Answer:
($26,280)
This represents net cash used up by investing activities
Explanation:
The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.
The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.
The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.
An increase in assets other than cash is an outflow while an increase in liabilities is an inflow and vice versa.
Hence net cash provided by investing activities
= $4380 - $30660
= ($26,280)
Other activities are operating and financing activities.
Maxim manufactures a cat food product called Green Health. Maxim currently has 10,000 bags of Green Health on hand. The variable production costs per bag are $1.90 and total fixed costs are $10,000. The cat food can be sold as it is for $9.15 per bag or be processed further into Premium Green and Green Deluxe at an additional $2,100 cost. The additional processing will yield 10,000 bags of Premium Green and 3,100 bags of Green Deluxe, which can be sold for $8.15 and $6.15 per bag, respectively. If Green Health is processed further into Premium Green and Green Deluxe, the total gross profit would be:
Answer:
Total gross profit =$ 50,565
Explanation:
Gross profit is the sales revenue less the cost of the goods sold. The cost of goods sold would include the variable cost of production, fixed cost and the further processing cost
$
Sales revenue (10,000×$8.15) + ( 3100 ×$6.15) = 100,565
Further processing cost (21,000)
Variable cost ( 10,000 ×$1.90) (19,000)
Fixed cost (10,000)
Gross profit 50,565
Which of the following would shift the long-run aggregate supply curve right? a. both an increase in the capital stock and an increase in the price level b. an increase in the capital stock, but not an increase in the price level c. an increase in the money supply, but not an increase in the capital stock d. neither an increase in the money supply nor an increase in the capital stock
Answer:
b. an increase in the capital stock, but not an increase in the price level.
Explanation:
In order to understand both short-run economic fluctuations and how the economy movement from short to long run, we need the aggregate supply and aggregate demand model.
An increase in the capital stock, but not an increase in the price level would shift the long-run aggregate supply curve right.
The long-run aggregate supply curve would shift rightward when immigration from foreign countries rises or technology improves.
When the price level rises, the wealth effect and the interest-rate effect provide incentives for consumers to spend less. The price level of goods and services in an economy influences the exchange rate, imports and exports
Harvard Company is selling a piece of equipment on June 30, 2019. Information related to this sale is as follows: Cost of equipment .................................................... $400,000 Accumulated Depreciation as of June 30, 2019........... 150,000 Proceeds from sale........................................................... 350,000
Based on the above information, the journal entry to record the sale will include:
Answer:
June 30, 2019 Accumulated depreciation 150000 Dr
Cash 350000 Dr
Equipment 400000 Cr
Gain on disposal 100000 Cr
Explanation:
The equipment is being sold by the business. So, we will write off this from the account by crediting the equipment account by the amount of the cost of the equipment. The related depreciation expense will also be written off from the books by debiting the account by the amount of depreciation on this equipment.
To calculate the gain or loss on disposal, we fill first calculate the Net book value of the equipment.
NBV = Cost - Accumulated depreciation
NBV = 400000 - 150000 = $250000
The equipment is sold for 350000 thus there is a gain on disposal of,
Gain on disposal = 350000 - 250000 = $100000
g Willow Creek Company purchased and installed carpet in its new general offices on April 30 for a total cost of $18,000. The carpet is estimated to have a 15-year useful life and no residual value. a. Prepare the journal entry necessary for recording the purchase of the new carpet. If an amount box does not require an entry, leave it blank. Apr. 30 b. Record the December 31 adjusting entry for the partial-year depreciation expense for the carpet, assuming that Willow Creek uses the straight-line method. Do not round intermediate calculations. If an amount box does not require an entry, leave it blank. Dec. 31
Answer:
a. The journal entry for recording the purchase of the new carpet would be as follows:
April 30 Debit Credit
Carpet $18,000
Cash $18,000
b. The journal entry would be as follows:
December 31 Debit Credit
Depreciation expense - carpet $800
Accumulated depreciation- carpet $800
Explanation:
a. The journal entry for recording the purchase of the new carpet would be as follows:
April 30 Debit Credit
Carpet $18,000
Cash $18,000
b. According to the given data, the carpet is estimated to have a 15-year useful life and no residual value, therefore the December 31 adjusting entry for the partial-year depreciation expense for the carpet would be to debit Depreciation expense - carpet for $800 and to credit Accumulated depreciation- carpet for $800.
