g According to the CAPM, what is the expected rate of return for a stock with a beta of 1.2. when the risk-free rate is 6% and the market rate of return is 12%

Answers

Answer 1

Answer:

20.40%

Explanation:

According to CAPM :

expected rate of return = risk free rate + (beta x market rate of return)

6% + (1.2 x 12%) = 20.40%


Related Questions

balance sheet reports assets of $6900000 and liabilities of $2700000. All of Ivanhoe’s assets’ book values approximate their fair value, except for land, which has a fair value that is $410000 greater than its book value. On 12/31/21, Oriole Corporation paid $7030000 to acquire Ivanhoe. What amount of goodwill should Oriole record as a result of this purchase?

Answers

Answer: $2,420,000‬

Explanation:

Goodwill is the amount over the fair value of a company that it is purchased for.

Goodwill = Acquisition price - Net Assets

Net Assets = Assets - Liabilities

= (6,900,000 + 410,000) - 2,700,000

= $4,610,000‬

Goodwill = 7,030,000 - 4,610,000

= $2,420,000‬

Which of the following statements would best characterize someone who is not culturally competent in working with others from different cultures?a. The person varies the rate of their speaking.b. The person uses facial expressions when communicating.c. The person pays attention to verbal and non-verbal behavior.d. The person fills "silence" during conversations.

Answers

Answer: The person fills "silence" during conversations

Explanation:

Culture is simply regarded as people's way of life. The way if life include their food, the kind of music they listen to, their religion, language, their beliefs, values etc.

Someone who is not culturally competent in working with others from different cultures would usually be silent during conversations. This is because the person doesn't know much about the culture and can't really be involved in the conversation.

RLW-II Enterprises estimated that indirect manufacturing costs for the year would be $60 million and that 12,000 machine hours would be used

Answers

Answer: $3,150,000

Explanation:

Total cost of production will be the total sum of the material costs, labor costs and indirect costs.

Indirect Costs

It was estimated that 12,000 machine hours would be used at a cost of $60 million.

Indirect cost per machine hour is;

= 60,000,000/12,000

= $5,000 per hour

With 200 machine hours, indirect cost is;

= 200 * 5,000

= $1,000,000

Total cost of production = 1,250,000 + 900,000 + 1,000,000

= $3,150,000

On January 1, the listed spot and futures prices of a Treasury bond were 95.4 and 95.6. You sold $100,000 par value Treasury bonds and purchased one Treasury bond futures contract. One month later, the listed spot price and futures prices were 95 and 94.4, respectively. If you were to liquidate your position, your profits would be a Group of answer choices $125 profit. $1,060.50 loss. None of the options are correct. $125 loss. $1,062.50 profit.

Answers

Answer:

None of the options are correct.

Explanation:

We start by calculating the net change of the treasury bond position.

= $95,125 - $95,000

= $125

The long treasury bond position gains $125 after a month.

We will also calculate the net change of the treasury bond futures contract.

= $94,125 - $95,187.50

= -$1,062.50

Therefore, Net profits is;

= $125 - $1,062.50

= -$937.50

You are calculating the performance of your project. If the actual cost is $80,000, the planned value is $70,000 and the earned value is $65,000, what is the cost performance index?

Answers

Answer:

Cost performance index is 81.25%

Explanation:

Actual cost = $80,000

Planned value = $70,000

Earned value = $65,000

Cost performance index (CPI) is the ratio of earned value to actual cost and can be used to estimate the projected cost of completing the project.

CPI = EV / AC

= $65,000 / $80,000

= 0.8125

= 0.8125 x 100

= 81.25%

A company issues 9% bonds with a par value of $110,000 at par on January 1. The market rate on the date of issuance was 8%. The bonds pay interest semiannually on January 1 and July 1. The cash paid on July 1 to the bond holder(s) is:

Answers

Answer: $4950

Explanation:

From the question, we are informed that a company issues 9% bonds with a par value of $110,000 at par on January 1 and that the market rate on the date of issuance was 8% and also that the bonds pay interest semiannually on January 1 and July 1.

