Answer:
9.38%
Explanation:
PV = $9,875
PMT = $863.58
NPER = 12
Using the MS Rate Function to derive the Periodic rate
Periodic rate = Rate(NPER, -PMT, PV)
Periodic rate = Rate(12, -863.58, 9,875)
Periodic rate = 0.0075
Periodic rate = 0.75%
Nominal rate = Periodic rate * NPER
Nominal rate = 0.75% * 12
Nominal rate = 9%
Using the MS Effect Function to derive the effective annual rate (EAR)
Nominal rate = 9%
NPER = 12
Effective annual rate (EAR) = Effect(Nominal rate, NPER)
Effective annual rate (EAR) = Effect(9%, 12)
Effective annual rate (EAR) = 0.0938
Effective annual rate (EAR) = 9.38%
So, the the effective annual rate (EAR) you are paying is 9.38%.
What is the IRR, assuming an industrial building can be purchased for $250,000 and is expected to yield cash flows of $18,000 for each of the next five years and be sold at the end of the fifth year for $280,000
Answer:
9.2%
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 = $-250,000
Cash flow in year 1 = $18,000
Cash flow in year 2 = $18,000
Cash flow in year 3 = $18,000
Cash flow in year 4 = $18,000
Cash flow in year 5 = $18,000 + $280,000
IRR = 9.2%
To determine 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.
Assume that, on January 1, 2021, Sosa Enterprises paid $2,140,000 for its investment in 33,000 shares of Orioles Co. Further, assume that Orioles has 110,000 total shares of stock issued and estimates an eight-year remaining useful life and straight-line depreciation with no residual value for its depreciable assets. At January 1, 2021, the book value of Orioles' identifiable net assets was $7,160,000, and the fair value of Orioles was $10,000,000. The difference between Orioles' fair value and the book value of its identifiable net assets is attributable to $1,900,000 of land and the remainder to depreciable assets. Goodwill was not part of this transaction. The following information pertains to Orioles during 2021: Net Income $ 400,000 Dividends declared and paid $ 240,000 Market price of common stock on 12/31/2021 $ 80 /share What amount would Sosa Enterprises report in its year-end 2021 balance sheet for its investment in Orioles Co.
Answer:
$2,152,750
Explanation:
Calculation to determine What amount would Sosa Enterprises report in its year-end 2021 balance sheet for its investment in Orioles Co.
Acquisition price for 30% share $2,140,000
($33,000 / $110,000 * 100=30%)
Add: Net income $120,000
($ 400,000 * 30%)
Less: Dividend ($72,000)
($240,000 * 30%)
Less: Excess depreciation ($35,250)
($940,000 / 8 yrs*30%)
[$10,000,000-$7,160,000-$1,900,000)=$940,000]
Investment reported in Balance $2,152,750
Therefore the amount that Sosa Enterprises would report in its year-end 2021 balance sheet for its investment in Orioles Co is $2,152,750
Annual interest rate 4.00%
Loan Amount 4923275
Years 7
Grace Period 2 Years
Loan Period 5 Years
Total 7 Years
Project 1.5 years (development or initial investment period)
further 10 years of operation (life of the project)
Repayable in 5 equal installments.
I need figures for interest expense, interest paid, and principal repayment. Anyone can help me?
Answer:
formula is PRT÷10
Explanation:
so solve it
1. ______ are costs that do not require a monetary payment
A) Accounting costs
B) Explicit costs
C) All opportunity costs
D) Implicit costs
2. Joe runs a restaurant. He pays his employees $200,000 per year. His ingredients cost him $50,000 per year. Prior to running his restaurant, Joe was a lawyer earning $150,000 per year. What would economists say is Joe’s cost of running the restaurant?
A) $150,000
B) $200,000
C) $250,000
D) $400,000
1. The cost that does not need a monetary payment is the implicit cost.
2. The cost of running the restaurant is $400,000.
1.
Implicit cost is normally:
The opportunity cost that occurred at the time when the company used the resources i.e. owned for the production without considering any payment regarding the resources.Here monetary payment should not be involved.Therefore rest of the given costs should involve monetary payments.
