Answer:
The correct answer is the option A: Margin of safety ratio.
Explanation:
To begin with, the name of "Margin of Safety", in the field of business and accounting, is refered to a ratio whose main purpose is to establish the point in where the company knows that it has to sale obligately due to the fact that at that point the company can be sure that they have covered the fixed costs of it and after that point every sale will became a profit for the company. So that is why that this ratio indicates the percentage of each sales dollar that is available to cover those costs.
Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per attaché case are $39, $7, and $12, respectively. The president is pleased with the following performance report:
Actual Costs Static Budget Variance
Direct materials 564,000 $400,000 $36,000 F
Direct manufacturing labor 78,000 80 2,000 F
Direct marketing (distribution) labor 110,000 120,000 10,000F
Actual output was 9,100 attaché cases. Assume all three direct-cost items above are variable costs.
Requirement:
a. Is the president's pleasure justified?
b. Prepare a revised performance report that uses a flexible budget and a static budget.
Answer:
a) The president's pleasure is not justified because the budget performance was unfavorable in all the variable costs.
b) Revised Flexible Performance Report
Flexible Actual Variance
Budget Costs
Direct materials $354,900 $564,000 $209,100 U
Direct manufacturing labor 63,700 78,000 14,300 U
Direct marketing (distribution) labor 109,200 110,000 800 U
Flexible Static Variance
Budget Budget
Direct materials $354,900 $400,000 $45,100 U
Direct manufacturing labor 63,700 80,000 16,300 U
Direct marketing (distribution) labor 109,200 120,000 10,800 U
Explanation:
a) Data and Calculations:
Actual Costs Static Budget Variance
Direct materials 564,000 $400,000 $36,000 F
Direct manufacturing labor 78,000 80,000 2,000 F
Direct marketing (distribution) labor 110,000 120,000 10,000 F
b) Budgeted Prices:
Direct materials = $39
Direct labor = $7
Direct marketing labor = $12
Actual Output = 9,100
Flexible Budget:
Direct materials = $354,900 ($39 x 9,100)
Direct labor = $63,700 ($7 x 9,100)
Direct marketing labor = $109,200 ($12 x 9,100)
The flexible budget for direct materials, labor and marketing were flexed in line with actual output.
Cost recovery. Richardses' Tree Farm, Inc. purchased a new aerial tree trimmer for $. It is classified in the property class category of a single-purpose agricultural and horticultural structure. Then the company sold the tree trimmer after four years of service. If a seven-year life and MACRS, LOADING..., was used for the depreciation schedule, what is the after-tax cash flow from the sale of the trimmer (use a % tax rate) if a. the sales price was $? b. the sales price was $? c. the sales price was $? a. If the sales price is $, what is the after-tax cash flow?
Answer:
after tax cash flow = $29,512.32
Explanation:
the numbers are missing in this question:
purchase cost = $82,000
tax rate = 40%
selling price at end of year 4 = $32,000
MACRS 7 year depreciation schedule:
year % depreciation expense carrying value
1 14.29% $11,717.80 $70,282.20
2 24.29% $19,917.80 $50,364.40
3 17.49% $14,341.80 $36,022.60
4 12.49% $10,241.80 $25,780.80
after tax cash flow = $32,000 - [($32,000 - $25,780.80) x 40%] = $32,000 - $2,487.68 = $29,512.32
What is a commodity?
The correct answer is D. Something of value that can be bought, sold, or traded
Explanation:
The word "commodity" is used in economics to refer to any good or product that has an economic value and due to this, can be part of the market. This means any commodity can be traded, sold, or bought. Moreover, this concept is mainly applied to raw materials such as coal, timber, or wheat that can be used to make other manufactured products such as plastics, furniture, or flour. According to this, the option that correctly describes the word commodity is option D.
