Guardian Inc. is trying to develop an asset-financing plan. The firm has $430,000 in temporary current assets and $330,000 in permanent current assets. Guardian also has $530,000 in fixed assets. Assume a tax rate of 30 percent. (Do not round intermediate calculations. Round your answers to the nearest whole number.)
a. Construct two alternative financing plans for Guardian. One of the plans should be conservative, with 90 percent of assets financed by long-term sources, and the other should be aggressive, with only 56.25 percent of assets financed by long-term sources. The current interest rate is 12 percent on long-term funds and 5 percent on short-term financing. Compute the annual interest payments under each plan.
Annual Interest
Conservative $
Aggressive $
b. Given that Guardian’s earnings before interest and taxes are $310,000, calculate earnings after taxes for each of your alternatives.
Earnings
After Taxes
Conservative $
Aggressive $
c. What would the annual interest and earnings after taxes for the conservative and aggressive strategies be if the short-term and long-term interest rates were reversed?
Conservative Aggressive
Total interest $ $
Earnings after taxes $ $

Answers

Answer 1

Answer:

A. Annual Interest

Conservative $145,770

Aggressive $115,294

B. Earnings After Taxes

Conservative $114,961

Aggressive $136,294

C.Conservative Aggressive

Total interest $73,530 $104,006

Earnings after taxes $165,529 $144,196

Explanation:

A. Computation for the annual interest payments under each plan.

First step is to calculate the Total Assets

Temporary current assets $430,000

Permanent current assets $330,000

Fixed Assets $530,000

Total Assets $1,290,000

Now let compute the annual interest payments under each plan

CONSERVATIVE APPROACH total interest

Long term interest

[$1,290,000 *90%* 12%] $139,320

Short term interest

[$1,290,000*10%*5%] $6,450

(100%-10%=90%)

Total $145,770

AGGRESSIVE APPROACH total interest

Long term interest

[$1,290,000 *56.25%* 12%] $87,075

Short term interest

[$1,290,000*43.75%*5%] $28,218.8

(100%-56.25%=43.75%)

Total $115,294

Therefore the is Annual Interest

Conservative $145,770

Aggressive $115,294

b. Calculate to determine the earnings after taxes for each the alternatives.

CONSERVATIVE AGGRESSIVE

EBIT $310,000 $310,000

Less: Interest $145,770 $115,294

EBT $164,230 $194,706

Less: Tax 30% ($49,269) ($58,412)

Earnings after tax $114,961 $136,294

Therefore the Earnings After Taxes is

Conservative $114,961

Aggressive $136,294

c. Calculation to determine What would the annual interest and earnings after taxes for the conservative and aggressive strategies

CONSERVATIVE APPROACH total interest

Long term interest

[$1,290,000 *90%* 5%] $58,050

Short term interest

[$1,290,000*10%*12%] $15,480

(100%-10%=90%)

Total $73,530

AGGRESSIVE APPROACH total interest

Long term interest

[$1,290,000 *56.25%* 5%] $36,281.3

Short term interest

[$1,290,000*43.75%*12%] $67,725

(100%-56.25%=43.75%)

Total $104,006

CONSERVATIVE AGGRESSIVE

EBIT $310,000 $310,000

Less:Interest $73,530 $104,006

EBT $236,470 $205,994

Less: Tax 30% $70,941 $61,798

Earnings after tax $165,529 $144,196

Therefore What would the annual interest and earnings after taxes for the conservative and aggressive strategies is:

Conservative Aggressive

Total interest $73,530 $104,006

Earnings after taxes $165,529 $144,196


Related Questions

Salaries of $4,000 are paid for a five-day week on Friday. Journalize the necessary adjusting entry of the month ends on Thursday.

Answers

Answer:

Debit Salaries Expense $4,000

Credit Salaries Payable $4,000

Explanation:

Preparation of the the the necessary adjusting entry of the month ends on Thursday

Based on the information given the necessary adjusting entry of the month ends on Thursday will be to Debit Salaries Expense with the amount of $4,000 and Credit Salaries Payable with the same amount of $4,000.

Debit Salaries Expense $4,000

Credit Salaries Payable $4,000

Jefferson tutoring had the following payroll information on Feb 28:
Gross pay: 4,000
Cumulative earnings prior to this payroll: 4,000
Assume:
FICA tax rates are OASDI 6.2% on a limit of 117,000 and medicare 1.45%.
State unemployment tax rate is 2% on the first 7,000.
Federal unemployment tax rate is 0.8% on the first 7,000
Using the information above the journal entry to record the payroll tax expense for jefferson tutoring would include:____.
A. a credit to FUTA payable for 24.
B. a debit to payroll tax expense in the amount of 390.
C. a credit to SUTA payable for 60.
D. all of the above.

Answers

Answer: D. all of the above.

Explanation:

FUTA:

Cumulative earnings were $4,000. FUTA is one the first $7,000 which means that only $3,000 is left to be taxed on account of the cumulative earnings prior to this payroll having been taxed:

= 0.8% * 3,000

= $24

This will be credited to FUTA Payable to recognize that Jefferson owes this liability.

SUTA:

Same goes for SUTA:

= 2% * 3,000

= $60

This will be credited to SUTA Payable to recognize that Jefferson owes this liability.

Payroll tax expense:

= FICA taxes + Medicare + FUTA + SUTA

= ((6.2% + 1.45%) * 4,000) + 24 + 60

= $390

This will be debited to Payroll Tax expense because expenses are debited when they increase.

A rules-based monetary policy :_______.a. is advocated by activists. b. is advocated by nonactivists. c. could involve a predetermined steady growth rate in the money supply. d. b and c e. all of the above

Answers

Answer:

d. b and c

Explanation:

Monetary policy can be defined as the actions (macroeconomic policies) adopted and undertaken by the central bank of a particular country (Federal Reserve System in the United States of America) to control the money supply and interest rates so as to boost or enhance economic growth.

Basically, monetary policies are used by the central bank to manage inflation, economic growth through long-term interest rates and level of unemployment in a country. In order to boost economic growth, the national government through its central bank introduces monetary policy to increase money supply (liquidity). Also, a monetary policy can be used to prevent inflation through the reduction of money supply at a given period of time.

A rules-based monetary policy is advocated by non-activists and when it's adopted by the central bank of a country, it could involve a predetermined steady growth rate in the money supply because it's implemented based on specific indicator events existing in the economy.

what is the effect on the market when suppliers under invest in their business​

Answers

When a supplier under invests in their business, they may run out of a product if it is high demand. Without enough product, this will increase the demand and increase prices. Law of supply & demand. Kind of like the housing market in the US is now.

The Johnson Robot Company’s marketing managers estimate that the demand curve for the company’s robots in 2012 is P = 6,000 - 40Q where P is the price of a robot and Q is the number sold per month. If the firm wants to maximize its dollar sales volume, what price should it charge?

Answers

Economics: P= Price and Q = Quantity Demanded.

Martin Company manufactures a powerful cleaning solvent. The main ingredient in the solvent is a raw material called Echol. Information concerning the purchase and use of Echol follows:

Purchase of Echol Echol is purchased in 15-gallon containers at a cost of $115 per container. A discount of 2% is offered by the supplier for payment within 10 days, and Martin Company takes all discounts. Shipping costs, which Martin Company must pay, amount to $130 for an average shipment of 100 15-gallon containers of Echol.

Use of Echol The bill of materials calls for 7.6 quarts of Echol per bottle of cleaning solvent. (Each gallon contains four quarts.) About 5% of all Echol used is lost through spillage or evaporation. In addition, statistical analysis has shown that every 41st bottle is rejected at final inspection because of contamination.

Required:
a. Compute the standard purchase price for one quart of Echol.
b. Compute the standard quantity of Echol (in quarts) per salable bottle of cleaning solvent.
c. Using the data from (1) and (2) above, prepare a standard cost card showing the standard cost of Echol per bottle of cleaning solvent.

Answers

Answer: a. $1.90

b. 8.2 quarts

c. $15.58

Explanation:

a. Compute the standard purchase price for one quart of Echol.

