The following information was available for the year ended December 31, 2016

Sales $260,000
Net income 38,340
Average total assets 560,000
Average total stockholders' equity 315,000
Dividends per share 1.23
Earnings per share 3.00
Market price per share at year-end 24.60

Required:
a. Calculate margin, turnover, and ROl for the year ended December 31, 2016.
b. Calculate ROE for the year ended December 31, 2016.

Answers

Answer 1

Answer:

A. Margin 14.75%

Turnover 0.46 times

ROI 6.85%

B. ROE 12.17%

Explanation:

A. Calculation to determine the margin, turnover, and ROl for the year ended December 31, 2016.

Calculation for MARGIN

Using this formula

Margin=Net income/Sales

Let plug in the formula

Margin=$38,340/$260,000

Margin=0.1475*100

Margin=14.75%

Calculation for TURNOVER

Using this formula

Turnover=Sales /Average total assets

Let plug in the formula

Turnover=$260,000/$560,000

Turnover=0.46 times

Calculation for ROI

Using this formula

ROI=Net income/Average total assets

Let plug in the formula

ROI=$38,340/$560,000

ROI=0.0685*100

ROI=6.85%

Therefore the margin is 14.75%, turnover is 0.46 times and ROl is 6.85% for the year ended December 31, 2016.

B. Calculation to determine the ROE for the year ended December 31, 2016.

Using this formula

ROE=Net income /Average total stockholders' equity

Let plug in the formula

ROE=$38,340/$315,000

ROE=0.1217*100

ROE=12.17%

Therefore the ROE for the year ended December 31, 2016 is 12.17%


Related Questions

Kỳ hạn ghép lãi 3 tháng, lãi xuất công bố 12%/năm. Hỏi lãi xuất bao nhiêu %/kỳ 3 tháng?

Answers

Answer:

Mỗi loại hình dịch vụ gửi tiết kiệm mà ngân hàng có công thức tính lãi suất khác nhau. Mức lãi suất tiết kiệm thông thường sẽ do ngân hàng đưa ra và tuân thủ theo các quy định của ngân hàng Nhà Nước. Cùng tìm hiểu cách tính lãi suất ngân hàng và công thức lãi kép nhanh nhất.

GHI Corporation, a California corporation, has a six-person board. At a regular board meeting, only two directors attend. No notice was sent to any of the directors. The two attending call directors Alice and Bob and put them on a conference call. The four talk about the corporation buying Blackacre and then all agree to a resolution for GHI to buy Blackacre from Third Party. The Bylaws of GHI state that an action of the board requires the consent of a majority of the directors present at a meeting, and that a quorum is a majority of the authorized directors.
Select one:
a. the purchase is authorized because a quorum was present and a majority of those present approved the action.
b. the purchase is not authorized, since all real estate transactions require shareholder approval
c. the purchase is not authorized because prior written notice must be sent to each director
d. the purchase is not authorized because a quorum was not present at the board meeting
e. Two of the above are correct.

Answers

Answer:

a. the purchase is authorized because a quorum was present and a majority of those present approved the action.

Explanation:

going by the bye laws of GHI state, board action requires that majority of the members of the board are present and give consent in the meeting. here in this question, we have a 6 member board. Although only two of the board members are physically present, through conference call Alice and Bob increased the number to 2 when they joined in. Therefore the number of board members at this meeting is 4, then the requirement has been met. So since this 4 agreed to the purchase, it is authorized and valid since a quorum was present and a majority of them agreed to the action. option a is correct

The correct statement is a. the purchase is authorized because a quorum was present and, a majority of those present approved the action.

The quorum required by the Bylaws of GHI is for a majority of directors to be present, and in this case, four directors were present (two physically and two by conference call).

The Bylaws of GHI specify that every action of the directors should be supported by a majority present at a meeting. We can conclude that the purchase is authorized by the majority (100%).

Thus, the purchase of Blackacre by GHI is authorized.

