Answer:
Debt to equity ratio and total amounts of liabilities
Explanation:
Permanent and Temporary components of Earnings
The Permanent components of earnings may continue into future. Example is the sales revenue from regular product lines may continue in the future.
Temporary components of earnings may not continue in the future. Example is the gains or losses from the sale of equipment
Quality of Earnings
This is simply defined as any substance of earnings and their sustainability into future accounting periods.
The Quality of Earnings is influence largely by:
1. Accounting Methods: this entails all methods/means are set up/designed to match revenue and expenses.
2. Accounting estimates: this is when users of financial statement need to be aware of the impact that accounting estimates have on income.
3. One time items: this covers if and when earnings increase/decrease because of a one time items,then that portion of earnings will be sustained in the future.
Components of Earnings quality
1. Proper revenue and expense recognition
2. Declining or stable operating expenses compared to sales
3. High and persistently improving gross margin/ sales ratio etc.
The debt to equity ratio and the total amount of liabilities of a company is not important in evaluating the earnings' quality.
Final goods or services used to compute GDP refer to: the value of outstanding shares of stock of manufacturing firms. the value of outstanding shares of stock of manufacturing firms. the factors of production used to produce output. the factors of production used to produce output. goods and services at the final stage of production they have reached during the year.
Answer:
goods and services at the final stage of production they have reached during the year.
Explanation:
Gross Domestic Products (GDP) is a measure of the total market value of all finished goods and services made within a country during a specific period.
Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country. Also, gross domestic products (GDP) is a measure of the production levels of any nation.
Basically, the four (4) major expenditure categories of GDP are consumption (C), investment (I), government purchases (G), and net exports (N).
Hence, the gross domestic products (GDP) of a country is computed using final goods or services, which simply are goods and services at the final stage of production they have reached during the year.
In conclusion, the goods or services that are purchased by consumers (end users) are typically used for computing final goods or services.
Hellman Industries is estimating the weighted average cost of capital of its new project. The company plan to finance this new project by 50 percent ordinary shares, 10 percent preference equity and rest by issuing debt. The return on FTSE 100 index is 11.4 percent and the 3 months’ treasury bills yield is 4%. The Hellman beta is 1.05. The average yield to maturity of Hellman semiannual coupon bonds is 8.3 percent. The Preference share are currently valued at £76, with a par value of £100 and an 8% dividend. The Hellman Industries is in the 40% marginal Tax bracket. a. Find the Pretax cost of Debt,
Question Completion:
a. Find the Pretax cost of Debt, cost of preference, and ordinary shares.
b. Calculate Hellman Pre- tax and after Tax WACC.
Answer:
Hellman Industries
a) Pretax cost of debt = Yield on bonds = 8.3%
b) Cost of Common equity
= 11.77%
c) Cost of preferred stock
= 10.53%
d) Pre-tax WACC
= 10.3%
e) After-tax WACC
= 8.93%
Explanation:
a) Data and Calculations:
Weight of Common stock = 50%
Weight of Preferred stock = 10%
Weight of Debts (Bonds) = 40% (100% - 50% - 10%)
Market return on common stock = 11.4%
Risk-free return (treasury bills yield) = 4%
Beta = 1.05
Average yield to maturity of Hellman semiannual coupon bonds = 8.3%
Market price of Preferred stock = £76 per share
Par value of Preferred stock = £100
Dividend rate of Preferred stock = 8%
Dividend per share = £8 (£100 * 8%)
Cost of Preferred stock = £8/£76 * 100 = 10.53%
Marginal tax rate = 40%
a) Pretax cost of debt = Yield on bonds = 8.3%
After-tax cost of debt = 8.3% (1 - 0.4) = 4.98%
b) Cost of Common equity, Re = Risk Free Rate + Beta x (Market Return - Risk Free Rate) = 4% + 1.05 x (11.4% - 4%)
= 4% + 1.05 * 7.4%
= 4% + 7.77%
= 11.77%
c) Cost of preferred stock = Dividend per share/Price * 100
= $8/$76 * 100
= 10.53%
d) Pre-tax WACC = 50% * 11.77% + 10% * 10.53% + 40% * 8.3%
= 5.885 + 1.053 + 3.32
= 10.258
= 10.3%
e) After-tax WACC = 50% * 11.77% + 10% * 10.53% + 40% * 4.98%
= 5.885 + 1.053 + 1.992
= 8.93%
The papilla supplies nourishment to the
Answer:
Papilla: Cells filled with capillaries that supply nourishment to the cells around it.
The following data relate to direct materials for the month for the Hodge Wax Company: The standard costs for the work done was 5,900 pounds of wax at $9.50 per pound. The actual costs were 6,300 pounds at $9 per pound. What is the direct materials efficiency variance
Answer: $3800 U
Explanation:
The direct material efficiency variance will be calculated as follows:
Direct material efficiency variance = (Standard quantity - Actual quantity) × Standard price of material
= (5900 - 6300) × 9.50
= 400 × 9.50
= $3800 U
Therefore, the direct material efficiency variance is $3800 Unfavorable.
Buffet Company was organized in January 2018 and has 1,000 shares of $200 par value, 10 percent, noncumulative preferred stock outstanding and 3,000 shares of $1 par value common stock outstanding. Dividends declared and paid each year are $10,000 in 2018, $15,000 in 2019, and $75,000 in 2020. During 2020, the dividends that must be paid to the preferred and common stockholders, respectively, total _____. multiple choice $35,000 and $40,000 $75,000 and $0 $20,000 and $55,000 $100,000 and $0
Answer:
$20,000 and $55,000
Explanation:
Calculation to determine the dividends that must be paid to the preferred and common stockholders, respectively
PREFERRED
Preferred stock holders = 1,000 × $200 × 10%
Preferred stock holders=$20,000
COMMON STOCKHOLDERS
Common stockholders =$75,000-(1,000 × $200 × 10%)
Common stockholders = $75,000 - $20,000
Common stockholders = $55,000
During 2020, the dividends that must be paid to the preferred and common stockholders, respectively, total $20,000 and $55,000
Ana, a project manager, has been asked to estimate the cost of the project. She wants that cost estimate for the project to be as accurate as possible. Which techniques will she use to accomplish the task?
Answer:
v
Explanation:
Local currency debt is valuable to the foreign subsidiary that has substantial local currency cash inflows from its business activities. It provides a foreign exchange financial hedge.
a. True
b. False
Beech Company produced and sold 105,000 units of its product in May. For the level of production achieved in May, the budgeted amounts were: sales, $1,300,000; variable costs, $750,000; and fixed costs, $300,000. The following actual financial results are available for May.
Actual
Sales (105,000 units) $ 1,275,000
Variable costs 712,500
Fixed costs 300,000
Prepare a flexible budget performance report for May.
Beech Company
Flexible Budget Performance Report
For Month Ended May 31
Flexible Budget
Actual Results
Variance
Favorable/Un fav.
Sales
Variable Expense
Contribution Margin
Fixed Expense
Income from Operations
(Could you please show how to get the Flexible Budget)
Answer:
I will answer next time not this
Old Tired Professor Mullen, Inc. has $20,000 of ending (EI) finished goods inventory. If beginning (BI) finished goods inventory was $10,000 and Cost of Goods Sold (CGS) (OUT) was $40,000, how much would the Old Tired Professor report for Cost of Goods Manufactured (CGM) (IN)
Difference between beginning and ending CoG: 20,000-10,000 = 10,000
Difference + sold:
10,000 + 40,000 = 50,000
Answer: $50,000
BWCT is a mining company that operates the world's exclusive mining site to harvest a new metal. Assuming it is a monopoly, which of the following statements is least likely concerning entry and exit in this market currently?
a. There is predatory price cutting being done by BWCT to keep new companies out of mining.
b. There is tight control over a key resource by BWCT.
c. There is an economy of scale at work making it cheap to produce more products.
d. There are government regulations enabling firms to enter the market easily.
Answer:
D; There are government regulations enabling firms to enter the market easily
Explanation:
Assuming BWCT as a monopoly, statements is least likely concerning entry and exit in this market currently there are government regulations enabling firms to enter the market easily. Thus the correct answer is D.
