Answer:
The capital structure weight of the preferred stock is 0.019
Explanation:
In order to calculate the capital structure weight of the preferred stock we would have to calculate first the total value of all the particulars as follows:
Total value particulars=value common stockv+value preferred stock+value bonds outstanding
value common stock=11,100*$45=$499,500
value preferred stock=260*$87=$22,620
value bonds outstanding=610*($1,000*106.5%)=$649,650
Total value particulars=$499,500+$22,620+$649,650
Total value particulars=$1,171,770
Therefore, the capital structure weight of the preferred stock=value preferred stock/Total value particulars
capital structure weight of the preferred stock=$22,620/$1,171,770
capital structure weight of the preferred stock=0.019
The capital structure weight of the preferred stock is 0.019
Stahlmaere Inc. is a start-up company that manufactures simple machines. It is interested in analyzing the profit from a new machine using Monte Carlo simulation. It wants to investigate the profit resulting from a selling price of $150 per unit. The setup and advertising costs are known to total $75,000. They assume that the demand for the product is normally distributed with a mean of 1500 units and a standard deviation of 100 units. The company estimates that the raw material cost per unit is uniformly distributed between $5 and $6. The labor cost per unit is assumed to follow a discrete uniform distribution from $12 to $16. A junior analyst has devised the following Excel spreadsheet that simulates a single scenario using the information given above: Selling price per unit = 150 Set up and advertising cost = 75000 Demand = =NORM.INV(RAND(),1500,100) Raw material cost per unit = =5+(6-5)*RAND() Labor cost per unit = =RANDBETWEEN(12,16) Profit = =(B1*B4)-B2-((B5+B6)*B4) Copy-and-paste the above information into cells A1:B8 of an Excel spreadsheet. Then use a data table to repeat the simulation 1000 times. From the simulation results, estimate Stahlmaere's expected mean profit. Understanding that simulation is random in nature and that your estimate is unlikely to match any of the answer choices exactly, choose the answer choice that is closest to the estimated mean profit.
A. $180,000
B. $50,000
C. $150,000
D. $90,000
E. $120,000
Answer:
$ 120,000
Explanation:
Formulas:
Cell Formula
B4 =NORMINV(RAND(),1500,100)
B5 =5+(6-5)*RAND()
B6 =RANDBETWEEN(12,16)
B8 =(B1*B4)-B2-((B5+B6)*B4)
B12 =AVERAGE(F3:F1002)
Enter formula = B8 in cell E2
and =RANDBETWEEN(12,16) in E3 copy down to E1002 (this represents labor cost)
To create the data table, select range E2:F1002
click Data tab > What-If Analysis in Data Tools group > Data Table > In the resulting dialogue box, enter B6 in the Column Input cell, and B1 in the Row Input cell.
Estimated mean profit = $ 121,445 this is closest to $ 120,000
THE ANSWER IS $ 120,000
During June, Zinc Company produced 10,000 chainsaw blades. The standard quantity of material allowed per unit was 2 pounds of steel per blade at a standard cost of $10 per pound. Zinc determined that it had a favorable materials usage variance of $1,600 for June. Calculate the actual quantity of materials used by Zinc Company in June. Group of answer choices 19,840 pounds 19,660 pounds 19,680 pounds 19,860 pounds
Answer:
19,840 pounds
Explanation:
The computation of actual quantity of materials is shown below:-
Materials usage variance = (Selling quantity - Actual quantity) × Standard Price
= (10,000 × 2 - Actual quantity) × $10 = $1,600
= (20,000 - Actual quantity) × $10 = $1,600
= 20,000 - Actual quantity = $160
Actual quantity = 20,000 - $160
= $19,840 pounds
Therefore for computing the actual quantity of materials we simply applied the above formula.
During April, the production department of a process operations system completed and transferred to finished goods 18,000 units that were in process at the beginning of April and 90,000 units that were started and completed in April. April's beginning inventory units were 100% complete with respect to materials and 40% complete with respect to labor. At the end of April, 30,000 additional units were in process in the production department and were 100% complete with respect to materials and 60% complete with respect to labor. The beginning inventory included materials cost of $107,000 and the production department incurred direct materials cost of $329,000 during the month. Compute the direct materials cost per equivalent unit for the department using the weighted-average method
Answer:
Cost per equivalent unit of materials = $3.16
Explanation:
Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required is done in the period under consideration. So there is no separation of the completed units into opening inventory and fully worked.