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describe the term marginal cost?​

Answers

Answer:

In economics, the marginal cost of production is the change in total production cost that comes from making or producing one additional unit. To calculate marginal cost, divide the change in production costs by the change in quantity.

Answer:

The cost of production is marginal. Fixed and variable costs included. With regard to fixed costs, this is only calculated at the marginal cost of production is to be expanded. In contrast, marginal costs always include variable costs.

Explanation:

THE IMPORTANCE OF MARGINAL COST:

In economics, marginal costs are important as they help companies to maximize profits. When marginal costs are equal to marginal income, we have so-called profit maximization. In this respect, the cost of producing a further product is exactly the same as the sales of the company. That is, the company does not make money at that point anymore.

As seen from the below marginal costs curve, marginal costs begin to decrease as the company benefits from scale savings. Marginal costs can however increase with businesses declining in productivity and suffering from scale disadvantages. Costs are increasing and they ultimately receive marginal income.

It could be because the company becomes too big and inefficient, or because the management problem gets less productive and demotivated. Whatever the reason, companies may have to face up to rising costs and stop production if their income is identical to the marginal price.

Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the equipment given up were $34,000 (original cost of $86,000 less accumulated depreciation of $52,000) and $45,000, respectively. Assume Calaveras paid $6,000 in cash and the exchange lacks commercial substance. At what amount will Calaveras value the pickup trucks? How much gain or loss will the company recognize on the exchange?

Answers

Answer:

1. $51,000

2.$11,000 Gain

Explanation:

(1) Calculation to determine At what amount will Calaveras value the pickup trucks

Using this formula

Trucks value =Fair value + Cash paid

Let plug in the formula

Trucks value=$45,000+$6,000

Trucks value=$51,000

Therefore Calaveras value the pickup trucks at $51,000

(2) Calculation to determine How much gain or loss will the company recognize on the exchange

Using this formula

Gain or loss on exchange =Fair value - Book value

Let plug in the formula

Gain or loss on exchange=$45,000-$34,000

Gain or loss on exchange=$11,000 Gain

Therefore the company will $11,000 GAIN recognize on the exchange

A company's beginning Work in Process inventory consisted of units that were 90 % complete with respect to direct labor A total of were finished during the period and remaining in Work in Process inventory were 40 % complete with respect to direct labor at the end of the period . Using the weighted average method the equivalent units of production with regard to direct labor were :

Answers

Answer: 109,800 units

Explanation:

Equivalent Units of Production with respect to Direct Labor can be calculated as:

= Units completed during the period + Equivalent ending Work in Process Inventory (1)

Equivalent ending Work in Process Inventory = 32,000 ending units * 40% completion with respect to direct labor

= 12,800 units

EUP direct labor = 97,000 + 12,800 (1)

= 109,800 units

WHAT IS THE SUPPLY CHAIN FRAMEWORK'S IN OKADA? WHAT IS THE MODEL ?

Answers

It’s complex same as the framework

Jiminy’s Cricket Farm issued a bond with 25 years to maturity and a semiannual coupon rate of 4 percent 3 years ago. The bond currently sells for 108 percent of its face value. The company’s tax rate is 22 percent.

Answers

Answer:

Pretax cost of debt = 3.48%

Aftertax cost of debt = 2.71%

Explanation:

Missing word "What is the pretax cost of debt and aftertax cost of debt"

Coupon rate = 4%

YTM = 22

Nper = YTM*2 = 44

PMT = 1000*4%/2 = 20

FV = 1000

PV = 1080

Rate = rate(nper, pmt, -pv, fv)

Rate = rate(44, 20, -1080, 1000)

Rate = 0.0174

Rate = 1.74%

Pretax cost of debt = Rate * 2

Pretax cost of debt = 1.74% * 2

Pretax cost of debt = 3.48%

Aftertax cost of debt = [3.48% * (1 - 0.22)]

Aftertax cost of debt = 3.48% * 0.78

Aftertax cost of debt = 0.0348 * 0.78

Aftertax cost of debt = 0.027144

Aftertax cost of debt = 2.71%

The Pizza Company is considering a new three-year expansion project. The key data are shown below:
The company hired a consulting firm to help evaluate the project and paid the consulting fee of $60,000. The company owns the space. If company did not invest in the project, it can receive after-tax rental fee for $300,000 per year for 3 years. However, if the
company invested in the project, it will use the space for the project.
 The fixed cost to produce pizza is required at $150,000 per year.
 It is estimated that 50,000 units will be sold in the first year and that 40,000 units and 30,000 units will be sold in the second and third years respectively.
 Each pizza is expected to sell for $25 and the production cost will be $15 per unit.
 The sales price and variable cost should increase with inflation. Expected inflation rate per year is 5%.
 The project requires an initial investment in working capital of $500,000, which will be required in each year at 10% of revenue in the following year.
 The purchase of the machinery at the start of the project is $1,000,000. The shipping and installation cost are $200,000. The machinery will be depreciated straight-line to zero. It is estimated that the machinery can be sold at the end of the project for $250,000.
 To finance the project, the company would need to take a one-million dollar loan at 8% interest rate p.a. from HSBC over the life of the project. Annual interest expense is $80,000.
 The corporate tax rate is 34%.
 The Pizza Company is evaluating its cost of capital under alternative financing arrangements. In consultation with the consulting firm, the Pizza Company expects to be able to issue new Debt at Par with a coupon rate of 8% (coupons paid annually) and to issue new preferred stock with a $4 per share dividend at $32 a share. The common stock of the Pizza Company is currently selling for $22 a share while its book value is $6. The Pizza Company expects to pay a total
dividend of $525,000 for its 200,000 common shares outstanding next year. Market analysts foresee a growth in dividends of the company at the rate of 4% per year. The Pizza Company raises capital using 30% bond, 20% preferred stock, and 50% common stock
a. What is the cost of capital (WACC) of the Pizza Company?
b. Calculate the NPV of the project using the cost of capital calculated in part (a).
Should the project be accepted?

Answers

Answer:

dividend of $525,000 for its 200,000 common shares outstanding next year. Market analysts foresee a growth in dividends of the company at the rate of 4% per year. The Pizza Company raises capital using 30% bond, 20% preferred stock, and 50% common stock

a. What is the cost of capital (WACC) of the Pizza Company?

b. Calculate

The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6:

a. Cash balance according to the company's records at August 31, $19,140.
b. Cash balance according to the bank statement at August 31, $19,950.
c. Checks outstanding, $3,890. Deposit in transit not recorded by bank, $3,120.
d. A check for $340 in payment of an account was erroneously recorded in the check register as $430.
e. Bank debit memo for service charges, $50.

Required:
Journalize the entries that should be made by the company that (a) increase cash and (b) decrease cash.

Answers

Answer:

Looking at the data, there are only a few entries that increase and decrease cash.

The entry that increases cash is:

A check for $340 in payment of an account was erroneously recorded in the check register as $430.

This increases cash because the payment was higher than it should be so when we adjust it, the cash will increase to reflect that more of it was spent than it should have been.

The increase is:

= 430 - 340

= $90

Date                 Account Title                                          Debit               Credit

August 20Y6   Cash                                                         $90

                         Accounts Payable                                                            $90

The entry that decreases cash is:

Bank debit memo for service charges, $50.

Bank is charging us for its services. This is an expense that reduces the cash balance.

Date                 Account Title                                          Debit               Credit

August 20Y6   Bank charges                                           $50

                         Cash                                                                                  $50

To determine the scope of a bookkeeping clean-up engagement, you are reviewing the Client Overview tab for a potential client. You notice that there is a large amount in the Opening Balance Equity account.
Which 3 reasons could be causing this balance?
A. The client added transactions in the Banking Center without assigning an account to them
B. Opening balance for an inventory item was entered during the setup process
C. The client entered an Opening Balance when creating an Other Current Asset account
D. Opening balances were included when importing customers using the Import data tool
E. The client forced a bank reconciliation when the difference was not zero

Answers

Answer: B. Opening balance for an inventory item was entered during the setup process.

