The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $400,000. The Sisyphean Company expects cash inflows from this project as detailed below: Year 1 Year 2 Year 3 Year 4 $157,452.975 / $157,452.975/ $157,452.975/ $157,452.975 The appropriate discount rate for this project is 15%. The internal rate of return (IRR) for this project is closest to ________.

Answers

Answer 1

Answer:

21%

Explanation:

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

Cash flow in year 0 = $-400,000.

Cash flow in year 1 - 4 = $157,452.975

IRR = 21%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  


Related Questions

A borrower takes out a 30-year price level adjusted mortgage loan for $200,000 with monthly payments. The initial interest rate is 4% with 4 points. Assuming that inflation is expected to increase at the rate of 3% for the next 5 years, and a fully amortizing loan is made. What is the expected effective yield to the lender if the loan is repaid in 2 years

Answers

Answer:

Effective yield = 7%

Explanation:

Determine the expected effective yield to the lender if Loan is repaid in 2 years

Effective annual yield =  [tex]( 1 + IRR )^{n-1}[/tex]

n = 12 months

IRR = 0.57%

hence expected effective yield to Lender if Loan is repaid in 2 years

≈ 0.07 = 7%

Use Excel to determine the IRR Function

From the table below the IRR value = 0.57%

Below is  a table showing  the Year and CF values

Year CF

0 -200,000

1 $954.83

2 $954.83

3 $954.83

4 $954.83

5 $954.83

6 $954.83

7 $954.83

8 $954.83

9 $954.83

10 $954.83

11 $954.83

12 $954.83

13 $983.48

14 $983.48

15 $983.48

16 $983.48

17 $983.48

18 $983.48

19 $983.48

20 $983.48

21 $983.48

22 $983.48

23 $983.48

24 $205,538.11

Bingham Company manufactures and sells Product J. Results for last year's manufacture and sale of Product J are as follows:
Sales: 10,000 units at $160 each $1,600,000
Less costs:
Variable production costs 960,000
Sales commissions: 15% of sales 240,000
Salaries of line supervisors 195,000
Traceable fixed advertising expense 180,000
Fixed general factory overhead (allocated to
products on the basis of square feet occupied170,000
Total costs 1,745,000
Net loss ($145,000)
Bingham Company anticipates no change in the operating results for Product J in the foreseeable future if the product is produced. Bingham is re-examining all of its products and is trying to decide whether to discontinue the manufacture and sale of Product J. The company's total fixed factory overhead cost would not be affected by this decision.
Assume that discontinuing Product J would result in a $100,000 increase in the contribution margin of other product lines. How many units of Product J would have to be sold next year for the company to be as well off as if it just dropped Product J and enjoyed the increase in contribution margin from other products?
a. 15,500 units.
b. 11,875 units.
c. 16,125 units.
d. 2,500 units.

Answers

Answer:

Bingham Company

c. 16,125 units.

Explanation:

a) Data and Calculations:

Sales: 10,000 units at $160 each                   $1,600,000

Less costs:

Variable production costs                                  960,000

Sales commissions: 15% of sales                       240,000

Salaries of line supervisors                                 195,000

Traceable fixed advertising expense                 180,000

Fixed general factory overhead, allocated to

products on the basis of square feet occupied 170,000

Total costs                                                         1,745,000

Net loss                                                             ($145,000)

Variable costs:

Variable production costs                 $960,000

Sales commissions: 15% of sales        240,000

Total variable costs =                      $1,200,000

Unit variable cost = $120 ($1,200,000/10,000)

Contribution per unit = $40 ($160 - $120)

Total fixed costs:

Salaries of line supervisors                                 195,000

Traceable fixed advertising expense                 180,000

Fixed general factory overhead, allocated to

products on the basis of square feet occupied 170,000

Total fixed costs = $545,000

Target contribution 100,000

(Traceable fixed cost + Target contribution)/Contribution margin

= $645,000/$40

= 16,125

If a company has goodwill on its​ books, the​ goodwill:

Answers

Mmhm could you pls expand a little more
What does it mean if a company has goodwill?

Goodwill is an intangible asset (an asset that's non-physical but offers long-term value) that arises when another company acquires a new business. Goodwill refers to the purchase cost, minus the fair market value of the tangible assets, the liabilities, and the intangible assets that you're able to identify.

How does goodwill affect a company?

Goodwill has a major impact on value because it reduces the risk that a business' profitability will falter after it changes hands. That goodwill value is simply calculated as the difference between the purchase price of the business and the fair market value of the tangible assets included in the sale.