Cost per equivalent unit = cost / total equivalent units
Total units completed and transferred out= 18,000 + 90000= 108,000
Items Unit Equivalent unit
Completed units 108,000 100% × 108,000 = 108,000
Closing inventory 30,000 100% × 30,000 = 30,000
Total equivalent unit of material 138,000
Cost per equivalent unit = Total cost/Total equivalent unit
= (107,000 + 329,000) /138,000 units
= $3.16
On December 31, Westworld Inc. has the following equity accounts and balances: Retained Earnings, $50,500; Common Stock, $2,100; Treasury Stock, $3,100; Paid-In Capital in Excess of Par Value, Common Stock, $40,100; Preferred Stock, $8,100; and Paid-In Capital in Excess of Par Value, Preferred Stock, $4,100. Prepare the stockholders’ equity section of Westworld’s balance sheet. (Negative amount(s) should be indicated by a minus sign.)
Answer:
$101,800
Explanation:
Westworld Inc.
Stockholder's equity section
Paid in the capital:
Particulars Amount Amount
Common stock $2,100
Additional paid-in capital in excess of par value-Common stock $40,100
Total$42,200
Preferred Stock $8,100
Additional paid-in capital in excess of par value-Preferred Stock $4,100
Total $12,200
Total Paid-in capital $54,400
($42,200+$12,200)
Retained earnings $50,500
Total Paid-in capital and Retained earnings $104,900
($54,400+$50,500)
Less: Treasury stock $-3,100
Total Stockholder's equity $101,800
The value of the total stockholder's equity will be $101800.
The stockholders’ equity section of Westworld’s balance sheet will be calculated thus:
Common stock = $2100Add: Additional paid in capital = $40100Add: Preferred stock = $8100Add: Additional paid in capital for preferred stock = $4100Add: Retained earnings = $50500Less: Treasury stock = $3100Total stockholders equity = $101800Read related link on:
https://brainly.com/question/16447368
Prepare adjusting entries for the following transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) 1. Depreciation on equipment is $1,340 for the accounting period. 2. Interest owed on a loan but not paid or recorded is $275. 3. There was no beginning balance of supplies and $550 of office supplies were purchased during the period. At the end of the period $100 of supplies were on hand. 4. Prepaid rent had a $1,000 normal balance prior to adjustment. By year end $700 had expired. 5. Accrued salaries at the end of the period amounted to $900.
Answer:
Please see the adjusting entries below.
Explanation:
1. Depreciation on equipment
Debit Depreciation expense $1,340
Credit Accumulated depreciation $1,340
(To record depreciation expense for the period)
2. Interest on loans
Debit Interest expense $275
Credit Interest payable $275
(To record interest on loans)
3. Purchase of office supplies
Debit Office supplies $550
Credit Cash $550
(To record purchase of office supplies)
4. Prepaid rent
Debit Amortization expense $700
Credit Prepayment $700
(To record expired prepayment)
5. Accrued salaries
Debit Salaries expense $900
Credit Accrued salary $900
(To record accrued salaries)
In 2020, Marigold Corp., issued for $102 per share, 86000 shares of $100 par value convertible preferred stock. One share of preferred stock can be converted into three shares of Marigold's $25 par value common stock at the option of the preferred stockholder. In August 2021, all of the preferred stock was converted into common stock. The market value of the common stock at the date of the conversion was $30 per share. What total amount should be credited to additional paid-in capital from common stock as a result of the conversion of the preferred stock into common stock?
Answer:
$2322,000
Explanation:
The computation of amount credited to additional paid-in capital is shown below:-
Amount credited to additional paid-in capital = Issued per share × Number of shares) - (Number if shares × Preferred stock shares converted into three shares × Par value of common stock
= ($102 × 86,000) - (86,000 × 3 × $25)
= $8,772,000 - $6,450,000
= $2322,000
So, for computing the amount credited to additional paid-in capital we simply applied the above formula.