2. The cost of running the restaurant is as follows:
= Employee payment + ingredients cost + lawyer earnings
= $200,000 + $50,000 + $150,000
= $400,000
Therefore we can conclude that
1. The cost that does not need a monetary payment is the implicit cost.
2. The cost of running the restaurant is $400,000.
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price elasticity of demand
Answer:
Price elasticity of demand is a measure of the change in the quantity purchased of a product in relation to a change in its price.
Explanation:
Plant assets sometimes are purchased as a group in a single transaction for a lump-sum price. This transaction is called a __________, or group, bulk, or basket purchase.
Answer:
Lump-Sum Purchase
Explanation:
Plant assets
This is simply known as well founded or important assets of an essential or useful life of more than one accounting period and are normally used in the operation of a business. One of the major characteristic of plant assets is that they are often used in operations.
They are known also as resources that has physical substance, used mainly in the operations of a business and it is not intended for sale to customers.
Plant assets are also called property, plant, equipment; plant and equipment; and fixed assets.
It is also discard (done away with) if it is not useful anymore to the company, and it has no market value.
Coke and Pepsi are examples of
Coke and Pepsi are examples of soft drinks.
Hope this helps!
Have a great day!
Roanoke Company produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (1,827 bars) are as follows: Ingredient Quantity Price Cocoa 600 lbs. $0.40 per lb. Sugar 180 lbs. $0.60 per lb. Milk 150 gal. $1.70 per gal. Determine the standard direct materials cost per bar of chocolate. If required, round to the nearest cent.
Answer:
Roanoke Company
The standard direct materials cost per bar of chocolate is:
= $0.33.
Explanation:
a) Data and Calculations:
A batch of chocolate = 1,827 bars
Standard Costs for a batch:
Ingredient Quantity Price
Cocoa 600 lbs. $0.40 per lb.
Sugar 180 lbs. $0.60 per lb.
Milk 150 gal. $1.70 per gal.
Ingredient Quantity Price Total Cost
Cocoa 600 lbs. $0.40 per lb. $240.00 (600 * $0.40)
Sugar 180 lbs. $0.60 per lb. 108.00 (180 * $0.60)
Milk 150 gal. $1.70 per gal. 255.00 (150 * $1.70)
Total cost of batch of chocolate = $603.00
Cost per bar = $0.33 ($603.00/1,827)
Presented below are definitions of certain terms. Select the appropriate term from the dropdown list. Definitions 1. Quantity of input required if a production process is 100% efficient. 2. Managing by focusing on large differences from standard costs. 3. Record that accumulates standard cost information. 4. Preset cost for delivering a product or service under normal conditions. a. Standard cost card b. Management by exception c. Standard cost d. Ideal standard
Answer:
1. Ideal standard
2. Management by exception
3. Standard cost card
4. Standard cost
Explanation:
Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
In Financial accounting, a direct cost can be defined as any expense which can easily be connected to a specific cost object such as a department, project or product. Some examples of direct costs are cost of raw materials, machineries or equipments.
On the other hand, any cost associated with the running, operations and maintenance of a company refers to indirect costs. Some examples of indirect costs are utility bill, office accessories, diesel etc.
1. Ideal standard: quantity of input required if a production process is 100% efficient.
2. Management by exception: Managing by focusing on large differences from standard costs.
3. Standard cost card: record that accumulates standard cost information.
4. Standard cost: preset cost for delivering a product or service under normal conditions.
On December 31, Ott Co. had investments in equity securities as follows:
Cost Fair value Lower of cost or fair value
Mann Co. $10,000 $8,000 $8,000
Kemo, Inc. $9,000 $11,000 $9,000
Fenn Corp. $11,000 $9,000 $9,000
$30,000 $28,000 $26,000
The Mann investment is classified as held-to-maturity, while the remaining securities are classified as available-for-sale. Ott does not elect the fair value option for reporting financial assets. Ott's December 31, Year 1, balance sheet should report total marketable debt securities as:_____.
a. $29,000.
b. $26,000.
c. $30,000.
d. $28,000.