Learn more about goodwill here: brainly.com/question/25818989

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RecRoom Equipment Company received an $12,600, six-month, 5% note to settle an $12,600 unpaid balance owed by a customer.
The note is accepted by RecRoom on November 1, causing the company to increase its Notes Receivable and decrease its Accounts Receivable.
RecRoom adjusts its records for interest earned to its December 31 year-end.
RecRoom receives the interest on the note's maturity date.
RecRoom receives the principal on the note's maturity date.
Make journal entries:
A) Record the receipt of a note on November 1 for $8,000 to settle an outstanding accounts receivable balance of a customer.
B) Record the interest accrued on the note as of December 31.
C) Record the receipt of the interest on the note’s maturity date.
D) Record the receipt of the payment for the full principal.

Answers

Answer:

A. Dr Notes Receivable $12,600

Cr Cash $12,600

B. Dr Interest Receivable $105

Cr Interest Revenue $105

C. Dr Cash $315

Cr Interest Receivable $105

Cr Interest Revenue $210

D. Dr Cash $12,600

Cr Notes Receivable $12,600

Explanation:

A. Preparation of the journal entry to Record the receipt of a note on November 1

November 1

Dr Notes Receivable $12,600

Cr Cash $12,600

(Being to record the receipt of a note )

B. Preparation of the journal entry to Record the interest accrued on the note as of December 31.

December 31

Dr Interest Receivable $105

Cr Interest Revenue $105

($12,600 x .05 x 2/12= $105)

(Being to record interest accrued on the note)

C. Preparation of the journal entry to Record the receipt of the interest on the note’s maturity date.

Dr Cash $315

($12,600 x .05 x 6/12= $315)

Cr Interest Receivable $105

($12,600 x .05 x 2/12= $105)

Cr Interest Revenue $210

($12,600 x .05 x 4/12= $210)

(Being to record receipt of the interest on the note’s maturity date)

D. Preparation of the journal entry to Record the receipt of the payment for the full principal.

Dr Cash $12,600

Cr Notes Receivable $12,600

(Being to to Record the receipt of the payment for the full principal)

The people responsible for deciding who gets into college are called

Answers

Answer:

College Admmisions!

Explanation:

Hope this helps! Plz marks as brainliest! :)

etaline Corp. uses the weighted average method for inventory costs and had the following information available for the year. Calculate the equivalent units of production for the year: Beginning Work in Process (40% complete, $1,100) 200 units Ending inventory of Work in Process (80% complete) 400 units Total units started during the year 3,200 units

Answers

Answer:

Equivalent units of production= 3,520

Explanation:

Giving the following information:

Ending inventory of Work in Process (80% complete) 400 units

Total units started during the year 3,200 units

To calculate the equivalent units using the weighted-average method, we need to use the following formula:

Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production

Equivalent units of production= 3,200 + (400*0.8)

Equivalent units of production= 3,520

Perion Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 11,500 hours and the total estimated manufacturing overhead was $275,425. At the end of the year, actual direct labor-hours for the year were 11,100 hours and the actual manufacturing overhead for the year was $270,425. Overhead at the end of the year was:

Answers

Answer: $4580 Underapplied

Explanation:

To solve this, we have to calculate the predetermined overhead rate first and this will be:

= Estimated total manufacturing overhead / Estimated total amount of the allocation base

= $275,425 / 11500

= 23.95

Since the actual direct labor-hours for the year were 11,100 hours, the applied overhead will be:

= 11100 × 23.95

= $265845

Since actual manufacturing overhead for the year was $270,425, and the applied overhead was $265845, there's an Underapplied overhead of ($270,425 - $265845) = $4580

Auto parts manufacturer JEG Inc. has a number of vacancies at lower management levels and wants to fill the positions from within the company itself rather than recruit externally. The company plans to e-mail the job specifications to all employees and post the jobs on the company Web site. Which of the following, if true, will weaken the company's decision?

a. All employees do not have equal opportunities to apply for a job.
b. Unqualified applicants will need explanations about why they did not get the job.
c. Job postings prevent some qualified employees from having the opportunity to apply for a particular job.
d. Unqualified employees can find out the qualifications they need to get a particular job.

Answers

Answer:

B)Unqualified applicants will need explanations about why they did not get the job.

Explanation:

From the question we are informed Auto parts manufacturer JEG Inc. who has a number of vacancies at lower management levels and wants to fill the positions from within the company itself rather than recruit externally. The company plans to e-mail the job specifications to all employees and post the jobs on the company Web site. In this case, what could weaken the company's decision, is that Unqualified applicants will need explanations about why they did not get the job.