On January 2, 2020, Concord Corporation replaced its boiler with a more efficient one. The following information was available on that date: Purchase price of new boiler $140500 Carrying amount of old boiler 8500 Fair value of old boiler 3200 Installation cost of new boiler 21600 The old boiler was sold for $3200. What amount should Concord capitalize as the cost of the new boiler
Answer:
The amount that Concord should capitalize as the cost of the new boiler is $162,100
Explanation:
Solution
Recall that:
The price of purchasing a new boiler = $140500
The amount of old boiler = 8500
The cost of installation of new boiler = $21600
Old boiler sold for = $3200
Now,
The Cost of New Boiler = Purchase Price of new boiler + Installation cost of new boiler
= $140500 + 21600
= $162,100
Never Forget Bakery purchased a lot in Oil City six years ago at a cost of $278,000. Today, that lot has a market value of $320,000. At the time of the purchase, the company spent $6,000 to level the lot and another $8,000 to install storm drains. The company now wants to build a new facility on that site. The building cost is estimated at $1.03 million. What amount should be used as the initial cash flow for this project?
Answer:
The amount that should be used as the initial cash flow for this project is $1,350,000
Explanation:
The amount to be used as the initial cash flow for the project comprises of estimated building cost of $1.03 million and the market worth of the lot now.
The cost six years ago of $278,000,the cost of leveling as well as the cost of installing the storm drains were long ago time and are not relevant now.
In a nutshell the cost of the new project is $1,350,000($1,030,000+$320,0000)
You pay $20,800 to the Laramie Fund which has a NAV of $18.00 per share at the beginning of the year. The fund deducted a front-end load of 3.00%. The securities in the fund increased in value by 12% during the year. The fund's expense ratio is 1.50% and is deducted from year end asset values. What is your rate of return on the fund if you sell your shares at the end of the year
Answer:
6.92%
Explanation:
Beginning investment fund is $20,800.
Now, fund available= Beginning fund(1-front end load)
=20,800(1-0.03)=$20176
Now, the number of shares that can be brought with the available fund
[tex}\text{Number of shares}=\frac{\text{fund available}}{NAV_{beginning}}[/tex]
[tex]=\frac{20176}{18}[/tex]
=1120
Now calculating closing NAV
NAV(closing)=NAV(beginning)=(1+increased%)
=$18(1+12%)=18×1.12
=$20.16
Calculate year end asset value
Year end asset value =NAV(closing)×No. of shares
=$20.16×1120=$22579.2
Value of investment after deducting the expense ratio
Closing investment value = Year end asset value×(1-expense ratio)
=$22579.2×(1-1.5%)
=$22240.512
Now,
Return on the fund =[(closing investment value)-(Beginning investment fund)]÷Beginning investment fund
=(22240.512-20800)÷20800
=0.0692
or, 6.92%
Blossom Co. leased machinery from Young, Inc. on January 1, 2020. The lease term was for 8 years, with equal annual rental payments of $5,800 at the beginning of each year. In addition, the lease provides an option to purchase the machinery at the end of the lease term for $1,500, which Blossom is reasonably certain it will exercise as it believes the fair value of the machinery will be at least $5,000. The machinery has a useful life of 10 years and a fair value of $43,000. The implicit rate of the lease is not known to Blossom. Blossom’s incremental borrowing rate is 9%. Prepare Blossom’s 2020 journal entries
Answer and Explanation:
The Journal entry is shown below:-
1. Right of use Dr, $35,743.93
To lease liability $35,743.93
(Being lease assets and lease liability is recorded)
Working note as attached using spreadsheet
Here we debited the right of use as it increased the assets and we credited the lease liability as it also increased the liability
2. Lease liability Dr, $5,800
To Cash $5,800
(Being payment on lease liability is recorded)
Here, we debited the lease liability as it decrease the liability and we credited the cash as it decreased the asset
3. Interest expenses Dr, $2,694.95
To Lease liability $2,694.95
(Being interest expenses is recorded)
Here we debited the interest expense as it increased the expenses and we credited the leased liability as it increased the liability
4. Amortization expenses Dr, $3,574.39 ($35,743.93 ÷ 10 )
To Right of use $3,574.39
(Being amortization expenses is recorded)
Here we debited the amortization expenses as it increase the expenses and we credited the right of use as it reduced the assets
