Answer:
a. Depreciation expense = (Cost - Salvage value / Useful life
Depreciation expense = ($225,000 - $25,000) / 10 years
Depreciation expense = $20,000
b. Equipment's net book value = Cost of equipment - Depreciation for 4 years
Equipment's net book value = $225,000 - ($20,000 * 4)
Equipment's net book value = $225,000 - $80,000
Equipment's net book value = $145,000
c. When the sum of undiscounted expected cash flows < Net book value of asset, then the asset is impaired
Here, $125,000 < $145,000. So, the equipment is impaired.
Impairment loss = Net book value of asset - Fair value of asset
Impairment loss = $145,000 - $90,000
Impairment loss = $55,000
Janitor Supply produces an industrial cleaning powder that requires 50 grams of material at $0.40 per gram and 0.15 direct labor hours at $14.00 per hour. Overhead is applied at the rate of $18 per direct labor hour. What is the total standard cost for one unit of product that would appear on a standard cost card?
a. $7.00.
b. $8.50.
c. $11.50.
d. $7.50.
e. $25.00.
Answer:
e. $25
Explanation:
Given the above information,
The first step is to calculate the cost of direct materials
Cost of direct materials = Material × Per gram rate
= 50 × $0.40
= $20
The next step is to compute the direct labor cost
Direct labor cost
= Direct labor rate × Direct labor hours
= $14 × 0.15
= $2.1
Then,
Overhead per unit cost = Overhead labor cost × labor hours
= $18 × 0.15
= $2.7
Now, add up the above costs
Total standard cost for one unit = $20 + $2.1 + $2.7
= $24.8
= $25
The College Bookstore sells a unique calculator to college students. The demand for this calculator is constant at 20 units per day. The lead time for this calculator is variable at an average of 9 days with a standard deviation of 2 days. Compute the statistical reorder point that results in a 95 percent in-stock probability. Choose the closest answer.
a. 182 units
b. 226 units
c. 246 units
d. 26 units
e. 46 units
Answer:
c. 246 units
Explanation:
Daily demand, d = 20 units
Service Level = 95 % = 0.95. Z (according to Standardized Normal Curve) = 1.65
Average Lead Time, LT-bar = 9 days
Standard deviation of Lead Time, σLT = 2 days
Reorder Point = Expected Demand during Lead time + Safety Stock
Reorder Point = d*LT-bar + z*d*σLT
Reorder Point = (20*9) + (1.65*20*2)
Reorder Point = 180 + 66
Reorder Point = 246 units
State 3 advantages in setting up a business in Maldives?
Answer:
1. No restrictions on sending their earning profit to their own country
2. It takes maximum of 30 days to complete the entire process of company registration in Maldives
3. The government encourages projects that are environmentally friendly
The process mapping is a
____ diagram.
Answer:
I hope u understand and thank you for your questions
Albatross Company purchased a piece of machinery for $60,000 on January 1, 2019, and has been depreciating the machine using the double-declining-balance method based on a five-year estimated useful life and no salvage value. On January 1, 2021, Albatross decided to switch to the straight-line method of depreciation. The salvage value is still zero and the estimated useful life did not change. Ignore income taxes.
Required:
a. What type of accounting change is this, and how should it be handled?
b. Prepare the journal entry to record depreciation for 2017. Show all calculations clearly.
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Answer:
Currently, the income statement for company reflects a total period cost for depreciation of $7,876,000
The division of labor is another word for Group of answer choices specialization. taxes. expanding markets. efficiency.g
Heinz Company began operations on January 1, 2020, and uses the FIFO method in costing its raw material inventory. Management is contemplating a change to the LIFO method and is interested in determining what effect such a change will have on net income. Accordingly, the following information has been developed:
Final Inventory
2017 2018
FIFO $640,000 $712,000
LIFO $560,000 $636,000
Net Income
(computed under the FIFO method) $980,000 $1,030,000
Based on the above information, a change to the LIFO method in 2020 would result in net income for 2018 of ________.