The decision that unqualified applicants will need explanations about why they did not get the job is one that will weaken the company's stance.

Why is decision making important?

In a firm. it is very crucial to focus on steps that can help in taking the right decisions and this helps between between various favorable options.

A decision-making is very important as its have impact on success or failure of a firm.

Therefore, the Option D is correct.

Read more about decision making

brainly.com/question/1249089

Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: Sales $ 7,500,000 Net operating income $ 600,000 Average operating assets $ 5,000,000 Required: 1. Compute the margin. 2. Compute the turnover. (Round your answer to 1 decimal place.) 3. Compute the return on investment (ROI). (Do n

Answers

Answer:

1. 8%

2. 1.5

3. 12%

Explanation:

1) Computation for the margin

Using this formula

Margin = Net operating income/Sales

Let plug in the formula

Margin= 600000/7500000

Margin = 8%

2) Computation for the turnover

Using this formula

Turnover = Sales/average operating assets

Let plug in the formula

Turnover = 7500000/5000000

Turnover= 1.5

3) Computation for the return on investment (ROI

ROI = 8*1.5

ROI= 12%

Suppose three engineers come to you with a plan for a disruptive, yet-to-be developed software program that seems compelling. They are asking for $10 million, the amount they think they will need over the next three years to reach cash flow positive. They have a pitch deck that includes a proposed deal. They are offering you 25% of the company. The founders own the remaining 75%. You will buy common stock, and are entitled to one of four seats on the board of directors; they hold the other three seats. One slide in the deck contains a detailed prediction of the value of the company. If you invest $10 million, you will own shares that are worth at least $50 million at the end of the third year.

Required:
a. What do you think of this proposed deal?
b. What counteroffer would you make?

Answers

Answer:

Explanation:

The Proposed bargain or deal is supportive of the business visionaries instead of the financial backer(investor) since all the capital is coming from the financial backer and the investor will be receiving just only 25% for the bargain or deal while he faces all the challenges posed or loss of capital. The business visionaries are not placing in any of their own personal capital but only their idea. They likewise have a bigger say in the administration of the business and the financial backer has no power over the choice since he conveys just 25% votes. Consequently, it's not a good bargain or deal for the financial backer considering the risk-reward ratio.

The counter-offer will include raising a proposed equity percent rate to half  (i.e 50%). In addition to that, the financial backer needs to demand another seat on the board with the goal that they have equivalent authority over the administration and its choices. The most reduced the financial backer can go down is equity of 40% stake.

in managing production worker compensation and expenditures for best practice training, the overriding objective of company managers should be to

Answers

Answer:

i am sooooooo sorry im new and i need point and agian i'm so sorry

Explanation:

To attain the lowest possible labor costs per pair produced at each production site, the corporation must minimize labor costs per pair produced at each of its plants.

What is the training objective of production workers?

The overarching goal of firm management should be to obtain the lowest possible labor costs per pair produced at each production facility in controlling production worker remuneration and expenditures for best practice training.

For more information about company expenditures, refer below

https://brainly.com/question/15871053

Vaughn Company's inventory records show the following data: Units Unit Cost Inventory, January 1 11000 $8.80 Purchases: June 18 5000 8.00 November 8 4000 6.00 A physical inventory on December 31 shows 3500 units on hand. Vaughn sells the units for $14 each. The company has an effective tax rate of 18%. Vaughn uses the periodic inventory method. The weighted-average cost per unit is

Answers

Answer:

Vaughn Company

The weighted-average cost per unit is

= $8.04

Explanation:

a) Data and Calculations:

                                  Units    Unit Cost  Total

Inventory, January 1 11,000    $8.80     $96,800

Purchases: June 18  5,000      8.00       40,000

November 8             4,000      6.00       24,000

Total                       20,000                 $160,800

The weighted-average cost per unit = $8.04 ($160,800/20,000)

b) The weighted average method of recording inventory adds up the total units and costs of beginning and current period purchased or manufactured inventory.  The total costs are divided by the total units to obtain the weighted-average cost per unit.

The fact that most medical care purchases are financed through insurance Group of answer choices has no effect on health care consumption because aggregate costs are the same regardless of payment method. reduces the amount of health care consumed by raising the price of additional units of care. has decreased health care costs and therefore reduced aggregate health care expenditures. increases the amount of health care consumed by reducing the price of additional units of care.

Answers

Answer: increases the amount of health care consumed by reducing the price of additional units of care.

Explanation:

When individuals have health insurance, they pay only a certain amount of premiums per period yet when they have a health problem, the insurance company will cover the cost of that problem for the most part.

