adapting or modifying a concept to address one of the four enablers (1)
• identifying data required to validate a concept
• ideating to establish the antithesis of the design concept
Answer:
identifying data required to validate a concept
The following income statements are provided for Li Company's last two years of operation: Year 1 Year 2 Number of units produced and sold 4,500 4,100 Sales revenue $ 69,750 $ 63,550 Cost of goods sold 41,700 38,000 Gross margin 28,050 25,550 General, selling, and administrative expenses 17,500 16,300 Net income $ 10,550 $ 9,250 Assuming that cost behavior did not change over the two-year period, what is Li Company's contribution margin in Year 2?
Answer:
$13,325
Explanation:
Calculation to determine Li Company's contribution margin in Year 2
First step is to calculate the Variable cost per unit
Using this formula
Variable cost per unit = Change in costs ÷ Change in activity Cost of goods sold
Let plug in the formula
Variable cost per unit = (41,700 − 38,000) ÷ (4,500 units − 4,100 units)
Variable cost per unit =3,700/400
Variable cost per unit = $9.25 per unit
Second step is to calculate the Selling and administrative expense
Variable cost per unit = (17,500- 16,300) ÷ (4,500 units − 4,100 units)
Variable cost per unit =1,200/400 units
Variable cost per unit = $3.00 per unit
Now let calculate the Contribution margin in Year 2
Using this formula
Contribution margin = Sales revenue − Variable costs
Let plug in the formula
Contribution margin= $ 63,550 − [4,100 units × ($9.25 per unit + $3.00 per unit)]
Contribution margin=$ 63,550-(4,100 units×$12.25)
Contribution margin=$ 63,550-$50,225
Contribution margin = $13,325
Therefore Li Company's contribution margin in Year 2 is $13,325