Answer:
D. Something of value that can be bought, sold, or traded
Glacier Trails manufactures backpacks for adventurers. The backpacks come in two types: Daytripper, and Excursion. Glacier anticipates the following sales volumes for the coming period:
Daytripper: 2,000 backpacks
Excursion: 1.200 backpacks
If total budgeted revenue for the period is $250,000 and the sales price for Daytripper backpacks is $50, what is the budgeted sales price for Excursion backpacks?
a. $ 78.
b. $125.
c. $5130.
d. $158.
e. none of the above.
Answer:
the budgeted sales price for Excursion backpacks is b. $125.
Explanation:
Total Budgeted Revenue = Daytripper Budgeted Revenue + Excursion Budgeted Revenue
Therefore,
Let the budgeted sales price for Excursion backpacks be $y
$250,000 = 2,000 × $50 + 1.200 × $y
$150,000 = $1,200 y
$125 = y
Therefore, the budgeted sales price for Excursion backpacks is $125.
Answer this question on the basis of the given information for an economy in 2016.
Dollar value of resource extraction activity = $20 billion
Dollar value of production activity = $50 billion
Dollar value of distribution activity = $80 billion
Dollar value of final output = $110 billion
Suppose that in 2017, the dollar value of distribution activity fell to $70 billion, but the other values remained the same. Based on this, we could conclude that from 2016 to 2017,
A. neither GO nor GDP were affected by the change in distribution activity.
B. GO fell by $10 billion, while GDP was unchanged.
C. GDP fell by $10 billion, while GO was unchanged.
D. GO and GDP both fell by $10 billion.
Answer: B. GO fell by $10 billion, while GDP was unchanged.
Explanation;
Gross Output is different from GDP in that where GDP only takes into account the dollar value of the final output so as to avoid double counting, the Gross Output takes into account those intermediate expenses and consumption that were used to create the final goods and services.
As such, if the dollar value of distribution activity fell to $70 billion then the Gross Ouput would also have to fall by the equivalent amount which in this case would be $10 million.
As all other values did not change, then neither did the dollar value of final output meaning that GDP did not change.
On October 10, the stockholders' equity of Sherman Systems appears as follow:
Common stock—$10 par value, 85, 000 shares authorized, issued, and outstanding $720,000
Paid—in capital in excess of par value, common stock 216,000
Retained earnings 864,000
Total stockholders' equity $1,800,000
1. Prepare journal entries to record the following transactions for Sherman Systems.
a. Purchased 6,300 shares of its own common stock at $38 per share on October 11.
b. Sold 1,325 treasury shares on November 1 for $44 cash per share.
c. Sold all remaining treasury shares on November 25 for $33 cash per share.
2. Explain how Sherman's equity section changes after the October 11 treasury stock purchase, and prepare the revised equity section of its balance sheet at that date.
Answer:
Sherman Systems
1. Journal Entries:
a. October 11:
Debit Treasury Stock $63,000
Debit Paid-in In Excess of Par $176,400
Credit Cash Account $239,400
To record the purchase of 6,300 shares at $38 per share.
b. November 1:
Debit Cash Account $58,300
Credit Treasury Stock $13,250
Credit Paid-in In Excess of Par $45,050
To record the resale of 1,325 treasury shares for $44
2. Sherman's equity section will reduce by $239,400 after the October 11 purchase of treasury stock with a direct reduction of $63,000 in the outstanding shares value and the balance in the Paid-in In Excess of Par account:
Revised Equity section as at October 11:
Stockholders' Equity
Common stock—$10 par value,
85, 000 shares authorized
Issued $720,000
less Treasury Stock -$63,000
Outstanding $657,000
Paid—in capital in excess of par
value, common stock 216,000
less Treasury Stock 176,400 39,600
Retained earnings 864,000
Total stockholders' equity $1,560,600
Explanation:
a) Data and Calculations:
Stockholders' Equity
Common stock—$10 par value,
85, 000 shares authorized
Issued and outstanding $720,000
Paid—in capital in excess of par
value, common stock 216,000
Retained earnings 864,000
Total stockholders' equity $1,800,000
b) Sherman Systems can choose from two methods on how to record its Treasury Stock transactions. One method is the costing method that records every transaction in the Treasury Stock and the par value method which records the differences in the par value for Treasury Stock in the Paid-in In Excess of Par account.