Working Note
Interest expenses = (Lease liability - First lease payment) × Incremental borrowing rate
= ($35,743.93 - $5,800) × 9%
= $2,694.95
g Willow Creek Company purchased and installed carpet in its new general offices on April 30 for a total cost of $18,000. The carpet is estimated to have a 15-year useful life and no residual value. a. Prepare the journal entry necessary for recording the purchase of the new carpet. If an amount box does not require an entry, leave it blank. Apr. 30 b. Record the December 31 adjusting entry for the partial-year depreciation expense for the carpet, assuming that Willow Creek uses the straight-line method. Do not round intermediate calculations. If an amount box does not require an entry, leave it blank. Dec. 31
Answer:
a. The journal entry for recording the purchase of the new carpet would be as follows:
April 30 Debit Credit
Carpet $18,000
Cash $18,000
b. The journal entry would be as follows:
December 31 Debit Credit
Depreciation expense - carpet $800
Accumulated depreciation- carpet $800
Explanation:
a. The journal entry for recording the purchase of the new carpet would be as follows:
April 30 Debit Credit
Carpet $18,000
Cash $18,000
b. According to the given data, the carpet is estimated to have a 15-year useful life and no residual value, therefore the December 31 adjusting entry for the partial-year depreciation expense for the carpet would be to debit Depreciation expense - carpet for $800 and to credit Accumulated depreciation- carpet for $800.
The journal entry would be as follows:
December 31 Debit Credit
Depreciation expense - carpet $800
Accumulated depreciation- carpet $800
On November 1, 2018, Green Valley Farm entered into a contract to buy a $150,000 harvester from John Deere. The contract required Green Valley Farm to pay $150,000 in advance on November 1, 2018. The harvester (cost of $110,000) was delivered on November 30, 2018. The journal entry to record the contract on November 1, 2018 includes a Group of answer choices a) credit to Accounts Receivable for $150,000 b) credit to Sales Revenue for $150,000. c) credit to Unearned Sales Revenue for $150,000. d) debit to Unearned Sales Revenue for $150,000.
Answer:
d) debit to Unearned Sales Revenue for $150,000
Explanation:
Green Valley Farm Journal entry
Dr Unearned Sales Revenue 150,000
Cr Sales Revenue150,000
Dr Cost of Goods Sold 110,000
Cr Inventory110,000
Therefore the journal entry to record the contract on November 1, 2018 is debit to Unearned Sales Revenue for $150,000
Builder Products, Inc., uses the weighted-average method in its process costing system. It manufactures a caulking compound that goes through three processing stages prior to completion. Information on work in the first department, Cooking, is given below for May: Production data: Pounds in process, May 1; materials 100% complete;conversion 90% complete 76,000Pounds started into production during May 410,000Pounds completed and transferred out ?Pounds in process, May 31; materials 60% complete;conversion 40% complete 36,000Cost data: Work in process inventory, May 1: Materials cost$117,900Conversion cost$53,600Cost added during May: Materials cost$613,080Conversion cost$294,700 Required:1. Compute the equivalent units of production for materials and conversion for May.2. Compute the cost per equivalent unit for materials and conversion for May.3. Compute the cost of ending work in process inventory for materials, conversion, and in total for May.4. Compute the cost of units transferred out to the next department for materials, conversion, and in total for May.5. Prepare a cost reconciliation report for May.
Answer:
1.Total Equivalent Units Materials 471,600 Conversion 464,400
2. Cost Per Equivalent Unit Materials $ 1.33 Conversion $ 0.75
3. Cost of Ending Work In Process $ 39528
4. Cost Of Units Transferred Out = $ 936,000
5. Cost Materials $ 627 228 and Conversion $348,300
Explanation:
Builder Products, Inc.,
Weighted-Average Method
1. Equivalent Units
Particulars Units % of Completion Equivalent Units
Materials Conversion Materials Conversion
Transferred Out 450000 100 100 450,000 450,000
Ending WIP 36000 60 40 21,600 14,400
Total Equivalent Units 471,600 464,400
Transferred Out units are calculated by adding Opening Inventory and production started and subtracting ending inventory units.
Transferred Out units = Opening Inventory+ production started -ending inventory units
Transferred Out units =76,000 + 410,00 - 36000= 450000 units.
