Answer:
$3,570
Explanation:
Particulars FMV Basis Differences
Inventory $74,000 $37,000 $37,000
Accounts receivable $54,000 $54,000 $0
Equipment $74,000 $94,000 -$20,000
Taxable gain $17,000
Tax rate = 21%
So, Built-in gains tax = Taxable gain × tax rate
= $17,000 × 21%
= $3,570
The market consensus is that Analog Electronic Corporation has an ROE of 9% and a beta of 1.70. It plans to maintain indefinitely its traditional plowback ratio of 2/3. This year's earnings were $3.6 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 15%, and T-bills currently offer a 5% return. a. Find the price at which Analog stock should sell. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
$7.95
Explanation:
The computation of the price at which the stock should sell is shown below;
But before we need to determine the following calculations
Sustainable growth rate, g is
= ROE × b
= 9% × (2 ÷3)
= 6%
Now
Cost of Equity = Rf + beta × (Rm - Rf)
= 5% + 1.70 ×(15% - 5%)
= 22%
Now finally the Price is
= D1 ÷ (r - g)
= $3.6 × 1 ÷ 3 × (1 + 6%) ÷ (22% - 6%)
= $7.95
Jane Tucker is the ethics officer for a publicly traded company. She is concerned that the company does not have a mechanism for anonymous reports of issues by employees. The CEO is not inclined to spend the money required to set up a hotline or any other reporting mechanism. Which of the following statements is true about this situation?
A) As long as the company has an ethics officer to whom employees can report concerns, it has done everything necessary to enjoy the protections under the Federal Sentencing Guidelines.
B) With Jane as an ethics officer and adding in a code of ethics, the company has met the two required prongs for the Federal Sentencing Guidelines.
C) Without an anonymous reporting system, the company does not meet the minimum requirements for the protections of the Federal Sentencing Guidelines.
D) The Federal Sentencing Guidelines protections do not apply to publicly traded companies under Dodd-Frank.
Answer: C) Without an anonymous reporting system, the company does not meet the minimum requirements for the protections of the Federal Sentencing Guidelines.
Explanation:
Based on the information given, it should be noted that since there's no anonymous reporting system, the minimum requirements for the protections of Federal Sentencing Guidelines isn't met by the company.
The Federal Sentencing Guidelines simply refers to the rules that with regards to the uniform policy through which the individuals and the organizations that have been convicted of felonies and every other misdemeanors are set up. In this case, the requirements hasn't been met since there is no anonymous reporting system.
Tara incorporates her sole proprietorship, transferring it to newly formed Black Corporation. The assets transferred have an adjusted basis of $290,000 and a fair market value of $300,000. Also transferred by Tara was $50,000 in liabilities, all related to the business. In return for these transfers, Tara receives all of the stock in Black Corporation.
a. Black Corporation has a basis of $241,000 in the property.
b. Black Corporation has a basis of $240,000 in the property.
c. Tara’s basis in the Black Corporation stock is $241,000.
d. Tara’s basis in the Black Corporation stock is $249,000.
e. None of the above.
Answer:
Black Corporation
e. None of the above.
Explanation:
a) Data and Calculations:
Adjusted basis of assets = $290,000
Fair market value of assets = $300,000
Liabilities transferred = $50,000
Black Corporation's basis = $250,000 ( $300,000 - $50,000)
Tara's basis in the Black Corporation = $240,000
b) According to U.S. Code 351, no gain or loss shall be recognized for Tara if property is transferred to Black Corporation by Tara solely in exchange for stock in Black Corporation, and immediately after the exchange, Tara comes into the control of Black Corporation.
Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the $26.10 million cost of the patent on a straight-line basis since it was acquired at the beginning of 2017. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost. The decision was made at the end of 2021 (before adjusting and closing entries.
Required:
Prepare the appropriate adjusting entry for patent amortization in 2013 to reflect the revised estimate.
Answer:
Original Cost = $26.10
Annual Amortization (Old) = $26.10 / 9 years
Annual Amortization (Old) = $2.9 million
Amortization till Date (2017 - 2021) = $2.9*4 = $11.6 million
Unamortized Value = $26.10 million - $11.6 million
Unamortized Value = $14.5 million
Remaining Life = 6 - 4
Remaining Life = 2 Years
New Amortization = Unamortized Value/Remaining Life
New Amortization = $14.5/2
New Amortization = $7.25 million
Journal Entry
Amortization Expense Debit - $7.25 million
Patent Credit - $7.25 million
Think about an organizational change that recently affected you. This could be a change at work in which jobs or procedures were changed, or it could be a change at school, such as a change in curriculum requirements or major revisions in registration procedures. How effectively did the organization manage the change? What could the organization have done differently to reduce resistance to the change? Your post should reflect the terms and concepts in Chapter 15.
Explanation:
One good example is the recent change in the way we learn at school (remote learning). For many students, it was the first time they had to receive instructions from a teacher via videoconferencing.
Many organizations tried to adjust to this new normal, however, most organizations were confused about what training to provide, how long to should they plan for, etc.
Reports say that many teachers found it difficult to adapt to this method of teaching, hence, some were resistant to this change. However, if proper enlightenment were carried out, as well as employing some motivational factors, such resistance to change would have been minimal.
The following information is available for Sweet Acacia Industries for the year ended December 31, 2022. $38,400 Beginning cash balance Accounts payable increase 9,120 Depreciation expense 65,600 Accounts receivable decrease 7,680 Inventory decrease 4,960 Net income 91,520 Cash received for sale of land at book value 166,400 Cash dividends paid 60,800 Income taxes payable decrease 6,240 129,600 Cash used to purchase land 105,600 Cash used to redeem bonds 256,000 Cash received from issuing stock
Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a -sign e.g. -15,000 or in parenthesis eg. (15,000).)
Answer:
Sweet Acacia Industries
Statement of Cash Flows
For the Year Ended December 31, 2022
Cash Flows from Operating Activities:
Net income $91520
Adjustments to reconcile net income to
Net cash provided by operating activities
Depreciation expense 65600
Decrease in Accounts Receivable 7680
Decrease in inventory 4960
Increase in accounts payable 9120
Decrease in Income tax payable -6240 $81120
Net cash provided by operating activities $172,640
Cash Flows from Investing Activities:
Sale of Land 166400
Purchase of Land -129600
Net Cash Provided by Investing Activities $36,800
Cash Flows from Financing Activities:
Payment of Dividends -60800
Issuance of Stock 256000
Redemption of Bonds -105600
Net Cash provided by Financing Activities $89,600
Net Increase in Cash $299,040
Cash at Beginning of Period $38,400
Cash at End of Period $337,440
A synchronous decrease in energy prices and an increase in government spending will result in:
A) increases in output and a decrease in the price level in the long run.
B) Increase in short run aggregate supply and in aggregate demand
C) Increase in long run aggregate supply and a rightward shift in aggregate demand
D) A leftward shift in short run aggregated supply
E) Decrease aggregate demand and increase short run aggregate supply
Answer:
B) Increase in short run aggregate supply and in aggregate demand
Explanation:
In the case when there is a rise in the government spending so it would be increases aggregate demand. As AD curve shifts to the rightward, that rise the level of the price and increase in GDP.
On the other hand, if there is a decreasing in energy prices so it decreased the production cost, which rise aggregate supply. As AS curve shifts rightward, due to this it decrease the price level and increase the GDP.
So, The net impact is a definite increase in GDP, but the impact on price level is non-certain. As price level of the short run is non-certain, so we are not able to predict long run impacts.
A synchronous decrease in energy prices and an increase in government spending will result in "increases in output and a decrease in the price level in the long run". The correct option is A.
A synchronous decrease in energy prices reduces production costs for businesses which is leading to an increase in short-run aggregate supply.
At the same time, an increase in government spending stimulates economic activity and boosts aggregate demand. As a result, both short-run aggregate supply and aggregate demand increase.
In the short run, this combination of factors can lead to an expansion in output and potentially a decrease in the price level due to the downward pressure on production costs.
Therefore, the correct option is A.
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1. Prepare general journal entries for the transactions.
Mitchell Parts Co. had the following plant asset transactions during the year:
1. Assets discarded or sold:
Jan. 1 Motor #12, which had a cost of $2,890 and accumulated depreciation of
$2,890, was discarded.
8 Motor #8, which had a cost of $4,440 and accumulated depreciation of
$4,020, was sold for $260.
14 Motor #16, which had a cost of $5,730 and accumulated depreciation of
$5,490, was sold for $470.
2. Assets exchanged or traded in:
Feb. 1 Motor #6, which had a cost of $5,860 and accumulated depreciation of
$4,590, was traded in for a new motor (#22) with a fair market value of
$6,800. The old motor and $5,300 in cash were given for the new motor.
9 Motor #9, which had a cost of $5,420 and accumulated depreciation of
$4,940, was traded in for a new motor (#23) with a fair market value of
$6,450. The old motor and $6,170 in cash were given for the new motor.
Answer:
1. Accumulated Depreciation (Dr.) $2,890
Motor #12 (Cr.) $2,890
2. Cash (Dr.) $260
Accumulated Depreciation (Dr.) $4,020
Loss on Sale (Dr.) $160
Motor #8 (Cr.) $4,440
3. Cash (Dr.) $470
Accumulated Depreciation (Dr.) $5,490
Gain on Sale (Cr.) $230
Motor #16 (Cr.) $5,730
Explanation:
1. New Motor #22 (Dr.) $6,800
Accumulated Depreciation (Dr.) $4,590
Gain on Sale (Cr.) $230
Motor #6 (Cr.) $5,860
Cash (Cr.) $5,300
2. New Motor #23 (Dr.) $6,450
Accumulated Depreciation (Dr.) $4,940
Loss on Sale (Dr.) $200
Motor #9 (Cr.) $5,420
Cash (Cr.) $6,170
Jasmine Corporation purchased inventory costing $125,000 and sold 75% of the goods for $163,750. All purchases and sales were on account. Jasmine later collected 25% of the accounts receivable. Assume that sales returns are nonexistent.
1. Journalize these transactions for Jasmine, which uses the perpetual inventory system.
2. For these transactions, show what Jasmine will report for inventory, revenues, and expenses on its financial statement at the end of the month. Report gross profit on the appropriate statement. Assume beginning inventory is $0.
Answer:
Part 1
Purchase journal
Debit : Merchandise Inventory $125,000
Credit : Accounts Payable $125,000
Sales journal
Debit : Accounts Receivable $163,750
Debit : Cost of Sales ($125,000 x 75%) $93,750
Credit : Sales Revenue $163,750
Credit : Inventory $93,750
Collection of Payments journal
Debit : Cash ($163,750 x 25%) $40,938
Credit : Accounts Receivable $40,938
Part 2
Inventory = $31,250
revenues = $163,750
expenses = $93,750
gross profit = $70,000
Explanation:
inventory = Purchases - Cost of sales
= $125,000 - $93,750
= $31,250
revenues = Sales to Customers paid up or not
= $163,750
expenses = Cost of sales
= $93,750
gross profit = Sales - Cost of sales
= $163,750 - $93,750
= $70,000
Finerly Corporation sells cosmetics through a network of independent distributors. Finerly shipped cosmetics to its distributors and is considering whether it should record $220,000 of revenue upon shipment of a new line of cosmetics. Finerly expects the distributors to be able to sell the cosmetics, but is uncertain because it has little experience with selling cosmetics of this type. Finerly is committed to accepting the cosmetics back from the distributors if the cosmetics are not sold. How much revenue should Finerly recognize upon delivery to its distributors
Answer:
The amount of revenue Finerly should recognize upon delivery to its distributors is $0.
Explanation:
From the question, the following two very important points can be observed:
1. Finerly expects the distributors to be able to sell the cosmetics, but is uncertain because it has little experience with selling cosmetics of this type.
2. Finerly is committed to accepting the cosmetics back from the distributors if the cosmetics are not sold.
Since there is an uncertainty that the the distributors will be able to sell the cosmetics and Finerly is committed to accepting them back from the distributors if they are not sold, these imply that the amount of sales revenue cannot be known or reasonably estimated until when the distributors actually sell the cosmetics.
Therefore, the amount of revenue Finerly should recognize upon delivery to its distributors is $0.
The Jenkins Corporation has purchased an executive jet. The company has agreed to pay $200,000 per year for the next 10 years and an additional $1,000,000 at the end of the 10th year. The seller of the jet is charging 6% annual interest. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) Determine the liability that would be recorded by Jenkins.'
Answer:
Present value of liability = $2,030,412.1871 rounded off to $2,030,412.19
Explanation:
To calculate the amount that would be recorded as a liability, we need to find the present value of the jet. The present value can be calculated by discounting the cash flows provided in the question. The 200000 cash flows that will be payable every year are in the form of an ordinary annuity and their present value will be calculated using the attached formula. The present value of 1000000 that is payable at the end of the 10th year will be calculated as follows,
Present Value of Cash flow = Cash Flow / (1+r)^t
Where,
r is the discount rate t is the time periodPresent value of liability = 200000 * [(1 - (1+0.06)^-10) / 0.06] +
1000000 / (1+0.06)^10
Present value of liability = $2,030,412.1871 rounded off to $2,030,412.19
Free Flight Corporation, located in Denver, Colorado, produces bicycle accessories, including bicycle helmets which requires a rigid, crushable foam. During the quarter ending June 30, the company manufactured 3,800 helmets, using 2,736 kilograms of foam. The foam cost the company $18,058. According to the standard cost card, each helmet should require 0.66 kilograms of foam, at a cost of $7.00 per kilogram.
Required:
1. What is the standard quantity of kilograms of foam (SQ) that is allowed to make 3,800 helmets?
2. What is the standard materials cost allowed (SQ * SP) to make 3,800 helmets?
3. What is the materials spending variance?
4. What is the materials price variance and the materials quantity variance?
(For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.)
1. Standard quantity of kilograms allowed
2. Standard cost allowed for actual output
3. Materials spending variance
4. Materials price variance
Materials quantity variance
Answer:
1. Standard quantity of kilograms allowed 2508kg
2. Standard cost allowed for actual output $17,556
3. Materials spending variance $502 Unfavorable
4. Materials price variance $1094Favorable
Materials quantity variance $1596 unfavorable
Explanation:
1. Calculation to determine the standard quantity of kilograms of foam
Standard quantity of kilograms allowed = 0.66*3800
Standard quantity of kilograms allowed =2508kg
2. Calculation to determine the standard materials cost allowed
Standard cost allowed for actual output = 2508kg *7
Standard cost allowed for actual output=$17,556
3. Calculation to determine the materials spending variance using this formula
Material spending variance = Standard cost - Actual cost
Let plug in the formula
Material spending variance= $17,556- $18,058
Material spending variance= $502 Unfavorable
4. Calculation to determine the materials price variance and the materials quantity variance
Material price variance = (7- $18,058/2,736)*2,736
Material price variance = $1094Favorable
Material quantity variance =(2508kg-2,736)*7
Material quantity variance= $1596 unfavorable
Therefore:
1. Standard quantity of kilograms allowed 2508kg
2. Standard cost allowed for actual output $17,556
3. Materials spending variance $502 Unfavorable
4. Materials price variance $1094Favorable
Materials quantity variance $1596 unfavorable
Vaughn Manufacturing purchased land as a factory site for $1345000. Vaughn paid $116000 to tear down two buildings on the land. Salvage was sold for $8100. Legal fees of $5500 were paid for title investigation and making the purchase. Architect's fees were $46900. Title insurance cost $3900, and liability insurance during construction cost $4200. Excavation cost $15860. The contractor was paid $4300000. An assessment made by the city for pavement was $9500. Interest costs during construction were $260000.
1. The cost of the land that should be recorded by Wilson Co. is:_____.
a. $989,880.
b. $980,480.
c $996,280.
d. $986,880.
2. The cost of the building should be recorded by Wilson Co. is:_____.
a. 2,804,840.
b. 2,813,200.
c. 2,803,800.
d. 3,014,240.
Answer:
Cost of Land = $1,471,800
Cost of Building = $4,626,960
Explanation:
Note: "The options attached to the question are incorrect because its belongs to another question entirely and this can be seen as attached as picture below"
1. Cost of Land = Purchase Value + Cost Incurred to Tear Down two Buildings - Salvage + Legal Fees + Title Insurance Cost + Assessment Cost
Cost of Land = $1345000 + $116000 - $8100 + $5500 + $3900 + $9500
Cost of Land = $1,471,800
2. Cost of Building = Architect's Fees + Liability Insurance Cost + Excavation Cost + Contractor's Payment + Interest Cost
Cost of Building = $46900 + $4200 + $15860 + $4300000 + 260000
Cost of Building = $4,626,960
The market consensus is that Analog Electronic Corporation has an ROE of 9% and a beta of 1.65. It plans to maintain indefinitely its traditional plowback ratio of 2/3. This year's earnings were $2.8 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 14%, and T-bills currently offer a 6% return. a. Find the price at which Analog stock should sell. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Calculate the P/E ratio.
Answer:
a.
P0 = $7.49494949492 rounded off to $7.49
b.
P/E ratio = 2.67676767676 times rounded off to 2.68 times
Explanation:
a.
The constant growth model of dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under constant growth DDM is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 * (1+g) is the dividend expected in Year 1 or next year g is the constant growth rate in dividends r is the discount rate or required rate of returnWe first need to calculate the values for D0, g and r.
D0 can be calculate by multiplying the earnings per share by (1 - Plowback Ratio)
D0 = 2.8 * (1 - 2/3)
D0 = $0.93333333333 rounded off to $0.93
To calculate the value of g, we need to multiply the ROE by the Plowback ratio.
g = 0.09 * 2/3
g = 0.06 or 6%
To calculate the value of r, we will use the CAPM equation.
r = risk free rate + Beta * (Market return - risk free rate)
r = 0.06 + 1.65 * (0.14 - 0.06)
r = 0.192 or 19.2%
P0 = 0.93333333333 * (1+0.06) / (0.192 - 0.06)
P0 = $7.49494949492 rounded off to $7.49
b.
The P/E ratio can be calculated by dividing the price per share by the earnings per share.
P/E = 7.49494949492 / 2.8
P/E ratio = 2.67676767676 times rounded off to 2.68
Novak Corp. has 6000 shares of 5%, $100 par value, cumulative preferred stock and 12000 shares of $1 par value common stock outstanding at December 31, 2020. There were no dividends declared in 2018. The board of directors declares and pays a $55800 dividend in 2019 and in 2020. What is the amount of dividends received by the common stockholders in 2020
Answer:
See below
Explanation:
Given the above data,
Preferred shares = 6,000 shares × $100 = $600,000
Dividend on preference shares = $600,000 × 5% = $30,000 per year
Dividend declared in 2019
= $55,800
Preferred dividend in 2019 = $30,000 × 2 = $60,000
Dividend declared in 2020 =$55,800
Preferred dividend declared in 2020 = $30,000 + $4,200 = $34,200
Dividend paid to common stock holders = $55,800 - $34,200 = $21,600
MedTech Corp. stock was $55.25 per share at the end of last year. Since then, it paid a $0.45 per share dividend. The stock price is currently $62.50. If you owned 500 shares of MedTech, what was your percent return
Answer:
Percentage Return = 0.13936651584 or 13.936651584% rounded off to 13.94%
Explanation:
To calculate the return percentage, we need to take the total return provided by the share in form of both dividends and capital gains. The total yield or return for the holding period can be calculated as follows,
Percentage Return = [Dividend + P1 - P0] / P0
Where,
P1 is price todayP0 is the purchase pricePercentage Return = [0.45 + 62.50 - 55.25] / 55.25
Percentage Return = 0.13936651584 or 13.936651584% rounded off to 13.94%
The trial balance of G. Durler Company at the end of its fiscal year, August 31, 2008, includes these account: Merchandise Inventory $17,200; Purchases $149,000; Sales $190,000; Freight-in $4,000; Sales Returns and Allowances $3,000; Freight-out $1,000; and Purchases Returns and Allowances $2,000. The ending merchandise inventory is $25,000.
Prepare a cost of goods sold section for the year ending August 31 (periodic inventory).
Answer and Explanation:
The preparation of the cost of goods sold section for the year ended is as follows;
Cost of goods sold section
G. Durler Company
For the year ending August 31
Beginning inventory $17,200
Add: Purchases $149,000
less purchase returns and Allowances $2,000
Net purchases $147,000
Add: Freight-in $4,000
less ending inventory is -$25,000
Cost of goods sold $143,200
The cost of goods sold section for the year ending August 31 (periodic inventory) is $143,200.
G. Durler Company Cost of goods sold section for the year ending August 31
Beginning inventory $17,200
Add Purchases $149,000
Less purchase returns and Allowances ($2,000)
Net purchases $147,000
($149,000-$2,000)
Add Freight-in $4,000
Less Ending inventory ($25,000)
Cost of goods sold $143,200
($17,200+$147,000+$4,000-$25,000)
Inconclusion the cost of goods sold section for the year ending August 31 (periodic inventory) is $143,200.
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For each of the following scenarios, determine whether the situation described can be attributed to the real-balances effect, the interest-rate effect, or the foreign-purchases effect.
a. As a result of an increase in the price level, the cost of borrowing increases, which causes people to buy fewer cars.
1. Real-balances effect
2. Foreign-purchases effect
3. Interest-rate effect
b. When the price level decreases, restaurants become busier as more people purchase restaurant meals.
1. Real-balances effect
2. Foreign-purchases effect
3. Interest-rate effect
Answer:
A)Interest-rate effect
B)Real-balances effect
Explanation:
✓The interest rate effect can be regarded as change in borrowing as well as spending behaviors as a consequence or result of adjustment of interest rate. As a general rule, interest are been set by central bank of the nation, then consumer banks will then extend similar interest rates across their customers. For instance
As a result of an increase in the price level, the cost of borrowing increases, which causes people to buy fewer cars.
✓ In economics, real balance effect can be regarded as "Pigou effect" which can be regarded as stimulation of output as well as employment which is been caused as a result of increased consumption through a rise in real balances of wealth, especially during time of deflation. Instance of this is
When the price level decreases, restaurants become busier as more people purchase restaurant meals.
A firm has current assets that could be sold for their book value of $22 million. The book value of its fixed assets is $60 million, but they could be sold for $90 million today. The firm has total debt with a book value of $40 million, but interest rate declines have caused the market value of the debt to increase to $50 million. What is this firm's market-to-book ratio
Answer:
the firm market to book ratio is 1.48
Explanation:
The computation of the market to book ratio is shown below:
The Market values is
= $22 million + $90 million - $50 million
= $ 62 million
And, the Book values is
= $22 million + $60 million - $40 million
= $42 million
Now the firm market to book ratio is
= $62 million ÷ $42 million
= 1.48
Hence, the firm market to book ratio is 1.48
Sunland Company uses the FIFO method for internal reporting purposes and LIFO for external reporting purposes. The balance in the LIFO Reserve account at the end of 2020 was $277000. The balance in the same account at the end of 2021 is $419000. Sunland’s Cost of Goods Sold account has a balance of $2110000 from sales transactions recorded during the year. What amount should Sunland report as Cost of Goods Sold in the 2021 income statement?
Answer:
$2,252,000
Explanation:
Calculation to determine what amount should Sunland report as Cost of Goods Sold in the 2021 income statement
Using this formula
2021 income statement Cost of Goods Sold =Cost of Goods Sold account+(2021 LIFO Reserve account ending balance-2020 LIFO Reserve account ending balance)
Let Plug in the formula
2021 income statement Cost of Goods Sold =$2110000+($419000-$277000)
2021 income statement Cost of Goods Sold =$2110000+$142,000
2021 income statement Cost of Goods Sold =$2,252,000
Therefore The amount that Sunland should report as Cost of Goods Sold in the 2021 income statement is $2,252,000
Marston Manufacturing Company is considering a project that requires an investment in new equipment of $3,600,000, with an additional $180,000 in shipping and installation costs. Marston estimates that its accounts reveivable and inventories need to increase by $720,000 to support the new project, some of which is financed by $288,000 increase in spontaneous liabilites (accounts payable and accruals).
The total cost of Martson's new equipment is ___________
a. $3,780,000
b. $4,212,000
c. $720,000
Answer:
a. $3,780,000
Explanation:
According to the scenario, calculation of the given data are as follows
New equipment = $3,600,000
Shipping and installation = $180,000
We can calculate the total cost of Martson's new equipment by using following formula,
Total Cost = New equipment cost + Shipping and Installation cost
By putting the value, we get
Total Cost = $3,600,000 + $180,000
= $3,780,000
Q4) The price of a luxury car increased from 42.000 euros to 44.000 euros. Then the demand for
this car declined from 100 units to 20 units. Calculate the price elasticity of demand for the car.
Answer:
Price elasticity of demand = 28.67 (Approx.)
Explanation:
Given:
Old price of car = 42.000 euros
New price of car = 44.000 euros
Quantity of car old = 100 units
Quantity of car new = 20 units
Find:
Price elasticity of car
Computation:
Price elasticity of demand = (Percentage change in quantity)/(Percentage change in price)
Price elasticity of demand = [{(Q2-Q1)100}/{(Q1+Q2)/2}] / [{(P2-P1)100}/{(P1+P2)/2}]
Price elasticity of demand = [{(20-100)100}/{(20+100)/2}] / [{(44000-42000)100}/{(44000+42000)/2}]
Price elasticity of demand = [{-8000}/{60}] / [{200000}/{(43000}]
Price elasticity of demand = 133.33 / 4.65
Price elasticity of demand = 28.67 (Approx.)
Policy is designed to shift the aggregate B) curve by the federal government changing its C) and D) policies. An E) fiscal policy would attempt to speed up the economy by shifting this curve to the F) . This would be accomplished by the government spending G) than it took received in taxes. Such a policy would result in a budgetary H) . Such a policy would be employed to get the economy out of a I) and fight the undesirable economic phenomenon of J).
Answer:
There are no options included so I will give the answers as beat I can based on economic knowledge.
FISCAL policy is designed to shift the aggregate DEMAND curve by the federal government changing its SPENDING and TAXATION policies.
The government can influence the economy through fiscal policy. It does this by changing its taxation and spending policies to either increase economic growth or reduce overheating.
An EXPANSIONARY fiscal policy would attempt to speed up the economy by shifting this curve to the RIGHT. This would be accomplished by the government spending MORE than it took received in taxes. Such a policy would result in a budgetary DEFICIT .
With an expansionary policy, the government would increase it's spending such that it would be more than the taxation imposed. With the government spending more than they brought it from taxes, a budget deficit will result.
Such a policy would be employed to get the economy out of a RECESSION and fight the undesirable economic phenomenon of UNEMPLOYMENT.
When the economy is going through a recession, the economy will be facing a decline so in order to renew growth, the government would spend more to bring it out of a decline and therefore prevent or reduce unemployment.
Waterways has a sales mix of sprinklers, valves, and controllers as follows.
Annual expected sales:
Sale of sprinklers 460,000 units at $26.50
Sale of valves 1,480,000 units at $11.20
Sale of controllers 60,000 units at $42.50
Variable manufacturing cost per unit
Sprinklers $13.96
Valves $7.95
Controllers $29.75
Fixed manufacturing overhead cost (total) $760,000
Variable selling and administrative expenses per unit:
Sprinklers $1.30
Valves $0.50
Controllers $3.41
Fixed selling and administrative expenses (total) $1,600,000
A) Determine the sales mix based on unit sales for each product.
B) Using the annual expected sales for these products, determine the weighted-average unit contribution margin for these three products.
C) Assuming the sales mix remains the same, what is the break-even point in units for these products?
Answer:
A.
Sales Mix is 23 : 74 : 3
B.
$567.17
C.
sprinklers = 95,726 units
valves = 303,826 units
controllers = 12,486 units
Explanation:
the sales mix based on unit sales for each product
sprinklers = 460,000 units
valves = 1,480,000 units
controllers = 60,000 units
this can then be expressed as :
460,000 : 1,480,000 : 60,000
expressed in lowest terms as :
23 : 74 : 3
the weighted-average unit contribution margin for these three products.
weighted-average unit contribution margin is the sum of contribution per units with the mix applied to each contribution margin.
unit contribution margin are
sprinklers = $12.54
valves = $3.25
controllers = $12.75
weighted-average unit contribution margin = $12.54 x 23 + $3.25 x 74 + $12.75 x 3 = $567.17
the break-even point in units for these products
break-even point in units = Fixed Cost ÷ Contribution per unit
= ($760,000 + $1,600,000) ÷ $567.17
= 4,162 units
Multiplying this with each mix we have :
sprinklers = 95,726 units
valves = 303,826 units
controllers = 12,486 units
In its most recent annual report, Appalachian Beverages reported current assets of $54,000 and a current ratio of 1.80. Assume that the following transactions were completed: (1) purchased merchandise for $6,000 on account, and (2) purchased a delivery truck for $10,000, paying $1,000 cash and signing a two-year promissory note for the balance.
Compute the updated current ratio (round answers to 2 decimal places)
Transaction (1) ________________
Transaction (2) ________________
Answer:
Current Ratio - Transaction 1 = 1.6666 rounded off to 1.67
Current Ratio - Transaction 2 = 1.6388 rounded off to 1.64
Explanation:
The current ratio is a measure of liquidity which measures the amount of current assets a business has to pay off each $1 of current liability. It is calculated as follows,
Current Ratio = Current Assets / Current Liabilities
We know the initial current ratio and current assets. The initial current liabilities will be,
1.8 = 54000 / Current Liabilities
Current Liabilities = 54000 / 1.8
Current Liabilities = $30000
Transaction 1
The result of transaction 1 will be that the current assets will increase by $6000 as inventory increases and the current liabilities will also increase by $6000 as accounts payable are increasing. The new current ratio will be,
Current Ratio - Transaction 1 = (54000 + 6000) / (30000 + 6000)
Current Ratio - Transaction 1 = 1.6666 rounded off to 1.67
Transaction 2
The result of transaction 2 will be that the current assets will decrease by $1000 as payment for truck which is a fixed asset is made partly by cash and the current liabilities will not increase as the note signed for the remaining payment of the truck is due after 2 years thus it is a non current liability. The new current ratio will be,
Current Ratio - Transaction 2 = (54000 + 6000 -1000) / (30000 + 6000)
Current Ratio - Transaction 2 = 1.6388 rounded off to 1.64
Pankraz Corporation, a calendar year taxpayer, is formed on April 1, 2020. In connection with its formation, it incurs organizational expenditures of $54,000. Pankraz wants to claim as much of these expenses as soon as possible. Round per month amount to two decimal places. Round your final answer to the nearest dollar. Therefore, its deduction for 2020 is $fill in the blank 1
Answer:
$3,650
Explanation:
Calculation to determine its deduction i
First step is to calculate the Expense
Expense=$5,000 - ($54,000 - $50,000)
Expense=$5,000-$4,000
Expense= $1,000
Second step is to calculate the Amortization
Amortization= ($54,000 - $1,000)/180 months
Amortization= $294.44 x 9 months
Amortization= $2,649.99
Amortization= $2,650 (Approximately)
Now let calculate the total deduction
Total deduction =$1,000 + $2,650
Total deduction= $3,650
Therefore, its deduction for 2020 is $3,650
Andy derives utility from two goods, potato chips (Qp) and Cola (Qc). Andy receives zero utility unless he consumes some of at least one good. The marginal utility that he receives from the two goods is given as follows:
Qp MUp Qc MUc
1 12 1 24
2 10 2 22
3 8 3 20
4 6 4 18
5 4 5 16
6 2 6 14
7 -2 7 12
8 4 8 10
Refer to Scenario, what is the total utility that Andy will receive if he consumes 5 units of potato chips (Qp) and no Cola drink (Qc)?
Answer:
TU = 40
Explanation:
Total utility is the sum of marginal utility obtained by consuming different units of the good. So at 5 units of potato chips (Qp) and 0 units of Cola drink (Qc) , we can find total utility by adding marginal utility till 5th unit of Qp.
[tex]Total utility = 12 + 10 + 8 + 6 + 4 \\ = 40[/tex]
Thus, total utility from 5 units of potato chips and no cola is 40 utils.
The total utility that Andy will receive if he consumes 5 units of potato chips (Qp) and no Cola drink (Qc) is 40.
The calculation is as follows:= 12 + 10 + 8 + 6 + 4
= 40 utils
Therefore we can conclude that The total utility that Andy will receive if he consumes 5 units of potato chips (Qp) and no Cola drink (Qc) is 40.
Learn more: brainly.com/question/16911495
A subsidiary of Porter Inc., a U.S. company, is located in France. The functional currency of this subsidiary is the dollar. The subsidiary acquired inventory on credit on November 1, 2020, for 200,000 Euro. The inventory was sold on January 17, 2021 for E250,000. The subsidiary paid for the inventory on January 31, 2021. Currency exchange rates between the dollar and the Euro were as follows:
November 1, 2019 E1=1.32
December 31, 2019 E1=1.30
January 17, 2020 E1= 1.21
October 1, 2018 E1=1.35
December 31, 2018 E1=1.15
The inventory balance for this inventory in Porter's consolidated balance sheet at December 31, 2019 was _________
Answer:
$0
Explanation:
According to the scenario, computation of the given data are as follows,
Date of acquire = November 1,2020
Inventory sold on date = January 17,2021
Payment for inventory = January 31,2021
So, inventory balance for the given inventory in Porter's consolidated balance sheet on December 31,2019 was $0, because there was no transaction done on or before December 31,2019.
Why should you be able to create, share, and maintain documents?
Answer:
it helps the business run smoother
Explanation:
The standard cost of direct labor per unit is calculated by:_______
A. multiplying the standard quantity of direct labor by the standard price of direct labor.
B. multiplying the actual quantity of direct labor by the standard price of direct labor.
C. dividing the standard quantity of direct labor by the standard price of direct labor.
D. adding the standard quantity of direct labor to the standard price of direct labor.
Answer:
A. multiplying the standard quantity of direct labor by the standard price of direct labor.
Explanation:
Standard cost of direct labor = Standard quantity*Standard price. Standard cost of direct labor per hour are calculated and compared with the Actual cost of direct labor per hour and multiplied by Actual hours used to calculate direct labor rate variance.
So, option A (multiplying the standard quantity of direct labor by the standard price of direct labor) is correct.