D. Opening balances were included when importing customers using the Import data tool.

E. The client forced a bank reconciliation when the difference was not zero.

Explanation:

The reasons that can be attributed to the large amount in the Opening Balance Equity account will be:

• Opening balance for an inventory item was entered during the setup process.

• Opening balances were included when importing customers using the Import data tool.

• The client forced a bank reconciliation when the difference was not zero.

The 3 reasons could be causing this balance is that:

The client has added transactions in the Banking Center without assigning an account to them.

The Opening balances for one or more Product/Service items were entered during the setup process.

Opening Balances were included when importing Customers, using the Import Data tool.

The Opening Balance Equity account value most times is often equal to the prior year Retained Earnings.

if a balance in the Opening Balance Equity account does exists and if the balance is equal to the prior year’s Retained Earnings, the Opening Balance Equity may be closed into Retained Earnings.

Conclusively, if a balance remains on the Balance Sheet for Opening Balance Equity, it is advisable to review the individual transactions.

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A five-year note payable would appear on the balance sheet as a(n) a.disclosure in the notes only. b.long-term liability for the entire amount owed. c.current liability for any portion due within one year. d.intangible asset.

Answers

Answer: current liability for any portion due within one year

Explanation:

Notes payable are referred to as the written agreements whereby one party agrees to pay the other party a certain amount of money.

It should be noted that on the balance sheet, notes payable will appear as liabilities. In a situation when the amount is due within a year, then it's considered to be current liabilities while it's regarded as a long-term liability when it's more than a year,

It should be noted that a five-year note payable would appear on the balance sheet as current liability for any portion due within one year.

The difference between the actual labor rate multiplied by the actual labor hours worked and the standard labor rate multiplied by the standard labor hours is the:_________.
a. labor price variance.
b. total labor variance.
c. labor efficiency variance.
d. labor quantity variance.

Answers

Answer:

c. labor efficiency variance.

Explanation:

The labor efficiency variance can be regarded as variance that is been based on the quantity of labor hours that is been used in production. It is the difference that exist between actual number of direct labor hours that one worked as well as the budgeted direct labor hours that is required to have worked based on the standards.

It should be noted that the difference between the actual labor rate multiplied by the actual labor hours worked and the standard labor rate multiplied by the standard labor hours is the labor efficiency variance.

Jamison Company uses the total cost method of applying the cost-plus approach to product pricing. Jamison produces and sells Product X at a total cost of $1,000 per unit, of which $680 is product cost and $320 is selling and administrative expenses. In addition, the total cost of $1,000 is made up of $570 variable cost and $430 fixed cost. The desired profit is $200 per unit.

Required:
Determine the markup percentage on total cost.

Answers

Answer:

the markup percentage on total cost is 20 %

Explanation:

Mark up = Profit / Total Cost x 100

where,

Total Cost = $1,000

Profit = $200

therefore,

Mark up = $200 / $1,000 x 100 = 20 %

thus,

the markup percentage on total cost is 20 %

An example of a good that is excludable is: _________
a) an outdoor sculpture visible from the street.
b) a television set.
c) broadcast television.
d) an aerial fireworks display.

Answers

Answer:

b) a television set

Explanation:

Excludable goods can be regarded as a s private goods, unlike non-excludable goods which are public goods. Instance of this is that

everyone can utilize public road, but going to cinema cannot be for everyone the way they please, this is because, ticket need to be bought to get access, as ticket is bought, this can excludes somebody else since there is because limited seat. It should be noted that good can be regarded as a excludable, in situation whereby supplier of that good successfully prevent individual that do not pay from consuming it. An example of a good that is excludable is television set

Alexandria's Dance Studio is currently an all-equity firm with earnings before interest and taxes of $338,000 and a cost of equity of 14.2%. The tax rate is 34%. Alexandria is considering adding $400,000 of debt with a coupon rate of 7% to her capital structure. The debt will be sold at par value. What is the levered value of the equity?