Cost per 15 gallon container = $115

Less: Cash discount= 2% × $115 = $2.30

Net cost = $115 - $2.30 = $112.70

Add: Shipping cost = $139/100 = $1.30

Total cost = $112.70 + $1.30 = $114

Number of quarts per container = (15 × 4) = 60

Standard cost per quart = $114/60 = $1.90

b. Compute the standard quantity of Echol (in quarts) per salable bottle of cleaning solvent.

Content per bill of materials = 7.6 quart

Add: Allowance for evaporation and spillage = 8.0 - 7.6 = 0.4 quart

Add: Allowance for rejected unit = 8.0/40 = 0.2 quarts

Standard quantity of Echol per salable bottle of cleaning solvent = 7.6 + 0.4 + 0.2 = 8.2 quarts

c. Using the data from (1) and (2) above, prepare a standard cost card showing the standard cost of Echol per bottle of cleaning solvent.

This will be:

= 8.2 quart × $1.90 per quart

= $15.58

Some of your senior employees have started changing important information in a new call script. Newer employees have noticed, and some have started doing the same. What would you do? Select all that apply.
A Allow the senior employees to go off script since they have more experience
B Practice using the new script during your weekday team meeting
C Discipline those who don't follow the script
D Give written warnings to the senior employees
E Require all of the newer employees attend additional training​

Answers

the answer is b,c and e

Give written warnings to the senior employees

Below is the production possibilities frontier for Japan. It shows that Japan is able to produce either 80 bottles of milk or 50 cartons of eggs using all of its available resources. Also suppose that Japan decides to produce at point A : 60 bottles of milk and 12 cartons of eggs. If Japan engages in international trade and trades 30 bottles of milk for 30 cartons of eggs with another country, it will be able to consume outside of its production possibilities frontier. How many bottles of milk will the country have at the end of the exchange

Answers

Answer and Explanation:

The computation of the number of bottle of milk will the country at the end of the exchange is shown below:

The Number of milk bottles Japan is presently producing is 60 bottles

The Number of milk bottles  Japan trades with another country is  30 bottles

So,  

The Number of Milk bottles left with Japan after doing an exchange is

= 60 - 30

= 30 bottles

Also,

The Number of egg cartons Japan is presently producing is 12

The Number of egg cartons Japan trades with another country is 30

So,  

Number of eggs cartons left with Japan after considering an exchange is

= 12 + 30

= 42 cartons

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Answers

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Using the data below for Ace Guitar Company: Region A Region B Sales $786,500 $643,500 Cost of goods sold 298,900 244,500 Selling expenses 188,800 154,400 Service department expenses Purchasing $240,200 Payroll accounting 160,200 Allocate service department expenses proportionally to the sales of each region, determine the divisional income from operations for the Regions A and B. For interim calculations, round the percentages to one decimal place. Region A $fill in the blank 1 Region B $fill in the blank 2

Answers

Solution :

Calculation of income from operations

Sales                                                                      Region A        Region B

Cost of goods sold                                               643,500          786,500

Selling expenses                                                  244,500           298,900

Service department expenses                            154,400           188,800

Purchasing (working note - 1)                              108,090           132,110

Payroll accounting (working note - 2)                  72,090            88,110    

Income from expenses                                         $ 64,420        $ 78,580

Working note 1

Allocation of purchasing expenses:

A region = [tex]$240,200 \times \frac{643500}{(643500+786500)}$[/tex]

              = $ 108,090

B region = [tex]$240,200 \times \frac{786500}{(643500+786500)}$[/tex]

              = $ 132,110

Working note 2

Allocation of payroll accounting expenses.

A region = 160200 x 0.45  (sales ratio)

              = $ 72,090

B region  = 160,200 x 0.55  (sales ratio)

               = $ 88,110

An industry consists of three firms with sales of $355,000, $825,000, and $435,000.
a. Calculate the Herfindahl-Hirschman index (HHI).
Instruction:
Enter your response rounded to the nearest integer.
b. Calculate the four-firm concentration ratio (C4).
c. Based on the FTC and DOJ Horizontal Merger Guidelines described in the text, is the Department of Justice likely to attempt to block a horizontal merger between two firms with sales of $355,000 and $435,000

Answers

Answer:

Calculating Herfindahl-Hirschman Index and Four-Firm Concentration Ratio:

a. Herfindahl-Hirschman index (HHI) = 3,814

b. The four-firm concentration ratio (C4) = 1

c. If the two firms with sales of $355,000 and $435,000 merged, the resulting HHI would increase by 1,723 to 5,537.  The post-merger HHI now exceeds that allowed under the Guidelines (2,500). The increase in HHI is more than that permitted under the Guidelines (200), the merger is likely to be blocked by the Department of Justice.

Explanation:

a) Data and Calculations:

Sales of three firms in an industry:

                            Sales          Industry Share

Firm A sales = $355,000        22% ($355,000/$1,615,000 * 100)

Firm B sales =   825,000         51% ($825,000/$1,615,000 * 100)

Firm C sales =   435,000        27% ($435,000/$1,615,000 * 100)

Total sales =  $1,615,000

Herfindahl-Hirschman index (HHI) = 3,814 (22² + 51² + 27²)

Four-firm concentration ratio (C4) = Sales of the four largest firms/Industry sales = $1,615,000/$1,615,000

If the two firms with sales of $355,000 and $435,000 were to merge, the new Herfindahl-Hirschman index (HHI) = 5,537(49² + 51²)

Increase in HHI as a result of the merger = 1,723

lamingos, Inc. has two service departments and two operating (production) departments. Administrative Department costs are allocated to the Assembly and Packaging departments based on the number of employees, and Maintenance Department costs are allocated to the Assembly and Packaging departments based on square feet occupied. Data for these departments follows:


Department Direct Expenses No. of employees Sqaure Feet
Administrative $30,000
Maintenance 15,000
Assembly 70,000 6 2,000
Packaging 45,000 4 3,000

The total amount of the Administrative Department's cost that would eventually be allocated to the Packaging Department is: __________

Answers

Answer:

Packaging= $12,000

Explanation:

First, we need to calculate the allocation rate of the Administrative Department:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Allocation rate= 30,000 / (6 + 4)

Allocation rate= $3,000 per employee

Now, we can allocate to the Packaging Department:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Packaging= 3,000*4

Packaging= $12,000

On January 1, 2019, Loeffler Company acquired a machine at a cost of $200,000. Loeffler estimates that it will use the machine for 4 years or 8,000 machine hours. It estimates that after 4 years the machine can be sold for $20,000. Loeffler uses the machine for 2,100 and 1,800 machine hours in 2019 and 2020, respectively.

Required:
Compute depreciation expense for 2019 and 2020 using the () straight-line, (2) double- declining-balance, and (3) units-of-production methods of depreciation

Answers

Answer:

1. $45,000

$45,000

2. $100,000

$50,000

3. $47250

$40,500

Explanation:

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

($200,000 - $20,000) / 4 = $45,000

Depreciation expense each year would be $45,000

Depreciation expense using the double declining method = Depreciation factor x cost of the asset

Depreciation factor = 2 x (1/useful life) = 2/4 = 1/2

Depreciation expense in 2019 = 1/2 x 200,000 = $100,000

Book value in 2020 = 200,0000 - 100,000 = 100,000

Depreciation expense in 2019 = 1/2 x 100,000 = 50,000

Activity method based on hours worked = (hours worked that year / total hours of the machine) x  (Cost of asset - Salvage value)

2019 = ($200,000 - $20,000) x ( 2,100 / 8000) = 47250

2020 =  ($200,000 - $20,000) x ( 1800 / 8000) = 40,500

Oi boa tarde , onde consigo um curso online de aprimoramento de laticinios

Answers

Explanation:

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Wydex stock is currently trading at $82 a share. The firm feels that its primary clientele can afford to spend between $2,000 and $2,500 to purchase a round lot of 100 shares. The firm should consider a:

Answers

Answer: Stock Split

Explanation:

The company should consider a stock split which would enable it to reduce the price of its stock but without changing total shareholder value.

With a stock split, the companies stock would be divided into smaller stocks that would have a lower price but when all these are added up, the total shareholder value would not change.

Right now the stock is trading at $82 per share. If they could do a stock split such that each stock is between $20 and $25 then people would be able to spend between $2,000 and $2,500 to purchase a round lot of 100 shares.

A restaurant offers a 20% discount on all meals for people aged 60 and older. This restaurant is practicing:_________

a. monopolistic competition.
b. efficient pricing.
c. reservation pricing.
d. price discrimination.
e. price retention.

Answers

Answer:

d

Explanation:

Price discrimination is when the same product is sold at different prices to customers in different markets

types of price discrimination

1. first degree price discrimination : here sellers charge each consumer at their willingness to pay in order to eliminate consumer surplus.

2. second degree price discrimination : here firms offer different prices depending on the quantity purchased. e.g. giving discounts for bulk purchases.  

3, third degree price discrimination : firms charge different prices to different groups of customers. e.g. having a certain price for senior citizens, students  

Requirements to practice successful price discrimination  

1. The firm must have market power. If the firm does not have market power and attempts to price discriminate they would lose customers

2. The firm must have different elasticities of demand for their product in different markets

3. The firm must be able to segment the market for their products  

The restaurant who offers a 20% discount on all meals for people aged 60 years and above is practicing price discrimination.

Price discrimination can be defined as a situation in which the producer charges different prices for different groups of customers buying the same product.

This means, all customers be are purchasing the bc same commodity but are charged differently by the producer.

Therefore, the restaurant is practicing price discrimination system

Learn more about price discrimination here:

https://brainly.com/question/18564948

RST Company produces a product that has a variable cost of $6 per unit. The company's fixed costs are $30,000. The product sells for $10 per unit. The break-even point in sales dollars is $_____________.

Answers

Answer: $75000

Explanation:

In order to solve the question, firstly we need to calculate the contribution margin ratio which will be:

= ($10 - $6) / $10

= 40%

Then, the break even sales will then be:

= Fixed cost / Contribution margin ratio

= $30000 / 40%

= $75000

Therefore, the break-even point in sales dollars is $75000

Borges Machine​ Shop, Inc., has a​ 1-year contract for the production of 225,000 gear housings for a new​ off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three alternatives. They are​ general-purpose equipment​ (GPE), flexible manufacturing system​ (FMS), and​ expensive, but​ efficient, dedicated machine​ (DM). The cost data​ follow: ​

General-Purpose Equipment​ (GPE) Flexible Manufacturing System​ (FMS) Dedicated Machine​ (DM)
Annual contracted units 225,000 225,000 225,000
Annual fixed cost $125,000 $225,000 $480,000
Per unit variable cost $15.00 $14.00 $13.00

The option GPE is best when the contracted volume is below:__________

Answers

Answer:

For 225,000 units FMS is the best alternative.

For GPE: TC  

GPE  

[tex]= $100,000 + ($15.00\times 225,000)\\\\= $3,475,000[/tex]

For 0 units GPE has the lowest TC. The next lowest cost is FMS.

x = ($200,000-$100,000)/($15-$14) = 100,000  

Therefore, for 0 to 100,000 units GPE is the best alternative.

Explanation:  

Formula used:-

For 225,000 units FMS is the best alternative.

Total Cost (TC) = Fixed Cost (FC) + [Variable Cost (VC) x Annual Contract Units (ACU)]  

For GPE: TC  

GPE  

[tex]= $100,000 + ($15.00\times 225,000)\\\\= $3,475,000[/tex]

For FMS: TC  

FMS  

[tex]= $200,000 + ($14.00\times 225,000)\\\\= $3,350,000[/tex]

For DM: TC  

DM  

[tex]= $480,000 + ($13.00 \times225,000)\\\\= $3,405,000[/tex]

   

For 0 units GPE has the lowest TC. The next lowest cost is FMS. Comparing these two plans, let x be the no of units when the cost of both plans is the same.  

x = ($200,000-$100,000)/($15-$14) = 100,000  

Therefore, for 0 to 100,000 units GPE is the best alternative  

Similarly comparing FMS and DM to find x, we get  

x= ($ 480,000-$ 200,000)/($14-$13) = 280,000  

So, for the 225,000 and 280,000 range, FMS is the best alrernative.  

For greater than 280,000 DM is the best alternative.  

The option GPE is best when the contracted volume is below 100,000 units  

The option FMS is best when the contracted volume is between 100,000 and 280,000 units (enter your response as a whole number)  

The option DM is best when the contracted volume is over 280,000 units (enter your response as a whole number)

The Metropolitan Bus Company (MBC) purchases diesel fuel from American Petroleum Supply. In addition to the fuel cost, American Petroleum Supply charges MBC $225 per order to cover the expenses of delivering and transferring the fuel to MBC's storage tanks. The lead time for a new shipment from American Petroleum is 10 days; the cost of holding a gallon of fuel in the storage tanks is $0.03 per month, or $0.36 per year; and annual fuel usage is 180,000 gallons. MBC buses operate 288 days a year.

Required:
a. What is the optimal quantity for MBC?
b. How frequently should MBC order to replenish the gasoline supply?
c. The MBC storage tanks have a capacity of 15,000 gallons. Should MBC consider expanding the capacity of its storage tanks?
d. What is the recorder point?

Answers

Answer:

A. 15,000

B. 12 times

C. No Need Of Expanding the storage tanks

D. 6,250 gallons

Explanation:

a. Calculation to determine the optimal quantity for MBC

Using this formula

Optimal quantity=√2×Demand quantity×Ordering cost÷Holding cost

Let plug in the formula

Optimal quantity=√2×180,000×$225÷$0.36

Optimal quantity=√225,000,000

Optimal quantity=15,000

Therefore the optimal quantity for MBC is 15,000

b. Calculation to determine How frequently should MBC order to replenish the gasoline supply

Using this formula

MBC order=Demand quantity÷ Economic Ordering quantity

Let plug in the formula

MBC order=180,000÷15,000

MBC order=12 times

Therefore How frequently should MBC order to replenish the gasoline supply will be 12 times

c.) If The MBC storage tanks have a capacity of 15,000 gallons there is NO NEED OF EXPANDING the storage tanks reason been that the OPTIMAL ORDER QUANTITY is 15,000 which is the same with MBC's tank storage capacity.

d. Calculation to determine the reorder point

Using this formula

Reorder point = Lead time× Average demand quantity

Where,

Lead time=10 days

Average Demand Quantity=180,000/$288

Average Demand Quantity=625

Let plug in the formula

Reorder point =10 days*625

Reorder point=6,250 gallons

Therefore Reorder point is 6,250 gallons

Your mayor just announced that the local unemployment rate dropped from 10.5% to 10.4% from the prior month. Evaluate the unemployment rate drop and discuss whether there is enough information to determine significance. Support your response with specific examples. In replies to peers, discuss whether you agree or disagree with their assessments and justify your response

Answers

Answer:

Not enough information

Explanation:

from this question, this mayor has only given us the estimated proportion of the rate of unemployment  for these months. In order to know if it is significant or not, we have to carry out other tests such as the hypothesis testing for the population proportion. But here we do not have any sample data or population data with which we can use to test this significance. The sample size is unknown so we cannot proceed to test if the claim is significant or not.

Statement of Cash Flows—Indirect Method
The following balances are available for Chrisman Company:
December 31
2017 2016
Cash $9,700 $12,100
Accounts receivable 24,300 18,200
Inventory 19,300 32,200
Prepaid rent 10,900 7,300
Land 90,900 90,900
Plant and equipment 485,000 363,800
Accumulated depreciation (78,800) (36,400)
Totals $561,300 $488,100
Accounts payable $14,600 $12,100
Income taxes payable 3,600 6,100
Short-term notes payable 42,400 30,300
Bonds payable 91,000 121,000
Common stock 242,500 181,900
Retained earnings 167,200 136,700
Totals $561,300 $488,100
Bonds were retired during 2017 at face value, plant and equipment were acquired for cash, and common stock was issued for cash. Depreciation expense for the year was $42,400. Net income was reported at $30,500.
Required:
Prepare a statement of cash flows for 2017 using the indirect method in the Operating Activities section. Use the minus sign to indicate cash payments, cash outflows, or decreases in cash.

Answers

Answer and Explanation:

The preparation of the cash flow statement using the indirect method is as follows;

Cash flows from operating activities

Net Income  $30,500.00  

Add: Depreciation $42,400.00  

Less: Decrease in income taxes payable ($2,500.00)  

Less: Increase in AR ($6,100.00)  

Add: Decrease in inventory  $12,900.00  

Less: Increase in prepaid rent ($3,600.00)  

Add: Increase in AP $2,500.00  

Add: Increase in short term notes payable  $12,100.00  

Net Cash flow from operating activities $88,200.00

Cash flow from Investing activities  

Purchase of PPE ($121,200.00)  

Net Cash flow from Investing activities ($121,200.00)

Cash flow from Financing activities  

Redemption of Bonds   ($30,000.00)  

Issue of Stock  $60,600.00  

Net Cash flow from Financing activities $30,600.00

Increase or decrease in cash -$2,400

Add: Opening cash and cash equivalents $12,100.00

Closing cash and cash equivalents $9,700.00

What are derivatives? Different types of derivatives ? What are Forward contracts ?

What are Futures contracts ? Features and benefits of derivatives ?

Answers

Explanation:

The most common types of derivatives are forwards, futures, options, and swaps. The most common underlying assets include commodities, stocks, bonds, interest rates, and currencies. Derivatives allow investors to earn large returns from small movements in the underlying asset's price.

Accountants focus on creating financial statements, whereas finance professionals use these statements to evaluate a firm and answer questions about its performance. Indicate which financial statement you would refer to when answering the questions in the following table:

Income Statement Statement of Retained Earnings

How profitable has the firm been?
How much of the firm's earnings are left as balance after the firm pays out dividends to its shareholders?

If compensation for senior management is based on short-term performance of the firm, in the short run the firm is likely to:
a. Overstate its earnings
b. Understate its earnings

Answers

Answer:

1. Indication of financial statement to refer to when answering questions in the following table:

Question                                                   Financial Statement

How profitable has the firm been?         Income Statement

How much of the firm's earnings are     Statement of Retained Earnings

left as balance after the firm pays out

dividends to its shareholders?

2. If compensation for senior management is based on short-term performance of the firm, in the short run the firm is likely to:

a. Overstate its earnings

Explanation:

Company A's Income Statement shows its profit performance at different levels.  At one level is the gross profit, which shows the difference between the net sales or service revenue and the cost of sales/service.  At another level is the operating income, which is the income before interest and taxes.  The next important level is the net income, which is the profit after taxes.  This shows the earnings available for distribution to stockholders.  The Statement of Cash Flows classifies the cash flows generated into operating, investing, and financing activities, and shows the non-cash flow adjustments.

1 1.1 Briefly name and explain the aspects of the marking mix.​

Answers

Answer: Marketing mix could described as methods taken by an organization to boast their brand or improve demand of product in the market.

Explanation:

Marketing mix could described as methods taken by an organization to boast their brand or improve demand of product in the market.

Aspects of marketing mix are Price, product, promotion and place.

Price; this refers to the value of a product. The organization in considering marketing mix would have to make her price affordable for the market in relation with the value of the product it's selling.

Product; this is the item being sold. The item must be valuable and worth the buy of the customers, this would improve consistent buying and referral by those who have already bought.

Promotion: this refers to actions taken to make known the product visibility in the market. This actions could be through branding, marketing with the aim of making the products demanded more than usual always.

Place: these is referred to as the target market. Every market is not a market, the place refers to those who are either already customers or would be customers. The organization must try to identify those who her products address and try selling to them.

Why irish lions rugby playing with Japan?

Answers

Answer:

I expect the answer in the following form

Explanation:

Irish lions play with Japan to get better and learn new things

On January 1, 2019, Sunland Company granted Sam Wine, an employee, an option to buy 1,000 shares of Sunland Co. stock for $30 per share, the option exercisable for 5 years from date of grant. Using a fair value option pricing model, total compensation expense is determined to be $5520. Wine exercised his option on October 1, 2021 and sold his 1,000 shares on December 1, 2021. Quoted market prices of Sunland Co. stock in 2021 were:

Answers

Using the fair value method, Sunland Company should recognize compensation expenses for 2019on its books in the amount of 2019 is $5,520.

What is a compensation expense?

Compensation expenses are compensation-associated expenses used as a reward for exceptional job performance.

Examples of such compensation expense plans include bonuses, commissions, stock options, and profit-sharing.