What is a monopoly?Monopoly refers to a single rule of the seller in the market. This is a type of busines structure where there are single busines that control the ownership of the market and restrict entries to give competition.
This monopoly structure of business led to high barriers to entry as the complete market is controlled by a single business entity which restricts others to enter. As there is no competition in the market the firms involved in monopoly gain more profit maximization.
The discrimination of price is also controlled as there is a single seller who sold the products and there are many buyers. So the seller can change the price of the product at any time.
Therefore, option D There are government regulations enabling firms to enter the market easily is the appropriate answer.
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Roddie is 30 years old. He was demoted from his job as a manager at Big Trucks, a company with 10,000 employees. He was replaced by Bambi, a 45-year-old. Roddie was told that he was a little too young for management. Under the Age Discrimination in Employment Act (ADEA), what are Roddie's options
The option available for Roddie would be "Roddie has no options under ADEA."
To understand this, we need to go through the terms of 'Age Discrimination Policy in Employment Act;'
This Act covers the cases of employees or workers aging either 40 or above who have suffered age-based discrimination.The people aging under 40 are not covered under this act and hence, the benefits can not be reaped by them in any situation. This law doesn't allow the process of giving preference to an older employee over the younger to be considered illegal.Hence, Roddie has no available options under ADEA as he is below 40(in fact only 30 years old) and he cannot claim under ADEA for justice.
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Which of the following statements is the most correct?
a. A borrower's long-term debt typically has a higher interest rate than its short-term debt.
b. Debt that is infrequently traded (less liquid) typically has a lower interest rate than similar but highly traded debt.
c. Variable (floating) rate debt is more prevalent when long-term borrowing rates are low.
d. Variable (floating) rate debt should never be used by healthcare providers because it is too risky.
e. Fixed interest rate debt is more prevalent when long-term borrowing rates are high.
Answer:
A
Explanation:
i think it has been explain according to the option
When effective communication affected your success at work
Answer:
Being able to communicate at school and in the workplace may mean the difference between success and failure. With your peers, communication helps you to engage and find common ground, allowing you to build friendships that not only last a lifetime, but may lead to future employment opportunities.
Explanation:
Áp dụng một trong các phương pháp quản trị chất lượng để phân tích thực trạng công tác quản trị chất lượng tại một tổ chức/doanh nghiệp cụ thể.
Answer:
Bench marking and Continuous improvement.
Explanation:
Quality management is essential for any business. It is necessary to inspect quality of goods before they are sold to customers so that faulty products are identified at an earlier stage. There are various quality management techniques which are used by businesses. Kaizen, Six sigma, and zero defect programs are various total quality management techniques. There should be strict inspection of finished goods before they are dispatched to the customers.
Cucina Corp. signed a new installment note on January 1, 2018, and deposited the proceeds of $50,000 in its bank account. The note has a three-year term, compounds 5 percent interest annually, and requires an annual installment payment on December 31. Cucina Corp. has a December 31 year-end and adjusts its accounts only at year-end. Required:
Question Completion:
Required:
1.Use an online application, such as the loan calculator with annual payments at mycalculators.com, to generate an amortization schedule. Enter that information into an amortization schedule with the following headings: Year, Beginning Notes Payable, Interest Expense, Repaid Principal on Notes Payable, and Ending Notes Payable.
2.Prepare the journal entries on (a) January 1, 2018, and December 31 of (b) 2018, (c) 2019, and (d) 2020.
3.If Cucina Corp.’s year-end were March 31, rather than December 31, prepare the adjusting journal entry it would make for this note on March 31, 2018?
Answer:
Cucina Corp.
1. Annual Amortization Schedule
Year Beginning Interest Expense Repaid Principal Ending Notes
Notes Payable on Notes Payable Payable
1 $50,000.00 $2,140.23 $15,842.25 $34,157.68
2 $34,157.68 $1,329.68 $16,652.80 $17,504.84
3 $17,504.84 $477.71 $17,504.77 $0.00
2. (a) January 1, 2018
Debit Cash $50,000
Credit Installment Note Payable $50,000
To record the issuance of the installment note.