Answer:
c. $30,000.
Explanation:
The calculation of the total marketable debt securities reported in the balance sheet is given below;
= Mann Co cost + Kemo Co fair value + Fenn corp fair value
= $10,000 + $11,000 + $9,000
= $30,000
Hence, the total marketable debt securities reported in the balance sheet is $30,000
Therefore the option c is correct
Using the high-low method, the fixed cost is calculated ______. Multiple select question. by adding the total cost to the variable cost using either the high or low level of activity before the variable cost is calculated after the variable cost per unit is calculated
Answer:
is calculated after the variable cost per unit is calculated
Explanation:
Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
In Financial accounting, fixed cost can be defined as predetermined expenses in a business that remain constant for a specific period of time regardless of the quantity of production or level of outputs. Some examples of fixed costs in business are loan payments, employee salary, depreciation, rent, insurance, lease, utilities, etc.
On the other hand, variable costs can be defined as expenses that are not constant and as such usually change directly and are proportional to various changes in business activities. Some examples of variable costs are taxes, direct labor, sales commissions, raw materials, operational expenses, etc.
Using the high-low method, the fixed cost can only be calculated after the variable cost (VC) per unit is calculated through the application of either the low or high level of activity.
Using the high-low method, the fixed cost is calculated : After the variable cost per unit is calculated.
What is costing?Costing refers to the measurement of the cost of production of goods and services whereby, the fixed costs and variable costs associated with production are examined.
Fixed costs are costs that do not vary with the level of output, while variable cost are cost that varies with the activity level.
Using the high-low method, the fixed cost can only be calculated after the variable cost (VC) per unit is calculated through the application of either the low or high level of activity.
Hence, using the high-low method, the fixed cost is calculated after the variable cost per unit is calculated.
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WHAT ARE THE BENEFITS OF PHYSICAL ERGONOMICS
Answer:
▫️Increased savings. • Fewer injuries. • More productive and sustainable employees. ...
▫️Fewer employees experiencing pain. • Implementing ergonomic improvements can reduce the risk factors that lead to discomfort.
▫️Increased productivity. • ...
▫️Increased morale. • ...
▫️Reduced absenteeism. •
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Explanation:
Hope it will help you
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In its closing financial statements for its first year in business, the Runs and Goses Company, had cash of $242, accounts receivable of $850, inventory of $820, net fixed assets of $3,408, accounts payable of $700, short-term notes payable of $740, long-term liabilities of $1,100, common stock of $1,160, retained earnings of $1,620, net sales of $2,768, cost of goods sold of $1,210, depreciation of $360, interest expense of $160, taxes of $312, addition to retained earnings of $508, and dividends paid of $218.
Calculate:
a. Return on equity = __________
b. Return on total assets = __________
c. Gross profit margin = __________
d. Net profit margin = __________
Answer:
return on equality
return on way
return on potos
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Return on Equity can be calculated as Return on Equity = Net Income / share holders equity. Return on Equity = 726 /2780. Thus, Return on Equity = 26.11%
What is Return on Equity?The ratio of a company's net income to the equity of its shareholders is known as return on equity (ROE). A company's profitability and the effectiveness of its revenue generation are measured by its return on equity (ROE). A corporation is better at turning its equity financing into profits the higher the ROE.
Although average ratios and those deemed "good" and "poor" might differ significantly from industry to industry, a return on equity ratio of 15% to 20% is typically regarded as good. The ratio would be regarded as low at 5%.
b)Return on Asset Ratio
Return on Asset Ratio = Net Income / Total Assets
Return on Asset Ratio = 726/ 5,320
Return on Asset Ratio = 13.65%
c)Gross Profit Margin
Gross Profit Margin = Gross Profit / Net Sales
Profit Margin = 1,558/ 2,768
Profit Margin =56.29%
d)Net Profit Margin
Net Profit Margin = Net Income / Net Sales
Profit Margin = 726/ 2,768
Net Profit Margin =26.23%
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As operations manager, you are concerned about being able to meet sales requirements in the coming months. You have just been given the following production report: JAN FEB MAR APR Units produced 2,250 1,750 2,750 2,950 Hours per machine 318 194 393 315 Number of machines 5 7 6 5 Find the average of the monthly productivity figures (units per machine hour).