The journal entry would be as follows:
December 31 Debit Credit
Depreciation expense - carpet $800
Accumulated depreciation- carpet $800
A peer-review board for alternative dispute resolution usually consists of: A. an equal number of employee representatives and management appointees B. managers above the level of the supervisor whose decision is being appealed. C. employees at the same level as the appealing employee. D. managers, subordinates, and a number of unbiased third-party participants who do not work for the employer.
Answer:
The answer is option A) A peer-review board for alternative dispute resolution usually consists of: an equal number of employee representatives and management appointees
Explanation:
Alternative dispute resolution is an affordable, less time consuming and less formal way of settling workplace disputes. To achieve this feat, a peer review board is constituted.
A peer review board usually consists of employers and management appointees and it could be a voluntary decision on their art to participate.
The pool of individuals nominated to be part of the peer review board is considered objective and unbiased in their assessment of the issue to be resolved. They are also deemed skillful in the art of listening and arbitration.
Stephanie wants to save for her daughter's education. Tuition costs $12,000 per year in today's dollars. Her daughter was born today and will go to school starting at age 18. She will go to school for 5 years. Stephanie can earn 12% on her investments and tuition inflation is 6%. How much must Stephanie save at the end of each year if she wants to make her last savings payment at the beginning of her daughter's first year of college
Answer:
Annual deposit= $3,463.37
Explanation:
Giving the following information:
Tuition costs $12,000 per year in today's dollars.
Number of years= 18
She will go to school for 5 years.
Stephanie can earn 12% on her investments and tuition inflation is 6%.
First, we need to calculate the cost of each year and the total cost.
FV= PV*(1+i)^n
Year 1= 12,000*1.06^18= 34,252.07
Year 2= 34,252.07*1.06= 36,307.12
Year 3= 38,485.55
Year 4= 40,794.68
Year 5= 43,242.36
Total= 193,081.78
Now, we can determine the annual deposit required:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (193,081.78*0.12) / [1.12^18)-1]
A= 3,463.37
Neptune Corporation owns 70 percent of Pluto Company's stock. On July 1, 20X4, Neptune sold a piece of equipment to Pluto for $56,350. Neptune had purchased this equipment on January 1, 20X1, for $63,000. The equipment's original 15-year estimated total economic life remains unchanged. Both companies use straight-line depreciation. The equipment's residual value is considered negligible.
79.
Required information
Based on the information provided, in the preparation of the 20X4 consolidated financial statements, equipment will be ______ in the consolidation entries.
debited for $6,650
debited for $56,350
debited for $63,000
credited for $63,000
Answer:
credited for $63,000
Explanation:
According to the scenario been described in the question, the correct answer is credited for $63,000, this is so because from the information been given, when making the preparation of the consolidated financial statements, the equipment that will be credited for $63,000 is in the consolidation entries. Since the value of the book equipment is $63,000 so that will be credited.
Oldham Corporation bases its predetermined overhead rate on a variable manufacturing overhead cost of $4.00 per machine-hour and fixed manufacturing overhead cost of $87,822 per period. If the denominator level of activity is 4,100 machine-hours, what would be the fixed component in the predetermined overhead rate
Answer:
$21.42
Explanation:
The computation of fixed component in the predetermined overhead rate is shown below:-
Fixed component in the predetermined overhead rate = Fixed Overhead ÷ Machine Hours
= $87,822 ÷ 4,100
= $21.42
Therefore for computing the fixed component in the predetermined overhead rate we simply divide the fixed overhead by machine hours.
And all the other information i.e given is not relevant. Hence, ignored it
Berne, Inc. uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows: Indirect labor $5.00 Indirect materials 2.50 Maintenance .80 Utilities .30 Fixed overhead costs per month are: Supervision $800 Insurance 200 Property taxes 300 Depreciation 900 The company believes it will normally operate in a range of 2,000 to 4,000 machine hours per month. Prepare a flexible manufacturing overhead budget for the expected range of activity, using increments of 1,000 machine hours. (List variable costs before fixed costs.)