There is no discount on the bonds payable because they are issues at par. Therefore, the cash paid on July 1 to the bond holders will be:

= $110,000 x 9% x 6/12

= $110,000 x 9/100 x 6/12

= $110,000 x 0.09 x 0.5

= $4,950

All reports required to can be found online at sec.gov.

Per Twitter’s amended S-1 filing, what are the maximum estimated capital expenditures in 2013? Please provide your answer in millions without comma separator or decimal.

Answers

Answer:

Twitter's amended S-1 filing

Maximum estimated capital expenditures in 2013:

= $98 million

Explanation:

Twitter's capital expenditures in 2013 can be estimated by subtracting the  long-term or non-current assets of 2012 from 2013.

The 2013 long-term assets (Property and equipment, net) are worth $284,024,000

The 2012 long-term assets (Property and equipment, net) are worth  $185,574,000

The capital expenditure in 2013 =       $98,450,000

The implication is that Twitter added to (or increased) its property and equipment by $98,450,000, which represent new capital expenditures in 2013.

Twitter filed SEC Form 1-A (S-1) with the Securities and Exchange Commission (SEC) when it was seeking exemption for registration requirements for its public offerings as an "emerging growth company,"  as  it is "allowed by the federal securities laws to elect to comply with certain reduced public company reporting requirements for future filings."

If United Airlines acted as a "price leader" and all other airlines simply charged the same prices

that United Airlines charged, then could this action be illegal because it is a form of "silent collusion?"

A. There is no such term in microeconomics known as "tacit" or "silent collusion."

B. Matching the prices of the price leader firm is a good example of a competitive market.

C. The U.S. Anti-Trust Department has always considered this business behavior as suspicious

and it does consider this pricing strategy to be illegal.

D. The famous 1982 anti-monopoly IBM court case said that this pricing strategy within an

industry is legal as long as the firms fill out quarterly reports to keep the U.S. Anti-Trust

Answers

Answer:

D

Explanation:

The airline industry is an example of an oligopoly

An Oligopoly is when there are few large firms operating in an industry. While, a monopoly is when there is only one firm operating in an industry.

Oligopolies are characterised by :

price setting firms

product differentiation

profit maximisation

high barriers to entry or exit of firms

downward sloping demand curve

the action taken by the other airlines is known as tacit collusion.

Tacit collusion is when other companies adopt the price of the price leader

Tacit collusion is not illegal while the explicit collision is illegal.

Folsom Advertising, Inc. is considering an investment in a new information system. The new system requires an investment of $1,800,000 and either has

a. Even cash flows of $750,000 per year or
b. The following expected annual cash flows: $450,000, $225,000, $600,000, $600,000, and $150,000.

Required:
Calculate the payback period for each case

Answers

Answer:

Payback period=2 years 5  months

Payback period=3 years  8 months

Explanation:

The payback period is the estimated length of time in years it takes  .

It is the number of years it takes the cash project to break-even

a) Payback period

Total cash flow for two years = 750×  2 = 1500.000

Balance of cash flow required to make up= 1800000- 1500,000  300,000

Payback period = 2 years + 300,000/750,000× 12 months=  2 years 5  months

Payback period=2 years 5  months

b) Payback period

Total cash flow for 3 years = 450,000 + $225,000 +600,000=1,275 ,000

Balance o cash required to make up 1800,000 = 1,800,000 -1275,000= 525,000

Pay back period = 3 years + 525,000/750,000×  12 months

                            = 3 years  8 months

Payback period=3 years  8 months

Nemesis, Inc., has 215,000 shares of stock outstanding. Each share is worth $81, so the company's market value of equity is $17,415,000. Suppose the firm issues 48,000 new shares at the following prices: $81, $75, and $69. What will be the ex-rights price and the effect of each of these alternative offering prices on the existing price per share? (Leave no cells blank; if there is no effect select "No change" from the dropdown and enter "O". Round your answers to 2 decimal places, e.g., 32.16.)
Price Ex-Rights Amount $ Effect per share
per share
per share
No change
Price drops by
Price drops by

