Answer:
1. Gross Profit ratio
2018 47%
2019 30%
2020 62%
2021 47%
2. Gross Profit ratio
2018 47%
2019 47%
2020 47%
2021 47%
Explanation:
1. Calculation for the gross profit ratio for each of the four years based on amounts originally reported.
2018 2019 2020 2021
Net sales $60,000 $66,000 $74,000 $90,000
Less Cost of goods sold $32,000 $46,000 $28,000 $48,000
=Gross profit$ 28,000 $20,000 $46,000 $42,000
Gross Profit ratio
2018 47% =$28,000/$60,000
2019 30% =$20,000/$66,000
2020 62% =$46,000/$74,000
2021 47% =$42,000/$90,000
2. Calculation for the gross profit ratio for each of the four years based on corrected amounts.
Cost of goods sold 2019=$46,000-$11,000
Cost of goods sold 2019=$35,000
Cost of goods sold 2020=$28,000+$11,000
Cost of goods sold 2020=$39,000
2018 2019 2020 2021
Net sales $60,000 $66,000 $74,000 $90,000
Less Cost of goods sold $32,000 $35,000 $39,000 $48,000
=Gross profit $28,000 $31,000 $35,000 $42,000
Gross Profit ratio
2018 47% =$28,000/$60,000
2019 47% =$31,000/$66,000
2020 47% =$35,000/$74,000
2021 47% =$42,000/$90,000
The governor has proposed to clean up all the trash on the side of the highway. The project is estimated to cost the tax payers and additional $15,000. The city will benefit by having a clean highway which will entice tourists to stop along their routes. The project is estimated to bring in $12,000 of revenue from the highway being cleaned. Should the governor continue with the project
Answer:
No, the project will not bring in enough benefit to cover the costs.
Explanation:
In a project or business enterprise there is a need to do a cost-revenue analysis with the aim of maximising profit.
If the revenue generated by a project is more than the cost, then it is viable and profitable.
However if the revenue is less than cost then the project will not be sustainable.
In the given scenario the clean up project is estimated to cost the tax payers an additional $15,000.
The city will have an estimated revenue of $12,000 from the highway being cleaned.
As the revenue is less than the cost it is better to discontinue the project.
12. Allen Steel Company is considering whether to build a new mill. If the interest rate falls, a. the present value of the returns from the mill will fall, so Allen will be less likely to build the mill. b. the present value of the returns from the mill will fall, so Allen will be more likely to build the mill. c. the present value of the returns from the mill will rise, so Allen will be less likely to build the mill. d. the present value of the returns from the mill will rise, so Allen will be more likely to build the mill.
Answer:
Allen Steel Company is considering whether to build a new mill. If the interest rate falls,
d. the present value of the returns from the mill will rise, so Allen will be more likely to build the mill.
Explanation:
A fall in the interest rate payable by Allen Steel Company will increase the present value of the returns that it can generate from building a new mill financed with debt. This is an incentive for investors to build more capital assets to increase productive activities in the economy. This is why the fall will most likely encourage Allen to build the mill.
Olaf lives in the state of Minnesota. In 2020, a tornado hit the area and damaged his home and automobile. Applicable information is as follows:
Item Adjusted Basis FMV before FMV after Insurance Proceeds
Home $350,000 $500,000 $100,000 $280,000
Auto 60,000 40,000 10,000 20,000
Because of the extensive damage caused by the tornado, the President designated the area a Federal disaster area. Olaf and his wife, Anna, always file a joint return. Their 2019 tax return shows AGI of $180,000 and taxable income of $145,000. In 2020, their return shows AGI of $300,000 and taxable income (exclusive of the casualty loss deduction) of $225,000. Assume the taxpayers are in the 22% tax bracket in 2019 and the 24% tax bracket in 2020.
Determine the amount of Olaf and Anna's loss and the year in which they should take the loss.
Item
Amount of Loss Home $________
Auto_________
Total loss $__________
Less: statutory floor amount_________
Loss before statutory % of AGI $_________
Amount of loss on last year's return:
Loss $___________
Less: statutory % of AGI_________
Total loss $__________
Amount of loss on current year's return:
Loss $__________
Less: statutory % of AGI_________
Total loss $_________
Olaf and Anna should include the loss on the return, because the tax savings is greater.
