Answer:
Results are below.
Explanation:
To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (2.1 - 2)*14,850
Direct material price variance= $1,485 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (7.9*1,500 - 14,850)*2.1
Direct material quantity variance= $6,300 unfavorable
To calculate the direct labor efficiency and rate variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (1,500*0.5 - 600)*5
Direct labor time (efficiency) variance= $750 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (5 - 7)*600
Direct labor rate variance= $1,200 unfavorable
Actual rate= 4,200/600= $7
Calculate amortization expense
In early January, Burger Mania acquired 100% of the common stock of the Crispy Taco restaurant chain. The purchase price allocation included the following items: $4 million, patent; $5 million, trademark considered to have an indefinite useful life; and $6 million, goodwill. Burger Mania's policy is to amortize intangible assets with finite useful lives using the straight-line method, no residual value, and a five-year service life.
What is the total amount of amortization expense that would appear in Burger Mania's income statement for the first year ended December 31 related to these items? (Enter your answers in dollars, not in millions.
Answer: $800,000
Explanation:
The total amount of amortization expense that would appear in Burger Mania's income statement for the first year ended December 31 related to these items will be:
Ammortization value = Patent value / Useful life
= $4,000,000 / 5
= $800,000
Therefore, the ammortization value is $800,000 per year.
Simon's most recent income statement is given below. Sales (8,000 units) $160,000 Less variable expenses (68,000) Contribution margin 92,000 Less fixed expenses (50,000) Net income $42,000 Required: a. Contribution margin per unit is b. If sales are doubled total variable costs will equal c. If sales are doubled total fixed costs will equal d. If 20 more units are sold, profits will increase by e. Compute how many units must be sold to break even. f. Compute how many units must be sold to achieve operating income of $60,000. g. Compute the revenue needed to achieve an after tax income of $30,000 given a tax rate of 30%.
Answer:
a. $11.50
b. $136,000
c. $50,000
d. $230
Explanation:
Contribution = sales - variable costs
Fixed costs do not vary with level of sales or production.
Mackenzie Company has a price of $38 and will issue a dividend of $ 2.00 next year. It has a beta of 1.3, the risk-free rate is 5.2%, and the market risk premium is estimated to be 4.9%. a. Estimate the equity cost of capital for Mackenzie. b. Under the CGDM, at what rate do you need to expect Mackenzie's dividends to grow to get the same equity cost of capital as in part (a)?
Answer and Explanation:
a. The computation of the equity cost of capital is shown below:
As we know that
Expected rate of return = Risk free rate + Risk Premium × Beta
= 5.20% + 4.90% × 1.30
= 11.57%
b. Now the rate at which the dividend should be grow is
Value of the stock = Expected dividend ÷ (cost of equity - growth rate)
$38 = $2 ÷ (11.57% - growth rate)
so, the growth rate is 6.31%
Hoda is creating a report in Access using the Report Wizard. Which option is not available for adding fields using the wizard?
Tables
Queries
Reports
All are available options.
Answer:
Report is not available
Explanation:
From the given options, only the Reports is not an available option for adding fields using the wizard.
To create a report using the wizard, you have to navigate through
Create -> Reports Group -> Report Wizard
The attached image will be displayed after clicking the report wizard.
See that the available options to select are (Tables/Queries).
Hence, (c) is true
Jan. 27 Received Lee's payment for principal and interest on the note dated December 13.
Mar. 3 Accepted a $5,000, 10%, 90-day note in granting a time extension on the past-due account receivable of Tomas Company.
17 Accepted a $2,000, 30-day, 9% note in granting H. Cheng a time extension on his past-due account receivable.
Apr. 16 H. Cheng dishonored his note.
May 1 Wrote off the H. Cheng account against the Allowance for Doubtful Accounts.
June 1 Received the Tomas payment for principal and interest on the note dated March 3.
Required:
Calculate the interest amounts and use those calculated values to prepare your journal entries.
Question Completion:
Dec. 13 Accepted a $9,500, 45-day, 8% note dated December 13 in granting Miranda Lee a time extension on her past-due account receivable.
Answer:
Journal Entries:
Jan. 27 Debit Cash $9,595
Credit Notes Receivable (Miranda Lee) $9,500
Credit Interest Revenue $95
To record the full settlement of note and interest.
Mar. 3 Debit Notes Receivable (Tomas Company) $5,000
Credit Accounts Receivable (Tomas Company) $5,000
To record the acceptance of a 10%, 90-day note.
17 Debit Notes Receivable (H. Cheng) $2,000
Credit Accounts Receivable (H. Cheng) $2,000
To record the acceptance of a 30-day, 9% note
Apr. 16 Debit Accounts Receivable (H. Cheng) $2,015
Credit Notes Receivable (H. Cheng) $2,000
Credit Interest Revenue $15
To record the dishonoring of Cheng's note.
May 1 debit Allowance for Doubtful Accounts $2,105
Credit Accounts Receivable (H. Cheng) $2,015)
To record the write-off of H. Cheng's account.
June 1 Debit Cash $5,125
Credit Notes Receivable (Tomas Company) $5,000
Credit Interest Revenue $125
To record the full settlement of Tomas' account.
Explanation:
a) Data and Calculations:
Jan. 27 Cash $9,595 Notes Receivable (Miranda Lee) $9,500 Interest Revenue $95
Mar. 3 Notes Receivable (Tomas Company) $5,000 Accounts Receivable (Tomas Company) $5,000, 10%, 90-day note
17 Notes Receivable (H. Cheng) $2,000 Accounts Receivable (H. Cheng) $2,000 30-day, 9% note
Apr. 16 Accounts Receivable (H. Cheng) $2,015 Notes Receivable (H. Cheng) $2,000 Interest Receivable $15
May 1 Allowance for Doubtful Accounts $2,105 Accounts Receivable (H. Cheng) $2,015)
June 1 Cash $5,125 Notes Receivable (Tomas Company) $5,000 Interest Revenue $125
Interest amounts
Before negotiating a long-term construction contract, build- ing contractors must carefully estimate the total cost of completing the project. Benzion Barlev of New York University proposed a model for total cost of a long-term contract based on the normal distribution(Journal of Business Finance and Accounting, July 1995). For one particular construction contract, Barlev assumed total cost, x, to be normally distributed with mean $850,000 and standard deviation $170,000. The revenue, R, promised to the contractor is $1,00,000.
Required:
a. The contract will be profitable if revenue exceeds total cost. What is the probability that the co ntract will be profitable for the contractor?
b. What is the probability that the project will result in a loss for the contractor?
c. Suppose the contractor has the opportunity to renegotiate the contract. What value of R should the contractor strive for in order to have a .99 probability of making a profit?
Answer:
Benzion Barlev of New York UniversityNEGOTIATION OF A LONG-TERM CONSTRUCTION CONTRACT
a. The probability that the contract will be profitable for the contractor is:
= 81%
b. The probability that the project will result in a loss for the contractor is:
= 19%
c. The value of R that the contractor should strive for in order to have a .99 probability of making a profit is:
= $1,246,100.
Explanation:
a) Data and Calculations:
Mean total cost (x) = $850,000
Standard deviation = $170,000
Revenue = $1,000,000
Probability of being profitable = (R - x)/std deviation
= ($1,000,000 - $850,000)/$170,000
= $150,000/$170,000
= 0.882
From Z table, 0.882 = 0.81057 = 81%
Probability of loss = 19% (100 - 81%)
To have a 99% (0.99) probability of making a profit, Z value = 2.33 from the Z table:
(R - x)/std deviation = 2.33
(R - x) = 2.33 * $170,000
= $396,100
(R - $850,000) = $396,100
R = $396,100 + $850,000
R = $1,246,100
You wish to take an Excel course. You may enroll at one within your school or you may take a community class at the local library. You've gathered the following information to aid in your decision-making process.
Costs/Benefits College Course Community Course
Cost $2,600 $1,390
Distance to course 0.40 miles (walking distance) 16 miles (driving distance)
Timing of course Weekday Weekend
Number of meetings 16 8
Qualitative considerations Convenience, quality of instruction Flexibility, brief duration
If you enroll in the community class, you will be unable to work at your regular job on weekends for the eight weekend days when the class meets. If you typically earn $260 per weekend shift, which option would you choose (considering enrollment cost and opportunity cost)?
a) Neither alternative
b) College course
c) Community course
d) Both alternatives
Answer:
The chosen option (considering enrollment costs and opportunity cost) is:
b) College course.
Explanation:
a) Data and Calculations:
Costs/Benefits
College Course Community Course
Cost $2,600 $1,390
Opportunity costs -2,080 2,080
Net costs $520 $3,470
Distance to course 0.40 miles 16 miles
(walking distance) (driving distance)
Timing of course Weekday Weekend
Number of meetings 16 8
b) With the College course option, you will earn $2,080 ($260 * 8) weekdays to offset part of the enrollment cost. With the Community course option, $2,080 will be lost in opportunity cost, thereby increasing the total costs incurred. These costs are apart from the driving costs associated with traveling 16 miles to the Community Course at the local library.
Sicilian Defence, a division of Queen's Gambit Corp., has a net operating income of $60,000 and average operating assets of $300,000. The minimum required rate of return for the company is 15%. If the manager of the Sicilian Defence division is evaluated based on residual income, will she want to make an investment of $100,000 that would generate additional net operating income of $18,000 per year?
Answer:
Queen's Gambit Corp.
Sicilian Defence Division
If the manager of the Sicilian Defence division is evaluated based on residual income, will she want to make an investment of $100,000 that would generate additional net operating income of $18,000 per year?
Yes.
The additional investment yields comparable positive Residual Income.
Explanation:
a) Data and Calculations:
Net operating income of Sicilian Defence Division = $60,000
Average operating assets = $300,000
Required rate of return for the company = 15%
Residual income (RI)= Operating Income - (Operating Assets x Required Rate of Return)
= $60,000 - ($300,000 * 15%)
= $60,000 - $45,000
= $15,000
Investment cost = $100,000
Additional net operating income = $18,000
Residual Income = $18,000 - ($100,000 * 15%)
= $18,000 - $15,000
= $3,000
Total residual income = $78,000 - ($400,000 * 15%)
= $78,000 - $60,000
= $18,000
Suppose Nike, Inc. reported the following plant assets and intangible assets for the year ended May 31, 2022 (in millions): other plant assets $935.0, land $220.0, patents and trademarks (at cost) $510.0, machinery and equipment $2,160.0, buildings $980.0, goodwill (at cost) $210.0, accumulated amortization $50.0, and accumulated depreciation $2,200. Prepare a partial balance sheet for Nike for these items.
Answer:
NIKE, INC.
Partial Balance Sheet as of May 31, 2022
(in millions)
Property, Plant and Equipment
Land $220.0
Buildings $980.0
Machinery and Equipment $2160.0
Other Plant Assets $935.0
Less: Accumulated Depreciation $2200.0 $1875.0
Total Property, Plant and Equipment $2095.0
Intangible Assets:
Goodwill $210.0
Patents and Trademarks $510.0
Less: Accumulated Amortization $50.0 $460.0
Total Intangible Assets $670.0
V Boutique is a fashion house that designs, manufactures, and sells evening gowns. Their lowest-selling design is a vibrant green strapless gown in Dupioni silk. V Boutique is considering lowering the selling price of the gown to stimulate demand. However, before lowering the price, they must evaluate the total costs associated with the gown.
. Fabric and materials - $62/gown
. Labor to construct the gown - $40/gown
. Equipment cost for these gowns (steamer and sewing machines) $3,000
V Boutique anticipates selling 500 gowns after lowering the selling price. Assuming their projection is accurate, what is the total average cost they will incur per gown?
Answer:
V. Boutique
Assuming their projection of 500 gowns is accurate, the total average cost they will incur per gown is:
= $108.
Explanation:
a) Data and Calculations:
Unit variable costs:
Fabric and materials per gown = $62
Labor cost per gown to construct the gown = $40
Total unit variable costs per gown = $102
Unit fixed costs:
Equipment cost = $3,000/500 $6
Total average costs per gown = $108
b) The average cost per gown equals the unit costs (variable costs per unit and the fixed costs per unit). V. Boutique incurs a total equipment cost of $3,000 for the 500 gowns. This means that each gown consumes $6 ($3,000/500) in equipment costs.
Whistle Works sells each whistle for $12. It takes 3 ounces of metal to produce each whistle at a cost of $0.50 per ounce. They prefer to have 10% of materials required for the following month's production in ending inventory as well. How many ounces of direct materials does Whistle Works need to purchase in October to meet production needs
The question is incomplete. The complete Question is as follows,
Whistle Works manufacturers safety whistle keychains. They have the following information available to prepare their master budget:
Units to be produced
October 4,500
November 4,750
December 5,200
Whistle Works sells each whistle for $12. It takes 3 ounces of metal to produce each whistle at a cost of $0.50 per ounce. They prefer to have 10% of materials required for the following month's production in ending inventory as well. How many ounces of direct materials does Whistle Works need to purchase in October to meet production needs?
A) 4,500 ounces
B) 13,575 ounces
C) 13,425 ounces
D) 4,525 ounces
Answer:
Purchases = 13575 ounces
Option B is the correct answer
Explanation:
To calculate the purchases of material for October, we first need to calculate the inventory needed to produce the desired number of units in October along with the desired ending inventory and adjust it for the available opening inventory at start of October.
Material available at Start - October = 10% * 4500 units * 3 ounces per unit Material available at Start - October = 1350 ounces
Material required at end - October = 10% * 4750 units * 3 ounces per unit
Material required at end - October = 1425 ounces
Material required to produce required units in October = 4500 * 3 = 13500
Production = Opening Inventory + Purchases - Closing Inventory
13500 = 1350 + Purchases - 1425
13500 + 1425 - 1350 = Purchases
Purchases = 13575 ounces
Orange Corporation has gathered the following data on a proposed investment project: Investment in depreciable equipment $ 520,000 Annual net cash flows $ 78,000 Life of the equipment 10 years Salvage value $ 0 Discount rate 6 % The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period for the investment would be: Multiple Choice 1.0 years 0.2 years 4.7 years 6.7 years
Answer:
6.7 years
Explanation:
According to the scenario, computation of the given data are as follows,
Investment = $520,000
Net cash flow = $78,000
Life of equipment = 10 years
So, we can calculate the payback period for investment by using following formula,
Payback period for investment = Initial Investment ÷ Net cash flow
= $520,000 ÷ $78,000
= 6.67 years or 6.7 years
Exercise
1. State and explain 5 characteristics of the
youth
_____ Web sites are dedicated to employment opportunities with a given city, state, or country.
Education
Industry
Government
Corporate
Answer:
the answer is government
Which of the following is a true statement?
(A) New products introduce risk into a portfolio as well as future potential profits.
(B) A company’s product portfolio is assured of success by adding new products.
(C) New products bring great rewards with little risk.
Answer:
I think it's C, New products bring great rewards with little risk
The correct option is (A) .As we know introducing a product is not that much fast and easy because it automatically contains greater risk in it.
What does the new product mainly contain?Introducing a new product is the most important component of a product portfolio. As it contains greater risk but it also contains greater rewards too.
How can we explain it with a help of an example?When a company launches new products it automatically contains the risk that if it would be opened in the market what would be the customer's reaction, whether a customer would like it or not. If the customer like the product risk would convert into a reward for the company and if not then it would get a loss to the company. This profit and loss to the company affect the portfolio the most.
Learn more about portfolio here: https://brainly.com/question/14213764
#SPJ2
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,000 units): Direct materials $180,000 Direct labor 240,000 Variable factory overhead 280,000 Operating expenses: Variable operating expenses $130,000 Fixed operating expenses 50,000 180,000 If 1,600 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is a.$66,400 b.$64,000 c.$78,400 d.$56,000
Answer:
d.$56,000
Explanation:
The computation of the amount of inventory that would be reported on the variable costing balance sheet is shown below:
But before that following calculations need to be done
The total production cost
= Direct material + direct labor + variable factory overhead
= $180,000 + $240,000 + $280,000
= $700,000
Now the production cost per unit is
= $700,000 ÷ 20,000 units
= $35 per unit
Now the amount of inventory is
= 1,600 units × $35 per unit
= $56,000
You are provided with the following information for Sandhill Co., effective as of its April 30, 2022, year-end.
Accounts payable $ 848
Accounts receivable 900
Accumulated depreciation—equipment 630
Cash 1,360
Common stock 16,300
Cost of goods sold 1,000
Depreciation expense 315
Dividends 310
Equipment 2,500
Goodwill 1,900
Income tax expense 175
Income taxes payable 135
Insurance expense 360
Interest expense 460
Inventory 950
Investment in land 15,000
Land 3,200
Mortgage payable (long-term) 4,500
Notes payable (short-term) 62
Prepaid insurance 70
Retained earnings (beginning) 1,700
Salaries and wages expense 850
Salaries and wages payable 275
Sales revenue 6,200
Stock investments (short-term) 1,300
Prepare an income statement for Sandhill Co. for the year ended April 30, 2022.
Prepare a retained earnings statement for Sandhill Co. for the year ended April 30, 2022. (List items that increase retained earnings first.)
Answer:
SANDHILL CO.
Income Statement
For the Year Ended April 30, 2022
Revenues
Sales revenue $6,200
Expenses
Cost of Goods Sold $1,000
Depreciation expense $315
Income tax expense $175
Insurance expense $360
Interest expense $460
Salaries & Wages expenses $850
Total Expenses $3,160
Net Income $3,040
SANDHILL CO.
Retained Earnings Statement
For the Year Ended April 30, 2022
Retained Earnings, May 1, 2021 $1,700
Add: Net Income $3,040 $4,740
Less: Dividends $310
Retained Earnings, April 30, 2022 $4,430
You are the manager for a Pizza restaurant. Currently, your restaurant pre-makes pizzas that are ordered the most to increase the number of pizzas being made on time for your customers. Over time, many customers have complained that their pizzas were cold upon delivery and not fresh, requesting refunds or remakes of their pizza. Your location is losing money from these wasteful practices, therefore, you want to create a Kanban based on the following basic principles:
1. A later process tells an earlier process when new items are required. This means that unless a customer orders a pizza, no pizzas will be made. Pull!
2. The earlier process produces what the later process needs.
3. No Items can be made without a Kanban card (order request). This allows the process to be transparent so everyone knows what is going on.
4. Defects are not passed on to the next stage.Create a Kanban board for your pizza company that delivers. You must have 4-6 columns with headings for each.
Required:
Decide what your Kanban cards will represent. Set Rules for your Kanban.
Answer:
RULES OF KANBAN BOARD
Yellow – A Slice of Pizza
• Blue – Full Pizza
• Green – Soda
• Green jumps from Queue to Pack only
• No pizza will be delivered without quality check
• Pizza will return to the backlog, if it is found with inferior quality during quality check
• A unique token number will be given for each order
• Orders with multiple pizza or a combo order will be given same unique token number
• Pizza will be prepared in the order of token number
• Token number will include initials “C” for carry out, “D” for dine in
THE ATTACHED IMAGE HAS THE REPRESENTATIONS OF KANBAN CARDS.
If Congress wanted to help the economy out of a recession, they would be most likely to: check all that apply Group of answer choices increase transfer payments increase interest rates decrease taxes reduce government spending
Answer:
increase transfer payments
decrease taxes
Explanation:
A recession is when the GDP of a country for two consecutive quarters is negative
to help a country out of a recession, expansionary fiscal policies have to be undertaken
Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes.
increasing interest rate is a monetary policy
On January 8, 2012, Speedway Delivery Service purchased a truck at a cost of $65,000. Before placing the truck in service, Speedway spent $4,000 painting it, $2,500 replacing tires, and $8,000 overhauling the engine. The truck should remain in service for five years and have a residual value of $6,000. The truck’s annual mileage is expected to be 22,000 miles in each of the first four years and 12,000 miles in the fifth year—100,000 miles in total. In deciding which depreciation method to use, David Greer, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-line, units-of-production, and double-declining-balance).
Requirements
1. Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation, and asset book value.
2. Speedway prepares financial statements using the depreciation method that reports the highest net income in the early years of asset use. For income tax purposes, the company uses the depreciation method that minimizes income taxes in the early years. Consider the first year that Speedway uses the truck. Identify the depreciation methods that meet the general manager’s objectives, assuming the income tax authorities permit the use of any of the methods.
Answer:
Speedway Delivery Service
1. Depreciation Schedules:
Depreciation Schedule (Straight-line Method)
Date Cost Value Depreciation Accumulated Net Book
Expense Depreciation Value
December 31, 2012 $79,500 $14,700 $14,700 $64,800
December 31, 2013 $79,500 $14,700 $29,400 $50,100
December 31, 2014 $79,500 $14,700 $44,100 $35,400
December 31, 2015 $79,500 $14,700 $58,800 $20,700
December 31, 2016 $79,500 $14,700 $73,500 $6,000
Depreciation Schedule (Units-of-production Method)
Date Cost Value Depreciation Accumulated Net Book
Expense Depreciation Value
December 31, 2012 $79,500 $16,170 $16,170 $63,330
December 31, 2013 $79,500 $16,170 $32,340 $47,160
December 31, 2014 $79,500 $16,170 $48,510 $30,990
December 31, 2015 $79,500 $16,170 $64,680 $14,820
December 31, 2016 $79,500 $8,820 $73,500 $6,000
Depreciation Schedule (Double-declining-balance Method)
Date Cost Value Depreciation Accumulated Net Book
Expense Depreciation Value
December 31, 2012 $79,500 $31,800 $31,800 $47,700
December 31, 2013 $79,500 $19,080 $50,880 $28,620
December 31, 2014 $79,500 $11,448 $62,328 $17,172
December 31, 2015 $79,500 $6,869 $69,197 $10,303
December 31, 2016 $79,500 $4,303 $73,500 $6,000
2. The straight-line method reports the highest net income in the early years while the double-declining-balance method minimizes the income taxes in the early years.
Explanation:
a) Data and Calculations:
January 8, 2012:
Purchase of a delivery truck = $65,000
Cost of painting the truck = 4,000
Cost of replacing the tires = 2,500
Cost of overhauling the engine 8,000
Total costs = $79,500
Residual value = 6,000
Depreciable amount = $73,500
Estimated useful life = 5 years
Straight-line depreciation Method:
Annual depreciation expense = $14,700 ($73,500/5)
Units-of-production Method:
Depreciation rate per mile = $0.735 ($73,500/100,000)
For 22,000 miles, depreciation expense = $16,170 ($0.735 * 22,000)
For 12 ,000 miles, depreciation expense = $8,820 ($0.735 * 12,000)
Double-declining-balance method:
Depreciation rate = 100/5 * 2 = 40%
First year's depreciation expense = $31,800 ($79,500 * 40%)
Declined balance = $47,700 ($79,500 - $31,800)
Second year's depreciation expense = $19,080 ($47,700 * 40%)
Declined balance = $28,620 ($47,700 - $19,080)
Third year's depreciation expense = $11,448 ($28,620 * 40%)
Declined balance = $17,172 ($28,620 - $11,448)
Fourth year's depreciation expense = $6,869 ($17,172 * 40%)
Declined balance = $10,303 ($17,172 - $6,869)
Fifth year's depreciation expense = $4,303 ($10,303 - $6,000)
You do not start saving money until age 46. On your 46th birthday you dutifully invest $10,000 each year until you finish your deposits when you reach the age of 65 (you make the last deposit on your 65th birthday). The annual interest rate is 8% that you earn on your deposits. Your brother starts saving $10,000 a year on his 36th birthday but stops making deposits after 10 years. He then withdraws the compounded sum when he reaches age 65. How much more money will your brother have than you at age 65?
Answer:
$217,600
Explanation:
The computation of the more money is shown below:
As we know that
The Future value of the annuity is
= P × { (1+r)^n - 1} ÷ r
= $10,000 × (1+.08)^20 - 1) ÷ 0.08
= $457,619.64
For 36 years to 46 years,
FV = $10,000 × (1+.08)^10 - 1) ÷ 0.08
= $144,865.62
Now
FV = PV(1+r)^n
= $144,865.62× (1+.08)^20
= $675,212.47
Now the more amount would be
= $675,212.47 - $457,619.64
= $217592.83
= $217,600
n 1982 the inflation rate hit 16%. Suppose that the average cost of a textbook in 1982 was $25. What was the expected cost in the year 2017 if we project this rate of inflation on the cost? (Assume continuous compounding. Round your answer to the nearest cent.) If the average cost of a textbook in 2012 was $150, what is the actual inflation rate (rounded to the nearest tenth percent)?
Answer:
Total number of years = 35
a. Expected cost in 2017 = $25 * e^(35*0.16)
Expected cost in 2017 = $25 * e^5.6
Expected cost in 2017 = $25 * 270.42
Expected cost in 2017 = $6,760.50
b. If the average cost of a textbook in 2012 was $150, then the actual inflation rate:
150 = 25 * e^(r*t)
150 = 25 * e^(r*30)
6 = e^(r*30)
Taking log base e on both side
30r = Ln6
30r = 1.7918
r = 1.7918/30
r = 0.05972667
r = 5.97%
So, actual inflation rate is 5.97%
Which of the following is NOT one of the steps taken in the financial planning process? a. Develop a set of forecasted financial statements under alternative versions of the operating plan in order to analyze the effects of different operating procedures on projected profits and financial ratios. b. Consult with key competitors about the optimal set of prices to charge, i.e., the prices that will maximize profits for our firm and its competitors. c. Forecast the funds that will be generated internally. If internal funds are insufficient to cover the required new investment, then identify sources from which the required external capital can be raised. d. Determine the amount of capital that will be needed to support the plan. e. Monitor operations after implementing the plan to spot any deviations and then take corrective actions.
Answer:
B)Consult with key competitors about the optimal set of prices to charge, i.e., the prices that will maximize profits for our firm and its competitors.
Explanation:
The financial planning process can be regarded as series of steps which states best way of using money and investments as well as other assets so that financial goals can be potentially achieved. Most of the financial plans has its focus savings of goals as well as payoff goals even estate planning goals so that roadmap to financial freedom can be set.
The steps that can be taken in the financial planning process are;
✓ Forecast the funds that will be generated internally. If internal funds are insufficient to cover the required new investment, then identify sources from which the required external capital can be raised.
✓Develop a set of forecasted financial statements under alternative versions of the operating plan in order to analyze the effects of different operating procedures on projected profits and financial ratios
✓Determine the amount of capital that will be needed to support the plan. e. Monitor operations
Joint products A and B emerge from common processing costs of $100,000 and yield 2,000 units of Product A and 1,000 units of Product B. Product A can be sold for $100 per unit. Product B can be sold for $120 per unit. The amount of joint costs allocated to Product A (if joint costs are allocated on the basis of relative sales value) will be $ (rounded to nearest dollar).
Answer:
Product A - Joint Cost Allocated = $62500
Explanation:
To calculate the allocation of joint costs to Product A, we must first calculate the sales revenue or value for both products.
Total sales value - Product A = 100 * 2000 = $200000
Total sales value - Product B = 120 * 1000 = $120000
Total Sales Value = 200000 + 120000 = $320000
The amount of Joint costs that will be allocated to Product A will be,
Product A - Joint Cost Allocated = (200000 / 320000) * 100000
Product A - Joint Cost Allocated = $62500
The following items were selected from among the transactions completed by Aston Martin Inc. during the current year:
Apr. 15 Borrowed $225,000 from Audi Company, issuing a 30-day 6% not for that amount.
May 1. Purchased equipment by issuing a $320,000, 180-day not to Spyder Manufacturing Co., which disconted the not at the rate of 6%.
15. Paid Audi Company the interest due on the note of April 15 and renewed the loan by issuing a new 60-day, 8% not for $225,000. (Record both the debit and credit to the notes payable account.)
July 14. Paid Audi Company the amount due on the note of May 15.
Aug. 16. Purchased merchandise on the account for Exige Do., $90,000, terms, n/30.
Sept. 15. Issued a 45-day, 6% not for $90,000 to Exige Co., on account.
Oct. 28. Paid Spyder Manufacturing Co. the amount due on the note of May 1.
30. Paid Exige Co. the amount owed on the not of September 15.
Nov. 16. Purchased store equipment for Gallardo Co. for $20,000 each, coming due at 30-day intervals. Dec. 16. Paid the amount due Gallardo Co. on the first note in the series issued on November 16.
28. Settled a personal injoury lawsuit with a customer for $87,500, to be paid in January. Aston Martin Inc. accrued the loss in a litigation claims payable account.
Instructions
1. Journalize the transactions.
2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year:
a. Product warranty cost, %$26,800.
b. Interest on the 19 remaining notes owed to Gallardo Co.
Question Completion:
November 16 - Purchased store equipment from Gallardo Co. for $450,000, paying $50,000 and issuing a series of twenty 9% notes for $20,000 each, coming due at 30-day intervals.
Answer:
Aston Martin, Inc.
Apr. 15 Debit Cash $225,000
Credit 6% Notes payable (Audi Company) $225,000
To record the amount borrowed by issuing a 30-day 6% note.
May 1. Debit Equipment $320,000
Credit 6% Notes Payable (Spyder Manufacturing Co.) $320,000
To record the purchase of equipment by issuing a $320,000, 180-day note at the rate of 6%.
May 15. Debit Interest expense $1,125
Credit Cash $1,125
To record the payment of interest on note.
May 15 Debit 6% Notes payable (Audi Company) $225,000
Credit 8% Notes payable (Audi Company) $225,000
To record the exchange of notes, by issuing a new 60-day, 8% note for $225,000
July 14 Debit 8% Notes payable (Audi Company) $225,000
Credit Interest expense $3,000
Credit Cash $228,000
To record the full settlement of note with interest.
Aug. 16. Debit Inventory $90,000
Credit Accounts payable (Exige Co.) $90,000
To record the purchase of merchandise on account, terms, n/30.
Sept. 15. Debit Accounts payable (Exige Co.) $90,000
Credit 6% Note Payable (Exige Co.) $90,000
To record the settlement of account by issuing a 45-day, 6% note to Exige Co.
Oct. 28. Debit 6% Notes Payable (Spyder Manufacturing Co.) $320,000
Debit Interest expense $9,600
Credit Cash $329,600
To record the settlement of notes with interest.
30. Debit 6% Note Payable (Exige Co.) $90,000
Debit Interest Expense $675
Credit Cash $90,675
To record the settlement of notes with interest.
November 16 Debit Store equipment $450,000
Credit 9% Note payable (Gallardo Co.) $400,000
Credit Cash $50,000
To record the issuing of a series of twenty 9% notes for $20,000 each, coming due at 30-day intervals.
Dec. 16. Debit 9% Note payable (Gallardo Co.) $20,000
Debit Interest expense $3,000
Credit Cash $23,000
To record the settlement of the first note with interest on all the notes.
Dec. 28. Debit Litigation Claims Loss $87,500
Credit Litigation Claims Payable $87,500
To record the litigation loss.
Explanation:
a) Data and Calculations:
Apr. 15 Cash $225,000 6% Notes payable (Audi Company) $225,000
, issuing a 30-day 6% note for that amount.
May 1. Equipment $320,000 6% Notes Payable (Spyder Manufacturing Co.) $320,000 by issuing a $320,000, 180-day note at the rate of 6%.
15. Interest expense $1,125 Cash $1,125
6% Notes payable (Audi Company) $225,000 8% Notes payable (Audi Company) $225,000
issuing a new 60-day, 8% not for $225,000
July 14. 8% Notes payable (Audi Company) $225,000 Interest expense $3,000 Cash $228,000
Aug. 16. Inventory $90,000 Accounts payable (Exige Co.) $90,000
, terms, n/30.
Sept. 15. Accounts payable (Exige Co.) $90,000 6% Note Payable (Exige Co.) $90,000 Issued a 45-day, 6% not for $90,000 to Exige Co., on account.
Oct. 28. 6% Notes Payable (Spyder Manufacturing Co.) $320,000 Interest expense $9,600 Cash $329,600
30. 6% Note Payable (Exige Co.) $90,000 Interest Expense $675 Cash $90,675
November 16 - Store equipment $450,000 9% Note payable (Gallardo Co.) $400,000 Cash $50,000
issuing a series of twenty 9% notes for $20,000 each, coming due at 30-day intervals.
Dec. 16. 9% Note payable (Gallardo Co.) $20,000 Interest expense $3,000 Cash $23,000
28. Litigation Claims Loss $87,500 Litigation Claims Payable$87,500
Peyton sells an office building and the associated land on May 1 of the current year. Under the terms of the sales contract, Peyton is to receive $2,408,400 in cash. The purchaser is to assume Peyton's mortgage of $1,445,040 on the property. To enable the purchaser to obtain adequate financing, Peyton is to pay the $28,901 in points charged by the lender. The broker's commission on the sale is $96,336. What is Peyton's amount realized
Answer:
$3,728,203
Explanation:
Particulars Amount
Cash Received $2,408,400
Add: Mortgage assume by purchaser $1,445,040
Less: Broker's commission ($96,336)
Less: Points paid by Peyton ($28,901)
Amount realized $3,728,203
Communication starts with
sender
is answer..
........
Which of the following is the second step in the hiring process?
Select the best answer choice.
A.
the submission of the application or resume
B.
the interview
C.
sending a thank-you note
D.
getting hired for the position
Answer:
B) The interview
Explanation:
The second step in the hiring process is to plan your employee recruitment. Recruitment planning meetings or emails identify the job description or specification for the position so you know the skills and experience you seek.
Hope I helped! Brainiest plz!♥
Have a nice morning!
-Abby
A company has designed a new product and tested the prototype. what is the next step in product development?
A. test-market the product
B. launch the product
C. evaluate ideas
D. generate ideas
Answer:
A company has designed a new product and tested the prototype. What is the next step in product development ? Test - market the product.
Explanation:
Answer option A) Test - market the product.
The Smith family wants to relocate to a neighborhood with better schools before their three-year-old goes to kindergarten. They talked with Byron about properties he has for sale in neighborhoods they would like to live in. They also mentioned to Byron that they both work and may need someone to help with in-home care for their child. Byron gave them Taylor’s name to call about childcare. The Smiths also said they were having a hard time getting loan approval, so Byron suggested that they call Travis. Which best describes the jobs performed by Byron, Taylor, and Travis?
a) Byron is a Customer Service Representative, Taylor is a Child Care Worker, and Travis is a Loan Counselor.
b) Byron is a Real Estate Manager, Taylor is a Nanny, and Travis is a Loan Counselor.
c) Byron is a Real Estate Manager, Taylor is a Preschool Teacher, and Travis is a Customer Service Representative.
d) Byron is a Home Counselor, Taylor is a Nanny, and Travis is a Property Manager.
Answer:
the correct answer is B)
Explanation:
Given that they spoke to Byron about properties that he wants to sell, that means he is a Real Estate Manager. Taylor came up because they needed in-home care. That makes Taylor a Nanny because Nannies are professionals who take care of babies in their own homes.
Loan counselors have no other major business besides advising people on issues relating to taking up a loan. Therefore that makes Travis a loan Counselor.
Cheers
