Juice Drinks has beginning inventory of $10,000, purchases in the amount of $150,000, and ending inventory of $8,000. Juice Drinks cost of goods sold is $ ____________.

Answers

Answer 1

Answer:

$152,000

Explanation:

Given the data as shown below;

Opening inventory = $10,000

Purchases = $150,000

Ending inventory = $8,000

Therefore,

Juice drinks cost of goods sold = Opening inventory + Purchases - Ending inventory

= $10,000 + $150,000 - $8,000

= $152,000


Related Questions

if N lekin's beginning capital balance shown on a statement of owner's equity is 100,000. net income for the period is

Answers

Answer:

$125,000

Explanation:

The computation of the owner's capital balance at the end of the period is shown below:-

Owner's Capital balance at the end = Capital balance in the beginning + Additional investments + Net Income - Withdrawals

= $100,000 + 0 + $50,000 - $25,000

= $125,000

Therefore for computing the owner's capital balance at the end we simply applied the above formula.

During the year, TRC Corporation has the following inventory transactions.
Date Transaction Number of Units Unit Cost Total Cost
Jan. 1 Beginning inventory 41 $ 33 $ 1,353
Apr. 7 Purchase 121 35 4,235
Jul. 16 Purchase 191 38 7,258
Oct. 6 Purchase 101 39 3,939
454 $16,785
For the entire year, the company sells 410 units of inventory for $51 each.
Exercise 6-4A Part 2
2. Using LIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.

Answers

Answer:

Ending Inventory = $1,716.00

Cost of Sales = $15,069.00

Sales Revenue = $20,910.00

Gross Profit = $5,841.00

Explanation:

FIFO Method assumes that the first goods received by the busines will be the first ones to be delivered to the final customer.

Ending Inventory :

Under FIFO, any remaining inventory will be valued as if they were the latest goods purchased.

Ending Inventory : 44 units  × $39.00 = $1,716.00

Cost of Goods Sold Calculation :

Cost of Sales :       41 units × $33.00   =   $1,353.00

                              121 units × $35.00  =  $4,235.00

                              191 units × $38.00  =  $7,258.00

                               57 units × $39.00 =  $2,223.00

                              Total                       =  $15,069.00

Sales Revenue Calculation ;

Sales Revenue = Units Sold × Selling Price

                         = 410 units × $51

                         = $20,910.00

Gross Profit Calculation :

Sales                                   $20,910.00

Less Cost of Goods Sold  ($15,069.00)

Gross Profit                           $5,841.00

TB MC Qu. 5-49 Walbin Corporation uses the weighted-average method... Walbin Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 20,500 units, 100% complete with respect to materials cost and 30% complete with respect to conversion costs. The total cost in the beginning work in process inventory was $26,200. A total of 58,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $2.10 for materials and $3.80 for conversion costs. The total cost of the units completed and transferred out of the department was:

Answers

Answer:

The total cost of the units completed and transferred out of the department was: $342,200.

Explanation:

First calculate the Total Cost per Equivalent unit.

Total Cost per Equivalent unit :

Materials      $2.10

Conversion  $3.80

Total             $5.90

Total cost of the units completed and transferred out = Units completed and transferred out × Total Cost per Equivalent unit

                                                                          = 58,000 units × $5.90

                                                                          = $342,200

 

According to the World Banks's world development indicators, real gross domestic product (GDP) in sub-Saharan Africa in 2015 was about $1.65 trillion . What percentage of sub-Saharan Africa's real GDP is the E.U. emergency trust fund

Answers

Answer:

0.12%

Explanation:

According to the given situation, the computation of E.U. emergency trust fund as a percentage of sub-Saharan GDP is shown below:-

E.U. emergency trust fund as a percentage of sub-Saharan GDP is

= (Amount of Plans ÷ Real gross domestic product) × 100

= (2 billion ÷ 1.65 trillion) × 100

= 0.12%

Therefore for computing the E.U. emergency trust fund as a percentage of sub-Saharan GDP we simply applied the above formula.

When U.S. goods become more expensive relative to foreign goods, exports will __________ and imports will __________.

Answers

Answer:

fall, rise

Explanation:

US goods will become less expensive

Mayan Company had net income of $37,380. The weighted-average common shares outstanding were 8,900. The company's earnings per share is: Multiple Choice $7.48. $5.36.

