Which of these investments may be long term? Choose four answers.
savings accounts
mutual funds
bonds
retirement funds
commodities

Answers

Answer 1

These long-term investments are the asset size of company balance sheets i.e shown by a company's investments it including stocks, bonds, and real estate these are long-term as they are kept for one than one year.

The long-term investment includes mutual funds, bonds, retirement funds, commodities. These are investments that are made for the long term periods and may be for long-term goals of the individual or the organization.

Thus the options B, C, D, and E are correct.

Learn more about the investments may be of long-term.

brainly.com/question/18641093.

Answer 2

The investments may be long term is bonds and retirement funds.

What is long term investment?

A long-term investment is an investment owned by an individual or company for more than three year.

This could be a company or an individual asset such as real estate and bonds that takes a long time to mature because they do not generate income immediately.

Therefore, The investments may be long term is bonds and retirement funds

Learn more on investment here,

https://brainly.com/question/417234


Related Questions

The following selected transactions relate to liabilities of Rocky Mountain Adventures. Rocky Mountain's fiscal year ends on December 31.
January 13: Negotiate a revolving credit agreement with First Bank that can be renewed annually upon bank approval. The amount available under the line of credit is $10 million at the bank's prime rate.
February 1: Arrange a three-month bank loan of $4.3 million with First Bank under the line of credit agreement. Interest at the prime rate of
7% is payable at maturity.
May 1: Pay the 7% note at maturity.
Record the appropriate entries, if any, on January 13, February 1, and May 1.

Answers

Answer: See explanation

Explanation:

The appropriate entries will be recorded thus:

13 Jan No entry

1 Feb Debit Cash account $4,300,000

Credit Note payable $4,300,000

(For note issued on borrowing)

1 May Debit Interest Expense $4,300,000 × 7% × 3/12 = $75250

Debit Notes payable $4,300,000

Credit Cash account $4,375,250

(For amount paid on maturity)

Hoda is creating a report in Access using the Report Wizard. Which option is not available for adding fields using the wizard?

Tables
Queries
Reports
All are available options.

Answers

Answer:

Report is not available

Explanation:

From the given options, only the Reports is not an available option for adding fields using the wizard.

To create a report using the wizard, you have to navigate through

Create -> Reports Group -> Report Wizard

The attached image will be displayed after clicking the report wizard.

See that the available options to select are (Tables/Queries).

Hence, (c) is true

Adamson Corporation is considering four average-risk projects with the following costs and rates of return:

Project Cost Expected Rate of Return
1 $2,000 16.00%
2 3,000 15.00
3 5,000 13.75
4 2,000 12.50

The company estimates that it can issue debt at a rate of rd = 10%, and its tax rate is 30%. It can issue preferred stock that pays a constant dividend of $5 per year at $48 per share. Also, its common stock currently sells for $33 per share; the next expected dividend, D1, is $4.00; and the dividend is expected to grow at a constant rate of 5% per year. The target capital structure consists of 75% common stock, 15% debt, and 10% preferred stock.

Required:
a. What is the cost of each of the capital components?
b. What is Adamson's WACC?

Answers

Answer:

a. Cost of debt = Interest * (1 - Tax rate)

= 10%*(1 - 0.30)

= 7%

Cost of preferred stock = Dividend/ Issue price

= 5/48

= 10.42%

Cost of common stock (Cost of retained earnings) = (D1/P0) + g

= (4/33) + 0.07

= 0.12 + 0.07

= 0.19

= 19%

b. Fund                         Cost        Weight       Cost * Weight

Debt                           7%          0.15                 1.05%

Preferred stock        10.42%     0.10                1.042%

Retained earnings     19%         0.75               14.25%

WACC                                                               16.342%

Review each of the following independent sets of conditions. For each condition, calculate the (1) sample rate of deviation, and use the AICPA sample evaluation tables to identify the (2) upper limit rate of deviation, and (3) allowance for sampling risk (n = sample size, d = deviations. ROO = risk of overreliance). (Round your answers to 1 decimal place.)

a. n = 100. d = 8. ROO = 5%.
b. n = 100. d = 4. ROO = 5%.
c. n = 100. d = 8. ROO = 10%.