a. $1,070,000
b. $1,030,000
c. $954,000
d. $950,000
Answer: $954,000
Explanation:
Thw difference in the final inventory between the FIFO and the LIFO method in 2018 will be:
= $712,000 - $636,000
= $76,000
Then, based on the above information, a change to the LIFO method in 2018 would result in net income for 2018 of:
Net income as per FIFO = $1,030,000
Less: Decrease in income = $76,000
Net income as per LIFO = $954,000
You purchased a stock at the end of last year at a price of $92. At the end of this year, the stock pays a dividend of $1.60 and you sell the stock for $106. What is your return for the year? Now suppose that dividends are taxed at 15 percent and long-term capital gains (over 11 months) are taxed at 30 percent. What is your aftertax return for the year? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
Answer:
1.69
hope it helps
Explanation:
You managed a risky portfolio with an expected rate of return of 28% and a standard deviation of 78%. The T-bill rate is 5%. Your client stipulates that the complete portfolio's standard deviation should be less than 12%. What proportion of your client's total investment should be invested in the risky portfolio
Answer:
Portfolio standard deviation = Weight in Risky portfolio * Standard deviation of Risky portfolio
12% = Weight in risky Portfolio * 78%
Weight in risky Portfolio = 12% / 78%
Weight in risky Portfolio = 0.1538
Weight in risky Portfolio = 15.38%
Stock Weight Return Weighted Return
Risky portfolio 0.1538 28.00% 4.31%
Risk free Asset 0.8462 5.00% 4.23%
Portfolio Return 8.54%
Lin Corporation has a single product whose selling price is $140 per unit and whose variable expense is $70 per unit. The company’s monthly fixed expense is $31,600. Required: 1. Calculate the unit sales needed to attain a target profit of $8,300. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $10,000. (Round your intermediate calculations to the nearest whole number.)
Answer:
Results are below.
Explanation:
Giving the following information:
Selling price= $140
Unitary variable cost= $70
Fixed cost= $31,600
To calculate the number of units to be sold to obtain a profit of $8,300, we need to use the following formula:
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (31,600 + 8,300) / (140 - 70)
Break-even point in units= 570
Now, the dollar sales for $10,000 profit:
Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio
Break-even point (dollars)= (31,600 + 10,000) / (70/140)
Break-even point (dollars)= $83,200
Megan Corp. recognizes revenue over time to account for long-term contracts. At the date the contract is signed, the price is $600,000 and the expected costs to complete the contract are $400,000. The following information is available:
Year 1 Year 2 Year 3 Costs incurred to date $200,000 $350,000 $500,000 Estimated costs to complete 200,000 150,000 0 Progress billings 200,000 200,000 200.000
What is the amount of gross profit or loss that is recognized in year 2?
a. $30,000 loss
b. $40,000 gross profit
c. $150,000 loss
d. $200,000 gross profit
Answer:
a. $30,000 loss
Explanation:
Calculation to determine What is the amount of gross profit or loss that is recognized in year 2
First step is to calculate the Year 1 Cost to cost ratio using this formula
Year 1 Cost to cost ratio = 200,000 / ( Costs incurred + Cost to complete)
Let plug in the formula
Year 1 Cost to cost ratio= 200,000 / (200,000 + 200,000)
Year 1 Cost to cost ratio= 50%
Second step is to calculate the Gross profit or loss using this formula
Gross profit/Loss = 50% * ( Price - estimated cost to complete)
Let plug in the formula
Gross profit/Loss= 50% ( 600,000 - 400,000)
Gross profit/Loss= $100,000
Third step is to calculate the Year 2 Cost to cost ratio
Using this formula
Year 2 Cost to cost ratio = 350,000 / ( Costs incurred + Cost to complete)
Let plug in the formula
Year 2 Cost to cost ratio = 350,000 / (350,000 + 150,000)
Year 2 Cost to cost ratio = 350,000 / 500,000
Year 2 Cost to cost ratio = 70%
Now let calculate the gross profit or loss using this formula
Gross profit = 70% * ( Price - estimated cost to complete) - Previous Gross
Let plug in the formula
Gross profit= 70% ( 500,000 - 400,000) - 100,000
Gross profit= -$30,000
Gross Loss of $30,000 in Year 2
Both corrective taxes and tradable pollution permits reduce the cost of environmental protection and thus should increase the public's demand for a clean environment. b. Both corrective taxes and tradable pollution permits provide market-based incentives for firms to reduce pollution. c. Tradable pollution permits have an advantage over corrective taxes if the government is uncertain as to the optimal size of the tax necessary to reduce pollution to a specific level. d. Corrective taxes set the maximum quantity of pollution, whereas tradable pollution permits fix the price of pollution.
Answer:
d. Corrective taxes set the maximum quantity of pollution, whereas tradable pollution permits fix the price of pollution.
Explanation:
The government applied the alternatives for the policy in order to control the pollution problem
here following two vital policy alternatives i.e.
1. Corrective taxes
2. Permits of Tradable pollution
The corrective taxes impose the per unit tax with regard to the pollution i.e. emitted. Also it fixed the pollution price
Here there is a permit of the tradable pollution that could set the pollution limit i.e. maximum. On the other hand, the firm could emit the pollution till the quantity mentioned by the permit of the tradable permit
So, the option d should be considered
Ethelbert is a young software company owned by two entrepreneurs. It currently needs to raise $1,254,400 to support its expansion plans. A venture capitalist is prepared to provide the cash in return for a 40% holding in the company. Under the plans for the investment, the VC will hold 19,600 shares in the company and the two entrepreneurs will have combined holdings of 29,400 shares.
a. What is the total after-the-money valuation of the firm?
b. What value is the venture capitalist placing on each share?
Answer:
a. $3,136,000
b. $64 per share
Explanation:
The computation is shown below
a. The total after the money valuation is
= $1,254,400 ÷ 40%
= $3,136,000
b. The value that venture capitalist place on each share is
= $3,136,000 ÷ (19,600 ÷ 40%)
= $3,136,000 ÷ 49,000 shares
= $64 per share
Hence, the same should be considered
dự báo thị trường trên các đường bay dự kiến khai thác
Use the following information: Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $10,160 Cost of goods sold 8,210 Depreciation 510 Earnings before interest and taxes $1,440 Interest paid 122 Taxable income $1,318 Taxes 461 Net income $857 Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) 2016 2017 2016 2017 Cash $320 $350 Accounts payable $1,730 $1,610 Accounts rec. 1,180 1,080 Long-term debt 1,190 1,390 Inventory 2,080 1,830 Common stock 3,520 3,520 Total $3,580 $3,260 Retained earnings 730 980 Net fixed assets 3,590 4,240 Total assets $7,170 $7,500 Total liab.& equity $7,170 $7,500 What is the quick ratio for 2017?a. 89 times.b. 1.81 times.c. 1.14 times.d. 88 times.e. 2.02 times.
Answer:
See below
Explanation:
Given the information above, Quick ratio is computed as shown below;
Quick ratio = Quick assets / Current liabilities
Where,
Quick assets = Cash and cash equivalents + Marketable securities + Account receivables
Current liabilities = Bills payable + Accounts payable + Other short term liabilities
From the balance sheet, Quick assets includes cash and account receivables, while Current liabilities includes Accounts payable only
Quick ratio = $350 + $1,080 / $1,610
Quick ratio = $1,430/ $1,610
Quick ratio = 0.89 times
Therefore, the quick ratio for 2017 is 0.89 times
You are sitting next to a person in business class on a flight from Los Angeles to Sydney, Australia. You mention to that person that you got your ticket two months ago for only $12,500. The person responds that she bought her ticket two days ago for $7,800. This sometimes happens because airlines often use an approach called:
Answer:
price discrimination (third degree price discrimination)
Explanation:
Price discrimination is when the same product is sold at different prices to customers in different markets
types of price discrimination
1. first degree price discrimination : here sellers charge each consumer at their willingness to pay in order to eliminate consumer surplus.