Answers

Answer:

$81, $75, and $69

a. Market value of existing shares = 215000 * $81 = $17415000

   Value of New shares issued = 48000 * $81 =        $3888000

                                                                                     $21,303,000

Price after issue of new shares = 21,303,000 / (215000 + 48000)

= 21,303,000 / 263,000

= $81

Conclusion: No changes ($0 per share

b. Market value of existing shares = 215000 * $81 = $17415000

   Value of New shares issued = 48000 * $75 =        $3600000

                                                                                     $21015000

Price after issue of new shares = 21015000 / (215000 + 48000)

= 21,015,000  / 263,000

= $79.90

Conclusion: There is a decrease in amount (81 - 79.90) = $1.10 per share

c. Market value of existing shares = 215000 * $81 = $17415000

   Value of New shares issued = 48000 * $69 =        $3312000

                                                                                     $20,727,000

Price after issue of new shares = 20,727,000 / (215000 + 48000)

= 20,727,000 / 263,000

= $78.81

Conclusion: There is a decrease in amount (81 - 78.81) = $2.19 Per share

In determining whether a company's financial condition is improving or deteriorating over time, horizontal analysis of financial statement data would be more useful than vertical analysis.a. True
b. False

Answers

Answer:

a. True.

Explanation:

In determining whether a company's financial condition is improving or deteriorating over time, horizontal analysis of financial statement data would be more useful than vertical analysis.

In Financial accounting, Horizontal analysis can be defined as an analysis and evaluation of a financial statement which illustrates or gives information about changes in the amount of corresponding financial statement items, benchmarks or financial ratio over a specific period of time. It is one of the most important technique that is used to measure how a business is doing financially. Hence, it is also referred to as the trend analysis.

Under the horizontal analysis of financial statement, we use the financial statements of two or more periods; earliest and latter periods.

Generally, the earliest is chosen as the base period while all other items on the statement for a latter period will be compared with the items on the statement of the base period.

Calculate the monthly implicit costs for a business owner who devotes 200 hours per month to his business that could be spent working at $50/hour for someone else.

Answers

Answer:

Implicit cost = $10,000

Explanation:

Implicit cost is the opportunity cost of using resources a business already owns.

This business owner passes this income by being in a business for himself

200 hours per month multiplied by $50/hour

200 x 50

= 10000

Implicit cost = $10,000

Conversion costs are:_______.
A. The direct labor costs associated with processing a product.
B. The combined costs of converting raw materials to finished goods.
C. The overhead costs associated with processing a product.
D. All the costs that go into the manufacturing of a product (DM, DL and OH).

Answers

Answer:

B. The combined costs of converting raw materials to finished goods.

Explanation:

Conversion Costs are the combined costs of converting raw materials to finished goods.

These include the costs of direct labor and manufacturing overheads such as water and electricity.

A company has a net cash inflow from operating activities of $793,000, a net cash outflow of $58,000 from investing activities and a net cash inflow of $100,800 from financing activities. The company paid $128,000 in interest, $188,500 in income taxes, and $204,000 in cash dividends. Which of the following statements about the statement of cash flows is not correct?a. The statement of cash flows will show a net increase in cash and cash equivalents of $838, 500. b. If the direct method is used, the $125,000 of interest paid and the $187,000 of income taxes paid will be reported in the cash flows from operating activities. c. The cash dividends of $201,000 paid will be reported as a cash outflow in the cash flow from investing activities section. d. Supplemental disclosures required for a company using the indirect method include the amount of interest and the amount of income taxes paid.

Answers

Answer:

Incorrect Statement about the Statement of Cash Flows:

c. The cash dividends of $201,000 paid will be reported as a cash outflow in the cash flow from investing activities section.

Explanation:

Cash dividends of $201,000 will be reported as a cash outflow in the financing activities section and not the investing activities section.

