Answer: 47.8 years
Explanation:
Jack is trying to make up to $330,000 from $50,680 at a rate of 4% in the future so the relevant formula is a future value formula.
330,000 = 50,680 * ( 1 + 4%) ^ number of years
1.04 ^ number of years = 330,000 / 50,680
1.04 ^ N = 6.5114
Use the Natural logarithm, In, to solve for N
N * In (1.04) = In (6.5114)
N * 0.0392 = 1.87356
N = 1.87356/ 0.0392
= 47.8 years
The Chiemsee Knee Replacement Clinic (CKRC) is a sports clinic located at the northern edge of the German Alps. It specializes in knee replacements for skiers who come to CKRC from Germany, Austria, Switzerland, and Italy. The clinic currently has one operating room (OR). However, since the clinic has dramatically more demand than capacity, the management team contemplates investing in a second OR. A lean consulting firm, however, suggests that before going ahead with installing new capacity, the clinic should first look at how it uses its existing capacity. The data collected by the consulting firm reveal that:
Answer:
Another operating room is needed.
Explanation:
The data collected by the consulting firm reveal that the existing facility does not fulfill the requirement due to more number of people so for this reason they have to build another operating room to quickly facilitate more number of people in less time. There are more number of people comes to the clinic as compared to previous years which compels the authority to build up new operating rooms for the convenience of people that comes for knee replacement.
Briggs Company has operating income of $36,000, invested assets of $180,000, and sales of $720,000. Use the DuPont formula to compute the return on investment and show (a) the profit margin, (b) the investment turnover, and (c) the return on investment
Answer:
a. 5 %
b. 4.00
c. 20 %
Explanation:
(a) the profit margin,
profit margin = Net Income / Sales x 100
= $36,000 / $720,000 x 100
= 5 %
(b) the investment turnover, and
investment turnover = Sales ÷ Total Assets
= $720,000 ÷ $180,000
= 4.00
(c) the return on investment
return on investment = Net Income ÷ Total Assets
= $36,000 /$180,000 x 100
= 20 %
Write the president (me) a memo explaining your reasoning and suggest a new pricing strategy. (You can decide what kind of business we’re in)
Answer:
To: President
From: General Manager Finance
Subject : Pricing strategy for existing products
Date : 20th June 2021
As you are aware about the declining sales of our various products. The main reason identified by our sales and marketing analysts for the declining sales is over pricing of various products. There have been increase competition in the market and new entrants have adopted strategy of economies of scale which enable them to sell the product at low price and gain market share. There we need to cut our costs and then reduce our profit margin to boost sales of our products. We can be profitable from volume sales strategy.
If you need to discuss further on this matter, we can arrange a meeting with head of different department to discuss the business strategy in more detail.
The following transactions are for Marin Company. 1. On December 3, Marin Company sold $492,200 of merchandise to Cullumber Co., on account, terms 2/10, n/30. The cost of the merchandise sold was $325,100. 2. On December 8, Cullumber Co. was granted an allowance of $22,900 for merchandise purchased on December 3. 3. On December 13, Marin Company received the balance due from Cullumber Co.a. Prepare the journal entries to record these transactions on the books of Oriole Company. Oriole Company uses a perpetual inventory system.b. Assume that Oriole Company received the balance due from Cullumber Co. on January 2 of the following year instead of December 13. Prepare the journal entry to record the receipt of payment on January 2.
Answer and Explanation:
The journal entries are shown below:
On Dec 3
Account receivable Dr $492,200
To Sales Revenue $492,200
(being the goods sold on credit)
Cost of goods sold Dr $325,100
To Inventory $325,100
(being the cost of the merchandise is recorded)
On Dec 8
Sales Returns and Allowances $22,900
To Accounts Receivable $22,900
(Being the sales return & allowance is recorded)
On Dec 13
Cash $459,914
Sales Discounts (2% of $469,300) $9,386
To Accounts Receivable ($492,200 - $22,900) $469,300
(being cash receipt is recorded)
On Jan 2
cash Dr ($492,200 - $22,900) $469,300
To account receivable $469,300
(being cash receipt is recorded)
As a manager of a medium sized manufacturing organization, you have noticed productivity has steadily gone down recently. You have made a study and discovered the team is lacking motivation. Invoking any two theories you have learnt explain how you would go about re-energizing the workers to regain and even surpass the previous levels of productivity.
Answer: give them bonuses for work complete.
Explanation:people like money
Jacobi Supply Company recently ran into certain financial difficulties that have resulted in the initiation of voluntary settlement procedures. The firm currently has $150,000 in outstanding debts and approximately $75,000 in liquidatable short-term assets. Each creditor will be paid 50 cents on the dollar immediately, and the debts will be considered fully satisfied. Indicate whether the plan is an extension, a composition, or a combination of the two. Indicate the cash payments and timing of the payments required of the firm under the plan.
Answer: Composition
Explanation:
The company owes $150,000 and would pay $0.50 on every dollar immediately.
The cash payment required of the company would therefore be:
= Amount of debt in $ - Amount to be paid per dollar.
= 150,000 * 0.5
= $75,000
Timing of payment is immediately.
A composition refers to an agreement between a debt and its creditors that would allow it to pay off part of its debt in lieu of the total value. This is usually done when the debt risks being insolvent or bankrupt but can still pay off part of its debt.
The agreement would enable it pay off some of the debt and the entire debt would be written off. The benefit to the debtor is that they avoid bankruptcy and the benefit to the creditor is that they get more than they would have gotten had bankruptcy been declared.
A composition is what happened here as a part of debt was paid to satisfy the full thing.
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
A company that has never previously issued securities registered with the Securities and Exchange Commission, can register in a State by:
Answer:
C. II and III
Explanation:
These are the options for the question
I Filing
II Coordination
III Qualification
A. I only
B. II only
C. II and III
D. I, II, III
The Securities and Exchange Commission (SEC) can be regarded as an oversight agency of U.S. government, which responsible for regulation of securities markets as well as protection of investors. civil actions can be taken by SEC against lawbreakers, they aworks hand in hand along with Justice Department on criminal cases. For a company to register under them , there must be Coordination and Qualification. It should be noted that company that has never previously issued securities registered with the Securities and Exchange Commission, can register in a State by Coordination and Qualification
A company produces two products, A and B, which have profits of $9 and $7, respectively. Each unit of product must be processed on two assembly lines, where the required production times are as follows. Product Hours/Unit Line 1 Line 2 A 12 4 B 4 8 Total hours 60 40 a) Formulate a linear programming model to determine the optimal product mix that will maximize profit. b) Transform this model into standard form.
Answer:
Following are the solution to the given question:
Explanation:
The decision variable of the green is defined in the given graph:
unit production of [tex]A = X_1[/tex]
unit production of [tex]B = X_2[/tex]
The objective function of the yellow is defined in the given graph:
maximize profit:
[tex]\to 9X_1 + 7X_2[/tex]
Using the excel: [tex]C10 = SUM(C8:C9)[/tex]
Constraints:
1)
For Line 1: maximum 60 hours
[tex]\to 12X_1 + 4X_2 \leq 60, \ \ in \ excel: D4 \leq 60[/tex]
2)
For Line 2: maximum 40 hours
[tex]\to 4X_1 + 8X_2 \leq 40, in\ \ excel: F4 \leq 40[/tex]
3) [tex]X_1,X_2 \geq 0[/tex]
by solve the value we get [tex]X_1 = 4, X_2 = 3,[/tex] maximum profit [tex]= 57[/tex]
For point b:
[tex]maximize: 9X_1 + 7X-2\\\\subject\ \ to:\\\\12X_1 + 4X_2 \leq 60\\\\4X_1 + 8X_2 \leq 40\\\\X1,X2 \geq 0[/tex]
Inventory records for Marvin Company revealed the following: Date Transaction Number of Units Unit Cost Mar. 1 Beginning Inventory 1,000 $ 7.20 Mar. 10 Purchase 600 7.25 Mar. 16 Purchase 800 7.30 Mar. 23 Purchase 600 7.35 ________________________________________ Marvin sold 2,300 units of inventory during the month. Cost of goods sold assuming FIFO would be:
Answer:
$16,660
Explanation:
FIFO method assumes that the units to arrive first will be sold first. Hence the valuation of cost of goods sold is based on earlier prices.
Cost of goods sold = 1,000 x $ 7.20 + 600 x 7.25 + 700 x 7.30
= $16,660
Therefore,
Cost of goods sold assuming FIFO would be: $16,660.
You inherit $10,000 with the stipulation that for the first year the money must be invested in two stocks paying 6% and 11% annual interest, respectively. How much should be invested at each rate if the total interest earned for the year is to be $900
Answer:
5000 at 6%
6000 at 11%
Explanation:
Given that :
Total principal = 10000
Let :
Principal invested in business A = x
Principal invested in business B = y
Interest = Principal * rate * time
(x * 6% * 1) + (y * 11% * 1) = 900
0.06x + 0.11y = 900 - - - - (1)
x + y = 10000 - - - (2)
From (2)
x = 10000 - y
Put x = 10000 - y in (1)
0.06(10000 - y) + 0.11y = 900
600 - 0.06y + 0.11y = 900
600 + 0.05y = 900
0.05y = 900 - 600
0.05y = 300
y = 300 / 0.05
y = 6000
x = 10000 - y
x = 10000 - 6000
x = 5000
Roak Company and Clay Company are similar firms that operate in the same industry. Clay began operations 2 years ago and Roak started 5 years ago. In the current year, both companies pay 7% interest on their debt to creditors. The following additional information is available. Roak Company Clay Company Current Yr 1 Yr Ago 2 Yrs Ago Current Yr 1 Yr Ago 2 Yrs Ago Total asset turnover 4.6 4.3 4.5 3.0 3.0 2.6 Return on total assets 9.0% 12.6% 13.2% 5.9% 5.6% 5.3% Profit margin ratio 3.9% 4.0% 3.8% 5.8% 6.0% 5.9% Sales $485,000 $455,000 $471,000 $285,000 $245,000 $185,000 1. (a) Which company has the better profit margin
Answer: Clay Company
Explanation:
Based on the information given, the current, previous year and two previous years beforehand profit margins of Clay company are greater than the corresponding profit margins of Roak company.
This means that Clay company has a better profit margin and shows that they retain a higher percentage of their revenue after costs are taken out as opposed to Roak company.
Contingency planning is also known as Group of answer choices a trend analysis. scenario planning and scenario analysis. organizational opportunities. strategic planning. scenario goal-setting and plans.
Answer:
scenario planning and scenario analysis.
Explanation:
Planning can be defined as the process of developing organizational objectives and translating them into action plans or courses of action.
This ultimately implies that, planning is a strategic technique used by organizations to make an aggregate plan for its manufacturing (production) process typically ahead of time, in order to have an idea of the level of goods that are to be produced and what resources are required so as to reduce the total cost of production to its barest minimum.
Contingency planning is also known as scenario planning and scenario analysis.
Basically, a contingency planning is a type of plan that is typically designed by a business firm to take into account a possible future circumstance or event based on a forecast.
The Merchandise Inventory account on a classified balance sheet is reported in the: Multiple choice question. current assets section plant assets section long-term investments section intangible assets section
Answer: Current Assets section
Explanation:
Merchandise inventory is a current account because it is expected that the inventory will be sold off during the period and won't go into the other period. It will therefore be placed in the current assets section.
As a current asset, when new inventory is purchased, the merchandise inventory account id debited to show that it has increased and when inventory is sold, the account is credited to show its decrease.
Answer: The Merchandise Inventory account on a classified balance sheet is reported in the: current assets section.
Explanation: read blue highlight in attachment
Second Company's preferred stock is 8%, cumulative. A provision of the stock agreement specifies that the stock must be redeemed at face value in five years. Required It appears that the loan payable of First Company and the preferred stock of Second Company are very similar. What are the differences between the two securities
Answer and Explanation:
In a normally way, the loan payable for the first company and the second company preferred stock displayed very same to each other but still has some differences that are as follows:
a. The loan payable is the liability where the company is bound to pay together with the interest within the prescribed time period
b. The dividend is an expense that could arise at the time when the dividend is declared
c. There is no liability when the dividend until declared but in the case of the interest, the liability arise as soon when the loan is given
d. The loan payable should be the right that against the assets but for the same there is no right provided to the shareholders until the company declared the dividend
The benchmark for the profitability index (PI) is the:
Dmitri loves watching Downton Abbey on his local public TV station, but he never sends any money to support the station during its fundraising drives. Economists would call Dmitri a . True or False: The government cannot solve the problem caused by people like Dmitri. True False True or False: The private market can solve this problem by broadcasting Downton Abbey on cable TV, since then the good would be excludable and thus no longer a public good. True False
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.
Spotify just paid a cash dividend of $1 per share. Investors require a 16% return from investments such as this. If the dividend is expected to grow at a steady 6 percent per year, what is the current value of the stock
Answer:
$10.60
Explanation:
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
1(1.06) / 0.16 - 0.06
1.06/0.10 = 10.60
If policy makers want to decrease real GDP by $100 billion and the marginal propensity to consume is 0.6, they should _____ government purchases of goods and services by _____.
a. decrease; $100 billion
b. decrease; $60 billion
c. decrease; $40 billion
d. increase; $100 billion
The ________ phase of the customer relationship management process is where organizational learning occurs based on customer response to the implemented strategies and programs.
Answer:
The analysis and refinement phase of the customer relationship management process is where organizational learning occurs based on customer response to the implemented strategies and programs.
Answer: analysis and refinement
Forte Co., had 5,900 units of work in process on April 1 that were 70% complete. During April, 18,000 units were started and as of April 30, 5,400 units that were 40% complete remained in production. How many units were completed during April
Answer:
18,500 units
Explanation:
We simply use the physical units to determine the units completed
Units completed = Units in opening inventory + units started - units in ending inventory
therefore,
Units completed = 5,900 + 18,000 - 5,400 = 18,500
therefore,
Units completed during April amount to 18,500
Find the EAR in each of the following cases (Use 365 days a year. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.): 9%
Answer and Explanation:
The computation of the effective annual rate in each of the following cases are
1.
Effective annual rate = [(1+annual percentage rate ÷ period)^period]- 1
= (1 +0 .09 ÷ 4)^4 - 1
= 9.31%
2.
Effective annual rate = [(1+annual percentage rate ÷ period)^period]- 1
= (1 + 0.16 ÷ 12)^12-1
= 17.23%
3.
Effective annual rate = [(1+annual percentage rate ÷ period)^period]- 1
= (1 + 0.12 ÷ 365)^365-1
= 12.75%
4 .
Effective annual rate = [(e)^Annual percentage rate]-1
e=2.71828
So,
=[(2.71828)^0.11]-1
= 11.63%
A nonprofit organization aids the unemployed by supplementing their incomes by $5,000 annually, while they seek new employment skills. The organization has fixed costs of $200,000 and the budgeted appropriation for the year totals $700,000. How many individuals can receive financial assistance this year
Answer:
100
Explanation:
Calculation to determine How many individuals can receive financial assistance this year
Using this formula
Numbers of individuals=Total budgeted appropriation-Fixed costs/Incomes
Let plug in the formula
Numbers of individuals=700,000-200,000/5000
Numbers of individuals=500,000/5000
Numbers of individuals=100
Therefore How many individuals can receive financial assistance this year will be 100
On the product continuum, a system falls in the area of low volume and low standardization, but it is NOT at the extreme left (lowest) point. Based on this, which process is recommended for producing the system
Answer: Batch
Explanation:
Batch processing refers to the method whereby high-volume, and repetitive data jobs are being run. The batch method enables the users to be able to process data when there's availability of computing resources and there's minimal user interaction.
From the question, since the system falls in the area of low volume and low standardization, but isn't at the extreme left (lowest) point, then the batch processing is recommended.
Charu Khanna received a Form 1099-B showing the following stock transactions and basis during 2019 Stock Date Purchased Date Sold Sales Price ($) Cost Basis ($) 4,000 shares Green Co. 06/04/07 08/05/19 12,000 3,000 500 shares Gold Co. 02/12/17 09/05/19 54,000 62,000 5,000 shares Blue Co. 02/04/08 10/08/19 18,000 22,000 100 shares Orange Co. 11/15/18 07/12/19 19,000 18,000 None of the stock is qualified small business stock. The stock basis was reported to the IRS. Calculate Charu's net capital gain or loss using Schedule D and Form 8949. (Click done and save once the forms are completed) Submit your forms below.
Answer:
Charu Khanna
The Net capital loss is:
= $2,000.
Explanation:
a) Stock Transactions and Data during 2019:
Stock Date Date Sold Sales Price ($) Cost Basis ($)
Purchased
4,000 shares Green Co. 06/04/07 08/05/19 12,000 3,000
500 shares Gold Co. 02/12/17 09/05/19 54,000 62,000
5,000 shares Blue Co. 02/04/08 10/08/19 18,000 22,000
100 shares Orange Co. 11/15/18 07/12/19 19,000 18,000
Total $103,000 $105,000
Net capital loss:
Long-term capital loss = $3,000
Short-term capital gain = $1,000
Net capital loss = $2,000 ($3,000 - $1,000)
Under normal conditions (60% probability), Financing Plan A will produce a $30,000 higher return than Plan B. Under tight money conditions (40% probability), Plan A will produce $40,000 less than Plan B. What is the expected value of return
Answer:
the expected value of return is $2,000
Explanation:
The computation of the expected value of return is shown below:
= Given percentage of amount + (given percentage of amount)
= 60% of $30,000 + (40% of -$40,000)
= $18,000 - $16,000
= $2,000
hence, the expected value of return is $2,000
The same should be considered and relevant
Presented below are incomplete manufacturing cost data.
Determine the missing amounts for three different situations.
Direct Materials Used Direct Labor Used Factory Overhead Total Manufacturing Costs
(1) $42,700 $64,200 $52,500 $enter a dollar amount
(2) $enter a dollar amount $78,100 $144,000 $298,000
(3) $57,400 $enter a dollar amount $113,000 $314,000
Answer and Explanation:
The computation of the missing amount is as follows:
As we know that
The total manufacturing cost = Direct Materials Used + Direct Labor Used + Factory Overhead
So,
(1)
= $42,700 + $64,200 + $52500
= $159,400
(2)
= $298,000 - $78,100 - $144,000
= $75,900
(3)
= $314,000 - $57,400 - $113,000
= $143,600
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%
