Answer:
we flew to the Dublin Airport in the Ireland
A company projects an increase in net income of $108000 each year for the next five years if it invests $900000 in new equipment. The equipment has a 5-year life and an estimated salvage value of $300000. What is the annual rate of return on this investment?
a. 20.5%
b. 31.0%
c. 30.0%
d. 30.8%
Answer:
18 %
Explanation:
Annual rate of return on this investment = annual profit / average investment x 100
where,
annual profit = $108000
average investment = (initial cost + salvage value) ÷ 2
= ($900000 + $300000) ÷ 2
= $600,000
therefore,
annual rate of return on this investment = $108000 / $600,000 x 100
= 18 %
trên cơ sở lý thuyết nhóm hãy chọn một công ty hiện kinh doanh tại thị trường việt nam, dòng sản phẩm tiêu dùng, phân tích thực trạng:
- chiến lược điều chỉnh giá của công ty
- chiên lược chủ động thay đổi giá
Answer:
es la coma estate should be your answer
You must evaluate the purchase of a proposed spectrometer for the R&D department. The base price is $160,000, and it would cost another $40,000 to modify the equipment for special use by the firm. The equipment falls into the MACRS 3-year class and would be sold after 3 years for $80,000. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The equipment would require a $7,000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $52,000 per year in before-tax labor costs. The firm's marginal federal-plus-state tax rate is 40%.
Required:
a. What is the initial investment outlay for the spectrometer, that is, what is the Year 0 project cash flow?
b. What are the project's annual cash flows in Years 1, 2, and 3?
Answer:
a.
$207,000
b.
Year 1: $57,600
Year 2: $67,200
Year 3: $30,000
Explanation:
a.
Calculate the initial outlay of the project at year 0 as follow
Initial Outlay = Base Price + Modification cost + Working Capital requirement
Initial Outlay = $160,000 + $40,000 + $7,000
Initial Outlay = $207,000
b.
The working for the calculation of the cash flow is attached with this answer, please refer to the attached file.
Due to a turnover, a company hires 400 employees each year, on average. Assume that an average stay of an employee in the company is 5 years. On average, how many employees does the company have?
Answer:
On average, the company has 2000 employees.
Explanation:
Since, due to a turnover, a company hires 400 employees each year, on average; assuming that an average stay of an employee in the company is 5 years, to determine, on average, how many employees does the company have, the following calculation must be performed:
Year 0 = 0
Year 1 = 400 (+400)
Year 2 = 800 (+400)
Year 3 = 1200 (+400)
Year 4 = 1600 (+400)
Year 5 = 2000 (+400)
Year 6 = 2000 (+400 -400)
Year 7 = 2000 (+400 - 400)
Therefore, on average, the company has 2000 employees.
Kemp Manufacturing set 70,000 direct labor hours as the annual capacity measure for computing its predetermined variable overhead rate. At that level, budgeted variable overhead costs are $315,000. Kemp will apply budgeted fixed overhead of $140,400 on the basis of 3,900 budgeted machine hours for the year. Both machine hours and fixed overhead costs are expected to be incurred evenly each month. During March 2013, Kemp incurred 5,900 direct labor hours and 300 machine hours. Actual variable and fixed overhead were $26,325 and $11,400, respectively. The standard times allowed for March production were 5,980 direct labor hours and 290 machine hours.
Required:
a. Using the four-variance approach, determine the overhead variances for March 2013.
b. Prepare all journal entries related to overhead for Kemp Manufacturing for March 2013.
Answer:
Kemp Manufacturing
a. Four-variance approach to determine overhead variances for March 2013:
i. Variable overhead spending variance
= (Actual hours worked × Actual variable overhead rate) – (Actual hours worked × Standard variable overhead rate)
= $225 F ($26,325 - $26,550)
ii. Variable overhead efficiency variance
= (standard hours allowed for production – actual hours taken) × standard overhead absorption rate per hour
= $360 F (5,980 - 5,900) * $4.5
iii. Fixed overhead spending variance = actual fixed overhead cost - budgeted fixed overhead cost
= $600 U ($11,400 - $10,800)
iv. Fixed overhead production volume variance = budgeted fixed overhead - applied fixed overhead costs
= $360 U ($10,440 - $10,800)
b. Journal Entries:
Manufacturing Overheads:
Debit Manufacturing Overhead $26,325
Debit Overapplied Variable Overhead 225
Credit Manufacturing Overhead Applied $26,550
To record variable overhead costs.