Statement of Cash Flows is broadly divided into three, the operating, investing, and financing activities sections.  The operating activities section show the cash flows from the normal business of the enterprise.  The investing activities section shows the acquisition and disposal of investments made by the company in cash.  While, the financing section shows the inflow and outflow of cash resulting from the funding of the business by stockholders and noncurrent creditors.

Companies Heidee and Leaudy are virtually identical in that they are both profitable, and they have the same total assets (TA), Sales (S), return on assets (ROA), and profit margin (PM). However, Company Heidee has the higher debt ratio. Which of the following statements is CORRECT?a. Company Heidee has a lower operating income (EBIT) than Company LDb. Company Heidee has a lower total assets turnover than Company Leaudy.c. Company Heidee has a lower equity multiplier than Company Leaudy.d. Company Heidee has a higher fixed assets turnover than Company Leaudy.e. Company Heidee has a higher ROE than Company Leaudy.

Answers

Answer:

Correct Answer:

e. Company Heidee has a higher ROE than Company Leaudy.

Explanation:

Return on Equity, (ROE) is a ratio that provides investors with insight into how efficiently a company and more specifically, its management team is handling the money that shareholders have contributed to it. That is, it measures the profitability of a corporation in relation to stockholders' equity.

Company Heidee has the higher debt ratio shows that the ROE is very high. This shows that the investors money in Company Heidee is well managed in the business.

g Mason Company paid its annual property taxes of $240,000 on February 15, 20X9. Mason also anticipates that its annual repairs expense for 20X9 will be $1,200,000. This amount is usually incurred and paid in July and August when operations are shut down so that machinery and equipment can be repaired. What amount should Mason deduct for property taxes and repairs in each quarter for 20X9?

Answers

Answer:

$360,000

Explanation:

The total cost would be estimated as the expense anticipated plus the property taxes paid previously.

Now

Total Cost = $240,000 Property Taxes paid      +     $1,200,000 Property repairs anticipated

= $1,440,000

Now we will distribute the annual cost over the four quarters which mean we will divide the total annual cost by 4.

Quarterly Expenses = $1,440,000 / 4     = $360,000

In the Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2017 were as follows.
Budget Actual
Indirect materials $14,200 $13,700
Indirect labor 19,100 19,900
Utilities 11,400 12,100
Supervision 4,600 4,600
All costs are controllable by the department manager.
Prepare a responsibility report for April for the cost center.

Answers

Answer:

                            HANNON COMPANY

                           Assembly Department

           Manufacturing Overhead Cost Responsibility Report

                     For the Month Ended April 30,2017

Controllable Cost     Budget$   Actual$   Difference$   Remark  

Indirect materials       14,200       13,700         500         Favourable

Indirect Labor             19,100        19,900       -800         Unfavourable

Utilities                        11,400        12,100        -700         Unfavourable

Supervision                 4,600        4,600           0                 None

Total                            49,300       50,300    -1,000       Unfavourable

Yan Yan Corp. has a $5,000 par value bond outstanding with a coupon rate of 4.6 percent paid semiannually and 21 years to maturity. The yield to maturity on this bond is 4.1 percent.

What is the price of the bond?

Answers

Answer:

Price of the bond = $4,122.36

Explanation:

The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).  

Value of Bond = PV of interest + PV of RV  

The value of bond for Yan Yan Corp.  be worked out as follows:  

Step 1  

PV of interest payments  

Semi annul interest payment  

= 4.6% × 5,000 × 1/2 = 115

Semi-annual yield = 4.1%/2 = 2.05  % per six months  

Total period to maturity (in months)   = (2 × 21) = 41 periods

PV of interest =  

115  × (1- (1+0.0205)^(-21)/0.0205)=1,946.47

Step 2  

PV of Redemption Value  

= 5000 × (1.0205^(-41)   = 2,175.89

Step 3:Price of the bond

Total present Value = 1,946.47  +  2,175.89  = 4,122.36

Price of the bond = $4,122.36

 

A 70-year old client wants to invest in U.S. Treasury securities. When performing the suitability determination, the client informs the registered representative that he is looking for after-tax income, liquidity, and to avoid market risk. The registered representative should be LEAST concerned with the:

Answers

Answer: client's age

Explanation:

From the question, we are informed that a 70-year old client wants to invest in U.S. Treasury securities and that when performing the suitability determination, the client informs the registered representative that he is looking for after-tax income, liquidity, and to avoid market risk.

