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
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
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.
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:
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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%
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
To overcome information overload, supervisors should: ________.a. give employees all the information and let them sift out what is useful and what is not b. not ask for feedback, because employees know what is expected c. be sure that employees are paying attention d. keep repeating instructions
Given the following data:
Selling price per unit $ 2.00
Variable production cost per unit S $ 0.30
Fixed production cost $ 6,000
Sales commission per unit $ 0.20
Fixed selling expenses $ 1,500
How much is the break-even point in dollars?
A) $6,000
B) $4,000
C) $8,000
D) $10,000
E) None of the above
Answer :
See below
Explanation:
Given the above information, break even point in dollars is calculated as seen below
Break even point in dollars = Fixed cost / Contribution margin ratio
Where
Fixed cost = $6,000
Contribution margin ratio = Contribution margin / Sales
Contribution margin ratio = ($2 - $0.3) / $2
Contribution margin ratio = 85%
Therefore,
Break even point in dollars = $6,000 / 85%
Break even point in dollars = $7,059
Line Corporation's balance sheet showed the following amounts for their liability and stockholders' equity accounts: Current Liabilities, $5,000; Bonds Payable, $1,500; Lease Obligations, $2,000; and Deferred Income Taxes, $300. Total stockholders' equity was $6,000. The debt-to-equity ratio is:___________
Answer:
the debt-to-equity ratio is 1.47
Explanation:
The computation of the debt-to-equity ratio is shown below
= (Current liabilities + Bonds payable + Lease obligations + Deferred income taxes) ÷ Total stockholder's equity
= ($5,000 + $1,500 + $2,000 + $300) ÷ $6,000
= 1.47
Hence, the debt-to-equity ratio is 1.47
Therefore the same should be considered and relevant
If the beginning raw materials inventory balance is $50 and the ending raw materials inventory balance is $500 and the amount of raw materials placed into production $400.....what are the Net Purchases for the period
Answer:
the net purchase is $850
Explanation:
The computation of the net purchase is shown below:
The amount of raw material placed into production = opening inventory + net purchase - ending inventory
$400 = $50 + net purchase - $400
So, the net purchase is $850
hence, the net purchase is $850
The net purchase for the period will be $850.
Amount of raw material placed into production) = Opening inventory + Net purchase - Ending inventory
$400 = $50 + Net purchase - $400
Net purchase = $850
In conclusion, the net purchase for the period will be $850.
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Gardner Corporation manufactures skateboards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. Sales $ 1,500,000 Cost of sales: Direct Material $ 250,000 Direct labor 150,000 Variable Overhead 75,000 Fixed Overhead 100,000 575,000 Gross Profit $ 925,000 Selling and G&A Variable 200,000 Fixed 250,000 450,000 Operating Income $ 475,000 The break-even point (rounded to the nearest dollar) for Gardner Corporation for the current year is:
Answer:
$636,364
Explanation:
Calculation to determine what The break-even point for Gardner Corporation for the current year is
First step is to calculate the Variable costs
Variable costs = $250,000 + $150,000 + $75,000 + $200,000
Variable costs = $675,000
Second step is to calculate the Contribution margin ratio
Contribution margin ratio = (Sales - Variable costs) / Sales
Contribution margin ratio= ($1,500,000 - $675,000) / $1,500,000
Contribution margin ratio= 0.55*100
Contribution margin ratio = 55%
Now let calculate the Break-even point
Break-even point = Fixed costs / Contribution margin ratio
Break-even point= ($100,000 + $250,000) / 0.55
Break-even point = $636,364
Therefore The break-even point (rounded to the nearest dollar) for Gardner Corporation for the current year is:$636,364
Dana has standard consumer preferences over two goods: hours spent watching football (W) and hours spent playing football (P). He is indifferent between the bundles: A=(2W,1P) and B=(1W,2P). He is offered a third bundle C=(1.5W,1.5P). Based on the preference assumptions, what might we say about Dana's preferences for C relative to A or B?A. Dana might prefer C to A, and C to B.B. Dana might prefer C to A, and A to B.C. Dana might prefer C to A, and B to C.D. Dana might prefer A to C, and B to C.E. Dana might be indifferent between C, A, and B.
Answer:
The correct option is Dana might be indifferent between C, A, and B.
Explanation:
Note: See the attached photo for the indifference curve showing points A, B and C.
The answer can be explained using an indifference curve.
An indifference curve is a graph that depicts the combination of two commodities that provide equal satisfaction or utility to the consumer. A consumer is indifferent between the two commodities at each point on an indifference curve because all points on the curve provide him with the same level of satisfaction or utility.
In the attached photo, bundles A, B and C are plotted as points on the same indifference curve (IC). Since points A, B and C are on the same IC, it therefore implies that Dana might be indifferent between C, A, and B.
Therefore, the correct option is Dana might be indifferent between C, A, and B.
If you have not been obligating your funds according to your obligation plan, you may become a prime candidate for losing your funds to other programs through __________. Reprogramming Expiration Incremental Funding The Misappropriation Act
Answer:
Reprogramming
Explanation:
In the case when you are not have an obligation with respect to the funds as per the obligation plan so there might be the chances to become a prime candidate for losing the funds to the other type of programs via reprogramming
So as per the given situation, the first option is correct
viết lý do chọn đề tài hay về chiến lược xúc tiến của công ty grab
Answer:
đồ án phân tích việc thực hiện chiến lược marketing của Grab tại Việt Nam ... soát ... lược giá (Price) 18 1.3.3 Chiến lược phân phối .20 1.3.4 Chiến lược Xúc tiến hỗn ... lược cấp công ty Tổng tài sản Grab Singapore 2014 - 2015 Doanh thu Grab ... lý Trong trình học tập hướng dẫn thầy Đỗ Thanh Tùng em hoàn thành đề tài .
Mariott Condominium, located near San Diego, California, plans to renovate its main building. The project will begin April 1, and the goal is to complete by August 1 (in 17 weeks). The condominium manager identifed the renovation activities and their estimated time below.
a) Draw a project network. You may want to draw on paper then do it here by connecting the given nodes with arcs (i.e, arrows). You might not use all of the given arcs.
b) What are the critical activities?
c) What activity has the most slack time?
d) Will the project be completed by August 1?
Answer:
7
Explanation:
because
Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs
3,300 $168,000
1,300 108,000
2,390 149,040
a. Determine the variable cost per unit and the total fixed cost.
b. Based on part (a), estimate the total cost for 1,660 units of production.
Answer:
Ziegler Inc.
a) The variable cost per unit = $60
b) The total fixed cost = $30,000
c) The total cost for 1,660 units = $129,600
Explanation:
a) Production Data and Calculations:
Units Total
Produced Costs
3,300 $168,000
1,300 108,000
2,390 149,040
High-low method:
High 3,300 $168,000
Low 1,300 108,000
Diff. 1,000 $60,000
Variable cost = $60 ($60,000/1,000)
Fixed cost = $30,000 ($108,000 - ($60 * 1,300)
Total cost for 1,660 units:
Variable costs = $99,600 ($1,660 * $60)
Fixed cost = 30,000
Total costs = $129,600
The Wildhorse Company has disclosed the following financial information in its annual reports for the period ending March 31, 2017: sales of $1.484 million, cost of goods sold of $803,000, depreciation expenses of $175,000, and interest expenses of $89,575. Assume that the firm has an average tax rate of 35 percent. Compute the cash flows to investors from operating activity.
Answer: $535,251.25
Explanation:
Cash flow to investors from operating activities is calculated by:
= EBIT + Depreciation - Taxes
EBIT = Sales - Cost of goods sold - Depreciation
= 1,484,000 - 803,000 - 175,000
= $506,000
Taxes = Tax rate * (EBIT - Interest)
= 35% * (506,000 - 89,575)
= $145,748.75
Cash flow to investors = 506,000 + 175,000 - 145,748.75
= $535,251.25
n June, one of the processing departments at Football Corporation had beginning work in process inventory of $12,700. During the month, $433,000 of costs were added to production and the cost of units completed and transferred out from the department was $411,000. In the department’s cost reconciliation report for January, the cost of ending work in process inventory for the department would be:
Answer:
$34,700
Explanation:
Calculation to determine what the cost of ending work in process inventory for the department would be:
Using this formula
Cost of ending work in process inventory=Beginning work in process inventory +Costs added to production-Units completed and transferred out
Let plug in the formula
Cost of ending work in process inventory=$12,700+$433,000- $411,000
Cost of ending work in process inventory=$34,700
Therefore the cost of ending work in process inventory for the department would be: $34,700
MC Qu. 123 The ending inventory of finished... The ending inventory of finished goods has a total cost of $9,800 and consists of 700 units. If the overhead applied to these goods is $3,726, and the overhead rate is 81% of direct labor, how much direct materials cost was incurred in producing these units
Answer:
$5,200
Explanation:
Given the above information,
Direct labor = $3,726 / 0.81 = $4,600
But,
Total cost = Direct material + Direct labor + Overhead
Fixing the values, we'll have
$9,800 = Direct materials + $4,600 + $3,726
Direct materials = $9,800 - $4,600
Direct materials = $5,200
Therefore $5,200 raw materials cost was incurred in producing these units.
Bài 1: Một người vay ngân hàng $500.000, lãi suất 10%/năm. Ngân hàng yêu cầu
thanh toán cả nợ và lãi mỗi kỳ bằng nhau vào cuối mỗi năm và được trả dứt điểm trong
5 năm. Xác định số tiền thanh toán mỗi kỳ và tính khoản nợ gốc và lãi phải trả mỗi kỳ.
Production equipment costing $500,000 has been purchased by a contract manufacturing company to meet the specific needs of a customer (Note: this equipment qualified for a 10% investment tax credit (ITC) at the time of purchase). The contracting award is for a 4-year contract with the possibility of extending the contract for another 4 years. The company plans to use MACRS to depreciate this equipment as a 7-year class property for tax purposes. The income tax rate for the company is 40%, and it expects to have an after-tax rate of return (MARR) of 12% for all its investments. The equipment has generated an annual income of $150,000 for the company for the first four years, however the customer decided not to renew the contract after 4 years. Consequently, the company has decided to sell the equipment for $200,000 at the end of 4 years.
Required:
Use the short-cut method to determine if the company has reached their rate of return (IRR) goal on this contract and investment.
Answer:
Short-cut IRR = 18.75%
The company has not reached their rate of return goal on this contract and investment.
Explanation:
a) Data and Calculations:
Cost of production equipment = $500,000
Qualified investment tax credit (ITC) = 10% = $50,000 ($500,000 * 10%)
Contract period = 4 years with 4 years extension on renewal
Income tax rate for the company = 40%
Expected after-tax rate of return = 12%
Expected before-tax rate of return = 30% (12%/40%)
Annual income generated by the equipment = $150,000 for 4 years
Salvage value at the end of 4 years = $200,000
Short-cut IRR = 100%, divided by the number of years * about 75-80%
= 100%/4 * 75%
= 18.75%