December 31 of
(b) 2018
Debit Interest Expense $2,140.23
Debit Installment Note Payable $15,842.25
Credit Cash $17,982.48
To record the first installment repayment, including interest.
(c) 2019
Debit Interest Expense $1,329.68
Debit Installment Note Payable $16,652.80
Credit Cash $17,982.48
To record the second installment repayment, including interest.
(d) 2020
Debit Interest Expense $477.71
Debit Installment Note Payable $17,504.77
Credit Cash $17,982.48
To record the third and final installment repayment, including interest.
3. (b) 2018
Debit Interest Expense $625
Credit Interest Payable $625
To accrue interest expense for the year ($50,000 * 5% * 3/12)
Explanation:
a) Data and Calculations:
Installment note payable obtained on January 1, 2018 = $50,000
Period of note payable = 3 years
Interest rate = 5% compounded annually
Annual interest payment = December 31
Assume that Zonk is a potential leveraged buyout candidate. Assume that the buyer intends to put in place a capital structure that has 70 percent debt with a pretax borrowing cost of 14 percent and 30 percent common equity. Compute the revised equity beta for Zonk based on the new capital structure.
Answer: 4.35
Explanation:
The revised equity beta for Zonk based on the new capital structure will be gotten as follows:
= 1.13 × [1 + (1 - 35%)][70% /30%]
= 1.13 × [1+(1-0.35)][0.70/0.30]
= 1.13 × [1 + 0.65][2.33]
= 1.13 × (1.65)(2.33)
= 4.35
Therefore, the revised equity beta for Zonk is 4.35.
Preparing a Budgeted Income Statement Oliver Company provided the following information for the coming year: Units produced and sold 160,000 Cost of goods sold per unit $6.30 Selling price $11 Variable selling and administrative expenses per unit $1.10 Fixed selling and administrative expenses $423,000 Tax rate 33 % Required: Prepare a budgeted income statement for Oliver Company for the coming year. Round all income statement amounts to the nearest dollar.
Answer and Explanation:
The preparation of the income statement is presented below:
Sales $1,760,000 (160,000 × $11)
Less: cost of goods sold ($1,008,000) (160,000 × $6.30)
Gross margin $752,000
Less: Variable selling and administrative expenses ($176,000) (160,000 × $1.10)
Less: Fixed selling and administrative expenses ($423,000)
Operating income $153,000
Less: INcome taxes ($50,490)
Net income $102,510
Which of these are good ways to find a buyer’s agent?
Answer:
1.Search online.
2.Interview agents.
Suppose you decide to deposit $18,000 in a savings account that pays a nominal rate of 6%, but interest is compounded daily. Based on a 365-day year, how much would you have in the account after nine months
Answer:
FV= $18,827.23
Explanation:
Giving the following information:
Initial investment (PV)= $18,000
Interest rate (i)= 0.06/365= 0.000164
Number of periods (n)= (365/12)*9= 274 days
To calculate the future value (FV), we need to use the following formula:
FV= PV*(1 + i)^n
FV= 18,000*(1.000164^274)
FV= $18,827.23
On December 31, 2018, a company had assets of $34 billion and stockholders' equity of $28 billion. That same company had assets of $50 billion and stockholders' equity of $12 billion as of December 31, 2019. During 2019, the company reported total sales revenue of $27 billion and total expenses of $25 billion. What is the company's debt-to-assets ratio on December 31, 2019
Answer:
131.6%
Explanation:
Total assets is $50 billion
Liabilities = 50-stock holder equity which is $12 billion
= 50-12
= $38 billion
Therefore the debt to assets ratio can be calculated as follows
= 50 billion/38 billion
= 1.3157×100
°= 131.6
Hence the debts to assetsrayion is 131.6%
On May 1, Carlisle Co. sold inventory to a customer for $1,000 2/10, n/30. Carlisle Co. uses the gross method for reporting sales discounts. The customer paid the account in full on May 20. What will be the Net Sales reported on the Income Statement from these tranactions
Answer:
The Net Sales that will reported on the Income Statement from these transactions is $1,000.