Answers

Answer:

$1,306,986

Explanation:

Calculation to determine What is the levered value of the equity

First step is to calculate the VL

VL = {[$338,000 × (1 - .34)] / .142} + (.34 × $400,000)

VL= $1,706,986

Now let calculate the levered value of the equity (VE)

VE = $1,706,986 - $400,000

VE = $1,306,986

Therefore the levered value of the equity is $1,306,986

The Texas Consolidated Electronics Company is contemplating a research and development program encompassing eight research projects. The company is constrained from embarking on all projects by the number of available management scientists (40) and the budget available for R&D projects (S300,000). Further, if project 2 is selected, project 5 must also be selected (but not vice versa). Following are the resources requirement and the estimated profit for each project.
Project Expense Management Estimated Profit
($1,000s) Scientists required (1,000,000s)
1 50 6 0.30
2 105 8 0.85
3 56 9 0.20
4 45 3 0.15
5 90 7 0.50
6 80 5 0.45
7 78 8 0.55
8 60 5 0.40
Formulate the integer programming model for this problem and solve it using the computer.

Answers

Answer:

Answer

Explanation:

The Texas Consolidated Electronics Company is contemplating a research and development program encompassing eight research projects. The company is constrained from embarking on all projects by the number of available management scientists (40) and the budget available for R&D projects (S300,000). Further, if project 2 is selected, project 5 must also be selected (but not vice versa). Following are the resources requirement and the estimated profit for each project.

Project Expense Management Estimated Profit

($1,000s) Scientists required (1,000,000s)

1 50 6 0.30

2 105 8 0.85

3 56 9 0.20

4 45 3 0.15

5 90 7 0.50

6 80 5 0.45

7 78 8 0.55

8 60 5 0.40

Formulate the integer programming model for this problem and solve it using the computer.

Exercise 9-15A (Static) Using the current ratio to make comparisons LO 9-7 The following information was drawn from the balance sheets of the Kansas and Montana companies: Kansas Montana Current assets $ 59,000 $ 78,000 Current liabilities 40,000 43,000 Required a. Compute the current ratio for each company. b. Which company has the greater likelihood of being able to pay its bills

Answers

Answer:

a. 1.5  and 1.8

b. Montana

Explanation:

Below is the calculation for the current ratio:

a. Formula used, Current ratio = Current assets / Current liabilities

Current ratio of Kansas = 59000 / 40000 = 1.5

Current ratio of Montana = 78000 / 43000 = 1.8

b. The company that has a higher current ratio will have a greater likelihood to pay bills so Montana is the correct answer.

Excel technology is trying to increase its cash flow cycle. Sales in 2019 was $3,250,000 ( all on credit) and its net profit margin was 7%. Its inventory turnover was 6.0 times during the year. and its DSO was 41days. Its annual cost of goods sold was $1,800,000. The firm had fixed assets $535,000, its payable deferral period is 45 days. Calculate Excel technology's cash conversion cycle

Answers

Answer:

56.83 days

Explanation:

Calculation to determine Excel technology's cash conversion cycle

First step is to determine the Days inventory outstanding

Days inventory outstanding = 365 / Inventory turnover

Days inventory outstanding= 365 /6.0

Days inventory outstanding= 60.83 days

Now let determine the Cash conversion cycle

Cash conversion cycle = Days inventory outstanding + Days sales outstanding - Days payable outstanding