Answer and Explanation:
As per the data given in the question,
Flexible manufacturing overhead budget
Activity level :
Machine hours 2,000 hours 3,000 hours 4,000 hours
Variable costs :
Indirect labor $5 $10,000 $15,000 $20,000
Indirect material $2.50 $5,000 $7,500 $10,000
Maintenance $0.80 $1,600 $2,400 $3,200
Utilities $0.30 $600 $900 $1,200
Total variable cost $22,600 $25,800 $34,400
Fixed costs :
Supervision $800 $800 $800
Insurance $200 $200 $200
Property taxes $300 $300 $300
Depreciation $900 $900 $900
Total Fixed cost $2,200 $2,200 $2,200
Total Cost $24,800 $28,000 $36,600
Angara Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:
Activity Cost Pool (and Activity Measure) Total Cost
Machine related (machine-hours) $ 103,800
Batch setup (setups) $ 402,600
Order size (direct labor-hours) $ 82,600
Total Activity
Activity Cost Pools Product X Product Y Total
Machine related 800 5,200 6,000
Batch setup 3,100 2,900 6,000
Order size 6,000 1,000 7,000
The total amount of overhead cost allocated to Product X would be closest to: ________.
Answer:
Total amount = $292,650
Explanation:
As per the data given in the question,
Machine related (machine-hours) = $103,800
Batch setup (setups) = $402,600
Order size (direct labor-hours) = $82,600
For product X :
Machine related = ($103,800÷6000×800)
= $13,840
Batch setup = $402,600 × 3,100 ÷6,000
= $208,010
General factory = $82,600 × 6,000 ÷ 7000 = $70,800
Total amount = ($13,840 + $208,010 + $70,800)
= $292,650
Which of the following statements correctly describes the effects of price controls? A. They cause demand disruptions and could lead to widespread unemployment. B. Imposing these in inflationary times is economically destructive. C. Firms profitably sell goods and services at the prices set by the government. D. They cause the quantity supplied to exceed the quantity demanded. The cost to a business from frequently changing its prices due to high inflation rates is called ▼ opportunity cost seigniorage menu cost . Suppose the government prints and spends new currency. Which of the following statements are true in this case? (Check all that apply). A. The citizens gain because their government has more money to spend. B. Printing/spending an enormous amount of new currency is socially beneficial. C. The citizens lose because the resulting inflation reduces the real value of the currency that they already hold. D. Printing/spending a modest amount of new currency is socially beneficial. Click to select your answer(s).
Answer:
Option a and b
Option C
Explanation:
A . In simple words, price control refers to the limits on the rates that can be paid for good and services produced in a marketplace that are set up and imposed by central govt.
The purpose behind these restrictions may derive from the need to preserve the availability of products even through skills shortages, and to further delay inflation, or, instead, to help ensure a guaranteed minimum income as well for manufacturers of such products or to seek to obtain a decent living wage.
B. In simple words, due to printing of new currency the supply of money ion the market would increase which will lead to inflation in the economy which will further lead to loss in value of the existing money in hand on the individuals.
During the month of June, Whispering Boutique recorded cash sales of $302,810 and credit sales of $130,219, both of which include the 7% sales tax that must be remitted to the state by July 15. Prepare the adjusting entry that should be recorded to fairly present the June 30 financial statements.
Answer and Explanation:
The Journal entry is shown below:-
1. Sales revenue Dr, $28,656 ($121,700 + $287,673) × 7%
To Sales tax payable $28,656
(Being sales tax payable is recorded)
Here we debited the sales revenue as it decreased the revenue while we credited the sales tax payable as it increased the liabilities so that the proper posting could be done
Working note
Credit sales = $130,219 × 100 ÷ 107
= $121,700
Cash sales = $302,810 × 100 ÷ 107
= $287,673
Kevin, Rajiv, and Yakov are hunters who live next to a recreational wildlife game area that is open to hunting; in other words, anyone is free to use the recreational wildlife game area for hunting. Assume that these men are the only three hunters who hunt in this recreational wildlife game area and that the recreational wildlife game area is large enough for all three hunters to hunt intensively at the same time.