Pizza sells an average of pizzas per week, of which % are single-topping pizzas and % are supreme pizzas with multiple toppings. Singles sell for each and incur variable costs of . Supremes sell for each and incur variable costs of . The contribution margin per unit and total contribution margin for Singles and Supremes are
Answer:
the question is incomplete, so I looked for a similar question:
"Pizza sells an average of 150 pizzas per week, of which 20% are single-topping pizzas and 80% are supreme pizzas with multiple toppings. Singles sell for $8 each and incur variable costs of $2. Supremes sell for $12 each and incur variable costs of $6."
contribution margin for Singles = $8 - $2 = $6
contribution margin ratio for Singles = $6 / $8 = 75%
total contribution margin for Singles = $6 x 150 x 20% = $180
contribution margin for Supremes = $12 - $6 = $6
contribution margin ratio for Supremes = $6 / $12 = 50%
total contribution margin for Supremes = $6 x 150 x 80% = $720
1. Determine the total incremental cost of making 51,000 units of RX5. 2. Determine the total incremental cost of buying 51,000 units of RX5. 3. Should the company make or buy RX5
Answer with Explanation:
Requirement 1:
Incremental cost of making RX5:
Always remember that the direct costs are always incremental cost because these are the variable cost and will not be incurred if the decision is not taken related to making of the product RX5.
Incremental Cost of Making RX5:
Direct Material ($4 * 51,000 Units) $204,000
Direct Labor ($8 * 51,000 Units) $408,000
Variable Overheads ($9* 20% * 51,000 Units) $91,800
Total incremental cost of making 51000 units $703,800
Requirement 2:
Incremental Cost of Buying RX5:
Purchase Cost ($19 per Unit * 51,000 Units) $969,000
The total incremental cost of making 51000 units is $969,000
Requirement 3:
The Cost of buying is higher than making RX5, hence the company should Make RX5.
The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year Previous Year Current assets: Cash $655,500 $546,000 Marketable securities 759,000 614,300 Accounts and notes receivable (net) 310,500 204,700 Inventories 1,039,500 674,100 Prepaid expenses 535,500 430,900 Total current assets $3,300,000 $2,470,000 Current liabilities: Accounts and notes payable (short-term) $435,000 $455,000 Accrued liabilities 315,000 195,000 Total current liabilities $750,000 $650,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.
Answer:
1. Previous Year = $1,820,000, Current Year = $2,550,000
2. Previous Year = 3.80 times , Current Year = 4.40 times
3. Previous Year = 2.70 times, Current Year = 3.00 times
Explanation:
working capital = current assets - current liabilities
working capital (Previous Year) = $2,470,000 - $650,000
= $1,820,000
working capital (Previous Year) = $3,300,000 - $750,000
= $2,550,000
Current ratio = current assets ÷ current liabilities
working capital (Previous Year) = $2,470,000 ÷ $650,000
= 3.80 times
working capital (Previous Year) = $3,300,000 ÷ $750,000
= 4.40 times
Quick ratio = (current assets - inventory) ÷ current liabilities
working capital (Previous Year) = ($2,470,000 - 674,100) ÷ $650,000
= 2.70 times
working capital (Previous Year) = ($3,300,000 - 1,039,500) ÷ $750,000
= 3.00 times
Facial Cosmetics provides plastic surgery primarily to hide the appearance of unwanted scars and other blemishes. During 2021, the company provides services of $402,000 on account. Of this amount, $52,000 remains uncollected at the end of the year. An aging schedule as of December 31, 2021, is provided below.
Age Group Amount Estimated Percent
Receivable Uncollectible
Not yet due $ 32,000 4 %
0-30 days past due 10,200 6 %
31–60 days past due 7,200 12 %
More than 60 days past due 2,600 30 %
Total $ 52,000
Required:
1. Calculate the allowance for uncollectible accounts.
2. Record the December 31, 2021, adjustment, assuming the balance of Allowance for Uncollectible Accounts before adjustment is $400 (debit).