Cash conversion cycle=60.83 + 41 - 45

Cash conversion cycle=56.83 days

Therefore Excel technology's cash conversion cycle is 56.83 days

You just bought a rent house in Fayetteville, AR, for $100,000, with $20,000 down and the balance in the form of a 15-year amortization mortgage at a fixed rate of 5.0% and monthly payments. Your principal, interest, property tax, and insurance, plus all costs of maintaining the property, are covered by your rent. a) How much are your monthly mortgage payments? b) The University grows, and prices appreciate at the rate of 6% per year, what will the value of the house be in 6 years? What will the outstanding principal of the debt be (assume no extra payments)? What will the value of the equity be? c) Using CAGR, what is your rate of return on your equity? Why is it so high compared to housing market price appreciation? d) At this CAGR rate, how long will it take to double your money? e) What shape of yield curve is often (but not always) followed by an economic downturn and stock market correction/crash?

Answers

Answer:

Please find the attached file for the complete solution:

Explanation:

Julio is in the 32% tax bracket. He acquired 9,000 shares of stock in Gray Corporation seven years ago at a cost of $20 per share. In the current year, Julio received a payment of $135,000 from Gray Corporation in exchange for 4,500 of his shares in Gray. Gray has E & P of $1,000,000. What income tax liabil-ity would Julio incur on the $150,000 payment in each of the following situations? Assume that Julio has no capital losses.

a. The stock redemption qualifies for sale or exchange treatment.
b. The stock redemption does not qualify for sale or exchange treatment.
c. How would your answer to parts (a) and (b) of Problem 49 differ if Julio were a corporate shareholder rather than an individual shareholder and the stock ownership in Gray Corporation represented a 25% interest?

Answers

Answer:

example below

Explanation:

Russell Preston delivers parts for several local auto parts stores. He charges clients $0.75 per mile driven. Russell has determined that if he drives 3,000 miles in a month, his average operating cost is $0.55 per mile. If he drives 4,000 miles in a month, his average operating cost is $0.50 per mile. Russell has used the high-low method to determine that his monthly cost equation is total cost = $600 + $0.35 per mile.
Required:
1. Determine how many miles Russell needs to drive to break even k-Even Miles Miles.
2. Assume Russell drove 1,800 miles last month. Without making any additional calculations, determine whether he earned a profit or a loss last month.
3. Determine how many miles Russell must drive to earn $1,000 in profit.

Answers

Answer:

Russell Preston

1. The miles Russell needs to drive to break even is:

= 1,500 miles.

2. If Russel drove 1,800 miles last month, he earned a profit.

3. To earn a profit of $1,000, the miles Russell must drive are:

= 4,000 miles

Explanation:

a) Data and Calculations:

Selling price per mile driven = $0.75

Average operating cost for driving 3,000 miles = $0.55 per mile

Total operating cost for 3,000 miles = $1,650 ($3,000 * $0.55)

Average operating cost for driving 4,000 miles = $0.50 per mile

Total operating for 4,000 miles = $2,000 (4,000 * $0.50)

Total cost function = $600 + $0.35 per mile using the high-low method

Variable cost per mile = $0.35

Fixed cost per month = $600

Contribution margin per mile = $0.40 ($0.75 - $0.35)

Contribution margin ratio = 0.5333

To break-even, Russel must drive = $600/$0.40 = 1,500 miles

At this mileage, his total costs = $1,125 ($600 + $0.35 * 1,500)

At this mileage, his total revenue = $1,125 ($0.75 * 1,500)

To earn a profit of $1,000, Russell must drive = ($600 + $1,000)/$0.40

= 4,000 miles

Poe Company is considering the purchase of new equipment costing $89,500. The projected annual cash inflows are $39,700, to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of an annuity of 1 and present value of an annuity for different periods is presented below. Compute the net present value of the machine.
Periods Present Value of 1 at 10% Present Value of an Annuity of 1 at 10%
1 0.9091 0.9091
2 0.8264 1.7355
3 0.7513 2.4869
4 0.6830 3.1699
A. $(22,101).
B. $(36,345).
C. $22,101.
D. $54,919.
E. $36,345.

Answers

Answer: E. $36,345

Explanation:

Net present value = Present value of inflows - Cost of equipment

The inflow is an annuity as it is a constant amount so is calculated as:

Present value of inflows = Inflow * Present value interest factor of an annuity, 10%, 4 years

= 39,700 * 3.1699

= $125,845.03

Net present value = 125,845.03 - 89,500

= $36,345.03

Makers Corp. had additions to retained earnings for the year just ended of $205,000. The firm paid out $185,000 in cash dividends, and it has ending total equity of $4.90 million. The company currently has 100,000 shares of common stock outstanding.
1. What are earnings per share?2. What are dividends per share? 3. What is the book value per share? 4. If the stock currently sells for $68 per share, what is the market-to-book ratio?5. What is the price-earnings ratio?6. If the company had sales of $3.41 million, what is the price-sales ratio?

Answers

Answer:

Waka Waka Wa e e

Explanation:

Queen Shakira

Find the APR, or stated rate, in each of the following cases (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.): Stated Rate (APR) Number of Times Compounded Effective Rate (EAR) % Semiannually 10.7 % Monthly 11.6 Weekly 9.3 Infinite 13.0

Answers

Answer:

EAR = (1+APR/m)^m - 1 where m=compounding periods  

1.  0.116 = (1+APR/2)^2 - 1

(1+0.116) = (1+APR/2)^2

(1.116)^(1/2) = 1+APR/2

APR = [(1.107)^(1/2) - 1]*2

APR = [1.05214067501 - 1]*2

APR = 0.05214067501 * 2

APR = 0.10428135002

APR = 10.43%

2. 0.116 = (1+APR/12)^12-1

APR = [(1+0.116)^(1/12)-1]*12

APR = [1.116^(1/12) - 1] * 12

APR = [1.00918785692 - 1] * 12

APR = 0.00918785692 * 12

APR = 0.11025428304

APR = 11.05%

3. 0.093  = (1+APR/52)^52 - 1

APR = [(1+0.093)^(1/52) - 1] * 52

APR = [1.093^(1/52) - 1] * 52

APR = [1.0017115825  - 1] * 52

APR = 0.0017115825 * 52

APR = 0.08900229

APR = 8.90%

Widgets, Inc., based in the United States, makes small parts for the auto industry. Over the past couple of years, Widgets has laid off many workers due to auto industry outsourcing. The federal government has imposed tariffs to discourage outsourcing. This is called

Answers

Answer:

This is called:

Trade Restriction

Explanation:

Outsourcing to foreign markets can cripple domestic industries, increase local unemployment, and impose trade imbalance.  To check excessive outsourcing, the federal government imposes tariffs.  Such a trade restriction is considered necessary within the domestic economy.  But it may be regarded as a restriction of free trade within the international community.

The policy adopted by the federal government that imposed tariffs to discourage outsourcing is known as Protectionism policy.

A Protectionism policy are adopted or enforced to protect the domestic workers or industries against external bodies.

Hence, the policy adopted by the federal government that imposed tariffs to discourage outsourcing is known as Protectionism policy.

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Checking accounts at a local bank carry an average balance of $3000. The bank turns over its balance 3 times a year. On average, how many dollars flow through the bank each month?

Answers

Answer:

75,000

Explanation:

I think? not shure

Flexible Budgeting
At the beginning of the period, the Fabricating Department budgeted direct labor of $9,280 and equipment depreciation of $2,300 for 640 hours of production. The department actually completed 600 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting. Round your labor rate to nearest cent.
$
Flexible Budgeting
At the beginning of the period, the Grinding Department budgeted direct labor of $159,600 and property tax of $56,000 for 7,600 hours of production. The department actually completed 9,500 hours of production.
Determine the budget for the department, assuming that it uses flexible budgeting.
$

Answers

Answer and Explanation:

The calculation is given below:

Fabricating department

The budgeted cost is

= $9,280 ÷ 640 hours × 600 hours + $2,300

= $8,700 + $2,300

= $11,000

Grinding department

= $159,600 ÷ 7,600 hours × 9,500 hours + $56,000

= $199,500 + $56,000

= $255,500

In this way the budgeted cost should be determined

You have decided to invest in two bonds. Bond X is an n-year bonod with semiannual coupons, while bond Y is zero-coupon bond, which is re- deemable in 2 years. The desired yield rate is the same for both bonds. You also have the following information:

Bond X:
Par value is 1000.
The ratio of the semi-annual bond rate to the desired semi-annual yield rate, that is is r/i 1.03125.
b. The present value of the redemption amount is 381.50.