2. second degree price discrimination : here firms offer different prices depending on the quantity purchased. e.g. giving discounts for bulk purchases.
3, third degree price discrimination : firms charge different prices to different groups of customers. e.g. having a certain price for senior citizens, students
In preparation for developing its statement of cash flows for the year ended December 31, 2018, Millennium Solutions, Inc. collected the following information:
Payment for the early extinguishment of long-term notes (book value: $100 million) $108.1
Sale of common shares 352.1
Retirement of common shares 244.1
Loss on sale of equipment 4.1
Proceeds from sale of equipment 16.1
Issuance of short-term note payable for cash 20.1
Acquisition of building for cash 14.1
Purchase of marketable securities (not a cash equivalent) 10.1
Purchase of marketable securities (considered a cash equivalent) 2.1
Cash payment for 3-year insurance policy 6.1
Collection of note receivable with interest (principal amount, $22) 26.1
Declaration of cash dividends 66.1
Distribution of cash dividends declared in 2020 60.1
Required:
a. Prepare the investing activities section of Millennium's statement of cash flows for 2018.
b. Prepare the financing activities section of Millennium's statement of cash flows for 2018.
Answer and Explanation:
The preparation of the investing and the financing activities is presented below:
1) Investing activities
Proceeds from the sale of equipment 16
Purchase of building -14
Purchase of marketable securities -10
Collection of notes receivable 26
Net cash flow from investing activities 18
2) Financing activities
Payment of long term notes -108
Sales of common share 352
Retirement of shares -244
Issue short term notes payable 20
Dividend paid -60
Net cash flow from financing activities -40
Instead of issuing securities, Artificial Intelligence Inc. pursues other sources of funds. To obtain venture capital financing, the firm will most likely:_______.a. pool funds to invest in a business venture. b. give up a share of its ownership. c. borrow funds to be returned on a designated maturity date. d. pay periodic dividends.
Answer:
The answer is B.
Explanation:
The correct option is B. - give up a share of its ownership. Venture capitalist invest in a start up ventures or small businesses that they believe have high future prospects.
Because venture capitalists are exprienced business wise and have enough money, they tend to make or provide managerial decisions. The business will be in form of partnership, hence, Artificial Intelligence Inc. giving up part of its ownership.
It is not a must venture business pay a periodic dividend but business capitalist share in the profit or loss of the business.
Vincenzo Martin and Sasha Boudrakis have started a new firm, The Fan Base. Vincenzo is a well-known marketing guru who advises major league sports franchises on how to maximize the revenue from their teams' brands and logos. Sasha, meanwhile, is mostly silent in the operation. He has invested $2 million to get The Fan Base off the ground, and in return he receives 25% of the firm's annual profits. The Fan Base is organized as a Group of answer choices corporation. limited liability company (LLC). sole proprietorship. general partnership. limited partnership.
Answer: limited partnership
Explanation:
With the description given in the question, the The Fan Base is organized as a limited partnership. A limited partnership has a general partner, whom has an unlimited liability and a limited partner.
A limited partnership is when two or more partners go into business together, and in this case, the limited partners will be liable only up to the amount that they invested in the business.
Rudd Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2017, 11,250 suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was 14,000 direct labor hours. All materials purchased were used.
Cost Element Standard (per unit) Actual
Direct materials 8 yards at $4.40 per yard $375,575 for 90,500 yards
($4.15 per yard)
Direct labor 1.2 hours at $13.40 per hour $200,925 for 14,250 hours
($14.10 per hour)
Overhead 1.2 hours at $6.10 per hour $49,000 fixed overhead $37,000 variable
overhead (fixed $3.50; variable $2.60)
Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $49,000, and budgeted variable overhead was $36,400
Compute the total, price, and quantity variances for (1) materials and (2) labor. (Round answers to 0 decimal places, e.g. 125.)
Answer: See explanation
Explanation:
1. The total, price, and quantity variances for materials will be:
Actual Production = 11250
Standard Quantity of Direct Material Required per unit = 8
Standard Quantity of Direct Material required (SQ) = 11250*l × 8 = 90000
Standard Price per Yard (SP) = 4.4
Actual Direct Material (AQ) = 90500
Actual Price per Pound (AP) = 4.15
Total Material Variance:
= (SP × SQ) - (AP × AQ)
= (4.40 × 90000) - (4.15 × 90500)
= 396000 - 375575
= 20425
Direct Material Price Variance:
= AQ × (SP - AP)
= 90500 × (4.40 - 4.15)
= 90500 × 0.25
= 22625 Favourable
Direct materials quantity variance:
= SP × (SQ - AQ)
= 4.40 × (90000 - 90500)
= 4.40 × -500
= -2200 Unfavourable
2. The total, price, and quantity variances for labor will be:
Actual Production = 11250
Standard Hours Required per unit = 1.2
Standard Hours required (SH) = 11250 × 1.20 = 13500
Standard Rate per Hour (SR) = 13.4
Actual Hours required (AH) = 14250
Actual Rate per Hour (AR) = 14.1
Total Labour Variance:
= (SR × SH) - (AR × AH)
= (13.40 × 13500) - (14.10 × 14250)
= 180900 - 200925
= -20025 Unfavourable
Dircet Labour RateVariance:
= AH × (SR - AR)
= 14250 × (13.40 - 14.10)
= 14250 × -0.7
= -9975 Unfavourable
Direct Labour efficiency variance:
= SR × (SH - AH)
= 13.40 × (13500 - 14250)
= 13.40 × -750
= -10050 Unfavourable
A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have been identified, and the associated costs and revenues have been estimated. Annual fixed costs would be $36,000 for A and $31,000 for B; variable costs per unit would be $7 for A and $11 for B; and revenue per unit would be $18.
Requied:
a. Determine each alternativeâs break-even point in units.
b. At what volume of output would the two alternatives yield the same profit?
c. If expected annual demand is 10,000 units, which alternative would yield the higher profit?
Answer:
Results are below.
Explanation:
Giving the following information:
Alternative A:
Fixed costs= $36,000
Unitary variable cost= $7
Selling price= $18
Alternative B:
Fixed costs= $31,000
Unitary variable cost= $11
Selling price= $18
First, we need to calculate the break-even point in units for each alternative:
Break-even point in units= fixed costs/ contribution margin per unit
Alternative A= 36,000 / (18 - 7)= 3,273
Alternative B= 31,000 / (18 - 11)= 4,429
Now, we equal the indifference point:
36,000 + 7x = 31,000 + 11x
x= number of units
5,000 = 4x
1,250 = x
The indifference point is 1,250 units.
Finally, 10,000 units are sold:
Alternative A:
Net income= 10,000*(18 - 7) - 36,000
Net income= $74,000
Alternative B:
Net income= 10,000*(18 - 11) - 31,000
Net income= $39,000
15. Assume that Bullen issued 12,000 shares of common stock, with a $5 par value and a $47 fair value, to obtain all of Vicker's outstanding stock. In this acquisition transaction, how much goodwill should be recognized
Answer:
$104,000
Explanation:
Note: The full question is attached as picture below
Fair value of net assets = Cash and receivables + Inventory + Land + Buildings (net) + Equipment (net) - Liabilities
Fair value of net assets = $70,000 + 210,000 + 240,000 + 270,000 + 90,000 - 420,000
Fair value of net assets = $460,000
Purchase consideration paid = 12,000*$47
Purchase consideration paid = $564,000
Goodwill recognized = Purchase consideration - Fair value of net assets
Goodwill recognized = $564,000 - $460,000
Goodwill recognized = $104,000
Problems and Applications Q8 Suppose that the government decides to issue tradable permits for a certain form of pollution. In terms of economic efficiency in the market for pollution, having the government auction the permits off is distributing them to firms. True or False: If the government chooses to distribute the permits, the allocation of permits among firms does not matter for efficiency, but it would affect the distribution of wealth. True False
Answer:
1. False
2. True
Explanation:
Tradable permits issued to firms, there will be no effect on economic efficiency for the market of pollution permit. The revenue of government will be increase by selling and auctioning those permits.