Answer:
1. Amount of loss $ 70,000
Home
Auto $10,000
Total loss $80,000
Less - statutary floor amount $100
Loss before statutory % of AGI $79,900
Amount of loss on last year’s return:
Loss $79,900
Less: 10% of AGI 180000*10% $18,000
Total loss $61,900
Amount of loss on current year's return:
Loss $79,900
Less: 10% of AGI $300,000*10% $30,000
Total loss $49,900
2. Olaf and his wife Anna should include the loss on the PRIOR YEAR'S because the tax savings is $1,642 greater.
Explanation:
Calculation to Determine the amount of Olaf and Anna's loss and the year in which they should take the loss
Amount of loss $ 70,000
Home
($350,000-$280,000)
Auto $10,000
($40,000-$10,000=$30,000)
($30,000-$20,000)
Total loss $80,000
($70,000+$10,000)
Less - statutory floor amount $100
Loss before statutory % of AGI $79,900
($80,000-$100)
Amount of loss on last year’s return:
Loss $79,900
($80,000-$100)
Less: 10% of AGI $180,000*10% $18,000
(10%*$180,000)
Total loss $61,900
($79,900-$18,000)
Amount of loss on current year's return:
Loss $79,900
($80,000-$100)
Less: 10% of AGI $300,000*10% $30,000
(10%*$300,000)
Total loss $49,900
($79,900-$30,000)
2. Calculation to determine what Olaf and Anna should include the loss on the return, because the tax savings is greater.
Based on the information given in a situation where Olaf and his wife apply the loss to the prior year which means that rate of 22% will be use for the benefit of the loss
Taxable income = ($145,000 − $61,900)
Taxable income = $ 83,100
Calculation for when Loss is taken on the PRIOR year's return:
Tax savings=(22% × $61,900)
Tax savings= $ 13,618
In a situation where the loss is been applied to the current year which means that the rate of 24 % will be use for the benefit of the loss
Taxable income = ($225,000-$49,900)
Taxable income= $ 175,100
Calculation for the loss is taken on the CURRENT year's return:
Tax savings= (24% × $49,900)
Tax savings =$ 11,976
Therefore based on the above calculation Olaf and his wife Anna should include the loss on the PRIOR YEAR'S return reason been that the tax savings is $1,642 ($13618 − $11976) greater.
If equilibrium is achieved in a competitive market the deadweight loss will equal the sum of consumer surplus and producer surplus. the deadweight loss will be the same as the opportunity cost of the last unit of output sold. the deadweight loss will be maximized. there is no deadweight loss.
Answer:
there is no deadweight loss.
Explanation:
In a perfect competition, there are many buyers and sellers of homogeneous products, and there is free entry and exit in the market.
This simply means that, in a perfectly competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.
Generally, a perfectly competitive market is characterized by the following features;
1. Perfect information.
2. No barriers, it is typically free.
3. Equilibrium price and quantity.
4. Many buyers and sellers.
5. Homogeneous products.
Examples of a perfectly competitive market are the Agricultural sector, e-commerce and the foreign exchange market.
Hence, if equilibrium is achieved in a competitive market then, there is no deadweight loss i.e a loss of economic efficiency due to a lack of balance in competing economical influences for goods or services.
Coronado Industries sells one product and uses a perpetual inventory system. The beginning inventory consisted of 79 units that cost $19 per unit. During the current month, the company purchased 483 units at $19 each. Sales during the month totaled 365 units for $44 each. What is the cost of goods sold using the LIFO method?
Answer:
the cost of goods sold under LIFO method is $6,935
Explanation:
The computation of the cost of goods sold under LIFO method is shown below:
= Sales during the month × cost per unit
= 365 units × $19
= $6,935
Hence, the cost of goods sold under LIFO method is $6,935
We simply applied the above formula
Briefly describe a purchase you made where the customer service level had an effect on the product you selected or where you purchased it?
Answer:
pick 'n pay through daily promotions
A company has two open seats, Seat A and Seat B, on its board of directors. There are 6 candidates vying for these 2 positions. There will be a single election to determine the winner of both open seats. As the owner of 100 shares of stock, you will receive one vote per share for each open seat. You decide to cast all 200 of your votes for a single candidate. What is this type of voting called?
a. democratic
b. cumulative
c. straight
d. deferred
e. proxy
Answer:
b. cumulative
Explanation:
Cumulative voting is a type of voting in which more than one vote is placed to the desired candidate. The voters possess the right to extend more than one vote. All the votes in the hand of the voter can be entitled to any particular candidate as decided by the voter.
In the given situation, cumulative voting system has been used. The voter gives all the 200 votes to the single candidate.
Department S had no work in process at the beginning of the period. It added 14,800 units of direct materials during the period at a cost of $103,600; 11,100 units were completed during the period; and 3,700 units were 40% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $56,000 and factory overhead was $9,200. The total conversion costs for the period were a.$56,000 b.$9,200 c.$46,800 d.$65,200
Answer:
d.$65,200
Explanation:
Calculation to determine what The total conversion costs for the period were
Direct labor $56,000
Add Factory overhead $9,200
Total conversion costs $65,200
($56,000+$9,200)
Therefore the total conversion costs for the period were $65,200
Earley Corporation issued perpetual preferred stock with an 8% annual dividend. The stock currently yields 7%, and its par value is $100. Round your answers to the nearest cent. What is the stock's value
Answer:
$114.29
Explanation:
Calculation to determine the stock's value
Using this formula
Stock's value=Annual Dividend /Yield or Rate of return
Let plug in the formula
Stock's value=$8/7%
Stock's value=$114.29
Therefore the stock's valuewill be $114.29
Zolas' Heaters is approached by Ms. Leila, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. Zolas' Heaters has excess capacity. The following per unit data apply for sales to regular customers: Direct materials $450.00 Direct manufacturing labor 160.00 Variable manufacturing support 100.00 Fixed manufacturing support 210.00 Total manufacturing costs 920.00 Markup (25% of total manufacturing costs) 230.00 Estimated selling price $1150.00 For Zolas' Heaters, what is the minimum acceptable price of this one-time-only special order
Answer:
Zolas' Heaters
The minimum acceptable price of this one-time-only special order is:
= $887.50.
Explanation:
a) Data and Calculations:
Direct materials $450.00
Direct manufacturing labor 160.00
Variable manufacturing support 100.00
Fixed manufacturing support 210.00
Total manufacturing costs 920.00
Markup (25% of total manufacturing costs) 230.00
Estimated selling price $1,150.00
The minimum acceptable price of this one-time-only special order:
Direct materials $450.00
Direct manufacturing labor 160.00
Variable manufacturing support 100.00
Total manufacturing costs 710.00
Markup (25% of total variable mfg costs) 177.50
Selling price $887.50
in managing production worker compensation and expenditures for best practice training, the overriding objective of company managers should be to
Answer:
i am sooooooo sorry im new and i need point and agian i'm so sorry
Explanation:
To attain the lowest possible labor costs per pair produced at each production site, the corporation must minimize labor costs per pair produced at each of its plants.
What is the training objective of production workers?The overarching goal of firm management should be to obtain the lowest possible labor costs per pair produced at each production facility in controlling production worker remuneration and expenditures for best practice training.
For more information about company expenditures, refer below
https://brainly.com/question/15871053
A chain of video stores sells three different brands of DVD players. Of its DVD player sales, 50% are brand 1 (the least expensive), 30% are brand 2, and 20% are brand 3. Each manufacturer offers a 1-year warranty on parts and labor. It is known that 25% of brand 1's DVD players require warranty repair work, whereas the corresponding percentages for brands 2 and 3 are 20% and 10%, respectively.If a customer returns to the store with a DVD player that needs warranty repair work, what is the probability that it is a brand 1 DVD player
Answer: 60.98%
Explanation:
Probability that it is a brand 1 DVD player that needs repair work = Probability of brand 1 DVD needing repairs / Probability that a DVD player will need fixing while under warranty
Probability of brand 1 DVD needing repairs = Brand 1 sales percentage * Percentage of brand 1 needed repair
= 50% * 25%
= 12.5%
Probability that a DVD player will need fixing while under warranty = (50%* 25%) + (30% * 20%) + (20% * 10%)
= 20.5%
Probability that it is a brand 1 DVD player that needs repair work = 12.5% / 20.5%
= 60.98%
Questionnaires on situational leadership often ask for respondents to look at specific applications of leadership styles within situations, which may result in _____. Group of answer choices negative perceptions toward organizations a wide range of responses that are hard to validate biased results in favor of situational leadership results that are not in favor of situational leadership
Answer:
biased results in favor of situational leadership.
Explanation:
A leader can be defined as an individual who is saddled with the responsibility of controlling, managing and maintaining a group of people under him or her.
Some types of power expressed by leaders are referent power, coercive, etc.
