Answer:
8.78
Explanation:
The computation of the cash cycle is given below;
We know that
Cash cycle = Inventory conversion period + Receivables conversion period - Payables conversion period.
Here
1. Inventory conversion period = Avg. Inventory ÷ (COGS ÷365)
= (11,000) ÷ (395000 ÷ 365)
= 10.16
2. Receivables conversion period = Avg. Accounts Receivable ÷ (Credit Sales × 365)
= (27000/520000) × 365
= 18.95
3. Payables conversion period = Avg. Accounts Payable ÷ (Purchases × 365)
= (22000 ÷ 395000) × 365
= 20.33
Now the cash cycle is
= 10.16 + 18.95 - 20.33
= 8.78
The "liability of foreignness" is the: a. political disadvantage that U.S. firms have when doing business abroad. b. inability of most U.S. managers to truly comprehend foreign cultures. c. preference for "buying local," which always puts foreign firms at a disadvantage when competing in the U.S. market. d. risk of participating outside a firm's domestic markets in the global economy.
Answer:
d. risk of participating outside a firm's domestic markets in the global economy.
Explanation:
Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time.
Globalization can be defined as the strategic process which involves the integration of various markets across the world to form a large global marketplace. Basically, globalization makes it possible for various organizations to produce goods and services that is used by consumers across the world.
The "liability of foreignness" is the risk of participating outside a firm's domestic markets in the global economy. It comprises of the costs that a business firm operating outside its home country incurs as compared with local firms operating in the same country.
Southern Alliance Company needs to raise $120 million to start a new project and will raise the money by selling new bonds. The company will generate no internal equity for the foreseeable future. The company has a target capital structure of 55 percent common stock, 15 percent preferred stock, and 30 percent debt. Flotation costs for issuing new common stock are 8 percent, for new preferred stock, 5 percent, and for new debt, 3 percent.
What is the true initial cost figure the company should use when evaluating its project? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e.g., 1,234,567.)
Answer:
$127,727,515
Explanation:
Calculation to determine the true initial cost figure Southern should use when evaluating its project
First step is to find the weighted average flotation cost.
Weighted average flotation cost= .55(.08) + .15(.05) + .30(.03)
Weighted average flotation cost= .044+.0075+.009
Weighted average flotation cost= .0605*100
Weighted average flotation cost=6.05%
Now let determine the true initial cost figure
True initial cost figure=(1 – .0605) = $120,000,000
True initial cost figure = $120,000,000 / (1 – .0605)
True initial cost figure = $120,000,000 / .9395
= $127,727,515
Therefore the true initial cost figure Southern should use when evaluating its project is $127,727,515
If the demand for labor falls from D to D' and wages are sticky on the downward side, there will be unemployment of ________ million. a. 75 b. 100 c. 25 d. None of the above
Answer:
There will be unemployment of 100 million. The correct option is b. 100.
Explanation:
Note: This question is not complete because the graph is not attached. The graph is therefore provided before answering the question. See the attached photo for the graph.
From the attached graph, we have:
Equilibrium units of labor at D = 300 million
Equilibrium units of labor at D’ = 200 million
Employment If the demand for labor falls from D to D' = Equilibrium units of labor at D’ - Equilibrium units of labor at D = 300 million - 200 million = 100 million
Therefore, there will be unemployment of 100 million. The correct option is b. 100.
Burget Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,100 client-visits, but its actual level of activity was 2,110 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for July:
Data used in budgeting:
Fixed element per month Variable element per client-visit
Revenue - $47.10
Personnel expenses $22,700 $16.90
Medical supplies 1,600 6.50
Occupancy expenses 6,900 1.50
Administrative expenses 3,400 0.40
Total expenses $34,600 $25.30
Actual results for July:
Revenue $101,491
Personnel expenses 55,699
Medical supplies 15,895
Occupancy expenses 9,785
Administrative expenses 4,424
The revenue variance for July would be closest to: __________
a. $2,581 F
b. $2,110 U
c. $2,110 F
d. $2,581 U
Answer:
Burget Clinic
The revenue variance for July would be closest to: __________
a. $2,581 F
Explanation:
a) Data and Calculations:
Budgeted client-visits for July = 2,100
Actual client-visits for July = 2,110
Fixed element Variable element
per month per client-visit
Revenue - $47.10
Personnel expenses $22,700 $16.90
Medical supplies 1,600 6.50
Occupancy expenses 6,900 1.50
Administrative expenses 3,400 0.40
Total expenses $34,600 $25.30
Actual results for July:
Revenue $101,491
Personnel expenses 55,699
Medical supplies 15,895
Occupancy expenses 9,785
Administrative expenses 4,424
Budgeted Revenue = $98,910 ($47.10 * 2,100)
Which options are available when exporting a table definition and data? Check all that apply
Answer: 1. appending data to an existing table
4. creating a new table and inserting data
Explanation:
Kenseth Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets.
Projected Benefit Obligation Plan Assets Value
2019 $2,000,000 $1,900,000
2020 2,400,000 2,500,000
2021 2,950,000 2,600,000
2022 3,600,000 3,000,000
The average remaining service life per employee in 2019 and 2020 is 10 years and in 2021 and 2022 is 12 years. The net gain or loss that occurred during each year is as follows: 2019, $280,000 loss; 2020, $90,000 loss; 2021, $11,000 loss; and 2022, $25,000 gain.
Using the corridor approach, compute the amount of net gain or loss amortized and charged to pension expense in each of the four years, setting up an appropriate schedule.
Answer:
10%Corridor
2011 $0
2012 $250,000
2013 $295,000
2014 $360,000
Accumulated
2011 $0
2012 $280,000
2013 $367,000
2014 $372,000
Minimum Amortization of Loss
2011 $0
2012 $3,000
2013 $6,000
2014 $1,000
Explanation:
Calculation to determine the net gain or loss amortized and charged to pension expense under the corridor approach
Year, Projected Benefit Obligation (a) , Plan Assets, 10%Corridor, Accumulated d OCI (G/L) (a), Minimum Amortization of Loss
2011 $2,000,000 $1,900,000 $200,000 $ 0 $0
2012 $2,400,000 $2,500,000 $250,000 $280,000 $3,000(b)
2013 $2,950,000 $2,600,000 $295,000 $367,000(c) $6,000(d)
2014 $3,600,000 $3,000,000 $360,000 372,000(e) $1,000(f)
Calculation for 10%Corridor
2011 $0
2012 10%*$2,500,000 =$250,000
2013 10%*$2,950,000 =$295,000
2014 10%*$3,600,000 =$360,000
Calculation for Accumulated Depreciation and Minimum Amortization of Loss
a. As at the beginning of the year
b. ($280,000 – $250,000) ÷ 10 years = $3,000
c. $280,000 – $3,000 + $90,000 = $367,000
d. ($367,000 – $295,000) ÷ 12 years = $6,000
e. $367,000 – $6,000 + $11,000 = $372,000
f ($372,000 – $360,000) ÷ 12 years = $1,000
Therefore the net gain or loss amortized and charged to pension expense under the corridor approach are :
10%Corridor
2011 $0
2012 $250,000
2013 $295,000
2014 $360,000
Accumulated Depreciation
2011 $0
2012 $280,000
2013 $367,000
2014 $372,000
Minimum Amortization of Loss
2011 $0
2012 $3,000
2013 $6,000
2014 $1,000
Under its executive stock option plan, W Corporation granted options on January 1, 2018, that permit executives to purchase 15 million of the company's $1 par common shares within the next eight years, but not before December 31, 2020 (the vesting date). The exercise price is the market price of the shares on the date of grant, $18 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. No forfeitures are anticipated. The options are exercised on April 2, 2021, when the market price is $21 per share. By what amount will W's shareholder's equity be increased when the options are exercised? Group of answer choices $315 million. $60 million. $270 million. $330 million.
Answer:
$315 million
Explanation:
Calculation to determine what amount will W's shareholder's equity be increased when the options are exercised
(millions)
Cash $270
($18 exercise price x 15 million shares)
Paid-in capital – stock options (account balance)$60
(4*$15million shares)
Less Common stock $15
(15 million shares at $1 par per share)
Paid-in capital—excess of par (remainder)$315
Therefore The amount that W's shareholder's equity will be increased when the options are exercised is $315 million
What is e- marketing
Answer:
marketing online pretty much
On January 15, 2020, Vern purchased the rights to a mineral interest for $3,500,000. At that time, it was estimated that the recoverable units would be 500,000. During the year, 40,000 units were mined and 25,000 units were sold for $800,000. Vern incurred expenses during 2020 of $500,000. The percentage depletion rate is 22%. Determine Vern's depletion deduction for 202
Answer: $175,000
Explanation:
Vern's depletion deduction for 2020 will be calculated thus:
= (Cost - Salvage value) / (Estimated Number of units × Number of units extracted
= 3500000/500000 × 25000
= 7 × 25000
= $175000
Therefore, Vern's depletion deduction for 2020 is $175000
DS Unlimited has the following transactions during August.
August 6 Purchases 54 handheld game devices on account from GameGirl, Inc., for $120 each, terms 1/10, n/60.
August 7 Pays $320 to Sure Shipping for freight charges associated with the August 6 purchase.
August 10 Returns to GamerGirl four game devices that were defective.
August 14 Pays the full amount due to GameGirl.
August 23 Sells 34 game devices purchased on August 6 for $140 each to customers on account. The total cost of the 34 game devices sold is $4,257.00. 2.
Required:
Record the period-end adjustment to cost of goods sold on August 31, assuming the company has no beginning inventory and ending inventory has a cost of $2,003.
Answer:
August 6
Debit: Inventory: (54 * $120) = $6480.00
Credit: Accounts Payable: $6,480.00
August 7 - shipping
Debit: Inventory $320.00
Credit: Cash $320.00
August 10
Debit: Accounts Payable :(4 * $120) = $480.00
Credit: Inventory $480.00
August 14
Debit: Accounts Payable : $(6480 - 480) = $6000.00
Credit: Inventory $60.00
Cash : $(6000 - 60) = $5940.00
(August 14th Inventory: $6000 × 1% = $60)
August 23
Debit: Accounts Receivable ($140*34) = $4760
Credit: sales Revenue $4760
August 23
Debit: Cost of Goods Sold $4,257.00
Credit: Inventory $4,257.00
Explanation:
INVENTORY:
Gary Wheeler says that in a nonunion environment, workers who have problems with the company can potentially use alternative dispute resolution processes. A union environment has a similar process called ________, where workers can protest organization actions that they think violate the collective bargaining agreement.
Answer:
the grievance procedure
Explanation:
Here are the options
picketing
fact finding
the corporate campaign
the grievance procedure
decertification
the grievance procedure is the formal way by which an employee can make a grievance or complaint known to their employers. It is a means of internal grievance resolution.
Steps to grievance procedure
the employee submits their complaint to their supervisorthe supervisor and the union representative review the case to determine if it is valid or not. if it is not valid, the grievance is discarded if it is valid, the grievance is resolvedIf the employee is not satisfied with the way the grievance is resolved, the employee can report to another person with a hierarchy. Here the union represents the employeeAn unfinished desk is produced for $35.65 and sold for $64.20. A finished desk can be sold for $76.00. The additional processing cost to complete the finished desk is $6.15. Provide a differential analysis for further processing. Round your answers to two decimal places, if necessary. Differential revenue from further processing:
Revenue per unfinished desk $___________
Revenue per finished desk _______________
Differential revenue $____________
Differential cost per desk:
Additional cost for producing ___________
Differential from further processing __________
Answer:
Differential revenue from further processing:
= $11.80.
Explanation:
a) Data and Calculations:
Cost of production of an unfinished desk = $35.65
Selling price of an unfinished desk = $64.20
Selling price of a finished desk = $76.00
Additional processing cost = $6.15
Revenue per finished desk $76.00
Revenue per unfinished desk 64.20
Differential revenue $11.80
Differential cost per desk:
Cost of unfinished desk $35.65
Additional cost for producing 6.15
Differential from further processing $41.80
Unfinished Finished Differential
Revenue $64.20 $76.00 $11.80
Cost of production (35.65) (41.80) (6.15)
Net income $28.55 $34.20 $5.65
Angie relocated for her job and is looking for a new fitness facility to attend an aerobics class. She should make sure that these facilities follow the guidelines for health and fitness facilities established by the _____.
a. The National Center for Complementary and Alternative Medicine
b. The Better Business Bureau
c. The National Strength and Conditioning Association
d. The American Council on Exercise
e. The American College of Sports Medicine
Answer:
c
Explanation:
A company is considering issuing long-term debt. The debt would have a thirty-year maturity and a ten percent coupon rate. In order to sell the issue, the bonds must be underpriced at a discount of five percent of face value. In addition, the company would have to pay flotation costs of five percent of face value. The firm's tax rate is 21 percent. Given this information, the annualized after-tax cost of debt for the company would be ________.
Answer:
Find detailed explanations below
Explanation:
First and foremost, the issue price of the bond is the face value minus adjustments for discount and flotation costs
issue price=$1000*(1-5%-5%)
issue price=$900
semiannual coupon=face value*coupon rate/2
semiannual coupon=$1000*10%/2
semiannual coupon=$50
number of semiannual coupons in 30 years=30*2=60
Using a financial calculator, pretax cost of debt is computed thus:
N=60(number of semiannual coupons)
PMT=50(semiannual coupon)
PV=-900(price)
FV=1000(face value)
CPT
I/Y=5.58%(semiannual yield)
annual yield=5.58%*2=11.16%
after-tax cost of debt=annual yield*(1-tax rate)
tax rate=21%
after-tax cost of debt=11.16%*(1-21%)
after-tax cost of debt=8.82%
Alternative approach
Yield to Maturity [YTM] = Coupon Amount + [(Par Value – Bond Price) / Maturity Years] / [(Par Value + Bond Price)/2]
semiannual YTM=50+(1000-900)/30/(1000+900)/2
semiannual YTM=(50+3.33)/950
semiannual YTM=5.61%
annual YTM=5.61%*2=11.22%
after-tax cost of debt=11.22%*(1-21%)
after-tax cost of debt=8.86%
Jack and Jill are the only two residents in a neighborhood, and they would like to hire a security guard. The value of a security guard is $50 per month to Jack and $150 per month to Jill. The competitive wage for a security guard is $120 per month, and irrespective of who pays the guard, the guard will protect the entire neighborhood. Furthermore, suppose Jack earns $1,000 per month and Jill earns $11,000 per month.
Required:
a. What is the most a guard can charge per month and still be assured of being hired by at least one of them?
b. Suppose the competitive wage for a security guard is $120 per month. The local government proposes a plan whereby Jack and Jill each pays 50 percent of this monthly fee, and asks them to vote on this plan. Will the plan be voted in? Would economic surplus be higher if the neighborhood had a guard?
Answer:
Jack and Jill
a. The most a guard can charge per month and still be assured of being hired by at least one of them = $120
b. The vote will be 50 - 50. The local authority will decide since there is a 50 - 50 chance.
The economic surplus would be higher if the neighborhood had a guard by $80 ($200 - $120).
Explanation:
a) Data and Calculations:
Value of a security guard to Jack = $50 per month
Value of a security guard to Jill = $150 per month
Total value = $200 per month
Competitive wage for a security guard = $120 per month
what are the Computer Design problems and their solutions?
Intermediate targets are Group of answer choices financial variables, such as interest rates or monetary aggregates, the Fed believes will help it to achieve policy goals. interim goals set on the way to fully achieving policy goals. targets the Fed hopes to achieve by June of each year. targets for policy goals that are of secondary importance.
Answer:
financial variables, such as interest rates or monetary aggregates, the Fed believes will help it to achieve policy goals.
Explanation:
The Federal Reserve System ( popularly referred to as the 'Fed') was created by the Federal Reserve Act, passed by the U.S Congress on the 23rd of December, 1913. The Fed began operations in 1914 and just like all central banks, the Federal Reserve is a United States government agency.
Generally, it comprises of twelve (12) Federal Reserve Bank regionally across the United States of America.
Like all central banks, the Federal Reserve is a government agency that is saddled with the following responsibilities;
I. The Fed controls the issuance of currency in United States of America: it promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.
II. It provides banking services to all the commercial banks in the country because the Federal Reserve is the "lender of last resort."
III. It regulates banking activities in the United States of America: it has the power to supervise and regulate banks.
Intermediate targets can be defined as financial and economic variables which aren't directly under the control of the Federal Reserve (central bank) but they try to use them to influence policy actions or goals within a specific period of time.
Hence, intermediate targets are financial or economic variables, such as interest rates or monetary aggregates, the Fed believes will help it to achieve policy goals.
Define the six sources of business law
Answer:
Explanation:
Sources of law are the origins of laws, the binding rules that enable any state to govern its territory. The term "source of law" may sometimes refer to the sovereign or to thUS Constitution. Constitutional law governs the interpretation of the US Constitution and its statutes.
Federal Statutes. Statutory law is the body of written laws that have been passed by the US Congress.
Common Law. US common law is also called case law. ...
Regulations of Federal Agencies. ...
International Treaties. ...e seat of power from which the law derives its validity.
On December 1, a six-month liability insurance policy was purchased for $1,134. Analyze the required adjustment as of December 31 using T accounts, and then formally enter this adjustment in the general journal. (Trial balance is abbreviated as TB.)
Answer and Explanation:
As the insurance policy would be for 6 months
So per month it is
= $1,134 ÷ 6 months
= $189
Now the T account is
Prepaid insurance
Opening balance $1,134 Insurance expense $189
balance $945
Income statement
Adjustment $189
Journal entry
Insurance expense $189
To Prepaid insurance $189
(Being insurance expense is recorded)
Required: Compute financial ratios as follows: 1. Earnings per share. (Round your answer to 2 decimal places.) 2. Dividend payout ratio. (Round your intermediate calculations to 2 decimal places. Round your percentage final answer to nearest whole number (i.e., 0.1234 should be entered as 12).) 3. Dividend yield ratio. (Round your intermediate calculations to 2 decimal places. Round your percentage final answer to nearest whole number (i.e., 0.1234 should be entered as 12).) 4. Price-earnings ratio. (Round your intermediate calculations to 2 decimal places. Round your answer to nearest whole number.) 5. Book value per share. (Round your answer to 2 decimal places.)
Answer:
1. Earnings per share = $13.13 per share
2. Dividend payout ratio = 26%
3. Dividend yield ratio = 5%
4. Price-earnings ratio = 5
5. Book value per share = $58.00
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf for the full question.
The explanation of the answers is now provided as follows:
1. Earnings per share. (Round your answer to 2 decimal places.)
Number of shares outstanding = Common stock / Common stock par value = $140,000 / $10 = 14,000
Earnings per share = Net income / Number of shares outstanding = $183,820 / 14,000 = $13.13 per share
2. Dividend payout ratio. (Round your intermediate calculations to 2 decimal places. Round your percentage final answer to nearest whole number (i.e., 0.1234 should be entered as 12).)
Dividend payout ratio = Dividend per share / Earnings per share = $3.35 / $13.13 = 0.2551, or 26%
3. Dividend yield ratio. (Round your intermediate calculations to 2 decimal places. Round your percentage final answer to nearest whole number (i.e., 0.1234 should be entered as 12).)
Dividend yield ratio = Dividend per share / Market price per share = $3.35 / $61 = 0.0549, or 5%
4. Price-earnings ratio. (Round your intermediate calculations to 2 decimal places. Round your answer to nearest whole number.)
Price-earnings ratio = Market price per share / Earnings per share = $61 / $13.13 = 4.65, or 5
5. Book value per share. (Round your answer to 2 decimal places.)
Book value per share = Total stockholders’ equity / Number of shares outstanding = $812,000 / 14,000 = $58.00
Selected financial information for ELX Corporation is reproduced below: 1. Net operating assets (NOA) turnover (average NOA equals ending NOA) is 4. 2. Net operating profit after tax (NOPAT) margin is 6% 3. Leverage ratio (average net financial obligation to average common equity) is 2.5, and the spread is 7.3%. What is ELX's return on common equity
Answer:
the Return on common equity is 43.45%
Explanation:
The computation of the return on common equity is shown below;
As we know that
Return on common equity = Return on net operating assets + leverage × spread
= (4.2 × 6%) + 2.5 × 7.3%
= 25.2% + 18.25%
= 43.45%
Hence, the Return on common equity is 43.45%
The above formula should be applied for the same
In early April 2020, an amendment to the annual budget for 2020 was approved by the city council for inflows and outflows in the Street Improvement Bond Debt Service Fund related to the bond issue. The debt service fund budget amendment provides for estimated other financing sources of $20,000 for the premium on bonds sold and estimated revenues of $12,500 for accrued interest on bonds sold; and appropriations in the amount of the one interest payment of $25,000 to be made during 2020. (The payment that is due on July 1, 2020.)
Required:
Record the budget for the Street Improvement Bond Debt Service Fund for year 2020.
Answer:
attached below
Explanation:
Given data :
Year : 2020
estimated other financing sources = $20,000 ( premium on bonds sold )
estimated revenues = $12500 ( accrued interest on bonds sold )
approximations in amount of one interest payment = $25,000 ( to be made during 2020 )
attached below is the Budget for the street improvement Bond debt service fund for year 2020
Say one morning you are considering whether to take UBER or riding the train to work. Both mediums would cost you about $4, but you have already paid in advance for the train (since you pay a flat fee at the beginning of the month). If the UBER would take slightly less time than the train ride, and you are mostly concerned with the time it takes you to get to work, you should:________
a) take the train since you already paid for it
b) take the UBER
c) be indifferent between either modes of transportation
d) find another way to get to work
Answer:
B
Explanation:
The flat fee paid for the train represents sunk cost. sunk cost is cost that is incurred and cannot be recovered. it should not be considered when making future decisions
You value getting to work early, the Uber is faster, so you should take the uber
Since you are mostly concerned with the time to get to work and less with the cost, you should still a). take the train since you already paid for it.
After all, the time-saving of the UBER ride is slightly less than the train ride, and you have already paid for the train ride.
Based on the tone of the underlying message, the time difference between the train ride and the UBER is not significant for you to lose $4.
Thus, you should only consider the UBER if the time difference is significant and your business at the office may be in jeopardy.
Learn more: https://brainly.com/question/18622205
A business owned and run by one person is called a(n)
a business owned and run by one person is called a(n)
sole proprietorship
In 2021, internal auditors discovered that Fay, Inc., had debited an expense account for the $2,635,000 cost of a machine purchased on January 1, 2018. The machine's useful life was expected to be 17 years with no residual value. Straight-line depreciation is used by Fay. The journal entry to correct the error will include a credit to accumulated depreciation of: Multiple Choice $155,000. $2,635,000. $465,000. $310,000.