Explanation:
The term "2/10, n/30" implies that the customer will enjoy a 2% discount if it pays within 10 days but must pay the total amount within 30 days.
However, customer paid on May 20 which is outside the 2% discount period. This implies the customer did not enjoy the 2% discount. That is, the customer paid the full amount of $1,000. Therefore, the net sales is $1,000 from these transactions.
Therefore, the Net Sales that will reported on the Income Statement from these transactions is $1,000.
The following information relating to a company's overhead costs is available.
Actual total variable overhead$73,000
Actual total fixed overhead$17,000
Budgeted variable overhead rate per machine hour$2.50
Budgeted total fixed overhead$15,000
Budgeted machine hours allowed for actual output 30,000
Based on this information, the total variable overhead variance is:_______.
Answer: $2,000 favorable
Explanation:
Total variable overhead variance = Budgeted variable overhead - Actual total variable overhead
Budgeted variable overhead = Budgeted machine hours allowed for actual output * Budgeted variable overhead rate per machine hour
= 30,000 * 2.50
= $75,000
Total variable overhead variance = 75,000 - 73,000
= $2,000 favorable
Favorable because the actual amount was less than the budgeted one.
Chad is the founder of a firm producing self-driving vehicles. Because the industry is so new and chaotic, Chad favors a top-down strategic planning approach in which he exerts strong control over all aspects of the business, from product development and design to manufacturing and marketing. What is wrong with this scenario?
a. The self-driving vehicle industry is changing too much for the top- down approach to be effective.
b. The top-down approach can only be applied to specific business functions.
c. The top-down approach leaves other employees uncertain about their roles in the company.
d. The top-down approach is expensive to maintain, leaving the company at a competitive disadvantage.
Answer:
A)The self-driving vehicle industry is changing too much for the top-down approach to be effective.
Explanation:
Top-down analysis can be regarded as utilization of comprehensive factors to serve as basis for making decision . This top-down approach helps in
identifying the big picture as well as all of its components. It usually serves as
driving force as regards the end goal.
Top-down is commonly used in domain of macroeconomics.
Hence, the problem here is self-driving vehicle industry is changing too much for the top-down approach to be effective.
A retail store sold gift certificates that are redeemable in merchandise. The gift certificates lapse one year after they are issued. How would the deferred revenue account be affected by each of the following?
Redemption of certificates Lapse of certificates
a. Decrease Decrease
b. Decrease No effect
c. No effect Decrease
d. No effect No effect
Answer:
The correct option is b. That is, the deferred revenue account will be affected as follows:
Redemption of certificates Lapse of certificates
b. Decrease No effect
Explanation:
The given options in the question are clearly stated as follows:
Redemption of certificates Lapse of certificates
a. Decrease Decrease
b. Decrease No effect
c. No effect Decrease
d. No effect No effect
The explanation of the answers is now provided as follows:
When a gift certificate is redeemed, it implies that merchandise has been given to the holder of the gift certificate in return. This will therefore decrease the deferred revenue account.
However, the moment a gift certificate is lapse; it is no longer possible redeem it for merchandise. That is, no merchandise has been given to the holder of the gift certificate in return. This therefore indicates that that the deferred revenue account will not change.
Therefore, the correct option is b. That is, the deferred revenue account will be affected as follows:
Redemption of certificates Lapse of certificates
b. Decrease No effect
Sybil, age 40, is single and supports her dependent parents who live with her, as well as her grandfather who is in a nursing home. She has AGI of $80,000 and itemized deductions of $8,000. What is the taxable income?
Answer:
$61,650
Explanation:
Calculation to determine the taxable income
Adjusted Gross Income (AGI) $80,000
Deduct Standard deduction (head of household) ($18,350)
Taxable Income $61,650
($80,000-$18,350)
Therefore the vthe taxable income is $61,650
A machine costs $5240 and produces benefits of $1000 at the end of each year for eight years. Assume an annual interest rate of 10%. Use engineering economics principals a.) What is the payback period in years
Answer:
5.24 YEARS
Explanation:
Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
Payback period = Amount invested / cash flow
5240 / 1000 = 5.24 YEARS
The Rolling Department of Oak Ridge Steel Company had 3,600 tons in beginning work in process inventory (50% complete). During July, 59,500 tons were completed. The ending work in process inventory on July 31 was 3,000 tons (40% complete).
