In Freda's Florist's 2021 income statement, the separately stated income tax expense would be $65,250, and the total income tax expense would also be $65,250.
To calculate the separately stated income tax expense, we need to multiply the operating income by the income tax rate. Therefore, $263,000 * 25% = $65,750. This represents the income tax expense attributable to the operating income. Since the income on discontinued operations is already stated separately, it has its own tax implications. The income tax expense related to the discontinued operations would be $58,000 * 25% = $14,500.
To calculate the total income tax expense, we sum up the separately stated income tax expense for operating income and discontinued operations. $65,750 + $14,500 = $80,250. Therefore, the total income tax expense for Freda's Florist's 2021 income statement would be $80,250. It's important to note that the income tax expense is calculated based on the reported before-tax income statement items and the given income tax rate of 25%.
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A production department's output for the most recent month consisted of 19,500 units completed and transferred to the next stage of production and 19,500 units in ending Work in Process inventory. The units in ending Work in Process inventory were 60% complete with respect to both direct materials and conversion costs. There were 2,900 units in beginning Work in Process inventory, and they were 80% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method. 00:44:45 Ask Multiple Choice O O 20,080 units. 19.500 units. 31,780 units. units. 31,200 units.
Number of units completed and transferred to the conversion cost next stage of production= 19500Number of units in ending Work in Process inventory= 19500Units in ending Work in Process inventory were 60% complete with respect to both direct materials and conversion costs.
Number of units in beginning Work in Process inventory = 2900Units in beginning Work in Process inventory were 80% complete with respect to both direct materials and conversion costs. The equivalent units of production for the month, assuming is 31,200 units. The formula for calculating the equivalent units of production for the month, assuming the company uses the weighted average method is:EUP = Units completed and transferred to the next stage of production + Units in ending work in process (WIP) x Percentage completion Therefore,EUP
= 19500 + 19500 x 0.6
= 19500 + 11700= 31200Therefore, the equivalent units of production for the month, assuming the company uses the weighted average method is 31,200 units.
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Earleton Manufacturing Company has $2 billion in sales and $471,500,000 in fixed assets. Currently, the company's fixed assets are operating at 85% of capacity.
What level of sales could Earleton have obtained if it had been operating at full capacity? Write out your answers completely. For example, 13 million should be entered as 13,000,000. Round your answer to the nearest dollar.
$
What is Earleton's target fixed assets/sales ratio? Do not round intermediate calculations. Round your answer to two decimal places.
%
If Earleton's sales increase 20%, how large of an increase in fixed assets will the company need to meet its target fixed assets/sales ratio? Write out your answer completely. Do not round intermediate calculations. Round your answer to the nearest dollar.
$
The Target fixed assets/sales ratio of Earleton's is 23.58% . The required increase in fixed assets is $242,454,000.
If Earleton Manufacturing Company is currently operating at 85% of capacity and has $2 billion in sales, to determine the level of sales it could have obtained if operating at full capacity, we can use the formula:
Full capacity sales = Current sales / Capacity utilization
Full capacity sales = $2,000,000,000 / 0.85 = $2,352,941,176 (rounded to the nearest dollar).
To calculate Earleton's target fixed assets/sales ratio, we divide the fixed assets by the sales and multiply by 100:
Target fixed assets/sales ratio = (Fixed assets / Sales) * 100
Target fixed assets/sales ratio = ($471,500,000 / $2,000,000,000) * 100 = 23.58% (rounded to two decimal places).
If Earleton's sales increase by 20%, we need to calculate the increase in fixed assets required to maintain the target fixed assets/sales ratio. First, we determine the new sales level:
New sales = Current sales + (Current sales * Sales increase)
New sales = $2,000,000,000 + ($2,000,000,000 * 0.20) = $2,400,000,000
Then, we calculate the required increase in fixed assets:
Required increase in fixed assets = (New sales * Target fixed assets/sales ratio) - Current fixed assets
Required increase in fixed assets = ($2,400,000,000 * 0.2358) - $471,500,000 = $242,454,000 (rounded to the nearest dollar).
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To address the eurozone crisis, the European Central Bank (ECB) adopted a negative interest rate policy in 2014. The ECB lowered its deposit rate to -0.1% that year to hold off deflation and move the economic bloc out of a prolonged recession. Today, the ECB deposit rate is - 0.5%, the lowest on record. In theory, negative rates would boost the economy by encouraging consumers and banks to take more risks through borrowing and lending money. Using the IS-LM framework, explain why traditional monetary policy fails in the presence of zero lower bounds, and how the negative interest rate policy may help the ECB to bring the economy out of recession. [20 marks]
MUST USE IS-LM MODEL TO EXPLAIN
The European Central Bank (ECB) adopted a negative interest rate policy to address the eurozone crisis. The ECB lowered its deposit rate to -0.1% that year to prevent deflation and bring the economic bloc out of a long-term recession.
In theory, negative interest rates would boost the economy by encouraging consumers and banks to take more risks through borrowing and lending money. Traditional monetary policy fails in the presence of zero lower bounds as the interest rates can't go lower. As a result, the central bank is unable to stimulate borrowing and lending in the economy.