Data and Calculations:

Number of option shares granted = 1,000 shares

Grant price = $30

Exercise period = 5 years

Total compensation expense based on the fair value option pricing model = $5,520

The 2019 compensation expense = $6,000 ($30 x 1,000)/5

Question Completion:

Quoted market prices of Sunland Co. stock in 2021 were:

July 1 = $30 per share

Oct 1 = $36 per share

Dec 1 = $40 per share

Required:

As a result of the option granted to Wine, using the fair value method, Sunland Company should recognize compensation expenses for 2019 on its books in the amount of 2019.

Thus, the 2019 compensation expense is $5,520.

Learn more about stock options at https://brainly.com/question/25693765

In two hours JustBorn Candies can produce 30,000 Peeps or 90,000 Mike and Ikes or any combination in between.
a. What is the trade-off between Peeps and Mike and Ikes?
i. For every Peep, 9 Mike and Ikes can be produced.
ii. For every Peep, 1/3 Mike and Ike can be produced.
iii. For every Mike and Ike, 3 Peeps can be produced.
iv. For every Peep, 3 Mike and Ikes can be produced.
b. Draw a production possibility curve that reflects this trade-off.
c. Identify the placement of the following points on the production possibility curve.
i. An efficient production point is (Click to select)inside the production possibility curveoutside the production possibility curveon the production possibility curve.
ii. An inefficient production point is (Click to select)on the production possibility curveoutside the production possibility curveinside the production possibility curve.
iii. An impossible point is (Click to select)on the production possibility curveoutside the production possibility curveinside the production possibility curve.
d. Illustrate what would happen if JustBorn candies developed a technology that increased productivity by one third for both products.

Answers

Answer: See explanation

Explanation:

a. For every Peep, 3 Mike and Ikes can be produced

b. Check the attachment

c. An efficient production point is (on the) production possibility curve.

An inefficient production point is (inside) the production possibility curve.

An impossible point is (outside) the production possibility curve.

d. If if JustBorn candies developed a technology that increased productivity by one third for both products, then there will be a shift in the production possibility frontier outwards.

Prepare journal entries to record each of the following transactions. The company records purchases using the gross method and a perpetual inventory system.

Sept. 15 Purchased merchandise with an invoice price of $77,500 and credit terms of 3/5, n/15.
Sept. 29 Paid supplier the amount owed on the September 15 purchase.

Answers

Answer and Explanation:

The journal entries are shown below;

On Sept 15

Merchandise inventory $77,500

           To Accounts payable $77,500

(Being purchase of inventory is recorded)  

On Sep 29

Accounts payable $77,500

            To Cash $75,175

            To Merchandise inventory (3% of $77,500 ) $2,325

(Being payment to suppliers after discount is recorded)  

please someone should help me.....how do we solve the square root of x +8 plus the square root of x+1 equals 7.....note the question is a surd question​

Answers

The solution to the surd equation here is x = 449/49

How to solve for the value of the surd

[tex]\sqrt{x+8} +\sqrt{x-1} = 7[/tex]

We have to isolate the surds

[tex]\sqrt{x+8} =\sqrt{x-1} +7[/tex]

Square the both sides of the equation

x+8 = x-1+49-14√x-1

Separate the equations on the left and the right hand side

14√x-1 = -x-8+x-1+49

Rearrange the equation

14√x-1 = 40

square the both sides of the equation such that

196x  -1796 = 0

Divide through by 196

x = 1796/196

x = 449/49

Read more on surds here:

https://brainly.com/question/26957266

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According to real business cycle theorists, ______________ consumption resulting from the major production innovations incentivizes businesses to borrow ______________ from banks, causing the money supply to ______________.

Answers

Answer:

increase in,  more,  increase

Explanation:

Real business cycle theory states that the [tex]\text{macroeconomic fluctuations}[/tex] in any economy can be explained by the technological shocks and the changes in the productivity. All these changes in the technological growth affects the decisions of the firms on investment as well as workers or the labor supply.

Edward C. Prescott and Finn E. Kydland first gave the concept of real business cycle theory.

In the theory of real business cycle, the increase in consumption results from the major [tex]\text{production innovations incentivizes businesses}[/tex] to borrow more from the banks, and it causes the supply of money to increase.

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