Each year, the hunters choose independently how often to hunt; specifically, they choose whether to hunt intensively (that is, to set several traps and hunt long hours, which hurts the sustainability of the recreational wildlife game area if enough people do it) or to hunt nonintensively (which does not hurt the sustainability of the recreational wildlife game area). None of them has the ability to control how much the others hunt, and each hunter cares only about his own profitability and not the state of the recreational wildlife game area.
Assume that as long as no more than one hunter hunts intensively, there are enough animals to restock the recreational wildlife game area. However, if two or more hunt intensively, the recreational wildlife game area will become useless in the future. Of course, hunting intensively earns a hunter more money and greater profit because he can sell more animals.
The recreational wildlife game area is an example of _____________ because the animals in the recreational wildlife game area are ________ and ___________.
Answer: Common resource ,
Non excludable and Rival in consumption
Explanation:
Common resource is defined as the resource that is usually available to people in open form and people tend to overuse it.This creates shortage of resource and brings scarcity.They are considered rival in nature.Any good is considered rival if consumption of good by one person reduces consumption of that good for another person. It is regarded as subtractable.Non-excludable good is defined as the good that does not stop other people or group of people to consume or use it.There is no certain restriction of using particular good.According to the questions scenario, recreational wildlife game area is common resource because Yakov, Rajiv and Kevin are using that area for hunting openly .Other hunters can also use the area for hunting as it is available commonly for everyone as per their needs.
Animal of wildlife game area can be considered rival and non-excludable in consumption because they are openly available for hunter and there is no restriction on their usage (hunting) particularly.Thus, if a hunter hunts more number of animals using intensive hunting mechanism, it will reduce number of animals for other hunters .
The predetermined overhead rate for Zane Company is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $150000 was divided by normal capacity of 30000 direct labor hours, to arrive at the predetermined overhead rate of $5. Actual overhead for June was $9500 variable and $6050 fixed, and standard hours allowed for the product produced in June was 3000 hours. The total overhead variance is
Answer:
Total Overhead Variance= $500 unfavorable
Explanation:
The total overhead variance is the difference between actual overhead and the applied overhead.
Actual Overhead = Variable + Fixed= $9500 + $6050= $ 15,550
Budgeted Overhead for 30000 direct labor hours = $ 150,000
Applied Overhead for 3000 hours = 3000 *$5= $15000
Total Overhead Variance= Actual Overhead Less Applied Overhead
= $15,500- $ 15000= $500 unfavorable
As actual is greater than applied it is unfavorable.
Answer:
$550 unfavorable.
Explanation:
Total actual overhead = $9,500 + $6,050 = $15,550
Total predetermined overhead = Predetermined overhead rate * Standard hours = $5 * 3,000 = $15,000
Total overhead variance = $15,550 - $15,000 = $550 unfavorable.
Note: It is unfavorable because total actual is greater than total predetermined overhead.
Photon Technologies, Inc., a manufacturer of batteries for mobile phones, signed a contract with a large electronics manufacturer to produce three models of lithium-ion battery packs for a new line of phones. The contract calls for the following
Battery Pack Production Quantity
PT-100 200,000
PT-200 100,000
PT-300 150,000
Photon Technologies can manufacture the battery packs at manufacturing plants located in the Philippines and Mexico. The unit cost of the battery packs differs at the two plants because of differences in production equipment and wage rates. The unit costs for each battery pack at each manufacturing plant are as follows:
Plant
Product Philippines Mexico
PT-100 0.95 0.98
PT-200 1.34 0.98
PT-300 1.06 1.15
The PT-100 and PT-200 battery packs are produced using similar production equipment available at both plants. However, each plant has a limited capacity for the total number of PT-100 and PT-200 battery packs produced. The combined PT-100 and PT-200 production capacities are 175,000 units at the Philippines plant and 160,000 units at the Mexico plant. The PT-300 production capacities are 75,000 units at the Philippines plant and 100,000 units at the Mexico plant. The cost of shipping from the Philippines plant is $0.15 per unit, and the cost of shipping from the Mexico plant is 0.08 per unit.
(a) Develop a linear program that Photon Technologies can use to determine how many units of each battery pack to produce at each plant to minimize the total production and shipping cost associated with the new contract.
(b) Solve the linear program developed in part (a), to determine the optimal production plan. Qty Produced Phillipines Mexico PT-100 16000c 40000 PT-200 100000 0 5000 1000 PT-300 Total Cost-$
(c) Use sensitivity analysis to determine how much the production and/or shipping cost per unit would have to change to produce additional units of the PT-100 in the Philippines plant. If required, round your answer to two decimal digits At least $ / unit.
(d) Use sensitivity analysis to determine how much the production and/or shipping cost per unit would have to change to produce additional units of the PT-200 in the Mexico plant. If required, round your answer to two decimal digits. At least $ .05/ unit.
Answer:
Check the explanation
Explanation:
a) Linear program model:
Decision variables: Let
P1 = Number of PT-100 products produced at Philippines plant
P2 = Number of PT-200 products produced at Philippines plant
P1 = Number of PT-300 products produced at Philippines plant
M1 = Number of PT-100 products produced at Mexico plant
M2 = Number of PT-200 products produced at Mexico plant
M3 = Number of PT-300 products produced at Mexico plant
Objective: Min (0.95+0.15)P1 + (0.98+0.15)P2 + (1.34+0.15)P3 + (0.98+0.08)M1 + (1.06+0.08)M2 + (1.15+0.08)M3
or,
Min 1.10P1 + 1.13P2 + 1.49P3 + 1.06M1 + 1.14M2 + 1.23M3
s.t.
P1 + M1 ≥ 200,000
P2 + M2 ≥ 100,000
P3 + M3 ≥ 150,000
P1 + P2 ≤ 175,000
M1 + M2 ≤ 160,000
P3 ≤ 75,000
M3 ≤ 100,000
P1, P2, P3, M1, M2, M3 ≥ 0
(b) Solution of the linear program using Excel Solver can be seen in the first attached image below.
Formula: H2 =SUMPRODUCT(B2:G2,$B$11:$G$11) copy to H2:H9
Optimal Solution:
Decision Variable Value
P1 40000
P2 100000
P3 50000
M1 160000
M2 0
M3 100000
Total production and shipping cost = $ 524,100
Sensitivity report can be seen in the second attached image below.
Referring to above sensitivity analysis,
(c) Allowable decrease in objective coefficient of P1 is 0.04 therefore production and/or shipping cost per unit has to decrease by $ 0.04 to produce additional units of PT-100 in Philippines plant.
(d) Allowable decrease in objective coefficient of M2 is 0.05 therefore production and/or shipping cost per unit have to be decreased by $ 0.05 to produce additional units of PT-200 in Mexico plant.
Final Examination Hide or show questions Calculator Problem 9-23 (b) (LO. 2) Ricardo, who is self-employed, uses his automobile 85% for business and during 2019 drove a total of 32,200 business miles. Information regarding his car expenses is listed below. Business parking $345 Auto insurance 2,800 Auto club dues (includes towing service) 275 Toll road charges (business-related) 205 Oil changes and engine tune-ups 180 Repairs 1,890 Depreciation allowable 3,600 Fines for traffic violations (incurred during business use) 95 Gasoline purchases 4,125 What is Ricardo's deduction in 2019 for the use of his car if he uses:
Answer:
Explanation:
a) actual cost method:-
=deductions × percentage
= 345 + 205 + 85% (2800 + 275 + 180 + 1890 +3600 +4125 )
=550 + 10939.5
=11489.5 = 11490
Note :- fines are not taken.
b) automatic mileage method:-
=total number of business miles × standard rate
=32200×0.58 +345+205
=19226
Identify the research question that involves an inference about a difference between two population means.
1. Is the average amount of financial aid received in a year by community college students greater than $2,600?
2. Do female community college students prefer to work on group projects more than male students?
3. Do community college students prefer computer-based homework or pencil-and-paper homework in math classes?
4. Do community college students receive less in financial aid than students attending public universities?
Answer:
The Question statement that best describes an inference about a difference between two population means is statement 4 - Do community college students receive less in financial aid than students attending public universities?
Explanation:
The research question that involves an inference about a difference between two population means is expressed in the fourth question statement, which is - Do community college students receive less in financial aid than students attending public universities?
Fultz Company has accumulated the following budget data for the year 2020.
