Investment companies or mutual funds that continue to sell and repurchase shares after their initial public offerings are referred to as

Answer:

True.

Explanation:

The 2019 Budgetary Comparison Schedule will include the $25,000 whether or not the encumbrances lapse at the year-end, either as outstanding encumbrances or settled encumbrances.  These $25,000 encumbrances are budget reservations of appropriations so that they can be used to settle specified expenditures in the future.  The purpose of making these reservations is to signal that the expenditures have been earmarked so that their cash allocations are not used for other purposes.

Answer:

for anniversary = 125

for wedding = 112.5

anniversary

Explanation:

Labour productivity = number of meals / total number of workers

for anniversary = 375 / 3 = 125

for wedding = 225 / 2 = 112.5

labour productivity is higher for the anniversary because one unit of labour produces more meals when compared to the wedding.

Answer:

The company will decide to build the factory if the interest rate is 12.47 %.

Explanation:

The required interest rate r, can be determined as follows ;

PV = - $125 million

n = 4

Pmt = $0

P/yr = 1

FV = $200 million

r = ?

Using a Financial Calculator, the required interest rate r, is 12.4683 or 12.47 % (2 decimal places)

Answer:

Under current tax law, no option is correct. Before 2018, option C would have been right.

Explanation:

Currently under the Tax Cuts and Jobs Act (from Jan. 2018 until Dec. 2025) you can only deduct interests on mortgages used to purchase, build or improve your home. In this case, Jorge will only be able to deduct the interests paid on the $130,000 he owed for the first mortgage.

Interests on home equity loans will again be deductible (up to $100,000) starting Jan. 2026.

Answer:

Out the money.

Explanation:

A PHLX Jan 80 Swiss Franc Call contract is quoted at 2 when the Swiss Franc closes at 77. The contract is out the money.

An out the money ultimately implies that an option only has an extrinsic value but no intrinsic value. The extrinsic value of an option refers to the difference between its intrinsic value and the market value (premium). An extrinsic value is affected by the volatility in the market and its time value. The intrinsic value of an asset refers to the calculated, true or real value of an asset and is solely affected by internal factors.

A call is out the money when the strike price is greater than or above the underlying price of an asset. This simply means that, it's market value (price) has fallen below its strike price.

In this scenario, the market price of the call is 77 while its strike price is 80; thus, the call option is out the money by 3.

Complete Question:

Edna is a leading brain surgeon in the United States. She enters into a contract to perform a complicated brain surgery on Ben. However, since Edna is very busy, she wants to assign this contract to a less experienced surgeon, Charles. This would be Charles's first operation of this type. Ben can object to this assignment and prevent it because the contract between Ben and Edna is a(n):

Group of answer choices.

A. contract for services to be performed in the future.

B. contract involving personal skill.

C. services contract.

D. employment contract.

Answer:

B. contract involving personal skill.

Explanation:

In this scenario, Edna a leading brain surgeon in the United States enters into a contract to perform a complicated brain surgery on Ben. However, Edna is very busy and wants to assign this contract to a less experienced surgeon, Charles which would be his first operation of this type. Hence, Ben can object to this assignment (brain surgery) and prevent it because the contract between Ben and Edna is a contract involving personal skill.

Apparently, it can be deduced that Edna has competent and professional skills which is the reason why she's the leading brain surgeon in USA. Ben having this information at his disposal chose to go into the contract with Edna, who is an experienced brain surgeon. Therefore, the contract between the two (2) parties is solely based on Edna's personal skill.

Answer: $4000

Explanation:

A margin account is typically offered by a brokerage firms so that investors can borrow money in order to purchase securities.

A customer sells short 1,000 shares of ABC stock at $4 in a margin account. The customer must deposit:

= $4 × 1000

= $4000

Answer:

Is a contra account to bonds payable

Explanation:

Answer:

Option A. 0.79

Explanation:

All we have to do is convert the levered beta into unlevered beta (100% equity financed). So we will use the following formula to find unlevered beta:

Unlevered Beta = Levered Beta /  (1   +  (1+T)* D/E)

Here,

Tax rate is 40%

Debt is 40%

Equity is 60%

And Levered Beta is 1.10

Now by putting values, we have:

Unlevered Beta =     1.10   / (1   +  (1 - 0.4)* 40% / 60%)

Unlevered Beta =     1.10  / (1 +   0.6 * .667)

Unlevered Beta =     1.10  / (1 +    0.4)

Unlevered Beta =     1.10  / (1.4)

Unlevered Beta =     0.786 which after rounding off we have 0.79

Answer:

Opportunity cost = $192,900

Explanation:

The opportunity cost is the "cost" incurred by not enjoying the benefit associated with the best alternative choice

DATA

Current value = $212,900

Selling expense = $20,000

Opportunity cost = Current value - selling expense

Opportunity cost = $212,900 - $20,000

Opportunity cost = $192,900

Here Sue is Decide to convert the house into professional office space she would lose te opportunity cost of $192,000

the answer is this true

A firm is using experience curve pricing when it prices high worldwide in an attempt to position itself as a market leader is a false statement.

Pricing for Experience Curve is Depending on the company's level of expertise in creating the goods, the price is set. Every time a corporation doubles its expertise in creating a product, the cost of selling that product or service drops by 10% to 30%.

A business can use less time and resources or produce products more effectively as it gains experience. As a result, it may provide a lower price since costs are reduced.

The pricing of a product at a lower than average-cost level on the theory that costs will reduce as manufacturing expertise improves allows the product to become cheaper as it continues through the product life cycle.

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Answer:

10.60%

Explanation:

The compound annual growth rate formula stated below can be used to determine the annual rate of return on the stock investment.

CAGR=(future value/present value)^(1/n)-1

future value is the future worth of the stock after three years i.e100*$23=$2300

Present value is the initial cost of the stock which is 100*$17=$1700

n is the number of years the stocks have been owned

CAGR=($2300/$1700)^(1/3)-1=10.60%

Answer:  $19

Explanation:

The Contribution Margin is defined as the Sales the Variable costs.

The Contribution Margin per patron is therefore;

= Ticket Price - Variable Cost which is the cost of dinner

= 40 - 21

= $19

Answer:

D

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

Cash flow in year 0 = $-109,332

Cash flow each year from year 1 to 4 = $36,000

IRR = 12%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

Answer:

a. What is the company’s total book value of debt?

total book value of debt = $60,000,000 + $35,000,000 = $95,000,000

b. What is the company’s total market value of debt?

total market value of debt = ($60,000,000 x 1.07) + ($35,000,000 x 0.76) = $64,200,000 + $26,600,000 = $90,800,000

c. What is your best estimate of the after tax cost of debt?

weight of debt (using market value):

$64,200,000 / $90,800,000 = 70.7%

$26,600,000 / $90,800,000 = 29.3%

YTM bond I = {1,200,000 + [(60,000,000 - 64,200,000)/56]} / [(60,000,000 + 64,200,000)/2] = 1,125,000 / 62,100,000 = 1.8115 x 2 = 3.62%

YTM bond II = (35 / 26.6)¹/¹⁰ - 1 = 2.78%

after tax cost of debt = (0.707 x 3.62% x 0.79) + (0.293 x 2.78% x 0.79) = 2.02% + 0.64% = 2.66%

Answer:

The correct option is option A) 16.4%.

Explanation:

Note: This question is not complete as all the important data are omitted from it. The complete question is therefore provided before answering the question as follows:

Your estimate of the market risk premium is 9%. The risk-free rate of return is 3.8% and General Motors has a beta of 1.4. According to the Capital Asset Pricing Model (CAPM), what is its expected return?

Options:

A) 16.4%

B) 17.2%

C) 14.8%

D) 15.6%

The question is now answered as followed:

Capital asset pricing model (CAPM) can be described as a model that is employed to compute a theoretical required rate of an asset in order decide whether or not to add assets a portfolio of investment that is well-diversified.

According to the Capital Asset Pricing Model (CAPM), the expected return can be calculated using the following formula:

Expected return = Risk-free rate + (Beta * Market ris premium) .......... (1)

Where;

Risk-free rate of return = 3.8%

Market risk premium = 9%

Beta = 1.4

Substitute the values into equation (1), we have:

Expected return = 3.8% + (1.4 * 9%) = 16.40%

Therefore, the correct option is option A) 16.4%.

Answer:

1)

a. Raw materials purchased for cash, $170,000.

Dr Materials inventory 170,000

   Cr Cash 170,000

b. Raw materials requisitioned for use in production, $141,000 (materials costing $121,000 were charged directly to jobs; the remaining materials were indirect).

Dr Work in process: direct materials 121,000

Dr Manufacturing overhead 20,000

    Cr Materials inventory 141,000

c. Costs for employee services were incurred as follows:

Dr Work in process: direct labor 156,000

Dr Manufacturing overhead 185,900

Dr Sales salaries expense 22,000

Dr Administrative salaries expense 50,000

    Cr Cash 413,900

d. Rent for the year was $18,800 ($13,600 of this amount related to factory operations, and the remainder related to selling)

Dr Manufacturing overhead 13,600

Dr Rent expense 5,200

    Cr Cash 18,800

e.Utility costs incurred in the factory, $16,000.

Dr Manufacturing overhead 16,000

    Cr Cash 16,000

f. Advertising costs incurred, $13,000.

Dr Advertising expenses 13,000

    Cr Cash 13,000

g. Depreciation recorded on equipment, $21,000. ($15,000 of this amount was on equipment used in factory operations; the remaining $6,000 was on equipment used in selling and administrative activities.)

Dr Manufacturing overhead 15,000

Dr Depreciation expense 6,000

    Cr Accumulated depreciation: manufacturing equipment 15,000

    Cr Accumulated depreciation: office equipment 6,000

h. Manufacturing overhead cost was applied to jobs, $?

Dr Work in process 265,200

     Cr Manufacturing overhead 265,200 (170% of direct labor)

i. Goods that had cost $226,000 to manufacture according to their job cost sheets were completed.

Dr Finished goods inventory 226,000

    Cr Work in process 226,000

j. Sales for the year totaled $514,000. The total cost to manufacture these goods according to their job cost sheets was $220,000.

Dr Cash 514,000

    Cr Sales revenue 514,000

Dr Cost of goods sold 220,000

    Cr Finished goods inventory 220,000

2)

Dr Manufacturing overhead ($265,200 - $250,500) 14,700

    Cr Cost of goods sold 14,700

3) Gold Nest Company

Income Statement

Sales revenue                                                                        $514,000

- Cost of goods sold                                                             -$205,300

Gross profit                                                                             $308,700

Operating expenses:

Operating profit                                                                        $212,500

1. The preparation of journal entries to record the transactions for Gold Nest Company of Guandong, China, is as as follows:

a. Debit Raw materials $170,000

Credit Cash $170,000

b. Debit Work in Process $121,000

Debit Manufacturing Overhead $20,000

Credit Raw materials $141,000

c. Debit Work in Process $156,000

Debit Manufacturing Overhead $185,900

Credit Payroll Expenses $341,900

Debit Selling and Administrative Expenses $22,000

Credit Sales commissions $22,000

Debit Selling and Administrative Expenses $50,000

Credit Administrative salaries $50,000

d. Debit Manufacturing Overhead $13,600

Debit Selling and Administrative Expenses $5,200

Credit Rent Expenses $18,800

e. Debit Manufacturing Overhead $16,000

Credit Utilities Expense $16,000

f. Debit Selling and Administrative Expenses $13,000

Advertising costs $13,000

g. Debit Manufacturing Overhead $15,000

Debit Selling and Administrative Expenses $6,000

Credit Depreciation Expenses $21,000

h. Debit Work in Process $265,200

Credit Manufacturing Overhead (Applied) $265,200 ($1.70 x $156,000)

i. Debit Finished Goods Inventory $226,000

Credit Work in Process $226,000

j. Debit Cash $514,000

Credit Sales Revenue $514,000

j. Debit Cost of goods sold $220,000

Credit Finished Goods Inventory $220,000

2. The journal entry to close the balance in the Manufacturing Overhead account to the Cost of goods sold is as follows:

Debit Manufacturing Overhead $14,700

Credit Cost of goods sold $14,700

3. Gold Nest Company

for the year ended December 31

Sales Revenue            $514,000

Cost of goods sold      205,300

Gross profit               $308,700

Selling and Administrative Expenses:

Sales commission       $22,000

Administrative salaries 50,000

Rent Expenses                5,200

Advertising Expenses   13,000

Depreciation Expenses 6,000

Total selling/admin.  $96,200

Net income             $212,500

Estimated manufacturing overhead = $76,500

Estimated direct labor dollars = $45,000

Predetermined overhead rate = $1.70 ($76,500/$45,000)

Raw materials = $10,200

Work in process = $4,200

Finished goods = $8,200

a. Raw materials $170,000 Cash $170,000

b. Work in Process $121,000 Manufacturing Overhead $20,000 Raw materials $141,000

c. Work in Process $156,000 Manufacturing Overhead $185,900 Payroll Expenses $341,900

Selling and Administrative Expenses $22,000 Sales commissions $22,000

Selling and Administrative Expenses $50,000 Administrative salaries $50,000

d. Manufacturing Overhead $13,600 Selling and Administrative Expenses $5,200 Rent Expenses $18,800

e. Manufacturing Overhead $16,000 Utilities Expense $16,000

f. Selling and Administrative Expenses $13,000 Advertising costs $13,000

g. Manufacturing Overhead $15,000 Selling and Administrative Expenses $6,000 Depreciation Expenses $21,000

h. Work in Process $265,200 Manufacturing Overhead (Applied) $265,200 ($1.70 x $156,000)

i. Finished Goods Inventory $226,000 Work in Process $226,000

j. Cash $514,000 Sales Revenue $514,000

j. Cost of goods sold $220,000 Finished Goods Inventory $220,000

2. Manufacturing Overhead $14,700 Cost of goods sold $14,700

b. Raw materials                   $20,000

c. Payroll Expenses            $185,900

d. Rent Expenses                 $13,600

e. Utilities Expense              $16,000

g. Depreciation Expenses  $15,000

h. Work in Process                                 $265,200

Cost of goods sold (Over-applied

overhead)                          $14,700

Finished goods                                   $220,000

Over-applied manufacturing overhead (14,700)

Adjusted cost of goods sold           $205,300

A job-order costing system is a costing system that tracks the costs and revenues according to jobs, with jobs allocated job numbers.  It is unlike process costing, which tracks jobs for each process in order to determine the unit costs instead of per job.

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Answer: label

Explanation:

Product labels are the piece of material

that are being attached to a product in order for easy identification by consumers in order to know the brand and also to know the contents.

A product's label identifies the product or brand, describes several things about the product, and promotes the brand.

A product label identifies the product or brand, describes various things about the product, and promotes the brand. Developing product labeling is therefore a strategic task that can help identify the brand and position it in the market.

An example of how labeling can provide extra benefits for companies is through environmental certifications, which can come as a seal on labels and promote the company's environmental responsibility in a widespread and fast way.

Therefore, the labeling must have the design, layout and information aligned with the company's values so that there is promotion of its products and assist in consumer choice.

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Answer: I and II

I. American Opportunity Tax Credit

II. Lifetime Learning Credit

Explanation:

From the question, we are informed that Michael and Kathy have one dependent, Dustin, who is in his third year of college and that Michael is taking classes in the evening toward an MBA.

The credits that Michael and Kathy can claim related to tuition they pay for these programs are American Opportunity Tax Credit and the Lifetime Learning Credit.

Answer:

$1.75

Explanation:

Value added is calculated by subtracting the difference of revenue and the cost of inputs.

value added of Florida Jam Company = $2.50 - $0.75 = $1.75

Answer:

Dr Salaries expense 40,000

Cr FICA - Social security taxes payable 2,480

Cr FICA - medicare taxes payable 580

Cr Employee medical insurance deduction 593

Cr Union dues 230

Cr Salaries payable 33,017

Cr Federal income taxes payable 3,100

Explanation:

Preparation of the journal entry to record North Company’s January 15 salaries expense and related liabilities

Jan 15

Dr Salaries expense 40,000

Cr FICA - Social security taxes payable 2,480 (6.2%*40,000)

Cr FICA - medicare taxes payable 580

(1.45%*40,000)

Cr Employee medical insurance deduction 593

Cr Union dues 230

Cr Salaries payable 33,017

Cr Federal income taxes payable 3,100

Salaries payable is calculated as:

Salaries expense 40,000

Less: FICA - Social security taxes payable (2,480)

FICA - medicare taxes payable (580)

Employee medical insurance deduction (593)

Union dues (230)

Federal income taxes payable (3,100)

=$33,017

Here, we are to prepare the journal entry to record North Company’s January 15 salaries expense and related liabilities.

Salaries payable = Salaries expense - FICA - Social security taxes payable - FICA - medicare taxes payable - Employee medical insurance deduction - Union dues - Federal income taxes payable

Salaries payable = $40,000  - $2,480 - $580 - $593 - $230 - $3,100

Salaries payable = $33,017

Date     Account titles and Explanation                 Debit      Credit

Jan 15   Salaries expense                                       $40,000

                FICA - Social security taxes payable                       $2,480

                (6.2%*40,000)

                FICA - medicare taxes payable                                $580

                (1.45%*40,000)

                Employee medical insurance deduction                 $593

                Union dues                                                                 $230

                Salaries payable                                                         $33,017

                Federal income taxes payable                                  $3,100

             (To record salaries expense and related liabilities)

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Answer:

C

Explanation:

D / V = 1000 / 4000

Dividing 1000 by 4000 gives 0.25 = 25%

E / V = 3000 / 4000

Dividing 3000 by 4000 gives 0.75 = 75%

The failure of quality circles is not because management refuses to listen to the quality improvement ideas of subordinates.

Quality circles refer to a method that helps in encouraging group involvement.

The major reason for the failure of quality circles is because of the rejection of the concept by top management, labor turnover, lack of cooperation from middle and first-line managers, etc.

Therefore, the above statement is false.

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Answer:

All the requirements are solved below

Explanation:

Purchase = $178,000

Ready to use cost = $2,480

Installation cost = $1,160

Salvage value = $14,000

Depreciation method = Straight line

Useful life = 6 years

Solution

Requirement A If sold for $22,000

Entry                                               DEBIT      CREDIT

Cash                                            $22,000

Accumulated depreciation       $140,000

Profit/loss on disposal               $20,000

Machinery                                                       $182,000

Requirement B If sold for $88,000

Entry                                             DEBIT        CREDIT

Cash                                            $82,000

Accumulated depreciation       $140,000

Profit/loss on disposal                                   $40,000

Machinery                                                       $182,000  

Requirement C If destroyed in fire and insurance company paid $32,500

Entry                                             DEBIT      CREDIT

Cash                                            $30,000

Accumulated depreciation       $140,000

loss from fire                              $12,000

Machinery                                                       $182,000

Workings

Cost =$178,000 + $2,480 + $1,160

Cost = $182,000

Accumulated depreciation = ([tex]\frac{182,000-14,000}{6}x5[/tex]

Accumulated depreciation = 140,000

Answer:

d. $36

Explanation:

The Contribution margin is the net of selling price and variable cost of a product. It is calculated by deducting the variable cost from the selling price of a product.

                                          Cake   Pie    Cookies

Current selling price          $30    $18    $5

Variable cost                      $12     $7      $1

Contribution margin           $18     $11     $3

Production hours                2        1.5     0.25

Contribution margin/hr.     $9     $7.33  $12

Required Contribution margin per hour of cake = $12

Required Contribution margin = $12 x 2 = $24

Required Selling Price = Contribution margin + variable cost = $24 + $12 = $36

Note there is a mistake in the calculation of Contribution margin of Cookies as it is given $3 but after deducting the variable cost from selling price is should be $4 ( $5 - $1 ), I used the given contribution margin for the calculation.

Answer:

Net operating income= $242,506.6

Explanation:

Giving the following information:

Earnings before interest and taxes= $237,884

Depreciation expense= $87,882.

Tax rate= 35%

To calculate the net operating profit, we need to use the following structure:

EBIT= 237,884

Tax= (237,884*0.35)= (83,259.4)

Depreciation= 87,882

Net operating income= 242,506.6

Answer: a. It allowed workers to specialize on specific tasks and become more productive.

Explanation:

The Assembly line method of production that Henry Ford initiated at his plant was a technological game changer as it enabled workers to assemble cars faster and this mass produce Ford cars at a cheaper rate for the masses.

The Assembly line worked by putting workers at various stages of the assembly line where they would focus on installing only one or a few parts into the prospective vehicle. This way they were able to focus on that specific task, become more adept at it and thus become more productive.

Answer:

Option  D is correct

Machine B is the best investment

Explanation:

The accounting rate of return is the average annual income expressed as a percentage of the average investment.  

The simple rate of return can be calculated using the two formula below:

Accounting rate of return  =

Annual operating income/Average investment × 100

To determine the the machine with the best return,we would compute the average annual return of all of the machines and then choose the machine with the highest return

This is done as follows:

Machine             Working s                                   Average annul rate

A                   45,192.56/322,804.00 ×   100 =      14.0%

B                64,695.00/215,650.00 ×   100=           30.0%

C                  60,929.70/406,198.00×   100 =          15.0%

Machine B is the best investment

Answer:

the estimated cost of common equity using the CAPM is 11.40 %.

Explanation:

Cost of Equity = Return on the Risk Free Security + Beta × Return on Market Portfolio

                       = 7.00 % +  0.8 × 5.5%

                       = 11.40 %

The estimated cost of common equity using the CAPM is 11.40 %.

Since the return on risk-free rate is 7%, beta is 0.8 and, the market risk premium is 5.5%

So here the cost of common equity should be

= Return on the Risk Free + Beta × Market risk premium

= 7.00 % +  0.8 × 5.5%

= 11.40 %

Hence, The estimated cost of common equity using the CAPM is 11.40 %.

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Answer:

36.38

Explanation:

The Current stock price can be calculated by identifying Present value of dividends in all three years adding terminal value of dividends in year 3.

Year Dividend Growth  Dividend   PV factor  Present Values

1  1.25           127.5%   1.59    0.900901         1.43  

 2  1.59           127.5%   2.03           0.811622          1.64  

 3  2.03          127.5%   2.59    0.731191     1.88  

 3                                    42.987(w)  0.731191           31.43  

Total PV                                                                     36.38  

Current Dividend = 2.59    

Rate of return       = 11.00%    

Growth Rate        = 6.00%    

Terminal value = Current Dividend*(1+Growth rate)/(Rate of return-Growth Rate)

Terminal value = 2.59 x (1+0.06) / (0.11-0.06)  

Terminal value =42.987

Current stock price = 1.43 +1.64+1.88+31.43

Current stock price = 36.38