2. Cost Per Equivalent Units
Materials Conversion
Cost Of Opening Inventory 117,900 53600
Cost Added 613,080 294,700
Total Costs 624,980 348,300
Equivalent Units 471,600 464,400
Cost per Equivalent Unit 624980/471600 348300/464400
$ 1.33 $ 0.75
3. Cost of Ending Work In Process $ 39528
Materials = 21600 * $ 1.33= $ 28728
Conversion = 14400 * $ 0.75= $10800
We multiply the equivalent number of units with the cost per unit to find the cost.
4. Cost Of Units Transferred Out = $ 936,000
Materials = 450 000 * $ 1.33= $ 598,500
Conversion = 450000 * $ 0.75 = $ 337,500
5. A Cost Reconciliation Report
Materials Conversion
Ending WIP $ 28728 $10800
Transferred Out $ 598,500 $ 337,500
Total 627 228** 348,300
These calculated costs reconcile with the costs given in the above data.
Materials Conversion
Cost Of Opening Inventory 117,900 53600
Cost Added 613,080 294,700
Total Costs 624,980** 348,300
The difference is in the cost of materials which is actually 624,980** and we found it out to be 627 228** . This is because we rounded the Cost per Equivalent Unit of material from $ 1.325 to $1.33
If we multiply 1.325 * 471,600 we get $ 624870 which is almost the same.
Bonnie Jo purchased a used camera (five-year property) for use in her sole proprietorship. The basis of the camera was $3,000. Bonnie Jo used the camera in her business 60 percent of the time and used it for personal purposes the rest of the time during the first year. Calculate Bonnie Jo's depreciation deduction during the first year, assuming the sole proprietorship had a loss during the year. (Bonnie did not place the property in service in the last quarter.)
Answer:
$360
Explanation:
The computation of the depreciation deduction during the first year is shown below:
= Basis of the camera × given percentage × weightage
= $3,000 × 60% × 20%
= $360
Since the 60% is used for business and 40% used for personal
And there is a recovery period of assets of 5 years so half year convention period applies
Due to historical differences, countries often differ in how quickly a change in actual inflation is incorporated into a change in expected inflation. In a country such as Japan, which has had very little inflation in recent memory, it will take longer for a change in the actual inflation rate to be reflected in a corresponding change in the expected inflation rate. In contrast, in a country such as Zimbabwe, which has recently had very high inflation, a change in the actual inflation rate will immediately be reflected in a corresponding change in the expected inflation rate.
What is the slope of Japan’s short-run Phillips curve?
a. Steep downward slopeb. Flat downward slopec. Steep upward sloped. Flat upward slopee. Verticalf. Horizontal
Answer:
Due to historical differences, countries often differ in how quickly a change in actual inflation is incorporated into a change in expected inflation. In a country such as Japan, which has had very little inflation in recent memory, it will take longer for a change in the actual inflation rate to be reflected in a corresponding change in the expected inflation rate. In contrast, in a country such as Zimbabwe, which has recently had very high inflation, a change in the actual inflation rate will immediately be reflected in a corresponding change in the expected inflation rate.
What is the slope of Japan’s short-run Phillips curve?
Option B is the correct answer.
Explanation:
The slope of Japan’s short-run Phillips curve will be a flat downward slope because "it will take longer for a change in the actual inflation rate to be reflected in a corresponding change in the expected inflation rate".
Therefore, option B is the correct answer.
On January 1, 2021, Tonge Industries had outstanding 480,000 common shares ($1 par) that originally sold for $30 per share, and 6,000 shares of 10% cumulative preferred stock ($100 par), convertible into 60,000 common shares.
On October 1, 2021, Tonge sold and issued an additional 16,000 shares of common stock at $37. At December 31, 2021, there were 22,000 incentive stock options outstanding, issued in 2020, and exercisable after one year for 22,000 shares of common stock at an exercise price of $34. The market price of the common stock at year-end was $52. During the year, the price of the common shares had averaged $44.
Net income was $940,000. The tax rate for the year was 40%.
Required:
Compute basic and diluted EPS for the year ended December 31, 2021. (Enter your answers in thousands.)
Answer:
842,000 shares
Explanation:
Please the solution to the given problem in the file attached below
Answer:
Basic EPS = $1.82
Diluted EPS = $1.72
Explanation:
The picture attached herewith shows the calculation to the problem and it is so explanatory.