This means that the insured only have to pay a certain amount for healthcare which reduces their overall cost were they to consume additional units because they would not have to pay for those additional units.

Following are five series of costs A through E measured at various volume levels. Identify each series as either fixed, variable, mixed, step-wise, or curvilinear.
Volume (Units) Series A Series B Series C Series D Series E 0 $ 0 $ 2,400 $ 6,400 $ 0 $ 3,200 400 6,700 2,400 6,400 4,160 3,800 800 7,370 3,400 6,400 8,320 4,400 1,200 8,040 3,400 6,400 12,480 5,000 1,600 9,157 4,400 6,400 16,640 5,600 2,000 10,720 4,400 6,400 20,800 6,200 2,400 15,075 5,400 6,400 24,960 6,800

Answers

Answer:

Series         Nature

Series A      Curvilinear

Series B      Step-wise

Series C      Fixed

Series D      Variable

Series E      Mixed

Explanation:

a) Data and Analysis:

Volume (Units)  Series A   Series B   Series C   Series D   Series E

        0                  $ 0         $ 2,400    $ 6,400     $ 0          $ 3,200

   400                  6,700         2,400       6,400       4,160        3,800

   800                  7,370         3,400        6,400      8,320        4,400

1,200                  8,040         3,400        6,400     12,480       5,000

1,600                  9,157          4,400        6,400     16,640       5,600

2,000                10,720         4,400        6,400    20,800       6,200

2,400                15,075         5,400        6,400    24,960       6,800

b) Further Explanation:

Fixed cost: Series C costs remain fixed no matter the quantity produced.

Variable cost: Series D costs are completely variable, with a unit variable cost of $10.40.

Mixed cost: Series E costs are mixed, with a fixed cost of $3,200 and a variable cost per unit of $1.50.

Step-wise cost: Series B costs increase like a staircase.   They remain fixed within a relevant range but increase after the range is exceeded.

Curvilinear cost: Series A costs are curvilinear or nonlinear, and increases irregularly or inconsistently as the total output increases.

Morganton Company makes one product and it provided the following information to help prepare the master budget for its four months of operations:
(a) The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 8,400, 10,000, 12,000, and 13,000 units, respectively. All sales are on credit.
(b) Forty-percent of credit sales are collected in the month of the sale and 60% in the following month.
(c) The ending finished goods inventory equals 20% of the following month
d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.00 per pound.
Required:
1. Discuss some of the major benefits to be gained from budgeting. Support your answer with suitable example?
2. What are the budgeted sales for July?
3. What are the expected cash collections for July?
4. What are the accounts receivable balance at the end of July?
5. According to the production budget, how many units should be produced in July?

Answers

Answer:

Morganton Company

1. Budgeting increases effective financial management while ensuring proper allocation of scarce resources.  It encourages planning for the future as well as improved business decisions.  It helps management to identify problems before they occur and to develop strategies for solving any problems that may arise.  With budgeting, the organization is in a better position to monitor its overall performance and ensure the achievement of its goals and objectives.  Finally, budgeting increases the motivation to achieve goals for both the management and individual employees.

2. The budgeted sales for July are $10,000.

3. The expected cash collections for July are $9,040.

4. The accounts receivable balance at the end of July are $6,000.

5. According to the production budget, the units produced in July are 1,040 units.

Explanation:

a) Data and Calculations:

Budgeted selling price per unit = $70

                                      June      July       August    September  

Budgeted unit sales     8,400   10,000    12,000       13,000

Cash Collections:

40% month of sale      3,360     4,000      4,800        5,200

60% month following                5,040      6,000        7,200

Total cash collections 3,360     9,040    10,800       12,400

Production costs:

                                      June      July    August    September

Ending Inventory        2,000     2,400     2,600

Cost of goods sold     8,400   10,000    12,000       13,000

Goods available        10,400   12,400    14,600

Beginning Inventory   1,680    2,000      2,400         2,600

Production costs        8,720   10,400    12,200

Unit cost of materials $10         $10          $10   ($2 * 5)

Units produced            872      1,040      1,220

Accounts receivable balance at July end:

June credit sales      $8,400

June cash collection  3,360

July 1 Beginning bal.  5,040

July credit sales       10,000

Cash collections       9,040

Ending balance        6,000

A company purchased a computer system on January 2, 2018 for $1,600,000. The company used the straight-line depreciation method with an estimated useful life of 6 years and a residual value of $130,000. The company prepares financial statements at December 31 Assume the company decides to sell the computer system on July 1, 2020 for $1,000,000 Which of the following statements about the journal entry (or entries) required on July 1 is not correct?
A) The Equipment asset account must be credited for $1,600,000 to record the sale.
B) The loss on the sale is $12,500.
C) Accumulated Depreciation is debited for $612,500 in the entry to record the sale.
D) The depreciation expense must be recorded for 6 months, January 1 to July 1.