3. On April 3, 2022, a customer’s account balance of $500 is written off as uncollectible. Record the write-off.
4. On July 17, 2022, the customer whose account was written off in requirement 3 unexpectedly pays $100 of the amount but does not expect to pay any additional amounts. Record the cash collection.
Answer: Please see explanation for answers
Explanation:
Age Group Amount Estimated Percent Estimated Amount
Receivable Uncollectible Uncollectible
Not yet due $ 32,000 4 % $1,280
0-30 days past due 10,200 6 % $612
31–60 days past due 7,200 12 % $864
More than 60 days past due 2,600 30 % $780
Total $ 52,000 $3536
Calculation
1) Estimated Amount Uncollectible = Amount Receivable x Estimated Percent Uncollectible =
4% x 32,000= $1,280
6% x 10,200=$612
12% x 7,200=$864
30% x2600=$780
Total = $3,536
The allowance for uncollectible accounts = $3,536
2) Journal to Record the December 31, 2021, adjustment for a debit of $400
Estimated Amount Uncollectible =$3,536
Adjusted = $3536 + debit $400=$3,936
Date Account Debit Credit
Dec 31, 2021, Bad debts Expense $3,936
Allowance for uncollectible accounts $3,936
3) Journal to Record the write-off of $500
Date Account Debit Credit
April 3, 2022, Allowance for uncollectible
accounts $500
Accounts receivable $500
4a)Journal to reinstate the account previously wrtten off On July 17, 2022
Date Account Debit Credit
July 17, 2022, Accounts receivable $100
Allowance for uncollectible accounts $100
4b)Journal to record collection of cash
Date Account Debit Credit
July 17, 2022, Cash $100
Accounts receivable $100
A Journal Entry refers to simply a summary of the debits and also credits of the transaction entry to the Journal. When A Journal entries are important to the transaction because they allow us to sort our transactions into manageable data.
Age Group Amount Estimated Percent Estimated Amount
Receivable Uncollectible Uncollectible
Not yet due $ 32,000 4 % $1,280
0-30 days past due 10,200 6 % $612
31–60 days past due 7,200 12 % $864
More than 60 days past due 2,600 30 % $780
Total $ 52,000 $3536
The formula apply Then we Estimated the Amount Uncollectible is =
Amount Receivable x Estimated Percent *Uncollectible =
4% x 32,000= $1,280
6% x 10,200= $612
12% x 7,200= $864
30% x2600= $780
Then the Total is = $3,536
The allowance for uncollectible accounts = $3,536
Journal Entry
2) Journal to Record the December 31, 2021, adjustment for a debit of $400
Estimated Amount Uncollectible =$3,536
Adjusted = $3536 + debit $400=$3,936
Date Account Debit Credit
Dec 31, 2021, Bad debts Expense $3,936
Allowance for uncollectible accounts $3,936
3) Journal to Record the write-off of $500
Date Account Debit Credit
April 3, 2022, Allowance for uncollectible
accounts $500
Accounts receivable $500
4a)Journal to reinstate the account previously written off On July 17, 2022
Date Account Debit Credit
July 17, 2022, Accounts receivable $100
Allowance for uncollectible accounts $100
4b)Journal entry to the record collection of cash
Date Account Debit Credit
July 17, 2022, Cash $100
Accounts receivable $100
Find out more information about Journal entry here:
https://brainly.com/question/8913038
Kim's Bridal Shoppe has 12,400 shares of common stock outstanding at a price of $58 per share. It also has 325 shares of preferred stock outstanding at a price of $88 per share. There are 400 bonds outstanding that have a coupon rate of 7.7 percent paid semiannually. The bonds mature in 39 years, have a face value of $2,000, and sell at 113 percent of par. What is the capital structure weight of the common stock
Answer:
43.54%
Explanation:
the firm's total market value:
12,400 common stocks x $58 = $719,200325 preferred stocks x $88 = $28,600400 bonds x $2,260 = $904,000total $1,651,800total capital structure weight of common stocks = $719,200 / $1,651,800 = 43.54%
If it is determined that your procurement scenario will not be conducted using full and open competition you are prohibited from purchasing a non-domestic product.