Answers

Answer: See explanation

Explanation:

a. n = 100. d = 8. ROO = 5%.

i. Sample rate of deviation will be:

= Number of Deviations / Sample size

= 8/100

= 8%

ii. Upper limit rate of deviation = 14%

iii. Allowance for sampling risk will be:

= Upper Limit Rate of Deviation - Sample rate of devaition

= 14% - 8%

= 6%

b. n = 100. d = 4. ROO = 5%.

i. Sample rate of deviation will be:

= Number of Deviations / Sample size

= 4/100

= 4%

ii. Upper limit rate of deviation = 9%

iii. Allowance for sampling risk will be:

= Upper Limit Rate of Deviation - Sample rate of devaition

= 9% - 4%

= 5%

c. n = 100. d = 8. ROO = 10%.

i. Sample rate of deviation will be:

= Number of Deviations / Sample size

= 8/100

= 8%

ii. Upper limit rate of deviation = 12.7%

iii. Allowance for sampling risk will be:

= Upper Limit Rate of Deviation - Sample rate of devaition

= 12.7% - 8%

= 4.7%

The Wiz Co. owes $60 to its bondholders for the payment of principal and interest. The company expects to have a cash flow of $136 if the economy continues as it is but that cash flow will decrease to $54 if the economy enters a recession. Should the company ever face the real possibility of bankruptcy, it will incur legal and other fees of $30. What amount will the bondholders be paid in the case of a recession

Answers

Answer:

$24

Explanation:

Cashflow If economy as it is = $136

Cashflow if economy in recession = $54

In the event that the company goes bankrupt due to the recession, it will have to pay $30 in legal and other costs, so the company will set aside $30.

So, Bondholders payment = Cashflow in recession - legal & other cost

= $54 - $30

= $24

Hence, the bondholders will be paid $24 in the case of a recession.

Before negotiating a long-term construction contract, build- ing contractors must carefully estimate the total cost of completing the project. Benzion Barlev of New York University proposed a model for total cost of a long-term contract based on the normal distribution(Journal of Business Finance and Accounting, July 1995). For one particular construction contract, Barlev assumed total cost, x, to be normally distributed with mean $850,000 and standard deviation $170,000. The revenue, R, promised to the contractor is $1,00,000.

Required:
a. The contract will be profitable if revenue exceeds total cost. What is the probability that the co ntract will be profitable for the contractor?
b. What is the probability that the project will result in a loss for the contractor?
c. Suppose the contractor has the opportunity to renegotiate the contract. What value of R should the contractor strive for in order to have a .99 probability of making a profit?

Answers

Answer:

Benzion Barlev of New York University

NEGOTIATION OF A LONG-TERM CONSTRUCTION CONTRACT

a. The probability that the contract will be profitable for the contractor is:

= 81%

b. The probability that the project will result in a loss for the contractor is:

= 19%

c. The value of R that the contractor should strive for in order to have a .99 probability of making a profit is:

= $1,246,100.

Explanation:

a) Data and Calculations:

Mean total cost (x) = $850,000

Standard deviation = $170,000

Revenue = $1,000,000

Probability of being profitable = (R - x)/std deviation

= ($1,000,000 - $850,000)/$170,000

= $150,000/$170,000

= 0.882

From Z table, 0.882 = 0.81057 = 81%

Probability of loss = 19% (100 - 81%)

To have a 99% (0.99) probability of making a profit, Z value = 2.33 from the Z table:

(R - x)/std deviation = 2.33

(R - x) = 2.33 * $170,000

= $396,100

(R - $850,000) = $396,100

R = $396,100 + $850,000

R = $1,246,100

Santa Corporation issued a bond on January 1 of this year with a face value of $1,000. The bond's coupon rate is 6 percent and interest is paid once a year on December 31. The bond matures in three years. The annual market rate of interest was 8 percent at the time the bond was sold. The following amortization schedule pertains to the bond issued: Cash Paid Interest Expense Amortization Balance January 1, Year 1 $948 December 31, Year 1 $60 $76 $16 964 December 31, Year 2 60 77 17 981 December 31, Year 3 60 79 19 1,000 Required: 1. What was the bond's issue price

Answers

Answer:

Total of amortisation for 3 years = 16+17+19 = 52

Bonds issue price = 1000 - 52 = $948

I hope this helps a little bit.

You do not start saving money until age 46. On your 46th birthday you dutifully invest​ $10,000 each year until you finish your deposits when you reach the age of 65​ (you make the last deposit on your 65th​ birthday). The annual interest rate is 8​% that you earn on your deposits. Your brother starts saving​ $10,000 a year on his 36th birthday but stops making deposits after 10 years. He then withdraws the compounded sum when he reaches age 65. How much more money will your brother have than you at age​ 65?

Answers

Answer:

$217,600

Explanation:

The computation of the more money is shown below:

As we know that

The Future value of the annuity is

= P × { (1+r)^n - 1} ÷ r

= $10,000 × (1+.08)^20 - 1) ÷ 0.08

= $457,619.64

For 36 years to 46 years,

FV = $10,000 × (1+.08)^10 - 1) ÷ 0.08

= $144,865.62

Now

FV = PV(1+r)^n

 = $144,865.62×  (1+.08)^20

= $675,212.47

Now the more amount would be

= $675,212.47 - $457,619.64

= $217592.83

= $217,600

You are the manager for a Pizza restaurant. Currently, your restaurant pre-makes pizzas that are ordered the most to increase the number of pizzas being made on time for your customers. Over time, many customers have complained that their pizzas were cold upon delivery and not fresh, requesting refunds or remakes of their pizza. Your location is losing money from these wasteful practices, therefore, you want to create a Kanban based on the following basic principles:

1. A later process tells an earlier process when new items are required. This means that unless a customer orders a pizza, no pizzas will be made. Pull!
2. The earlier process produces what the later process needs.
3. No Items can be made without a Kanban card (order request). This allows the process to be transparent so everyone knows what is going on.
4. Defects are not passed on to the next stage.Create a Kanban board for your pizza company that delivers. You must have 4-6 columns with headings for each.

Required:
Decide what your Kanban cards will represent. Set Rules for your Kanban.

Answers

Answer:

RULES OF KANBAN BOARD

Yellow – A Slice of Pizza

• Blue – Full Pizza

• Green – Soda

• Green jumps from Queue to Pack only

• No pizza will be delivered without quality check

• Pizza will return to the backlog, if it is found with inferior quality during quality check

• A unique token number will be given for each order

• Orders with multiple pizza or a combo order will be given same unique token number

• Pizza will be prepared in the order of token number

• Token number will include initials “C” for carry out, “D” for dine in

THE ATTACHED IMAGE HAS THE REPRESENTATIONS OF KANBAN CARDS.

Saul is a manager at Holden Apparels Inc. and is friends with the company's CEO. This privilege gives Saul the information that Holden Apparels is in the midst of talks to take over a leading rival. Saul buys stocks of Holden with the expectation that its stocks will appreciate. But the deal falls through and the stocks of Holden depreciate in the following months. Are Saul's actions unethical

Answers

Answer:

D) Yes, because it is unethical to trade stocks based on insider information

irrespective of the final outcome.

Explanation:

THIS ARE THE OPTIONS FOR THE QUESTION;

A) Yes, because it is illegal and unethical for Saul to possess any kind of insider

information.

B) No, because Saul did not make any profits from trading stocks using this

information.

C) No, because Saul did not ask the CEO to disclose such information to him.

D) Yes, because it is unethical to trade stocks based on insider information

irrespective of the final outcome.

From the question,we are told about Saul who is a manager at Holden Apparels Inc. and is friends with the company's CEO. This privilege gives Saul the information that Holden Apparels is in the midst of talks to take over a leading rival. Saul buys stocks of Holden with the expectation that its stocks will appreciate. But the deal falls through and the stocks of Holden depreciate in the following months. In this case, Saul's actions are unethical

because it is unethical to trade stocks based on insider information irrespective of the final outcome. Stock trading can be regarded as buying as well as selling of shares in a specific company. Unethical behavior in stock market are actions that falls outside morally right practice/trading in stock market. Unethical trading of stock could be a process of purchasing shares in particular firm that engages herself in some questionable operational as well as recruitment activities. In some cases it should be noted that stocks trading could be unethical as a result of trader engaging in trading because they are getting information from insider in order to influence their trading.

Fultz Company has accumulated the following budget data for the year 2017. 1 Sales: 31,450 units, unit selling price $85. Cost of one unit of finished goods: direct materials 1 pound at $5 per J pound, direct labor 3 hours at $13 per hour, and manufacturing overhead $6 per direct labor hour, j Inventories (raw materials only): beginning, 10,290 pounds; ending, 15,250 pounds. Selling and administrative expenses: $170,000; interest expense: $30,000. Income taxes: 30% of income before income taxes.
Prepare a schedule showing the computation of cost of goods sold for 2017.

Answers

Answer:

See below

Explanation:

Computation of Cost of goods sold

Direct materials

Direct labor

Manufacturing overheads

Total cost

Chesapeake Inc. acquired a registered trademark for $600,000. The trademark has a remaining legal life of 5 years but can be renewed every 10 years for a nominal fee. Chesapeake does not expect to renew the acquired trademark when the legal life is over. What amount of amortization expense should Chesapeake record for the trademark in the current year?
a. $0
b. $15,000
c. $40,000
d. $120,000

Answers

Answer:

d. $120,000

Explanation:

Amortization expense = Cost ÷ Estimated useful life

therefore

Amortization expense = $600,000 ÷ 5 = $120,000

Note ; In this case the legal life is the same as the useful life.

Which of the following is the second step in the hiring process?

Select the best answer choice.
A.
the submission of the application or resume

B.
the interview

C.
sending a thank-you note

D.
getting hired for the position

Answers

Answer:

B) The interview

Explanation:

The second step in the hiring process is to plan your employee recruitment. Recruitment planning meetings or emails identify the job description or specification for the position so you know the skills and experience you seek.

Hope I helped! Brainiest plz!♥

Have a nice morning!

-Abby

The risk-free rate of return is 9.0%, the expected rate of return on the market portfolio is 14%, and the stock of Xyrong Corporation has a beta coefficient of 2.0. Xyrong pays out 50% of its earnings in dividends, and the latest earnings announced were $20 per share. Dividends were just paid and are expected to be paid annually. You expect that Xyrong will earn an ROE of 18% per year on all reinvested earnings forever
a. What is the intrinsic value of a share of Xyrong stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Intrinsic valueS
b-1. If the market price of a share is currently $108, and you expect the market price to be equal to the intrinsic value one year from now, calculate the price of the share after one year from now. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Price
b-2. What is your expected one-year holding-period return on Xyrong stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Expected one-year holding-period return

Answers

Answer:

$109

$118.81

18.26%

Explanation:

Intrinsic value can be determined using the constant growth dividend model

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

dividend, growth rate and cost of equity are not given and they have to be calculated

growth rate = retention rate x ROE  

Retention rate = 1 - payout ratio = 1 - 0.5 = 0.5 = 50%

0.5 x 18% = 9%

According to the capital asset price model: cost of equity = risk free + beta x (market rate of return - risk free rate of return)

9% + 2x (14% - 9%) = 19%

dividend = payout ratio x earnings per share

0.5 x $20 = $10

Intrinsic value = [tex]\frac{10( 1 + 0.09)}{0.19 - 0.09}[/tex] = $109

Stock price in a year

[tex]\frac{10(1 + 0.9)^{2} }{0.19 - 0.09}[/tex] = 118.81

(dividend return + price return)  

price return is the return on investment as a result of appreciation or depreciation of share price  

Dividend return is the return on investment from dividend earned  

price return = price at the end of the year - price at the beginning of the year  

Net present value LO P3
A new operating system for an existing machine is expected to cost $820,000 and have a useful life of six years. The system yields an incremental after-tax income of $240,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $100,000.
A machine costs $560,000, has a $56,000 salvage value, is expected to last eight years, and will generate an after-tax income of $150,000 per year after straight-line depreciation.
Assume the company requires a 12% rate of return on its investments. Compute the net present value of each potential investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)
a. A new operating system for an existing machine is expected to cost $820,000 and have a useful life of six years. The system yields an incremental after-tax income of $240,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $100,000. (Round your answers to the nearest whole dollar.)
b. A machine costs $560,000, has a $56,000 salvage value, is expected to last eight years, and will generate an after-tax income of $150,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.)

Answers

Answer:

a. initial outlay = -$820,000

net cash flows years 1 - 5 = $240,000

net cash flow year 6 = $340,000

discount rate = 12%

using a financial calculator:

NPV = $217,400.87

IRR = 20.55%

b. initial outlay = -$560,000

net cash flows years 1 - 7 = $150,000

net cash flow year 8 = $206,000

discount rate = 12%

using a financial calculator:

NPV = $207,763.43

IRR = 21.65%

The following information pertains to Lightning Inc., at the end of December: Credit Sales $ 20,000 Accounts Payable 10,000 Accounts Receivable 11,800 Allowance for Uncollectible Accounts 400 credit Cash Sales 20,000 Lightning uses the aging method and estimates it will not collect 7% of accounts receivable not yet due, 20% of receivables up to 30 days past due, and 46% of receivables greater than 30 days past due. The accounts receivable balance of $11,800 consists of $7,500 not yet due, $2,300 up to 30 days past due, and $2,000 greater than 30 days past due. What is the appropriate amount of Bad Debt Expense

Answers

Answer:

The appropriate amount of Bad Debt Expense is $3,345.20.

Explanation:

The appropriate amount of Bad Debt Expense can be calculated as follows:

Bad debt expense = (Percentage of accounts receivable not yet due it will not collect * Accounts receivable not yet due) + (Percentage of receivables up to 30 days past due it will not collect * Amount of receivables up to 30 days past due) + (Parentage of receivables of receivables greater than 30 days past due it will not collect * Amount of receivables greater than 30 days past due) - Allowance for Uncollectible Accounts (credit) ……………………… (1)

Substituting the relevant values into equation (1), we have:

Bad debt expense = (7% * $7,500) + (20% + $2,300) + (46% * $2,000) - $400 = $3,345.20

Therefore, the appropriate amount of Bad Debt Expense is $3,345.20.

In divisional income statements prepared for Lemons Company, the Payroll Department costs are allocated to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are allocated on the basis of the number of purchase requisitions. The Payroll Department had costs of $62,928, and the Purchasing Department had expenses of $29,480 The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:

Residential Commercial Government Contract
Sales $2,000,000 $3,250,000 $2,900,000

Weekly payroll (52 weeks per year) 400 250 150
Monthly payroll 80 30 10
Number of purchase requisitions per year 7,500 3,000 2,000

Required:
a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division.
b. Using the activity base information in (a), determine the annual amount of payroll and purchasing costs charged back to the Residential, Commercial, and Government Contract divisions from payroll and purchasing services.
c. Residential's service department charge is _______ than the other two divisions because Residential is a user of service department services. Residential has many employees on a weekly payroll, which translates into a ________ number of payroll transactions.

