Answer and Explanation:
Property, Plant and Equipment(PPE) are reported are reported at book value in the balance sheet statement. Over it's useful life, depreciation is allocated as expense to PPE and accumulated depreciation is calculated for total of depreciation expense to get net book value(cost less depreciation expense). PPE is only reported at fair value when it is going to be sold or it is damaged/impaired asset. Otherwise it is not useful to report PPE at fair value in the statement.
Group of answer choicesThe horizon value is calculated by discounting the free cash flows beyond the horizon date and any tax savings at the cost of debt. The horizon value is calculated by discounting the expected earnings at the WACC. The horizon value is calculated by discounting the free cash flows beyond the horizon date and any tax savings at the WACC. The horizon value must always be more than 20 years in the future. The horizon value is calculated by discounting the free cash flows beyond the horizon date and any tax savings at the levered cost of equity.
Answer:
The horizon value is calculated by discounting the free cash flows beyond the horizon date and any tax savings at the WACC
Explanation:
Horizon value
This is simply known as the value of a security. It is regarded as present value usually at future point in time of all cash flows when we stable growth rate is anticipated forever. Its simply known also as present value of all free cash flows beyond the horizon date discounted back to the horizon date. It is also called the terminal value due to it being regarded as end of the explicit forecast period or the continuing value due to the fact that it is the value if operations continue to be used rather than be liquidated.
The growth in free cash flows is usually not constant so modification has to be made to the constant growth formula to find the value of free cash flows beyond the horizon date discounted back to the horizon Formula to calculate horizon value.
Mathematically;
HV = V option at time t =FCFt(1+g)
(WACC-g)
The formula for Terminal Value using the Gordon Growth method includes: Terminal Value = Final Year Free Cash Flow * (1 + Growth Rate) / (Discount Rate - Growth Rate)
DAN Enterprise purchased a building at the cost of RM250,000. The
purchase was paid RM50,000 in cash and the remaining RM200,000 is on
account. Based on these transactions, what are the effects of these
transactions on the accounting equation?
RM250,000 increase in asset; RM250,000 increase in owner's equity
RM200,000 increase in asset; RM200,000 increase in owner's equity
RM200,000 increase in asset; RM200,000 increase in liability
RM250,000 increase in asset; RM250,000 increase in liability
Answer:
guyttiyvk6jfcurifsrtu
Purchase of inventory on credit transactions that Affect Assets and Liabilities. The accounting equation states that there must be a credit for each debit.
Explain about the accounting equation?
The accounting equation demonstrates that the total assets of a company equal the sum of its liabilities and shareholders' equity (assets = liabilities + equity). The basis of double-entry bookkeeping is the distinct relationship between a company's liabilities, assets, and equity.
The three variables in the accounting equation are assets, liabilities, and shareholders' equity. A company's assets are equal to the sum of its liabilities and shareholders' equity, according to a straightforward formula
Liabilities and equity add up to the total amount of assets in the fundamental accounting equation. Assets = Liabilities + Equity is the accounting equation. You use capital or debt to fund your purchases, so both sides of the equation must be equal.
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Accounts receivable had a debit balance of $4,000 at the beginning of the period, and a debit balance of $6,000 at the end of the period. Credit sales for the period totaled $22,000. Using this information, cash receipts for the period totaled:
Answer: $20000
Explanation:
The cash receipt for the period based on the information that's given will be:
Opening balance of account receivable = $4000
Add: Credit sales = $22,000
Less : Closing balance of account receivable = $6,000
Cash receipt = $20000
Assume, for Canada, that the domestic price of wheat without international trade is lower than the world price of wheat. This suggests that, in the production of wheat, a.Canada has a comparative advantage over other countries and Canada will export wheat. b.Canada has a comparative advantage over other countries and Canada will import wheat. c.other countries have a comparative advantage over Canada and Canada will import wheat. d.other countries have a comparative advantage over Canada and Canada will export wheat.
Answer:
a.Canada has a comparative advantage over other countries and Canada will export wheat.
Explanation:
In the case when the domestic price is less than the world price of wheat so it is shown that there is the comparative advantage over the other countries due to this the canada would export the wheat. Also the demand is less or the supply of the wheat is higher. So ultimately it decrease the opportunity cost of generating the wheat
Therefore the above represent the answer
Dave's Duds reported cost of goods sold of $1,600,000 this year. The inventory account increased by $130,000 during the year to an ending balance of $465,000. What was the cost of merchandise that Dave's purchased during the year?
Answer:
$1,730,000
Explanation:
Calculation to determine the cost of merchandise that Dave's purchased during the year
COGS $1,600,000
Add: Increase in inventories $130,000
Purchases $1,730,000
($1,600,000+$130,000)
Therefore the cost of merchandise that Dave's purchased during the year is $1,730,000
nature of human resources
Answer:
Explanation: Personnel Activities or Functions: Human Resource Management involves several functions concerned with the management of people at work. It includes manpower planning, employment, placement, training, appraisal and compensation of employees
Paano
maisaalang-
alang ang etika
sa pagbuo ng
teknikal-
bokasyunal na
paunawa/babala/
anunsiyo?
Answer:
ewan
Explanation:
ewan ko lng
hope it help joke
Accounting costs and economic costs differ because A) Economic costs include explicit costs and accounting costs do not. B) Accounting costs include explicit costs and economic costs do not. C) Economic costs include implicit costs and accounting costs do not. D) Accounting costs include implicit costs and economic costs do not.
Answer:
C) Economic costs include implicit costs and accounting costs do not.
Explanation:
Economic cost can be calculated as follow
Economic Cost = Explicit cost + Implicit cost
Whereas, the Implicit cost is calculated as follow
Accounting cost = Explicit cost
Hence, the difference between the economic cost and accounting cost is only the implicit cost.
Implicit cost is the opportunity cost.
Economic costs include implicit costs, such as opportunity costs, while accounting costs only consider explicit costs, such as monetary expenses. Therefore, option C is correct.
Economic costs encompass the full measure of costs incurred in pursuing a particular course of action. They extend beyond explicit monetary expenses and include implicit costs, such as opportunity costs. Opportunity costs represent the value of the next-best alternative forgone when making a decision.
Economic costs reflect the total resources and opportunities sacrificed, both explicit and implicit, to undertake a specific activity or venture.
By accounting for both explicit and implicit costs, economic costs provide a more comprehensive assessment of the true cost of a decision or action, considering the value of all foregone opportunities and resources used in the process.
Therefore, option C is correct.
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Elliott Credit Corp. wants to earn an effective annual return on its consumer loans of 15.7 percent per year. The bank uses daily compounding on its loans. What interest rate is the bank required by law to report to potential borrowers
Answer:
the rate of interest needed to report to the potential borrower is 14.59%
Explanation:
The computation of the rate of interest needed to report to the potential borrower is given below:
= ((1 + rate of interest per year)^(1 ÷ number of days in a year) - 1) × number of days in a year
= ((1 + 15.7%)^(1 ÷ 365) -1) × 365
= 14.59%
hence, the rate of interest needed to report to the potential borrower is 14.59%
Asteroid Industries accumulated the following cost information for the year:
Direct materials $15,200
Indirect materials 3,200
Indirect labor 7,700
Factory depreciation 12,000
Direct labor 36,200
Using the above information, total factory overhead costs equal: _________
Answer:
Factory overhead= $22,900
Explanation:
Giving the following information:
Direct materials $15,200
Indirect materials 3,200
Indirect labor 7,700
Factory depreciation 12,000
Direct labor 36,200
Factory overhead is all the indirect costs related to production. In this case:
Factory overhead= indirect materials + indirect labor + factory depreciation
Factory overhead= 3,200 + 7,700 + 12,000
Factory overhead= $22,900
eBookItem 7 The U.S. Department of Agriculture guarantees dairy producers that they will receive at least $1.00 per pound for butter they supply to the market. Below is the current monthly demand and supply schedules for wholesale butter (in millions of pounds per month). Market for Wholesale Butter Price (dollars per pound) Quantity of Butter Demanded (millions of pounds) Quantity of Butter Supplied (millions of pounds) $0.80 114 70 0.90 111 78 1.00 108 86 1.10 105 94 1.20 102 102 1.30 99 110 1.40 96 118 1.50 93 126 1.60 90 134 1.70 87 142 1.80 84 150 Instructions: Round your answer for price to 2 decimal places. Enter your answers for quantity as a whole number. a. What are the equilibrium price and quantity in the wholesale butter market
Answer:
The U.S. Department of Agriculture
a. The equilibrium price in the wholesale butter market is:
= $1.20.
b. The equilibrium quantity in the wholesale butter market is:
= 102 million pounds.
Explanation:
a) Data and Calculations:
Market for Wholesale Butter
Price (dollars Quantity of Butter Quantity of Butter
per pound) Demanded Supplied
(millions of pounds) (millions of pounds)
$0.80 114 70
0.90 111 78
1.00 108 86
1.10 105 94
1.20 102 102
1.30 99 110
1.40 96 118
1.50 93 126
1.60 90 134
1.70 87 142
1.80 84 150
b) The equilibrium price and quantity are the price and quantity at which the quantity of butter demanded in the wholesale butter market equals the quantity of butter supplied in the same market. At this price of $1.20 per pound, the total quantity demanded and supplied equaled 102 million pounds of butter. At this price and quantity, both consumers and suppliers of butter in the wholesale market go home satisfied.
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
Label each of the following statements true, false, or uncertain. Explain your choice carefully.
a. The present discounted value of a stream of returns can be calculated in real or nominal terms.
b. The higher the one-year interest rate, the lower the present discounted value of a payment next year.
c. Interest rates are normally expected to be constant over time.
d. Bonds are a claim to a sequence of constant payments over a number of years.
e. The yield curve normally slopes up.
Answer:
a. The present discounted value of a stream of returns can be calculated in real or nominal terms. TRUE
This is true because the present value of returns can be calculated using nominal rates which do not account for inflation, or using real rates which will account for inflation.
b. The higher the one-year interest rate, the lower the present discounted value of a payment next year. TRUE
Higher interest rates discount payments faster because they discount by dividing the payment so a higher rate would divide the payment more and lead to a lower present value.
c. Interest rates are normally expected to be constant over time. FALSE
Interest rates change over time in response to economic conditions.
d. Bonds are a claim to a sequence of constant payments over a number of years. TRUE
As a bondholder, you are entitled to payments over the life of the bond which means that it is a claim to constant payment over a number of years.
e. The yield curve normally slopes up. TRUE
The yield curve slopes upward to represent that interest rates increase in future.
After hearing a knock at your front door, you are surprised to see the Prize Patrol from a large, well-known magazine subscription company. It has arrived with the good news that you are the big winner, having won $27 million. You have three options. (a)Receive $1.35 million per year for the next 20 years. (b)Have $9.75 million today. (c)Have $3.75 million today and receive $1,050,000 for each of the next 20 years. Your financial adviser tells you that it is reasonable to expect to earn 13 percent on investments.
Answer:
option A - $9.48 miilion
Option B - $9.75 million
Option C - 11.13 miilion
option c
Explanation:
Calculate the present value of each option. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Enter your answers in dollars but not in millions.)
2. Determine which option you prefer.
Option A
Option B
Option C
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Option 1
Cash flow each year from year 1 to 20 = $1.35 million
I = 13%
Present value = 9.48 miilion
option 2
PV = $9.75 million
Option 3
Cash flow in year 0 = $3.75 million
Cash flow each year from year 1 to 20 = $1.05 million
I = 13%
Present value = 11.13 million
option 3 has the highest present value and should be chosen
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
9.48 miilion
11.13 miilion
Salge Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate is $8.10 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $74,730 per month, which includes depreciation of $20,670. All other fixed manufacturing overhead costs represent current cash flows. The direct labor budget indicates that 5,300 direct labor-hours will be required in September. The company recomputes its predetermined overhead rate every month. The pre-determined overhead rate for September should be:___.
a. $18.30.
b. $14.10.
c. $8.10.
d. $22.20.
Answer:
d. $22.20
Explanation:
Calculation to determine what the pre-determined overhead rate for September should be:
Using this formula
Predetermined overhead rate = Variable overhead rate per direct labor hour + Estimated fixed manufacturing overhead/Estimated direct labor hour
Let plug in the formula
Predetermined overhead rate=$8.10 + ($74,730/5,300)
Predetermined overhead rate= $8.10+$14.1
Predetermined overhead rate= $22.20 per direct
Therefore the pre-determined overhead rate for September should be:$22,20
Consider the following stock price and shares outstanding data: Stock Name Price per Share Shares Outstanding (Billion) Lowes $28.80 1.53 Wal-Mart $47.90 4.17 Intel $19.60 5.77 Boeing $75.00 0.79 If you are interested in creatinga value-weighted portfolio of these four stocks, then the percentage amount that you would invest in Lowes is closest to: A) 25% B) 11% C) 20.0% D) 12% E) 8%
Answer:
B) 11%
Explanation:
We need to determine the total amount to invest in all the stocks in the first place as computed below:
Lowes= $28.80*1.53=$44.06
Wal-Mart=$47.90*4.17=$199.74
Intel=$19.60*5.77 =$113.09
Boeing=$75.00*0.79=$59.25
Total amount invested in the portfolio=$44.06+$199.74+$113.09+$59.25
Total amount invested in the portfolio=$416.14
Lowes' portion of the portfolio=amount invested in Lowes/total portfolio amount
Lowes' portion of the portfolio=$44.06/$416.14
Lowes' portion of the portfolio=11%
The financial statement effects of the payment of a cash dividend (on the date of payment for a previously declared dividend) include:_________.
Answer:
The financial statement effects of the payment of a cash dividend (on the date of payment for a previously declared dividend) include:_________.
a. Cash (Current Asset) is decreased.
b. Dividends Payable (Current Liability) is decreased.
Explanation:
The journal entry debits the Dividends Payable account and credits the Cash account. This reduces the dividends payable and the cash accounts respectively by the same amount. Therefore, current assets and current liabilities are decreased. The effects of the cash payment are on the Balance Sheet and Statement of Cash Flows only.
What is accounting? and what is accounting all about?
Answer:
accounting is the process of recording financial transaction pertaining to a business.
Explanation:
......
Porter Inc. acquired a machine that cost $367,000 on October 1, 2019. The machine is expected to have a five-year useful life and an estimated salvage value of $43,000 at the end of its life. Porter uses the calendar year for financial reporting. Depreciation expense for one-fourth of a year was recorded in 2019.
Required:
a. Using the straight-line depreciation method, calculate the depreciation expense to be recognized in the income statement for the year ended December 31, 2021, and the balance of the Accumulated Depreciation account as of December 31, 2021.
b. Using the double-declining-balance depreciation method, calculate the depreciation expense for the year ended December 31, 2021, and the net book value of the machine at that date.
Answer:
The answer is "148050 and 246740".
Explanation:
Please find the complete question in the attached file.
for point a:
Cost [tex]365000[/tex]
Less: Salvage value [tex]36000[/tex]
Depreciable cost [tex]329000[/tex]
Divide by Useful life [tex]5[/tex]
Annual Depreciation [tex]65800[/tex]
Depreciation expense [tex]65800[/tex]
Accumulated Depreciation[tex]=(65800\times \frac{1}{4})+65800+65800= 148050[/tex]
for point b:
Double declining balance rate [tex]=\frac{1}{5}\times 2= 40\%[/tex]
Depreciation for 2019 [tex]=365000\times 40\%\times \frac{1}{4}=36500[/tex]
Depreciation for 2020[tex]=(365000-36500)\times 40\%=131400[/tex]
Depreciation expense for 2021 [tex]=(365000-36500-131400)\times 40\%= 78840[/tex]
Depreciation expense 78840
Accumulated Depreciation [tex]=36500+131400+78840 =246740[/tex]
Alliance Company budgets production of 24,000 units in January and 28,000 units in the February. Each finished unit requires 3 pounds of raw material K that costs $3.00 per pound. Each month's ending raw materials inventory should equal 35% of the following month's budgeted materials. The January 1 inventory for this material is 25,200 pounds. What is the budgeted materials needed in pounds for January
Answer:
Total direct material needed in pounds= 101,400 pounds
Explanation:
Giving the following information:
Each finished unit requires 3 pounds of raw material K that costs $3.00 per pound.
Each month's ending raw materials inventory should equal 35% of the following month's budgeted materials.
The January 1 inventory for this material is 25,200 pounds.
Production:
January= 24,000 units
February= 28,000 units
Direct material budget:
Production= 24,000*3= 72,000 pounds
Desired ending inventory= (28,000*0.35)*3= 29,400 pounds
Total direct material needed in pounds= 101,400 pounds
Purchases= production + desired ending inventory - beginning inventory
Purchases= 101,400 - 25,200
Purchases= 76,200 pounds
Direct material purchase cost= 76,200*3= $228,60
Antitrust regulators are likely to prohibit two firms from merging if: __________.
a. There are sizable synergies to the combination
b. The combined firm will have a large share of the market
c. There are many other firms in industry
d. The combined firm will undercut competitiors with lower prices
Answer:
If the combined firm will have a large share of the market.
Explanation:
If a small company invests its annual profits of $150,000 in a stock fund which earns 18% per year, the amount in the fund after 10 years will be nearest to:
Answer:
the amount in the fund after 10 years will be $785,075.04
Explanation:
The computation of the amount after 10 years is shown below"
As we know that
Future value = Present value × (1 + rate of interest)^number of years
= $150,000 × (1 + 0.18)10
= $785,075.04
Hence, the amount in the fund after 10 years will be $785,075.04
The difference between a low-cost provider strategy and a focused low-cost strategy is Multiple choice question. the company's willingness to accept a lower profit margin. the uniqueness of the product or service. the size of the company's targeted buyer group. the length of the value chain.
Answer:
the size of the company's targeted buyer group.
Explanation:
Low cost strategies are used by sellers to gain more patronage of their products. It gives them competitive advantage of having low prices and this will in turn increase sales.
The low-cost provider strategy involves a reduction in prices of all the products a company sells in all locations while still making a profut. An appeal is made to a broad market to attract customers in mass.
The focused low-cost strategy on the other hand involves cost reduction in a targeted niche. It does not appeal to the broad market but rather to a specific customer profile.
So the difference between these two strategies is the size of the company's targeted buyer group.
How does understanding individual behaviour help authentic leaders overcome challenges in organisations? Provide an example in your response.
Answer:
To understand the behavior and skill set of the individual
Explanation:
Understanding individual behaviour helps leaders to understand how these people can be useful in contributing to the growth of the team and organization.
It also helps leader to understand the interpersonal skills of an individual being so that there are no issues due to the behavioral aspect with in the team.
Glacier Mining Co. acquired mineral rights for $494,000,000. The mineral deposit is estimated at 475,000,000 tons. During the current year, 31,500,000 tons were mined and sold. Required: A. Determine the depletion rate. B. Determine the amount of depletion expense for the current year. C. Journalize the adjusting entry on December 31 to recognize the depletion expense. Refer to the Chart of Accounts for exact wording of account titles.
Answer:
a. Depletion rate:
= Mineral rights acquisition costs / Estimated mineral deposits
= 494,000,000 / 475,000,000
= $1.04 per ton
b. Depletion expense for current year:
= Depletion rate * Minerals mined and sold in current year in tons
= 1.04 * 31,500,000
= $32,760,000
c. Journal entries:
Date Account title Debit Credit
12/31-20XX Depletion expense $32,760,000
Accumulated Depreciation $32,760,000
The Japanese concept of a company coalition of suppliers is:________.
a. poka-yoke.
b. kaizen.
c. keiretsu.
d. dim sum.
e. illegal.
Answer:
C. Keiretsu
Explanation:
A means mistake proofing, b is a Japanese philosophy, d is a food, and e is wrong because it's still done in the 21st century.
The probability distribution of damage claims paid by Insurance ABC on collision insurance is as followed: Payment ($) Probability 0 0.85 500 0.04 1000 0.04 3000 0.03 5000 0.02 8000 0.01 10000 0.01 How much should the collision insurance premium be so the company can break even
Answer:
The appropriate response is "$430".
Explanation:
According to the question, the solution will be:
⇒ [tex]E(x)=\Sigma xP(x)[/tex]
By substituting the values, we get
⇒ [tex]=0\times 0.85+500\times 0.04+1000\times 0.04+3000\times 0.03+5000\times 0.02+8000\times 0.01+10000\times 0.01[/tex]
= [tex]430[/tex] ($)
Thus, the above is the correct answer.
An investor purchased on margin Orange Computer for $30 a share. The stock's price subsequently increased to $47 a share at which time the investor sold the stock. The margin requirement is 60 percent and the interest rate on borrowed funds is 7 percent. What would have been the return if the investor had not bought the stock on margin
Answer:
56.67%
Explanation:
Purchase cost = 30 dollars
Margin x price = 0.60x30 = $18
30-18 = $12
Profit = $47 - $30 - 0.07(12)
= 16.16
Percentage earned = (16.16 /18) * 100
= 89.78%
Profit from the trade
= 47-30
= 17
Percentage earned = 17/30 * 100
= 56.67%
The return would have been 56 67% if the investor had not done this.
Bottlebrush Company has income from operations of $73,745, invested assets of $245,000, and sales of $1,053,500. Use the DuPont formula to calculate the return on investment, and show (a) the profit margin, (b) the investment turnover, and (c) the return on investment. Round answers to one decimal place. a. Profit Margin fill in the blank 1 % b. Investment Turnover fill in the blank 2 c. Return on Investment
Answer:
a. Profit margin = Income from operations / Sales
Profit margin = $73,745/$1,053,500
Profit margin = 0.07
Profit margin = 7%
b. Investment turnover = Sales/Invested assets
Investment turnover = $1,053,500/$245,000
Investment turnover = 4.3 times
c. Rate of return on investment = Profit margin * Investment turnover
Rate of return on investment = 7% * 4.3
Rate of return on investment = 30.10%
Suppose you know a company's stock currently sells for $31 per share and the required return on the stock is 0.13. You also know that the required return is evenly divided between the capital gains yield (G) and the dividend yield (D1/P0) (this means that if the required retun is 9%, the capital gains yield is 4.5% and the dividend yield is 4.5%).If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share? Answer with 2 decimals (e.g. 1.23)
Answer:
The current dividend per share = 1.89
Explanation:
13% = {[Dividend * (1 + g)] / $31} + g
g = 13% / 2 = 6.5%
13% = {[Dividend * (1 + 6.5%)] / $31} + 6.5%
6.5% = Dividend * (1 + 6.5%)] / $31
$31 * 6.5% = Dividend * (1 + 6.5%)
$2.015 / 1.065 = Dividend
Dividend = $1.89