A. True
B. False
Answer:
Correct answer:
A. True
Explanation:
When procurement of goods and services is to be made from another country, it is expected that, it should be open and done in full view showing other competitors. This is to prevent fraud, such as the marking up of the price of goods or outright false declaration of the procurement prices.
Microsoft online. Which of the following price customization tool is Microson using?
a. Controlling availability
b. Setting prices based upon transaction characteristics
c. Managing product-line offerings
d. Setting prices based upon buyer characteristic
Answer:
Setting prices based upon buyer characteristic
Explanation:
Microson is setting prices based on buyer characteristics. The question says it is giving educational discounts of 10 percent to parents and students. This is value pricing and it mainly involves setting prices with your customers or consumers in focus. Microson based their prices on the worth as perceived by the parents and students. It's discount is characteristic of the people buying it.
Starset, Inc., has a target debt-equity ratio of 1.15. Its WACC is 8.6 percent, and the tax rate is 21 percent.
Required:
a. If the company's cost of equity is 14 percent, what is its pretax cost of debt?
b. If instead you know that the aftertax cost of debt is 6.1 percent, what is the cost of equity?
Answer:
a. 4.94%
b. 11.48%
Explanation:
Here in this question, we are interested in calculating the pretax cost of debt and cost of equity.
We proceed as follows;
a. From the question;
The debt equity ratio = 1.15
since Equity = 1 ; Then
Total debt + Total equity = 1 + 1.15 = 2.15
Mathematically ;
WACC = Cost of equity x Weight of equity + Pretax Cost of debt x Weight of debt x (1-Tax rate)
Where WACC = 8.6%
Cost of equity = 14%
Weight of equity = 1/(total debt + total equity) = 1/(1+1.15) = 1/2.15
Pretax cost of debt = ?
Weight of debt = debt equity ratio/total cost of debt = 1.15/2.15
Tax rate = 21% = 0.21
Substituting these values, we have;
8.6% = 14% x 1/2.15 + Pretax cost of debt x 1.15/2.15 x (1-21%)
8.6% = 14% x 1/2.15 + Pretax cost of debt x 1.15/2.15 x (1-21%)
Pretax cost debt = (8.6%-6.511628%)/(1.15/2.15 x (1-21%))
Pretax cost of debt = 4.94%
b. WACC = Cost of equity x Weight of equity + After tax Cost of debt x Weight of debt
8.6% = Cost of equity x 1/2.15 + 6.1% x 1.15/2.15
Cost of equity = (8.6%-3.26279%)/(1/2.15)
Cost of equity = 11.48%
Which of the following are recommended ways to learn more about IT careers? Check all of the boxes
that apply.
scheduling an appointment with a career counselor at a school
attending an informational session
applying for an internship
renting a science fiction movie about computer viruses
contacting a professional organization, such as CompTIA
Answer:
scheduling an appointment with a career counselor at a schoolattending an informational sessionapplying for an internshipcontacting a professional organization, such as CompTIAExplanation:
To learn more about IT careers or just carriers in general, one can contact the Career counselor at school. Their job is to help students find out more abut careers so that they know which path they would like to follow.
One can also attend information sessions where they can listen to people speak on IT careers and ask questions they would like answers to as well.
A practical way to find out about IT careers is to intern at an IT firm. This way you get to see first hand what the job entails and if it is the kind of thing you would like to do.
There are also professional organizations that offer certifications in IT such as CompTIA. As they are well versed in the area, they can provide more information on IT careers including the educational background required.
Answer:
1. Scheduling an appointment with a career counselor at school.
2. Attending an informational session.
3. Applying for an internship
5. Contacting a professional organization, such as CompTIA.
Explanation: This is the correct answer on Edge 2021, just did the assignment. Hope this helps ^-^.