Answers

Answer:

Lemons Company

a. Total amount of payroll checks = 920

amount of purchase requisitions = 12,500

b-a                  Residential      Commercial     Government  Total

Payroll         $32,832               $19,152          $10,944        $62,928

b-b  Purchasing

 Costs        $17,688                 $4,717              $7,075      $29,480

c. Residential's service department charge is __higher__ than the other two divisions because Residential is a user of service department services. Residential has many employees on a weekly payroll, which translates into a __higher__ number of payroll transactions.

Explanation:

a) Data and Calculations:

Cost of the Payroll Department = $62,928

Cost of the Purchasing Department = $29,480

                               Residential      Commercial     Government  Total

                                                                                     Contract

Sales                      $2,000,000     $3,250,000      $2,900,000 $8,150,000

Weekly payroll

(52 weeks per year)      400                     250                     150            800

Monthly payroll                 80                       30                        10             120

Total                               480                      280                     160            920

Number of purchase

 requisitions per year 7,500                 3,000                 2,000        12,500

a. Total amount of payroll checks = 920 (800 + 120)

Total amount of purchase requisitions = 12,500

b-a                  Residential      Commercial     Government  Total

Payroll         $32,832               $19,152          $10,944        $62,928

         (480/920 * $62,928) (280/920 * $62,928)  (160/920 * $62,928)

b-b  Purchasing

 Costs        $17,688                 $4,717              $7,075      $29,480

      (7,500/12,500 * $29,480) (2,000/12,500 * $29,480) (3,000/12,500 * $29,480)

Total         $50,520              $23,869         $18,019       $92,408

Percentage 54.7%                  25.8%              19.5%         100%

The Smith family wants to relocate to a neighborhood with better schools before their three-year-old goes to kindergarten. They talked with Byron about properties he has for sale in neighborhoods they would like to live in. They also mentioned to Byron that they both work and may need someone to help with in-home care for their child. Byron gave them Taylor’s name to call about childcare. The Smiths also said they were having a hard time getting loan approval, so Byron suggested that they call Travis. Which best describes the jobs performed by Byron, Taylor, and Travis?

a) Byron is a Customer Service Representative, Taylor is a Child Care Worker, and Travis is a Loan Counselor.

b) Byron is a Real Estate Manager, Taylor is a Nanny, and Travis is a Loan Counselor.

c) Byron is a Real Estate Manager, Taylor is a Preschool Teacher, and Travis is a Customer Service Representative.

d) Byron is a Home Counselor, Taylor is a Nanny, and Travis is a Property Manager.

Answers

Answer:

the correct answer is B)

Explanation:

Given that they spoke to Byron about properties that he wants to sell, that means he is a Real Estate Manager. Taylor came up because they needed in-home care. That makes Taylor a Nanny because Nannies are professionals who take care of babies in their own homes.

Loan counselors have no other major business besides advising people on issues relating to taking up a loan. Therefore that makes Travis a loan Counselor.

Cheers

oneycutt Co. is comparing two different capital structures. Plan I would result in 39,000 shares of stock and $108,000 in debt. Plan II would result in 33,000 shares of stock and $324,000 in debt. The interest rate on the debt is 7 percent. a. Ignoring taxes, compare both of these plans to an all-equity plan assuming that EBIT will be $160,000. The all-equity plan would result in 42,000 shares of stock outstanding. What is the EPS for each of these plans

Answers

Answer:

All equity plan:

EPS = $160,000 / 42,000 = $3.81

Plan I:

EPS = [$160,000 - ($108,000 x 7%)] / 39,000 = $152,440 / 39,000 = $3.91

Plan II:

EPS = [$160,000 - ($324,000 x 7%)] / 33,000 = $137,320 / 33,000 = $4.16

Plan II is better since the resulting EPS is higher than the other alternatives.

Mackenzie Company has a price of $38 and will issue a dividend of $ 2.00 next year. It has a beta of 1.3, the risk-free rate is 5.2%, and the market risk premium is estimated to be 4.9%. a. Estimate the equity cost of capital for Mackenzie. b. Under the CGDM, at what rate do you need to expect Mackenzie's dividends to grow to get the same equity cost of capital as in part (a)?