Answers

Answer:

$4.20.

Hie, the question you have provided is not complete, as it is missing all choices of options.

However important information to answer the question is provided below :

Earnings per share = Earnings Attributable to Holders of Common Shares ÷ Weighted Average Number of Common Shares

                                = $37,380 ÷ 8,900

                                = $4.20

Conclusion :

The company's earnings per share is: $4.20

TB MC Qu. 9-336 Puvo, Inc., manufactures a single product in which ...
Puvo, Inc., manufactures a single product in which variable manufacturing overhead is assigned on the basis of standard direct labor-hours. The company uses a standard cost system and has established the following standards for one unit of product:
Standard Quantity Standard Price or Rate Standard Cost
Direct materials 6.10 pounds $0.90 per pound $5.49
Direct labor 0.50 hours $36.50 per hour $18.25
Variable manufacturing
overhead 0.50 hours $8.80 per hour $4.40
During March, the following activity was recorded by the company:
• The company produced 3,500 units during the month.
• A total of 20,500 pounds of material were purchased at a cost of $14,680.
• There was no beginning inventory of materials on hand to start the month; at the end of the month, 4,720 pounds of material remained in the warehouse.
• During March, 1,200 direct labor-hours were worked at a rate of $41.50 per hour.
• Variable manufacturing overhead costs during March totaled $15,161.
The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for March is:_______.
a. $3,641 F.
b. $4,355 U.
c. $4,355 F.
d. $3,641 U.

Answers

Answer:

Variable manufacturing overhead rate variance= $4,596 unfavorable

Explanation:

Giving the following information:

Variable manufacturing overhead 0.50 hours $8.80 per hour $4.40

Actual direct labor hours= 1,200

Variable manufacturing overhead costs during March totaled $15,161.

To calculate the variable overhead rate variance, we need to use the following formula:

Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity

Actual rate= 15,161/1,200= $12.63

Variable manufacturing overhead rate variance=  (8.8 - 12.63)*1,200

Variable manufacturing overhead rate variance= $4,596 unfavorable

Suppose the tax rate on nominal interest income is 20% and does not change over time. Also assume the real interest rate remains constant. In year 1, the inflation rate is 4% and the nominal interest rate is 10%. In year 2, the inflation rate is 14% The real interest rate in both years is 16 The nominal interest rate in year 2 is 20 The after-tax nominal interest rate in year 1 is 7.

a. The after-tax nominal interest rate in year 2 is __________
b. The after-tax real interest rate in year 1 is ______________
c. The after-tax real interest rate in year 2 is ______________

Answers

Answer:

a. The after-tax nominal interest rate in year 2 is __________

after tax nominal interest rate = 20% x (1 - tax rate ) = 20% x 0.8 = 16%

b. The after-tax real interest rate in year 1 is ______________

after tax real interest rate = [(1 + after tax nominal interest rate) / (1 + inflation rate)] - 1

after tax nominal interest rate yer 1 = 10% x 0.8 = 8%

inflation rate = 4%

after tax real interest rate = [1.08 / 1.04] - 1 = 3.85%

c. The after-tax real interest rate in year 2 is ______________

after tax real interest rate = [(1 + after tax nominal interest rate) / (1 + inflation rate)] - 1

after tax nominal interest rate yer 1 = 16%

inflation rate = 4%

after tax real interest rate = [1.16 / 1.14] - 1 = 1.75%

Explanation:

year 1

inflation rate 4%

nominal interest rate 10%

real interest rate 6%

year 2

inflation rate 14%

nominal interest rate 20%

real interest rate 6%

Sanders, a 62-year-old single individual, sold his principal residence for the net amount of $500,000 after all selling expenses. Sanders bought the house 15 years ago and has occupied it until it sold. On the date of sale, the house had a cost basis of $200,000. Within six months, Sanders purchased a new house for $600,000. What amount of gain should Sanders recognize from the sale of the residence g

Answers

Answer:

$50,000

Explanation:

Recognized gain can be calculated by deducting the exclusion available from the realized gain. To qualify for exclusion from the realized gain Sanders has met all the requirements of exclusion.

NOTE: Requirments for exclusion are given at the end of solution

DATA

Sale proceeds = $500,000

Cost basis = $200,000

exclusion available for single person = $250,000

Gain =?

