Beyer Company is considering the purchase of an asset for $190,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year.
Year 1 Year 2 Year 3 Year 4 Year 5 Total
Net cash flows $50,000 $31,000 $60,000 $140,000 $30,000 $311,000
Compute the payback period for this investment.

Answers

Answer 1

Answer:

Pay back period =3 years 4 months

Explanation:

The payback period is the estimated length of time it takes cash inflow from a project to recoup the cash outflow.  

The payback period uses cash flows and not profit.

The payback period can be determined by accumulation the cash inflow consecutively to ascertain the length of time it will take the sum to equate the initial cost.

This will be done as follows:

The sum of the cash in flows for the first three years would equal

50,000 + $31,000 + $60,000 = 141,000

The balance required to equate 190,000 would be

balance = 190,000 - 140,000 = 50,000

Pay back period = 3 years + (50,000/140,000)× 12 months

                            = 3 years 4 months

Pay back period =3 years 4 months


Related Questions

Based on the following production and sales estimates for May, determine the number of units expected to be manufactured in May. Estimated inventory (units), May 1 30,000 Desired inventory (units), May 31 25,000 Expected sales volume (units): South region 20,000 West region 40,000 North region 20,000 Unit sales price $10 a.85,000 b.105,000 c.75,000 d.80,000

Answers

Answer:

Production= 75,000 units

Explanation:

Giving the following information:

Estimated inventory (units), May 1 30,000

Desired inventory (units), May 31 25,000

Expected sales volume (units):

South region 20,000

West region 40,000

North region 20,000

To calculate the production for May, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Production= (20,000 + 40,000 + 20,000) + 25,000 - 30,000

Production= 75,000 units

The manager of a crew that installs wood floors has tracked the crew's output over the past several weeks. Each worker works 40 hours per week and earns $17 per hour. The wholesale cost of lumber to the company is $5 per square foot and the company charges its customers $15 per square foot of flooring installed.
Week Crew Size Lumber Used (sq. ft.) Flooring Installed (sq. ft.)
1 4 480 420
2 3 351 325
3 2 250 238

a. Calculate labor productivity for each of the weeks.
b. Suppose that in addition to labor cost and wholesale lumber cost, the firm's overhead is 120% of its labor cost. Calculate multifactor productivity for each of the weeks shown.

Answers

Answer:

Week      Crew Size     Lumber Used     Flooring Installed

                                     (sq. ft.)                 (sq. ft.)

1                    4                 480                   420

2                   3                 351                    325

3                   2                 250                   238

a)

labor productivity = total output / number of employees

week 1 ⇒ 420 / 4 = 105 sq. ft. of floors installed per worker

week 2 ⇒ 325 / 3 = 108.33 sq. ft. of floors installed per worker

week 3 ⇒ 238 / 2 = 119 sq. ft. of floors installed per worker

b)

multi-factor productivity = total output in $ / (labor + materials + overhead)

week 1 ⇒ (420 x $15) / [(4 x 40 x $17) + (480 x $5) + (4 x 40 x $17 x 1.2) = $6,300 / ($2,720 + $2,400 + $3,264) = 0.75

week 2 ⇒ (325 x $15) / [(3 x 40 x $17) + (351 x $5) + (3 x 40 x $17 x 1.2) = $4,875 / ($2,040 + $1,755 + $2,448) = 0.78

week 3 ⇒ (238 x $15) / [(2 x 40 x $17) + (250 x $5) + (2 x 40 x $17 x 1.2) = $3,570 / ($1,360 + $1,250 + $1,632) = 0.84

Sam was out hunting in the woods one day when he stumbled upon a baby fox. Sam was able to capture the fox and brought him home. He went and bought the fox a cage, feeding dishes, a leash, and a name tag. He decided to call the fox Rocky, and made sure to include a phone number on the tag in case he was lost. He took Rocky for a walk, but Rocky did not seem to like the leash around its neck. Sam's wife Ellie did not seem to care for the fox. A week later, Rocky escaped from his cage and wandered away. That same day Harold saw the fox wandering on his property, but was unable to catch it. Eventually, Rocky returned to the woods. Who owns the fox?
a. Sam
b. No one
c. Harold
d. Sam and Ellie
e. Ellie

Answers

Answer:

No one

Explanation:

This is because no one legally owned him and the fox escaped anyways.

