Answer:
12%
Explanation:
the YTM of the Bond is 12 %
Klean Fiber Company is the creator of Y-Go, a technology that weaves silver into its fabrics to kill bacteria and odor on clothing while managing heat. Y-Go has become very popular in undergarments for sports activities. Operating at capacity, the company can produce 1,053,000 Y-Go undergarments a year. The per unit and the total costs for an individual garment when the company operates at full capacity are as follows.
Per Undergarment Total
Direct materials $1.96 $2,063,880
Direct labor 0.47 494,910
Variable manufacturing overhead 0.98 1,031,940
Fixed manufacturing overhead 1.41 1,484,730
Variable selling expenses 0.38 400,140
Totals $5.20 $5,475,600
The U.S. Army has approached Klean Fiber and expressed an interest in purchasing 249,700 Y-Go undergarments for soldiers in extremely warm climates. The Army would pay the unit cost for direct materials, direct labor, and variable manufacturing overhead costs. In addition, the Army has agreed to pay an additional $1.01 per undergarment to cover all other costs and provide a profit. Presently, Klean Fiber is operating at 70% capacity and does not have any other potential buyers for Y-Go. If Klean Fiber accepts the Army’s offer, it will not incur any variable selling expenses related to this order.
Required:
Prepare an incremental analysis for the Klean Fiber.
Answer:
Klean Fiber Company
Incremental Analysis for the
Special order by the U.S. Army:
Units to be purchased = 249,700
Sales Revenue $4.42
Variable costs:
Direct materials $1.96
Direct labor 0.47
Variable manufacturing overhead 0.98
Total variable costs 3.41
Additional for contribution margin 1.01
Contribution margin = $252,197 ($1.01 * 249,700)
Explanation:
a) Data and Calculations:
Annual production capacity = 1,053,000
Per Undergarment Total
Direct materials $1.96 $2,063,880
Direct labor 0.47 494,910
Variable manufacturing overhead 0.98 1,031,940
Fixed manufacturing overhead 1.41 1,484,730
Variable selling expenses 0.38 400,140
Totals $5.20 $5,475,600
Fortuna Company is preparing its statement of cash flows. Cash disbursements during the year included:
Answer: $100,000
Explanation:
Financing activities are those that relate with how the company finances its operations and includes cashflows related to equity and long term liability.
The financing activities outflows here total:
= Payment of dividends to stockholders
= $100,000
The two other cashflows are considered investing activities.
A company has annual sales of $32,000 and accounts receivables of $2,200. The gross profit margin is 31.3%. The receivable days estimated from the data above is ______.
Answer: 80.17 days
Explanation:
The Receivable days estimated is calculated by the formula:
= Accounts receivable * 365 / (Annual sales * Gross profit margin)
= 2,200 * 365/ (32,000 * 31.3%)
= 2,200 * 0.03644169329
= 80.17 days
In a perpetual inventory system a.the inventory records cannot be computerized. b.the amount of inventory for sale and the amount sold are not listed in the inventory account. c.a count must be made in order to know the inventory amount. d.each purchase and sale of inventory is recorded in the inventory account.
Answer:
d. each purchase and sale of inventory is recorded in the inventory account.
Explanation:
In a perpetual inventory system we keep track of inventory balance and cost of sales whenever a sale or purchase transaction occurs. Under the perpetual inventory system, the firm always keeps updated inventory records.
Charlotte's Crochet Shoppe has 15,500 shares of common stock outstanding at a price per share of $79 and a rate of return of 11.77 percent. The company also has 320 bonds outstanding, with a par value of $2,000 per bond. The pretax cost of debt is 6.21 percent and the bonds sell for 98.4 percent of par. What is the firm's WACC if the tax rate is 39 percent?
A. 9.06%
B. 8.58%
C. 10.31%
D. 9.88%
E. 8.75%
Pina Colada Corp. does not ring up sales taxes separately on the cash register. Total receipts for February amounted to $Unresolved. If the sales tax rate is 6%, what amount must be remitted to the state for February's sales taxes
Answer:
b. $2,616
Explanation:
Missing word "Total receipts for February amounted to $46216. If the sales tax rate is 6%, what amount must be remitted to the state for February's sales taxes? O $2773 O "$2616 O $2608 O It cannot be determined.
Sales tax = Total receipt * Tax rate
Sales tax = Total receipt * 6/106
Sales tax = $46,216 * 6/106
Sales tax = $2,616
So, the amount that must be remitted to the state for February's sales taxes is $2,616.
For Sanborn Co., sales is $1,000,000, fixed expenses are $300,000, and the contribution margin per unit is $60. What is the break-even point? g
Answer:
Break-even point in units= 5,000
Explanation:
Giving the following information:
Sales= $1,000,000
Fixed expenses= $300,000
Contribution margin per unit= $60
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 300,000 / 60
Break-even point in units= 5,000
a company enters into a long futures contract to buy 4,000 barrels of oil for $62.50 per barrel. the initial margin is $62.50 x 4,000. what oil futures price will allow $2,000 to be withdrawn from the margin account
Answer:
For $2,000 to be withdrawn from the margin account, the oil futures price must be $62.
Explanation:
a) Data and Calculations:
Price of the long futures contract to buy 4,000 barrels of oil = $62.50 per barrel
Initial margin = $62.50 * 4,000
b) If the futures price is fixed at $62 per barrel and the initial margin per barrel already opened with a broker is $62.50, then the security investor can withdraw $2,000 ($0.50 * 4,000) from the margin account. This will result in an excess of $0.50 per barrel. Computationally, $0.50 * 4,000 = $2,000.
To report insights, researchers must combine their knowledge of business with their intimate knowledge of the research sponsor-manager gained while conducting the research.
A. True
B. False
Answer:
A. True
Explanation:
Any time you present a research report, you are combining your previous knowledge with new insights and knowledge gained while preparing the report. This applies to basically every type of new report that you prepare and even updates of prior reports. Sometimes the conditions change between the time the original report was made and the next periodic report.
The statement that researchers needs to add the knowledge of business as well as that of intimate research sponsor-manager to report insights is True.
Insights serves as the interpretations of raw data which contains some meaning in a particular context to the audience.As a researcher, that want to report an insight, there is a need to combine the knowledge gained from sponsor-manager and knowledge from business during the research.Therefore, the statement is True.
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SprayCo Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On March 9 of the current year, SprayCo reacquired 16,900 shares of its common stock at $23 per share. On June 9, 10,600 of the reacquired shares were sold at $25 per share, and on November 13, 4,100 of the reacquired shares were sold at $25.
Required:
Journalize the transactions of March 9, June 9, and November 13.
Answer:
Date Account Title Debit Credit
Mar 9 Treasury Stock $388,700
Cash $388,700
Working:
Treasury stock = 16,900 * 23 = $388,700
Date Account Title Debit Credit
June 9 Cash $265,000
Treasury Stock $243,800
Additional Paid-in capital - $21,200
Treasury stock.
Working:
Cash = 10,600 * 25 = $265,000
Treasury stock = 10,600 * 23 = $243,800
Date Account Title Debit Credit
Nov 13 Cash $102,500
Treasury Stock $ 94,300
Additional Paid-in capital - $ 8,200
Treasury stock.
Working:
Cash = 4,100 * 25 = $102,500
Treasury stock = 4,100 * 23 = $94,300
Critical Chain Project Management (CCPM) attempts to keep the most highly demanded resource busy on critical chain activities, but not overloaded.
a. True
b. False
Answer:
True
Explanation:
Critical-Chain
This was introduced or originated by Eli Goldratt in 1997. Its aim is to challenges conventional project management approaches and absolute dependence on TOC principles. The idea of what to change or eliminated is the largely rooted behaviors that is common with the traditional project management practices. It is very multitasking anf it is the longest string of reliance that occur on the project.
Critical- Chain Approach
This approach simply covers project network as it ca be limited by both resource and technical reliance/dependencies. each type of limitations can create task reliance.
The Summary of Critical Chain Approach
1.) use Aggressive but Possible Times (ABPT) for task durations
2.) identify the critical chain by accounting for resource dependencies
3.) use buffer management to track project progress etc.
Dotsero Technology, Inc. has a job-order costing system. The company uses predetermined overhead rates Iin apply manufacturing overhead cost to individual jobs. The predetermined overhead rate in department A is based on machine-hours, and the rate in department B is based on direct material cost. At the beginning of the most recent year, the company's management made the following estimates for the year:Department A Department BMachine-hours............................ 70,000 19,000Direct labor-hours........................ 30,000 60,000Direct materials cost..................... 195,000 282,000Direct labor cost.......................... 260,000 520,000Manufacturing overhead cost............ 420,000 705,000Compute the predeterminded overhead rates for department A and department B.
Answer:
Dept. A Dept. B
Machine hours 70,000
Direct Material Cost 282,000
Manufacturing overhead 420,000 705,000
Predetermined OH rate 420,000 / 70,000 705,000/282,000
= 6.00 per MH = 2.50 per dollar of DM cost
Mark Turney owns Creative Corners. He does his banking at United Federal Bank (UFB) in Tucson, Arizona. The amounts in his general ledger for payroll taxes and the employee's withholding of Social Security, Medicare, and federal income tax as of April 15 of the current year show the following: Social Security tax payable (employer and employee), $3,020; Medicare tax payable (employer and employee), $734; FUTA tax payable, $84; SUTA tax payable, $414; and Employees income tax payable, $4,622. Journalize the payment of the Form 941 deposit to UFB and the payment of the SUTA tax to the State of Arizona as of April 15, 20--.
Answer and Explanation:
The journal entries are shown below
On 15-Apr
FICA social Security tax payable Dr. $3,020
FICA medicare tax payable Dr. $734
Federal Income tax payableDr. $4,622
To Cash account $8,376
(Being cash paid)
on 15-Apr
State Unemployment tax payable Dr.$414
to Cash account $414
(being cash paid)
On 15-Apr
Federal Unemployment tax payable Dr. $84
To Cash account $84
(being cash paid is recorded)
If the efficient market hypothesis is true, price changes are independent and biased. Group of answer choices
Answer:
Price changes are independent but not biased in efficient market hypothesis.
Explanation:
In simple words, the efficient-market hypothesis asserts that asset prices represent all relevant knowledge. Because market rates must only respond to fresh knowledge it is difficult to continuously "beat the market" on something like a risk-adjusted approach.
Thus the given statement is partially true.
Chavez Corporation reported the following data for the month of July: Inventories: Beginning Ending Raw materials $46,000 $39,500 Work in process $25,500 $36,000 Finished goods $41,500 $56,500 Additional information: Raw materials purchases $75,500 Direct labor cost $100,500 Manufacturing overhead cost incurred $68,500 Indirect materials included in manufacturing overhead cost incurred $11,800 Manufacturing overhead cost applied to Work in Process $67,500 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. The cost of goods manufactured for July is:
Answer:
Cost of goods manufactured= $228,700
Explanation:
To calculate the cost of goods manufactured, we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 25,500 + (46,000 + 75,500 - 39,500) + 100,500 + (68,500 - 11,800) - 36,000
cost of goods manufactured= $228,700
We deduct the indirect material from overhead because it is already incorporated into direct materials.
Bonner Metals wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 8.5 percent bonds on the market that sell for $959, make semiannual payments, and mature in 16 years. What should the coupon rate be on the new bonds if the firm wants to sell them at par?
Answer: 8.99%
Explanation:
The coupon rate on the new bonds if the firm wants to sell them at par will be calculated thus:
Par value = 1000
Selling value = 959
Maturity = 16 × 2 = 32
Coupon = 8.5% = 8.5% × 1000 = $85
Semiannual PMT = $85/2 = $42.5
The coupon rate on the new bonds will be:
= Rate(32, 42.5, -959, 1000) × 2
= 8.99
Coupon rate = 8.99%
what is gompertz function
Answer:
The Gompertz curve or Gompertz function is a type of mathematical model for a time series, named after Benjamin Gompertz (1779–1865). It is a sigmoid function which describes growth as being slowest at the start and end of a given time period. ... It is a special case of the generalised logistic function.
Innovative Consulting Co. has the following accounts in its ledger: Cash, Accounts Receivable, Supplies, Office Equipment, Accounts Payable, Common Stock, Retained Earnings, Dividends, Fees Earned, Rent Expense, Advertising Expense, Utilities Expense, Miscellaneous Expense. Journalize the following selected transactions for October 20Y2 in a two-column journal. Journal entry explanations may be omitted. If an amount box does not require an entry, leave it blank. Oct. 1. Paid rent for the month, $4,300. 3. Paid advertising expense, $2,750. 5. Paid cash for supplies, $1,180. 6. Purchased office equipment on account, $18,100. 12. Received cash from customers on account, $5,900. 20. Paid creditor on account, $1,730. 27. Paid cash for miscellaneous expenses, $750. 30. Paid telephone bill for the month, $280. 31. Fees earned and billed to customers for the month, $39,300. 31. Paid electricity bill for the month, $470. 31. Paid dividends, $3,000.
Answer:
Date Accounts title Debit$ Credit$
1-Oct Rent expense Account 4300
Cash account 4300
3-Oct Advertisement expense 2760
Cash account 2760
5-Oct Supplies Account 1180
Cash account 1180
6-Oct Office equipment Account 18100
Accounts payable 18100
10-Oct Cash account 5900
Accounts receivable 5900
15-Oct Accounts payable 1730
Cash account 1730
27-Oct Misc expense Account 750
Cash account 750
30-Oct Utility expense Account 280
Cash account 280
31-Oct Accounts receivable Account 39300
Service revenue 39300
31-Oct Utility expense Account 470
Cash account 470
31-Oct Jason payne, Drawings 3000
Cash account 3000
SpyingEyes, Inc., a large data intelligence company, has storage technology at multiple sites that store redundant data from its servers at the main office. What risk management strategies has the company primarily implemented?
Answer:
Avoid it risk management strategies
Explanation:
As the name suggests, In Avoid it risk management strategies the organisation takes every feasible step to stop any mismanagement from happening altogether. In other words, this strategy is based on strict monitoring and preparedness in advance.
Thus, from the above we can conclude that the above case illustrates avoid it risk management strategy.
Given the following information, calculate the funds from operation (FFO).
Net income: $1,200,000
Gain/losses from infrequent and unusual events: $0
Amortization of tenant improvements: $120,000
Amortization of leasing expenses: $75,000
Depreciation (real property): $2,675,000.
a. $195,000
b. $1,395,000
c. $2,870,000
d. $4,070,000
Answer:
Funds from Operations = 4070000
Explanation:
Use the below formula to find the fund from operations:
Funds from Operations = Net Income + Depreciation + Amortization - Gains on Sales of Property
Funds from Operations = 1200000 + 2675000 + 75000 + 120000
Funds from Operations = 4070000
You would use scenario analysis when:________.
a. Testing how an increase in revenue growth affects the share price
b. Performing what-if analysis to support business planning
c. Assessing which assumption has the biggest impact on the model
d. Comparing different business cases about the future with multiple variables changed
Answer:
d. Comparing different business cases about the future with multiple variables changed
Explanation:
I would start off by defining scenario analysis first. Scenario analysis can be defined as a process whereby future values of a portfolio investment can be predicted given that an event may occur or may not occur. In other words, it is a way of knowing what would happen to the values of a portfolio if a particular event occurs or if the event doesnt occur.
Given this explanation, the right answer to this question is option d, Comparing different business cases about the future with multiple variables changed
Charles Corporation produces and sells a single product. Data concerning that product appear below:
Per Unit Percent of Sales
Selling Price $190 100%
Variable Expenses 38 20%
Contribution Margin 152 80%
Fixed expenses are $87,000 per month. The company is currently selling 1,000 units per month. Management is considering using a new component that would increase the unit variable cost by $28. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 500 units. What should be the overall effect on the company's monthly net operating income of this change?
Which of the following statements is INCORRECT. All else equal, 1. If a bond's yield-to-maturity (YTM, i.e., market interest rate) is greater than its coupon rate, then the bond is trading at a premium. 2. Duration measures the sensitivity of a bond's price to changes in interest rate. 3. If a bond's market value is equal to its par amount, then its YTM will be equal to its coupon rate. 4. The estimated market price of a bond is the sum of its future discounted cash flows.
Answer:
1
Explanation:
When the yield to maturity is greater than the coupon rate, the bond is selling at a discount.
When the yield to maturity is less than the coupon rate, the bond is selling at a premium.
When the yield to maturity is equal to the coupon rate, the bond is selling at par.