Calculation

Realized gain on sale of home = Sale proceeds –  Cost basis

Realized gain on sale of home = $500,000 - $200,000

Realized gain on sale of home =  $300,000

Recognized gain = Realized gain - exclusion available

Recognized gain = $300,000 - $250,000

Recognized gain = $50,000

Requirements for exclusion

1. You've owned the home for two of the last five years.  

2. You used the home as your principal residence for two of the last five years.

3. You haven't used the exclusion on another property sale within the last two years.

Salud Company reports the following information. Use the indirect method to prepare only the operating activities section of its statement of cash flows for the year ended December 31, 2017. (Amounts to be deducted should be indicated with a minus sign.)

Selected 2017 Income Statement Data Selected Year-End 2017

Net income $455,000 Accounts receivable increase $52,800
Depreciation expense 95,500 Prepaid expenses decrease 17,400
Gain on sale of machinery 26,300 Accounts payable increase 6,200
Wages payable decrease 2,100

Answers

Answer:

Cash flow from Operating Activities

Net income                                                          $455,000

Adjustments for non-cash items :

Depreciation expense                                          $95,500

Gain on sale of machinery                                  ($26,300)

Adjustment for Changes in Working Capital :

Increase in Accounts receivable                        ($52,800)

Decrease in  Prepaid expenses                           $17,400

Increase in Accounts payable                               $6,200

Decrease in Wages payable                                  $2,100

Net Cash from Operating Activities                   $497,100

Explanation:

The Indirect method adjusts the Profit before tax with the following items :

Non-cash items previously added or deducted from net incomeChanges in Working Capital

g A decrease in the basis will __________ a long hedge and __________ a short hedger. Group of answer choices hurt; hurt hurt; benefit benefit; have no effect upon benefit; benefit benefit; hurt

Answers

Answer:

1. hurt

2. benefit

Explanation:

Given that a contract and an asset are to be converted in cash early, this implies that, basis risk exists and futures price and spot price should not move in lockstep before delivery date. However, a reduction in the basis will then hurt the long hedger and benefit the short hedger.

Hence, considering the nature of the hypothetical situation, a decrease in the basis will HURT a long hedge and BENEFIT a short hedge.

Which of the following is a true statement about the limitation on business interest deductions? This limitation is not imposed on businesses with average annual gross receipts of $25 million of less for the prior three taxable years. A. Interest disallowed by this limitation is carried back three years and then forward five years B. The limitation is calculated as a percentage of the taxpayers total taxable income C. This limitation is not imposed on businesses with average annual gross receipts of $26 million or less for the prior three taxable years D. All of the choices are false E. All of the choices are true

Answers

Answer:

Limitation on Business Interest Deductions:

B. The limitation is calculated as a percentage of the taxpayers total taxable income

Explanation:

30% (or 50% for years 2019 and 2020, as amended by the CARES Act) of the adjusted taxable income of a business is the limit of business interest expense that is allowed by the IRS.  The excess after this limitation may be carried forward by the tax paying organization to future tax years indefinitely until the interest expense is completely applied.

Following the CARES Act, "the business interest expense deduction limitation does not apply to certain small businesses whose gross receipts are $26 million or less, electing real property trades or businesses, electing farming businesses, and certain regulated public utilities. The $26 million gross receipts threshold, which applies for the 2020 tax year, is adjusted annually for inflation."

On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $71,000 and $2,900, respectively. During the year Kincaid reported $190,000 of credit sales. Kincaid wrote off $1,750 of receivables as uncollectible in Year 2. Cash collections of receivables amounted to $227,700. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales.
The net realizable value of receivables appearing on Kincaid's Year 2 balance sheet will amount to:
a) $29,650.
b) $28,500.
c) $33,300.
d) $31,550.

Answers

Answer:

b) $28,500.