The client's age should be the least the registered representative should be concerned about. Rather, the representative should be concerned with the coupon of the recommended treasury securities and the tax bracket of the client for tax purposes.

The firm has total fixed costs of $9 and a constant marginal cost of $3 per unit. The firm will maximize profit with a. 9 units of output. b. 15 units of output. c. 21 units of output. d. 30 units of output.

Answers

Answer:

b. 15 units of output.

Explanation:

information regarding sales price and quantity demanded is missing, so I looked it up (see attached file):

units              sales revenue            total costs            profits

9                       $216                            $36                     $180

15                      $270                           $54                     $216

21                      $252                           $72                     $180

30                     $90                             $99                     ($9)

1. Chang Industries has 1,900 defective units of product that have already cost $13.90 each to produce. A salvage company will purchase the defective units as they are for $4.90 each. Chang's production manager reports that the defects can be corrected for $6.10 per unit, enabling them to be sold at their regular market price of $20.80. The incremental income or loss on reworking the units is:_______.
a. $18,620 income.
b. $30,210 income.
c. $27,930 income.
2. Poe Company is considering the purchase of new equipment costing $85,500. The projected net cash flows are $40,500 for the first two years and $35,500 for years three and four. The revenue is to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of an annuity of 1 and present value of an annuity for different periods is presented below. Compute the net present value of the machine.
Periods Present Value of 1 at 10% Present Value of anAnnuity of 1 at 10%
1 0.9091 0.9091
2 0.8264 1.7355
3 0.7513 2.4869
4 0.6830 3.1699
a. $(27,665).
b. $(14,857).
c. $27,665.
d. $35,709.

Answers

Answer:

1. $18620

2. $35709

Explanation:

1.we are required to find incremental loss.

= Defect(market price - price per unit - correction per unit)

Defect product = 900

Market price = 20.8

Price for each defect unit = 4.9

Price for defect correction = 6.1

1900(20.8-4.9-6.1)

= $18600

2. Present value of cash flow =

40500*0.9091 = 36818.55

40500*0.8264 = 33469.2

35500*0.7513 = 26671.15

35500*0.683 = 24246.5

Total = 121209

We subtract cost of new equipment from this value

121209-85500

= $35709

Ford Motor Company is discussing new ways to recapitalize the firm and raise additional capital. Its current capital structure has a ​% weight in​ equity, ​% in preferred​ stock, and ​% in debt. The cost of equity capital is ​%, the cost of preferred stock is ​%, and the pretax cost of debt is ​%. What is the weighted average cost of capital for Ford if its marginal tax rate is ​%?

Answers

Complete Question:

Ford Motor Company is discussing new ways to recapitalize the firm and raise additional capital. Its current capital structure has a 10% weight in equity, 25% in preferred stock, and 65% in debt. The cost of equity capital is 17%, the cost of preferred stock is 11%, and the pretax cost of debt is 9%. What is the weighted average cost of capital for Ford if its marginal tax rate is 40%?

Answer:

7.96%

Explanation:

We can calculate WACC using the formula:

WACC = Cost of equity * Equity %age / 100%         +          

After Tax Cost of Debt * Debt %age / 100%            +        

Cost of Preferred Stock * Preferred Stock %age / 100%

Here,

Cost of equity is 17%

Cost of preferred stock is 11%

Post tax cost of debt = Pre-Tax cost *  (1 - Tax rate)

This implies,

Post tax cost of debt = 9% * (1 - 40%) =  5.4%

Equity weight is 10% weight in equity

Preferred stock weight is 25%

Debt Weight is 65%

By putting value in the formula given in the attachment, we have:

WACC = 17% * (10% / 100%)      +     11% * (25% / 100%)    +    5.4% * (65% / 100%)

WACC = 1.7%   +   2.75%   +    3.51%

WACC = 7.96%

Cullumber Corporation had 312,000 shares of common stock outstanding on January 1, 2017. On May 1, Cullumber issued 29,700 shares.