Debit Manufacturing Overhead $11,400
Credit Manufacturing Overhead Applied $10,800
Credit Underapplied Fixed Overhead $600
To record fixed overhead costs.
Explanation:
a) Data and Calculations:
Annual Capacity:
Direct labor hours = 70,000
Budgeted variable overhead costs = $315,000
Standard variable overhead rate = $4.50 ($315,000/70,000)
Fixed overhead = $140,400
Budgeted machine hours for the year = 3,900
Standard fixed overhead rate = $36 ($140,400/3,900)
March 2013:
Actual direct labor hours = 5,900
Machine hours = 300
Actual variable overhead = $26,325
Actual variable overhead rate per DLH = $4.462 ($26,325/5,900)
Actual fixed overhead = $11,400
Actual fixed overhead rate = $38 ($11,400/300)
Standard machine hours = 290
Standard direct labor hours = 5,980
Mar. 1 CMS began operations by receiving $100,000 in cash. The business issued shares of common stock in exchange for this contribution. Mar. 1 CMS paid $1,200 for a 12 month insurance policy. The policy begins Mar. 1. Mar. 4 CMS guided a small rock climbing trip, receiving $20,000 payment in cash. Mar. 22 Collected $3,000 cash from customer on account. Mar. 24 Paid rent on their property, $4,000 cash. Mar. 27 Paid $1,000 cash on account. Mar. 31 Cash dividends of $2,500 were paid to stockholders.Prepare the bank reconciliation at March 31, 2021.
Journalize any required entries from the bank reconciliation.
Prepare a cash t-account to verify the balance of the account matches the adjusted book balance from the bank.
Answer:
Reconciled Bank Balance $114,300.
Explanation:
Cash for operations $100,000
Less: Insurance policy subscription $1,200
Add: Fee for services $20,000
Add: Cash Collection $3,000
Less: Rent expense $4,000
Less: Payment on account $1,000
Less: Cash Dividends paid $2,500
Reconciled Balance $114,300
Prepare journal entries for the following credit card sales transactions.
1. Sold $20,000 of merchandise, which cost $15,000, on MasterCard credit cards. Master Card charges a 5% fee.
2. Sold $5,000 of merchandise, which cost $3,000, on an assortment of bank credit cards. These cards charge a 4% fee.
Answer and Explanation:
The journal entries are given below:
1. Cash A/c Dr $19,000
Credit card expense A/c Dr $1,000 ($20,000 × 5%)
To Sales A/c $20,000
(To record the received cash )
Cost of goods sold A/c Dr $15,000
To Merchandise inventory A/c $15,000
(To record the inventory is sold at cost)
2. Accounts receivable A/c Dr $4,800
Credit card expense A/c Dr $200 ($5,000 × 4%)
To Sales A/c $5,000
(To record the merchandise is sold on credit)
Cost of goods sold A/c Dr $3,000
To Merchandise inventory A/c $3,000
(To record the inventory is sold at cost)
Cash A/c Dr $4,800
To Accounts receivable $4,800
(to record the cash is received)
Suppose the government imposes a tax on three products with differing demand elasticities. Match the product to the group that will most likely bear the incidence of the tax.
a. the government
b. producers
c. consumers and producers
d. consumers
1. highly inelastic
2. somewhat elastic
3. highly elastic
Answer:
a. Government - highly Inelastic
b. producers - Somewhat elastic
c. consumers and producers - Highly elastic
d. consumers - Highly elastic
Explanation:
Inelastic demand is that which does not changes with the change in the price of any product.
Government oriented demand remains constant irrespective of pricing and hence it is highly inelastic while in case of producers and consumers, the demand may vary depending on the substitute availability in the market
Answer: producer - highly elastic
Consumers and producers - somewhat elastic
Consumers - highly inelastic
government- none
Explanation:
what reasons would you give for the reaction of consumers to price changes
Explanation:
ayes
he's!Once the cells in a biological machine stop working, it can never be started again. It goes into a cascade of decay, falling toward disorder and randomness. Except in the case of viruses. They can turn off and go dead. Then, if they come in contact with a living system, they switch on and multiply. The only thing that "lived" inside this monkey was the unknown agent, and it was dead, for the time being. It was not multiplying or doing anything, since the monkey's cells were dead. But if the agent touched living cells, Nancy's cells, it would come alive and begin to amplify itself. In theory, it could amplify itself around the world in the human species.
Summary of central idea: It is petrifying that even if viruses are dead, they have the potential to "come alive.”
phân tích các thành phần trong hệ sinh thái khởi nghiệp
Answer:
yes
Explanation:
Phân tích việc Chính phủ sử dụng chính sách tài khóa tác động như thế nào đến nền kinh tế trong đại dịch
Answer: Chính phủ sẽ can thiệp bằng cách dùng gói cứu trợ và nới lỏng thuế cho cá nhân, hộ gia đình, và các doanh nghiệp
Explanation: gói cứu trợ cho hộ gia đình, các kinh doanh nhỏ, vừa và cả lớn để kích thích nền kinh tế, tăng tổng nguồn cung của đất nước đó. Mặt khác, các cá nhân, hộ gia đình cũng sẽ tăng nhu cầu khi được cứu trợ thêm lương và các khoản chi tiêu khác, giúp nền kinh tế hoạt động trở lại trong đại dịch. Bên cạnh đó, các thuế cũng được giảm xuống để thu hút cá nhân, doanh nghiệp, và các ngành công nghiệp khác đầu tư vào nguồn nhân lực, cơ sở hạ tầng, cũng từ đó tạo thêm được nhiều việc làm cho nhiều công nhân. Chính Phủ cũng có thể đầu tư số tiền vào các dịch vụ công như là xây dựng đường xá, cầu vượt, giúp tăng thêm việc làm và nguồn thu nhập cho người dân, dẫn đến việc hiệu ứng nhân đôi kép. Tất cả những việc này sẽ giúp cho nền kinh tế của một quốc gia hồi phục nền kinh tế bằng sự can thiệp của Chính Phủ và nới lỏng thuế.
Assume that you manage a risky portfolio with an expected rate of return of 14% and a standard deviation of 30%. The T-bill rate is 6%. Your risky portfolio includes the following investments in the given proportions: Stock A 24 % Stock B 32 Stock C 44 Your client decides to invest in your risky portfolio a proportion (y) of his total investment budget with the remainder in a T-bill money market fund so that his overall portfolio will have an expected rate of return of 13%. a. What is the proportion y? (Round your answer to 1 decimal places.) b. What are your client's investment proportions in your three stocks and in T-bills? (Round your intermediate calculations and final answers to 2 decimal places.) c. What is the standard deviation of the rate of return on your client's portfolio?
Answer:
a. 87.5%
b. Stock A: 21%; Stock B: 28%; Stock C: 38.5%; T-bill: 12.5%
c. Standard deviation of the client's portfolio: 26.25%
Explanation:
a. y is calculated as:
Risky portfolio return * y + T-bill return * (1 - y) = Expected return of the portfolio <=> 0.14y + 0.06 ( 1-y) = 0.13 <=> y = 87.5%
b. Client investment in each stock and in T-bills:
Client investment in each stock = 0.875 * percentage of each stock in a risky portfolio ( because the risky portfolio is accounted for 87.5% of the whole investment)
=> Stock A = 24% x 0.875 = 21% ; Stock B = 32% * 0.875 = 28% ; Stock C = 44 * 0.875 = 38.5%
Client investment in T-bill = 1- y = 1 - 0.875 = 12.5%
c. Standard deviation is calculated as: Standard deviation of risky portfolio * y = 30% * 87.5% = 26.25% (because standard deviation of return in T-bill is 0)
Phillips Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent for the next three years, with the growth rate falling off to a constant 8 percent thereafter. If the required return is 11 percent and the company just paid a dividend of $1.45, what is the current share price
Answer:
$69.47
Explanation:
D1 = ($1.45*1.20) = $1.7
D2 = ($1.7*1.20) = $2.04
D3 = ($2.04*1.20) = $2.45
Value after year 3 = (D3*Growth Rate) / (Required rate-Growth Rate)
Value after year 3 = ($2.45*1.08) / 0.11-0.08
Value after year 3 = $2.646 / 0.03
Value after year 3 = $88.20
Current share price = Future dividend and value*Present value of discounting factor(rate%,time)
Current share price = $1.7/1.11 + $2.04/(1.11)^2 + $2.45/(1.11)^3 + $88.20/(1.11)^3
Current share price = $1.5315315 + $1.65571 + $1.7914189 + $64.49107
Current share price = $69.4697304
Current share price = $69.47
What is penetration pricing?
Explanation:
Penetration pricing is a marketing strategy used by businesses to attract customers to a new product or service by offering a lower price during its initial offering.
Answer:
lowering prices for lower market share
Explanation:
something along those lines
Kramer and Knox began a partnership by investing $58,000 and $65,000, respectively. During its first year, the partnership earned $160,000. Prepare calculations showing how the $160,000 income should be allocated to the partners under each of the following three separate plans for sharing income and loss:(1) The partners failed to agree on a method to share income.(2) The partners agreed to share income and loss in proportion to their initial investments. (Do not round intermediate calculations.(3) The partners agreed to share income by granting a $56,500 per year salary allowance to Kramer, a $46,500 per year salary allowance to Knox, 12% interest on their initial capital investments.
Answer and Explanation:
The computation is shown below:
1. At the time when the partner failed to share the incom and loss so it is assume that the net income i.e. $160,000 should be shared equally so for both it is $80,000 each
2. When the income is shared as per their initial investment
Particulars Kramer Knox Total
Investment $58,000 $65,000 $123,000
Investment ratio 47.15% 52.85%
$160,000 income share $75,440 $84,560 $160,000
3. Sharing of the income as per the defined rule
Particulars Kramer Knox Total
Salary allocated $56,500 $46,500 $103,000
Interest at 12% $6,960 $7,800 $14,760
Remaining balance $21,120 $21,120 $42,240
Total $84,580 $75,420 $160,000
4. Suppose that a baseball player signs a five-year contract for $1 million per year. In the third year of the contract, the player hits more home runs than anyone else in the league. Now he demands to renegotiate his salary. Does efficiency require the law to enforce the original contract or set it aside
Answer:
hla nsooue do p
Explanation:
nospr que
The efficiency require the law to enforce the original contract or set it aside of the modified with to apply all the conditions and the terms in the contract. As the continued of the maturity of the time period. The both parties are the accepted, they are the signed of the contract.
What is contract?
An agreement between two or more people to do something is referred to as a contract. Two or more parties must agree to the terms of the agreement in order to create a legally binding commitment. A contract was the deal with the two parties are the agreed to the terms and the conditions.
There are all the parties are the contract to modifies the contract are included the terms and the conditions as the applicable was the both parties are agreed. The contract must be accepted and the singed. The contract was the based to the both parties mutual understanding. The both the parties are not agreed are there was they not approved the legal contract.
Learn more about on contract, here:
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You are planning to save for retirement over the next 30 years. To save for retirement, you will invest $800 per month in a stock account in real dollars and $400 per month in a bond account in real dollars. The effective annual return of the stock account is expected to be 11 percent, and the bond account will earn 7 percent. When you retire, you will combine your money into an account with an effective return of 9 percent. The returns are stated in nominal terms. The inflation rate over this period is expected to be 4 percent.
How much can you withdraw each month from your account in real terms assuming a 25-year withdrawal period? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
What is the nominal dollar amount of your last withdrawal? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
Amount that can be withdrawn each month:
$6,342.06
Nominal dollar amount of last withdrawal:
$54,835.61
Explanation:
These look to be the correct answers, let me know if you would like for me to show my work!
Suppose that the money supply and the nominal GDP for a hypothetical economy are $96 bilion and $336 bilion, respectively. (In part a round your answer to 1 decimal place. In part c enter your answer as a whole number.)a. What is the velocity of money?b. How will households and businesses react if the central bank reduces the money supply by $20 billion?
i. Households and businesses will increase spendingii. Households and businesses will not react.iii. Households and businesses will reduce spending.c. By how much will nominal GDP have to fall to restore equilibrium, according to the monetarist perspective?
Answer:
V = 3.5 (1 dollar circulates 3.5 times in a year)
In short term – Reduction of aggregate demand and real output
In long term – reduction of wages and increase of real output of firms
Nominal GDP will fall by $20 bilion
Explanation:
Equation of monetisation =
Total money in circulation = Total money demanded/total output
Money Supply * Money Velocity = Price Level * GDP
V = PY/M
Substituting the given values, we get –
V = 336/96
V = 3.5
This indicates 1 dollar circulates 3.5 times in a year
In short term – Reduction of aggregate demand and real output
In long term – reduction of wages and increase of real output of firms
Nominal GDP will fall by $20 bilion
New lithographic equipment, acquired at a cost of $800,000 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $90,000. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected. In the first week of the fifth year, the equipment was sold for $135,000. Required: 1. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by (a) the straight-line method and (b) the double declining- balance method. 2. On January 1, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles. 3. On January 1, journalize the entry to record the sale, assuming that the equipment was sold for $88,750 instead of $135,000. Refer to the Chart of Accounts for exact wording of account titles.
Answer:
Alternative Depreciation Methods
(a) the straight-line method calculations:
Annual depreciation expense for each of the five years of use = $142,000 ($710,000/5)
(b) the double declining- balance method calculations:
Depreciation rate = 100%/5 * 2 = 40%
1st year Depreciation = $320,000 ($800,000 * 40%)
2nd year Depreciation = $192,000 ($480,000 * 40%)
3rd year Depreciation = $115,200 ($288,000 * 40%)
4th year Depreciation = $69,120 ($172,800 * 40%)
5th year Depreciation = $13,680 ($103,680 - $90,000)
2. Journal Entries (double-declining-balance method):
Debit Sale of Equipment $800,000
Credit Equipment $800,000
To transfer the equipment to Sale of Equipment account.
Debit Accumulated Depreciation $696,320
Credit Sale of Equipment $696,320
To transfer the accumulated depreciation to Sale of Equipment account.
Debit Cash $135,000
Credit Sale of Equipment $135,000
To record the proceeds from the sale of the equipment.
3. Journal Entries (double-declining-balance method):
Debit Sale of Equipment $800,000
Credit Equipment $800,000
To transfer the equipment to Sale of Equipment account.
Debit Accumulated Depreciation $696,320
Credit Sale of Equipment $696,320
To transfer the accumulated depreciation to Sale of Equipment account.
Debit Cash $88,750
Credit Sale of Equipment $88,750
To record the proceeds from the sale of the equipment.
Explanation:
a) Data and Calculations:
Cost of the new lithographic equipment = $800,000
Estimated useful life = 5 years
Estimated residual value = $90,000
Depreciable amount = $710,000 ($800,000 - $90,000)
Sales proceeds in the first week of the fifth year = $135,000
Suppose that Sarita has a gross annual income of $43,000. Her annual deductions for taxes, 401(k) retirement plan contributions, and health insurance amount to $9,400. This leaves Sarita with an annual disposable income of $33,600. Dividing Sarita annual disposable income by 12, you can determine that Sarita has a monthly disposable income of $__________ .
Answer:
Monthly disposal income = $2,800
Explanation:
Disposal income is the amount left for spending after all statutory deductions and taxes have been subtracted from an employees' income.
Annual Disposal income = Annual gross Income - statutory deductions and taxes
Monthly disposal income = Annual disposal/12
= (43,000-9,400)/12= $2,800
Monthly disposal income = $2,800
The following information was available from the inventory records of Rich Company for January:
Units Unit Cost Total Cost
Balance at January 1 9,000 $9.77 $87,930
Purchases:
January 6 6,000 10.30 61,800
January 26 8,100 10.71 86,751
Sales:
January 7 (7,500)
January 31 (11,100)
Balance at January 31 4,500
A. Assuming that Rich does not maintain perpetual inventory records, what should be the inventory at January 31, using the weighted-average inventory method, rounded to the nearest dollar?
a. $47,270.
b. $46,067.
c. $46,170.
d. $46,620.
B. Assuming that Rich maintains perpetual inventory records, what should be the inventory at January 31, using the moving-average inventory method, rounded to the nearest dollar?
a. $47,270.
b. $46,067.
c. $46,170.
d. $46,620.
Please EXPLAIN answer for a thumps-up. I'm tried of wrong answers, please don't answer it unless you are 100% sure.
Answer:
A. The correct option is b. $46,067.
B. The correct option is d. $46,620.
Explanation:
Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.
The explanation of the answers is now given as follows:
A. Assuming that Rich does not maintain perpetual inventory records, what should be the inventory at January 31, using the weighted-average inventory method, rounded to the nearest dollar?
Note: See part A of the attached excel file for the calculation of the of units and cost of goods available for sale.
Since Rich does not maintain perpetual inventory records, this implies that this is a periodic inventory system. And update to inventory in a periodic inventory system are made on a regular basis, such as monthly, quarterly, etc.
From the part A attached excel file, we have:
Units of goods available for sale = 23,100
Cost of goods available for sales = $236,481
Weighted-average cost per unit = Cost of goods available for sales / Units of goods available for sale = $236,481 / 23,100 = $10.2372727272727
Inventory at January 31 = Units of inventory balance at January 31 * Weighted-average cost per unit = 4,500 * $10.2372727272727 = $46,068
From the options the closest one is b. $46,067. Therefore, the inventory at January 31 is $46,067 and the correct option is b. $46,067.
B. Assuming that Rich maintains perpetual inventory records, what should be the inventory at January 31, using the moving-average inventory method, rounded to the nearest dollar?
Note: See part B of the attached excel file for the calculation of the inventory at January 31 (in bold red color).
Under Perpetual Inventory system, the inventory is updated whenever a purchase or sale is made. It's a procedure that happens in real time.
In the Part B of the attached excel file, the following rates in light red color are made as follows:
Rate on January 6 = ($87,930 + $61,800) / 15,000 = $9.98 per unit
Rate on January 26 = ($74,865 + 86,751) / 15,600 = $10.36 per unit
From the part B attached excel file, we have:
Inventory at January 31 = $46,620.
Therefore, the correct option is d. $46,620.
Other things equal, the deadweight loss of a tax Group of answer choices decreases as the size of the tax increases. increases as the size of the tax increases, but the increase in the deadweight loss is less rapid than the increase in the size of the tax. increases as the size of the tax increases, and the increase in the deadweight loss is more rapid than the increase in the size of the tax. increases as the price elasticities of demand and/or supply increase, but the deadweight loss does not change as the size of the tax increases.
Answer:
increase as the size of the tax increase, and the increase in the deadweight loss is more rapid than the increase in the size of the tax.
Explanation:
Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.
The different types of tax include the following;
1. Income tax: a tax on the money made by workers in the state. This type of tax is paid by employees with respect to the amount of money they receive as their wages or salary.
2. Property tax: a tax based on the value of a person's home or business. It is mainly taxed on physical assets or properties such as land, building, cars, business, etc.
3. Sales tax: a tax that is a percent of the price of goods sold in retail stores. It is being paid by the consumers (buyers) of finished goods and services and then, transfered to the appropriate authorities by the seller.
Other things being equal (ceteris paribus), the deadweight loss (loss of economic efficiency due to a lack of balance in competing economical influences for goods or services) of a tax increase as the size of the tax increase, and the increase in the deadweight loss is more rapid than the increase in the size of the tax.
Assume that IBM is expected to pay a total cash dividend of $5.60 next year and that dividends are expected to grow at a rate of 5% per year forever. Assuming annual dividend payments, what is the current market value of a share of IBM stock if the required return on IBM common stock is 10%?
Answer: $112
Explanation:
The following information can be gotten from the question:
Growth Rate = 5%
Dividend at end of year,D1 = 5.60
Required return, ke = 10%
Then, the current market value will be:
P0 = De/(ke-g)
= 5.60/(10% - 5%)
= 5.60 / 5%
= 5.60/0.05
= $112
Therefore, the current market value of a share of IBM stock is $112.
The following labor standards have been established for a particular product:
Standard labor hours per unit of output 4.4 hours
Standard labor rate $16.70 per hour
The following data pertain to operations concerning the product for the last month:
Actual hours worked 5,200 hours
Actual total labor cost $87,360
Actual output 1,100 units
Required:
a. What is the labor rate variance for the month?
b. What is the labor efficiency variance for the month?
Answer:
See below
Explanation:
a. Labor rate variance for the month
= (SR - AR) × AH
= ($16.70 - ($87,360/5,200 hours)) × 5,200
= ($16.70 - $16.8) × 5,200
= $520 Unfavourable
b. Labor efficiency variance
= (SH - AH) × AR
(4.4 × 1,100) - 5,200) × $16.70
= (4,840 - 5,200) × $16.70
= $6,012 Unfavourable
Cox Engineering performs cement core tests in its laboratory. The following standards have been set for each core test performed: Std. Hours or Quantity Std. Price or Rate Direct materials 3 pounds $0.75 per pound Direct labor 0.4 hours $12 per hour During March the laboratory performed 2,000 core tests. The following events occurred during March: 8,600 pounds of sand were purchased at a cost of $7,310. 7,200 pounds of sand were used for core tests. 840 actual direct labor hours were worked at a cost of $8,610. The direct material usage variance for March is:
Answer:
1200 U
Explanation:
Standard of material usage:
Material required 3 pounds per test
2000 core tests performed
Standard usage : 2,000 test * 3 pound per test = 6000 pounds
Actual usage of material = 7,200
Variance = 1,200 unfavorable.
Ayala Architects incorporated as licensed architects on April 1, 2017. During the first month of the operation of the business, these events and transactions occurred:
Apr. 1 Stockholders invested $18,270 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $381 per week, payable monthly.
2 Paid office rent for the month $914.
3 Purchased architectural supplies on account from Burmingham Company $1,320.
10 Completed blueprints on a carport and billed client $1,929 for services.
11 Received $711 cash advance from M. Jason to design a new home.
20 Received $2,842 cash for services completed and delivered to S. Melvin.
30 Paid secretary-receptionist for the month $1,524.
30 Paid $305 to Burmingham Company for accounts payable due.
Required:
Journalize the transaction.
Answer:
Ayala Architects
General Journal
April 1
Debit : Cash $18,270
Credit : Common Stock $18,270
April 1
Debit : Salaries expense ($381 x 4) $1,524
Credit : Salaries Payable $1,524
April 2
Debit : Rent expense $914
Credit : Cash $914
April 3
Debit : Supplies $1,320
Credit : Accounts Payable - Burmingham Company $1,320
April 10
Debit : Accounts Receivable $1,929
Credit : Service Revenue $1,929
April 11
Debit : Cash $711
Credit : Deferred Revenue
April 20
Debit : Cash $2,842
Credit : Service Revenue $2,842
April 30
Debit : Salaries expense $1,524
Credit : Cash $1,524
April 30
Debit : Accounts Payable - Burmingham Company $305
Credit : Cash $305
Explanation:
Journal entry for the transactions have been prepared above.
why is keystone so bad
Answer:
Keystone XL would be bad for wildlife, especially endangered species. Also without Keystone XL, the same amount of bitumen will be produced and the U.S. will still get all of it through the other pipeline projects. Keystone is not needed!
Explanation:
A coupon bond pays annual interest, has a par value of $1,000, matures in four years, has a coupon rate of 10%, and has a yield to maturity of 12%. The current yield on this bond is
Answer:
10.65%.
Explanation:
Calculation to determine what The current yield on this bond is
First step is to determine the Present value (PV) using Financial calculator
FV = 1000
n = 4
PMT =10%*$1,000= 100
i = 12
PV=?
Hence,
PV = 939.25
Now let determine the Current yield
Current yield = $100/$939.25
Current yield = 10.65%
Therefore The current yield on this bond is 10.65%
The entry to record the issuance of 150 shares of $5 par common stock at par to an attorney in payment of legal fees for organizing the corporation includes a credit to:________. a. Goodwill b. Organizational Expenses c. Cash d. Common Stock
Answer: D. Common stock
Explanation:
Common stock refers to the security which represents ownership in a corporation.
The entry to record the issuance of 150 shares of $5 par common stock at par to an attorney in payment of legal fees for organizing a corporation includes a credit to the common stock.
Jarett Motors is trying to decide whether it should keep its existing car washing machine or purchase a new one that has technological advantages (which translate into cost savings) over the existing machine. Information on each machine follows: Old machine New machine Original cost $9,000 $20,000 Accumulated depreciation 5,000 0 Annual cash operating costs 9,000 4,000 Current salvage value of old machine 2,000 Salvage value in 10 years 500 1,000 Remaining life 10 yrs 10 yrs Refer to Jarett Motors. The $4,000 of annual operating costs that are common to both the old and the new machine are an example of a(n):________ a. opportunity cost b. irrelevant cost c. future avoidable cost d. sunk cost
Answer:
The correct option is b. irrelevant cost.
Explanation:
An irrelevant cost can be described as an expense that will not be affected by the decisions of thee management. Therefore, irrelevant costs are those that will not change if you choose one option over another in the future.
Therefore, the $4,000 of annual operating costs that are common to both the old and the new machine are an example of irrelevant cost. This is because the 4,000 of annual operating costs will not be affected or will still be incurred whether Jarett Motors managment decide to keep its existing car washing machine or purchase a new one.
Therefore, the correct option is b. irrelevant cost.