Brinker accepts all major bank credit cards, including First Savings Bank's, which assesses a 5% charge on sales for using its card. On May 26, Brinker had $6,200 in First Savings Bank Card credit sales. What entry should Brinker make on May 26 to record the deposit
Answer:
Date Account titles and explanation Debit Credit
May 20 Cash ($6,200 - $310) $5,890
Credit card expenses ($6,200*5%) $310
Sales $6,200
(To record the deposit)
If the keyword an advertiser is bidding on is used in the ad and on the landing page, then the advertiser will receive a higher Quality Score for Group of answer choices higher expected CTR more positive landing page experiences by searchers lower bounce rate ad relevance
Answer:
If the keyword an advertiser is bidding on is used in the ad and on the landing page, then the advertiser will receive a higher Quality Score for
ad relevance.
Explanation:
Ad relevance is a component that gives an advertiser higher quality score. It is an indication that the keyword is optimized to meet the customer's search query. It shows how closely the ad matches the customer's search because a correlation exists between the keyword, the ad, and the post-click landing page. It is paramount to achieve ad relevance in any pay-per-click advertising (PPC), otherwise called search engine marketing (SEM) or search advertising, to justify the ad costs.
Canton Company sells a motor that carries a 60-day unconditional warranty against product failure. From prior years' experience, Canton estimates that 3% of units sold each period will require repair at an average cost of $160 per unit. During the current period, Canton sold 100,000 units and repaired 2,400 of those units. (a) How much warranty expense must Canton report in its cur
Answer:
$480,000
Explanation:
Calculation to determine much warranty expense must Canton report
Using this formula
Warranty expense=Average cost per unit*Unit sold*Estimated percentage of units sold
Let plug in the formula
Warranty expense= $160*100,000*3%
Warranty expense=$480,000
Therefore warranty expense that Canton must report is $480,000
Jeremy is thinking of starting up a small business selling NASCAR memorabilia. He is considering setting up his business as a sole proprietorship. What is one advantage to Jeremy of setting up his business as a sole proprietorship
Complete Question:
a. As a sole proprietor, Jeremy would face limited liability.
b. As a sole proprietor, Jeremy would have both ownership and control over the business.
c. As a sole proprietor, Jeremy would have the ability to share risk with shareholders.
d. All of the above would be advantages of setting up his business as a sole proprietorship.
Answer:
b. As a sole proprietor, Jeremy would have both ownership and control over the business.
Explanation:
A sole proprietorship business is a type of business that is owned by a single person and as such their profits are taxed once as personal income tax. Thus, it is a type of business that is typically owned by an individual or one person and as a result, this single individual is solely responsible for its debts.
Generally, a major advantage of sole proprietorship is that the owner has an absolute control over the business and would be the only one to define how it's shall be run.
Hence, an advantage to Jeremy of setting up his business as a sole proprietorship is that he would have both ownership and control over the business.
Apple Computers Issued a 30-year $8,000,000 bond on January 1, 20xx with a 5% stated interest rated. Interest is paid semiannually on June 30 and December 31st. What is the amount that Apple Computers would record as interest expense on June 30, 20xx (the first interest payment), assuming that no interest expense has been recorded since the bond was issued on January 1st?
Answer:
$200,000
Explanation:
Now, it is assumed here that the bonds are issued at par.
First interest payment = Face Value * Stated Interest Rate * Half yearly
First interest payment = $8,000,000 * 5% * 1/2
First interest payment = $200,000
So, the amount that Apple Computers would record as interest expense on June 30 is $200,000.
A monopolistically competitive firm is producing at an output level in the short run where average total cost is $4.75, price is $4.75, marginal revenue is $3.00, and marginal cost is $3.50. This firm is operating
Answer:
loss at the short run
Explanation:
marginal cost is higher than the marginal revenue
Task performance is defined as: Activities that transform raw materials into the goods and services that are produced by the organization. Activities that help with the transformation process by replenishing the supply of raw materials. A and B Offering help and cooperating with others.
Answer:
The correct option is A and B.
Explanation:
Task performance can be described as actions that convert raw materials into the goods and services which a company produces, as well as actions that aid in the conversion process by restocking raw materials, distributing finished products, or providing critical planning, supervising, staff functions, or coordination that promote effective and efficient functioning of the organization.
Based on the description above, the correct option is A and B. That is, task performance is defined as activities that transform raw materials into the goods and services that are produced by the organization, and activities that help with the transformation process by replenishing the supply of raw materials.