Answers

Answer and Explanation:

a. The computation of the equity cost of capital is shown below:

As we know that

Expected rate of return = Risk free rate + Risk Premium × Beta

= 5.20% + 4.90% × 1.30

= 11.57%

b. Now the rate at which the dividend should be grow is

Value of the stock = Expected dividend ÷ (cost of equity - growth rate)

$38 = $2 ÷ (11.57% -  growth rate)

so, the growth rate is 6.31%

Skyler Manufacturing recorded operating data for its shoe division for the year. Sales $4,500,000 Contribution margin 500,000 Controllable fixed costs 200,000 Average total operating assets 900,000 How much is controllable margin for the year

Answers

Answer:

Controllable margin= $300,000

Controllable margin in %= 33.3%

Explanation:

Controllable margin is sales revenue less controllable variable costs and fixed cost.

Controllable margin= Sales revenue - controllable variable cost - controllable fixed costs

Controllable margin= contribution margin - fixed costs

                                     = 500,000 - 200,000= 300,000

Controllable margin in %= 300,000/900,000 × 100 =33.3%

Controllable margin in %= 33.3

Computing Straight-Line and Double-Declining-Balance Depreciation
On January 2, 2016, Dechow Company purchases a machine to help manufacture a part for one of its key products. The machine cost $306,180 and is estimated to have a useful life of six years, with an expected salvage value of $32,760.
Compute each year's depreciation expense for 2016 and 2017 for each of the following depreciation methods.
a. Straight-line.
b. Double-declining balance.

Answers

Answer:

a.

2016 =  $45,570

2017 =  $45,570

b.

2016 =  $102,080

2017 =  $68,014

Explanation:

Straight line method

Straight line method charges a fixed amount of depreciation

Depreciation Charge = (Cost - Salvage Value) ÷ Estimated useful life

2016

Depreciation Charge = $45,570

2017

Depreciation Charge = $45,570

Double declining method

Double declining method charges a higher amount of depreciation at the early years and less in the later years

Depreciation Charge = 2 x SLDP x BVSLDP

2016

Depreciation Charge = 2 x 16.67 % x $306,180 = $102,080

2017

Depreciation Charge = 2 x 16.67 % x ($306,180 - $102,080)  = $68,014

Snowy Mountain Financial Advisors is a network of branches providing investing and financial advising services. It discloses that it uses a balanced scorecard with the following six performance measures.

Required:
Link the measures to the perspective number(s) of the balanced scorecard.

Perspective
1. Financial
2. Customer
3. Learning and growth
4. Internal business processed

Procedure Measure Prespective number
Market share
Regulatory compliance
New cutomer refresh from existing customer
Order errors
Brach profit

Answers

Answer:

Financial :  market share and Branch profit Customer : New customer referrals from existing customer Learning and Growth : Not available on the score card Internal business processed : Regulatory compliance, Order errors

Explanation:

Linking the measures to the perspective number(s) of the balanced scorecard

Financial :  market share and Branch profit Customer : New customer referrals from existing customer Learning and Growth : Not available on the score card Internal business processed : Regulatory compliance, Order errors

The Market share is simply a portion of the general market that is been controlled by a product or organization

New customer referrals form existing customers is one way a company can get new and returning customers to patronize them

Regulatory compliance and order errors  is been handled by the management of the business

Calculate amortization expense
In early January, Burger Mania acquired 100% of the common stock of the Crispy Taco restaurant chain. The purchase price allocation included the following items: $4 million, patent; $5 million, trademark considered to have an indefinite useful life; and $6 million, goodwill. Burger Mania's policy is to amortize intangible assets with finite useful lives using the straight-line method, no residual value, and a five-year service life.
What is the total amount of amortization expense that would appear in Burger Mania's income statement for the first year ended December 31 related to these items? (Enter your answers in dollars, not in millions.

Answers

Answer: $800,000

Explanation:

The total amount of amortization expense that would appear in Burger Mania's income statement for the first year ended December 31 related to these items will be:

Ammortization value = Patent value / Useful life

= $4,000,000 / 5

= $800,000

Therefore, the ammortization value is $800,000 per year.

Norris Company has the following capital structure: Common stock, $1 par, 100,000 shares issued and outstanding. On October 1, 2020, the company declared a 5% common stock dividend when the market price of the common stock was $15 per share. The stock dividend will be distributed on October 15, 2020, to stockholders on record on October 10, 2020. Upon declaration of the stock dividend, Norris Company would record:

Answers

Answer: Debit to retained earnings of $75000

Explanation:

Based on the information given, the stock dividend will be:

= 100,000 shares x 5%

= 100000 × 0.05

= 5,000 shares.