Net present value method The following data are accumulated by Geddes Company in evaluating the purchase of $160,000 of equipment, having a four-year useful life: Net Income Net Cash Flow Year 1 $43,500 $83,500 Year 2 23,000 63,000 Year 3 13,500 53,500 Year 4 6,500 46,500 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Assuming that the desired rate of return is 12%, determine the net present value for the proposal. If required, round to the nearest dollar. Net present value $ 86,500 Would management be likely to look with favor on the proposal
Answer:
A.$32,396
B. Yes
Explanation
A. Calculation to determine the net present value for the proposal
Year Net Cash Flow Present value Discounting factor at 12% Discounted Cash Flow
1 $ 83,500.00 0.893 $ 74,565.50
2 $63,000.00 0.797 $ 50,211.00
3 $ 53,500.00 0.713 $ 38,145.50
4 $ 46,500.00 0.636 $ 29,574.00
Present value of net cash flows $ 192,496.00
Amount to be invested $ 160,000.00
Net Present Value $ 32,496
Net Present Value $ 32,496/Amount to be invested $160,000.00 =0.2031*100
=20.31%
B.Yes the management would likely to look with favor on the proposal because the net present value of 20.31% is higher than the expected rate of return of 12%.
The accountant for Mandarin Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:
Retained earnings balance at the beginning of the year $949,000
Net income for the year 295,000
Cash dividends declared for the year 55,000
Retained earnings balance at the end of the year 1,397,000
Cash dividends payable at the beginning of the year 12,600
Cash dividends payable at the end of the year 14,900
What is the amount of cash dividends paid that should be reported in the financing section of the statement of cash flows?
a. $55,000.
b. $57,300.
c. $82,500.
d. $2,300.
e. $52,700.
Answer: e. $52,700
Explanation:
Cash Dividend to be paid = Cash dividends payable at the beginning of the year + Cash dividends declared for the year - Cash dividends payable at the end of the year
= 12,600 + 55,000 - 14,900
= $52,700
Builder and Owner agree that Builder will erect a fence for Owner for $1,500. Builder claims that the fence is taking longer than Builder expected, so Owner must pay Builder $500 more or Builder will not complete the fence. Owner, needing the fence completed, agrees to the additional $500. Builder completes the fence. Owner owes Builder: ________.
A. $1,500.
B. $2,000.
C. $1,000.
D. $1,750.
Answer:
Owner owes Builder : B. $2,000.
Explanation:
A Liability is the present obligation of the entity, that arises as a result of past events, the settlement of which is expected to result in a cash outflow from the entity.
Initially, the Owners owes the Builder $,1500
For the fence to be completed on time, an addition of $500 was owed, upon the owner accepting this arrangement.
Thus, the total obligation owing to the Builder is $2,000.
Answer:
2000
Explanation:
Because 1500+500=2000
Donna, age 42 and a single taxpayer, has a salary of $104,500 and interest income of $20,000. What is the maximum amount Donna can contribute to a Roth IRA
Answer:
$5,800
Explanation:
Using 2020 limits:
Donna's AGI = $124,500 (interest income is taxed as ordinary income)
since Donna's is $500 higher than the income threshold for single taxpayers ($124,000), then her contribution to a Roth IRA is reduced by $200.
If Donna's AGI was less than $124,000, she could have contributed up to $6,000 (which is the maximum contribution allowed). Her contribution limit starts to reduce by $200 for every $500 or fraction in excess of the income threshold limit. The contribution limit phases out completely when the AGI is $139,000.
E.g. If Donna's AGI was $125,000, her contribution limit = $5,600
You are considering two mutually exclusive projects with the following cash flows. Which project(s) should you accept if the discount rate is 8.5 percent? What if the discount rate is 13 percent?Year 0 1 2 3Project A -80,000 31,000 31,000 31,000Project B -80,000 0 0 110,000
Answer:
NPV Project A = - $825.31
NPV Project B = $6119.89
So, at a discount rate of 8.5%, Project B should be accepted.
