Answer:
Net cash from operating activities is $57,220.
Explanation:
Using the indirect method, the Operating Activities section of the statement of cash flows can be prepared as follows:
Statement of Cash Flows
(Operating Activities Section Only)
Details $
Net income 35,890
Adjustment to reconcile net income:
Depreciation expense 18,040
(Increase) decrease in current assets:
Increase in accounts receivable ($34,630 - $43,060) (8,430)
Decrease in inventory ($39,870 - $30,370) 9,500
Increase in prepaid rent ($15,120 - $16,820) (1,700)
Increase (decrease) in current liabilities:
Increase in accounts payable ($25,610 - $19,430) 6,180
Decrease in income taxes payable ($5,970 - $10,500) (4,530)
Increase in interest payable ($14,710 - $12,440) 2,270
Net cash from operating activities 57,220
The financial statements of Apple Inc. in Appendix A contain the following selected accounts, all in thousands of dollars.
Common Stock $35,867
Accounts Payable 49,049
Accounts Receivable 17,874
Selling, General, and Administrative Expenses 15,261
Inventories 4,855
Net Property, Plant, and Equipment 33,783
Net Sales 229,234
Required:
a. What is the increase and decrease side for each account?
b. What is the normal balance for each account?
Answer:
Apple Inc.
a. The increase and decrease side for each account
($'000) Increase Decrease
Side Side
Common Stock $35,867 Credit Debit
Accounts Payable 49,049 Credit Debit
Accounts Receivable 17,874 Debit Credit
Selling, General, and Administrative Expenses 15,261 Debit Credit
Inventories 4,855 Debit Credit
Net Property, Plant, and Equipment 33,783 Debit Credit
Net Sales 229,234 Credit Debit
b. The normal balance for each account
($'000) Normal Balance
Common Stock $35,867 Credit Balance
Accounts Payable 49,049 Credit Balance
Accounts Receivable 17,874 Debit Balance
Selling, General, and Administrative Expenses 15,261 Debit Balance
Inventories 4,855 Debit Balance
Net Property, Plant, and Equipment 33,783 Debit Balance
Net Sales 229,234 Credit Balance
Explanation:
Selected Accounts from Appendix A of Apple' Financial Statements:
($'000)
Common Stock $35,867
Accounts Payable 49,049
Accounts Receivable 17,874
Selling, General, and Administrative Expenses 15,261
Inventories 4,855
Net Property, Plant, and Equipment 33,783
Net Sales 229,234
b) Assets and Expenses increase by debit entries to their accounts, and they decrease by credit entries. They normally have debit balances. On the other hand, Liabilities, Equity, Revenue, and Income normally have credit balances. They increase by credit entries to their accounts and decrease by debit entries.
An investment banker agrees to underwrite an issue of 10 million shares of stock for TWResearch, Inc. on a firm commitment basis. The investment banker pays $10.50 per share to TWResearch, Inc. for the 10 million shares of stock. It then sells those shares to the public for $11.20 per share.
If the investment bank can sell the shares for $9.75 per share, what is the profit (loss) to the investment banker?
a) Profit of $1,000,000.
b) Loss of $7,500,000.
c) Profit of $7,000,000.
d) Loss of $7,000,000.\
e) Loss of $1,000,000.
Answer: b) Loss of $7,500,000.
Explanation:
The total the investment bank paid when underwriting was:
= 10.50 * 10,000,000 shares
= $105,000,000
The total they then sell to the public is:
= 9.75 * 10,000,000
= $97,500,000
The profit is:
= Selling revenue from public - Buying cost from company
= 97,500,000 - 105,000,000
= -$7,500,000
You want to borrow $91,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,750, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 60-month APR loan
Answer:
5.784%
Explanation:
PV = $91000
PMT = -$1750
N = 60
FV = $0
Using the financial calculator to solve for I/Y
Interest yield = CPT I/Y(91000, -1750, 60, 0)
Interest yield = 0.00482
Interest yield = 0.482%
Highest rate APR = 0.482%*12
Highest rate APR = 5.784%
So, assuming monthly compounding, the highest rate i can afford on a 60-month APR loan is 5.784%.
If someone is engaged in a highly dangerous activity (sky diving or scuba diving), then normally assumption of risk waivers must be signed. Are those waivers always effective, or can you imagine a situation where liability could still be imposed
Answer:
The signing of assumption of risk waivers cannot serve as a substitute to the insurance of liability hence lawsuit can be filed
Explanation:
liability could be imposed by the person engaged in the dangerous activity if the handler of the activity exhibits some form of negligence or discriminatory behaviors or if the material used is substandard.
The signing of assumption of risk waivers cannot serve as a substitute to the insurance of liability hence lawsuit can be filed
An automobile manufacturing firm decides to meet all its suppliers while planning to manufacture a new automobile that is a minor variant of an existing model in terms of design and performance. The firm wants to provide its loyal customers with automobiles at a low price without compromising on performance. According to authors Crawford and DiBenedetto, this new product falls into the category of ________.
Question Completion With Options:
O price redemptions
O repositionings
O price exemptions
O cost reductions
Answer:
According to authors Crawford and DiBenedetto, this new product falls into the category of ________.
O cost reductions
Explanation:
According to the declared intention of the automobile manufacturing firm, it is working at providing its loyal customers with low-priced automobiles that still maintain competitive performance. Therefore, the new product falls into the category of cost reductions, which is a strategic move to ensure that costs do not drive away customers while the company rakes in huge revenue with increased sales volume.
Cashan Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 1.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows: August 24,500 units September 24,700 units October 24,600 units November 26,400 units December 24,500 units
The company wants to maintain monthly ending inventories of Jurislon equal to 30% of the following month's production needs. On July 31, this requirement was not met since only 10,400 kilograms of Jurislon were on hand. The cost of Jurislon is $4.00 per kilogram. The company wants to prepare a Direct Materials Purchase Budget for the next five months.
The desired ending inventory of Jurislon for September is:_______.
a. $29,640
b. $29,520
c. $44,460
d. $44,280
Answer:
Option d ($44,280) is the correct option.
Explanation:
Given:
Maintain monthly inventory,
= 30%
October production,
= 24,600 units
Rate per kg,
= $4
For September month,
The desired ending units will be:
= [tex]Maintain \ monthly \ inventory\times Production \ in \ October[/tex]
= [tex]30 \ percent\times 24600[/tex]
= [tex]7380 \ units[/tex]
The required quantity will be:
= [tex]1.5 \ kg\times Desired \ ending \ units[/tex]
= [tex]1.5 \ kg\times 7380[/tex]
= [tex]11070 \ units[/tex]
hence,
The total price will be:
= [tex]Rate \ per \ kg\times Required \ quantity[/tex]
= [tex]4\times 11070[/tex]
= [tex]44280[/tex] ($)
When team members take direction from both the project and line managers, the type of project manager is usually a:________
Answer:
Supportive project manager
Explanation:
In simple words, supportive project manager refers to the individual working a a bridge between different entities involve in the project such as labor - administration, supplier and management etc.
These types of managers do not possess any technical knowledge and their whole function is to work as a monitoring and regulatory authority.
Compared to physical goods, digital goods have Group of answer choices similar inventory costs. very low costsof delivery. high marginal costs per unit. equivalent marketing costs.
Answer:
Digital Goods
Compared to physical goods, digital goods have
very low costs of delivery.
Explanation:
Digital goods are non-physical goods that are stored, delivered, and used in their electronic formats. They are usually delivered via Email and Internet download. Because of their nature, digital goods do not involve huge costs in physical manufacturing, storage, packing, shipping, and handling costs, unlike physical goods.
According to the video, the Chinese economic model since the 1980s is commonly referred to as _________ with Chinese characteristics.
Answer: hello the video related to your question hence I will provide a general answer based on the scope of the question.
answer :
Socialism
Explanation:
The Chinese economic model since the early 1980s is commonly referred to as Socialism with Chinese characteristics
Socialism with Chinese Characteristics is a set of political theories been adapted by the Chinese to fit in into the Chinese circumstance and around this period ( early 1980s ) i.e. Boluan Fanzheng period
Mr. Joseph has identified five different companies in which he is interested in investing, however, he has concerns over the economy and wants to invest in companies with the lowest debt exposure. The following is a list of data for the investments:
Company Total Assets Total Liabilities Net Income
A $10,000,000 $1,000,000 $200,000
B 20,000,000 3,000,000 1,000,000
C 6,000,000 4,000,000 250,000
D 15,000,000 6,000,000 1,600,000
E 30,000,000 22,000,000 4,000,000
Required:
Calculate the debt-to-equity ratio and rank the investments base on least risky to most risky.
Answer and Explanation:
The computation is shown below:
Company Total Assets (a) Total Liabilities (b) Net Income Debt to assets ratio (a÷b) Rank
A $10,000,000 $1,000,000 $200,000 0.1 1
B $20,000,000 $3,000,000 $1,000,000 0.15 2
C $6,000,000 $4,000,000 $250,000 0.666667 4
D $15,000,000 $6,000,000 $1,600,000 0.4 3
E $30,000,000 $22,000,000 $4,000,000 0.733 5
Williams Company pays each of its two office employees each Friday at the rate of $290 per day for a five-day week that begins on Monday. If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is:
Answer:
Debit Salaries Expense $1,160 and credit Salaries Payable $1,160
Explanation:
Preparation of the month-end adjusting entry to record the salaries earned but unpaid
Based on the above information given the month-end adjusting journal entry to record the salaries earned but unpaid is:
Debit Salaries Expense $1,160
Credit Salaries Payable $1,160
( 2days * 2 workers *$290 per day = $1,160)
(To record the salaries earned but unpaid)
The following information is available for Wonderway, Inc., for 2015:
Factory rent $29,600
Company advertising 20,700
Wages paid to laborers 84,000
Depreciation for president's vehicle 8,180
Indirect production labor 1,860
Utilities for factory 30,100
Production supervisor's salary 30,800
President's salary 62,000
Direct materials used 36,200
Sales commissions 7,700
Factory insurance 12,200
Depreciation on factory equipment 26,600
Required:
a. Calculate the direct labor cost for Wonderway.
b. Calculate the manufacturing overhead cost for Wonderway.
c. Calculate the prime cost for Wonderway.
d. Calculate the conversion cost for Wonderway.
e. Calculate the total manufacturing cost for Wonderway.
f. Calculate the period expenses for Wonderway.
Answer: See explanation
Explanation:
a. Calculate the direct labor cost for Wonderway.
This will be the wages paid to laborers which is $84,000.
b. Calculate the manufacturing overhead cost for Wonderway.
Factory rent = $29,600
Add: Indirect production labor = $1,860
Add: Utilities for factory = $30,100
Add: Production supervisor's salary = $30,800
Add: Factory insurance = $12,200
Add: Depreciation on factory equipment = $26,600
Manufacturing overhead cost = $131160.
c. Calculate the prime cost for Wonderway.
Direct materials used = $36,200
Add: Wages = $84,000
Prime cost = $36200 + $84000 = $120200
d. Calculate the conversion cost for Wonderway.
Wages paid to laborers = $84,000
Add: Manufacturing overhead = $131160
Conversion cost = $215160
e. Calculate the total manufacturing cost for Wonderway.
Direct materials used = $36,200
Add: Wages paid to laborers = $84,000
Add: Manufacturing overhead = $131160
Total manufacturing cost = $251360
f. Calculate the period expenses for Wonderway.
