Answer:
Year 1 Year 2 Year 3 Year 4 Year 5
1. Present value $18,180 $18,172 $22,530 $21,173 $24,840
2. Present value of the net sales proceeds = $248,400
3. Total present value of the property = $104,895
4. Total return on the investment = $143,505
5. Forecasted appreciation in value on the property = $295,105
5B. The net present value (NPV) of the deal, if you pay $350,000 at Year 0 = -$101,600
5C. The IRR, using the short-cut method, = 15%
Explanation:
a) Data and Calculations:
Opportunity cost of capital (OCC) = 10%
NOI at the end of the 5th year = $40,000
Selling price at the end of the 5th year = $400,000 ($40,000 * 10)
Year 1 Year 2 Year 3 Year 4 Year 5
Net Operating
Income (NOI) $20,000 $22,000 $30,000 $31,000 $40,000
Discount factor 0.909 0.826 0.751 0.683 0.621
1. Present value $18,180 $18,172 $22,530 $21,173 $24,840
2. Present value of the net sales proceeds = $248,400 ($400,000 * 0.621)
3. Total present value of the property = $104,895 ($18,180 + $18,172 + $22,530 + $21,173 + $24,840)
4. Total return on the investment = $143,505 ($248,400 - $104,895)
5. Forecasted appreciation in value on the property = $295,105 ($400,000 - $104,895)
5B. The net present value (NPV) of the deal, if you pay $350,000 at Year 0 = -$101,600 ($248,400 - $350,000)
5C. The IRR, using the short-cut method, = 15% (100%/5 * 75%)
A company that sells multiple types of products has a selling price per composite unit of $150, variable cost per composite unit of $50 and total fixed costs of $25,000. The contribution margin per composite unit is $ .
Answer:
See below
Explanation:
With regards to the above information, the contribution margin is computed as seen below.
Contribution margin per composite unit = Selling price per composite unit - Variable cost per composite unit
= $150 - $50
= $100
Hence, the contribution margin per composite unit is $100
Poe Company is considering the purchase of new equipment costing $81,500. The projected net cash flows are $36,500 for the first two years and $31,500 for years three and four. The revenue is to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of an annuity of 1 and present value of an annuity for different periods is presented below. Compute the net present value of the machine.
Answer:
$27,028.45
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
Cash flow in year 0 = $-81,500
Cash flow in year 1 and 2 = $36,500
Cash flow in year 3 and 4 = $31,500
I - = 10%
NPV = $27,028.45
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
brooks is babysitting this summer while she is home from college. she puts the money in the bank every week. this illustrates one of the advantages of money over bartering, which is
Answer:
it can be stored overtime
Explanation:
Equipment with a book value of $65,300 and an original cost of $133,000 was sold at a loss of $14,000. Paid $89,000 cash for a new truck. Sold land costing $154,000 for $198,000 cash, yielding a gain of $44,000. Long-term investments in stock were sold for $60,800 cash, yielding a gain of $4,150. Use the above information to determine cash flows from investing activities.
Answer:
Net cash provided by investing activities $221,100
Explanation:
The computation of the cash flows from investing activities is shown below:
Sale of equipment (65300 - 14000) 51300
Less: Purchase of new truck -89000
Add: Sale of land 198000
Add: Sale of Long-term investments 60800
Net cash provided by investing activities $221,100
A manufacturing shop is designed to operate most efficiently at an output of 950 units per day. In the past month the plant produced 750 units. What was their capacity utilization rate last month? (Round your answer to 1 decimal place.) Capacity utilization rate %
Answer:
78.95%
Explanation:
Capacity utilization rate = Capacity used / Best operating level
Capacity utilization rate = 750 units / 950 units
Capacity utilization rate = 0.789473684
Capacity utilization rate = 78.95%
So, their capacity utilization rate last month is 78.95%
Suppose Skyler invests in an annuity that pays 3.2% annual interest, compounded monthly. If she contributes $155 every month for 10 years, how much interest would she earn during that time
Answer: $3,286.47
Explanation:
Find the future value of the annuity after 10 years.
Number of periods = 10 * 12 months = 120 months
Interest = 3.2% / 12 = 3.2/12%
Future value of annuity = Annuity * ( (1 + rate)^ number of periods- 1) / rate
= 155 * ( ( 1 + 3.2%/12) ¹²⁰- 1) / 3.2%/12
= $21,886.47
The find the amount that the money would have come to without being invested:
= 155 * 120 months
= $18,600
Interest is:
= 21,886.47 - 18,600
= $3,286.47
Based on a predicted level of production and sales of 12,000 units, a company anticipates reporting operating income of $26,000 after deducting variable costs of $72,000 and fixed costs of $10,000. Based on this information, the budgeted amounts of fixed and variable costs for 15,000 units would be
Answer:
Fixed Cost = $10,000
Variable Costs = $90,000
Explanation:
Variable Cost per unit = $72,000 ÷ 12,000
= $6
Variable Costs at 15,000 units = $6 x 15,000
= $90,000
Fixed Cost (given) = $10,000
Explain ethics in dealing with employers and discuss the various methods used by salespeople
that can be regarded as being unethical towards the employer specifically. Give a practical
example of each in relation to a sales situation.
that they always want to be correct and they always like their stores to be clean and neat, and they can sometimes follow you too
Classify the transaction as either an operating activity, an investing activity, a financing activity, or a noncash activity:
1. Common stock is sold for cash
2. Bonds payable are issued for cash at a discount
3. Interest on a short-term note receivable is collected
4. Merchandise is sold to customers for cash
5. Cash paid to purchase inventory
Answer:
1. financing activity
2. financing activity
3. investing activity
4. operating activity
5. operating activity
Explanation:
Operating Activities includes Firms activities in sale and purchase of Inventory.
Investing Activities shows cash resulting from acquiring and sale of assets as well as receipt of interest on the investments.
Financing Activities shows cash resulting from raising capital or debt and the repayment of debt.
Exercise 5-10 Lower of cost or market LO P2 Martinez Company's ending inventory includes the following items. Product Units Cost per Unit Market per Unit Helmets 27 $ 55 $ 59 Bats 20 83 77 Shoes 41 100 96 Uniforms 45 41 41 Compute the lower of cost or market for ending inventory applied separately to each product.
Answer:
Martinez Company
Ending inventory is:
= $8,806.
Explanation:
a) Data and Calculations:
Product Units Cost per Unit Market per Unit
Helmets 27 $ 55 $ 59
Bats 20 83 77
Shoes 41 100 96
Uniforms 45 41 41
Lower of cost or market value Valuation:
Product Units Cost per Unit Market per Unit LCM
Helmets 27 $ 55 $ 59 $1,485
Bats 20 83 77 1,540
Shoes 41 100 96 3,936
Uniforms 45 41 41 1,845
Total cost of ending inventory $8,806
resented below is information related to Sandhill Enterprises.
Jan. 31 Feb. 28 Mar. 31 Apr. 30
Inventory at cost $15,750 $15,855 $17,850 $14,700
Inventory at LCNRV 15,225 13,230 16,380 13,965
Purchases for the month 17,850 25,200 27,825
Sales for the month 30,450 36,750 42,000
From the information, prepare as far as the data permit monthly income statements in columnar form for february march and april.
Answer:
Sandhill Enterprises
Sandhill Enterprises
Income Statements
For the months ended Feb. 28, March 31, and April 30, 2020:
Feb. 28 March 31 April 30
Sales for the month $30,450 $36,750 $42,000
Cost of goods sold 19,845 22,050 30,240
Gross profit $10,605 $14,700 $11,760
Explanation:
a) Data and Calculations:
Jan. 31 Feb. 28 Mar. 31 Apr. 30
Inventory at cost $15,750 $15,855 $17,850 $14,700
Inventory at LCNRV 15,225 13,230 16,380 13,965
Purchases for the month 17,850 25,200 27,825
Sales for the month 30,450 36,750 42,000
Determining the ending inventory based on LCNRV:
Jan. 31 Feb. 28 Mar. 31 Apr. 30
Inventory at cost $15,750 $15,855 $17,850 $14,700
Inventory at LCNRV 15,225 13,230 16,380 13,965
Ending inventory 15,225 13,230 16,380 13,965
Beginning inventory 15,225 13,230 16,380
Determining the Cost of Goods Sold:
Beginning inventory 15,225 13,230 16,380
Purchases for the month 17,850 25,200 27,825
Ending inventory 13,230 16,380 13,965
Cost of goods sold 19,845 22,050 30,240
What percentage of authorized shares was issued by Coca-Cola at December 31, 2015, and by PepsiCo at December 26, 2015
Answer:
December 26
Explanation:
Because Pepsi Co is buy
WV Construction has two divisions: Remodeling and New Home Construction. Each division has an on-site supervisor who is paid a salary of $74,000 annually and one salaried estimator who is paid $42,000 annually. The corporate office has two office administrative assistants who are paid salaries of $46,000 and $35,000 annually. The president's salary is $147,000. How much of these salaries are common fixed expenses?
$312,000
Office administrative assistant $ 74,000
Office administrative assistant 49,000
President's salary 189,000
Common fixed expenses is the sum of the mentioned amounts above
= $ 312,000
if that one is not good then here is a other answer
WV Construction two divisions common fixed expenses is $312000
WV Construction two divisions Compensation cost that can't be distributed on a division astute premise are common fixed costs and can't be dispensed toward any office.
Total common fixed expense = $74000 + $49000 + $189000
Total common fixed expense = $312000
lannigan Company manufactures and sells a single product that sells for $450 per unit; variable costs are $270. Annual fixed costs are $800,000. Current sales volume is $4,200,000. Compute the current margin of safety in dollars for Flannigan Company
Answer:
$2,200,000
Explanation:
Margin of safety means by how much sales can fall before a firm starts making a loss.
Margin of safety = Current Sales - Break even sales
where,
Break even sales = Fixed Cost ÷ Contribution margin ratio
= $800,000 ÷ 0.40
= $2,000,000
therefore,
Margin of safety = $4,200,000 - $2,000,000
= $2,200,000
During the current calendar year, Bowman Corporation purchased $660,000 of inventory. The beginning inventory balance was $84,000, and the inventory balance at year-end was $120,000. The inventory turnover for the current year was:
Answer:
6.12 times
Explanation:
Cost of Goods Sold = $84,000 + $660,000 - $120,000
Cost of Goods Sold = $624,000
Average inventory = ($84,000 + $120,000) / 2
Average inventory = $102,000
Inventory Turnover = Cost of Goods Sold / Average inventory
Inventory Turnover = $624,000 / $102,000
Inventory Turnover = 6.117647059
Inventory Turnover = 6.12 times
Cavan Company prepared the following reconciliation between book income and taxable income for the current year ended December 31, year 1.
Pretax accounting income ...............................$1,000,000
Taxable income ...................................................(600,000)
Difference $ 400,000 Book-tax differences:
Interest on municipal income ...........................$ 100,000
Lower financial depreciation................................300,000
Total......................................................................$ 400,000
Cavan’s effective Federal and state income tax rate for year 1 is 30%. The depreciation difference will reverse equally over the next three years at enacted tax rates as follows.
Year Tax Rate Year 2 30% Year 3 25% Year 4 25%
In Cavan’s year 1 income statement, the deferred portion of its provision for income taxes should be: __________.
a. $120,000
b. $80,000
c. $100,000
d. $90,000
Answer:
b. $80,000
Explanation:
The computation of the deferred portion of its provision for income taxes should be given below:
= $300,000 ÷ 3 years
= $100,000
Now
= 30% of $100,000 + 25% of $100,000 + 25% of $100,000
= $30,000 + $25,000 + $25,000
= $80,000
Therefore the option b is correct
Asteria earned a $27,000 salary as an employee in 2020. How much should her employer have withheld from her paycheck for FICA taxes
Answer:
$2,070
Explanation:
Calculation to determine How much should her employer have withheld from her paycheck for FICA taxes
Social security tax 6.2%
Medicare tax which is 1.45%
Social security tax = $27,000 x 6.2%
Social security tax = $1,674
Medicare tax = $27,000 x 1.45%
Medicare tax =$391.5
FICA taxes Paycheck withheld= - $1,674 + $391.5
FICA taxes Paycheck withheld=$2,065.5
FICA taxes Paycheck withheld=$2,070 (Approximately)
Therefore How much should her employer have withheld from her paycheck for FICA taxes will be $2,070
True or False: With a minimum wage of $8.70, unemployment of unskilled workers is lower with the tax credit versus without it.
Answer: True
Explanation:
Generally speaking, a tax credit would bring about a lower unemployment rate for unskilled labor as opposed to a situation where there is no tax credit.
A tax credit would reduce the amount of taxes that a company is to pay which would leave them with more income to reinvest into the business. This reinvestment will lead to the business having a higher production capacity such that it requires more workers so they will hire more workers, both unskilled and skilled thereby reducing the unemployment rate for both.
The sources of economic growth are _______. A. work hours growth and labor productivity growth B. democracy and labor productivity growth C. job experience and low inflation D. work hours growth and a stable government
Answer:
A. work hours growth and labor productivity growth
Explanation:
An economy is a function of how money, means of production and resources (raw materials) are carefully used to facilitate the demands and supply of goods and services to meet the unending needs or requirements of the consumers.
Hence, a region's or country's economy is largely dependent on how resources are being allocated and utilized, how many goods and services are to be produced, what should be produced, for whom they are to be produced for and how much money are to be spent by the consumers to acquire these goods and services.
Basically, there are four (4) main types of economy and these are;
I. Mixed economy.
II. Free market economy.
III. Traditional economy.
IV. Command economy.
Generally, the sources of economic growth of a country are work hours growth and labor productivity growth.
Labor (working) is simply the human capital or workers who are saddled with the responsibility of overseeing and managing all the aspects of production.
The balance sheets of Davidson Corporation reported net fixed assets of $340,000 at the end of 2016. The fixed-asset turnover ratio for 2016 was 3.0, and sales for the year totaled $1,440,000. Net fixed assets at the end of 2015 were:_________
a) $760,000.
b) $480,000.
c) $620,000.
d) None of these answer choices are correct.
Answer:
$620,000
Explanation:
Calculation to determine what Net fixed assets at the end of 2015 were:
$1,440,000 / Average fixed assets
$1,440,000 / $480,000=3.0
Net fixed assets =[(340,000 + x) / 2] = $480,000
Solve for x
Net fixed assets= $620,000
Therefore Net fixed assets at the end of 2015 were:$620,000
Darin Company uses a perpetual inventory system. On October 1, Darin Company sold inventory in the amount of $6,500 to Dee Company, terms 2/10, n/30. The items cost Darin $4,200. On October 4, Dee returns some of the inventory. This inventory had a selling price of $500 and a cost of $200. On October 8, Dee Company paid Darin Company the amount due on that date. Use the information above to answer the following question. What journal entry will be prepared by Darin Company on October 8 to record the receipt of payment from Dee
Answer:
Debit : Cash $5,870
Credit : Accounts Receivable $5,870
Explanation:
The journal entry to be prepared by Darin Company on October 8 to record the receipt of payment from Dee consist of a Debit in Cash and Credit Accounts Receivable at the amount outstanding after deducting cash discount and returns.
Amount Outstanding
Total Accounts Receivable $6,500
Less Cash discount at 2 % ($130)
Less Returns ($500)
Outstanding amount $5,870
The independent operational test and evaluation agency is responsible for the establishment of Critical Technical Parameters (CTPs).
A. True
B. False
Answer:
B. False
Explanation:
The given statement is false as the management office regarding the program created the system to be responsible for the Criticial technical parameter establishment not the independent operational test and the evaluation agency.
So the option b is correct
Hence, the option a is wrong
Which of the following occurs when a party threatens to file a legitimate (in other words, a non-frivolous) civil lawsuit unless another party gives consent to the terms of a contract?
a. Duress
b. Undue influence
c. Durable fraud
d. Criminal influence
e. None of these choices are correct.
Answer: E. None of the above
Explanation:
Duress occurs when there's threat by a party to file a criminal lawsuit unless the terms of a contract is given consent.
Duress occurs when a party was being forced into an agreement due to the wrongful act of another party. An example of this is when a party threatens to file a frivolous civil lawsuit unless another party gives consent to the terms of the contract.
Based on the options given, the answer to this is none of the above.
A $1,000 par value bond pays interest of $35 each quarter and will mature in 10 years. If your simple annual required rate of return is 12 percent with quarterly compounding, how much should you be willing to pay for this bond
Answer:
the present value is $1,115.57
Explanation:
the computation of the present value is shown below:
Given that
Future value be $1,000
RATE is 12% ÷ 4 = 3%
NPER is 10 × 4 = 40
PMT is $35
The formula is shown below:
=-PV(RATE,NPER,PMT,FV,TYPE)
= $1,115.57
Hence, the present value is $1,115.57
On April 30, 2019, Aggie Corporation purchased Smith Corporation 10%, 5-year bonds with a face value of $12,000 at par plus four months of accrued interest. Assume that on June 30, Aggie received interest on the Smith Corporation bonds. Required: Prepare the June 30 journal entries to record the receipt
Answer:
Date Account Title Debit Credit
April 30,2019 Held to Maturity investment $12,000
Interest receivable $400
Cash $12,400
Interest receivable:
4 months of accrued interest:
= 12,000 * 4/12 * 10%
= $400
Date Account Title Debit Credit
June 30,2019 Cash $600
Interest receivable $400
Interest revenue $200
Interest revenue
2 months have passed:
= 12,000 * 2/12 * 10%
= $200
The cost object of the plantwide overhead rate method is: Multiple Choice The production departments of the company. The unit of product. The production activities of the company.
Answer: The unit of product.
Explanation:
The units produced of the goods being produced will be the appropriate cost object because it will apportion the overhead cost to the plant based on how much goods were produced by the plant itself because this would determine how much overhead the plant used.
Manufacturing overheads only occur because goods are being produced which is why the best cost object would be those same goods being produced.
The market rate of return is 11 percent and the risk-free rate of return is 3 percent. Lexant stock has 3 percent less systematic risk than the market and has an actual return of 12 percent. This stock:
Answer:
over-priced
Explanation:
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
Systemic risk are risk that are inherent in the economy. They cannot be diversified away. They are also known as market risk. examples of this risk include recession, inflation, and high interest rates. Investors should seek compensation for systemic risk. Systemic risk is measured by beta. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors
The market has a beta of one. If a portfolio has the same level of systematic risk that is the same as that of the market, its beta would be equal to 1.
If the portfolio is less risky than the market, its beta would be less than one
If the portfolio is more risky than the market, its beta would be greater than one
Lexant stock beta = (100 - 3) x 1
0.97 x 1 = 0.97
3 + 0.97(11 -3)
3 + 8.25
10.76
Below are the account balances for Cowboy Law Firm at the end of December. Accounts Balances Cash $ 3,800 Salaries expense 1,400 Accounts payable 1,800 Retained earnings 4,700 Utilities expense 1,200 Supplies 12,200 Service revenue 7,700 Common stock 4,400 Required: Use only the appropriate accounts to prepare an income statement.
Answer:
Cowboy Law Firm
Income Statement for the year ended 31 December
Service revenue $7,700
Less Expenses :
Salaries expense $1,400
Utilities expense $1,200 ($2,600)
Net Income $5,100
Explanation:
It is important to remember that the income statement accounts for Income and expense items only.
3) Monopolists set prices A) At the minimum of the long-run average total cost curve. B) Without constraints since there is no competition. C) On the marginal revenue curve. D) At the output where marginal revenue equals marginal cost.
Answer:
D At the output where marginal revenue equals marginal cost.
Explanation:
As we know that the monopolist have the market power so we can said that the prices can be set at the output level i.e. when the marginal revenue is equivalent to the marginal cost
So as per the given options, the option d is correct
And, the same should be considered and relevant
Required: Mr. Jones, eager to please the board of directors, requests you, as the newly appointed management accountant, to prepare appropriate statements highlighting the following: a) The standard production cost per Wallop (3) b) A detailed reconciliation statement of the standard gross profit with the actual gross profit for the month of May. The reconciliation statement should show all possible variances in as much detail as possible. Note: Where applicable, clearly label your answer as favourable (F), or unfavourable (U). Failure to do so will cause you to forfeit
Answer:
I don't understand what you wrote
Explanation:
please reply sir