Suppose Mr. Lane just bought a share of BlueWind Co., a renewable energy startup. BlueWind promises to pay Mr. Lane $18 in dividends for one year and then the firm will shut down. Suppose that the liquidation value of the share is $3, and the rate of time preference is 5%. Then, according to the single-period dividend discount model, the present value of the cash payment received by Mr. Lane in one year would be
Answer:
The present value of the cash payment is $20
Explanation:
The present value of cash payment receivable by Mr Lane in one year's time is the today's equivalent amount of the dividend of $18 as well as the liquidation value of $3.
The present value is the total cash inflows multiplied by the discount factor
discount factor=1/(1+r)^n
where is the rate of time preference of 5%'
n is 1 i.e in one year's time
total cash inflows=$18+$3=$21
discount factor =1/(1+5%)^1=0.95238
present value of cash payment=0.95238*$21=$20
The president of Ravens Inc. attended a seminar about the contribution margin model and returned to her company full of enthusiasm about it. She requested that last year’s traditional model income statement be revised, and she received the following report: Division Total Company A B C Sales $ 484,000 $ 188,000 $ 128,000 $ 168,000 Variable expenses 268,000 112,000 66,000 90,000 Contribution margin $ 216,000 $ 76,000 $ 62,000 $ 78,000 Fixed expenses 172,000 54,000 68,000 50,000 Net income (loss) $ 44,000 $ 22,000 $ (6,000 ) $ 28,000 The president was told that the fixed expenses of $172,000 included $94,500 that had been split evenly between divisions because they were general corporate expenses. After looking at the statement, the president exclaimed, "I knew it! Division B is a drag on the whole company. Close it down!"
Evaluate the President's remark.
Answer and Explanation:
a. The president remark in case of the allocated fixed expenses should be ignored the misleading result as it is seen that the division B has suffered a loss of $6,000 due to which the president exclaimed "I knew it!.
Moreover the president ignored the given information i.e $172,000 included $94,500 that had been split evenly between divisions as they are classified as a general corporate expenses
So if it is split evenly the general corporate expenses for division B is $31,500 which is come from by dividing the $94,500 from 3 divisions
And if we do not allocated the expenses so all divisions would come in profit
Moates Corporation has provided the following data concerning an investment project that it is considering:
Initial investment $ 250,000
Annual cash flow $ 119,000 per year
Expected life of the project 4 years
Discount rate 8 %
Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.
The net present value of the project is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Multiple Choice
$250,000
$144,128
$(131,000)
$(144,128)
Answer:
$144,128
Explanation:
The net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator:
Cash flow in year 0 = $-250,000
Cash flow each year from year 1 to 4 = $119,000
I = 8%
NPV = $144,143
To find the NPV using a financial calacutor:
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
I hope my answer helps you
Which of the following is a true statement?
a. Meals, lodging, and incidental expenditures are deductible if the taxpayer is away from home overnight while traveling.
b. Meals are deductible for an employee who is forced to work during the lunch hour.
c. When a taxpayer travels solely for business purposes, only half of the costs of travel are deductible.
d. If travel has both business and personal aspects, the cost of transportation is always deductible but the deductibility of lodging depends upon whether business is conducted that day.
e. None of the choices are true because business travel is not deductible.
Waterways puts much emphasis on cash flow when it plans for capital investments. The company chose its discount rate of 8% based on the rate of return it must pay its owners and creditors. Using that rate, Waterways then uses different methods to determine the best decisions for making capital outlays.
In 2017 Waterways is considering buying five new backhoes to replace the backhoes it now has. The new backhoes are faster, cost less to run, provide for more accurate trench digging, have comfort features for the operators, and have 1-year maintenance agreements to go with them. The old backhoes are working just fine, but they do require considerable maintenance. The backhoe operators are very familiar with the old backhoes and would need to learn some new skills to use the new backhoes.
The following information is available to use in deciding whether to purchase the new backhoes.
Old Backhoes New Backhoes
Purchase cost when new $90,000 $200,000
Salvage value now $42,000
Investment in major overhaul needed in next year $55,000
Salvage value in 8 years $15,000 $90,000
Remaining life 8 years 8 years
Net cash flow generated each year $30,425 $43,900
Required:
1. Evaluate in the following ways whether to purchase the new equipment or overhaul the old equipment. (Hint: For the old machine, the initial investment is the cost of the overhaul. For the new machine, subtract the salvage value of the old machine to determine the initial cost of the investment.)
a. Using the net present value method for buying new or keeping the old
b. Using the payback method for each choice. (Hint: For the old machine, evaluate the payback of an overhaul.)
c. Comparing the profitability index for each choice.
d. Calculate the internal rate of return for the new and old blackhoes.
e. Comparing the internal rate of return for each choice to the required 8% discount rate.
Answer:
Explanation:
Base on the scenario been described in the question,Hey, since there are multiple sub-parts posted, we will answer first three sub-parts. If you want any specific sub-part to be answered then please submit that sub-part only or specify the question number in your message.
2
Compute the net present value to make decision for buying the new Backhoes or keeping the old:
We can fine the calculations in the file attached below
Barbara's Bakery purchased three new 7-year assets during the current year. She chose NOT to use Section 179 immediate expensing or take bonus depreciation. The furnishings were purchased for $15,000 in April, the equipment for $6,000 in July, and the appliances for $40,000 in November. What amount of depreciation expense is allowable in the current year
Answer:
Depreciation in Current year is $14,939
Explanation:
Answer:
I think it is 4748. If it asks second year, it will be 16072.
Explanation:
Furnishings...in April, second quarter:
15,000x17.85%=2677.5
Equipment...in July, third quarter:
6,000x10.71%=642.6
Appliances...in November, fourth quarter
40,000x3.57%=1428
Total: 2677.5+642.6+1428=4748
Ratios are generally calculated from historical data. Of what use are they in assessing
the firm’s future financial condition?
I would say by the firm calculating their reports from before it usually shows where the company should stand for tears to come
Explanation:
Okun's law states that
a. a change in the output gap occurs with a change in the rate of unemployment that is smaller in magnitude and in the opposite direction.
b. a change in the output gap occurs with a change in the rate of unemployment that is larger in magnitude and in the opposite direction.
c. inflation causes a decrease in the value of money held by the public.
d. the government may temporarily suspend citizens' rights during periods of hyperinflation in an attempt to maintain security and stability.
Answer:
C, I think is the answer.
Explanation:
The Nandina Corporation was formed and began operations on July 1, 2018, and incurred the following expenses during the year: State fees for incorporation $800 Legal and accounting fees incident to organization 1,500 Legal fees for the issuance of stock 600 Temporary directors’ fees 1,000 If the corporation chooses not to expense but rather amortizes organizational costs over 180 months, what is the amount of its amortization expense for 2018?
Answer:
$110.00
Explanation:
Nandina Corporation
The amount of amortization expenses for 2018
State fees for incorporation $800
Legal and accounting fees incident to organization 1,500
Temporary directors’ fees 1,000
Total $3,300
Hence:
$3,300/180 months x 6 months
= $110.00
Therefore the amount of its amortization expense for 2018 will be $110.00
Assume the economy of country C produces hotdogs and buns in the following quantities and prices in 2016 and 2017. Assume also that 2016 is the base year and the real GDP will be calculated using 2016 prices. What is the real GDP 2017? Hot Dogs Buns Quantity Price Quantity Price Year 2016 (base year) 6 million $2 4 million $1 Year 2017 8 million $3 6 million $2 a. $22 million. b. $26 million c. $16 million. d. $36 million.
Answer:
Option (a).
Explanation:
According to the scenario, computation of the given data are as follow:-
Real GDP = Base Year Price × Current Year Quantity
Real GDP in 2016= $2 × 6 million + $1 × 4 million
= $12 million + $4 million = $16 million
Real GDP in 2017 = $2 × 8 million + $1 × 6 million
= $16 million + $6 million = $22 million
According to the analysis, the real GDP in 2017 is $22 million. So (a) option is correct.
ASAP HELP ME PLEASE , GIVING BRAINLIEST TO CORRECT AWNSER
Answer:
A
Explanation:
Answer:
because people would have to have good contraptions in order to be able to make free choices
Explanation:
In this assignment, you will develop a more personalized understanding of the Balanced Scorecard concept and see how your vision and mission can be linked to your goals and objectives. Using the S-M-A-R-T tools in section 6.7 of Chapter 6 in the text, create your own list of goals and objectives.
Create 4 to 5 S-M-A-R-T goals and objectives and demonstrate how they link to your Strategy Diamond and personal vision and mission statements.
Be sure that your Learning Journal entry is a minimum of 500 words.
Answer: The answer is provided below.
Explanation:
The following are my SMART goals:-
Specific
1. I want to be physically fit within 5 months so as to be able to run a marathon in less than 2 hours.
2. I want to become a head of department in my current organization from my current position as a junior staff within the next 4 years in order to be able lead a team.
3. I want to become an amazing and better husband to my wife through spending more quality time with her.
4. I want to become a better father to my children by spending time with them and helping them with their school works.
Measurable
1. I would start my training from the following week. I would begin by running 3 to 5 kilometers with walk breaks.
2. I would talk to my boss next week and request for more responsibilities and also to ask him the requirements neccesary to get promoted.
3. I would come back from office early and spend time with my wife.
4. I would come early from work and spend my weekends together with my children.
Attainable
1. I will talk to other marathoners to know whether my goal is attainable and will also research about it.
2. I will talk to my colleagues whom are head of departments about how they were promoted.
3. I will talk to other husbands that are successful.
4. I will talk to other dads to know whether my goal is attainable.
Realistic
When I start measuring my progress weekly and getting a feedback from people whom I admire, then I would know how realistic my goals are.
Timely
I have given a time frame for the attainment of all these goals which is very vital.
For implementing these goals, I m going to use the Plan-Do-Act-Dare cycle.
Since my objective is to become a well rounded person in my personal and also my professional life, the above steps will surely help me in becoming that person.
The strategy diamond will consist of:-
1. Arenas- Professional and Personal
2. Vehicles- Focus and hard work
3. Differentiation- Being different and unique from others.
4. Staging- Speed of initiatives
There should also be an economic logic that is binding this.
Axsom Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 1,300 direct labor-hours will be required in March. The variable overhead rate is $8.90 per direct laborhour. The company's budgeted fixed manufacturing overhead is $20,020 per month, which includes depreciation of $2,600. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. What should be the predetermined overhead rate for March
Answer:
Estimated manufacturing overhead rate= $24.3 per direct labor hour
Explanation:
Giving the following information:
The direct labor budget indicates that 1,300 direct labor-hours will be required in March.
The variable overhead rate is $8.90 per direct labor hour.
The company's budgeted fixed manufacturing overhead is $20,020 per month.
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= (20,020/1,300) + 8.9
Estimated manufacturing overhead rate= $24.3 per direct labor hour
Answer:
Overhead rate = $15.4 per direct labour hour
Explanation:
The predetermined overhead absorption rate = Estimated overhead for march/ Estimated direct labour hours
= $20,020/ 1,300 hours
= $15.4 per hour
Overhead rate = $15.4 per direct labour hour
Note that deprecation is part of the fixed cost and that the examiner included the additional information about it just to distract the student
GE buys back 300,000 shares of its stock from investors at $45 a share. Two years later it reissues this stock for $65 a share. The stock reissue would be recorded with a debit to Cash for:__________
a) $19.5 million, a credit to Treasury Stock for $13.5 million, and a credit to Additional Paid-in Capital for $6 million.
b) $13.5 million, a debit to Additional Paid-in Capital for $6 million, a credit to Treasury Stock for $13.5 million, and a credit to Stockholders' Equity for $6 million.
c) $19.5 million, a credit to Treasury Stock for $13.5 million, and a credit to Gain on Sale of Treasury Stock for $6 million.
d) $19.5 million and a credit to Treasury Stock for $19.5 million.
Answer:
The correct answer is Option A.
Explanation:
Treasury stocks are simply company's own stock repurchased by the company. When this happens, there is cash outflow in order to increase the stock.
When GE bought back 300,000 shares of its stock from investors at $45 a share, the value of the treasury stock was 300,000 shares x $45 = $13.5m. However, the stock was reissued for $65 a share, translating to 300,000 shares x $65 = $19.5m cash receipt.
The appropriate entries to raise would be a debit to cash for $19.5 million, a credit to Treasury Stock for $13.5 million, and a credit to Additional Paid-in Capital for $6 million.
