Answer:
Value creation refers to the process of creating a company value based on the demands of the consumer and their willingness to use the value. The action of drifting wealth in a value networks is essential to the idea of shared value.
In other words, The way you create your goods such that they provide the most value to the customers who use them is called value delivery. Customers can receive worth in the shape of goods, perks, and characteristics, among other things. Anything that adds worth to the consumer 's experience should be included in the value ordering process.
Suppose a commercial bank has checkable deposits of $80,000 and the legal reserve ratio is 20 percent. If the bank's required and excess reserves are equal, then its actual reserves
Answer: $32000
Explanation:
The required reserves will be calculated as:
= Checkable deposit × Legal reserve ratio
= $80000 × 20%
= $16000
Excess reserves = $16000
Actual reserves will now be:
= Required reserves + Excess reserves
= $16,000 + $16,000
= $32,000
When Get the Glare Out needed some information about the potential market for its product, the marketing team looked to the Internet to find industry trends and at the market for eyewear products, which uses the same technology that is used in its self-darkening windshield. The type of information the marketing team was using is referred to as Multiple Choice surveys. focus groups. primary data. secondary data.
Answer:
secondary data.
Explanation:
Market research can be defined as a strategic technique which typically involves the process of identifying, acquiring and analyzing informations about a business. It involves the use of product test, surveys, questionnaire, focus groups, interviews, etc.
Secondary market research can be defined as a method designed to determine the demographics of a particular target market.
A secondary data can be defined as any form of data that has been obtained or collected earlier by someone else through primary sources for their own purpose and made readily available for other researchers to use. Thus, a secondary data is a type of data that has been previously obtained or collected.
In this scenario, the type of information the marketing team was using is referred to as secondary data because it looked to the Internet to find industry trends and at the market for eyewear products, which uses the same technology that is used in manufacturing its self-darkening windshield.
In conclusion, a secondary data is typically reliant or based on the primary source of information and as such it isn't a first hand experience.
Black Acres Apartment, Inc needs to compute taxable income (TI) for the preceding year and wants your assistance. The effective gross income (EGI) was $52,000; operating expenses were $19,000; $2,000 was put into a fund for future replacement of stoves and refrigerators; debt service was $26,662, of which $25,126 was interest; and the deprecation deduction was $17,000. Compute the taxable income from operations:
Answer:
($9,126)
Explanation:
Computation for the taxable income from operations:
Effective Gross Income $52,000
Less: Operating Expenses($19,000)
Less: Capital Expenditures($2,000)
Net Operating Income $31,000
($52,000-$19,000-$2,000)
Add: CAPX $2,000
Less: Interest on Debt Service($25,126)
Less: Tax Deprecation($17,000)
Taxable Income (Loss)$(9,126)
($31,000+$2,000-$25,126-$17,000)
Therefore the taxable income from operations: is $(9,126)
These selected condensed data are taken from a recent balance sheet of Sanson Company (in millions of dollars). Cash Accounts receivable Inventory Other current assets Total current liabilities $ 7.2 14.4 18.0 11.1 24.8 Additional information: Current liabilities at the beginning of the year were $35.6 million.
(a) What is the working capital? ____________
(b) What is the current ratio? _____________
Answer:
a. Working capital = Current Assets - Current Liabilities
Working capital = (Cash + Accounts receivable + Inventory + Other current assets) - Total current liabilities
Working capital = ($7.2 + $14.4 + $18.0 + $11.1) - $24.8
Working capital = $50.7 - $24.8
Working capital = $25.9
b. Current ratio = Current Assets / Current Liabilities
Current ratio = $50.7 / $24.8
Current ratio = 2.04 : 1
Suppose a company wants to structure its assets and liabilities such that its equity is unaffected by interest rate risk. To accomplish that objective, which of the following must the company do?
a. The duration of its liabilities must be longer than the duration of its assets.
b. The duration of its liabilities must equal the duration of its assets.
c. The duration of its liabilities must be shorter than the duration of its assets.
Answer: b. The duration of its liabilities must equal the duration of its assets
Explanation:
Since the company wants to structure its assets and liabilities such that its equity is unaffected by interest rate risk, then the duration of its liabilities must equal the duration of its assets.
It should be noted that when the duration of its liabilities is shorter than the duration of its assets, the duration gap is positive and when there's a rise in interest rate, the worth of assets will be affected more.