Bond Y:
Redemption value is the same as that of bond X.
Price to yield is 647.80.

What is the price of bond X?

Answers

Answer:

The price of the bond X is 1055.09.

Explanation:

The price of Bond X can be determined as follows:

Let:

R = Present value of the Redemption amount of X and Y

i = yield of both Bond X  and Bond Y

For Bond X, we have:

381.5 = R / (1+i)n ………………… (1)

For Bond Y, we have:

647.80. = R/(1+i)(n/2) ……………….. (2)

Use equation (2) to divide equation (1), we have:

381.5/647.8 = 1/ (1+i)(n/2)  ……………………….. (3)

0.588916332201297= 1/ (1+i)(n/2)

(1+i)(n/2) = 1 / 0.588916332201297

(1+i)(n/2) = 1.69803407601573

647.80 = R / 1.69803407601573

R = 647.80 * 1.69803407601573 = 1,099.99, or 1,100

Now, also let:

r = coupon rate of Bond X

P= present value of Cash flows of Bond X  

Therefore, we have:

P = 1000 * (r/2) / (1+i)0.5 + 1000*(r/2)/ (1+i)1+....+1000 * (r/2) /(1+i)n+ 1100/(1+i)n

It can be observed that we have 2n terms indicating present value of 2n semiannual coupon payments and last term is present value of Redemption amount.

Applying GP formula, we have:

P = 1000 *(r/2) * (1- (1+i)-n) / ((1+i)(1/2) -1) + 1100 * (1+i)-n

Looking at equation (3), we it can be observed that we can have:

(1+i)-(n/2) = 381.5/647.8 = 0.588916

Therefore, we have:

(1+i)-n = 0.5889162= 0.346822

By employing the Binomial approximation, we have:

(1+i)(1/2)= 1+i/2+... very small terms = 1 + i/2

This indicates that:

(1+i)(1/2)-1 = i/2

If we substitute this into the price equation, we will have

P = 1000 *(r/2) * (1-0.346822) / ( i/2) + 1100 * 0.346822 = 1000 * (r/i) * 0.653178 + 381.504

Since r/i = 1.03125, we have:

P = 653.178 * 1.03125 + 381.504 = 1055.09

Therefore, the price of the bond X is 1055.09.

In a safety stock problem where both demand and lead time are variable, demand averages 150 units per day with a daily standard deviation of 16, and lead time averages 5 days with a standard deviation of 1 day. What is the standard deviation of demand during lead time

Answers

Answer: 154 units

Explanation:

Standard deviation of demand during lead time = √[(Mean lead time * Standard deviation of demand ²) + (Mean demand * standard deviation of lead time²)]

= √ [ ( 5 * 16²) + (150² * 1²)]

= √[ 1,280 + 22,500]

= 154.20765

= 154 units

Consider a $6500 piece of machinery, with a 5-year depreciable life and an estimated $1200 salvage value. The projected utilization of the machinery when it was purchased, and its actual production to date, are as follows:

Year Projected Production (Tons) Actual Production (Tons)
1 3500 3000
2 4000 5000
3 4500 [Not]
4 5000 Yet
5 5500 [Known]

Compute the depreciation using :
a. straight line
b. sum of years digits
c. double declining balance
d. Unit of production (for the first 2 years only)
e. Modified accelerated cost recovery system

Answers

Answer:

Hence the answer is given as follows,

Explanation:

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