Since the market price is $15 per share, then the retained earnings will be:

= $15 × 5000

= $75000

Stock dividend distributable will be:

= 5,000 x $1

= $5000

Paid in capital in excess of par = $75000 - $5000 = $70000

The journal entry will be:

Debit Retained earnings $75000

Credit Stock dividend distributable $5,000

Credit Paid in capital in excess of par $70000

Oering's Furniture Corporation is a Virginia-based manufacturer of furniture. In a recent year, it reported the following activities:

Net income $5,135
Purchase of property, plant, and equipment 1,071
Borrowings under line of credit (bank) 1,117
Proceeds from issuance of stock 11
Cash received from customers 37,164
Payments to reduce long-term debt 46
Sale of marketable securities 219
Proceeds from sale of property and equipment 6,894
Dividends paid 277
Interest paid 90
Purchase of treasury stock (stock repurchase) 2,583

Required:
Based on this information, present the cash flows from investing and financing activities sections of the cash flow statement. (List cash outflows as negative amounts.)

Answers

Answer:

Cash flows from investing activities

Purchase of property, plant, and equipment       (1,071)

Sale of marketable securities                                   219

Proceeds from sale of property and equipment 6,894

Net Cash from investing activities                       6,042

Cash flows from financing activities

Borrowings under line of credit (bank)                   1,117

Proceeds from issuance of stock                               11

Payments to reduce long-term debt                       (46)

Dividends paid                                                        (277)

Purchase of treasury stock (stock repurchase) (2,583)

Net Cash used by financing activities

Explanation:

The cash flows from investing and financing activities sections of the cash flow statement are presented as above.

Suppose Nike, Inc. reported the following plant assets and intangible assets for the year ended May 31, 2022 (in millions): other plant assets $935.0, land $220.0, patents and trademarks (at cost) $510.0, machinery and equipment $2,160.0, buildings $980.0, goodwill (at cost) $210.0, accumulated amortization $50.0, and accumulated depreciation $2,200. Prepare a partial balance sheet for Nike for these items.

Answers

Answer:

                                        NIKE, INC.

               Partial Balance Sheet as of May 31, 2022

                                                                            (in millions)

Property, Plant and Equipment

Land                                                                          $220.0

Buildings                                                  $980.0

Machinery and Equipment                     $2160.0

Other Plant Assets                                  $935.0

Less: Accumulated Depreciation          $2200.0   $1875.0

Total Property, Plant and Equipment                    $2095.0

Intangible Assets:

Goodwill                                                                    $210.0

Patents and Trademarks                         $510.0

Less: Accumulated Amortization            $50.0       $460.0

Total Intangible Assets                                            $670.0

Match the title of the employment-related law to its description. Each label is used only once.

a. This law protects the workers from physical dangers while performing their jobs.
b. This law states that pensions need to be funded properly and directs that employees be kept informed about their pensions.
c. This law placed limits on child labor and set a minimum wage in the United States.
d. This law gives workers the right to take up to 12 weeks of unpaid leave per year for family reasons.

1. Pension Protection Act of 2006
2. Family and Medical Leave Act of 1993
3. Occupational Health and Safety Act of 1970
4. Fair Labor Standards Act of 1938

Answers

Answer:

a. This law protects the workers from physical dangers while performing their jobs. = Occupational Health and Safety Act of 1970

b. This law states that pensions need to be funded properly and directs that employees be kept informed about their pensions. = Pension Protection Act of 2006.

c. This law placed limits on child labor and set a minimum wage in the United States. = Fair Labor Standards Act of 1938.

d. This law gives workers the right to take up to 12 weeks of unpaid leave per year for family reasons. = Family and Medical Leave Act of 1993.

Last year, Valley Manufacturing reported sales of $800,000, net operating income of $40,000, and average operating assets of $400,000. The company is considering the purchase of equipment that will reduce expenses by $20,000. The equipment will increase average operating assets by $100,000 and be purchased by issuing a notes payable. Sales will remain unchanged. If Valley accepts the project, its return on investment (ROI) after the purchase is projected to

Answers

Answer:increase, 10%, 12%

Explanation:

On January 8, 2012, Speedway Delivery Service purchased a truck at a cost of $65,000. Before placing the truck in service, Speedway spent $4,000 painting it, $2,500 replacing tires, and $8,000 overhauling the engine. The truck should remain in service for five years and have a residual value of $6,000. The truck’s annual mileage is expected to be 22,000 miles in each of the first four years and 12,000 miles in the fifth year—100,000 miles in total. In deciding which depreciation method to use, David Greer, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-line, units-of-production, and double-declining-balance).
Requirements
1. Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation, and asset book value.
2. Speedway prepares financial statements using the depreciation method that reports the highest net income in the early years of asset use. For income tax purposes, the company uses the depreciation method that minimizes income taxes in the early years. Consider the first year that Speedway uses the truck. Identify the depreciation methods that meet the general manager’s objectives, assuming the income tax authorities permit the use of any of the methods.