Answer:
$155,000
Explanation:
Given the information above,
Depreciation charge (straight line) = (Cost - Residual value) ÷ Estimated useful life
Therefore,
2021 Depreciation charge = ($2,635,000 - $0) ÷ 17
= $155,000
The journal entry to correct the error will include a credit to accumulated depreciation of $155,000
Given the following information, calculate the debt coverage ratio for this investment. Potential gross income: $120,000, Vacancy rate: 9%, Net operating income: $57,900, Operating expenses: $51,300, Acquisition Price: $520,000, Debt service: $40,000.
Answer:
the debt coverage ratio is 1.4475 times
Explanation:
The computation of the debt coverage ratio is shown below;
The Debt coverage ratio for investment is
= net operating income ÷ Total debt
= $57,900 ÷ $40,000
= 1.4475 times
BY dividing the net operating income by the total debt we can get the debt coverage ratio
hence, the debt coverage ratio is 1.4475 times
Distributing Cash Dividends to Preferred and Common Shareholders Dechow Company has outstanding 20,000 shares of $50 par value, 6% cumulative preferred stock, and 80,000 shares of $10 par value common stock. The company declares and pays cash dividends amounting to $160,000. a. If no arrearage on the preferred stock exists, how much in total dividends, and in dividends per share, is paid to each class of stock
Answer:
Preferred Stock = $60,000 and $3.00
Common Stock = $100,000 and $1.25
Explanation:
Dividends
Preferred Stock has preference when it comes to dividends payments. The remaining dividends are then paid to Common Stockholders.
Preferred Stock dividend = 20,000 x $50 x 6% = $60,000
Common Stock dividend = $160,000 - $60,000 = $100,000
Dividends per share
Preferred Stock dividend = $60,000 ÷ 20,000 shares = $3.00
Common Stock dividend = $100,000 ÷ 80,000 shares = $1.25
Carmel Corporation is considering the purchase of a machine costing $52,000 with a 4-year useful life and no salvage value. Carmel uses straight-line depreciation and assumes that the annual cash inflow from the machine will be received uniformly throughout each year. In calculating the accounting rate of return, what is Carmel's average inv
Answer:
$26,000
Explanation:
Average investment = (Initial investment + Salvage value) / 2
Average investment = ($52,000 + $0) / 2
Average investment = $52,000 / 2
Average investment = $26,000
So, Carmel's average investment is $26,000.
The following transactions occurred during July: Received $1,600 cash for services performed during July. Received $7,800 cash from the issuance of common stock to owners. Received $800 from a customer as payment for services performed during June. Billed $4,700 to customers for services performed on account in July. Borrowed $3,300 from the bank and signed a promissory note. Received $2,200 from a customer for services to be performed during August. What is the amount of revenue that will be reported on the income statement for the month ended July 31
Answer:
the amount of revenue that should be reported is $6,300
Explanation:
The computation of the amount of revenue that should be reported is shown below;
= Cash received + service revenue earned on the account
= $1,600 + $4,700
= $6,300
hence, the amount of revenue that should be reported is $6,300
Basically we add the two items so that the correct value could arrive
Crane Company incurred the following costs for 50000 units: Variable costs $300000 Fixed costs 392000 Crane has received a special order from a foreign company for 2000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4000 for shipping. If Crane wants to break even on the order, what should the unit sales price be?
Answer:
see explanation
Explanation:
Use the Fixed Costs, Variable costs and Sales arising from the special order only and follow the steps below :
Step 1 : Determine the Break even level in sales revenue
Break even (sales revenue) = Fixed Costs ÷ Contribution margin ratio
Step 2 : Determine the unit selling price
Unit selling price = Break even (sales revenue) ÷ total units sold