Answer: 2.81 per hour
Explanation:
Average monthly productivity = (January productivity + February productivity + March productivity + April productivity) / 4
January productivity:
= Units produced / ( Hours per machine * Number of machines )
= 2,250 / ( 318 * 2 )
= 3.537
February productivity:
= 1,750/ ( 194 * 4 )
= 2.255
March productivity:
= 2,750 / ( 393 * 3 )
= 2.332
April productivity:
= 2,950/ ( 315 * 3)
= 3.121
Average monthly productivity = (3.537 + 2.255 + 2.332 + 3.121)/ 4
= 2.81 per hour
Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. Households deposit $5,000 in currency into the bank, and the bank adds that currency to its reserves. What amount of excess reserves does the bank now have
Answer:
$4000
Explanation:
Fractional banking is a banking system where a portion of customer's deposits is kept as reserves while remaining portion is lent out. The amount kept as reserves is determined by the required reserve ratio set by the Central bank.
Reserve ratio is the percentage of deposits that is required of commercial banks to keep as reserves
Total deposits = $100,000 + $5,000 = $105,000
Required reserves = 0.2 x 105000 = 21,000
total reserves = $20,000 + 5000 = 25,000
excess reserves = 25,000 - 21,000 = 4000
The following cost behavior patterns describe anticipated manufacturing costs for 2013: raw material, $8.10/unit; direct labor, $11.10/unit; and manufacturing overhead, $373,100 $9.10/unit. Required: If anticipated production for 2013 is 41,000 units, calculate the unit cost using variable costing and absorption costing. (Round your answers to 2 decimal places.)
Answer:
Variable costing $28.3
Absorption costing $37.4
Explanation:
Calculation to determine the unit cost using variable costing and absorption costing.
VARIABLE COSTING
Material $8.10/unit
Direct labor $11.10/unit;
Variable manufacturing overhead per unit $9.10/unit
Units cost $28.3
ABSORPTION COSTING
Material $8.10/unit
Direct labor $11.10/unit;
Variable manufacturing overhead per unit $9.10/unit.
Fixed manufacturing overhead per unit $9.10/unit.
($373,100 ÷ 41,000 units)
Units cost $37.4
Therefore the unit cost using variable costing and absorption costing are:
Variable costing $28.3
Absorption costing $37.4
Demand for a specific design of dinning sets has been fairly large in the past several years and Statewide Furnishings, Inc. usually orders new dinning sets 10 times a year. It is estimated that the ordering cost is $400 per order. The carrying cost is $50 per unit per year. Furthermore, State Wide Furnishings, Inc. has estimated that the stock out cost is $120 per unit per year. Based on forecast, the annual demand is 600 units. State Wide Furnishings, Inc. has 350 working days in a year and its lead time is 14 working days.
Assume shortage is allowed and the store manager is sure that shortages will not become lost sales, determine the annual ordering cost.
a. 592.82
b. 1472.01
c. 2051.28
d. 4116.11
e. None of the above
Answer:
e. None of the above
Explanation:
Annual demand, D = 600 units
Ordering cost, S = $400
Holding cost, H = $50
Economic order quantity without stock-out = SQRT(2*D*S/H)
Economic order quantity without stock-out = SQRT(2*600*400/50)
Economic order quantity without stock-out = 98
Total annual ordering cost = (D/Q)*S + (Q/2)*H
Total annual ordering cost = (600/98)*$400 + (98/2)*$50
Total annual ordering cost = $2,448.97 + $2,450
Total annual ordering cost = $4,898.97
Larned Corporation recorded the following transactions for the just completed month.
$79,000 in raw materials were purchased on account.
$77,000 in raw materials were used in production. Of this amount, $65,000 was for direct materials and the remainder was for indirect materials.
