Answer:
Based on an examination of the risk and return data for a variety of alternative investments during the period of 1926-2011, the correct statement is:
Small-company stocks, rather than long-term corporate bonds, exhibit both the greater return and the greater standard deviation.
Explanation:
Small-company stocks are known to show the highest volatility of returns among these five assets. The reason is that investors in small company stocks always expect higher returns to pay for the higher risks involved in such unproven investments, unlike investing in other assets. In addition, small-company stocks are known to pose higher risks given their known failure to deliver on their promised performance and returns.
Determine whether each of the following accounting duties mainly involves financial accounting, managerial accounting, or tax accounting.
1. Consulting with treasurer on cash flows
2. Intemal auditing
3. Estate planning
4. External auditing
5. Tax consulting
6. Analyzing extema financial reports
7. Planning transactions to minimize taxes
8. Enforcing tax laws Financial accounting Tax accounting
Answer:
Explanation:
1. managerial
2, managerial
3. financial
4. financial
5. tax
6. financial
7. tax
8. tax
The classification of the following accounting duties related to financial accounting, managerial accounting, or tax accounting is as follows:
Consulted with the treasurer for the cash flows should be the managerial accounting as it is the management part.Internal auditing is managerial accounting.Estate planning is related to tax so it is a tax accounting.External auditing is classified as financial accounting.Tax consulting is related to tax so it is a tax accounting.External Financial reports should be analyzed so it is a financial accounting.For minimizing the taxes, tax accounting should be used.For enforcing the tax laws, tax accounting should be used.In this, the following transactions should be classfied.
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If you throw exactly two heads in two tosses of a coin you win $101. If not, you pay me $30. Step 1 of 2 : Find the expected value of the proposition. Round your answer to two decimal places. Losses must be expressed as negative values.
Answer:
The expected value of the proposition is $2.50.
Explanation:
When a coin is tossed two times, the following is the sample space (S)
S = {HT,TH,TT,HH}
Using the information in the question, we can derive the following win/loss table:
S Probability Payoff
TH 1/4 -$30
HT 1/4 -$30
TT 1/4 -$30
HH 1/4 $100
The expected value (E) can now be calculated as follows:
E = Sum of (Probability * Payoff) = (1/4 * ($-30)) * (1/4 * ($-30)) * (1/4 * ($-30)) = (1/4 * $100) = ((1/4) * (-30)) + ((1/4) * (-30)) + ((1/4) * (-30)) + ((1/4) * 100) = $2.50
Suppose cyclone industrial inc will pay a dividend of 1.65 per share next year. The require return on the stock is 8% and its dividends will grow by 2% per year indefinitely. What is the stock price today?
Answer:
$27.50
Explanation:
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
$1.65 / ( 0.08 - 0.02) = $27.50
Part 1
a) Well done! From 2007 Q4 to 2009 Q2, real GDP fell from $15,762 to $15,134.1, or by -3.58%.
b) That's right! The deflator rose from 93.15 to 94.84, or 182%. If you put 1.74%, that's an approximation.
Part 2. Good! In each of those quarters, real GDP was lower than in the previous quarter.
Part 3. You had the right idea, but you assumed that real GDP grow at 3% for only one year
By the end of 2009, the economy had recovered slightly; however, the economy was still smaller than it was two years prior. From 2007 to 2009, real GDP had fallen from $15,762 billion to $15,356 billion. How deep was the recession?
Suppose that the long-run growth trend of real GDP was 3% per year. If the economy had grown at 3% per year since 2007, there was a shortfall of_____billion at the end of 2009.
Answer: $1,365.91
Explanation:
Shortfall = Expected GDP - Actual GDP
Expected GDP in 2009 is based on the premise that the economy has grown by 3% since 2007.
Expected GDP in 2009 will therefore be;
= 15,762 * ( 1 + 3%)²
= $16,721.91
Shortfall = 16,721.91 - 15,356
= $1,365.91
Stocks have a 12% expected return and 22% risk. Bonds have a 7% expected return and 10% risk. The expected return of a portfolio comprised of 70% stocks and 30% bonds is: Group of answer choices
Answer:
10.5%
Explanation:
Calculation to determine Expected return of portfolio
Using this formula
Expected return of portfolio = Ws*E(rs) + Wb*E(rb)
Where,
Expected return stock E(rs) = 12%
Expected return bond E(rb) = 7%
Weight of stock Ws = 0.70
Weight of bond Wb = 0.30
Let plug in the formula
Expected return of portfolio= 0.7*12 + 0.3*7
Expected return of portfolio = 10.5%
Therefore Expected return of portfolio is 10.5%
Price elasticity for a good depends on the share of a consumer's budget spent on a good. Other things being equal, which of the following goods has the most elastic demand? Fish food Monthly cell phone bill Thumbtacks
Answer:
Monthly Cell Phone Bill
Explanation:
Other things being equal, the higher the price of a good relative to a consumer's income, the greater the price elasticity of demand. Hence, the price elasticity of demand for low-priced items, such as thumbtacks and fish food, tends to be lower than the price elasticity of demand for relatively expensive items, such as monthly cell phone bill, that represent a more significant fraction of a consumer's annual income.
Be sure to consider not just the price, however, but also the overall portion of a consumer's annual income spent on an item. For example, one latte costs only $3.00, but for daily coffee drinkers the annual expense could be around $1,000. The elasticity of demand for lattes is therefore likely to be higher than that for other low-priced items (such as thumbtacks) that may need to be purchased only a few times annually.
Differential cost is ______. Multiple select question. also known as incremental cost the same as opportunity cost the difference in cost between two alternatives never relevant to a product decision
Answer:
I. also known as incremental cost
II. the difference in cost between two alternatives
Explanation:
Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
Differential cost is also known as incremental cost and it is the difference in cost between two alternatives.
In Financial accounting, fixed cost can be defined as predetermined expenses in a business that remain constant for a specific period of time regardless of the quantity of production or level of outputs. Some examples of fixed costs in business are loan payments, employee salary, depreciation, rent, insurance, lease, utilities etc.
On the other hand, variable costs can be defined as expenses that are not constant and as such usually change directly and are proportional to various changes in business activities. Some examples of variable costs are taxes, direct labor, sales commissions, raw materials, operational expenses etc.
The differential cost is called the incremental cost, and it is the difference in the cost that lies between two alternatives.
The following information should be relevant:
It is the difference between the cost of 2 alternative decisions or the output level is varied.It is also known as the incremental cost.Therefore we can conclude that the differential cost is called the incremental cost, and it is the difference in the cost that lies between two alternatives.
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If the dollar contribution margin per unit is increased by 8%, total fixed expenses is decreased by 18%, and all other factors remain the same, net operating income will:
Answer:
Increase
Explanation:
Since the Contribution increased and Fixed Costs have decreased, the resulting effect is an Increase in Net Operating Income. Thus, all other factors remain the same, net operating income will: Increase
On January 1, a machine with a useful life of 5 years and a salvage value of $15000 was purchased for $115000. What is the depreciation expense for year 2 under straight-line depreciation
Answer:
Annual depreciation (year 2)= $20,000
Explanation:
Giving the following information:
Purchase price= $115,000
Salvage value= $15,000
Useful life= 5 years
To calculate the annual depreciation under the straight-line method, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (115,000 - 15,000) / 5
Annual depreciation= $20,000
Big Chill, Inc. sells portable dehumidifier units at the current price of $184. Unit variable costs are $85. Fixed costs, made up primarily of salaries, rent, insurance and advertising, are $3,236,000. Calculate breakeven sales for Big Chill, Inc. Round your answer to the nearest whole number.
Answer:
$6,014,384
Explanation:
Break even point is the level at which a firm makes neither profit nor a loss. This is the point where Profit = $0.
Break even units = Fixed Costs ÷ Contribution per unit
therefore,
Break even units = $3,236,000 ÷ ($184 x $85)
= 32,687 units
thus,
Breakeven Sales = 32,687 units x $184 = $6,014,384
Plastic Products Ltd is a company business whole the country that produces and markets plastic cups, teaspoons, knives and forks for the catering industry. The company was established in 2010 in response to the changes taking place in the catering industry. The growth of the fast-food sector of the market was seen as an opportunity to provide disposable eating utensils which would save on human resources and allow the speedy provision of utensils for fast customer flow. In addition, Plastic Products has benefited from the growth in supermarkets, convenience stores and food processed manufacturers. The expansion of sales and outlets has led Mr. Long, the sales manager, to recommend to Mr. An, the general manager, that the present sales force should be increased. Mr. Long believes that the new recruits should have experience of selling fast-moving consumer goods since essentially that is what his products are. Mr. An believes that the new recruits should be familiar with plastic products since that is what they are selling. He favors recruiting from within the plastics industry, since such people are familiar with the supply, production and properties of plastic field.
Answer:
ooffffano yan bul bul ka ba!?
4. You want to take out a fully-amortizing 30-year mortgage. You can afford monthly payments of $600 each. The interest rate is 9%. How much money can you borrow?
Answer: $74569
Explanation:
Based on the information given in the question, the amount that can be borrowed is explained below:
Present value of annuity will e calculated as:
= 600 × [1-(1+0.09/12)^-(12 ×30)] / (0.09/12)
= 600 × [1-(1+0.0075)^-(360)] / 0.0075
= 600 × 1-(1.0075)^-(360)] / 0.0075
= 600 × [1-0.0678860074] / 0.0075
= 600 × 124.282
= 74569
The amount that can be borrowed is $74569
Identify each of the following reconciling items as:
a. an addition to the cash balance according to the bank statement
b. a deduction from the cash balance according to the bank statement
c. an addition to the cash balance according to the company's records
d. a deduction from the cash balance according to the company's records
Item Treatment
1. Bank service charges, $30.
2. Check of a customer returned by bank to company because of insufficient funds, $400.
3. Check for $320 incorrectly recorded by the company as $230.
4. Check for $1,100 incorrectly charged by bank as $110.
5. Deposit in transit, $3,300.
6. Outstanding checks, $7,950.
7. Note collected by bank, $10,500.
Answer:
Reconciling Items
Item Treatment
1. b. a deduction from the cash balance according to the bank statement
2. b. a deduction from the cash balance according to the bank statement
3. d. a deduction from the cash balance according to the company's records
4. a. an addition to the cash balance according to the bank statement
5. a. an addition to the cash balance according to the bank statement
6. a. an addition to the cash balance according to the bank statement
7. a. an addition to the cash balance according to the bank statement
Explanation:
a) Data and Analysis:
1. Bank service charges, $30 Cash $30
2. Accounts Receivable (NSF) $400 Cash $400
3. Accounts Payable $90 Cash $90
4. Cash $990 Bank $990.
5. Bank $3,300 Cash $3,300
6. Cash $7,950 Bank $7,950
7. Cash $10,500 Accounts Receivable $10,500
If you encounter a process that has limited flexibility, shorter lead times, and cheaper products, customization most likely is occuring:
Answer: late in the supply chain
Explanation:
Assemble to order refers to a strategy whereby the products ordered by customers are manufactured quickly while they are customizable to an extent
Even though the basic parts of the product are manufactured already, they're not yet assembled until an order comes in.
If a process that has limited flexibility, shorter lead times, and cheaper products, customization most likely is occuring late in the supply chain.
In a situation where a process with limited flexibility, shorter lead times, and cheaper products, customization of the product or service will most likely occur D. Late in the Supply Chain
Given the process's limited flexibility and shorter lead times, customization, which is a process that tailors a product or service to meet specific customer's or market's demands, cannot occur early, at every step of the Supply Chain, or before procurement of raw materials.
Thus, customization occurs later in the Supply Chain when the goods are about to be delivered to the customer because delivery and satisfying customers or the market are the ultimate goals of any Supply Chain management.
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As discussed in the lecture video, Crocs’ plastic molding and sandal design capabilities have provided the firm with only a temporary competitive advantage, as incumbent firms began selling sandals that were very similar to the Crocs’ clogs. Crocs lost its competitive advantage primarily because of ___________
Answer: c. competitor imitation
Explanation:
When a company makes a good product that people like and therefore brings in profit, other companies will copy that product if it is not protected by law so that they too can make profit as well.
This is what happened to the Crocs' clogs. Other companies imitated them and so Crocs lost their competitive advantage. This led to prices falling for such footwear as the supply increased. It is for this reason that companies try to get patents when they make a product.
The purpose of the Carlos Division is to develop a nuclear-powered aircraft. If successful, traveling delays associated with refueling could be substantially reduced. Many other benefits would also occur. To date, management has not had much success and is deciding whether a write-down at this time is appropriate. Management estimated its future net cash flows from the project to be $438 million. Management has also received an offer to purchase the division for $351 million. All identifiable assetsâ and liabilitiesâ book and fair value amounts are the same.
Required:
Prepare the journal entry to record the impairment at December 31, 2017.
Solution :
Calculate the amount of loss on impairment as follows :
Particular Millions($)
Fair value of the division 351
Less: carrying amount, net of good (474 - 210) 264
Implied goodwill 78
Less: carrying value of good will 210
Loss on impairment 132
Record impairment loss
Account title Debit($ million) Credit ($ million)
Loss of impairment 132
Goodwill 132
Betty Vinson improperly capitalized line costs at her boss's direction. Which company did she work for
Answer: WorldCom
Explanation:
The WorldCom scandal of 2002 was the worst one in U.S. history and led to shareholders losing over $30 billion as a result of share prices falling drastically when it was revealed that the company had been making fraudulent accounting entries to look successful when it fact it had been losing money.
Betty Vinson was the company's Director of Corporate Reporting and her boss, CEO Bernie Ebbers, pressured her into making fraudulent entries because it was said that he "didn't want to disappoint Wall Street". This scandal was one of those that directly led to the Sarbanes-Oxley Act being passed.
XYZ Company manufactures a unique device that is used by internet users to boost Wi-fi signals. The following data relates to the first month of operation:
Beginning inventory 0 units
Units produced 40,000 units
Units sold 35,000 units
Selling price $120 per unit
Marketing and administrative expenses
Variable marketing and administrative expenses per unit $4
Fixed marketing and administrative expenses per month $1,120,000
Manufacturing costs
Direct materials cost per unit $30
Direct labor cost per unit $14
Variable manufacturing overhead cost per unit $4
Fixed manufacturing overhead cost per month $1,280,000
Using the information given, above:
a. Calculate unit product cost under the variable costing method and the absorption costing method.
b. Prepare an Income Statement under the variable costing method, as well as the absorption costing method.
c. Prepare a schedule to reconcile the net operating income under the variable and absorption costing methods
Answer:
XYZ Company
a. Unit product cost under:
1. variable costing method
Direct materials cost per unit $30
Direct labor cost per unit $14
Variable manufacturing overhead cost per unit $4
Variable marketing and administrative expenses per unit $4
Total variable cost $52
2. absorption costing method:
Direct materials cost per unit $30
Direct labor cost per unit $14
Variable manufacturing overhead cost per unit $4
Fixed manufacturing overhead cost $32 ($1,280,000/40,000)
Total product cost per unit $80
b1. Income Statement under the variable costing method
Sales revenue $4,200,000 ($120 * 35,000)
Cost of goods sold:
Variable cost of goods sold 1,680,000 ($48 * 35,000)
Variable marketing and admin 140,000 ($4 * 35,000)
Total cost of goods sold 1,820,000
Contribution margin $2,380,000
Fixed expenses:
Fixed marketing and
administrative expenses $1,120,000
Fixed manufacturing overhead 1,280,000
Total fixed expenses $2,400,000
Net operating loss $20,000
b2. Income Statement under the absorption costing method
Sales revenue $4,200,000 ($120 * 35,000)
Cost of goods sold:
Variable cost of goods sold 1,920,000 ($48 * 40,000)
Fixed manufacturing overhead 1,280,000
Less Ending inventory (400,000)
Total cost of goods sold 2,800,000
Contribution margin $1,400,000
Period expenses:
Marketing and Administrative:
Fixed $1,120,000
Variable 140,000 $1,260,000
Net operating income $140,000
c. Schedule to reconcile the net operating income under the variable and absorption costing methods:
Net operating income under absorption = $140,000
Fixed cost absorbed in ending inventory = 160,000 ($32 * 5,000)
Net operating loss under variable = ($20,000)
Explanation:
a) Data and Calculations:
Beginning inventory 0 units
Units produced 40,000 units
Units sold 35,000 units
Ending inventory 5,000 units
Selling price $120 per unit
Marketing and administrative expenses:
Variable marketing and administrative expenses per unit $4
Fixed marketing and administrative expenses per month $1,120,000
Manufacturing costs:
Direct materials cost per unit $30
Direct labor cost per unit $14
Variable manufacturing overhead cost per unit $4
Fixed manufacturing overhead cost per month $1,280,000
the company's revenue for the month totaled $950,000 from credit sales, and its cost of goods sold for the month is $540,000. Prepare summary journal entries dated October 31 to record its October production
Answer:
Date Account Title Debit Credit
Oct. 31 Accounts Receivable $950,000
Sales $950,000
Date Account Title Debit Credit
Oct. 31 Cost of goods sold $540,000
Finished goods inventory $540,000
Select any local/international brand of your choice
• Assess the advertisements of brand to identify the following:
o What factors of perception the brand Is implying to break clutter and gain attention?
o What type of learning theory is the brand using and how is it promoting memory retrieval with respect to the brand?
o How is the brand motivating the customer? (use theories to strengthen your answer)
o Describe the brands personality using the brand personality theory.
o Describe the message appeal being used in the advertisement and how?
Answer:
Following are the response to these questions:
Explanation:
Coca-Cola is my international brand this business leverages media and internet marketing, using TV and other social media platforms. The company uses cognitive and emotional learning theory to draw attention and promote memory restoration from branding.
The company's products ads are full of sadness to encourage customers to acquire their goods. Coca-Cola uses theory to establish its brand accurately that resonates with the correct customer. It aims to generate a positive emotional response in this context from a targeted consumer demographic. Its company's newest appeal message for the advertisement is 'Taste the feeling' and it causes people to feel like continuing to use Coca-Cola drinks.
Other things equal, compared to using the first-in-first-out (FIFO) inventory cost method, using the last-in-first-out (LIFO) method in a rising price environment will result in a higher:____________
A. quick ratio.
B. inventory turnover ratio.
C. gross profit margin.
Answer:
B. inventory turnover ratio.
Explanation:
My best guess is that the inventory turnover ratio will be greater when LIFO is used during rising price environment because COGS will be higher and the inventory costs will be lower under LIFO than under FIFO.
Hope its correct.
This article seems to agree to some extent: https://smallbusiness.chron.com/impact-inflation-inventory-turnover-66227.html
Sidewinder, Inc., has sales of $714,000, costs of $348,000, depreciation expense of $93,000, interest expense of $58,000, and a tax rate of 25 percent. The firm paid out $88,000 in cash dividends. What is the addition to retained earnings? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Duela Dent is single and had $180,800 in taxable income. Use the rates from Table 2.3. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Calculate her income taxes.Prepare a balance sheet for Alaskan Peach Corp. as of December 31, 2019, based on the following information: cash = $203,000; patents and copyrights = $857,000; accounts payable = $286,000; accounts receivable = $263,000; tangible net fixed assets = $5,200,000; inventory = $548,000; notes payable = $179,000; accumulated retained earnings = $4,686,000; long-term debt = $1,150,000. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
Answer:
Sidewinder, Inc.
The addition to retained earnings is:
= $73,250
Duela Dent:
Income taxes = $45,200.
Alaskan Peach Corp.:
Balance Sheet as of December 31, 2019
Assets
Current assets:
Cash $203,000
Accounts receivable 263,000
Inventory 548,000 $1,014,000
Long-term assets:
Tangible net fixed assets 5,200,000
Patents and copyrights 857,000 $6,057,000
Total assets $7,071,000
Liabilities and Equity:
Current liabilities:
Accounts payable $286,000
Notes payable 179,000 $465,000
Long-term liabilities:
Long-term debt $1,150,000
Total liabilities $1,615,000
Accumulated retained earnings 4,686,000
Common stock (missing figure) 770,000
Total liabilities and equity $7,071,000
Explanation:
a) Data and Calculations:
Sidewinder, Inc.:
Sales revenue $714,000
Cost of goods sold $348,000
Depreciation expense $93,000
Interest expense $58,000
Tax rate = 25%
Cash dividends paid = $88,000
Income Statement
Sales revenue $714,000
Cost of goods sold 348,000
Gross profit $366,000
Depreciation expense 93,000
EBIT $273,000
Interest expense (58,000)
Income before tax $215,000
Tax rate (25%) 53,750
Net income $161,250
Cash dividends paid 88,000
Addition to Retained
Earnings $73,250
Duela Dent (single):
Taxable income = $180,800
Income tax (25%) 45,200
Alaskan Peach Corp.:
Account Titles Debit Credit
Cash $203,000
Accounts receivable 263,000
Inventory 548,000
Patents and copyrights 857,000
Tangible net fixed assets 5,200,000
Accounts payable $286,000
Notes payable 179,000
Long-term debt 1,150,000
Accumulated retained earnings 4,686,000
Common stock (missing figure) 770,000
Totals $7,071,000 $7,071,000
Camden Biotechnology began operations in September 2013. The following selected transactions relate to liabilities of the company for September 2013 through March 2014. Camden's fiscal year ends on December 31.Its financial statements are issued in April.2013a. On September 5, opened checking accounts at Second Commercial Bank and negotiated a short-term line of credit of up to $15,000,000 at the bank's prime rate (10.5% at the time). The company will pay no commitment fees.b. On October 1, borrowed $12 million cash from Second Commercial Bank under the line of credit and issued a five-month promissory note. Interest at the prime rate of 10% was payable at maturity. Management planned to issue 10-year bonds in February to repay the note.c. Received $2,600 of refundable deposits in December for reusable containers used to transport and store chemical-based products.d. For the September-December period, sales on account totaled $4,100,000. The state sales tax rate is 3% and the local sales tax rate is 3%. (This is a summary journal entry for the many individual sales transactions for the period.)e. Recorded the adjusting entry for accrued interest.2014f. In February, issued $10 million of 10-year bonds at face value and paid the bank loan on the March 1 due date.g. Half of the storage containers covered by refundable deposits were returned in March. The remaining containers are expected to be returned during the next six months.Required:1. Prepare the appropriate journal entries for these transactions.2. Prepare the current and long-term liability sections of the December 31, 2013, balance sheet. Trade accounts payable on that date were $252,000.
Answer:
Cash (Dr.) $12,000,000
Short term notes payable (Cr.) $12,000,000
Cash (Dr.) $2,600
Liability of refundable (Cr.) $2,600
Interest Expense (Dr.) $250,000
Interest Payable (Cr.) $250,000
Accounts receivable (Dr.) $4,100,000
Sales Revenue (Cr.) $3,977,000
Sales Tax Payable (Cr.) $123,000
Cash (Dr.) $10,000,000
Bond Payable (Cr.) $10,000,000
Explanation:
Liability Schedule 2013,
Accounts Payable $252,000
Current Portion of notes payable $2,000,000
Interest Payable $250,000
Sales tax Payable $123,000
Liability for refundable deposit $2,600
Total Current Liability $2,627,600
Three years ago, Kuley invested $32,200. In 2 years from today, he expects to have $50,300. If Kuley expects to earn the same annual return after 2 years from today as the annual rate implied from the past and expected values given in the problem, then in how many years from today does he expect to have exactly $87,200
Answer:
8.17 years(closest to 8 years )
Explanation:
The future value of $50,300, would be accumulated after 5 years of having made the investment(3 years+2 years=5 years)
As a result, we can determine the annual rate of return based on the future value in year 5 using the future value formula below:
FV=PV*(1+r)^n
FV=future value=$50,300
PV=amount invested initially=$32,200
r=unknown=annual rate of return
n=5 years
$50,300=$32,200*(1+r)^5
$50,300/$32,200=(1+r)^5
$50,300/$32,200 can be rewritten as ($50,300/$32,200)^1
($50,300/$32,200)^1=(1+r)^5
divide index on both sides by 5
($50,300/$32,200)^(1/5)=1+r
r=($50,300/$32,200)^(1/5)-1
r=9.33%
Our next task is to determine how long( in years) it takes to accumulate a future value of $87,200 from today's point, which means we need to determine the value of the investment today( 3 years after making the investment)
FV=$32,200*(1+9.33%)^3
FV=value of investment today=$42,079.82
Lastly, we can ascertain when $42,079.82 today would become $87,200
$87,200=$42,079.82*(1+9.33%)^n
n=number of years=unknown
$87,200/$42,079.82=(1+9.33%)^n
$87,200/$42,079.82=1.0933^n
take log of both sides
ln ($87,200/$42,079.82)=n ln(1.0933)
n=ln ($87,200/$42,079.82)/ln(1.0933)
n=0.72863604/0.08920065
n=8.17 years( from today, approx 8 years)
Using the information provided extract the necessary information and compute the Quick Ratio.
Current Assets $50, 000
Current Asset $25, 000
Inventory $ 5,000
Accounts Receivable $ 7,000
Notes Payable $8,000
Answer:
right option is d
account receivable $ 7, 000
Explanation:
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The CVP income statement Group of answer choices discloses contribution margin in the body of the statement. is distributed internally and externally. classifies costs by functions. will reflect a different net income than the traditional income statement.
Answer: discloses contribution margin in the body of the statement.
Explanation:
The Cost Volume Profit (CVP) income statement is made to better show the influence of variable costs and fixed costs on income. It as well shows the effects that changing costs and production volume can have on the income.
Although it shows the same income as a traditional income statement, the format is different in that the contribution margin is included in the statement and the costs and revenue per unit are shown as well.
Assume General Electric (GE) has about 10.3 billion shares outstanding and the stock price is $37.10. Calculate the market value for GE. (Approximately)
Answer: $382 billion
Explanation:
The market capitalization refers to the total market value of the equity of a firm and this is calculated as the firm's stock market price multiplied by the number of shares that's outstanding. This will be:
= 10.3 billion × $37.10
= $382 billion
Therefore, the market value for GE is $382 billion.
While Amazon has become a very powerful e-commerce firm here in the US, Alibaba, the Chinese company is very powerful in many parts of the world. Go to Wikipedia and read about the different type of businesses that Alibaba operates. Then write a short outline of these businesses.
Answer:
Alibaba is a chinese company, one of the largest in the world by market capitalization.
While it mainly specializes in online retail (both business to consumer, and business to business), it is also involved in other business activities such as cloud computing, electronic payment, artificial intelligence services, and data science and analysis. In fact, Alibaba is considered not only one of the best retailers in the world, but also one of the best artificial intelligence and data-driven companies in the world.
Aaron Company has a process costing system. All materials are introduced when conversion costs reach 50 percent. The following information is available for physical units during March. Work in process, March 1 (60% complete as to conversion costs) 150,000 Units started in March 600,000 Units transferred to Finishing Department in March 630,000 Work in process, March 31 (40% complete as to conversion costs) 120,000 Required: a. Compute the equivalent units for materials costs and for conversion costs using the weighted-average method. b. Compute the equivalent units for materials costs and for conversion costs using the FIFO method. c. The company president has been under considerable pressure to increase income. He tells the controller to change the estimated completion for ending work in process to 60 percent (from 40 percent). c-1. What effect will this change have on the unit costs of units transferred to finished goods in March
Answer:
Aaron Company
a. Weighted-average
Equivalent units of production Units Materials Conversion
Units transferred to Finishing 630,000 630,000 (100%) 630,000 (100%)
Work in process, March 31 120,000 0 (0%) 48,000 (40%)
Equivalent units 630,000 678,000
b. FIFO:
Equivalent units of production Units Materials Conversion
Work in process, March 1 150,000 0 60,000 (40%)
Units started and completed 480,000 480,000 (100%) 480,000 (100%)
Work in process, March 31 120,000 0 (0%) 48,000 (40%)
Equivalent units 480,000 588,000
c. The change will reduce the unit costs of units transferred to finished goods in March.
Explanation:
a) Data and Calculations:
Work in process, March 1 (60% complete as to conversion costs) 150,000
Units started in March 600,000
Units transferred to Finishing Department in March 630,000
Work in process, March 31 (40% complete as to conversion costs) 120,000
a. Weighted-average
Equivalent units of production Units Materials Conversion
Units transferred to Finishing 630,000 630,000 (100%) 630,000 (100%)
Work in process, March 31 120,000 0 (0%) 48,000 (40%)
Equivalent units 630,000 678,000
b. FIFO:
Equivalent units of production Units Materials Conversion
Work in process, March 1 150,000 0 60,000 (40%)
Units started and completed 480,000 480,000 (100%) 480,000 (100%)
Work in process, March 31 120,000 0 (0%) 48,000 (40%)
Equivalent units 480,000 588,000
c. If the estimated completion for ending work in process is changed to 60% from 40%, the equivalent units of production for materials will increase by 120,000. This increase will also increase the cost of ending work in process and reduce the unit costs transferred to finished goods in March.
A company purchased a weaving machine for $198,250. The machine has a useful life of 8 years and a residual value of $10,500. It is estimated that the machine could produce 751,000 bolts of woven fabric over its useful life. In the first year, 105,500 bolts were produced. In the second year, production increased to 109,500 units. Using the units-of-production method, what is the amount of depreciation expense that should be recorded for the second year
Answer:
the depreciation expense that should be recorded for the second year is $27,375
Explanation:
The computation of the amount of depreciation expense that should be recorded for the second year is shown below
Depreciation rate is
= ($198,250 - $10,500) ÷ 751000
= 0.25 per bolt
Now Depreciation expense for the second year
= $109,500 × .25
= $27,375
hence, the depreciation expense that should be recorded for the second year is $27,375