NPV Project A = - $6804
Npv Project B = - $3764.48
So, at a discount rate of 13%, neither of the projects should be accepted.
Explanation:
One of the methods to evaluate a project is to determine the NPV or Net Present Value from the project. If a project provides a positive NPV after discounting the cash flows from the project at a set discount rate, the project should be accepted. If the project gives a negative NPV, the project should be discarded.
The NPV is calculated as follows,
NPV = CF1 / (1+r) + CF2 / (1+r)^2 + ... + CFn / (1+r)^n - Initial cost
Where,
CF1, CF2, ... represents the cash flows in year 1 and year 2 and so onr is the discount rateAt 8.5% discount rate
NPV Project A = 31000/(1+0.085) + 31000/(1+0.085)^2 + 31000/(1+0.085)^3 - 80000
NPV Project A = - $825.31
NPV Project B = 110000 / (1+0.085)^3 - 80000
NPV Project B = $6119.89
So, at a discount rate of 8.5%, Project B should be accepted.
At 13% discount rate
NPV Project A = 31000/(1+0.13) + 31000/(1+0.13)^2 + 31000/(1+0.13)^3 - 80000
NPV Project A = - $6804
NPV Project B = 110000 / (1+0.13)^3 - 80000
Npv Project B = - $3764.48
So, at a discount rate of 13%, neither of the projects should be accepted.
Merry Maidens Cleaning generally charges $280 for a detailed cleaning of a normal-size home. However, to generate additional business, Merry Maidens is offering a new-customer discount of 10%. On May 1, Ms. E. Pearson has Merry Maidens clean her house and pays cash equal to the discounted price. Required: Record the revenue earned by Merry Maidens Cleaning on May 1.
Answer:
May 1
DR Cash $252
CR Service Revenue $252
(To record payment for services rendered)
Working
Cash = Net Service revenue
Net Service revenue = $280 * ( 1 - 10%)
= 280 * 90%
= $252
Miller Fruit wants to expand and needs $1.6 million to do so. Currently, the firm has 465,000 shares of stock outstanding at a market price per share of $32.50. The firm decided on a rights offering with one right granted for each share of outstanding stock. The subscription price is $28 a share. How many rights are needed to purchase one new share of stock in this offering?Miller Fruit wants to expand and needs $1.6 million to do so. Currently, the firm has 465,000 shares of stock outstanding at a market price per share of $32.50. The firm decided on a rights offering with one right granted for each share of outstanding stock. The subscription price is $28 a share. How many rights are needed to purchase one new share of stock in this offering?
Answer:
Rights needed for each new share = 8.14 rights
Explanation:
Amount needed to expand = $1.6 million
465,000 shares of stock outstanding at a market price per share of $32.50
The subscription price = $28
Number of rights issued = 1 right per share × 465,000 shares
Number of rights issued = 465,000 rights
Number of shares needed = $1,600,000 / $28
Number of shares needed = 57,142.857
Rights needed for each new share = Number of rights issued / Number of shares needed
Rights needed for each new share = 465,000 / 57,142.857
Rights needed for each new share = 8.14 rights
"13. In Laura’s new role at Walden-Martin Family Medical Clinic, she will be writing checks to take care of the accounts payable for the clinic. A practicum student has just started at the clinic and will be working with Laura for the next several days. How should Laura describe this aspect of her job? "
Laura characterizes her employment as "trusting" because she will be working with Laura in the accounting office for the next few days.
When rumors of future layoffs or closures circulate, transparency keeps employees from leaving.
There are five components to performing a work, according to the explanation:
1. Be respectful.The first of the five characteristics is respect, which has the most weight with your staff.
2. Salary and BenefitsThis employment feature has risen in importance since 2012, when it was ranked third. It is the only significant aspect of the job having a monetary value.
3. Have faith in yourself.When rumors of future layoffs or closures circulate, transparency keeps employees from leaving.