When duration of its liabilities is longer than the duration of its assets, the duration gap is negative and when there's a rise in interest rate, the worth of liabilities will be affected more.
Finally, when the duration of its liabilities is equal the duration of its assets, its equity is unaffected by interest rate risk.
ABC Corporation owns 75 percent of XYZ Company's voting shares. During 20X8, ABC produced 50,000 chairs at a cost of $79 each and sold 35,000 chairs to XYZ for $90 each. XYZ sold 18,000 of the chairs to unaffiliated companies for $117 each prior to December 31, 20X8, and sold the remainder in early 20X9 to unaffiliated companies for $130 each. Both companies use perpetual inventory systems. Based on the information given above, what amount of cost of goods sold did ABC record in 20X8 prior to consolidation
Answer:
$2,765,000
Explanation:
Calculation to determine what amount of cost of goods sold did ABC record in 20X8 prior to consolidation
Cost of goods sold= $79 each* 35,000
Cost of goods sold=$2,765,000
Therefore the amount of cost of goods sold that ABC record in 20X8 prior to consolidation is $2,765,000
Using the information given and assuming that ABC Corporation sells the chairs it produces to XYZ Company only, the cost of goods sold is $3,150,000.
Data and Calculations:
Shareholding of ABC Corporation in XYZ = 75%
ABC production units in 20X8 = 50,000 chairs
Number of units sold to XYZ = 35,000 chairs
Cost of product per unit = $90
Thus, if ABC Corporation sells the chairs it produces to XYZ Company only, the cost of goods sold is $3,150,000 ($90 x 35,000).
Learn more: https://brainly.com/question/18648409
Agan Interiors provides home and office decorating assistance to customers. In normal operation 2.5 customers arrive per hour. One design consultant answers problems. The consultant averages 10 minutes per customer. Arrivals follow a Poisson distribution and the service times are exponentially distributed.
Required:
a. Compute the operating characteristics of the customer waiting line, assuming Poisson arrivals and exponential service times.
b. Service goals dictate that an arriving customer should not wait for service more than an average of 7 minutes. Is this goal being met? If not, what action do you recommend?
c. If the consultant can reduce the average time spent per customer to 9 minutes, what is the mean service rate?
Explanation:
we find the mean service rate at 10 minutes
= 60/10 = 6 min per hour
λ = 2.5
a.
1. we find the average number that are waiting in line
Lq = 2.5²/6(6-2.5)
= 6.25/21
= 0.2976
2. we find the average customers that are in this system
= 2.5²/6(6-2.5) + 2.5/6
= 0.2976 + 0.4167
L = 0.714266
approximately 0.7143
3. we have to determine the average time that a customers stays waitong
= Lq/λ
= 0.2976/2.5
= 0.11904 hours.
we convert this to minutes
= 0.11904 x 60
Wq = 7.1424 minutes
4. we find the average time that a customer is going to stay in the system
= 7.1424 + 60/6
w = 17.14 minutes
b. this goal is not being met here. This is because the service wait time is 7.14 minutes which is greater than 7 minutes. In order for them to meet this goal, they either have to hire other consultants or they have to raise their mean service rate.
c. mean would be =
60/9 = 6.67 per hour
Wq = 2.5/6.67(6.67-2.5)
= 2.5/27.814
= 0.0899 hour
= 0.0899*60
= 5.4 minutes
The benefits of portfolio diversification are highest when the individual securities have returns that Group of answer choices Are counter-cyclical Vary indirectly with the rest of the portfolio Are uncorrelated with the rest of the portfolio Vary directly with the rest of the portfolio
Answer:
Are uncorrelated with the rest of the portfolio
Explanation:
Portfolio diversification is the process of holding different asset and security classes in order to minimise the non systemic risk of the portfolio
Non systemic risk are risks that can be diversified away. they are also called company specific risk. Examples of this type of risk is a manager engaging in fraudulent activities.
The highest benefit of diversification is when the securities are uncorrelated
Correlation is a statistical measure used to measure the relationship that exists between two variables.
1. Positive correlation : it mean that the two variables move in the same direction. If one variable increases, the other variable also increases.
For example, there should be a positive correlation between quantity supplied and price
When there is a positive correlation, the graph of the variables is upward sloping
2. Negative correlation : it mean that the two variables move in different direction. If one variable increases, the other variable decreases.
For example, there should be a negative correlation between quantity demanded and price
When there is a negative correlation, the graph of the variables is downward sloping
3. Zero correlation : there is no relationship between the variables
This information relates to Flint Real Estate Agency.
Oct. 1 Stockholders invest $30,740 in exchange for common stock of the corporation.
2 Hires an administrative assistant at an annual salary of $38,880.
3 Buys office furniture for $3,630, on account.
6 Sells a house and lot for E. C. Roads; commissions due from Roads, $12,010 (not paid by Roads at this time).
10 Receives cash of $135 as commission for acting as rental agent renting an apartment.
27 Pays $620 on account for the office furniture purchased on October 3.
30 Pays the administrative assistant $3,240 in salary for October.
Prepare the debit-credit analysis for each transaction. (If there is no transaction, then enter no effect for the account and 0 for the amount.)
A. Oct. 1 Debits increase assets:
debit Cash $ 30000
Credits increase stockholders' equity:
credit Common stock $ 30000
B. Oct. 2 Debits increase no effect:
debit___ $______
Credits increase ______
credit ____$_______
C. Oct 3 Debits increase assets:
debit ______ $ 4600
Credits increase liabilities:
credit Accounts payable $ 4600 .
D. Oct. 6 Debits increase :_____
debit ____ $_____
Credits increase :____
credit ___ $____
E. Oct. 10 Debits increase assets:
debit ___ Cash $ 140
Credits increase ____
credit ____ $____
F. Oct 27 Debits decrease :_____
debit_____ $____
Credits decrease :___
credit____ $.____
G. Oct 30 Debits increase :____
debit ____ $____
Credits decrease :_____
credit ___ $.____
Answer:
Flint Real Estate Agency
A. Oct. 1 Debits increase assets:
debit Cash $ 30,740
Credits increase stockholders' equity:
credit Common stock $ 30,740
B. Oct. 2 Debits increase no effect:
debit___ $__0____
Credits increase __0____
credit ____$____0___
C. Oct 3 Debits increase assets:
debit _Office furniture_____ $ 3,630
Credits increase liabilities:
credit Accounts payable $ 3,630.
D. Oct. 6 Debits increase :_____assets
debit _Accounts receivable___ $__12,010___
Credits increase :_stockholders' equity___
credit _Service Revenue__ $_12,010___
E. Oct. 10 Debits increase assets:
debit ___ Cash $ 135
Credits increase __stockholders' equity__
credit _Commission Revenue___ $__135_
F. Oct 27 Debits decrease :__Liabilities___
debit__Accounts payable___ $__620__
Credits decrease :_Assets__
credit__Cash__ $.__620__
G. Oct 30 Debits increase :__Expenses__
debit _Salaries expense___ $_3,240___
Credits decrease :__Assets___
credit _Cash__ $.__3,240__
Explanation:
a) Data and Analysis:
Oct. 1 Cash $30,740 Common stock $30,740
Oct. 3 Office furniture $3,630 Accounts payable $3,630
Oct. 6 Accounts receivable (E. C. Roads) $12,010 Service Revenue $12,010
Oct. 10 Cash $135 Commission Revenue $135
Oct. 27 Accounts payable $620 Cash $620
Oct. 30 Salaries Expense $3,240 Cash $3,240
A department that is capital-intensive most likely would use a predetermined departmental overhead rate based on which of the following activity bases?
a. units of direct material used
b. direct labor hours
c. direct labor cost
d. machine hours
Answer:
D)machine hours
Explanation:
It should be noted that department that is capital-intensive most likely would use a predetermined departmental overhead rate based on
machine hours.
A machine-hour can be regarded as measurement that is been used in applying factory overhead to manufactured goods. It's application is usually found in machine-intensive environments, environment whereby the amount of time that is expelled on processing by a machine is been regarded as largest activity that overhead allocations can be said to have based upon. Machine hour rate can be gotten by making division of the total running expenses of a machine by estimated number of hours for the machine to work at a specific period
Gross Inc. signs a five-year licensing agreement with Maiger Company. Gross Inc. will pay Maiger annual installment payments of $10,500 at the beginning of each of the five years. The fair value of the contract is $48,000. Over the five-year contract period, Gross Inc. will pay interest of:
Answer:
$4,500
Explanation:
First, calculate the total Installment
Total Installment payment = Annual Installment x Numbers of annual
Where
Annual Installment = $10,500 per year
Numbers of annual = 5 years
Installment payment = $10,500 per year x 5 years
Installment payment = $52,500
Now use the following formula to calculate the Interest payent
Interest payment = Installment Payment - Fair value of contract
Where
Installment Payment = $52,500
Fair value of contract = $48,000
Placing values in the formula
Interest payment = $52,500 - $48,000
Interest payment = $4,500
The management of Penfold Corporation is considering the purchase of a machine that would cost $360,000, would last for 10 years, and would have no salvage value. The machine would reduce labor and other costs by $50,000 per year. The company requires a minimum pretax return of 9% on all investment projects. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the proposed project is closest to (Ignore income taxes.):
Answer:
the net present value is -$72,050
Explanation:
The computation of the net present value is shown below
= $50,000 per year ×PVIFA factor at 10 years for 9% - $360,000
= $50,000 ×5.7590 - $360,000
= $287,950 - $360,000
= -$72,050
hence, the net present value is -$72,050
So the same should be relevant and considered too
The management of Wheeler Company has decided to develop cost formulas for its major overhead activities. Wheeler uses a highly automated manufacturing process, and power costs are a significant manufacturing cost. Cost analysts have decided that power costs are mixed; thus, they must be broken into their fixed and variable elements so that the cost behavior of the power usage activity can be properly described. Machine hours have been selected as the activity driver for power costs. The following data for the past eight quarters have been collected:
Quarter Machine Hours Power Cost
1 20,000 $26,000
2 25,000 $38,000
3 30,000 $42,500
4 22,000 $37,000
5 21,000 $34,000
6 18,000 $29,000
7 24,000 $36,000
8 28,000 $40,000
Using the high and low points (i.e., the high-low method), compute a power cost formula. (Note: Round variable rate to three decimal places.)
Total power cost = $_______ + ( $________ x Number of machine hours )
Answer:
Total power cost= 1,250 + 1.375 * number of machine hours
Explanation:
Giving the following information:
Quarter Machine Hours Power Cost
1 20,000 $26,000
2 25,000 $38,000
3 30,000 $42,500
4 22,000 $37,000
5 21,000 $34,000
6 18,000 $29,000
7 24,000 $36,000
8 28,000 $40,000
To calculate the variable and fixed costs, we need to use the following formula:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (42,500 - 26,000) - (30,000 - 18,000)
Variable cost per unit= $1.375
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 42,500 - (1.375*30,000)
Fixed costs= 1,250
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 26,000 - (1.375*18,000)
Fixed costs= 1,250
Nabax has an investment that is worth $41,600 and has an expected return of 14.56 percent. The investment is expected to pay her $27,200 in 2 years from today and X in 5 years from today. What is X?
Answer:
The answer is "$41189.19"
Explanation:
Using formula:[tex]\text{Present value=Cash flows} \times \text{Present value of discounting factor(rate \ \%, time period)}[/tex]
[tex]\to 41600=\frac{27200}{1.1456^2}+ \frac{X}{1.1456^5}\\\\\to 41600= (27200 \times 0.761963188)+(X \times 0.506798097)\\\\\to 41600=20725.3987+(X \times 0.506798097)\\\\\\to X=\frac{(41600-20725.3987)}{0.506798097}\\\\[/tex]
[tex]=\$41189.19[/tex]
Assuming that all entries have been posted, prepare correcting entries for each of the following errors.
a. The following entry was made to record the purchase of $774 in supplies on account:
Supplies 142 774
Cash 101 774
b. The following entry was made to record the payment of $475 in wages:
Rent Expense 521 475
Cash 101 475
c. The following entry was made to record a $396 payment to a supplier on account:
Supplies 142 196
Cash 101 196
Answer and Explanation:
The correcting journal entries are shown below:
a. Cash Dr $774
To account payable $774
(Being purchase of supplies on account is recorded)
b. Wages expense Dr $475
To rent expense $475
(Being wages expense is recorded)
c. Account payable $396
To Supplies $196
To cash $200
(being cash paid is recorded)
These 3 correcting entries should be recorded
A company receives a 10%, 90-day note for $2,700. The total interest due on the maturity date is: (Use 360 days a year.)
Answer:
Interest amount = $67.5
Explanation:
Use the below formula to find the interest amount:
Interest amount = The value of note x Interest rate x (90 / 360)
Given value of note = $2700
Interest rate = 10%
Time = 90/360
Now plug the value in the above formula and solve for the interest due:
Interest amount = The value of note x Interest rate x (90 / 360)
Interest amount = 2700 x 10% x (90 / 360)
Interest amount = $67.5
Suppose that many stocks are traded in the market and that it is possible to borrow at the risk-free rate, rƒ. The characteristics of two of the stocks are as follows: Stock Expected Return Standard Deviation A 10 % 25 % B 18 % 75 % Correlation = –1 a. Calculate the expected rate of return on this risk-free portfolio? (Hint: Can a particular stock portfolio be substituted for the risk-free asset?) (Round your answer to 2 decimal places.) b. Could the equilibrium rƒ be greater than 12.00%?
Answer:
a. The expected rate of return on this risk-free portfolio is 12%.
b. No, the equilibrium rƒ CANNOT be greater than 12.00%. This is because the equilibrium rƒ must be equal to the expected rate of return on this risk-free portfolio.
Explanation:
Given:
The characteristics of two of the stocks are as follows:
Stock Expected Return Standard Deviation
A 10% 25%
B 18% 75%
Correlation = –1
a. Calculate the expected rate of return on this risk-free portfolio?
SDA = Standard Deviation of Stock A = 25%, or 0.25
SDB = Standard Deviation of Stock B = 75%, or 0.75
WA = Weight of Stock A = ?
WB = Weight of Stock B = (1 - WA)
Portfolio standard deviation = (WA * SDA) – ((1 - WA) * SDB) = (WA * 0.25) – ((1 - WA) * 0.75)
With a perfect negative correlation, Portfolio standard deviation has is taken to be zero. Therefore, we have:
0 = (WA * 0.25) - ((1 - WA) * 0.75)
0 = 0.25WA - (0.75 - 0.75WA)
0 = 0.25WA - 0.75 + 0.75WA
0.75 = 0.25WA + 0.75WA
WA = 0.75
Therefore, we have:
WB = 1 - WA = 1 - 0.75 = 0.25
Portfolio expected rate of return = (WA * Expected Return of Stock A) + (WB * Expected Return) = (0.75 * 10%) + (0.25 * 18%) = 0.12, or 12.00%
Therefore, the expected rate of return on this risk-free portfolio is 12%.
b. Could the equilibrium rƒ be greater than 12.00%?
No, the equilibrium rƒ CANNOT be greater than 12.00%. This is because the equilibrium rƒ must be equal to the expected rate of return on this risk-free portfolio.
a) Take a real time example of a company of your own choice working in Pakistan and then discuss the factors that lead to pressure for local responsiveness. Discuss it in detail. Draw diagram to show the effect.
Answer:
This responsiveness also promotes the local market orientation of a subsidiary and therefore the strength of its existing network with the businessmen and government authorities.
Explanation:
Usually, firms working within the global market confront two sorts of competitive pressure. They face pressure to scale back costs and pressure to react locally. These competing forces throw a corporation into conflict. It's going to also need a corporation to supply a consistent product on the international market to downstream the experience curve as soon as feasible. In response to local pressures, however, it's necessary for a firm to differentiate its product offering and marketing strategy from one country to a different in an effort to satisfy the various demands arising from domestic consumer preferences, business practices, channels of distribution, competitive conditions and public policies. Because it's going to entail substantial redundancy and a scarcity of product standards to adapt products to varied domestic needs, the result could also be a rise in prices.
While some organizations, like Company A, face a high to scale back cost and low for the reaction of locally, while others, like Company B, face low to scale back costs and high for local reaction, many companies are within the situation of Company C. It suggests and supports three layers of variables, including environmental, structural, and organizational responsiveness. The analysis of 168 MNE companies within the People's Republic of China shows that environmental complexity and therefore the uniqueness of business culture increase local reaction. Structural variables like the intensity of competition, heterogeneity of demand and localisation of components increase local reaction.
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $440,000; Allowance for Doubtful Accounts has a credit balance of $4,000; and sales for the year total $1,980,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $14,800.
Required:
a. Determine the amount of the adjusting entry for uncollectible accounts.
b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.
c. Determine the net realizable value of accounts receivable.
Answer: See explanation
Explanation:
a. The amount of the adjusting entry for uncollectible accounts will be:
= Estimated balance required in Allowance account - Unadjusted balance existing in Allowance account
= $14800 - $4000
= $10800
b. The adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense will be:
Account receivables = $440,000
Allowance for Doubtful accounts = $14,800
Bad Debt expense = $10800
c. The net realizable value of accounts receivable will be:
= Account receivables - Allowance for Doubtful accounts
= $440,000 - $14800
= $425200
LB Limited is a price taker in a perfectly competitive market. It produces and sells canned spices. The following information is available for the company: Current output 5000 units Current market price $3 Total cost $25,000 Marginal cost $3 Total variable cost $20,000 What is the best action for LB limited? a) Operating in the short run and in the long run b) Increase output in the short run and in the long run c) Shut down in the short run and exit in the long run d) Shut down in the short run and produce in the long run e) Reduce output in the short run and increase output in the long run
Answer:
The answer is "Option c".
Explanation:
In this question c, the short-term Shut - down as well as the long-term departure. Since overall revenues are lower than the entire variable cost, it means that a producer is not capable of covering the variable cost, thus stopping the output in the short term and the business leaving it market on account of losses inside the long term.
Lucy has been the sole shareholder of a calendar year S corporation since 1980. At the end of 2011, Lucy's stock basis is $23,500, and she receives a distribution of $25,000. Corporate level accounts are computed as follows.
AAA 7,000
PTI 11,000
Accumulated E&P 600
How much capital gain, if any, will Lucy have?
a. $600
b. $7,000
c. $6,400
d. $900
e. None of the above
Answer: d. $900
Explanation:
Capital gain = Total distribution - AAA as this isn't taxed - Accumulated E&P - PTI which isn't taxed either - Stock basis
Stock basis = Stock basis - AAA - PTI
= 23,500 - 7,000 - 11,000
= $5,500
Capital Gain = 25,000 - 7,000 - 600 - 11,000 - 5,500
= $900
A manufacturing company's finished goods inventory on January 1 was $68,000; cost of goods manufactured for the year was $147,000; and the December 31 finished goods inventory was $77,000. What is the cost of goods sold for the year
Answer:
$138,000
Explanation:
Particulars Amount
Finished goods inventory, January 1 $68,000
Add: Cost of goods manufactured $147,000
Total $215,000
Less: Finished goods inventory, December 31 $77,000
Cost of goods sold $138,000
If there are six firms in an industry and the market shares of the firms are 32 percent, 25 percent, 19 percent, 9 percent, 8 percent and 7 percent, the Herfindahl index is
Answer: 2,204
Explanation:
The Herfindahl-Hirschman Index (HHI) shows just how competitive an industry is with a higher HHH meaning that it is not very competitive and a lower one meaning that it is quite competitive.
It is calculated by adding up the squares of the percentage market shares of the firms in the industry of interest:
= 32² + 25² + 19² + 9² + 8² + 7²
= 1,024 + 625 + 361 + 81 + 64 + 49
= 2,204
During its first year of operations a company recorded accrued expenses totaling $375,000 for book purposes. For tax purposes, $175,000 of the expenses are deductible during the first year of operations and $200,000 are deductible during the second year of operations. The enacted income tax rate was 21% during the first year of operations and 25% during the second year of operations. The balance sheet at the end of the first year of operations will report a deferred tax:
Answer:
$50,000
Explanation:
Optiins includes "asset of $42,000. liability of $42,000. liability of $50,000. asset of $50,000."
Deferred tax assets = Future deductible amount * Tax rate of future year
Deferred tax assets = $200,000* 25%
Deferred tax assets = $50,000
So, the balance sheet at the end of the first year of operations will report a deferred tax of $50,000
A 3-year bond with 10% coupon rate and $1,000 face value yields 8% yield to maturity. Assuming annual coupon payment, calculate the price of the bond.
Answer: $1051.51
Explanation:
Coupon rate = 10%
Face value = $1,000
Yield to maturity = 8%
Annual coupon will be:
= Face value × Coupon rate
= 1000 × 10%
= 100
Therefore, the price of bond will be:
= Annual coupon × Present value of annuity factor + $1000 × Present value of the discounting factor
= (100 × 2.5771) + (1000*0.7938)
= 257.71 + 793.8
= $1051.51
The price of the bond is $1051.51
What is another name for a job fair?
Contribution Margin Ratio a. Young Company budgets sales of $890,000, fixed costs of $26,000, and variable costs of $115,700. What is the contribution margin ratio for Young Company
Answer:
87 %
Explanation:
contribution margin ratio = Contribution ÷ Sales
therefore,
contribution margin ratio = ($890,000 - $115,700) ÷ $890,000
= 0.87 or 87 %
The contribution margin ratio for Young Company is 87 %.
Calculate the activity rate per grooming order. $fill in the blank 1 per grooming order 2. Calculate, in terms of grooming orders, the: a. Total activity availability fill in the blank 2 grooming orders b. Unused capacity fill in the blank 3 grooming orders 3. Calculate the dollar cost of: a. Total activity availability $fill in the blank 4 b. Unused capacity
Solution :
1. calculate the activity rate per grooming order
Activity rate Amount paid to agent
Number of grooming order
28,000
4,000
Therefore, the activity rate = 7 per grooming order
2. Calculating, in terms of grooming order, the :
a. Total activity availability
Number of grooming orders (A) = 4,000
Number of agents (B) 5
Total activity availability (A x B) 20,000
b). Total activity availability 20,000
Less: Orders actually processed (17,800)
Unused capacity 2,200
3. calculating the dollar cost of :
a). Amount paid to the agent (A 28,000
Number of agents (B) 5
Total activity availability in dollars (AxB) 140,000
b). Unused capacity (A) 2,200
Activity rate (B) 7
Unused capacity in dollars (AxB) 15,400
ncome Statements Segmented by Products Francisco Consulting Firm provides three types of client services in three health-care-related industries. The income statement for July is as follows: FRANCISCO CONSULTING FIRM Income Statement For Month of July Sales $ 820,000 Less variable costs (580,750) Contribution margin 239,250 Less fixed expenses Service $ 85,600 Selling and administrative 70,400 (156,000) Net income $ 83,250 The sales, contribution margin ratios, and direct fixed expenses for the three types of services are as follows: Hospitals Physicians Nursing Care Sales $340,000 $205,000 $275,000 Contribution margin ratio 25% 35% 30% Direct fixed expenses of service $36,500 $8,500 $18,750 Allocated common fixed service expenses $8,500 $2,500 $4,000 Prepare income statements segmented by client categories. Include a column for the entire firm in the statement.
Answer:
FRANCISCO Consulting Firm
Francisco Consulting Firm
Segmented Income Statement
For the month of July
Hospitals Physicians Nursing Total
Care
Sales $340,000 $205,000 $275,000 $820,000
Variable costs 255,000 133,250 192,500 580,750
Contribution margin ratio $85,000 $71,750 $82,500 $239,250
Direct fixed expenses of service $36,500 $8,500 $18,750 63,750
Allocated common
fixed service expenses 8,500 2,500 4,000 15,000
Unallocated common fixed service expense 6,850
Selling and administrative 29,190 17,600 23,610 70,400
Total expenses $74,190 $28,600 $46,360 $156,000
Net Income $10,810 $43,150 $36,140 $83,250
Explanation:
a) Data and Calculations:
CONSULTING FIRM
Income Statement
For Month of July
Sales $ 820,000
Less variable costs (580,750)
Contribution margin 239,250
Less fixed expenses Service $ 85,600
Selling and administrative 70,400 (156,000)
Net income $ 83,250
The sales, contribution margin ratios, and direct fixed expenses for the three types of services are as follows:
Hospitals Physicians Nursing
Care
Sales $340,000 $205,000 $275,000
Contribution margin ratio 25% 35% 30%
Direct fixed expenses of service $36,500 $8,500 $18,750
Allocated common fixed service expenses $8,500 $2,500 $4,000
Juniper Company uses a perpetual inventory system and the gross method of accounting for purchases. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 16, it paid the full amount due. The amount of the cash paid on August 16 equals:___.
A. $8, 167.50.
B. $9, 652.50.
C. $9, 750.00.
D. $8, 250.00.
E. $8, 152.50.
Answer:
A. $8, 167.50
Explanation:
The fact Juniper company returned $1,500 worth of merchandise, means that it is only obliged to pay the amount of $8,250($9,750-$1,500).
However, the payment was made on 16th August, which is the discount period of 10 days, hence, the cash paid on August 16 is computed thus:
cash paid=amount of merchandise owed*(1-discount rate)
discount rate=1%(1% discount if payment is made within 10 days of the purchase date)
cash paid=$8,250*(1-1%)
cash paid=$ 8,167.50