One of the problems with licensing as a method of achieving international business is that it is a much more difficult procedure to implement than the other methods.
a. True
b. False

Answers

Answer: False

Explanation:

Licensing involves a company giving another company in another country/market permission to produce its products or use its likeness. The company that gets the license will then pay the parent company specified amounts for being able to do so.

This method of international business is cheap as the company licensing will see its brand spread to other countries without actually having to worry about set-up costs in the other country which can be very high. It is therefore one of the easiest methods of expanding to international markets there is.

The advantages of using typedef do not include:a. Making programs more portable by allowing data types to be easily changed to meet system specifications.b. Making type names shorter.c. Making programs more readable.d. Increasing the efficiency of accessing struct member variables.

Answers

Answer:

d. Increasing the efficiency of accessing struct member variables.

Explanation:

In the programming language C and C++ there is a keyword i.e typedef that function is to provide a new name. It is to be used to develop an extra name for the other data type but it does not develop a new data type

Here the advantage of using typedef is as follows

1. It allows the data types for meeting the specifications of the system

2. The name would become shorter

3. Readable program

but it does not increase the efficiency

Hence, the last option is correct

Managers of an American television network have been told they need to employ a localization strategy if they want to break into the European and Australian markets. What specifically should they do to implement this strategy

Answers

Answer:

they will need to follow the television viewing habits,and  cultural differences in the locality.

Explanation:

This is very important so as to determine what would work best in each region. An extensive research into television habits as well as cultural norms would need to be carried out.

For example, program schedule times may need adjustments based on a different viewing time.

Irene Watts and John Lyon are forming a partnership to which Watts will devote one-half time and Lyon will devote full time. They have discussed the following alternative plans for sharing income and loss: (a) in the ratio of their initial capital investments, which they have agreed will be $42,000 for Watts and $63,000 for Lyon; (b) in proportion to the time devoted to the business; (c) a salary allowance of $6,000 per month to Lyon and the balance in accordance with the ratio of their initial capital investments; or (d) a salary allowance of $6,000 per month to Lyon, 10% interest on their initial capital investments, and the balance shared equally. The partners expect the business to perform as follows: year 1, $36,000 net loss; year 2, $90,000 net income; and year 3, $150,000 net income. Required: Complete the tables, one for each of the first three years, by showing how to allocate partnership income or loss to the partners under each of the four plans being considered. (Do not round intermediate calculations. Round final answers to the nearest whole dollar. Enter all allowances as positive values. Enter losses as negative values.)

Answers

Answer:

Irene Watts and John Lyon

Allocation of Partnership Income or Loss under these plans:

(a) in the ratio of their initial capital investments, which they have agreed will be $42,000 for Watts and $63,000 for Lyon:

                                          Year 1            Year 2           Year 3

Net Income / (Loss)        ($36,000)       $90,000       $150,000

Watts 40%                          (14,400)         36,000           60,000

Lyon 60%                          (21,600)          54,000          90,000

(b) in proportion to the time devoted to the business:

                                         Year 1            Year 2           Year 3

Net Income / (Loss)        ($36,000)       $90,000       $150,000

Watts 1/3                            (12,000)         30,000           50,000

Lyon 2/3                           (24,000)         60,000          100,000

(c) a salary allowance of $6,000 per month to Lyon and the balance in accordance with the ratio of their initial capital investments:

                                                  Year 1            Year 2           Year 3

Net Income / (Loss)                ($36,000)       $90,000       $150,000

Less Salary                               (72,000)         (72,000)         (72,000)

Distributable Income/(Loss)   (108,000)        $18,000         $78,000

Watts  40%                             ($43,200)          $7,200          $31,200

Lyon:

  Salary                                     72,000           72,000           72,000

  Distributable 60%                (64,800)           10,800           46,800

  Net share                              $7,200         $82,800        $118,800

(d) a salary allowance of $6,000 per month to Lyon, 10% interest on their initial capital investments, and the balance shared equally:

                                                  Year 1            Year 2           Year 3

Net Income / (Loss)                ($36,000)       $90,000       $150,000

Less Salary                               (72,000)         (72,000)         (72,000)

Less Interest on Capital           (10,500)         (10,500)          (10,500)    

Distributable Income/(Loss)   (118,500)            7,500            67,500

Watts:

 Interest on Capital                     4,200             4,200             4,200

 Distributable income 40%      (47,400)            3,000           27,000

 Share of profit or loss          ($45,400)          $7,200         $31,200

Lyon:

  Salary                                     72,000           72,000           72,000

  Interest on Capital                  6,300              6,300             6,300

  Income/Loss 60%                  (71,100)            4,500           40,500

  Net share                              $7,200         $82,800        $118,800

Explanation:

a) Data and Calculations:

Net Income of Loss:

Year 1 = $36,000 loss

Year 2 = $90,000

Year 3 = $150,000

Sharing plans:

a) Capital:

Watts $42,000  = $42,000/$105,000 = 40%

Lyon $63,000  = $63,000/$105,000 = 60%

b) Time devotion:

Watts 1 = 1/3 or 33%

Lyon 2 = 2/3 or 67%

c) a salary allowance of $6,000 per month to Lyon and the balance in accordance with the ratio of their initial capital investments:

Distributable Income / Loss:

Year 1 = ($36,000) - $72,000 = ($108,000)

Year 2 = $90,000 - $72,000 = $18,000

Year 3 = $150,000 - $72,000 = $78,000

Other things held constant, if a bond indenture contains a call provision, the yield to maturity that would exist without such a call provision will generally be____ the YTM with a call provision.

Answers

Answer:

Other things held constant, if a bond indenture contains a call provision, the yield to maturity that would exist without such a call provision will generally be lower than the YTM with a call provision.

Explanation:

That is the correct answer to the question asked about bond indenture.

During the year, Next Tec Corp. had the following cash flows: receipt from customers, $15,000; receipt from the bank for long-term borrowing, $6,500; payment to suppliers, $5,900; payment of dividends; $1,700, payment to workers, $2,900; and payment for machinery, $12,500. What amount would be reported for net financing cash flows in the statement of cash flows?

Answers

Answer:

$4,800

Explanation:

Next Tech corporation had the following cash flows

Receipt from customers= $15,000

Receipt from bank for long term borrowing= $6,500

Payment to suppliers= $5,900

Payment of dividend= $1,700

Payment to workers= $2,900

Payment for machinery= $12,500

Therefore, the amount that should be reported for the net financing cash flows in the statement of cash flow can be calculated as follows

= Receipt for bank long term borrowing-payment of dividend

= $6,500-$1,700

= $4,800

Hence the amount reported for net financing cash flows in the statement of cash flow is $4,800

Cost of common stock: Whitewall Tire Co. just paid a $1.60 dividend on its common shares. If Whitewall is expected to increase its annual dividend by 2 percent per year into the foreseeable future and the current price of Whitewall common shares is $11.66, what is the cost of common stock for Whitewall

Answers

Answer:

Cost of common stock for Whitewall is 16.00%

Explanation:

Ke = D1 / Price +g

D1 = Ke (Price + g)

D1 = $1.60 * (1+0.02)

D1 = $1.60 * (1.02)

D1 = $1.632

Ke = D1 / Price +g

We solve for Current dividend to derive the Cost of common stick  

Ke = 1.632 / (11.66) + 2%

Ke =  1.632 / 11.66 + 0.02

Ke =  0.139966 + 0.02

Ke =  0.159966

Ke =  15.9966%

Ke =  16.00%

What type of Decision Making Model has the goal of maximizing efficiency by picking the best alternative based on specific criteria

Answers

Answer:

Rational model.

Explanation:

Rational decision model uses logic and objectivity while trying to solve a problem. It is not subjective neither does it have to depend on intuition. It helps one to identify a problem and get a solution amongst different options. It maximizes efficiency through picking the best option amongst the rest based on a specific criteria. It is assumed that the person making this choice has enough information about the options.