1. Sales: 31,410 units, unit selling price $85.
2. Cost of one unit of finished goods: direct materials 1 pound at $6 per pound, direct labor 3 hours at $12 per hour, and manufacturing overhead $7 per direct labor hour.
3. Inventories (raw materials only): beginning, 10,120 pounds; ending, 15,480 pounds.
4. Selling and administrative expenses: $170,000; interest expense: $30,000.
5. Income taxes: 30% of income before income taxes.
Prepare a schedule showing the computation of cost of goods sold for 2020.
Answer:
COST OF Goods SOLD $ 1,1539,110
Explanation:
Fultz Company
Schedule of Cost of Goods Sold for 2020
As there are no beginning and ending finished goods inventories the total units produced are sold. (Finished Goods required 31410 Units)
Inventories raw materials : beginning, 10,120 pounds
Add Direct Materials Purchases 36770 pounds
Less Inventories ending raw materials , 15,480 pounds
Direct Materials Used 31410 pounds
Materials 1 pound at $6 per pound= $ 6* 31410 Units= $ 188460
Direct labor 3 hours at $12 per hour= $ 36* 31410 Units= $ 1130780
Manufacturing Overhead $7 per direct labor hour= $ 7* 31410 Units=
$ 219870
Total Manufacturing Costs $ 1,1539,110
There are no beginning and ending work in process inventories so the total manufacturing cost gives us the COST OF Goods SOLD.
Marks Corporation's balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash equivalents $ 47 $ 37 Accounts receivable 53 57 Inventory 63 60 Property, plant, and equipment 548 440 Less accumulated depreciation 295 255 Total assets $ 416 $ 339 Liabilities and stockholders' equity: Accounts payable $ 52 $ 50 Bonds payable 260 250 Common stock 51 50 Retained earnings 53 (11 ) Total liabilities and stockholders' equity $ 416 $ 339 Net income for the year was $77. Cash dividends were $13. The company did not dispose of any property, plant, and equipment, retire any bonds payable, or repurchase any of its own common stock during the year. Required: Prepare a statement of cash flows in good form using the indirect method.
Answer:
statement of cash flows using the indirect method.
Cash Flow from Operating Activities
Net income for the year was $77
Adjustment of Non-Cash Items :
Depreciation $40
Adjustment for Working Capital items:
Decrease in Accounts receivable $4
Increase in Inventory ($3)
Increase in Accounts Payable $2
Net Cash From Operating Activities $120
Cash Flow from Investing Activities
Purchases of Property, plant, and equipment ($108)
Net Cash used in Investing Activities ($108)
Cash Flow from Financing Activities
Proceeds from Common Stock Issue $1
Dividends Paid ($13)
Net Cash used in Financing Activities ($12)
Net Cash Inflow/(Outflow) during the period $10
Cash and Cash Equivalents at Beginning of the Period $37
Cash and Cash Equivalents at End of the Period $47
Explanation:
Show the Movement of Cash in the 3 categories of
Cash flow from Operating ActivitiesCash flow from Investing ActivitiesCash flow from Financing ActivitiesWhich of the following scenarios are potential candidates for the Chi-square test? Check all that apply. Group of answer choices Is there a relationship between gender and pet ownership? Is there a relationship between martial status (single, married, divorced, widowed) and political party affiliation (Democrat, Independent, Republican)? Is there a relationship between amount of credit card debt and employment status (unemployed, employed part-time, employed full-time)?
Answer:
A. Is there a relationship between gender and pet ownership?
B. Is there a relationship between marital status (single, married, divorced, widowed) and political party affiliation (Democrat, Independent, Republican)?
Explanation:
The chi squared test is a test in statistics used to establish the relationship between categorical variables. It seeks to compare the observed results in an experiment to the expected results. The test assumes that the variables being compared are independent of each other.
Categorical variables are descriptive and qualitative in nature. Numerical variables, on the other hand, deal with numbers. The amount of credit card debt is a numerical value, and therefore, does not qualify as a chi squared variable.