Explanation:

The computation of the net  realizable value of receivables is shown below:

As we know that

Net realizable value = Gross account receivable - allowance for doubtful debts

where,

Gross account receivable is

= Beginning balance of the account receivable + credit sales - written off amount - collections

= $71,000 + $190,000 - $1,750 - $227,700

= $31,550

And, the allowance for doubtful debts is

= Beginning balance of  allowance for doubtful debts - written off + allowance needed

= $2,900 - $1,750 + $190,000 × 1%

= $3,050

So, the net realizable value is

= $31,550 - $3,050

= $28,500

hence, the correct option is b. $28,500

Kathy and Annise are a married couple who file jointly. In the current year, they have net ordinary income of $10,000 from a partnership interest in which they do not materially participate. They also have a net loss of $30,000 from a rent house in which they actively participate. Their adjusted gross income (AGI) exclusive of these investments is $120,000. What is their AGI after taking into account these investments

Answers

Answer:

$100,000

Explanation:

As Kathy and Annise are a married couple who file jointly, their revised AGI can be calculated by deducting a net loss from the adjusted gross income.

DATA

Current AGI = $120,000

Rental loss = $30,000

Partnership gain = $10,000

Revised AGI = Current AGI - Net loss

Revised AGI = 120,000 – 20,000(w)

Revised AGI = 100,000

Working

Net loss = Rental loss – partnership gain

Net loss = $30,000 - $10,000

Net loss = $20,000

NOTE: Kathy and Annise can deduct 20,000 loss against other income as they materially participate in rental activities.

"The principle stating that assets acquired by the business should be recorded at their actual cost on the date of purchase​ is:"

Answers

Answer:

The answer is historical cost principle

Explanation:

Historical cost principle is a principle in which the asset and the liability are being reported at the actual money in which they were purchased. This actual amount in which they were purchased is their historical cost.

For example, a company bought a machinery five years ago for $2million and the expected life of the machinery is five years. After there years, the machine has a carrying amount of $1.2 million on the balance sheet. The historical cost of this asset is $2million.

Slow​ 'n Steady,​ Inc., has a stock price of ​, will pay a dividend next year of ​, and has expected dividend growth of per year. What is your estimate of Slow​ 'and Steady cost of equity​ capital

Answers

Answer:

Slow​ 'and Steady cost of equity​ capital is 11%.

Explanation:

Note: The question is not complete as the important data are committed. The full question is therefore provided before answering the question as follows:

Slow n' steady Inc, has a stock price of $30, will pay a dividend next year of $3, and has expected dividend growth of 1% per year. what is your estimate of slow n steady's cost of equity capital?

The explanation to the answer is now given as follows:

The cost of equity can be calculated using the Gordon growth model (GGM) formula for calculating current stock price

The GGM has the assumption that there will be a stable dividend growth rate year after year forever.

Tje GGM formula is given as follows:

P = d1 / (r - g) ……………………………………… (1)

Where;

P = Current share price = $30

d1 = Next year dividend = $3

r = Required rate of return or cost of equity = ?

g = Expected dividend growth rate = 1%, or 0.01

Substituting the values into equation (1) and solve for r, we have:

30 = 3 / (r - 0.01)

r - 0.01 = 3 / 30

r - 0.01 = 0.10

r = 0.10 + 0.01

r = 0.11, or 11%

Therefore,  Slow​ 'and Steady cost of equity​ capital is 11%.

Because of the legal protection for intellectual property, such as patents, a firm has a better chance of recouping the costs of research if it pursues:_________.
a. Basic technological research
b. Technologically innnovative research
c. Appllied technological research
d. Technologically positive research

Answers

Answer:

D. Technologically positive research

Explanation:

Technology positive research can be said to be a scientific method which explain elaborately on the approach that is seen to deal with research founded on the premise of the modern world is been defined by a set of regular laws or patters, and that we can investigate these laws. Generally, it is known that positivity brings open doors and also a level ground for normal discussions with even people that have spent barely few hours with a said person. This research method is also been seen as the type where theory is typically provided as a set of related variables express by some form of formal logic, proven empirically to be significant.

Consider a situation where a firm owned by you is competing against an identical rival firm. You are able to choose how much of your good (quantity) to supply to the market. You are given the option to set your quantity first, wait and let your rival set their quantity, or have both you and your rival set their quantities at the same time. What should you do

Answers

Available Options Are:

A. Set your quantity first.

B. Set your quantity second.

C. Set your quantity at the same time.

D. It doesn't matter.

Answer:

Option A. Set your quantity first.