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You find a zero coupon bond with a par value of $10,000 and 14 years to maturity. The yield to maturity on this bond is 5.1 percent. Assume semiannual compounding periods. What is the price of the bond
Answer:
Bond Price = $4940.8468 rounded off to $4940.85
Explanation:
The price of a zero coupon bond is simply calculated by calculating the present value of the face value of the bond that the bond pays at maturity. The formula for the price of a zero coupon bond is,
Bond Price = Face Value / ( 1 + r )^n
Where,
r is the rate or YTM n is the number of periods left to maturityAssuming that the r or YTM is always stated in annual terms, the semi annual YTM will be 5.1% / 2 = 2.55%
Assuming semi annual compounding periods, the total number of periods or n will be,
n = 14 * 2 = 28
Bond Price = 10000 / (1 + 0.0255)^28
Bond Price = $4940.8468 rounded off to $4940.85
a firm learn that the own price of elasticity of a product it manufactures a 3.5 what would be the correct
Answer: Lower the price because demand for the good is elastic.
Explanation:
The good is elastic because the elasticity is more than 1. What this means is that when the price of the good is reduced by 1%, the demand of the good will increase by 3.5%.
If the company wishes to raise revenue therefore they should reduce their prices because more people would then buy the goods and the number of more sales would lead to higher revenue.
The technique used to help strategic managers choose among alternative choices by defining the task environment, developing a set of various forecasts, and using pro forma financial statements is called________.
1. Decision trees.
2. SWOT analysis.
3. Industry scenarios.
4. CAPM [Capital Asset Pricing Model].
Answer:
Corporate scenarios is the right answer
Explanation:
The correct answer is not listed in the options. Corporate scenarios is the answer to the question.
Corporate scenarios can be said to be pro forma balance sheets and income statements which do the job of forecasing what the effect of individual alternative strategy and their different programs may likely have on the division and return on investment.
Therefore none is the answer
A monopolistically competitive firmA. faces a downward-sloping demand curve and a steeper downward -sloping marginal revenue curve.B. faces a vertical demand curve and identical marginal revenue curveC. Produces a product that is undifferentiated by style, location, or qualityD. faces an upward-sloping demand curveE. faces a downward-sloping demand and a horizontal marginal revenue curve.
Answer:
Option A is correct.
Explanation:
Option A is correct because a monopolistically competitive firm has a downward-sloping demand curve and the marginal revenue curve is steeper than the demand curve that lies below the demand curve. Moreover, in this market, the product sold can be differentiated on the basis of quality. Further, in this market, the marginal cost curve first decreases then start increasing and cuts the marginal revenue curve.
A mortgage is paid off in 30 years with a total of $124,000. It had a 2% interest rate that compounded monthly. What was the principal
Answer:
the Principle, PV on the mortgage was $68,086.64.
Explanation:
The Principle on the mortgage, PV is determined as follows :
FV = $124,000
N = 30 × 12 = 360
P/ yr = 12
PMT = $0
R = 2%
PV = ?
Using a Financial Calculator, the Principle, PV on the mortgage was $68,086.6399 or $68,086.64.
You're evaluating the performance of your pension fund. You invested $100 initially, which grew to $106 after 4 months, and then to $107 after another 6 months.
a. What was your HPR during the first 4 months?b. What was your HPR during the next 5 months?c. What was your total HPR over the 9 months?
Answer:
a) the holding period return (HPR) for the first 4 months = ($106 - $100) / $100 = 6%
b) the holding period return (HPR) for the next 5 months = ($107 - $106) / $106 = 0.94%
c) the holding period return (HPR) for the 9 months period = ($107 - $100) / $100 = 7%
The holding period return measures the total return on an investment over a certain period of time. It does not necessarily calculate annual returns, since the holding period can be more or less than 1 year.
Which one of the following statements is correct concerning the concept of materiality?
a. Materiality is determined by reference to guidelines established by the AICPA.
b. Materiality depends only on the dollar amount of an item relative to other items in the financial statements.
c. Materiality depends on the nature of an item rather than the dollar amount.
d. Materiality is a matter of professional judgement.
Answer:
D) Materiality is a matter of professional judgement
Explanation:
