Answer: $75
Explanation:
Using the Gordon Growth Model:
Price of stock = Next year dividend / (Required return - growth rate)
Growth rate is 0% as dividend does not change per year.
Price of stock = 6 / 8%
= $75
Complete each of the following contribution format income statements by supplying the missing numbers.
a. b. c. d.
Sales revenue $ $485,168 $ $686,356
Variable expenses 232,804 102,728
Contribution margin 130,532 171,860 430,808
Fixed expenses 87,912 146,396
Operating income 21,597
Income taxes 25,184 21,532 60,859
Net income $15,118 $
$64,596 $182,577
Answer and Explanation:
The missing amount is as follows:
a.
Sales revenue = Variable expense + contribution margin
= $232,804 + $130,532
= $363,336
Fixed expense = Contribution margin - operating income
= $130,532 - $21,597
= $108,935
Income tax = OPerating income - net income
= $21,597 - $15,118
= $6,479
b.
Variable expesne = sales revenue - contribution margin
= $485,168 - $171,860
= $313,308
Operating income = contribution margin - fixed expense
= $171,860 - $87,912
= $83,948
Net income = operating income - income tax
= $83,948 - $25,184
= $58,764
c.
Operating income = income tax + net income
= $21,532 + $64,596
= $86,128
Contribution margin = Fixed expense + operating income
= $146,396 + $86,127
= $232,524
Sales revenue = variable expense + contribution margin
= $102,728 + $232,524
= $335,252
d.
Variable expense = sales revenue - contribution margin
= $686,356 - $430,808
= $255,548
Operating income = income tax + net income
= $60,859 + $182,577
= $243,436
Fixed expense = Contribution margin- operating income
= $430,808 - $243,436
= $187,372
,
XYZ Ltd produces a product for which the annual demand is 10,000 units. Production averages 100 units per day, while demand is 40 units per day. Holding costs are $2.00 per unit per year, and setup cost is $200.00. If the firm wishes to produce this product in economic batches, what size batch should be used?
Answer: Batch size to be used =Economic batch size of 2,236 units
Explanation:
From the question, we have that
Annual demand (D) = 10,000 units
Setup cost (S) = $200
Holding cost (H) = $2 per unit per year
Daily production (p) = 100 units per day
Daily Demand (d) = 40 units per day
Therefore Economic batch size, Q will be calculated as
Q =[tex]\sqrt{2 x D x S / H x ( 1-d/p }[/tex]
Q= [tex]\sqrt{2 x 10,000 x 200 / 2 x ( 40/100)}[/tex]
Q=[tex]\sqrt{4,000,000/0.8 }[/tex]
Q=[tex]\sqrt{5,000,000}[/tex]
Q=2,236.067 rounded up to 2,236
Economic batch size =2,236 units
Using the data below, compute DEBT RATIO.
Using the data below, compute Return on Equity.
Accounts Payable 800
Accounts Receivable 1,100
Capital Stock 2,000
Cash 50
Cost of Goods Sold 6,000
Inventory 1,500
Long-term Debt 1,820
Net Income 950
Property, Plant, and Equipment (net) 3,000
Retained Earnings 1,030
Sales 10,000
Market value of shares 12,000
Answer:
a. Total Liabilities = Accounts Payable + Long-term Debt
Total Liabilities = 800 + 1,820
Total Liabilities = $2,620
Total Assets = Accounts Receivable + Cash + Inventory + Property, Plant, and Equipment (net)
Total Assets = 1,100 + 50 + 1,500 + 3,000
Total Assets = $5,650
Debt Ratio = Total Liabilities / Total Assets
Debt Ratio = $2,620 / $5,650
Debt Ratio = 0.463717
Debt Ratio = 46.37%
b. Return on Equity = Net Income / Shareholder Equity
Return on Equity = Net Income / (Capital Stock + Retained Earnings)
Return on Equity = $950 / ($2,000+$1,030)
Return on Equity = $950 / $3,030
Return on Equity = 0.31353135
Return on Equity = 31.35%
The HR planning process should be aligned with the strategic process of the organization in general. It will show how HR will contribute to the achievement of goals and objectives the organization has determined as a whole. As part of the planning process, HR should perform a job analysis. To have a better understanding of the job analysis, you should answer all of the following questions for this assignment: Judge the job analysis process of an organization you are familiar with and indicate whether it is an effective one. Judge a job description and job specification for any job selected that was performed with that job analysis process. Indicate how you would improve it and explain its importance.
Answer:
Rating employees according to their performance against the key performance indicators.
Explanation:
HR has responsibility to hire, fire and appraise employees. An employee is appraised after his performance is analyzed. There are certain job specifications which an employee must satisfy in order to stay in the company. This is the main objectives for which a company has hired an employee. If an employee performs beyond expectation the he may qualify for promotions.
The following information was taken from Southgate Industry's cash budget for the month of July: Beginning cash balance $480,000 Cash receipts 304,000 Cash disbursements 544,000 If the company has a policy of maintaining a minimum end of the month cash balance of $400,000, the amount the company would have to borrow is
Answer:
the amount that the company have to borrow is $160,000
Explanation:
The computation of the amount that the company have to borrow is given below:
= Minimum cash balance at end of the month - (beginning cahs balance + cash receipts - cash disbursement)
= $400000 - $(480000+304000-544000)
= $160,000
hence, the amount that the company have to borrow is $160,000
Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,100 units) $ 248,500 $ 35.00 Variable expenses 134,900 19.00 Contribution margin 113,600 $ 16.00 Fixed expenses 55,800 Net operating income $ 57,800 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 50 units? 2. What would be the revised net operating income per month if the sales volume decreases by 50 units? 3. What would be the revised net operating income per month if the sales volume is 6,100 units?
Answer:
1. Particulars Amount
Sales total (7,150 * $35) $250,250
Less: Variable expenses (7,150 * $19) $135,850
Contribution margin $114,400
Less: Fixed expenses $55,800
Net operating income $ 58,600
2. Particulars Amount
Sales total (7,050 * $35) $246,750
Less: Variable expenses (7,050 * $19) $133,950
Contribution margin $112,800
Less: Fixed expenses $55,800
Net operating income $ 57,000
3. Particulars Amount
Sales total (6,100* $35) $213,500
Less: Variable expenses (6,100 * $19) $115,900
Contribution margin $97,600
Less: Fixed expenses $55,800
Net operating income $ 41,800
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
A convertible bond is selling for $967, matures in 15 years, has a $1,000 face value, pays interest semiannually, and has a coupon rate of 8 percent. Similar non-convertible bonds are priced to yield 4.25 percent per six months. The conversion ratio is 20. The stock currently sells for $47.50 a share. Calculate the convertible bond's option value.
a. $2.92.
b. $7.27.
c. $1.48.
d. $2.03.
Answer:
D) $8.95
Explanation:
Calculation to determine the convertible bond's option value.
First step is to calculate the Straight bond value
Straight bond value = [.08($1,000)/2]PVIFA4.25%, 30 + $1,000/1.042530
Straight bond value = $958.05
Second step is to calculate the Conversion value
Conversion value = 20($47.50)
Conversion value = $950
Now let determine the convertible bond's option value using this formula
Bonds Option value = Bond value – MAX[Straight bond value, Conversion value]
Let plug in the formula
Bond Option value = $967 − MAX[$958.05, 950]
Bond Option value =$967-$958.05
Bond Option value = $8.95
Therefore the convertible bond's option value is $8.95
Is investing in stocks something you plan on doing? Why or why not?
Answer:
yea I already do it and mad we 6 million you just have to be smart and not go for short term go for long term growth
The riskfree rate is 2.5% and the excess market return is expected to be 6%. Use the Gordon growth model to obtain the intrinsic value of a firm that has a dividend of $4.95, beta of 1.12, and dividend growth of 5%
Answer:
$366.02
Explanation:
The computation of the intrinsic value per share is as follows;
But before that the required rate of return is
As we know that
Required rate of return = Risk free rate of return + beta × (market rate of return - risk free rate of return0
= 2.5% + 1.12 × (6% - 2.5%)
= 6.42%
Now the intrinsic value per share is
= $4.95 × 1.05 ÷ (6.42% - 5%)
= $366.02
Sort the following scenarios into whether the change in quantity described is caused by a shift in the supply curve or movement along a supply curve.
a. Americans put up their gold and silver jewelry for sale as a result of rising prices
b. A local Fight Club supplies list of its premium quality soap as a result of lower prices
c. Amplitude decides to join the smartphone market
d. After discovering that flash steaming tuna first before using mechanical processes to extract meat removes more tuna flesh, more cans of tuna hit the shelves at all major groceries
Answer:
movement along a supply curve.
movement along a supply curve.
shift of the supply curve
shift of the supply curve
Explanation:
Only a change in the price of a good leads to a movement along the supply curve for that good. If price increases, there is a movement up along the supply curve and if prices decreases, there is a movement down along the supply curve. This is in line with the law of supply.
according to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.