Total labor wages of $109,500 were paid in cash. Of this amount, $100,900 was for direct labor and the remainder was for indirect labor.
Depreciation of $195,000 was incurred on factory equipment.
Required:
Record the above transactions in journal entries.
Answer:good question. Wait for the answer
Explanation:
When the price elasticity of demand for a good is very elastic, quantity demanded is _____ to a change in price and the demand curve is relatively _____. Group of answer choices
Answer:
1. Responsive
2. Elastic
Explanation:
When the price elasticity of demand for a good is very elastic, quantity demanded is RESPONSIVE to a change in price and the demand curve is relatively ELASTIC.
This is because the price elasticity of demand measures the responsiveness of the quantity demanded to a change in price.
Consequently, as the quantity demanded changes, the demand curve then becomes relatively elastic, by shifting either to the right or left.
Kevin promises to pay Macarena, his daughter, $5,000 if she obtains her degree at Brookdale community College, where she is currently in her first year. Macarena graduates. If a Court refuses to enforce the agreement it would most likely be because:
Question Completion with Options:
A. Macarena finished college.
B. Obtaining a college degree benefits Macarena.
C. A job can be hard to find after college.
D. Macarena was already in college.
Answer:
If a Court refuses to enforce the agreement it would most likely be because:
D. Macarena was already in college.
Explanation:
Macarena was currently in her first year when the promise was made by her father. This means that Macarena is not giving any consideration for the father's promise. But, if she enters the college based on the promise and eventually graduates in the college, then the court will not likely refuse to enforce the agreement. Kevin's promise to pay Macarena $5,000 is not enforceable because of past consideration.
HOW CAN I CREATE A PERFECT SALES STRATEGY?
Answer:
B2B marketers and businesses are using LinkedIn automation to strengthen their sales and marketing strategy.
Here is how;
Engage With The Right AudienceTake Advantage of LinkedIn GroupsSend Personlized Outreach MessagesMost of the lead generation and sales tactics on LinkedIn require a lot of time if you choose to do them manually.
A fixed asset with a cost of $41,000 and accumulated depreciation of $36,500 is traded for a similar asset priced at $60,000. Assuming a trade-in allowance of $3,000, the recognized loss on the trade is
Answer:
1,500
Explanation:
The fixed assets cost is $41,000
The accumulated depreciationn is $36,500
Similar assets was priced at $36,000
Trade in allowance is $3000
Therefore the recognised law on trade can be calculated as follows
41,000-36,500-3,000
= 1,500
5-5 TIME TO REACH A FINANCIAL GOAL You have $33,556.25 in a brokerage account, and you
plan to deposit an additional $5,000 at the end of every future year until your account totals
$220,000. You expect to earn 12% annually on the account. How many years will it take to
reach your goal?
Answer:
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Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: Sales $ 17,700,000 Net operating income $ 5,300,000 Average operating assets $ 35,100,000 Required: 1. Compute the margin for Alyeska Services Company. (Round your answer to 2 decimal places.) 2. Compute the turnover for Alyeska Services Company. (Round your answer to 2 decimal places.) 3. Compute the return on investment (ROI) for Alyeska Services Company.
Answer:Profit margin = 29.94%
Asset Turnover =0.50
Return on investment (ROI) =15.09%
Explanation:
Given
Sales for the year = $ 17,700,000
Net Operating Income = $ 5,300,000
Average Operating Assets = $ 35,100,000
a)Profit margin = (Net operating income/Net sales ) x 100%
= $5,300,000/$17,700,000 x 100% = 29.94%.
This shows that the Alyeska Services company has ability to turn income to profit by 29.94%
b. Asset Turnover = Total Sales/ Average Total Assets = $17,700,000/$35,100,000 = 0.50
c. Return on investment (ROI) =Net income/Total investment x 100%
= $ 5,300,000/ $ 35,100,000 x 100% =15.09%
Accurate Metal Company sold 36,500 units of its product at a price of $340 per unit. Total variable cost per unit is $179, consisting of $172 in variable production cost and $7 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing.