(a) Compute the weighted-average number of shares outstanding if the 29,700 shares were issued for cash.

Weighted-average number of shares outstanding $



(b) Compute the weighted-average number of shares outstanding if the 29,700 shares were issued in a stock dividend.

Weighted-average number of shares outstanding $

Answers

Answer:

a. Issued for Cash = ($312,000 * 12/12) + ($29,700 * 8/12)

= $312,000 + $19,800

= $331,800

b. Issued in a stock dividend: Shares issued in the stock dividend are assumed outstanding from the beginning of  the year

= ($312,000 * 12/12) + ($29,700 * 12/12)

= $312,000 + $29,700

= $341,700

Ms. Ray is age 46 and single. Her employer made a $2,730 contribution to her qualified profit-sharing plan account, and she made the maximum contribution to her traditional IRA. Compute her IRA deduction if:

a. Ms. Ray's $50,000 salary is her only income item.
b. Ms. Ray's S64,250 salary is her only income item.
c. Ms. Ray's $64,250 salary and S 7,970 dividend income are her only income items.

Answers

Answer:

B

Explanation:

Rent expense of $3,000 is allocated to Department A and Department B based on square footage. Department A has 5,000 square feet and Department B has 2,500 square feet.

The dollar amount of rent expense allocated to Department B is:_______

Answers

Answer:

$1,000

Explanation:

Calculation for the Dollar amount of rent expense allocated to department B

Using this formula

Expense allocated to Department B= Rent expense allocated to Department A and B* Department B square feet/Department A and Department B Square foot

Let plug in the formula

Expense allocated to department B =$3,000*2,500/5,000+2,500

Expense allocated to department B= $3,000 * 2,500 / 7,500

Expense allocated to department B =$7,500,000/7,500

Expense allocated to department B= $1,000

Therefore the Dollar amount of rent expense allocated to department B will be $1,000

Suppose the country of Stan has fixed its exchange rate to the dollar. The official exchange rate is 0.50 U.S. dollars per rupee. Suppose market conditions are such that the actual equilibrium exchange rate is 0.25 U.S dollars per rupee.
1. You are a tourist in Stan. Something you wish to buy costs 100 rupees. What is the price at official exchange rates? ___________ Are products bought from Stan a good deal?
2. You are a tourist in Stan. Something you wish to buy costs 100 rupees. What is the price if you could buy at the equilibrium exchange rate?
3. Will foreigners want to demand Stan’s rupees to buy goods at the official rate? Explain.
4. Will people in Stan want to buy U.S. goods at the official exchange rates? Will they being supplying or demanding their rupees?
5. Will the monetary authorities in Stan have to buy up a surplus of their currency or sell their currency to meet a shortage of their currency to keep the exchange rate at 0.50 dollars per rupee?

Answers

Answer and Explanation:

1. At 0fficial exchange rate:

100 * 0.5 = $50

what I want to buy would be purchased at $50

at market exchange rate:

0.25 x 100 = $25

products bought from this place are not a good deal as I am paying more than the market exchange rate.

2. at equilibrium exchange rate:

100 x 0.25% = $25

the price is $25

3. from answers 1 and 2, I will not want demand Stan's rupees. the products are costly to get.

4. Stan's currency is obviously overvalued. the people from this country now has increased purchasing power so they can purchase goods in dollars, therefore they would be supplying their currency.

5. They will have to buy up the surplus of rupees so that they can easily keep up with maintaining the rupee at half a dollar.