Explanation:

The Cournot Equilibrium says that the decisions are made simultaneously and this simultaneous decision is that each firm will choose its own quantity, given what quantity of output its rival has set. Every firm will be producing a quantity that maximizes its profits and this approach will lower the profits because of Cournot Equilibrium.

The firm that sets its quantity first is at better position because the other firms might think about the worse market condition taking Cournot effect into account.

The optimal choice would be to set our quantity first, hence the option A is the right option.

"In using the net present value approach, a project is acceptable if the project's net present value is ____________ or_______________."

Answers

Answer:

Zero or Positive.

Explanation:

The project should be accepted if the NPV (net present value) is “zero” or “positive” because the zero value means that the project will not be in loss. However, the positive value shows that the project will give profit. But if there is a negative value of net present value then it reflects that the project is giving a loss. Therefore, the project with negative NPV must be rejected. And the project that has zero net present value or positive net present value should be accepted.

ABC paid $2,000 interest on short-term notes payable, $10,000 interest on long-term bonds, and $6,000 in dividends on its common stock. ABC would report cash outflows from activities, as follows:
A) Operating, $12,000; Financing $6,000.
B) Operating, $0; Financing $18,000.
C) Operating, $18,000; Financing $0.
D) Operating, $2,000; Financing $16,000.

Answers

Answer: A) Operating, $12,000; Financing $6,000.

Explanation:

Operating Activities deal with the cashflow related to the operations of the business and it's short term obligations. Interest payments on loans are short term and are considered part of normal business operations so the outflow from Operating activities is;

= $2,000 interest on short-term notes payable + $10,000 interest on long-term bonds

= $12,000

Financing Activities relate to cash-flow surrounding the capital of the firm. This includes Equity and long term debt. Dividends have the impact of reducing equity and so will fall under Financing activities.

Dividends = Financing = $6,000

Trevor Company discloses supplementary operating segment information for its three reportable segments. Data for 20X8 are available as follows:

Segment A Segment B Segment C

Sales $500,000 $300,000 $200,000
Traceable operating expenses 250,000 120,000 90,000

Allocable costs for the year was $180,000. Allocable costs are assigned based on the ratio of a segment's income before allocable costs to total income before allocable costs. The 20X8 operating profit for Segment B was:

a. $180,000
b. $120,000
c. $126,000
d. $110,000

Answers

Answer:

Operating profit of segment B = $180,000

Explanation:

The allowable cost to any of the segment would be equal to the proportion that the segment income bears to the overall total income multiplied by the allocable cost.

Mathematically, we can use the realationship below:

Allocable cost to Segment B = Sales of segment B/Total sales × Alllocable cost

Allowable cost = 180,000

Total sales = 250,000+ 120,000 + 90,000 = 460,000

Allocable cost to B = (120,000/460,000) × 180,000 =  46,956.52  

Allocable cost to segment B =$46,956.52  

However,the question required us to determine operation profit.

Operating profit is the excess of sales revenue over operating expenses

Operating profit of segment B-= 200,000 - 90,000 = 180,000

Operating profit of segment B = $180,000

Hank purchased a $28,000 car two years ago using an 8 percent, 5-year loan. He has decided that he would sell the car now, if he could get a price that would pay off the balance of his loan. What is the minimum price Hank would need to receive for his car

Answers

Answer:

$18,117.58

Explanation:

the question requires that we find the minimum price Hank would need to receive his first car.

loan = $28,000

rate = 0.08/12 = 0.0067

the monthly payment can be calculated as:

loan /[0.0067/1-(1/(0.0067)^60))]

= 28000/[1-1/(1.0067^60)/0.0067]

= 28000/(1-(1/1.0067)^60)/0.0067

= $567.74

The minimum price can be calculated as:

pmt = 567.74 x [(1-(1/1.0067^36))/0.0067) x 0.0067

= $18,117.58

Longman Company manufactures shirts. During June​, Longman made 1,900 shirts but had budgeted production at 2,150 shirts. Longman gathered the following additional​ data:

Variable overhead cost standard $0.80 per DLHr
Direct labor efficiency standard 4.50 DLHr per shirt
Actual amount of direct labor hours 8,620 DLHr
Actual cost of variable overhead $10,344
Fixed overhead cost standard $0.10 per DLHr
Budgeted fixed overhead $968
Actual cost of fixed overhead $1,033

Required:
a. Calculate the variable overhead cost variance.
b. Calculate the variable overhead efficiency variance.
c. Calculate the total variable overhead variance.
d. Calculate the fixed overhead cost variance.
e. Calculate the fixed overhead volume variance

Answers

Answer:

a.  variable overhead cost variance-   $3,448  Unfavorable

b.  variable overhead efficiency variance-  $ 56 unfavorable

c. total variable overhead variance -   $3,504  Unfavorable

d. fixed overhead cost variance - $65   unfavorable

e. Fixed overhead volume variance -$ 112.5   unfavorable

Explanation:

Variable overhead rate variance                                          $

8,620 hours should have cost (8,620  × $0.80)               6896

but did cost                                                                         10,344

Variable overhead rate variance                                    3,448 Unfavorable

Variable overhead rate variance  =$3,448 unfavorable

Efficiency variance                                                                 Hours

190 units should have taken (1,900 × 4.50 hrs)                  8,550

but did take                                                                            8,620

Efficiency variance in hours                                                    70   unfavorable

Standard rate                                                                    ×   $0.80

Efficiency variance                                                           $ 56 unfavorable

Efficiency variance  =$ 56 unfavorable

Total variable overhead= rate variance +efficiency

Total variable overhead =  $3,448 UF + $ 56 UF =  $3,504  U

Total variable overhead = $3,504  Unfavorable

Fixed overhead cost variance

                                                                      $

Budgeted cost                                           968

Actual cost                                                1,033

Fixed overhead cost Variance           65   unfavorable

Fixed Overhead Volume

                                                                            Units

Budgeted units                                                 2,150                                      

Actual    units                                                       1,900

Variance                                                                  250

Standard fixed cost per unit (Notes)                $0.45

Volume Variance                                             112.5   unfavorable

Standard fixed overhead cost per unit

= standard hours × standard Fixed overhead rate = 4.5 × $0.1= $0.45

a.  variable overhead cost variance-   $3,448 Unfavorable

b.  variable overhead efficiency variance-  $ 56 unfavorable

c. total variable overhead variance -   $3,504  Unfavorable

d. fixed overhead cost variance - $65   unfavorable

e. Fixed overhead volume variance -$ 112.5   unfavorable

Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $620,000 cost with an expected four-year life and a $34,000 salvage value. All sales are for cash, and all costs are out-of-pocket, except for depreciation on the new machine. Additional information includes the following. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round PV factor value to 4 decimal places.) Expected annual sales of new product $ 2,190,000 Expected annual costs of new product Direct materials 494,000 Direct labor 686,000 Overhead (excluding straight-line depreciation on new machine) 476,000 Selling and administrative expenses 174,000 Income taxes 30 % Required: 1. Compute straight-line depreciation for each year of this new machine’s life. 2. Determine expected net income and net cash flow for each year of this machine’s life. 3. Compute this machine’s payback period, assuming that cash flows occur evenly throughout each year. 4. Compute this machine’s accounting rate of return, assuming that income is earned evenly throughout each year. 5. Compute the net present value for this machine using a discount rate of 4% and assuming that cash flows occur at each year-end. (Hint: Salvage value is a cash inflow at the end of the asset’s life.)

Answers

Answer:

1) depreciation expense per year = $146,500

2) net income:

years 1 - 4 = $149,450

net cash flows:

year 0 = -$620,000

year 1 = $295,950

year 2 = $295,950

year 3 = $295,950

year 4 = $329,950

3) payback period = 2.09 years

4) accounting rate of return = 24.1%

5) net present value (NPV) = $483,330.83

Explanation:

purchase cost of the machine $620,000

depreciation expense per year = ($620,000 - $34,000) / 4 = $146,500

expected annual sales $2,190,000

direct materials $494,000

direct labor $686,000

overhead (excluding depreciation) $476,000

S&A expenses $174,000

total costs (excluding depreciation) = $1,830,000

income taxes 30%

net income per year = ($2,190,000 - $1,830,000 - $146,500) x 70% = $149,450

net cash flow (years 1 - 3) = $149,450 + $146,500 = $295,950

net cash flow (year 4) = $149,450 + $146,500 + $34,000 = $329,950

payback period = $620,000 / $295,950 = 2.09 years

accounting rate of return = $149,450 / $620,000 = 24.1%

NPV, using a financial calculator = $483,330.83

Tasty Doughnuts has computed the net present value for capital expenditure at two locations. Relevant data related to the computation are as follows: Des Moines Cedar Rapids Total present value of net cash flow $712,500 $848,000 Amount to be invested (750,000) (800,000) Net present value $(37,500) $ 48,000 a. Determine the present value index for each proposal. Round your answers for the present value index to two decimal places.