Answer: $6,132,000
Explanation:
The manufacturing margin for the company under variable costing will use the variable production costs only as these are the variable costs incurred during manufacturing:
Variable manufacturing margin = ( Sales price - Variable cost per unit) * number of units
= (340 - 172) * 36,500
= 168 * 36,500
= $6,132,000
Why do tourism business have market cost for the printing
Answer:
Launching tourist ventures involves overcoming two major hurdles: first, the venture must be
financed; and second, demand must be generated. In particular, the marketing of tourism and
hospitality ventures provides special challenges, the ability to reach the target market and convince
them to travel to remote locations being a critical success factor (Dolli, N.; Pinfold, J.F., 1997). Thus,
the main issue related to the marketing of tourist services is not their production, but their sale and
promotion, so as to ensure that all the consumers’ needs are comprehensively satisfied. (Nistoreanu,
P., 2006).
It is in this context that both the producers as well as the suppliers (intermediaries) of tourism services
should take into consideration the fact that a touristic product is sold only if there is a demand on the
market for that particular product. This means that suppliers have the possibility to either offer what is
requested on the market, responding to the consumers’ needs, or to stimulate or generate the demand
for a certain product so as to facilitate the selling of that product. In both cases, however, the
producers and suppliers need to apply a promotion strategy, through which potential clients may be
informed with regard to the offer on the market, as well as induce the clients’ desire to consume a
certain product.
Explanation:
Company XYZ is working on a marketing strategy for a new oral hygiene product and just discovered that XYZ's biggest competitor is launching a very similar product a month later. In conducting a SWOT analysis, the launch of the competitor's product represents an opportunity.
a. True
b. False
Answer:
XYZ Company
In conducting a SWOT analysis, the launch of the competitor's product represents an opportunity.
b. False
Explanation:
The launch of the competitor's product represents a threat to XYZ Company. It reduces XYZ Company's market competitiveness and profitability. XYZ Company may even be driven out of the market by the competitor, thus leading to massive loss for the company. However, threats must be overcome and turned into opportunities for future product development.
Solving for PMT of an annuity) To pay for your child's education, you wish to have accumulated $ at the end of years. To do this you plan on depositing an equal amount into the bank at the end of each year. If the bank is willing to pay percent compounded annually, how much must you deposit each year to reach your goal?
Answer:
$783.87
Explanation:
Complete question "To pay for your child's education, you wish to have accumulated $10,000 at the end of 8 years. To dothis, you plan to deposit an equal amount into the bank at the end of each year. If the bank is willing to pay 13 percent compoundedannually, how much must you deposit each year to obtain yourgoal?"
NPER = 8
FV = 10,000
Rate = 13%
PV = 0
Future Value of Annuity = PMT(Rate, NPER, PV, FV)
Future Value of Annuity = PMT(13%, 8, 10000, 0)
Future Value of Annuity = 783.8671964727014
Future Value of Annuity = $783.87
So, one must deposit $783.87 each year to reach the goal.
How does the devaluation and appreciation of the local currency effect to balance of payment, analyze for each component
Answer: Balance of payment will worsen due to devaluation.
Explanation: The balance of payments refers to the balance of supply and demand for a country's currency in the foreign exchange market. Devaluation will make local currency weaker and foreign currency stronger. Therefore less demand for local currency in the foreign market. The imports will become expensive, more amount of local currency will be paid as it is weaker. The exports will become cheaper, more amount of local currency will be received as foreign currency is stronger than it.
Vise Versa for appreciation.
Cameron is single and has taxable income of $58,046.
Required:
Determine his tax liability using the Tax Tables and using the Tax Rate Schedules.
Answer:
Cameron
Cameron's tax liability for the year as a single taxpayer is
= $12,770.12.
Explanation:
a) Data and Calculations:
Taxable income = $58,046
Tax rate = 22%
Tax liability = $12,770.12 ($58,046 * 22%)
b) The amount of tax that Cameron, who is within the 22% tax rate bracket, will pay to the IRS is $12,770.12. The tax liability represents the amount of tax that is due to be paid for his taxable income of $58,046 at the tax rate of 22%.