Northfield Casino is considering converting the Polsky Building at University of Akron into a state-of-the-art gaming parlor. This expansion project will require an initial outlay of $75,000,000 with a project life of five years. Cash flows from operating the new parlor are expected to be $25,000,000 every year for the next five years. The parlor will be sold for $50,000,000 at the end of five years. The project's required rate of return, or discount rate is 18%. Based on this information: The project's payback period is:______.
a. 2.25 Years.
b. 2.5 Years.
c. 2.75 Years.
d. 3 Years.
e. 3.2 Years.
Answer:
d. 3 Years.
Explanation:
Payback period calculates the amount of time it takes to recover the amount invested in a project from its cumulative cash flows.
Payback period = amount invested / cash flow
$75,000,000 / $25,000,000 = 3 years
I hope my answer helps you
Bakers' Town Bread is selling 1,500 shares of stock through a Dutch auction. The bids received are as follows: 200 shares at $17 a share, 400 shares at $15, 700 shares at $14, 400 shares at $13, and 200 shares at $11 a share. How much cash will the company receive from selling these shares of stock?
Answer:
$19,500
Explanation:
A Dutch auction is one of many common Auction types to buy or sell goods. Most generally, it means an auction where the auctioneer starts with a high selling price and decreases it until some buyer accepts the offer or arrives at a fixed reserve price.
Therefore in the given case, the cash received by the company from selling the shares of stock is
= 1,500 shares × $13
= $19,500
The $13 represent the highest bid price
Why do more than half of enterprise application projects exceed budgets, deliver less than expected benefits, or experience overruns?
Answer: The answer is provided below
Explanation:
1. Underfinancing: One main reason that cause budget overrun and less than expected benefits is underfinancing. Allocation of an adequate amount of budget to project at the beginning will lead to a budget overrun or failure.
2. Unfeasible Cost Estimates: Estimation of cost is a vital process in a project and another common reason for budget overrun. When the cost is calculated by inexperienced or unqualified personnel, the project is going to face budget overruns.
3. Underestimating the Project Complexity: Big projects are usually at the risk of overrunning its budget as a result of bigger complications that may arise during its execution.
4. Lack of Resource Planning: When one fails to plan the resources that are available effectively, then this would lead to a budget overrun and less benefits. A common mistakes that cause overrun is failure to estimate the resources which would be utilized during the project.
A bakery buys sugar from a big distributor to use in baking cakes. Typically, they use 3663 bags of sugar in a year. The price of sugar is typically $14 per bag. The cost to the bakery for placing an order is $26, and the annual carrying cost is $17 per bag. The distributor has offered the bakery the following volume discount schedule: Order Size Discount rate on the original price 1--449 0 percent 450--799 5 percent more than 800 10 percent We are trying to find how many bags of sugar should the store order, whenever they place a new order of sugar.Assume 364 days a year and 52 weeks a year. IMPORTANT: Note, the discounts off of original price are reported. You need to calculate the actual prices. Keep two decimal places in your calculations.If we ignore the discounts, how many bags of sugar should we order
Explain how strong enforcement of carefully designed patent laws affects the growth rate of an economy. (5 points) Explain how tax incentives can be used to promote faster economic growth. (5 points) Explain the "infant industry argument" and its relationship to a country’s growth rate. (5 points) Explain what incentives can be used to increase the savings rate in an economy (as another way to promote faster economic growth). (5 points)
Answer:
1.In simple words, strong enforced patent laws will work as a motivation to innovation and innovation always results in better outcomes for thee economy as the output in the economy could be increased dramatically through technology advances.
2. By simply decreasing the tax rates on income from middle class households, Government can increase the demand of goods due to higher income in hand which further results in growth of economy.
3. Such argument states the new industries must be protected from foreign competitors until they are stable on their own. This is completely true as new industrious lead to better employment opportunities which further leads to economic growth.
4. For first tax rates can be decreased for more income in hand and also interest rates on savings could be increased.
Balser Corporation manufactures and sells a number of products, including a product called JYMP. Results for last year for the manufacture and sale of JYMPs are as follows: Sales $ 960,000 Less expenses: Variable production costs $ 464,000 Sales commissions 144,000 Salary of product manager 100,000 Fixed product advertising 160,000 Fixed manufacturing overhead 132,000 1,000,000 Net operating loss $ (40,000 ) Balser is trying to decide whether to discontinue the manufacture and sale of JYMPs. All expenses other than fixed manufacturing overhead are avoidable if the product is dropped. None of the fixed manufacturing overhead is avoidable. Assume that dropping Product JYMP would result in a $90,000 increase in the contribution margin of other products. If Balser chooses to discontinue JYMP, the annual financial advantage (disadvantage) of eliminating this product should be:
Answer:
$2,000 disadvantage
Explanation:
The computation of the annual financial advantage or disadvantage of eliminating the product is shown below:
Sales $960,000
Less Variable production costs ($464,000)
Less Sales commission ($144,000)
Less salary of product manager ($100,000)
Less fixed product advertising ($160,000.00)
Less contribution margin from other products ($90,000)
Income from JYMP 2,000.00
This is the financial disadvantage for eliminating the product of $2,000 so the company should continue to manufactured the JYMP
And the fixed cost is not considered here as it is not relevant because it has fixed in nature does not have create any impact whether company should manufactured the product or not
Assume that Parker Company will receive SF200,000 in 360 days. Assume the following interest rates: the 360-day borrowing rate in U.S. is 7% while the 360-day borrowing rate in Switzerland is 5%. The 360-day deposit rate in U.S. is 5% while the 360-day deposit rate in Switzerland is 4%. Assume the forward rate of the Swiss franc is $0.50 and the spot rate of the Swiss franc is $0.48. If Parker Company uses a money market hedge, it will receive ____ in 360 days.
Answer:
Company will receive = $96,000
Explanation:
As per the data given in the question,
Corresponding SF liability equals to pay SF200,000 including interest
= 200,000÷1.05 = SF190476.19
Now Convert the SF into $US at the current spot rate = $0.48×190476.19
= $91428.57
Now deposit the $ US at 5% and withdraw after 360 days =
= $91428.57 + $91428.57×5%
= $95999.99
This way the liability of SF 190476.19 + 190476.19×5% interest will be paid off when Parker company receives $200,000, Parker company will receive = $96,000 in 360 days.
A factory machine was purchased for $70,000 on January 1. It was estimated that it would have a $14,000 salvage value at the end of its 5-year useful life. It was also estimated that the machine would be run 40,000 hours in the five years. If the actual number of machine hours ran in the first year was 4,000 hours and the company uses the units-of-activity method of depreciation, the amount of depreciation expense for year 1 would be
Answer:
$5600
Explanation:
The amount of depreciation expense for year 1
depreciation under the first year under units of activity method
[ (cost - salvage value) / estimated machine hours ] * actual machine hours worked in the first year
= [(70000 - 14000) / 40000 ] * 4000
= 56000 / 40000 ) * 4000
= 1.4 * 4000 = $5600 ( amount of depreciation expense for year 1 )
At the start of the current year, SBC Corp. purchased 25% of Sky Tech Inc. for $47 million. At the time of purchase, the carrying value of Sky Tech's net assets was $80 million. The fair value of Sky Tech's depreciable assets was $12 million in excess of their book value. For this year, Sky Tech reported a net income of $80 million and declared and paid $12 million in dividends. The total amount of additional depreciation to be recognized by SBC over the remaining life of the assets is:
Answer:
$3
Explanation:
SBC Corp
($million)
FV in excess of book value $12
×
Share of ownership 25%
Additional depreciation in total $3
Therefore the total amount of additional depreciation to be recognized by SBC over the remaining life of the assets is: $3
A financier plans to invest up to $500,000 in two projects. Project A yields a return of 9% on the investment of x dollars, whereas Project B yields a return of 17% on the investment of y dollars. Because the investment in Project B is riskier than the investment in Project A, she has decided that the investment in Project B should not exceed 40% of the total investment. How much should the financier invest in each project in order to maximize the return on her investment
Answer:
She should invest $300,000 in Project A, and $200,000 in Project B.
Explanation:
Solution
Since Project B yields a higher return, she should invest as much money as possible in it, which is 40% of the total investment or
or (0.40)($500,000) = $200,000
so
The remaining $500,000 - $200,000 = $300,000 should be invested in Project A.
Therefore, she should invest $300,000 in Project A, and $200,000 in Project B.