Following is information on two alternative investments being considered by Jolee Company. The company requires a 6% return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1). (Use appropriate factor(s) from the tables provided.) Project A Project B Initial investment $ (174,325 ) $ (152,960 ) Expected net cash flows in year: 1 41,000 44,000 2 60,000 53,000 3 72,295 68,000 4 87,400 81,000 5 59,000 30,000For each alternative project compute the net present value.

Answers

Answer and Explanation:

The computation of the net present value is presented in the attachment below:

For project A, the net present value is $91,771.53 and for project B, the net present value is $79,390.69

It is computed after considering the discounting factor that comes from

= 1 ÷ (1 + discount rate)^number of years

for year 1, it is

= 1 ÷ (1 + 0.06)^1

The same applied for the remaining years

Which of the following items would be a way to manipulate the cash flow from operating activities amount on the statement of cash flows?

a.
Adding depreciation back to net income to determine cash flow from operating activities.

b.
Including interest expense and tax expense in the calculation of cash flow from operating activities.

c.
Recording an item that should be recorded as an operating activity as an investing activity.

d.
The cash flow statement cannot be manipulated.

Answers

Answer:

C. Recording an item that should be recorded as an operating activity as an investing activity.

Explanation:

Hope it helped

The answer to the question is c

The BRS Corporation makes collections on sales according to the following schedule: 40% in month of sale 55% in month following sale 5% in second month following saleThe following sales have been budgeted: Sales April $210,000 May $160,000June $150,000 Budgeted cash collections in June would be:______.a. $150,840.b. $158,000.c. $149,000.d. $150,000.

Answers

Answer:

Total cash collection= $158,500

Explanation:

Giving the following information:

Cash collection:

40% in the month of sale

55% in the month following sale

5% in the second month following sale

Sales:

April $210,000

May $160,000

June $150,000

Cash collection June:

Sales in cash from June= 150,000*0.4= 60,000

Sales on account from May= 160,000*0.55= 88,000

Sales on account from April= 210,000*0.05= 10,500

Total cash collection= $158,500

Beverages manufactures its own . The bottles are made from polyethylene terephthalate​ (PET), a lightweight yet strong plastic. uses as much PET recycled resin pellets in its bottles as it​ can, both because using recycled PET helps to meet its sustainability goals and because recycled PET is less expensive than virgin PET.

Riley is continuing to search for ways to reduce its costs and its impact on the environment. PET plastic is melted and blown over soda bottle molds to produce the bottles. One idea Riley's engineers have suggested is to retrofit the soda bottle molds and change the plastic formulation slightly so that 25 % less PET plastic is used for each bottle. The average kilograms of PET per soda bottle before any redesign is 0.004 kg. The cost of retrofitting the soda bottle molds will result in a one-time charge of $22,112, while the plastic reformulation will cause the average cost per kilogram of PET plastic to change from $3.00 to $3.30.

Required:
a. Using the original data (before any redesign of soda bottles ), prepare a direct materials budget to calculate the cost of PET purchases in each quarter for the upcoming year and for the year in total.
b. Assume that the company retrofits the soda bottle molds and changes the plastic formulation slightly so that less PET plastic is used in each bottle. Now prepare a direct materials budget to calculate the cost of PET purchases in each quarter for the upcoming year and for the year in total for this possible scenario.
c. Compare the cost of PET plastic for Requirement 1 (original data) and for Requirement 2 (making change to using less PET.) What is the direct material cost savings from making the change to using less PET?

Answers

Answer:

I prepared an excel spreadsheet because there is not enough space here.