Company advertising = $20,700
President's salary = $62,000
Add: Depreciation= $8,180
Add: Sales commissions = $7,700
Period cost = $98580
Discuss and develop a theoretical network architecture for a small business in the area that wishes to expand into new facilities, like a colocation center in the downtown area.
Answer:
The responses can be defined as follows:
Explanation:
The placement is essentially a network infrastructure facility in which a company can charge rent for servers as well as other equipment. A company can choose a site to build a server farm. However, one of the key drivers is the operating expenses for the building, maintenance, and updating of a computer system. We acquire and own the hardware (servers) as well as the software to support your presence online with the collocation, and thus are responsible for the correct setup and customization of a two. According to your needs, it may be possible to also buy a computer network or two to control traffic out into your servers (switching, router, firewalls, VPN devices, etc). The cost of the work for business continuity was often used by private companies over the years. Today, cloud providers particularly attractive among cools.
In the long run, an increase in the saving rate a. doesn’t change the level of productivity or income. b. raises the levels of both productivity and income. c. raises the level of productivity but not the level of income. d. raises the level of income but not the level of productivity.
Answer:
b. raises the levels of both productivity and income.
Explanation:
An economy is a function of how money, means of production and resources (raw materials) are carefully used to facilitate the demands and supply of goods and services to meet the unending needs or requirements of the consumers.
Hence, a region's or country's economy is largely dependent on how resources are being allocated and utilized, how many goods and services are to be produced, what should be produced, for whom they are to be produced for and how much money are to be spent by the consumers to acquire these goods and services.
A saving rate can be defined as a measure of the amount of money that an individual, business firm or country deducts from its total disposable income to save over a period of time. It is typically expressed as a percentage or ratio.
Basically, savings are very important for long-term plans and investments.
In the long run, an increase in the saving rate raises both the levels of productivity and income generated by a business firm or a country.
For example, a country that increases its saving rate would also experience an increase in the level of its income, Real gross domestic product (GDP) per person, and productivity in the long-run.
This ultimately implies that, a country with a low saving rate would have a lower productivity and lower Real gross domestic product (GDP) per person, all things being equal (ceteris paribus).
Ad space can be purchased by companies to place advertisements in the form of pop-ups and banners on another company’s websites. Please select the best answer from the choices provided T F
Answer:
true
hope this helps!
please give brainiest <3
Crane Company has old inventory on hand that cost $7500. Its scrap value is $10000. The inventory could be sold for $25000 if manufactured further at an additional cost of $7500. What should Crane do
Answer:
If the company reworks the units, income will increase by $7,500
Explanation:
Giving the following information:
The initial cost should not be taken into account.
Sell as-is:
Selling price= $10,000
Rework:
Additional cost= $7,500
Selling price= $25,000
We need to determine which option is most profitable.
Sell as-is:
Effect on income= $10,000
Rework:
Effect on income= 25,000 - 7,500= $17,500
If the company reworks the units, income will increase by $7,500
Morphe Cosmetics agrees to manufacture makeup palettes for Jaclyn Cosmetics. Under the terms of the contract, Jaclyn will pay Morphe a total of $60,000, and Jaclyn can cancel the contract if it so chooses but must pay Morphe for work completed. Morphe believes that, if Jaclyn cancelled the contract, Morphe could sell the palettes to another firm and still make a profit. The manufacturing contract is expected to last six months, and as of December 31, 2021, the job is 80% complete. How much revenue should Morphe recognize in 2021 for this contract
Answer:
the revenue that should be recognized is $48,000
Explanation:
The computation of the revenue that should be recognized is shown below;
= Total price of the contract × Percentage of completion of the contract
= $60,000 × 80%
= $48,000
By multiplying the total contract price with the percentage we can get the revenue recognized
hence, the revenue that should be recognized is $48,000
How do different careers in the human services relate to one another
Laramie Trucking's CEO is considering a change to the company's capital structure, which currently consists of 25% debt and 75% equity. The CFO believes the firm should use more debt, but the CEO is reluctant to increase the debt ratio. The risk-free rate, r RF, is 5.0%, the market risk premium, RP M, is 6.0%, and the firm's tax rate is 40%. Currently, the cost of equity, r s, is 11.5% as determined by the CAPM. What would be the estimated cost of equity if the firm used 60% debt
Answer:
15.29%
Explanation:
Calculation to determine What would be the estimated cost of equity if the firm used 60% debt
First step is to calculate the Original beta using this formula
Original beta = (rs-rRf)/ RPM
Let plug in the formula
Original beta= (11.5%- 5%)/6%
Original beta= 6.5%/ 6%
Original beta= 1.083
Second step is to calculate the Original D/E using this formula
Original D/E = D/A / (1-D/A)
Let plug in the formula
Original D/E= .25/ (1-.25%)
Original D/E= .333
Third step is to calculate the Unlevered Beta using this formula
Unlevered Beta = Bu = Bl / 1+((1- Tax rate) x (D/E)
Let plug in the formula
Unlevered Beta= 1.083/1+((1-.4) x .333
Unlevered Beta=.90
Fourth step is to calculate the Target using this formula
Target =D/e
Let plug in the formula
Target = .6/.4
Target= 1.5
Fifth step is to calculate the New Beta using this formula
New Beta = bu* (1+(D/E)(1- tax rate)
Let plug in the formula
New Beta = .90 *(1+(1.5)*(.6)
New Beta = 1.71
Now let calculate the estimated cost of equity using this formula
rs = rRF + new beta (RPm)
Let plug in the formula
rs= 5% + 1.71*6
rs= 15.29%
Therefore What would be the estimated cost of equity if the firm used 60% debt is 15.29%
Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. (The Norwegian currency is the krone, which is denoted Nkr). The company uses a sob-order costing system arid applies manufacturing overhead cost to jobs on the basis of direct labor-hours. At the beginning of the year, the following estimates were made for the purpose of computing the predetermined overhead rate: manufacturing overhead cost, Nkr360,000; and direct labor-hours, 900. The following transactions took place during the year (all purchases and services were acquired on account):
a. Raw materials were purchased for use in production, Nkr200,000.
b. Raw materials were requisitioned for use in production (all direct materials), Nkr185,000.
c. Utility bills were incurred, Nkr70,000 (90% related to factory operations, and the remainder related to selling and administrative activities).
d. Salary and wage costs were incurred:
Direct labor (975 hours) Nkr230,000
Indirect labor Nkr90,000
Selling and administrative salaries Nkr110,000
e. Maintenance costs were incurred in the factory, Nkr54,000.
f. Advertising costs were incurred, Nkrl36,000.
g. Depreciation was recorded for the year, Nkr95,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment).
h. Rental cost incurred on buildings, Nkrl20,000 (85% related to factory operations, and the remainder related to selling and administrative facilities).
i. Manufacturing overhead cost was applied to jobs, Nkr__?
j. Cost of goods manufactured for the year, Nkr770,000.
k. Sales for the year (all on account) totaled Nkrl,200,000. These goods cost Nkr800,000 according to their job cost sheets.
The balances in the inventory accounts at the beginning of the year were:
Raw Materials Nkr30,000
Work in Process Nkr21,000
Finished Goods Nkr60,000
Required:
1. Prepare journal entries to record the preceding data.
2. Post your entries to T-accounts. (Don’t forget to enter the beginning inventory balances above). Determine the ending balances in the inventory accounts and in the Manufacturing Overhead account.
3. Prepare a schedule of cost of goods manufactured.
4. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost Goods Sold. Prepare a schedule of cost of goods sold.
5. Prepare an income statement for the year.
6. Job 412 was one of the many jobs started and completed during the year. The job required Nkr8,000 in direct materials and 39 hours of direct labor time at a total direct labor cost of Nkr9,200. The job contained only four units. If the company bills at a price 60% above the unit product cost on the job cost sheet, what price per unit would have been charged to the customer?
Answer:
a. Raw Material Purchases (Dr.) Nkr200,000
Accounts Payable (Cr.) Nkr200,000
b. Work in process (Dr.) Nkr185,000
Raw material (Cr.) Nkr185,000
c. Manufacturing Overhead (Dr.) Nkr63,000
Selling and admin Overheads (Dr.) Nkr7,000
Utility expense (Cr.) Nkr70,000
d. Direct Labor wages (Dr.) Nkr230,000
Indirect Labor wages (Dr.) Nkr90,000
Selling and admin Salaries (Dr.) Nkr110,000
Salaries Expense (Cr.) Nkr 430,000
e. Maintenance expense (Dr.) Nkr54,000
Cash (Cr.) Nkr54,000
f. Advertising expense (Dr.) Nkr36,000
Cash (Cr.) Nkr36,000
g. Depreciation Expense (Dr.) Nkr95,000
Accumulated depreciation (Cr.) Nkr95,000
h. Rent Expense (Dr.) Nkr20,000
Cash (Cr.) Nkr20,000
Explanation:
i. No entry
j. Finished goods (Dr.) Nkr770,000
Cost of goods manufactured (Cr.) Nkr770,000
k. Cash (Dr.) Nkr1,200,000
Sales (Cr.) Nkr1,200,000
The Laffer Curve suggests that multiple choice 1 monetary policy always works in the long run. higher marginal tax rates bring in less revenue. fiscal policy always works in the long run. at some tax rate between 0 and 100 percent, tax revenues are maximized.
Answer:
some tax rate between 0 and 100 percent, tax revenues are maximized.
Explanation:
The Laffer Curve is a supply side economic theory developed by Arthur Laffer in 1974.
The curve depicts the relationship between tax rates and tax revenue
According to this theory, higher income tax rate reduces the incentive of labour to work and invest due to the fact that labour would have to pay higher tax. This means that at some point, increase in the tax rate would decrease government revenue rather than increase it.
The theory submits that there is an optimal tax rate at which tax income is maximised. Once this point is surpassed, increase in tax rate would reduce government revenue
Trader Joe's is an American chain of grocery stores headquartered in Monrovia, California. Trader Joe's creates a competitive advantage by its ability to incorporate upscale or attractive attributes into its product offerings at lower costs than rivals. What business strategy is Trader Joe's using to gain its competitive advantage
Answer:
Differentiation focus strategy
Explanation:
Competitive advantage is defined as the factors or strategy that gives a firm an edge over others in the same industry.
They are able to sell more product and make more profit than their competitors.
Trader Joe's creates a competitive advantage by its ability to incorporate upscale or attractive attributes into its product offerings at lower costs than rivals.
They are using differentiation focus strategy which entails developing a unique product based on selected attributes that are widely valued by customers.
Focus is given to making products that specifically meet these needs.
The result is a product that is unique in the industry. Products from Trader Joe's can't be found anywhere else. Also they provide a unique atmosphere and unique interaction with their staff.
They have been able to have reduced pricing through research and other tactics aimed at reducing cost of production in a sustainable manner.
A manager has determined that a potential new product can be sold at a price of $25 each. The cost to produce the product is $17.5, but the equipment necessary for production must be leased for $75,000 per year. What is the break-even point
Answer:
10,000 units
Explanation:
Calculation to determine the break-even point
Using this formula
Break-even point = Fixed cost / [Selling Price - Cost Price]
Let plug in the formula
Break-even point = $75,000 / [$25 - $17.5]
Break-even point = $75,000 / [$7.5]
Break-even point = 10,000 units
Therefore the break-even point is 10,000 units
In addition to the $14,000 in expenses, in Nov. 2020, Julie’s Tax Prep paid two years’ worth of office rent ($1,000/month * 24 months = $24,000). The rent covers Nov. 1, 2020 through Oct. 31, 2022. How much of the $24,000 rent can Julie’s deduct in 2020?
Answer:
Julie’s can deduct $2,000 in 2020
Explanation:
In 2020 rents for only two months November 2020 and December 2020 are accrued
First calculate the monthly rent
Monthly rent = Rent paid / Month for which rent paid = $24,000 / 24 months = $1,000 per months
Now calculate the rent deduction to be made by Julie in 2020
Rent deduction 2020 = Numbers of months accrued in 2020 x Monthly rent = 2 months x $1,000 per month = $2,000
Jose has the personal automobile policy with liability limits as follows: $25,000/$50,000 BI (bodily injury) and $10,000 PD (property damage). Jose is held liable in an accident in which he must pay for bodily injuries as follows: Person A, $10,000, Person B, $30,000. How much his insurance company will pay for this accident
Answer:
$35,000
Explanation:
We need to interpret Jose's insurance policy terms ;
$25000/$50000 ; this means that the maximum amount the policy will pay per injured individual is $25000.
While the maximum amount the policy will pay for all injuries per accident is $50,000
Given that :
Bodily injury to :
person A = $10,000
Person B = $30,000
Since A < 25000 ; policy covers, $10,000
Since B > 25000 ; policy will cover $25000
Amount insurance company will pay :
$(10,000 + 25,000) = $35,000
Jaymes Corporation produces high-performance rotors. It expects to produce 69,000 rotors in the coming year. It has invested $8,970,000 to produce rotors. The company has a required return on investment of 20%. What is its ROI per unit
Answer:
$26
Explanation:
The computation of the ROI per unit is shown below
Required ROI on the total Investment
= Total Investment × Required Rate on Investment
= $8,970,000 × 20%
= $1,794,000
So, ROI Per Unit is
= Required Return on investmnt ÷ Total Rotors
= $1,794,000 ÷ 69,000
= $26
You company requires that all projects yield a return of 12%. You’re the head of a project team developing a new product. The initial investment needed is $500,000 and the expected cashflows from this project will be 70,000 for the next 10 years. Will your project be approved, (generates a return higher than 12%). What cashflow would be required to get your project approved?
Answer:
initial investment = $500,000
10 cash flows of $70,000
Present value of cash flows = 5.65022 * $70,000 = $395,515.40
NPV = -$500,000 + $395,515.40 = -$104,484.60
The project should be rejected.
In order to approve the project, the cash flows should = $500,000 / 5.65022 = $88,492.13. With these cash flows the NPV = $0.
If estimated annual factory overhead is $480,000; overhead is applied using direct labor hours; estimated annual direct labor hours are 200,000; actual March factory overhead is $41,000; and actual March direct labor hours are 17,000; then overhead is:
Answer:
Undeapplied overhead= $200
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 480,000 / 200,000
Predetermined manufacturing overhead rate= $2.4 per DLH
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 2.4*17,000
Allocated MOH= $40,800
Finally, the over/under allocation:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 41,000 - 40,800
Undeapplied overhead= $200
Purdum Farms borrowed $17 million by signing a five-year note on December 31, 2017. Repayments of the principal are payable annually in installments of $3.4 million each. Purdum Farms makes the first payment on December 31, 2018 and then prepares its balance sheet. What amount will be reported as current and long-term liabilities, respectively, in connection with the note at December 31, 2018, after the first payment is made
Answer:
6998761626639499r9r9r8ryy
Given that the price a stock is bought for is $110 . Based on the one-period valuation model of stock prices, if the stock is sold a year later at the price $120 after receiving a dividend of $2 , then the required rate of return on equity investments is nothing %. (Round your response to the nearest one decimal place.)
Answer:
10.9%
Explanation:
