Answer:
Margin of safety= $17,000
Explanation:
Giving the following information:
Expected sales= $362,000
Monthly break-even sales= $345,000
To calculate the margin of safety in dollars, we need to use the following formula:
Margin of safety= (current sales level - break-even point)
Margin of safety= 362,000 - 345,000
Margin of safety= $17,000
Michigan Co. just paid a dividend of $2 per share. Analysts expect future dividends to grow at 20% per year for the next 4 years and then grow at 6% per year thereafter. Calculate the expected dividend in year 5.
Answer:
4.40
Explanation:
Calculation to determine the expected dividend in year 5
Using this formula
DIV6=(Dividend)(1+Expected future dividend growth rate)^n(1+Expected future dividend growth rate thereafter)
Let plug in the formula
DIV6=(2.00)(1+.20)^4(1+.06)
DIV6=(2.00)(1.20)^4(1.06)
DIV6=4.40
Therefore the expected dividend in year 5 will be 4.40
George wants to retire at 65 with $1,000,000 in savings. He plans to deposit a lump sum on his birthday each year. How much will he need to invest each year if he starts saving at 25
Answer:
Annual saving = 6460
Explanation:
Below is the calculations:
Future value of amount = $1000000
He starts saving at 25 years, then the Years of saving = 40.
Let the interest earned on the saving account = 6%
Thus annual saving = 1000000(F/A, 6%, 40)
Annual saving = 1000000(0.00646)
Annual saving = 6460
Therefore the annual saving will be 6460 dollars.
Two countries produce coffee and blueberries. Nicaragua can produce either 25 thousand pounds of coffee or 100 thousand pounds of blueberries per year. Colombia can produce either 20 thousand pounds of coffee or 40 thousand pounds of blueberries per year.
Initially the two countries do not trade. Nicaragua produces 7 thousand pounds of coffee and 72 thousand pounds of blueberries. Colombia produces 7 thousand pounds of coffee and 26 thousand pounds of blueberries. Suppose the countries completely specialize and decide to trade 9 thousand pounds of coffee for 27 thousand pounds of blueberries.
Suppose the countries completely specialize and decide to trade 9 thousand pounds of coffee for 27 thousand pounds of blueberries. After trade, Nicaragua can consume _____________ thousand more pounds of coffee and ____________ thousand more pounds of blueberries. After trade, Colombia can consume_____________ thousand more pounds of coffee and thous and _______________more pounds of blueberries in comparison to the pre- trade consumption.
Answer:
Columbia has more than 4 coffee & 1 more berry.
2) Nicaragua has more than 2 coffee & (100-27)= 73 berry, so 1 more berry.
Explanation:
Coffee Berry
Columbia 20 40
Nicaragua 25 100
So Columbia has Comparative ADVANTAGE in Coffee,
So it specializes in Coffee, & Nicaragua specializes in Berry
Initial consumption levels:
In Columbia ( Coffee, Berry)= (7,26)
In Nicaragua, (7,72)
so if Columbia trades 9 Coffee for 27 Berry
it can have (20-9) = 11 coffee, with 27 Berry
1) Columbia has more than 4 coffee & 1 more berry.
2) Nicaragua has more than 2 coffee & (100-27)= 73 berries, so 1 more berry.
Discuss the six HRM practices from which companies can choose for implementing their strategy. Illustrate by specific examples.
Answer:
Six practices of HRM are as :
Training and development.Recruitment and onboarding. Employee relations. Compensation and benefits. Risk management.Corporate policy.Explanation:
Recruitment and on boarding is the first strategy where the candidates are sourced and hired. Its is done to find the best talent for the job. Followed b the training and development to provide different approaches to candidates such as sexual harassment and cyber training. Compensation and benefits such as rocks of losing good talents and keeps the finger on the pulse of industry. Corporate policy done for internal communication's. Employee relation helps the workers deal with the situations.You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 3.9 percent indefinitely. The company just paid a dividend of $3.62 and you feel that the required return on the stock is 11.7 percent. What is the price per share of the company's stock
Answer:
$48.2
Explanation:
The increase in dividend is 3.9%
= 3.9/100
= 0.039
The recently paid dividend is $3.62
The required return is 11.7%
= 11.7/100
= 0.117
Therefore the price per share of the company stock can be calculated as follows
= 3.62(1+0.039)/0.117-0.039
= 3.62(1.039)/0.078
= 3.761/0.078
= 48.2
Hence the price per share is $48.2
Binder Corp. has invested in new machinery at a cost of $1,450,000. This investment is expected to produce cash flows of $640,000, $715,250, $823,330, and $907,125 over the next four years. What is the payback period for this project
Answer:
2.12 years
Explanation:
The calculation of the payback period is given below:
Year CF Cumulative CF
0 $(1,450,000) $(1,450,000)
1 640,000 (810,000)
2 715,250 (94,750)
3 823,330 728,580
4 907,125 1,635,705
Now payback period is
= 2 + ($94,750 ÷$823,330)
= 2.12 years
An investor sells short 200 shares of ABC stock at $5.25 a share. He sells two put contracts (100 shares each) with a striking price of S5 and a premium of S0.50 a share. Assume interest r-0% annual effective. (a) Draw a time diagram for the short sale, and the sold put. (b) What is the investor's profit if the spot price is below $5 at expiration? (c) The investor will be making profit as long as the spot price is less than what value at expiration?
Answer:
The solution of the given query is provided below in the explanation segment.
Explanation:
(a)
The diagram according to the given query is attached below.
(b)
Given:
Investor sells,
= 200 shares
at,
= $5.25
Strike price,
= $5
Premium,
= $0.50
If the price is less than $5 is $.75 per share,
The investor's gain will be:
= [tex]200\times 0.75[/tex]
= [tex]150[/tex] ($)
(c)
The investor would earn under $5.25 upon expiry, as longer as the spot price becomes less.
Your executive team is working on the new vision statement for the company. You notice some people keep confusing the vision statement with a mission statement. You explain that the vision is the _____ and the mission is the _____ for the company g
Group of answer choices.
A. what & how; why.
B. why; who & what.
C. how; what & why.
D. what; how & why.
E. why; what & how.
Answer:
D. what; how & why.
Explanation:
In Business management, a strategy can be defined as a set of guiding principles, actions and decisions that an organization combines so as to achieve its business goals, attract customers and possess a competitive advantage over its rivals in the industry.
Business strategy sets the overall direction for the business because it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan. The components of a business strategy includes the following;
I. Value.
II. Vision.
III. Mission.
Vision is an ideal future conditions that aligns with the purpose for which an organization or business is in operation. Thus, it's a path that guides an organization into achieving a certain height in the future.
Basically, a vision statement answers the question of what an organization would want to be, by combining its current and future objectives.
On the other hand, a mission statement is typically a description of the overall goal or purpose for which an organization was established and what it hopes to achieve in the future.
In conclusion, you should explain that the vision is the what and the mission is the how and why for the company.
Assume that you have been asked to paint the inside walls of an apartment. State specifically how you would estimate the cost of that job. Include payment for your own labor. What are some of the allocation bases you considered?
To estimate the ultimate cost, measure the size of the wall, calculate the amount of paint that will be needed, and add the cost of the materials and the laborers' daily wages.
What is the estimated cost?The cost that will be incurred to create a product or construct something is projected as an estimated cost. This sum is determined either as part of a sales bid when attempting to sell to a customer or as part of the capital budgeting process for an internal project. In accordance with the provisions of a fixed-price contract, the party providing the anticipated cost may be required to pay the sum projected.
Predicting the quantities, cost, and value of the resources needed to execute a task within the project's scope is the goal of cost estimating. Cost estimates are used to influence your task and budget planning process as well as to submit bids for new business from potential clients.
Learn more about the estimated cost, from:
brainly.com/question/15060915
#SPJ2
Pharoah Company purchased machinery on January 1 at a list price of $270000, with credit terms 2/10, n/30. Payment was made within the discount period. Pharoah paid $79750 sales tax on the machinery and paid installation charges of $4800. Prior to installation, Pharoah paid $10900 to pour a concrete slab on which to place the machinery. What is the total cost of the new machinery
Answer: $360,050
Explanation:
The total cost of a fixed asset refers to all the cash that was paid to acquire the asset, transport it and then install it.
Cost of the new machinery is therefore = Discounted cost price + Sales tax + Installation charges + Concrete slab
= (270,000 * (1 - 2%)) + 79,750 + 4,800 + 10,900
= 264,600 + 79,750 + 4,800 + 10,900
= $360,050
Cost price was discounted by 2% as per the credit terms of 2/10 which means that there is a discount of 2% if the asset is paid for in 10 days.
The congress of the country of Delta is debating budget issues and decides to cancel $5 billion worth of tax cuts in order to balance the budget. An argument against a balanced budget rule would be:________.
a. that there is no need for a balanced budget rule since the budget automatically adjusts and balances itself
b. that benefits from the tax cut were forgone.
c. that the budget deficits and debt do not have any impact on the economy.
d. the fact that the government of Delta should have reduced spending instead.
Answer:
b. that benefits from the tax cut were forgone.
Explanation:
The congress of the country of Delta is debating budget issues and decides to cancel $5 billion worth of tax cuts to balance the budget. An argument against a balanced budget rule would be: "that benefits from the tax cut were forgone."
This implies that the country of Delta would miss out on the benefits they could have derived from implementing the tax cut policy.
Some of the benefits include
1. more money into circulation.
2. Improve the saving and investment
Cleghorn Corporation produces and sells a single product. Data concerning that product appear below: Selling price per unit $160.00 Variable expense per unit $70.40 Fixed expense per month $153,216 Required:Determine the monthly break-even in total dollar sales.
Answer:
$273,600
Explanation:
The selling price per unit is $160
Variable expense per unit is $70.40
Fixed expense per month is 153,216
Therefore the monthly breaking can be calculated as follows
CM ratio = 56%
=>56/100
= 0.56
= 153,216/0.56
= 273,600
Hence the monthly break even in monthly dollars sales is $273,600
Specter Consulting purchased $8,900 of supplies and paid cash immediately. What general journal entries will Specter Consulting make to record this transaction? Assume the companyâs policy is to initially record prepaid and unearned items in balance sheet accounts?
Answer:
Debit Supplies $8,900; Credit Cash $8,900
Explanation:
Based on the information given the general journal entries that Specter Consulting will make to record this transaction assuming the companyâs policy is to initially record prepaid and unearned items in balance sheet accounts will be :
Debit Supplies $8,900
Credit Cash $8,900
Suppose Dansko Integrated has the following results related to cash flows for 2020:
Net Income of $6,800,000
Increase in Accounts Payable of $200,000
Decrease in Accounts Receivable of $800,000
Depreciation of $1,600,000
Increase in Inventory of $300,000
Other Adjustments from Operating Activities of $400,000
Assuming no other cash flow adjustments than those listed above, create a statement of cash flows with amounts in thousands.
Required:
What is the Net Cash Flow from Operating Activities?
The Net Cash Flow from Operating Activities is $9,500,000.
Net Operating ActivitiesNet Income $6,800,000
Adjustment:
Increase in Accounts Payable of $200,000
Decrease in Accounts Receivable $800,000
Depreciation of $1,600,000
Less Increase in Inventory ($300,000)
Other Adjustments from Operating Activities of $400,000
Net Cash Flow from Operating Activities $9,500,000
Therefore the Net Cash Flow from Operating Activities is $9,500,000.
Learn more about Net Operating Activities here:https://brainly.com/question/24228333
#SPJ1
Suppose you pay $50 to enter into a raffle with $1,000 prize. If you have a 3% chance of winning comma the expected value of your ticket is________.
Answer:
$-20
Explanation:
Calculation to determine the expected value of your ticket
Using this formula
Expected Value =∑ payoff *Probability
Let plug in the formula
Expected value of ticket =950 ∗.03+(−50) ∗(100%-3%)
Expected value of ticket =950 ∗.03+(−50) ∗.97
Expected value of ticket=−20.
Therefore the expected value of your ticket is $-20
The expected value of your ticket is -$20.
What is the expected value?The expected value is the summation of the multiplication of some random values with their probabilities of occurring.
The expected value estimates the chance that a favorable outcome will result.
Note that the cost of entering the raffle must be incurred whether the prize is won or not.
Data and Calculations:Cost for raffle = $50
Prize for raffle = $1,000
Probability of winning = 3%
Probability of losing = 97% (100% - 3%)
Expected value of winning = -$20 ($1,000 x 3% -$50)
Thus, the expected value of your ticket is -$20.
Learn more about probabilities and expected values at https://brainly.com/question/10675141
_____ is a broad area that encompasses such things as brochures, signs, logos, television advertisements, newspaper advertisements, sales techniques, and internal business design
Answer:
Market support
Explanation:
Market support is defines as all promotional materials and efforts that are geared towards efficient distribution and sales of products.
It involves use of materials such as brochures, signs, logos, television advertisements, newspaper advertisements, sales techniques, and internal business design to reach the target customer.
After the producer manufacturers goods he needs marketing support to trade his product to the consumer
On September 1, Ziegler Corporation had 57,000 shares of $5 par value common stock, and $171,000 of retained earnings. On that date, when the market price of the stock is $15 per share, the corporation issues a 2-for-1 stock split. The general journal entry to record this transaction is:
Answer: No entry required
Explanation:
A stock split does not change the overall value of equity so will not have any effect on the Equity accounts of the company.
Equity is also recorded by its total value in the financial statements and not the number of shares the company has. There will therefore be no entry to record that the number of shares has increased and because the total value does not change, neither does equity.
How water utility company caters for their interests and what may happen if their expectations are not met.
A vertical aggregate supply curve, where the quantity of output is consistent with many different price levels, also implies: ________.
A. an upward sloping Phillips curve.
B. a downward sloping aggregate demand curve.
C. a vertical aggregate demand curve.
D. a vertical Phillips curve.
Answer:
D. a vertical Phillips curve.
Explanation:
As we know that the aggregate demand does not impact the production quantity. In the case when the total supply is in vertical so the total demand does not impact the quantity of an output
Also aggregate demand may result in change in the price level for inflation
So as per the given situation, the option d is correct
Hence, the same is to be considered
Georgetown Retail Outlet provided the following financial information: Accounts Receivable balance as of 1/1/2017 $110,000 Accounts Receivable balance as of 12/31/2017 $120,000 Net Credit Sales for the year 2017 $839,500 Cost of Goods Sold for the year 2017 $486,910 Calculate Accounts Receivable Turnover.a. 7.30 days.b. 344.83 days.c. 01.06 days.d. 50.00 days.
Answer: 7.3 times
Explanation:
The Accounts Receivable Turnover Ratio is an activity ratio that shows how well a company collects the debts owed to it as well as how well it gives out credit.
It is calculated by the formula:
= Net Credit sales / Average Accounts Receivable
= 839,500 / ( (110,000 + 120,000) / 2)
= 839,500 / 115,000
= 7.3 times
Fuente, Inc., has identified an investment project with the following cash flows.
Year Cash Flow
1 $ 1,040
2 1,270
3 1,490
4 2,230
a.
If the discount rate is 9 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b. If the discount rate is 12 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
c. If the discount rate is 23 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
a. $6709.81
b. $6953.02
c. $7919.39
Explanation:
To determine the future value of the cash flows, the first step is to determine the present value of the cash flows
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 = 1,040
Cash flow in year 2 = 1,270
Cash flow in year 3 = 1,490
Cash flow in year 4 = 2,230
PV when interest rate is 9% = 4753.40
PV when interest rate is 12% = 4418.77
PV when interest rate is 23% = 3459.96
To find the PV 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 NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
The formula for calculating future value:
FV = P (1 + r)^nm
FV = Future value
P = Present value
R = interest rate
m = number of compounding
N = number of years
1. 4753.40 x (1.09^4) = $6709.81
2. 4418.77 x (1.12^4) = $6953.02
3. 3459.96 x x (1.23^4) = $7919.39
Compensation in the United States is governed by a number of laws that set boundaries for what companies can do. The rules governing equal employment opportunity and the Fair Labor Standards Act (FLSA). In the United States, it is illegal to discriminate on the basis of race, sex, or other protected categories in employment practices, including pay. The 1938 FLSA established the minimum wage, requirements for overtime regulations, and employment of minors.The FLSA establishes periodic minimum wages, of which the latest federal minimum wage is $7.25 per hour as of October 2016, although some exceptions apply for training wages and adherence to state minimum-wage laws. The FLSA also establishes overtime pay for wage earners working over 40 hours per week with detailed computation that includes bonuses and piece-rate payments. These employees are considered nonexempt workers because they are covered under FLSA requirements for overtime pay. Those employees who are not covered are considered exempt employees, usually paid salaries, who are in the executive and other professional white-collar jobs. FLSA rules also govern employment of child labor, outlining details from ages under 14 through 18. Finally, two additional federal laws, the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936, govern pay policies of federal contractors.Roll over each iterm to read a specific scenario and drag the items into the appropriate column that best describes them. There are four statements for each category. A. Living wageB. Computer professionals C. Fast-food employee D. Hourly basis E. Salary basis F. Supervisors G. Off the clock H. Higher rates I. Time J. Full-time K. Corporate1. Non-exempt2. Exempt3. Minimum Wage
Answer:
I don't know otherwise please marks me as brainliests..When high-tech start-up Minx first hit the technology scene, it created a big splash. Its music streaming and voice control technology promised to revolutionize the field. It attracted $500,000 in seed money, suggesting that it could hire the best talent and create amazing new products. But Minx quickly fell off the fast track. It spent nearly $400,000 on a Bluetooth product that sold only 28 units. In addition, a botched security update resulted in the company's having to conduct a nationwide recall of one of its smart products. Yet, other products have been successful, and the company is not facing bankruptcy. Initially, Minx offered amazing perks to attract the best and brightest talent. It provided an in-house chef with free gourmet meals, unlimited snacks, on-site acupuncture, and free yoga classes. Its offices were pet-friendly, and new employees received a $10,000 cash signing bonus. To counter the long hours that the tech world notoriously demands of its workers, Minx offered relaxation areas with table tennis and foosball tables. Unfortunately, bad times have made it necessary for Minx to pull back on its employee perks. Although no staff people are being released, the in-house chef has to go, along with on-site acupuncture, yoga classes, and the $10,000 signing bonus. However, it's still a good place to work, and camaraderie is high.
Required:
As a communications trainee in the CEO's office, you have been asked to draft an intranet post or a memo to employees announcing the bad news. Explain the cutbacks that affect current employees. Employ the bad-news techniques taught in this chapter. What could soften this bad news?
Answer:
The responses can be defined as follows:
Explanation:
Whenever we enter an organization, we engage but we see that now the organization and ourselves have shared objectives. You operate as a team, create market value and affect the behavior of those you call customers. This is Minx's aim since day 1, and so far nothing had changed. Irrespective of the problems we face, we will prevail together again and escape from difficult situations.
That is why I send this note to inform you and in these tough economic times, we are reducing some facility's all-around idea of creating a more stable and sustainable atmosphere. In the following few months, we will eliminate some amenities including chefs, in-house acupuncturists, yoga sessions, and a prize fee of $10,000. Notwithstanding the difficulty, we would not implement personnel-related actions, such as redundancies and a decrease of employees.
Despite the reduction, I think that we will recover which is merely a temporary solution to tackle the financial storm. Your high-performing culture, comradeship, mutual care, team chemistry should dominate since we have done in the past. We didn't convey my appreciation for having people like you in our team and from this difficult period, we'll only gain strength. We looking forward more to your contributions and thoughts.
Consider the market in which publishers operate.Suppose the price of a fiction book is expected to fall next year.Explain how this event will change the quantity of fiction books supplied and the supply of fiction books today.
Answer:
Supply will increase today.
Explanation:
Supply will increase today because the producer's primary motive is to earn profit so when the price decreases then the profit also decreases. Therefore, when the future expected price is going to fall then the producer will try to earn more profit by selling at a higher price so the current supply will increase for the fiction book.
Claremont Company sells refurbished copiers. During the month, the company sold 180 copiers for total sales of $540,000. The budget for the month was to sell 175 copiers at an average price of $3,200. The sales price variance for the month was
the beginning of the year, Vendors, Inc., had owners' equity of $50,630. During the year, net income was $6,850 and the company paid dividends of $4,630. The company also repurchased $8,930 in equity. What was the owners' equity account at the end of the year
Answer:
Owner's equity at the end = $43920
Explanation:
Given below is the informations:
Begining equity = $50630
Net income = $6850
Dividend paid = $4630
Repurchased = $8930
Below is the calculation for the owner's equity at the end.
Owner's equity at the end = Begining equity + Retained earning - Repurchased
Retained earning = 6850 - 4630 = 2220
Owner's equity at the end = 50630 + 2220 - 8930
Owner's equity at the end = $43920
The LIFO inventory cost flow assumes that the cost of the newest goods purchased are: A. assumed to be the first ones sold. B. assumed to be the first ones included ending inventory. C. not included in cost of goods sold or ending inventory. D. assumed to be the last ones to be sold.
Answer: A. assumed to be the first ones sold.
Explanation:
Last in, first out is a method that's used in inventory such that the items that are produced recently will be the ones that will be sold first.
Using this method means that the goods recently produced or bought will be the first to be sold and recorded as cost of goods sold. This therefore means that the report on the inventory will be the lower cost of the old products.
Therefore, the LIFO inventory cost flow assumes that the cost of the newest goods purchased are assumed to be the first ones sold.
Mitchell waited until July 5, 2019, to file his 2018 Form 1040 return. He did request an extension and paid 90% of the anticipated balance due on April 15, 2019. His remaining balance due on his 2018 return is $88. What is his failure to file penalty
Answer:
The answer is "$0".
Explanation:
Following are the Tax code of the IRS, taxpayers high school ask that their return on their tax return be extended on a deadline but must thus pay at least 90% of all tax owed, so how they can suffer the nonpayment penalty.
All remainder of the taxes being paid should be paid by the additional due date set by the taxpayer. Companies will have to pay the tax interest just after the due date if they do not pay.
For this reason, M requires timely prolongation and pays 90% of the remainder by the due date. Therefore, 'M' won't be obliged to pay any taxman's failure-to-pay penalty. Therefore, M fails to file $0.
homeworklib On January 1, 2024, an investor paid $311,000 for bonds with a face amount of $375,000. The stated rate of interest is 8% while the current market rate of interest is 10%. Using the effective interest method, how much interest income is recognized by the investor in 2024 (assume annual interest payments and amortization)
Answer:
$37,500
Explanation:
Calculation to determine how much interest income is recognized by the investor in 2024
Using this formula
Interest income=Face amount *Current market rate of interest
Let plug in the formula
Interest income=$375,000*10%
Interest income=$37,500
Therefore how much interest income is recognized by the investor in 2024 is $37,500
Which of the following statements regarding EBITDA is correct: Select one: a. A defined term in GAAP b. None of the listed answers c. A proxy for net income d. A proxy for operating income e. All of the listed answers
Answer:
b. None of the listed answers
Explanation:
EBITDA means earnings before interest , tax, depreciation and amortization, whereas operating is the gross profit minus all operating costs, since depreciation and amortization, which are operating costs would have been deducted in arriving at EBITDA, it means operating income and EBITDA are not the same.
Net income is gross profIt minus interest,tax ,depreciation and amortization, hence, it is a far cry from EBITDA.
Note also EBITDA is not recognized by generally accepted accounting principles (GAAP) as a performance measure