The Busby Corporation had a share price at the start of the year of $26.20, paid a dividend of $0.56 at the end of the year, and had a share price of $29.00 at the end of the year. Which of the following is closest to the rate of return of investments in companies with equal risk to The Busby Corporation for this period?

A) 5%
B) 7%
C) 9%
D) 13%

Answers

Answer:

D) 13%

Explanation:

Calculation for the percentage that is closest to the rate of return of investments

First step is to find the balance amount of the share price using this formula

Share price =(End of the year Share price + End of the year dividend)-Start of the year Share price

Let plug in the formula

Share price =($29.00+$0.56)-$26.20

Share price =$29.56-$26.20

Share price =$3.36

Second step is to find the rate of return of investments

Using this formula

Rate of return of investments= Share price/Start of the year Share price

Rate of return of investments

Let plug in the formula

Rate of return of investments=$3.36/$26.20

Rate of return of investments=0.13*100

Rate of return of investments=13%

Therefore the percentage that is closest to the rate of return of investments in companies with equal risk to The Busby Corporation for this perio will be 13%

A company believes that its product will exhibit network effects if enough consumers begin to use it. How might this company decide to price its product? Offer the product for free early on, and increase the price later.

Answers

Answer: a. Offer the product for free early on, and increase the price later

Explanation:

When a product is said to have a network effect, what it means is that the product gets more value as more people use it. For example Whtsapp which is only such an effective means of communication because more and more people are getting it. If people did not get it, it would not be such a good medium and would be valued less.  

If a company wants to price such a product, they should charge at lower rates first which would entice more people to use the product thereby giving the product more value. As the product value increases, the price can then increase to reflect this increased value.

Suppose an item sells for​ $125 in the United States and for​ 62,500 pesos in Chile. According to the law of one​ price, the nominal exchange rate​ (pesos/dollar) should be​ ________.

Answers

Answer:

$1 = 500 Pesos

1 Pesos = $0.002

Explanation:

$125 = 62,500 Pesos

$1 = 62,500 / 125

$1 = 500 Pesos

$1 = 500 Pesos

1 Pesos = $1 / 500

1 Pesos = $0.002

The _____focuses on bringing different talents and perspectives together to make the best organizational decisions and to produce innovative, competitive products and services..

Answers

Answer:

Paradigm

Explanation:

Definition: a typical example or pattern of something; a model.

If the price that determined where marginal revenue equaled marginal cost were below the bottom of the average variable cost curve, then the profit-maximizing, monopolistically competitive firm would

Answers

Answer: c. shut down because it would cost more to produce and sell output than it would to shut down and lose all fixed costs.

Explanation:

The profit maximizing, monopolistically competitive firm maximises profit at the point where marginal revenue equals marginal costs.

If this point is below Average variable costs then that means that the company is not making enough to cover its variable costs. Should this be the case then the company should shutdown operations because variable costs are only there when the company is producing. If they shutdown then they will no longer incur them which would be the cheaper option.

They would take losses on the fixed costs but these have already been incurred so it would be better to lose the fixed costs than continue to make losses on variable costs.

Which of the following is an advantage of a CD?
usually a higher interest rate
saving for a short-term purpose
flexible withdrawals
can be cashed out every year

Answers

Answer:

An Advantage of a Certificate of Deposit (CD) is:

It usually offers a higher interest rate.

Explanation:

For instance, Jones Company can purchase a certificate of deposit (CD) from Bank A. The CD is a financial product that pays a locked and premium interest rate.  In exchange for this locked and higher interest rate, Jones Ltd agrees to leave a lump-sum deposit which it cannot withdraw from until a predetermined period of time.  A CD is not a saving for a short-term purpose, and does not allow for flexible withdrawals unless after the maturity date has been reached.  This implies that Jones Ltd cannot cash it out unless after the maturity date.

The following data relate to the Denver Company's operations for the year ended December 31, 20XX:

Direct Materials Purchases $100,000
Indirect meterial usage 10,000
Indirect labor 10,000
Direct Labor 300,000
Sales salaries 100,000
Administrative salaries 50,000
Factory water and electricity 20,000
Advertising expenses 60,000
Depreciation-sales and general office 40,000
Depreciation-factory 50,000

Beginning Inventories:
Direct Materials $20,000
Work In Progress 60,000
Finished goods 80,000

Ending Inventories:
Direct Materials $30,000
Work in Progress 50,000
Finished goods 60,000

Required:
Prepare a statement of cost of goods manufactured.