When interest rates are already near zero, the effectiveness of monetary policy is severely restricted as it can no longer boost investment and consumption demand through interest rate cuts. Hence, conventional monetary policy becomes ineffective when interest rates hit zero and even quantitative easing (QE) has only limited effects. In this case, the negative interest rate policy may help the ECB bring the economy out of recession by lowering borrowing costs and increasing the availability of credit, thereby increasing investment and consumption.
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Peyton Manufacturing is trying to decide between two different conveyor belt systems. System A costs $280,000, has a four-year life, and requires $85,000 in pretax annual operating costs. System B costs $396,000, has a six-year life, and requires $79,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. Suppose the company always needs a conveyor belt system; when one wears out, it must be replaced. Assume the tax rate is 25 percent and the discount rate is 9 percent. Calculate the EAC for both conveyor belt systems. (Your answers should be negative values and indicated by minus signs. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
The EAC is the annual cost that would be equivalent to the costs incurred over the life of the system. To calculate the EAC (Equivalent Annual Cost) for each conveyor belt system, we need to determine the annual cash flows for each system and then calculate the present value of those cash flows.
For System A:
Initial Cost: -$280,000
Annual Operating Costs: -$85,000
Annual Cash Flow: -$85,000 (Operating Costs)
Depreciation Expense: -$280,000 / 4 = -$70,000
To calculate the tax savings from depreciation, we multiply the depreciation expense by the tax rate:
Tax Savings: $70,000 * 0.25 = -$17,500
Net Cash Flow (Year 0): -$280,000
Net Cash Flow (Years 1-4): -$85,000 - $17,500 = -$102,500
For System B:
Initial Cost: -$396,000
Annual Operating Costs: -$79,000
Annual Cash Flow: -$79,000 (Operating Costs)
Depreciation Expense: -$396,000 / 6 = -$66,000
Tax Savings: $66,000 * 0.25 = -$16,500
Net Cash Flow (Year 0): -$396,000
Net Cash Flow (Years 1-6): -$79,000 - $16,500 = -$95,500
Next, we calculate the present value of the net cash flows for each system using the discount rate of 9%.
For System A:
EAC_A = PV of Net Cash Flows / PVIFA(9%, 4)
EAC_A = [(-$280,000) + (-$102,500) / 0.09] / [1 - (1 / (1 + 0.09)^4)]
EAC_A = (-$382,500 / 0.3053) = -$1,252,955.14
For System B:
EAC_B = PV of Net Cash Flows / PVIFA(9%, 6)
EAC_B = [(-$396,000) + (-$95,500) / 0.09] / [1 - (1 / (1 + 0.09)^6)]
EAC_B = (-$491,500 / 0.4024) = -$1,221,512.40
Therefore, the EAC for System A is -$1,252,955.14 and for System B is -$1,221,512.40.
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If the following times are estimated for an activity of the project, calculate the mean and the variance using PERT analysis.
a = 5
b = 13
m = 9
PERT (Program Evaluation and Review Technique) analysis is an approach used in project management to estimate project completion times based on three time estimates: optimistic (O), most likely (M), and pessimistic (P).
The mean and variance are used to determine the probability distribution for the completion time of a particular activity given these estimates.If the optimistic time (b) is 13 and the most likely time (m) is 9, we can calculate the pessimistic time (p) using the formula: p = (4m - b)/3p = (4 * 9 - 13)/3p = 7Therefore, the three time estimates for this activity are:b = 13m = 9p = 7The mean of these estimates can be calculated using the formula: mean = (b + 4m + p)/6mean = (13 + 4 * 9 + 7)/6mean = 10The variance can be calculated using the formula: variance = ((b - m)/6)^2 + ((p - m)/6)^2 + ((p - b)/6)^2variance = ((13 - 9)/6)^2 + ((7 - 9)/6)^2 + ((7 - 13)/6)^2variance = 1.67Therefore, the mean completion time for this activity is 10, and the variance is 1.67. These values can be used to estimate the probability distribution for the completion time of the activity and to make decisions about the project schedule and resources needed.
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.Select all that apply
What are steps in the problem-solution organizational method of organizing persuasive speeches on questions of policy?
A. Explaining the root causes of the problem
B. Suggesting a practical plan
C. Demonstrating a need
D. Explaining the importance of the problem
The problem-solution organizational method of organizing persuasive speeches on questions of policy involves a few critical steps.
Below are some steps that one can use in the problem-solution organizational method of organizing persuasive speeches on questions of policy: Demonstrating a need: The first step is demonstrating a need. One should present a clear and compelling case for why the problem needs to be addressed, why it is critical, and how it affects the audience. Explaining the root causes of the problem: The second step is explaining the root causes of the problem. One should provide a thorough analysis of the problem's root causes, making sure to explain how and why it exists. Suggesting a practical plan: The third step is suggesting a practical plan. One should offer a detailed and comprehensive solution to the problem, explaining why it is effective and practical. Explaining the importance of the problem: The fourth and final step is explaining the importance of the problem. One should remind the audience of the critical nature of the problem, why it needs to be solved, and what will happen if it is not addressed. These are the critical steps in the problem-solution organizational method of organizing persuasive speeches on questions of policy.
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