Situational leadership is a leadership style which typically involves the leader adapting his or her style to match or suit the current work environment and fits the level of development of the followers being led.
Questionnaires on situational leadership often ask for respondents to look at specific applications of leadership styles within situations, which may result in biased results in favor of situational leadership because each situation has a unique style that suits it.
Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following:
Common stock, $6 par value, 110,000 shares authorized Preferred stock, 14 percent, par value $6 per share, 4,800 shares authorized During the year, the following transactions took place in the order presented:
A. Sold and issued 20,500 shares of common stock at $12 cash per share.
B. Sold and issued 1,200 shares of preferred stock at $16 cash per share.
C. At the end of the year, the accounts showed net income of $40,900. No dividends were declared.
Required:
Prepare the stockholders’ equity section of the balance sheet at the end of the year.
TANDY, INCORPORATED
Balance Sheet (Partial)
At December 31, this year
Stockholders’ equity:
Contributed capital:
Common stock
Preferred stock
Additional paid-in capital, common stock
Additional paid-in capital, preferred stock
Total contributed capital
Retained earnings
Total stockholders’ equity
Answer:
See below
Explanation:
Tandy Incorporated
Balance sheet (Partial)
At December 31,
Stockholder's equity :
Contributed capital :
Common stock
$123,000
Preferred stock
$7,200
Additional paid in capital common stock
$123,000
Additional paid in capital preferred
$12,000
Total contributed capital
$265,200
Retained earnings
$40,900
Total stockholder's equity
$306,100
Workings:
Common stock = Number of common shares issued × Par value of one common share
= 20,500 × $6
= $123,000
Preferred stock = Number of preferred shares issued × Par value of one preferred share
= 1,200 × $6
= $7,200
Additional paid in capital , common stock = Number of shares issued × ( issue price of one share - Par value of one share)
= 20,500 × ($12 - $6)
= 20,500 × $6
= $123,000
Additional paid in capital , preferred stock = Number of shares issued × (Issue price of one share - Par value of one share)
= 1,200 × ($16 - $6)
= 1,200 × $10
= $12,000
uses a periodic inventory system. The company has a beginning inventory of 350 units at $6 each on January 1. Hentertainment purchases 600 units at $5 each in February and 250 units at $7 each in March. There were no additional purchases or sales during the remainder of the year. Hentertainment sells 400 units during the quarter. If Hentertainment uses the LIFO method, what is its cost of goods sold
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kvtvfb to k
You are planning to buy a house in eight years. Approximately how much do you need to deposit today to have a $10,000 down payment if your investment will make 5%? *.677
A)$6,770
B) $6,590
C) $7,470
D) $9,400
E) $10,000
Answer:
the answer is B
Explanation:
One of the requirements for a patent is that the invention be new, or___________ . An invention will not satisfy this requirement if it has already received a ___________or been described in a printed publication, unless the publication was made by __________in the year before filing the patent application. In addition, if the invention was in public use, on__________ , or otherwise available to __________elsewhere in the world, the invention is not patentable.
Answer:
Novel; patent; the inventor; sale; public.
Explanation:
Patent can be defined as the exclusive or sole right granted to an inventor by a sovereign authority such as a government, which enables him or her to manufacture, use, or sell an invention for a specific period of time.
Generally, patents are used on innovation for products that are manufactured through the application of various technologies.
Basically, the three (3) main ways to protect an intellectual property is to employ the use of
I. Trademarks.
II. Patents.
III. Copyright.
One of the requirements for a patent is that the invention be new, or novel. An invention will not satisfy this requirement if it has already received a patent or been described in a printed publication, unless the publication was made by the inventor in the year before filing the patent application. In addition, if the invention was in public use, on sale, or otherwise available to the public elsewhere in the world, the invention is not patentable.
Braun Company has one service department and two operating (production) departments. Maintenance Department costs are allocated to the two operating departments based on square feet occupied. Listed below are the operating data for the current period:
Department Direct Expenses Square Feet
Maintenance $52,500 23,000
Milling 94,500 46,000
Assembly 123,400 69,000
The total cost of operating the Assembly Department for the current period is:_____.
Answer:
$154,900
Explanation:
The computation of the total cost of operating the assembly department as follows:
= Direct expenses of assembly department + allocated amount
= $123,400 + $52,500 × 69,000 ÷ (69,000 + 46,000)
= $123,400 + $52,500 × 69,000 ÷ 115,000
= $123,400 + $31,500
= $154,900
Stockbrokers who market their services with confidence that they can outperform the market average in picking stocks are especially likely to a employ workers who use heuristics. b find it difficult to decide which stocks to purchase. c use algorithms to generate stock choices. d avoid the dangers of belief perseverance. e appear credible to their customers.