The process for converting present values into future values is called________________.
Answer:
Compounding.
Explanation:
Compounding is typically an accounting process used for the conversion of present values of an asset, investment or money into future values.
Generally, a compound interest is calculated based on the interest rate on a loan, principal and the accumulated interest gained from previous periods. This interests is compounded for a certain number of times such as daily, weekly, quarterly or annually.
Mathematically, to find the future value from the present value of an asset or investment, we would use the compound interest formula;
[tex] A = P(1 + \frac{r}{n})^{nt}[/tex]
Where;
A is the future value. P is the principal or starting amount. r is annual interest rate. n is the number of times the interest is compounded in a year. t is the number of years for the compound interest.The discount rate is the interest rate banks charge their best customers. the interest rate banks charge each other for overnight loans. the interest rate the U.S. Treasury pays on Treasury Bills. the interest rate the Fed charges to banks for loans from the Fed.
Describe the key stages in integrating total quality management into the strategy of an international petrochemical company
Answer:
Total quality management (TQM) describes a management approach to long-term success through customer satisfaction. In a TQM effort, all members of an organization participate in improving processes, products, services, and the culture in which they work.Explanation:
If my answer is incorrect, pls correct me!
If you like my answer and explanation, mark me as brainliest!
Crossfade Corp. has a bond with a par value of $2,000 that sells for $1,956.84. The bond has a coupon rate of 6.84 percent and matures in 24 years. If the bond makes semiannual coupon payments, what is the YTM of the bond
Answer:
Semestral rate= 3.51%
Annual rate= 7.02%
Explanation:
Giving the following information:
Par value= $2,000
Present value= $1,956.84
Coupon= (0.0684/2)*2,000= $68.4
Number of periods= 24*2= 48 semesters
To calculate the YTM, we need to use a financial calculator:
Function= CMPD
n= 48
I%= SOLVE = 3.51%
PV= 1,956.84
PMT= -68.4
FV= -2,000
Semestral rate= 3.51%
Annual rate= 3.51*2= 7.02%
Suppose two factors are identified for the U.S. economy: the growth rate of industrial production, IP, and the inflation rate, IR. IP is expected to be 4% and IR 6%. A stock with a beta of 1 on IP and 0.4 on IR currently is expected to provide a rate of return of 14%. If industrial production actually grows by 5%, while the inflation rate turns out to be 7%, what is your best guess for the rate of return on the stock? (Round your answer to 1 decimal place.)
Answer:
15.4%
Explanation:
Calculation to determine your best guess for the rate of return on the stock
The revised estimate on the rate of return on
the stock would be:
Before
14% = α +[4%*1] + [6%*0.4]
α = 14% - 6.4%
α = 7.6%
With the changes:
7.6% + [5%*1] + [7%*0.4]
= 7.6% + 5% + 2.8%
= 15.4%
Therefore your best guess for the rate of return on the stock will be 15.4%
Your non-technical manager is delighted with the idea of referring to common vulnerabilities by their nicknames, such as "Heartbleed" instead of CVE-2014-0160 or "Shellshock" instead of CVE-2014-6271, and insists that no one can possibly remember those long CVE names. Present reasons both for and against this conclusion. Which side of the issue do you agree with, explain your opinion and reasoning. This should be written as a recommendation email to your manager with a list of backup sources at the bottom. When you list these sources, include more information than only a URL.
Budgeted sales in Acer Corporation over the next four months are given below: Budgeted sales September October November December $120,000 $140,000 $180,000 $160,000 Thirty percent of the company's sales are for cash and 70% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 20% are collected in the second month following sale. Given these data, cash collections for December should be:
Answer:
$161,400
Explanation:
Cash collection calculation
December cash sales ($160,000*30%) = $48,000
Credit sales
December: (160000*70%*50%) = $56,000
November: (180000*70%*30%) = $37,800
October: (140,000*70%*20%) = $19,600
Total cash collections $161,400