Answers

Answer:

Cost of goods manufactured= $490,000

Explanation:

Giving the following information:

Overhead:

Indirect material usage 10,000

Indirect labor 10,000

Factory water and electricity 20,000

Depreciation-factory 50,000

Total overhead= 90,000

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

Direct materials= 100,000 + 20,000 - 30,000= 90,000

cost of goods manufactured= 60,000 + 90,000 + 300,000 + 90,000 - 50,000

cost of goods manufactured= $490,000

he sales of the Garland Corporation are projected to grow exponentially for the years between 2010 and 2015 from $110 million to $160 million. (a) Find a model giving the sales of Garland Corporation in year t between 2010 (t

Answers

Answer:

between 2010 and 2015 he only grown $50.

Explanation:

That why he come from $110 to $160. In the middle of the years he only grown $50.

I hope it help you understand.

A model that gives the sales of Garland Corporation in year t between 2010 and 2015 is [tex]S = S_{o}e^{0.075t}[/tex]

What is the model that represents the expoential growth of sales?

The equation that can be used to represent exponential functions is:

[tex]S = S_{o}e^{rt}[/tex]

Where:

s = future sales value [tex]S_{o}[/tex] = present sales value r = rate of growth t = number of years,

r = (In 160 / 110) /5

r = 0.075

To learn more about exponential functions, please check: https://brainly.com/question/26331578

Busch Company has these obligations at December 31. For each obligation, indicate whether it should be classified as a current liability, noncurrent liability, or both.

(a) A note payable for $100,000 due in 2 years.
Current liabilityNoncurrent liabilityBoth

(b) A 10-year mortgage payable of $200,000 payable in ten $20,000 annual payments.
BothCurrent liabilityNoncurrent liability

(c) Interest payable of $15,000 on the mortgage.
Noncurrent liabilityBothCurrent liability

(d) Accounts payable of $60,000.
Current liabilityNoncurrent liabilityBoth

Answers

Answer:

(a) A note payable for $100,000 due in 2 years.  - Noncurrent liability

Non-current liabilities are obligations of payments by the company that extend for over a year. This note payable is due in 2 years and so is a Non-current liability.

(b) A 10-year mortgage payable of $200,000 payable in ten $20,000 annual payments.  - Noncurrent liability

This obligation also extends for over a year thereby satisfying the definition of a Non-current liability

(c) Interest payable of $15,000 on the mortgage.  - Current liability

Current Liabilities being the opposite of Non-current liabilities are obligations that are due within a year. The $15,000 interest payment is the amount due for the year and so is a Current Liability.

(d) Accounts payable of $60,000.  - Current liability

Accounts Payable are payable within the year and as such are current liabilities.

Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio. The partners have decided to liquidate their partnership. On the day of liquidation their balance sheet appears as follows.
KENDRA, COGLEY, AND MEI
Balance Sheet
May 31
Assets Liabilities and Equity
Cash $ 103,900 Accounts payable $ 258,000
Inventory 537,600 Kendra, Capital 76,700
Cogley, Capital 172,575
Mei, Capital 134,225
Total assets $641,500 Total liabilities and equity $641,500
Required:
For each of the following scenarios, complete the schedule allocating the gain or loss on the sale of inventory. Prepare journal entries to record the below transactions. (Do not round intermediate calculations. Amounts to be deducted or Losses should be entered with a minus sign. Round your final answers to the nearest whole dollar.)
(1) Inventory is sold for $608,400.
(2) Inventory is sold for $469,200.
(3) Inventory is sold for $358,800 and any partners with capital deficits pay in the amount of their deficits.
(4) Inventory is sold for $298,800 and the partners have no assets other than those invested in the partnership.
Complete this question by entering your answers in the tabs below.
Required:
Inventory
Complete the schedule allocating the gain or loss on the sale of inventory is $608,400.
1. Record the sale of inventory.
2. Allocate the gain(loss) on the sale of inventory to the partners.
3. Record the payment of the liabilities.
4. Record the disbursement of the remaining cash to the partners.

