Answer:
11.86%
7.13%
19.95%
8.97%
Explanation:
interest rate = [tex]\frac{future value}{present value}}^{\frac{1}{n} } - 1[/tex]
(317/181)^ (1/5) - 1 = 11.86%
1080/335)^(1/17) - 1 = .13%
(185,382/48,000)^(1/13) - 1 = 19.95%
(531,618 / 40,353)^(1/30) - 1 = 8.97%
The interest rate in the 1 case is 5.01%, 2 case is 5.79%, 3 case is 8.05%, 4 case is 10.60%.
What is interest rate?An interest rate is the amount of interest owed per period, as a quotient of the amount lent, deposited, or borrowed.
Computation of the interest rates :The formula for future value is:
[tex]\text{FV}= \text{PV} \ (1+r)^n[/tex]
where,
PV=present value
r=interest rate
n =number of periods/ years
FV = future value.
Then, the formula for finding r is :
[tex]\text{FV}= \text{PV} \ (1+r)^n\\\\r= (\dfrac{\text{FV}}{\text{PV}})^\dfrac{1}{\text{n}-1}[/tex]
case1:put the above formula in case 1 we get:
[tex]r= (\dfrac{\text{\$231}}{\text{\$190}})^\dfrac{1}{4}-1}\\\\r= (\dfrac{\text{\$231}}{\text{\$190}})^{0.25-1}\\\\r=(1.21578947)^{0.25-1}\\\\r=1.05006116 -1\\\\r=0.05006116\times100\\\\r=5.01%[/tex]
case2:Put the above formula in case 2 we get:
[tex]r= (\dfrac{\text{\$854}}{\text{\$310}})^\dfrac{1}{18}-1}\\\\r= (\dfrac{\text{\$854}}{\text{\$310}})^{0.0555-1}\\\\r=(2.75483871)^{0.0555-1}\\\\r=1.05785304 -1-1\\\\r=0.05785304\times100\\\\r=5.79%.[/tex]
case3:Put the above formula in case 3 we get:
[tex]r= (\dfrac{\text{\$1,48,042}}{\text{\$34,000}})^\dfrac{1}{19}-1}\\\\r= (\dfrac{\text{\$1,48,042}}{\text{\$34,000}})^{0.0526-1}\\\\r=(4.35417647)^{0.0526-1}\\\\r=1.08045444 -1\\\\r=0.08045444\times100\\\\r=8.05%[/tex]
case4:Put the above formula in case 4 we get:
[tex]r= (\dfrac{\text{\$412,862}}{\text{\$36,261}})^\dfrac{1}{25}-1}\\\\r= (\dfrac{\text{\$412,862}}{\text{\$36,261}})^{0.04-1}\\\\r=(12.4127958)^{0.04-1}\\\\r=1.10599913 -1\\\\r=0.10599913\times100\\\\r=10.60%.[/tex]
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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
Classified stock differentiates various classes of common stock, and using it is one way companies can meet special needs such as when owners of a start-up firm need additional equity capital but don't want to relinquish voting control.A. TrueB. False
Answer: True
Explanation:
Classified stocks are referred to as the stocks of a publicly-traded company which possess different classes of stocks. Classified shares typically has some special privileges, like the dividend rights and the enhanced voting rights.
The use of classified stock allows the founders of a company to have control over the company despite not having to own the majority of the common stock. Therefore, the correct option is True.
Effects of recognizing accrued interest on financial statements LO 9-1
Bill Darby started Darby Company on January 1, Year 1. The company experienced the following events during its first year of operation:
1. Earned $1,300 of cash revenue.
2. Borrowed $2,400 cash from the bank.
3. Adjusted the accounting records to recognize accrued interest expense on the bank note. The note, issued on September 1, Year 1, had a one-year term and an 10 percent annual interest rate.
Required:
a. What is the amount of interest payable at December 31, Year 12?
b. What is the amount of interest expense in Year?
c. What is the amount of interest paid in Year?
d. Use a horizontal statements model to show how each event affects the balance sheet income statement, and statement of cash flows.
Answer:
Darby Company
a. The amount of the interest payable at December 31, Year 1 is $80.
b. The amount of the interest expense in Year 1 is $80.
c. The amount of interest paid in Year 1 is $0.
d. Horizontal Statements Model:
Balance Sheet Income Statement Statement of
Cash Flows
Assets = Liabilities + Equity Income = Revenue - Expenses
1. +$1,300 = 0 + $1,300 $1,300 = $1,300 OA cash inflow
2. +$2,400 = $2,400+ 0 FA cash inflow
3. 0 = $80 + ($80) ($80) = 0 - ($80) None
$3,700 = $2,480 + $1,220 $1,220 = $1,300 - $80
Explanation:
a) Data and Calculations:
1. Cash $1,300 Revenue $1,300
2. Cash$2,400 10% Bank Note Payable $2,400
3. Interest Expense $80 Interest Payable $80 )$2,400 * 10% * 4/12)
Explain why production and logistics decisions are of central importance to many multinational businesses.
Explanation:
This is due to the fact that the MNC must choose where to manufacture products in order to get the optimum mix of productivity and transportation costs. Firms must decide which nation or countries they will produce in. They must, however, consider the difficulties of transporting commodities from one nation to another.
Assume that the Peanut Division of Trail Mix Foods wants to purchase an additional 20,000 pounds of raisins from the Raisin Division. Raisin will be able to increase its profit by accepting any transfer price above:
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
Cost of direct materials used in production $18,573 Direct labor 23,083 Factory overhead 33,632 Work in process inventory, March 1 24,104 Work in process inventory, March 31 18,188 Finished goods inventory, March 1 23,172 Finished goods inventory, March 31 26,346 a. Determine the cost of goods manufactured. $fill in the blank 1 b. Determine the cost of goods sold.
Answer:
cost of goods manufactured= $81,204
Explanation:
Giving the following information:
Cost of direct materials used in production $18,573
Direct labor 23,083
Factory overhead 33,632
Work in process inventory, March 1 24,104
Work in process inventory, March 31 18,188
To calculate the cost of goods manufactured, we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 24,104 + 18,573 + 23,083 + 33,632 - 18,188
cost of goods manufactured= $81,204
The process mapping is a
____ diagram.
Answer:
I hope u understand and thank you for your questions
Sheffield Corp. estimates its sales at 240000 units in the first quarter and that sales will increase by 24000 units each quarter over the year. They have, and desire, a 25% ending inventory of current quarter's sales in units. Each unit sells for $35. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Production in units for the third quarter should be budgeted at
Answer:
Sheffield Corp.
The Production in units for the third quarter should be budgeted at:
= 294,000 units.
Explanation:
a) Data and Calculations:
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Sales units 240,000 264,000 288,000 312,000
Ending inventory 60,000 66,000 72,000 78,000
Units available for sale 300,000 330,000 360,000 390,000
Less Beginning inventory 0 60,000 66,000 72,000
Production units 300,000 270,000 294,000 318,000
The practice of intentionally targeting borrowers in poor or underserved areas with expensive high-cost loans is known as:
Answer:
Reverse redlining
Explanation:
Reverse redlining means the practice that target the neighborhood specially the non-white for the greater prices or lended the non-fair terms like lending used for predatory with respect to the subprime mortgage
So as per the given situation, it is the reverse redlining as it is targetted to the borrowers or the areas having high cost loans
So, the same should be considered
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
Key Company acquires 60, 10%, 5 year, $1,000 Community bonds on January 1, 2012 for $61,250. This includes a brokerage commission of $1,250. The journal entry to record this investment includes a debit to
Answer: Debt investment for $61250
Explanation:
Since we are given the information that Key Company acquires 60, 10%, 5 year, $1,000 Community bonds on January 1, 2012 for $61,250, the journal entry to record this investment will be:
Dr Debt investment $61250
Cr Cash $61250
Therefore, the journal entry to record this investment includes a debit to Debt investment for $61250
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
Suppose the U.S. foreign assets are 67 percent of the U.S. GDP, and the U.S. foreign liabilities are 95 percent of the U.S. GDP. Moreover, suppose that 66 percent of U.S. foreign assets are denominated in foreign currencies, while all liabilities to foreigners are denominated in U.S. dollars. How will a 13 percent depreciation of the dollar affect foreigners' net foreign claims on the U.S. measured in U.S. dollars (as a percent of U.S. GDP)
Answer:
8.58% of US GDP is the answer for the required question.
Explanation:
US Foreign Assets = 67% of US GDP
US Liabilities = 95% of US GDP
66% of US Foreign Assets = Foreign Currencies
All Liabilities to Foreigners = US Dollars.
Depreciation rate = 13%
Solution:
Consider the following formula for this problem:
Change in external wealth in US dollar = (Change in foreign assets in dollars) - (Change in foreign liabilities in US dollars)
Liabilities are already denominated in dollars in our instance, but assets are not. As a result, we'll use the formula above to calculate the dollar value of the foreign assets. However, because the dollar value of net external assets fluctuates, we must also consider the rate of depreciation.
Change in dollar value of foreign currency denominated asset = rate of depreciation x Share of the foreign currency
Share of the foreign Currency = 66%
Rate of Depreciation = 13%
= 0.13 x 0.66 = 0.0858 = 8.58%
Hence,
8.58% of US GDP is the answer for the required question.
Introduction to the future value of money Aa Aa Under the concepts of the time value of money, you can determine the future value of an amount invested today that will earn a given interest rate over a given amount of time. This technique can be used to calculate the future value of (1) a single receipt or payment made or (2) a series of receipts or payments Dakota and Gabriella are sitting together, with their notebooks and textbooks open, at a coffee shop. They've been reviewing the latest lecture from Dr. Phillips's financial management class by asking each other questions. Today's topic addressed the calculation of future values for both simple and compound interest-earning accounts. Complete the missing information in the conversation that follows. Round your final answer to all computations to two decimal places. However, if you compute any interest factors as an intermediate step in your calculations, round them to four decimal places Dakota So, why is it important to be able to calculate the future value of some amount invested? Gabriella First, remember that the amount invested is usually called and the amount earned during the investment period is called calculate a future value so that you can know in advance what a given amount of principal will be worth after earning a specified It is important to be able to for a known Dakota OK, I understand that, and I know the amount of principal invested today can be called the value of the investment, whereas the amount realized after the passage of t period of value. But what causes the present and future values to be different time is called its values? Gabriella Two things cause the present and future values to be different amounts. First, the earned during the investment period causes the future value to be greater than, equal to, or less than the present value. Second, the method used to calculate the interest earned-that is, whether the account pays amount by which the future value differs from the present value interest-determines the
Determine whether each of the following statements is true, false or uncertain, and brieflyjustify your answer (a few sentences). No credit will be given for unsupported answers.1. The optimal tariff for a large open economy is 0.2. Multinational firms are important primarily in labor-intensive industries.3. Horizontal FDI is more likely to occur when trade costs are low but plant-level economiesof scale are high.4. For a small open economy, import tariffs and import quotas have identical effects onprices, welfare, and import levels.5. The median voter theory has been very successful at explaining actual trade policyoutcomes.
Answer:
1) False
2) Uncertain
3) False
4) False
5) True
Explanation:
1) Optimal tariff for a Large open economy is not zero ( 0 ) and this is because a large open economy has control over interest rates both domestically and in a larger scale, and its engaged in exports and imports trades with other economies of the world. hence its Optimal tariff should be > 0
2) The Importance of Multinational firms primarily in labor-intensive industries is Uncertain because Multinational firms can have a positive effect on labor by providing them with better wages and it can also affect labor negatively by laying off incompetent workers in the long run
3) Horizontal FDI is less likely to occur when the trade costs are low but plant-level economies of scale are high because lower trade costs will lead to a vertical FDI and not horizontal FDI
4) In an open economy the effects of import tariffs and import quotas does not have same effect on prices and import levels . reduction in import quota reduces import levels while increase in tariffs affects pricing of goods and services
5) True because increase in inequality and a country's endowment been held constant will raise trade barriers in a capital abundant economy and vice versa for less capital abundant economy .
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:
How can indirect taxes affect consumer spending
Answer:
Indirect tax increases will push up prices, decrease consumption and hence reduce the effects of negative externalities such as damage to the environment.
Indirect taxes are placed on goods and services that raise the price for the consumer to pay more for the item.
Due to an increase in final prices at which goods and services are passed on to end-users, the consumers would have to settle for lesser quantities. As a result, the consumer would now be able to afford the reduced portion of goods or services with reduced resources than he would have been able to.
Which one of the following statements is true regarding financial slack? Financial Slack:_________.
a. allows firms to take advantage of good investment opportunities
b. is always associated with high leverage
c. reduces agency problems for the firm
d. increases the need for managers to seek external financing
After visiting several automobile dealerships, Richard selects the used car he wants. He likes its $14,400 price, but financing through the dealer is no bargain. He has $3,500 cash for a down payment, so he needs an $10,900 loan. In shopping at several banks for an installment loan, he learns that interest on most automobile loans is quoted at add-on rates. That is, during the life of the loan, interest is paid on the full amount borrowed even though a portion of the principal has been paid back. Richard borrows $10,900 for a period of four years at an add-on interest rate of 12 percent. What is the total interest on Richard's loan? What is the total cost of the car?
Answer:
Richard
a. The total interest on Richard's loan is:
= $5,232.
b. The total cost of the car is:
= $19,632.
Explanation:
a) Data and Calculations:
Cost of car selected = $14,400
Down payment on car = 3,500
Loan obtained = $10,900
Interest rate = 12% add-on
Period of loan = 4 years
Total interest on the loan = $5,232 ($10,900 * 12% * 4)
Total cost of the car = $19,632 ($14,400 + $5,232)
b) Richard will be paying annual interest of $1,308 for four years, which will total $5,232 since interest is paid on the full amount borrowed for each year, despite the fact that some portion of the principal has been repaid.
International trade currently involves about ______________ worth of goods and services moving around the globe.
Answer:
$20 trillion
Explanation:
International trade can be regarded as exchange of capital as well as goods, and services between different international borders/ territories. This is so since there would always be a need or want for a particular goods or services. In most countries,gross domestic product are been represented. Types of international trade are;
1)Export Trade
2)Entrepot Trade.
3)Import Trade
It should be noted that International trade currently involves about $20 trillion worth of goods and services moving around the globe.
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
Blum Company produces three products: A, B, and C from the same process. Joint costs for this production run are $2,100. Pounds Sales price per lb. at split-off Disposal cost per lb. at split-off Further processing per pound Final sales price per pound A 800 $6.50 $3.00 $2.00 $7.50 B 1,100 8.25 4.20 3.00 10.00 C 1,500 8.00 4.00 3.50 10.50 If the products are processed further, Blum Company will incur the following disposal costs upon sale: A, $3.00; B, $2.00; and C, $1.00. Refer to Blum Company. Using a physical measurement method, what amount of joint processing cost is allocated to Product A (round to the nearest dollar)
Answer:
$416
Explanation:
Calculation to determine the amount of joint processing cost that is allocated to Product A
First step is to determine the split-off Total
Yards Sales price
at split-off Total
A 800 *$6.50= $5,200
B 1,100* $8.25= $9,075
C 1,500*$8.00=$12,000
Total $26,275
Now let determine the amount of joint processing cost that is allocated to Product A
Product A joint processing cost=($5,200/$26,275) * $2,100
Product A joint processing cost=$416
Therefore Using a physical measurement method, what amount of joint processing cost is allocated to Product A is $416
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
A firm has an equity beta of 1.2, the risk-free rate is 3.4 percent, the market return is 15.7 percent, and the pretax cost of debt is 9.4 percent. The debt-equity ratio is .47. If you apply the common beta assumptions, what is the firm's asset beta
Answer:
0.82
Explanation:
Calculation to determine the firm's asset beta
Using this formula
Firm's asset beta=Equity beta/(1+/D/E)
Let plug in the formula
Firm's asset beta=1.2/(1+0.47)
Firm's asset beta=1.2/1.47
Firm's asset beta=0.816
Firm's asset beta=0.82 (Approximately)
Therefore the firm's asset beta is 0.82
monthly deposits are made into an account paying % nominal interest compounded monthly. If the objective of these deposits is to accumulate $ by the end of the year, what is the amount of each deposit?
Answer:
$1433.28
Explanation:
Calculation to determine the amount of each deposit
Using this formula
Future value of annuity=P*((1+r)^n-1)
Where,
Annual interest rate = 6%
Monthly interest rate (r) = 0.5%
Future value of annuity = $100,000
Number of years = 5
Number of deposits (n) = 60
Let plug in the formula
$100,000=P*((1+0.005)^60/0.005
=$100,000/69.77
=P$1433.28
Therefore the amount of each deposit is =$1433.28
A résumé that emphasizes the candidate's directly applicable skills,
achievements, and abilities is
Answer: Combination resume
Explanation:
A combination resume combines a person's skills and abilities as well as what they have accomplished so far in their lives. This includes work experience, education and volunteer work.
This is the kind of resume that employers prefer because it shows them whether a person would be suitable for a job based on their skills as well as their work experience.
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