Answers

Answer:

Speedway Delivery Service

1. Depreciation Schedules:

Depreciation Schedule (Straight-line Method)

Date                         Cost Value   Depreciation  Accumulated   Net Book

                                                          Expense     Depreciation       Value

December 31, 2012    $79,500         $14,700         $14,700          $64,800

December 31, 2013    $79,500         $14,700        $29,400          $50,100

December 31, 2014    $79,500         $14,700         $44,100         $35,400

December 31, 2015    $79,500         $14,700        $58,800         $20,700

December 31, 2016    $79,500         $14,700        $73,500           $6,000

Depreciation Schedule (Units-of-production Method)

Date                         Cost Value   Depreciation  Accumulated   Net Book

                                                          Expense     Depreciation       Value

December 31, 2012    $79,500         $16,170          $16,170          $63,330

December 31, 2013    $79,500         $16,170        $32,340           $47,160

December 31, 2014    $79,500         $16,170         $48,510         $30,990

December 31, 2015    $79,500         $16,170        $64,680          $14,820

December 31, 2016    $79,500         $8,820        $73,500           $6,000

Depreciation Schedule (Double-declining-balance Method)

Date                         Cost Value   Depreciation  Accumulated   Net Book

                                                          Expense     Depreciation       Value

December 31, 2012    $79,500         $31,800        $31,800          $47,700

December 31, 2013    $79,500         $19,080       $50,880         $28,620

December 31, 2014    $79,500          $11,448       $62,328           $17,172

December 31, 2015    $79,500          $6,869        $69,197          $10,303

December 31, 2016    $79,500          $4,303       $73,500           $6,000

2. The straight-line method reports the highest net income in the early years while the double-declining-balance method minimizes the income taxes in the early years.

Explanation:

a) Data and Calculations:

January 8, 2012:

Purchase of a delivery truck = $65,000

Cost of painting the truck =         4,000

Cost of replacing the tires =        2,500

Cost of overhauling the engine  8,000

Total costs =                            $79,500

Residual value =                          6,000

Depreciable amount =           $73,500

Estimated useful life = 5 years

Straight-line depreciation Method:

Annual depreciation expense = $14,700 ($73,500/5)

Units-of-production Method:

Depreciation rate per mile = $0.735 ($73,500/100,000)

For 22,000 miles, depreciation expense = $16,170 ($0.735 * 22,000)

For 12 ,000 miles, depreciation expense = $8,820 ($0.735 * 12,000)

Double-declining-balance method:

Depreciation rate = 100/5 * 2 = 40%

First year's depreciation expense = $31,800 ($79,500 * 40%)

Declined balance = $47,700 ($79,500 - $31,800)

Second year's depreciation expense = $19,080 ($47,700 * 40%)

Declined balance = $28,620 ($47,700 - $19,080)

Third year's depreciation expense = $11,448 ($28,620 * 40%)

Declined balance = $17,172 ($28,620 - $11,448)

Fourth year's depreciation expense = $6,869 ($17,172 * 40%)

Declined balance = $10,303 ($17,172 - $6,869)

Fifth year's depreciation expense = $4,303 ($10,303 - $6,000)

Other Questions
can someone tell what conditional sentences are Benjamin believes that 1/2 % is equivalent to 50%. Is he correct? Why or why not? Please explain. What was the process of exclusion experienced by the first independent republics of Latin America? pleasee help, thank you so much Chris has 150 Pokemon cards. Each week,Chris purchases 15 Pokemon cards to addto his collection. Which inequality can beused to find w, the number of weeks afterstarting his collection when Chris will havemore than 500 Pokemon cards in hiscollection?A.150w + 15 < 500B.15W + 150 < 500C.150w + 15 > 500Need HeD.15W + 150 > 500 Help. Whats the answer to this problem? HELP!The length of a rectangle is 6 cm longer than its width.The area of the rectangle is 135 cm. What is the width of the rectangle?Enter your answer in the box. Find the 8th term of the geometric sequence show below PLEASE HELP MEEE As a parable, or a simple story used to illustrate a lesson, what knowledge or moral does the poem, "The Blind Man And The Elephant" impart to the audience? Which of the following describes Dwight Eisenhower's response to communism? Help me please..?????? in your own words, why do you think the mining transitioned from underground tunnels to an open pit which is the smallest integers, please answer, -9, 0, -2, -4, -11 I need help please. I need the the discount and selling price. Thank you What would be the perimeter?? Write a paragraph that states and defends a claim about which object from A History of the World in 100 Objects is the most historically significant. Choose one of the following objects: the Benin plaques, The Great Wave, the Sudanese slit drum, or the suffragette-defaced penny. Help HELP HELP HELP PLS!!! What is the important organelle that eukaryotic cells have and prokayotic cells don't have? solve for the x value of the x intercept of the line 5x-y=-5 Really need help on number 2 dont know where to place it (WILL MARK BRANLIEST)