Answers

Answer

1)a

Dr Cash 608,400

Cr Inventory 537,600

Cr Gain on Sale of Inventory 70,800

b.

Dr Gain on Sale of Inventory 70,800

Cr Kendra' Capital 35,400

Cr Cogley's Capital 23,600

Cr Mei' Capital 11,800

c.

Dr Accounts Payable 258,000

Cr Cash 258,000

d.

Dr Kendra' Capital 112,100

Dr Cogley's Capital 196,175

Dr Mei, Capital 146,025

Cr Cash 454,300

2a.

Dr Cash 469,200

Dr Loss on Sale of Inventory 68,400

Cr Inventory 537,600

b.

Dr Kendra' Capital 34,200

Dr Cogley's Capital 22,800

Dr Mei' Capital 11,400

Cr Loss on sale of Inventory 68,400

c.

Dr Accounts Payable 258,000

Cr Cash 258,000

d.

Dr Kendra' Capital 42,500

Dr Cogley's Capital 149,775

Dr Mei' Capital 122,825

Cr Cash 315,100

3a.

Dr Cash 358,800

Dr Loss on Sale of Inventory 178,800

Cr Inventory 537,600

b.

Dr Kendra' Capital 89,400

Dr Cogley's Capital 59,600

Dr Mei' Capital 29,800

Cr Loss on sale of Inventory 178,800

c.

Dr Cash 12,700

Cr Kendra' Capital 12,700

d.

Dr Accounts Payable 258,000

Cr Cash 258,000

e.

Dr Cogley's Capital 17,100

Dr Mei' Capital 104,425

Cr Cash 121,525

4a.

Dr Cash 298,800

Dr Loss on Sale of Inventory 238,800

Cr Inventory 537,600

b.

Dr Kendra' Capital 119,400

Dr Cogley's Capital 79,600

Dr Mei' Capital 39,800

Cr Loss on sale of Inventory 238,800

c.

Dr Cogley's Capital 28,466

Dr Mei' Capital 14,234

Cr Kendra' Capital 42,700

d.

Dr Accounts Payable 258,000

Cr Cash 258,000

e.

Dr Cogley's Capital 64,509

Dr Mei' Capital 80,191

Cr Cash 144,700

Explanation:

Preparation of the Prepare journal entries to record the sales of inventory

1)a

Dr Cash 608,400

Cr Inventory 537,600

Cr Gain on Sale of Inventory 70,800

(608,000-536,600)

b

Dr Gain on Sale of Inventory 70,800

(608,000-536,600)

Cr Kendra' Capital 35,400

(3/6×70,800)

Cr Cogley's Capital 23,600

(2/6×70,800)

Cr Mei' Capital 11,800

(1/6×70,800)

c.

Dr Accounts Payable 258,000

Cr Cash 258,000

d.

Dr Kendra' Capital 112,100

(76,700+35,400)

Dr Cogley's Capital 196,175

(172,575+23,600)

Dr Mei, Capital 146,025

(134,225+11,800)

Cr Cash 454,300

(112,100+196,175+146,025)

2)Preparation of the Journal entries to Allocate the gain(loss) on the sale of inventory to the partners.

a.

Dr Cash 469,200

Dr Loss on Sale of Inventory 68,400

(469,200-537,600)

Cr Inventory 537,600

b.

Dr Kendra' Capital 34,200

(3/6×68,400)

Dr Cogley's Capital 22,800

(2/6×68,400)

Dr Mei' Capital 11,400

(1/6×68,400)

Cr Loss on sale of Inventory 68,400

c.

Dr Accounts Payable 258,000

Cr Cash 258,000

d.

Dr Kendra' Capital 42,500

(76,700-34,200)

Dr Cogley's Capital 149,775

(172,575-22,800)

Dr Mei' Capital 122,825

(134,225-11,400)

Cr Cash 315100

(42,400+149,775+122,825)

3)Preparation of the Journal entries to Record the payment of the liabilities

a.

Dr Cash 358,800

Dr Loss on Sale of Inventory 178,800

(358,800-537,500)

Cr Inventory 537,600

b.

Dr Kendra' Capital 89,400

(3/6×178,800)

Dr Cogley's Capital 59,600

(2/6×178,800)

Dr Mei' Capital 29,800

(1/6×178,800)

Cr Loss on sale of Inventory 178,800

(89,400+59,600+29,800)

c.

Dr Cash 12,700

Cr Kendra' Capital 12,700

(76,700 - 89,400)

d.

Dr Accounts Payable 258,000

Cr Cash 258,000

e.

Dr Cogley's Capital 17,100

(76,700-59,600)

Dr Mei' Capital 104,425

(134,225-29,800)

Cr Cash 121,525

(17,100+104,425)

4) Preparation of the Journal entries to Record the disbursement of the remaining cash to the partners

a.

Dr Cash 298,800

Dr Loss on Sale of Inventory 238,800

(298,800-537,600)

Cr Inventory 537,600

b.

Dr Kendra' Capital 119,400

(3/6×238,800)

Dr Cogley's Capital 79,600

(2/6×238,800)

Dr Mei' Capital 39,800

(1/6×238,800)

Cr Loss on sale of Inventory 238,800

(119,400+79,600+39,800)

c.

Dr Cogley's Capital 28,466

(2/3×42,700)

Dr Mei' Capital 14,234

(1/3×42,700)

Cr Kendra' Capital 42,700

(76,700 - 119,400)

d.

Dr Accounts Payable 258,000

Cr Cash 258,000

e.

Dr Cogley's Capital 64,509

(172,575 - 79,600 - 28,466)

Dr Mei' Capital 80,191

(134,225 - 39,800 - 14,234)

Cr Cash 144,700

(80,191+64,509)

The standard overhead applied is based on the ______ level of activity multiplied by the predetermined overhead rate.

Answers

Answer: actual level

Explanation:

It should be noted that when determining the standard overhead cost rate, overhead costs have to be grouped into the fixed cost and the variable costs.

The standard overhead applied is based on the actual level of activity multiplied by the predetermined overhead rate.

In Macroland autonomous consumption equals 100, the marginal propensity to consume equals 0.75, net taxes are fixed at 40, planned investment is fixed at 50, government purchases are fixed at 150, and net exports are fixed at 20. Planned aggregate expenditure equals:________a.1,000. b.1,160. c.1,280. d.1,440.

Answers

Answer:

b) $1,160

Explanation:

From the above information,

I=Investment = 50

G=Government expenditure = 150

X=Net export = 20

a=autonomous consumption = 100

b=Marginal propensity to consume = 0.75

Y=Equilibrium GDP

C = consumption ;

C = 100 + 0.75Y (Y income - 40 taxes)

Planned aggregate expenditure (PAE)

PAE = C + l +G +X

Substituting for C in the above equation,

PAE = 100 + 0.75 (Y - 40) + 50 + 150+ 20

= 100 + 0.75Y -30 + 50 + 150 + 20

= 290 + 0.75Y

Since short run exists when Y = PAE

Therefore,

Y = 290 + 0.75Y

Collect like terms

Y - 0.75Y = 290

0.25Y =290

Y = 290/0.25

Y = 1,160

Knowledge Check 02 On February 28, the Jewelry store remits $975 of sales tax collected from its customers to the government. Prepare the February 28 journal entry for the Jewelry store by selecting the account names and dollar amounts from the drop-down menus.

Answers

Answer:

Please refer to the below

Explanation:

Journal entry as seen below

Feb 28 Sales tax payable Dr $975

Cash Cr $975

Since Jewelry store collected the sales tax from its customers, sales tax account will be debited because it reduces the balance in the account while cash account will be credited because the balance therein increases due to the sales tax collected.

Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $166,400 to $201,500. Variable costs and their percentage relationship to sales are sales commissions 7%, advertising 6%, travel 4%, and delivery 1%. Fixed selling expenses will consist of sales salaries $34,900, depreciation on delivery equipment $6,600, and insurance on delivery equipment $1,700. Prepare a monthly selling expense flexible budget for each $11,700 increment of sales within the relevant range for the year ending December 31, 2020.

Answers

Answer:

there is not enough room here, so I prepared an excel spreadsheet

Which one of these people does not attend the closing?

a. Your real estate agent
b. Closing agent
c. Seller
d. Appraiser

Answers

Answer:

d. Appraiser

Explanation:

During a closing appointment, there are many individuals usually present, including the buyer, seller, closing agent, and the attorney. Sometimes the company representative, mortgage lender, and other real estate agents may attend in unique situations. From the list provided the one individual that never attends a closing appointment is the Appraiser. This individual's only job is to estimate the market value of the house before listing it, and once this is done has no involvement in the selling process.

Jamal lost his job as a shipbuilder. His plant closed down "temporarily" but never reopened and will not. Jamal's skills are very specialized and no longer in demand. His unemployment is best classified as .

Answers

Answer:

Structural unemployment

Explanation:

Since Jamal's specialized skills are no longer in demand, this is a clear example of structural unemployment.

Structural unemployment is a situation that exists when the skills one can offer and the available jobs are not matched. It is caused by changes in technology thereby causing the skills that one possesses to be old fashioned. Jamal would have to learn new skills that are in demand to be employable.

In early January, Burger Mania acquired 100% of the common stock of the Crispy Taco restaurant chain. The purchase price allocation included the following items: $5 million, patent; $3 million, trademark considered to have an indefinite useful life; and $5 million, goodwill. Burger Mania's policy is to amortize intangible assets with finite useful lives using the straight-line method, no residual value, and a five-year service life. What is the total amount of amortization expense that would appear in Burger Mania's income statement for the first year ended December 31 related to these items

Answers

Answer:

$1,000,000 per year

Explanation:

We can infer from the above information that the intangible assets with indefinite period are checked annually, for impairment hence patent is a limited life intangible.

Therefore;

The amount of amortization of patent at the end of first year

= Patent value ÷ Useful life

= $5 million ÷ 5 years

= $1,000,000 per year

Therefore, the company should amortize $1,000,000 per year.

The following information pertains to J Company's outstanding stock for 2021:

Common stock, $1 par
Shares outstanding, 1/1/2021 10,000
2 for 1 stock split, 4/1/2021 10,000
Shares issued, 7/1/2021 5,000

Preferred stock, $100 par, 7% cumulative
Shares outstanding, 1/1/2021 4,000

What is the number of shares J should use to calculate 2018 basic earnings per share?

a. 20,000.
b. 22,500.
c. 25,000 .
d. 27,000.

Answers

Answer: b. 22,500

Explanation:

J should use the total number of outstanding common stock at end of year to calculate 2018 basic earnings.

As a result of the Stock-split, the shares are split into 2 for 1.

There were 10,000 shares split so;

= 10,000 * 2

= 20,000

On the 1st of July, 5,000 shares were issued. This means that up till December 2021, the stock was outstanding for 6 months.

This will reflected by;

= 5,000 * 6/12

= 2,500 shares

Total shares = 20,000 + 2,500

= 22,500 shares

Media Bias Inc. issued bonds 10 years ago at $1,000 per bond. These bonds had a 35-year life when issued and the annual interest payment was then 13 percent. This return was in line with the required returns by bondholders at that point in time as described below: Real rate of return 5 % Inflation premium 4 Risk premium 4 Total return 13 % Assume that 10 years later, due to good publicity, the risk premium is now 3 percent and is appropriately reflected in the required return (or yield to maturity) of the bonds. The bonds have 25 years remaining until maturity.

Answers

Answer:

remaining time to maturity 25 years, annual coupon

face value $1,000

when the bonds were issued, the market interest rate was 13%, which was identical to the coupon rate, therefore, the bonds were sold at par

now, 10 years later, the market interest rate is 12% (1% less), so the current market price is:

PV of face value = $1,000 / (1 + 12%)²⁵ = $58.82

PV of coupon payments = $130 x 7.8431 (PV annuity factor, 25 periods, 12%) = $1,019.63

bond's current market price = $58.82 + $1,019.63 = $1,078.45

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