Answer:
e. appear credible to their customers.
Explanation:
Sarbanes-Oxley Act of 2002 is a legal framework which was passed by the 107th U.S Congress on the 30th of July, 2002. The law required that investment banking be completely made rid of research analysts who works at a broker-dealer firms, so that the analysts are not influenced to write favorable reports to enhance their potential investment banking businesses.
It is a law that imposes a stiffer penalty for any securities related law-break offence by accountants, auditors, etc., by mandating strict reforms to the existing securities regulations.
A stockbroker refers to an individual who is saddled with the responsibility of buying and selling stocks (shares) on a stock exchange market on behalf of his or her clients.
Stockbrokers who market their services with confidence that they can outperform the market average in picking stocks are especially likely to appear credible to their customers.
The standard deviation of the market-index portfolio is 35%. Stock A has a beta of 1.40 and a residual standard deviation of 45%.
a-1. Calculate the total variance of stock A if its beta is increased by 0.20?
a-2. Calculate the total variance of stock A if its residual standard deviation is increased by 7.54%?
b. An investor who currently holds the market-index portfolio decides to reduce the portfolio allocation to the market index to 90% and to invest 10% in stock A. Which of the following changes (an increase of 0.20 in beta or increase of 7.54% in residual standard deviation) will have a greater impact on the portfolio's standard deviation?
i. Both will have the same impact.
ii. Increase of .20 in beta will have a greater impact.
iii. Increase of 7.54% in the residual standard deviation will have a greater impact.
Answer:
a-1. Variance = Beta² * Standard deviation of market² + Residual standard deviation²
Beta increases by 0.2
= 1.4 + 0.2
= 1.6
Total variance
= 1.6² * 35%² + 45%²
= 51.61%
a-2. If residual value increases by 7.54% it becomes:
= 45 + 7.54
= 52.54%
Total variance
= 1.4² * 35%² + 52.54%²
= 51.61%
b. ii. Increase of .20 in beta will have a greater impact.
Portfolio standard deviation helps ascertain the effects of systematic risk on the portfolio. Beta is used to represent that systematic risk. A change in Beta will therefore affect standard deviation more because standard deviation shows the impact of beta as a representation of systematic risk.
if you writte here you are not a helper people of branly
Answer:
sorry just wanted the points
Explanation:
Many commodities have futures markets associated with them. A futures market is a prediction market that aggregates information based on uncertain events that may impact the market, and buyers commit to a financial contract in which they obligate themselves to purchasing a fixed quantity of the asset at a specified price on a certain date. In April, 2019, the national average price of unleaded gasoline was $2.87 per gallon. At the same time, the futures price for a June contract on unleaded gasoline was $2.07 per gallon.
A. The forecasted price in the futures market suggests that unleaded gasoline prices will_____by June of 2019.
B. If the information transmitted in this market is accurate and unbiased, then the predict____the actual price we will see in June.
Answer:
Answer is explained in the explanation section below.
Explanation:
Solution:
a.
Unleaded fuel prices are expected to fall by June 2019 according to future demand forecasts.
Since the future price is less than the spot price, it would be better for long-term buyers who can wait for the price to increase because the market is currently in BACKWARDATION. This happens due to a short-term disparity in demand and supply.
b.
If the information in this sector is reliable and impartial, the expected June price will most likely be similar to the real price we will see in June.
It is reliable if the market is accurate and impartial, i.e. the market research on which knowledge flows.
The prices of goods are either integrated or expressed in such a flow of knowledge.
So, if it's unbiased and reliable, the forecast prices would be reasonably similar to the real future price.
Answer:
A. Decline
B. Close to
Explanation:
A. The prediction market for gasoline is much lower so prices would need to decline
B. Due to the information being accurate, it is safe to assume that the predicted price will we close to the actual price
According to the rule of 70, if a country's real GDP per capita grows at a rate of 2% instead of at a rate of 3%, it would take _____ for that country to double its level of real GDP per capita. a. 35 additional years b. 11.67 additional years c. 23.3 additional years d. 30 additional years e. 15 additional years.
Answer:
b. 11.67 additional years
Explanation:
Branch Company, a building materials supplier, has $18,400,000 of notes payable due April 12, 2022. At December 31, 2021, Branch signed an agreement with First Bank to borrow up to $18,400,000 to refinance the notes on a long-term basis. The agreement specified that borrowings would not exceed 70% of the value of the collateral that Branch provided. At the date of issue of the December 31, 2021, financial statements, the value of Branch's collateral was $19,600,000. On its December 31, 2021, balance sheet, Branch should classify the notes as follows:
a. $18,400,000 of long-term liabilities.
b. $18,400,000 of current liabilities.
c. $3,680,000 long-term and $14,720,000 current liabilities.
d. $15,680,000 long-term and $2,720,000 current liabilities.
Answer:
The answer is "Choice d"
Explanation:
Please find the complete question in the attached file.
Follows are the calculation to this question:
The notes on payable= [tex]\$18,400,000[/tex]
Calculating the Refinancing ability:
[tex]=\$ 19,600,000 \times 80\% \\\\ = \$ 19,600,000 \times \frac{80}{100} \\\\ = \$ 196,000 \times 80 \\\\ =\$15,680,000[/tex]
The current liability= [tex]\$2,720,000[/tex]
Dynamic Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on June 30, 20Y7, the end of the fiscal year, the balances of selected accounts from the ledger of Dynamic Weight Loss are as follows:
Accounts Payable $51,200
Accounts Receivable 187,500
Accumulated Depreciation - Equipment 186,000
Cash ?
Common Stock 100,000
Equipment 325,900
Land 375,000
prepaid Insurance 8400
Prepaid Rent 6000
Retained Earnings 620,300
Salaries Payable 7500
Supplies 11,200
Unearned Fees 21,000
Required:
Prepare a classified balance sheet that includes the correct balance for Cash.
Answer:
Dynamic Weight Loss Co.
Statement of Financial position as at June 30, 20Y7
Assets
Current Asset $ $
Cash 72,000
Accounts Receivable 187,500
Supplies 11,200
prepaid Insurance 8,400
Prepaid Rent 6,000
Total Current asset 285,100
Property, plant and Equipment
Land 375,000
Equipment 325,900
Accumulated Depreciation - Equipment (186,000) 514,900
Total Assets 800,000
Liabilities and Owners Equities
Current liabilities
Accounts Payable 51,200
Salaries Payable 7,500
Unearned Fees 21,000
Total liabilities 79,700
Owners Equities
Common Stock 100,000
Retained Earnings 620,300
Total Equities 720,300
Total Liabilities and Owners Equities 800,000
Explanation:
The balance sheet shows the company's assets, liabilities and equities.
Using the accounting equation
Assets = Liabilities + Equities
Total assets
= 187,500 + 325,900 - 186,000 + 375,000 + 8400 + 6000 + 11,200 + C
where C is the closing balance in the cash account
= 728,000 + C
Total liabilities
= 51,200 + 7500 + 21,000
= $79,700
Total equities
= 620,300 + 100,000
= $720,300
Since Assets = Liabilities + Equities
728,000 + C = 720,300 + 79,700
C = 720,300 + 79,700 - 728,000
C = $72,000
The following cost information pertained to the Violin Division of Stringing Music Co. and was based on monthly demand and sales of 100 units:
Per-Unit Costs Variable production costs:
Direct materials $140
Direct labor 170
Variable factory overhead 80
Fixed production costs:
Depreciation (equipment) 40
Factory rent 68
Other 16
Total production cost $514
Variable selling & administrative costs $24 per unit
Fixed selling & administrative costs $36 per unit
Assume that the Violin Division was evaluating whether or not it would accept a special sales order for 10 violins at $390 per unit. For this purpose, total relevant cost per unit (given the costs stated above) is:
a. $330
b. $342
c. $390
d. $366
e. $354
Answer:
Total relevant costs= $390
Explanation:
I will assume that the company has unused capacity and that the special offer will not affect the current sales. Given these assumptions, the fixed costs would not be taken into account.
Relevant costs:
Direct materials $140
Direct labor 170
Variable factory overhead 80
Total relevant costs= $390
Priority Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended: Actual units produced: 9,000 Actual variable overhead incurred: $54,400 Actual machine hours worked: 16,000 Standard variable overhead cost per machine hour: $3.50 If Priority estimates two hours to manufacture a completed unit, the company's variable-overhead efficiency variance is: Multiple Choice None of the answers is correct. $1,600 favorable. $7,000 favorable. $7,000 unfavorable. $1,600 unfavorable.
Answer:
The correct option is $7,000 favorable.
Explanation:
This can be calculated using the following formula:
Standard hours for actual units produced = Actual units produced * Estimated number of hours to manufacture a completed unit = 9,000 * 2 = 18,000
Variable-overhead efficiency variance = (Actual machine hours worked - Standard machine hours for actual units produced) * Standard variable overhead cost per machine hour = (16,000 - 18,000) * 3.50 = –$7,000
Since the calculated Variable-overhead efficiency variance is negative, that implies that it is favorable,
Therefore, the correct option is $7,000 favorable.
g You have been hired to value a new 25-year callable, convertible bond with a par value of $1,000. The bond has a coupon rate of 6 percent, payable annually. The conversion price is $180 and the stock currently sells for $42.10. The stock price is expected to grow at 10 percent per year. The bond is callable at $1,200; but based on prior experience, it won't be called unless the conversion value is $1,300. The required return on this bond is 8 percent. What value would you assign to this bond
Answer:
The value that would be assigned to this bond is $1,209.36.
Explanation:
From the question, we have:
n = Number of years = 25
FV = Future value = $1,000
PMT = Coupon payment = Coupon rate * FV = 6% * $1000 = $60
r = required return rate = 8%, or 0.08
CP = Conversion price = $180
P = Current selling price = $42.10
t = number of years the bond will be called = ?
PV = [(PMT / r) * (1 - (1 / (1 + r)^n))] + (FV / (1 + r)^n) = [(60 / 0.08) * (1 - (1 / (1 + 0.08)^25))] + (1000 / (1 + 0.08)^25) = $786.50
Therefore, we have:
PV = Current value of the bond = $786.50
CR = Conversion ratio = FV/CP = 1000 / 180
CV = Conversion value = P * CR = $42.10 * (100 / 180) = $23.39
CCP = Current conversion price = CV = $23.39
CPB = Conversion price at which Bond will be called = $1,300
Therefore. we have:
CCP * CR^t = CPB ................... (1)
Substitute relevant values into equation (1) and solve for t, we have:
$23.39 * (1000 / 180)^t = $1,300
23.39 * 5.56^t = 1,300
5.56^t = 1,300 / 23.39
t = ln(1,300 / 23.39) / ln(5.56)
t = 2.34 years
Therefore, we have:
Value assigned to the bond = PV = [(PMT / r) * (1 - (1 / (1 + r)^t))] + (CPB / (1 + r)^t) = [(60 / 0.08) * (1 - (1 / (1 + 0.08)^2.34))] + (1300 / (1 + 0.08)^2.34) = $1,209.36
Flow Company has provided the following information for the year ended December 31, 2019: • Cash paid for interest, $20,000 • Cash paid for dividends, $6,000 • Cash dividends received, $4,000 • Cash proceeds from bank loan, $29,000 • Cash purchase of treasury stock, $11,000 • Cash paid for equipment purchase, $27,000 • Cash received from issuance of common stock, $37,000 • Cash received from sale of land with a $32,000 book value, $25,000 • Acquisition of land costing $51,000 in exchange for preferred stock issuance • Payment of a $100,000 note payable by exchanging used machinery with a $77,000 book value and $100,000 fair value How much was Flow's net cash flow from financing activities? A net outflow of $51,000. A net inflow of $29,000. A net outflow of $53,000. A net inflow of $49,000.
Answer:
A net inflow of $49,000.
Explanation:
The Cash flow from Financing Activities section shows the cash resulting from sourcing finance and repayments thereoff.
Cash flow from Financing Activities
Cash paid for dividends ($6,000)
Cash proceeds from bank loan $29,000
Cash purchase of treasury stock ($11,000)
Cash received from issuance of common stock $37,000
Net Cash from Financing Activities $49,000
therefore,
The result from Financing Activities shows a net inflow of $49,000.
On April 1, Year 1, Fossil Energy Company purchased an oil producing well at a cash cost of $11,100,000. It is estimated that the oil well contains 840,000 barrels of oil, of which only 740,000 can be profitably extracted. By December 31, Year 1, 37,000 barrels of oil were produced and sold. What is depletion expense for Year 1 on this well
Answer:
$555,000
Explanation:
Depletion expense = barrels mined in year 1 / barrels that can be profitably extracted ) x cost of the well
37,000 / 740,000) x 11,100.000 = $555,000