Other factors other than changes in the price of the good leads to a shift of the supply curve. Such factors include :
A change in the number of suppliers a change in the price of substitute goodsA change in the price of factors used in the production process government regulationa. As a result of an increase in the price of gold, there is an increase in the supply of these items. this would lead to a movement up along the supply curve
b. Supply decreases as a result of lower prices. this leads to a movement down along the supply curve
c. there is an increase in the suppliers of smartphones. the supply curve would shift to the right
The answers have been sorted below
1. Americans put up their gold and silver jewelry for sale as a result of rising prices.
Movement along a supply curve2. A local Fight Club supplies list of its premium quality soap as a result of lower prices.
Movement along a supply curve3. Amplitude decides to join the smartphone market.
Shift along a supply curve4. After discovering that flash steaming tuna first before using mechanical processes to extract meat removes more tuna flesh, more cans of tuna hit the shelves at all major groceries.
Shift along a supply curveRead more on a supply curve here:
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Which of the following is an example of investment? A. a person depositing $ 100 a week to her savings account B. a person's annual medical checkup C. the purchase of new buses by Greyhound D. a student increasing his human capital by attending college
Answer:
C. the purchase of new buses by Greyhound
Explanation:
The investment is the amount that should be invested in order to generate the income
So as per the given situation,the option C is correct as if we puchase the new buses so there is a big investment but after investing into it it generated the income on daily basis
So this should be the example of the investment
Kaspar Industries expects credit sales for January, February, and March to be $205,200, $266,800, and $316,800, respectively. It is expected that 75% of the sales will be collected in the month of sale, and 25% will be collected in the following month. Compute cash collections from customers for each month.
Collections from Customers
Credit Sales January February March
January
February
March
Answer:
Results are below.
Explanation:
Giving the following information:
It is expected that 75% of the sales will be collected in the month of sale, and 25% will be collected in the following month.
Sales:
January= $205,000
February= $266,800
March= $316,800
Cash collection January:
Sales in cash from January= 205,000*0.75= 153,750
Total cash collection January= $153,750
Cash collection February:
Sales in cash from February= 266,800*0.75= 200,100
Sales in account from January= 205,000*0.25= 51,250
Total cash collection February= $251,350
Cash collection March:
Sales in cash from March= 316,800*0.75= 237,600
Sales in account from February= 266,800*0.25= 66,700
Total cash collection March= $304,300
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.
The model in which managers use their organization's existing core capabilities to expand into foreign markets is called the
Answer:
international model
Explanation:
In the case when the managers use the core capabilities of the organization in over to diversify into the foreign markets so this we called as the international model. As due to this the organization could capture the foreign market share this result in increased in the sales of the organization
So as per the given situation, the above represent the answer
For each of the following scenarios identify the correct term.
Suppose you are a freshman in college and you have not declared a major. One reason you enrolled at your respective college was the school's vibrant social life. At the same time, you want to balance your academic life because you know that your grades will matter for graduate school or job applications. You decide to forgo partying for two hours to study for an upcoming economics exam.
a. To make that decision you weighed your opportunity cost(s),
You start a part-time job as a package handler at a large delivery company. After training, you start your first shift and your supervisor tells you to unload packages from a single truck. Unfortunately, he tells 5 other people to do the same which causes most of you to stand around and wait for your co-workers to get out of the way. There are several other trucks already on the dock waiting to be unloaded.
b. Which of the following terms best describes what your supervisor has failed at?
a) equity.
b) incentive(s).
c) efficiency.
d. market failure.
c. Your professor is presenting you with_____to major in economics.
You are assigned a final group project for your economics course. One member of your group is really good at finding resources for the project, one is really good at proofreading and editing, and you are really good at making a presentation.
d. Based on this, you know that via___you can complete the project more efficiently than if you all did each part together.
Solution :
a). Opportunity cost
In the field of economics, Opportunity cost may be defined as the loss of a potential gain when some other alternatives are chosen from a given set of opportunities.
b). efficiency
c). Our professor presents us the incentives for major in economics.
d). I can complete the project via specialization more efficiently rather than doing it all each part of the project together.
Weaver Corporation had the following stock issued and outstanding at January 1, Year 1:
1. 70,000 shares of $14 par common stock.
2. 7,500 shares of $100 par, 7 percent, non-cumulative preferred stock.
On June 10, Weaver Corporation declared the annual cash dividend on its 7,500 shares of preferred stock and a $2 per share dividend for the common shareholders. The dividends will be paid on July 1 to the shareholders of record on June 20.
Prepare general journal entries to record the declaration and payment of the cash dividends.
Answer:
Preferred shareholder (7,500*$100)*7% $52,500
Common shareholder (70,000×$2) $140,000
Total dividend $192,500
Date General Journal Debit Credit
10 June Dividend $192,500
To dividend payable $192,500
(To record dividends payable)
20 June No entry required
01 July Dividend payable $192,500
To cash $192,500
(To record dividend payment)
31 Dec Retained earning $192,500
To dividends $192,500
(To close dividend account)
The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.40 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year indefinitely. Investors require a return of 12 percent on the company's stock. a. What is the current stock price
Answer:
Missing word "What will the stock price be in three years?"
a. Current price = D0*(1+g)/(Ke-g)
Current price = 1.4*(1+0.05) / (0.12-0.05)
Current price = 1.4*1.05 / 0.07
Current price = 1.47 / 0.07
Current price = $21
b. Current price = D0*(1+g)/(Ke-g)
Current price = 1.4*(1+0.05)^4 / (0.12-0.05)
Current price = 1.4*1.05^4 / 0.07
Current price = 1.4*1.21550625 / 0.07
Current price = 1.70171 / 0.07
Current price = 24.310143
Current price = $24.31
Job A3B was ordered by a customer on September 25. During the month of September , Jaycee Corporation requisitioned $ 2,300 of direct materials and used $ 3,800 of direct labor The job was not finished by the end of September but needed an additional $ 2,800 of direct materials in October and additional direct labor of $ 6,300 to finish the job . The company applies overhead at the end of each month at a rate of 200 % of the direct labor cost . What is the amount of job costs added to Work in Process Inventory during October
Answer:
Jaycee Corporation
The amount of job costs added to Work in Process in October is:
= $21,700.
Explanation:
a) Data and Calculations:
September 30, Work in Process:
Direct materials $2,300
Direct labor 3,800
Total WIP $6,100
Added in October:
Direct materials 2,800
Direct labor 6,300
Overhead 12,600 $21,700
Total job costs $27,800
The Work in process by October 1 is $6,100. Additional job costs added in October includes Direct materials, labor, and overhead, which totalled $21,700. Therefore, the total job costs for Job A3B is $27,800.
The area of accounting aimed at serving the decision-making needs of internal users is: Group of answer choices External auditing. SEC reporting. Managerial accounting. Financial accounting.
Answer:
Managerial accounting
Explanation:
Managerial accounting can be regarded as accounting practice involving identification as well as measurement and interpretation of financial information and communication of it to managers so that it can be used to achieve organization's goals. It should be noted that the The area of accounting aimed at serving the decision-making needs of internal users is Managerial accounting
Ricky is not in a consumer equilibrium. Given the prices of goods, Ricky has allocated all his income such that his marginal utility per dollar spent is ________ for ________ goods.
Answer:
The options are
A) as small as possible; all
B) equal; all
C) equal; normal
D) maximized; all
The answer is B) equal; all
Ricky not being in a consumer equilibrium and he considering the prices prices of goods means he allocated all his income in such a way that entails his marginal utility per dollar spent is equal for all goods.
This is to ensure that he cuts cost and maximizes his spending power.
Client 5 I am a 45-year-old agricultural scientist. I have been working for years to come up with a natural egg that is free of cholesterol and low in fat. I finally have completed all the tests and have received all the government approvals I need for my new eggs. Up until now, my work has been simple and I have been my own boss. But now I want to launch my new product—Eggs You Can Love—on a national scale.
What type of business organization do you recommend? Why?
(this is for my economics class plz answer as fast as you can)
Answer:
corporation
with a corporation, he would have larger assess to funds needed to grow his business
Explanation:
A publicly owned corporation is a company is a company owned by shareholders. This type of company's shares is freely traded on a stock exchange
Characteristics of A publicly owned corporation
• Limited liability. the liability of owners are limited to the amount invested
• Central management. The company is manged by board of directors and managers and not the shareholders
• the company is a legal entity.
During March, Pendergraph Corporation incurred $65,000 of actual Manufacturing Overhead costs. During the same period, the Manufacturing Overhead applied to Work in Process was $67,000. The journal entry to record the application of Manufacturing Overhead to Work in Process would include a:
Answer: Credit to manufacturing overhead of $67000.
Explanation:
The journal entry to record the application of Manufacturing Overhead to Work in Process would be:
Debit Work in Progress $67000
Credit Manufacturing overhead $67000.
( To record the application of manufacturing overhead to work in process).
Why do people establish their own business?
Answer:
financial freedom
Explanation:
the reasons people start their own business is usually because they desire financial freedom meaning they would like have more disposable resources for themselves.
5.Which of the following is a valid Excel formula?
a) =C4*D4
b) B4*D4
c) Both =C4* and B4*D4
d) Neither =C4* nor B4*D4
Cross Corp. had outstanding 2,000 shares of 11% preferred stock, $50 par. On August 8, 1992, Cross redeemed and retired 25% of these shares for $22,500. On that date, Cross' additional paid-in capital from preferred stock totaled $30,000. To record this transaction, Cross should debit (credit) its capital accounts as follows:
Preferred stock Additional paid-in capital Retained earnings
A. $25,000 $7,500 ($10,000)
B. $25,000
C. ($2,500) $25,000
D. ($2,500)
Answer:
C. ($2,500) $25,000
Explanation:
The computation is shown below:
The Preferred stock should be debited with $25,000 and the net effect on additional paid in capital is $2,500 credit i.e. ($25,000 - $2,500)
So,
Preferred stock $25,000
And, Additional paid in capital ($2,500)
Therefore the option c is correct
And, the same is relevant
Any help 70 points
What would happen to the supply of pizza if more businesses enter the pizza market?
Answer:
increase
Explanation:
ofc since the more pizze businnesses make pizza, the more pizza will be made and sold
Answer:
○increase
Explanation:
of pizza supplies more if more businesses enter the pizza market then the market will have to increase their supplies and staffs.
The June 1 work in process inventory consisted of 5,000 units with $16,000 in materials cost and $12,000 in conversion cost. The June 1 work in process inventory was 100% complete with respect to materials and 50% complete with respect to conversion. During June, 37,500 units were started into production. The June 30 work in process inventory consisted of 8,000 units that were 100% complete with respect to materials and 40% complete with respect to conversion. 3. How many units were completed and transferred to finished goods during the period?
Answer:
The units completed and transferred to finished goods during the period were:
= 34,500 units.
Explanation:
a) Data and Calculations:
Units Materials Cost Conversion Cost Total
Beginning work in process 5,000 $16,000 $12,000 $28,000
Degree of completion of WIP 100% 50%
Units started 37,500
Units available 42,500 (5,000 + 37,500)
Ending work in process 8,000 100% 40%
Units completed 34,500 (42,500 - 8,000)
Equivalent units using the weighted average method:
Materials Conversion
Units completed and transferred out 34,500 (100%) 34,500 (100%)
Ending work in process at June 30 8,000 (100%) 3,200 (40%)
Total equivalent units 42,500 36,700
When a union tries to create negative publicity surrounding an employer's behavior in a labor dispute to get other members of the community (business and financial partners, consumers, politicians, and government) to pressure it to settle, it is known as a(n) ________.
When a union tries to create negative publicity surrounding an employer's behavior in a labor dispute in order to get others to pressure the employer to settle, it is known as a public relations campaign or public relations offensive.
What is a public relation campaign?
A public relations campaign is a strategy used by an organization, such as a union, to create and maintain a positive image or reputation among its stakeholders, such as members of the community, business and financial partners, consumers, politicians, and government. A public relations campaign can involve a variety of tactics, such as media relations, public speaking, social media engagement, and community outreach, to communicate information about the organization and its activities.
The goal of a public relations campaign is to build and maintain a positive reputation and to gain support for the organization's goals and objectives. In the context of a labor dispute, a union might use a public relations campaign to create negative publicity about an employer's behavior in order to pressure the employer to come to a resolution that is favorable to the union.
Learn more about public relation campaign, here:
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"In 2012, Canadian farmers did not suffer from drought conditions that affected the United States, but they did enjoy the higher corn prices. Canadian farmers reacted to the higher price by planting more corn. Suppose that the price of corn increased by 30 percent and the Canadian farmers increased the quantity of corn they supply by 20 percent. The supply of corn is"
Answer: D) inelastic.
Explanation:
To find out the elasticity of the supply of corn, use the Price Elasticity of Supply (PES) formula. The price elasticity of supply shows how much quaintly supplied would change by if there was a change in price.
Price elasticity of supply = Change in quantity supplied / Change in price
= 20% / 30%
= 0.66
When the Price elasticity of supply is less than one, the supply is said to be inelastic. The PES here is less than 1 so corn is inelastic.