Answers

Answer:

0.95 and 1.06

Explanation:

The computation of the present value index is shown below:

Present value index = Present Value of net cash Flow ÷ Amount invested

So for each projects, it would be

Particulars                                         Des Moines             Cedar Rapids

Total present value of

net cash flow (A)                                  $712,500                $848,000

Amount invested (B)                            $750,000              $800,000

Present value index (A ÷ B)                   0.95                          1.06

You have ​$. You put ​% of your money in a stock with an expected return of ​%, ​$ in a stock with an expected return of ​%, and the rest in a stock with an expected return of ​%. What is the expected return of your​ portfolio?

Answers

Answer: 16.26%

Explanation:

The expected return is the weighted average of the returns of the constituent stocks in the portfolio.

Weights.

Stock A = 20%

Stock B

= 30,000/70,000

= 0.4286

Stock C

= 70,000 - 30,000 - (20% * 70,000)

= 70,000 - 30,000 - 14,000

= $26,000

= 26,000/70,000

= 0.3714

Expected return = ( 0.2 * 12%) + ( 0.4286* 15%) + ( 0.3714 * 20%)

= 0.024 + 0.06429‬ + 0.07428‬

= 0.16257‬

= 16.26%

The difference between total sales revenue and total cost of goods sold is the: A. Trade margin B. Gross marketing contribution C. Net marketing contribution D. All of the above

Answers

Answer:

A. Trade margin

Explanation:

The profit obtained from trading operations is known as gross profit or trade margin.This is calculated as sales less costs of goods sold.

The difference between total sales revenue and total cost of goods sold is the gross marketing contribution.

The following information is considered:

When the cost of goods sold is deducted from the sales revenue so the gross marketing contribution should come. Neither it is trade margin, nor net marketing contribution.In other words, the difference is called as gross margin.

Therefore we can conclude that the correct option is B.

Learn more: brainly.com/question/16115373

Hunt Inc. intends to invest in one of two competing types of computer-aided manufacturing equipment: CAM X and CAM Y. Both CAM X and CAM Y models have a project life of 10 years. The purchase price of the CAM X model is $3,600,000, and it has a net annual after-tax cash inflow of $900,000. The CAM Y model is more expensive, selling for $4,200,000, but it will produce a net annual after-tax cash inflow of $1,050,000. The cost of capital for the company is 10%.

Required:
Calculate the NPV for each project.

Answers

Answer:

NPV of CAM X = $1,930,110.40

NPV of CAM Y = $2,251,795.46

Explanation:

The NPV for each project can be calculated using the following steps:

Step 1: Calculation of present value (PV) for each project

The PV for each project can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV of a project = P * [{1 - [1 / (1 + r)]^n} / r] …………………………………. (1)

Where;

For CAM X

P = Net annual after-tax cash inflow = $900,000

r = Cost of capital or interest rate = 10%, or 0.10

n = number of project life = 10

Substitute the values into equation (1) to have:

PV of CAM X = $900,000 * [{1 - [1 / (1 + 0.10)]^10} / 0.10]

PV of CAM X = $900,000 * 6.14456710570468

PV of CAM X = $5,530,110.40

For CAM Y

P = Net annual after-tax cash inflow = $1,050,000

r = Cost of capital or interest rate = 10%, or 0.10

n = number of project life = 10

Substitute the values into equation (1) to have:

PV of CAM Y = $1,050,000 * [{1 - [1 / (1 + 0.10)]^10} / 0.10]

PV of CAM Y = $1,050,000 * 6.14456710570468

PV of CAM Y = $6,451,795.46

Step 2: Calculation of net present value (NPV) for each project

The NPV for each project can be calculated using the following formula:

NPV of each project = PV of each equipment - Purchase price of each equipment ........ (2)

Using equation (2), we have:

NPV of CAM X =  PV of CAM X - Purchase price of CAM X = $5,530,110.40 - $3,600,000 = $1,930,110.40

NPV of CAM Y = PV of CAM Y - Purchase price of CAM Y = $6,451,795.46 - $4,200,000 = $2,251,795.46

Additional Note:

Although this not part of the requirement of the question, but note that the final decision is that since the positive NPV of $2,251,795.46 for CAM Y is gereater than the positive NPV of $1,930,110.40 for CAM X, Hunt Inc. will choose to invest in CAM Y.