Answers

Answer:

B. Loss on sale is $12,500

Explanation:

The equipment purchase on 1st January 2018. The equipment is sold of 1st July 2020. The duration for accumulated depreciation is 2.5 years. Using straight line method the depreciation will be:

[ 1,600,000 - 130,000 ] / 8 years  * 2.5 years = 612,500

The book value for the equipment is 1,600,000 - 612,500 = 987,500

The equipment is sold for 1,000,000

There is gain on disposal of 12,500.

Neon Light Company of Kansas City ships lamps and lighting appliances throughout the country. Ms. Neon has determined that through the establishment of local collection centers around the country, she can speed up the collection of payments by two days. Furthermore, the cash management department of her bank has indicated to her that she can defer her payments on her accounts by one-half day without affecting suppliers. The bank has a remote disbursement center in Florida.
a. If Neon Light Company has $2.55 million per day in collections and $1.11 million per day in disbursements, how many dollars will the cash management system free up? (Enter your answer in dollars not in millions (e.g., $1,234,567).)
b. If Neon Light Company can earn 7 percent per annum on freed-up funds, how much will the income be? (Enter your answer in dollars not in millions (e.g., $1,234,567).)
c. If the total cost of the new system is $430,000, should it be implemented?
Yes
No

Answers

Answer:

a. Cash freed up by cash management:

= Amount received * speed increased by + Amount disbursed by speed reduced by

= 2,550,000 * 2 days + 1,110,000 * 1/2 days

= 5,100,000 + 555,000

= $‭5,655,000‬

b. Interest on freed up cash:

= ‭5,655,000‬ * 7%

= $‭395,850‬

c. No. It is less than the income earned from interest from freed up cash so it should not be implemented as it brings no additional benefit.

A company pays its employees $3,850 each Friday, which amounts to $770 per day for the five-day workweek that begins on Monday. If the monthly accounting period ends on Thursday and the employees worked through Thursday, the amount of salaries earned but unpaid at the end of the accounting period is:

Answers

Answer:

$3080

Explanation:

Calculation to determine what the amount of salaries earned but unpaid at the end of the accounting period is:

Salaries earned but unpaid at the end of the accounting period =3850-$770

Salaries earned but unpaid at the end of the accounting period =$3080

Flow Company has provided the following information for the year ended December 31, 2019: • Cash paid for interest, $20,000 • Cash paid for dividends, $6,000 • Cash dividends received, $4,000 • Cash proceeds from bank loan, $29,000 • Cash purchase of treasury stock, $11,000 • Cash paid for equipment purchase, $27,000 • Cash received from issuance of common stock, $37,000 • Cash received from sale of land with a $32,000 book value, $25,000 • Acquisition of land costing $51,000 in exchange for preferred stock issuance • Payment of a $100,000 note payable by exchanging used machinery with a $77,000 book value and $100,000 fair value How much was Flow's net cash flow from financing activities? A net outflow of $51,000. A net inflow of $29,000. A net outflow of $53,000. A net inflow of $49,000.

Answers

Answer:

A net inflow of $49,000.

Explanation:

The Cash flow from Financing Activities section shows the cash resulting from sourcing finance and repayments thereoff.

Cash flow from Financing Activities

Cash paid for dividends                                            ($6,000)

Cash proceeds from bank loan                               $29,000

Cash purchase of treasury stock                             ($11,000)

Cash received from issuance of common stock    $37,000

Net Cash from Financing Activities                         $49,000

therefore,

The result from Financing Activities shows a net inflow of $49,000.

Gerrell Corp. is comparing two different capital structures. Plan I would result in 18,000 shares of stock and $95,000 in debt. Plan II would result in 14,000 shares of stock and $190,000 in debt. The interest rate on the debt is 5 percent. Compare both of these plans to an all-equity plan assuming that EBIT will be $90,000. The all-equity plan would result in 22,000 shares of stock outstanding. Assuming that the corporate tax rate is 40 percent, what is the EPS for each of these plans

Answers

Answer:

Plan I

Number of share outstanding = 18,000

Value of debt = $95,000

Interest on debt = $95,000*5% = $4,750

EBIT = $90,000

Net Income = ($90,000 - $4,750)*(1 - 40%) = $85,250*60% = $51,150

EPS in case of plan I = $51,150 / 18,000 = $2.84.

Plan II

Number of share outstanding = 14,000

Value of debt = $190,000

Interest on debt = $190,000*5%  = $9,500

EBIT = $90,000

Net Income = ($90,000 - $9,500)*(1 - 40%) = $80,500*60% = $48,300

EPS in case of plan II = $84,300 / 14,000 = $3.45

All equity Plan

Net Income = $90,000 * (1 - 40%) = $54,000

EPS in case of all equity plan = $54,000 / 22,000 = $2.45.

The same question stem will be used in the next 5 questions. Question stem: Assume that banks hold 7 percent excess reserves, the currency to deposit ratio is 15 percent, and the required reserve ratio is 10 percent. Suppose that the Federal Reserve purchases 250 million dollars worth of bonds from the public. First question for this stem: What is the value of the deposit multiplier

Answers

Answer: 10

Explanation:

The Deposit multiplier is a number that enables us calculate the maximum total amount of money that can be generated from deposits in a bank after the bank has left a portion of its deposits as required reserves.

= 1 / Required reserve ratio

= 1 / 10%

= 10

Suppose the demand for a product is normally distributed with a mean of 2300 and a standard deviation of 800. Suppose that the company ordered 2200 units. Under this situation, what would be the probability that the company will leave 100 units or more of demand unsatisfied? A. Below 20% B. Between 20.01% and 40% C. Between 40.01% and 60% D. Between 60.01% and 80% E. Above 80.01%

Answers

Answer:

The answer is "Option C"

Explanation:

Given:

[tex]\mu=2300\\\\\sigma=800 \ units\\[/tex]

We have [tex]D>2300[/tex] as [tex]\mu = 2300[/tex] for [tex]x=2300[/tex] or more [tex]p =50\%[/tex] as they requested [tex]2200[/tex] units to be [tex]100[/tex] more unsatisfactory. Therefore, the value is in between [tex]40.01\% \ and \ 60\%[/tex]

The following are budgeted data: January February March Sales in units 15,900 21,800 18,900 Production in units 18,900 19,900 17,900 One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month's production needs. Purchases of raw materials for February would be budgeted to be:

Answers

Answer:

20,300 pounds

Explanation:

Purchases Budget for February - Pounds

Material required in Production                                              19,900

Add Opening Materials Inventory (19,900 x 20%)                  3,980

Total                                                                                         23,880

Less Closing Materials Inventory (17,900 x 20%)                 (3,580)

Budgeted Purchases                                                              20,300

Therefore,

Purchases of raw materials for February would be budgeted to be 20,300 pounds

The management of Mitchell Labs decided to go private in 2002 by buying all 3.30 million of its outstanding shares at $17.50 per share. By 2006, management had restructured the company by selling off the petroleum research division for $13.50 million, the fiber technology division for $9.25 million, and the synthetic products division for $23 million. Because these divisions had been only marginally profitable, Mitchell Labs is a stronger company after the restructuring. Mitchell is now able to concentrate exclusively on contract research and will generate earnings per share of $1.40 this year. Investment bankers have contacted the firm and indicated that if it reentered the public market, the 3.30 million shares it purchased to go private could now be reissued to the public at a P/E ratio of 12 times earnings per share.

Required:
a. What was the initial cost to Mitchell Labs to go private?
b. What is the total value to the company from (1) the proceeds of the divisions that were sold, as well as (2) the current value of the 3.30 million shares (based on current earnings and an anticipated P/E of 12)?
c. What is the percentage return to the management of Mitchell Labs from the restructuring?

Answers

Answer: See explanation

Explanation:

a. What was the initial cost to Mitchell Labs to go private?

This will be calculated as:

= Price per share × Number of shares

= $17.50 × 3.3 million

= $57.75 million

b. What is the total value to the company from (1) the proceeds of the divisions that were sold, as well as (2) the current value of the 3.30 million shares (based on current earnings and an anticipated P/E of 12)?

This will be calculated as:

= $13.5 Million + $9.25 Million + $23 Million + [(12 X $ 1.40) × 3.3 Million]

= $45.75 Million + $55.44 Million

= $101.19 Million

c. What is the percentage return to the management of Mitchell Labs from the restructuring?

This will be calculated as:

= {$101.19 Million - $57.75 Million} /$57.75 Million

= $43.44/$57.75 × 100

= 0.7522 × 100

= 75.22%

Organizations face myriad barriers and obstacles to effectively increasing and embracing diversity in their workplaces. Some of these barriers stem from people in the organization who are resistant to changing the organization to make it more diverse. This activity is important because resistance to this type of change is an attitude that managers will come up against frequently, and managers should be able to recognize when this occurs so that they can manage the organization and its employees through this challenging but very important type of change.
The goal of this exercise is to challenge your knowledge of the barriers to diversity.
Stereotypes and Prejudices
Fear of Discrimination Against Majority Group Members
Resistance to Diversity Program Priorities
A Negative Diversity Climate
Lack of Support for Family Demands
A Hostile Work Environment for Diverse Employees
First, hover over the terms to read examples of barriers to diversity in action. Then, click and drag each term to indicate the specific barrier to diversity its example best depicts.

Answers

Answer:

Stereotypes

- Resistant to diversity program priorities

- Lack of support for family demands

Prejudices

- Fear of discrimination against majority group members

- A negative diversity climate

- A hostile work environment for diverse employees

Explanation:

Examples for stereotypes and prejudices are given below

Stereotypes

- Resistant to diversity program priorities

- Lack of support for family demands

Prejudices

- Fear of discrimination against majority group members

- A negative diversity climate

- A hostile work environment for diverse employees

The accounting records of Nash Inc. show the following data for 2017 (its first year of operations).
1. Life insurance expense on officers was $13,000.
2. Equipment was acquired in early January for $307,000. Straight-line depreciation over a 5-year life is used, with no salvage value. For tax purposes, Nash used a 30% rate to calculate depreciation.
3. Interest revenue on State of Iowa bonds totaled $4,000.
4. Product warranties were estimated to be $55,000 in 2017. Actual repair and labor costs related to the warranties in 2017 were $10,000. The remainder is estimated to be paid evenly in 2018 and 2019.
5. Pretax financial income was $850,000. The tax rate is 30%.
Prepare a schedule starting with pretax financial income in 2017 and ending with taxable income in 2017 Prepare the journal entry for 2017 to record income taxes payable, income tax expense, and deferred income taxes.

Answers

Answer:

Nash Inc.

1. A schedule of taxable income for 2017:

Pretax financial income = $850,000

add:

1. Life Insurance for officers  13,000

2. Interest on Iowa bonds      (4,000)

Excess Depreciation            (30,700) ($92,100 - $61,405)

Non-tax allowed warranties 45,000 ($55,000 - $10,000)

Adjusted pre-tax income   $873,300

Income tax expense (30%) $261,990

2. Journal entry:

Debit Income tax expense $261,990

Credit Income tax payable $261,990

To record income tax payable.

Debit Deferred Tax Asset $13,550

Credit Profit and Loss Account $13,550

To record the deferred tax asset.

Debit Profit and Loss Account $9,210

Credit Deferred Tax Liability $9,210

To record the deferred tax liability.

Explanation:

a) Data and Analysis:

Pretax financial income = $850,000

add:

1. Life Insurance for officers  13,000

2. Interest on Iowa bonds      (4,000)

Excess Depreciation            (30,700) ($92,100 - $61,405)

Non-tax allowed warranties 45,000 ($55,000 - $10,000)

Adjusted pre-tax income   $873,300

Income tax expense (30%) $261,990

Depreciation Excess/Differences:

Equipment cost = $307,000

Depreciation with straight line (5 years)

Annual accounting depreciation expense = $61,400 ($307,000/5)

Annual taxation depreciation expense = $92,100 ($307,000 * 30%)

Deferred tax liability:

Excess Depreciation            (30,700) * 30% =  $9,210

Deferred tax asset:

Non-tax allowed warranties 45,000 * 30$ = $13,550

Assume that apples cost $0.60 in 2002 and $1 in 2009, whereas oranges cost $1 in 2002 and $0.70 in 2009. If the household consumption bundle included 10 apples and 5 oranges in 2002 and 5 apples and 10 oranges in 2009, then the CPI for 2002 using 2009 as the base year is A. 12.1 B. 13.0 C. 13.5 D. None of the above

Answers

Answer: 91.67

Explanation:

Consumer Price Index₂₀₀₂ = ( Basket Price in Year of interest₂₀₀₂ / Basket Price in Base year₂₀₀₉) * 100

Basket Price in 2002 = (10 * 0.6) + (5 * 1)

= $11

Basket Price in 2009 = (5 * 1) + (10 * 0.7)

= $12

Consumer Price index = 11/12 * 100

= 91.67

US Apparel (USA) manufactures plain white and solid-colored T-shirts. Budgeted inputs include the following

Price Quantity Cost per unit of output
fabric $8 per yard 0.75 yards per unit $6 per unit
labor $16 per DMLH 0.25 DMLH per unit $4 per unit
dye $0.50 per ounce 4 ounces per unit $2 per unit

For colored T-shirts only

Budgeted sales and selling price per unit is as follow:s:

Budgeted Sales Selling Price per Unit
White T-shirts 10,000 units $12 per T-shirt
Colored T-shirts 50,000 units $15 per T-shirt

The USA has the opportunity to switch from using the dye it currently uses to using an environmentally friendly dye that costs $1.25 per ounce. The company would still need 4 ounces of dye per shirt. The USA is reluctant to change because of the increase in costs (and decrease in profit), but the Environmental Protection Agency has threatened to fine the company $130,000 if it continues to use the harmful but less expensive dye

a. Given the preceding information, would the USA be better off financially by switching to the environmentally friendly dye? (Assume all other costs would remain the same.)
b. Assume the USA chooses to be environmentally responsible regardless of cost, and it switches to the new dye. The production manager suggests trying Kaizen costing. If the USA can reduce fabric and labor costs each by 1% per month on all the shirts it manufactures, by how much will overall costs decrease at the end of 12 months? (Round to the nearest dollar for calculating cost reductions.)
c. Refer to requirement 2. How could the reduction in material and labor costs be accomplished? Are there any problems with this plan?.

Answers

Answer:

A) USA will not be better off switching to the new dye since the cost is greater than the Fine

B)  $118076

C)  The reduction in material/fabric cost can be achieved by the reduction in material wastage and in the use of quality materials

while the reduction in labor cost can be achieved by Hiring well trained employees with the necessary skillset

Explanation:

A) Determine If the USA be better off using the new dye

Units of clothes to be dyed = 50,000

Difference in cost = [ 4 ( 1.25 - 0.5 ) ] = 4 * 0.75 = $3

Total cost of using the new dye = 50000 * $3 = $150,000

Fine = $130,000

hence USA will not be better off switching to the new dye since the cost is greater than the Fine

B) Determine by how much overall cost will be reduced at the end of 12 months using Kaizen costing

condition : reduce fabric and labor cost by 1%

Original Monthly Costs without the use of Kaizen Costing =( Total Units/Number of Months)*(Fabric Cost per Unit + Labor Cost per Unit)*Number of Months

= [( 10000 + 50000 )/12 ) * ( 6 + 4 ) ] *12

= [ 5000 * 10 ] *12  = $600,000

Applying kaizen costing

Given: Fabric cost per unit = $6 , Labor cost per unit = $4

          Total units of production = 10000 + 50000 = 60,000

Kaizen costing formula per month = [ (cost per unit * total units / 12 ) - ( 1% of cost per unit * total units / 12) ]

Total annual cost using Kaizen costing = $56807.61

difference in cost = $600,000 - $568076 = $31924

with the new dye and Kaizen costing the overall cost will be change by $118076  i.e. ($150,000 - $31924) = $118076

C ) The reduction in material/fabric cost can be achieved by the reduction in material wastage and in the use of quality materials

while the reduction in labor cost can be achieved by Hiring well trained employees with the necessary skillset

Reid Company is budgeting production of 100,000 units of product R for the month of September this year. Production of one unit of product R requires three units of material B. For material B, the actual inventory units at September 1 were 22,000 units and budgeted inventory units at September 30 are 24,000. How many units of material B is Reid planning to purchase during September?

Answers

Answer:

Purchases= 302,000 units

Explanation:

Giving the following information:

Production= 100,000 units

Production of one unit of product R requires three units of material B.

For material B:

Beginning inventory= 22,000

Desired inventory= 24,000

To calculate the purchases, we need to use the following formula:

Purchases= production + desired ending inventory - beginning inventory

Purchases= 100,000*3 + 24,000 - 22,000

Purchases= 302,000 units

From 1975-2015, inflation has ____ real wages for most workers in the U.S.
a. not changed
b. raised
c. not enough information
d. lowered

Answers

Answer:

hi, how are you?

Explanation:

From 1975-2015, lowered inflation has real wages for most workers in the U.S. The appropriate response is option D.

What is inflation?

Inflation is the generalized rise in prices for goods and services. As the general price level rises, each unit of currency may buy fewer goods and services, hence inflation is related to a reduction in the purchasing power of money.

The main categories of inflation are as follows: Consumer-driven inflation price-driven inflation.

The overall rise in a nation's pricing for goods and services is referred to as inflation. Money loses value due to inflation, becoming progressively weaker over time.

In order to provide better comparisons throughout time, real wages have been adjusted to account for the impact of inflation. What has been discovered is that, when compared to other developed nations, inflation has decreased the salaries of the majority of American employees.

Hence, option D is an appropriate response.

To learn more about inflation

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