What are the total equivalent units for direct materials for July if materials are added at the beginning of the process?
Change Treaster in equilibrium Income Investment adultiplier =Y-S II 1-6 In au A the (ID Accure acanany Tax Increased by eas what will be the change in equilibrium Income if the slope of the saving function is 0.5 Initial equilibrium income was cu 1000 what will be the new squilibrium. & Incame after tax decrease Interprete your findings
Answer:
실례합니다? 당신은 이것을 의미합니까?
Explanation:
균형에서 Treaster의 변화 소득 투자 성체 = YS II 1-6 In au A (ID Accure acanany Tax 증가 eas만큼 균형의 변화는 얼마입니까 저축 함수의 기울기가 0.5인 경우 소득 초기 균형 소득은 cu 1000 새로운 균형이 되십시오. & 세금 감면 후 소득 조사 결과 해석 ??
On January 1, 2021, G Corp. granted stock options to key employees for the purchase of 87,000 shares of the company's common stock at $26 per share. The options are intended to compensate employees for the next two years. The options are exercisable within a four-year period beginning January 1, 2023, by the grantees still in the employ of the company. No options were terminated during 2021, but the company does have an experience of 6% forfeitures over the life of the stock options. The market price of the common stock was $32 per share at the date of the grant. G Corp. used the Binomial pricing model and estimated the fair value of each of the options at $8. What amount should G charge to compensation expense for the year ended December 31, 2021
Answer:
the compensation expense for the year is $327,120
Explanation:
The computation of the compensation expense for the year is given below:
= (Number of stock options to be purchased × (1 - forefeiture percentage) × fair value per option)) ÷ 2
= (87,000 shares × (1 - 0.06) × $8)) ÷ 2
= $327,120
Hence, the compensation expense for the year is $327,120
The same should be considered and relevant too
A company's managers should almost always give serious consideration to making significant adjustments in its camera/drone strategies and competitive approaches when:
a. all or most of its competitors are using mostly different competitive approaches and therefore the marketplace is not big enough to accommodate all of the competitors.
b. all or most of its competitors are using mostly copycat competitive approaches that make it difficult for any of these companies to capture sales volumes and revenues big enough to earn profits large enough to meet investor-expected EPS, ROE, and stock price appreciation targets.
c. the number of camera and drone workstations the company has installed is NOT well above the industry-averages (as reported on pages 6 and 7 of the most recent Camera & Drone Journal).
d. the company's market share for action cameras has not been the largest for two straight years and when its EPS and ROE have also not been the highest in the industry for two straight years.
e. the company's operating profits per action camera sold are not substantially above the industry-average benchmarks in at least three geographic regions (as reported on p. 6 of the most recent Camera & Drone Journal),
Answer:
Hence the correct option is option b - All are most of its competitors are using mostly copycat competitive approaches that make it difficult for any of these companies to capture sales volumes and revenues big enough to earn profits large enough to meet investor expected EPS, ROE, and stock price appreciation targets.
Explanation:
A company's management should nearly always give serious consideration to creating significant adjustments in its camera or drawn strategies and competitive approaches when all or most of its competitors are using mostly copycat competitive approaches that make it difficult for any of those companies to capture sales volumes and revenues large enough to earn profits large enough to satisfy investor expected EPS ROE and stock price appreciation targets.
The correct option for the given question is "all or most of its competitors are using mostly copycat competitive approaches that make it difficult for any of these companies to capture sales volumes and revenues big enough to earn profits large enough to meet investor-expected EPS, ROE, and stock price appreciation targets."
What is camera/drone strategies?The camera/drone strategy involves the strategic approach of a company in which the company overlooks its competitors, their market, and strategies and modify its strategies accordingly.
If the competitors are using copycat competitive approaches and hence are making it difficult for the company to achieve sales volume and revenue and the expectations of the companies' investors regarding the EPS, ROE and stock price appreciation are difficult to meet, the company should consider its camera/drone strategies and competitive approaches.
Therefore the correct option is b.
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