World Class Rings produces class rings. Its best-selling model has a direct materials standard of 16 grams of a special alloy per ring. This special alloy has a standard cost of $63.30 per gram. In the past month, the company purchased 16,800 grams of this alloy at a total cost of $1,061,760. A total of 16,300 grams were used last month to produce 1,000 rings.
Requirements:
1. What is the actual cost per gram of the special alloy that World Class Rings purchased last month? (Round your answer to the nearest cent.) The actual cost per gram of the special alloy that World Class Rings purchased last month is $_____.
2. What is the direct material price variance? (Abbreviations used: DM = Direct materials) Begin by determining the formula for the price variance, then compute the price variance for direct materials.
3.·What is the direct material quantity variance? (Abbreviations used: DM = Direct materials) Determine the formula for the quantity variance, then compute the quantity variance for direct materials.
4. How might the direct material price variance for the company last month be causing the direct material quantity variance?
The_____direct material price variance might mean that World Class Rings purchased a______. As a result, the company______quantity (efficiency) variance alloy than the standard allows. This accounts for the_____quantity (efficiency) variance.

Answers

Answer:

1. What is the actual cost per gram of the special alloy that World Class Rings purchased last month? (Round your answer to the nearest cent.) The actual cost per gram of the special alloy that World Class Rings purchased last month is $_____.

= $1,061,760 / 16,800 grams = $63.20 per gram

2. What is the direct material price variance? (Abbreviations used: DM = Direct materials) Begin by determining the formula for the price variance, then compute the price variance for direct materials.

direct materials price variance = (AP - SP) x AQ = ($63.20 - $63.30) x 16,300 = -$1,630 favorable variance

3.·What is the direct material quantity variance? (Abbreviations used: DM = Direct materials) Determine the formula for the quantity variance, then compute the quantity variance for direct materials.

direct materials quantity variance = SP x (AQ - SQ) = $63.30 x (16,300 - 16,000) = $18,990 unfavorable variance

4. How might the direct material price variance for the company last month be causing the direct material quantity variance?

The FAVORABLE direct material price variance might mean that World Class Rings purchased a LOWER QUALITY MATERIAL. As a result, the company USED MORE ALLOW THAN STANDARD  quantity (efficiency) variance alloy than the standard allows. This accounts for the UNFAVORABLE quantity (efficiency) variance.

Corporation has found that ​% of its sales in any given month are credit​ sales, while the remainder are cash sales. Of the credit​ sales, Corporation has experienced the following collection​ pattern: 20% received in the month of the sale 40% received in the month after the sale 24% received two months after the sale 16% of the credit sales are never received November sales for last year were ​, while December sales were . Projected sales for the next three months are as​ follows: January sales. . . . . . . . . . . . . . . . $150,000 February sales. . . . . . . . . . . . . . . $130,000 March sales. . . . . . . . . . . . . . . . . $175,000 Requirement Prepare a cash collections budget for the first​ quarter, with a column for each month and for the quarter. ​(Round your answers to the nearest whole​ dollar.) Sweeney Corporation Cash Collections Budget For the Months of January through March January Cash sales Collections on credit sales: 20% Month of sale 40% Month after 24% Two months after Total cash collections Enter any number in the edit fields and then click Check An

Answers

Answer:

Some information is missing, specifically the % of credit sales. Similar questions use 80%, so I will use that %. Also, November sales were $85,000 and December sales were $115,000.

                              Cash collections budget

                                                January              February             March

Cash sales                               $30,000            $26,000              $35,000

Collection from Nov. sales      $16,320

Collection from Dec. sales     $36,800             $22,080

Collection from Jan. sales      $24,000            $48,000              $28,800

Collection from Feb. sales                                $20,800               $41,600

Collection from March sales                                                          $28,000

Total cash collections            $107,120             $116,880             $133,400

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