C) total savings =  previous materials costs - total cost per year after retrofitting - cost of retrofitting the molding machine = $137,105.10 - $102,168.00  - $22,112 = $12,825.10

Other Questions
Which of the following is a drawback faced by multinational enterprises (MNEs)pursuing an international strategy?a. They cannot leverage their home-based core competencies in foreign markets.b. They are highly affected by exchange rate fluctuations.c. They have to be highly responsive to local needs and preferences.d. They cannot reap the benefits of economies of scale due to their highly customized products. A dance studio charges $12 per dance class. The studio is offering a 15% discount if you pay a set of 5 classes now. How much does it cost to buy 5 classes with this offer? What did Marx and Freud see as the downfall of religion that would lead to the secularization of society? the executive Governor of ogun state is who PLS ANSWER! According to scientific research, a student must study an instrument for how many years before they will perform better on tests of listening, motor skills, vocabulary, and reasoning? Select one: a. one year b. two years c. three years d. five years How should a musician effectively convey emotions or ideas in a performance? A person holds a 25 kg (250 newton) bag of cement over his head and moves it a distance of 10 m, taking 2 minutes, while another person carries it on a wheelbarrow that same distance, taking 1 minute.Who does more work ? What is the power of each person? Determine whether each equation is an identity or whether it has no solution.-3(2x+1)=2(-3x-1) help is this a no solution or infinite Two rectangles are joined together to form a single large area. The rectangles do not overlap. The first rectangle has side lengths of 333 meters and 555 meters. The second rectangle has side lengths of 777 meters and 444 meters. What is the combined area? How did President Nixon develop a better relationship with the People'sRepublic of China?O A. By withdrawing the American recognition of the CommunistgovernmentB. By sending wheat to China to help with a severe food shortage andfamineO C. By playing ping-pong with the Communist Chinese leader, MaoZedongO D. By going to China to visit with Mao Zedong, the Communist leader Collins Company reported consolidated revenue of $120,000,000 in 20X8. Collins operates in two geographic areas, domestic and Asia. The following information pertains to these two areas: Sales to External Interarea Sales Customers Between AffiliatesDomestic $70,000,000 $12,000,000 Asia $50,000,000 $8,000,000What calculation below is correct to determine if the revenue test is satisfied for the Asian operations?a. $58,000,000/$120,000,000.b. $50,000,000/$140,000,000.c. $58,000,000/$140,000,000.d. $50,000,000/$120,000,000. What do all cells need in order to function A wire of 5.8m long, 2mm diameter carries 750ma current when 22mv potential difference is applied at its ends. if drift speed of electrons is found then:_________.(a) The resistance R of the wire(b) The resistivity p, and(c) The number n of free electrons per unit volume. why can the suns rays cause a burn but the light from a flashlight cannot harm your skin? 1.Solve by factorization method: x+1/x=11 1/11 2.Comment on the nature of roots for 4x^2-5=2(x+1)^2-7 plz, help... DISCUSS FIVE CHARACTERISTICS OF INTELLECTUAL DEVELOPMENT OF EARLY CHILDREN Suppose a 500 mb chart valid today at 12 Z indicates a large trough over the eastern US and a large ridge over the western US. An aircraft, flying in the vicinity of 18,000 ft altitude from west to east over the US at 12 Z today, will _____ altitude if the altimeter is not corrected. Group of answer choices Salud Company reports the following information. Use the indirect method to prepare only the operating activities section of its statement of cash flows for the year ended December 31, 2017. (Amounts to be deducted should be indicated with a minus sign.) Selected 2017 Income Statement Data Selected Year-End 2017 Net income $455,000 Accounts receivable increase $52,800 Depreciation expense 95,500 Prepaid expenses decrease 17,400 Gain on sale of machinery 26,300 Accounts payable increase 6,200 Wages payable decrease 2,100 James conducted an experiment with 4 possible outcomes. He determined that the experimental probability of event A happening is 10 out of 50. The theoretical probability of event A happening is 1 out of 4. Which action is most likely to cause the experimental probability and theoretical probabilities for each event in the experiment to become closer? removing the last 10 trials from the experimental data completing the experiment many more times and combining the results to the trials already done including a fifth possible outcome performing the experiment again, stopping immediately after each event occurs once An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $60,000,and it has an estimated MV of $12,000 at the end of an estimated useful life of 14 years. Compute the depreciationamount in the thirdyear and the BV at the end of the fifth year of life by each of these methods: