Answer:
Omega Corp.
The correct totals for the following:
a. Current assets = $100
b. Net fixed assets = $400
c. Total assets = $500
d. Current liabilities = $60
e. Total liabilities = $410
f. Total liabilities and shareholders’ equity = $500
g. EBIT = $70
h. Taxable income = $45
i. Net income = $30
Explanation:
a) Data and Calculations:
BALANCE SHEET
Cash $15
Receivables 35
Inventories 50
Total current assets $100
Property, plant, and equipment 520
Less accumulated depreciation 120
Net fixed assets $400
Total assets $500
Liabilities and Equity
Payables $35
Debt due for repayment 25
Total current liabilities $60
Long-term debt 350
Total liabilities $410
Shareholders’ equity 90
Total liabilities and shareholders’ equity $500
INCOME STATEMENT
Net sales $700
Cost of goods sold 580
Gross profit 120
Selling, general, and
administrative expenses 38
Depreciation 12
EBIT 70
Interest expense 25
Taxable income 45
Taxes 15
Net income 30
Assume the corporate tax view of capital structure. Your unleveraged cost of capital is 13%. Your corporate tax rate is 30%. Your firm proposes to borrow $800 and its leveraged firm value is $1,600. What is your cost of capital under the proposed leveraging?
A. 12.06%
B. 10.03%
C. 11.05%
D. 11.33%
Answer:
C. 11.05%
Explanation:
The computation of the cost of capital under the proposed leveraging is shown below;
cost of capital is
=Debt÷ value of leverged firm × ((unlevered cost of capital × (1 - tax rate))
=800 ÷ 1600 × ((13% + (13%) × (1 - 30%)))
= 11.0500%
hence, the cost of capital is 11.05%
For each of the following transactions below, prepare the journal entry (if one is required) to record the initial transaction and then prepare the adjusting entry, if any, required on September 30, the end of the fiscal year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
(a) On September 1, paid rent on the track facility for three months, $213,000.
(b) On September 1, sold season tickets for admission to the racetrack. The racing season is year-round with 25 racing days each month. Season ticket sales totaled $840,000.
(c) On September 1, borrowed $300,000 from First National Bank by issuing a 6% note payable due in three months.
(d) On September 5, programs for 20 racing days in September, 25 racing days in October, and 25 racing days in November were printed for $3,500.
(e) The accountant for the concessions company reported that gross receipts for September were $160,000. Eight percent is due to the track and will be remitted by October 10.
Answer and Explanation:
the journal entries are as follows:
a Prepaid rent $213,000
To cash $213,000
(To record prepaid rent)
Adjusting entry:
Rent expense $71,000 ($213,000 ÷ 3)
Prepaid rent $71,000
(To record September rent expense)
b Cash $840,000
To unearned sales revenue $840,000
(To record cash received on season sales)
Adjusting entry:
Unearned sales revenue ($840,000 ÷ 12) $70,000
Sales revenue $70,000
(To record sales revenue recognised)
c Cash $300,000
Note payable $300,000
(To record note payable issued on borrowed amount )
Adjusting entry:
Interest expense ($300,000 × 6% ÷ 12) $1,500
Interest payable $1,500
(To record interest payable due)
d Prepaid advertising 3,500
To Cash 3,500
(To record cash paid for advertising)
Adjusting entry:
Advertising expense ($3,500 ÷ 60) × 20 $1,167
To prepaid advertising $1,167
e No entry
Adjusting entry:
Accounte receivable ($160,000 × 8%) $12,800
Sales revenue $12,800
(To record amout due)
How does the mode of corroborating (e.g. strategic alliance, joint venture, licensing, outsourcing, collective research organization) influence the success of a collaboration?
Answer:
Organizations are always looking for new strategies to leverage their profits and market positioning. Corroboration arises then as a strategy in which two or more companies unite temporarily or not, through strategic alliance, licensing, joint venture, outsourcing, etc., with the common objective of expanding their market share and profits.
The way to corroborate influences the success of a collaboration because the chosen strategy is aligned with the organizational values and objectives. When two companies join a strategic alliance, for example, they share their resources, knowledge, technologies, market value and others, to achieve different joint benefits, such as competitive advantage, consumer attraction, greater positioning, increased market share, etc.
đường tổng cung dài hạn là đường có độ đố dương hay âm
Answer:
dương
Explanation:
what is the most important value adding service criteria?
Answer:
functional value, monetary value, social value, and psychological value
The Boat Company has a capital structure of 30 percent riskless debt and 70 percent equity. The assumed tax rate is 23 percent. If the asset beta is .9, what is the equity beta?
Answer: 0.68
Explanation:
Using the measures given, the equity beta can be calculated as:
Equity beta = Asset beta * (1 + (1 - Tax rate) * (Debt/Equity)
= 0.9 * ( 1 + ( 1 - 23%) * (30% / 70%)
= 1.593 * 0.3/0.7
= 0.68
Which of the following instruments are traded in the capital markets? Check all that apply. Treasury bills Certificates of deposit Common stocks Commercial paper Preferred stocks
Answer:
Common stocks
Preferred stocks
Explanation:
The Capital Market is a place where bonds and stocks are traded however it is only for stocks and bonds with a maturity that lasts over a year. Corporate bonds and government bonds fall under this category as a result.
Stocks represent ownership in a company so this is a long term ownership thing which is why it is traded in the capital market. This includes both common and preferred stock.
A manager's need to exert tight controls on subordinates (span of control) is most accurately captured by which of the following statements?
A. Control will decrease as the manager gets to higher levels in the organization and work becomes less standardized.
B. Control is generally the same in almost all organizations.
C. Control will clearly increase as subordinates need less supervision.
D. Control will decrease as new employees join the company.
Answer:
b
Explanation:
The phrase Control will decrease as the manager climbs to higher levels in the organization and work becomes less standardized best describes a manager's need to exert tight controls on subordinates (span of control).
Thus, option A is correct.
What is the ideal span of control?For all businesses, assessing the scope of control is a useful health check. Organizations can easily identify potential areas for improvement or issue areas by visualizing spans and layers. The number of employees directly under management is referred to as the span of control. The number of subordinates that a supervisor or manager in an organization can effectively and efficiently supervise is referred to as the span of control.
A manager with five direct reports, for instance, has a span of control of five. As long as it is considered in the context of the company's organizational structure, having too many or too few direct reports is a useful indicator of how effective an organization is.
For more information about the span of control refer to the link:
https://brainly.com/question/13678908
#SPJ2
What personal traits are important for finance and business careers?
Answer:
You must be positive
Emotional intelligence
A growth mindset
Adaptability and resiliency
Answer:
if you want to take up a business for your future career these are your personal traits you must have when you are creating a business;
Be positiveWork FastBe KindBe OrganizedKeep your Business Surroundings Clean and tidyGet rid of Pests and insects in your Business Area and SurroundingHand everything with CareAlways Help your CustomerFabFitFun Coupon Code FabFitFun Coupon Code is the best way to avail discounts on FabFitFun store shopping, there are lots of items on which you can avail the discount, amazing offers so visit the store by clicking the button and Save your Pocket now!
FabFitFun Coupon Code
https://couponsagent.com/front/store-profile/fabfitfun-coupon-code
Answer: Please don’t advertise here
Answer:
dont advertise
Explanation:
C Co. reported a retained earnings balance of $230,000 at December 31, 2020. In September 2021, C determined that insurance premiums of $81,000 for the three-year period beginning January 1, 2020, had been paid and fully expensed in 2020. C has a 25% income tax rate. What amount should C report as adjusted beginning retained earnings in its 2021 statement of retained earnings
Answer:
$267,800
Explanation:
Calculation to determine What amount should C report as adjusted beginning retained earnings in its 2021 statement of retained earnings
First step is to Allocate the premium equally starting from 2020,2021 to 2022
Premium=$81,000/3 years
Premium=$27,000
Second step is to calculate the effect of the error
Effect of error=$81,000-$27,000
Effect of error=$54,000
Third step is to calculate the tax effect
Tax effect =$54,000*30%
Tax effect=$16,200
Fourth step is to calculate the 2021 beginning retained earnings
2021 Beginning retained earnings=$54,000-$16,200
2021 Beginning retained earnings=$37,800 Understated
Now let determine the Corrected retained earnings
Using this formula
Corrected retained earnings =Beginning balance + Understated Beginning retained earnings
Let plug in the formula
Corrected retained earnings= $230,000 + $37,800
Corrected retained earnings= $267,800
Therefore the amount that C should report as adjusted beginning retained earnings in its 2021 statement of retained earnings will be $267,800
Number of Output Marginal Product Office Rent Labor Cost TotalCost
Workers boxes of Labor (dollars) (dollars)
0 0 --
1 220 400 200
2 250 800
3 680
4 160 1,200
5 940 1,000
6 980 1,600
Suzette's Fancy Packaging subcontracts with Sunshineland Pecans to box dried fruit and nuts for Suzette's mail order business. Suzette rents space for her factory for $400 a week in a nearby strip mall. She can hire temporary workers for $200 a week. Table 11-5 above shows her output and cost data. Use the table to answer questions a-e.
a. Complete the table.
b. In the last week of summer Suzette closes her business to go on a family vacation. What are her costs during that week?
c. In one week Suzette exactly breaks even. If her revenue for the week is $1,200, how many boxes of fruit and nuts did she produce?
d. Judging from the marginal product of labor data, would you say that Suzette had to settle for increasingly unproductive workers? Explain your answer.
e. Suzette has received an order for 1,500 boxes of nuts per week for the next 3 months. If she expects the trend in the marginal product of labor will continue in the same direction, what do you think she should do? Should she not commit until she can move to a larger space or should she just hire more workers? Explain your answer.
Answer:
a.
Number of Output Marginal Product Office Rent Labor Cost Total Cost
Workers boxes of Labor (dollars) (dollars) (dollars)
0 0 - -
1 220 220 400 200 600
2 470 250 400 400 800
3 680 210 400 600 1,000
4 840 160 400 800 1,200
5 940 100 400 1,000 1,400
6 980 40 400 1,200 1,600
b. The costs during the week of summer vacation are: $400
c. She produced 840 boxes.
d. Yes. Suzette settled for increasingly unproductive workers as the marginal product of labor continued to decline. The cost of paying the workers remained at a flat rate of $200 per week without the corresponding output to show for the labor cost.
e. Suzette will need to hire more workers. However, their average productivity needs to be improved greatly to limit the total labor costs.
Explanation:
a) Data and Calculations:
Number of Output Marginal Product Office Rent Labor Cost Total Cost
Workers boxes of Labor (dollars) (dollars) (dollars)
0 0 - -
1 220 220 400 200 600
2 470 250 400 400 800
3 680 210 400 600 1,000
4 840 160 400 800 1,200
5 940 100 400 1,000 1,400
6 980 40 400 1,200 1,600
A firm has a debt-equity ratio of .64, a cost of equity of 13.04 percent, and a cost of debt of 8 percent. Assume the corporate tax rate is 25 percent. What would be the cost of equity if the firm were all-equity financed
Answer:
11.41%
Explanation:
The cost of equity of an all-equity firm can be derived from the below formula:
Levered Cost of Equity = Unlevered Cost of Equity + (Unlevered Cost of Equity - Cost of Debt) * (1 - tax) * Debt-Equity Ratio
Levered Cost of Equity=13.04%
Unlevered Cost of Equity=the unknown(let us assume it is U)
cost of debt=8%
tax rate=25%
debt-equity ratio=0.64
13.04%=U+(U-8%)*(1-25%)*0.64
13.04%=U+(U-8%)*0.75*0.64
13.04%=U+(U-8%)*0.48
0.1304=U+0.48U-0.0384
0.1304+0.0384=1.48U
1.48U=0.1688
U=0.1688/1.48
U=11.41%
In 2011, Starbucks terminated a contract with Kraft Foods that allowed Kraft to sell bagged Starbucks coffee in grocery stores. The early termination resulted in litigation between Kraft and Starbucks. After an arbitrator found in Kraft's favor, Starbucks recorded a liability for $2.8 billion.
Required:
This behavior is typical of many companies today. What is your opinion on the reasons companies behave this way? Is it realistic? Why or why not?
Answer:
Starbucks and Kraft Foods
The reasons companies terminate contracts before their expiration include impossibility of performance, material breaches of contract terms, misrepresentation, fraud, lack of capacity, mutual mistake, and frustration.
The reason for Starbucks' termination of the contract was "multiple material breaches." These were not established by the arbitrator, who delivered judgment in Kraft's favor.
It is not always realistic to terminate a long-standing contract without abiding by the contract termination terms because the damages and accruing interests that can be awarded against the terminating company may be too huge.
Explanation:
The "multiple material breaches" that Starbucks alleged against Kraft included the allegation that "Kraft did not always meet minimum advertising budgets or keep Starbucks involved in major initiatives." According to Starbucks, these violations eroded its "brand equity."
Some members of Congress have proposed a law that would make price stability the sole goal of monetary policy. Suppose such a law were passed. (a) How would the Fed respond to an event that expanded aggregate demand
Answer:
If aggregate demand expands, unless aggregate supply expands in an equal proportion, then the price level will increase. In order to keep prices stable, the FED would need to increase interest rates or decrease the money supply in order to offset the expansion of the aggregate demand. This way, aggregate demand should return to its original level.
Explanation:
On January 2, Dog Mart prepaid $19,920 rent for the year and recorded the prepayment in an asset account. Prepare the January 31 adjusting entry for rent expense. If an amount box does not require an entry, leave it blank. Jan. 31 fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6
Answer:
Debit : Rent Expense $1,660
Credit : Prepaid Rent $1,660
Explanation:
The January 31 adjusting entry for rent expense would include a Debit to Rent Expense and Credit to Prepaid Rent - Asset Account at an amount of $1,660.
Calculation :
Rent Expense = 1/12 x $19,920 = $1,660
A firm is considering an investment in a new advertising project. The project will produce a cash flow of $1,000 in one year and it will produce a cash flow of $15,000 two years from now. The firm has a required return of 11%. You are the manager of the advertising department and you estimate that the cost of this project is $13,000 today. Do you recommend that the firm accept this project
Answer:
The fact the investment opportunity has a positive cash flow means that the project should be accepted since it is value-adding
Explanation:
We can evaluate the acceptability of the project using the net present value approach. The net present value is the present value of future cash flows discounted at the 11% required rate of return.
Present value=future cash flow/(1+required rate of return)^n
n is the year in which the cash flows are expected, it is 1 for year 1 cash flow and 2 for year 2 cash flow
NPV=$1,000/(1+11%)^1+$15,000/(1+11%)^2-$13,000
NPV=$75.24
A(n) ________ is a hybrid between a conventional loan and a bond; at its heart it is a bond, but its terms are tailored to the borrower's individual needs, as a loan would be.
Answer:
Private placement
Explanation:
Private placement can be defined as non public offering also. This is because they are not sold through public offering but are sold through Private sales and the the number of investors are few and selected
These investors who receive the bonds are usually selected beforehand instead of doing it in the open market
An economist wants to study the effect of income on savings. He collected data on 120 identical twins. Which of the following methods of estimation is the most suitable method, if income is correlated with the unobserved family effect, i.e.a) random effects estimationb) nonlinear least squared estimationc) least Squares Dummy Variable (LSDV) approachd) ordinary least squares estimation
Answer:
The correct option is c) least Squares Dummy Variable (LSDV).
Explanation:
Dummy variables can be used in dynamic panel data models to explain the effect of each individual unit of a cross section that is unobserved but accurately characterizes the model of relation. The individual effect is assumed to be fixed across time in each individual in the least squares dummy variable (LSDV) estimation. If the unobserved effect and the explanatory variables are correlated, the assumption of fixed effects gives more exact estimators than the assumption of random effects.
Therefore, the most suitable method, if income is correlated with the unobserved family effect is least Squares Dummy Variable (LSDV).
This implies that the correct option is c) least Squares Dummy Variable (LSDV).
Using the information below, calculate net income for the period:
Sales revenues for the period $1,323,000
Operating expenses for the period 258,000
Finished Goods Inventory, January 1 55,000
Finished Goods Inventory, December 31 60,000
Cost of goods manufactured
for the period 559,000
A. $774,000.B. $769,000.C. $530,000.D. $535,000.E. $448,000.
Answer:
See explanation
Explanation:
The correct choice is not available : Net Income is $511,000
We determined this as follows :
Income Statement for the ended December 31
Sales $1,323,000
Less Cost of Sales
Opening Finished Goods Inventory $55,000
Add Cost of goods manufactured $559,000
Less Ending Finished Goods Inventory ($60,000) ($554,000)
Gross Profit $769,000
Less Expenses
Operating expenses ($258,000)
Net Income $511,000
how can strategic leaders be successful in an industry like the airlines industry
Answer:
Strategic leaders can help any airline related issue to be solved
Explanation:
Strategic leaders are needed everywhere. An airline company would indeed benefit from a strategic leader and or manager
The following cash transactions occurred during the period.
Interest received in cash $18,000
Payment of wages to employees $35,000
Purchase of a piece of equipment for cash $120,000
Distribution of cash dividend declared last year $25,000
Fill in the statement of cash flows following US GAAP. Use the direct method for calculating cash flow from Operating Activities.
Answer:
-$17,000
Explanation:
The computation of the cash flow from Operating Activities is shown below;
= Interest received in cash - Payment of wages to employees
= $18,000 - $35,000
= -$17,000
Hence, the cash used from operating activities is -$17,000
So the same is considered and relevant
Jiffy Park Corp. has annual sales of $50,736,000, an average inventory level of S15,010,000, and average accounts receivable of $10,010,000. The firm's cost of goods sold is 85% of sales. The company makes all purchases on credit and has always paid on the 30th day. However, it now plans to take full advantage of trade credit and to pay its suppliers on the 40th day. The CFO also believes that sales can be maintained at the existing level but inventory can be lowered by $1,950,000 and accounts receivable by $1,950,000. 7 points)
a. What is Jiffy Park's cash conversion cycle (CCC) prior to the changes proposed'?
b. What is Jiffy Park's CCC after implementing the suggested changes?
c. What is the net change in Jiffy Park's CCC given what you just calculated above?
d. Why is this significant?
Answer:
Jiffy Park Corp.
Cash Conversion Cycle:
a. Prior to proposed changes:
CCC = 169 days
b. After implementing changes:
CCC = 129 days
c. The change in CCC is 40 days
d. It is significant. It is about 24% reduction in the CCC. It is equal to the days that payable are outstanding under the proposed plan.
Explanation:
a) Data and Calculations:
Current annual sales = $50,736,000
Average inventory level = $15,010,000
Average accounts receivable = $10,010,000
Cost of goods sold = 85% of sale s= $43,125,600
Normal Days Payable Outstanding = 30 days
New Plan:
Planned Days Payable Outstanding = 40 days
Annual sales = $50,736,000
Average inventory level = $13,060,000 ($15,010,000 - $1,950,000)
Average accounts receivable = $8,060,000 ($10,010,000 - $1,950,000)
Cash Conversion Cycle:
a. Prior to proposed changes:
Days Inventory Outstanding = $15,010,000/$43,125,600 * 365 = 127 days
Days Receivable OUtstanding = $10,010,000/$50,736,000 * 365 = 72 days
Days Payable Outstanding = 30 days
CCC = 169 (127 + 72 - 30) days
b. After implementing changes:
Days Inventory Outstanding = $13,060,000/$43,125,600 * 365 = 111 days
Days Receivable OUtstanding = $8,060,000/$50,736,000 * 365 = 58 days
Days Payable Outstanding = 30 days
CCC = 129 (111 + 58 - 40) days
c. The change in CCC is 40 days (169 - 129)
d. It is significant. It is about 24% reduction in the CCC. It is equal to the days that payable are outstanding under the proposed plan.
Leo is the most active participant on his company's social networking platform, but his manager has an issue with one aspect of his posts. Which behavior is Leo's manager most likely to ask him to change
Group of answer choices.
A. He never addresses colleagues by name to keep things professional.
B. He always uses a friendly, but direct tone.
C. He often requests that colleagues post work-related data.
D. He spends time on the platform each day.
E. He often reminds colleagues to share their ideas through the platform
Answer:
A. He never addresses colleagues by name to keep things professional.
Explanation:
Operant conditioning can be defined as an associative learning process which involves reinforcing the strength of a behavior.
Behavior modification is a therapeutic process that is focused on changing any undesirable negative behavior in an individual through the use of positive or negative consequence and biofeedback.
Basically, behavior modification is based on operant conditioning principles, through negative or positive reinforcement, undesirable behaviors developed by an individual are mainly replaced with more desirable ones.
In this scenario, a behavior which Leo's manager is most likely to ask him to change is not addressing colleagues by name to keep things professional.
In a corporate or formal setting such as on a company's social network platform, it is very important that group members (employees) address their colleagues by name at all times. This behavior or action, is necessary to keep things professional and show individual interests in your colleagues.
What is the value of a preferred stock that pays a perpetual dividend of $125 at the end of each year when the interest rate is 5 percent?
Answer: $2500
Explanation:
The value of a preferred stock that pays a perpetual dividend of $125 at the end of each year when the interest rate is 5 percent will be calculated by using the formula:
= Cf/i
where,
Cf = Cash flow = $125
i = Interest rate = 5% = 0.05
Therefore, the value of the preferred stock will be:
= Cf/i
= $125/0.05
= $2500
The value of the preferred stock is $2500.
Answer the following questions using the information below: Cannady produces six products. Under their traditional cost system using one cost driver, SR6 costs $168.00 per unit. An analysis of the activities and their costs revealed that three cost drivers would be used under the new ABC system. The new cost of SR6 was determined to be $178.00 per unit. Given this change in the cost ________.
Answer:
Given this change in the cost, the adequacy and quality of the estimated cost drivers and costs used by the system will determine the costing results for SR6 under the new system.
Explanation:
A cost driver can be described as the unit of an activity or any factor that makes the cost of an activity to fluctuate. An estimated cost driver is adequate and of the expected quality when quality or quantity is satisfactory or acceptable.
Therefore, given this change in the cost, the adequacy and quality of the estimated cost drivers and costs used by the system will determine the costing results for SR6 under the new system.
The position in a craft union in which the holder is the chief administrator of the union hiring hall is the
Answer:
e. international union representative
Explanation:
Union representatives played a vital role with respect to supporting the employees for reporting to the union leaders when they are on the place of their peers. It acted as the main liason between the employers & employees as in this they support the employees and guidem them via the challenges that took place during the work
So at the time when the craft union position where the holder be the chief administrator of the union hiring hall so it should be the international union representative
What is LinkedIn lead generation?
Answer:
Lead generation is a central focus for any B2B organization that’s interested in driving consistent and reliable revenue.
Lead generation encompasses all activities relating to the identification and cultivation of potential customers. Companies use a variety of sales and marketing tactics to generate leads (as we’ll cover shortly), but one way or the other, it is essential to have well defined processes in place.
Why LinkedIn is good for Lead Generation?
Best LinkedIn Lead Generation Strategies:
Create an Attractive LinkedIn Profile for Engagement Use Engaging Content Engage and Build RelationshipsYou have $34,977.24 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $240,000. You expect to earn 14% annually on the account. How many years will it take to reach your goal
Answer:
13.82 years
Explanation:
The computation of the number of years taken for reaching the goal is as follows:
Given that
PV is $34,977.24
PMT is $4,000
FV is $240,000
RATE is 14%
The formula is shown below:
=NPER(RATE,PMT,PV,-FV,TYPE)
AFter applying the above formula, the number of years is 13.82 years
Why hasn't globalization benefited the majority of the world's underdeveloped countries?
A. underdeveloped countries don't have the natural resources needed to fuel high levels of industrial production
B. underdeveloped countries use protectionist policies to isolate themselves from international trade
C. underdeveloped countries rely on exporting agricultural goods to developed countries
D. underdeveloped countries don't have the productive capacities necessary to take advantage of increasing national trade
The answer is D. Under developed countries don’t have the productive capacities necessary to take advantage of increasing national trade
